Federalism and its kindred terms (e.g., “federal”) are used, most broadly, to describe the mode of political organization that unites separate polities into an overarching political system so as to allow each to maintain its fundamental political integrity. Federal systems do this by distributing power among general and constituent governments in a manner designed to protect the existence and authority of all the governments. By requiring that basic policies be made and implemented through negotiation in some form, it enables all to share the system’s decision making and decision-making processes.
- 1 DIFFERENT CONCEPTIONS
- 2 CHARACTERISTICS AND OPERATIONAL PRINCIPLES
- 3 EMPIRICAL AND THEORETICAL DEVELOPMENT
- 4 EVALUATION
No single definition of federalism has proved satisfactory to all students, primarily because of the difficulties in relating theoretical formulations to the evidence gathered from observing the actual operation of federal systems. Attempts at definition have also foundered on the problems of distinguishing between (1) the federal principle as a broad social concept and federalism as a narrower political device, (2) two classic but different conceptions of federalism, (3) authentically federal systems and political systems that utilize elements of the federal principle, (4) mature and emergent federal systems, and (5) federalism and “intergovernmental relations” as distinct political phenomena.
Social and Political Principle
Federalism, conceived in the broadest social sense, looks to the linkage of people and institutions by mutual consent, without the sacrifice of their individual identities, as the ideal form of social organization. First formulated in the covenant theories of the Bible (Kaufman 1937–48), this conception of federalism was revived by the Bible-centered “federal” theologians of seventeenth-century Britain and New England (Miller  1961), who coined the term “federal”—derived from the Latin foedus (covenant)—in 1645 to describe the system of holy and enduring covenants between God and man that lay the foundation of their worldview. This conception of federalism was given new theoretical form by nineteenth-century French and German social theorists. Closely related to the various theories of social contract, it is characterized by the desire to build society on the basis of coordinative rather than subordinative relationships and by the emphasis on partnership among parties with equal claims to legitimacy who seek to cultivate their diverse integrities within a common social order (Boehm 1931).
As a political device, federalism can be viewed more narrowly as a kind of political order animated by political principles that emphasize the primacy of bargaining and negotiated coordination among several power centers as a prelude to the exercise of power within a single political system, and that stress the value of dispersed power centers as a means for safeguarding individual and local liberties. This means, in effect, that political institutions common to different political systems, when combined within a federal system and animated by federal principles, are effectively endowed with a distinctive character. For example, while political parties are common in modern political systems, parties animated by the federal principle show unique characteristics of fragmentation and a lack of central discipline that increase the power of local groups within the system as a whole (Grodzins 1960a).
Federation and Confederation
Federal ideas have been systematically conceptualized in two different ways. On the one hand, federalism has been conceived as a means to unite a people already linked by bonds of nationality through the distribution of political power among the nation’s constituent units. In such cases, the polities that constitute the federal system are unalterably parts of the national whole, and federalism invariably leads to the development of a strong national government operating in direct contact with the people it serves, just as the constituent governments do. On the other hand, federalism has also been conceived as a means to unify diverse peoples for important but limited purposes, without disrupting their primary ties to the individual polities that constitute the federal system. In such cases the federal government is generally limited in its scope and powers, functioning through constituent governments that retain their plenary autonomy, and to a substantial degree is dependent upon them.
Both conceptions of federalism have evolved from early federal experiments. The principles of strong national federalism were first applied by the ancient Israelites, beginning in the thirteenth century B.C., to maintain their national unity through linking their several tribes under a single national constitution and at least quasi-federal political institutions (Bright 1959). Several centuries later, the Greek city-states experimented with federal-style institutions as means for the promotion of intranational harmony and cooperation, primarily for defensive purposes, through associations (e.g., the Achaean League) that came close to what were later defined as confederations (Freeman  1893). A modified form of the Greek view was developed by the sixteenth-century theorists (Gierke  1934). They held that federalism meant a permanent league of states united through a perpetual covenant, binding under international law, in which the constituent states delegated enumerated powers to a general government while retaining full rights of internal sovereignty.
However, when the American system—the prototype of modern federal systems—emerged in the late eighteenth century, its architects developed a conception of federalism much like that of ancient Israel. From the first, American federalism functioned to serve a people with a single national identity and was constituted with a strong national government to serve that people on a national basis, though, as late as 1789, The Federalist could describe the new American Constitution as “partly national and partly federal” in deference to the then-accepted views. The successful efforts of the supporters of the Constitution to appropriate the term “federalist” for their own use (Main 1961, ix–xi) restored to common usage the older conception of federalism as a noncentralized national union bound by municipal law, with a general government superior to the governments of the constituent states (Diamond 1963).
