Types and forms and systems of government (Federalism) for SS 1

Types/forms/ systems of government (Federalism)

Performance Objectives

By the end of the lesson, students should be able to:

1. explain the meaning of federalism;
2. discuss its characteristics;
3. examine the factors that account for the adoption of a federal system of government;
4. discuss the merits and demerits of federalism;
5. describe how resources are shared in a federal system of government.

Meaning of Federalism

Federalism is a system of government in which power is constitutionally divided between a central national government and several component regional or state governments.

In a federal system, both the central authority and the constituent units (states, regions, or provinces) derive their powers from a supreme constitution. This means that the states or regions are not mere administrative arms of the central government; they possess independent legislative, executive, and judicial powers over matters allocated to them by the constitution. Examples of countries that practice federalism include Nigeria, the United States of America, Canada, Australia, Germany, and India.

Characteristics of Federalism

A federal system of government possesses distinct features that distinguish it from other forms of government, such as unitary or confederal systems. The main characteristics of federalism include:

1. Constitutional Division of Powers: The powers of government are clearly divided and shared between the central government and the component states or regions. This division is usually categorized into three legislative lists: the Exclusive List, the Concurrent List, and the Residual List.
2. Supremacy of the Constitution: The constitution is the supreme law of the land. Any law passed by either the federal or state government that conflicts with the provisions of the constitution is null and void to the extent of that inconsistency.
3. Written and Rigid Constitution: Federal constitutions are written in a single document to prevent ambiguity regarding the division of powers. They are also rigid, meaning that the process of amendment is difficult and requires the consent of both the central legislature and a significant majority of the state legislatures.
4. Bicameral Legislature: Most federal systems operate a two-chamber legislature at the center. This is designed to ensure equal representation of states (usually in the Senate or upper house) and representation based on population (usually in the House of Representatives or lower house).
5. Independent Judiciary: An independent judiciary is established to interpret the constitution and resolve disputes that may arise between the central government and the state governments, or among the states themselves.
6. Existence of Multi-tier Government: There are at least two distinct levels of government—the federal government and the state governments—each with its own administrative machinery, civil service, and political leadership.

The division of legislative powers is central to the functioning of any federation. The diagram below illustrates how these powers are typically distributed among the tiers of government.

The three legislative lists shown in the diagram are defined as follows:

1. The Exclusive Legislative List: This list contains subjects on which only the central or federal government has the power to make laws. Examples include national defence, foreign affairs, currency, aviation, customs and excise duties, and immigration.
2. The Concurrent Legislative List: This list contains subjects on which both the federal and state governments can legislate. Examples include education, health, agriculture, industrial development, and road construction. However, if a state law conflicts with a federal law on a concurrent matter, the federal law prevails.
3. The Residual Legislative List: This list contains subjects that are not mentioned in either the exclusive or concurrent lists. Laws on these matters are reserved exclusively for the state or local governments. Examples include traditional institutions, local markets, and chieftaincy affairs.

Factors that Account for the Adoption of Federalism

Countries choose to adopt a federal system of government due to specific historical, geographical, and socio-political conditions. The primary factors that account for the adoption of federalism include:

1. Ethnic, Cultural, and Linguistic Diversity: In countries with diverse ethnic groups, languages, and religions, federalism is adopted to give each group a sense of autonomy and security. It allows different groups to preserve their cultural identities while remaining part of a single nation.
2. Geographical Size: Large countries with vast territories often adopt federalism because a single central government would find it difficult to administer the entire country efficiently from one capital city. Federalism decentralizes administration to regional capitals.
3. Fear of Domination: Minority groups within a country may fear political, economic, or cultural domination by larger groups. Federalism protects minorities by granting them local political power within their own states or regions.
4. Economic Viability: The desire to pool economic resources together for rapid development, while allowing regions to manage their local resources, encourages the adoption of a federal system.
5. Security and Defence: Smaller or weaker states may agree to unite into a federation to form a stronger, more secure nation capable of defending itself against external aggression.
6. Historical Association: Component units that have historically existed as separate colonies or independent entities may choose to unite under a federal system while retaining some of their historical identities and laws.

