Public Policy Analysis

OVERVIEW

What is it?

Public policy analysis is an analytical process that serves to identify and assess several dimensions of a public policy in a partner country or region. it focuses essentially on stakeholder identification, policy relevance and credibility in a sector of interest.

What can it be used for?

Public policy analysis aids in understanding the political and socio-economic environment of a partner country and how a government/sector assesses current needs and opportunities and intends to respond to these. It helps to better identify what are the issues at stake, what are the EU values/priorities/targets concerned, who are the main actors/stakeholders and whether the current policy responses are credible and relevant? It examines a sector/area of intervention from a public policy perspective, which entails looking at national/sectoral priorities and current policies, programmes, action plans and the extent to which they respond to a well identified need. It also serves to recognise the influence of the local administrative culture on policy implementation and identify possible challenges (lack of performance management systems, cost estimates, insufficient budget allocation, weak coordination across institutions, insufficient evidence, etc.) which might pose a risk for the intervention and need to be mitigated. Additionally, it helps in anticipating external influences on the policymaking process. Finally, public policy analysis can be helpful in engaging in policy dialogue with relevant institutions, based on their respective mandates and the evidence gathered and interpreted.

When can it be used?

Public policy analysis is a key analysis which underpins and supports the design of an intervention. It is instrumental in selecting the intervention's strategy, as it is based on an analysis of the challenges and opportunities offered by the policy framework, including the cultural dimension of policy making and implementation Public policy analysis is also critical during implementation as a means of tracking changes, detecting risks and helping ensure that the intervention remains relevant and results oriented.

Who can use it?

EU staff
Relevant partners

What are its strengths?

Very helpful in determining how best to support the relevant sector and in understanding policy and institutional framework needs.
Gaining insight on fruitful entry points for an intervention and policy dialogue.

What are its limitations?

Understanding the policy framework requires more than document review and analysis but must instead comprise a reality check assessment which fully captures the real interests, dynamics and capacities of partner government/institution/sector stakeholders.

PRACTICAL APPLICATION

Key elements

Public policy analysis can be synthesised in an analytical grid:

Identification of the policy framework How do governments make their policies? How do governments interact with local actors (CSO in particular) and local donors?
Key components of the analysis: Political economy analysis (interaction of political and economic processes in a society) Policy content Policy formulation process Monitoring and evaluation Policy coherence Review mechanisms and donor coordination (policy dialogue)	Key questions: Who has power and authority? Where, how and for what period is the policy defined Are political and budget cycles linked? Is there an existing and effective coordination process/Is the policy coherent with other policies? Is there real involvement of stakeholders in policy formulation?
Assessing policy relevance What are the objectives pursued by the policy, and how do these respond to the problems and needs expressed by stakeholders as well as aligned with national priorities and EU values/interests?
Key components of the analysis: Matching challenges/problem/opportunities identified and different solutions including the policy choice EU perspective: Link to EU policy priorities Partner country/region perspective: alignment of government response to country/sector challenges	Key questions: What are the objectives of the identified policy? Does it adequately respond to the issues at stake and the needs of beneficiaries? Is it the right policy tool? Does the policy fit with existing national development plans? Does the policy integrate relevant gender equality, environment and climate change considerations? How is it aligned with the 2030 Agenda and the European Consensus on Development? To what extent is the policy compliant with relevant human rights international commitments and recommendations? If there is a national human rights strategy, does the policy align with it? Is there a national development plan considering resilience to mitigate the risk of negative human rights impacts, natural and manufactured disasters and conflict prevention?
Assessing policy credibility To what extent is the policy implemented in practice and likelihood that policymakers and partners will keep their implementation promises?
Key components of the analysis: Past track record Policy financing Institutional capacities and ownership Quality of data underpinning policy Supportive institutional and socio-economic environment	Key questions: Does the partner institution have a reputation for efficiency and effectiveness? Is there a budget allocated to policy implementation and future operating costs? Can the revenue system support current and future costs? Is the projected budget allocation adequate with regard to cost estimates? Is there a performance assessment/monitoring and evaluation framework in place? Does it lead to management decisions? Are there sufficient institutional capacities to implement the policy? Is there a supportive socio-economic environment? Is there a consensus around the policy choice and its implementation?

Requirements

Data/information.Public policy analysis often begins with a literature review focused on context/sector analysis, the national development plan, sector policy and its associated strategy and/or action plan, budget and cost estimates, lessons learnt from previous interventions, recent evaluations, etc. If possible and available, any national analysis conducted by the partner government, other donors and domestic actors (civil society, academia etc.) should be taken into consideration along with past performance reports. Sector working groups are a good entry point to obtain relevant information, past analyses and access to document repositories.

Time & Duration. Depending on the scope and focus of the intervention and available information, the time required can vary widely. A minimum of two weeks is generally needed to acquire a basic understanding of the topic and key aspects of a sector, policy and institutions. A deeper review including triangulation of sources and evidence, budget trends and transaction cost analysis, comparative analysis of decentralisation reform, etc., will require more time and resources.

Skills. N/A

Facilities and materials. N/A

Financial costs and sources. External expertise may be required, and relevant costs considered. Funds may come from the project itself or through other Commission instruments such as a framework contract or a technical cooperation facility.

Tips and tricks. Public policy analysis cannot be confined to a theoretical level but must include systematic reality checks aimed at assessing the pertinence and credibility of the policy. Literature reviews and previous reports are essential in assessing processes and institutional set-ups, but also a wide-ranging structured policy dialogue (not limited to institutional partner) is typically the key knowledge source.