Update > Decentralized and Cooperative Federal System

Decentralized and cooperative federal system

2022-09-06

Federal systems gain credibility if the constitution protects the institutional autonomy of the two levels of government by giving them both a full set of powers (legislative, executive and judicial) on the federal and on the regional level of government. However, some the amount of legislative, executive and judicial authority given to sub-unit levels of government varies in different federal systems.

In general, we can distinguish decentralized models where between federal systems where sub-unit governments have a full set of governance institutions that are independent of the national government and cooperative models where national and sub-unit government cooperates more closely in the drafting of legislation.

Decentralized Model

In the USA, Canada, and Australia, each level of government has executive responsibilities that correspond to its legislative powers. This pattern supports the autonomy of the legislative institutions by making sure that each level of government can implement its own legislation.

In this model, each level of government normally delivers programs in its area of responsibility, using its own civil service and departments. Examples of the decentralized model of federalism can be seen in Canada or Belgium. Canada, and Belgium have devolved almost all responsibilities for domestic affairs to its provinces. For example, Canada has no Federal ministry for education. All education policy is decided entirely by the subunit governments.

Political Parties in Cooperative Federal Systems: Germany

Cooperative federal systems used in Germany creates stronger links between regional and national branches of a national parties than in decentralized federal systems. Party members holding regional leadership positions frequently move up to the national party elite, while retaining their role in the regional political system. This combination of leadership positions promotes communication and cooperation between the various branches of the national party. It also contributes to more concentration of political power within political parties than is seen in more decentralized federal party systems.

These closer links between national and regional party branches means that there is more influence (in both directions) between regional and national governments via political party channels. Party leadership on the national exert influence and maintain party discipline on factions in the sub-unit governments. On the other hand, regional party elites may use their presence in the national party executive organs to exercise influence on the politics of the national party.

Source: Federalism and Party Democracy in West Germany

Case Study: Emergence of Regional Parties in India

The foundation of federalism in India is embedded in the Constitution adopted in 1950. The Constitution of India ensured this by clearly defining both authority and functions of Union and State Governments. The Seventh Schedule of the Constitution has divided government matters in three lists: List I (‘Union List’) includes all matters with exclusive power for the Union Government, while List II (‘State List’) lists the matters with exclusive power for the States. List III is referred to as ‘Concurrent List’ where laws can be made both by Parliament and State Legislatures but in case of conflict Union laws will prevail.

At the same time, residual power for legislation has been given to the national Parliament for matters not included in the State List and the Concurrent List. The Constitution under Article 249 also describes the conditions under which Parliament has the power to legislate on matters in the State List in the national interest: This is possible “if the Council of States has declared by resolution supported by not less than two-thirds of the members present and voting."

The Indian Constitution also includes a provision for amending the Constitution including the shifting of subject matters from the State List to the Concurrent List. Throughout the 1950s and 1970s, this provision was used to shift several areas from the state lists to the concurrent list. These include:

Acquisition and requisitioning of property (1956)
• Trade and commerce (1956)
• Archeological sites and remains (1977)
• Education (1977)
• Forests (1977)

There has never been a movement of shifting of a matter from the Union List to the State List or from the Concurrent List to the State List. Given that the constitution sides with the federal government in the event of a conflict over the concurrent list, this was perceived by many as a process of centralization or shrinking of the autonomy of the Indian States.

This period also saw growing opposition to the social and economic policies of the central government that were perceived as widened the existing gap between the rich and the poor and failing to address the issues of ethnic, cultural and religious minorities who were complaining that their concerns were being ignored. The centralized system became synonymous with the Indian National Congress which dominated both national and regional politics during the period. Later, the emergence of some regional political parties over a period of time replaced most of the Congress ruled states, signaling the advent of decentralization at the political level.

These issues resulted in the emergence of ethnic and regional political parties in the north (Punjab and Jammu & Kashmir), south (Tamil Nadu), east (West Bengal) andNorth-east (hill states) of the country. These states that witnessed strong ethnic and regional movements saw a decline in support of the National parties and the consolidation of regional parties. Leaders of regional parties demand more powers to the States (reflected in the slogan of strong States) within a genuine federal framework. The challenge from ethnic and regional parties at the state level forced the large national parties (mainly Congress and the BJP) to move their policies closer to those of the regional parties in order to gain back some of their supporters and form coalitions with them in state legislatures.

After 1991 the dependence of the Union Government on these ethnic and regional political parties has increased and the country has entered the era of coalitions at the national level – yet a tendency of a shrinking area of operation of the State Governments and a weakening of their financial position has gained strength. This may be explained by the division of regional parties between Congress and BJP-led alliances. An important result of the influence of regional parties on national politics was the passing of the 73rd and 74th amendments in 1993.

Source: Parties under Pressure, Political Parties in India since Independence