Public Policy: Challenges and Prospects Chapter 4: Policy Instruments and Design
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1 Intrductin Public Plicy: Challenges and Prspects Chapter 4: Plicy Instruments and Design Techniques cmes in detailing f what tls t use, and in what cmbinatin t achieve a given end Tls vary with the task at hand and can invlve expenditures, regulatin, partnerships r the exchange f infrmatin Plicy design can draw n all f these and mre and then be bundled int prgrams It is abut chsing the mst apprpriate instrument t deal with the plicy prblem as it has been defined in rder t achieve a given plicy gal Key criterin: efficiency and effectiveness T be made real, plicies have t be expressed f implemented thrugh prgrams which can use a variety f instruments Inventry and the Dynamics f Instrument Chice We lk upn the Charter fr ideas f what the prper scpe and limits f gvernment actin is in ur lives Issues f legitimacy ccur when deciding what instruments t use when implementing plicies ex. regulatin f chewing gum in Singapre: wuld be cnsider utrageus if this happened in Canada Histry: Dern and Phidd: argue there are 5 brad categries that mve alng a cntinuum f legitimate cercin and argued gvernments in a liberal demcracy prefer using the least cercive measure pssible Hd and Margetts: NATO scheme- measures the gvernment has t effect plicy change including ndality, authrity, treasure and rganizatin Linder and Peters: cmbined a grup f seven majr categries- direct prvisin, subsidy, tax, cntract, authrity, regulatin and exhrtatin Lester Salamn: defines a plicy tl as an identifiable methd thrugh which cllective actin is structured t address a public prblem. His instruments include: enterprises, ecnmic regulatin, scial regulatin, gvernment insurance, public infrmatin, crrective taxes, cntracting, grants, lans, tax expenditures, vuchers, trt liability S, what are plicy instruments? "the set f techniques by which gvernment authrities wield their pwer in attempting t ensure supprt and effect r prevent scial change" - Vedung It is imprtant t remember that they are abut achieving sme srt f utcme It is abut the resurces and techniques gvernments have at their dispsal Cercin: measures the extent t which a tl restricts individuals r grup behaviur as ppsed t merely encuraging r discuraging it
2 The state has a mnply n legitimate frce and the capacity t issue binding rules and prhibitins The plicy makers purpse is t achieve an utcme in terms f (1) the behavir f individuals; (2) plitical, scial r ecnmic cnditins; (3) r services prvided t the public. Gvernment can... D nthing: Static respnse Ratinales: Prblem related Resurce related Precedent related Self-crrective system Act Indirectly Affirmative/prmting Affirmative/prmting Negative/restraining Infrmatin Infrmatin Encurage: persuasin, facts, data Dissuade: argument Expenditures Expenditures Cash transfer Taxes Grants, lans User charges Subsidy/cntributin Service fees Tax expenditure Fines Vucher Regulatins: Regulatins: Criminal law Permissins Nn-criminal prhibitins Licences Recgnitins Behaviur Cnditin Service Act Directly State agency Department Scial agency State crpratin Third party partnership Cmpany Nn-prfit crpratin Nngvernmental rganizatin
3 Acting Indirectly The bjectives are being pursued thrugh the actins and behavirs f citizens, rganizatins r firms This can be dne thrugh affecting infrmatin r values that underpin behavir, the calculus f mnetary csts, benefits and resurces, r stipulating rules and sanctins attached t certain behavirs Infrmatin based tls are generally cnsidered t be less cercive than regulatin based tls Acting Directly The state is ultimately accuntable fr achieving its bjectives The mst cnventinal way t d this is thrugh the use f the states wn resurces t change cnditins r prvide services Desn't invlve wrking with citizens, NGO's r the private sectr Acting Indirectly Ding Nthing Static respnse: making a deliberate decisin nt t interfere Ding nthing still requires an analysis and a decisin nt t respnd directly Peple expect respnses t prblems, but nt always gvernment plicy respnses There are 4 ratinales fr ding nthing Prblem related ratinales: The analysis indicates that in fact there is either n prblem r a prblem that is nt within the gvernment's current pririties r jurisdictin Resurce related ratinales: The analysis indicates that there is indeed a prblem, and that it falls within the gvernments general pririties and its jurisdictin Nnetheless, given resurces cnstraints and ther mre pressing demands, the gvernment cannt allcate resurces fr this prblem Precedent related ratinales: A prblem exists, but the analysis raises the cncern that a plicy interventin might set a precedent that culd place unmanageable demands n gvernment Self-crrective system ratinales: It is accepted that there may be a prblem, but it is als assumed that there is a cherent system at wrk that ver time may crrect it withut the need fr gvernment interventin Infrmatin Based Instruments Include gvernment directed attempts f influencing peple thrugh transfer f knwledge, cmmunicatin f reasned argument, and mral suasin in rder t achieve a plicy result
