unit 18 cooperative
TRANSCRIPT
8/8/2019 Unit 18 Cooperative
http://slidepdf.com/reader/full/unit-18-cooperative 1/11
UNIT 18 UNITARY AND FEDEML
SYSTEMS: PATTERNS AND
TRENDS IN FEDERAL SYSTEMS
Objectives
I~itrod~ction
Distinguishing Feati~resof Unitary and Federal Systems
18.2.1 Purposive Deccntralisiltio~i
18.2.2 Centr;rliuotion
18.3.3 Source ot' I'o\ver ;ind its Arrsnpc~ncnt \.ithi11 thc Systctn
Esaniyles of Fcdcral Political Arrarigcnicnts
18.3.1 The Oonccpt of 1:cdcr:ltion
18.3.2 Deccntraliscd Union
18.3.3 Candomi~iiutn
18.3.4 Other Arrangelncnts
Changing Nature of Federalis111
18.4.1 Johannes Altht~sii~sn Federalisln
18.4.2 American Fedenllists and the Theor?, of Dual I;cJcn~lis~n
18.4.3 Cooperative Federalism
18.4.4 Ititerdependelit Fcdcralisni
Distributioli of Pow ers in Fedcra tio~is
18.5.1 Legislative Distributioli
18.5.2 Distribution ol' I'inclnccs
Let u s Slllll u p
sollle U S C ~ U I B O O ~ S
Answers to Clicck Your Progress Escrcise~
18.0 OBJECTIVES
Tlie main objective of this unit is to tell you about the basic features of unitaryarid federal systems. After going through this unit, you will be able to:
distinguish between unitary and federal systems:
discuss different tvpes of fcdcral political arrangements;
describe the distribution of powers in fcdcrations; arid
cornnient on charlgilig nature of fcdcralism.6
'18.1 INTRODUCTION
Tlie present unit deals with the unitan and fcdcral typcs of political
arrangements. The disti~ictioribct\\cen the two is oftcn not clear even to
specialists and so, a r ~ ffort has bccn made here to clearly explain the contrastbctween the bvo typcs. As you \\fill learn, the distinction between the unitary h d
the federal political systeliis essentially rcsts upon the mode of distribution ofpowers. Then, there are variations within the two systems. More of these are
given in the following pages.
8/8/2019 Unit 18 Cooperative
http://slidepdf.com/reader/full/unit-18-cooperative 2/11
111htituti011s all11 FO~IIIS 11'<;II\C-~IIIIIL+II~ 18.2 DISTIN GU ISHING FEATCJRES O F UNITARYA N D
F E DE RAL S YS T E M S
Thcrc is no univcrsaIl\~accepted definition o f the tcrrii 'unitnn.' and 'federal'.
This i s bccnusc tlicrc lia\lc cmcrgcd \rarictics o f poli tical nrrnrigc~iicrits ike unions.
co~isti tt~tionall~~ccciitrnliscd unions. fcdcrntions. confcdcrntions. fcdcrncics.
associated states. condo~iiinru~iis.cagucs. h!,brids ctc.. \\h ich sliarc or coii ibii ic tlic
structural tkati~rcso f botli thcsc t\\o. Also in tlicir actual \\orkings ninn! i~n i tac
mid fcdcral s!.staiis hnvc dc\clopcd or dclibcratcl! included tlic fcnturcs of eachot ie r.
18.2.1 Purposive Decentralisation
One tinds 'Purposi\,c Dcccntralisntion' - a process through \\.liich the cciitrnl or
the national go\/crnmait trn~isfcrs ts authorit! to the locnl/provincinl govcrn~iic~its
in a gi\,cii jur isdictio~i \vitliin an othcnvisc unitan. s!.stc~ii such as tlic U . K . niid
Frnncc. Dccc~itrnlisatio~i n\r be cffcctcd cithcr through for~ual onstitutional
nmcndmcnts. scckiiig foniinl and irrcvcrsiblc devolution o f po\\,crs or through
iiicrc csccuti\:c orders pro\,iding for tcmpornn dclcgntioii o f cc~ it ra l utliorit!..
Similarl\~. vc ~ioti cc iin rkcd c~itralisatioiio f po\vcrs \vitliin fcdcrnl politics likc the
U.S.A. and India.
