Up on completion of this unit, participants
should be able to:
 Distinguish public policy theories; and
 Articulate & explain their implications to
national development endeavors and citizens’
interests;
 Policy theories/models and approaches are
the outcome of needs for analyzing
policymaking processes.
 Political scientists use several theories or
models or approaches to explain the nature
of policymaking process and also the policies
that result.
Main Policy theories/Models/ Approaches
1. Institutional theory/model (Institutionalism)
2. Elite theory/model (Elitist model)
3. Group theory/model (pluralist model)
4. Rational-choice theory/model (rationalist model)
5. Incremental theory/model (Incrementalist model)
6. Political systems theory/model
7. Public choice theory/model
8. Policy process model: Policy as a political activity
9. Game theory: Policy as rational choice in competitive
situations
(Anderson 2006; Dye 2005; Kraft and Furlong 2004).
1.Institutionalism: Policy as institutional output

The study of government institutions or organizations
is oldest concerns of political science.

Government institutions have long been a central
focus of political activities.

Most political activities generally center on
government institutions where the latter are venues
for inspiring public policies.

Public policies are authoritatively determined,
implemented, and enforced by government
institutions.

A policy cannot become a public policy until it is
adopted, implemented, and enforced by some
government institutions.

Hence, it is argued that the relationship between
public policy and government institutions is much
closer.
Government institutions give public policy three
distinctive characteristics:
1. Government lends legitimacy to policies
o
Public policies are generally regarded as legal
obligations that demand the loyalty or compliance of
citizens.
o
Policies of other groups (e.g. private organizations,
professional associations, church, mosques, etc)
cannot be as binding as that of public policies.
o
Only government policies impose legal obligations.
2. Government policies involve universality.
 It is only government policies that are
extended to all people in a society (e.g.
education, healthcare, social welfare, etc).
 Policies of other groups or organizations
reach only a part/segment of the society.
3.Government monopolizes coercion in society.

It is only government that can legitimately imprison
violators of its policies.

Sanctions that can be imposed by other groups or
organizations in society are limited.

This ability of government gives it the command that
induces the loyalty of all its citizens to enforce its policies.

Its legitimate use of force encourages individuals and
groups to work for the enforcement of their preferences
into policy.
 Institutionalism revolves around
governmental institutions such as
legislatures, executives, courts and political
parties.
 Institutional theory is a reminder that certain
aspects of government structure can either
empower or obstruct certain policy or
political interest.
2. Elite theory/model (Elitist model)
o
Public policy can be viewed as the preferences and values of the
governing elites.
o
The popular assumption that public policy reflects the demands of
or in full congruence with “the people” may sometimes be
questioned or even may remain a myth rather than real.
o
Elite theory mainly emphasizes the values and preferences of the
governing elites which substantially differ from that of the public at
large.
o
It affects the development of public policy in favor of the elites.
The elite theory can be summarized as follows:
a. Only a small number of persons allocate values for society; the
masses do not decide public policy
b. Elites are drawn disproportionately from the upper
socioeconomic strata of society
c. The movement of nonelites to elite position must be slow and
continuous in order to maintain stability and avoid revolution.
d. Only the non-elites who have accepted the basic elite consensus
(principles) can be admitted to governing circles.
e. Elites share consensus on behalf of the basic values
of the social system and its preservation.
For example, the basis for elite consensus in the USA are the
sanctity of private property, limited government, and individual
liberty.
f. In this theory, public policy does not reflect the demands of
masses but rather the prevailing values of the elites.
g. Changes in public policy will be incremental rather than
revolutionary.
h. The elites influence masses more than the masses do on the
elites (Dye 2005, 22).

Policies formulated in such circumstances serve
the material needs of narrow elite, while the
benefits remaining to the public is largely
symbolic.

