Unit 4 Policy Making Theories-Models

UNIT 4
Policy Making Theories/Models/Approaches and

Their Implications
Unit Learning Outcomes
Up on completion of this unit, we are expected to:
Distinguish the different public policy theories; and
Articulate & explain their implications to national
development endeavors and citizens’ interests

Class Discussion Questions
o What does concept, theory, paradigm and model mean?
o What is their importance in studying public policy?

Introduction
1) Concept
 is abstract idea (frequently controversial) that serves as a thinking
tool to illustrate specific attributes of intangible phenomena.
2) Model
 Representation of more complex reality that has been
oversimplified to describe and explain the relationships.
 Prescribe how something happen and built around specific concepts.
4
Introduction Cont..
 Simplified representation of some aspect of the real world. It can be:
 Physical,
 Diagram,
 Flow chart or
 Conceptual/theoretical
3) Theory
 is belief, prescription, or procedure proposed or followed as the
basis of action
 Coherent group of tested propositions, commonly regarded as
correct, that can be used as principles of explanation and

prediction
Introduction Cont..
 comprehensive, systematic, consistent and reliable explanation
and prediction of relationships among variables.

 Theories are assessed in terms of their predictive validity, but
models are assessed in their utility in accurately reflecting reality.
4) Paradigm
 Collection/pattern of commonly held assumptions, concepts,
models and theories constituting of intellectual framework or

approach to scientific activities (e.g. ideologies like neo
-liberalism, Developmentalism, etc).
6
Benefits of Public Policy Theories and/or Models
 Simplify and clarify our thinking about politics and
Public policy
 Identify important aspects of policy problems
 Direct our effort to understand public policy
 Suggest explanations for public policy and predicts its
consequences
Policy theories/models are outcome of needs for
analyzing policy making processes and Public policy.
Benefits of Public Policy theories Cont…
 Generally theoretical constructs offer insight into the dynamics of public
policy by attempting to describe, explain and predict three of its

important dimensions (Coning and Cloete, 2006)
I. Questions about public policy processes in society
II. Questions about which policy processes normally exist and how they
occur
III. Questions about whose interests are best catered for in specific policy
process, i.e. who benefits most from particular policy (who is

involved ?)
 Hence, Political scientists and scholars in the field of Public policy have
developed and used several theories or models or approaches

Main Policy Theories/Models/ Approaches
1. Institutional theory (Institutionalism)
2. Political systems theory
3. Elite theory (Elitist model)
4. Group theory (pluralist model)
5. Rational-choice theory (rationalist model)
6. Incremental theory (Incrementalist model)
7. Public choice theory
8. Policy process model: Policy as a political activity
9. Game theory: Policy as rational choice in competitive situations

(Anderson 2006; Dye 2005; Kraft and Furlong 2004).
Main Policy Theories Cont…
1. Institutionalism: Policy as institutional output
 Institution is set of regularized patterns of human behavior that persist
over time and perform some social function or activity.
 describes formal and legal aspects of governmental institutions: their
formal structure, legal powers, procedural rules, and functions.
 Studying government institutions or organizations is oldest
concerns of political science. They have been central focus of
political activities.
 Most political activities generally center on government
institutions, and are venues for inspiring public policies.
 Public policies are authoritatively determined, implemented, and
enforced by government institutions.
 A policy cannot become a public policy until it is adopted,
implemented, and enforced by some government institutions.
 Hence, Public policy is the result of the interaction of
Government institution.
 Hence, it is argued that the relationship between public policy
and government institutions is much closer.

