INTRODUCTION

The world is changing rapidly with an uncertain future. Policymakers are confronted with
a plethora of policy options, each with its own set of repercussions that are difficult to
predict. For making any policy- decision, one needs information on the specific problem
under study. Information is processed in order to examine data that is meaningful and
relevant for decision making.

An important goal of public policy analysis is to help policy- makers to arrive at informed
policy choices with a reasonable anticipation of what those policy choices will result in. If
policy-making is an art, policy analysis aims to add a bit of science to the art.

POLICY ANALYSIS

Policy analysis is carried out after a policy has been implemented. It is more important to
comprehend the problem than to fix it. The adopted policies are monitored and assessed
to determine whether the policy should be maintained or modified. According to Patton
and Sawicki, the term policy analysis was probably first used in 1958 by Lindblom. Since
then a number of experts on the subject have given definitions.

Jacob B. Ukeles observes that policy analysis is the systematic investigation of alternative
policy options and the assembly and integration of the evidence for and against each
option. It involves a problem-solving approach, the collection and interpretation of
information, and some attempt to predict the consequences of alternative courses of
action.

Patton and Sawicki believe that policy analysis is a systematic evaluation of the technical
and economic feasibility and political viability of alternative policies, strategies for
implementation, and the consequences of policy adoption.

PROCESS OF POLICY ANALYSIS

i) Verify, Define and Detail the Problem

This is the most important of all the steps because many times the objectives are not clear
and in some cases the objectives are contradictory. Policy analysis requires clarity in
identification of problems to be resolved. This will lay a solid foundation for an efficient
and effective outcome of the whole process. Also, the policy analyst needs to know
whether sufficient data is already available on the problem for analysis or more data is to
be collected.

ii) Establish Evaluation Criteria

In order to compare and select among alternatives, relevant evaluation criteria must be
established. One must consider cost-benefit, effectiveness, administrative ease, legality,
and political acceptability. The person or the group interested in the policy might try to
influence the direction or evaluation criteria to be followed. The policy analyst should,
therefore, indicate the criteria, which are most relevant to the parties involved.
iii) Identify Alternative Policies

Once the problem has been clearly identified and evaluation criteria are established, the
policy analyst tries to generate alternative policies. Sometimes combining alternative
policies may reveal new aspects of the problem, which were not thought earlier. Relying
on the past experience of others in similar situations helps to create a more thorough
analysis and understanding. All the options should be considered before settling on a
reduced number of alternatives,

iv) Evaluate Alternative Policies

At this stage, it becomes necessary to evaluate how each possible alternative policy
benefits the criteria previously established. If required, additional data may be collected
for analysis. Given sufficient time, one may go for survey research to gauge the support
for various options. The analyst may feel that the originally stated problem needs to be
revised. New aspects of the problem may be found which are different from that of the
original problem statement. A fast track approach may be followed in revising the
problem.

v) Display and Distinguish among Alternative Policies

The results of the evaluation of possible alternatives along with data on the extent to
which the criteria are met by each alternative might be presented at this stage. The
probabilities associated with the fulfilment of the decided criteria against each alterative
tend to influence the final decisions. It is also important for the policy analyst should to
be aware that his/her biases might influence priority of the policy chosen. One should also
be clear in mind about the difference between technically superior alternative and
politically feasible alternative.

vi) Monitoring the Implemented Policy

Normally, the policy analyst is not involved in the implementation of the policy.
However, the policy analyst should be involved in the maintenance, monitoring, and
evaluation of the implemented policy. Even after a policy has been implemented, there
may be some doubt, whether the problem was resolved and even whether the selected
policy is being implemented properly. These concerns require that policies are monitored
during implementation and decide whether they should be continued, modified, or
terminated.

Conclusion- Policy analysis consists of the study of the action of public authorities within
society from different perspectives. It may not be able to provide solutions to all the
society’s problems but it is a valuable tool in dealing with policy questions. Policy
Analysis helps us to understand the reasons and consequences of public policies. In
broader terms, this framework does allow us to analyse the complexities of the real world.
In an era of globalization, with the increasing complexity of the society, public policy
analysis has gained considerable importance. Today it is influenced by too many elements
which made the process more complex as it facilitated the entry of numerous players into
policy -making.
1. INSTITUTIONAL MODEL: Thomas R. Dye in Understanding Public Policy (2002) believes
that Public Policies have their origin in the governmental institutions are authoritatively determined
by Institutions, which have legitimacy. There is a close relationship between public policy and
government institutions. Unless a policy is formulated and implemented by a government institution,
it does not become a public policy. Government policies have a legal sanction and the citizens are
under obligation to obey them, and can extend to all sections of society.

Institutionalism Model by Theodore J Lowi categorises public policies according to policy making
sub- systems as four arenas of power - (The role of the State) as redistributive arena, distributive arena
(benefits directly to individuals), constituent arena (affects people as political actors) and regulative
arena. The institutional studies usually describe specific government institutions like the structure,
organisations, duties and functions without inquiring into the impact of institutional characteristics on
policy outputs in a systematic manner.

2. GROUP MODEL:- According to the group model, there are interactions among various groups in
the process of public governance. People with common interest come together and form groups so
that they can put forth their demands in a more effective way before the government. In the words of
Carl Friedrich in Man and his Government (1963) , defined public policy as a proposed course of
action of a person, group/ government in a given environment to reach a goal/ realise an
objective/purpose.

Arthur F. Bentley in The Process of Government (1949) explains that a group is ‘a certain position
of the men of a society, taken, however, not as a physical mass cut off from other masses of men, but
as a mass of activity, which does not preclude the men who participate in it from participating
likewise in many other group activities. David Truman in The Governmental Process (1951)
argues that Groups have a shared attitude and become the essential bridge between individuals and the
government.
According to group theory, Public policy at any given point is the equilibrium reached in the group
struggle among different groups. This equilibrium depends to a large extent on the relative influence
of any interest groups. Changes in the relative interest group will have its impact on the changes in
public policy.

3. ELITE MODEL:-A public policy can also be considered as the preference and values of the
governing elite, that is, the values cherished by the elite sections of society.
Wright Mills in The Power Elite explains the ‘Top-Down Approach’ where Public Policies may be
viewed as preference of the governing elites, Elite theory suggest that since the people are apathetic
and ill -informed about public policies, Elites shape Mass Opinion and not vice versa.

