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BIGGER AUTONOMOUS STATES FIRST by Chito Gavino III
by Federal Philippines | 12:18 PM in autonomous states, charter change, decentralization,federal
republic,federalism,governance |comments (9)
Federalism is based on dual sovereignty of the Federation and the States. In the Federal
Republic every Estado is an autonomous regional component of the Federal Republic.-oOo-
As I have written in one of my previous articles, the first priority in an honest-to-goodness
Charter Change (Cha-Cha) thru a Constitutional Convention (Con-Con) is the shift from highly
centralized Unitary System to a highly decentralized Federal System. The main reason, for this
is to dismantle Manila Imperialism and achieve more effective and efficient governance.
When we adopt a Federal System, we must carefully divide the Philippines into several
autonomous States. The question then is: How many States will compose a federalized
Philippines?
In the book of Dr. Jose V. Abueva titled, Charter Change for Good Governance published by
the Citizens Movement for a Federal Philippines (CMFP), eleven States has been proposed.
These are:
1. Bangsamoro (ARMM) with 5 provinces;
2. Davao Region and Central Mindanao with 8 provinces;
3. Western and Northern Mindanao with 12 provinces;
4. Central-Eastern Visayas with 10 provinces;
5. Western Visayas and Palawan with 7 provinces;
6. Bicol with 7 provinces;
7. Southern Luzon with 8 provinces;
8. Metro Manila (NCR) with 6 provinces;
9. Central Luzon with 7 provinces;
10. Cordillera (CAR) with 6 provinces; andNorthern Luzon with 9 provinces;
The criteria adopted in this proposed division are:
1. Economic Viability
2. Contiguousness; and
3. Culture
The writer, on the other hand, recommends a Two-Step Determination of Autonomous
States to ENSURE economic viabilities of these States with Minimum of financial risk for
both the Federal / National government and State governments.
Here is my proposed initial or first eight States:
1. Bangsamoro (ARMM) with 5 provinces;
2. Davao Region and Central Mindanao with 8 provinces;
3. Western and Northern Mindanao with 12 provinces;
4. Visayas and Palawan with 17 provinces;
5. Bicol and Southern Luzon with 15 provinces;
6. Metro Manila (NCR) with 13 cities and 4 adjacent municipalities;
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7. Central Luzon with 7 provinces; and
8. Cordillera and Northern Luzon with 15 provinces
Yes, the criteria of Economic Viability and Contiguousness are initially given more importance.
After 15-20 years, the Second Step will take place. This means that Congress or the NewParliament will mandatorily review these eight States and see if there will be a need to divide
one or more of these States into a maximum 9to avoid gerrymandering) of two. Of course, the
same three criteria mentioned earlier will guide said review. No need for another Cha-Cha to
do this for Congress or the New Parliament Constitution.
This Two Steps approach will end once and for all questions about economic viability of some
States. This also shows that if we really desire for a Federal Republic of the Philippines in the
earliest time, WE CAN DO IT ONE CHA-CHA. No more of this grassroots/constituent-initiated
transition as proposed by the controversial Consultative Commission (Con-Com) which is
actually a design to delay the adoption of a Federal System in the country. No more of this
two Cha-Chas before a federal system is finally adopted. Of course sufficient time must be
allocated in this regard. No undue rush on Cha-Cha thru Con-Con.
We are aware that some smaller areas would like to become immediately as autonomous
States such as Palawan, Cebu, SoCSarGen (South Cotabato, Saranggani and General Santos),
etc. To be honest, such position somehow presents some serious negative reactions especially
from anti-federal people which use this argument that some federalists are creating their own
fiefdoms. That is why we appeal to these federalists to sober up a little and support our
Two Steps strategy. Those places I mentioned can later on pursue this matter after we
gained more experience and improved the countrys economic standing in implementing the
federal system. How about it guys?
The powers appropriately vested in the autonomous State government must be clearly
specified in its State Constitution. These are:
1. Education
2. Health
3. Infrastructure and Public Works
4. Agriculture
5. Industry
6. Police
7. State Judicial System
8. Communication and Transportation
9. Custom and Taxation10. Others
The autonomous State will have this local government set-up:
Autonomous State
Local Government Units as before:
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1. Provinces / Chartered Cities
2. Component Cities / Municipalities
3. Barangays
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FEDERALISM: New Hope for Mindanao and the Philippines
by Federal Philippines | 11:05 AM in |comments (0)
By SYLVIA OKINLAY-PARAGUYA, Chairperson, MINCODE
WE ARE for a federal form of government. This commitment has been enshrined in our
advocacy since we converged in 1991 as the broadest and largest grouping of cooperatives,
people's organizations, non-government organizations and non-government individuals. It is
within the context of political parity and economic equitythe twin goals of genuine people's
development-- that firmed up our commitment for a federal republic of the Philippines. The
interrelatedness of political stability and economic empowerment are clearly manifested as we
assist and work with the communities in the six regions, as well as in the 25 provinces in
Mindanao. Such relationship can also be gleaned from the national development perspective:
between Mindanao and the central government in Manila.
