Bureaucracy Index was introduced in Slovakia in 2016 by Institute of Economic and Social Studies (INESS) to emphasize the amount of red tape a small entrepreneur has to overcome on a daily basis.
It is based on a straightforward methodology, using an analysis of a model company (a micro company with 4 employees, producing blacksmith products) and all its bureaucratic duties (ranging from taxes, worktime planning through health and safety, and waste management) are assigned a specific time cost.
INESS has been actively seeking international partners. This year, Slovakia was joined by partner think tanks from Lithuania (Lithuanian Free Market Institute/Enterprise Lithuania), the Czech Republic (Liberal Institute), and Ukraine (Easy Business).
Slovak entrepreneurs have to spend 222 hours per year on bureaucracy, followed by the Czechs with 233 hours, the Lithuanians with 252 hours, and ending with the Ukrainians, who have to devote 469 hours to bureaucratic burden per year.
The Index has a growing reputation. It attracted media attention in all participating countries. We recorded 23 mentions in national media just in Slovakia within 24 hours, including live TV discussion.
Even more importantly, the Index caught the attention of the responsible policymakers in all four countries, with the Ministries of Economy either guest-starring at the press conferences, or even directly participating in the creation of Bureaucracy Index.
Bureaucracy Index results in Slovakia, the Czech Republic, Lithuania, and Ukraine
If you are interested to learn more about the Bureaucracy Index or even to join and prepare your country calculations for 2019, visit http://bureaucracyindex.org/ or contact INESS directly!
Bureaucracy Index was supported by the Friedrich Naumann Foundation.