UNIVERSITY OF DAR ER SALAAM

DEPARTMENT OF ECONOMICS

Lecture Note One Policy Definitions an Co!era"e #y Se$%o&a 'a&i 'ati%u 'a&i

Une ite Trainin" Notes Presente at t(e EC)*++ Conte$,orary Issues in Econo$ic De!elo,$ent

Date Mon ay- ./ Octo%er .01*

1212

Policy Definition

A policy is typically described as a principle or rule to guide decisions and achieve rational medium and long term objectives, (output, outcomes and impact). The term policy statement is not normally used to denote what is actually done this is normally referred to as either strategy or procedure or protocol. Policies are generally adopted by the government cabinet/ oard of or senior governance body within an organi!ation whereas procedures or protocols would be developed and adopted by institution. Policies can assist in both subjective and objective decision ma"ing. Policies to assist in subjective decision ma"ing would usually assist senior management with decisions that must consider the relative merits of a number of factors before ma"ing decisions and as a result are often hard to objectively test e.g. wor"#life balance policy. $n contrast policies to assist in objective decision ma"ing are usually operational in nature and can be objectively tested e.g. password policy. A Policy can be considered as a %&tatement of $ntent% or a %'ommitment%. (or that reason at least, the decision#ma"ers, such the government can be held accountable for their %Policy. The term may apply to government, private sector organi!ations and groups, and individuals. Presidential e)ecutive orders, corporate privacy policies, and parliamentary rules of order are all e)amples of implicit policies. Policy differs from rules or law. *hile law can compel or prohibit behaviours (e.g. a law re+uiring the payment of ta)es on income), policy merely guides actions toward those that are most li"ely to achieve a desired outcome. Policy process may also refer to the se+uence of ma"ing important organi!ational decisions, including the identification of different alternatives such as plans, strategies, programs or spending priorities, and choosing among them on the basis of the impact they will have. Policies can be understood as political, management, financial, and administrative mechanisms arranged to reach e)plicit goals. $n public corporate finance, a critical accounting policy is a policy for a firm/company or an industry which is considered to have a notably high subjective element, and that has a material impact on the financial statements. 1.1.1. Intended policy effects

The intended effects of a policy vary widely according to the organi!ation, resources, time and the conte)t in which they are made. roadly, policies are typically instituted to avoid some negative effect that has been noticed in the organi!ation, or to see" some positive benefit. 'orporate purchasing policies provide an e)ample of how organi!ations attempt to avoid negative effects. ,any large companies have policies that all purchases above a certain value must be performed through a purchasing process. y re+uiring this standard purchasing process through policy, the organi!ation can limit waste and standardi!e the way purchasing is done. 1.1.2. Unintended effects Policies fre+uently have side effects or unintended conse+uences. ecause the environments that policies see" to influence or manipulate are typically comple) adaptive systems (e.g. governments, societies, large companies), ma"ing a policy change can have counterintuitive results. (or e)ample, a government may ma"e a policy decision to raise ta)es, in hopes of increasing overall ta) revenue. -epending on the si!e of the ta) increase, this may have the overall effect of reducing ta) revenue by causing capital flight or by creating a rate so high that citi!ens are deterred from earning the money that is ta)ed.

12.2

Policy cycle

$n social science the policy cycle is a tool used for the analy!ing of the development of a policy item. $t can also be referred to as a %stagist approach%. .ne standardi!ed version includes the following stages/ 0. 1. 2. 3. 5. Agenda &etting ($ssue/ Problem identification) Policy .bjective/ (ormulation Adoption/ &trategy $mplementation/ 4ines of Activities 6valuation/ Performance $ndicators

1.2.1. The policy formulation The policy formulation process typically includes an attempt to assess as many areas of potential policy impact as possible, to lessen the chances that a given policy will have une)pected or unintended conse+uences. ecause of the nature of some comple) adaptive

systems such as societies and governments, it may not be possible to assess all possible impacts of a given policy. An eight step policy cycle is developed in detail in The Australian Policy 7andboo" by Peter ridgman and 8lyn -avis/ 0. 1. 2. 3. 5. 9. :. ;. $ssue identification Policy analysis Policy instrument development 'onsultation (which permeates the entire process) 'oordination -ecision $mplementation 6valuation