Federalism as a Peace Option
Our collective quest for peace is anchored on the results of the talks between the government
and the Moro Islamic Liberation Front, between the government and National Democratic
Front, and between the government and the Revolutionary Proletariat Movement in Mindanao.
While we remain optimistic on the mainstream peace process, greater people's participation in
the peace talks must also take place.
One of the most important developments contributing to the shift in the world political
paradigm from a centralized government to federalism has been the demonstrated utility of
federal arrangements in peace-making. In a world well advanced in its movement toward
federalism as the new paradigm for interstate and intergroup relations, we must expect it also
to offer considerable promise for peace-making. As federalists, we work hard to find ever
better ways to utilize and apply federalism to the cause of peace.
There is a certain justification for this seeming truth in that "federal" is a loaded term, one
that, more than simply describing arrangements and institutions, has to do with serious
principles, real attitudes, binding relationships, specific expectations with regard to mutual
trust, in short, the will to federate. Even if the discussion of federalist political culture isrelatively not new on the political science agenda, the sense that federalism can only succeed
where such political culture exists sufficiently also figures into this equation. Even less
expressed is the expectation that federalism has at least one of its major roots in the idea of
federal liberty, that is to say, liberty to do that which is mutually agreed upon in the founding
compact or its subsequent constitutional modifications. Without federal liberty as an accepted
principle neither freedom nor responsibility can develop properly.
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One of the ways to overcome the deficiency seems to be by widening the sphere to be
encompassed by the solution. This is necessary for federal peace-making to take place, in
some cases from the very first. For example, efforts to bring together two separate units are
inevitably problematic not only because it is easy for every issue to turn into a zero-sum game
with one side winning and the other losing, but it also is difficult to transform develop or
transform issues into ones in which both sides win. It is true that in some cases when bothsides are losing sufficiently, widening the sphere helps them come together to control their
losses.
No matter what form federalism takes, how federal institutions are designed, and what federal
principles are emphasized, it is generally clear by now that where there is a positive attitude
toward federalism and a will to build a federal system, where the political society involved
rests on sufficient trust, sufficiently widespread to allow the many leaps of faith that must be
taken to make federalism work, where political culture is either favorable or at least open to
federal arrangements, where all of this leads to a wider understanding of liberty as federal
liberty, then federalism has a good chance of succeeding when used for peace-making. It may
have almost as good a chance if most of those elements are present and some chance even if
one or two of them is. But it seems quite clear that without any, the chances of success are
extremely limited.
Federalism and the Right to Self-Determination
Asserting and reclaiming their self-determination is essential among Lumad and Bangsamoro
peoples.
The Lumad peoples have persistently expressed their own preference for self-determination,
having seen that their absorption into the unitary political system has brought about the
establishment and solidification of a threat to their very own existence and the integrity of
their distinct cultures.
The Bangsamoro have their own distinct identity and vested interest that must be respected
and cannot be satisfied by a continued subscription to political uniformity. With the
Autonomous Region in Muslim Mindanao, the central government has allowed, albeit
grudgingly, a departure from the stranglehold of central authority. The passage of the Local
Government Code in 1991 further chips away powers from central authority; the local
government units from the regional autonomy to the barangay are able to exercise greater
self-determination.
The right to decide and choose that is best for one's self is a sacred right that cannot be taken
away from any individual and citizen. Those deprived of this right are also unable to fulfill their
aspirations for the future.
Under a federal set up, greater powers will be devolved to the local citizenry, making
grassroots participation more meaningful and broaden the powers of the citizens over the
state.
Self-determination comes in many forms. In the political sphere, it comes in the form of semi-
independent units. In the Philippines: sitio, barangay, municipality, province, regional
autonomy, nation. Self-determination grows with increased political autonomy or the ability to
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stand on one's own feet. In the political history of the world, greatest autonomy to political
units is experienced by the states of a federal state.
