This document discusses the rationale for federalism through three units:
Unit 1 examines how federalism emerged through either the devolution or aggregation model. Devolution occurs when a unitary state devolves power to other levels of government, while aggregation involves sovereign states pooling resources under a central government.
Unit 2 defines federalism and explores its meaning and nature. It involves coordination between central and regional governments with distinct spheres of authority. Different types of federalism are also discussed.
Unit 3 argues the economic rationale for federalism is that it can better match public good provision to varying local tastes and circumstances compared to a unitary system. This enhances efficiency by allowing for experimentation and differentiated policies across jurisdictions.