18.2.2 Centralisation
Ccntrnlisation. in this contest. rckrs to a gro\\t li in tlic abilit!. o f tlic fcdcrnl
go\crnmcnt to cscrcisc its ai~tliorit!. niid co~ it ro l ll tlic nrcns. \vhicli hnvc bee11
traditio~ iall! rcscn.cd for pro\*incinl compctcncc. Ccntrnlisatioii is due to the
implied po\\vrs, citlier Jiidicinll!. coi istn~ctcd s in the case of the U.S.A.. or as
pro\,idcd in [he Constitutions o f India mid Canada. o f fcdcrnl govcrlimcnt to seek
~intio~ial~nifor~iiit!.n polic! making b!. the provinces. cspccinll\. on subjects likc
health. cducntion. cnvironmcnt and forest mnnagcmcnt. water rcsourccs trade niid
cco~io~iiiccvclopmcnt ctc.. \\h icli have inter-state implications and pan-nationalbearings. Tlic fcdcral gowriinicnt docs this cithcr through for~i ia l rniisfcr o f
sub.jccts frolii pro\~incialurisdictions to concurrent or fcdcrnl jurisdiction. or
through csteiisio~i f its csccutivc authority to pro\/idc guidclincs to the provi~iccs
as to Iiodv to lcgislatc and \\,lint to includc \vitIiin t lic laws framed b ~ .lic State.
Tlic fcdcral Constitution o f Gcr~i ian\. as spccificall!. cmpo\\crcd the fcdcrnl
go\.cr~i~iicnto enact f ra~i ic\vork cgis latio~ibrondl!. co\,cring the nbo\c ~i ic~i ti oi icd
sub.jccts for tlic Lcgislntioii o f the Stntcs. Article 75 o f its coiistitiltioii provides "ifthe Federation adopts framc\\ork Icgislntion. the Stntcs arc bound to adopt the
ncccssan. Stntc statutes \\.i tbin an ndcquatc ti ii ic frnmc stipulated b?. tlic
Icgislntion." Thus. it i s on tlic pretest o f scckirig rii ininii i~i iinifor~iiit !. o f la\\. arid
policy-plpnning that the fcdcrnl govcrnmcnts in man! fcdcrnl states have
cncroacllicd iipori tlic nutoao~ii!. of tlic fedcrating units.
Yet. \\ c call broadly attcmpt to difkrcnt iatc unitan. t-roni fcdcral on tlic basis o f
\an. ing mctliods o f nllocation o f poucrs aiid its arrangaiic~its \.i hin tlic s!*stcm.
But for a neat distinction bct\\ccn tlic (\to. \\ c Iia\lc firsti!. to look at tlic source
o f po\\ cr.
18.2.3 Sources of Power and its Arrangement within the System
Usually \\ithi11 n fcdcral s!.stcm. it i s the \\.rittcn constitution. \\.liicli nllocatcs
poivcrs. authority and co~iipctc~iccso cacli Icvcl of go\:criimcnt (fcdcral n ~ id
8/8/2019 Unit 18 Cooperative
http://slidepdf.com/reader/full/unit-18-cooperative 3/11
regional govcrnmcnts). Co~npctc~iccsicrc rcfc'r to tlic relative autononiy of I ~ ~ i t c ~ r )I I I ~ : F ~C I 'D
S y s t r ~ ~ ~ n :'11tt~r11sIIcgislation and csccution b ~ . go\cnimcnt on tlic sub.jccts assigned to it b\. the ~ r c . l l t ~ sll Frtlrrel S J * ~constitution. It is. tlicrcforc. non-caitralisation that is tlic most iliiportalit feature of i
a federal s\*stcm.
Non-caitralisation is quite different fro~iidcccntralisation in tlic scnsc that tlic
latter c~ivisagcsa poucr-caitrc. (i~si~allycntral govcni~iicnt) 1.1iich according to
its need. may citlicr dcvolw or dclcgatc authority to tlic lower or subordinate
units of government, or \vlicn tlic ~iccdarises. it niaj. rcccntralizc tlic power
again. Therefore. deccntralisatio~i s always conditional and limited. Contrary to
this. non-centralisation is a constitution-based diffusion of poucr aniong plurality ofself-sustaining centres \\itliin a fcdcral s!.staii. In this ~iiodc f distribution.
co~iipctc~icef a regional govcr~~mcntan liardl!. be abrogated or takc~iover b . b
tlie federal govcr~uiiait.Both tlic Ic\.cls of go\cr~i~iicntrc coordinate authorities
c~i.jo\.ing elati\ c indcpcndcncc and autono~ii>~f decision making. Any change in
the constitutional scliaiia of distribution of po\\crs can be ctTcctcd onl!. \\.it11
~iiutualconsent of cacli go\cr~i~iiait.nd that too tliroi~glia \e n. con~plcsprocess
of constitutional' amcndmcnt. Non-cc~itralisatio~is usuall\. acli~cccdand secured
through the doctri~icof separation of poncrs uith cliccks and balances.
