| Abstract: |
In mainstream economics, there is an assumption that individuals are rational
actors whose decision-making is based on incentives, regulations and available
information. When such an assumption is translated into designing public
policies, authorities designing policies consider individual citizens as
rational decision-makers. However, human choices are commonly influenced by
various biases, emotional responses and social influences. The biases in human
decision-making processes make traditional policy tools like tax incentives,
mandatory requirements, and public awareness campaigns ineffective. This paper
reviews and argues that behavioral insights can strengthen traditional policy
instruments by better aligning interventions and human behavior. The countries
in Central Asia, including Uzbekistan, can achieve better policy outcomes
through evidence-based, behaviorally informed design, complementing
assumption-driven approaches. The paper explains the fundamentals of
behavioral insights through worldwide examples and provides specific
recommendations for implementing BI in policy development with implications
for Uzbekistan. |