Red tape

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Red tape is usually defined as excessive and/or unnecessary government regulations and bureaucracy that generate financial or time compliance costs. [1] [2] Red tape is in excess of the necessary administrative burden, or cost to the public, of implementing government policies and procedures. [3] [4] [5] [6] This definition is also consistent with popular usage, which generally views red tape as negative. [2] : 276, 278–279 

Contents

Red tape can hamper the ability of firms to compete, grow, and create jobs. [7] [8] Research finds red tape has a cost to public sector workers, and can reduce employee well-being and job satisfaction. [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. [12] The Canadian Federation of Independent Business estimated the cost to business of red tape arising from federal, provincial and municipal government regulations was $11 billion in 2020. [8] This represented about 28% of the total burden of regulation for businesses in Canada. [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. [14] [15]

Red tape definition

The term "red tape" is sometimes employed as "an umbrella term covering almost all imagined ills of bureaucracy," both public and private. [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. [8] [2] : 276  This definition is consistent with popular usage, which generally views red tape as negative. [2] : 278–279 

Whereas red tape refers to unnecessary rules, administrative burden (sometimes called "white tape") recognizes that regulations that are intended for useful purposes may nonetheless entail a compliance cost. [3] [16] [17] [2] : 276  [3] [18] [19] [20] Determining whether a regulation is justified rather than red tape can be difficult. Nevertheless, making the proper distinction is relevant when implementing reforms, and cutting red tape differs from deregulation. [15]

Origins and history

Bundle of US pension documents from 1906 bound in red tape NARA Backstage Pass (2011-08) - 14.jpg
Bundle of US pension documents from 1906 bound in red tape

It is generally believed that the term "red tape" originated in the early 16th century with the Spanish administration of Charles V, King of Spain and Holy Roman Emperor, who started to use red tape in an effort to modernize the administration that was running his vast empire. The red tape was used to bind the most important administrative dossiers that required immediate discussion by the Council of State, and separate them from files that were treated in an ordinary administrative way, which were bound with ordinary string. [21]

In Britain, Charles Dickens spoke of red tape in David Copperfield : "Britannia, that unfortunate female, is always before me, like a trussed fowl: skewered through and through with office-pens, and bound hand and foot with red tape." The English practice of binding documents and official papers with red tape was popularized in Thomas Carlyle's [22] writings, protesting against official inertia with expressions like "Little other than a red tape Talking-machine, and unhappy Bag of Parliamentary Eloquence".

As of the early 21st century, Spanish bureaucracy continued to be notorious for extreme levels of red tape (in the figurative sense). [23] In 2013, the World Bank ranked Spain 136 out of 185 countries for ease of starting a business, which took on average 10 procedures and 28 days. [24] Similar issues persist throughout Latin America. [23] [25] In Mexico in 2009, it took six months and a dozen visits to government agencies to obtain a permit to paint a house. [26] To obtain a monthly prescription for gamma globulin for X-linked agammaglobulinemia, a patient had to obtain signatures from two government doctors and stamps from four separate bureaucrats before presenting the prescription to a dispensary. [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. [28]

Cost of red tape

It is impossible to know exactly how much of the burden of government regulations is red tape — ie, is excessive and delivers little or no benefit. However, a survey by the Canadian Federation of Independent Business (CFIB) found red tape represented about 28% of the total burden of regulation in Canada in 2020. [8] The total cost of regulation for U.S. business was estimated in 2021 at US$364.3 billion, and for Canadian business in 2020 at US$31.9 billion, or CAN$38.8 billion. [29] This cost represents 1.5% of GDP for the U.S. and 1.7% for Canada. [30] [31] [32] [33]

The CFIB estimated that the cost of red tape arising from Canadian federal, provincial and municipal government regulations was $11 billion in 2020. (This excluded covid-19 related costs, to make the amount more comparable to previous years.) [8] The annual cost of red tape per employee was higher for firms with fewer than 5 employees, at $1945, versus $398 for firms with 100 or more employees. [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. [34] The European Union's (EU) "Cutting Red Tape in Europe" report presented suggestions on how to reduce the administrative burden when member states implement EU legislation. [35] The total administrative burden reduction potential of all recommendations in the report was estimated to exceed 41 billion euros annually. [35]

