Federalism Introduction

Federalism Introduction

                Federalism is a harmonious system of government, in which the powers are distributed between a union government at the national level and several provincial governments at the sub-national level.

It requires a minimum of two levels of government to create a federal state: (a) The Union government, which takes the responsibility for subjects of law that have a common national interest and (b) the provincial or state governments that look after subjects of regional or provincial interest.

In a true spirit, these governments act independent of each other, when it comes to federalism. This is guaranteed by the proportionate division of subjects and their ratification through a written constitution. It is done so as to ensure a constitutional sharing of sovereignty that prevents the accumulation of unbridled power with the Union government or vice-versa. Notable examples of federal countries include the United States of America, Canada, Australia, Germany, Switzerland and India.

Types of Federalism:

a) Classification Based on Nature of Federalism

The concept of federalism has evolved since its inception and has developed into different models. These models can be decoded as the following types:

(i)Dual/Layer-cake federalism:

In this model, the Union government takes control of crucial subjects such as foreign policy defence, communication, etc, leaving the rest to the provincial units. The domains of both governments are usually exclusive in nature. This characteristic feature gives it the name "layer-cake federalism". An important point to note here is that the Union government hardly interferes into the domain of the state governments. The best example of dual federalism existed in the United States prior to the civil war years

(ii)Cooperative/Marble cake federalism:

This form of federalism insists on the two levels working together as a team. The inter-governmental relations are mostly cooperative in nature, while the autonomy of the states in their spheres is not infringed by the Union government. There is a confluence of powers, resources, and programs between and among the Union, provincial and local governments. There are, however, possibilities of influencing the policies and decision making of the state governments. The process of cooperation is ensured through several means usually. It is done by creating vision documents in planning, dialogues in several centre-state for etc. For instance, the 15-year vision document being prepared by the NITI Aayog in consultation with the states is a notable example. Similarly, the Goods and Services Tax council includes representatives of both the Government of India and the state governments. As there is no water-tight separation of domains between the union and the states, this form of federalism is also called 'marble-cake federalism'.

(iii)Competitive federalism:

It is a type of federalism in which the Union government, states and local bodies compete with each other. This competitive spirit is held in order to provide a better delivery of services and inclusive growth to their citizens. The competition is visible in spheres such as investment opportunities, social welfare schemes and infrastructure development. It is to be noted that competition is not the opposite of cooperation! While through cooperation the units try to seamlessly operate and find solutions, through competition, they try to effectively implement these solutions as against their peers.

(iv) Permissive federalism:

It is a quasi-unitary concept. As part of a federal setup, the states are provided with certain powers through the constitution. However, they depend on permissions from the Union government to administer and take decisions with those powers. This form of federalism is found in instances where the states derive their existence and authority from the Union government.

(v) The "New" federalism

The concept of new federalism was a result of the advocacy that anything that falls outside the division of powers in the constitution shall be entrusted to the state governments. The primary objective of this model is to reduce the disproportionate accumulation of power with the Union government. An example of this is the call for restoration of autonomy and power that the states had lost to the federal government of the United States of America following the New Deal of President Franklin Roosevelt. Through New federalism, the state governments receive block grants for non-specific purposes or in general policy areas.

Importance of Federalism:

• Protection of rights and liberties: The fundamental aspects of the constitution can not be amended arbitrarily by one level of government alone. Such changes require the acceptance of both levels of government.
• Judicial oversight: Courts have the responsibility to interpret the constitution and codify powers of different levels of government, from time to time. Where there is a dispute among them, the apex court takes the role of a neutral arbitrator.
• Financial autonomy: Sources and proportion of revenue allocation for each level is clearly specified to ensure the financial autonomy of the units.
• Dual objectives: The federalism offers a grand design of living together, it two important objectives are to safeguard and promote unity of the country, while accommodating the regional diversity.
• Opportunities for decentralisation: These opportunities are based on the concept of self-rule and shared rule. It strives to make the governance efficient, swift and ensures grassroots involvement in the political process.

Why India Opted for Federalism?

Although the Indian Constitution nowhere uses the term 'federal", it has provided for a governance model, which is essentially federal in spirit. Federalism in India should be studied in the context of its pluralities of culture and its socio-economic conditions on the eve of independence.

With a large population spread across a large pluralistic framework in terms of ethnic linguistic, religious and other diversities, it was necessary to implement a system of polity that would accommodate these pluralities. This was to be done without compromising on building a unified nation. In order to serve the objective, the constitution makers decided on a democratie structure based on federal system of government with a unitary bias. While democracy ensures freedom to the citizens, a federation would ensure the protection of pluralities. This when managed by a strong Union government, ensures the principle of unity amidst diversity' in order to march ahead to progress.

The perils of colonial rule made India a land of severe economic disparities and chronic under-development. As the immediate goal for the newly born nation was to turn around the economic conditions, it was necessary to bring in an administrative system that would combine regional management and centralised supervision. It was thus decided that a federal polity with an empowered Union government will best fit these requirements to achieve the goal.