But the study is historically specific to the 1960s and 1970s, when an industrial policy
of the type pursued by South Korea under a developmental state was possible. Under
the present WTO rules, many of those industrial policies are no longer possible. Thus
the practical implications are now less relevant. Another criticism of the model is that
it focuses wholly on growth and ignores other consequences of rent-seeking. For
example, rent-seeking may result in worsening income distribution, slower
eradication of poverty, and damage to the environment. Poverty and distribution may
be affected because rent is about gate-keeping, confining the control and decision-
making power among a few, and preventing others from sharing in this power (see for
example, studies on Malaysia and Indonesia by Mehmet, 1986, 1994). The
environment may suffer if business owners use their wealth to acquire de jure power
and make use of public funds to benefit themselves at the expense of the society as a
whole.