Public Policy Process

The public policy process refers to the systematic sequence of activities through which governments identify public problems, formulate solutions, implement decisions, and evaluate outcomes. It explains how ideas and demands from society are transformed into concrete governmental actions. Public policy is not a single act but a continuous, dynamic, and interactive process involving multiple actors such as political leaders, bureaucrats, experts, interest groups, civil society, and citizens. Understanding the public policy process is essential for effective governance, accountability, and democratic participation.

Although in practice the process may not always follow a rigid order, scholars commonly describe it in a series of interconnected stages: agenda setting, policy formulation, policy adoption, policy implementation, policy evaluation, and policy termination or revision.

1.    Agenda Setting

Agenda setting is the first and most crucial stage of the public policy process, during which public problems are identified, recognized, and prioritized for government attention. At this stage, numerous social issues compete for limited governmental time and resources, but only a few are selected to enter the official policy agenda. Agenda setting determines what issues the government will focus on and what issues will be ignored, making it a highly political and influential process. Problems gain attention through public concern, media coverage, research findings, political leadership, pressure from interest groups, and sudden events such as crises or disasters.

The main activities involved in agenda setting include problem identification, issue framing, prioritization, and mobilization of support. Policymakers define a situation as a public problem by highlighting its causes, consequences, and urgency. Media and civil society play a key role in shaping public perception and framing issues in ways that attract political attention. For example, rising unemployment, increasing labor migration, or frequent natural disasters may be presented as urgent national concerns requiring government intervention. Research reports, statistical data, and advocacy campaigns often support these claims and help move issues onto the policy agenda.

Agenda setting also involves political negotiation and power dynamics, as different groups compete to influence policy priorities. Issues affecting marginalized communities may struggle to reach the agenda unless supported by strong advocacy or political commitment. For example, in Nepal, recurring earthquakes, floods, and landslides pushed disaster risk reduction onto the national agenda, leading to the development of disaster management policies and institutions. Thus, agenda setting shapes the direction of public policy by determining which problems are officially acknowledged and addressed by the government.

2.    Policy Formulation

Policy formulation is the second stage of the public policy process, in which alternative solutions and courses of action are developed to address the issues identified during agenda setting. Once a problem enters the policy agenda, policymakers, experts, bureaucrats, and stakeholders work together to design policy proposals that can effectively respond to the problem. This stage focuses on identifying objectives, selecting policy instruments, and assessing possible outcomes. Policy formulation is largely analytical and technical, but it is also influenced by political priorities and institutional capacities.

The main activities involved in policy formulation include collecting and analyzing data, generating policy options, consulting stakeholders, and evaluating alternatives. Policymakers examine evidence, research findings, and best practices to understand the nature of the problem and its implications. Various policy tools—such as laws, regulations, incentives, subsidies, or public programs—are considered. Public consultations, expert committees, and inter-ministerial discussions are often conducted to incorporate diverse perspectives and ensure feasibility. Cost–benefit analysis, impact assessment, and risk analysis are also used to compare policy options.

Policy formulation is shaped by political, economic, and administrative constraints, meaning that not all proposed solutions are equally viable. Competing interests, limited resources, and institutional limitations influence the final policy design. For example, in Nepal, social protection policies are formulated by balancing fiscal capacity with the need to support vulnerable groups. Ultimately, policy formulation transforms broad policy goals into concrete and actionable proposals, providing a foundation for formal decision-making and implementation.

3.    Policy Adoption (Decision-Making)

Policy adoption, also known as decision-making, is the stage of the public policy process in which one policy option is formally selected and authorized by legitimate government authorities. At this stage, proposed policies developed during formulation are debated, modified, and approved through official mechanisms such as legislatures, cabinets, councils of ministers, or executive orders. Policy adoption is critical because it gives legal and political legitimacy to a policy, allowing it to be implemented and enforced.

The key activities involved in policy adoption include deliberation, negotiation, voting, and formal approval. Policymakers assess the advantages, costs, and political implications of different policy options. Debates may occur in parliamentary committees, cabinet meetings, or public forums, where competing interests and viewpoints are expressed. Amendments are often introduced to address concerns or build consensus among political actors. The final decision may be taken through majority voting, executive authority, or consensus-based processes, depending on the political system.

