Rent-Seeking, Institutions and Reforms in Africa

Rent-seeking behavior is identified as a major factor contributing to poor economic performance, particularly in African nations. This behavior allows individuals or groups to gain income without contributing productively, often hindering necessary reforms. The book explores the theoretical underpinnings of rent-seeking and provides a detailed case study on Tanzania, illustrating how rent-seekers obstruct vital reforms like tax and trade liberalization. It analyzes over 300 parastatal companies, assessing their financial health and the support they received, highlighting the pervasive impact of rent-seeking on economic development.