Wednesday, March 2, 2011

Checks (and balances) or checks (and bargains)?

Apparently, there are plans afoot to sell off Federal government real estate assets that are not in use.


Sure thing...no problem...we're in the red...raise some cash. Couple of national forests -- who needs them? We can always grow more trees.

However, I was struck by one item in the article:
"This approach will enable us to cut through the red tape and overcome the special interests and parochial politics that have traditionally slowed or halted progress when efforts have been made to reduce government's real estate footprint one asset at a time," the official said.
(emphasis mine).

Now I've seen my share of bad processes, but in my experience, a lot of what is considered "red tape" (i.e. administrative cost and process) is there precisely to put a check on special interests and other bad behavior. Probably the best way to cut red tape, the place you'll really get the biggest bang for your buck in efficiency, is to remove all the scrutiny on the real estate transactions. That's almost certainly where the big administrative costs are. But without the oversight, special interests may have free rein to bully petty government bureaucrats into selling the real estate at just about any price they choose.

In other words, you can cut through red tape OR you can overcome special interests. I question whether you can do both. Well...OK...you probably could do both (given that the oversight processes are sub-optimal). But if I were a betting woman, I'd put money on the cut-red-tape-only solution being implemented. In today's climate.

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