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Decentralization in government, the topic most studied, has been seen as a solution to problems like economic decline, government inability to fund services and their general decline in performance of overloaded services, the demands of minorities for a greater say in local governance, the general weakening legitimacy of the public sector and ...
As a subfield of public economics, fiscal federalism is concerned with "understanding which functions and instruments are best centralized and which are best placed in the sphere of decentralized levels of government" (Oates, 1999). In other words, it is the study of how competencies (expenditure side) and fiscal instruments (revenue side) are ...
Federalism is a mode of government that combines a general level of government (a central or federal government) with a regional level of sub-unit governments (e.g., provinces, states, cantons, territories, etc.), while dividing the powers of governing between the two levels of governments.
In the United States, federalism is the constitutional division of power between U.S. state governments and the federal government of the United States. Since the founding of the country, and particularly with the end of the American Civil War , power shifted away from the states and toward the national government.
The difference between a central government and a federal government is that the autonomous status of self-governing regions exists by the sufferance of the central government [1] and are often created through a process of devolution. As such they may be unilaterally revoked with a simple change in the law.
Governance of the states is divided between the federal and the state governments, with different powers reserved for each, and the federal government has direct administration of the federal territories. Legislative powers are divided between state and federal assemblies, with elections being held every five years.
The relationship between federal and local courts varies from nation to nation and can be a controversial and complex issue in itself. Another common issue in federal systems is the conflict between regional and national interests, or between the interests and aspirations of different ethnic groups.
The most decentralized model of world federalism is the confederation of States, or world confederalism, which gives the States a higher degree of power and freedom in which countries preserve their sovereignty, relinquishing to the federal authority only the powers to manage and regulate intergovernmental relationships.