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Public Policy & its Management

Dr Sabina Imran Durrani

SZABIST
19 September 2014

Contents
Definitions
Ways to use policy
Final definition
Nature of public policy
Theories of public policy
Policy studies/analysis
Policy objectives
Functions of Govt
Reasons for govt involvement
Instruments for policy
implementation
Policy Cycle
Policy agenda

Factors affecting Policy agenda

Steps of Policy Cycle
Policy Appraisal
Policy Formulation
Policy Implementation
Top Down Approach
Bottom Up Approach
Factors responsible for successful
Policy implementation
Policy Evaluation
Course of Action
Good Policy
Managing Policy
Summary

Introduction
To understand what policy is specially in our sociocultural environment
To explore the reasons & importance for introducing
policies, types of policies underpinned by different
circumstances, and the ways in which they are
implemented
Cyclical model of policy will be examined,
underpinned by policy making theory and factors
essential for making good policy

Definition
Pre-determined course of action established by
elected representatives
Anything Govt decide to do
Purposive course of actions followed by all
stakeholders in dealing with an issue
Goal oriented (SMART)
Specific set of actions-inactions/decisions to be
taken by govt over a period of time

Ways to use Policy

Label for specific activity- industrial, environmental policy
Desired activity-provision of healthy environment
Specific proposal- reduce IR by 5% in the next 3 yrs
Policy decision- announced by the parliament
Program- Land reform program
Output-actually delivered (no of subsidies given)
Outcome-actually achieved (better health)
Theory/model- if X done, Y happen (MMR/IMR)
Process- long-term matter, issues, objective-setting, decisionmaking, implementation, evaluation

Final Definition
Interplay of values, interest, resources
Express values, support/restrict interest,
distribute resources
Shape or are shaped by politics
Specific def. Narrow study field
General def. Wide study field, little use

Nature of Public Policy

Everything Govt does is Public Policy & what the
private sector does is not.............Yes/No
Private sector activities-significant public impact e.g
pollution/industrial hazard control
Govt engagement in commercial activities through
govt owned enterprises, more impact on private
Implementation through private sector(PPP)
(Margaret Thatcher, Benazir Bhutto)

Exercise
Govt owned enterprises working in collaboration
with private sector
Transport-PIA/Railways
Health
Postal
PTCL

Scope/Theories of Policy
Theory: Common language, mean to recognize set of
activities & procedures. Can be
Descriptive/Explanatory: what is happening or what has
happened
Normative/Prescriptive: how situations should be
Normative Policy making Model: prescribe the way how
policy making should occur (improve Policy making)

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Policy Studies/Policy Analysis

Policy Studies: Knowledge of Policy & Process. It includes
Content: description of its origin, intention, operation
Process: actions taken by different actors at each stage
Outputs: statistical analysis/performance indicators

Evaluation: objectives achieved or not?

Policy Analysis: Knowledge in the Policy Process. It includes
Information for policy making

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Cont....
Process advocacy-analysis of policy
making/changing process (rational or prescriptive
approach)
Policy advocacy-analysis to make argument for a
particular policy
Analyst as Political Actor-e.g consultant or public
servant
Political Actor as Analyst: community member or
politician (prescriptive)

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Policy Objectives
Govt. responsible for ensuring equity, justice,
accountability for use of public funds
Different choices are made in the expenditure
depending on vested interest
Many functions are performed in a better way by
private sector Western world-privatization, reduction in the size
of public sector since 1980s

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Why Policies are Developed?

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Government Functions
Economic Infra-structure: basic institution,
rules/arrangement, system to work e.g property protection
right, enforcement of contract, provision of currency.
Goods/Services-health, education, currency, clean water,
sewerage
Conflict Resolution- resolve disputes b/w individuals /
groups/institutions

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Cont...
Competition Maintenance-market mech not always
perfect, maximize the operation of competition
Protection of natural resources- protection against
depletion of natural resources, including
environment in general
Provision of access to goods/services-poverty,
malnutrition, un-employment, old age etc
Economy Stabilization- foreign investment

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Reasons for Govt Involvement

Mostly related to market failure, where govt intervene
Public Goods-beneficial for all, paid or not
(directly/indirectly) e.g public parks, clean air, national def,
bridge tolls tax, (Non-excludable), including merit goods
(education/health)
Externalities- provision of regulation/services to counteract
the effects of market transaction on 3rd party e.g public
transport prevent traffic congestion, street cleaning for air
pollution

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Cont...
Natural monopoly- WAPDA
Imperfect information- market mechanism not
providing goods or perfect information to
consumer e.g packaging info for consumer
protection, price control

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Instruments for Policy Implementation

Provision: Services not provided by the private
sector
Allocation: Funds granted to particular prog
Distribution: unemployment/tax benefit to redress
inequalities in wealth
Stabilization: economic improvement through
budgetary policies e.g taxation, control interest rate

