DIAC Session 2, November 18 2010 Policies and Programs

1. DIAC Session 2, November 18 2010 Policies and Programs Professor Adam Graycar

2. The role of government in market economies • Facilitating Role • Allocation Function • Distribution Function • Stabilisation Function adam.graycar@anu.edu.au

3. The role of government in market economies 2 • Facilitating Role • Ensuring conditions for competitive markets to operate • Providing the legal structure for contractual arrangements and exchanges • Allocation Function • Addressing market failures • Providing ‘public goods’ adam.graycar@anu.edu.au

4. The role of government in market economies • Distribution Function • Reflecting social values including acceptable distribution of income and wealth • Stabilisation Function • Policies for full employment, price stability and desirable economic growth • Reflecting the public, as distinct from a private, view of the value of the future adam.graycar@anu.edu.au

5. Role of government questions • Who should act - government, market, family etc? • Policy initiation or response? • Source of policy initiation or response adam.graycar@anu.edu.au

6. Role of government questions • Is this a function for government, the market, individuals or families, or charitable activity? • If a mixture, are the other players meeting their share (e.g. through user charges)? • Is this the responsibility of the Commonwealth, or of the states or local government? • Is there serious risk of government failure if it took on the responsibility? adam.graycar@anu.edu.au

7. Politics of policy development • Election platforms (sourced from parties, interest groups, plus public service for government) • Ministers and advisers (from personal networks, party, interest groups) • Public service (from program data, experience, environment scanning, external experts, interest groups) • Interest groups (include service providers, client groups, sectoral interests) adam.graycar@anu.edu.au

8. Politics of policy development (cont) • States/local government (from program experience, own financial interests, own political interests) • Public (clients, taxpayers, community members/citizens) • Media (stories, crises) adam.graycar@anu.edu.au

9. What’s the issue with the program? • How bad is the problem? • Severity, likely to get worse? • Scope and impact • How pressing? • New, unexpected or perennial? adam.graycar@anu.edu.au

10. Where are we now and where are we going? • Where do we want to get to? • How do we get there? adam.graycar@anu.edu.au

11. In order to get there: • Vision and values  • Evidence and analysis  • Understanding of stakeholders  • Delivery capabilities adam.graycar@anu.edu.au

12. Issue context • What are the drivers of the SHP program? • What legislation is relevant? • Think ahead on where the problem might lead - current and future impacts adam.graycar@anu.edu.au

13. For whom is it a problem? • For program clients (or potential clients)? • For other program stakeholders? • For taxpayers? • For the public more generally? • For those fundamentally opposed to the endorsed policy? • Where is ‘the public interest’? adam.graycar@anu.edu.au

14. Routine/ exceptional adam.graycar@anu.edu.au

15. Locating the problem • Are policy objectives appropriate/ inappropriate? • Are other policy objectives being undermined? • Is the problem primarily administrative? • Is it primarily a communications/perceptions issue adam.graycar@anu.edu.au

16. Locating the problem • Are the policy objectives inappropriate? Are they inconsistent with broader social, economic, environmental policies? • Are key policy objectives not being met? ‘Needs’ not addressed? Or not met effectively? Or efficiently? • Are other policy objectives being undermined? Is the balance wrong? adam.graycar@anu.edu.au

17. Locating the problem? (cont) • Is the problem primarily administrative? e.g. missing key target groups, slow, cumbersome, costly • Is it primarily a communications/perceptions issue? adam.graycar@anu.edu.au

18. Managing the politics • Working with the minister and office • Working across government • External consultation and engagement • Managing communications – a professional business adam.graycar@anu.edu.au

19. Tackling the problem • Analytical techniques • Cost Benefit Analysis (CBA) • Cost Effectiveness Analysis (CEA) • Opportunity Costs (OC) adam.graycar@anu.edu.au

20. Policy Instruments • Advocacy • Networking • Money • Government action • Law • Althaus, Bridgman, Davis adam.graycar@anu.edu.au

21. Instruments - detail • Money • Fiscal powers • Taxing • Incentive payments • Grants (including States Grants) • Government action • New institutions • Direct service programs • Purchaser/provider • Administrative decisions adam.graycar@anu.edu.au

22. Instruments, cont’d • Law • Legislation • Regulation • Parliamentary resolution • Administrative action (under law) adam.graycar@anu.edu.au

23. Some more framework thoughts • Conditions/ problems • Investment/ consumption • Need / want • Risk/ vulnerability • Risk factors/ protective factors adam.graycar@anu.edu.au

24. Implementation • Policy development phase • Governance • Risk management • Implementation planning • Procurement & contract mgt • Stakeholder management • Resources • Communications • Monitoring & review adam.graycar@anu.edu.au

25. Implementation(fromANAO/PM&C) • Policy development phase • Policy/administration linkages • Identifying, assessing, advising on risks • Consideration of time frame • Contingency provision • Governance • Roles and responsibilities • Steering committees, taskforces, project teams • Monitoring and review adam.graycar@anu.edu.au

26. Implementation (cont) (from ANAO/PM&C) • Risk management • Early identifying and assessing risks • Links to central agencies • Working with outside stakeholders • Managing risks • Managing consequences, escalation • Implementation planning • Including critical path, milestones etc adam.graycar@anu.edu.au

27. Implementation (cont) (from ANAO/PM&C) • Procurement and contract management • Strategy • Expertise etc • Stakeholder management • Who, when, what, how • Resources • Staffing and skills • Change management • Finances • Systems adam.graycar@anu.edu.au

28. Implementation (cont) (from ANAO/PM&C) • Communications • Communications strategy as essential component of implementation • Monitoring and review adam.graycar@anu.edu.au

29. Typical hurdles • Useful early administrative advice • Clarifying the risk tolerance level up front • Getting legislation passed, as intended, on time • Negotiating with the States or others • Getting systems & procedures up and running reliably • Keeping staff in place adam.graycar@anu.edu.au

30. Typical hurdles • Getting expert advice from the administrative arm at an early stage of policy development • Particularly if that expertise is not available in-house or in-portfolio or in-government • Clarifying the risk tolerance level up front • Getting legislation passed, as intended, on time • Negotiating with the States or other critical third parties • And managing conflicts of interest adam.graycar@anu.edu.au

31. Typical hurdles(cont) • Getting systems up and running reliably • Developing procedures, training the trainers, training staff • particularly if trained staff needed within third parties • Holding the senior project manager in the position until implementation is embedded adam.graycar@anu.edu.au