Analyzing EU Development Policy

Supervisor: F. Arab
S. Vanhoonacker, Group 2 Pigeonhole 537
Date: 23.11.08
Version: final
 F. Arab 2008

Contents

1. Introduction ......................................................................................................................... 3

2. Explaining and Applying Relevant Policy Theories ........................................................... 3

3. Conclusion .......................................................................................................................... 6

Bibliography ............................................................................................................................... 7

2
 F. Arab 2008

1. Introduction

All our efforts to defeat poverty and pursue sustainable development will be in
vain if environmental degradation and natural resource depletion continue unabated.

– Kofi Annan, UN Secretary-General, Nairobi, 14 July 2005

Today numerous policy theories exist, intended to shed light on the complex phenomenon of
policy making. Such theories are best defined as theoretical approaches, seeking to help
analyze and understand policy1. Adding to the complexity of the policy process is the sheer
amount of actors involved in it, ranging from individuals to governmental organizations. This
shifts even more purpose to such theories – which essentially help make sense of what might
otherwise seem chaotic and complex.
This paper focuses on utilizing theoretical approaches in order to analyze the European
development policy – thereby exposing advantages, disadvantages, opportunities and
limitations of employed theoretical approaches. European development policy is best defined
by the collective efforts of the members and institutions of the European Union to eradicate
poverty in developing countries through the promotion of sustainable development – while
working towards the Millennium Development Goals.

2. Explaining and Applying Relevant Policy Theories

In this section the policy theories relevant for analyzing European development policy shall
be presented briefly – allowing for a valid evaluation after their application to the European
development policy.
The theories of power focus on the power structure and exercise of power in society
and in the political system. Hence, theories of power focus on detecting concentrations and
dispersions of power. Particularly interesting in this context is the pluralist approach, which
assumes that there is a certain group of people, employed by the government, representing the
population as a whole. Robert Dahl, one of the most famous supporters of this view, favors
pluralism due to the reason that it it is a system in which “no group is without power to
influence decision-making, and equally, no group is dominant” (Hill, 2005, S. 29).

1
Policy: “A definite course or method of action selected from among alternatives in light of given conditions to guide and determine present
and future decisions.” (MDK12, 2008)

3
 F. Arab 2008

In other words, according to the pluralist approach, each group has power to a certain extent –
while at the same time only a limited number of people is able to exert their power over
certain key issues. Hence, while there is no equal distribution of power, it is nevertheless
generously distributed amongst individuals.

Applying the pluralist theory to the European development policy reveals the importance of
equal power distribution amongst the parties involved in achieving the common goal of aiding
LDC’s to develop. Furthermore, as pluralist theory argues, a large number of actors are
involved in shaping the final policy outcome. In the case of the European development policy
those actors involved range from multinationals to environmentalists. Having mentioned the
involvement of such diverse parties, the point made regarding power distribution comes in
again: it is quite possible that in such a maze of different interest groups, certain parties are
largely neglected. Stronger parties, as mentioned above, having the say about key issues, may
– in extreme cases – even decide to exclude certain pressure groups.
Of course the pluralist theory has limitations and disadvantages. One major drawback
for example is the fact that the pluralist theorists deny the possibility of power being exercised
in a disguised manner, dominating certain spheres, while influencing (or even manipulating)
the behaviour and interests of certain groups.

The institutional theory on the other hand lends institutions a central role, while identifying
them to be directly involved in the policy making process, including its result. An important
point regarding this theory is that it merely provides policies with an appropriate framework,
thereby defining the structure of a certain policy. Hence, it is not able to foresee the outcome
of such a policy. Outcomes may be modified due to the fact that frameworks, established by
institutions, are generally prone to externally emerging dynamics. This may explain the
continuous alteration of the set of rules established by institutions. Therefore, due to the
“garbage can model”, it is rather difficult to draw generalizations. This model “only allows
for a description of what is happening; each event requires a new, individual description”
(Hill, 2005, S. 90).
Furthermore, international organizations like the UN are closely linked to the
institutional theory via “policy transfer”. It implies how suggestions and ideas may originate
outside the European institutions and then be transferred via this process into solid actions or
an intervening factor, influencing final outcomes.

