I'm looking into a little side thing in India and we need a building
and a permit to do what we want to do.  Finding the property is a
piece of cake, but we can't get the permit without bribing the gov't
official and it's actually a negotiation that has been going on for a
few days.

All my Indian friends tell me this is the case with EVERYTHING there.
Need your visa renewed?  Bribe.  Get pulled over?  Bribe.  Need a
building permit?  Bribe.

How does a society move from bribery-based to integrity-based?

In America or Europe, if you tried to bribe a gov't official, 9 out of
10 times you'd find yourself in the klink; at least in my experience.

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