Most OECD countries have made policies to reduce administrative burdens - cutting red tape - a political priority. Red tape is particularly burdensome to smaller companies and may inhibit entrepreneurship. These effects are more costly in global markets, where competitiveness can be affected by the efficiency of the domestic regulatory and administrative environment. Unnecessary reporting requirements are also affecting citizens and large firms. Results are wanted.
What can governments do? Strategies include reviews of the stock of regulations; reduction of administrative burdens; codification; simplification of administrative procedures and re-engineering; better multi-level co-ordination; and rapid introduction of e-government services. Supported by task forces and advisory committees, governments increasingly locate responsibility within a central administrative unit. This "whole-of-government" approach represents a major step in recent years, embedding administrative simplification in the overall regulatory quality system at the national level.
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