Economic policy - government policy and decision making
Governments make policy decisions every day. These include whether to invest in infrastructure and which projects to prioritise, whether to intervene in markets and, if so, how, and whether to permit activities on environmental or social grounds.
All of these decisions affect people, whether they are consumers, community members or businesses. Some of the effects are positive (benefits) and others are negative (costs). Some effects flow directly to some stakeholders, while others are external.
Developing and implementing good policy requires careful consideration of all of these effects and robust evidence wherever possible.
When policy interventions are proposed they should be based on a clearly articulated objective. All of the available alternatives for achieving that objective and all of the relevant circumstances should be considered. When this is done, the option that provides the best balance between the desired outcome and the total cost is the one to pursue as long as the benefits are larger than the costs.
Policies should later be evaluated to find out whether their objectives have been met, in which case they may be able to be discontinued or adjusted.
How ACIL Allen Consulting can help you
ACIL Allen Consulting can advise on developing and analysing sound principles and evidence based policy across industries, including:
- conducting benefit-cost analysis of proposed policies and preparing regulatory impact statements
- developing incentive-based policy instruments
- evaluating of existing economic policies.
Our clients include Commonwealth and State government departments and agencies, industry organisations, and large private sector organisations.
For further information about Economic Policy, please contact Jeremy Tustin