The Althaus, ridgman < -avis policy model is heuristic and iterative. $t is intentionally normative and not meant to be diagnostic or predictive. Policy cycles are typically characteri!ed as adopting a classical approach. Accordingly some postmodern academics challenge cyclical models as unresponsive and unrealistic, preferring systemic and more comple) models. They consider a broader range of actors involved in the policy space that includes civil society organisations, the media, intellectuals, thin" tan"s or policy research institutes, corporations, lobbyists, etc. 12*2 Policy Content

6)plicit policies are typically promulgated through official / public written documents. =ational policy documents often come with the endorsement or signature of the e)ecutive powers such as 'abinet / President within an organi!ation to legitimi!e the policy and demonstrate that it is considered in force. &uch documents often have standard formats that are particular to the organi!ation issuing the policy. *hile such formats differ in form, policy documents usually contain certain standard components including. A purpose statement, outlining why the organi!ation is issuing the policy strategy, and what its desired effect or outcome of the policy strategy should be. An applicability and scope statement, describing who the policy affects and which actions are impacted by the policy. The applicability and scope may e)pressly e)clude certain people, organi!ations, or actions from the policy re+uirements. Applicability and scope is used to focus the policy on only the desired targets, and avoid unintended conse+uences where possible.

There will be an effective date which indicates when the policy comes into force. >etroactive policies are rare, but can be found. The responsibilities sections, indicating which parties and organi!ations are responsible for carrying out individual policy statements. ,any policies may re+uire the establishment of some on#going function or action. (or e)ample, a purchasing policy might specify that a purchasing office be created to process purchase re+uests, and that this office would be responsible for on#going actions. >esponsibilities often include identification of any relevant oversight and/or governance structures. Policy statements indicating the specific strategies such as regulations, re+uirements, or modifications to organi!ational behavior that the policy is creating. Policy statements are e)tremely diverse depending on the organi!ation and intent, and may ta"e almost any form. &ome national policies may contain additional sections, including/ ac"ground, indicating any reasons, history, and intent that led to the creation of the policy, which may be listed as motivating factors. This information is often +uite valuable when policies must be evaluated or used in ambiguous situations, just as the intent of a law can be useful to a court when deciding a case that involves that law.

-efinitions, providing clear and unambiguous definitions for terms and concepts found in the policy document. 1232 Policy Ty,olo"ies

Policy addresses the intent of the organi!ation, whether government, business, professional, or voluntary. Policy is intended to affect the ?real? world, by guiding the decisions that are made. *hether they are formally written or not, most organi!ations have identified policies Policies may be classified in many different ways. The following is a sample of several different types of policies bro"en down by their effect on members of the organi!ation. 1.4.1. Distributive policies -istributive policies e)tend goods and services to members of an organi!ation, as well as distributing the costs of the goods/services amongst the members of the organi!ation. 6)amples include government policies that impact spending for welfare, public education, highways, and public safety, or a professional organi!ation?s benefits plan.

1.4.2. Regulatory policies >egulatory policies, or mandates, limit the discretion of individuals and agencies, or otherwise compel certain types of behavior. These policies are generally thought to be best applied when good behavior can be easily defined and bad behavior can be easily regulated and punished through fines or sanctions. An e)ample of a fairly successful public regulatory policy is that of a speed limit. 1.4.3. onstituent policies 'onstituent policies create e)ecutive power entities, or deal with laws. 'onstituent policies also deal with (iscal Policy in some circumstances. 1.4.4. !iscellaneous policies Policies are dynamic@ they are not just static lists of goals or laws. Policy blueprints have to be implemented, often with une)pected results. &ocial policies are what happens ?on the ground? when they are implemented, as well as what happens at the decision ma"ing or legislative stage. *hen the term public policy is used, it may also refer to/ .fficial government policy (legislation or guidelines that govern how laws should be put into operation) road ideas and goals in political manifestos and pamphlets

A company or organi!ation?s policy on a particular topic. (or e)ample, the e+ual opportunity policy of a company shows that the company aims to treat all its staff e+ually. The actions the organi!ation actually ta"es may often vary significantly from stated policy. This difference is sometimes caused by political compromise over policy, while in other situations it is caused by lac" of policy implementation and enforcement. $mplementing policy may have une)pected results, stemming from a policy whose reach e)tends further than the problem it was originally crafted to address. Additionally, unpredictable results may arise from selective or idiosyncratic enforcement of policy. 1242 Policy Analysis

