Policy Perspective

Dec 05, 2009 (LBO) - A good policy should carry with it six qualifications. The policy should be simple, consistent, efficient, cost-effective, free from unintended consequences and sustainable.
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Hence, any policy thrust that is to be pursued should satisfy these qualifications. This applies to the policy on microfinance as well.

Policies are implemented by numerous branches of a bureaucracy. Therefore, unless the policy is simple, there could be implementation errors that could tarnish the efficacy of the policy.

The consistency in the policy will help the authorities to avoid policy deviations that will work against the results achieved through the implementation of the policy.

The efficiency of a policy requires that the results of the policy should be obtained with the lowest cost.

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The cost effectiveness requires that a policy intervention should be able to recover its costs. Unless a policy is cost effective, it becomes burdensome, unviable and short lived.

A policy is an intervention in the market and it is intended to make certain changes in the system, behaviour of people and goals of the society. These results are specific to the policy. Bu

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