Abstract: "The paper stresses the need to keep the issue of corruption in view in the development agenda. It discusses the causes and consequences of corruption, especially in the context of a least developed country, with an economy under considerable regulation and central direction. Lack of transparency, accountability and consistency, as well as institutional weaknesses such as in the legislative and judicial systems, provide a fertile ground for growth of rent seeking activities in such a country. In addition to the rise of the underground economy and the high social costs associated with corruption, its adverse consequences on income distribution, consumption pattern, investment, government budget and on economic reforms are discussed in the paper. The paper also touches upon the supply side of bribery and its international dimensions and presents some thoughts on how to address the corruption issue and to try to bring it under control."