Larger-scale, more obscure corruption thrives. Everybody knows that most political campaign contributions are made with the expectation of a return on investment. If you're an ordinary citizen, though, you don't have to worry about being shaken down by a bureaucrat or a traffic cop.
I took a group of Indian engineers to the immigration office (Japan) to get some paperwork done, once. The particular type of paperwork they needed has a $40 filing fee.
"So Patrick, how much does [the paperwork] cost?"
"There is a [$40] filing fee."
"Right, and how much will the clerk want? Maybe I should ask for it instead of you. I can pretend to be a poor Indian, you are wearing a business suit so he'll surely want more."
My mind vapor locked for about half a minute there. I mean, you know in a theoretical sense that bribery happens in Western democracies, but you certainly don't expect it to ever hit your daily life. I grew up in Chicago, which is about as corrupt as America gets, and the notion of paying extra for e.g. a driver's license a) wouldn't occur to me to try and b) would bring down an administration if it were discovered (it has in Illinois).
Incidentally, the Japanese immigration office doesn't take money directly for the forms. You go over to someone who sells revenue stamps, buy a stamp, and affix it to your form. This is a brilliant centuries-old hack design specifically to make corruption difficult -- because money doesn't normally change hands between the applicant and person with decisionmaking authority, there is no opportunity for the clerk to pocket the fees and there is no chance that "a little extra" on top of the fees would go unnoticed.
The traffic sucks because most traffic police are jerking off somewhere. If you want to get something done (e.g. setup a business) you should know someone with influence. A new risk in big cities is if you own a land there is a risk of the property being forcibly occupied by a thug and the police wouldn't do much.
It is less of a problem in some countries than others, by more than an order of magnitude. Transparency International is one organization that publishes studies of corruption in different countries.
Think of something crazy to do right now... someone has done it. Because they took it too far.
"No man is good enough to govern another man without that other's consent. " -Abraham Lincoln