red tape in oecd countries challenges and responses n.
Download
Skip this Video
Download Presentation
Red Tape in OECD countries: Challenges and Responses

Loading in 2 Seconds...

play fullscreen
1 / 14

Red Tape in OECD countries: Challenges and Responses - PowerPoint PPT Presentation


  • 52 Views
  • Uploaded on

Red Tape in OECD countries: Challenges and Responses. Cesar Cordova-Novion Deputy Head Regulatory Reform Programme Beijing, China September 2001. What is red tape?. Formalities are an integral part of modern economies.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Red Tape in OECD countries: Challenges and Responses' - vivien-clemons


Download Now An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
red tape in oecd countries challenges and responses

Red Tape in OECD countries: Challenges and Responses

Cesar Cordova-Novion

Deputy Head

Regulatory Reform Programme

Beijing, China

September 2001

formalities are an integral part of modern economies
Formalities are an integral part of modern economies
  • Formalities are the main link between authorities and businesses and citizens
  • Governments require standard information to implement regulations and provide public services and products
  • As policies become more targeted to specific issues and populations, the need for information increases
  • But many regulations abuse of ex ante “paper” controls (‘command and controls’) rather than controlling actual compliance and change of behaviors (performance-oriented)
main impacts of red tape
Main impacts of red tape
  • On businesses
    • Reduces economic efficiency
      • impose unnecessary costs (time & money)
      • divert resources away from productive investments
      • hamper entry into markets
      • Cumulative effects
    • Impedes innovation and business responsiveness
    • Discourages entrepreneurship
  • On government
    • Hinders achieving policy goals
    • Encourages informality and growth of the grey sector
    • Fosters corruption and discretionary abuses
the cost of red tape 1
The cost of red tape (1)

Represents around 4% of the Business Sector GDP

OECD (2001) Businesses' Views on Red Tape Administrative and Regulatory Burdens on Small and Medium-sized Enterprises, Paris

the cost of red tape 2
The cost of red tape (2)
  • On average, each SME spent US$27 500 per year complying with tax, employment, and environmental formalities.
    • Total costs split into tax (46%),employment (35%) and environmental (19%) formalities
    • Though the latter is growing rapidly.
  • An average cost of US$4 100 per employee, or around 4% of the annual turnover of companies.
  • The majority of companies (around 60%) reported that administrative compliance costs increased over the period 1998-1999.
a dramatic regressive effect
A dramatic “regressive effect”

Annual administrative costs per employee by company size, average all countries

administrative simplification best practices
Administrative simplification Best practices

1. One-Stop Shops

2. Time-limits on administrative decision making

3. Licences reduction programmes

4. Technological means of reducing transaction costs

5. Special SME activities

1 one stop shops
1. One Stop Shops
  • Reduce search costs
  • Improve awareness of requirements
  • Variety of delivery mechanisms
  • One-stop shops as licensing clearing-house
  • From single level access to inter-governmental co-operation
    • Though this raises delegation and overlap issues
2 time limits on administrative decision making
2. Time limits on administrative decision-making
  • Statutory time limits enforces accountability
  • Consequences of failing time limits vary
  • ‘Silence is Consent’
    • Change the burden of prove
    • But, can lead to disproportional harm from non-conforming activities without an enforcement and compliance upgrade
3 licensing procedures
3. Licensing procedures
  • Rationalisation/reduction
  • Simplification
    • Information requirements
    • Attachments
  • From ex ante licensing to ex post control
  • Single identification number
  • Amalgamation of formalities
  • Central registry of all formalities with positive security
  • Quality certification of formalities
4 technological means to reduce transaction costs e formalities
4. Technological means to reduce transaction costs (e-formalities)
  • Forms on-line (“dematerialisation”)
  • On-line on-way transactions (electronic signatures)
  • On-line two-way interchange (EDI)
  • Security dimensions
5 special sme initiatives
5. Special SME initiatives
  • Institutional support
  • Special flexibility measures (supply model)
  • Exemptions from requirements
  • ‘Vouchers’ to compensate administrative costs
red tape reduction is a powerful leverage for regulatory reform
Red tape reduction is a powerful leverage for regulatory reform
  • Main beneficiaries are SMEs
  • Visible gains
  • Early gains
    • Easier than complex reforms of economic and social regulations
  • Linked to improvements of public administration and bureaucracy