Red tape

[9][10][11] In 2005, the UK's Better Regulation Task Force suggested that red tape reforms could lead to an increase in income of 16 billion pounds per year, an amount greater than 1% of GDP.

[8] Some governments have introduced initiatives to limit or cut red tape, such as a one-for-one rule that removes one regulation each time a new administrative burden is imposed on business.

[13][14] Experience from British Columbia, Canada suggests a successful red tape reduction initiative requires strong political commitment.

[2]: 275 However, red tape is usually defined more narrowly as government policies, guidelines, and forms that are excessive, duplicative and/or unnecessary, and that generate a financial or time-based compliance cost.

[27] Mexico was the original home of Syntex, one of the greatest pharmaceutical firms of the 20th century—but in 1959, the company left for the American city of Palo Alto, California (in what is now Silicon Valley) because its scientists were fed up with the Mexican government's bureaucratic delays which repeatedly impeded their research.

[8] The Better Regulation Task Force suggested in 2005 that red tape reforms could potentially deliver an increase in income of 16 billion pounds per year, an amount greater than one percent of UK GDP.

The Canadian federal government applies a cost-benefit analysis to most regulatory proposals, which takes into account the cost of the policy to consumers, businesses, and other sectors of society.

[14][36] A more successful reduction in red tape took place in the province of British Columbia, Canada, following a 2001 election promise to reduce the regulatory burden by 33%.

[15] At the time, regulation was heavy, with rules imposed on, for example, the size of televisions in restaurants, the number of par-four holes at golf courses, and the maximum seating capacity of ski hill lounges.

[41] A survey-based experiment in the context of a jury duty summons found inconsistently-applied rules may be viewed as ineffective or unfair, fueling the perception of a high level of red tape.

[10] In 2020, the Canadian government released the Blueprint 2020 report, which brought together insights from engagements with over 2,000 public servants about their experiences with internal red tape.

[43] While efficient government institutions can foster economic growth, cumbersome and/or unnecessary bureaucracy that delays permits and licenses slows technological advances.

[44] Policies that require government regulation and bureaucratic intervention can stifle economic progress, as has been documented by economist Anne Krueger in the context of an import-substitution development strategy.

[45][46]: 298 This type of policy reduces the incentive to produce exports, thereby generating a foreign exchange "shortage" that puts pressure on governments to restrict imports to high priority areas such as medicines over consumer luxuries.