Q2. The concept of cooperative federalism has been increasingly emphasised in recent years. Highlight the drawbacks in the existing structure and the extent to which cooperative federalism would answer the shortcomings.

Model Answer:

Introduction

Cooperative federalism aims to promote collaboration between central and state governments, fostering joint responsibility. However, structural flaws hinder its full potential, limiting states' autonomy and financial independence.

Body

Drawbacks in the existing structure 

1. Limited Fiscal Autonomy: The current federal structure restricts states' fiscal autonomy, with the central government controlling major tax revenues, reducing states' ability to address local needs effectively.
2. Unequal Distribution of Resources: Interstate inequalities in financial resources lead to uneven development. Cooperative federalism could ensure balanced financial transfers, addressing disparities and fostering equal growth opportunities.
3. Centralized Decision-Making: Policies are often dictated centrally, overlooking regional specificities. A cooperative approach ensures greater state participation in decision-making, allowing more tailored policies for regional needs.
4. Lack of Institutional Mechanism: The absence of robust institutional mechanisms for cooperation between states and the centre hampers effective collaboration. Cooperative federalism promotes structured platforms like the GST Council for continuous dialogue.
5. Political Differences: Political rivalries between state and central governments often derail development agendas. Cooperative federalism promotes depoliticized governance, prioritizing development over political differences.
6. Inefficiency in Resource Allocation: Centralized resource allocation can be inefficient and unresponsive to state needs. Cooperative federalism allows states to influence resource distribution, leading to more effective utilization.  

Way Forward 

1. Empower State Governments: Enhance fiscal autonomy for states to ensure efficient allocation and utilization of resources, enabling them to address local development needs effectively.
2. Strengthen Institutional Mechanisms: Establish robust institutions for continuous dialogue between central and state governments, facilitating collaborative decision-making and addressing inter-state disparities effectively.
3. Encourage Revenue Generation: Promote innovative revenue-generating strategies at the state level, reducing dependence on central grants and fostering financial self-sufficiency.
4. Foster Collaborative Governance: Implement frameworks that encourage joint planning and execution of projects, ensuring alignment between central policies and state-specific needs for effective development.
5. Enhance Capacity Building: Invest in training programs for state officials to improve governance, policy implementation, and project management, fostering a more efficient administrative framework.

Conclusion

‍While cooperative federalism offers promising solutions to structural drawbacks, its success depends on sustained political commitment, mutual trust, and institutional reforms that empower states within the federal framework. 

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