Public Policy Analysis
1. Public Policy Analysis By Khemraj
Subedi Lecturer M.Phil Economics,
M.A. Economics, M.Ed, Economics
20th January 2016
2. Unit 1:Introduction To Public Policy Analysis
3. Public Policy; Analysis (Webster’s dictionary) Policy
• 1. A definite course or method of action selected from
among alternatives and in the light of given conditions to
guide and usually determine present and future decisions.
2. A projected program consisting of desired objectives and
the means to achieve them
Analysis
• 1. Separation or breaking up of a whole into its
fundamental elements or components or component parts.
• 2. A detailed examination of anything complex made in
order to understand its nature or to determine its nature or
to determine its essential features, through a study.
4. Public policy analysis Policy Analysis is the
process of assessing, and deciding among
alternatives based on their usefulness in
satisfying one or more goals or values. Policy
Analysis is client-oriented advice relevant to
public decisions and informed by social values.
The job of analysts consists in large part of
producing evidence and arguments to be used
in the course of public debate.
• 5. Meaning of Public Policy Public policy is the
means by which a government maintains order or
addresses the needs of its citizens through actions
defined by its constitution. Public policy refers
to the policies taken by the public authority or
government into different sectors like industry,
commerce, health, education, agriculture etc.
6. The main objective of public policy is to serve
and develop the people by providing conducive
environment, which maintains the norms and
values of the society for quality life and better
human behavior.
• 7. Definitions James Anderson "Policy is the
purposive course of action followed by an
actor or set of actors or in dealing with a
problem or matter of concern." •
Forhock,"Public policy is a pattern attempted
either to save or manage political disputes, or
provide rational incentives to secure agreed
upon goals with policy issues capable of
ranging far and wide over both material goods
and ethical issues
• 10. Characteristics of Public Policy The public
policy includes the following characteristics: •
Public policy is goal oriented. • Public policy is
a course of action. • What to do? • Public
policy may have positive or negative form. •
Public policy is law based and authoritative. •
Public policy is an applied social science.
11. Stages of Public Policy • Policy demand •
Policy decisions. • Policy statements. • Policy
Implementation. • Policy outputs. • Policy
outcomes.
• 8. To sum up, public policy is a proposed and
purposive course of action that is directed at
achieving certain goals or at solving the
specified problems faced by persons, group,
society or a nation as a whole.
• 9. The authorities involved in public policy
formulation • Legislatures, • Executives, •
Administrators, • Councilors, • Judges •
Paramount Chiefs, • Elders, • Monarchs
• 10. Characteristics of Public Policy The public
policy includes the following characteristics: •
Public policy is goal oriented. • Public policy is
a course of action. • What to do? • Public
policy may have positive or negative form. •
Public policy is law based and authoritative. •
Public policy is an applied social science.
11. Stages of Public Policy • Policy demand •
Policy decisions. • Policy statements. • Policy
Implementation. • Policy outputs. • Policy
outcomes.
• 12. Theory of Public Choice • Public choice theory
is a branch of economics that developed from the
study of taxation and public spending.
13. Public choice is an application of self interest
and utility maximization to explain political
behaviour. Public choice theory seeks to
understand and predict the behaviour of
politicians and bureaucrats in the polity by
utilizing analytical techniques developed from
economics, based on the postulate of rational
choice.
• 14. In public choice, the actors assumed to seek their
own self interest as in the market place are;
individuals and voters, interest groups, bureaucrats, &
politicians/legislatures
15. Historical Background Public choice theory
emerged in the sixties and received widespread public
attention in 1986, when James Buchanan, one of its
two leading architects (the other was his colleague
Gordon Tullock), was awarded the Nobel Prize in
economics.
.
• 16. • In addition to providing insight into how public
decision making occurs today, public choice analyzes the
rules that guide the collective decision-making process
itself. These are the constitutional rules that are made
before political activity gets underway. The work done by
James Buchanan and Gordon Tullock on The Calculus of
Consent, is one of the classics of public choice.
17. Public choice takes the same principles that economists
use to analyze people's actions in the marketplace and
applies them to people's actions in collective decision
making. Economists who study behavior in the private
marketplace assume that people are motivated mainly by
self-interest
• 18. It postulates that there are maily four players
involved in public policy They are: Politicians,
General voters, Bureaucrats & Special interest
group
19. Key terms of theory of pubic choice Public
goods vs. private goods. Externalities, Public
goods and free riders, Implication for voluntary
action, Constitutional choice, Economic man
and bureaucracy, Voting rules and bureaucracy,
Market vs. hierarchical organization
• 20. Assumptions of Public Choice Theory Ostrom &
Ostrom (1971) noted that following four public choice
assumptions about individuals: Self-interest,
Rationality, Benefit maximizing , & Uncertainty
minimizing.
21. Use of Public Choice in Managerial Decision
Making Public policy is an important concern for the
administrators, academicians and the public in large.
The importance of the study of public policy has
assumed a great significance particularly with the
increase in the scope and size of the public sectors.
• 22. use of public policy in managerial decision
making are: Scientific reasons. Professional
reasons. Political reasons. Utility to general
public. Utility to business decision making.
Utility to statesman. Utility to
administrative official.
23. Institutions, Processes and Behaviours
Environmental Forces and conditions Public
Policies A B C D E F
• 24. Linkage A : The effect of environmental forces and
conditions on political and governmental institutions,
processes, and behaviours. Linkage B: The effect of political
and governmental institutions, processes and behaviours on
public policy. Linkage C: The effect of environmental forces
and conditions on public policy.
25. Linkage D : The effect (feedback) of public policies on
environmental forces and conditions. Linkage E : The effect
(feedback) of political and governmantal institutions,
processes and behaviours on environmental forces and
conditions. Linkage F: The effect (feedback) of public
policies on political and governmental institutions,
processes, and behaviours.
• 26. Environmental Political System Public Policy
Wealth Governmental form Civil rights policies
Urbanization Constitutional type Income redistribution
Economic system Bureaucracy Educational policies
Educational levels Party system Welfare policies
Inequalities Power structure Health Policies Class
structure Pattern of participation Foreign policies.
Cultural patterns Interest group system Defense
policies Racial compositions Level of conflict Tax
policies Religious make-up Characteristics of elites
Public spending policies
27. Thanks
