CardSharp
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Democratic system (or any other system) does not give guarantee for corrupt-free system. This is the reason even in countries with hard penalty system faces such problem too. US is democratic country but there is Corruption but not on such level. The solution is to such problem is strong judiciary and proper enforcement of Law which again is corrupted in few countries including mine. We have Central Vigilence Committe (CVC) and Anti Corruption Buereu to control Corruption and then we, as normal people, have democratic right as Right to Information (RTI) and open juidiciary (PIL etc) but usage of both is again less.
Corruption often comes about because of weakness in the rule of law (http://en.wikipedia.org/wiki/Rule_of_law). In places like the US and Canada people have been following the rules for so many generations it is ingrained and becomes the societal norm.
For example, my parents when we lived in Germany often joked that every German had a tiny policeman in his/her head. These folks wouldn't cross the road without a stop light, would never litter, always respected public property etc etc.