Policy reform involves deliberate modifications to existing governmental or organizational rules, regulations and practices for improvement. Within the critical domain of sustainability, it represents shifts towards environmentally responsible and socially equitable systems. Policy reforms require a deep understanding of their complexity and transformative potential.
Often, the initial steps of policy reform are focused on identifying and defining the problem and solution. Then, the legislative and executive branches of government examine alternative solutions and write them into law. Finally, the judicial branch enforces these policies and intervenes in the case of a challenge by interest groups. However, the policymaking process is often far more messy and dynamic than this simplistic narrative suggests. In fact, many studies of policymaking have found that the presence or absence of policy change depends on a complex interplay of formal and informal institutions, power structures and societal norms. In addition, even well-intentioned policy reform efforts are unlikely to be successful unless they interact successfully with these factors.
The complexity of policy reform is magnified at the intermediate level, where implementing changes requires strategic stakeholder engagement and careful consideration of economic and implementation challenges. For example, a policy to reduce carbon emissions might involve a tax on gasoline and other fossil fuels that could result in higher prices for some families than others. Therefore, stakeholders must be carefully consulted, the potential for resistance anticipated and the impact on industry competitiveness and economic distributions assessed.
Similarly, congressional attempts to reform the Federal Reserve should consider private alternatives for central banking and move away from centralized discretionary decisionmaking toward clear, measurable employment and inflation goals insulated from political influence. Likewise, the self-imposed Senate filibuster rule should be modified to give a minority more rights to debate and amend legislation while still providing a path to eventual passage of popular reforms.