COURSE MANUAL

E7: Policy Analysis and Implementation

Module 1 - Foundation of Policy Analysis

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Acknowledgements
The Commonwealth of Learning (COL) wishes to thank those below for their contribution to
the development of this course:

Course author Dave Barrows

Associate Director, MPA Program
Schulich School of Business
York University
Toronto, Canada

Assisted by Quarrat-ul-ann S. Siddiqi, MPA

Toronto, Canada

Course designer Dave Smulders, MA

Vancouver, Canada

Course reviewer and revision Robert Dibie, PhD

author Dean and Professor of Public Affairs
Editor, Journal of International Politics and Development
School of Public and Environmental Affairs (SPEA)
Indiana University Kokomo, USA

Educational designer Symbiont Ltd.

Otaki, New Zealand

COL would also like to thank the many other people who have contributed to the writing of this
course.
 Contents

Contents
About this course manual 1 
How this course manual is structured ................................................................................ 1 
The course overview ................................................................................................ 1 
The course content ................................................................................................... 1 
Resources ................................................................................................................. 1 
Your comments ........................................................................................................ 2 
Course overview 3 
Welcome to Policy Analysis and Implementation ............................................................ 3 
Policy Analysis and Implementation — is this course for you?........................................ 3 
Course outcomes ............................................................................................................... 4 
Timeframe ......................................................................................................................... 4 
Study skills ........................................................................................................................ 5 
Need help? ......................................................................................................................... 6 
Assignments ...................................................................................................................... 6 
Assessments ....................................................................................................................... 7 
Getting around this course manual 8 
Margin icons ...................................................................................................................... 8 
Module 1 9 
Introduction ....................................................................................................................... 9 
What is policy? ........................................................................................................ 9 
Development of the policy approach ..................................................................... 12 
Philosophical frameworks ...................................................................................... 14 
Policy analysis frameworks ................................................................................... 15 
The policy process ................................................................................................. 21 
Module summary ............................................................................................................. 26 
Self-study questions......................................................................................................... 28 
References and further reading ........................................................................................ 29 
 E7: Policy Analysis and Implementation

About this course manual

How this course manual is

structured
The course overview
The course overview gives you a general introduction to the course.
Information contained in the course overview will help you determine:

 If the course is suitable for you

 What you will already need to know
 What you can expect from the course
 How much time you will need to invest to complete the course.

The overview also provides guidance on:

 Study skills
 Where to get help
 Course assignments and assessments
 Activity icons
 Modules.

We strongly recommend that you read the overview carefully before

starting your study.

The course content

This course consists of eight modules. Each module comprises:

 An introduction to the module content

 Module outcomes
 Core content of the module
 A module summary
 Assignments and/or assessments, as applicable

Resources
For those interested in learning more on this subject, we provide you with
a list of additional resources at the end of this course manual; these may
be books, articles or websites.

1
About this course manual

Your comments
After completing Policy Analysis and Implementation, we would
appreciate it if you would take a few moments to give us your feedback
on any aspect of this course. Your feedback might include comments on:

 Course content and structure.

 Course reading materials and resources.
 Course assignments.
 Course assessments.
 Course duration.
 Course support (assigned tutors, technical help, etc.)

Your constructive feedback will help us to improve and enhance this

course.

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 E7: Policy Analysis and Implementation

Course overview

Welcome to Policy Analysis and Implementation

The course, Policy Analysis and Implementation, is designed to expose
learners to the theories, models and practices in contemporary policy
making, analysis and implementation. The course also provides inputs on
the role of legislature, the impact of international organisations and
programme evaluation.

The course consists of eight modules, and is supported by case studies

and assessment activities.

Policy Analysis and Implementation — is this

course for you?
This course, Policy Analysis and Implementation is an elective course for
students of the Commonwealth Executive MPA programme and is
designed to offer exposure to policy development, analysis and
implementation in public systems. This course is for you if, in pursuit of
your CEMPA designation, you wish to develop analytical insights in to
policy and its implementation.

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Course overview

Course outcomes
Upon completion of Policy Analysis and Implementation, you will be
able to

 explain the policy analysis framework and the steps in the policy
development process.
 identify the four major types of issues in policy development and
their impact.
Outcomes  access the major information sources in issues and apply search
methods.
 explain the theories in policy analysis and distinguish between
the policy analysis models.
 discuss the role of the legislature in policy making as well as the
instruments available to governments to deliver policy.
 analyse the impact of globalisation from different perspectives
with respect to policy and the role of international agencies in
enabling developing countries in their policy effort.
 discuss the different approaches to policy implementation and
programme evaluation.

Timeframe
This course will take approximately 120 hours of study time.

How long?

