Midterm Notes on Public Finance (PDF)

Midterm Notes Models of Public Policy: Frameworks for Understanding Governance Public Policy Models serve as essential frameworks for understanding how governments make decisions, implement programs, and interact with various stakehold...

Midterm Notes Models of Public Policy: Frameworks for Understanding Governance Public Policy Models serve as essential frameworks for understanding how governments make decisions, implement programs, and interact with various stakeholders in society These models provide researchers, policymakers, and students with valuable lenses through which to analyze complex political processes and outcomes By examining different theoretical approaches, we can gain a more comprehensive understanding of how public policies are formulated, adopted, and implemented across diverse political systems and contexts. This presentation will explore six prominent models of public policy: 1. Elite theory 2. Group theory 3. Institutionalism 4. Rational choice theory 5. Political systems theory 6. Policy process model. Each of these frameworks offers unique insights into the dynamics of policy making and governance, highlighting different actors, structures, and processes that shape public policy outcomes. Elite Theory: Power Concentration in the Hands of Few 1. Concentration of Power Midterm Notes 1  Elite theory posits that a small group of powerful individuals or organizations wield disproportionate influence over policy decisions. 2. Limited Public Influence The general public has minimal impact on policy outcomes, as elites shape the political agenda and control key resources. 3. Interlocking Networks Elites form interconnected networks across various sectors, including government, business, and media, reinforcing their influence. 4. Policy Outcomes Public policies tend to reflect the interests and preferences of the elite, often at the expense of broader societal needs. Group Theory: The Interplay of Competing Interests Midterm Notes 2  💡 The RH Law, or Responsible Parenthood and Reproductive Health Act of 2012, aimed to improve access to contraception, maternal healthcare, and sex education. Gabriela Women's Party – Gabriela is a strong advocate for women’s reproductive rights, supporting access to contraception, maternal health services, and sex education. Group Influence: Pro-RH groups, including women’s rights organizations and health advocates, supported the law, citing benefits for family health and women's rights. Opposition groups, particularly religious organizations like the Catholic Church, strongly opposed it on moral and religious grounds. The final law was passed after lengthy debates, with some provisions amended to address concerns raised by religious groups, showcasing a policy outcome shaped by both sides. 1. Interest Group Competition Group theory emphasizes the role of various interest groups in shaping public policy through competition and negotiation. These groups represent diverse societal interests, from business associations to labor unions and environmental organizations. 2. Pluralism The model assumes a pluralistic society where multiple groups have the opportunity to influence policy outcomes. This competition is seen as a key driver of democratic processes and policy formulation. 3. Policy as Compromise Public policies often emerge as compromises between competing group interests, reflecting the relative power and resources of different stakeholders in the political arena. Institutionalism: The Role of Formal and Informal Structures Midterm Notes 3  1. Formal Institutions Institutionalism focuses on how formal governmental structures, such as constitutions, laws, and bureaucracies, shape policy outcomes and constrain actor behavior. 2. Informal Norms The theory also considers informal norms, routines, and practices that influence policymaking processes within institutional frameworks. 💡 "Palakasan System" (Favoritism) in Hiring Context: In some government or corporate offices in the Philippines, it’s an informal norm to prioritize hiring people who have personal connections (relatives, friends) over those who may be more qualified. Impact: Even though there are formal hiring procedures, this norm affects hiring decisions, sometimes leading to favoritism over merit-based selection. 3. Historical Context Institutionalism emphasizes the importance of historical context and path dependence in shaping current policy decisions and institutional arrangements. Midterm Notes 4  💡 Language Policies Reflecting American Colonization Context: The American colonial period (1898-1946) introduced English as a primary language for education and government in the Philippines. This historical context has led to English’s enduring role in Filipino society. Impact: Today, English remains a key language in schools, government, and business due to its historical roots. Policies promoting bilingual education (Filipino and English) stem from this colonial influence, aiming to preserve Filipino culture while retaining the advantages of English proficiency. 4. Institutional Change The model explores how institutions evolve over time and how institutional change can lead to shifts in policy outcomes and governance structures. 