Policy is the avenue through which governments and institutions work collaboratively to address important issues like advancing economic growth, expanding access to high quality health care and limiting climate change. Government policies take many shapes including taxes, spending plans, regulations and other legislative actions. Effective policymaking involves balancing a complex range of different factors – from societal needs to prevailing political ideas to the structures and personnel involved in crafting policy and the administrative, managerial and legal processes required to deliver social outcomes from policy outputs.
The first step in the policymaking process is agenda setting, which identifies problems that require attention and determines which should receive priority. This is often influenced by the governing party, who can shape law making and resource allocation based on their ideological beliefs. It also involves considering the needs of impacted stakeholders, which is why effective policymakers are prepared to listen to and engage with all types of impacted groups.
The second stage is policy making, which involves identifying solutions that are likely to be successful and developing an action plan to implement those solutions. This can involve direct government action, such as levying taxes to directly affect behaviours (Make), or indirect action through subsidizing an alternative to promote the desired behaviours (Buy). It can also include influencing broader societal behaviours by telling people what they should do (Oblige) or by making certain behaviours illegal (Prohibit).