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 E7: Policy Analysis and Implementation

Study skills
As an adult learner your approach to learning will be different to that
from your school days: you will choose what you want to study, you will
have professional and/or personal motivation for doing so and you will
most likely be fitting your study activities around other professional or
domestic responsibilities.
Study skills
Essentially you will be taking control of your learning environment. As a
consequence, you will need to consider performance issues related to
time management, goal-setting, stress management, etc. Perhaps you will
also need to reacquaint yourself in areas such as essay planning, coping
with exams and using the Web as a learning resource.

Your most significant considerations will be time and space – the time
you dedicate to your learning and the environment in which you engage
in that learning.

We recommend that you take time now—before starting your self-

study—to familiarise yourself with these issues. There are a number of
excellent resources on the Web. A few suggested links are:

 http://www.how-to-study.com/
The “How to study” website is dedicated to study skills resources.
You will find links to study preparation (a list of nine essentials for a
good study place), taking notes, strategies for reading text books,
using reference sources, test anxiety.

 http://www.ucc.vt.edu/stdysk/stdyhlp.html
This is the website of the Virginia Tech, Division of Student Affairs.
You will find links to time scheduling (including a “where does time
go?” link), a study skill checklist, basic concentration techniques,
control of the study environment, note taking, how to read essays for
analysis, memory skills (“remembering”).

 http://www.howtostudy.org/resources.php
Another “How to study” website with useful links to time
management, efficient reading, questioning/listening/observing skills,
getting the most out of doing (“hands-on” learning), memory building,
tips for staying motivated, developing a learning plan.

The above links are our suggestions to start you on your way. At the time
of writing these Web links were active. If you want to look for more go to
www.google.com and type “self-study basics”, “self-study tips”, “self-
study skills” or similar.

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Course overview

Need help?
Is there a course website address?

What is the course instructor's name? Where can s/he be located (office
location and hours, telephone/fax number, e-mail address)?
Help
Is there a teaching assistant for routine enquiries? Where can s/he be
located (office location and hours, telephone/fax number, e-mail
address)?

Is there a librarian/research assistant available? Where can s/he be located

(office location and hours, telephone/fax number, e-mail address)?

Is there a learners' resource centre? Where is it located? What are the

opening hours, telephone number, who is the resource centre manager,
what is the manager's e-mail address)?

Who do learners contact for technical issues (computer problems, website

access, etc.)

Assignments
There are two Tutor-Marked Assignments (TMA) in this course; each
contributing 15 per cent to the total assessment of this course. The
Assignments and the Final Exam are in the form of a case study. The
details on the procedures for the TMAs are in the Course Guide.

Assignments The deadlines for students to submit the two TMAs can be found in the
institutional guidelines as well as the LMS.

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 E7: Policy Analysis and Implementation

Assessments
As the end of the semester, a Final Examination is held and contributes
70 per cent to the total assessment of this course. Hence total assessment
comprises:-
Assessments
Assignment 1 15 per cent

Assignment 2 15 per cent

Final Examination 70 per cent

Total 100 per cent

For more details about the Final Examination, please refer to the
institutional guidelines, and the samples of the Final Examination
Question Paper available in the LMS.

7
Getting around this course manual

Getting around this course manual

Margin icons
While working through this course manual you will notice the frequent
use of margin icons. These serve to “signpost” a particular piece of text, a
new task or change in question; they have been included to help you to
find your way around this course manual.

A complete icon set is shown below. We suggest that you familiarise

yourself with the icons and their meaning before starting your study.

Activity Assessment Assignment Case study

Discussion Group Question Help Note it!

Outcomes Reading Reflection Study skills

Summary Terminology Time Tip

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 E7: Policy Analysis and Implementation

Module 1

Introduction
The purpose of Module One is to introduce you to the study of policy and
its analysis.
 What is policy?
 Development of the policy approach
 Philosophical frameworks
 Policy analysis frameworks
 The policy process

By the end of this module you should be able to:

 describe the development of the policy analysis framework.

 distinguish between policy models and describe the implications
of each model.
Outcomes  identify and explain the steps in the policy process.
 analyse authentic case studies in light of the information
presented in this module.

What is policy?
Definition of “policy”
The activities of government and the techniques used to make decisions
regarding its activities have always been studied through various
disciplines within the social sciences. However, over the last 30 years,
there has been an increased interest in the analysis of policy in order to
understand and improve the decision-making capacity and outputs of
government.
Different uses of the word policy
The word “policy” is derived from the Greek words politeia and polic,
which refer to state and citizenship, and the Latin word politia, which
means “administration of the commonwealth”. Thus, policy refers to the
regulation of morals, social order, safety and welfare of a “body politic”
(that is, an organisation, a community, state or nation). More broadly,
policy represents the principles that guide present and future decisions.

Policies may be stated or unstated, and policies may require action or

non-action to achieve their purposes.

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Module 1

The term policy can be used to refer to specific proposals, which may be
related to other proposals, or represent the “means” by which some larger
purpose is to be achieved.

