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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.
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Gerardo Garibay Camarena, is a doctor of law, writer and political analyst with experience in the public and private sectors. His new book is "How to Play Chess Without Craps: A Guide to Reading Politics and Understanding Politicians" // Gerardo Garibay Camarena es doctor en derecho, escritor y analista político con experiencia en el sector público y privado. Su nuevo libro es “Cómo jugar al ajedrez Sin dados: Una guía para leer la política y entender a los políticos”