Governments have a range of tools and approaches at their disposal to simplify administrative processes. These range from traditional tools like the Standard Cost Model that measures and reduces unnecessary costs to recent innovative approaches like “sludge” that help to reduce psychological frictions. These approaches help improve services for those who need them most, such as citizens from vulnerable backgrounds, small- to medium-sized enterprises who lack the resources available to large companies, and people living and working in border regions who face the complexity of multiple administrative systems at once. The OECD provides guidance and best practices to help systematically reduce administrative burdens and improve the business environment.
Administrative simplification
Citizens and businesses interact with government every day, such as to set up a business, receive assistance or join public programmes. These interactions involve processes, which can be complex and impose significant burdens. These burden hinders economic growth and innovation while causing undue stress and irritation, with reactions including recent examples of farmers protesting in the streets of European capitals. Administrative simplification aims to reduce this bureaucratic complexity, making government processes more efficient and accessible. The OECD assists governments in simplifying processes and improving the efficiency of public services, ultimately making life easier for people and businesses while promoting trust in government institutions.
Key messages
Digital technologies offer tremendous potential for simplifying administrative processes and improving the delivery of public services. While governments must simplify procedures first, the addition of digital tools like one-stop shops, principles that emphasise “once-only” data requests, and adopting innovations such as AI have the power to take simplification to the next level. Realising these benefits also requires a focus on addressing potential challenges, such as the digital divide, data sharing, and data privacy concerns.
Outdated and rigid regulations can create unnecessary burdens and hinder the ability of businesses and society to respond to new challenges and opportunities. This is evident in the current era of rapid change, driven by digital transformation and unexpected events like the COVID-19 pandemic or inflation crisis. The OECD encourages governments to embrace a culture of continuous improvement, regularly reviewing and updating administrative processes to ensure they remain fit-for-purpose in a dynamic environment. By embedding agility and responsiveness into their regulatory frameworks, governments can better support resilience, innovation, and growth in the face of evolving policy challenges.
Context
Importance of controlling burdens up front
Controlling burdens up front in policy design is crucial for effective regulation. Doing so allows policy makers to proactively avoid unnecessary burdens from the start, avoiding frustrations, negative reactions, and spending resources to reduce burdens later on. This means regulatory proposals must undergo scrutiny, including an assessment of the options, analysis and evidence used to make the decision. However, OECD data shows that only around half of oversight bodies responsible for scrutinising drafts can return them for incorrect assessment of burdens, compliance costs or inadequate justification. Strengthening regulatory oversight bodies is crucial in controlling burdens from the outset.
Related policy issues
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Evidence is at the centre of regulating for results. Governments face complex challenges while society expects actions that maximise benefits and minimise costs. To make policies that meet these goals, governments need a smarter approach that uses evidence and risk-based approaches to make decisions. This avoids ill-conceived regulations that lead to public dissatisfaction and erode trust in government. Evidence-based regulation is crucial for tackling the most pressing problems of our time, including the climate crisis and the rising cost of living.Learn more
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Governments worldwide issue numerous regulations , including to address pressing global challenges related to climate change, the digital transformation, the delivery of essential services and more. However, designing good regulation is not enough – businesses and citizens need to follow them. This highlights the importance of evidence-based, data-driven and outcome-focused regulatory delivery by well-governed regulators that effectively oversee compliance and improve welfare for society. By doing so, governments can effectively respond to citizens’ demands, support economic and social growth, enhance public administrations.Learn more