On tlic contraq. caitralisation and liicrarcli\. arc t \\o cssc~itial eatures of a .
i~~iitaq.!.steni. Tlic po\\crs arc licavil~. onccntratcd \\ itliin tlic ccntral or national
govcrnmcnt. Unlike tlic fcdcral prc-requisite of a \ \ rittcn constitution. tlic unitary
s\.stcm not ncccssaril>. nccds a foniial \\ rittcn constitution. Ihc sou rcc of po\vcr
is not the constitution. but to dran tlic U.K. cspcricncc. it is the -King-in-
Parl iama~t' froni \vhicli c~iia~iatcll tlic po\\crs. Tlic local govcrnliicnts draw
tlicir authority from tlic cc~itralgovcrnmait. Also \vitIiin a unitan. systaii. po\\ crs
arc arranged hicrarcliically \vlicrc each subordillate structure of tlic governmait
acts as a11 cstcndcd anii of tlic superior apes authorit). i.c.. tlic cc~itral
govcrruiiait. Tlic rcgionall local ad~iiinistration i.jo!-s only li~iiitcd ilnctiolial
autonom!.. As a matter of fact, auto~lomy vitIiin a unitan. s!.stan is a liiattcr of
fu~ictionalconvcniaicc. ratlicr being an essential constitutional principle of 'po\vcr-
sharing' and 'self-n~lc'.1-licrcforc. tlic cstc~it f fi~~ictionaliltonom!. is rclati~co
the dcgrcc of administrati\c-political dcccntralisation at a gi\.cn point of ti~iic
\tithin a unitan. s\ stem. Administrati\,c dcccntralisation is o~ic f tlic mcchanisms
of devolution tlirougli \\liicli tlic central authorit! 'otf-load' so~iic f its fi~lictions
to the local govcni~iic~itor tlicir bcttcr management. and to ensure a11 cfficic~it
national service dclivcq. s!stc~ii. Thus. it is only i n tlic 'off-loaded' area 111icrc
tlie regional governnicnt c~ijoys utonom~~nd indcpcndc~icc f decision-making.
Another noticcablc diffcrcncc bct~vccnunitay and fcdcral s!.stcm lies in tlic
nianlier and purpose of territorial dcli~icatipnof administration. While in a unitay
s).stcrn. tcrritori;ll administration is fonnd purely froni functibnal pcrspcctivc and "
broadly to scrvc as an agency of tlic ccntral govcrnmcnt. territorial forniation of
pol it ics \\~itIiin fcdcral s~. st c~ iis i~itcndcd o accolii~iiodatcpluralism \\ itliin a
fcdcral state. It is probabl!.. tlic reason that tlic territorial units enjoy considcrablcconstitutive autononi~and com pctaiccs. *
Check Your Progress 1 .Note: i) Use tlic space given belo\\. for !.our ans\\.cr
ii) C h c c k ~ ~ o u r a ~ i s \ v c r \ v i t l i t h a t g i v c ~ i a t t h c c n d o f t h c ~ ~ ~ i i t
1) Compare and contrast a unitan. political sj.staii \vith a fcdcral onk.
8/8/2019 Unit 18 Cooperative
http://slidepdf.com/reader/full/unit-18-cooperative 4/11
i n s t i t u t i o n s a n d F o r m s o f
G o v e r n m e n t 18.3 EXAMPLES OF FEDERAL POLITICAL
ARRANGEMENTS
On the basis o f the extended meaning o f autonomy and self-rule, varieties o f
politica l arrangenlents are brought within ti le am bit o f the s ti~ dy f federalism.
Tli is include$ firstly, tl ie federations.
18.3.1 Th e Concept of Federation
I t i s a c o ~ ~ ~ p o i ~ n d e dolity consisting o f strong regional governments and a general
or central gove rnment, each possessing considerable atno illit o f autonomy in the
exercise o f competences allotted to them by the constitution. bederation i s formed
on tl ie basis o f sharing o f state's sovereignty. The examples include wel l k ti o w ~ i
federations like India. Canada, U.S.A. etc.
18.3.2 Decentralised Union
Ne xt to it is the decentralised union which, th oi~ gh rim arily a unitary state,
include historic sub-national units enjoying considerable anloilnt o f local/regional
functiona l autonomy to manage their exclusive id entity . Thus. i n tile U.K. Scotlandell joys considerable a~ no un t f ailtonom y to manage its own legal system,
education, health, local administration, banking etc. Tlie other examples o f
decentralised unions include Japan. Italy, Ukraine . Indonesia, Netherlands etc.