4 Can include flyers, pamphlets, bklets, training advertisements, reprts, websites and prtals These instruments are cnsidered the least cercive since there is n bligatin t act n the infrmatin and n penalty Dissuade and persuade: graphic warnings n cigarette packages vs. Canada's fd guide Disclsure: factual infrmatin rdered t be presented t the public dmain Gvernments nw place enrmus quantities f infrmatin n the internet that is useful t citizens Key principle: Behavir is based n knwledge, beliefs and values If nes knwledge is wrng abut a harmful behavir, they are mre likely t cntinue Expenditure Based Instruments Virtually every plicy invlves expenditure In expenditure based instruments, it is the mney itself that is the direct instrument Gvernments are nt trying t achieve their bjectives r utcmes by changing infrmatin that undergirds behavir, but rather the calculus f csts, benefits and financial resurces that individuals r rganizatins undertake befre they d smething Expenditure instruments pse management challenges in terms f ensuring the cnditins are met and mnies are spent apprpriately, with sme result Regulatin Draws n the mst fundamental resurce the gvernment has: its ability t cmmand and prhibit Regulatry instruments are used t define nrms, acceptable behavir, r t limit activities in a given sciety The capacity depends n a blend f legitimacy and effective sanctins fr disbedience Thu shalt r thu shalt nt Statutes usually affect a large number f peple and are binding n all Regulatins can be bradly classified as ecnmic, scial r envirnmental Acting Directly Invlves marshalling the gvernments wn resurces twards achieving a public gal Example: health, scial services and educatin made up 74% f the gvernment expenditure in 2007 Gvernments can either prvide the service directly, r regulate the prvisin f the service by third parties, r d a mix f bth ex. Crwn crpratins, ASD, direct line functins etc. Spending Instruments Taxatin: Gvernments can benefit frm increased tax revenues Regulatin: regulatry instruments rely n the use f authrity
5 Mvements have emerged t reduce excessive red tape Sme reasns fr deregulatin: internatinal trade agreements, technlgy, ecnmics and cst At the same time, these reasns prmte regulatin in ther areas: technlgy, fd prducts, clean air standards, water quality and bitechnlgy A lt f regulatins are meant t prtect dmestic industries Case studies actually shw that deregulatin has resulted in a mre fcused and likely mre rbust regulatry rle by gvernment- majr deregulatin effrts have been accmpanied by refinements and creatins f new regulatry instruments New Emphases: Infrmatin, Partnerships, Internatinalism and Institutinal Design Infrmatin Typically cnsidered a weak and relatively unbtrusive instrument May be gaining imprtance fr at least 4 reasns Spending, regulatry and taxatin instruments have been cnstrained and infrmatin is ften less expensive and gives the impressin f being less invasive Allws citizen engagement and better accuntability mechanisms frm gvernment t public Infrmatin is becming a mre imprtant resurce and instrument fr gvernments due t the explsin f infrmatin and cmmunicatins technlgy As gvernments have becme mre active in the realm f civil regulatins, they inevitably get int the persuasin game, since the plicy prblems here are primarily attitudinal Partnerships Gvernments can either get ut f sme srt f the things that it has traditinally dne and leave them t the private r nn-prfit sectrs, r it can cntinue t d thse things in partnerships with thse sectrs Internatinalism With the internatinalism f s many plicy fields, mre and mre departments are engaged in internatinal negtiatins This needs t be crdinated Institutinal Design Gvernments increasingly cme t rely n the use f a different set f prcedural tls designed t indirectly affect utcmes thrugh the manipulatin f plicy prcesses Relevant t the restructuring f gvernment The new rle f gvernment is t facilitate and empwer, rather than t deliver and direct
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