Thursday, May 7, 2009

Tool Kits for Policy Formulation

The theoretical tool kits for policy formulation process is based on the following key steps, although many governments do not follow them, and there are reasons for that:

step1: Look at reality, and identify issues

step 2: Define the policy objectives

step 3: Choose the right instruments (typically one for each objective)

step 4: Establish appropriate institutions

step 5: Overcome political opposition to policy reforn

step 6: Monitor and evaluate

But now why many governments do not follow the tool kit why formulating economic policies ?

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