Why public policy should be at the heart of development

The government plays a central role in the public policy process because it has legitimate authority and coercive sanction to preserve order. This is why every aspect of an individual’s life from birth to death is affected in countless ways by public policy decisions of the government.

It is also why everyone looks up to the government during crises and emergencies (such as the Covid-19 outbreak) to redress the situation. Compared to other actors (private sector and civil society), the government has greater capacity to garner financial, administrative and technical resources to undertake large-scale initiatives and the power to influence other actors to achieve its objectives.

One of the most important roles of public policy in development is to frame the national vision. A vision or dream is a futuristic and long-term view of what we want to “be” or what we want to “see”. Simply put, a vision makes us see the mountain top very clearly whereas a dream makes us to stand on the mountain top.

The vision helps us to “see” or “feel” the destination at the start of the development journey, even before arriving at the destination. This is why Kenya’s Vision 2030 policy and the UN Millennium Development Goals (MDGs) and Sustainable Development Goals (SDGs) were developed. Although many developing countries have not yet realised the importance of visioning, it should ideally be the first stage of the development process in any country. Policy drafters should forecast and project into the future to determine the aspirations of the nation. There is no country in the world that has achieved rapid growth and development without framing a clear vision. Visions assist countries to marshal the national mindset, resources and effort towards a certain direction.

This lowers inertia, conflict and competition in the development process because sectors work to achieve targets that are integrated, budgets are allocated to achieve compatible targets, organisations evolve strategies that fit into the national vision. Without a vision, the development path is haphazard, myopic and blurred because no one knows the long-term destination.

Sound public policy is important in achieving various goals. Public policy is designed to meet economic, social and political ends. On the economic front, public policy affects development outcomes through four main channels.

First, the government is able, through regulatory actions, to promote free competition and efficient operation of markets. In this way, public policy constrains and conditions individual and collective behavior towards achieving higher efficiency, productivity and consumer welfare. This arises from the fact that the activities of dominant firms penalise consumers or reduce their welfare. To protect consumers, governments intervene in markets through public policy to correct such market behavior.

Secondly, the government allocates resources towards public interest. It is the duty of the government to supply public or collective goods. Public goods include national defense, police services, street lighting, public parks, clean environment, education, health, infrastructure and so on. Thirdly, the government reallocates or modifies the allocation of existing resources. For example, in Kenya, the equalisation fund was created through policy to redress historical inequalities in the distribution of budgetary resources.

Lastly, the government stabilises economic activity by lowering risk and uncertainty. This is mainly achieved through monetary and fiscal policies, buffer stocks and stabilisation funds. Monetary and fiscal policies usually stabilise consumer prices, exchange rates and interest rates while buffer stocks and stabilisation funds mitigate losses to farmers by stabilising agricultural producer prices.

On the social front, public policy creates an environment that promotes freedom of association and the rights of individuals to form, join and participate in associations. In addition, organisations have the right to operate freely without unwarranted state intrusion or interference.

It protects freedom of peaceful assembly, freedom of expression, communication and co-operation with others in all sectors. In such an environment, individuals and organisations are free to participate in the policy processes through institutionalised, inclusive and transparent multi-stakeholders dialogue fora. In other words, public policy leads to the attainment of the societal values of fairness, equity and social justice.

On the political front, public policies must support the government of the day. Public policy should capture the political agenda of the governing political party.

In this way, public policies help political leaders to translate party agenda and political visions into public programmes and actions. Hence, the public policy process provides the platform for the executive authority to steer the processes, leading to achievement of national goals.

Elected officials are voted into office by citizens with the expectation that the latter will affect development outcomes by designing enabling policies. Such policies should ensure that there is adequate governance by the state and by public and private sector institutions. Policy will also ensure that these institutions are accountable, transparent and efficient.

Dr Moyi is the head of Partnerships Department, Kenya Institute for Public Policy Research and Analysis (KIPPRA)