1. Fundamentals of Federalism
Rajendra Adhikari, Director of Studies

2. Session Outline Concept of federalism Principles of federalism
Opportunities and challenges of federalism in Nepal

3. Session Objectives Describe the basic concept of federalism
Explain the major principles of federalism
Analyze opportunities and challenges of federalism

5. Concept of federalism
Federalism is a type of government in which the power is divided between the national government and other governmental units.
Federalism contrasts with a unitary government, in which a central authority holds the power, and a confederation, a more or less permanent union of states with some or most political power vested in a central authority.
federalism

6. Concept of federalism
A flexible form of state organisation, it predetermines only very few aspects.
A way politics are done – a way of thinking and acting: Power in the hands of many instead of in the hand of few.
In most cases developed pragmatically
The classical federations: from Confederation to Federation
New federations: from Unitary State to Federal State

7. Definition
Federalism provides a technique of constitutional organization that permits action by a shared government for certain common purposes, together with autonomous action by constituent units of government for purposes that relate to maintaining their distinctiveness, with each level directly responsible to its own electorate.
Ronald Watts
In more simpler terms it is a combination of shared rule (for certain purposes), and regional self rule (for other purposes).

8. Deciding on Federalism
Constitutional Guarantee
Self-rule
Definition of Federal Units (Provinces/States)
Internal Organisation of Federal Units
Distribution of Powers
Resources
Shared Rule
Political institutions at the centre
Interaction
Concurrent Powers
Shared Powers
Fiscal equalisation
Coordination
Control
Dispute Resolution

9. Defining Federal Units
Who shall receive the right to self-rule and shared rule?
How to define federal units?

10. Principles of Federalism
Coming together
Independent or autonomous states, entities coming together to form a more robust and powerful federation. USA, EU are the examples.
Federation by de-aggregation (holding together)
Restructuring the unitary form of a nation into several states/provinces and distributing governance authority. India, Belgium, Spain and Nepal the examples.

11. Federalism: means-end debate
Federalism as an end to achieve the highest form of political and human relationships:
a partnership by contract which makes both jointly responsible for the nation’s welfare
Secularized in late seventeenth and eighteenth centuries with the development of social contract theory
Federalism as a means to enhance defense and trade, achieve political unification, democracy, self governance to manage conflict and accommodate diversity

12. Federal Countries
Argentina, Australia, Austria, Belgium, Bosnia and Herzegovina, Brazil, Canada, Comoros, Ethiopia, Germany, India, Iraq, Malaysia, Mexico, Micronesia, Nepal, Nigeria, Pakistan, Russia, St Kitts and Nevis, Spain, South Africa, Sudan, Switzerland, United Arab Emirates, United States of America, Venezuela

13. Federalism in Nepal
Declared as a Democratic Federal Republic by the Interim Costitution-2063 BS.
Federal constitution promulgated on 03 Ashoj 2072 BS (20 Sept 2015)

14. Why is federal system felt necessary in Nepal?
Address the diversity— multi-ethnic, multi-lingual, and multi-cultural aspect of the society within the state;
Balance in development— healthy, sound competitive and proportional development of all the nooks and corners of the country.
Sharing and transferring the power— development regions were created for decentralization but powers, authority and development activities remained centralized
Best mobilization and allocation of the resources for balanced and justifiable development.

15. Federal Units of Nepal

16. Opportunities with federal system of governance
Diversity Management
Cooperative Governance
Balance in development …

17. Challenges of federalism
Reorganization of federal units
Cooperation
Control
Dispute Resolution

18. Thank You