Policy Space: How Much Room Do We Have and Why?

Written by: Nana

Almost every day we are presented with multiple choices and a plethora of options to choose from. Whether it is choosing a cappuccino with some doughnuts or iced tea or coffee or just water, we cannot escape decision making from the simple and mundane things to the big decisions we make about where to live, who to marry or which career path to take. However, these decisions are influenced by many factors: our own inner voices, family members, mentors, news, social media platforms, institutions we interact with, etc.. 

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This complexity of what surrounds us, what influences us, and what we influence represents a microcosm of the complications that impact the government’s decision-making. Governments across the world function in a reality that is designed by various limitations at the international, regional, and national levels. This reality defines the magnitude of the space that a government has for policy decision making. This space is referred to as the policy space. The United Nations Conference on Trade and Development (UNCTAD) report defines policy space as the “freedom and ability of a government to identify and pursue the most appropriate mix of economic and social policies to achieve equitable and sustainable development that is best suited to its particular national context”.   Similarly, Dagher , believes that policy space refers to the capacity and authority to formulate policies in a way that is both reflective of the objectives for the population and independence from outside influences.

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Hence, a country which has positioned itself in a manner that increases external influences or pressures on decision making limits its policy space, increases the role of external actors in internal decision making, and risks facing repercussions when it implements policies that contravene the direction of this external pressure. In light of the above explanation, could full policy space be achieved, especially for countries that are vulnerable, lack power and influence? 

The answer is no! 

Even in closed economies, where it seems as though decision makers have absolute control over policy tools, they might be unable to successfully manage particular objectives.  By integrating into the international system, countries cede a part or most of their control to international actors and international rules and regulations.

On the African continent, a cursory look at the experience of Francophone West African countries leads us to realize that through their actions and those of international actors, most of these countries have a relatively small policy space. Their subscription to international obligations combined with their vulnerability, the influence of ‘powerful’ international actors, and internal challenges have severely limited their policy space, and have thus impeded decision making. 

The assessment of policy space cannot be based on extremes - full policy space or no policy space - but on a continuum beginning with high levels of policy space and ending with very limited levels of policy space. Using this concept of a policy space continuum, most Francophone West African countries tend to lean towards the full policy dependence part of the spectrum, especially when assessing their security, political, economic and external shock-related responses.