Untitled Quiz

Session 1A: Overview of Public Policy

• Session covers the nature and scope of public policy, the public policy process, paradigms and models of public policy and policy design, the law of unintended consequences, and behavioural economics in public policy.

Public Policy: Session Structure

• Public policy encompasses the nature and scope of policy, the policy process, paradigms and models of policy design, and the law of unintended consequences in public policy.
• It also considers behavioral economics and its role in public policy.

We The People

• India's constitution declares its values of justice, liberty, equality, and fraternity.
• It also outlines the unity, integrity, and dignity of the nation.

India's GDP and Life Expectancy (1950-2020)

• India's GDP grew from 30.6billionin1950to30.6 billion in 1950 to 30.6billionin1950to2.6 trillion in 2020, with plans to reach $5 trillion by 2025.
• Life expectancy in India has increased significantly from 1950, surpassing the level from the time of independence by a wide margin

Public or Social Goods

• Public goods benefit the greatest number of people.
• Examples include clean air, water, healthcare, education, and police service.
• Private goods are those that are consumed by one person, and their availability to others isn't affected.
• Public goods are typically provided by the government because they are non-rivalrous (one person's use does not affect another's) and non-excludable (it's difficult to prevent individuals from consuming them).
• The cost of these goods is typically covered by taxes.

What is Policy?

• Public policy is complex, and it's difficult to offer a single definition.
• It covers the delivery of public goods and services.
• Policy is often described as the "output" of the political system.
• Public policy reflects the important values and conflicts within a given society.
• It is influenced by cultural norms and the structure of government.

Equality, Equity, and Justice

• Equality aims for all to benefit from the same resources.
• Equity strives to provide the support each person needs to succeed.
• Justice requires addressing the underlying factors causing inequalities.

Policy and Goals

• Policies are purposeful and designed to achieve specific goals within a defined timeframe.
• Goals and objectives are dependent on the values of the policymakers and the broader society.
• Policies are the means to achieve those goals, distinct from the goals themselves.

Policymaking Cycle

• The cycle involves identifying problems, setting the agenda, formulating policies, enacting decisions, implementing policies, and evaluating the effects.

Problem Identification and Issue Framing

• Framing problems is crucial because how a problem is defined impacts the types of solutions that are considered.
• Problems may not always get policy attention.
• Politicians may frame problems for political gain, leading to policies that don't effectively address the underlying issues.

Paradigms of Public Policy - I

• Public policy is a political process, marked by contestation and negotiation.
• Incrementalism is a policymaking strategy that involves gradual changes over time to avoid unintended consequences and political friction by making small changes.

Paradigms of Public Policy - II

• Rationalism focuses on using knowledge and objectivity to create the most effective policies.
• It seeks to optimize social costs and benefits.
• The rationalist paradigm attempts to understand comprehensive options, their implications, and how to choose the most optimal choice.

Models of Public Policy - I

• Elite-mass model: policy reflects the values, preferences, and decisions of the governing elite to maintain stability and continuity.
• Some policies are developed to maintain the status quo to avoid disruption.

Models of Public Policy - II

• Group model: Policies are the outcome of clashes among competing interest groups vying for resources and rewards.
• Institutional model: Power centers through institutions like the political system, and laws.

The Policy Environment (Systems Model)

• Elections, public opinions, communications to officials, media coverage, and personal experiences shape policy inputs.
• The political system (black box) processes these inputs into policies outputs, such as laws and decisions.
• Feedback mechanisms complete the circuit.

Multiple Streams Framework Model

• This model emphasizes the importance of policy ideas, the political environment, policy problems, and how these interact to shape policy outcomes.
• It emphasizes the importance of various stakeholders and their role in policymaking.

Lokpal and Lokayuktas Act

• Introduced in Parliament in 1968, but the passage was prompted by the exposure of big-ticket corruption scams in 2009-2010.
• The Act leverages public outrage to force policy changes related to corruption in India.

Lokpal and Lokayuktas Act: Concluded

• The media played a crucial role in this policy campaign.
• This strategy combines advocacy coalitions' frameworks and multiple streams to foster policy change.

Toolkits of Public Policy Intervention

• Toolkits employ coercion, taxation, subsidies, and budgetary resources for producing public services and handling infrastructure
• Policymakers must be aware of the law of unintended consequences and potential for paternalism.
• Key factors for successful policies are market failure, the right policy choices, and sincere implementation.

Why Things Go Wrong

• Information constraints can be due to inadequate data quality, lack of research, and insufficient resources.
• Administrative constraints include leadership role, corruption, and principal-agent problems.
• Voter rationality constraint and incentives problems emerge when policies prioritize popularity over sound economic practices.

Law of Unintended Consequences

• Policies can often have unintended and unforeseen negative effects.
• Examples include short-sighted decision-making and improper incentive structures.

Which Policies Have Better Chances of Success?

• Policies that are enacted following public outcry and widespread protests tend to have a greater chance of success.

Framework of Successful Policy

• Policies with concentrated benefits and diffused costs are more likely to be politically successful.
• Policies with dispersed costs and benefits may cause politicians to have concerns about political support

Use of Behavioral Economics for Good Public Policy Design

• Behavioral economics provides useful insights for designing better public policies.
• The "context effect," the influence of default options, and the issue of transaction costs all have bearing on policy design
• The design of policies can often change people's behaviors.

Level of Influence

• Nudge strategies aim to gently steer individuals toward desired behaviors.

Behavioral Toolbox

• Loss aversion, the power of "free," herd mentality, social norms, peak-end rules are used in the behavioral toolkit.
• Framing is used to convey alternatives effectively
• Choosing a paradox is used to guide decision-making
• Rewards and incentives are used to encourage better behavior