Co-operative federalism is a concept of federalism in which the centre, state and local governments share responsibility in governance of the people and design policies that would enable it.Due to changing political system like emergence of strong regional parties, demands forautonomy and coalition governments in the center and the challenges of Globalization suchas International treaties, terrorism, organized crime, climate change and Border securityhave ensured that Governance should not necessarily be top down and should havehorizontal linkages.
Example of Cooperative federalism:
- Conception of NITI aayog in place of Planning commission.
- 42% devolution of fund as compared to 32% in previous finance commission.
- Memorandum of understanding between respective state and international bodies. Organisation of events to attract foreign investment.
- Recently GST amendment shows mutual sharing of power.
- Redesigning of central sponsored schemes to suit the needs of state