The theory has its origins in the theory of elitism and political class
by Gaetano Mosca in The Ruling Class (1896), the theory of mass and elite interaction by Vilfredo
Pareto in The Rise and Fall of
Elites (1901), and Robert Michells in Iron Law of Oligarchy (1915). In their words It is the
responsibility of elites to shape public opinion. The masses, in general, are indifferent to some things,
they cannot shape public opinions. That is why public policy becomes the preference of elites. The
policies flow downward to the masses. Dye argues Elitism is not against the Masses but responsibility
of welfare of the masses rests with the elites.

4. INCREMENTAL MODEL:- According to the model of incrementalism, a public policy is a

continuation of decisions taken by earlier governments with only slight modification. Major changes
are not taken by the new government. CHARLES E. LINDBLOM presented the incremental model
for the first time. Lindblom in The Science of Muddling Through (1959), Still Muddling ,points out
the Five limitations of Rationality in decision making such as lack of full knowledge to calculate all
options, lack of skill to calculate all consequences, inconsistencies in values-when values conflict,
cost of analysis and organisational limitations such as lack of information flows, limited resources and
situational limitations. According to this model, decision makers do not actually review the whole
range of the existing and proposed policies or make serious studies into the cost benefit of alternative
policies.

5. GAME THEORY:- John Von Neumaan and Oskar Morgensternin Theory of Games and
Economic Behaviour (1944) argues that Game Theory is important in strategic decision making in
conflict and co-operation. Game Theory is applicable in conflict situations/competitive problems. Dye
states that Game Theory is an abstract and deductive model of policy making as it does not describe
how people actually make decisions rather how they would go about making decisions in competitive
situations if they were completely rational. Therefore game theory is a form of rationalism applied to
competitive situations where the outcome depends on what two/more participants do. Game model is
generally applied to situations of war and peace, international diplomacy, the use of nuclear weapons,
bargain and coalition building.

6. RATIONAL MODEL - Chester Barnard in The Functions of the Executive (1938) argues that it
is the ‘Zone of Indifference’ compels the decision maker to prioritise clarity, interest of the
organisation, and interest of people. He explains that the Decision /Policy Maker goes through
Intelligence, Design and Choice Activity and it is Bounded Rationality (values of the policy maker)
which that leads to satisfying model. A policy is rational if the difference between the values that it
upholds and the values it sacrifices is positive and greater than policy alternatives. According to this
model of rationality, the value preference of society as a whole can be known and their relative
utilities to the society can be measured. Then it would be possible to select the best available
alternative.

7. PUBLIC CHOICE THEORY- Public choice is the economic study of public policymaking.
Traditionally, economics studied behaviour in the marketplace and assumed that individuals pursued
their private interests; political science studied behaviour in the public arena and assumed that
individuals pursued their own notion of the public interest. Thus, separate versions of human
motivation developed in economics and political science: the idea of homo economicus assumed a
self-interested actor seeking to maximize personal benefits; that of homo politicus assumed a public-
spirited actor seeking to maximize societal welfare.

But public choice theory challenges the notion that individuals act differently in politics from the way
they do in the marketplace. This theory assumes that all political actors—voters, taxpayers,
candidates, legislators, bureaucrats, interest groups, parties, and governments—seek to maximize their
personal benefits in politics as well as in the marketplace. James Buchanan, argues that individuals
come together in politics for their own mutual benefit, just as they come together in the marketplace;
and by agreement (contract) among themselves they can enhance their own well- being, in the same
way as by trading in the marketplace.

8. PROCESS MODEL- Political processes and behaviours are a central focus of political science.
Political science studies the activities of voters, interest groups, legislators, presidents, bureaucrats,
judges, and other political actors. One of the main purposes is to discover patterns of activities—or
“processes.” Political scientists with an interest in policy have grouped various activities according to
their relationship with public pol- icy. The result is a set of policy processes.

The process model is useful in helping us to understand the various activities involved in policy
making. We want to keep in mind that policy- making involves problem identification (defining
problems in society that deserve public attention), agenda setting (capturing the attention of
policymakers), formulating proposals (devising and selecting policy options), legitimating policy
(developing political support; winning congressional, presidential, court approval), implement- ing
policy (creating bureaucracies, spending money, enforcing laws), and evaluating policy (finding out
whether policies work, whether they are popular).
Nehruvian vision:
Introduction: The term ‘Nehruvian’ simply means a philosophy or ideology
espoused by Jawaharlal Nehru, the first Prime Minister of Independent India.
Politically, the term ‘Nehruvian’ means a steadfast commitment to ‘secularism’,
‘scientific temper’, and ‘inclusive liberalism’. In economic terms, ‘Nehruvian’
stands for active ‘State intervention’ in formulating the direction of the ‘country’s
economy’, and also ‘planned development’.

Socially, the term Nehruvian means a commitment to the social well-being of the
oppressed communities. ideology is a set of ideas or principles, which seek to
explain a phenomenon in particular, either to support or reject a particular socio-
economic-politico-cultural order. Jawaharlal Nehru is regarded as a ‘visionary’
leader who thought about or planned the future of India with imagination and
wisdom. With the adoption of the Constitution on 26 January 1950, Nehru
embarked on an ambitious program of economic, social, and political reforms.

NEHRUVIAN VISION AND GOVERNING POLICIES:

For Nehru, as has been observed, modernization was the national philosophy, with
seven goals: national unity, parliamentary democracy, industrialization, socialism,
religious harmony, development of the scientific temper, and non-alignment.
Nehru advocated “State-sponsored industrialization, increasing the wealth-
producing capacity and using atomic energy for civilian use”

Nehru on Economic Policies

Nehru advocated a mixed economy, where the government-controlled public sector

would co-exist with the private sector. He was the major brain behind the
Industrial Policy Resolutions of 1948 and 1956 and the promoter of the concept of
the public sector. He wanted the policy to be oriented towards science, and in
particular, Atomic Energy. Nehru laid the foundation of the rapid industrialisation
of the country and it was due to his vision and efforts that today India is regarded
as one of the major technologically advanced nations of the world. Nehru
advocated that sufficient autonomy should be given to public enterprises. Nehru’s
conviction was that the public sector could play an important role in wiping out
poverty and economic backwardness in the country to a significant extent. He also
attached importance to the role of the private sector.

