SHDH3015 GOVERNMENT AND

PUBLIC ADMINISTRATION

Lecture 7:
Policy problems and instruments
 LECTURE OUTLINE

• Process of policy analysis

• Problem identification and framing
• Policy instrument as intervention strategy
• How to classify policy instruments?
• A basic scheme
• Factors shaping government’s choice

2
 INTENDED LEARNING
OUTCOMES

• In finishing this lecture, you will know

• How to identify and frame a policy problem
• How to classify policy instruments
• What are the considerations for government’s policy choice

3
PROCESS OF POLICY ANALYSIS

4
 PROBLEM IDENTIFICATION
AND FRAMING

• What will be identified as a policy problem?

• Why some issues become problematic while others are not?
▪ Not all harmful conditions are recognized as policy problems
▪ It is beyond common sense comparison

5
 PROBLEM IDENTIFICATION
AND FRAMING

• What is policy problem?

• A harmful condition identified by a significant number of people and recognized politically
as needing improvement

6
 PROBLEM IDENTIFICATION
AND FRAMING

• Three elements of an identified policy problem:

• The extent of harm
• A situation
• Identification and political recognition
• Not a private problem, it should be recognized by significant number of people
(public support; involve public interest; focusing events)
• People like opinion leaders, politicians and idea brokers (professors and experts)
are important in identifying a policy problem
• Need for improvement
• A problem reflects hope for future (government is willing or can make
interference)
• It is a “progressive” perspective

7
 PROBLEM IDENTIFICATION
AND FRAMING

• What is problem framing?

• An issue has many angles for study  has many definitions of problem
• More information and resources, more definitions of problem
• Attempt to frame a problem in concrete terms
• To develop a statement that gives a firm understanding of the problem’s
technical and political dimensions

8
 PROBLEM IDENTIFICATION
AND FRAMING

• Problem framing is related to values (i.e. what is acceptable, what is not?)

• Don’t accept the initial problem statement without question, it always not the real
problem
• Problem will change from time to time
• Re-define problem is crucial to policy analysis

9
 PROBLEM IDENTIFICATION
AND FRAMING

• Why problem framing is essential to policy analysis?

• It affects how people analyzes and communicates about policy options
• E.g. unemployment
• Economic problem: policy option is to develop economy
• Training problem: government have to provide some re-training
opportunities

10
 PROBLEM IDENTIFICATION
AND FRAMING

• Attributes of problem framings that will help or hinder balanced analysis

and effective communication of the whole analysis process
• Policy problem is socially constructed, different framings of an issue reflect
different people’s views in various social structures

11
 PROBLEM IDENTIFICATION
AND FRAMING

• Does politics matter in problem framing?

• Political issue as an integral part of policy process
• Recognition and consideration of decision makers’ values is essential to
successful planning and analysis
• The political objective should be taken in account
• To increase the stakes of the significant public groups in the problem, in order
to make the problem framed recognized by the public

12
 POLICY INSTRUMENT AS
INTERVENTION STRATEGY

• When considering alternatives to solve a defined policy problem, we should

think in terms of “intervention strategies”
• Public policies seek to change human / social behaviour, hence, we must ask:
• What is the behaviour we want to change?
• What motivates people to act like this?
• How can we intervene to change their behaviour?
• Employment (Amendment) Bill 2018
• https://www.legco.gov.hk/yr17-18/english/bc/bc53/general/bc53.htm

13
 POLICY INSTRUMENT AS
INTERVENTION STRATEGY

• The choosing of policy instrument, in fact, is the

decision on the nature of policy instrument
• Knowledge of the nature of different types of policy
instrument is critical to policy decision

14
 HOW TO CLASSIFY POLICY
INSTRUMENTS?

• Charles W. Anderson: choice approach

• Classified according to the degree of coercion exercised by
government
• The continuum from freedom to control
• Four categories:
• Market mechanisms
• Structured options
• Biased options
• Regulation

15
 HOW TO CLASSIFY POLICY
INSTRUMENTS?

Categories Market Structured Biased Regulation

mechanisms options options

Details Outcomes Create Give Directly control

depend on government incentives to with coercive
individuals’ program the users powers of
decisions government
Let the
No interference individual to
or direction decide
from the
government

16
 HOW TO CLASSIFY POLICY
INSTRUMENTS?

Labeling Non- Establish Products Genetically-

system for intervention labeling applied modified foods
genetically- system, labeling without label
modified foods producers system will be will be banned
can apply it given tax
voluntarily credit

Modified choice
approach

Nonintervention Intervention

Market Civil Structured Biased

Household Regulation
mechanisms society options options
17
 HOW TO CLASSIFY POLICY
INSTRUMENTS?

