Non Us Legal Systems

Bounded Rationality and Policy Diffusion: Social Sector by Kurt Weyland

By Kurt Weyland

Why do very varied nations frequently emulate an identical coverage version? years after Ronald Reagan's income-tax simplification of 1986, Brazil followed an analogous reform although it threatened to exacerbate source of revenue disparity and jeopardize country sales. And Chile's pension privatization of the early Nineteen Eighties has unfold all through Latin the USA and past although many bad international locations that experience privatized their social safeguard platforms, together with Bolivia and El Salvador, lack a few of the preconditions essential to achieve this successfully.

In an incredible step past traditional rational-choice debts of coverage decision-making, this ebook demonstrates that bounded--not full--rationality drives the unfold of ideas throughout nations. whilst looking suggestions to family difficulties, decision-makers frequently contemplate international types, occasionally promoted by way of improvement associations just like the international financial institution. yet, as Kurt Weyland argues, policymakers follow inferential shortcuts on the chance of distortions and biases. via an in-depth research of pension and well-being reform in Bolivia, Brazil, Costa Rica, El Salvador, and Peru, Weyland demonstrates that decision-makers are captivated through neat, daring, cognitively on hand types. And instead of completely assessing the prices and merits of exterior types, they draw excessively company conclusions from restricted facts and overextrapolate from spurts of good fortune or failure. symptoms of preliminary luck can therefore set off an upsurge of coverage diffusion.

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Due to the availability heuristic, these effects were confined mostly to neighboring countries. Bounded rationality thus led to a more dispersed, “decentered” process of learning in health policy, which contrasted with the wavelike spread of a singular model in social security. Chapter 7 draws theoretical conclusions and places the empirical findings in a broader comparative perspective. The first section highlights the main results emerging from the case studies. The second section addresses the debate about the nature of rationality in politics and develops the theoretical and methodological implications of my bounded rationality approach.

While IFIs cannot impose innovations on domestic decision-makers against their will, they may make them willing to adopt new models by reshaping their preferences. The normative appeal approach thus claims that the IFIs profoundly influence policy-makers—not from the outside, via carrots and sticks, but from the inside, by persuading them what they themselves should want.

Finally, while the absence of a singular outstanding model allows for less spread of similarity amid diversity in the health arena, basic policy principles, such as the introduction of private competition or the extension of primary care to the poor, did affect many dissimilar countries in similar ways. In sum, while less clear-cut than in social security, health reform has also displayed the three features of diffusion, namely, its S-shaped temporal unfolding, its geographical clustering, and the spread of similarity amid diversity.

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