efficient, and legitimate modes of intervention. However, policy action should also be based on
realistic expectations and understanding the instrumentalities of attaining governance goals.
First, to examine whether the type of governmental intervention is effective and efficient
requires us to consider policy comprehensiveness. A clear set of outcome objectives and the
means to achieve them should come as a result of a full consideration of regulatory alternatives
and increased attention to policy, institutional, organizational and operational detail. The
diversification and sophistication of policy instruments serves as an illustration of a commitment
to improve effectiveness and efficiency of policy design and implementation. Creating and
applying a variety of incentive-based instruments that provide flexibility to the regulated
community and reduce the societal costs of dealing with social problems help streamline policy
decisions and increase policy effectiveness.
Second, the capacity of governmental institutions is a crucial factor in the development
and delivery of policies, in building conditions for economic progress and social cohesion, and
ultimately in good governance. A reliable institutional structure, well established coordination
mechanisms, and an ability to make credible decisions characterize strong governmental capacity
and are essential for policy consistency and improved management systems of government.
Increasing government’s ability to produce good policies requires increasing in institutional
capacity, which in turn strongly depends on the knowledge of past institutional and
organizational arrangements, practices, and experiences. Governmental actors need information
on how policy choices performed in the past and what factors affected past policy decisions in
order to design and implement superior initiatives in the future.
Further, achieving maximum policy results and accomplishing collective goals do not
only demand improvement in the structure and principles of government. Good governance
requires policy transparency through stakeholder engagement and participation. A systematic
attention to and use of incentive-based and inclusive processes, and finding appropriate ways to
engage and consult with the regulated community, citizens, and partners present enhanced
opportunities to realize policy changes, and strengthen the links between government and
society. By opening an opportunity to the economic and societal actors to be more active
participants in policy, the government also increases the prospects that non-governmental actors
will bring innovative approaches to government’s attention. Developing policy networks and
increasing power-sharing can lead to a systematic change and improvement in policy
performance through fostering communication, innovation, and regulatory reinvention.
Convention