ABSTRACT
The purpose of referenda and federalism is to bring politics closer to the people; in other words, referenda make it possible for people to vote directly on a particular question, and federalism "devolves" political decision making from the center to the regions, where decisions are made in subnational regions, taking into account the specific context of a region. There is an important distinction between a representative and a direct form of democracy. Federalism brings political decision making closer to the people also. The opposite of a federalist form of government is a unitary government in which all important decisions are made in the capital of the country. In a federalist country, many important political decisions are made not at the national level but at lower levels of governments, such as states and cantons. For federalism to exist, subnational units must have some autonomy, especially in financial matters. Federalism is most secured if subnational units can raise their own taxes.
