Authors: Nohlen
Summary: The approximately 2300 word entry distinguishes four definitions in two categories, reviews three arguments in favor of federalism, describes the federalist structure of Germany, and traces the historical development of the relationship between the federal government and the states in the post-1945 period. The term federalism is used both to describe the political organizational structure of certain states and is applied to describe societal models and social structures. In the first category fall two definitions, one institutional-functional and the other constitutional- legal. The second category fit social-philosophical and sociological definitions of federalism, all are described in the entry. Political theorists have come out in favor of federalism for two distinct arguments, one that focuses on the integration of heterogeneous societies, the other that focuses on the fact that a federalist structure further separates the powers by introducing vertical power sharing between state institutions. The entry describes in detail the historical development and internal logic of both arguments. Economists add a third justification to the existence of a federal political structure: while distributional and stabilizing economic policies are best performed by a centralized government, the allocation of public goods is most efficiently performed by decentralized decision-making units. The entry discusses in detail which form of a federalist structures is best suited to fulfill the latter task. After reviewing briefly the federalist structure of the German political system, the entry proceeds by reviewing different explanations for the occurrence and development of federalism in Germany, and focuses particularly on the development of the relationship between the central government and the states in the post-war era. The entry ends with the paradoxical finding that while the existence of federalism finds its justification in the vertical separation of powers, the distribution of competencies between central and federal units makes intense cooperation necessary which challenges the legitimacy for federalism in Germany.