THE RELATION OF CORRUPTION TO DEVELOPMENT IS EVALUATED FROM BOTH THE REVISIONIST AND MORALIST PERSPECTIVES, SINCE CORRUPTION IN LESS DEVELOPED COUNTRIES IS NOT ONLY MORE PREVALENT BUT LIKELY TO HAVE DIFFERENT EFFECTS THAN IT DOES IN MORE DEVELOPED STATES. CORRUPTION MAY BE BENEFICIAL TO DEVELOPMENT BY CONTRIBUTING TO ECONOMIC PROGRESS, NATIONAL INTEGRATION, AND GOVERNMENTAL CAPACITY. ECONOMIC PROGRESS CAN BE ADVANCED BY CORRUPTION THROUGH CAPITAL ACCUMULATION, BUREAUCRATIC EXPEDIENCY, AND THE ENHANCEMENT OF ENTREPRENEURSHIP AND MINORITY INCENTIVES. IN ADDITION, CORRUPTION CAN FURTHER NATIONAL INTEGRATION BY OVERCOMING DIVISIONS BETWEEN ELITIST GROUPS AND EASING TRANSITIONS BETWEEN TRADITIONAL AND MODERN GOVERNMENT PRACTICES. GOVERNMENT CAPACITY IN NEW STATES IS LIMITED BY THE WEAKNESSES OF THEIR INSTITUTIONS AND THE FRAGMENTATION OF POWER, WHICH CORRUPTION CAN HELP TO CEMENT. THOSE WHO DISPUTE THE POSSIBLE BENEFITS OF CORRUPTION COULD ARGUE THAT IT INVOLVES COUNTERVAILING COSTS AND CLAIM THAT CORRUPTION IS ECONOMICALLY WASTEFUL, POLITICALLY DESTABLIZING, AND DESTRUCTIVE OF GOVERNMENT CAPACITY. THE PROBABILITIES OF BENEFITS OUTWEIGHING COSTS WILL VARY WITH THREE CONDITIONS: (1) A TOLERANT CULTURE AND DOMINANT GROUPS, (2) A DEGREE OF SECURITY ON THE PART OF THE CORRUPTED ELITE, AND (3) THE EXISTENCE OF SOCIETAL AND INSTITUTIONAL CHECKS AND RESTRAINTS ON CORRUPT BEHAVIOR. THE MATRIX DESIGN RELATES THE THREE TYPES OF CORRUPTION TO THE THREE TYPES OF DEVELOPMENT PROBLEMS. THE SCORES ARE A PRIORI JUDGMENTS THAT THE COSTS OF A PARTICULAR TYPE OF CORRUPTION ARE LIKELY TO OUTWEIGH THE BENEFITS FOR A PARTICULAR DEVELOPMENT PROBLEM OR SUBPROBLEM. THEY REPRESENT A SERIES OF TENTATIVE HYPOTHESES TO BE CLARIFIED BY DATA. THE MATRIX CAN BE EXPANDED OR ELABORATED AND SHOULD BE USED TO ADVANCE THE DISCUSSION OF THE RELATIONSHIP BETWEEN CORRUPTION AND DEVELOPMENT, SO THAT A PRIORI HYPOTHESES CAN BE REPLACED BY PROPOSITIONS BASED ON DATA GLEANED FROM FIELD WORK. FOOTNOTES ARE INCLUDED. (MRK)