Nehruvian Vision on Agriculture Policies

Under the leadership of Nehru, the government initiated agrarian reforms alongside
rapid industrialisation. He realized, as has been observed, that for industrialization
to be viable, it needed a supportive agrarian economy and a small-scale industrial
base. Agricultural production expanded until the early 1960s, as additional land
was brought under cultivation and some irrigation projects began to have an effect.
During Nehru’s leadership, Green Revolution was a huge success story. The
Revolution was seen as an effort to diversify and increase crop production. It
transformed Northern India into a large producer of High Yielding Variety of
Wheat.

Nehru’s Views on Public Administration

Nehru’s contribution to the study and application of the science of administration

is overwhelming. He had a great interest in bringing about administrative reforms
in the country. Nehru is credited for setting up the structure of implementing
certain policies and the choice of personnel to maintain the structure. Nehru
anticipated the ills to which governance is vulnerable: corruption, administrative
delays, and conniving links between unscrupulous officials and the people. Nehru
was the driving force behind Community Development and Panchayati Raj
programs. Nehru believed that these could help in bringing administration nearer to
the people. Nehru wanted to strengthen these institutions by giving them real
powers.

Nehru's Views on Defence and Foreign Policies

Nehru was keenly sensitive regarding the geostrategic and military strengths and
weaknesses of India in 1947. His greatest contribution was his policy of Non-
alignment during the Cold War. It meant that India maintained neutrality towards
both Blocks. His idealistic approach focused on giving India a leadership position
in Non-alignment. Nehru has been regarded as the sole architect of Indian foreign
policy. He sought to build support among the newly independent nations of Asia
and Africa in opposition to the two hostile superpowers contesting the Cold War.
On the international scene, Nehru was an opponent of military action and of
military alliances. Emphasizing that the country’s defense depended more on its
morale than on weapons, he made a case for resolving contentious issues between
India and Pakistan. He was firmly against India intervening in disputes between
other countries, except with the consent of the disputants.

CONCLUSION- Although Nehru attempted to lay down the country’s basic

policies, the structures for implementing them, and the principles of administration,
he was unable to give a complete shape to the fundamental changes in the system
of administration, which he thought was essential for post-independent democratic
governance. Despite commending Appleby’s recommendations for changes in
India’s administrative system, Nehru was not able to do much to bring about a
complete change.

Nehru’s thinking and personal dedication and the goals he held supreme, even
though could not be put into practice in letter and spirit, would continue to remain
a source of strength and inspiration in building a better India. Nehru is regarded as
the builder of modern India. He has gone down in history as an outstanding
statesman and political leader who devoted his life of passionate quests and
gigantic endeavours to national development.
Social movements are universal and can be found in all societies. Their prevalence and
nature vary depending on time. They have also played an important role in society by ruling
and administering power. In modern times, they have also played a critical role in
undermining authority and foreign rules. The complexity of India's public policy process has
evolved over the years. It has become more challenging to formulate and implement policies
due to the various factors that affect their implementation. The Indian State's changing role
has increased the involvement of various stakeholder groups in the policy process. This has
also affected the way the policy is formulated and implemented.

Public Private Partnerships (PPP), Market Economy, and Civil Society Organisations (CSOs)
influence the processes of public policy. This has contributed in making the public policy
process more complex, decentralized, participatory, responsive, accountable, transparent,
flexible, and democratic.

The role of private agencies (both national and international) has increased in a market
economy. The role of citizen participation in the political process is important because it
determines the relationship between the government and its citizens, and how they interact
with the political system. Participant political cultures (unlike parochial and subjective
political cultures) are societies with a cognitive orientation towards both input and output
aspects of the system. The plural/multicultural and diversified society in India is based on
class, caste, gender, ethnicity, cultural, religious, and regional variations which influence the
policy content and policy processes to a large extent.

Role of Social Movements

Grassroots social movements, which are non-party political formations and social action
groups whose long-term purpose is to work toward democratizing development and altering
societies, played a key role throughout the 1980s, according to Rajni Kothari (Non-Party
Political Process,1984). Social movements demand that the Fundamental Rights and
Directive Principles of State Policy be implemented in a firm and just manner, ensuring
rights, liberty, equality, social justice, and freedom. According to Kothari, political parties
abandoned the movement portion of their operations immediately after independence,
focusing instead on becoming electoral machines with improvised arrangements.

Rajni Kothari in his 'Reflections on the People's Movements and Grassroots Politics in India'
(1984) delineates the trend of what he calls 'the non-party political process'. In these
grassroots movements, 'the struggle is not limited to economic and political demands but is
extended to ecological, cultural and educational issues'. Therefore, social movements
question the shift from the welfare state to the developmental state which disintegrates
livelihood systems resulting in dispossession, deprivation, landlessness, and distress
migration.
Refer to the Anti-Corruption Movement led by Anna Hazare in 2011 which subsequently got
split (in September 2012) into (a) the parent non-party movement under Anna Hazare, and

(b) the Aam Aadmi Party (AAP) led by Arvind Kejriwal (While the elders led by Anna
wished to keep the non-party political character of the movement, the younger cohorts led by
Kejriwal parted company to form a new political party as a vehicle of alternative politics
turning its back to the prevailing features of corrupt, criminalised, and non-participatory high
command'-dominated party politics).Social Movements represent an important force for
social change and it is important to understand the important role they play in influencing the
content and process of public policies.
D. L Sheth in his article 'Micro-Movements and Future of Politics' theorises new social
movements in India as 'micro-movements' and sees them as harbingers of 'new politics
setting a trail of alternative politics to the prevailing patterns. Pranab Bardhan argues that
movements need to be understood in the context of compromise and conflicts among
different interests.

Another important role of social movements is in the dual role they play as explained by
Raka Ray and M F Katzenstein in 'Social Movements in India: Poverty, Power and
Politics, 2005'. They argue that social movements expose the class character of the state
while demanding a democratic state that facilitates multi-dimensional liberation however
their other role is simply reformative.

Examples.

