Consensus building in the policy process.Effective policyreform formalizes an emerging political consensus to modifyinstitutions (rules) that now inform and guide the choices ofindividuals, households, informal groups, and firms. Tobuild an understanding of incentives, constraints, andtechnical relationships and dependencies, all interestedparties and decision makers should review and endorseanalyses of current policies and their problems. Theseindividuals must then participate in the determination offeasible policy options, appropriate time frames, andimplementation approaches. Also, effective policy reformdepends on clarity regarding compliance mechanisms —markets, regulatory systems, informal social enforcement,and judicial processes.