Unions, u nlik e the above tw o fornis o f polities, are con1poi~nde d ol it ies in wl i icl i
consti t i~ent ni ts retain their respective integrit ies not t l i r o ~ ~ g l il ie systeni o f self-
government, but through tile general government. N e w Zealarid and Leba non are
important esanlples 01' Unions.
W li e ~ i terr itor ial pol i t ical uni t with inte r~ia l el f-rule i s governed join tly by two o r
more external states, it i s termed as a 'C on do min i~~ m. ' n exaniple o f this i s the
Andorra, which ti l l tl ie otl ier day ( 1 278- 1993) functioned under tl ie jo int rule o f
France arid Spain.
18.3.4 Other Arrangements
W hile tliese forms o f politic al arrangenients are operative at tlie national level,
confederations, (eg. European Union, Co mm on W ealth o f Independent States,etc.); Leagues (fo r exilniple, tlie various region al arrange~ nents ike tlie South
As ia Associati011 for Regional Cooperation (SA ARC ), Ara b League, Association
o f Sou tl~ ast Asian Nations (ASEAN ), No rth Atlantic Treaty Organisation
(N A TO ) etc.); arid Joint Functional Autho rities l ike International Labou rOrg anis atio~ i IL O ) etc. are arrangement wo rking at tl ie international and trans-
regional levels. A ll these arrangements, work tl iroug li a joint-decision ma king
process arid are fornied tl ir oi ~g li collective desire o f individ ual countries to
address joi nt ly tl ie comm on economic and politica l interests and motives.
Check Your Progress 2
Note: i) Use the space given below for your answer.
ii) Check your answer w ith that given at tlie end o f tlie unit.
8/8/2019 Unit 18 Cooperative
http://slidepdf.com/reader/full/unit-18-cooperative 5/11
1) What is a federation? Give examples. l in i tary and Fe d e r a lSystcms: P a t t e r n s r l ~ d
Trends i n F e d e r a l S y s te n ~ s.......................................................................................................................I.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
2) What is a decentralized union? Exp lain with examples.
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
3) Write a short note on otl ier federal p olitical arrangements you kno w of.
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
18.4 CHANGING NATURE O F FEDERALISM
Federalism, orig ina ting from tlie L at in word foeclirs, nieaning 'compact', lias
always been an integral p art o f tlioug lits on nation-state, democracy, sovereignty,
autonomy and constitutionalism. However, there have been varied views on its
nature and type.
18.4.1 Johan nes Althusius on Federalism
The first ever systeniatic treatnient o f tlie subject was provide d by tlie Gertiian
theorist, Johannes Altliu siu s ( 1 557-1638). In l i is celebrated work, P oli tic u
Methodice Digesto, Althusius holds that every l i i ~n ia n ssociation is formed by a
"pactum expresseeni vel taeituni" that is, tlie pact or covenant is tlie fir st
funda~nen tal rinciple o f ' l iv ing together', and sut)sequent forniation o f a federal
union. Fro m this follo we d t lie eliiergence o f federal s111 as an impo rtant p olitic al
principle o f organising society and polity .
18.4.2 Am erican Federalists and the Theory o f Dual Federalism
Tlie next important stage in tl ie development o f federalism is tl ie discovery o f
'federal state' in Ame rica by the Federalists - Hamilton, Jay and Madison, whopremised American federalism on the concept of a dual federalism. The theory o f
dual federalism, according to Edwa rd Corwiti, represents tl ie syntl iesis o f four
axioms:
1 . Tlie national governlnent is one o f enume~.atedpowers only; 2. Also the
purpose wli icl i i t niay cons titutionally proniote are few; 3. W ithin tl ieir
respect ive spheres, t l ie tw o centres o f g o v e r ~ ~ ~ i i e ~ i tre "sovereign" and lielice
"equal"; 4. 'The rela;;on o f tlie tw o centres wi th each other is one o f tension
rattier than col aboratic.~."
As observed by Carl J. Friedrich in l i is book Tre~iclsof Fe(1ertrlis1ii in Theory
an d Practice, 1968, tlie federalist further argued "tlir., in a federal systeni o f
8/8/2019 Unit 18 Cooperative
http://slidepdf.com/reader/full/unit-18-cooperative 6/11
Institutions and F orms of governn1ent. each citizen belongs to t w o comm unities, that o f his state and that o fG o v e r n m e n t
the nation; that these two levels o f com mu nity should be clearly distinguished and
effectiv ely provided each with their ow n government; and that in the structuring
o f the government o f the larger commun ity, the compone nt states as states must
play a distinctive role. Contrary to the earlier notion... the federal system here is
not composed me rely o f states, as is a league, but creates a new comm unity, al l
inclusive o f the citizens o f all the states". This stress on the creation o f a larger
national/political com mu nity had over the years led to the emergence o f the 1iotio11
o f cooperative federalism.
