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Prof. Shrinivas
07-12-2016 1
Public Policies
07-12-2016 2
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.
07-12-2016 3
Public policies in India
 Energy
 Waste management
 Retail
 Gender
 Education
 Health
 Water
 Environment
 Food
 Real estate
 Pharmaceutical
 Finance
 ICT
07-12-2016 4
 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
07-12-2016 5
Government’s public policy role
Public policy
A 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.
07-12-2016 6
Types of public policy
Fiscal policy
Refers to patterns of government taxing and
spending that are intended to stimulate or support
the economy.
Monetary policy
Refers to policies that affect the supply, demand,
and value of a nation’s currency.
Social assistance policies
Examples include health care and education.
07-12-2016 7
Government regulation of business
Regulation
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
07-12-2016 8
Types of regulation: Economic
Economic regulations
Aim 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
07-12-2016 9
Types of regulation: Social
Social regulations
Aimed 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
07-12-2016 10
Social regulation examples
 Consumer Product Safety Commission sets
strict rules for children’s consumables.
 The Environmental ProtectionAgency 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.
07-12-2016 11
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.
07-12-2016 12
 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.
07-12-2016 13
 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
07-12-2016 14
 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.
07-12-2016 15
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.
07-12-2016 16
Classification of public
policy
Policies 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.
07-12-2016 17
 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.
07-12-2016 18
 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.
07-12-2016 19
Important public policies of
India
UDAY(Ujwal Discom AssuranceYojana)
 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.
07-12-2016 20
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)
07-12-2016 21
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 KaushalVikasYoajana.
Ministry:-Mini. Of Skill Development .
07-12-2016 22
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.
07-12-2016 23
07-12-2016 24
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 .
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.
07-12-2016 25
07-12-2016 26
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 .
07-12-2016 27
10.Stand Up India
•To promote entrepreneurship among SC/STs andWomen.
•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
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
07-12-2016 28
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.
07-12-2016 29
Features of business policy
 Specific
 Clear
 Reliable
 Appropriate
 Simple
 Inclusive
 Flexible
 Stable
07-12-2016 30
Elements of public policy
 A public policy is an action by a government
that affects public welfare. It includes:
1. Laws
2. Rules and regulations
3. Programs(welfare, Medicare) and practices
4. Specific policy changes
5. At international, national, state and local
levels
07-12-2016 31
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
07-12-2016 32
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
07-12-2016 33
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.
07-12-2016 34
 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
07-12-2016 35
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.
07-12-2016 36
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.
07-12-2016 37
 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
07-12-2016 38
Weaknesses in India's Public
Policy making
 Excessive Fragmentation inThinking 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
07-12-2016 39
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
07-12-2016 40

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Public policies in India

  • 3. 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. 07-12-2016 3
  • 4. Public policies in India  Energy  Waste management  Retail  Gender  Education  Health  Water  Environment  Food  Real estate  Pharmaceutical  Finance  ICT 07-12-2016 4
  • 5.  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 07-12-2016 5
  • 6. Government’s public policy role Public policy A 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. 07-12-2016 6
  • 7. Types of public policy Fiscal policy Refers to patterns of government taxing and spending that are intended to stimulate or support the economy. Monetary policy Refers to policies that affect the supply, demand, and value of a nation’s currency. Social assistance policies Examples include health care and education. 07-12-2016 7
  • 8. Government regulation of business Regulation 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 07-12-2016 8
  • 9. Types of regulation: Economic Economic regulations Aim 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 07-12-2016 9
  • 10. Types of regulation: Social Social regulations Aimed 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 07-12-2016 10
  • 11. Social regulation examples  Consumer Product Safety Commission sets strict rules for children’s consumables.  The Environmental ProtectionAgency 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. 07-12-2016 11
  • 12. 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. 07-12-2016 12
  • 13.  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. 07-12-2016 13
  • 14.  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 07-12-2016 14
  • 15.  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. 07-12-2016 15
  • 16. 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. 07-12-2016 16
  • 17. Classification of public policy Policies 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. 07-12-2016 17
  • 18.  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. 07-12-2016 18
  • 19.  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. 07-12-2016 19
  • 20. Important public policies of India UDAY(Ujwal Discom AssuranceYojana)  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. 07-12-2016 20
  • 21. 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) 07-12-2016 21
  • 22. 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 KaushalVikasYoajana. Ministry:-Mini. Of Skill Development . 07-12-2016 22
  • 23. 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. 07-12-2016 23
  • 24. 07-12-2016 24 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 .
  • 25. 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. 07-12-2016 25
  • 26. 07-12-2016 26 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 .
  • 27. 07-12-2016 27 10.Stand Up India •To promote entrepreneurship among SC/STs andWomen. •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
  • 28. 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 07-12-2016 28
  • 29. 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. 07-12-2016 29
  • 30. Features of business policy  Specific  Clear  Reliable  Appropriate  Simple  Inclusive  Flexible  Stable 07-12-2016 30
  • 31. Elements of public policy  A public policy is an action by a government that affects public welfare. It includes: 1. Laws 2. Rules and regulations 3. Programs(welfare, Medicare) and practices 4. Specific policy changes 5. At international, national, state and local levels 07-12-2016 31
  • 32. 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 07-12-2016 32
  • 33. 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 07-12-2016 33
  • 34. 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. 07-12-2016 34
  • 35.  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 07-12-2016 35
  • 36. 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. 07-12-2016 36
  • 37. 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. 07-12-2016 37
  • 38.  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 07-12-2016 38
  • 39. Weaknesses in India's Public Policy making  Excessive Fragmentation inThinking 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 07-12-2016 39
  • 40. 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 07-12-2016 40

Editor's Notes

  1. One of the main problems with policy-making in India, is extreme fragmentation in the structure. For example, the transport sector is dealt with by five departments/Ministries in the government of India whereas in the US and UK it is a part of one department (Department of Transport and Public Works in the US and Department of Environment, Transport and Regions in the UK). Similar examples exist in the energy, industry and social welfare sectors as well. Such fragmentation fails to recognize that actions taken in one sector have serious implications on another and may work at cross purposes with the policies of the other sector. Time is spent anticipating and answering parliamentary questions, attending meetings and functions on implementation issues etc. Partly the problem is symptomatic of over-centralisation—excessive concentration of implementation powers at the higher levels of the Ministries. Lack of systematic analysis and integration prior to policy-making – I. Excessive fragmentation Inadequate time spent on policy-making Inadequate professionalism of policy-makers and advisers