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Making Policy: Select a topic/policy area and write a strategy advising - Coursework Example

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This strategic report is written to the China consumers’ association advising of the strategic decisions that ought to be taken to demand more policy change. The policy area that should be examined is the high-cost and short term credit legislation. The consumers of the credit…
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Making Policy: Select a topic/policy area and write a strategy advising
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Making Policy: Select a topic/policy area and write a strategy advising

Download file to see previous pages... The short term credit facilities are implemented at a national level hence it is not easy for the consumers to run away from this problem (Lieberthal & Oksenberg, 1988, p.13). Therefore, it is the responsibility of the consumers ‘ association to try to convince the national government to reexamine the issue so that the consumers do not incur such huge costs when they credit itself is going to be refunded within a short period. The report begins by showing the background of the policy. Later on, it would show relevant policy theories that would help in understanding the nature of the policy to and give the guiding actions that should be taken to support the changes.
High cost and short term credit legislation have been a growing controversial issue in China among the many consumer groups. There are lenders who give out small cash in the form of credit to the borrowers to enable them start a business, revamp the collapsed business, to pay bills, buy homes and many other emergencies. However, these lenders offer these credit facilities at a much higher cost in terms of interest rate(Lieberthal & Oksenberg, 1988, p.15). The consumers feel that they are very much vulnerable to these exploiters because the policies touching on this issue do not provide enough cover to shield them from this exploitation (Hutchens, 2013). Many reforms have been done in this area, but it seems there are still some loopholes that allow the lenders to prey on the borrowers. One of the recent reforms that have been enacted by the China government is that there is a requirement for all short-term creditors to seek a license from the government authorities before operating such a business. Some regulations have been put the amount of fees or interests to be charged on these credit facilities (Sabatier 1987, p. 42). Initially, the consumers welcomed the reforms that were made to protect them from the ...Download file to see next pagesRead More
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