Besides commercial organizations, the industrial era has rewarded us with another group of organizations. They are part of the governmental structure, although they are not always “managed” by that government.
While we’re groaning under the strain of powerless governments and politicians, there are a number of “independent official bodies with administrative duties” operating in the twilight zone between the democratically elected and appointed government, its politicians, and society.
These bodies operate inefficiently in a government-created position of monopoly, and they don’t have to justify their actions, except to their peers. In The Netherlands alone, there are 3,000 of those dim and non-transparent organizations: pension funds, housing corporations, power companies, telecommunications businesses, trading organizations, commodity boards, chambers of commerce, boards of public works, employers’ organizations, trade unions, the Social Economic Counsel, cable companies (infrastructure for television and Internet) as well as many supervisory and “levying organizations,” such as the Bureau of Musical Copyright.
These organizations, known as Quangos (quasi-autonomous non-governmental organizations) are good at one thing: raising the price of “servic” when they have a budget deficit. The consumer will, naturally, pay for it – he has no choice, and he should not dare complain!
Every country has its own system of quangos. These organizations are filled to the brim with regents, who shamelessly protect their own position and mainly enrich themselves. The system is completely ineffective.
They behave as casino capitalists, losing other people’s money, but most of them are still there. Quangos block off every social innovation. They have the money, the legislation, and the politicians on their side.
Within Europe, there is only one way out of the crisis: get rid of all these superfluous organizations. The organizational costs of these quangos run up to 10% to 15% of our GDP, so eliminating them would give us a European economic financial nudge, by rough estimation, of €1 trillion per year!