Policy reform is the process of changing formal “rules of the game,” such as laws, regulations or institutions, to achieve a specific goal such as economic growth or poverty alleviation. It involves a wide range of stakeholders, including governments, businesses and consumers. Effective policy reforms require a deep understanding of the challenges and constraints of implementation, particularly the conflicts and reactions that are likely to occur.
The normal course of policy making is measured and deliberate, taking place over a certain cadence that allows for analysis, reflection, discussion, consultation, compromise, and careful implementation. Policy reform, on the other hand, typically operates with a different cadence that feels hurried and pressured, even if it isn’t in fact rapid. This is often the result of a sense that “something must be done,” whether due to immediacy (e.g., refugee claimants appearing offshore) or an impending disaster (“unless something is done…”).
Framing: How the problem is framed determines what solutions are considered and ultimately adopted. It also affects how the policy is implemented and evaluated. For example, the Clinton-era welfare reform act was framed by emphasizing that welfare recipients needed to get jobs and thus incentivized states to push people off welfare onto jobs – even if those jobs were not sufficiently secure or offered adequate wages.
Deep reforms, especially those that involve changes to institutional arrangements, require advanced analytical and political skills. In addition to the normal processes of developing a mandate for change and building coalitions, they also typically include consideration of matters such as how best to compensate losers for their material losses; what sort of compensation strategy is appropriate to avoid grandparenting current beneficiaries of the status quo; and how to make a reform stick.
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