In such situations, public policymaking almost
always involve highly value-laden symbols such
as freedom, privacy, justice, equality, and
morality, which are easily manipulable (“userfriendly”) by the elites to their own advantage.
THE ELITE MODEL
Elites
POLICY DIRECTION
Officials and
Administrators
Dye (2005, 22)
MASS
MASS
MASS
MASS
MASS
MASS
MASS
MASS
The elite theory has got implications for policy analysis in particular in that:
1. Elitism implies that public policy does not reflect the demands of the people so
much as it does the interests, values, and preferences of elites.
2. Change and innovation in public policy come about as a result of redefinitions by
elites own values and interests.
3. The tendency is to preserve the system in operation or in existence; it insists that
whatever change is thought will be incremental rather than revolutionary.
4. Public policies are frequently modified but seldom replaced.
5. Changes in the system occur only when events threaten it and when elites act on
the basis of enlightened self-interests to preserve the system and their position.
6. Elitism regards that the responsibility of mass welfare rests on the shoulders of
elites, not on the masses.
7. It sees the masses as largely passive, apathetic, and ill-informed (Dye 2005).
3. Group theory/model (pluralist model): Policy as group
Equilibrium
o
Group theory is in contrast to the elite theory and with the view
that power is widely shared among interest groups, each of which
seeks access to the policymaking process.
o
It exercises a countervailing power against others (e.g. labor
unions vs other manufacturing firms groups; teachers associations
vs professional associations, etc.).
o
The balance helps to ensure that no one group dominates the
policy process due to their access to resources, recognition, to
policymakers and being prestigious and influential than others.
Main tenets of the theory or model includes:
a. that interaction among groups is the basis of
politics.
b. public policy is the product of group struggle,
while politics is the struggle among groups to
influence public policy
c. individuals with common interests come
together to press or push their demands
on government.
The task of the political system is to manage
group conflicts by:
a. establishing rules of the game;
b. arranging compromises and balancing
interests
c. enacting compromises in the form of public
policy; and
d. enforcing the compromises.
o
Group theorists believe that public policy is the
equilibrium reached in the group struggle.
The equilibrium is determined by the relative
influence of any interest groups which results in
change in public policy in favor of the group or away
from the desires of groups losing influence.
o The influence of groups depends on their numbers,
organization strength, access to decision makers,
resource, and internal cohesion.
o

One major shortcoming about the group theory is, it is argued, the
poor and the disadvantaged are either not represented or poorly
represented.

As a result, policy critics say that the group “sings with a strong
upper-class accent” (Schattschneider 1960,35). This implies that
those who are not represented will have little voice in
policymaking process and their interests are put aside.

Another strong argument against this group is that it tends to
exaggerate the role and influence of organized interest groups
in the policymaking process but underestimates the role of the
lawmaking body’s discretion in making policy choices.
4. Rational-choice theory/model: policy as
maximum social gain

Rationalist policy model (also known as public choice theory)
strives to achieve maximum social gain.

It argues that governments should choose policies that can result
in gains to society that exceed costs with greatest amount.

Governments have to refrain from policies if costs are not
exceeded by its gains.

The rational theory heavily draws much of its tenets from
economics (especially from microeconomic theory) and often uses
elaborate mathematical modeling.
The rational theory principle holds two implications:
a. no policy should be adopted if its costs exceed its benefits
b. among policy alternatives, decision makers should
choose the policy that produces the greatest benefit over
cost.
Thus, a policy is rational only when the difference between
the values it achieves and the values it sacrifices is positive
and greater than any other policy alternatives.
To the view of rationalist theoreticians, to select a
rational policy model, policymakers must:





know all society’s value preferences and their relative
weights;
know all the policy alternatives available
know all the consequences of each policy alternative;
calculate the ratio benefits to costs for each policy
alternative; and
select the most efficient policy alternative (Dye p. 15).
 Critics of rationalist model argue that the
theory is narrowly oriented and rigid
assumptions where it is known that there is
always information asymmetry.
 Rational-choice studies are often
characterized by “rigid and narrow
assumptions; mathematical equations;
abstractions and remoteness from reality”
(Anderson 2006, 26).
5. Incremental/Incrementalist theory/
model: policy as variations on the past
o
Incrementalism views public policy as a
continuation of the past activities with only
incremental modifications.
o
There are some plausible reasons why
incremental policy operates in an established
system.

Constraints of time, information, and cost prevent
policymakers from identifying the full range of policy
alternatives and their consequences.

Constraints of politics also prevent the establishment
of clear-cut societal goals and the accurate calculation
of costs and benefits.

The incremental model recognizes the impractical
nature of (rational-comprehensive ” policymaking,
and describes a more conservative process of decision
making”.

Incrementalism is said to be conservative in the
sense that existing programs, policies, and
expenditures are considered as a base, and
attention is concentrated on increases,
decreases, or modifications of current programs.

