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POLITICAL SCIENCE OPTIONAL

COOPERATIVE FEDERALISM IN INDIA

Note: These are basic write ups, Topics would be discussed in much detail in our Classroom Program. 

 

India’s constitution envisages a federal mode of organisation.  Federalism has been described as a response to the economic, political and social conditions of a society. It is the method of dividing the power at the level of central, and regional governments within a sphere, where they coordinate and remain independent.

Cooperative Federalism is a concept of federalism in which national, state, and increasingly local governments interact cooperatively and collectively to solve common problems, rather than making policies separately. Cooperative federalism requires robust institutions and mechanisms for promoting intergovernmental relations. The essence of co-operative federalism is that the centre and the state governments should be guided by the broader national concerns of using the available resources for the benefit of the people. The co-operation must ensure the changes envisaged in policy matters are brought about smoothly. Further, the national and regional interests do not clash, thus strengthening in the process a responsive democratic set up.

Historically, the adoption of the concept of federalism was more of a necessity than choice. The prevalence of fissiparous tendencies; religious communal frenzy; and partition of the country called for a centralized federal union. The practical problem of governing culturally and regionally diverse India knocked on the doors of British administration quite early thus resulting in Montague-Chelmsford Report on Constitutional Reforms (1918). Based on this report, Government of India, 1919, devolved some powers and authority to the provinces. Provinces received explicit control over sources of revenue such as land, health, agriculture, irrigation and public works.

 Though this act succeeded in providing a certain amount of autonomy to the provincial authorities, but the Government of India remained a unitary Government. Finally, the Government of India Act, 1935, prescribed a federal type union of autonomous provinces wherein, the Governor-General got the powers to overrule the Provincial government.

Again in the Cabinet Mission Plan of 1946, certain proposals for loose asymmetrical federation were mooted. All these proposals of loose federation were almost a dead letter for the newly emergent Indian nationalist elite who were in favour of centralized federal union.

India became independent in 1947 and the then Parliament also serving as a constituent assembly adopted a new Constitution, which came into effect on January 26, 1950 establishing the Federal Union of India. The framers of the constitution provided for the federal form of government under Article 246 and VII Schedule to the constitution but they deliberately refrained from using the term federation, as in their considered view, it might impede the objective of Unity and Integrity of the Nation. Cooperation and accommodation only can provide the stopover at the crossroads of aggression between antagonistic (regional, religious, linguistic and ethnic) groups. But the multiplicity in the post- independence diversities present a bumpy terrain.

Cooperative Federalism as a concept was not new to India, and was one of the major instruments used by prominent leader Sardar Vallabhbhai Patel to persuade and cajole 492 princely states to join Indian union. Under Nehruvian era, State Reorganisation Act, leading to the formation of five zonal councils was an important step towards cooperation.

Article 1 of the Constitution states India that is Bharat, shall be a Union of States.While the Constitution doesn’t mention the term federal, it does provide for a governance structure federal in nature

The idea of competitive federalism gained significance in India post the 1990s economic reforms. Competitive federalism is a concept where centre competes with states and vice-versa, and states compete with each other. In a free-market economy, the endowments of states, available resource base and their comparative advantages all foster a spirit of competition. States need to compete among themselves and also with the Centre for benefits. Increasing globalisation, however, made the already existing inequalities and imbalances between states starker. This gave rise to concerns about states’ freedom to formulate their own growth policies.

There has been a felt need for a change from competitive to cooperative relationship in the working of the federal constitution.

Cooperative federalism means that the centre and the states share a horizontal relationship and neither is above the other. The concept of cooperative federalism helps the federal system, with its divided jurisdiction to act in unison. It minimizes friction and promotes cooperation among the various constituent governments of the federal union so that they can pool their resources to achieve certain desired national goals. For instance: GST intends to transform India into a true economic union, with the aim of One Nation, One Tax, One Market.  The free movement of goods and services will give fillip to employment opportunities and give consumers a wider choice and better prices. This economic integration will not only boost economic growth, but also bind the nation better. Indeed, GST in India in its conception, enactment and implementation is an example of real co-operative federalism at work, in tune with the unique character of India – “Unity in Diversity”.

 

Strong steps must be taken to strengthen cooperative federalism.

• The disbandment of the Planning Commission (PC) and its replacement by the NITI Aayog is specifically designed to promote cooperative federalism. NITI Aayog will concentrate on the broader policy framework instead of micro resource-allocated functions. The setting up of the Niti Aayog is widely expected to set the stage for dealing with contemporary challenges, shunning the earlier one-size-fits-all approach.

• Need for the reactivation of the Centre-State Council. Under Article 263, this council is expected to inquire and advise on disputes, discuss subjects common to all states and make recommendations for better policy coordination. Its effective utilisation would lend legitimacy to cooperative federalism

• With increasing difficulty in the early enactment of key legislation, it’s expected that on contentious issues like land, labour and natural resources, the state will promote best practices. This will enable greater investment and economic activity in states with a favourable regulatory framework. Enactment by states must secure expeditious Central approval.

• State bills which are reserved for President assent should be disposed of as early as possible. This creates impediment in the growth of the country and ultimately it hits the cooperation between centre and state.

• In areas of concurrent responsibility, the Centre has had a tendency to ride roughshod over the States by occupying the common legislative space. A reform of the seventh schedule lists in the direction of greater empowerment of States would be consistent with the logic of increased financial transfers and cooperative federalism

• While negotiating the international treaties involvement of states should be there with greater extent as its implementing will surely going to impact on the states. As India becomes globally more interdependent, these potential contentious issues must be resolved

 

Imposition of President Rule (article 356) has been the most exploited instrument used by the centre which has caused confrontation between centre and the states, as seen recently in Uttarakhand and Arunachal Pradesh. Also, obscure distinction of power has led to conflicts between Delhi government and central government.

Hence there is urgent need to strengthen this cooperation. In this context, S.R Bomai case worth mentioning, in which Supreme Court decreed centre to apply President Rule only on substantial constitutional reason and put it under the ambit of judicial review.

However, few positive notes can also be pinned up here in recent context. Firstly, 42 per cent devolution of funds to states as declared by Finance Commission and;

Secondly, Land boundary agreement between India and Bangladesh in which states like West Bengal, Meghalaya, Assam and Tripura fully cooperated with the Central Government. Such type of cooperation has played a significant role in establishing democratic rule and sustaining it till present times

 

Co-operative federalism is a dynamic and flexible process of cooperation. Interdependence among governments has become a universal feature in all contemporary federal systems. Harmony and cooperation between the centre and the states and among the states is essential for healthy functioning of our federation. The Prime Minister, while addressing the Nation on the 70th anniversary of Independence, spoke about the role of competitive cooperative federalism in India’s development. Competitive Federalism is another instrument of efficiency and cooperation. A fair competition needs to be encouraged as all states are not equally capable or resourceful of competing with each other. India is a beautiful melting pot of diversity. The same needs to be valued and cherished. And there is not a better way to do so than by cooperative Federalism.

To conclude both the cooperative and competitive federalism is needed to achieve the proper growth of the nation. There should be balance between both. Cooperation plays a crucial role in dealing with many economic and social policies. Also, a healthy competition is always appreciated.  Lastly, it can be concluded that both the type of federalism is not mutually exclusive concept. They are the two sides of a same coin. They have the same basic principle underlying – progress of the nation as a whole.