The more obvious advantage is greater power-sharing between the national or federal
government and the state/local government. Since the states will have their own legislatures,
real decision-making is brought closer home to the people. This is the immediate consequence
of the political re-structuring. But, in fact, the citizens can push further to ensure that in thefederal constitution and the state laws, greater people participation in the decision-making
process is institutionalized.
Federalism and Diversity
This year's Human Development Report of the United Nations Development Programme
highlights cultural diversity. At our end, we also delight in UNDP's 2004 report because that
has been our general advocacy for Mindanao: that we promote respect and understanding
among the diverse and unique groups of people whether they are Lumad, Bangsamoro or
Christian settlers.
Diversity and development might seem to sit oddly together. But they are intimately linked,
and the report seeks to show that they are not related in the way many people assume. The
UNDP's press release says unambiguously that there is no evidence that cultural diversity
slows development, and dismisses the idea that there has to be a trade-off between
respecting diversity and sustaining peace. In countries like the Philippines, and in regions such
as Mindanao, there is enough to argue that indeed diversity plays an important role in
development given the composition of the ethnic groups: 13 ethnolinguistic groups
representing the Bangsamoro people, 18 ethnolinguistic groupings of the Lumad, and the
settlers who are Ilonggo, Ilocano, Cebuano, Boholanon, and so on.
The not too obvious but significant advantage of federalism is its ability to address the
demands of a pluralistic society, meaning one that has a mixture of populations of diverse
cultures and ethnolinguistic identities. This is nowhere more pronounced than in Mindanao,with its Moro population of about 4 million and the Lumads numbering about 2 million,
altogether making about 40% of the total Mindanao population.
It is noted that only in a federal structure of government it is possible to properly and
correctly rule such a society in such a manner as to accommodate the distinctiveness of each
nationality while orchestrating them all towards the common national goal which comprehends
their diversities.
Federalism and Fiscal Management
Although there is a need to establish correlation, it has been noted that the most of the
politically stable and economically advanced countries in the world follow a federal set-up.
These include Germany, the United States of America, Canada, Australia, Brazil, Mexico,Austria, Argentina, and closer to home, India and Malaysia.
It is interesting to note that seven of the top twelve countries in the world in terms of per
capita income in 1997 were federal, while six of the top 12 in gross domestic product were
likewise federal, while six of the top 12 in gross domestic product were likewise federal.
Assuming that we are under a federal structure, would the economic crisis faced by the nation
today be isolated in Manila only? It is definitely possible.
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Decentralized fiscal systems offer more potential for improved macroeconomic governance
than do centralized fiscal systems, because they require greater clarity about the roles of
various players and decision-makers and-to ensure fair play-greater transparency in rules
governing interactions.
Challenges of globalization usher in fiscal reforms in developing countries. Among federalist
countries, the following are noticeable:
Monetary policy is best entrusted to an independent central bank with a mandate for price
stability.
Fiscal rules accompanied by gatekeeper intergovernmental councils or committees provide a
useful framework for fiscal discipline and coordination of fiscal policy.
The integrity and independence of the financial sector contribute to fiscal prudence in the
public sector.
To ensure fiscal discipline, government at all levels must be made to face the financial
consequences of their decisions.
Societal norms and consensus about the roles of various levels of government and limits to
their authority are vital to the success of decentralized decision-making which can happen only
under a federal structure.
Tax decentralization is a prerequisite for sub-national access to market credits.
Higher-level institutional assistance may be needed to finance local capital projects.
An internal common market is best preserved by constitutional guarantees.
Intergovernmental transfers in developing countries undermine fiscal discipline and
accountability while building transfer dependencies that cause a slow economic strangulation
of fiscally disadvantaged regions.
Periodic review of jurisdictional assignments is essential to realign responsibilities with
changing economic and political realities.
Finally, and contrary to a common misconception, decentralized fiscal systems offer morepotential for improved macroeconomic governance than do centralized fiscal systems.
The New Hope for Mindanao and the Philippines
Indeed the federal system is worth looking into as a more ideal set-up for Mindanao and the
Philippines. More importantly, it is one system that may be able to effectively address the
current and peculiar situation of Mindanao not only as a victim of neglect but also as a unique
island-region that harbor three peoples of diverse backgrounds, customs, culture, traditions,
and social systems. More specifically, it is a political option that may help prevent a stalemate
that can lead to another Mindanao war.
Clearly, what Mindanao needs is unity in diversitynot integration, not assimilation-or at leastharmony in diversity. Admittedly, a federal system is friendlier to this idea than the unitary
and centralized system that we have.
Sources:
1. MINCODE Development Agenda: A Socio-Cultural and Political Approach to Mindanao Peace and Development.
2003.
