Question

Compare the main types of public policy.

Answer 1

Regulatory policies and practices
These policies and practices aim to regulate the various sectors of the economy. These regulations monitor the sector and ensure that there are no deviations from government policies and plans. Take, for example, the banking sector of the country. They are strictly regulated by the RBI in accordance with the government guidelines. Likewise, the Reserve Bank of India regulates the money market, the SEBI controls the stock market, etc.

Restrictive policy
These guidelines reduce the benefits for a particular type of transaction or situation. An example is when the government levies custom duties. This is done to limit imports into the country. The government wants to boost domestic production, trade and export promotion. They will impose import duties on imports to prevent heavy imports. This is a restrictive policy.

Facilitating Policies

The government often has many banks, institutions, etc. that support and promote companies in an economy. These committees help implement policies to encourage businesses.