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    Chap 6

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    Hai An Vu
    1. The document outlines seven questions to guide policy analysis by identifying objectives, design details, impacts, affected groups, effects, and costs. 2. The questions examine a policy's intended and actual objectives, design on paper vs in practice, groups targeted and reached, short and long term effects on well-being and behavior of affected groups, spillover and feedback effects, and budgetary costs over time. 3. Analyzing policies through these seven questions provides a framework for understanding their benefits, costs, impacts on different groups, unintended consequences, and financial implications.

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    Chap 6

    Uploaded by

    Hai An Vu
    24 views20 pages
    1. The document outlines seven questions to guide policy analysis by identifying objectives, design details, impacts, affected groups, effects, and costs. 2. The questions examine a policy's intended and actual objectives, design on paper vs in practice, groups targeted and reached, short and long term effects on well-being and behavior of affected groups, spillover and feedback effects, and budgetary costs over time. 3. Analyzing policies through these seven questions provides a framework for understanding their benefits, costs, impacts on different groups, unintended consequences, and financial implications.

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    Policy Ânlysis

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    1. The document outlines seven questions to guide policy analysis by identifying objectives, design details, impacts, affected groups, effects, and costs. 2. The questions examine a policy's intended and actual objectives, design on paper vs in practice, groups targeted and reached, short and long term effects on well-being and behavior of affected groups, spillover and feedback effects, and budgetary costs over time. 3. Analyzing policies through these seven questions provides a framework for understanding their benefits, costs, impacts on different groups, unintended consequences, and financial implications.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    24 views20 pages

    Chap 6

    Uploaded by

    Hai An Vu
    1. The document outlines seven questions to guide policy analysis by identifying objectives, design details, impacts, affected groups, effects, and costs. 2. The questions examine a policy's intended and actual objectives, design on paper vs in practice, groups targeted and reached, short and long term effects on well-being and behavior of affected groups, spillover and feedback effects, and budgetary costs over time. 3. Analyzing policies through these seven questions provides a framework for understanding their benefits, costs, impacts on different groups, unintended consequences, and financial implications.

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    CHAPTER 6:

    Policy Analysis
    Contents

    1. Policy analysis
    2. Seven Questions to guide
    policy analyses
    Policy analysis

    • policies are well designed


    and well implemented à
    contribute the most to
    development
    • analyze the benefits and
    costs à good policy choices
    Some concepts
    ● “Policy” refers to policy, project, or program, …
    implemented in pursuit of development objectives
    ● Established by: a government, intergovernmental
    agency, NGO, community group, or corporation
    ● New opportunities to, or new constraints on,
    certain groups.
    5

    What are the objectives of policy


    analysis?
    The fundamental objectives in
    policy analysis are:

    To identify, measure, and understand policies’


    benefits and costs;
    To assess how these benefits and costs might
    differ between alternative policies;
    To assess how a given policy’s benefits and
    costs might change with small
    adjustments in design
    7

    Directly Indirectly
    affected groups affected groups

    Indirect effects or
    spillover effects
    direct effects
    8

    Some relevant terms


    ● A policy’s impacts are all the changes in well-being and behavior
    experienced by anyone in society as a result of the policy’s
    introduction.
    ● Directly affected groups: Those who accept a policy’s opportunities
    or change their behavior to comply with a policy’s regulations
    ● Direct effects and indirect effects of a policy:

    ○ A policy’s direct effects: all changes in well-being and


    behaviour experienced by the directly affected groups

    ○ Indirect effects or spill over effects


    9

    Feedback effects :
    Changes
    Directed
    Policies markets,
    groups
    Feedback institutions
    effects

    ○ Changes in markets and institutions also generate a


    second round of impact on the directly affected.
    ○ Feedback effects often work to reduce a policy’s net
    effect on the directly affected groups.
    10

    Some relevant terms


    • Social benefits to refer to any improving
    changes in living conditions that result
    from a policy, for any group and at any
    time.
    • Social costs to refer to any deteriorating
    changes.
    • Budgetary cost: This is the currency value
    of any resources used in policy
    implementation
    • less any resources that recover costs
    (charging fees, requiring contributions)
    Seven Questions to
    Guide Policy Analysis
    1. Policy’s Objectives
    2. Design details on paper
    3. Impact in practice?
    4. Directly affected groups
    5. Direct effects
    6. Spillover and feedback effects
    7. Budgetary costs

    Chapter 14, 379-390. Development economics – Julie


    Schaffner
    Question 1: What are the policy’s objectives?
    ● A policy’s objectives: intended social benefits
    ● Defining a policy’s objectives requires identifying the
    target groups:
    ○ For whom the policy aims to improve living

    standards
    ○ The dimensions of living conditions that the policy

    seeks to improve (e.g., current food consumption,


    future business income, or access to health care).
    16

    Question 2: What design details define the policy on


    paper?
    ● For policies that offer benefits or services:
    • Program eligibility requirements;
    • The nature, size, and quality of benefits or services
    provided;
    • Any fees charged for services;
    • Any conditions or requirements placed on recipients; and
    • The procedures for disseminating information about the
    program, assessing eligibility, and distributing benefits or
    services.
    17

    Question 2
    • For policies that regulate activities:
    • The nature of the regulations;
    • The rules determining who is
    liable for compliance with the
    regulations;
    • The provisions for monitoring
    compliance; and
    • The penalties for noncompliance
    18

    Question 2
    • Governance structure choices:
    • identify the decentralized decision
    makers (e.g., local government
    officials) to whom various decisions
    have been delegated

    • managers and service providers (e.g.,


    school principals, teachers) who shape
    the use of funds and the quality of
    service provision or rule enforcement.
    19

    Question 3: What design details define the policy’s


    impact in practice?
    ● Policies often look different on the ground than they look on paper.

    ● Examine the policy’s de facto design details: To examine policy’s implementation


    outcomes compared to design details.

    ○ Identify the frontline/ implementing agents

    ○ Why the agents make the choices they do

    ○ How policy design and governance structure changes might improve the quality of
    their choices

    ● This involves examining the local information, capacity, resources, and coordinating
    oversight …
    20

    Question 4: What sorts of individuals, households, or


    firms are directly affected by the policy, how large are
    these groups, and how might the identity and sizes of
    the groups change over time?
    ● Define people are directly affected by the policy (groups the policy
    actually reaches)
    ● Compare with the target groups (groups the policy aims to reach)
    ● Targeting failure:
    ○ the leakage of benefits to nontarget groups

    ○ noncoverage by the program of some target group members


    21

    Question 5: What effect does the policy have on


    the well-being and behavior of the directly
    affected groups in the
    short, medium, and long run?
    ● Impacts on the well-being of everyone directly affected by a
    policy

    ○ Dimensions of living standards—including food


    consumption, working hours, health, and security

    ○ Diverse household members


    22

    Question 6: When changes in the behavior of


    the directly affected induce changes in markets,
    institutions, and the physical environment,
    what spillover and feedback effects result, and
    how do these effects vary over time?
    ● For some policies, the primary objective is to improve the
    well-being of the directly affected, but spillovers effects help
    spread the benefits to additional groups
    ● Some policies achieve their primary objectives only indirectly
    through spillover effects.
    23

    Question 7: What are the budgetary costs of the


    policy and how do they vary over time?
    Including:
    ● Any subsidies implicit in the provision of transfers or services
    ● Any administrative costs of

    ○ assessing eligibility

    ○ monitoring compliance with program requirements or with


    regulations

    ○ distributing benefits

    ○ exacting punishments.

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