In this post, notes of “Unit 3: What is Federalism” from “DSC 11: Concepts in Comparative Political Analysis” are given which is helpful for the students doing graduation this year.
1. History of Federalism
Federalism has a long history and changes over time in different cultures. To understand it, we must look at where it came from and how it developed.
Origins and Development of Federalism
Federalism is about sharing power in a government. It developed to balance a strong central authority with local control. Early forms of federalism can be seen in ancient times, but the modern idea mainly started in Europe and North America during the Enlightenment.
- Ancient Roots: Federalism was not always formal but existed in alliances where groups came together under common laws.
- Medieval Europe: In the medieval period, federalism appeared in places like the Holy Roman Empire, where both emperors and local leaders shared power over regions.
- Rise of Modern Federalism: Modern federalism began to form in the 17th and 18th centuries in Europe and the Americas, influenced by new political ideas and a desire for balanced governance.
Early Examples of Federal Systems
Although the term “federalism” became popular in the 18th and 19th centuries, there were earlier examples.
Ancient Greek and Roman Republics
- Ancient Greece: City-states like the Achaean and Aetolian Leagues joined together under a central government but kept some independence.
- Roman Republic: The Senate and regional governments in Rome had power. While not fully federal, provinces had some autonomy under Roman law.
Medieval and Early Modern Federations
- Holy Roman Empire (9th–19th century): This empire was a loose group of Germanic states with many semi-independent areas that shared a common emperor and responsibilities.
- Swiss Confederation: In the 13th century, independent cantons formed an alliance for defense while maintaining their independence.
Influence of the Enlightenment
During the Enlightenment, ideas about federalism developed, focusing on individual rights, divided power, and balancing central and local authority. Thinkers of this time challenged absolute monarchies and sought better ways to protect freedom while ensuring good governance.
Key Thinkers: Montesquieu and Rousseau
· Montesquieu (1689–1755): His book, The Spirit of the Laws, laid the groundwork for modern federalism. He believed in separating government powers and argued that federalism could balance freedom and political control. He thought it was important to allow local laws and customs while having a strong central government.
· Jean-Jacques Rousseau (1712–1778): Known for his ideas on popular power and the “social contract,” he discussed local governance but did not fully advocate for federalism. He believed that power should come from the people’s will.
American and French Revolutions
· American Revolution (1776): The U.S. Constitution was a major outcome of federalism. The colonies wanted to balance local and national power, leading to a federal system that shared powers between the national government and states. The Bill of Rights protected individual and state rights.
· French Revolution (1789): Initially aimed at creating a unitary state, but later ideas for decentralization influenced future federations in Europe. Some, like Sieyès, argued for dividing power, leading to ideas resembling federal systems.
Summary:
- Origins and Development: Federalism grew to balance unity and diversity, from ancient alliances to Enlightenment ideas.
- Early Examples: Ancient Greek leagues, the Roman Republic, and the Holy Roman Empire were early forms of federalism.
- Enlightenment Influence: Thinkers like Montesquieu and Rousseau shaped federal ideas in Europe and North America.
- Revolutions: The American and French revolutions helped establish federal principles, especially in the U.S. Constitution, which served as a model for future systems.
2. Federation vs. Confederation
It’s important to know the difference between federation and confederation to understand how power is shared between central and local governments. Both are ways countries can work together, but they do it in different ways.
Definitions and Key Differences
Federation:
A federation is a system where two or more levels of government share power in a specific area. The central government and local governments (like states or provinces) have their own responsibilities, and both are recognized by the constitution. In a federation, the central government has the highest authority over certain issues, while local governments keep some independence.
- Key Features of a Federation:
- Clear Power Division: The powers between the national government and local governments are clearly defined.
- Supreme Constitution: The constitution is the highest law and shows how power is shared.
- Direct Contact with Citizens: Both levels of government interact directly with the people.
Examples of Federations:
- United States
- Canada
- Germany
- India
Confederation:
A confederation is a loose alliance of independent states or regions. In a confederation, the central government has limited power and gets its authority from the agreement of the member states, which keep most of their independence. Unlike a federation, a confederation cannot directly make laws for citizens and depends on the cooperation of its members.
- Key Features of a Confederation:
- Member States’ Independence: The states keep their independence and only give some powers to the central government.
