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.
In 2016, Institute of Economic and Social Studies decided to establish and commemorate the International Bureaucracy Day. We chose the date of September, marked by the birthday of Ludwig von Mises, author of the brilliant analytical book Bureaucracy.
No, this is not a story about the fear of computers. This is the story of how well-established civilization gains can be transformed to send the citizens, businesspeople, and civil servants on a terrible odyssey with entirely new bureaucratic processes.
Part of today’s general disgust with political elites is the increasing disappointment of entrepreneurs with the countless declarations and promises of members of several cabinets, which remained just on paper. The new Slovak cabinet did not yet manage to regain the trust either.
The Entrepreneurs Association of Slovakia has already submitted a document to the Minister of Economy which includes 40 bureaucratic absurdities that were previously identified by both entrepreneurs and the lay public under the patronage of the Bureaucratic Nonsense of the Year project.
I can already see the ironic grins, since I suggest creating new bureaucracy to fight bureaucracy. By applying this suggestion, however, no new administration would be created. The existing one would be reorganized so there would be a clearly assigned authority and responsibility to accomplish this important priority.
Ukrainian exporters say that inefficient and non-transparent VAT refunds system and high levels of bureaucracy are the biggest obstacles for export. The survey also reveals that smaller enterprises tend to be more burdened by complicated customs procedures and lack of transparency in the operation of tax agencies.
The invisible hand is actually made of billions of very visible hands which put the products into shopping carts, receive payments, or shake other hands to complete a contract. The market is efficient because it is the only real “social” element of the arrangement of the society.
Under the European Charter of Local Self-Government, the internal administrative structure and the resources of the governments should correspond to the needs of the local population as well as ensure effective governance. However, statistical data shows the growth of municipal bureaucracy despite demographic decline.
To beat bureaucracy, you have to make your problem theirs, similarly to one of the Murphy’s laws, which we can use to hopefully manage to save our forests.