Most important, middlemen reduce transaction costs for citizens andofficials alike. Thus, while middleman corruption falls far short of the ideal sorts of market,government and personal systems of “micro-coordination” assumed in many accounts of the effects of corruption, it may well be a better way of getting things done than most of the alternatives actually available.
The analysis yields a more subtle but precise view of how cultural factors
– especially mediating social institutions – figure into the study of corruption, and may suggest reasons why extensive corruption and solid economic growth have coexisted in India for decades.