Just as the American system became the prototype for other modern federal systems, so the American conception of federalism became the generally accepted one. The other conception was ultimately subsumed under the word “confederation” and its kindred terms. The two systems described by these different conceptions reflect, in part, the distinctions implied in the German Staatenbund (confederation) and Bundesstaat (federation), terms developed in the mid-nineteenth century (Mogi 1931). A certain degree of confusion remains because the terms invented to describe both systems were used indiscriminately for many years.
Though the American conception of federalism is today almost universally accepted as the most accurate usage, the confederal conception remains a living and legitimate aspect of the federal idea in its largest political sense. Today, the latter is most prominent among certain advocates of limited European union (the Common Market exemplifies a confederal form) and among many so-called world federalists.
Federalism and Related Systems
Federal systems are often confused with four other forms of political order that make use of specific federal principles. The use of some federal principles in multiple monarchies, legislative unions, empires, and decentralized unitary systems can have important consequences similar to those in authentically federal systems. But the fact that such principles do not permeate the four systems makes the distinctions between them and true federations extremely important. Federal systems differ from multiple (or dual) monarchies in two essential ways. The central constitutional characteristic of the multiple monarchy is that union exists only in the person of the sovereign and is maintained only through the exercise of executive power in the sovereign’s name. No significant common institutions exist to unite the constituent polities—no common legislatures, no common legal system, and little in the way of a common political substructure. On the contrary, each constituent polity maintains its own political system, which the monarch guarantees to support under the terms of his or her compact with the realm. Multiple monarchies have historically been less than democratic regimes. Even where there have been tendencies toward democratization, the very fact that union exists only by virtue of the common sovereign has tended to elevate the position of the monarch to one of real power. Attempts to transfer sovereignty or the attributes of sovereignty elsewhere, by their very nature, stimulate the division of this kind of association of civil societies into separate polities. Thus, the Austro-Hungarian Empire was held together by the Hapsburg emperors and disintegrated when that family ceased to rule (Sharma 1953, ch. 7). The dual monarchy of Sweden and Norway ceased to function when democratic government was introduced, transferring the attributes of sovereignty from the monarch to the nation(s). In Spain, on the other hand, the inability of the Spaniards to transform a multiple monarchy into a federal system, in a locale that by nature demanded peninsular union of some sort, led to the consolidation of the constituent polities into something approximating a unitary state that remained highly unstable because of the local barriers to consolidation that could be neither accommodated nor eradicated (Elliott 1964).
Multiple monarchies have been transformed into stable and unified polities through legislative union. The United Kingdom is a case in point. The centrifugal tendencies of the seventeenth-century dual monarchy linking England and Scotland were finally eliminated through a legislative union of the two nations in 1707. Legislative union bears very close resemblance to federal union at several crucial points. Though designed to direct public allegiance to a single national authority, the terms of the union encourage the political system to retain certain noncentralizing elements. The government of the nation remains national rather than central in character, since it is created by a perpetual covenant that guarantees the constituent parties their boundaries, representation in the national legislature, and certain local autonomies, such as their own systems of municipal law. Legislative unions usually unite unequal polities. The centralizing tendencies induced by this are somewhat counterbalanced by the residual desire for local self-government in the constituent states. Thus, in the United Kingdom the cabinet has acquired a supremacy not foreseen in 1707, but within the framework of cabinet government Scotland has acquired a national ministry of its own with a separate administrative structure, based in Scotland, for most of its governmental programs (Milne 1957).
Federal systems also differ from empires allowing cultural home rule. Such empires have often been termed “federal”—in some cases because they claim to be. The Roman Empire was the classic example of this kind of political system in the ancient world, and the Soviet Union may well have been its classic modern counterpart. In both cases, highly centralized political authorities possessing a virtual monopoly of power decide, for reasons of policy, to allow local populations with different ethnic or cultural backgrounds to maintain a degree of cultural home rule, provided that they remain politically subservient to the imperial regime. While this often appears to offer a substantial degree of local autonomy, its political effects are purposely kept minimal. Any local efforts to transform cultural home rule into political power are invariably met with suppressive force from the central government, even to the point of revoking cultural rights, as examples from the history of both empires reveal.
