Rent-Seeking Activities in Schumpeterian and Marxian Socio-Political Dynamics

Abstract

As we have discussed in Chapters one and two of this monograph, the social system is welded together by institutions of the three blocks of economic, political and legal structures. Each of these structures has its own identity for recognition and yet is connected to each other to establish the unity of the political economy as a complex self-improving and self-transformation system. The social system must be seen as an automatic control system where the automatic controllers are linked to the decision-choice system. The economic structure is the foundation of life; the political structure is the foundation of social decision-making power and; the legal structure is the foundation of the social control and stability regarding the individual and collective decision-choice behavior in the three structures. In this respect, the political structure, endowed with the decision-making power, shapes and manages all three structures for coherence, stability and systemic risk associated with the collective decision-choice system of the political economy. At the same time, it is also shaped by the interactive behaviors of the three structures as they affect the social existence. The outcomes and social mandates of the interactive behavior create the environment for rent creation and harvesting.