The Netherlands and the revolution in measuring the cost of administrative procedures.

For over two decades, the Netherlands has been considered a pioneer in developing quantitative tools to reduce administrative procedures and lessen the legal burden on businesses. The country has developed a specific measurement method called the "Standard Cost Model" (SCM). This tool helps the government accurately calculate the costs that businesses and individuals incur to comply with administrative regulations.

This model quickly became an international benchmark, adopted by the European Union, the OECD, and many countries around the world in administrative reform and bureaucratic streamlining programs.

The emergence of SCM

SCM was developed in the Netherlands in the late 1990s amidst persistent complaints from the business community about the increasing administrative burden. According to OECD documents, the Dutch government recognized that regulatory bodies often issued new regulations without adequately assessing the compliance costs for businesses. This resulted in businesses spending excessive time and resources on reporting, filing, data storage, and fulfilling administrative obligations instead of focusing on their core business operations.

Source: simplyamsterdam.nl

According to scm-network.eu, the core objective of SCM is to shift administrative reform from an emotional approach to a quantitative, data-driven governance model. This model measures the administrative costs incurred from legally required information obligations. These costs include time spent preparing reports, filling out forms, maintaining records, providing data to government agencies, or hiring consultants to ensure compliance.

With the SCM method, administrative costs are quantified using a standard formula, where the total cost is determined by multiplying the time spent performing the task by the salary of the personnel performing it, and then multiplying that by the number of times the task is performed and the number of affected parties. A notable aspect of this model is its ability to "quantify" costs that were previously considered intangible in public administration. These costs, especially in the process of complying with administrative procedures, are often difficult to fully reflect using traditional measurement methods. The Dutch government considers this a significant step in policy reform, helping policymakers better understand the actual economic impact of legal regulations, thereby enhancing transparency and efficiency in policymaking.

One of the distinguishing features of the SCM is its simplicity and broad applicability. According to the OECD, the Netherlands designed this model to be user-friendly so that all ministries and departments could apply it in the policy-making process. The Dutch government also requires agencies to assess administrative costs before issuing new regulations. This creates an internal control mechanism to limit "procedural inflation."

Another important element in the Dutch model is the establishment of independent oversight bodies to control the administrative burden. In the Netherlands, the Advisory Council on Regulatory Burden (ATR) plays a role in reviewing the impact of new draft laws on businesses and citizens. According to the ATR, every important draft regulation must clearly assess the compliance costs and the potential for reducing the administrative burden.

2026: Smart Governance

Entering 2026, the Netherlands continues to expand the SMC philosophy into new areas such as digital data, artificial intelligence, and data-driven public governance. The Dutch government is now not only measuring the costs of traditional administrative paperwork but also assessing “regulatory pressure” in the digital environment and platform economy.

Under the "Werk aan Uitvoering" (Making it Better) program launched by the Dutch government, the country is undertaking a comprehensive reform of the relationship between policymaking and law enforcement. The Dutch government believes that for many years, the legal system has become overly complex, making it difficult even for enforcement agencies to operate effectively. The new program emphasizes designing simpler, more feasible policies and reducing administrative burdens right from the legislative stage. Service delivery must meet the expectations and needs of citizens and businesses, while also being humane, flexible, and adaptable to the future.

Another new trend in Dutch administrative reform is the use of real-time data to assess the impact of regulations. According to the updated 2026 Netherlands Digital Strategy report, the government is developing a data analytics system to directly monitor the impact of regulations on businesses and citizens. Government.nl reports that this allows the government to shift from a periodic assessment model to a continuous regulatory monitoring model.

In the field of public service digitalization, the Netherlands is also strongly promoting the "NL DIGIbeter" program, which is the National Digital Government Strategy. The goal of the program is to build public services that are "simple, accessible, and human-centered." The Netherlands emphasizes that citizens do not need to understand the administrative structure to use public services. Digital systems must be organized according to the actual needs of users rather than according to the structure of government agencies.

In 2026, the Netherlands will also accelerate the application of artificial intelligence in the public sector. According to the Ministry of Home Affairs, AI will be used to support document processing, data analysis, and the automation of many administrative processes to reduce processing time for citizens and businesses. However, all AI applications in the public sector must strictly adhere to principles of transparency, anti-discrimination, and privacy protection.

The new reforms in the Netherlands also reflect a shift from “procedural reduction” to “adaptive governance system design.” Many Dutch experts believe that in the digital economy, the issue is no longer just the number of procedures, but the complexity of the entire legal system and the ability of citizens to interact with the government. Therefore, the thinking behind SCM (Sustainable Management Process) is now expanding from measuring paperwork costs to evaluating the entire journey and experience of citizens and businesses when interacting with the administrative system.

Source: https://daibieunhandan.vn/ha-lan-va-cuoc-cach-mang-do-luong-chi-phi-thu-tuc-hanh-chinh-10417995.html