 Government institutions give public policy three distinctive
characteristics:
1. Government lends legitimacy to policies

o Public policies are generally regarded as legal obligations that
demand the loyalty or compliance of citizens.

o Policies of other groups (e.g. private organizations, professional
associations, church, mosques, etc) cannot be as binding as that of

public policies.
 Only government policies impose legal obligations.
2. Government policies involve universality.
 It is only government policies that are extended to

all people in a society (e.g. education, healthcare,
social welfare, etc).
 Policies of other groups or organizations reach only

a part/segment of the society.
3.Government monopolizes coercion in society.
 It is only government that can legitimately imprison
violators of its policies.
Sanctions that can be imposed by other groups or

organizations in society are limited.
 This ability of government gives it the command that

induces the loyalty of all its citizens to enforce its policies.
Its legitimate use of force encourages individuals and

groups to work for the enforcement of their preferences into
policy.
 Institutionalism revolves around governmental

institutions such as legislatures, executives,
Judiciary-courts and political parties.
 Institutional theory is a reminder that certain

aspects of government structure can either
empower or obstruct/hinder certain policy or
political interest.
Summary Question:
1. What strengths and weaknesses can you notice
from the Institutional theory in relation to the
positive and negative impact that the government
institutions could have on public policies?

Implications of Institutionalism
+ Emphasis on the formal or structural aspects of institutions can
be usefully employed in policy analysis.
+ Regularized patterns of behavior, which we often call rules or

structures, can affect decision-making and content of public policy.
+ Institutional theory is a reminder that certain aspects of

government structure can either empower or obstruct certain policy.
 Only partial explanation of policy. It has little to say about what
drives the policy process.

 Focus on the normative aspects irrespective of what actually
17
governments do
2. Political Systems Theory (input-output)
 Public policy is viewed as a political system’s response to the
demands arising from its environment.
 Political systems comprise of identifiable and interrelated
institutions and activities-governmental institutions and
political processes, in a society that make authoritative
allocation of values (decisions) that are binding on society.
 Policy environment (context): consists of all phenomena like
social, economical, biological setting which is external to the
boundaries of the political system
Inputs into the political system from the environment
consist of demands, support and resource.
Demands are the claims for action that individuals and
groups make to satisfy their interest and values.
 Support is rendered when groups and individuals abide by
election results, pay taxes, obey laws, and otherwise accept
the decisions and actions undertaken by the political system
in response to their demands.
The amount of support to the political system indicates the
extent to which it is regarded as legitimate, or as
authoritative and binding on its citizens (Anderson, 2006).
o Outputs of the political system include: laws,
rules, decisions, and the like, which are:
Regarded as authoritative allocations of values,
they constitute public policy.
Policy output in turn may produce new demands

which lead to further outputs, and so on in a never-
ending flow of public policy.
A Model of the political system (Anderson 2006,19)

The Environment
INPUTS Outputs
Demands Actions
Political
Support System Decisions

Feedback
The environment
A Model of the political system (Anderson 2006,19)

The Environment
INPUTS Outputs
Demands Actions
Political
Support System Decisions

Feedback
The environment
political systems theory emphasizes the larger social,
economic and cultural contexts/environments in which
political decisions and policy choices are made (Kraft and
Furlong 2004).
It seems to function in an almost biological model of

politics suggesting that governments and public officials
react to the political climate much as organisms respond
to environmental stimuli (Ibid).
Implication of Political Systems theory
Limited by its highly general and abstract nature.
 It does not say much about the procedures and processes by which
decisions are made and policy is developed within the “Black Box”
called political system.
Government as simply responding to demands made upon it
It also alerts us to some important facets of the political

process
 How do inputs from the environment affect the content of
public policy and the operation of the political system?
 How in turn does public policy affect the environment and
subsequent demands for policy action?
 How well is the political system able to convert demands
into public policy and preserve itself over time?
Reflection
 Compare Institutionalism with Political systems
 Explain the relevance of these theories to policy

making process in Ethiopia
25
3. Elite theory (Elitist model)
o Public policy can be viewed as the preferences and values of the
governing elites.
o The popular assumption that public policy reflects the demands
of all or in full congruence with “the people” may sometimes be
questioned or even may remain a myth/ideal, rather than real.
o Elite theory mainly emphasizes the values and preferences of the
governing elites which substantially differ from that of the public
at large.
o It affects the development of public policy in favor of the elites.