Federal systems are clearly different from decentralized unitary states, even though such states may allow local governments considerable autonomy in some ways. In such states, local powers are invariably restricted to local matters, as determined by the central authorities, and are subject to national supervision, restriction, and even withdrawal, though tradition may mitigate against precipitous action by the central government in areas where local privileges have been established. Still, as the English experience has shown, even powerful traditions supporting local autonomy have not stood in the way of great reconcentration of power by democratically elected parliaments when such action has been deemed necessary by a national majority.
Mature and Emergent Federal Systems
Several studies (Macmahon 1955; Wheare  1964) have attempted to draw distinctions between mature and emergent federal systems. The thrust of their argument is that federalism, when used to unify separate political systems to form a new nation, and federalism as a form of decentralized government in an established nation encourage markedly different kinds of political behavior. In the former case, federalism serves as a means to bring tenuous unity to nations composed of highly autonomous polities, with the locus of power remaining among the constituent units. As federal systems mature, so the argument goes, power is increasingly concentrated at the center, and federalism remains only to promote a certain amount of decentralization within an otherwise highly unified political system. Wheare goes so far as to argue that federalism is a transitional phenomenon useful in promoting progressively larger polities, which are then gradually discarded (in fact, if not in form) as an unnecessary encumbrance. This argument may have some validity in describing the history of nonfederal political systems that have utilized federal principles to promote national unity. For example, it can be used to describe the evolution of the United Kingdom into its present constitutional state. It cannot be applied, however, to any of the three exemplary federal systems—Canada, Switzerland, and the United States. Their national ties existed from the first, and their national governments were granted broad powers at the outset. Nor has federalism declined in importance as those nations have matured. There are undoubtedly differences between mature and emergent federal systems, but those differences are more likely to relate to the character of conflict and negotiation between the general and constituent governments than to their relative strengths.
Federalism and Intergovernmental Relations
Because the study of federalism at its most immediately empirical level heavily stresses the study of intergovernmental relations, the two are often considered to be synonymous. Federalism, however, is something much more than the relationships between governmental units, involving as it does principles that are designed to establish the proper character of those relationships and that must also affect the character of other political institutions within federal systems. As already indicated, federalism concerns the way in which federal principles influence party and electoral systems in federal polities just as much as it concerns the way in which local governments relate to their regional or national ones, or to each other. Moreover, the study of intergovernmental relations exists apart from the study of federalism, since such relationships are to be found in all political systems, federal or otherwise, where there is more than one government extant within a given polity.
CHARACTERISTICS AND OPERATIONAL PRINCIPLES
The most useful way to attempt to understand federalism as a political phenomenon is to under—take a survey of the basic characteristics of federal systems, principles, and processes in order to understand both the manner and the direction of their development.
As a first step, it seems necessary to identify the various federal systems that exist today or have existed in the past; only then can we analyze them as operating political systems. However, identifying federal systems is no simple matter, as we have just seen. The difficulties are heightened by the wide functional differences easily observed in the various political systems that call themselves federal and by the often greater operational similarities between self-styled “federal” and “unitary” systems. Contrast, for example, the political systerns of Australia and the Soviet Union, Canada and Mexico, and Switzerland and Yugoslavia, or compare the United States and Great Britain.
Moreover, federal systems have historically been marked by great internal distinctions between theory and practice, perhaps more so than other political systems. In the United States, the measure of the maintenance of federalism was long considered to be the degree of separation of government activities by level, because it was generally believed that such separation actually existed. In fact, American federalism from the first had been characterized by extensive intergovernmental functional collaboration within the framework of separate governmental structures (Elazar 1962). Similarly, the Canadian federal system has always been described as one in which the federal government is clearly dominant—the repository of all powers not explicitly granted to the provinces. Yet since the brief period of federal supremacy in the years immediately following confederation, the provinces have consistently gained power at federal expense (Smiley 1965). The Russian federal constitution went so far as to grant each Soviet republic the right of secession—a patent impossibility under the realities of the Russian political system.
Nevertheless, some basic characteristics and operational principles common to all truly federal systems can be identified, and can help us to define such systems. These may be divided into three essential elements and a number of supplementary ones.
First, the federal relationship must be established or confirmed through a perpetual covenant of union, inevitably embodied in a written constitution that outlines, among other things, the terms by which power is divided or shared in the political system and that can be altered only by extraordinary procedures. Every existing federal nation possesses a written constitution, as do most of the other nations incorporating elements of the federal principle. Juridically, federal constitutions are distinctive in that they are not simply compacts between the rulers and the ruled but involve the people, the general government, and the polities constituting the federal union. Moreover, the constituent polities retain local constitution-making rights of their own.