- Weak Central Government: The central authority has limited power and usually cannot tax or regulate without the states’ agreement.
- Voluntary Agreement: Confederations rely on the voluntary support of member states.
Examples of Confederations:
- European Union (EU)
- Swiss Confederation (before 1848)
- Confederate States of America (1861-1865)
Historical Examples
The United States: Articles of Confederation vs. Constitution
· Articles of Confederation (1781-1789): This created a confederation where the central government had very little power, especially in areas like taxes and military actions. It could make treaties and declare war but couldn’t enforce its decisions.
- Problems: The weak central government struggled to collect money, maintain a currency, and solve conflicts between states, leading to calls for change.
· U.S. Constitution (1789): This replaced the Articles and created a federal system. It gave more power to the central government, allowing it to tax, regulate trade, and maintain a military. This system balanced national and state powers.
The Swiss Confederation
- The Swiss Confederation began as a loose alliance of independent regions in the 13th century, cooperating for defense and economic reasons.
- In 1848, it adopted a federal constitution that created a stronger central government, moving from a confederation to a federal state.
The German Confederation
- The German Confederation (1815-1866) was a loose group of 39 independent German-speaking states formed to coordinate defense and foreign policy. The central authority had limited power.
- In 1866, the North German Confederation was created, leading to the German Empire in 1871, changing it into a more central federal system.
Modern Examples and Comparisons
European Union (EU)
- The European Union is a modern confederation with some federal traits. It includes sovereign member states that have agreed to work together in areas like trade and environment. The central institutions have some power, but member states control many other areas.
- Key Characteristics: The EU operates based on treaties made by the member states and can make laws in certain areas, but it lacks full federal powers like taxation.
Canada
- Canada is a federation where the central government and provinces share power as defined by the Canadian Constitution (1982). Provinces have significant authority over areas like education and healthcare, while the federal government oversees national matters.
- Key Features: Canada’s central government is stronger than in confederations and can make binding decisions.
India
- India is another example of a federation. Its federal system, set up by the Indian Constitution (1950), divides power between the central government and states. The national government holds a lot of authority over issues like defense and foreign policy.
Summary of Key Differences:
| Feature | Federation | Confederation |
| Sovereignty | Shared between central and local governments | Mainly with member states |
| Central Authority | Stronger and has top power in some areas | Weaker, depends on member states |
| Power to Tax and Regulate | Central government can tax and regulate directly | Central government cannot tax or regulate directly |
| Examples | United States, Canada, Germany, India | European Union, Swiss Confederation (pre-1848), Confederate States of America |
| Historical Roots | Developed from central and decentralized systems | Usually a loose alliance of independent states |
Conclusion
The change from confederation to federation, or the other way around, shows how a society’s needs change regarding governance and unity. Federations have stronger central authorities with clear powers, while confederations are more loosely organized and rely on the cooperation of their members. Examples like the EU, Canada, and India demonstrate these ideas in different political situations.
3. Debates About Sharing Power
The way power is shared between national and local governments is an important issue in federal systems. There are many discussions about how to divide power, respect local independence, and how different government levels should work together. These discussions are not just ideas; they affect how countries are governed around the world.
Basic Ideas
Sovereignty and Autonomy
- Sovereignty means a state’s right to rule itself and make its laws without outside interference. In federal systems, this power is usually shared between the national and local governments (like states or provinces).
- National Sovereignty: The national government has the most power over things like defense and foreign affairs.
- Local Autonomy: Local governments can make decisions about areas like education and healthcare without interference from the national government.
Finding the right balance between sovereignty and autonomy is essential for a working federal system. Problems can occur when one level of government tries to take control of areas that belong to another.
Subsidiarity Principle
- The subsidiarity principle says decisions should be made at the lowest level of government possible, unless a higher level can handle the issue better. This principle is often linked to the European Union but is also important in places like the United States and India.
- This means local governments should manage things that only affect them, while the national government should step in when issues affect more than one area or need a uniform approach.
In practice, this principle encourages decentralization but can create challenges about when the national government should get involved.
Main Discussions
Centralization vs. Decentralization
· Centralization: This means putting power in the hands of the national government. Supporters argue that it helps create uniform policies and strengthens national unity, but it can also reduce the flexibility of local governments.