The word policy is most commonly used as a label for a field of activity,
such as “foreign policy” or “education policy”. This usage describes the
fields of government activity and involvement as opposed to any one
policy. Because it usually covers past, current and potential activities,
understanding policy in this context is worthwhile. However, it is not
sufficient for policy analysis purposes. This definition does not
differentiate policy goals from policy achievement, or policy as an action
or inaction. Further, broad policy fields often overlap, so that making
clear separations among the fields is difficult.

A more general use of the term “policy” is to express the broad purposes
or goals of government activity in a particular field, often giving some
indication of a desired state of affairs. Policy can also be used to describe
the output or outcomes of government activities.

Policy can also refer to the decisions of government that may arise from a
particular “moment of choice”, such as in a state of emergency. Often, in
such cases, there is a need to look beyond crucial decisions and take a
broader view of policy-making along a longer time horizon.

The definition of policy that we wish to use is “a course of action or

inaction chosen by public authorities to address a given problem or an
interrelated set of problems” (Pal, 1997). In this document, policy will
have three major elements:
1. definition of the problem.
2. goals that are to be achieved.
3. instruments, interventions, or methods by which the problem is to
be addressed and the goals achieved.

The probability of a decision by government being embodied in

legislation or otherwise receiving formal authorisation through other
policy instruments will vary according to the political structure: majority
party governments can count on virtually automatic ratification by
parliament, whereas a president would have to fight to mobilise support
in congress or at the executive level.

Policy versus planning and strategy

As an exercise, policy is distinct from planning. To put it briefly, policy
differs from planning based on the following dimensions: the scope of the
inventory or data-collection phase, the constraints and elimination of
alternatives, the types of documents produced, the definition of the client,
the orientation towards an issue, the time horizon examined and the
approach to implementing a decision.
Compare the characteristics of each below:
Table 1: Comparison of planning and policy

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 E7: Policy Analysis and Implementation

Planning is characterised by the Policy is characterised by the

following: following:

An extensive inventory phase, usually An inventory or issue search phase

to collect the necessary data on the limited in scope and directed at a
environment, existing infrastructure, particular issue;
demographic and economic
characteristics of a situation or group;

An exhaustive search for alternative A constrained search for alternatives

solutions which, nonetheless, is which are then all usually evaluated and
severely constrained, with significant presented to ultimate decision-makers
alternatives being eliminated before (clients or the public);
presentation to ultimate decision-
makers (that is, clients or the public);

The preparation of a plan of action; The preparation of memoranda, issue

papers, policy papers, or draft
legislation;

An unspecified client, for example “the A particular client, for example a

public interest”; public interest group, neighbourhood, or
business group, which is likely to have
a particular perspective on the problem;

A subject-oriented as opposed to a An issue or problem orientation which

problem-oriented approach and scope can also be described as a reactive
to problems; posture;

A longer time horizon, at minimum 10 A limited time horizon often

years; and compromised by the terms of elected
officials and political, and other
uncertainties; and

An apolitical approach to the process A political approach to the process of

of implementing a given plan. implementing a decision, which requires
political leadership to champion a given
policy.

Public interest and public policy

In an ideal world, the public interest would be the balancing of the
different interests – both special and universal – that exist in a society.
Universal interests or values are shared by a majority; for example, the
notions of fairness and equity. Special interests or values are shared by
segments or groups within society. For example, groups interested in
protecting forests have differing views from big businesses that use and
sell wood and its by-products.

However, on a practical level, public interest often reflects whatever

special interest wins government support. For example, when the
government implements regulations in the public interest to protect

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Module 1

consumers from fraud and unsafe goods and services, the real
beneficiaries of the policies are often monopolies and oligopolies, since
the barriers to enter their area of business are increased. Because
regulations are promoted as public interest, they are difficult to remove,
even if they only benefit specific interests. Governments may also act in
the public interest to address the unintended, usually negative, impact of
an individual’s or group’s action upon others; for example, the issue of
pollution.

An appointed official’s interpretation of the public interest is usually

accredited to a political master as opposed to public servants with the
government. Taylor et al. (1999) state that, ultimately, the
appropriateness of all forms of government intervention in the public
interest “will be value judgments based on personal standards of
legitimacy, expediency and morality”.

As few public domestic policies involve the participation of the

government alone, Brian Hogwood and Lewis Gunn (1984) suggest that a
public policy

…“at the very least, must have been processed, even if only
authorised or ratified, by public agencies”.

They suggest that public policy need not be significantly developed by

the government, but rather that the policy must in some way have been
partly developed within the framework of government.

