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Frequently asked Questions: Federalism


The World's Federations

Argentina, Australia, Austria, Belgium, Bosnia/Herzegovina, Brazil, Canada, Comoros, Ethiopia, Germany, India, Iraq, Malaysia, Mexico, Micronesia, Nigeria, Pakistan, Russia, St Kitts/ Nevis, South Africa, Spain, Sudan, Switzerland, United Arab Emirates, United States of America, Venezuela
1. What is Federalism? View this page in Nepali.


Federalism is a system of Government in which certain powers are exercised by levels of government below the national, and those powers are constitutionally guaranteed and do not depend on the national government.

In practice federal systems around the world are extremely varied and no one model would be appropriate in all circumstances, but there are some key features of federalism. These are:
  • Two, or more, levels of government (centre + defined regions, and perhaps lower levels, also); the units immediately below the centre may be called regions, states, provinces or something else
  • A written constitution which gives powers to both levels: to make law, to carry out policies, to spend money, and to raise money through taxes and other means
  • Some constitutional arrangement for representation of the units within the central law making institutions
  • Mechanisms and institutions for conducting relations between governments
  • Procedure for dealing with disputes between levels of government - through the courts or through specially created institutions
2. What is the difference between a federal and a non-federal system of government?

Non-federal countries are usually "unitary" - where the final authority rests with the central government alone. There is usually a system of local government, which has some decision-making power, but these arrangements are not usually contained in the constitution, and can be easily revoked by the centre. Of all the systems of government, federalism is the most secure way of protecting powers at the sub-national level.

3. Why is there now so much talk of federalism in Nepal?

Many people have the view that power in Nepal has been too centralized. It has been suggested that this feature of the current system has contributed to failures in development (especially in outlying areas) and has limited people's opportunities to participate in the affairs of the state, leading to tensions and conflict. Consequently many people see federalism as a way to empower communities and regions that have been marginalized. While federalism does have the potential to empower marginalized groups the system also has limits.

4. Why should the ordinary person care about this question?

An appropriate federal system would bring government closer to the people. Citizens would be able to have more influence on decision making, and more contact with those who represent them and who form their government.

5. Doesn't federalism lead to separatism?

It is true that some federations have collapsed. There have been many reasons for this. Some of these might be avoided in the design of a federal system, while others reflected such deep-seated problems that perhaps nothing short of separation was possible. Many federal countries are very stable and prosperous - though this is due not only to federalism, but to many other factors also. Evidence suggests that federal regimes do better at limiting ethnic violence than unitary regimes. This is mainly because federal systems enable greater participation and decision-making by people from a range of different backgrounds and geographic areas.

6. What else would be needed in Nepal to make a federal system a success?

Even if federalism is adopted, systematically addressing the marginalization of groups in Nepal will require supplementary approaches. For example: fair representation of groups in all the institutions of the national government, economic development of depressed areas, respect and promotion of languages and cultures of marginalized groups. These approaches would promote a greater integration of Nepali people and the emergence of a Nepalese identity which reflects the nation's diversity and which all can be proud. At all levels responsible and competent government, as well as adequate resources, would also be essential.

7. What is the connection between federalism and "restructuring the state"?

There has been a great deal of talk about restructuring and some people seem to refer to federalism when they use this phrase while other people mean something much wider. The Interim Constitution talks of "progressive restructuring of the state in order to resolve the existing problems of the country relating to class, caste, region and gender" in the Preamble - but federalism will not necessarily deal with these problems. It is hard, for example, to see how federalism will improve the position of women. So federalism is only an aspect of restructuring

8. How many states should there be in a federation?

There is much discussion in Nepal today about how many constitutional units a Nepalese federation should contain. There is no 'right' number of units, though it is clear that having only 2 or 3 can be problematic, and so can having too many. How many there should be must be considered in the light of other factors, such as the capacity of the units to function effectively.

9. Should the units in a future federal Nepal be based on ethnic divisions?

Responses to other questions should indicate that this factor is not likely to be the most important one in determining whether Nepal will succeed as a federation. It is clear that Nepal cannot have one region for every ethnic or other group. There will necessarily be minorities in all units. Tolerance, respect for human rights, inclusion in all spheres of life and good governance will be much more important than the nature of the boundaries.

10. So should Nepal become a federal state?

This question can only be answered by Nepalese people themselves. It is important to realise that federalism alone cannot solve any nation's problems. If adopted, how well it works will depend on the details of the system actually adopted, as well as on whether the factors mentioned in the response to question 5. It is critical that a great deal more research and study into the implications of adopting certain forms of Government be undertaken. This information should be shared as widely as possible, so that ordinary Nepalis can participate in the discussion about the shape of future government and are able to make informed choices.