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Yes.

Corruption (in both developed and undeveloped countries) means that tax-payer money and aid money that SHOULD be going to public services (hence, to the hands of the people) ACTUALLY ends up in the pockets of the elite.

In undeveloped countries, corruption is particularly harmful. As millions of dollars worth of aid money flows into poor countries, greedy leaders have even more reason to want to become president or prime minister or whatever. These power struggles between potential leaders leads to political instability. Furthermore, once a greedy leader comes into power, he or she tends to hand out government positions to friends and family members rather that to citizens who are actually qualified to do the job. Thus, corruption is a huge hindrance to a country's development.

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