This article explores the impact of unhealthy institutions on the overall social and economic development in the era of AIDS. It further presents the institutional barriers to HIV prevention and suggests ways to eliminate these barriers. The major barrier being considered is the corrupt practices in handling health sector reform programs. It was found that with the HIV/AIDS program embedded in this structure, it became nonfunctional. Therefore, to resolve such a barrier, policy and practice issues should be directly dealt with at the appropriate level. Furthermore, investment in information technology for the masses may also have a greater impact on HIV prevention in comparison with the standard health interventions. The fuller involvement of the public in disease prevention and health promotion is essential. Finally, development agencies could help the people more by mustering the courage to ensure healthy institutions in their midst.