💡 Shift from Dictatorship to Democracy after the 1986 People Power Revolution Context: The Marcos regime (1965-1986) saw centralized power, with limited democratic processes and frequent human rights abuses. The People Power Revolution ended this dictatorship and led to the drafting of the 1987 Philippine Constitution. Institutional Change: The 1987 Constitution introduced stronger checks and balances, a term limit for the presidency, and other democratic reforms to prevent future abuses of power. This transition marked a significant institutional shift from authoritarian rule to democratic governance. Rational Choice Theory: Decision-Making through Cost-Benefit Analysis Midterm Notes 5  1. Individual Rationality Rational choice theory assumes that policymakers and individuals make decisions based on a careful calculation of costs and benefits to maximize their utility or achieve their goals. 2. Information Gathering Decision-makers collect and analyze relevant information to evaluate potential policy outcomes and their associated probabilities. 3. Preference Ordering Policymakers rank alternative courses of action based on their expected utility, choosing the option that best aligns with their preferences and objectives. 4. Policy Implementation The chosen policy is implemented, and its outcomes are monitored to inform future decision-making processes and refine rational choice models. Political Systems Theory: A Holistic Approach to Policymaking 1. System Inputs Political systems theory views policymaking as a process of converting inputs (demands, support, and resources) from the environment into policy outputs and outcomes. 2. Conversion Process The theory examines how political institutions and processes transform inputs into policy decisions, emphasizing the dynamic interactions between system components. 3. System Outputs Midterm Notes 6  Policies and decisions emerge as outputs of the political system, which then feed back into the environment , influencing future inputs and system dynamics. 4. Feedback Loops The model highlights the importance of feedback mechanisms in shaping policy adjustments and system adaptations over time. Policy Process Model: Stages of Policy Development 1. Agenda Setting Issues gain attention and are placed on the policy agenda through various means, including media coverage, public pressure, and elite influence. 2. Policy Formulation Policymakers and stakeholders develop potential solutions and policy alternatives to address the identified issues. 3. Decision Making Government officials select and adopt specific policy options through legislative, executive, or judicial processes. Midterm Notes 7  💡 There are three (3) branches of government: Executive, Legislative, and Judicial. One branch cannot function without the others. Our daily lives depend on how well these three branches work together. Over the course of the pandemic, we have come to realize that we should be more well-informed about our government so that we can vote for our next government leaders wisely. Executive: Carries out and enforces laws Composed of the President and the Vice President, the cabinet, executive departments, independent agencies, and other boards, commissions, and committees. Legislative: Congress, Senate and House of Representatives Authorized to make, alter, and repeal law. The Congress makes up the legislative branch of the government. It is composed of the Senate, also known as the upper house, and the House of Representatives known to many as the lower house. The Congress drafts, reviews, amends, and repeals proposed laws (bills). It also has the power to amend the 1987 Constitution and is tasked with passing the national budget each year. Judicial: Supreme Court and Other Courts Evaluates & interprets the meaning of laws, applies laws to individual cases, and decides if laws violate the Constitution. The Judiciary is composed of the Philippine courts and the Supreme Court, the highest court of the land. Judges and Justices are appointed by the president who chooses from a pre-screened list of nominees issued by the Judicial Bar Council. The Supreme Court is composed of the Chief Justice and of the fourteen Associate Justices. The judiciary interprets the meaning of laws, applies the laws to particular cases, and decides if a law violates the Constitution. Midterm Notes 8  4. Implementation Bureaucracies and agencies put the adopted policies into practice, allocating resources and establishing procedures. 5. Evaluation The impacts and effectiveness of implemented policies are assessed, potentially leading to policy modifications or termination. Integrating Policy Models: A Comprehensive Approach 1. Complementary Insights Combining multiple policy models can provide a more comprehensive understanding of complex policymaking processes, capturing different aspects of governance and decision-making. 2. Context-Specific Application Researchers and policymakers can select and integrate models based on the specific policy context, political system, and research questions at hand. 3. Methodological Triangulation Using multiple models allows for methodological triangulation, enhancing the validity and reliability of policy analysis and research findings. 4. Adaptive Framework An integrated approach to policy models can create a more adaptive and flexible framework for understanding and responding to evolving policy challenges and environments. Comparative Analysis: Strengths and Limitations of Policy Models Midterm Notes 9 Midterm Notes 10