 Trade union Movements

 Tribal Movements (Bodo Movt, jharkhand Movt)
 Women's right Movt (Sewa, Chetna Mission)
 Dalit Movts
 Environmental Movt (Chipko Movt, narmada bachao)
 Human Rights Movts

Influence of these Movements on Government Policy-

 Immediately after Independence, the intermediary system of land tenure was

abolished in India. The Jagirdari Abolition Act, 1949 in Hyderabad is a significant
example,Land reforms have been recognised and accepted as an important instrument
of economic and social change.
 Agricultural Price Policy was made to get the farmers and producers the due rate for
the agricultural crops.
 On the recommendations of the Rural Credit Review Committee, the'small Farmers
Development Agency (SFDA) and the Marginal Farmers and Agricultural Labourers
Development Agency (MFDA) were formed with a view to improve the economic
conditions of small and marginal farmers and agricultural labourers.
 For ensuring adequate and timely marketing of the agricultural products and to save
the farmers from the exploitative measures of the Middlemen', the State governments
have established Agricultural Marketing Boards.
 The Right to Free and Compulsory Education Act 2008, New Child and Adolescent
Labour (Prohibition) Act 2012,
 The rights-based approach of the state that aims at promoting an inclusive society, the
poverty alleviation programmes, and social welfare measures such as Sarva Siksha
Abhiyan (SSA), National Health Mission (NHM), Right to Food (NFS) and Mahatma
Gandhi National Rural Employment Guarantee Act (MGNREGA).
 Methods of evaluation and agencies - the Planning Commission (which is now The
National Institution for Transforming India (NITI) Aayog).

Conclusion- Social movements contribute to the emergence of a radically new social,

economic and political structure. The majority of social movements strive to create new ideas
which are expected to be adopted and implemented by the leaders of the party. Social
movements are clearly not an individual action, but collective action
Introduction: - In June 1991 , the Narasimha Rao government gave a new direction to
India's economy. This direction was implemented in the form of economic reforms across the
country in the form of liberalization , privatization and globalization . ) known as LPG model
( Under this new industrial policy, the government allowed private companies to enter many
such sectors , which were earlier reserved only for the government sectors. The main reason
behind implementing this new economic policy was the continuous negative balance of
payments BOP) .

1991 after independence proved to be a milestone in the economic history of India . Earlier
the country was going through a severe economic crisis. And this crisis forced the policy
makers of India to implement the new economic policy. The situation arising out of the crisis
prompted the government to formulate policies aimed at bringing about price stabilization
and structural reforms . Stabilization policies were aimed at correcting vulnerabilities ,
thereby correcting the fiscal deficit and the inverse balance of payments. Could do Structural
reforms did away with the rigid rules that led to reforms. Also applied in various sectors of
the Indian economy.

 Main Objectives of the New Economic Policy of 1991 - New Economic Policy by the then
Union Finance Minister Dr. Manmohan Singh in 1991 is as follows:

I. Along with putting the Indian economy in the arena of ' globalisation ' , it was to be in line
with the market trend.
II. To bring down the rate of inflation and remove the imbalance of payments.
III. To increase the rate of economic growth and to create adequate foreign exchange
reserves. IV. Along with achieving economic stabilization, economic transition was to be
made to a market compliant economy by removing all unnecessary restrictions. V. Allowing
international flow of goods , services , capital , human resources and technology by
removing restrictions .

(1) Liberalisation: Simply speaking liberalisation means to free to economy from the
controls imposed by the Govt. Before 1991, Govt. had put many types of controls on Indian
economy. These were as follows: (a) Industrial Licensing System (b) Foreign exchange
control (c) Price control on goods (d) Import License.

Due to all these controls, the economy became defective. The entrepreneurs were unwilling
to establish new industries. Corruption, undue delays and inefficiency rose due to these
controls. Rate of economic growth of the economy came down.

Steps taken for Liberalization:

(i) Independent determination of interest rate: Under the policy of liberalisation interest
rate of the banking system will not be determined by RBI rather all Banks are independent to
determine the rate of interest. (ii) Increase in the investment limit of the Small Scale
Industries: Investment limit of the small scale industries has been raised to Rs. 1 crore. So
that they can modernize their industry. (iii) Freedom to import capital goods: Indian
industries will be free to buy machines and raw materials from foreign countries to expand
their business (v) Freedom for expansion and production to Industries: Industries are free
to expand and produce under the policy of liberalisation. Previously, the govt. used to fix the
maximum limit of production capacity. No industry could produce beyond that limit. Now
the industry can produce freely. Also they can produce anything depending on the demand.
(vi) Freedom from Monopolies Act: According to Monopolies and Restrictive Trade
Practices (MRTP) Act, all those companies having assets worth Rs. 100 crore or more were
called MRTP firms and were subjected to several restrictions. Now these firms have not to
obtain prior approval of the Govt. for taking investment decision. (vii) Removal of
Industrial Licensing and Registration: Previously private sector had to obtain license from
Govt. for starting a new venture. In this policy private sector has been freed from licensing
and other restrictions.

(2) Privatisation: privatisation means permitting the private sector to set up industries which
were previously reserved for the public sector. Under this policy many PSU’s were sold to
private sector. In privatisation, the Govt.’s role is only reduced it does not disappear.
privatisation is the process of involving the private sector-in the ownership of Public Sector
Units (PSU’s). The main reason for privatisation was in currency of PSU’s are running in
losses due to political interference. The managers cannot work independently. Production
capacity remained under-utilized. To increase competition and efficiency need of
privatisation was felt.

Step taken for Privatisation: 1. Sale of shares: Indian Govt. has been selling shares of
PSU’s to public and financial institution e.g. Govt. sold shares of Maruti Udyog Ltd. This
was the private sector will acquire ownership of these PSU’s. The share of private sector has
increased from 45% to 55%.

2. Disinvestment in PSU’s: The Govt. has started the process of disinvestment in those
PSU’s which had been running into loss. It means that Govt. has been selling out these
industries to private sector. Govt. has sold enterprises worth Rs. 30,000 crores to the private
sector. 3. Minimisation of Public Sector: Previously Public sector was given the importance
with a view to help in industrialization and removal of poverty. But these PSU’s could not
able to achieve this objective and policy of contraction of PSU’s was followed under new
economic reforms. Number of industries reserved for public sector was reduces from 17 to 4.

(3) Globalization: Globalisation may be defined as integrating the

economy of a country with the economies of other countries under
conditions of free-flow of trade and capital and movement of persons
across the borders. Economic reforms aim at close association of India
economy with world economy. There will be an increased co-operation of
India economy with world economies across the world. Capital and
technology will flow from the developed countries of the world towards
India.

