Government policy is the decisions, programs and actions that a government or other public entity makes to pursue specific social and economic objectives like fostering growth or reducing inequality. It takes many forms, from laws and regulations to procedures, incentives and voluntary practices. Government policies can be designed to promote certain types of behavior or punish others, and they usually have unintended consequences.
A key step in developing a policy is identifying and defining the problem that needs to be addressed, which involves conducting research and collecting data. The next is determining how important the problem is, and what the potential effects of various solutions might be. This is known as the agenda setting stage, and it is where politicians and other policy makers decide which problems deserve priority for government action.
The policy formulation stage is where governments, private groups and other organizations identify possible ways to tackle the problem they have identified. They evaluate each of these possible solutions, considering their feasibility, cost and impact. Then they settle on one of the policy instruments that is most suitable to solve the problem.
Finally, the implementation stage is where the policy is put into effect. This can include things like enacting new legislation, implementing a plan of action or putting other policy instruments into place.
It is worth noting that the whole process of policy making is a dynamic one. Some issues may be forgotten or fall out of fashion as the focus shifts to newer problems that demand attention. This is often a result of the limited attention span of most citizens and the need for governments to prioritize the issues that are most pressing.