MODELS OF PUBLIC POLICY

Submitted By: Rachit Kumar

Roll No.: 21928 (C.I.C)

A model is a simplified representation of some aspect of real world. Unlike visualized

models, theoretical approaches to public policy are conceptual models to understand and
analyze policymaking and its related components. It consists words, diagrams, linkages,
and hypothesis which helps to simplify complex policy making process. They attempt to
answer how policies are made, who and which factors decide the policy. These
theoretical models help in systematic study of policy making process, clarifies and
organize our thought process about politics and public policy, and explain and analyze
policymaking in different political systems and contexts. These are lenses for deep
understanding of different aspects of policymaking. These approaches to public policy
are Political System theory, Group or Pluralist theory, Elite theory, Rational Choice
theory, Institutionalism, Incremental model, and Game theory.

Political System Theory: According to political system theory, policy is the output of
the existing political system i.e. inter-related government institutions, political activities
and process which provides arena for the ‘political’. There are two inputs to the system.
First is demand which are claims for the actions that people make to satisfy their interests
and values and second input is support means political obligation (consent, obey law, pay
taxes, etc.). Based on these inputs, government brings policies as an output to meet the
expectation of its citizens and solve their problem. This theory presents a macro picture
of interaction between the socio-economic environment and political system. It can be
applied to different countries, societies, and contexts. Besides this, it is a highly general
and abstract model which does not reveal policy process.
Group Theory: Group theory explains public policy as an outcome of bargaining,
contestation, and compromise of groups having different interests and preferences. In this
theory, policy represent balance or equilibrium achieved in this group struggle. It is also
known as pluralist theory because of existence of multiple contending group having equal
chance of dominance at a point of time in collective decision making. Organisation of
interest groups, resource mobilization, access to policy makers, coalition making, etc.
play an important role in this model. Although policy may reflect interests of dominant
group in a particular political arena at a particular time, but policy may be changed in the
favour of interest of winning groups. For instance, in the contestation of farmers and
fertilizer industries, fertilizer industries are a dominant group but still farmers get
subsidies on fertilizers. This model closely reflects the political realities and it can
explain policy making in different political set up and contexts. However, this policy is
not applicable in new democracies with non-pluralist system where varied interest groups
have not set up. Along with this, this model ignores the interests of poor, marginalized
people and diffused interests and undermines individual agency.

Elite Theory: Unlike group theory, elite theory assumes that public policy reflects the
values and preferences of governing class. These ruling elites are the selected group of
highly influential people- political leaders, business leaders, legends, top experts,
bureaucrats- having similar values and preferences and whose preferences prevails in
collective decisions. Public policies are not response to demands of masses but
arrangements to carry out preferences of elites by public officials and agencies. In this
model, changes in policy are seen incremental rather than revolutionary. The motives of
elites are self-serving, enlightened self-interest, or sometimes altruist, reformist, public
regarding. It focuses on role of leadership and explains well policy making in new
democracies with weak institutional set up. It excludes the masses from public policy and
neglect ideas, institution, group interests, etc.

Rational Choice Theory: Rational choice theory is the most systematic theory applied in
economic principles of decision making and in collective political decision making. The
basic premise of this model is all actors in policy making behave rationally and their
rational behavior aims to maximize their interest and preferences. This theory
understands that individual’s preferences and values are more important than collective
interests. It formulates policies with a rationalist approach. Initially, policy makers try to
have a deep understanding of the problem and then analyze all the best possible policy
alternatives by calculating cost benefits and losses. Finally, the alternative policy which
has the largest net benefit of cost is selected. It assumes perfect knowledge of problem,
all policy alternatives, costs, and benefits of all alternatives. It provides theoretical and
mathematical bases to policy making and it is intuitively most logical and systematic. It
provides standard against which real non-rational policy decisions may be compared. Its
demerits are- it has rigid and narrow assumptions, it undermines structure and context,
collective values, preferences, and altruism in collective decision making.

Incremental Theory: Incremental theory believes that there are small changes in public
policy or adjustments in past policies. Policy evolves gradually, it never changes as a
revolution. Reasons for this are- unlike rational theory, policy makers have imperfect
information or bounded rationality, vaguely defined problems, less time and capacity,
political expediency, etc. Rather than formulating new policies, they make minor changes
in past policies because these policies denotes consensus and legitimacy, and these are
less risky to continue. Vested interests also preclude radical changes because they have
already made huge investments. Examples of such policies are MNREGA, Aadhar, DBT
and General Budget. As a merit, it suits more for diverse society and fragmented politics.
It is less conflicting, stable, and preserve the political system. On the other hand, it is less
innovative and attractive and gives preference to vested interest and political compulsion.

Game Theory: The game theory is an abstract and deductive model of policy making. It
is a form of rationalism applied in competitive situations where the outcome depends on
what two or more participants do in a conflict situation. The game theory is the study of
rational decisions in situations in which two or more participants have choices to make
and the outcome depends on the choices each of them makes. The theory is put into
application in policy making situations where there is no independently best choice which
one can make and where moreover the best outcome depends on what others do in the
conflict situation, All participants try to maximize their gains and minimize their losses.
It is applicable to competitive problem or conflict situations. It can be applied to
decisions about war and peace, diplomacy bargaining or coalition formation in
Parliament or the United Nations.

Institutionalism: Institutional approach is concerned with explaining how social groups

and governmental institutions bring influence on those entitled to take and implement
legally binding decisions. Such decision makers include those who hold office within the
formal and constitutional system of the governmental structures and institutions.
Institutionalism attempts to study the relationship between public policy and government
institutions. It focuses on the structural and legal aspects of institutions and can be
applied to policy analysis. The structures and institutions, and their arrangements can
have a significant impact on public policy. It focuses on the cognitive and normative
consequences of institutions than on their rational-individual- constraining designs and
inventive structures. This approach analyzes the impact of institutional arrangement on
policy.