2. B.R. Rodil. Suitability of the Federal System in Mindanao. Undated.
3. Rey Magno Teves. A Federal Republic of the Philippines. Undated.
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4. Rey Magno Teves. Impasse Breaker: An Islamic State Within a Federal Philippines? Intersect. Intersect.
September 1999.
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THE GAINS OF BUSINESS IN A FEDERAL SYSTEM
by Federal Philippines | 5:23 PM in business,federalism,mindanao,philippines| comments (0)
by Antonio R. Santos, Sr.
Just recently, the President of the Philippines called for the expediency to amend the 1987
Constitution. In the eyes of our President, it is high time that we should be sensible of our
countrys malady, and, therefore, undertake the necessity of some speedy and powerful
remedy. We in the Mindanao business community think that no other alternative is more
compelling.
It can be recalled that on September 2004, the pro-active Mindanao business community,
through the Mindanao Business Council (MBC), presented the Mindanao Action Agenda to Her
Excellency Gloria Macapagal-Arroyo during the 13th Mindanao Business Conference
(MinBizCon). As an expression of support to the present administration, we have collectively
committed to the quest for the private sectors important role in the pursuit for just, equitable,
and lasting peace in the island.
One of the private sector commitments under the Mindanao Action Agenda is the shift to a
federal form of government. To help achieve this goal, the MBC and the local chambers of
commerce together with Kusog Mindanaw as the lead non-government organization, commit
to pursue local empowerment under a federal set-up through the establishment of the multi-
sectoral Mindanao Coalition of Cities for Transparent and Accountable Governance.
There is certainly a great economic force behind this advocacy. Regional disparities with
respect to population size, per capita income, administrative capacity and social needs, do not
allow for simple solutions. And so it is important thresh out the issues affecting regional
development in the context of the proposed reform to a federal state.
Investments and Federalism
In the first place, the new system should give due consideration to sustainable and equitable
socio-economic development through the promotion of inter-state and intra-regional
cooperation. Thus, policies on trade and investment will be re-evaluated and planned
according to the regions capacity to produce as well as the demand in the local, national
and/or international market.
For the business sector, this means an increased concentration on local industries, diversified
quality products and greater trade benefits from regional policies. Consequently, businessmen
will have a more conducive and competitive business environment and investors will be able to
make investment decisions over the longer-term. A well-grounded model country that dashed
for economic growth is Malaysia. The success of the Malaysian Government is partly because
of diversification of its manufacturing base, diversification of its export markets, and
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strengthening of its industrial capabilities. In particular, Ipoh, which is in the heart of the tin
mining region and close to the rice bowl sections of West Malaysia, is served by trading firms
specializing in mining and rice farming equipment and supplies. Businesses specializing in
mining and rice farming equipment and supplies and trading centers having countryside
marketing facilities are also a significant source of revenue for the locality.
Taxation and Federalism
In the second place, a federal form of government results in greater autonomy to revise
taxation policies. Since local governments are semi-autonomous entities within the state
framework, review of rates is faster and more reflective of the cost of services that a particular
region provides. And even though tax rates in general are linked to a broader political process,
a federal system would devise and take into consideration the fairer calculation of rates
beneficial to all parties involved within the region. The right of the federal government to levy
taxes shall, as Hamilton puts it, contain in their own nature a security against excess. They
prescribe their own limit, which cannot be exceeded without the end proposedthat is, an
extension of the revenue. Following the politico-economic by Brennan and Buchanan
(Brennan, Geoffrey And James M. Buchanan (1977): Towards a Tax Constitution for Leviathan.
Journal of Public Economics 8: 255-273) federalism leads to lower tax burden. The mobile
factors that are capital and labor render a mobile tax base in the federal states. This induces
the positive force of taxes that matches local situations. Practically, a federal system in
relation to taxation translates to savings for investment, which drives economic growth and
prosperity.
Simplified Bureaucracy
Lastly, the decentralized decision making structure provides greater proximity to the people
and forces the governments to be more responsive to its citizens' (the business sectors)
preferences. Economic development is achieved through inter-sectoral dialogue and equitable
distribution of wealth that render significant improvements in local infrastructure. There would
be more access to local resources, e.g. developing better privileges to local contractors forinfrastructure projects.
Also, a direct impact of a strong link between the government and the business sector opens
broad spectrum of business support services in an effort to achieve a consolidated approach
when representing the viewpoint of private enterprise in its relations with the government.
This would allow the development of small businesses to be competitive with large businesses
in any industry. Through direct involvement and community action, we see rapid development
and the proliferation of our interests.
