They themselves become corrupt beneficiaries of the system. Those who try to be honest are fired from their jobs, or worse. Because there is a widespread popular perception that those with money or in positions of power do not heed the law and can bribe their way out of trouble, confidence in the rule of law has eroded and been replaced by contempt for the justice system. Viktor Gitin, a former member of the State Duma from the democratic Yabloko Party, says that an independent, honest court system is badly needed in Russia. It's because our court-system doesn't work that many crimes and legal chaos are possible.
Corruption also hinders political and economic transparency, necessary in a democracy.
Key decisions are taken secretly by a few people for their own benefit. Corruption also holds back economic reforms and the development of a true market economy from which the majority can benefit because the status quo is the one convenient to those reaping the profits of corruption. Although some Western companies have undoubtedly taken part in corrupt activities in the post-communist countries, most have been dismayed by the adverse business environment fostered by corruption. Many Western firms and investors have withdrawn or reduced their activities because they are fed up with becoming the targets of corrupt officials demanding bribes, of being cheated by corrupt businessmen, of being at the mercy of a corrupt legal system. They feel the competition is unfair when they are competing against rivals who pay bribes and receive favored treatment.