América Latina está aplastada por la burocracia

Atlas Network on How Bureaucracy Sinks Latin America

The Atlas Network’s Latin American Red Tape Index reveals the complex reality of the cost of regulation in the region.

[Leer en español]

El American interviewed Ana Lilia Moreno, coordinator of the competition and regulation program at México Evalúa, and one of the authors of the Latin American Bureaucracy Index 2021.

This analysis, created by the Center for Latin America of the Atlas Network, studies and describes the enormous weight of bureaucracy in Latin American societies, where despite modernizing efforts, governments remain, in general terms, a crude, slow and even corrupt machine.

Ana Lilia explains that red tape ends up becoming a time tax; a cost in terms of resources and time that companies dedicate to comply with regulations that can reach absurd extremes.

Argentina’s bureaucracy, among the worst in the region

According to the report “A small company in Argentina must carry out 48 formalities…. This implies spending 794.6 hours a year on these obligations… Considering a year with 249 working days, this implies that a company must dedicate a little more than 3 hours per working day to comply with the requirements established by the State.”

In contrast, Moreno highlighted the situation in Brazil, where bureaucratic regulations represented “a much smaller burden for microentrepreneurs in terms of hours, approximately 100 per year.” In other words, in Brazil you have to spend up to 8 times less time on paperwork than in Argentina, and that is just a small sample of the complexity of the bureaucracy landscape in the region.

Don’t miss the full interview in the video above and on our YouTube channel, where you can follow us to keep up to date with our different topics.

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