18.4.3 Coo perative Federalism
Unlike dual federalism, wl1ich viewed two governments as separate and
coordinate entities, the cooperative federalism viewed tw o levels o f government as
mu tually co mp leme nti~ry arts o f a single federal po litica l system. 'The basic
objectives o f cooperative federalism have been define d as: (i) maintaining the
union; (ii)promoting COO welfare o f al l the citizens; and (iii) eeking join t
solution to a common problem. This system is based on the ' internal give and
take' between the federal government and the regional governments. B ut as its
working in the Australian, Canadian and American federalism shows, this notion
o f cooperative federalism caused the tre~ ne nd oi~ sentralisation o f powers and
subsequent reduction i n the autonomy and au thority o f l ie regional governments.
18.4.4 Interdependent Federalism
In recent times 'federal theorists lik e M.J.C. Vile, Da niel J. Elazar, Ronald L.
Watts have developed the notion o f 'interdependent federalism' in which tw o
governme~ltswou ld neither be ful ly independent as is the feature o f dual
federalism, nor w o i~ ld e si~bordinateo other, as is the case in the cooperative
federal sm. T~ILIS. M J.C. Vile in his book The Sfrzrcfure of America11 Federalisni.
1961 defines (interactive) federalism as "a system o f governm ent in wl1icli central
and regional authorities are l inked in a mu tually interdependent po litica l
relationship; in this system a balance is maintained such that neither level of
gove rn~n ent ecomes dominant t o the extent that it can dictate the decision o f theother. Usually, but 1101 necessarily, this system w il l be related to a constitutional
structure establishing an independent legal existence for both central and regional
governments, and providing that neither shall be legally subordinate to the other.
The functions of government will be distributed between these levels (exclusively,
compe titively or cooperatively). initia lly perhaps by a cons titi~t iona l ocument, but
thereafter b y a politica l process. inv olv ing where appropriate the jud iciar y; in this
process, the po litical interdependence o f the tw o levels o f government is o f the
first iniportance in order to prevent one level from absorbing al l effective
decision-making power".
What is stressed licre is the fact that federalism as an institutional arrangement is
founded an tl ie principles of, to use Dan iel J. Elazar's phrase, se lf rille p lus
shared ri l le, "which, iuvolves sollie kin d o f contractual l inkage o f a presi~m ably
permanent character that (I) provides for power sharing, (2) cuts around the
issue o f sovereignty, and (3) supple~nents ut does not seek to replace or dim inish
prio r organic ties where they exist." (E xp lor ing Federulisrn, 1987). Self-rule is
perm itted exclus ively in the matters of local importance, and shared rule is
exercised through interactive partnership between two levels o f government to
take decisions on matters o f conlmol1 interests. Th is takes o ut federalis111fran a
mere structural category to a process "by whic h a number o f separate political
co~ nm uni ties nter into arrangements for wo rkin g out solutions, ado pting o int
policies, and ~na ki ngoin t d ecis io~ is n joi nt problems." (Carl J. Friedrich, Trel~cls
of Fec/ertrli.sttt it1 Theory trnd Prcrcfice. (1968 ). Wh at appears fro111 tlie above is
8/8/2019 Unit 18 Cooperative
http://slidepdf.com/reader/full/unit-18-cooperative 7/11
that a federal polit y is csscntiall!. a part icipa tory polit!!. attctnpting a l\vays to scck I ' t ~ i t ~ ~ r yIII~I;c.tler;~
S)stc.tlls: I ' ~ t t c . r ~ ~ sl l ldcquil ibriuni bct\\.ccn t\vo csscntial pri~ icip lcs f 'autonom!~' a i d 'integration'. 'l'rc.l~tIs ill I;c.dt.r;tl S y n t e
Check Your Progress 3
Note: i) Use the space g i w i below for !,our ans\vcr.
ii) Check !.our ruis\vcr \\.it11 that gi \.cn at tl ic end o f the un it.
I) What \vcrc Jolirui~lcsAl tlii ~s ius ' \*ic\vs on fcdcralism'!
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
2) What do you i~ndcrstaridb\. Dual Fcdcralism'?
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
3) Esplain \\hat is Cooperati\-c Fcdcralism'?
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
.......................................................................................................................
