Chapter 5 :

Federalism and
State Policies:
Institutional
Arrangements and
Policy Variations
American Federalism
• Decentralization of policymaking is required almost everywhere.
• Nations are not truly federal unless both national and subnational
governments
• exercise separate and autonomous authority,
• both elect their own officials,
• both tax their own citizens for the provision of public services
• Federalism requires the powers of the national and subnational
governments to be guaranteed by
• a constitution that cannot be changed without the consent of
both national and subnational populations
 3

Separation of Powers

• There are different ways of organizing the distribution of

powers and competences in the political system of a country.

• This distribution can be done:

• in a horizontal way between different branches of government,
usually the executive, legislature and the judiciary,
• and in vertical way between different levels of government.
 4

Separation of Powers Overview

 5

Political Decentralization
• Having different levels of government refers to the idea of
political decentralization, which, in its broader sense,
generally describes legal and political structures that
distribute power territorially to at least two different levels
of government.

• Understood in this broader sense, the notion of

decentralization encompasses three basic systems,
namely:
• confederations,
• federations
• decentralized unitary states.
 6

Political Decentralization

• UNITARY: A unitary state, is a sovereign state governed as a

single entity. The central government is supreme, and the
administrative divisions exercise only powers that the central
government has delegated to them.
• Confederation: Is a union of sovereign independent states
which through a treaty they delegate some powers to
common institutions, usually for coordination of policies or
actions in some strictly defined areas (usually defence and
foreign policy) regarding their relations with third countries.
Each member unit preserves its autonomous international legal
personality, in addition to the functional personality of the
confederation, (former examples are the North American States
during 1776-1787, Switzerland during 1291-1847 and today the
Commonwealth, the European Union, the CIS).
 Cont..
• FEDERALISM is derived from the Latin word foedus
meaning “covenant.” A “covenant” signifies a partnership or
marriage in which individuals or groups consent to unite for
common purposes without giving up their fundamental
rights or identities (Kincaid 2005).
• Federalism is a political system where power is divided
between a central government and various constituent
regions or states. This division of power is typically
preserved in the constitution, ensuring that the powers of
each level of government are clearly defined and protected.
 8

Basic characteristics of federal states

• Constitutionally guaranteed distribution of powers between the
central federal government and the state governments
• Constitutionally guaranteed autonomy of the state, while the
unity of the country is safeguarded under one central
government with one sovereignty and one international
personality, which represents the country as a whole abroad.
• In a federal state there is one common citizenship for all the
citizens of the country.
• There is unity of the people and the economy.
• There are at least two states, each one of which has its own
executive, legislative and judicial institutions.
•The federal state is the only subject of international law and not
the states. Responsibility under international law for actions or
omissions of the federal state lies with the sole legal personality of
the federal state and not with the states.
WHY FEDERALISM?
Protection Against Tyranny
• Among the most important “auxiliary precautions”
planned by the Founders to control government
was federalism,
• which was viewed as a source of constraint on
big government
• opposite and rival interests
Policy Diversity
• State and local governments may be better suited
to deal with specific state and local problems.
Cont..
Conflict Management

• Federalism helps manage policy conflict.

• Permitting states and communities to pursue their own
policies
• reduces the pressures that would build up in Washington
• if the national government had to decide everything.

Dispersal of Power

• Federalism disperses power.

• The widespread distribution of power is generally regarded
as an added protection against tyranny
• They also provide a political base for the survival of the
opposition party when it has lost national elections.
Cont..
Increased Participation

• Federalism increases political participation.

• It allows more people to run for and hold political office

Improved Efficiency

• Federalism improves efficiency

• Imagine the bureaucracy, red tape, delays, and
confusion
• if every government activity in every community in the
nation—police, schools, roads, firefighting, garbage
collection, sewage disposal, street lighting, and so on—
• were controlled by a central government in Washington
Cont..

Ensuring Policy Responsiveness

• Federalism encourages policy responsiveness.
• The existence of multiple governments offering
different packages of benefits and costs allows
a better match between citizens’ preferences
and public policy
Encouraging Policy Innovation
• Federalism encourages policy experimentation
and innovation
 Why Federalism? (Cntd)
• Federalism as a state-building tool in post-conflict countries:
• Post-conflict societies are characterized by the lack of trust
among the people and political and social elites.
• Regional elites who may not have a chance to control the
national government may still agree to remain part of the
federal structure as they will exercise some power in their
regional strongholds;
• The combination of self-rule and shared-rule, which is the
hallmark of federalism, is more agreeable to regional elites;
• In some cases, federalism may be the only alternative to
disintegration.
• Federalism is preferred to other forms of decentralization
because it requires the constitutional protection of the powers
of the constituent units as well as the central government, and
prohibits each level of government from encroaching upon the
powers of the other.
 14

Federalism under the Somali Provisional

Constitution

• The Provisional Constitution establishes Somalia as a

Federal Republic (see Articles 1 (1) and 3 (3))

• There are two levels of government:

• The Federal Government;
• The Federal Member States level comprising the
Federal Member State Government and the local
governments (see Articles 48 (1)).
 15

Federalism under the Somali Provisional

Constitution (Cntd)

• The Federal Government and the Federal Member State

Governments are obliged to collaborate, cooperate and
coordinate their activities and policies and foster friendly
relations (see Articles 50-52).

