Credit: Image generated by OpenAI's DALL·E, curated and formatted by Julie Cooper

The Hidden Strength of Government Inefficiency: Why Slow Systems Save Us

The Efficiency Trap

Imagine stepping into a leadership role and feeling like you’ve walked into a swamp. Every step is measured. Every movement is resisted. Progress feels agonizing. Decisions crawl. Approvals get stuck in layers of bureaucracy. It’s frustrating—like trying to run through quicksand.

If you’ve ever thought, “Why can’t government just move faster?”—you’re not alone.

The private sector idolizes speed. It admires companies that slash red tape, make decisions in real time, and race ahead like a sports car on an open highway.

But government is not a sports car—it’s a fortress. Slow, deliberate, and built to withstand disaster. And when it comes to public financial management, that deliberate pace often protects both money and people.

In fact, in public finance, inefficiency can be a built-in accountability mechanism—an intentional design to guard against error, corruption, and unintended harm.

History has shown us that when governments chase efficiency without caution, they don’t just make mistakes—they create catastrophes.

The Rush to Efficiency – A Leadership Dilemma

Take the example of Australia. It’s 2015, and the Australian Federal Government is determined to tackle welfare fraud. They see inefficiencies—people receiving social security benefits they may not be entitled to—and want a leaner, faster system to detect overpayments and reclaim taxpayer money.

Enter Robodebt—an automated data-matching system promising to slice through inefficiency. No more manual checks. No more human caseworkers second-guessing the numbers. Just cold, fast automation sending debt notices like arrows from a high-speed crossbow.

It was efficient. Until it wasn’t.

💥 False Accusations: Over 470,000 people were flagged, many incorrectly.
💥 Lack of Oversight: Decisions were made without human intervention.
💥 Mental Health Fallout: Suicides were linked to the distress caused by the system.
💥 Financial Fallout: The program was ruled unlawful. The government paid $1.8 billion in settlements and refunds.

Robodebt was a cautionary tale in PFM reform—demonstrating the risk of sidelining institutional checks in the name of technological efficiency.

When “Efficient” Systems Undermine Accountability

In many countries, PFM systems are designed to be measured—on purpose.

Take procurement, for example. In highly developed systems like those in Australia, the layered process of tendering, bid evaluation, and public reporting is not bureaucracy for its own sake—it’s a defense mechanism.

In 2021–22, Australia awarded over 90,000 government contracts worth $80 billion. Each contract is publicly listed on AusTender, enabling scrutiny from civil society, media, and Parliament. This openness contributes to Australia’s consistently high ranking on the Transparency International Corruption Perceptions Index (13th globally in 2023).

Compare that to countries with weak procurement oversight. In 2021, the World Bank estimated that up to 30% of health sector procurement budgets are lost to inefficiencies and corruption in some developing nations.

In this context, “inefficiency” becomes a safeguard. Yes, approvals take longer—but each step is a chance to ask: Is this lawful? Is this value-for-money? Is this fair?

International Aid – When Speed Bypasses Local Systems

Good PFM systems are central to the effectiveness of aid. But in fragile states, donor impatience can undermine the very systems they claim to support.  Here’s one example.

💡 Haiti Earthquake Aid (2010)
Billions of dollars in aid were pledged. But much of the funding bypassed the Haitian government’s own financial systems. Instead of strengthening local PFM capacity, donors directed funds through international contractors.

The result? Less than 1% of U.S. aid went directly to the Haitian government. Roads, homes, and institutions were built with little local input—and often without long-term accountability mechanisms.

What looked like efficient aid delivery on paper turned into missed opportunities for state-building.

In contrast, countries like Rwanda have made a deliberate effort to strengthen their PFM institutions—and donors increasingly channel funds through national systems with proper safeguards. As a result, Rwanda consistently ranks as one of the least corrupt countries in Africa.

“Inefficiency” as a Trust-Building Tool in PFM

In a world hungry for instant outcomes, slow PFM systems frustrate many. But when properly designed, those delays build public trust.

Take Australia’s welfare system again. While Robodebt failed, other elements of the system reflect the benefits of deliberate, rule-based financial administration:

- The Department of Social Services implements random sampling and case reviews to detect anomalies.
- The Australian National Audit Office (ANAO) publicly audits programs and releases findings.
- The Commonwealth Ombudsman provides recourse for unfair treatment.

These systems may seem inefficient—but they allow citizens to believe the system is fair, errors will be corrected, and abuse will be caught.

And that trust is priceless.

Globally, countries that invest in PFM safeguards—including multi-layered approval processes, internal audits, public financial reporting, and independent supreme audit institutions—are better placed to manage shocks, attract investment, and deliver public services transparently.

Reinforcing the Case Against Robodebt with Statistics

The Royal Commission into the Robodebt Scheme found that the actual incidence of welfare fraud in Australia was minimal.
Despite this, the Robodebt program was introduced under the premise of significant fraud, leading to the issuance of approximately 470,000 debt notices, many of which were incorrect.
The program was ultimately deemed unlawful by the Royal Commission resulting in a $1.8 billion settlement.

Don’t Mistake Guardrails for Roadblocks

Whether in government or business, here’s the truth: Efficiency without oversight is not leadership—it’s recklessness.

✅ Friction forces accountability.
✅ Friction catches errors before they cause harm.
✅ Friction reminds us there are humans behind every decision.

So next time you're told to "just speed things up," pause and ask:

Is this process slow—or is it safeguarding?

Because in PFM, what seems inefficient is often a system working exactly as it should. 

,