Do Policy Makers Think Long-Term?
The RAND Pardee Center for Longer Range Global Policy and the Future HumanCondition seeks to improve understanding of how today’s actions can enhancehumanity’s long-term future. In so many cases, decision-makers focus only onthe near-term. Thus, we are compiling a list of examples where public andprivate sector organizations explicitly acted on a long-term view. As ourdefinition, we say:
Long-term decisions occur when reflecting on potential events decades or more in the future causes decision makers to consider and perhaps choose near-term actions different than those they would otherwise pursue.
For example:
Policies to Address Climate Change: National and local governments worldwide have promulgated plans to significantly reduce or eliminate their greenhouse gas emissions by mid-century in order to prevent damages from climate change that would unfold for decades into the future. While the pace of action has only accelerated as the present-day impacts of climate change have become more apparent, policy makers’ statements, and the importance of long-term environmental assessments such as those produced by the Intergovernmental Panel on Climate Change (IPCC), suggest that governments’ near-term actions are influenced by the anticipation of potential events decades in the future.
U.S. Constitution: As made clear from records of the debates at the Philadelphia convention, many provisions of the U.S. Constitution were influenced by expectations about how the new country might grow in the future. For instance, the bicameral legislature, with membership of one branch based on population and the other on states, was intended to preserve the rights of the original small coastal states as the country expanded into the interior of North America.
Treaty of Versailles: Based on their stated visions and goals, the leaders of the victorious Allied powers all sought, ultimately unsuccessfully, a peace settlement that would prevent another continental war for decades to come.
Not all decisions with long-term impacts represent long-term decisions. For instance, some businesses generate profound long-term changes through a series of steps each motivated entirely by near-term considerations. Bill Gates created one of the world’s largest companies over the course of several decades, but near-term business goals explain all his key near-term choices.
Please suggest your own examples of long-term decisions
We would very much appreciate any examples of past long-term decisions, successful and unsuccessful, and your brief assessment of why these decisions qualify as long-term. We will post the results of this query on the Pardee Center website. You may send suggestions directly to Robert Lempert, Director, RAND Frederick S. Pardee Center for Longer Range Global Policy and the Future Human Condition at: Robert_Lempert@rand.org
Thank you.
For our current list of long-term decisions see: Examples of Long-Term Decisions
We welcome your input. Send suggestions for links and other ideas to lempert@rand.org.
FAQs
Long-term decisions occur when reflecting on potential events decades or more in the future causes decision makers to consider and perhaps choose near-term actions different than those they would otherwise pursue.
What are short term decisions and long term decisions? ›
Short-term decisions often address a temporary circ*mstance or an immediate need while long-term decisions align more with permanent problem solving and meeting strategic goals. These two types of decisions require different types of analyses and different types of accounting and non-accounting information.
How to make a long-term decision? ›
What Are the 7 Steps of Decision Making?
- Investigate the situation in detail.
- Create a constructive environment.
- Generate good alternatives.
- Explore your options.
- Select the best solution.
- Evaluate your plan.
- Communicate your decision, and take action.
The benefits of longer-term thinking are clear. By taking a longer-term view, businesses can make better decisions, achieve greater clarity and direction, improve planning and execution, become more competitive, and improve relations with stakeholders.
What is an example of a short term decision? ›
For example: A customer requests a large order at a reduced price or requests a bid on a large order. The business must decide whether or not to accept the special order. Special orders are a type of short-term decision businesses must make frequently.
What are long term decisions also known as? ›
The correct option is B Capital budgeting. The long term investment decision is also known as capital budgeting decision.
What are examples of good decisions? ›
- 11.Choose to Get a Dog. I wanted to start with something you wouldn't expect. ...
- 10.Choose to Save Money - Automatically. ...
- 9.Choose to Give Money. ...
- 8.Choose to Eat Healthily. ...
- 7.Choose to Exercise every day. ...
- 6.Read a Book every day. ...
- 5.Choose to Get Excited Every Day. ...
- 4.Choose a Career You Love.
In short, developing a long-term strategic plan involves: Defining a clear vision and mission. Analyzing your organization's strengths, weaknesses, opportunities, and threats (SWOT). Setting specific, measurable, achievable, relevant, and time-bound (SMART) goals.
What are examples of decisions in life? ›
Examples include decisions about a career change, moving, buying or selling a house, ending or beginning a relationship, placing loved ones in a full-time care facility, adopting a child, retirement and many more.
What are the three important forms of long-term? ›
Long-term debt is used to finance long-term (capital) expenditures. The initial maturities of long-term debt typically range between 5 and 20 years. Three important forms of long-term debt are term loans, bonds, and mortgage loans.
Long-term financial decisions relate to investment practices. All decisions related to raising capital, repaying debts and using funds for operating and investment activities will be of a financial nature. Financial decisions are made on the basis of various preliminary plans, contracts, calculations and analyses.
Why is long-term important? ›
Long-term goals provide a sense of purpose and direction in life by: Giving you a clear target to work towards. Helping you prioritize your time and resources. Providing motivation and inspiration during challenging times.
What are 5 examples of decision-making? ›
You have many decision-making examples in daily life such as:
- Deciding what to wear.
- Deciding what to eat for lunch.
- Choosing which book to read.
- Deciding what task to do next.
Investing Goals: Long-term investment goals typically take years or decades to reach and may include retirement and saving for college. Short-term investing goals may take months or a few years. Examples of short-term investing goals can include saving for a vacation, wedding or home improvement.
Are strategic decisions long term or short term? ›
Strategic decisions are those decisions that have an influence over years, decades, and even beyond the lifetime of the project. Once a strategic decision is made, it is very unlikely to be altered in the short term.
What is a short-term decision? ›
In management, short‐term decisions are made repeatedly in many different areas, such as pricing, purchasing, maintaining inventory and staffing levels, and establishing which products to sell and which to discontinue.
What is the difference between short and long-term financial decisions? ›
Investing Goals: Long-term investment goals typically take years or decades to reach and may include retirement and saving for college. Short-term investing goals may take months or a few years. Examples of short-term investing goals can include saving for a vacation, wedding or home improvement.
What is the difference between long-term and short-term financial decisions? ›
Duration: The most evident difference between short and long-term financing is their duration. Short-term loans normally have a repayment duration of year or less, though some might be as short as a few weeks or months. Long-term loans, on the other hand, have a longer repayment period, which might last several years.
What is the difference between long-term and short-term finance decisions? ›
Long-term financing includes equity issued, Corporate bond, Capital notes and so on. Short-term financing includes Commercial papers, Promissory notes, Asset-based loans, Repurchase agreements, letters of credit and so on.