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Cont...
Subsidy: assistance for manufacturing/provision of
private good /specific grant to private sector
Production: good/services to be user charged like
water, electricity, used in combination with subsidy
Regulation: Punishment for non compliance,
prohibition of certain activities

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Policy Cycle
Sequential Model of Policy-Making

Policy initiation/agenda setting

Appraisal or assessment
Formulation
Implementation
Evaluation
Policy continuation / termination / reformulation
/succession or progression

New policies or existing ones adjusted

Initiation by Politician, Implementation by public
servant
Importance/limitations of Policy Cycle

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Policy Agenda
Issues which the govt decides is important need to be
addressed, policies developed/implemented
Agenda items, political influence
Also include those issues which are being pressed by pressure
group, public opinion, media etc
Some are ignored, less/not important, immediate response
Non decision making is a form of decision-power that
suppressed issue to be discussed or heard
Highly influenced by political power

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Factors Affecting Policy Agenda

Ideology: Political beliefs & values
Pressure Gp: if they can withdraw public attention
to their ideas
Elections/public opinion: determine who wins
power. Certain agendas like education, health care,
employment are given
Crises/disasters: govt must have a prompt response
at all levels.

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Cont...
Changing conditions: tech development, social events
etc, modify policies e.g in-vitro fertilization, int.
changes lead to the introduction/alteration of
existing policies
Culture/religion:
Inertia: unchanged policies as not reviewed.
Civil servants: can give advice to the politicians.
Issue identification from issue evaluation:

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Cont...
Particularity: issue achieved particularity,
depicts larger problem e.g acid rain due to
atmospheric pollution, increase in cancer, poor
life style with increasing cost
Emotive aspects: issue with emotive aspect e.g
child labor

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Cont...
Wide Impact: increase petroleum prices,
affecting financial situation, health care
(dengue)
Power & Legitimacy: Current situation. union
rights, ownership of electricity
Fashion: environmentalism, multi-culturalism,
transparency

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Steps of policy Cycle

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Policy Appraisal
Assessment of potential policies is appraisal, determine feasibility of
policy proposal before finalization through rationale approaches
Evaluation is assessment of existing policies, occur after
implementation
Ex ante analysis: future prediction of consequences of various courses of
action based on some model of process involved
Ex post analysis: examine, measure actual consequences of some
prog/policy, to decide whether to maintain, institutionalize, expand or
modify/abandon the program, no future prediction
Steps

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Policy Formulation Formulation: Decisions are made and the policy

is given a final shape

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Policy Implementation
Implementation: formulated policy is executed.
Translation of policy into action through public
servants
Two approached
Top-down/forward planning:
Bottom up/backward mapping

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Top Down Approach

Focus is on why this is so?
Highlight the factors causing implementation gap,
includes
Lack of adequate resources
Fail to get approval (clearance by the public)
Lack of coordination at individual/organizational level
Ambiguous roles & responsibilities
Prioritization of the factors/steps
Change in government

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Bottom up Approach
Policy making continues from formulation to
implementation stage
Not based on cyclical model
Based on Policy-Action-Continuum, include negotiation,
bargaining, interaction as an ongoing process
Not clear whether policy is influencing action or vice versa
Many actors with changing interest or circumstances over
time
No pre-determined goal

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Factors Responsible for Successful Policy

Implementation
Policy implemented as per schedule with no variation
SMART objectives to be achieved
Best possible outcome
Not accompanied by unexpected side effects e.g law & order
situation
Cost effective measures
approval of general public
Satisfied recipient or public

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Policy Evaluation
It leads to policy changes like termination, re
-formulation or progression
Types of Evaluation
Appropriateness evaluation: program to be apposite or
not?
Efficiency evaluation: how efficiently inputs/resources
are used to get desired outputs.
Effectiveness evaluation: objectives achieved or not
Meta evaluation: assess the process of evaluation itself

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Course of Action
Continuation: as such with no change
Termination: discontinuation
Modification-Reformulation

Problems to end a program

Intellectual reluctance
Lack of political incentives
Institutional permanence
Legal obstacles
High start up cost
Adverse consequences

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Good Policy
Subjective issue
Analysis of the actual contents & relationship to policy
objectives
How it was implemented and objectives achieved
To ensure effective achievement of objectives & efficient
utilization of resources, evaluation is done
Policy appraisal & evaluation before & after
implementation subsequently, based on the following
criteria:

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Cont..
Identification of target group- reached or not?
Identification of success standards (Pvt), requires
Comparison over time
Comparison with similar agencies
Comparison with different agencies providing similar
services
Comparison against theoretical framework

Not easy to be measured (read)

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Managing Policy
Structured policy innovation approach
Systemic application of human initiative & democratic values

Recognition of the role of social conflict

Concerted negotiation, coordination among all
Re-organization of public & private resources
Re-consideration of the values, determining resource
allocation
Policy innovation through institutional set up, need
networking of key social interests

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Summary

Concept of Public Policy

Definitions, objectives, instruments
Cyclical model
Stages