Empirical review presented considered MF regulation and implementation strategies in SSA and is interspersed with policy formulation theory and process, implementation theory and environments as well as a number of relevant policy implementation models.
Many authors define policy formulation at two broad levels: problem identification and definition which Embrett & Randall (2014) refer to as the agenda setting stage and actual formulation; including decision-making and implementation and evaluation stages. Santos (2012, p. 339) however indicates environment specificity approach to policy making. Similarly, Embrett & Randall (2014) aver policy formulation for microfinance should be random and erratic yet country specific (CGAP, 2011) as MF activities are complex; dictated by the environment that creates them (Santos (2012).
The complex activities of MF correlate with Little (2012, p. 16) and Geyer’s (2012) call for the complexity theory of policy formulation (Hallsworth & Rutter, 2011, p. 18; Cairney, 2012, pp. 1-14) which intimates that policy formulation should be regarded as a system. Therefore, policymaking involves many ideas interacting in a non-linear fashion (Smith & Katikireddi, 2012; Embrett & Randall, 2014); drawing cooperation from policymakers and implementers to ensure that those interactions (Geyer, 2012) can produce new ideas and ways of thinking (Pritchett et al., 2012).