Question

In: Economics

What factors do you think might influence which policy alternative is adopted? How do you think...

What factors do you think might influence which policy alternative is adopted?

How do you think policy implementation happens?

Solutions

Expert Solution

POLICY

A policy is a deliberate system of principles to guide decisions and achieve rational outcomes. A policy is a statement of intent, and is implemented as a procedure or protocol.

Policy formulation and implementation is a mental process which involves critical evaluation of various alternative policy options and selection of the best alternative.

FACTORS:

Following are the various factors that influence which alternative is adopted:

1. Knowledge and innovation:

Knowledge and innovation impacts policy by catalyzing new debates and/ or creating awareness of new opportunities.

So while selecting from various alternatives such alternative is selected which is most suited to the current knowledge and innovation levels.

2. Social, political and economic factors:

There are various social, political and economic factors that affect the selection of alternative.

Social factors: Social factors includes caste, culture, social norms, beliefs, etc.

Political factors: These factors consists of the prevailing or ruling parties, government regulations, political stability, taxation policy, etc

Economic factors: These include economic conditions, market type, economic policies, etc

3. Legal framework:

Legal framework in place has a great influence on the selection of alternative to be adopted. Only such alternative will be selected which in no way violates any legal framework or rule or law.

4. Specific events:

Specific events refers to the extraordinary events that might affect a firm like natural disasters etc. So a policy alternative focused on coping with these events will not prove to be fruitful in ordinary situations and vice verse. Thus that alternative will be selected which best suits the current situation.

5. Infrastructural factors:

The structure and capabilities of the infrastructure also affects the selection of alternatives because adopting an alternative which exceeds the capabilities of current infrastructure will bear no fruits and also adopting an alternative which underutilises the present capabilities will be a waste. Thus the alternative that best matches the current capabilities is selected.

POLICY IMPLEMENTATION:

Policy implementation is a stage in policy cycle wherein formulated polices are executed or implemented and operationalized.

The implementation of policy happens in the following ways:

1. Top-down approach or model:

This approach only adopts perspective of those in higher levels of government and neglects the role of others.

It is difficult to apply this model in situations where no single, dominant policy or agency is involved

2. Bottom-up approach or model:

This approach moves from bottom to up in levels of authority or government.

This model makes it difficult to evaluate or separate the influence of individuals and different levels of government on policy decisions and consequences.

3. Managerial approach:

This is a market driven approach which emphasizes shift from hierarchy to participation and teamwork.

It emphasizes on the application of managerial approaches like operational management, personnel management and corporate management.

Thank You!


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