With these advantages it can hardly be supposed that the adverse position would have an
equal chance for a favorable issue.
.
Advantages and Disadvantages of FederalismTwenty four of the world's one hundred ninety three countries have a federal political set up.Looking at these countries' political history, it can be said there are both advantages anddisadvantages of federalism. Read the following article for an in depth analysis of a federation.
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Federalism is a political system in which the powers are divided between the centralgovernment and numerous regional governments. There is a written constitution which
formulates this power sharing arrangement between the state and its units. These unitsreferred to as the provincial or regional governments have the power to act independently incertain areas of governance. For example in the USA, the local governments have exclusivepowers to issue licenses, provide for public health, conduct elections and form localgovernments, look after the intrastate trade, etc.
Federalism in Today's World
At present, Federalism is being followed not only in first world countries like USA, Australia
and Canada but also in developing countries like Mexico, India and Brazil. Contemplating achange in the governing set up of the nation, some countries like Sri Lanka and Philippines areintently scrutinizing the advantages and disadvantages of Federalism.
Advantages of Federalism
Every province has political, social and economic problems peculiar to the region itself.Provincial government representatives live in proximity to the people and are most of the timefrom the same community, so that they are in a better position to understand these problemsand offer unique solutions for them. For example, traffic congestion in Oahu, Hawaii is aproblem that can be best solved by the local government, keeping local factors in mind, ratherthan by somebody living in New York.
Federalism offers representation to different populations. Citizens of various provinces may
have different aspirations, ethnicity and follow different cultures. The central government cansometimes overlook these differences and adopt policies which cater to the majority. This iswhere the regional government steps in. While formulating policies, local needs, tastes and
opinions are given due consideration by the state governments. Rights of the minorities areprotected too. For example, in states like Arizona where there is a large Hispanic populationand therefore, a large number of schools provide bilingual education.
State governments have the freedom to adopt policies which may not be followed nationally orby any other state. For example, same-sex marriages are not recognized by the federalgovernment of USA but they are given legal status within the states of Connecticut, Iowa,
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Vermont and Massachusetts.
Division of work between the central and the regional governments leads to optimumutilization of resources. The central government can concentrate more on international affairsand defense of the country while the provincial government can cater to the local needs.
Federalism has room for innovation and experimentation. Two local governments can have
two different approaches to bring reforms in any area of public domain, be it taxation oreducation. The comparison of the results of these policies can give a clear idea of which policyis better and thus, can be adopted in the future.
Federalism no doubt has many positives vis-a-vis Communism or Imperialism but still somepolitical scientists often raise questions about advantages of Federalism.
Disadvantages of Federalism
Sharing of power between the Center and the states includes both advantages anddisadvantages of federation. Sometimes there can be overlapping of work and subsequentconfusion regarding who is responsible for what. For example, when typhoon Katrina hitGreater New Orleans, USA, in 2005, there was delay in the rescue work as there wasconfusion between the state governments and the federal government on who is responsible
for which disaster management work. This resulted in the loss of many lives.
Federal system of government is very expensive as more people are elected to office, both atthe state and the center, than necessary. Thus, it is often said that only rich countries canafford it. Too many elected representatives with overlapping roles may also lead to corruption.
Federalism leads to unnecessary competition between different regions. There can be arebellion by a regional government against the national government too. Both scenarios posea threat to the countries' integrity.
Federalism promotes regional inequalities. Natural resources, industries, employmentopportunities differ from region to region. Hence earnings and wealth are unevenly distributed.Rich states offer more opportunities and benefits to its citizens than poor states can. Thus, thegap between rich and poor states widens.
Federalism can make the state governments selfish and concerned only about their ownregion's progress. They can formulate policies which might be detrimental to other regions.For example, pollution from a province which is promoting industrialization in a big way canaffect another region which depends solely on agriculture and cause crop damage.
Federalism does not eliminate poverty. Even in New York, there are poor neighborhoods likeHarlem with a majority of black population. The reason for this may be that during policyframing, it is the intellectuals and not the masses who are invited by the local government.These intellectuals may not understand the local needs properly and thus, policies might notyield good results.
Thus, it is understandable that there have been both advantages and disadvantages ofFederalism in USA. There is a general feeling that the rights of the minorities, like blacks, are
compromised in USA. But at the same time, USA now has a democratically elected African-American President. Similarly, there have been advantages and disadvantages of federalism inother countries as well. For federalism to be truly successful it should be accompanied by
other ideals like Secularism, Democracy and liberalism.