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Conflicts in Government Policy Objectives - Activity

The objectives of any government can be classified into two main categories.

Image: Governments have a wide range of responsibilities and policy objectives but how do they decide on how to prioritise these policy objectives and overcome the conflicts that inevitably arise? Copyright: David Playford, stock.xchng

The above examples are certainly not exclusive objectives and it could be argued that the difference between 'economic' and 'non-economic' is a little blurred; after all, reducing the level of poverty involves some key economic decisions! It may be valuable to think of the differences, therefore, in terms of macroeconomic objectives - those that affect the whole economy, such as inflation and unemployment, and microeconomic objectives - those that affect a part of the whole economy, such as raising the minimum wage.

Whatever the objectives set by government, there are always bound to be conflicts that will arise in achieving them. To achieve such objectives, policies will have to be put in place to change people's behaviour, as well as ensuring the creation of the necessary infrastructure - both physical and administrative. This will require resources to be directed towards that objective.

In doing all these things, there will be consequences elsewhere for the economy. This Activity is aimed at encouraging you to think through some of these conflicts and how government can best balance its priorities - because ultimately that is what it is all about. No government can achieve every objective, so it has to find a balance between what is acceptable in each case.

For example, in economic objectives, raising economic growth may be desirable to improve the welfare of all citizens but in doing so, there is a risk of triggering inflationary pressures. Governments have to find a way of creating the conditions that will encourage a level of economic growth that helps boost the welfare of the majority but which will not be so high that inflationary pressures become too serious.

In such cases, it is all about fine-tuning the economy to create the right conditions for it to flourish and to achieve its stated objectives.

The Activity

Image: Diverting resources to health care not only benefits those who are ill but may also have significant long-term benefits on macroeconomic policy objectives as well - there will be a number of positive externalities that may arise, but at what cost? Copyright: Zarko Kecman, stock.xchng

Image: Education lays the foundations for the improvement in the quality of human capital in a country and also helps to improve the long-term welfare prospects of individuals. Should it take priority over other spending plans? Copyright: Grzegorz Niewiadomski, stock.xchng

Image: Pensioners may be classed as not economically active - are they a drain on the nation's resources or do they have a valuable contribution to make? Should society treat its pensioners with more respect and dignity? After all, most have worked all their lives and have already contributed to the nation's wealth. Title: Seaton Pensioners. Copyright: Getty Images, available from Education Image Gallery

At the end of the presentations, the Panel will deliberate on the presentations and an elected Chair will explain the decision of the Panel to the whole group.

Helpful links:

• Department of Health (http://www.dh.gov.uk/Home/fs/en)
• HM Treasury (http://www.hm-treasury.gov.uk/index.cfm)
• Department for Education and Skills (http://www.dfes.gov.uk/)
• Department for Work and Pensions (http://www.dwp.gov.uk/)