Steps taken for Globalisation:

(i) Reduction in tariffs: Custom duties and tariffs imposed on imports

and exports are reduced gradually just to make India economy
internationally beneficial. (ii) Long term Trade Policy: Forcing trade
policy was enforced for longer duration. (iii) Partial Convertibility:
Partial convertibility can be defined as to sell foreign currency like dollar
($) or pound, for foreign transaction at a price determined by the market.
Partial convertibility of Indian rupee was allowed to achieve the objectives
of globalisation.
 (iv) Increase in Equity Limit of Foreign Investment: Equity limit of
foreign capital investment has been raised from 40% to 100% percent. In
47 high priority industries foreign direct investment (FDI) to the extent of
100% will be allowed without any restriction. In this regard Foreign
Exchange Management Act (FEMA) will be enforced.

Introduction- Liberalism is a theory of reforms, for it has stood for reforms in economic,
social and political fields. It is a theory of liberty, individual liberty, individual autonomy, for
it has argued in favour of the development of human personality. It is a theory of democracy,
for It has favoured constitutional government, government based on the consent of the
people, rule of law, decentralization, free and fair elections. in political sphere, it stands for a
democratic polity, individual rights and liberties, responsive and responsible government,
free and impartial judiciary and the like. For example, Adam Smith, a liberal thinker,
emphasized on the individual urge to maximise economic interest or to achieve material gains
and thereby improve their living standards or fortunes.

Broadly, a Liberal conception of the individual and the State consists of at least four basic
elements.

 it is individualistic. It asserts the moral primacy of the person against the claims of
any social collectivity.
 It is egalitarian. It confers on all individuals the same moral status and denies
relevance to any legal and/or political order of difference in moral worth among
human beings.
 it is universalistic. It affirms the moral unity of human species and accords a
secondary importance to specific historical associations and cultural form.
 Fourth, it is meliorist. It acknowledges the corrigibility and improvability of all social
institutions and political arrangements.

Features. of Liberalism

 Individual Liberty: Liberalism is essentially an ideology of liberty. Its love for

individual liberty is unquestionable. It has become libertarianism. For the liberals,
liberty is the very essence of human personality. It is a means to one's development.
 Individual-centred theory: Liberalism begins and ends with individuals. For liberals,
individual is the centre of all activities, the focal point, individual is the end while all
other associations, including the state, are the means, which exist for the individual.
An individual Is the centre around which all things move.
 Capitalistic Economy: Liberalism advocates free-market economy, te, the capitalist
mode of economy. It believes in the private propeny system, regarding property rights
as sacrosanct, maximum profit as the only motive: capitalist mode of production and
distribution as the only essence; the market forces as the controling means of
economy. Individual and the State
 Limited State: Liberalism advocates the concept of imited state. The liberals view the
state as a means for attaining the good of the individual. They oppose every type
oftotalitarian state. They are of the opinion that a more powerful state means a less
free individual. Locke used to say because the functions of the state are limited, so are
limited its powers.

Policies in a liberal state:

  People present their demands and state accordingly makes policies.
 Policies made are neutral, that is, that are not favorable to any particular group or
community.
 Policies are made only to facilitate and not to regulate.
 Policies must ensure equality.
 Policy formulation includes all areas- developmental and non-developmental.

Policy analvsis wrt liberal theory of state:

 It started with an ancient theory that stressed earthly life and materialism.
 Modern Liberalism of Social Reforms: Modern liberalism in India took roots during
the social reform movements of the middle and late nineteenth century. Raja Ram
Mohan Roy, Gopal Krishna Gokhle and others launched a systemic attack on anti-life
social practices like sati and ban on widow remarriage through Arya Samaj and
Brahmo Samaj movements.
 With the rise of demands for independence from the British, the social reform
liberalism gave way to the liberalism of political independence.
 Liberal element in Indian Constitution: liberalism was used to justify a constitutional
amendment sought to add the freedom of the press and publication expressly to the
current Article 19(1)(a) guarantee of free speech and expression. Once again it was
K.T. Shah who very strongly argued that for the Constitution of India to be called a
"progressive liberal constitution"
 Liberalism of Political Freedom: Under the banner of Congress Party, all activists
were engaged in discussion about the political and economic system that India should
adopt after independence. The socialist Sect formed a separate Congress Socialist
Party and the liberal group formed the liberal group but they all worked under the
umbrella of the Congress Party. India started with a Soviet like welfare state with the
five year plans and a planning Commission, however non essential things were left to
the private trade and industry.
 Liberalism of economic freedom: After the reforms in the 1990s, the role of the state
reversed, from a welfare state India transformed into a liberal state with minimum
intervention. This marks the start of India's exponential growth in terms of its
economy.
 New liberal organisations have come up in the 1990s to bolster the efforts of the
earlier ones. The Association of Youth for a Better India in Mumbai (AYBI), Loksatta
in Hyderabad, Liberty Institute in New Delhi.
 Neo-liberal ideas: The era of the privatisation of everything has made the Indian
economy one of the fasted growing in the world and most of this wealth has gushed
up to India's Corporate Elite. The scenario changed in the late 1970s and 1980s
because of a huge build-up of liquidity in the global financial system. The growing
culture of startups, MNCs are also the infusion of neo liberal ideas absorbed by India.
 Liberal Democratic Framework:

1. Property Rights: Even though Right to property was removed from the fundamental
rights to correct the historical inequalities present during the time of independence, it
was made into a legal right through article 300A, to bring together right to property
and equality.
2. Political Rights India has a system of universal adult franchise, where each individual
above 18 is entitled to vote.
 3. Civil Rights: Our constitution enshrines various provisions to ensure civil rights to
minorities. Art. 17 which abolishes untouchability, Art, 25 to 28 which protect the
rights of religious minorities, etc. ensure unity in diversity and prevent the tyranny of
the majority. Judiciary has also played a proactive role

Introduction- The Marxist Perspective, also commonly regarded as the class theory of State,
is basically a perspective, which has evolved from the writings of Karl Marx and Freiderick
Engels and some other classic Marxist theorists such as Vladimir Lenin, L. Trotsky and A.
Gramsci. Marxism has not been to understand the State in itself, but rather to explain it as a
result of a more fundamental reality, which is usually economic in character. Thus, it is the
functional role of the State within the economy, rather than its Constitutional or institutional
form, which is significant. Marxism is the political philosophy of the working class as
liberalism is the political philosophy of thit capitalist class.

