Policy Making - Analysis

This note discusses the analysis of the knowledge and experience that you will have gained either directly or via consultation.

You should not, of course, simply accept all the ‘facts’ that are presented to you. Statistics can be particularly misleading.

It is easy, too, to frighten people with ‘science’. 76 per cent of one group of adults, presented with a number of true facts about the chemical di-hydrogen monoxide, concluded that Government should regulate its use. The other 24 per cent presumably knew that the chemical’s other name is ‘water’.

Scientific ‘facts’ are also often anything but ‘facts’ as you or I would understand the term. Indeed, you can always tell good scientists by the way in which they acknowledge uncertainties, make assumptions explicit, distinguish between what is true and what is speculative, and present options.

By the way, do not be tempted, when faced with a hostile press or a one-sided lobby, to assemble your own dodgy statistics – or dodgy science – to fight them off. The inevitable result would be that those with whom you are trying to communicate would then see you as prejudiced and/or adversarial, and you might also then fail to pay insufficient attention to perfectly reasonable arguments from ‘the other side’.

You should also beware relying too heavily on cost benefit analyses and other complex models. They can illuminate difficult decisions, but they are no substitute for careful analysis. And remember that judges, in Judicial Review proceedings, will take no notice of black box models whose workings cannot be explained. As John Kay noted in his FT column, commenting on the decision to proceed with a third Heathrow runway:

Roskill made a pioneering and widely praised attempt to use cost benefit analysis to define the relevant issues. By the time the Airports Commission reported in 2015, this modelling exercise had morphed into a monster, a black box with trailing wires whose processes no one could understand, and which offered endless numbers but no insight. Such over-specified and convoluted models are used as rationalisations for decisions that have in reality been taken on quite different grounds.

The power of modern computing, far from facilitating good decision making, gets in the way. Consultants are dispatched to find supportive numbers. This happened with HS2, the proposed high-speed link to Birmingham, and for years a policy in search of a justification. Competing cost benefit analyses yield the recommendations their sponsors want to hear. We have policy based evidence, not evidence based policy.

These spurious impact assessments provide cover for the increasingly superficial basis on which policy is really made. ... The good policy is one that makes a good headline. We suffer from what King and Crewe describe as a “deficit of deliberation”.

Moving beyond science, models and statistics, you must remember that it is unfortunately in the nature of our society that most correspondents, and most of the people that we meet, will present a one-sided view of an issue, drawing attention to all the relevant facts and arguments which support their case but failing, either deliberately or through sheer conviction, to take account of inconvenient facts or opposing arguments. But as you gain experience, you will quickly learn to detect the pure advocate or bullshitter.

Take care, therefore, not to be too trusting and bear in mind the famous warning that ‘He would say that, wouldn’t he!’ No one who is applying for a grant will tell you that they will in fact go ahead even if they do not get it, and no businessperson will tell you that the principal purpose of their latest acquisition is to build market power. Similarly, most people are reluctant to admit their errors, and their reluctance will be in proportion to the seriousness of their error. Therefore, if you are questioning the propriety of someone’s behaviour, be cautious about attaching significant weight to the views of the person being questioned. Find out the facts and let them speak for themselves.

The same applies, but less strongly, to professional advisers. Lawyers, accountants and merchant bankers are employed by their clients to persuade you to do certain things. They will usually tell you the truth, but seldom the whole truth. They will also sometimes imply, and indeed believe, that their opinion (e.g. about the viability or prospects of a company) is a fact. If your instinct is to the contrary, then rely upon that instinct, at least to the extent of probing further.

Martin Stanley