The elite theory can be summarized as follows:
a. Only a small number of persons allocate values for
society: the masses do not decide public policy
b. Elites are drawn disproportionately from the upper

socioeconomic strata of society
c. Movement of non-elites to elite position must be slow

and continuous to maintain stability and avoid
revolution.
d. Only the non-elites who have accepted the basic elite

consensus (principles) can be admitted to governing
circles.
e. Elites share consensus on behalf of the basic values
of the social system and its preservation. For
example, the basis for elite consensus in the USA is the
limited government, and individual liberty
f. In this theory, public policy does not reflect the
demands of masses but rather the prevailing values of
the elites.
g. Changes in PP is incremental rather than
revolutionary.
h. Elites influence masses more than the masses do

on the elites (Dye 2005, 22).
Policies formulated in such circumstances serve the
material needs of narrow elite, while the benefits
remaining to the public is largely symbolic
In such situations, public policy making almost always
involve highly value-laden symbols such as freedom,
privacy, justice, equality, and morality, which are easily
manipulable (“user-friendly”) by the elites to their own
advantage.
Only non-elites who have accepted the basic elite
consensus (principles) can be admitted to governing
circles
Elites may act out of narrow self-serving motives
THE ELITE MODEL, Dye (2005, 22)
POLICY DIRECTION
Elites
Officials and
Administrators
Execute Policy
Receive Decision
MASS
Implications of elite theory for policy analysis, in particular are:
1. Elitism implies that public policy does not reflect the

demands of the people, but interests, values, and
preferences of elites.
2. Change and innovation in public policy as a result of

redefinitions by elites of their values and interests. And
are frequently modified but seldom replaced
3. The tendency is to preserve the system in operation or in

existence; it insists that whatever change is thought will
be incremental rather than revolutionary/radical
4. Changes in the system occur only when events threaten
it and when elites act on the basis of enlightened self-
interests to preserve the system and their position.
5. Elitism regards that the responsibility of mass welfare

rests on the shoulders of elites, not on the masses.
6. It sees the masses as largely passive, apathetic/with no

interest, and ill-informed.
7. It is difficult to prove, and difficult to identify who are
the ruling few
8. Elite theory focuses our attention on the role of
leadership in policy formation and in reality of any
political system few governs the many
4. Group theory (pluralist model)
o Policy as group Equilibrium
o Power is widely shared among interest groups, each of which seeks
access to the policy making process.
o A group is collection of individuals that may, on the basis of shared

attitudes or interests, make claims upon other groups in society.
o It becomes political interest group “when it makes claim upon

any of the institutions of government.” i.e.
individuals with common interests come together to press or
push their demands on government.
o Group exercises a countervailing power
against others (e.g. labor unions vs other
manufacturing firms groups; teachers
associations vs professional associations, etc.).
o The balance helps to avoid dominance of any

group due to their access to resources, recognition,
to policy makers and being prestigious and
influential than others.
Main tenets of the theory includes:
Interaction among groups is the basis of politics,
i.e. interaction and struggle among groups are

the central facts of political life.
 Public policy is the product of group struggle,
while politics is the struggle among groups to

influence policy, so public policy at any given
time will reflect the interests of those who are
The individual is significant in politics only as a
participant in or a representative of groups.

It is through groups that individuals seek to secure
their political preferences.

A central concept in group theory is that of access.
To have influence and to be able to help shape
governmental decisions, a group must have access, or the

opportunity to express its viewpoints to decision-
makers.
Access may result from the group’s being

organized including size, from its having status,
good leadership, or resources such as money for
campaign contributions.
As groups gain and lose power and influence,
public policy will be altered in favor of interests

of those gaining influence against interests of those
losing .
The role of government in group theory
Government (“Official Group”) acts as passive participant
‘The legislature’ referees the group struggle, ratifies the
victories of the successful coalitions, and records the terms of
the surrenders, compromises, and conquests in the form of
statutes’.
Every statute tends to represent compromises because the
process of accommodating conflicts of group interests.

The legislative vote on any issue tends to represent the
composition of strength.
Administrative agencies of the regulatory kind are
established to carry out the terms of the treaties that the
legislators have negotiated and ratified….
The judiciary, like the civilian bureaucracy, is one of the
instrumentalities for ‘the administration of the agreed rules’

To sum up the task of the political system is to manage group conflicts by:
A. establishing rules of the game;
B. arranging compromises & balancing interests
C. enacting compromises in the form of public policy; and
D. enforcing the compromises.
Group theorists believe that public policy is equilibrium reached in the
group struggle.
The equilibrium is determined by the relative influence of any interest
groups
The influence of groups depends on their numbers, organization strength,
access to decision makers, resource, and internal cohesion.

