PBAF 513 Week 4. A Look Forward… Week 4: Policy Options/Management Tools^ Week 5: GAO guests – [Problem Def Memo Due] *clarity/grammar are important*

PBAF 513

Week 4

A Look Forward…• Week 4: Policy Options/Management Tools^• Week 5: GAO guests

– [Problem Def Memo Due] *clarity/grammar are important*• Summarize important background info• Provide appropriate history & context• Reader should be able to assess the nature, distribution, and severity of the

problem (use data/chart to show)• Provides an underlying model of the problem• Appendix re: client, if necessary/helpful

• Week 6: Evaluating/Tradeoffs – [Criteria/Options Workshop]^

• Week 7: Institutions/Uncertainty– [Criteria & Options Memo Due]

• Week 8: Policy, Politics, Public– [Matrix Workshop]^

• Weeks 9-10: Presentations• Final Partnership Memo Due

^ case memo due

A Look Back…

• Effectively articulate problem & solutions– Not persuasion per se, but smooth, balanced

analytical style (which means free of jargon, logically connected, and not just focused on your favorite things)

• Rigorously consider pros/cons of alternatives• Problem definition is key (model/theory & evidence)• Leads to specific criteria

– Abstract goals/objectives– Specific criteria--show all the important impacts of

the potential options

Policy Options/Alternatives

• Where do they come from?

• Which should you include?

• How much detail?

• Must they be mutually exclusive?

First:

• Using the Matrix handout--• Write down 3 objectives/criteria for the

Zimbabwe case & why you chose those.• Brainstorm generic types of tools

• 4 minutes.

Generic tools…

• Mandates—rules/regulations

• Inducements—carrots/sticks a.k.a. subsidize/tax• Capacity-building—money, info, tech, resources

(future investment)• System-changing—authority, institutions

(structuring rights, markets)• Insurance/cushions

Supply-side? Demand-side?Type of good? Type & level of Target?

• Individuals• Industry (or other entity)• Bureaucracy (local, state, fed)

Where does direct service provision fall? Contracted provision?

Bardach: Things governments do • Taxes• Regulation• Subsidies and Grants• Service Provision• Information• Structure Private Rights• Affect Economic Activity • Provide Education and Consultation• Financing and Contracting• Bureaucratic and Political Reforms

Small Groups: Zimbabwe Case

• What is the main policy problem?• Options given—are these the “right” ones?

– How do we pare down list (should we)?– How decide?– Why are these the right options?

• Combine options? How decide which to choose?• Consider other options?• Evaluation—what would you pick?

Handout*

Zimbabwe AlternativesApproach Generic Tools Strength of Tool Weakness of Tool

Crop DevelopmentSelf-help Garden

Livestock DevelopmentRabbit self-help

Water Supply

Blair Latrines

Chingwa Stove

Note: Some approaches have more than on toolFill out generic strengths and weaknesses for each tool***Fill out back of Worksheet too***

Policy Options/Management Tools• What are Policy Options?

– Generic vs. Specific• Where can you find alternatives?• How many should you choose?• How can you think about combos?

Why start with generic tools?

• Generic tools are logical solutions to generic problems (market failures, government failures, institutional challenges

• Generic tools have well known strengths and weaknesses that we can anticipate and work to off-set

• Generic tools have track records that we can use to predict costs and impacts

• Generic tools are the foundation for “tinkering” and “adapting”

• Caution re: using stock solutions & not adapting!

Link to specific tools—matrix for Zimbabwe

Where do Options come from?

• Status Quo or improved version

• Alternatives already on the “on the table”

• “Smart practices” from other places (use Mintrom’s comparative institutional analysis)

• Tinkered policies by moving your client’s levers or “instruments” (Peter May)

• Off-the-shelf Generic tools (e.g., Bardach, Mintrom, Weimer and Vining generic policies)

• Creative new ideas

Generic Policy Options/Alternatives• Range of general strategies that can be taken• Must be tailored to specific circumstances to

produce viable policy alternatives (context, complexity) [incremental vs. large reform]

• General Categories [Weimer and Vining (p210)]:– Freeing, facilitating, and simulating markets– Using taxes and subsidies to alter incentives– Establishing rules– Supply goods through nonmarket mechanisms– Providing insurance and cushions (economic

protection)

Generic tools…

• Mandates—rules/regulations

• Inducements—carrots/sticks a.k.a. subsidize/tax• Capacity-building—money, info, tech, resources

(future investment)• System-changing—authority, institutions

(structuring rights, markets)• Insurance/cushions

Supply-side? Demand-side?Type of good/service? Type & level of Target?

