→ Federalism is when the power is divided between central and state governments, neither can change alone.
→ Federalism provides opportunities for business
→ There is competition between states, local representation & therefore closer relationships.
→ There is however also costs of cross border business.
→ Often, in Australia, development proposals require both State and Commonwealth approval, therefore the process is lengthened, more complicated and costly.
→ However, perhaps this double check ensures more protection for both the community and the environment
→ As federalism allows for policy experimentation, inconsistencies between state regimes make doing business across borders difficult.
→ Day light savings is a great example of this; this inconsistency between states makes it difficult for business, especially on the Gold Coast.
→ However, such experimentation also benefits business because it ensures that they are subject to policies and laws, which are better and suit their particular environment more suitably.
→ Federalism encourages competition between states, which is of course, beneficial for business as they may escape onerous tax or regulatory regimes.
→ Executive, legislature and judiciary remain completely separate. US, Russia, France, South Korea.
→ The President (and their cabinet) will not be elected to the legislature but will be selected from outside it.
→ President elected separately from legislature
→ The legislature will have its own power to make laws, but little or no power to remove a President.
→ Executives are then, not responsible to the legislature.
→ President as both Head of State and Head of Government.
→ US- President and their cabinet are formed from outside the congress. Ultimately Barack Obama takes ultimate responsibility for national interests, however this system has proved difficult for Obama, as the passing of laws is not 'easy'.
→ Executive and legislature are fused, but the judiciary remains separate. Australia, UK, Germany, Japan.
→ Executive chosen from legislature; party with majority forms executive
→ Ministers also serving as legislators
→ Heads of State are merely ceremonial figures; a Prime Minister makes most day-to-day decisions.
→ Australia- the executive comprises the Monarch (practically the Governor-General) and the Prime Minister, who makes decisions collectively with the Cabinet.
→ Parties have become more pragmatic
→ There has been a general convergence of the parties towards the middle of the ideological spectrum
→ Now it is essential that parties consider business issues too.
→ Essentially, they have broadened their base.
→ Example- LPA historically focused on representing business and commerce, stressed market principles, anti-socialist ideals & free enterprise, lack of government intervention, poor commitment to welfare. They were definitely neo-liberal.
→ However, similar to ALP, it quickly became about winning government, thus pushing many of their historical values and ideals out the window in pursuit of holding government.
→ Now we see a very different LPA. Just in May, the Treasurer handed down the budget, which was very 'nice'. It sees them boosting small business, removing strict requirements for people on welfare, very different to their once 'lack of government intervention' ideologies.