- Reasons for Centralization:
- Creates uniform laws and policies.
- Boosts national unity.
- Allows for better responses to national problems (like health crises).
· Decentralization: This is when power is given to local governments. It can improve local independence and let policies fit local needs, but it can also lead to differences between regions.
- Reasons for Decentralization:
- Encourages local democracy and representation.
- Let’s local governments create policies that match community needs.
- Increases accountability and responsiveness.
Most federal systems try to balance centralization and decentralization, adjusting as needed based on political or social changes.
Fiscal Federalism
- Fiscal federalism deals with the financial relationship between national and local governments, focusing on taxes, spending, and how resources are shared. Key questions include:
o Who can tax and spend?
o How should national money be shared with local governments?
o Should richer areas help poorer ones?
o Key Issues:
- Revenue Sharing: How should taxes be divided? Should wealthier regions give more to the national government or support poorer areas?
- Grants and Transfers: Should the national government give money to local governments for specific projects, or should locals raise their own funds?
- Fiscal Autonomy: Should local governments control their budgets, or rely on the national government?
The debate here is about balancing local control of finances with the need for sharing wealth nationally.
Representation in Federal Systems
· Federal systems often have complex ways to ensure fair representation at both national and local levels. How regions are represented in the national government is a key issue.
o Equal Representation Arguments: Some systems, like the U.S., ensure equal representation for states regardless of size (for example, each state has two senators).
o Proportional Representation Arguments: Other systems base representation on population size, so larger areas have more representatives, which can lead to smaller regions feeling left out.
This debate raises questions about fairness and equality in federal systems.
Examples
United States
- In the U.S., the discussion about power between state and federal governments has been important since its start. Issues like civil rights and healthcare policy often spark debates between state and federal authorities.
- The Supremacy Clause states that federal law is higher than state law, but this balance has changed over time. At times, the national government has taken more control, while at other times, states have had more power.
India
- India has a strong central government. The Constitution divides powers between the central and state governments, with a more centralized structure. The central government has major authority over national issues, but states have significant power in areas like education.
- However, there are ongoing tensions over state autonomy and regional inequality.
Australia
- Australia is another federation where power is shared between the national and state governments. The federal system has shifted towards centralization, especially in economic and social policies.
- A major issue in Australia is fiscal federalism and how resources are fairly distributed between states.
Current Issues
Regionalism and Independence Movements
- Regionalism: As local identities grow stronger, some regions, like Catalonia in Spain, seek more independence or autonomy, challenging national unity.
- Independence Movements: These can lead to debates about territorial integrity and self-determination, with countries like India and Canada facing demands for independence from regions.
Government Cooperation
· Good governance in federal systems needs cooperation between different government levels. Intergovernmental relations help manage issues that cross local and national boundaries, like disaster response.
- In countries like the U.S. or India, these relations often involve negotiations about money and resources.
Policy Coordination and Conflict Resolution
- Policy coordination can be hard when different government levels have conflicting policies (like marijuana laws).
- Conflict resolution is key to keeping federal systems stable. Courts often help solve disputes between national and local authorities.
Conclusion
The discussions about how to share power in federal systems are complicated and involve many issues. Balancing local independence with national unity is challenging, as seen in examples from the U.S., India, and Australia. These debates affect policies and how governments work together.
4. Federalism in Practice
Federalism is not just an idea; it’s a way of governing that needs careful planning, good management, and understanding of politics. How federalism works depends on the laws, rules, and the relationship between the central and local governments.
Institutional Design
Laws and Rules
· Laws are very important in any federal system because they set out how power is shared between the central and local governments, explain their duties, and create a legal basis for their relationship. The laws act like a contract that shows how federal governance should work.
o Example – U.S. Constitution (1787): The U.S. Constitution defines what the federal government and state governments can do and includes the Bill of Rights to protect people’s freedoms from the federal government. The Tenth Amendment says that any powers not given to the federal government belong to the states or the people.
o Example – Indian Constitution (1950): India’s Constitution lists the powers of the central government, the state governments, and the shared powers. It also provides a way to solve disagreements between the central and state governments, mainly through the Supreme Court.
The legal system also explains how to resolve conflicts and who gets to interpret the laws.
