The problem results from too many people falling for this way of thinking ... and acting accordingly.
And btw, "bureaucracy" is not a bad thing per se! See: http://en.wikipedia.org/wiki/Bureaucracy
[edit: added link]
And btw, "bureaucracy" is not a bad thing per se! See: http://en.wikipedia.org/wiki/Bureaucracy
[edit: added link]
And too many idiots thinking that stamps and signatures and certificates have magical powers and prevents the real ill-intentioned people from doing anything (we could say bureaucracy is the DRM for real life). Also people making use of their position as to gain personal power.
You have a point in saying that bureaucracy is not a bad thing per se, in both the original acception of the word and in some places, like in Germany it "mostly" works.