Corruption poses a serious development challenge. In the political realm, it undermines democracy and good governance by flouting or even subverting formal processes.

Corruption in elections and in legislative bodies reduces accountability and distorts representation in policymaking; corruption in the judiciary compromises the rule of law; and corruption in public administration results in the unfair provision of services.

More generally, corruption erodes the institutional capacity of government as procedures are disregarded, resources are siphoned off, and public offices are bought and sold.

At the same time, corruption undermines the legitimacy of government and such democratic values as trust and tolerance.

URL- http://en.wikipedia.org/wiki/Political_corruption#Effects_on_politics.2C_administration.2C_and_institutions