• The key body representing the Federal Member States in

the decision making at the Federal Government level is
the Somali Federal Parliament, where the Federal
Member States are represented by directly elected
members of the Upper House (see Articles 71 and 72).
 16
The Political System of the Federal Republic of Somalia
Federal Government Federal Parliament
National Prime Minister approves House of the Upper House
President (Head of
(Head of State) Government) People

elects in a joint session

elect

Federal Member State

Government

State Executive
elects

State Legislature
elect
elect

People of each Federal

People
Member State
 17

Federalism under the Somali Provisional Constitution (Cntd)

• Major unresolved issues in the Somali Provisional
Constitution with regard to federalism:
• Allocation of powers (Article 54 allocates only four
competences to the Federal Government and subjects all
other matters to future negotiations between Federal
Government and Federal Member States);
• Allocation of natural resources (Article 44 subjects this
matter to future negotiations between Federal Government
and Federal Member States);
• Principles of Public Finance and Revenue (Article 122
subjects this matter to future “discussions” between Federal
Government and Federal Member States).
• Federalization of the Justice System
 18

The Federalization Process in Somalia

• The Provisional Constitution mandates the Somali Federal
Parliament to federalize Somalia (see Articles 48 and 49).

• For this purpose a Boundaries and Federation

Commission (BFC) is established, which has the mandate
to develop recommendations for the Somali Federal
Parliament on the administrative boundaries of Federal
Member State (see Articles 49 and 111E).

• However, Federal Member States are to be established

on the basis of the former (pre-1991) administrative
regions, of whom at least two need to merge based on a
voluntary decision (see Articles 48 and 49).
 19

Potential Misunderstandings of Federalism in Somalia

• Pick and choose a model of federalism:
• Federalism is a much broader concept than a constitutional
arrangement or a political system as it requires consideration of
socio-economic, socio-political, historical, cultural and other factors;
• There are almost 30 federal countries in the world and all of these
countries adopted their own version of a federal system matching its
own historical situation and national needs;
• Federal systems are also required to adjust to changing political
circumstances and ought to be flexible and thus cant be set in stone;
• So there are no blueprint models one could choose to adopt;
• Every country adopting and establishing a federal system must
develop its own solutions and models and adjust these over time
according to its own experience.
 20

Potential Misunderstandings of Federalism in Somalia (Cntd)

• Different levels of one government:

• Every Federal Member State together with the Federal
Government forms the government of Somalia;
• Certain powers and competences are divided between them, but
the different levels of government are inter-dependent and not
independent;
• Coordination and cooperation between the different levels of
government is the central feature of a federal system.
 21

Potential Misunderstandings of Federalism in Somalia (Cntd)

• Territory and citizenship:
• The creation of Federal Member States does not in any way
question the unity of the country;
• Federalism does not tolerate or foster divisions; it rather requires
Federal Member States to treat every citizen residing or hailing from
anywhere in the country equally;
• The Federal Government guarantees a common identity and equal
protection under the law to all people living in all parts of the country;
• Federal Member States are not allowed to limit the movement of
people and goods by any means (on foot, by car, or on a
horse/camelback) from one Federal Member State to another;
• Every citizen can freely reside in, work and establish business
anywhere in the country; the free movement of people and
commodities is at the heart of a federal arrangement.
 22

Advantages of Federal states

1. Distribution of power: The classical horizontal

division of the powers of state (legislative -
executive - judicial) is complemented by a vertical
division of power between the state as a whole and
the individual states. This ensures that there are
checks and balances, helping to prevent abuse of
power.
2. Competition: The states are always competing.
This competition fosters progress and helps to
avoid undesirable developments at the national
level.
3. Diversity: The division of the country in states
guarantees that many economic, political and
cultural centers develop. This provides a more
favorable environment to preserve and develop
specific regional, historical, economic and cultural
features.
 23

5. More democracy: Each citizen has two opportunities to exercise

the most fundamental democratic right, namely the right to vote; in
a federation, elections are held both for the national parliament
and for the parliaments of the individual federated units
6. Citizen-oriented action: Citizens enjoy more rapid access to the
public authorities. It is easier for them to contact politicians
7. and the public authorities than in a unitary state with a remote and
anonymous centre. The government remains closer to the people,
providing more say in issues that directly concern them at both
levels.
8. Identity: The identity and culture of states is protected and
preserved
9. The autonomy of the states is being safeguarded, while important
issues like foreign affairs, national defense, economy, citizenship,
immigration, etc are being handled jointly at the federal level.
10. Development of the country is encouraged through
decentralization and a regional manner. It allows for unique and
innovative methods for tackling social, economic and political
problems.
 24
Disadvantages of federal states

1.Lack of uniformity: The states’ autonomy necessarily means there

are differences between the units. Citizens living in different parts
of the country may be treated differently, not only in spending
programs, such as welfare, but in legal systems that assign in
different places different penalties to similar offenses or that
differentially enforce civil rights laws
2.Complicated: As decisions are taken in many different centers in the
Federal Government and power is shared between the Federation
and the states, it is essential that the various levels of
government co-operate and show consideration for each other.
This interweaving of responsibility is complex and sometimes hard for
citizens to understand
3.Time-consuming: The parliaments, governments and
administrations of the Federation and the federated units have to wait
for initiatives, decisions or consent from each other and engage in
lengthy negotiations in order to arrive at joint solutions. This can be a
time-consuming process.
 25

4. It can lead to duplication of government and

inefficient, over-lapping or contradictory policies in
different parts of the country.
5. It can lead to inequality between the federated
units and lead to unhealthy competition and rivalry
between them.
6. It can lead to neglect in important areas of public
policy. A solution depends on co-operation
between the administrations of the federated
units.
7. It can lead to disputes over power/national
supremacy versus state’s rights
End