Federalism is the doctrine that supports and encourages a process of union between independent states (sometimes also called provinces, federal entities, federal states, commonwealths, territories, etc.), which maintain different areas their laws, but they have a constitution and a shared governance policy (Gerston, Larry, pp. 37-38). The unity that creates a federation (while also missing when a constitution and a government shared commonly known as the confederation). The two levels at which it constitutionally divides powers between them and both the central government; both the individual federal states have sovereignty in their skills. The supporters of this political system called federalists (Gerston, Larry, pp. 37-38).
In this paper, we will identify the current issues and tensions, between the states and the federal government, along with, identifying the fact that whether the states are losing or gaining power in relation to the feds (Gerston, Larry, pp. 37-38).
Discussion
What are the current issues and tensions, between the states and the federal government?
The difference between a highly decentralized unitary state (Decentralization, Devolution, Regionalism) and a federal state is the source of power in a decentralized state it delegated by the State to the regions (devolution) by a law (so it can theoretically take them), while, in a federal state, it provided by a constitution and cannot be changed easily (Gerston, Larry, pp. 37-38). Some of the issues that existed between the states and the federal government based on the following facts. Taxation has three functions, namely resource allocation, stabilization and redistribution of these resources (Gerston, Larry, pp. 37-38).
As federal state, resources shared. (Source of conflict).
The federal government controls only a portion of the resources. Another part controlled by the various federal states ruled by different political parties (sometimes coalitions that have nothing to do with the federal government). Each state assigns its resources according to its own policy, which can be opposed and often is the case that the central government (Source of conflict). Vertical sharing of resources creates conflicts vertical (LaCroix, Alison, pp. 65).
Within the federal country, there is an inter-regional competition. Each state is trying to grow by attracting economic development officers (shareholders, employees, etc) and especially by limiting the unemployed.
Example: In some states, in India, the obligations imposed on employers to hire a minimum percentage of their employees from residents of the Union State (Source of conflict). A horizontal division of economic interest creates horizontal conflicts (LaCroix, Alison, pp. 65).
Then there is a question of autonomy of the federated states, this raises a question of sharing administrative tax body creating a possibility of duplication (LaCroix, Alison, pp. 65).
Finally, the problem of autonomy as a resource for the adequacy of resources resulting from the tax sharing (LaCroix, Alison, pp. 65).
The resources of the federal governments are often larger than their needs as the Federated States have often not enough. This vertical imbalance requires transfer of resources to the states (Source of conflict) (LaCroix, Alison, pp. 65).
Are the states losing power or gaining power in relation to the feds? Why?