18.5 DISTRIBUTION O F POW ERS IN FEDERATIONS
l'hc federa l-political s!.stan is opc rati\lc in 2 5 countries nruiicl!*. Argentina.Aus tralia. Austria. Bclgium . Brazil. Canada. Comoros. Ethiopia. Gcnnan!: India.
Mala\.sia. Mcs ico. Micronesia. Nigeria. Pakistan. Russia. So i~ tl i frica. St. K ~ t t s -
Ncvis. Spain. S\vitzcrland. United States o f America. Vcnczucla a i d Yi~go slav ia.
Tl ic mruincr o f distr ibut~ono f po\\crs \ a rk s across tl icsc fcdcral systcms. Tlic
Constitution ma!. citli cr cnu~ iicratconly the po\vcrs o f fcdcral government and
Icave the rest for the states as i n tlic casc o f U.S.A. or likc the C an ad ia~ i nd
Indian Federal consti tutio~is. he. po\\crs o f both the Ic\cls o f go vc r~ i~ i ia l tlong
\\it11 their concur&nt ji~risdictio~isrui be cnumcratcd. I t is also not ~icc css ary hat
Icgislativc divisions oFpo\\crs \<ll olio\\ a similar division o f csccutivc a~~tliorit!' .
Thus. \\rhilc in the U.S .A. Canada and Australia. each unit o f gov crnm c~ithas
bccn assigned csc ci~ tiv c csp o~is ibilitics n the sane fields in \\ h id l the!, enjoy
legislative conipctcncc. the sanic is not true in the casc o f S\vitzcrlruid. A us triaand Gcrniany. In thcsc fcdcral systcms, tllc fcdcral go vc rn~ iicn tonly broadly la!rs
down the uniform fra mc \\ork legislation 'w liilc leaving this to be applied b\ - tlic
regional governniclits in ways that take account o f varying rcg io~ ial
circumstances'. Thc Indian and Malaysian Co~istitutio~lslso provide for tlic state
adn ii~iistrat ion f fcdcral la\vs. cspccially in the arcas o f shared concurrent
jurisdiction.
18.5.1 Legislative Distribution
Generally speaking. i n liiost o f the federations. liiattcrs likc f o rc ig ~ i ffairs.
defence and sccurit!.. t ransport a id c o ~ i i ~ i i ~ ~ n i c d i o ~ ~ajor tasing po\\.crs -a id
8/8/2019 Unit 18 Cooperative
http://slidepdf.com/reader/full/unit-18-cooperative 8/11
Institutions and Forms o f
Government
r e g i ~ l a t i o ~ lf inter-state trade, post and telegra pll etc. have been kept w it ll in the
legislative colllpe tcllce o f federal government; and matters relating to social affairs
like Ilealth, education, culture, social development, local self-go ver~lm ent, ocal
ad~ l l i n i s t r a t i o~ lave bee11kept within t l ie purvie w o f states' legislat ion.
However, in federations like India, Canada and Australia the respective
constitutions put the matters like c iv il and crimi na l laws, personal law,
administrat ion o f Justice. bankruptcy and inso tv ency , e ~ lv i r o ~ l~ l l e ~ l tnd forest
management, protection o f w il d life, liigl ier education, weights and measurement,
factor ies and electr ic ity, i~n~nigrationnd emigrations etc. in tlie concurrent
jur isdict ion. On the concurrent list, both levels o f governmen t are competent to
nlake laws, and in-case o f an inc o~ lsis te~ lcyetween the tw o sets o f laws. the
federal laws usually prevail. Further, the residuary powe rs on ~ lla tte rs ot
enumerated in either list may be vested either with the federal governments or
with tlie regional governments. While residuary power is vested with federal
goverllmelits in Canada, India, Belgium. it rests with the state governlllents i n the
U.S.A., ~ u st ra l i a . witzer land, Germany. Austria and Malaysia. But in Spain.
residuary power is co-shared by the federal and state governments.