Summary Question:
What strengths and limitations of Group theory

can you suggest?
 Group theory focuses on one of the major dynamic
elements in policy formation, especially in pluralist

societies
 It is argued, the poor and the disadvantaged are either not
represented or poorly represented. As a result, policy critics say

that the group “sings with a strong upper-class accent”
(Schattschneider 1960,35).
 This implies that those who are not represented will have little
voice in policy making process and their interests are put aside.
 This theory tends to exaggerate the role and influence of
organized interest groups in the policy making process but

underestimates the role of the law making body’s discretion in
making policy choices.
 Finally, from a methodological perspective, it is misleading
and inefficient to try to explain politics and policy making

solely in terms of interests and the group struggle. This
bias leads to neglect of many other factors, such as ideas and
institutions, which abound and which independently affect the
development of policy.
 Compare Elite Theory with Group theory
 Explain practice of policy making process in
Ethiopia in line with these theories

5. Rational-choice theory: policy as a maximum
social gain
 Rationalist policy model (also known as public choice

theory) strives to achieve maximum social gain.
It argues governments should choose policies that can

result in gains to society that exceed costs with greatest
amount.
The rational theory heavily draws much of its tenets

from economics (especially from microeconomic theory)
and often uses elaborate mathematical modeling.
The rational theory principle holds two implications:
a. no policy should be adopted if its costs exceed its
benefits
b. among policy alternatives, decision makers should
choose policy that produces the greatest benefit over
cost.
 Thus, a policy is rational only when the difference
between the values it achieves and the values it
sacrifices is positive and greater than any other
policy alternatives.
A rational policy is one that achieves maximum social gain
To the view of rationalist theoreticians, to select a

rational policy, policy makers must:
1. know all society’s value preferences and their

relative weights;
2. know all the policy alternatives available
3. know all the consequences of each policy alternative;
4. calculate ratio of benefits to costs for each policy
alternative; and
5. select the most efficient policy alternative (Dye p.
15).
Summary Questions:
What would be the quality of a policy when its

formulated and implemented based Rational
theory/model?
 What are the shortcomings/limitation of the rational

model?
The rational theory assumes:
Value preferences of all society are known
 Enough information is collected about all alternatives
Calculation of all social, political, and economic values,
consequences, and sacrifices. However:
This model faces barriers/restrictions
 Large investment on existing policies (Sunk cost)-
prevents from reconsidering
 Administrative man: who satisfies with few examination
of alternatives; failure to search all
 Policy makers face with “bounded rationality”: due to
limited info., knowledge, resource, external pressure, etc
 Situational opportunism including lies, stealing, cheating, are
apparent cases
 Organizational goals are often not clear, and prioritization is
difficult
 Examination of all alternatives is not possible
 Projection of all consequences, cost, benefit is impossible
 Impossible to collect all info. (information asymmetry), and to
have complete list of policy options
 The process is time consuming and expensive
Characterized by rigid and narrow assumptions; mathematical

equations; abstractions and remoteness from reality
So, Rational model is ideal not realistic/is ideal

6. Incremental/Incrementalism Theory: policy as
variations on the past
o Incrementalism views public policy as a continuation of
the past activities with only incremental modifications.

o There are some plausible/rational reasons why incremental
policy operates in an established system.

 Constraints of time, information, and cost prevent
policy makers from identifying the full range of policy

alternatives and their consequences.
 Constraints of politics also prevent the establishment of

clear-cut societal goals and the accurate calculation of
costs and benefits.
The model recognizes the impractical nature of

(rational-comprehensive) policy making, and describes
a more conservative process of decision making”.
 Incrementalism is said to be conservative in the sense
that existing programs, policies, and expenditures are
considered as a base, and attention is concentrated on
increases, decreases, or modifications.
 Policy makers generally accept the legitimacy of
established programs and tacitly agree to continue.
Incrementalism is politically expedient, where
agreement comes easier in policy making.

