Do we need a federal system of government?

Does a unitary political system of government serve us better?

A federal system of government with a number of provincial governments may go a long way in improving the governance of the country. Given the ever-increasing size of population with accompanying pressures on the government, the first thing that is required is to correct the political environment around which everything else revolves. The current centralisation of power and decision-making authority within a unitary system of government appears to be out of step with the changing needs and demands of the people at large. This centralised system of government cannot keep pace with the changing social and economic circumstances in the country.

Provincial governments would be expected to serve the people better than a centralised government based in the capital with regard to the day to day needs of the people such as jobs, food, education, health, sanitation, environmental management, community welfare, security of person and property, etc. The closer the government to the people, the more responsible, transparent, and accountable the government would be. This in turn is likely to encourage the people to take an active part in the development and growth of the local areas.

A number of provincial governments, for instance, four in the greater administrative divisions (Dhaka, Chittagong, Rajshahi, and Khulna), along with a federal government at the centre can be expected to make a big difference to the lives of the people. A federal form of government distributes political power to different tiers of government according to a predetermined formula and can ensure "checks and balances" in relation to decisions and actions of governments.

Federalism could also be a possible solution to the unique problems faced by the ethnic, linguistic, or religious groups living in different regions in the country (e.g. Chakmas in the Hill Tracts). A federal system with a fair territorial distribution of political power can make a great contribution to dispelling fears of particular communities who often perceive themselves to be under the domination of others that care little for their distinctive values, cultures, or life styles.

One may argue that a federal system of government will lead to the creation of additional decision-making tiers, and may frustrate the very objectives underlying the system. Here lies the crux of the issue that poses a challenge for the politicians, development thinkers and practitioners, and the people in general. What kind of power distribution between the central government and the provincial governments do we envisage? If real autonomy is not vested in the provinces, and the provincial governments cannot make key political decisions concerning different social, economic and financial issues that confront people within their jurisdictions, then this would be expected to give rise to cumbersome and complicated decision-making processes.

It is obvious that a number of new provincial governments with a machinery of administration in each province will come out of a federal system. However, there will not be any relevance for the existing administrative structure in a new system. Since most of the development planning activities will need to be transferred to the provinces, the central planning agency, the Planning Commission in Dhaka, will cease its operation in its present form. Its role in national development planning will be greatly reduced and most of its current functions with associated physical, human and financial resources can be transferred to the provincial planning agencies.

Similarly many other ministries, departments, autonomous and semi-autonomous government agencies can be restructured in line with the distribution of political power and functions vested at each level of government, federal and provincial. This means that the number of departments and other government agencies in the capital Dhaka will be decreased and most of their resources, including human resources, could be transferred to the provinces for utilisation in provincial agencies. Moreover, there are already branch offices of many departments at divisional and district levels.

The resource transfer and the existence of branch offices will greatly reduce the need for additional funding for the establishment of administrative machineries at provincial level. Moreover, a smaller government with a reduced administration at the centre will need less spending for its operation, thereby releasing funds that could finance expenditures at provincial level. This would be consistent with the restructuring of government functions where many policy-making and project planning and implementing activities will be located in the provinces. In addition, an appropriate taxing and revenue-sharing formula will have to be devised considering the scope of functions and responsibilities at each level of government.

Since many problems will be tackled at provincial level, the central or federal government in the capital will have the opportunity to focus its attention to areas needing national level intervention. This also includes effective policy coordination between the federal and provincial governments to bring about the greatest possible impact on the outcomes of government policy decisions and program implementation on the basis of the principle of co-operative federalism.

A major challenge for the central government would be to ensure that national interest is served by all levels of government, including itself. One of the functions of the central government compatible with serving national interest could be, for instance, to look at regional economic disparity, including disparity between the urban and rural facilities and infrastructures, and to take appropriate measures to reduce this disparity as far as possible.

A pertinent aspect of the federal system of government is the structure of local governments. Local governments are not the "arms and legs" of higher levels of government, rather they are "government" in their own right. It is, therefore, necessary to place local governments in proper perspective so that they can effectively function to meet local needs without being unnecessarily dependent upon a higher level of government. The spirit of Article 9 of the Bangladesh Constitution providing for the promotion of local government institutions should be put into practice in order to allow different tiers of local government to carry out their functions in line with the autonomy they expect to exercise.

Moreover, the political and social interaction between the politicians and the people can be enhanced and improved in a system of decentralised political system. This could also act as a "check and balance" concerning the use of discretionary power by the government provided the rule of law is allowed to operate without hindrance. Coupled with the development and operation of appropriate political and social institutions, decentralisation of power and devolution of administrative authority is expected to lead to greater benefits for greater number of people in a federal system of government.

Bangladesh has experienced relatively strong economic performance in the past decade, with an average annual GDP growth of 5 per cent. The country has made remarkable progress in some areas, including health, education, empowerment of women and poverty reduction, and has virtually achieved self-sufficiency in food due to agricultural development. The rate of population growth has declined to 1.4 per cent, which can be described as a commendable achievement compared to some other developing countries, including Pakistan.

But according to the World Bank: "Bangladesh has made great strides in improving lives of its people since gaining independence in 1971, yet it remains one of the poorest countries in the world. Its progress over the past two decades is evidence of a great potential that is still far from being realised." This implies that the country is still facing many challenges ahead to further improve the lives of its people through developing and implementing appropriate policies and development programs.

The key challenges include institutional capacity building and good governance which can do away with the underlying weaknesses in the way the country is politically governed. A federal system of government can help in improving the macro political environment, thereby strengthening the decentralised system of governance. Significant and sustainable improvement in economic and social welfare is possible only in a society where the rule of law is the norm of governance because it does not allow the government to provide any special favour to anybody, which has the potential to minimise the scope of taking resort to nepotism and favouritism or other forms of corruption. Only policy, without the arbitrary use of discretion on the part of the executive, will guide the delivery of government services to the people in all walks of life.

Amendments to the constitution would be needed to establish a federal system of government in the country. Political thinkers, political parties and development practitioners and others concerned with the good governance of the country can give serious thought to this issue. In this context, we may recall some of the amendments to the constitution made in the past, such as the insertion of "Bismillah-ar-Rahman-ar-Rahim" under the Proclamations (Amendment) Order, 1977) and the inclusion of Islam as the state religion of the republic under the Article 2A, inserted by an Act of Parliament in 1988.

The general opinion about the two amendments mentioned above is that these amendments were politically motivated and had nothing to do with improving the governance of the country. The point I would like to make here is that any change to the constitution should be realistic and achievable, purporting to make a real difference to the lives of the people in the context of how the country should be governed overall. In my view, amendments to the constitution in order to establish a federal system are worth trying, provided we have some kind of a general consensus first.

A possible strategy to address major issues of national significance could be putting these issues to a thorough debate for all shades of opinion in society. After a comprehensive debate, and subject to a general agreement by the major players in politics, a referendum can be held, if necessary, to arrive at a clear decision concerning the development of key political and legal institutions underpinning how the country should be governed.

Abdul Quader is an economist.