In a fast-changing and complex environment, governments are striving to maintain streamlined regulatory design and implementation that will enable growth and societal protections. The OECD Simplifying for Success (S4S) survey provides emerging evidence on where rules and procedures are considered most burdensome and on ongoing simplification efforts. This report highlights priority areas for regulatory simplification and reform, helping governments address both symptoms and root causes of excessive regulation, and offering policy considerations for more efficient and effective rulemaking.
Smart Regulations, Strong Business
Enabling Growth and Societal Protection in a Fast‑Changing World
Introduction
Key figures
72%
of government respondents, and business organisations in 90% of countries, agree that regulation and bureaucracy are excessive
in 77%
of countries, business organisations say administrative compliance costs increased in the past 3 years
89%
of government respondents say past burden reduction and simplification efforts were partly successful at best
Construction and public administration/procurement are simplification priorities for both government respondents and business organisations
Targeting simplification efforts on priority areas is critical to maximise effectiveness and efficiency. Construction and real estate and public administration/procurement emerge as common priority sectors for both business organisations and government respondents. Despite broad agreement in most areas, business organisations attach higher priority to utilities and manufacturing than government respondents do.
Reporting costs are widely viewed by business organisations as most burdensome, ahead of direct compliance expenses
Overall reporting costs are the most widely cited source of burden, identified by business organisations in 67% of countries, followed by compliance costs associated with substantive requirements (53%). This highlights that regulatory burdens often stem not from the rules themselves, but from how their implementation impacts day‑to‑day business activities. The repetitive nature of administrative processes such as reporting can exacerbate the burden experienced over time.
Regulatory design and implementation are seen as poorly co-ordinatedÂ
Lack of consistency and co-ordination in how regulations are designed and implemented increases burdens for businesses. Business organisations in 70% of countries feel regulations are generally inconsistent. In over half of countries, business organisations indicate that permit application processes and timelines lack co‑ordination across government, while 70% indicate that inspection processes are unpredictable and duplicative.
Data and interoperability are the top challenges to the application of digital tools in simplification efforts
While most governments report using digital tools in simplification efforts, the depth of their application appears limited: even the most common use – data analysis – is reported by just 40% of countries. This is partly due to fundamental barriers that limit the application of digital tools. Most governments highlight data challenges (66%) and lack of IT interoperability (54%) as key constraints. Almost half of governments also indicate a lack of digital skills, and one-third report a lack of effective IT systems and financial resources.
What can governments do?
To cut red tape from day-to-day regulatory compliance procedures – including reporting, inspections, licensing, and permitting – governments must consistently adopt risk-based, data-driven, and digital approaches. Planning for implementing procedures and processes needs to be hardwired into the design stage of regulations.
Early and proportionate analysis of evidence and stakeholder engagement are essential to compare different options and keep rules simple from the outset. In doing so, governments should scan the horizon for emerging issues, leverage flexible and outcome-based approaches and co-ordinate action across sectors and borders.
