A pervasive element of daily life in Egypt is the baksheesh or bribe. As a tourist, almost everywhere you go you are hit up for money. Upon entering a cultural site, an amateur tour guide usually sweeps in to offer his services, after which a tip is expected. And simply getting from point A to point B in a taxi involves haggling over prices, and even then you aren't guaranteed that your driver won't try to jerk you around.

According to Egyptians expatriates I've spoken with, this aspect of Egyptian society extends to the workplace as well; in order to get ahead or get things done, one has to know who to pay off when. Mere talent and hard work are no guarantees of earthly rewards, a frustrating situation for those who just want to make an honest living. In America, we have laws but more importantly a culture that inveighs strongly against corrupt behavior, and for the most part punishes it when it is exposed (although we're no Finland!)

I gather that this "baksheesh culture" is an aspect of developing societies around the world. Data from Transparency International suggests that corruption among public officials and low GDP per capita go together. What I wonder is, which is the chicken and which is the egg? Can a country, by embarking on a program of reform like that mentioned here, break out of the grip of poverty? How important a factor is reduced corruption in increased growth? Or does economic competition somehow tend to make corruption less viable?