ABSTRACT
This chapter describes three common features of the international governance problem: centralized but weak states incapable of providing effective programs, services and infrastructure; and rigid structures lacking internal flexibility between levels of government and branches of government. The centralized and inflexible governance structures have minimal separation of powers or checks and balances; and weak central governments which have been unable to mediate legal, fiscal, policy, and management tensions that arise from normal operations of a complex state. The chapter argues that institutionalized federation can most effectively respond to these problems and strengthen democracies through some features. Strong central governments counter-balanced by independent sub-national government levels are essential. Vertical intergovernmental relations are worked out through periodic reassignments of fiscal and political authority. These may devolve authority or centralize it depending on the policy function and need for efficiency and responsiveness. The literature and technical advisors often argue for straight decentralization as a simplistic remedy for governance problems.