Policy analysis is %determining which of various alternative policies will most achieve a given set of goals in light of the relations between the policies and the goals%. 7owever, policy analysis can be divided into two major fields. Analysis of policy is analytical and descriptiveAi.e., it attempts to e)plain policies and their development. Analysis for policy is prescriptiveAi.e., it is involved with formulating policies and proposals (e.g., to improve social welfare). The area of interest and the purpose of analysis determine what type of analysis is conducted. A combination of policy analysis together with program evaluation would be defined as Policy studies. Policy Analysis is fre+uently deployed in the public sector, but is e+ually applicable to other "inds of organi!ations. 1.".1. #pproaches Although various approaches to policy analysis e)ist, three general approaches can be distinguished/ the analycentric, the policy process, and the meta#policy approach. The analycentric approach focuses on individual problems and their solutions@ its scope is the micro#scale and its problem interpretation is usually of a technical nature. The primary aim is to identify the most effective and efficient solution in technical and economic terms (e.g. the most efficient allocation of resources). The policy process approach puts its focal point onto political processes and involved sta"eholders@ its scope is the meso#scale and its problem interpretation is usually of a political nature. $t aims at determining what processes and means are used and tries to e)plain the role and influence of sta"eholders within the policy process. y changing the relative power and influence of certain groups (e.g., enhancing public participation and consultation), solutions to problems may be identified. The meta$policy approach is a systems and conte)t approach@ i.e., its scope is the macro# scale and its problem interpretation is usually of a structural nature. $t aims at e)plaining the conte)tual factors of the policy process@ i.e., what are the political, economic and socio# cultural factors influencing it. As problems may result because of structural factors, (e.g., a certain economic system or political institution) solutions may entail changing the structure itself. 1.".2. !ethodology

Policy analysis is methodologically diverse using both +ualitative methods and +uantitative methods, including case studies, survey research, statistical analysis, and model building among others. .ne common methodology is to define the problem and evaluation criteria@ identify all alternatives@ evaluate them@ and recommend the best policy agenda per favour. 1.".3. Types of policy analysis/ These include@ $. $$. $$$. $B. B. B$. 'ausal (resp. non#causal) -eterministic (resp. stochastic, randomi!ed and sometimes non#deterministic) $nde) ,emory#less (e.g. non#stationary) .pportunistic (resp. non#opportunistic) &tationary (resp. non#stationary)

These +ualifiers can be combined, so for e)ample you could have a stationary#memoryless# inde) policy. 12+2 Pu%lic ,olicy

*e noted that public policy as government action is generally the principled guide to action ta"en by the administrative or e)ecutive branches of the state with regard to a class of issues in a manner consistent with law and institutional customs. $n general, the foundation is the pertinent national and substantial constitutional law and implementing legislation. (urther substrates include both judicial interpretations and regulations which are generally authori!ed by legislation. .ther scholars define it as a system of %courses of action, regulatory measures, laws, and funding priorities concerning a given topic promulgated by a governmental entity or its representatives.% Public policy is commonly embodied %in constitutions, legislative acts, and judicial decisions.%

$n many countries, this concept refers not only to the result of policies, but more broadly to the decision#ma"ing and analysis of governmental decisions. As an academic discipline, public policy at public policy schools of some universities throughout the country. 1.%.1. &overnment actions &haping public policy is a comple) and multifaceted process that involves the interplay of numerous individuals and interest groups competing and collaborating to influence policyma"ers to act in a particular way. These individuals and groups use a variety of tactics and tools to advance their aims, including advocating their positions publicly, attempting to educate supporters and opponents, and mobili!ing allies on a particular issue. 1252 Policy Alienation as Conte$,orary Policy Issue

1.'.1. The oncept of (olicy alienation Policy alienation refers to a framewor" which e)amines the e)periences of governmental employees with new policies they have to implement. $t has been used to describe the e)periences of front#line public professionals with new policies. $t is defined %as a general cognitive state of psychological disconnection from the policy programme being implemented.% A number of e)amples can clarify the concept of policy alienation. *e understand the pressures on professionals stemming from new policies in education and health care in ,CDCDTA/ EThe changes have been outrageous, and have produced a culture of meritocracy and high flyers. ThereFs massive paperwor" because the politicians donFt believe teachers are to be trusted.G This indicates that professionals had difficulties identifying with the policies they had to implement. %*ithin the new healthcare system economic values are dominant. Too little attention is being paid to the content/ professionals helping patients. The result is that professionals become more aware of the costs and revenues of their behavior. This comes at the e)pense of acting according to professional standards. .verall, a number of studies show an increasing discontent among public professionals toward public policies although more positive e)periences can also be found. The policy alienation framewor" was developed to better understand the e)periences of front#line public professionals with new policies. 1.'.2. )ffects of policy alienation

