While this article on issues with India’s procurement of a military helicopter purchase, it acutally shows a deep problem throughout Indian society that can be extrapolated to most of the emerging Asian economies. (Paid subscription required)

The illegal use of middlemen, impending 2009 elections and regional geopolitical issues are all likely to slow India’s weapons acquisition process just as the world’s industry is gaining unprecedented access to what is expected to be a $40-billion market.

India’s army is the most recent casualty. The government halted the acquisition of 197 Eurocopter AS550 C3 Fennec helicopters as replacements for 1970s-vintage Chetak and Cheetahs when allegations surfaced that middlemen had been used to seal the deal. Indian law prohibits their involvement in military procurements.

As corrupt and self-serving as the Western and Russian defense industries are, you don’t find this as the rule. It’s the exception.

In the West, they shave the rules, in much of the developing world, the rules are observed, at best, in the breach.

I think that this will present a barrier to further development at some point.