Development of the policy approach

In the 1960s there was an increased interest and demand for policy
analysis in the United States due to perceived inadequacies in
government and its response to chronic problems. In addition,
dissatisfactions and developments in academic disciplines emerged on the
supply side of policy analysis. The United Kingdom underwent a similar
surge of interest in the late 1960s and 1970s, thus leading to the
development of policy as a field of study with its own set of models and
theories.

Demand for policy analysis

On the demand side, although the government in both the United States
and United Kingdom intervened through development of programmes to
remedy social problems, such as poverty, it became obvious that there
were no clear answers or simple solutions. Further, it became difficult to
diagnose and define these problems, given the increasingly dynamic
environment that policy-makers were expected to operate within. The
policy development process was changing.

The policy process evolved into the interaction of various elements over
time. These include:

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 E7: Policy Analysis and Implementation

 the increased number of actors involved in various stages of the

policy process (for example, various levels of government and
interest groups);
 the length of the policy process or cycle, (such as, at least 10
years from the emergence of a problem to the implementation
and then evaluation of a programme);
 different levels of government (federal, state, local) that must
implement a given policy;
 hearings and debates that expose disputes in the course of
developing legislation; these can be very technical in nature but
very important in informing decisions; and
 disputes over policy, often involving deeply held beliefs and
values or interests, large amounts of money and authoritative
coercion.

The policy process requires knowledge of the goals and values of

numerous actors as well as technical, scientific and legal issues over an
extended period. During this time, the actors themselves or their positions
could change. Given the complexity of the process, a policy analyst must
find methods to simplify and organise information about an issue or
situation in order to understand it.

Dissatisfaction with the social sciences approach in

problem-solving
Also in the 1960s, within some academic circles there was dissatisfaction
with the limited contribution made by the social sciences to problem-
solving. Critics (Hogwood & Gunn, 1989) have considered both research
and teaching in this field to be overly academic and inward-looking –
with more emphasis on method than on outcomes – and thus even
irrelevant to real and ever-changing social problems.

According to Hogwood and Gunn, weaknesses in particular disciplines

within the social sciences emerged:
 Political science
In the political sciences, higher levels of generalisation in
theories were being made at the cost of remote or real problems.
In addition, the focus was largely on those problems that could be
well-researched and quantified. Attention also focused on
institutions and groups, which in reality have different processes
and distribution of powers than assumed, thus rendering some
analyses irrelevant or out of touch.
 Public administration
Public administration was considered a stand-alone area of study
(usually with a strong management bias) rather than a multi-
disciplinary subject.
 Economics
The concern in economics was the portrayal of the field as

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Module 1

“scientific”. Academics developed abstract models to explain

economic issues but were regarded as ignorant of other social
sciences that could provide information on the complexities of
the real world and improve the usefulness of their input.
 Management studies
Management studies were regarded as similar to business studies.
This created an assumption that business models could be used to
solve problems or improve efficiencies. However, such an
assumption contributed to analyses and theories that neglected
the impact of political settings, underlying processes and
behaviours.

Today, modern policy analysis involves a more applied and inter-

disciplinary approach to researching, teaching and training. The next
section includes a discussion of the approach to policy analysis in terms
of philosophical frameworks for analyses.

Philosophical frameworks
In order to understand the complex world around us, we seek out patterns
to interpret information. Graham Allison (1971) suggests that we carry
around “bundles of assumptions” or “basic frames of references” when
we ask and answer questions. Similarly, politicians, administrators and
social scientists may also be limited by assumptions and perceptions
when developing and implementing policies.

The use of models

Bullock and Stallybrass (1977) define a model in its simplest terms as “a
representation of something else, designed for a specific purpose”.
Consider the following three types of models: descriptive, normative and
ideal.

Descriptive models
Descriptive models are derived from material objects or social
phenomena. Their purpose is to provide a visual aid for understanding
something, whether it is tangible (for example, a model aeroplane) or
intangible (a process). These models are also used to test effects of
various conditions applied to them to see what could happen under
varying circumstances.

These models assist in the description, explanation and understanding of

an object or issue. They also provide a basis for prediction,
experimentation and testing hypotheses. The more complex the object or
phenomenon to be modelled, the greater the selectivity, simplification
and generalisation will be in creating the model.

Normative models
Normative models attempt to define what is desirable or to be emulated,
such as a “model family” or “model citizen”. Normative models seek to

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 E7: Policy Analysis and Implementation

present what ought to be, as opposed to what is. They are prescriptive
rather than descriptive in their output.

Ideal type models and the rational approach

Models can also be used to explore new concepts. Ideal type models do
not try to capture events as they exist in the real world, but they can help
us understand real-life phenomena and define the direction we would like
to move towards.

Ideal type models improve our understanding of the real world, which is
described in terms of deviations that occur in reality from the ideal type
model. Ideal type models can also have prescriptive utility. That is,
having described the real world, one can ask how satisfactorily the ideal
type model applies. Examples of ideal type models include the notions of
“perfect competition” and “pure rationality”. These models are not
normative, as they are not intended to prescribe any particular activities
or ideals in themselves.