Disputes over resource are only a matter of increase or
decrease in budget.
Conflicts is usually heightened when decision making
focuses on major policy shifts that involve great gains or
loss, or “all-or- nothing”, or “yes-or-no” policy decision.
Why Policy Incrementalism?
 Legislators/policy makers do not have time,
information, or money to investigate all alternatives; cost
of doing this is too great.
Policy makers accept legitimacy of previous policies
because of the uncertainty about the consequences of

completely new policies.
There may be heavy investments (e.g. in money,
buildings, psychological dispositions, etc.) in existing
program.
 It is accepted as wisdom that organizations tend to persist
over time
Individuals develop personal stake in the continuation of
organizations and practices
Constraints of politics also prevent the establishment of
clear- cut societal goals and the accurate calculation of

costs and benefits, all of which make radical change
very difficult.
Limitation of incremental model
 It is widely accepted that incrementalism describes the reality
of the policy making process, but it has its own disadvantages

or weakness,
I. Important policy options being overlooked
II. Discourages social innovation and is partisan in approach,
which in reality means the interests of the most powerful get

maximum attention by policy makers.
III. It cannot be applied to fundamental decisions such as

declaration of war,
An example of incremental policy trend

2001 2002 2003 2004 2005 2006

Implication
Policy makers usually tend to recommend the
incremental model.
People are also said to be pragmatic; they seldom search for
the “one best way” but instead end their search when they
find “a way that will work” (Dye ,2005).
In the absence of any agreed-on societal goals or values, it is
easier for the government of a pluralist society to continue

existing programs.
Reflection
Compare and Contrast incrementalism and

rationale welfare -model?
 Explain the practice of policy -making in

Ethiopia in relation to these models
7. Public choice theory: Policy as collective decision making
by self-interested individuals
The theory/model is the outcome of the economic study of

nonmarket decision making, particularly the application of
economic analyses to public policy making and/or political
science.
In the traditional past, economists studied behavior in the
market place and assumed that individuals pursued the
private interest.
 Political science in its part studied behavior in the public

arena and assumed that individuals pursue their own notion
of the public interest.
Thus, separate versions of human motivation

developed in economics and political science:
a. the idea of homo economics assumed a self-
interested actor seeking to maximize personal
benefits; and
b. that of homo politicus assumed a public-spirited
actor seeking to maximize social welfare (Dye
2005).
This theory assumes that all political actors-voters,
taxpayers, candidates, legislator, bureaucrats, interest

groups, etc.-seek to maximize their personal benefits in
politics as well as in the marketplace.
 In short, people pursue their self-interest in both
politics and the marketplace, but even with selfish

motives they can mutually benefit through collective
decision making
 Dye (2005) further elaborates that government itself
arises from social contract among the individuals who
agree for their mutual benefits to obey laws and support
the government in exchange for protection of their lives,
liberties, and property.
It is argued that enlightened self-interest leads individuals to
a constitutional contract that helps to establish a
government to protect their interests
 Public choice theory recognizes that government must
perform certain functions that the market place is unable
to handle; it must remedy certain “market failures”.
Government must provide public goods- goods and
services that must be supplied to everyone if they are
supplied to anyone as the market is not able to provide since
their costs exceed their value to any single buyer.
 For using a common good, a single buyer cannot be in a

position to keep nonbuyers from using it.
National defense is the typical example, where protection

from foreign invasion is too expensive for a single person to
buy, and once it is provided no one can be excluded from its
benefits.
People must act collectively through government.
Externalities are another recognized market failure and

justification for government intervention.
An externality occurs when an activity of one individual,
firm, or local government imposes uncompensated costs on
others.
The most common examples are air and water pollution
which imposes costs on others.
Governments are expected to respond by either regulating
the activities that produce externalities or imposing penalties
(fines) on these activities to compensate for their costs to
society.
8. Process theory: Policy as political activity
Since World War II, modern “behavioral” political science
has studied activities of voters, interest groups, legislators,
presidents, bureaucrats, judges, and other political actors.
One of the main purposes has been to discover patterns of

