Corruption stifles economic progress by distorting markets, discouraging investment, and undermining public trust.
It exacerbates social inequities by diverting resources away from critical services and erodes democratic government by weakening the rule of law.
When jobs (or contracts) are given to people (or companies) who offer bribes or share a personal connection, this occurs to the detriment of competition. The result is that more qualified candidates and firms are turned down. The more widespread such practices are, the more inefficient the economy becomes.