The political system must reinforce the terms of the constitution through an actual diffusion of power among a number of substantially self-sustaining centers that are generally coincident with the constituent polities established by the federal compact. Such a diffusion of power may be termed “noncentralization.” It differs from decentralization— the conditional diffusion of specific powers to subordinate local governments by a central government, subject to recall by unilateral decision. It is also more than devolution— the special grant of powers to a subnational unit by a central government, not normally rescindable. Noncentralization ensures that no matter how certain powers may be shared by the general and constituent governments at any point in time, the authority to participate in exercising them cannot be taken away from either without mutual consent. Constituent polities in federal systems are able to participate as partners in national governmental activities and to act unilaterally with a high degree of autonomy in areas constitutionally open to them—even on crucial questions and, to a degree, in opposition to national policies, because they possess effectively irrevocable powers.
Areal Division of Power
A third element that appears to be essential in any federal system is the internal division of authority and power on an areal basis (Maass 1959), what in the United States has been called “territorial democracy.” It is theoretically possible to create a federal system whose constituent units are fixed but not territorially based. There were premodern protofederations of nomadic tribes, and some observers have seen federal elements in nations constitutionally structured to accommodate social and political divisions along ethnic, religious, or even ideological lines. Nevertheless, no authentic federal system has existed without an areal basis for the federal division. Historically, when areal divisions of power have given way to divisions on the basis of functional interest, federalism has been replaced by pluralism. In modern democratic theory the argument between Federalists and Anti-Federalists has frequently revolved around the respective values of areal and functional diffusions of power. Theorists who have argued the obsolescence of federalism while endorsing the values used to justify its existence have generally based their case on the superior utility of pluralism (Mogi 1931, 1059–115). Proponents of the federal-areal division argue that the deficiencies of territorial democracy are greatly overshadowed by the neutrality of areal representation of functional interests, and they argue further that any other system devised for giving power to these interests has proved unable to cope with the complexities and changes of interest endemic in a dynamic age while certainly limiting the advantages for local differentiation inherent in the areal system.
Studies of federal systems indicate the existence of other elements that supplement the three basic ones. While all of them are not always present in every federal system, their near universality leads one to the conclusion that they serve important functions in the maintenance of federalism in each. Similarly, while many of them are found individually in various kinds of political systems, it is their combination within a single system structured around the basic elements that is characteristic of federalism.
Generally characteristic of modern federal systems are direct lines of communication between the public and both the general and the constituent governments, which allow the public to exert direct influence on both governments and permit them to exercise direct authority over a common citizenry. The people may (and usually do) elect representatives to all governments that serve them. All of the governments may (and usually do) administer programs so as to serve the individual citizen directly. The courts may serve both levels of government, applying the relevant laws directly.
The existence of those direct lines of communication—one of the major features distinguishing federations from leagues—is usually predicated on the existence of a sense of common nationality binding the constituent polities and peoples of federal nations together, another element requisite for the maintenance of a successful federal system. In some countries this sense has been inherited, but in most it has had to be invented. Federalism in Germany has been based on a common sense of an inherited German nationhood. In the United States, Argentina, and Australia, a sense of nationhood had to be at least partly invented. National consciousness soon became second nature in those countries, since none of their constituent states ever had much more than a partially developed national consciousness of its own. Canada, Switzerland, and Yugoslavia have had to invent a sense of common nationality strong enough to embrace “nationality groups” whose intense national feelings are rooted in the constituent polities. In such newly formed federal systems as India, Malaysia, and Nigeria, the future of federalism is endangered by the absence of a common sense of nationality. Contrary to some theories, federalism has not proved to be a particularly good device for integrating diverse nationalities into a single political system unless it has been accompanied by other factors compelling integration.
Geographic necessity has been a major factor promoting the maintenance of union within federal systems, even in the face of strong pressures toward disunion. The Mississippi Valley in the United States, the Alps in Switzerland, the island character of the Australian continent, and the mountains and jungles surrounding Brazil have served as direct geographic influences promoting unity. More political than “natural,” but no less compelling geographically, have been the pressures for Canadian union generated by that country’s neighbor to the south or for the federation of the German states generated by their neighbors to the east and west.
It has been well demonstrated that the constituent polities in a federal system must be fairly equal in population and wealth, or a
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