18.5.2 Distribution of Finances
Mo st o f he federations provide for the collection, sh aring and revenile raisingpowers o f the tw o orclers o f government. Usually, the federal powers o f taxation
include income tax (except the agric ult i~ ral ncome in t l ie case o f India), c i~ s to ~ n
and excise duties and corporation tax. The state powers o f taxation i~ lc lu de
generally, subjects like excise on alcoliol c liquors, taxes on agricultural incom.e,
estate duty, sale tax on tlie sale and purcllase o f goods wi thin tlie te rritoria l
~uri&iiction o f a state. and land revenue. How ever in a ll the federations. there
have occ i~rred er t ical and l ior izo ~l ta l ll 1balances in terllls o f available resoilrces
to the states and its constiti~tionalesponsibilit ies to carry out the costly sociit
welfare programmes. 'To put more sharply, vertical imbalances occur wlle~lhe
c o~ is t i t u t i o~ ia l l yssigned revenues o f both t l ie levels o f goverl i lnellt do not ~i la tc l i
wi th their assigned exl)cnditure ~.esponsibiIity.Horizontal i lnba ~ices ccur "when
t l ie revenue capac it ies o f d i f ferent co ~ls t i tu e~ l tnits vary so that they are not ableto p rovide their citizens wi th services at the same lev el on the basis o f
conlpa rable tax Iqvels." (R .L. Watts, Conlparittg Federul Systenl, 1999)
Hor izontal in lbala~lcesmay also be because o f the vary ing level o f de ve lop ~l le ~l t
among t l ie federating units due to the variat ion in their endowments o f natural
resources, ad~li i~l istrat ivefficiency, and standards o f public services.
For correcting these imbalances, a federal constitution usua lly provides fo r the
fiscal transfer, from centre to states. T o b egin w ith let us note the range o f fiscal
transfers in India. These include:
1) levy o f duties b y the centre but collected and retained by tlie states;
2) taxes and duties levied and collected b y tlie centre b ut assigned. n who le tbthe states;
3) mandatory sl lar ing o f t l ie proceeds o f i l lcome tax;
4 ) perniissible part ic ipatio~in t l ie proceeds o f union excise duties;
5) stati~ tory rants- in-aid o f reveniles o f states;
6) grant for any public purposes; and
7) grant for any specific public purpose.
(B.P.R. V it li a l and M.L.Sastry, Fiscal Federalisnt in India, 2001).
Tlie above transfers are usually made on the basis o f t l ie recommendations o f t lie
Finalice Commission. Horizontal transfer to the states are computed on several
8/8/2019 Unit 18 Cooperative
http://slidepdf.com/reader/full/unit-18-cooperative 9/11
individual criteria such as population. per capita inconic. Ic \c l o f back\\ardncss.
poverty ratio and rc\cIiiIc dctic it ra tio. C'o~ iiparcd o India. tlic Australian
Constitution spcciall!. pro \ ides for t \\ o t! pcs o f arrangcnicnts to correc t tlic
horizontal and vertical imbalanccs. Tlic ! arc:
i) tas-sharing grants. calculated on tlic basis o f co nip i~ta tion f the basic
cntitlcmcnt: tlic rcvcnilc and cspcnditurc disab ility o f cacli statc: and
ii) spccitic purpose grant. an important Aus tralian innovation. ai~ ii c d t tinancing
social schcmcs like education. licaltli and infrastructure building in tlic statcs.These t\vo niodcs o f transfer. bcsidcs cor rc ct i~ igmbalanccs. arc also i~itc~idcd
to equal ize t l ~ c iscal capacities o f cacli statc. On tlic otllcr hand. tlic
Canadirui Federation lias cnibarkcd on sc\,cral nicclianisnls o f tiscal transfers.
l'licsc include:
i) Sta ti~ton . i~bsidicspaid to cacli pro\fincc as part o f the ternis o f
confcdcration:
ii) Eq i~alisa tion rants to less cndo\\cd pro\.inccs:
i i i) Stabil isatio~ipa!.mcnts on one-tim e basis:
iv) Establisllcd programme financing (i.c . national go\~crnmcnt's contribution
to tlic pro\ inccs) o f the hosp ital insurance. ~iic dic arc nd post-sccondarl\,cducation: and
v) Specitic niatcliing grants to tlic programmes cspccially devised by thep rovincia l g~ \ ~c rn ~ i i a i t s .iniilarl!,. in U.S.A. nicclia ~iisnis f fiscal tra ~is fc r
includc:
i ) Categorical grants for insuring i~~i i fornievel o f p i~b l ic crviccs
providcd across tlic countrl\.:
ii) Bloc grants. to be used by tlic statcs on discrctionarl\ basis. for tlic
com mun ity dc \'clo pm ait programmes. hcaltli. cmplo!.mcnt and trainin g
and otlicr social services: and
iii) G c~ icr al c\fcnuc sliaring as provided in tllc statute.
In Gcrnian!: rc\~c nuc ron i in co ~ lic ascs. co rpo rat io~ i axes and turno\.cr
tascs belong jo int l! to the federal go vcnim ait and the statcs. bcsidcs
special grants to \\.cak statcs to ensure mininiu m Ic\,cl o f fina ~ic ial
cqualisation arl io~ ig he statcs. Tllc otl icr fcdcrations follo\v cithcr o f t l ~ c
above nicntioncd nlctllods o f tiscal transfers.