Role of Courts
· Courts in federal systems are important for maintaining the federal structure, especially when there are disputes between central and local governments. Courts interpret the laws and decide what powers each level of government has.
o Example – U.S. Supreme Court: The U.S. Supreme Court has a crucial role in interpreting federalism, especially in important cases like McCulloch v. Maryland (1819), which supported federal law, and United States v. Lopez (1995), which limited federal power over the states.
o Example – Indian Supreme Court: The Indian judiciary helps protect the federal structure in the Constitution. For example, in the Kesavananda Bharati case (1973), it established that the central government cannot change the federal balance without limits.
Judicial review is key in ensuring that local governments are not unfairly affected by the central government and vice versa, keeping the system balanced.
Governance and Administration
Division of Powers
· Division of Powers: Federal systems share certain powers, while others are given only to the central government or local governments. This division needs to be clear to prevent disagreements.
o Central Powers: Some powers belong only to the central government, like defense, foreign relations, and currency.
o State Powers: Local governments usually handle areas like education, local law, and health.
o Shared Powers: Some powers, like taxation and infrastructure, are shared. If there’s a conflict, federal law usually prevails.
· Example – Canada: In Canada, powers are split between the Federal Government and Provincial Governments. However, they need to work together on shared responsibilities like environmental protection and public health.
Financial Relationships
· Fiscal Federalism: This refers to how money is managed between different levels of government. It involves how taxes are collected, how money is shared, and how governments spend it.
o Revenue Sharing: A key part of fiscal federalism is how money is shared between the national and local governments. Wealthier areas often contribute more, while poorer areas may get financial help.
- Example – Australia: In Australia, the Commonwealth Grants Commission helps distribute money to states to ensure they can provide public services fairly.
o Taxes and Spending: Central governments may control national taxes, while local governments handle local taxes. Financial help is often given to balance resources across regions.
o Budgeting: Federal budgeting is complicated, as the central government works with local governments to fund shared responsibilities. Local governments also suggest budgets that match national goals.
Political Dynamics
Party Politics
· Party Politics: Federalism often leads to the creation of regional political parties that represent specific areas. These parties are important in elections and governance.
o Example – United States: In the U.S., while national parties like the Democratic and Republican Parties are dominant, regional parties can influence state policies. States like California and Texas have seen political changes that challenge national politics.
o Example – India: India’s federal system is shaped by regional parties. While national parties like the BJP and Congress are influential, regional parties like DMK and TRS play a big role in state elections and national coalitions.
Regional parties often push for more power or money for their areas, affecting both state and national policies.
Coalition Governments
· Coalition Governments: In many federal systems, especially when no single party is strong, coalition governments form at both federal and regional levels. These governments require different parties or regions to work together.
o Example – India: India’s coalition politics are common. Many state governments are formed by coalitions of regional parties, while the central government sometimes includes both national and regional parties. This leads to complex power-sharing between the center and the states.
o Example – Germany: Germany’s federal system requires coalition agreements at the state level, where representatives negotiate with the central government on laws that affect the regions.
Power-sharing means that regional parties negotiate for policy changes or financial support in exchange for backing the central government’s plans, which helps maintain political stability.
Conclusion
Federalism is a complex way of governing that needs well-planned institutions, clear power divisions, good financial arrangements, and a careful balance of politics. The Constitution and the judiciary are important for ensuring that the powers of different governments are respected. However, practical challenges in governance often come up in resource distribution, policy coordination, and government relations. Additionally, regional parties, coalitions, and power-sharing show the political flexibility in federal systems but can also create tensions between national unity and local independence.
5. Federalism and Democracy
Federalism is a way of organizing government that helps support democracy. It allows local governments to have more power, protects the rights of smaller groups, encourages people to get involved, and promotes democratic values. However, the link between federalism and democracy can be complicated and has its own challenges, especially when trying to balance independence, togetherness, and good governance.
Federalism and Democracy
Federalism can help a country become more democratic, especially after conflicts or when moving away from strict rule. It helps combine the need for a strong national government with the desire for local control, which is important in diverse societies.
· Decentralization and Governance: By giving power to local and regional governments, federalism allows citizens to have more say in their governance, leading to greater involvement and accountability. It can also help create a lasting democracy by spreading power and preventing one group from dominating.
