COOPERATIVE AND COMPETITIVE FEDERALISM
Cooperative vs Competitive Federalism Based on the relationship between the central and state government–the concept of federalism is divided into- Co-operative federalism and Competitive federalism. In Cooperative federalism the Centre and states share a horizontal relationship, where they “cooperate” in the larger public interest. It is an important tool to enable states’ participation in the formulation and implementation of national policies. Union and the states are constitutionally obliged to cooperate with each other on the matters specified in Schedule VII of the constitution. In Competitive federalism the relationship between the Central and state governments is vertical and between state governments is horizontal. This idea of Competitive federalism gained significance in India post 1990s economic reforms. In a free-market economy, the endowments of states, available resource base and their comparative advantages all foster a spirit of competition. Increasin...