Rent and Rent-seeking in Iran


  •  Esmaiel Gorgin Akbarabadi    
  •  Ali Najafi Tavana    

Abstract

Financial abuse of power and making decisions that would guarantee the achievement of personal goals have attracted the attention of many Iranian intellectuals in recent years. Evidently, these problems indicate a kind of corruption which is in turn caused by discrimination. A clear example of discrimination in the economic literature is rent seeking; a sinister phenomenon through which windfall wealth is gained. Nowadays, in Iran, the negative meaning of rent usually comes to mind. Unfortunately, it must be stated that political, administrative and financial corruption as well as different types of rent seeking especially economic and political rent have turned into one of the most important problems in the society. Presence of entire governments and politics of rentierism ihas intensifiednsified those problems. Rent seeking, weakens the motivation to work and be productive and causes productive powers to go astray and do wrong. In a society of rent-seekers, sources of wealth, education and power become exclusive and discrimination and corruption, bribery, and consideration of family relationships rather than the rules, unlawful appointments and dismissals, etc. spread all over the society.


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