Question

"when resources are allocated politically, rent-seeking will"

Answer 1

If resources are allocated politically, rent-seeking will be a waste of resources.

Within strategic planning, you want to plan where and how the resources will be used. The goal is not to waste resources on one thing when they can be put to better use elsewhere.

Answer 2

Political allocation of resources usually refers to socialism or communism. In such a case, rent-seeking might be a loss making venture as there is very little space for the free market to manuver.

Some resources such as defence and law & order should be managed by the government. However, government involvement in things like allocation of housing, rent etc will only result in a disaster.