The Federation of Israeli Chambers of Commerce Bureaucracy Index worsened in third quarter

The index fell from 6.98 down to 6.7, close to 2009's all time low point of 6.36.

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November 25, 2013 16:37
1 minute read.
shekel and dollar exchange

shekel versus dollar 370. (photo credit: REUTERS)

The Federation of Israeli Chambers of Commerce Bureaucracy Index, which grades efficiency of government offices, fell to 6.7 in the third quarter, down from 6.98.

For the first time since 2009's low point of 6.36, all of the offices assessed in the study scored below 7, showing a deterioration nearly across the board.

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"Reducing bureaucracy is and regulation is one of the most important engines of growth, and it is therefore regrettable that the government ministers still have not internalized the importance of reducing [them]," FICC President Uriel Lynn said.

According to the survey, done in association with SQ, 38% of businesses say that bureaucracy harms their business greatly, with red tape and wait time being the primary problems. Though the "reasonable" amount of time for addressing requests is set at 3.18 weeks, on average it takes 9.67 weeks.

Part of the decline is seasonal, SQ CEO Shai Chayon explained; the holiday season in the third quarter throws a wrench in the already slow-moving government machinery. The ministries of Economy, Interior and Health had the greatest reduction in services, each dropping over a half-point in the rankings.

On the bright side, the Transportation Ministry was the least difficult to deal with, while the court system continued to show marked improvements. In 2011, it scored a measly 5.8--the lowest score given since 2008. In the last quarter, it reached 6.57, proving the only ministry in the rankings to show an improvement.


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