Policy Analysis wrt Marxian theory of state-

Applying Marxism to Indian conditions today is an exciting and challenging endeavour. India
Is one of the major countries where mass communist parties exist and where the traditions of
the left movement are still a vital force. Marxists believe that if India's national economy has
been anti - poor over these approximately seventy years, so has been India's democratic state.
For Marxists, the complexity of class formation, class configuration and class action are
central elements for an understanding of the constraints on the state and capitalist
transformation. Though their perception differs, the specificities of its relationship to
imperialism occupy centre stage in this debate.

Analysis of the state is understood both in terms of the long term structural compulsions of
the economy in the international capitalist system and its division of labour and also the
coalition arrangements and the changing balance in the class coalitions dominating the state.
M.N. Roy and R. Palm Dutt were the first Indian scholars who attempted a Marxist analysis
of Indian politics. Both Roy and Dutt were the first Indian scholars who attempted a Marxist
analysis of Indian politics. Both Roy and Dutt tried to relate the political structure and
movements to the structures at the economic level.

Policies in a Marxist State.

 Policies are made to serve the interests of few people, mainly the dominant class.
 Policies are usually coercive towards the lower and backward classes
 The policies will help in the development of particular classes.
 The implementation of policies will require force.
 Demands of lower classes will be suppressed, if necessary even by the use of force.

Recent changes

Liberalization of the economy during the last five years in particular not only has changed the
nature and meaning of India's five year plans, it has also changed considerably the character
of the Indian state and ideological basis of Indian politics. Public sector has become
extremely weak and multinationals are substituting them. Trade unionism has become
somewhat weak. Private sector is no more a polluting arena of employment. A revivalistic
politics has also prospered along with liberalization of the economy and weakening of the
state. The nature of the Indian state is double-edged because on the one hand is democratic
institutions motivate the downtrodden to participate in the electoral process, but on the the
hand, the elected government cannot bring about their emancipation from poverty and
dehumanisation. The fact is that bourgeois political parties are supported by the lowest
sections of Indian society, and this is an irony and contradiction of the Indian political
system.

Fifty three years after independence and 36 years after the CPI(M) adopted its programme in
1964, when we look back at the way the State and society in India has developed, an
inescapable really is the relentless development of capitalism.

The development of capitalism in agriculture has assumed certain specific forms and led to
changes in the relations of production. While increasingly sections of the rich peasants
identity with the capitalist landlords, at the same time, they hold powerful influence among
other sections of the peasantry. The middle and small peasants are bound with the rich
peasants through caste and social and cultural ties.

Illustrations

According to C. P. Bhambri, property owners, both the rural and urban sectors have forged an
alliance to gavern the country and make use of the political system for protection of their
interests. Mandsts emphasise that India has continued to be a class state.

 DPSP: Principal of social justice: social equity and social securty followed by Indian
state, Socio-economic justios, which is the main objactive of the State as prescribed
by the Constitution, is emphasised in the Preamble ta the Construsion. Aricle 39, 39,
42 6 43. In Industrial legislation and adjudication, Articles 38, 39, 41, 42, and 43 are
particularly crucial. They serve as the Magna Cartal of industrial law or is foundation.
These obligations include the Central and State gavemments' duty to ensure social
order and living wages in fine with the economic and poltical circumstances of the
nation.
 Development of trade unionism. Anolher factor that acosierated the expansion al
labour laws was the trade union movement, which emerged from the industrial
revolution. They pushed for the protection of working-class interests, and as a result.
laws were passed that dealt with wages, working conditions, womer's rights, social
securty, and other issues. However, as a result of their expansion, laws addressing
industrial disputes, their prevention and resolvion, and trade union privileges and
rights also had to be passed.
 Establishment of the international labour organisation (ILO. The establishment of the
International Labour Organization in 1818 had a significant impac on how labour
laws developed throughout the world.
 Fundamental Rights (Part III of the Indian Constiution) Artide 14, 16, 19, 21, 23 & 24
further ensures are all intended to be shielded from arbitrary state acton
 Government of India:

i. Ministry of Labour 6 Employment

ii. Line Ministries: Ministry of Rural Development

 Mixed Economy Model: Althe outset, under the influence of the frst Prime Minister
of India - Jawaharial Nehru - the nation adogted the model ol mixed econorry. non-
alignment in foreign policy and seculansm in state building as its guiding principles.
  Workers' Organizations: Bharatya Mazdoor Sangh (BMS), Indian Natonal Trade
Union Congress (INTUC): All India Trade Union Congress (ALTUC) are working to
uplift the workers' interest.

Concept of Welfare State: The purpose of welfare is to assist individuals in need. Amartya
Sen argues that enhancing an individual's capabilities results in the greater likelihood for
individual success and society's success. Andrew Heywood gives the following arguments in
favour of welfare: It promotes social cohesion and national unity, enlarges freedom in the
sense that it safeguards people from poverty and provides conditions in which they can
develop and realize their potential and serves as a redistributive mechanism that promotes
greater equality and strengthens a sense of social responsibility.

Welfare Theory of State: A welfare state is a concept of government where the state plays the
primary role in the protection and promotion of the economic and social well-being of its
citizens. It is based on the principles of equality of opportunity, equitable distribution of
wealth, and public responsibility for those unable to avail themselves of the minimal
provisions for a good life.

The sociologist I.H, Marshall (1950) identifies the welfare state as a distinctive combination
of democracy, welfare, and capitalism. Interest in welfare emerged during the nineteenth
century as industrialization created a spectre of urban poverty and social division that, in
different ways, distributed conservative, liberal, and socialist politicians. It was
predominantly in the late nineteenth and early twentieth centuries that an organized system of
state welfare provision was introduced in many countries. It is a concept of government in
which the state plays a key role in the protection and promotion of the economic and social
well-being of its citizens. It also focuses on the governmental responsibility for those who are
unable to avail themselves of the minimal provisions of a good life. It provides a social
security net which may include education, housing, sustenance, healthcare etc.

Policies in a welfare state:-

 Policies provide solutions to social problems.

 Policies provide protection to vulnerable sections.
 Policies are made to provide social security, social justice and equity, as well as
economic protection.
 It provides equality of opportunity.
 Policies are based on collective demands and address the problems of urbanization,
environment, health and education.

Policy analvsis wit to theory of Welfare State:

Through the instrument of welfare, positive liberalism used the power of the state to modify
the play of market forces in at least three directions:

i) by guaranteeing individuals and families a -minimum income irrespective of the market

value of their work or property,
il) by narrowing the content of insecurity by enabling individuals and families to meet certain
social contingencies such as sickness, old age and unemployment, and lil) by ensuring that all
citizenswithout distinction of status or class are offered the best available agreed range of
social services.

