Abstract
This paper will examine how perpetuating corruption, historical aspects of colonialism and extractive institutions are significantly linked and affect the democratic institutions and economic development of a country. Using Bangladesh as an example, it will demonstrate that although its economic growth rate is currently high, it will become difficult to maintain this rate because the issue of corruption and extractive institutions has a detrimental impact on sustaining overall growth. Three recommendations are offered to tackle these issues, first recommendation is empowering the anti-corruption commission force by giving it more legal autonomy in order to curb corruption at a national level; second recommendation is to form a joint task force between the anti-corruption committee and citizens to promote a stronger civil society, diversity and awareness programs. Lastly, an institutional-level reform is recommended to promote inclusiveness in political institutions. The methodology for this paper uses qualitative research through theoretical analysis.