• The Etzioni Threefold Classification

• Tools are classified according to three kinds of power
• Coercive
• Remunerative
• Normative

Coercive Remunerative Normative

(force) (incentive and (Persuasion,
reward) indoctrination)
Example: laws that Example: salaries, Example:
come with physical grants, subsidies, tax propaganda, public
sanctions like concessions, material education campaigns
imprisonment services

18
 A BASIC SCHEME

• Modified from Etzioni Threefold Classification

• Government intervention is justified, no inaction
• The three categories are mutually exclusive and
exhaustive of the domain of discourse

19
 A BASIC SCHEME

Regulations Economic Information

(Sticks) means (Sermons)
(Carrots)
Force us Pay us or have Persuade us
us pay
Coercion The use of Intellectual
remuneration and moral
or deprivation appeals
of material
resources
20
 A BASIC SCHEME

• Regulations
• Undertaken by governmental units
• Rules and directives
• Mandate receivers to act in accordance with what is ordered
in these rules and directives
• Often associated with threats of negative sanctions
• Varieties of regulation

21
 A BASIC SCHEME

Prohibitions

Unconditional
Conditional
(Absolute)

With permissions
(concessions,
With obligation
With exemptions permits,
to notify
licenses,
authorizations)
22
 A BASIC SCHEME

• Economic policy instruments

• The handing out or the taking away of material resources in cash or in kind
• Cheaper or more expensive to pursue certain actions  incentive or
disincentive
• Tax is different from cash punishment
• Different types of economic instruments
• In cash (e.g. grant / voucher) or in kind (e.g. textbook)
• Incentive (e.g. grant) or negative incentive (e.g. levy)

23
 A BASIC SCHEME

• Information
• Influence people through the transfer of knowledge, the
communication of reasoned argument, and persuasion
• http://www.youtube.com/watch?v=3Ww1gVA-l0U
• https://www.youtube.com/watch?v=dl3dc-IyhQY
• Providing facts as well as government judgments of particular issue
• Forms of information
• Mediated transmission
• Interpersonal transmission

24
 A BASIC SCHEME

• Is there a forth kind?

• Organization can be a basic resource
• Direct provision as a fourth type of instrument
• E.g. infrastructure or other public goods

25
 A BASIC SCHEME

• Analysis of the four

Strengths Weaknesses

Regulations High impact: compel, Costly enforcement

prohibit and punish Resistance

Economic means Leave a choice for the Heavy drain on

receivers resources (giving
out incentive)
Information Cheap to deliver Misunderstood or
Generate commitment ignored
Direct provision Direct service and Organization is
goods costly
26
 A BASIC SCHEME

• Governing capacity involved

Governing Capacity Type of Instrument

Coercion Regulation (Sticks)
Taxing and Spending Money (Carrots)
Organization (large in Direct provision (Mass
scale and scope) Treatment)
Legitimacy Information,
persuasion (sermons)
27
 A BASIC SCHEME

• The role of Government

High State Compulsory Regulation

Involvement Instruments Public enterprise
Direct provision
Medium State Mixed Self-regulation
Involvement Instruments Contracting out
Subsidies
Low State Voluntary Market
Involvement Instruments Charities
Family
28
 FACTORS SHAPING
GOVERNMENT’S CHOICE

• Five “i”s: Factors shaping government’s choice

• Interests: individual or collective interests
• Political actors try to utilize the political process to achieve their own ends
• Interest to target group  mobilize political support
• Seek political coalition
• Ideas: ideas as well as ideologies
• Liberal / conservative
• Freedom / equality

29
 FACTORS SHAPING
GOVERNMENT’S CHOICE

• Individuals: personal character or leadership of policy entrepreneur

• Press or resist of particular forms of policy intervention
• Institutions: ban / preference of particular choice
• Constitutional / Conventional / Organizational
• Learn from experience
• The character of institution
• International environment: international trends
• E.g. Neo-liberal reform (revolution) in 1980s
• E.g. World Bank and IMF policy

30
 FACTORS SHAPING
GOVERNMENT’S CHOICE

• Government considerations in making choice

• Visibility
• Cost invisible or cost visible
• Benefit to all: make it visible
• Benefit to specific group: make it invisible
• Directness
• The extent to which tools operate directly on their intended targets
• Direct instrument  linkage between government and public 
legitimacy
• Indirect instrument  leave room for individual choice  freedom

31
 FACTORS SHAPING
GOVERNMENT’S CHOICE

• Automaticity
• Whether administrative arrangement and new resources should be invested
or not
• More automatic programs
• Save on administrative costs
• Less visible of cost
• Hiding a program from scrutiny
• Less automatic program
• Offer opportunity to build political coalition

32