· Example – South Africa: After the end of apartheid, South Africa set up a federal system to let its different regions and ethnic groups participate in governance while keeping the country united. This system allowed for peaceful power-sharing between the central government and provincial governments.
· Example – Germany: After World War II, Germany adopted federalism to help with its democratic change. The creation of Länder (states) with their own parliaments allowed for participation at various levels and helped ease regional tensions.
Federalism can strengthen democracy by letting citizens be more involved in local decision-making, ensuring that even smaller groups have a voice in politics.
Federalism and Minority Rights
A strong point of federalism is its ability to protect minority rights, especially in countries with many different ethnic, language, or cultural groups. Federal systems can allow minorities to govern themselves while still being part of the larger nation.
· Autonomy for Minorities: In a federal system, some regions might get special control to maintain their culture, language, and traditions. This is vital in multi-ethnic or multi-lingual societies.
o Example – Belgium: Belgium has a federal system that divides the country into regions (Flanders, Wallonia, and Brussels) based on language. This ensures that minority groups, like the German-speaking community, have representation and autonomy.
o Example – India: The Indian Constitution protects minority rights, especially in areas with many ethnic, religious, or linguistic minorities. States like Kashmir had special status, and India’s federal system has managed its diverse groups well.
· Positive Discrimination: Federalism can also support policies that help underrepresented groups, like reservation in India, which ensures representation for marginalized communities, including Dalits, Adivasis, and Backward Classes.
Despite these protections, challenges can arise when a dominant majority might overlook or exclude local minorities, making it difficult to enjoy the benefits of a federal system.
Federalism and Public Participation
Federalism encourages public participation by giving citizens more access to governance at many levels. With more power at the local level, people can engage with politics in a more meaningful way.
· Direct Participation: In federal systems, citizens often have more chances to influence decisions, especially at the state level. They can vote for local leaders, take part in regional votes, and engage with state political parties on local matters.
o Example – Switzerland: Switzerland uses referendums and initiatives often, allowing citizens to vote on specific issues at the federal level, promoting grassroots involvement.
o Example – United States: In the U.S., local elections allow citizens to directly influence decisions that affect their lives. State initiatives and referendums enable people to propose laws directly.
· Empowering Local Communities: Federalism helps ensure that local interests are considered, which is crucial in areas with significant differences in needs. Regional governments can create policies that fit their communities, increasing the system’s legitimacy.
However, issues like voter apathy, low turnout, and unequal access to participation can weaken public involvement in federal systems.
Challenges to Democratic Federalism
While federalism can enhance democracy, it also has challenges, particularly in balancing unity, equality, and autonomy.
1. Unequal Power and Resources:
- A major challenge is the unequal distribution of resources and power among regions. Wealthier areas may have more influence, leading to regional disparities. Poorer regions might feel left out and ask for more independence.
- Example – India: States like Maharashtra and Gujarat are wealthier than states like Bihar and Uttar Pradesh, which can cause tensions over resource sharing.
2. Regionalism vs. National Unity:
- Federal systems can lead to regionalism, where regions focus on their own needs over national unity. This can cause divisions or calls for independence.
- Example – Spain: The Catalan independence movement shows how regional control can conflict with national unity. Similar issues arise with Scotland in the UK wanting more independence.
3. Slow Decision-Making:
- With power shared across different government levels, making decisions can become slow and ineffective due to gridlock. Conflicting policies can lead to policy paralysis, especially in areas like healthcare and education.
- Example – United States: The healthcare debate in the U.S. shows how differing state and federal policies can create complications and inefficiencies.
4. Elite Control:
- In some federal systems, local leaders may control power at the regional level, undermining democracy. This can happen if leaders use the federal system for their own benefit instead of the public good.
- Example – Russia: Although Russia’s federal system is meant to give regions autonomy, the central government in Moscow often controls regional politics, limiting local participation.
Conclusion
Federalism has many democratic advantages, such as promoting democracy, protecting minority rights, encouraging public participation, and accommodating diverse groups. However, it also faces significant issues like regional inequality, political fragmentation, and elite control. For federal systems to work well, they must ensure fair power sharing, equal resource distribution, and full participation from all regions and groups in the democratic process.