A Museum to Reflect on Bureaucracy
The so-called “Bureaucracy museum” has recently opened in Berlin. Germany is known for its high level of bureaucracy, so much so that one of the electoral promises of the parties that would form the centre-left coalition was to eliminate the tangle of laws. However, reality seems to indicate that such initiatives may not be enough. The INSM (Initiative New Social Market Economy), a think tank specialising in market economics, has opened a museum dedicated to bureaucracy. The INSM, an organisation funded by the German industrial associations in the metal and electrical sectors, has long advocated the reduction of bureaucracy due to its effects on the country’s economy.
Impact of Bureaucracy on Productivity and Well-being
Bureaucratization, disregard by authorities, and restrictive administrative intervention negatively affect business productivity and job opportunities. Furthermore, these bureaucratic burdens also fall on citizens, generating a feeling of helplessness that affects their state of mind and well-being. The excess of regulations and bureaucratic procedures causes the rules to prevail over efficiency, effectiveness and respect for citizens, which leads to a feeling of distrust towards the administration and the tax authority.
Impact on Business Relocation
In a recent study on the relocation of companies in the regions of Lleida, it is revealed that bureaucracy is one of the main factors that lead companies to relocate. Most of the companies that left the region were small and medium-sized companies, and the reasons for relocation were mainly related to bureaucratization and the hostile attitude of the authorities towards the market economy.
Impact of Bureaucracy in Catalonia
Catalonia is in an unfavorable position in the bureaucratization rankings, which negatively affects the ability of industrial SMEs to start activities. Although it stands out for its cost, which represents 20.1% of per capita income, bureaucratic rigidity has led to the frustration of industrial projects and the relocation of companies, benefiting regions such as Aragon. This situation directly affects business productivity and the economic development of the region.
Challenges and Proposals to Address Bureaucracy
To combat the negative impact of bureaucracy, it is necessary to improve infrastructure, streamline administrative procedures through the creation of supra-municipal plans, encourage the creation of investment centers, promote entrepreneurs and companies, and have detailed data on deadlines. and resolutions of permits and licenses. The effective reduction of bureaucracy is essential for the benefit of both citizens and companies.