While a regulation may be useful, the cost of imposing it may exceed the benefits. 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. [36] Since the 1970s, Australian governments have sought to subject regulation to rigorous cost-benefit analysis so as to constrain both the stock and flow of the regulatory burden. [37]

Red tape reduction initiatives

It can be difficult to distinguish between justified regulatory costs and unneeded regulations. For this reason, the expression "cutting red tape" has been used to refer to both initiatives to reduce unnecessary regulation, and to policies to reduce the overall regulatory burden. [15]

Canada's Red Tape Reduction Act of 2015 implemented a one-for-one rule that requires the removal of a regulation each time regulators impose a new administrative burden on business. [13] Nevertheless, while Regulations decreased from 684 to 605 between 2014 and 2023, regulatory Requirements increased from 129,860 to 149,401. [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. [15] After three years, a 37% reduction was achieved. A central element of the program was a strong commitment from the minister responsible and the provincial premier. [14] [15]

In the United States, cutting red tape was a central principle of a 1993 National Performance Review study requested by the Clinton Administration. [38] In November 2024, U.S. President-elect Donald Trump said Elon Musk and Vivek Ramaswamy would co-lead a new Department of Government Efficiency which would provide advice from outside government on methods to "slash excess regulations", among other objectives. [39] [40]

Perceptions of red tape

Applying rules consistently can affect the extent to which individuals perceive that red tape exists in a government agency. [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. [41]

Perception of red tape (as opposed to useful regulation) may be relevant in the public service context, since employees may be more willing to comply with rules that they perceive as valuable. [42]

Red tape and public sector employee job satisfaction

Red tape can reduce employee flexibility and autonomy, thereby reducing job satisfaction. [9] A 2022 study that used survey data from 354 school principals in Chile found they experienced increased emotional exhaustion and risk of burnout when they were advised of a potential increase in red tape in the form of compliance tasks. [9] Research conducted into experiences of public-school leaders and teachers in Belgium found that when employees were faced with high levels of red tape from utilising digital tools, they were more likely to experience emotional exhaustion and, therefore, have higher turnover intention. [11]

A study of Dutch child welfare employees showed red tape reduced interactions with clients and job effectiveness, which decreased job satisfaction. [10] Highly motivated employees were found to be more sensitive to burdensome rules and procedures. [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] This report found that internal red tape is a significant concern for public servants. Key issues included having unclear direction on rules, policies, and guidelines; and poor internal client service. [43]

