Introduction: According to Dinica (2004), it is widely acce pted that it is difficult and tiresome to ske tch a conceptual distinction between policy formulation and policy implementation. This is because policy formulation basically takes place throughout the entire policy process. As Hill and Hupe (2003) care to frame it, “what is needed is a way of combining the analytical benefits offered by the ‘stages’ model with the recognition of the interaction between the stages.” They think that use of the term ‘policy -making’ for the entire process, ‘policy formation’ for the initial part of policy-making, and ‘policy implementation’ for the latter part of the policy-making process would be more suitable. Components of Policy Formulation and Implementation: The first and foremost step in the process of policy-making, or implementation of policy is deciding whether a new policy or policy reform is required in the first place. A s is obvious, this is a vital step and the first in a series of methodical procedures. Once it has been decided that a new policy has to be promoted, or an existing one reformed, a comprehensive journey of analyses and diagnoses is embarked upon. This is the process of identifying the policy down to its very co re. The step of formulation adds more detail to the e arlier policy analysis. These details are including a statement of t he problem, the goals and objectives of the policy, a framework that sketches programs in support of t hose targets, and a statement of the resources needed for this policy. All these elements need t o be sketched and analyzed in elaborate detail so that effective action and implementation can be carried out (Burke, 1990; Starling, 1988). At this point, the policy-makers have the option to make the process more participatory by engaging civil society in policy analysis and formulation. Their options could be anything from simple information sharing to outright collaboration. In Ireland, there is an innovative method of going about this process: there exist social partnerships which aid negotiation between the government, the private sector and civil society on monetary, fiscal and public policies. In the c ourse of the past five years, t he country has effectively made use of these social partnerships to formulate and develop a national social contract which has led to a significant improvement in its economic performance. The benefits which can be derived from using such a participatory and negotiated process to arrive at consensus on principal elements of fiscal and monetary policy are many. As in Ireland’scase, this social partnership helped in negotiations for budget deficits, wage rates, social sector spending and safety nets. Also, it create d opportunity for the many partners to fulfill their part of the pledge and made them accountable for it (Dinica, 2004; Starling, 1988).
