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Cooperative v/s Competitive Federalism

Q. Bring out the federal features of the Indian constitution and differentiate between cooperative federalism and competitive federalism. 

 Answer

Federalism is a system of government in which powers have been divided between the center and its constituent parts such as states or provinces. It is an institutional mechanism to accommodate two sets of politics, one at the central or national level and the second at the regional or provincial level.

There are two kinds of federations

1. Holding Together Federation: In this type, powers are shared between various constituent parts to accommodate the diversity in the whole entity. Here, powers are generally tilted towards the central authority. Example: India, Spain, Belgium.
2. Coming Together Federation: In this type, independent states come together to form a larger unit. Here, states enjoy more autonomy as compared to the holding together kind of federation. Example: USA, Australia, Switzerland.

Features of the Federal System of India 

1. Dual government polity.
2. Division of powers between various levels.
3. Rigidity of constitution.
4. Independence judiciary.
5. Dual citizenship.
6. Bicameralism.

All federations might not have all the above features. Some of them may be incorporated depending on what type of federation it is.

Federal Features of the Indian Union 

• Governments at two levels – center and states.
• Division of powers between the center and states: there are three lists given in the Seventh Schedule of the Constitution which gives the subjects each level has jurisdiction.
• Union List
• State List
• Concurrent List

• Supremacy of the constitution: the basic structure of the constitution is indestructible as laid out by the judiciary. The constitution is the supreme law in India.
• Independent judiciary: the constitution provides for an independent and integrated judiciary. The lower and district courts are at the bottom levels, the high courts are at the state levels, and at the topmost position is the Supreme Court of India. All courts are subordinate to the Supreme Court.

Cooperative vs Competitive Federalism 

Based on the relationship between the central and state government–the concept of federalism is divided into- Cooperative federalism and Competitive federalism.

• In Cooperative federalism the Centre and states share a horizontal relationship, where they “cooperate” in the larger public interest.
• It is an important tool to enable states’ participation in the formulation and implementation of national policies.
• The Union and the states are constitutionally obliged to cooperate with each other on the matters specified in Schedule VII of the Constitution.
• In Competitive federalism the relationship between the Central and state governments is vertical and between state governments is horizontal.
• This idea of Competitive federalism gained significance in India post 1990s economic reforms.
• In a free-market economy, the endowments of states, available resource base, and their comparative advantages all foster a spirit of competition.
• Increasing globalization, however, increased the existing inequalities and imbalances between states.
• In Competitive federalism States need to compete among themselves and also with the Centre for benefits.
• States compete with each other to attract funds and investment, which facilitates efficiency in administration and enhances developmental activities.
• The investors prefer more developed states for investing their money. Union government devolves funds to the states on the basis of usage of previously allocated funds.
• Healthy competition strives to improve physical and social infrastructure within the state.
• Competitive federalism is not part of the basic structure of Indian constitution. It is the decision of executives.