4
 F. Arab 2008

Applying the institutional theory to the European development policy helps understand the
role and actions of the involved institutions. As already mentioned in the introduction, next to
the member states, European institutions play a major role in the European development
policy. In this context the Commission plays a specifically important role as it is responsible
for linking the Community’s development aid efforts with development programs already in
motions within other member states (European Commission, 2005).
Furthermore the institutional theory applies due to the fact that Article 179 (1) EC
gives the Council and the European Parliament the right to employ co-decision procedure in
the pursuit of European development policy related goals, as they are outlined in Article 177
EC. Article 179 (2) EC on the other hand includes the European Investment Bank as another
actor from the institutional field. Hence, it is safe to conclude that institutions play a
significant role within the European development policy, and that the institutional theory
definitely applies.
However, there are limitations disadvantages to the institutional theory. One of them is
the fact that it is unable to predict the outcomes of policies. It only provides the mere
framework, uncovering explanations related to the relationship between institutions and the
policy making process and its result. Therefore the “garbage can model”, as outlined above,
already implies the drawback that no generalization can be drawn due to the unique set of
circumstances applying to each situation. Being unable to draw generalizations makes
analysis difficult, requiring more original research in order to reach valid conclusions. Finally,
rules prescribed by institutions cannot be considered stable as they are highly prone to change
due to external factors – rendering them ultimately unreliable.

Directly related to the pluralist theory is the rational choice theory, which focuses on
explaining how rational behavior of individuals may determine collective processes and
decisions – thereby modeling economic and social behavior. Next to being the central
paradigm in microeconomics, it also has a vital role in modern political science. The theory
takes into account stable preference functions and constrains faced by individuals. Based on
this, it is assumes that individuals choose the best action available to them. Limitations of the
rational choice theory include the lack of empirical data, disregard of inequalities of power
and the argument of it being a self-fulfilling prophecy (Hill, 2005).

5
 F. Arab 2008

Once again, applying the rational choice theory to the European development policy
reveals how it is possible that within the policy process it is possible that certain actors act on
behalf of certain economic interest. For example, politicians might seek to acquire power by
assuring certain economic benefits, which quite often are not necessarily beneficial for actors
not involved (speaking of externalities in that sense). Another point applicable to the
European development policy is the way in which policy decisions are made: the rational
choice theory seeks to explain such a decision process in similar terms as it does in order to
explain market choices. As Hill put it in familiar economic terms: “public bureaucracies tend
to be monopoly providers of goods and services” (Hill, 2005, S. 58)
Common criticism of the rational choice theory include the fact that it is often a self-
fulfilling prophecy and that is does not take into account unequal power distributions.
Furthermore, while each actor, from Commission to Member States, is acting rationally, very
diverse interests emerge. In this context a common denominator needs to be determined in
order for cooperation to work smoothly.

3. Conclusion

In conclusion it can be said that all theories mentioned do apply to the European development
policy in one way or another. It would not be correct to exclude one of the theories, or simply
regard one of them as irrelevant, since they are all related to a certain extent. In fact, they
oftentimes complement each other – going hand in hand while explaining the complex policy
process and dynamics of the European development policy.

6
 F. Arab 2008

Bibliography
European Commission. (2005, January 07). Europa.eu. Retrieved November 23, 2008, from
http://ec.europa.eu/development/icenter/repository/Issues_Paper_EN.pdf

Hill, M. (2005). The Public Policy Process. London: Pearson Longman.

MDK12. (2008, June 18). School Improvement in Maryland. Retrieved Novemeber 22, 2008,
from http://mdk12.org/instruction/ensure/MMSR/social_studies/glossary.shtml