[Answered] What do you understand by the term competitive sub-federalism? Discuss its significance.

Competitive federalism is a concept where centre competes with states and vice-versa, and states compete with each other in their joint efforts to develop India and over a broad range issues to provide citizens various services in a hassle-free manner. Broadening the competition between states to encompass the cities is called competitive sub-federalism. Competition between states is a powerful process, that when extend to competition between states and cities, and between cities constitute competitive sub-federalism.

Significance of competitive-subfederalism:

1. It ensure inclusive development in the country.
2. Competitive sub-federalism follows the concept bottom-up approach as it will bring the change from the states.
3. Competition Cities are entrusted with responsibilities, empowered with resources, which can become effective vehicles for sustainable development.
4. It help in reducing inter-states and intra-states inequalities through development.
5. It instil a spirit of positive competition and help utilisation of successful models of development across many states.
6. It help in instilling sense of responsibility in city administrations, ensuring no one have been left out.
7. It help in the principle of cooperative sub-federalism and puts aside the political considerations and influence of state units.
8. It ensure that every limb of the whole country is developing. Eg. There are many disparities between various cities in terms of development, competitive sub-federalism reduce such disparities.
9. It help in providing a level playing field and allow that more assistance can be provided to such for time being.
10. The policy of one-size-fit-all is replaced with different policies of various states based on the own priorities with in the state. Each state will design their own policies for development of the cities with self-fund. The concept also promotes discipline among the states.
11. Competitive sub-federalism help in various units of federation pursue a healthy competition for economic interests.
12. It is the horizontal relationship between various cities and cities and states which competes with each other which leads to the overall growth of the states.

In pursuit of competitive sub-federalism the states will have to plan their expenditure based on their own priorities. But along with autonomy states should observe fiscal prudence and discipline. The concept of competitive sub-federalism is encourage states and cities to streamline the procedures and thus attract more investment and lead to overall development of the region.