Reducing Bureaucratic Burden

On September 9-10, 2019, the Interdisciplinary Center Herzliya hosted an international professional workshop on the subject of reducing bureaucratic burden. The workshop was organized by the Accountant General's Department in the Ministry of Finance, in collaboration with the Aaron Institute. Attendants included government representatives from Germany, Denmark and Israel (Prime Minister's Office, Ministry of Finance, Ministry of Economy, Central Bureau of Statistics), and a team of economists from Aaron Institute specializing in measurement and reduction of bureaucratic cost. The German and Danish experts shared with Israeli regulators some of their experience in measurement and reduction of bureaucratic cost. This internationally accumulated experience encompasses around twenty years of systemic, institutionalized regulatory activity aiming to reduce administrative burdens through a tried and tested methodology. The measurement of bureaucratic cost in developed countries employs a methodology called Standard Cost Model (SCM), which facilitates identification and mapping of government bureaucracy, measurement of bureaucratic costs, setting goals for reduction of bureaucratic costs, and reducing those costs. At the concluding discussion held after the workshop, which was attended by professional government officials, it was agreed that Israel should adopt the SCM methodology for measuring bureaucratic cost. The economists at Aaron Institute hope that this workshop will affect government policies concerning measurement and reduction of bureaucratic cost, and that the implementation of its conclusions will begin soon. The team at Aaron Institute is positive that such action will contribute to increased growth and will help utilize Israel's advantages in the global competition.

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