Public policy is influenced by many internal and external factors. Internal factors include public opinion, the economy, technology, and interest groups, while external factors are donor agencies, neighboring countries, socio-cultural conditions, and political activities. Public opinion strongly influences policy through protests and elections. The economy can enable or constrain policy based on available resources. Technology provides new solutions but also changes business environments. Interest groups advocate for policies benefiting their members. Donor agencies provide aid with policy conditions. Neighboring country relationships and demands also shape policy. Socio-cultural norms must be considered. Political parties compete over policy control through debates and demands.

1. Factors Affecting Public
Policy
Objective : To make group presentation the various factors affecting the
public policy.

2. Introduction
• Public policy is a complex, interdisciplinary and multifaceted
subject of study.
• It involves the interplay of many parties that results in affecting
or influencing the process of public policy directly or indirectly.
• The factors may be,
i. Internal factors affecting public policy
ii. External factors affecting public policy

3. Public Opinion
• Public opinion and priorities have strong influence on public
policy over time.
• Public nowadays are conscious and are concerned about the
transparency, environment issues, climate change etc.
• Public demands are in increasing manner which the
government is subjected to meet the demands through its
policies
• It influences public policy through electoral politics, citizen
rallies, strikes, protests, agitations and actions that affect
governmental decision makers.
• Example; Peoples movement 2007 BS 2047 BS and 2062/63.

4. Economic
• Economy is the key resource to implement public policy. Therefore,
economy directly hits on the policy making environment.
• Lack of resource mobilization policy would fail to meet its objectives.
• Policy execution may be bottlenecked or narrowed in economic
recession.
• Great Depression laid to the failure of Monetary Policy.
• Many policies could not gave the expected outcomes in the scenario
of COVID-19

5. Technology
• Technology gives new techniques, ideas and methods to deal with the
problems and issues.
• Technology ease the mechanism of problem solving, analyzing,
calculation and computing by its methods and advancements.
• Technology facilitates these modern tools, equipment methods to
bring quick, accurate and consistent results.
• Technology is constantly changing and this affects the business
environment directly and also indirectly as public policies
change with technological inventions.

6. Interest Groups
• Interest groups include business, trade associations,
professional organizations, labor unions, environmental
advocacy organizations, civil society, media and lobbies.
• Individuals and businesses try to influence the government in
decision making and policies by lobbying, collective bargaining
and negotiations.
• These different interests groups advocate for public policies that
serve their desires of their members and further the mission of
their organizations.

7. Donor Agencies
• Donor agencies provide conditional grants to meet their self-interest
through aid.
• The aid receiving country must agree to obey certain terms and
conditions of the donor agencies.
• Therefore, the agencies bargain with the government authorities to
shape policies according to the favor of donor agencies.
• Sometimes government obey the terms and conditions of donor
agencies to put impression and pleading the agencies.
• Example, the dilemma of MCC approval or rejection.

8. Close Neighbors
• The relationship with the neighboring countries is crucial in terms of
trade and various businesses.
• The relationship must be kept making balance among the neighbors.
• Few Policies are influenced to please the close neighbors Example
Nepal has Extradition Treaty, 1953 with India and China has been
demanding Nepal to have Sino-Nepal Extradition Treaty though Nepal
has shown reluctancy to adopt the treaty.
• Also the big neighbors like in the context of Nepal plays greater role
to influence the process of public policy to achieve their vested
interest.

9. Socio-cultural condition
• The arrangement of society and the culture that society possess have
greater impact on the public policies.
• Public policy is subjected to address the societal norms and standard
for the smooth functioning and success of the policy.
• Policies provisioned against the socio-cultural norms cannot sustain
prolong.
• Example; Failure attempt to replace the Nepalese Bhatta Pujari in
Pasupathi Nath temple

10. Political activity and behavior
• Politics in multiparty system is the struggle of parties for power. There
is competition and conflict followed by the conflict of their interest.
• Political Parties act to establish popular control over government and
public policies.
• There may be intra(within a party) and inter (among the parties)
partisanal political discourse in shaping public policy.
• The opposition party might demand the stake in the particular policy.
• Example (Stakes in constitutional appointments and ambassadors)