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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.
It is a form of administrative decentralization. Devolved territories have the power to make legislation relevant to the area, thus granting them a higher level of autonomy. [2] Devolution differs from federalism in that the devolved powers of the subnational authority may be temporary and are reversible, ultimately residing with the central ...
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 ...
Decentralization can make national policy coordination too complex; it may allow local elites to capture functions; local cooperation may be undermined by any distrust between private and public sectors; decentralization may result in higher enforcement costs and conflict for resources if there is no higher level of authority. [150]
Currently, comparative federalism is the core of federalism research. It is applicable to any topic in the field, including second chambers, courts, intergovernmental councils, the trajectory of federations, practices of fiscal federalism, accommodation of potentially conflicting identity groups, and secessionism. [3]
On the other hand, incongruent federalism exists where different states or regions possess distinct ethnic groups. The ability of a federal government to create national institutions that can mediate differences that arise because of linguistic, ethnic, religious, or other regional differences is an important challenge.
A centralized government (also united government) is one in which both executive and legislative power is concentrated centrally at the higher level as opposed to it being more distributed at various lower level governments.
Dual federalism had a significant impact on social issues in the United States. Dred Scott v. Sanford was an example of how Taney's dual federalism helped stir up tensions eventually leading to the outbreak of the Civil War. Another example of dual federalism's social impact was in the Plessy v. Ferguson ruling. Dual federalism had set up that ...