It is also the case that policymakers generally
accept the legitimacy of established programs
and tacitly agree to continue previous policies.
Why Policy Incrementalism?

Legislators do not have time, information, or money to investigate all the
alternatives to existing policy; the cost of doing this is too great.

Policymakers accept the legitimacy of previous policies because of the
uncertainty about the consequences of completely new or different policies.

There may be heavy investments (e.g. in money, buildings, or other hard items,
or they may be in psychological dispositions, etc.) in existing program which
preclude any radical change.

It is accepted as wisdom that organizations tend to persist over time regardless
of their utility that they develop routines are difficult to alter…

Individuals develop personal stake in the continuation of organizations and
practices, all of which makes radical change very difficult to imagine or do.
 Incrementalism is politically expedient, where
agreement comes easier in policymaking.
 Disputes over resource are only a matter of an
increase or decrease in budget which helps in
the modification of existing programs.
 Conflicts is usually heightened when decision
making focuses on major policy shifts that
involve great gains or loss, or “all-or- nothing”,
or “yes-or-no” policy decision.
•
Policymakers usually tend to recommend the
incremental model. People are also said to be
pragmatic; they seldom search for the “one best
way” but instead end their search when they find
“a way that will work” (Dye 2005).
•
In the absence of any agreed-on societal goals or
values, it is easier for the government of a
pluralist society to continue existing programs
rather than to engage in overall policy planning
toward specific societal goals.
An example of incremental policy trend
2001 2002 2003
2004 2005
2006
6. Political Systems Theory

Public policy may be viewed as a political system’s response to the
demands arising from its environment.

The political systems comprise of those identifiable and
interrelated institutions and activities, what are usually thought of
as governmental institutions and political processes, in a society
that make authoritative allocation of values (decisions) that are
binding on society.

The policy environment (context) consists of all phenomena: the
social, economic, the biological setting which is external to the
boundaries of the political system (see Chpater5).

Inputs into the political system from the environment consist of
demands and support.

Demands are the claims for action that individuals and groups
make to satisfy their interest and values.

Support is rendered when groups and individuals abide by
election results, pay taxes, obey laws, and otherwise accept the
decisions and actions undertaken by the political system in
response to their demands.

The amount of support to the political system indicates the extent
to which it is regarded as legitimate, or as authoritative and
binding on its citizens (Anderson, 2006).
o
Outputs of the political system include: laws,
rules, decisions, and the like.
o
Regarded as the authoritative allocations
of values, they constitute public policy.
o
Policy output in turn may produce new
demands which lead to further outputs, and
so on in a never-ending flow of public policy.
A Model of the political system (Anderson 2006,19)













The Environment
INPUTS
Outputs
Demands
Support
Laws
Political
System
System
Decisions
Feedback

political systems theory emphasizes the larger
social, economic and cultural
contexts/environments in which political
decisions and policy choices are made (Kraft and
Furlong 2004).

It seems to function in an almost biological
model of politics suggesting that governments
and public officials react to the political climate
much as organisms respond to environmental
stimuli (Ibid).
7. Public choice theory/model: Policy as Collective Decision
Making by Self-Interested Individuals

The theory/model is the outcome the economic study of
nonmarket decision making, particularly the application of
economic analyses to public policymaking.

In the traditional past, economists studied behavior in the
nonmarket place and assumed that individuals pursued the private
interest.

Political science in its part studied behavior in the public arena and
assumed that individuals pursued their own notion of the public
interest.
Thus, separate versions of human motivation
developed in economics and political science:
a. the idea of homo economics assumed a selfinterested actor seeking to maximize
personal benefits; and
b. that of homo politicus assumed a publicspirited actor seeking to maximize social
welfare (Dye 2005).

Public choice theory assumes that all political actors-voters,
taxpayers, candidates, legislators, bureaucrats, interest
groups, parties, bureaucracies and governments-seek to
maximize their personal benefits in politics as well as in the
market place.

It is believed that people pursue their self- interest in both
politics and the market place, but even with selfish motives
they can mutually benefit through collective decision
making.

Dye (2005) further elaborates that government itself arises
from a social contract among the individuals who agree for
their mutual benefits to obey laws and support the
government in exchange for protection of their lives,
liberties, and property.

It is argued that enlightened self-interest
leads individuals to a constitutional contract
that helps to establish a government to
protect …

Public choice theory recognizes that
government must perform certain functions
that the market place is unable to handle; it
must remedy certain “market failures”.