See also

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References

  1. ↑ "Red Tape Awareness Week 2025". Canadian Federation of Independent Business.
  2. 1 2 3 4 5 6 Bozeman, Barry (1993). "A Theory of Government "Red Tape"". Journal of Public Administration Research and Theory: 273–303.
  3. 1 2 3 Herd, Pamela; Moynihan, Donald P. (2019). Administrative Burden: Policymaking by Other Means. Russell Sage Foundation. p. 18. ISBN   978-1-61044-878-9.
  4. ↑ Peeters, Rik (2019-06-06). "The Political Economy of Administrative Burdens: A Theoretical Framework for Analyzing the Organizational Origins of Administrative Burdens". Administration & Society. 52 (4): 566–592. doi:10.1177/0095399719854367. ISSN   0095-3997. S2CID   195561302.
  5. ↑ Burden, Barry C.; Canon, David T.; Mayer, Kenneth R.; Moynihan, Donald P. (2012). "The Effect of Administrative Burden on Bureaucratic Perception of Policies: Evidence from Election Administration". Public Administration Review. 72 (5): 741–751. doi:10.1111/j.1540-6210.2012.02600.x. ISSN   0033-3352. JSTOR   41687989.
  6. ↑ Heinrich, Carolyn J. (2015-12-08). "The Bite of Administrative Burden: A Theoretical and Empirical Investigation". Journal of Public Administration Research and Theory. 26 (3): 403–420. doi:10.1093/jopart/muv034. ISSN   1053-1858.
  7. ↑ "Red Tape Reduction Initiative | Business". Gov.nl.ca. Archived from the original on 2012-11-09. Retrieved 2012-10-09.
  8. 1 2 3 4 5 6 7 Cruz, Keyli Kosiorek; Jones, Laura; Matchett, Taylor (2021). "Canada's Red Tape Report: Sixth Edition".
  9. 1 2 3 Fuenzalida, J., Gutiérrez, L., Fernández-Vergara, A., & González, P. (2022). Red Tape and burnout risks of public service managers: Evidence from a survey experiment of school principals. University of Oxford.
  10. 1 2 3 Steijn, Bram; Van Der Voet, Joris (2019). "Relational job characteristics and job satisfaction of public sector employees: When prosocial motivation and red tape collide". Public Administration. 97: 64–80. doi:10.1111/padm.12352.
  11. 1 2 Muylaert, Jolien; Decramer, Adelien; Audenaert, M. (2022). "How Leader's Red Tape Interacts With Employees' Red Tape From the Lens of the Job Demands–Resources Model". Review of Public Personnel Administration. 43 (3): 430–455. doi:10.1177/0734371X221087420. hdl: 1854/LU-8750823 .
  12. ↑ Keyworth, Tim (2006). "Measuring and Managing the Costs of Red Tape: A Review of Recent Policy Developments". Oxford Review of Economic Policy. 22 (2): 260–273. doi:10.1093/oxrep/grj016/.
  13. 1 2 Treasury Board of Canada Secretariat, Government of Canada (22 December 2022). "Red Tape Reduction Act".
  14. 1 2 3 4 Bedard, Mathieu; Falcon, Kevin (2019-02-07). "How to reduce the regulatory burden: Gordon Campbell, the premier at the time, made sure all ministers were held accountable, through a process that could be described as cabinet peer pressure". The Hill Times. Retrieved 2021-10-25.
  15. 1 2 3 4 5 6 Jones, Laura (11 November 2015). Cutting Red Tape in Canada: A Regulatory Reform Model for the United States? (Report). Mercatus Center, George Mason University.
  16. ↑ Herd, Pamela; Moynihan, Donald P. (2019). Administrative Burden: Policymaking by Other Means. Russell Sage Foundation. p. 22. ISBN   978-1-61044-878-9.
  17. ↑ Nisar, Muhammad Azfar; Masood, Ayesha (2022-06-28). "Are all Burdens Bad? Disentangling Illegitimate Administrative Burdens through Public Value Accounting". Asia Pacific Journal of Public Administration. 45 (4): 385–403. doi:10.1080/23276665.2022.2088581. ISSN   2327-6665. S2CID   250127477.
  18. ↑ Peeters, Rik (2019-06-06). "The Political Economy of Administrative Burdens: A Theoretical Framework for Analyzing the Organizational Origins of Administrative Burdens". Administration & Society. 52 (4): 566–592. doi:10.1177/0095399719854367. ISSN   0095-3997. S2CID   195561302.
  19. ↑ Burden, Barry C.; Canon, David T.; Mayer, Kenneth R.; Moynihan, Donald P. (2012). "The Effect of Administrative Burden on Bureaucratic Perception of Policies: Evidence from Election Administration". Public Administration Review. 72 (5): 741–751. doi:10.1111/j.1540-6210.2012.02600.x. ISSN   0033-3352. JSTOR   41687989.
