Reconciling fiscal federalism and accountability - is there a low equilibrium trap? Critically analyze
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The classic definition of federalism is that offered by K.C. Wheare, who described the federal principle as “the method of dividing powers so that the general and regional governments are each within a sphere coordinate and independent.”[5] A similar definition of federalism was offered by A.V. Dicey, who identified the three leading characteristics of a “completely developed federalism” as including the distribution of powers among governmental bodies (each with limited and coordinate powers), along with the supremacy of the constitution and the authority of the courts as the interpreters of the constitution.[6]
In the modern period, the Constitution of the United States of America, of 1787, is treated as the first experiment in establishing a federal system of government. Subsequently, federalism as a mode of political organization was embodied in the Constitutions of Switzerland, the Dominion of Canada and the Commonwealth of Australia and India.
A vital feature is the division of power between the central government and the constituent units under a constitutional scheme that cannot be changed legally by an ordinary method of central legislation. It is also essential that the arrangement assures the ability of the central government to carry out its purposes within the scope of its authority over the whole area. Hence in a federation, we find:
Two sets of government constitutionally coordinate
Division of powers between center and units.
A federal court as a guardian of the constitution; and
Supremacy of the constitution which is rigid.
There are three general, main types of party systems, single or dominant party systems, two-party systems, or multi-party systems. Single party systems tend to be indicative of authoritarian regimes since the dominance of a single party means the repression of all other political opposition.