Stakeholders of Public Policy

Who Participates in Policy Formation?

Public policy is not the product of a single decision-making actor, but the result of the interaction of numerous participants with different interests, resources, and access to the political process.

For business, understanding the “ecology” of the political process allows one to:

• Identify key allies and opponents when regulatory decisions are made
• Develop a strategy for participation in consultations
• Anticipate coalitions that may block or accelerate reforms

Government Stakeholders

Executive Authorities

The government and ministries are the main “producers” of public policy. Within the government, there is competition between departments (the Ministry of Finance and the Ministry of Economy, regulators and business ministries).

Sources of influence within the government:

• Budgetary bodies (Ministry of Finance) are traditionally strong — they control resources
• “Clubs” of ministries — informal groups based on similar interests
• Advisors and the staff of the premier/president

Legislative Bodies

Parliaments pass laws, approve the budget, and exercise parliamentary oversight. Parliamentary committees are often more influential venues for the formation of legislative details than plenary sessions.

Lobbying the parliament: In democratic systems, companies and organizations actively interact with deputies — they provide analytics, participate in hearings, and build long-term relationships.

Non-government Stakeholders

Business Associations and Corporate Lobbyists

Industry associations: BusinessEurope (EU), Chamber of Commerce (USA), RSPP (Russia), AmCham UAE, British Business Group UAE.

Functions:

• Aggregation of positions of industry participants
• Representation in consultations with regulators
• Publication of position papers and research
• Informal networking with politicians

Corporate lobbyists (in-house): Large companies (Facebook/Meta, Microsoft, Saudi Aramco) have their own governmental teams (Government Relations / Public Affairs) working directly with regulators.

Lobbying market in the USA (2023): ~$4 billion/year in officially registered lobbying expenditures. Leaders: pharmaceuticals, finance, technology, oil and gas.

Civil Society and NGOs

Types of NGOs in the political process:

• Advocacy organizations: Promote specific policy positions (Amnesty International, WWF, ACLU)
• Think tanks: Produce analytics, influence the intellectual climate of policy (Chatham House, RAND, Bertelsmann Stiftung, Tony Blair Institute)
• Trade unions: Protect the interests of workers in the political process

Think tanks in the UAE/GCC: Emirates Policy Center, Beirut Institute, Arab Thought Foundation, Mohammed bin Rashid Al Maktoum Global Initiatives.

Media

Media is not simply a transmitter of policy, but an active participant shaping the agenda.

Mechanism of influence:

• Agenda setting: What media report about → becomes “important” for the public
• Framing: How media describe a problem → influences perception of solutions
• Investigative journalism: Investigations of corruption and abuses create pressure for reforms

Digital media and politics: Social networks have created new mechanisms for shaping the agenda — viral campaigns, hashtag activism, direct pressure on politicians. Example: #MeToo fundamentally changed corporate labor policy.

International Organizations

IMF, World Bank, WTO, UN, OECD shape international standards and norms which states implement in national policy.

IMF conditionality: IMF lending is typically accompanied by conditions — structural reforms, fiscal discipline, market liberalization. This is a powerful mechanism for influencing the policy of borrowers.

OECD as a normative actor: Develops recommendations on taxation (BEPS — tackling transnational corporate tax avoidance), governance, education. OECD member countries strive to comply with standards to maintain their reputation.

Strategies for Business Participation in the Political Process

Direct lobbying:

• Meetings with officials and deputies
• Participation in public consultations
• Participation in advisory boards at ministries

Coalitional influence:

• Industry positions (association letters are more convincing than letters from individual companies)
• Temporary coalitions on specific issues (anti-tax coalition, pro-green regulation coalition)

Information strategy:

• Providing analytics and data to regulators
• Publication of white papers, position documents
• Funding academic research

Reputational strategy:

• ESG reputation reduces regulatory pressure
• Corporate Social Responsibility creates a political “buffer”