Obstacles and threats to development
Though there is not explicit and direct correlation between the corruption and economic growth however, it is still considered as one of the direct hindrances into the economic growth of many developing countries such as countries such as India and other South Asian Countries.(The Economic Times,2004). However, corruption is not the only issue faced by developing countries which is basically hindering their growth as there are also other most emerging issues which need attention. Corruption and Bribery are however, still the two issues which are causing nations to lag back behind other countries because of existing bureaucratic structures in such countries. The nexus of politics and bureaucracy is forcing foreign investors to look for other ways through which they can enter into the market as honesty in dealings at Government and institutional level is considered as a thing of past.

Economist, in its December 23, 2006 reported a study which summarized that the bribery accounts for almost 8% of the total cost of doing business in Uganda. Such increase in cost would ultimately force the businessmen to increase the margins on their product therefore not only resources would be allocated inefficiently but the distribution of wealth will also be unjust.(The Economist,2004).

Though corruption is hard to measure and its economic impact on growth is even hard, however, it still is a problem not because it can hinder the growth but it can substantially affect the daily lives of the individuals living the country. This also means that the allowing corruption reduces the economic efficiency of the government institutions- the entities which are involved in allowing the private enterprises to operate in an economy. (Mauro, 1997).

Shining India was the slogan which was heard uptill now however, that dream seems to be marred behind India’s record as a country with history of corruption and bribery. Though States like Gujarat has been able to reduce the extent of corruption in government institutions however, Corruption is still prevalent in the very fabric of the bureaucracy of India. The recent book by Dambowski suggest how the non-governmental elements in Calcutta is forcing government to be more transparent by taking it to the court whereas courts are being considered as the stimulus behind ensuring transparency in the functions of the government.(www.eids.org,2009).

It is not only that the governmental agencies are involved in the process of corruption in India as the recent scandal of Satyam Computers very delicately indicates the subtleties of corruption in the country. This scandal also indicates that the regulatory grip over the institutions is falling as despite being one of the top organizations of the country, Satyam was left untouched as its executives continued to embark on corruptive practices.(Timmons & Kahn,2009).

Similarly, other South Asian countries such as Pakistan, Bangladesh, and Srilanka are also at the forefronts of the corruption as corrupt bureaucracies are hindering the progress of all those countries towards achieving economic independence. The inefficient allocation of resources coupled with corrupt and sluggish bureaucracies are therefore causing those countries to not only to rely on external financing from institutions like IMF and World Bank but also put their resources under constraints.

References
1.      The Economic Times. (2004). Corruption and economic growth. Available: http://www.swaminomics.org/et_articles/et20040331_corruption_economicgrowth.htm. Last accessed 21 Feb 2009.

2.      Timmons, Heather and Kahn, Jeremy. (2009). Scandal reveals tenacity of corruption in India. Available: http://www.iht.com/articles/2009/01/14/business/corrupt.4-407803.php. Last accessed 21 Feb 2009.

3.      Mauro, Paolo. (1997). Why Worry About Corruption?. Available: http://www.imf.org/external/pubs/ft/issues6/index.htm. Last accessed 21 Feb 2009.

4.      www.eldis.org. (2001). Taking the State to court. Available: http://www.eldis.org/go/topics/resource-guides/governance&id=42053&type=Document. Last accessed 21 Feb 2009.

5.      The Economist. (2006). he etiquette of bribery: How to grease a palm. Available: http://armenians-1915.blogspot.com/2006/12/1315-etiquette-of-bribery-how-to-grease.html. Last accessed 21 Feb 2009.