This “dance” where they pretend to be your friends when trying to extract that money and cigarettes from you when you are trying to get a service is extremely annoying. Want cigarettes? Put cigarettes on the requirements list.
Not to mention that the informality creates special class of corrupt officials that easily leads to mafia politics. Criminals develop relationships with these people and easily do stuff that they are not supposed to do and the law abiding people stress over the bribes and mood of the staff.
This even goes higher up, as paves the way for higher levels of corruption where things needs to be at scale and yet hush hush, exposing whole nations to political risks(from money laundering to terrorism).