Subnational and Multi-level Politics: Federal, Unitary, and Confederal Systems

Overview of Territorial Organization in Modern States

• All modern states are divided on a territorial basis between central (national) and peripheral (regional, provincial, or local) institutions.

• The balance between centralization and decentralization is shaped by wide-ranging factors:

  • Historical factors.

  • Cultural factors.

  • Geographical factors.

  • Economic factors.

  • Political factors.

• The most prominent factor is the constitutional structure of the state, specifically the location of sovereignty in the political system.

• The constitutional structure provides the minimum framework within which center-periphery relationships are conducted.

• Common forms of territorial organization:

  • Federal systems.

  • Unitary systems.

• A third form, confederation, is generally considered unsustainable as it establishes the loosest and most decentralized political union by vesting sovereign power in peripheral bodies.

Federal Systems and States

• The term "federalism" originates from the Latin word "foedus," meaning "pact" or "covenant."

• Federalism refers to legal and political structures that distribute power territorially within a state.

• Definition: A system of government in which sovereignty is shared between central and peripheral levels, with both levels possessing their own areas of jurisdiction.

• Key Requirement: Federalism requires two distinct levels of government, neither of which is legally or politically subordinate to the other.

• Central Feature: Shared sovereignty.

• Global Reach: Over one-third (approx. $1/3$) of the world’s population is governed by states with federal structures.

• Examples of Federal States:

  • USA (The world’s first federal state).

  • Brazil.

  • Pakistan.

  • Australia.

  • Mexico.

  • Switzerland.

  • Nigeria.

  • Malaysia.

  • Canada.

• Sharing Sovereignty in Practice: In theory, neither level can encroach on the powers of the other.

  • Exclusive state-government domains: Health, education, and state taxes.

  • Exclusive Federal Government responsibilities: National defense, foreign relations, and the minting of money.

• Theoretical Basis: Federal systems are a compromise between unity and regional diversity, balancing the need for effective central power with the need for checks and constraints on that power.

Common Features of Federalism

• The relationship between national and regional levels is determined by constitutional rules and a complex of political, historical, geographical, cultural, and social circumstances.

• Two relatively autonomous levels of government: Both the federal level and the state level possess powers (legislative, executive, and revenue-raising capacity) on which the other cannot encroach, ensuring fiscal independence.

• Written Constitution:

  • Responsibilities and powers are defined in a codified or ‘written’ constitution.

  • The center-periphery relationship exists within a formal legal framework.

  • Neither level can amend the constitution unilaterally.

• Constitutional Arbiter:

  • A Supreme Court interprets the formal provisions of the constitution.

  • The court arbitrates disputes between federal and state governments.

  • The judiciary determines how federalism works in practice, drawing it into the policy process.

  • Centralization trends in the $20^{th}$ century were sanctioned by the courts.

• Linking Institutions:

  • Regions and provinces must have a voice in central policy-making to foster cooperation.

  • This is typically achieved via a bicameral legislature.

  • The second chamber (upper house) represents state interests.

  • Example: The Canadian Senate has a total of $105$ seats. These are assigned on a regional basis, with four major regions receiving $24$ seats each, and the remainder assigned to smaller regions.

Factors Influencing the Formation of Federations

• External Threats: Small, strategically vulnerable states may enter political unions to play a more effective role in international affairs or defend against threats.

• Geographical Size: Many large states opt for federalism. Examples include:

  • USA.

  • Canada (federated in $1867$).

  • Brazil (federated in $1891$).

  • Australia (federated in $1901$).

  • Mexico (federated in $1917$).

  • India (federated in $1947$).

• Large states are often culturally diverse with strong regional traditions, creating pressure for decentralization (transfer of powers away from national bodies) and the dispersal of power.

• Cultural and Ethnic Heterogeneity: Federalism serves as an institutional response to societal divisions.

  • Example: Canada’s $10$ provinces reflect long-established regional traditions and cultural/language differences between English-speaking and French-speaking populations.

Evaluation of Federal Systems

• Strengths:

  • Guarantees a political voice for regional and local interests via autonomous powers and representation in central government.

  • Creates a network of checks and balances to protect individual liberty by diffusing power.

  • James Madison’s principle: ‘ambition must be made to counteract ambition’.

  • Provides an institutional mechanism to maintain unity in fractured or ethnically diverse societies.

• Weaknesses:

  • Inability to stem the $20^{th}$-century tendency toward centralization (concentration of power at the national level due to economic intervention and central revenue-raising capacity).