  20. ↑ Heinrich, Carolyn J. (2015-12-08). "The Bite of Administrative Burden: A Theoretical and Empirical Investigation". Journal of Public Administration Research and Theory. 26 (3): 403–420. doi:10.1093/jopart/muv034. ISSN   1053-1858.
  21. ↑ Dickson, Del (2015). The People's Government: An Introduction to Democracy. New York: Cambridge University Press. p. 176. ISBN   9781107043879 . Retrieved 13 December 2015.
  22. ↑ p.1152, Brewer's Dictionary of Phrase & Fable, 17th Edition; Revised by J Ayto, 2005
  23. 1 2 Graff, Marie Louise (2009). CultureShock! Spain (6th ed.). Tarrytown, NY: Marshall Cavendish. p. 57. ISBN   9789814435949.
  24. ↑ Buck, Tobias (2 June 2013). "Spain hopes new law to cut red tape will attract entrepreneurs". Financial Times. The Financial Times Ltd. Archived from the original on 2022-12-10. Retrieved 13 December 2015.
  25. ↑ Jose Luis Guasch; Benjamin Herzberg (2008). "Increasing Competitiveness Through Regulatory and Investment Climate Improvements in Latin America; the Case of Mexico". In Haar, Jerry; Price, John (eds.). Can Latin America Compete? Confronting the Challenges of Globalization. New York: Palgrave Macmillan. p. 255. ISBN   9781403975430.
  26. ↑ Ellingwood, Ken (2 January 2009). "No stamp of approval for Mexico bureaucrats". Los Angeles Times. Retrieved 13 December 2015.
  27. ↑ Malkin, Elizabeth (8 January 2009). "For Redress of Grievances, Mexicans Turn to Bureaucracy Contest". New York Times. Retrieved 13 December 2015.
  28. ↑ Gereffi, Gary (1983). The Pharmaceutical Industry and Dependency in the Third World (2017 reprint ed.). Princeton University Press: Princeton. p. 110. ISBN   9781400886227 . Retrieved 11 January 2021.
  29. ↑ Regulatory Costs in Canada and the United States: A Small Business Perspective (Report). The Canadian Federation of Independent Business. February 2022.
  30. ↑ "Regulatory Costs in Canada and the United States: A Small Business Perspective". Canadian Federation of Independent Business. 16 February 2022.
  31. ↑ Statistics Canada. "Table 36-10-0222-01 Gross Domestic product, expenditure-based provincial and territorial, annual". doi:10.25318/3610022201-eng.
  32. ↑ "Nominal Gross Domestic Product for United States (NGDPXDCUSA)". Federal Reserve Bank of St. Louis.
  33. ↑ In 2021, U.S. GDP was US$23,681 billion. In 2020, Canadian GDP was CAN$2,220 billion.
  34. ↑ Keyworth, Tim (2006). "Measuring and Managing the Costs of Red Tape: A Review of Recent Policy Developments". Oxford Review of Economic Policy. 22 (2): 260–273. doi:10.1093/oxrep/grj016/.
  35. 1 2 High Level Group on Administrative Burdens, Edmund Stoiber (Chairman) (24 July 2014). "Cutting Red Tape in Europe: Legacy and Outlook, Final Report" (PDF).
  36. 1 2 Treasury Board of Canada Secretariat, Government of Canada. "Appendix C: administrative burden count; Annual Report for the 2023 to 2024 Fiscal Year: Federal Regulatory Management Initiatives".
  37. ↑ Freiberg, Arie; Pfeffer, Monica; van der Heijden, Jeroen (17 January 2022). "The 'forever war' on red tape and the struggle to improve regulation". Australian Journal of Public Administration. Wiley Online Library: 436–454. doi:10.1111/1467-8500.12534.
  38. ↑ Gore, Al (1993-09-10). From Red Tape to Results: Creating a Government That Works Better & Costs Less. Report of the National Performance Review. Education Resources Information Center.
  39. ↑ Trotta, Daniel (12 November 2024). "Trump names Elon Musk to lead government efficiency drive". Reuters.
  40. ↑ "Trump gives Elon Musk mission to cut costs, slash red tape". The Globe and Mail. 13 November 2024.
  41. 1 2 Kaufmann, Wesley; Ingrams, Alex; Jacobs, Daan (2021). "Being Consistent Matters: Experimental Evidence on the Effect of Rule Consistency on Citizen Red Tape". The American Review of Public Administration. 51 (1): 28–39. doi: 10.1177/0275074020954250 . ISSN   0275-0740. S2CID   225330022.
  42. ↑ Davis, Randall S. (2013). "Union Commitment and Stakeholder Red Tape: How Union Values Shape Perceptions of Organizational Rules". Review of Public Personnel Administration. 33 (4): 365–383. doi:10.1177/0734371X12453056. S2CID   154310022.
  43. 1 2 Blueprint 2020 Internal Red Tape Reduction Report: Cutting Internal Red Tape – Building a Service Culture. September 2016.

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