Policy adoption is strongly influenced by power relations, political ideology, public opinion, and institutional rules. Political parties, interest groups, and bureaucratic actors seek to shape decisions in line with their preferences. For example, in Nepal, national policies are adopted through parliamentary approval or cabinet decisions, reflecting constitutional provisions and federal governance structures. Once adopted, a policy becomes an official course of action of the state, marking the transition from planning to implementation in the public policy process.

4.    Policy Implementation

Policy implementation is the stage of the public policy process where adopted policies are put into action through programs, regulations, and administrative procedures. This stage translates policy decisions into tangible outcomes that affect society. Implementation is often considered the most challenging stage because it involves coordination among multiple institutions, allocation of resources, adherence to rules, and interaction with the public. Effective implementation determines whether a policy achieves its intended goals or fails to produce results.

The main activities involved in policy implementation include organizing resources, assigning responsibilities, coordinating institutions, enforcing rules, and monitoring progress. Government ministries, local authorities, and public agencies carry out these tasks by allocating budgets, deploying personnel, establishing procedures, and creating operational guidelines. Public awareness campaigns and stakeholder engagement are also important to ensure cooperation and compliance. For instance, programs like Nepal’s School Sector Development Plan require coordination between the Ministry of Education, local governments, schools, teachers, and communities to provide infrastructure, train teachers, and improve learning outcomes.

Challenges during implementation often arise from limited resources, bureaucratic inefficiency, weak coordination, political interference, and lack of public awareness. Addressing these challenges requires careful planning, effective leadership, and continuous monitoring. Policy implementation is therefore not just about enforcing rules; it involves adapting strategies, problem-solving in real-time, and ensuring that the intended benefits reach the target population. By effectively managing these activities, governments can translate policy intentions into meaningful social, economic, and environmental outcomes.

5.    Policy Evaluation

Policy evaluation is the stage of the public policy process in which the effectiveness, efficiency, and impact of a policy are systematically assessed. This stage examines whether a policy has achieved its objectives, identifies unintended consequences, and provides evidence for improving or revising the policy. Evaluation ensures accountability, informs future decision-making, and promotes transparency in governance. Without evaluation, governments may continue ineffective or outdated policies, wasting resources and failing to address societal needs.

The main activities involved in policy evaluation include collecting and analyzing data, monitoring implementation, comparing outcomes with objectives, and reporting findings. Quantitative measures, such as statistical indicators, surveys, and performance metrics, are often used alongside qualitative assessments like interviews, case studies, and stakeholder feedback. Independent agencies, research institutions, or internal government departments may conduct evaluations to ensure objectivity and reliability. For example, Nepal evaluates the School Sector Development Plan using indicators such as literacy rates, student enrollment, teacher-student ratios, and infrastructure improvements to determine the effectiveness of educational interventions.

Policy evaluation also serves as a foundation for policy learning and adjustment. Insights from evaluation help policymakers revise strategies, allocate resources more effectively, and address implementation gaps. In Nepal, evaluations of social protection programs, disaster management policies, and health interventions inform updates and improvements, ensuring that policies remain relevant and effective. By integrating evaluation into the public policy process, governments can enhance accountability, improve service delivery, and achieve better social and economic outcomes.

6.    Policy Revision or Termination

Policy revision or termination is the final stage of the public policy process, where a policy is modified, updated, or discontinued based on evaluation results, changing societal needs, or shifting political priorities. Policies are not static; they must remain relevant and effective in addressing emerging challenges, technological advancements, or new evidence. Revision ensures that policies continue to achieve their intended goals, while termination removes outdated, redundant, or ineffective policies, freeing resources for more pressing issues.

The main activities involved in policy revision or termination include analyzing evaluation reports, consulting stakeholders, redesigning policy objectives, reallocating resources, and formally updating or repealing policy frameworks. Policymakers examine the successes and failures of existing policies and determine whether adjustments are required. Stakeholder input is critical to ensure that revised policies are practical, acceptable, and equitable. For example, Nepal periodically revises its Development Plans and sectoral policies, such as the National Health Policy and Agriculture Development Policy, to address changes in demographics, technology, climate conditions, and economic priorities.

Policy revision or termination is influenced by political, social, and economic factors. Changing government priorities, fiscal constraints, or public dissatisfaction may accelerate revisions or lead to policy discontinuation. Effective revision ensures continuity of essential programs while improving their effectiveness, and termination eliminates policies that no longer serve the public interest. By institutionalizing revision and termination, governments maintain a dynamic, responsive, and accountable public policy process that adapts to evolving needs and promotes sustainable development.

Importance of Public Policy