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Prof. Shrinivas

Public Policies

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Meaning

Public policy is the principled guide to action taken by the administrative executive branches of the state with regard to a class of issues, in a manner consistent with law and institutional customs.

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Public policies in India

Energy Waste

management Retail Gender Education Health Water

Environment Food Real estate Pharmaceutical Finance ICT

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Public policy is a course of action adopted and pursued by a government.

Public: it comprises domain of human activity which is regarded as requiring governmental interventions or common actions

Policy: a purposive course of action taken or adopted by those in power to pursuit certain goals and objectives

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Government’s public policy role

Public policyA plan of action undertaken by government officials to achieve some broad purpose affecting a substantial segment of a nation’s citizens.

Public policy inputs shape a government’s policy decisions and strategies to address problems.

Public policy goals can be broad and high-minded nor narrow and self-serving.

Governments use public policy tools involving combinations of incentives and penalties to prompt citizens to act in ways that achieve policy goals.

Public policy effects are the outcomes arising from government regulation.

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Types of public policy

Fiscal policyRefers to patterns of government taxing and spending that are intended to stimulate or support the economy.

Monetary policyRefers to policies that affect the supply, demand, and value of a nation’s currency.

Social assistance policies Examples include health care and education.

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Government regulation of businessRegulation

The action of government to establish rules by which business or other groups must behave. It is a primary way of accomplishing public policy.

Reasons for regulation Market failure Natural monopolies Ethical rationales

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Types of regulation: Economic

Economic regulationsAim to modify the normal operation of the free market and the forces of supply and demand. Control prices or wages Allocate public resources Establish service territories Set the number of participants Ration resources

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Types of regulation: Social

Social regulationsAimed at such important social goals as protecting consumers and the environment and providing workers with safe and healthy working conditions. Pollution laws Safety and health laws Job discrimination laws applicable to businesses Consumer protection laws that apply to all

relevant businesses producing and selling consumer goods

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Social regulation examples

Consumer Product Safety Commission sets strict rules for children’s consumables.

The Environmental Protection Agency sets limits on the amounts of sulfur dioxide that can be emitted into the air from the smokestacks of power plants.

The NHAI requires new cars to be equipped with air bags, seatbelts, and other protective gear.

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The role of public policy in governing business

When new public policies are created, there are generally three key things involved in the process: the problem, the player and the policy.

The problem is the issue that needs to be addressed, the player is the individual or group that has to be addressed, and the policy is the finalized course of action.

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The rational model for the public policy making process can be typically divided into 3 steps: agenda setting, option formulation, and implementation.

Government officials or the agencies meet to discuss the problem at the end.

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Economic policy :• Economic policy is of vital

importance that affects the business.• It deals with the tools that the

government uses to manage the economy or solve economic problems

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Social welfare policy:The nation that the government is

responsible for its citizens is a relatively new idea. Social welfare policy is implemented through many programs designed to improve health,education,housing,employment.

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Government and public policy A policy is typically designed as

principle or rule to guide decisions and achieve rational outcomes. The term is not normally used to denote what is actually done, this is normally referred to as either procedure or protocol.

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Classification of public policyPolicies may be classified in many different ways:

Distributive policies:Distributive policies extend goods and services to

members of a system, as well as distributing the cost of the goods/services amongst the members of the system.

Examples include government policies that impact spending for welfare, public education, highways and public safety or a professional organization’s benefit plan.

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Regulatory policies: Regulatory 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.

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Constituent policies:It creates executive power entities or

deal with laws, it also deals with fiscal policy in some circumstances.

Miscellaneous policies:Polices are dynamic they are not just

static lists of goals or laws. Policy blueprints have to be implemented, often with unexpected results.

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Important public policies of IndiaUDAY(Ujwal Discom Assurance Yojana) It aims to improve financial and operational

efficiencies of power distribution companies. UDAY has incentives in the scheme to

encourage state governments to restructure their debts.

Recently, RBI has released UDAY bonds worth 1Lakh crore ,on behalf of 8 states.UDAY bonds fetch Rs.99,000 crore

Ministry:-Power and Coal.

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2. Make In India

Under it ,the main focus is on simplifying procedures to improve ease of doing business in India ,IPR protection, focus on various sectors to encourage domestic manufacturing industries ,opening new sectors for FDI etc.

It aims to increase share of manufacturing industry in GDP from current 16% to 25% by 2025, with key focus on defence, infrastructure etc.

Ministry:-DIPP(Department of Industrial Policy & Promotion)

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3.Skill India

As per labour report ,2014,only 2-3% Indians have got formally skill training which is v.low vis-à-vis S.Korea ,Japan etc. Improving it, is one of key targets of Skill India mission.

Govt. aims to skill 40 crore people by 2022 through PM Kaushal Vikas Yoajana.

