The word federal is derived from a Latin term foedus which means covenant or compact. Federalism is sometimes used interchangeably with decentralization. Federalism is a system in which political power is shared between a central (national) government and smaller governmental units. The central government is often called the federal government and smaller units called states or provinces. The division of power between the federal government and states or provinces is defined in the constitution. The principal objective of federalism is to balance the interests of different ethnic and language groups, regions, etc and between different groups or regions and the central government.
Central or unitary governments hold principal powers and choose what to give to states or provinces. Some governments that appear federal use unitary systems, making states or provinces serve as administrative rather than political units. In a federal system, citizens usually owe their loyalty directly to the central government.
Federal systems are classified as coming-together like the American-style federalism and holding-together like India, Belgium, Nigeria and Spain designed to hold multicultural societies together by devolving powers constitutionally and forming a federation. Federalism whether democratic or not is the result of bargain involving an element of give and take. In other words, to have lasting impact federal systems of government should not be imposed by stronger members on weaker ones. Different regions in a country or different states should come to the table as equals and bargain a win-win outcome.
There is no one federal formula that fits all situations. Thus, federalism can, and should, be remodeled to reflect socio-economic endowments, cultural and historical differences in a given society. Bargaining a federal system of government includes establishing areas of governmental activity over which the states or provinces have sole or predominant responsibility and the role of state governments in policy-setting process at the federal government level.
Many countries including Uganda are debating the merits of federalism. Those who oppose it fear the prospect of some states or provinces seceding into independent states or residents thrown out of states not of their birth. Notwithstanding this fear, studies on the merits of federalism versus unitarism have found that federal institutions promote successful accommodation among diverse interests. For example, in Nigeria flexible federalism has served as a mechanism of ethnic conflict management and political development.
Decentralized or federal institutions have many advantages:
1. They are far more flexible than centralized institutions and can respond quickly to changing circumstances and people’s needs;
2. They are more effective than centralized institutions;
3. Decentralized Institutions are far more innovative than centralized ones;
4. They generate higher morale, more commitment, and greater productivity.
Additionally, “The closer a government is to its citizens, …, the more they trust it. The closer it is the more accountable its officials tend to be [in a democratic environment] and the more likely to handcraft solutions rather than create one-size-fits-all programs”.
The federal government would continue to:
1. Provide funds and set overall policy framework and mission and free lower government units to implement it as they see fit.
2. Engage in activities for which states or provinces have no capacity or power such as setting standards and regulations;
3. Design anti-poverty policy, focusing on areas with fewer resources in order to equalize each area’s ability to invest in development.
4. Participate in social insurance programs such as pension and unemployment benefits;
5. Engage in costly national investments that require sizeable amount of money (David Osborne and Ted Gaebler Reinventing Government 1992).
A conference on Uganda federalism has been arranged in London on October 27, 2012. The agenda includes discussing a road map to achieve federalism within five years. A road map presupposes that an agreement has been reached by all stakeholders including NRM government to establish a federal government in Uganda.