Government policy is a system of laws, regulations, courses of action and funding priorities promulgated by a political entity. It is a means to achieve specific social or economic goals, such as stimulating economic growth or reducing inequality. Policies are shaped by the political ideology and agenda of a particular group in power and can take many forms, such as laws, subsidies, taxes, spending plans and regulations.
Whether or not policies are successful in reaching their desired outcomes, they are constantly in flux and can produce unintended consequences. To minimize these unintended effects, the best practice is to engage stakeholders throughout the process. Stakeholders are individuals and organizations that contribute to the development of a policy. They include interest groups, advocacy organizations and varied constituency groups.
The at-times complex process of putting a policy into effect begins with agenda setting, the identification of problems that need attention by a governing body. These issues are then examined and prioritized in the legislative and executive branches of a government, which may develop solutions through the use of legislation, regulations, and administrative directives.
Policy enactment consists of following the procedures necessary to formally approve and implement a policy, which can be accomplished at the local, state, or federal level. Successful policy enactment can help to strengthen citizen trust in governmental institutions. However, when a policy fails to meet the expectations of citizens or is perceived as unfair, it can lead to disillusionment with the political system and encourage more robust social movements that advocate for change.