Given his protectionist beliefs and actions, few people would have expected Donald Trump to embark upon economic liberalisation. But one of the most important achievements of his presidency as it approaches the end of its first year is the extent to which it has been cutting back the regulatory powers of the federal bureaucracy.
After the African National Congress (ANC) came to power in South Africa in 1994, it was wont to boast each year about how many bills had been enacted. Earlier this month, the Speaker of the National Assembly, Baleka Mbete, said that the fifth parliament had passed 96 bills to date – the implication being that this was a matter for congratulation. In addition to all the laws enacted by Parliament and the nine provincial legislatures, dozens of ministries have crammed the Government Gazette full of one kind of regulation or another.
According to Neomi Rao, administrator of the Office of Information and Regulatory Affairs in the Office of Management and Budget in Washington DC, Mr Trump's promises to deregulate were initially met with scepticism. "The steady expansion of the regulatory state traditionally has been a bipartisan affair." One crude measure is the number of times prescriptive words such as "shall" or "must" appear in federal regulations. According to the Mercatus Centre, a libertarian research house, there were 400 000 such words in 1970 but 1.1 million in 2017.
President Trump has confounded the sceptics. He has both staunched the flow of new regulations and jettisoned standing ones. Barrack Obama saddled the economy with $15.2 billion of regulatory costs in his final eight months in office. However, shortly after taking over from him, Mr Trump issued an executive order to federal agencies to reduce the regulatory burden by rescinding two existing regulations for every new one issued.
Various studies indicate that the flow of new regulations out of Washington has slowed substantially. A report published by the Cato Institute showed that since 1994 an average of 216 new rules had been imposed in the first five months of any new administration. In Mr Trump's first five months, the number dropped to 26 – 12% of the long-term average.
According to The Economist, in the last year of the Obama administration the federal government issued 527 regulations regarded as "significant". So far, the Trump administration has issued only 118, few of which actually impose additional regulatory burdens. Many of Mr Trump's edicts have instead been aimed at weakening some of the rules laid down by Mr Obama when he resorted to ruling by decree after he could not get Congress to pass the legislation he wanted.