the extent of
other
financial
compliance. With Government grants and
interventions there may be assumptions
about the resulting changes in behaviour.
15 The second type of assumption relates to the external
environment. Action by the Government is seldom the
only factor which determines whether the policy objectives
achieved or not. External factors are changing all
the time. For example the economic background when a
support scheme was first decided upon may have changed
are
during its period of operation. What was once a innovative
technology may now be a mature industry. Social priorities
may have shifted.
16 The behaviour of other people may also change as
a result of the policy, especially if the policy appears
to be successful. Thus drug smugglers find new ways
of importing drugs or begin to manufacture in this country.
Overseas competitors may switch their plans and strategies.
Companies in receipt of grants may rearrange their total
business SO that the extra money does not, in the end,
it was intended. to the purpose for which it was
go
a
Sometimes
at effective
first is gradually
change which is
dissipated as external elements change in response.
17 It can be helpful to draft a chart of the relationship
between
the
ultimate
objectives, the
intermediate
An example is
at Annex
objectives, and the assumptions.
B.
7
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