• Individuals• Industry (or other entity)• Bureaucracy (local, state, fed)

Where does direct service provision fall? Contracted provision?

Rules• Framework rules-facilitate private choice in markets

– Civil Law: Contract law, Liability, Negligence– Criminal Law

• Regulation-alter choices (compliance & monitoring)– Prices (cable tv rates, health insurance premiums)– Quantity (pollutants, Prohibition)– Direct info provision (disclosure & labeling—cigarettes,

food)– Indirect info provision (registration, certification,

licensing—Nursing Homes, Midwives, Contractors)– Choice Architecture (Thaler & Sunstein 2008—opt-in vs.

opt-out schemes, ordering of food options)

command behavior

Taxes~ & SubsidiesTaxes to raise the private cost of things that are too abundant &

Subsidies to lower the cost of those too scarce: supply- vs demand-side

• SST: Output tax (industry pollution, profit tax)• SST: Tariff (tax on import/export||nonT barriers)• SSS: Matching grant (state block grants)• SSS: Tax expenditure (business deduction/credit)• DST: Commodity taxes (ROH, cig) & user fees (license fees,

tolls)• DSS: In-kind subsidies (distribute surplus cheese)• DSS: Vouchers (food stamps, education, housing)—purchase

market goods at reduced $• DSS: Tax expenditure (personal deduction/credit—mortgage

or educational loan deductions)

induce behavior

Government Provision

• Managing/Implementing/Facilitating commerce, taxes & subsidies, & rules (laws/justice)

• Managing public lands & other property• Constructing public works• Research & testing• Technical assistance & training• Social services (health care, education, etc.)• Direct cash assistance• Marketing• Supporting internal administrative needs

Market failure or redistributive goal & no other policy works

Bureaus, Gov’t corporations, special districts, direct contracting, non-profits, independent agencies

Market-based Options• Free Markets

– Deregulate (T-com, trucking, banking, air)– Legalize (gambling, prostitution)– Privatize (utilities, RR, liquor)

• Facilitate Markets– Allocation through property rights (water rights)– Create new marketable goods (cap & trade (instead of

emissions regulation, for instance—create tradable permits & put in a cap on total #: fisheries, air pollution control, land use control, water allocation)

• Simulate Markets (Gov’t Still Involved)– Auctions (Liquor Permits for stores in WA)

Efficacy is based on premise that there isn’t a market failure

Insurance & Cushions

• Mandatory insurance (auto insurance, HEALTH)• Subsidized insurance (disaster insurance)• Stockpiling (strategic materials—oil, minerals, $)• Transitional assistance (unemployment)• Cash grants (welfare, SSI)

insurance spreads risk & cushions reduce outcome variance

Nonprofit tools:

• Advocacy• Direct service• Grant-making• Education/training• Collaboration/convening• Information provision• Public marketing/social media use

How much detail?

• Enough to distinguish between options

• Enough to address concerns, but the least needed to provide the vision

• How much detail do you need to understand the impacts? [What are key elements?]

• How much time do you have to do analysis?

Do they need to be mutually exclusive?

• Yes. You must evaluate the package, not add the expected outcomes of two separate options together.

• If any synergies are possible between actions, then yes.

• Is sequencing important?

– What’s your model/logic/theory???

Policy alternatives:Do find good/better (not BEST) alternatives—ways

to improve the situation tailored to the levers available (manipulable factors)

Don’t forget to think about the logistics of implementation (top down, bottom up)

Don’t compare to straw men—”Usually the strength of an analysis is not the search for the answer (which rarely exists) but the illumination of the differences between contending responses to problems” (May)

Do consider packages/portfolios of instruments as contending “alternatives”/”strategies” (combine & recombine—start with separate, though)

Words of Caution

• More studies as an alternative?• If decide not to include some, tell reader why

– How did you screen?• Complexities, Interactions, Dynamics,

Contingencies, Aligning incentives, implementing rules, ….all sorts of issues can crop up

• Alternatives to address symptoms vs. root causes

Next Time• GAO Speaker, Heather MacLeod (do research)• Problem Definition Memo Due• Following week: last case memo available:

– Your boss, Secretary of DSHS, Susan Dreyfus, has asked you to provide her with a recommendation as to how DSHS should invest in prevention programs for child welfare. Use the WSIPP (the most up-to-date version) to write a memo to your boss. Use WSIPP update (earlier version there for info) SEE CATALYST

– Guests: Tyler Scott & Marieka Klawitter – Mintrom Ch 13 AND 14 OR 15– Hatry & Whittington readings– Optional: Urban Institute Report & earlier WSIPP analysis– Criteria & Alternatives WORKSHOP—bring 4 copies of unfilled matrix

that summarizes your criteria & options