'urrently, there is an intense debate concerning professionals in the public sector. ,any of the pressures that professionals face are related to the difficulties they have with the new policies they have to implement. *hen implementers are unable to identify with a policy, this can negatively influence policy effectiveness. (urthermore, a high degree of policy alienation can affect the +uality of interactions between professionals and citi!ens, which may eventually influence the output legitimacy of government. The policy alienation framewor" is one of contemporary policy issue. $t has been shown that policy alienation increases resistance to a new policy, lowers behavioural support for the policy and decreases job satisfaction of public professionals. 7ence, it has both influences on the individual professional, as well as on policy effectiveness. 1.'.3. onceptuali*ation

Alienation broadly refers to a sense of social estrangement, an absence of social support or meaningful social connection. &ociologists, public administration scholars, and other social scientists have used the alienation concept in various studies. As a result, a number of meanings have been attributed to the term. $n an attempt to provide clarity, &eeman bro"e these meanings down into five alienation dimensions/ powerlessness, meaninglessness, normlessness, social isolation, and self#estrangement. ,any scholars have used these dimensions to devise operational measures for alienation so that they can e)amine the concept in a range of settings. ,au, for e)ample, used four dimensions in e)amining student alienation. >ayce et al., when investigating adolescent alienation, used three of the five dimensions. (urther, many other researchers have used &eemanFs classification in e)amining the concept of wor" alienation. .thers devised operational measures for three of the dimensions/ powerlessness, meaninglessness, and social isolation. The policy alienation framewor" was conceptuali!ed based on the wor"s of sociologists such as 7egel, ,ar), &eeman, and launer. (urthermore, wor"s of public administration scholars were used, particularly on 4ips"y (street#level bureaucracy). 4i"e wor" alienation, policy alienation is multidimensional, consisting of policy powerlessness and policy meaninglessness dimensions. $n the wor" alienation literature, the dimensions of powerlessness and meaninglessness are also considered very important. $n essence, powerlessness is a person?s lac" of control over events in their life. $n the realm of policy formulation and implementation, policy powerlessness relates to the degree of influence public professionals have over shaping a policy program. Powerlessness can occur when a new policy is drafted without the help of the professionals, by for e)ample not

consulting their professionals associations or labor unions. (urthermore, on an operational level professionals can feel powerless when they have to adhere to tight procedures and rules when implementing a policy. This "ind of powerlessness may be particularly pronounced in professionals whose e)pectations of discretion and autonomy contradict notions of bureaucratic control The second dimension of policy alienation is meaninglessness. $n the realm of policy ma"ing and implementation, policy meaninglessness refers to a professionalFs perception of the contribution that the policy ma"es to a greater purpose, most notably to society or to their own clients. (or instance, a professional can feel that implementing a policy is meaningless, if it does not deliver any apparent beneficial outcomes for society, such as more safety on the streets. To ma"e the dimensions more specific, five sub#dimensions were identified/ strategic, tactical and operational powerlessness, societal and client meaninglessness. This is shown in the table below. 1.'.4. +ive sub$dimensions of policy alienation To ma"e the dimensions more specific, five sub#dimensions were identified/ strategic, tactical and operational powerlessness, societal and client meaninglessness. This is shown in the table 0.0 Ta%le 1212Fi!e su%) i$ensions of ,olicy alienation
Su%) i$ension &trategic powerlessness Definition E6a$,le of (i"( scores

The perceived influence of the A professional feeling that the policy is drafted professionals on decisions concerning the without the help of implementing professionals content of the policy, as is captured in or professional associations. rules and regulations Professionals stating that the managers in the The professionalsF perceived influence on organi!ation did not consult them or their decisions concerning the way policy is colleagues when designing the implementation implemented within their own process for the policy. organi!ation. The perceived degree of freedom in Answering Hfully agreeF to a survey +uestion on ma"ing choices concerning the sort, whether the professional feels that their +uantity and +uality of sanctions and autonomy during the implementation process rewards on offer when implementing the was lower than it should be. policy. The perception of professionals concerning the added value of the policy &tating in an interview that E$ agree with the to socially relevant goals. policy goal of enhancing transparency, but $ do not see how this policy helps in achieving this

Tactical powerlessness

.perational powerlessness &ocietal meaninglessness

goal.G 'lient meaninglessness The professionalsF perceptions of the A professional who argues that a particular added value of their implementing a policy seriously impinges on their clientsF policy for their own clients. privacy.