While ideal type models are tools for learning and understanding, the
ideal type rational approach in the context of policy analysis examines
what decisions would be made if policy-makers were capable of being
completely rational. The two main approaches associated with developing
ideal type rational models are:
1. the consideration of values and options together; and
2. setting objectives first and then examining only those alternatives
that satisfy the predetermined objectives.

The ideal type rational approach of considering values and options

together relates the consequences of all options to all values rather than
pre-specifying objectives. This approach is used in economics as the basis
for utility and social welfare functions. It also provides the theory
inherent to Cost-Benefit Analysis (CBA) used in decision-making.

The ideal type rational approach of setting objectives before developing

options is most commonly supported by the managerial approach to
decision-making. In this approach, values are defined and ranked at the
outset and objectives are specified that are compatible with these values.
A combination of options that maximise the values defined as most
important would then be selected.

Policy analysis frameworks

Now that you have looked at three types of models of analysis, consider
the following six different policy models by examining their
characteristics and implications. The six models are: rationality,
incrementalism, mixed scanning, public choice, socio-economic
determinants model and the Marxist analysis.

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Module 1

Rationality
The comprehensive rationality model suggests that policies are developed
through a multi-step analysis before decision-making.

In this process of analysis, a decision-maker:

 is confronted with a problem that can be separated from other
problems or is considered meaningful in comparison to them;
 develops goals, values and corresponding objectives, and ranks
them in priority;
 develops and examines alternatives;
 investigates and compares the consequences of alternatives,
including full costs and benefits, and advantages and
disadvantages; and
 will select the alternative that maximises the attainment of goals,
values and objectives.

The benefit of this decision-making model is that it lays out a process that
can be consistently applied to different decisions. Techniques used to
analyse alternatives include operations research, cost-benefit analysis
and cost-effective analysis.

The foremost criticism of models of rational decision-making is that they

are unrealistic and impractical, given limited resources and the inability
to examine all options and consequences. An attempt to use the
comprehensive rational approach may result in over-analysis and, as
such, the model is sometimes dismissed as “paralysis by analysis”,
meaning that so much time and resources are spent analysing that
decisions are not made and the policy development process does not
move forward. A related criticism is that rational models, in practical
terms, are insufficiently dynamic; that ongoing, continuous, perfect
knowledge is not possible given external and unpredictable factors that
will result in deviations from anticipated consequences.

One response to this criticism is Herbert Simon’s model of bounded

rationality, which takes into consideration the limitations on human
abilities given time, resources, organisational and situational constraints,
and the real-world practice of choosing satisfactory as opposed to ideal
solutions to problems. The limitations serve as boundaries that define the
search for alternatives. Bounded rationality or optimal policy-making
uses the process identified by the comprehensive rationality model, but
instead of searching for all possible alternatives, it only searches for
options within a limited range. Here, the best possible policy is not
sought, but rather the optimal policy within the boundaries specified.

Another important criticism questions the role of values in rational

models by asking how and by whom are the assigned values selected and
weighted with respect to one another. In democratic, pluralistic societies,
it can be very difficult to rank goals, values and objectives in order of

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 E7: Policy Analysis and Implementation

priority due to many competing points of view, which cannot easily be

reconciled.

However, this criticism may be a misguided attack on the rational model,

as the model only seeks to identify the procedure and the arguments for
decision-making. It does not guarantee the desirability, feasibility, or
validity of the specific decisions or outputs of the procedure, as these
depend upon the inputs to the model. Inputs include values and priorities,
which must be determined outside the model using other mechanisms,
such as political means.

Due to the limitations and problems mentioned above, the concept of

comprehensive rationality is not applied in full form very often in
practice.

Incrementalism
Charles Lindblom (1959) argues that the comprehensive rationality
model is not only impossible to achieve, but also that policies are rarely
changed radically as a result of even extensive reviews. Essentially,
Lindblom suggests that the rational model neither serves effectively as a
normative nor as a descriptive model. Instead, he argues, in the real world
decision-makers change policies incrementally by successively selecting
alternatives that make marginal improvements to the status quo, as this is
more acceptable to those affected by them. Policy, according to
Lindblom, is developed over a series of decisions and iterations.

Lindblom also suggests that the model of incrementalism is not only

descriptively accurate but also normative. This is based on the belief that
policy changes must first be accepted by existing organisations and client
groups in order to take hold and be implemented. If new policy
recommendations are not acceptable to established players, they will be
difficult to implement. Thus, in the Lindblom model, the test for the
worth of a policy is its acceptance by the most relevant players and not its
objectives as proposed by the rational model.

Critics of the incremental model argue that incrementalism goes too far in
enforcing the status quo; that is, if the status quo were sufficient, then
there would be no need to search for improvements. The model assigns
too much power to the established order at the potential expense of the
needs of those who are not in organised groups.

