Federalism: Between Unity and Autonomy

August 6, 2025

Federalism is a defining feature of Canadian politics and government, but it is not unique to Canada. Many countries around the world are governed by systems that share responsibilities among different levels of government, so called federalism. What are the defining characteristics of federalism? This article explores some of those common features.

Federalism generally refers to a system of dividing a nation’s governing authority between a national (federal) government and multiple regional (provincial, state, or similar) governments. Such arrangements have multiple goals, but these always involve an effort to balance a unified approach to managing collective interests at the national level with autonomy and self-management of more local or regional interests at the provincial or state level.

A key goal of federalism is functional efficiency. This is sometimes referred to as the subsidiarity principle – the belief that matters should be dealt with by the “lowest” level of authority with the capacity to do them so that they are as responsive as possible to the people they affect. While certain matters – such as civil and human rights, defence, international relations and trade, currency and monetary policy, national fiscal and debt management, citizenship and immigration, the post, interjurisdictional transportation etc. – are thought to be best handled at the national level, others – such as health, education, social support, local law enforcement, etc. – are typically thought to require more responsiveness to distinctive regional needs. The functional division is never airtight – and certainly never money tight – so that areas of overlap and shared jurisdiction are common. Federal countries differ somewhat in their assignment of jurisdictional responsibilities.

Often equally important is the desire to accommodate regional differences of what may broadly be called a cultural nature. These can include language and identity considerations as well as distinctive characteristics of local economies and political cultures. Thus federalism always involves both coming together as a nation and preserving regional differences.

The division of powers in a federal system is typically laid out in a constitutional document, which sets out the relationship between the two levels (or “orders”) of government and includes an amending formula with a high threshold – typically both the federal government and some form of supermajority among sub-national jurisdictions. As with other constitutional matters, interpretation of jurisdictional ambit usually belongs to a supreme court, and sometimes to a dedicated constitutional court.

As a final general characteristic, federal systems typically have bicameral legislatures, at least at the federal level. Characteristically, one chamber (often the upper one) is more geared to representation of the provincial or state governments as opposed to popular representation.

Federalism is often seen as a mechanism for maintaining national unity and identity while accommodating regional diversity. Its decentralization of power may serve as a bulwark against authoritarian tendencies that might arise at any given level, thereby helping to preserve both individual and collective rights. It also allows for a level of policy diversity and experimentation, as for example, the introduction of public health care in certain Canadian provinces before its adoption at the national level, or conversely, national level programs such as the Canada Pension Plan which individual provinces joined at different times.

At the same time, having multiple levels of government adds to the complexity of shared initiatives, especially where matters require coordination across jurisdictions. And while giving regions their own jurisdictional space can help to avoid conflicts, they can sometimes foster or reinforce divisions across regions.