POLI 359 Public Policy Making Session 2-Ideology and Public Policy Lecturer: Dr . Kuyini Abdulai Mohammed, Dept. of Political Science Contact Information: akmohammed@ug.edu.gh College of Education School of Continuing and Distance Education 2016/2017 godsonug.wordpress.com/blog
What is Ideology? • Ideology is a set of ideas or beliefs that underpin a social, economic and political system. • Ideology is a worldview that allows an individual or group both to interpret the way things are and to suggest the way things ought to be. • Ideologies are guides to political action that give us ideal to believe in, goals to strive for and tell for what causes to fight. • Ideology is a collection of ideas held by an individual, group or society. Slide 2
What is IdeologLJ? ;ĐoŶt’d: • Ideology is a set of conscious and unconscious ideas that ŵake up oŶe’s ďeliefs, edžpeĐtatioŶs aŶd motivations. • Ideology is a comprehensive normative vision that is followed by people, government or other groups that is considered the concrete way by the majority of the population. • Ideology is a said of ideas proposed by the dominant class of society such the elite for all members of society. • Ideology is a system of abstracted meaning applied to society thus making this concept central to politics. Slide 3
Ideology and Policy Prescriptions Different ideological viewpoints offer dissimilar policy prescriptions on: • The balance between individual and collective rights and responsibilities in society • The relationship between women and men and the nature of the family • The virtue of the market economy and the acceptability of economic inequality and poverty • The importance of domestic processes and participation • The relationship between human civilization and nature Slide 4
Market Focused Ideologies • Market focused ideologies stress the importance of free market. • They advise against state intrusion and control A pioneering articulation of this view emanated from the French term ͞Laissez -faire .͟ Laissez-faire literally means ͞leaǀe theŵ to do.͟ Laissez-faire was first used in the 18th Century as a sanction against government interference with trade. • In laissez-faire viewpoint, the state’s role is eŶsure that nothing interferes with the working of the market. Slide 5
Libertarianism • The laissez-faire doctrine is referred to as libertarianism. • Libertarianism advocates a free market view. It argues that capitalism will be a panacea to inefficiencies than government intervention • Adam Smith, one of the fathers of economics identifies with libertarianism. Smith argues that the ͞iŶǀisiďle haŶd͟ of the market will guide people act in their self-interest. • The self-interest behaviour produces spontaneous social order that secures the public interest. Slide 6
LiďertariaŶisŵ ;ĐoŶt’d: • Smith argues that the uninterrupted market is the generator of wealth obstructed only by government intervention. • However, Smith conceded that not all areas can be entirely left to the market. • Areas like national security, individual security, and public works cannot be efficiently provided by the market • Libertarians trust in individual responsibility. • They believe the state should only intervene to protect citizens from coercion, interference and discrimination. Slide 7
LiďertariaŶisŵ ;ĐoŶt’d: • Libertarians insist on the state providing only negative rights. Negative rights refer to the system of justice and associated law, order and protective services such as the police, courts, prisons, probation and rehabilitation services. • There is thus minimal need for public finance. • Libertarians argue that there is no such thing as social justice. • A persoŶ’s life ĐhaŶĐes are as a result of ŵarket outcomes. Slide 8
LiďertariaŶisŵ ;ĐoŶt’d: • These outcomes may be fortunate for some and unfortunate for others but they are not unfair. • TheLJ siŵplLJ refleĐt aŶ iŶdiǀidual’s iŶŶate aďilities to earn a livelihood through flair, initiative and hard work. • Charitable work rather than state action should be relied upon to help those who are unfortunate in lacking innate abilities for self support. To libertarians: • There is no moral case for equality • There is no such thing as society Slide 9
