Explian the nature of public policy
Answers
Answer:Nature of Public Policy
We have seen that public policies are the collective actions of the government. Public policies will include laws, rules, regulations, judgments, case studies, government programs etc. Now public policies and their nature are basically of three types – restrictive, regulatory and facilitating policies. Let’s take a look.
1] Restrictive Policies
These policies curtail benefits for certain type of transactions or situations. One example is when the government imposes customs duties. This is done with the view of restricting imports into the country. The government wishes to bolster domestic production and trading and promote exports. So they will impose customs duties on imports to discourage heavy importing. This is a restrictive policy.
2] Regulatory Policies and Practices
These policies and practices aim to regulate the different sectors of an economy. These regulations keep the sector in check and ensure that there are no deviations from the government policies and plans. Take for example the banking sector of the country. It is strictly regulated by the RBI in accordance with the policies of the government. Similarly, the RBI also governs the money market, SEBI governs the stock market etc.
3] Facilitating Policies
The government often has many banks, institutions etc that facilitate and grow businesses in an economy. These bodies help implement policies to facilitate businesses, hence facilitating policies. Take for example the NABARD that facilitates rural credit policies. Another example is the EXIM Bank that implements policies to increase the import-export industry in our country.
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