Study Notes on Federalism and Power Distribution

Focus on the horizontal and vertical distribution of power within national governments.
- Horizontal distribution: ways power is concentrated or dispersed within the national government, relating to executive and legislative relations, presidential versus parliamentary systems, and hybrid systems.
- Vertical distribution: relationship between central/national governments and local/subnational governments.

Structure of local governance below the national government.
- Two or more layers of subnational governments typically organized around geography.
- Large units often referred to as states, provinces, regions, prefectures, or cantons.
- Examples:
  - 50 states and 1 federal district in the United States.
  - 26 states in Brazil.
  - 36 states in Nigeria.
  - 16 states in Germany.
  - 10 provinces and 3 territories in Canada.
  - 47 prefectures in Japan.
Local governance includes cities, towns, and villages, each with their own governance structures:
- Mayors, municipal governments, city councils, boards of supervisors.
- Lower layers may include school boards and homeowners associations, which govern specific decisions for localized populations.
Important distinctions in central-local relationships and their implications:
- Most decisions are made below the national government, indicating decentralization.
- Principal of subsidiarity: social and political issues should be addressed at the most immediate level suitable for resolution.

Local governance can lead to tailored policies that reflect local preferences:
- Local control over police, fire services, sanitation, education, and other local concerns promotes democracy.
Public goods at different governance layers:
- National: issues like foreign policy, trade, national defense, clean air and water. These are better managed centrally for effectiveness.
- Local: services such as road maintenance and education often managed more effectively and directly at local levels.

Some policies are best executed at the national level due to economies of scale or standardization requirements:
- Examples:
- Safety standards for electric current, telecommunications, and the internet.
- Social insurance programs like healthcare and elderly care.
- Taxation and redistributing resources, facilitating transfers from wealthier to poorer regions.

Transport policy illustrates shared decision-making:
- Federal funding for interstate highway systems vs. local road maintenance.
- National speed limit discussions (e.g., 55 mph regulation during the Carter administration).
- States may opt out of federal regulations if they assert autonomy (e.g., Texas declining federal speed limits during oil crisis).

Definition of federalism: a system in which governmental power is constitutionally divided between regional and central governments, enabling each to make final decisions on certain activities.
Key concepts in federalism include:
- Geopolitical division: must have mutually exclusive regional governments.
- Independence: regional and national governments must each hold independent bases of authority, derived from separate election and governance.
- Direct governance: citizens must be under the law of both levels of government.

Some policy areas must allow for exclusive authority at each level; others may allow shared authority.
Distinction between federalism and how decentralized power can be:
- Federal and non-federal systems vary significantly on the share of governmental authority at each level.
- Can exhibit asymmetric federalism where some regions hold more powers than others (e.g., Canada’s Quebec).

Constitutionally enshrined power distribution is essential for defining a federal system.
For transformation from unitary to federal, constitutional amendments are necessary.

Fiscal centralization: differences in the share of tax revenue collected at both levels illustrate dynamics in federalism versus unitary systems.
- Often, unitary systems collect more tax at the central level than federations (averages:
- Unitary: approx. 87% tax revenue centralized.
- Federal: approx. 74% tax revenue centralized).
- Notable exceptions may exist where federal systems are more fiscally centralized than certain unitary systems.

Analysis of federal countries worldwide: generally larger, diverse countries tend to adopt federal systems while smaller ones tend to be unitary.
Historical context includes dissolution of former federal states like USSR and Yugoslavia.

Questioning the viability of federal systems within authoritarian regimes, as constitutionally guaranteed powers are often undermined by authoritarian control.

Two logics driving federalism:
- State-building federalism (coming together): Formation of a larger federal government among independent states; example: United States.
- State-preserving federalism (holding together): Shift from a unitary system towards federalism to prevent breakaway of regions that desire greater autonomy.
- Examples of issues leading to push for autonomy include oil wealth in regions like Biafra in Nigeria or Scotland in the UK.

Ethnic federalism: when regions with distinct ethnic identities request autonomy as a condition for remaining within a central government framework.

Devolution as a process where powers are delegated from a central authority, noting the UK’s creation of regional assemblies for Scotland, Wales, and Northern Ireland without a formal constitutional guarantee like that seen in true federal systems.

Examination of the intersection between federalism and bicameralism, noting their tendency to correlate:
- Upper legislative houses often represent states or regions, offering a mechanism for smaller states to avoid domination by larger ones through over-representation.
- Political dynamics suggest that the current political landscape may diminish states' representation in favor of partisanship.

The future structure of federalism is dynamic, influenced by political, economic, and social factors affecting the balance of power.
Next steps in the discussion focus on mechanisms for enforcing federalism through the judiciary and the implications for democratic structures and oversight.