Economic Policy Analysis
Objectives:
To have an understanding of the application of economic theory and empirical methods to issues
in current economic policy analysis
To have had the experience of analysing a complex and unfamiliar issue, drawing on their
knowledge of economic theory and methods, and on a range of relevant research and policy papers,
without being able to rely on comprehensive textbook treatments
To be able to write cogent and well-argued analyses of a number of aspects of the issues they have
studied, making appropriate use of both theory and empirical evidence
To be able to cooperate with other class members to produce a coherent team-presentation
Modes of policy monitoring and policy communication
Understanding policy and the political economy context: This is the context in which we are
working – the sector, the country or region, the policy issue, the general problem. When trying to
understand policy processes we need to understand better the particular dynamics and factors that
affect policy in its context. The different frameworks show different ways in which policy is
formed and changed through both formal and informal processes, and they explore the range of
actors and interests that drive policy. We can draw on these frameworks to understand our context
and to analyse how change occurs, how we can act in this context and how we can understand our
results.
Understanding advocacy tactics: The sphere of control represents the decisions and results that
we have direct control over – our strategy, tactics, inputs, activities, outputs. When considering
how to engage in our sphere of concern we need to adopt a more nuanced understanding of when
we use different tactics for engaging with, informing and attempting to influence policy in a given
context. Certain frameworks help us examine and unpack a range of tactics and policy-influencing
activities and the logic that underlies them. We can draw on these frameworks as we design our
interventions and use them to track the progress of our activities and the quality of our outputs.
Understanding levels of influence: the sphere of influence is the intersection between the sphere
of control and the sphere of concern. The sphere of influence represents all the different effects
that our actions can have that are beyond our control – from merely raising awareness on an issue
to affecting policy language or steering implementation. Certain frameworks provide a more
sophisticated understanding of the different types of effects that different types of interventions
have on policy-making and intermediate outcomes. We can draw on these frameworks to explore
the relationship between planned tactics and the extent to which they can influence policy, and
then design outcomes accordingly.
Adopting processes for critical review and quality assessment to ensure that users of
monitoring and evaluation data can readily assess the relevance of information to different issue
areas; soundness of underlying program; validity or applicability of lessons learned; accessibility
of data and reference materials.
Increasing the use of pilot approaches to increase the validity and credibility of knowledge from
monitoring and evaluation. Pilot projects (to test the effectiveness of a program or policy) usually
involve a higher standard of monitoring and evaluation, including baseline measurement, periodic
assessment and the use of control or comparison groups.
Strengthening platforms for the organization, presentation and communication of
knowledge, including monitoring and evaluation data. There are opportunities to integrate
qualitative data with other information sources and to promote analysis of datasets and evaluation
findings
Developing capacity for knowledge impact evaluation to increase understanding of the
effectiveness of a knowledge translation strategy, and the impact of knowledge use both within
and outside of an organization
Evidence-based policy: uses the best available evidence to help planners make better-informed
decisions. Evidence may include information from integrated monitoring and evaluation systems,
academic research, historical experience and 'good practice' information. It is recognized that not
all sources of evidence are sound to inform policy making.
Opinion-based policy: relies heavily on the selective use of research evidence or the views of
individuals or groups based on particular ideological viewpoints, values, etc.
Evidence-influenced policy: recognizes that policy making is an inherently political process, and
that decision-makers may not be able to translate evidence into policy options according to quality
standards due to constraints.
Changing policy and/or changing behaviour: some advocacy is aimed at changing policy or
preventing change to policy; other approaches are about changing the behaviour of the general
public (e.g. public health campaigning).
Direct and/or indirect: advocacy can aim at changing decision makers’ beliefs, opinions,
behaviour and policies, either directly or indirectly via other actors who might have influence on
decision makers (e.g. the media, voters)
Inside track and/or outside track: advocacy from within by working with decision-makers or
from outside by confronting, exposing or challenging decision-makers.
Formal and/or informal: advocacy can work through formal/official channels such as policy
reforms, but sometimes advocacy finds alternative ways through informal routes such as
relationship-building.
References
Walter Plosila, "State Science- and Technology-Based Economic Development Policy: History,
Trends and Developments, and Future Directions," Economic Development Quarterly, Vol. 18,
No. 2, May 2004, pp. 113-126
