It is the stage of the policy process where

pertinent and acceptable courses of action for

dealing with some particular public problems
are identified and enacted into law(James E
Anderson, 1990).
Policy Formulation

Dr. Upul Abeyrathne,

Senior Lecturer,
Department of Economics,
University of Ruhuna,
Matara
 Nature of Policy Solutions
The expected result of the policy formulation
is some type of solution.
 Deborah Stones Categorization of
Solutions
1. Inducement : Positive (e.g. Tax Holidays)
Negative (e.g. Punishment for pollution).
2. Rules: Other forms of mandated behaviour
such as regulations of governing pollution.
3. Facts: The use of information to persuade
target groups to behave in certain ways (e.g.
Community rights to know information)
4.Rights: gives certain people rights or duties
5. Powers: Decisions making body is charged
with specific powers to improve the decision
making
 These policy decisions may either be
1. Legislation by the parliament
2. Executive orders
3. Judicial decisions
4. Other forms of policy outputs.
 Actor
Multiple actor
1. Governmental agencies: Departments,
Commissions etc.
2. The executive: President/Cabinet
3. The Legislature
4. Interest groups
5. Politically Persons
 Government Agencies
Most of the policy are being decided by
government agencies or bureaucracies.
This is contrary conventional logic.
They are experts in certain policy area.
Legislators are laymen.
Some proposals are intended to remedy
previous policy decision
Process information. This information forms
the basis of law.
 Executive
Has become the most important policy
initiator.
In America, the executive is the chief initiator
of laws. Separation of power.
Presidential Commissions, Task forces and
interagency committees etc.
Cabinet system of Government, executive can
control the legislature.
 Two Important Models
1. Rational Comprehensive Model
2. Incremental Model
 Rational Comprehensive Model
It is based on an assumption.
Individual decision makers arrive at decision
on the basis of rational calculation of cost and
benefits.
 Components
A given problem can be separated from the
rest of the problem.
The values, goals and objectives that guide the
decision maker have to be clarified,
They have to be ranked according to their
importance.
A complete list of alternatives has to be made.
 Each alternative and its attendant
consequences have to be calculated.
Finally, the best option that maximizes the
goals, value and objectives have to be chosen.
 Criticism
Public problems can not be separated from
others. They are interwoven.
Complete information is not available. Hence,
complete accuracy is not a achievable target.
Human are not always rational.
Problem of Sunk Cost.