Zero bureaucracy - stopping the increase in administrative burdens

The regulatory framework adopted in recent years has significantly increased the administrative burden on business in order to streamline operations in certain business areas, limit the informal economy and ensure fair market competition. On August 20, the State Chancellery presented to the government asolution to the Zero bureaucracy approach to stop its further growth .

“In recent years, there has been an increasing negative impact of the regulatory framework on the business environment, as evidenced by the results of several studiesand business surveys . Likewise, there is a lack of a unified and effective solution for the reduction of administrative burden in public administration, which the State Chancellery, as the coordinating institution in the reduction of administrative burden in Latvian public administration, has decided to develop. Namely, with the involvement of the Ministry of Economics, which already has experience in designing and implementing business improvement measures, as well as evaluating the experience and practice of several countries and the Organization for Economic Cooperation and Development (OECD), we see that principle, ”states the Director of the State Chancellery Jānis Kitaskovskis.

An administrative burden is placed on the economic operator by any obligation to comply with legal requirements relating to the reception, processing or storage of information, such as reporting, obtaining permits, implementing a verification, audit or control system, meeting qualification requirements, etc. etc. The zero-bureaucracy approach is based on the net-zero principle of balancing the administrative burden on business.

How will this principle work in life? When submitting to the Cabinet a draft legal act which increases the administrative burden, the applicant (i.e. the line ministry) will have to simultaneously submit a draft law reducing the burden to the same target group by an equivalent amount. If the new draft legislation entails new costs, it will be offset by reducing the administrative and compliance costs of existing regulation to the same extent, so that the changes result in a zero balance . It will be mandatory for the ministry to involve business representatives in the process of drafting the legislative package, coordinating with them the cost estimates for the administrative burden. The Ministry of Economics will also provide opinions on such draft legislation, while the State Chancellery will provide itSupervision and control of compliance with the conditions of the zero bureaucracy approach.

“The introduction of a zero-bureaucracy approach is of strategic importance - engaging economic operators in a particular sector in the early stages of drafting a legislative proposal will facilitate the development of sound, effective and user-friendly solutions. Conversely, should the administrative burden on this target be increased, the public authority will be obliged to offer an equivalent burden reduction. It will encourage thinking outside the box and find innovative solutions beyond the competence of your institution. We believe that such an approach will contribute to the reduction of regulatoryism and to the principle that the regulatory framework is used only when all non-regulatory options have been exhausted, ”explains Marina Blaske, a consultant at the Public Administration Policy Department.

Compliance with the principle of a zero bureaucracy approach is planned for late 2019. Initially, using the Zero bureaucracy approach, it is intended to limit the burden on business, later on NGOs and society as a whole.

In order to help everyone working in the public administration or local government to make a qualitative calculation of the burden created and to develop the best possible solutions, the State Chancellery has developed practical guidelines “Innovation Process for Reducing Administrative Burdens” . They provide a sequential description of the steps in the process, with examples, tools and tools to help identify and reduce administrative burdens, and to find ideas for innovative administrative simplification.

Zero bureaucracy approach briefing paper by the State Chancellery .

 

 

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