their activities or “processes”.
As a result, political scientists have grouped various
activities according to their relationship with public policy:
policy processes. These are:
 Problem identification; agenda setting; policy
formulation; policy legitimating; policy implementation;
and policy evaluation
9. Game theory: Policy as rational choice in competitive
situations
Game theory is generally, the study of strategic
decision making.
This theory is emphasized in situations where two or more
rational participants have choices to make while the
outcome depends on the choices made by each side.
 Rational decision makers are involved in such choices
that are interdependent and each player must adjust their
conduct to reflect not only their own desires and abilities
but also their expectations about what others do.
In other words, each group has to calculate values of other
player (opponent) to maintain own objectives or interests.
Important in this theory is the notion of deterrence-effort to
prevent an opponent from undertaking an action by inspiring
fear of consequences of the action (game).
Deterrence prevents opponents (players) from undertaking a
particular action by creating in their minds fear of costly
retaliation/revenge while the success of it depends on the
credibility of the retaliatory threat and the rationality of the
opponent.
 Thus, rational opponents must weigh the potential costs
and benefits of their actions.
Such games are very important in policy making processes,
especially during the critical stage of achieving agenda status.
Reflective Questions
 Which of the theories reflect some of the policies in our country, and why?
 Is there an independent policy theory that functions exclusive of other theories?
 If someone argues as “our policies are by and large the products of elite theory”, how
can you explain your positions?
 How do you relate or differentiate rational policy theory with some of the
socioeconomic policies in our country?
 Which of the theories is the best in making a policy? Why?
 In Ethiopia, list the main institutions which provide policy legitimacy and why?
 Discuss the features of a best quality public policy?

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UNIT 4

Policy Making Theories/Models/Approaches and

Up on completion of this unit, we are expected to:

Distinguish the different public policy theories; and

Articulate & explain their implications to national

development endeavors and citizens’ interests

o What does concept, theory, paradigm and model mean?

o What is their importance in studying public policy?

 is abstract idea (frequently controversial) that serves as a thinking

tool to illustrate specific attributes of intangible phenomena.

 Representation of more complex reality that has been

oversimplified to describe and explain the relationships.

 Prescribe how something happen and built around specific concepts.

correct, that can be used as principles of explanation and

and prediction of relationships among variables.

models are assessed in their utility in accurately reflecting reality.

models and theories constituting of intellectual framework or

 Direct our effort to understand public policy

 Suggest explanations for public policy and predicts its

policy by attempting to describe, explain and predict three of its

I. Questions about public policy processes in society

process, i.e. who benefits most from particular policy (who is

developed and used several theories or models or approaches

2. Political systems theory

3. Elite theory (Elitist model)

4. Group theory (pluralist model)

5. Rational-choice theory (rationalist model)

6. Incremental theory (Incrementalist model)

7. Public choice theory

8. Policy process model: Policy as a political activity

9. Game theory: Policy as rational choice in competitive situations

 Institution is set of regularized patterns of human behavior that persist

over time and perform some social function or activity.

 describes formal and legal aspects of governmental institutions: their

formal structure, legal powers, procedural rules, and functions.

 Studying government institutions or organizations is oldest

concerns of political science. They have been central focus of

 Most political activities generally center on government

institutions, and are venues for inspiring public policies.

 Public policies are authoritatively determined, implemented, and

enforced by government institutions.

 A policy cannot become a public policy until it is adopted,

implemented, and enforced by some government institutions.

 Hence, Public policy is the result of the interaction of

and government institutions is much closer.

1. Government lends legitimacy to policies

demand the loyalty or compliance of citizens.

associations, church, mosques, etc) cannot be as binding as that of

 Only government policies impose legal obligations.

2. Government policies involve universality.

 It is only government policies that are extended to

 Policies of other groups or organizations reach only

Sanctions that can be imposed by other groups or

 This ability of government gives it the command that

Its legitimate use of force encourages individuals and

 Institutionalism revolves around governmental

 Institutional theory is a reminder that certain

1. What strengths and weaknesses can you notice

from the Institutional theory in relation to the