Here’s Peter Drucker, writing way back in 1969:
Whether government is “a government of laws” or a “government of men” is debatable. But every government is, by definition, a “government of paper forms.” This means, inevitably, high cost. For “control” of the last 10 per cent of any phenomenon always costs more than control of the first 90 per cent. If control tries to account for everything, it becomes prohibitively expensive. Yet this is what government is always expected to do.
The reason is not just “bureaucracy” and red tape; it is a much sounder one. A “little dishonesty” in government is a corrosive disease. It rapidly spreads to infect the whole body politic. Yet the temptation to dishonesty is always great. People of modest means and dependent on a salary handle very large public sums. People of modest position dispose of power and award contracts and privileges of tremendous importance to other people–construction jobs, radio channels, air routes, zoning laws, building codes, and so on. To fear corruption in government is not irrational. This
This means, however, that government “bureaucracy”— and its consequent high costs—cannot be eliminated. Any government that is not a “government of forms” degenerates rapidly into a mutual looting society.
(Emphasis added. I’m confident Professor Drucker would agree that whether the forms are paper or electronic makes no difference at all in this context.)
If government operations are fully proceduralized, to the point of eliminating individual employee and frontline manager discretion, they will be cumbersome and inefficient. If they are not fully proceduralized in this way, then they will be subject to widespread corruption and tyrannical behavior.
Hence, the expansion of government into all aspects of human life leads to increasing inefficiency, eventually resulting in sluggish performance across the entire economy–while the increasing frustration with bureaucracy results in a widespread demand to “make government more responsive” by giving more discretionary authority to administrators and to their political superiors. This, in turn, results in a government which is not only a looting society but a tyranny. Yet at the same time, there will still be enough baroque proceduralization (selectively enforced) to ensure high levels of inefficiency and very high government administrative costs.