16 International IDEA
Federalism
Which powers should be exercised at which level?
In almost all cases, the federal authorities have sole responsibility for matters such
as defence,
foreign policy, citizenship and immigration, and macro-economics
(such as currency and foreign trade). Beyond this, the extent to which powers are
distributed between different levels of government varies considerably (see Table
4.1). A general trend is for more recent federal constitutions to grant more powers
to the federal level, consistent with an expanding role for government in modern
societies (Irving 2008: 68). In some ‘holding together’
situations, however, a
reverse trend is evident, as divergent regions have sought to expand their powers
at the expense of federal or national authorities (e.g. Belgium, Spain). In practice,
much depends on the degree and intensity of demand for decentralized powers
and on the negotiating strengths of each side.
Aside from a struggle for power and resources, some criteria must be employed
to assess whether the constitutional distribution of powers between different levels
of government is acceptable and practicable. Subsidiarity is an orientating
principle that has been widely—although not universally—accepted as a guide to
finding a good balance. Subsidiarity requires that ‘a community of a higher order
should not interfere in the internal life of
a community of a lower order,
depriving the latter of its functions, but rather should support it in case of need
and help to co-ordinate its activity with the activities of the rest of society, always
with a view to the common good’.
In other words, subsidiarity makes a presumption that powers should rest with
the state, provincial or regional bodies, which should be free to act autonomously.
However, simply acquiescing to every demand for autonomy would not
necessarily produce good government or sustainable outcomes. To avoid
economic
instability, for example, the federal government might need to retain
certain expenditure responsibilities that particularly
affect aggregate demand or
that fluctuate with the economic cycle, such as unemployment benefits. There are
also situations where the use of a power by one state, region or province could
seriously disadvantage or prejudice another (e.g. in
the fields of environmental
protection or interstate water management), as well as situations where it makes
sense for cooperation to extend over internal boundaries in order to achieve
common goals (in the co-financing and maintenance of trunk roads and other
infrastructure projects).
Likewise, a public expectation of minimum standards
throughout the country covering public services,
such as health and education,
might lead to a reasonable call for national regulation of those services. In these
and similar cases, the principle of subsidiarity may justify allocating powers to the
federal level.
International IDEA 17
4. Distribution of powers
Table 4.1. Distribution of powers in selected federal (or quasi-federal) countries
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