Check Your Progress 4
N o t e : i) Use tlic space g iv a i bclo\v !.our ans\\.cr.
ii) Check your ans\\,cr \\;it11 tliat give11 at tlic end o f the u nit.
1 ) Esaminc Icgislativc distribution in fcdcrations.
8/8/2019 Unit 18 Cooperative
http://slidepdf.com/reader/full/unit-18-cooperative 10/11
Institut ions and Fo rms of2) How are financial powers generally distributed in a federation'?
G o v e r n m e n t
.......................................................................................................................
18.6 LET US SUM UP
In this illlit you have read about tlie i~nitary nd federal political systems. It i s
lioped that now you are in a position to understand tlie differences between the
two types of systems. You liavc also studied tlie different types 01. federal
political arrangements: viz, classical federation, decentralised union, condominiu~ii
etc. Clianging nature of federalism l ias also bee11 ouched upon. 'l'lius,' dual,
cooperative and interdependent federal sm have been explained to you.
Overall, basic featilres of illi itary and lederal systems as well as patterns and
trends in tlie two types o f political systems have been explained to you.
18.7 SOM E USEFUL BOOKS
Austin, Granvi e, Workirlg A Denlocratic Con.s/itution: The Irldian Experience,
New Dellii : OUP, 1999
, Tlw Irrtliun Conslilt~lion:Corrlerslone of a Nolion, New
DeIlii,OLI P, 2000
Burgess, Michael, anrl Alain-G. Gagnon, eds, Corrlpnrative Federerlisnl and
Fetkertrliort: C'orrrl~elirtg Trtrt/i/iorts tnld Fulirre Directioiu, New York,
Harvester. Wlieatslieaf. 1993.
Diksliit, R.D., Tire Poli~ictrlG'eogrtrl~l?~f Fetkernlisrn: An Irljtrry into Origins
trrlcl Sltrbilily, New Dellii. Macmillan, 1975.
Ducliacek, Ivo D., Cbrrllxrrtr/i\v Feclertrli.srrr: The Terriloriul Dirlter~sionof
Politics, New York, Holt, Rineliart and Winston, INC, 1970.
Elazar, Daniel J., ed, Exj~lorirlgFeckercrlism, Tucaloosa, University of Albania
Press, 1987
, Federuli.srn: An Overview, Pretoria, H S RC, 1995
, ed, Federal Sy.sten of the World: A Hcrnclbook of Federal,
Con&deruI arid Au/orlorr!y Arrtnlgernenls, 2nd edn., Harlow. Lolig~iianGroup
Limited. 1994.
, ed., Fetler.crli,srrr As Grcrrld Desigr~:Polilical Phi1osoyher.s nrld
l11e hclercrl Prirtci/~le.Lanliam, University Press o f America. 1987.
Friedrich. Carl.J., .fiendsof
Fetlertrli,sn~n Theory arltk Prcrclice, New York,Praeger, 1968
8/8/2019 Unit 18 Cooperative
http://slidepdf.com/reader/full/unit-18-cooperative 11/11
Khan, Rasheeduddin, Federul Itidiu: A Design for Cl~ ut ~g e,ew Delhi, Vikas,
1992
King, Preston, Federalisni utld Federutioti, London, Croon1 Helm. 1982.
Rath, Sharada, Federalis~ti Today: Approaches, Issues and Tre~ids,New De 1
Sterling, 1984.
Srinivasavardan, T.C.A., Federa/ Coricept: The hiclicrn Experience, New Delhi:
Allied Pub., 1992
Watts, Ronald, Co~t~/)clritigec/erul .'$s/ern.s ill the 1990s. 2nd edn., Kingston,
Ontario, Queen's University, Institute of Intergovernmetital Relations, 1999.
18.8 ANSWERS TO CHECK YOUR PROGRESS
EXERCISES
Check Your Progress 1
I) See Section 18.2
Check Your Progress 2
1) See Subsection 18.3.1
2) See Subsection 18.3.2
3) See Subsections 1 8.3.2 and 18.3.4
Check Your Progress 3
I) See Subsection 18.4.1
2 ) See Subsectio~i 8.4.2
3) See Subsection 18.4.3
Check Your Progress 4
I ) See Subsection 18.5.1 ,
2) See Subsection 18.5.2
Uni tary and F ed c r a l
Systems: I B a t t c r n s and
' T rends i n F e d c r r l Systc~ns