To create a policy Haddad recommends the existing situation be first analysis to determine the context of policy formulation. For the policy analyst the educational sector is only part the wider society. Haddad and Demsky (1995) included the importance of : the political and economic sectors. Politically, it is the question of whose plan is it and who is the planner? Is he a national elite or an educational elite? Different plans may result from the different objectives. Economically, the planner examines the skills of their human resources. Haddad and Demsky (1995) suggest an assessment of the needs of the economy can be viewed by examining trends in the various sectors: financial resources, labour markets, taxation and the economic infrastructure so that any proposed changes in the education sector should benefit the economy. Urbanization, migration, death or retirement of the human resources affects the planning.

1. The Context of Policy Formulation

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