  • Potential for frustration and paralysis: Constraints on central authority can make implementing bold economic or social programs difficult.

  • Risk of disintegration: Breeding governmental division may strengthen centrifugal pressures, leading to instability or ultimate collapse.

Unitary States and Systems

• Definition: A system of government where sovereignty is located in a single national institution, allowing the center to control the periphery.

• One level of government (central) retains the bulk of political power.

• Examples: United Kingdom, Japan, and Saudi Arabia.

• The vast majority of contemporary states are unitary.

• The UK Example: Sovereign power is vested in Parliament. In theory, Parliament has unrivalled legislative authority; it can make or unmake any law, is not checked by a codified constitution, and its laws outrank all others (English and Scottish law).

• Peripheral or local governments exist at the pleasure of the center; they can be reshaped, reorganized, or abolished at will.

Local Government in Unitary Systems

• Definition: Government specific to a locality (village, district, town, city, or county) with no share in sovereignty and total subordination to the center (or state/regional authority in a federal system).

• Universal Presence: Found in federal, confederal, and unitary systems.

  • In the USA, there are over $86000$ units of local government employing $11000000$ people (compared to fewer than $8000000$ at federal and state levels).

• In unitary systems, local government is often the only form of government outside the center.

• Relevance: Administratively necessary and "close" to the people. Elected local politicians possess democratic legitimacy, leading to bargaining and negotiation with the center rather than simple commands (diktats).

• Influencing Factors: Political culture (traditions of autonomy) and the nature of the party system. Note that politicization by national parties can lead to greater centralization.

• Autonomy Reliance: In unitary systems, local autonomy relies heavily on the self-restraint of the center.

Devolution

• Definition: The transfer of power from central government to subordinate regional institutions. It creates an intermediate tier between central and local government.

• Difference from Federalism: Devolved bodies have no share in sovereignty.

• Administrative Devolution: Regional institutions implement policies decided elsewhere.

• Legislative Devolution (Home Rule): Establishment of elected regional assemblies with policy-making responsibilities.

• Legislative devolution represents the maximum decentralization possible in a unitary system without becoming a federal system.

• Devolution is often a response to centrifugal tensions or nationalist pressures.

• Once devolved assemblies gain political identity and democratic legitimacy, they are difficult to weaken and nearly impossible to abolish.

• Example - Spain: Unitary since the $1570s$, divided into $50$ provinces. Post-$1975$ (death of General Franco), the process extended in $1979$ with the creation of $17$ autonomous communities, especially to meet demands in Catalonia and the Basque area.

Evaluation of Unitary Systems

• Strengths:

  • Boosting Participation: Local government acts as a more effective agent of participation as more people can hold office or engage in local campaigns.

  • Greater Responsiveness: Peripheral bodies are closer to the people and more sensitive to specific community needs.

  • Increased Legitimacy: Decisions made locally are seen as more intelligible and legitimate compared to geographically remote centralized decision-making.

• Weaknesses:

  • Lack of Experimentation: Limited autonomy for local governments means policies are not easily adapted to unique regional needs.

  • Centralized Power Risks: Can lead to corruption, nepotism, regional divides, and autocracy.

  • Detachment: Central government is often disconnected from local realities.

  • Workload: Concentration of power creates an overly heavy burden for the central government.

  • Inequity: National resources may not be distributed evenly; minority interests may be neglected for political reasons.

  • Stifled Initiative: Citizens may become habituated to waiting for central government action, suppressing local initiative.

Confederal States

• Definition: The loosest and most decentralized political union where sovereign power is vested in peripheral bodies.

• Historical Advocates: Anarchists such as Pierre-Joseph Proudhon.

• Intergovernmentalism: Most commonly found in international organizations:

  • NATO (North Atlantic Treaty Organization).

  • UN (United Nations).

  • AU (African Union).

  • Commonwealth of Nations.

• Nation-State Examples: Rare.

  • USA: Originally a confederation under the Continental Congresses ($1774$-$81$) and the Articles of Confederation ($1781$-$89$).

  • CIS (Commonwealth of Independent States): Formally replaced the USSR in $1991$. Established by $11$ of the $15$ former Soviet republics (Georgia and the three Baltic states refused). The CIS lacks executive authority and serves mainly as a forum for debate.

• Sustainability: Confederations often transform into federal states (e.g., USA) or succumb to centrifugal pressures and disintegrate (e.g., CIS).