LiďertariaŶisŵ ;ĐoŶt’d: • There is no need for modern welfare state • There is no need for public finance and public policy (other than law and order, defense and to relieve destitution) Rather the private sector should provide individuals and their households with services they are willing and able to pay for. Libertarians contend that state intervention is counter-productive. It stifles individual initiative and destroy charitable giving. Slide 10
LiďertariaŶisŵ ;ĐoŶt’d: State intervention establishes a dependency culture. Dependency is worsened by moral hazards whereby individuals change their behaviour as a result of: • being insured. • being less cautious vin their attitudes and response to risk Libertarians insist that governments cannot be trusted to act responsibly. They claim that the state is corruptible They believe governments operate for their own sake rather those they are meant to serve. Slide 11
Neo-Liberalism The resurgence of laissez-faire economics was variously termed as: • Neo-classical economics • Neo-liberalism • Neo-conservatism • The New Right • Economic rationalism Neo-liberalism is an offshoot of libertarianism. Its focus is on individual rights and freedom. Slide 12
Neo- Liďeralisŵ ;ĐoŶt’d: Neo-liberals contended that by the end of the twentieth century there was too much government This was evident in several important respects: • Governments were taxing too much, thereby penalizing those generating wealth. • Government were borrowing too much, thereby reducing the amount of capital available. • Governments were spending too much, e.g. on social services. • Governments were regulating too much – investment fell. Slide 13
Neo- Liďeralisŵ ;ĐoŶt’d: • Governments were doing too much, although private enterprise was believed to be more efficient • Governments were providing too much protection: Tariffs and other regulations were making the market less efficient. Some business sectors were less competitive. Slide 14
Neo-Liberal Solution to Big Government • Lowering taxes, flattening the tax structure and taxing consumption rather than income • Budgets surpluses should be used to retire debt rather than spending on public services and infrastructure • Reducing government expenditure, particularly on welfare and social services • Reducing legislative safeguards in areas such as health and environmental standards Slide 15
Neo- Liďeral’s SolutioŶ to Big GoǀerŶŵeŶt ;ĐoŶt’d: • Selling of government business enterprises to private owners. • Reducing or eliminating tariffs and other trade barriers • Abolishing centralized wage fixing • Deregulating markets to allow competition to determine prices. Slide 16
Defining Features of Neo-Liberalism • Primacy of the individual • Modified markets • Negative plus limited positive rights • Enabling state • Mixed economy Slide 17
Beliefs of Neo-Liberalism • The state is a necessary evil • T axation for efficiency • Promotion of human capital • Equality of opportunity • Property rights reflect policy aims Slide 18
General Implications of Neo-Liberalism • Weak conception of society • Modified market rights • Individuals primarily consumers • State supplements charity or voluntary action Slide 19
Implication of Neo-Liberalism for the Public Sector • Heavily constrained state • Some limited positive rights • Private or public sector provision • Conditional welfare state • Public plus private insurance Slide 20
Implications of Neo-Liberalism for Public Policy • Restricted public finance • Seek additional public spending • Tadž ͞bads͟ Ŷot ͞goods͟ for effiĐieŶĐLJ • Introduction of proportional taxes • Borrowing for efficiency purposes Slide 21
Limitations of Neo-Liberalism • IŶdiǀidual’s rights to state assistaŶĐe is ĐoŶtiŶgeŶt upoŶ responsibilities for self sufficiency • The state is not a definite recourse in terms of need • Equality of outcomes will not be achieved • People’s iŶŶate aďilities, flair aŶd ǁork effort ǀarLJ • Neo- liďerals’ ĐoŶĐeptioŶ of soĐietLJ is Ŷot eŶĐoŵpassiŶg • It is unclear whether state intervention makes markets work better or worse • Neo-liberalism produced weakness in both culture and civil society Slide 22
Socialism (Collectivism) • Socialism preached a contrasting view to liberalism. It advocates a state controlled by the people. • It was occasioned in the nineteenth century by inequality. • The exploitative nature of capitalism. • Invocation of a revolutionary transformation of the state • Karl Marx and Friedrich Engels were the architects of socialism. • The mode of production influences power relations. Slide 23
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