Stage 3: Policy Formulation

Policy formulation is the process of examining evidence and designing policies. In practice, consideration is given to policy options that are the best fit for the particular problem or opportunity. Coherence with other national policies, feasibility issues and compliance with international obligations are also considered. Policy formulation also anticipates the subsequent stages; that is, good policy formulation anticipates how the policy will be adopted and implemented, and later monitored and evaluated. Being subdivided in its own phases (appraisal, dialogue, assessment and consolidation), policy formulation is arguably the most critical stage of the policy cycle. The policy developed during this stage is validated in a formal moment of consultation with stakeholders (Stage 4).

In practice, the selection of one final policy option can happen at the Formulation stage or at the Consultation stage, depending on the issue, the options on the table and the context.