Federalism – when defined as a union of states – denotes a fair sharing out of power and wealth between various regions. In this way it makes it difficult for a totalitarian regime to assume control because such a regime is usually enabled by monopolizing political and economic power.
The Iraqi Constitution, which was developed after the demise of the regime led by Iraqi dictator Saddam Hussein, was based on the decentralization of government. This was a quantum leap in the evolution of the country’s political system and it guaranteed various states levels of independence and power they had not previously held.
In terms of independence, this is primarily based in the fact that provincial governments are chosen by direct election, rather than being appointed by the central government. Direct elections gift provincial governments with legal and moral strength, forcing them to pay more attention to regional needs and also giving them equal status to their peers in the central government.
However the regional independence that the Constitution guarantees still faces opposition, especially from those who favour a more central, iron fisted rule. The calls that the Iraqi Prime Minister Nouri al-Maliki makes every now and then for the strengthening of the central government at the expense of regional powers is an expression of this oppositional trend.
Iraq’s federal union is still fairly young and in order for it to grow properly, greater attention will need to be given to regional finances. It becomes obvious fairly quickly that if the regional powers are to preserve their authority then that authority also needs to have a solid financial footing, with a clear distribution system based on the population in each state. The states need to have their own budgets and to be able to depend upon their own resources. Without this, the federal union is only an empty promise.
The Iraqi Constitution contains several references to financial management but unfortunately many are open to interpretation and compromise. For example, every year there is disagreement on how much of the national budget the semi-autonomous state of Iraqi Kurdistan should be getting. And this is mainly because of a lack of clarity when it comes to the rules on national and state finances.
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