Without ensuring equality of opportunity and equitable distribution of wealth, the welfare of
the marginalised and deprived sections of society cannot be ensuled. India is described as a
"sovereign socialist secular democratic republic" in the Preamble of the Indian Constitution.

Welfare state is also guided by the philosophy of Gandhiji like "Sarvodaya through
Antyodaya* (welfare of all, through welfare of the weakest); Gandhiji's Talisman;
Trusteeship principle etc. Welfare state and compassion towards the weaker section is
necessary for development of human and social capital for "Sab Ka Saathi Aur Sab KaVikas"
for one united and robust India. The aim of governance cannot be met without having the
concept of welfare state and developing compassion towards the weaker sections.

Indian Attempts towards Welfare State: India being a democratic country with sociallat
vision, it has adopted a federal system having division of authority between union and state
govemments and a mixed economy which allows private finance along with governmental
endeavors.

 Welfare schemes for the poor, backward classes and scheduled castes and scheduled
tribes.
 Acts for Minimum wages and equal wages for equal work for both men and women.
 Schemes to boost rural employment like Mahatma Gandhi National Rural
Employment Guarantee Act (MGNREGA) and Swaran Jayanti Gram Swaroigar
Yoina.
 Right To Education Act 2009 and Sara Siksha Abhiyan to universalize education.
 Food Security Ordinance 2013.
 Pradhan Mantri Jan Dhan Yojna 2014- National mission on financial inclusion
Housing for All scheme was an initiative of the Indian govemment to establish
housing facilities for slum dwellers.
 Make in India is a Government of India scheme launched by Prime Minister Narendra
Modi in 2014 intended to boost the domestic manufacturing sector and also augment
investment into the country.
 Atal Pension Yoina 2015- Those subscribers who contribute between the age group of
18 to 40 years get a fixed amount of pension within a range
 Ayushmaan Bharat 2018- national public health insurance fund of the Government of
India that aims to provide free access to health insurance coverage for low income
earners in the country.
 Atmanirbhar Bharat 2020- The Prime Minister announced that an Atmanirbhar Bharat
or a self-reliant India should stand on the following five pillars: Economy
Infrastructure, 21st-century technology-driven arrangements and system, Demand,
Vibrant Demography
• One Nation One Ration Card scheme

Conclusion: The welfare state is the mandate of any mature democracy. Therefore, both
citizenry and government should strive to make society more inclusive and equitable. While
equality of opportunity provides all the sections of the society a level playing field, equitable
distribution of wealth empowers them to maximise their productivity and contribution in
society. Government schemes like Stand Up India, Startup India, Jan Dhan Yojana and
policies like land reform policies, reservations for the marginalised sections in job
opportunities are some of the steps being taken by the government in this direction to ensure
equitable distribution of wealth and to provide equality of opportunity.

Herbert Simon developed the rational model by separating values from facts and incorporating new
scientific techniques. He argues that rational decision making process involves three kinds of
activities- intelligence activity, design activity and choice activity. Intelligence activity involves the
searching the problem for decision making, design activity identifies and develops of all possible
course of action and choice activity involves the selecting of one particular course of action. He puts
forward the concept of ‘bounded rationality’ while stressing the limitations of individuals and
organizations to act in a complete rational manner.

Various steps of Rational Decision Making Models are:

  Framing or identifying the problem is the first step of rational decision-making.

  Establishing the criteria of decision by measuring elements like stakeholders who are
involved, their requirement, preferences and other relevant facts.
  Ordering the various information by assessing their relevant weights.
  Exploring all the policy alternatives that are available.
  Evaluation of all alternatives on various parameters such as feasibility, possible outcome
etc.
  Calculation of the cost-benefit ratio of each policy alternative.
  Selection of the most suitable and efficient policy alternative and state it as decision.
  Implementation of the policy or decision.
  Evaluation of the results of the decision.

Assumptions of the Rational Model of Decision Making

The model assumes that the people choose the best alternative by assuring the minimization of costs
and maximization of benefits among various policy alternatives. As such, this model is based on
certain assumptions. These are as follows:

  Decision makers have the correct knowledge about the problem and value preferences of
the people.
  They have all the related factual information to measure cost- benefit analysis of the policy
alternatives.
  Decision makers have the cognitive ability to process the data and evaluate all possible
combinations against each other.
  They have the logical ability to choose the best possible alternative.

Herbert Simon argues that the condition of perfect rationality is not always possible.
According to Simon, “The Rational-Economic Model (Classical decision theory) assumes the
manager faces a clearly defined problem, he knows all possible action alternatives and their
consequences, and then chooses the optimum solution. Whereas in Administrative Model
(Behavioural), the Behavioural decision theory accepts the notion of bounded rationality. It assumes
the manager acts only in terms of what is perceived about a given situation, and then chooses a
satisfying solution” (Simon 1947)

His concept of ‘bounded rationality’ provides holistic understanding of how decisions are taken.
Simon argues that decision maker lack the basic cognitive ability and because of many other
limitations like time constraints, lack of information, organizational procedure etc. decision makers
are not able to obtain optimal decisions which can maximise benefits.
In such cases, the decision maker makes ‘good enough’ or most suitable course of action basing on
his/ her rationality. The rationality here implies the acknowledgment of one’s own limitations than
opting for the most suitable possible alternative.

Incremental Model - The main advocate of this model is Charles E. Lindblom as discussed in
his book ‘Policy Making Process’. This model while criticising the rational decision making
approach argues that public policy is a continuation of previous government activities with
only incremental modification.

According to Lindblom, policy makers do not annually review the whole range of existing
and proposed policies because of the constraints of time, intelligence and cost it involves.
New policies are introduced only at smaller level for the first time than it is subsequently
developed by the successive governments. Policy makers are more likely to legitimise the
previous policies than bringing about radically new policies because of uncertainty involved
in the latter. This approach is also politically expedient to avoid conflicts among different
interest groups. Modification of existing policies will fulfil the particular demands and
maintain stability of the political system. As such the incremental approach which he
considered as the branch method of decision making involves a process of ‘continually
building out from the current situation, step by step and by small degrees’ as different from
the root approach of rational decision making,

This approach is one of the most popular approaches easily adopted by the policy makers. In
the absence of any agreed upon societal goals or values, it is easier for the government to
continue existing programmes rather than engaging in overall policy planning towards
specific societal goals.

