Economic Federalism

Economic federalism is a system where economic powers and responsibilities are divided between different levels of government—such as national, state, or provincial authorities. This structure allows each level to make decisions and implement policies suited to their specific regions, promoting local economic growth while maintaining overall national stability. It helps balance needs, encourage competition, and prevent excessive concentration of economic power. Essentially, it manages how resources, taxes, and regulations are distributed across various government layers to ensure efficient and fair economic development.