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Bureaucracy, still a burden on economic activity in 2022 and in the future years

By: Dr. Alejandro Diaz-Bautista, Economist and Researcher.

In most cases, the high degree of bureaucratic processes in states and countries is one of the biggest blocks to economic growth.

The high amount of bureaucratic procedures that governments apply, causes a slowdown in processes as simple as the creation of a company or the opening of a commercial establishment.

Putting a greater number of barriers to economic activity is a complete mistake, but there are many countries that until now have not considered reducing their bureaucratic processes, since these represent a large amount of instant income.

The reduction of these processes, the creation of companies, hiring, as well as the reduction of highly bureaucratized processes would bring greater economic growth in the long term for Mexico and the United States.

The increase in obesity by state and federal governments is not healthy in any case, much less because of its opportunity cost, that is, because it represents the use of public resources that could be allocated to other productive projects with greater economic impact.

Bureaucracy in Mexico seems to be synonymous with inefficiency in state and municipal governments and governments are not concerned with improving, on the contrary, it seems that they seek to increase bureaucracy.

In Latin America, there is still a little controlled and observed bureaucracy, there are organizations that have been modernized very little. Therefore, there are no public officials with a philosophy of results and they are still more accustomed to working by inertia and that things will be resolved when they have to be resolved.

The low professionalization of civil servants contributes to the fact that local administrations continue to be far behind the way in which they work, for example, at the federal level, without the latter being a particularly efficient bureaucracy.

In addition to bad hiring practices, public entities are going through a serious problem in training their personnel. Personnel in local, state, and even federal governments tend to change in important ways every time there are elections and changes of government, so the learning curve of the state and municipal bureaucracy never stops growing.

While most of the entities do not have a true professionalization of the civil service, therefore, the opportunities for growth within the local and state public administration are very limited through the administrations.

It is necessary to carry out an in-depth economic study that evaluates the effectiveness of the bureaucracy, in terms of its cost-benefit, but also in its real contributions to economic development and the competitiveness of states and countries in the coming years. Dr. Alejandro Diaz-Bautista, International Economist and Research Professor at El Colef.

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