Policy Change

Abstract

Institutional quality lies at the heart of much of the work in comparative political economy, through paradigms such as agenda-setting, policy image, and the influence of the media. And while the growth and development trajectories of economies may encounter positive and negative political shocks, the broad effects have implications in both developing and advanced economies. This chapter presents political economy as a framework for understanding how policy choices emanate from the interactions between politicians and economic elites. With the aid of eight contemporary theories of policy change, the core arguments and worldviews about new paradigms, beliefs, and assumptions that can generate the necessary and sufficient conditions to improve policymaking are presented – while paying special attention to the differing implications for policy innovation. The theories are situated within the broader discussion on the political economy of public-private policy partnerships and, more specifically, within the discourse on policy entrepreneurship.