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.au1

3. 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’ 2 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, a s distinct from a private, view of the value of the future 3adam.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.au4

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 ? 5adam.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) 6adam.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) 7adam.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? 8 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.au9

11. In order to get there: Vision and values Evidence and analysis Understanding of stakeholders Delivery capabilities adam.graycar@anu.edu.au10

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.au11

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’? 12adam.graycar@anu.edu.au

14. Routine/ exceptional adam.graycar@anu.edu.au13 Routine Clients Exceptional RoutineExceptional Issues

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.au14

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? 15adam.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? 16adam.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 17adam.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.au18

20. Policy Instruments Advocacy Networking Money Government action Law Althaus, Bridgman, Davis adam.graycar@anu.edu.au19

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.au20

22. Instruments, cont’d Law Legislation Regulation Parliamentary resolution Administrative action (under law) adam.graycar@anu.edu.au21

23. Some more framework thoughts Conditions/ problems Investment/ consumption Need / want Risk/ vulnerability Risk factors/ protective factors adam.graycar@anu.edu.au22

24. Implementation Policy development phase Governance Risk management Implementation planning Procurement & contract mgt Stakeholder management Resources Communications Monitoring & review adam.graycar@anu.edu.au23

25. Implementation ( from ANAO/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 24adam.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 25adam.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 26adam.graycar@anu.edu.au

28. Implementation (cont) ( from ANAO/PM&C) Communications Communications strategy as essential component of implementation Monitoring and review 27adam.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.au28

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 29adam.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 30adam.graycar@anu.edu.au