Another criticism is that incrementalism is not well suited to deal with

decisions that are “all or nothing”, such as going to war, legalising
abortion, or capital punishment. Further, the model does not lend itself to
addressing new problems, as there may be no base to work from. For
example, the model is not as useful dealing with policies affected by new
technologies or scientific discoveries such as genetic engineering.

However, Lindblom has noted that while most policy decisions are
incremental in nature, some very important decisions are not. Given the
limitations of incrementalism, a more comprehensive and feasible

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approach to decision-making would need to integrate aspects of both the

incremental and rational models.

Mixed scanning
Amitai Etzioni developed the mixed scanning model, which provides a
different way of combining rationality and incrementalism to the bounded
rationality model. Etzioni argues that governments essentially make two
main kinds of decisions: fundamental and incremental.

Fundamental or contextuating decisions are radical changes in policy.

Decision-makers selectively explore key alternatives that are viewed as in
line with conceived goals. However, unlike the rational model, the mixed
scanning model eliminates specifics to enable an overview of the issue.
This overview spans a longer time horizon than the incrementalism
model alone.

Incremental decisions, on the other hand, pave the way for future
fundamental decisions or fine-tune existing fundamental decisions after
consequences and weaknesses have been identified. Incremental
decisions are made within the context of fundamental decisions, thus
reducing the unrealistic aspects about the assumed ease of implementing
policy changes as exhibited by the rational model.

The mixed scanning model, which is used quite extensively, attempts to

integrate the incremental and rational decision models. The remaining
models do not rely as heavily on the concepts of rationality and
incrementalism.

Public choice
The public choice model is a relatively new policy-making model. Public
choice can be defined as “the economic study of non-market decision-
making, or simply the application of economics to political science”
(Mueller, 1979). Instead of explaining how supply and demand for goods
and services interact in the economic market, public choice defines its
market in terms of votes for specific public policies.

The base of this model is that the public is comprised of self-interested,

utility-maximising individuals. The model attempts to explain collective
decisions in terms of these utility-maximising individuals. Citizens not
only vote, but they can also participate in the political process by other
means. However, Breton (1974) suggests that individuals will only begin
to participate in the political process when the results of government
actions result in greater costs than benefits to them. In this way, the
nature and intensity of efforts to organise politically are a function of the
distance between these perceived costs and benefits.

In the hunt for votes, politicians are advised to stay away from voters
committed to either side of an issue and, instead, focus on swaying
undecided voters, as this is a more efficient use of resources.

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The public choice model can also help explain the actions of public
servants who seek to increase the size and scope of their departments for
status and power. It also illustrates the interrelationships between
different groups in the policy process, such as politicians, bureaucrats,
special interest lobbies and media groups. Hartle (1976) describes the
theory of public choice as a series of interlocking and interrelated games
among these groups that, on one hand, all need each other to effectively
fulfill their roles but, on the other hand, don’t have equal positions of
power. The balance of power among groups depends on the issue at stake
and the different possible outcomes.

The public choice model does have its problems. For example, it lacks
the ability to test the belief that individuals act on selfish and utility-
maximising behaviour, since this subjective aspect cannot be measured.
Another shortcoming of the model is that while it acknowledges the self-
interest of decision-makers, it is unable to keep track of the public
interest. Also, because of the numerous public actors and potential
conflicts and power struggles, it is difficult to predict behaviour.

Socio-economic determinism
This model of public policy suggests that policies are developed in
response to changes in the socio-economic environment of a society.
Individual and group action may exist, but is limited by the constraints of
the environment.

Studies in both the United States and Canada have indicated that socio-
economic variables are more important determinants of public policy than
political ones as expressed through party platforms, histories, or
ideologies. Richard Simeon (1987) points out that while environmental
factors move issues to the forefront of the policy agenda, they do not in
themselves determine the response, action or inaction, to the issue. Please
refer to Figure 4: Traditional “Politics” Model and Figure 5: Socio-
Determinants Model to see a graphical comparison between the two
models.

In fact, all political parties are more likely to be influenced by general

social trends than by their ideologies. The reason for this is that once a
political party wins power in government, it is faced with similar
environmental constraints to those faced by previous governments. The
class analysis or Marxist analysis of the state also notes the importance
of the socio-economic environment.

Class analysis (Marxist analysis)

The Marxist approach to understanding society is that it is organised and
divided on the basis of conflict between different classes. It is believed
that the ultimate role of the capitalistic state is to protect and further the
interests of the elite economic class. Neo-Marxists suggest that there are
three roles of state:
1. fostering accumulation;

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Module 1

2. legitimation; and
3. imposition of social order.