Factors Responsible for the Success of Federalism

While many countries adopt federalism, its successful operation depends on several supporting factors. The factors responsible for the success and stability of a federal system include:

1. Political Tolerance and Maturity: The political class and citizens must demonstrate a high level of tolerance, compromise, and respect for democratic principles to resolve conflicts peacefully.
2. Economic Prosperity: A stable and growing economy provides the necessary revenue to run the expensive administrative structures of a federal system.
3. Equitable Resource Allocation: There must be a fair and transparent system of sharing national wealth among the different tiers of government to prevent feelings of marginalization.
4. Commitment to the Rule of Law: All tiers of government must respect the constitution, obey court rulings, and operate within their defined constitutional boundaries.
5. Geographical Contiguity: The component states or regions should be geographically close to one another to facilitate easy communication, trade, and administrative cohesion.

Merits and Demerits of Federalism

Federalism has both advantages and disadvantages, which influence how effectively a country is governed.

Merits of Federalism

The advantages of practicing a federal system of government include:

1. Promotes Unity in Diversity: It brings together diverse ethnic, religious, and cultural groups under one political umbrella while allowing them to maintain their distinct identities.
2. Prevents Dictatorship: By dividing power among different levels of government, federalism prevents the concentration of power in the hands of a single leader or central authority.
3. Brings Government Closer to the People: The existence of state and local governments ensures that the needs of local communities are addressed more quickly and effectively than if managed by a distant central government.
4. Encourages Healthy Competition: Component states can compete in areas of economic development, education, and infrastructure, which drives overall national progress.
5. Protects Minority Interests: Minority groups are given the opportunity to govern themselves at the state or local level, reducing the fear of marginalization.

Demerits of Federalism

The disadvantages of practicing a federal system of government include:

1. High Cost of Administration: Running a federal system is highly expensive due to the duplication of government offices, institutions, and personnel across the federal, state, and local levels.
2. Rigidity of the Constitution: The difficult amendment process of a rigid constitution can prevent the government from making quick constitutional changes during emergencies.
3. Threat of Secession: Strong regional loyalty can sometimes weaken national unity, leading to threats of secession or civil conflict if a region feels neglected.
4. Inter-State Friction: Disputes frequently arise between states over boundaries, resource ownership, or the distribution of federal projects.
5. Uneven Development: States with fewer natural resources or lower revenue-generating capacity may lag behind wealthier states in terms of infrastructure and social services.

Resource Allocation in a Federal System

Resource allocation, also known as fiscal federalism, refers to the method by which financial resources and revenues are generated, shared, and distributed among the different tiers of government in a federation.

In a federal system, the central government and the state governments require adequate revenue to perform their constitutional duties. Revenue is typically collected centrally from major national sources (such as oil, solid minerals, customs duties, and corporate taxes) and then shared among the federal, state, and local governments based on agreed principles.

The diagram below illustrates the flow of revenue from the central collection point to the various levels of government.

To ensure fairness and reduce conflict, federations use specific principles to guide the distribution of revenue. The main principles of resource allocation include:

1. The Principle of Derivation: This principle states that a certain percentage of the revenue generated from a particular state or region should be returned directly to that state. This is meant to compensate the state for the extraction of its natural resources and any environmental damage caused by extraction activities.
2. The Principle of Population: Revenue is shared based on the population size of each state. States with larger populations receive more funds to help them cater to the needs of their citizens.
3. The Principle of Equality of States: A portion of the national revenue is divided equally among all the states, regardless of their size, population, or resource contribution. This ensures that every state receives a basic minimum amount of funding to run its administration.
4. The Principle of Landmass and Terrain: States with large geographical areas or difficult terrains (such as swampy, mountainous, or desert regions) receive additional funding to offset the higher cost of building roads, schools, and other infrastructure.
5. Internal Revenue Generation (IRG) Effort: States that show active effort in generating their own internal revenue through local taxes and investments may be rewarded with additional allocations to encourage financial independence.

In Nigeria, for example, all federally collected revenues are paid into a single account called the Federation Account. The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) is the constitutional body responsible for monitoring the accruals to and disbursement of revenue from this account to the federal, state, and local governments, using a formula approved by the National Assembly.