In his later writings, Lindblom incorporates the critique of his theory of incremental pluralism
while accepting that models based on pluralistic decision making is biased towards powerful
individuals and interest groups. He made a distinction between incrementalism as a pattern
and incrementalism as a policy analysis. In his article “Still Muddling, Not yet through”
(1979), Lindblom makes a case for analytical incrementalism as a method of securing power
in the pluralistic society.

In this work, he discusses three main forms to incremental analysis which are as follows:

I. Simple Incremental Analysis: In this form of analysis, only those policy alternatives which
are marginally different from the existing policies are discussed.

II. Strategic Analysis :There are many constraints in complete analysis of policy alternatives
and as such many methods are used to make better choices. These are operation research, trial
and error learning, and system analysis, management by objectives and programme
evaluation and review techniques.

III. Disjointed Incrementalism: In this analytical strategy, six methods are followed for
simplification of problems.

  Restraining the analysis for a few familiar alternatives,

  Interlinking values and policy goals with empirical analysis of problems,
  Directing attention to the removal of problems than achieving of goals,
  Bid-and-error learning,
   Evaluating a restricted number of options and their outcomes,
  Dividing the analytical work to many partisan participants in policy making.
 The notion of disjointed incrementalism was introduced by Lindbolm and Davis
Braybrooke in their work ‘A Strategy of Decision’ (1963).

The term policy cycle refers to the recurrent pattern shown by procedures that ultimately lead
to the creation of a public policy.

The concept of policy cycle was developed by Harold Lasswell in the USA in the 1950s.
Lasswell developed the concept of policy cycles, which he broke down into seven
fundamental stages in decision-making.

At present, there is a consensus in the research community that the model should be divided
into five major stages: agenda-setting, policy formulation, public policy decision-making,
policy implementation and policy evaluation. Although all five are important, three of them –
agenda-setting, formulation and implementation – are crucial to understanding policy cycles.

Agenda-setting, the first stage in a policy cycle, refers to the processes by which social
conditions are recognized and considered to have evolved into a “public problem”. Agenda-
setting is a critical stage in the policy cycle since its dynamics have a decisive impact on the
whole policy process and the policies resulting from it.

Once the existence of a problem and the need to remedy it have been acknowledged, the next
stage in the policy cycle is policy formulation. It involves identifying and assessing possible
solutions to policy problems, weighing their pros and cons, and deciding which should be
accepted and which rejected

policy makers are limited in their room to manoeuvre by constraints of two types. Substantive
constraints are related to the nature of the problem itself and entail considerable use of state
resources to resolve a problem. Procedural constraints, which also affect all aspects of the
formulation stage, may be characterized either as institutional, based on government
procedures, or as tactical, based on relationships between various actors or social groups.

The third important stage is implementation, or the process of putting a public policy into
effect. This is when a decision is carried out through the application of government directives
and is confronted with reality. Civil servants' personal tendencies (ideologies, interests,
thinking, etc.) can influence their perceptions and even their intentions when it comes to
implementing a policy.

For certain authors, the policy cycle model described above presents major weaknesses. For
example, it can give a false impression of linearity, with each stage in the cycle occurring in a
precise, predetermined manner, which is far from actual fact.

Normal policy change involves altering various aspects of existing policy styles and
paradigms, without completely transforming the shape or configuration of a public policy
regime. This continuity is maintained by a number of ideological and institutional factors that
insulate the policy regime from pressure for change.

According to the two authors, atypical change involves “substantial changes in policy
paradigms and styles.” Although normal policy change is more common, atypical change
may occur at times, when the members of a subsystem realize that the existing paradigm is no
longer able to resolve policy problems

large number of organized groups which, directly or indirectly influence politics and government.
The members of such organized groups are united in respect of some specific interests that they
tend to advance. Lukes, Steven defines interest group “as an organised group that does not
put up candidates for election, but seeks to influence government policy or legislation.”
Interest groups in India are constituted mainly along occupational and economic interests, such as
Trade Unions, Peasant Groups, Teachers’ Association, Student Union, Women’s associations, the
Business Association.

Different types of Interest Groups - In India there various kinds of interest groups like Arya
Pratinidhi Sabha, Sanathan Dharma Sabha, Parsee Anjuman, and Anglo-Indian Christian
Association. Then, there are the caste groups such as the Brahmin Sabha, the Nair society, and
the language groups. There are institutional groups such as the Civil Services Association or the
Non-Gazetted Officers’ Union. Groups like the All Assam Student’s Union often ask for the
establishment of a college in rural areas. these groups play a very important part in supporting
parties and politicians, raising issues onto the political agenda. Communist Party of India (CPI)
dominates the AITUC, while the CPI (M) controls the CITU (Centre for Indian Trade Unions).

To use the terminology of Joseph Plombara, the pressure groups tend to work through
political parties in a type of ‘parentela’ relationship. The business community constitutes
the most powerful interest group in India.

Interests organised around traditional loyalties to caste, religion, community, and the like are
important forces in India. Of these, regional–linguistic–ethnic groups have been the most
important. Rajani Kothari in his book Politics in India opined that given the dominant role of
government in political institutionalisation and social and economic development, the most
important interests are ‘crystallised in the form of ‘institutional interest groups’—the political
parties, the bureaucracy and the factional network.

Analyze the role that interest groups play in the policy-making

Interest groups are any organization of people with policy goals who work within the political
process to promote such goals. Groups attempt to influence policy in various ways including:

• Lobbying government. Organized interests hire representatives to advocate on behalf

of the group's interests. Lobbying activities include contacting members of government and the
executive branch • Engaging in election activities. Interests may attempt to influence elections
in order to
help get people who support their issues elected or reelected.
• Educating various publics. Interest groups work hard to educate the public at large,
government officials, their own members, and potential interest group members.
• Mobilizing various publics. To influence policy-making, many groups rely on the efforts of
people who are motivated to act on behalf of their issues and causes.

Pressure groups improve the quality of government. Consultation with affected groups is the
rational way to make decisions in a free society. It makes government more efficient by
enhancing the quality of the decision making process – the information and advice provided by
groups helps to improve the quality of government policy and legislation. Pressure groups enable
new concerns and issues to reach the political agenda, thereby facilitating social progress and
preventing social stagnation. For example, the women’s and environmentalist movements. For eg.
Chipko, Narmada Bachao.