OECD - Administrative Simplification in the Mexican Social Security Institute

The main objective of regulatory policy is to improve the daily lives of citizens through clear and effective rules. Laws and regulations affect all areas of business and life. They determine the contours of our safety and lifestyle, the ease of doing business and may help the achievement of societal and environmental goals. While good regulation is conducive to economic growth and well-being, inadequate regulation endangers both.

Improving and simplifying administrative formalities is an essential element of good regulatory policy. The way in which formalities are designed, implemented and enforced has a direct impact on their effectiveness, and thus, on their capacity to achieve the underlying public policy objectives.

The 2012 Recommendation of the Council on Regulatory Policy and Governance advises member countries to have programmes of administrative simplification that include measurements of the aggregate burdens of regulation where feasible and consider the use of explicit targets as a means to lessen administrative burdens for citizens and businesses.

Effective and efficient formalities make the daily lives of people easier and can promote the smooth operation of businesses. Moreover, simpler formalities are especially beneficial to small and medium-sized enterprises, where the proportion of resources allocated to administrative procedures is greater, compared to larger companies. They also benefit citizens who very frequently must go through government procedures to access public services. Streamlined formalities can also generate benefits for the public sector by increasing its efficiency.

The report Administrative simplification in the Mexican Institute of Social Security assesses the actions taken by the Mexican Institute of Social Security in recent years to improve its formalities, and estimates the savings in administrative burdens for citizens and business due to simplification. It also identifies actions that can reduce the burdens further.

This report is the result of an important partnership between the Mexican Institute of Social Security and the OECD. It is designed to benefit citizens and businesses in Mexico and to contribute to the international debate on good regulatory practices.