Abstract:
Policy relates to political decision making generally at the level of the government. Policy analysis
starts from the vague goals identified by the politicians and involves defining the problem, the
objectives, the alternative means or courses of action, the availability of resources and the evaluation
of effectiveness. With the changes in the global economy policy making is no longer the prerogative of
the government alone. Now the policies are being increasingly made with an interactive input from
the government, the market and the civil society especially in the Third World. With the declining
power and scope of the government and the absence of powerful local civil society, the market with its
interests defined by the multinationals is playing an increasing role in policy formulation. The
spread of poverty in the wake of IMF’s Structural Adjustment Programmes is being explained as
the result of poor implementation, corrupt governments and weak institutions. Such an explanation
is the basis of second tier of World Bank supported institutional reform in areas like local
government, civil service and law. The purpose of these reforms is to make the institutional and legal
frameworks of the countries market friendly and consistent with the demands of globalization.