Ministry:-Mini. Of Skill Development .

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4.Namami Gange

To make Ganga pollution free by involving ULBs and PRIs and common people.

Program has outlay of 20k crore for next 5 years.

Ministry:-Water, Ganga Rejuvenation ministry.

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5.Digital India It's key pillars are broadband highways into rural

areas, Public internet access, E-governance,Zero import of electronics by 2020,creating IT jobs etc.

Ministry:-Communications and IT.

6.HRIDAY-(Heritage Development and Augmentation Yoajana)

A flagship scheme of GoI ,focused on revitalising 12 heritage cities of India.

Ministry:-Urban Development .

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7.Pradhan Mantri Ujjwala Yojana. It aims to provide free LPG to 5 crore

BPL families in next three years ( 1.5 crore families in current fiscal year).

It will reduce no. of deaths being caused by smoke from wood, dung etc.

Ministry:- Petroleum and Gas.

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8.Mission Indradhanush.

It aims to cover all unvaccinated children/partially vaccinated to prevent them from 7 diseases-Polio, Tetanus, Diphtheria ,Cough, T.B., Measles, Hepatitis B.

Ministry :-Health.

9.Beti Bachao- Beti Padhao.

It aims to stop declining sex ratio in 100 worst districts of country ,though 61 more districts have been recently added .

Scheme aims to promote gender equality ,significance of educating girls by promoting girls education .

Ministry :-HRD+ Women Development + Health .

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10.Stand Up India

•To promote entrepreneurship among SC/STs and Women.•Under scheme, every bank branch will fund two projects each, which will benefit at least 2.5 lakh borrowers with next 3 years.

Ministry:-Finance.

11. Sagar Mala project

•By Sagar Mala initiative govt. wants to modernise ports, improve their efficiency.•It will lead to addition of 100 million tonnes of capacity to existing capacity of major ports.•Recently, Maritime India Summit,1st of it's kind, was organised in Mumbai to attract investments in the shipping sector.

Ministry:- Shipping

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12. Soil Health Card• Scheme will provide a soil health

card to every farmer ,which will carry info. about condition of soil by descriptive terms and indicators .

• Card will carry crop-wise recommendation of fertilisers required for farm land and crops

Ministry:- Agriculture 

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Need for business policy

Business policy defines the scope or spheres within which decisions can be taken by the subordinates in an organization.

It permits the lower level management to deal with the problems and issues without consulting top level management every time for decisions.

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Features of business policy Specific Clear Reliable Appropriate Simple Inclusive Flexible Stable

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Elements of public policy

A public policy is an action by a government that affects public welfare. It includes:

1. Laws2. Rules and regulations3. Programs(welfare, Medicare) and

practices4. Specific policy changes5. At international, national, state and

local levels

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Corporate and public policy Generally, companies react to issues

after they have been brought to light. Corporations should have policies in place that identifies their views on issues and willingness to stand behind those views. This is known as corporate public policy

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Planning and implementing corporate public policy

The adoptions of a corporate public policy agenda involves 5 steps.

Scan the environment Assess organizational assets meaning that

once social trends have been identified, the company must figure out how it can address that trends and whether it has the ability to do so with its current assets

The third step is to set the policy The fourth step is to implement the policy The fifth step is to measure the results

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Framing of public policy

Public policy is created by legislation. It is generally defined as the principles or standards regarded by legislature, or the courts, as being of fundamental concern to the state and the whole of society.

How is public policy framed?It is formulated with active

involvement on the part of interest groups whose members do not seek election.

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It comprises of expert and panel to make final judgment

Based on the feedback or opinion of the expert committee the public policy is framed

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Levels of public policy

The below is the public policy cycle:1. Agenda setting: problems are

defined and issues are raised. Gate keepers filter out those which will be given attention by either the executive or the legislative branches

2. Formulation: analysis and politics determines how the agenda item is translated into an authoritative decision.

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3. Implementation-the authorized policy must be administered and enforced by an agency of govt. the agency must take instructions as stated in the policy, but will probably be called upon to provide missing pieces and to make judgments as to intent, goals, timetables

4.Budgeting:Financial resources must be brought to beat

within an ongoing annual stream of budget cycles.

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5. Evaluation-the impact of the policy may be assessed . If goals exist, the effectiveness of the policy and its components can be determined. The feedback provided by evaluation is injected back to the agenda setting and frame new policies

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Weaknesses in India's Public Policy making Excessive Fragmentation in Thinking

and Action Excessive overlap between policy

making and implementation Lack of non-governmental inputs and

informed debate Lack of systematic analysis and

integration prior to policy-making

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Reforming Institutional Structures and Processes

Reduction in fragmentation Separation of policy-making from

implementation and de-centralising implementation authority

Widening and enhancing the knowledge base used in policy-making and promoting integration and synthesis