According to the model of Marxist analysis, the main role of the state is
to assist capitalists in accumulating wealth. The state may do this by
offering subsidies, grants and loans to corporations to encourage
development, by discouraging unionisation, or through inaction to
enforce environmental or labour safety measures.

However, Marxists also argue that capitalists need to be saved from

themselves, as too much power leads to exploitation and labour revolt.
Therefore, the state also works to legitimate the existing system by
providing subordinate classes with benefits that reduce their
dissatisfaction with the inequalities produced by the capitalistic economy.
Benefits include social welfare policy to promote social harmony. Should
the benefits provided to legitimate the system be insufficient to keep
labour in line, then the state will use coercion to impose the social order
through enforcement of laws limiting labour power, such as legislation
restricting unionisation.

In the Marxist analysis, the role of the state is to act as an intermediary

between the classes. However, the state will always hold the long-term
interests of the capitalist class. Essentially, the state would want to have
autonomy from all classes because, in order to serve the long-term
interests of the elite class, it would also have to save it from its own greed
and exploitation.

Review the following summary of the different public policy models and
note the main characteristics and implications of the various models
discussed.

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 E7: Policy Analysis and Implementation

Table 2: Summary of policy models – characteristics and implications

Model Characteristics Implications

1. Rational  Full cost-benefit analysis  Complete information

 Cost-effective analysis  Clear goals and objectives
 Zero-based budgeting approach  No sunk costs
 Predictive capacity

2. Incremental  Continues past actions  Recognises:

 Modifies existing activities o Limited information
o Predictive capability
o Sacrificing behaviour
 Slow to respond to change

3. Mixed scanning  Applies rational model to  Success depends on choosing

selected issues correct issues
 May miss issues linkages

4. Public choice (game  Decisions based on the greatest  Loses track of public interest
theory) utility, the sum of market votes  Public policy is seen as a
 Every group (for example, series of interlocking games
bureaucrats, politicians, voters,  Acknowledges self-interest of
media and special interest decision-makers
groups) has own self interest
 Difficult to predict behavior

5. Socio-economic  Policies evolve in response to  Limits ability to develop public

determinism socio-economic environmental policy based solely on
pressures ideology
 Pressures are globally inter-
related

6. Class (or Marxist)  Class exploitation  May explain selected aspects

analysis  Three roles of the state: of public policy decision-
making (such as the justice
1. Foster accumulation
system)
2. Legitimation
3. Impose social order

The policy process

Policy as a process
Policy is developed through a series of decisions. It is a continuous,
dynamic process that in the simplest description has three main activities:
formulation, implementation and evaluation. Feedback can occur at any
stage once there is enough experience to make improvements.

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Module 1

Policy is also seen to be a process as it is closely related to political

systems and their processes. Like political systems, policy focuses on the
interactions among the participating actors and organisations. At the same
time, policy as a process is subjected to socio-economic and other
environmental constraints. By using a process approach to studying
policy, you can create a framework that is flexible to the integration of
new knowledge. Please refer to Figure 1: Simplified version of the policy
process, Figure 2: More realistic version of the policy process, and Figure
3: The continuous and messy nature of the policy process for various
graphical representations of policy as a process.

There are, however, a few limitations to viewing policy as a process.

 The type of policy model being used should be identified (that is,
descriptive, normative or ideal-type) as the use of different
models leads to different outputs.
 There is a possibility that the process may limit one’s
conceptualisation of an issue and instead result in the imposition
of an historical method of doing things.
 There is a risk that clearly defined stages of the policy cycle will
suggest that the process is self-contained and complete when
realistically this is not the case.

Nonetheless, the examination of policy as a process or framework is

useful in learning, understanding and making improvements to policy
development and analysis.

Steps in the policy process

Review the steps or stages in a standard policy process. It is not necessary
that all issues be processed exactly as ordered or in the distinct steps
listed. The policy process or cycle can be summarised into eight different
steps (Hogwood & Gunn, 1984, p. 4):
1. issue search, agenda-setting and issue filtration.
2. issue definition.
3. constructing alternatives.
4. selecting and establishing evaluation criteria.
5. forecasting/projecting outcomes.
6. analysis of policy options.
7. policy implementation, monitoring and control.
8. policy evaluation and review (which includes policy maintenance
and succession).

You will explore each of these stages in greater detail in Module Two –
Policy formulation process: the process, structure and context of policy-
making.

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 E7: Policy Analysis and Implementation

Maps of the policy process

Figures 1, 2 and 3 offer graphical representations of the policy process.

Figure 1: Simplified version of the policy process

Figure 2: More realistic version of the policy process

Source: (Kernaghan & Siegel, 1999, p. 126)

Figure 3: The continuous and messy nature of the policy process

Source: (Kernaghan & Siegel, 1999, p.126)

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Module 1

Map of alternative models of policy-making process

The following models may also be useful to help you understand the
policy-making process.

