Public Policy Frameworks and International Organizations

Posted on May 21, 2026 in Business Administration and Management (BAM)

Definition of Public Policy

Key definition: A public policy is what the government decides “to do, or not to do” on a certain issue. It is a system of laws, regulatory measures, courses of action, and funding priorities regarding a specific area of the government’s functions.

Common Areas of Public Policy

• Education
• Health
• Housing
• Economic
• Environment
• Foreign affairs
• Social welfare
• Immigration

Who Makes Public Policies?

Division of Powers

• Executive: Sets goals and policies, proposes and drafts the legislation to be presented in parliament, and defines the desired outcomes.
• Legislative: Enacts the public policy.
• Judicial: Interprets the law and ensures its correct execution.

Other Actors

Companies, NGOs, and interest groups (lobbies): These actors formulate their own policies and lobby within the public process.

The Public Policy Development Cycle

The cycle consists of five stages that feed back into each other: Problem Identification → Agenda Setting → Formulation → Implementation → Evaluation (and back to the start).

Problem Identification

This stage involves recognizing the problem. Stakeholders identify, define, and analyze the causes of the issue. Multiple factors influence which policy challenges are identified and how they are incorporated into the public agenda, leading to the definition of solutions.

Agenda Setting

This involves getting the problem onto the government’s formal policy agenda and identifying the roles of various stakeholders.

Types of Agenda Setting

• Public agenda: Driven by public opinion.
• Political agenda: Driven by political priorities.
• Media agenda: Topics highlighted by the media.

Policy Formulation

This stage involves a deep analysis of the issue alongside alternative solutions. It includes collecting evidence, analyzing alternatives, consulting with experts, evaluating risks, and collaborating between different authorities and institutions to find the best solution. Policymakers must consider key issues during drafting and post-drafting.

Policy Implementation

A series of activities undertaken by the executive power (or by the mandate of the legislative power, such as the US Congress or the EU) to achieve the goals and objectives articulated in policy statements. This includes managing public resources and addressing reasons why a public policy might fail.

Policy Evaluation

Notion: Policy evaluation is the process of determining the quality, effectiveness, impact, and cost of a public policy. It assesses whether objectives and goals have been attained. It is distinct from monitoring and can be performed by various entities.

Classification and Types of Public Policies

There are two main classification criteria. These are essential concepts for academic examination.

A) Concentration of Costs and Benefits

• Distributive: The cost is borne by the general population, while the benefits go to a specific population. They ensure that resources and benefits are allocated fairly to a certain group.
• Redistributive: Costs are placed on a specific population to benefit another specific population (e.g., progressive taxation).
• Regulatory: Costs are placed on a specific population (the regulated industry) for the benefit of the general population. They protect public interest and ensure industries operate ethically and safely.

B) Role in Addressing the Issue

• Substantive policy: Directly targets the substance of the issue (e.g., a policy designed to improve the quality of education).
• Constituent policy: Deals with the organization and functioning of the government itself, including structure and institutional procedures.

Major International Organizations

United Nations (UN)

Founded: 1945 | HQ: New York | Members: 193

Mission: Maintain international peace and security, protect human rights, and promote cooperation. Key bodies include the General Assembly, the Security Council (with 5 permanent members with veto power: USA, UK, France, Russia, and China), and the International Court of Justice. It is the most universal organization, based on the sovereign equality of states.

European Union (EU)

Founded: 1957 (Treaty of Rome) / 1993 (Maastricht) | HQ: Brussels | Members: 27

Mission: Political and economic integration through the “four freedoms” (people, goods, services, and capital). Key institutions include the Commission (executive), Parliament (representing citizens), Council of the EU (representing states), CJEU, and ECB. It is the most integrated regional organization; members share sovereignty (supranationalism), and 19 use the Euro.

World Trade Organization (WTO)

Founded: 1995 (replaced GATT 1947) | HQ: Geneva | Members: 164

Mission: Regulate international trade and reduce tariffs and barriers. Key principles include Most-Favored-Nation (treating all partners equally) and National Treatment (treating foreign goods the same as domestic goods). It acts as the global referee of trade with a dispute settlement mechanism.

OECD

Founded: 1961 | HQ: Paris | Members: 38 (mostly developed democracies)

Mission: Promote economic policies for well-being and sustainable growth. It publishes reports, statistics, and rankings (e.g., PISA) and sets international standards for tax and anti-bribery. It does not provide loans. It is known as the “club of rich democracies,” working through knowledge and policy recommendations.

International Monetary Fund (IMF)

• Founded: 1944 (Bretton Woods) | HQ: Washington D.C. | Members: 190
• Mission: Ensure the stability of the international monetary system and prevent financial crises.
• What it does: Provides loans to countries in crisis (with conditionality/required reforms), monitors economies, and provides technical assistance.
• Key idea: The financial firefighter of the world economy (e.g., bailouts of Greece and Argentina).