81600401-Policy-Process

For this stage to make sense one must compare the

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Unformatted text preview: n. For this stage to make sense, one must compare the results obtained from the policy with the objectives set in the initiation stage. At this stage it is important to make a distinction between outcome and output. Output refers to what the government actually does and it is 7 quantifiable. Outcome refers to the achievement of the government, which is harder to determine. In making the evaluation, it is necessary that evaluators keep in mind that other factors may be changing. For instance, the government wants to decrease the unemployment rate by 2% points and implements certain policies. This decrease does actually happen but at the same time there is an unexpected boom, which contributed to the decrease. This means that the policy did not necessarily reach its goals. During this stage, it is necessary to remember that policies may have both short term and long term effects. Therefore, evaluators should be patient. For the assessment to be done, the bottom-up approach is frequently used. This happens because feedback needs to be given mainly by those who are affected by the policy, both directly and indirectly. This is sometimes known as the stakeholder analysis. Clearly, there may be some who benefited and some who lost from a policy. Another technique available to the evaluators is the cost-benefit analysis. In this case, one has to consider both the direct costs/benefits as well as the indirect costs/benefits, known as externalities. The importance of externalities, as James E. Anderson sees it is that ³Most of the outcome of public policies can be most meaningfully understood in terms of externalities.´ Obviously, not all costs and benefits are in terms of money. A final thing to be considered in this stage is the sustainability of project and the impact it may have on the government finances. 8 Review Following the evaluation in the previous stage, the policy-makers have to decide what action to take. Generally, speaking, there are three courses of action that could be taken. Th...
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