Federalism Creates Both Advantages and Disadvantages for Business.

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The growing rate of poverty in most regions; the systemic graft and corruption in government; the strident cry for cultural recognition; and the instability of political systems are just some of the troubles the country is beset and endured. With these lots of problems, federalism is viewed by many as the only hope for a country. It has grown in popularity over the past century, which is largely due to its particular successes throughout the world. However, federalism is not without any defect. This essay will briefly outline the definition of federalism which followed by an detail analysis of both advantages and disadvantages of federalism as well as the impact on business.

The term federalism is used to describe a system of the …show more content…

Besides, overlapping jurisdictions and redundancy increase the opportunities for delay and obstruction. "The likelihood of deadlock for system level policymaking increases with the multiplication of veto points in government."(Joel, 1992:141). When compared to unitary systems, the existence in federations of state or regional constitutions, for example, may be seen as barriers rather than bulwarks to government responsiveness and accountability. This thesis is given wide play in the recent literature, including Cordon Brown who addresses "overlap, entanglement, duplication, and redundancy" in federal Canada(Gordon, 1994:21-37),Jean-Luc Migu(1997,235-254), who writes also of those in Canada who "endlessly complain about the outrageous waste resulting from the duplication of functions in federal states;"38 and Beryle Radin and Barbara Romzek(1996:59) who contend that the "increase in intergovernmental and interorganizational relationships is among the most vexing of the complicating factors in the accountability world." Furthermore, business peak bodies have valid concerns in that heavy-handed regulation which

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