Government must provide public goods, goods and
services that must be supplied to everyone if they are
supplied to anyone as the market is not able to provide
public goods since their costs exceed their value to any
single buyer.

For using a common good, a single buyer cannot be in a
position to keep nonbuyers from using it.

National defense is the typical example, where protection
from foreign invasion is too expensive for a single person
to buy, and once it is provided no one can be excluded
from its benefits.

People must act collectively through government to provide for
the common defense.

Externalities are another recognized market failure and
justification for government intervention.

An externality occurs when an activity of one individual, firm, or
local government imposes uncompensated costs on others.

The most common examples are air and water pollution: the
discharge of air and water pollutants imposes costs on others.

Governments are expected to respond by either regulating the
activities that produce externalities or imposing penalties (fines)
on these activities to compensate for their costs to society.
8. Process theory: Policy as Political Activity

Since World War II, modern “behavioral” political science
has studied the activities of voters, interest groups,
legislators, presidents, bureaucrats, judges, and other
political actors.

One of the main processes has been to discover patterns
of activities-or “processes”.

As a result, political scientists have grouped various
activities according to their relationship with public policy:
policy processes.

problem identification; agenda setting; policy
formulation; policy legitimation; policy
implementation; and policy evaluation (all
covered in chapter 3).
9.
Game theory: Policy as rational choice in competitive situations

This theory is emphasized in situations where two or more
rational participants have choices to make while the outcome
depends on the choices made by each side.

Rational decision makers are involved in such choices that are
interdependent and each player must adjust their conduct to
reflect not only their own desires and abilities but also their
expectations about what others do.

In other words, each group or player has to be able to calculate
the values of other player (opponent) in order to maintain own
objectives or interests.

An important aspect of game theory is the notion of deterrence,
an effort to prevent an opponent from undertaking an action by
inspiring fear of consequences of the action (game).

Deterrence prevents opponents (players) from undertaking a
particular action by creating in their minds the fear of costly
retaliation, while the success of it depends on the credibility of the
retaliatory threat and the rationality of the opponent.

Thus, rational opponents must weigh the potential costs and
benefits of their actions. Irrational opponents fail to consider these
all and are not deterred. Such games are very important in the
policymaking processes, especially during the critical stage of
achieving agenda status.
Summary




All of the foregoing theories are considered helpful as each
offers distinct conceptual lens through which to view politics
and public policy.
Each of the theories/models/ highlights particular features of
the political and institutional landscape. However, none is by
itself completely satisfactory.
There is no consensus on which theory/model is the “best” or
the most satisfactory, as each approach focuses on different
aspects of policymaking and politics.
It, therefore, seems more useful for understanding some
situations or events more than others. For example, it is
important to note that group theory and elite theory are
mutually exclusive approaches to policymaking process: who
controls and who benefits from it (in clear terms, who rules it?).

Rational-choice theory because of its narrow
focus, should stand by itself. The fear behind this
theory seems on the question of who rules as it
asserts that elected officials will promote their
own interest rather than that of the people’s.

The theory leads to the (normative/conservative)
conclusion, as a result, that less government is
better government.

Anderson (2006), Kraft and Furlong (2004), and
Dye (2005) advise us that looking at all the
policy theories or models, one should not
venture to become too dogmatic or rigid
towards one model or approach.

It is desirable to be eclectic and flexible, using
theories and concepts that seem most useful for
satisfactory and far-minded description and
explanation of policy enquiry.
Reflective Questions

What is the importance of learning policy theories?

Which of the theories reflect some of the policies in our country, and
why?

Is there an independent policy theory that functions exclusive of
other theories?

If someone argues as “our policies are by and large the products of
elite theory”, how can you explain your positions?

If you are convinced by the arguments in Question 4, does it also
imply that our policies are preoccupied by incremental approaches?

How do you relate or differentiate rational policy theory with some of
the socioeconomic policies in our country?
Further Readings
1. J. E. Anderson. 2006. Public policymaking, 6th
ed. Houghton Mifflin Co., USA
2. M. E. Kraft and S. R. Furlong. 2004. Public
Policy: Politics, analysis and alternatives. C.
Q. Press, USA
3. T. R. Dye. 2005. Understanding Public
policy.11th ed. Pearson Education, INC, New
Jersey