In a reddit thread on corruption, someone points out,
"Given a choice behind hiring a stranger that is brilliant or a friend that is competent, people will always hire the friend."
Well, yeah. The idea of economics, and hell, even the idea of government, is all about making people work harmoniously together even though they're not all friends. Economics and governmental systems are always trumped by friendship and personal ties, because they're fallbacks.
...except when people are principled, at which point, they become lonely.
http://www.reddit.com/r/Economics/comments/c84bp/how_realworld_corruption_works/ If you're interested. =P
No, I haven't figured out the silver bullet. Yes, I'm still working on it.