Rent-seeking is an economic concept that refers to the practice of seeking to increase one’s share of existing wealth, gaining without any reciprocal contribution of wealth to society. This often involves influencing government policies or regulations to benefit a specific group or individual, often at the expense of others, for example, a company lobbying the government for grants, subsidies, or tariff protection.

How Rent-Seeking Relates to Whistleblowing

Whistleblowers can play a crucial role in exposing rent-seeking behavior. Here’s how:

• Identifying Corrupt Practices: Whistleblowers may witness or have knowledge of corrupt practices, such as bribery, lobbying, or other forms of influence peddling.
• Exposing Inefficient Regulations: They may also report instances of regulations that create barriers to entry for new businesses or favor existing ones.
• Promoting Fair Competition: By exposing rent-seeking behavior, whistleblowers can help to promote a more level playing field and encourage innovation and competition.