DMPQ: What is competitive federalism? Comment on its demerits and merits

Competitive federalism make states a competitive unit which provides a package of services and fiscal environment that attracts more resources. It is akin to market place system.

 

Benefits of CF:

  • Promotes innovation
  • Better services to citizens
  • Place emphasis on continuous reforms
  • Discipline state fiscally
  • Best suited to deal with the pressures of globalisation
  • Harmonisation of laws and policies
  • Quashing of archaic laws and executive directions
  • Adoption of best practices.

 

Negatives:

  • Can foster unequal competition
  • Concept more applicable to countries like USA.

 

 

CGPCS Notes brings Prelims and Mains programs for CGPCS Prelims and CGPCS Mains Exam preparation. Various Programs initiated by CGPCS Notes are as follows:-

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