Figure 4: Traditional “politics” model

Figure 5: Socio-Determinants Model

Sour

Figure 5: Socio-determinants model

Source: (Kernaghan & Siegel, 1999, p. 140)

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 E7: Policy Analysis and Implementation

The issue/policy life cycle

Figure 6 provides a graphical illustration of the stages of a process over
time.

Figure 6: The issue life cycle

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Module 1

Module summary
Your goal in reading through this module has been to gain an introduction
to the study of policy and its analysis. To begin, policy was defined as “a
course of action or inaction chosen by public authorities to address a
Summary given problem or an interrelated set of problems” (Pal, 1997). Interest in
policy analysis experienced sustained growth in the 1960s and 1970s in
the United States and United Kingdom for two main reasons:
1. to better understand problems in light of the failure of
government policies to succeed as anticipated; and
2. dissatisfaction with contribution of the traditional social sciences
to problem-solving in public policy.

Public interest is ideally the balancing of the different interests – both

special and universal – that exist in a society. Universal interests or
values are shared by a majority while special interests or values are
shared by segments or groups within society. However, on a practical
level public interest often reflects whatever special interest wins
government support. One definition of public policy is that, at the very
least, the policy must have been processed, even if only authorised or
ratified, by public agencies.

Next, you looked at how policy was a distinct and separate exercise from
planning. Policy was shown to be different from planning on seven
dimensions. Policy was characterised by:
1. limited issue searches.
2. limited evaluations of options.
3. preparation of policy papers.
4. specified or particular clients.
5. issue or problem orientation.
6. limited time horizons.
7. a political approach to implementation.

In this module you encountered several types of models. First, there were
three different types of models for analysis: descriptive, normative and
ideal-type. Descriptive models provide a basis for prediction,
experimentation and hypothesis testing of tangible and intangible objects
or phenomena. Normative models attempt to define what is desirable or
to be emulated and are prescriptive in nature. Finally, ideal-type models
provide a theory which can be used to understand the real world by way
of examining the deviations of the model from reality.

Six different models of policy were examined briefly: rationality,

incrementalism, mixed scanning, public choice, socio-economic
determinism and class or Marxist analysis.

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 E7: Policy Analysis and Implementation

Finally, you were introduced to eight steps in the policy process. You will
see the steps again in greater detail in Module Two. They are:
1. issue search (agenda setting) and issue filtration;
2. issue definition and collection of evidence;
3. constructing alternatives;
4. selecting and establishing evaluation criteria for decision-making;
5. forecasting or projecting outcomes;
6. analysis of policy alternatives;
7. policy implementation, monitoring and control; and
8. policy evaluation and review (which includes policy maintenance
and succession).

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Module 1

Self-study questions
1. Policy analysis is finding out what governments do, why they do it
and what differences – if any – it makes. What can be learned from
policy analysis? Why is policy analysis important to any government?
Study skills 2. How much government intrusion into daily life is acceptable? Is the
reduction in personal freedom worth the benefits that the policy
provides to society? What types of policies are acceptable and
unacceptable in your country? Is this the same in other countries?

3. Do you agree with the logic of collective action, why? What do you
think people gain by participating in interest groups like humanitarian
clubs or environmental groups that may influence public policy?

4. For what types of policy issues should equity be a primary concern?

How would you evaluate equity concern?

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 E7: Policy Analysis and Implementation

References and further reading

Allison, G. (1971). Essence of decision: Explaining the Cuban missile
crisis. Boston: Little, Brown.

Breton, A. (1974). The economic theory of representative government.

References
Chicago: Aldine.

Bullock, A. & Stallybrass, O. (1977). The Fontana Dictionary of modern

thought. London: Fontana/Collins.

Hartle, D. G. (1976). A theory of the expenditure budgetary process.

Toronto: University of Toronto Press.

Hogwood, B. W. & Gunn, L. A. (1984). Policy analysis. New York:

Oxford University Press.

Kernaghan, K. & Siegel, D. (1999). Public administration in Canada. (4th

Ed.). Scarborough, Ontario: International Thomson Publishing.

Lindblom, C. E. (1959, Spring). The science of “muddling through”. Public

Administration Review 19: 79-88.

Meuller, D. C. (1979). Public choice. Cambridge: Cambridge University

Press.

Pal, L. A. (1997). Beyond policy analysis: Public issue management in

turbulent times. Scarborough, Ontario: ITP Nelson.

Sabatier, P. A. (Ed.). (1999). Theories of the policy process. Colorado:

Westview Press.

Simeon, R. (1987, Spring). Inside the Macdonald Commission. Studies in

Political Economy 22: 167-79.

Taylor, D. W., Warrack, A. A, & Baetz, M. C. (1999). Business and

government in Canada: Partners for the future. Toronto: Prentice-
Hall Canada.

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