Policy Formulation

• What is a policy formulation?

– Means that are proposed to resolve perceived

societal needs
– Identifying and assessing possible solutions to
policy problems
– Exploring the various options or alternative
courses of action.
• Policy Formulation need to be:

– Limited to one set of actors.

– May proceed without clear definition of the problem.

– Formulation and re-formulation may occur and it is

not a neutral process, some may win and some not.
 The Phases of Policy Formulation
• Appraisal

• Dialogue

• Formulation

• Consolidation
• What is feasible and not feasible?
CONSTRAINTS
Substantive – (poverty cannot be solved with the
option to print more money and distribute it to the
poor since it will increase inflation) and

Procedural - has to do with the procedure involved

in adopting an option.
• Procedural constraint can be institutional
(Constitutional provisions like the right to bear
arms)

• or tactical (search for solution within

government levels – federal and state.)
• Policy Instruments (policy tools or governing
instruments)

– Policy makers consider not only what to do but

also how to do it.

– Traffic Congestion Problem (to build new roads,

improve public transit, restrict auto usage, or
combination)
• Not only act or not act, but also how to best
address the problem and implement a
solution.
 Common Policy Tools
INFORMATION BASED TOOLS

• Public Information Campaigns (ill effects of smocking)

• Exhortation/Suasion - (slightly more government
activity than pure dissemination of information)
– (Adverts to keep fit and healthy, not waste water or
energy, use public transportation)
• Consultation between government and finance
industry, labor representatives, etc.
• Benchmarking and Performance Indicators
How well hospitals and schools perform

• Commissions and Inquiries

– Temporary bodies to gather information about an
issue, or
– Procrastinate, hoping the public pressure will fade
away.
• AUTHORITY BASED POLICY INSTRUMENTS

• Command and Control Regulation

• Regulation is a prescription by the government that must be complied
with; failure to do so involves penalty. (agriculture)

• Delegated or Self – Regulation

• Non governmental actors regulate themselves. (Bar License, Doctors
and Teachers.)

• Advisory Committees
• TREASURE BASED POLICY INSTRUMENTS

• Subsidies: Grants, Tax Incentives and Loans.

• Financial Disincentives: Taxes and user
charges.
• Advocacy, Interest Group, and Think Tank
Funding
• ORGANIZATION BASED POLICY INSTRUMENTS

• Direct Provision (government offers service, not private

sector)
• Public Enterprises
• Quangos (quasi-autonomous non-government
Organizations)
• Partnerships (PPP)
• Family, Community and Voluntary Organizations
• Market Creation (create and support markets)