Subsidiarity

Background

The concept of subsidiarity is fundamental in the discussion of governance and decision-making processes within large and complex organisations or governmental systems. Subsidiarity emphasizes the efficiency and effectiveness of aligning decision-making powers with the appropriate level of authority.

Historical Context

Originating from the Latin word “subsidiarius”, the modern use of the principle of subsidiarity frequently traces back to Catholic social teaching, particularly stemming from Pope Pius XI’s 1931 encyclical Quadragesimo Anno. In political and legal systems, it has gained prominence within the structures of the European Union (EU) as well as federal states, advocating that social and political issues should be addressed as closely as possible to the citizens affected.

Definitions and Concepts

Subsidiarity is the principle that decisions on policy should be taken at the most decentralized level consistent with making them effective. For issues such as global environmental standards, international cooperation is often required, whereas policies related to local infrastructure or education may better fit the local or regional governmental bodies.

The principle aims to fend off excessive centralization, ensuring that the unique needs, traditions, and situations of smaller communities are adequately considered.

Major Analytical Frameworks

Classical Economics

Classical economics doesn’t explicitly deal with subsidiarity but underscores limited government intervention, aligning with discussions about decentralized and efficient decision-making.

Neoclassical Economics

Neoclassical economics places great emphasis on efficiency and optimization, principles closely linked to making decisions at the appropriate level to avoid central information overload and inefficiency.

Keynesian Economics

Keynesian economics focuses on the role of central government in stabilizing economies. Here, discussions about subsidiarity might revolve around balancing local versus federal efforts in economic interventions.

Marxian Economics

Marxian economics criticizes the power dynamics within capitalist systems but doesn’t often confront subsiediaty directly. However, decentralization aligns with some discussions on worker control and community-oriented democratic practices.

Institutional Economics

Institutional economics provides room to explore how subsidiarity can structure organizations efficiently and align them with the specific and diverse needs of their stakeholders.

Behavioral Economics

Behavioral economics could explore the psychological and cultural aspects influencing the acceptance and effectiveness of policy when designed and implemented at varying levels of governance.

Post-Keynesian Economics

Post-Keynesian views might consider how different economic policies can be tailored at local levels to address specific regional problems more effectively than blanket national policies.

Austrian Economics

Austrian economists often advocate for less governmental intervention, which by nature speaks to decentralization and, potentially, to subsidiarity principles by promoting solutions grounded in local knowledge.

Development Economics

Development economics might explore how subsidiarity can empower local development, ensuring that development policies are tailored at suitable governance levels to aptly address unique local challenges.

Monetarism

Monetarism’s main focus is on control of the money supply, but understanding how centralized monetary controls work with decentralized fiscal policies and local autonomy could be a challenging discourse involving subsidiarity principles.

Comparative Analysis

Comparative analysis within subsidiarity can delve into how different nations and political bodies, like federations versus unitary states or regions within multinational entities such as the EU, effectively deploy this principle. The outcomes and efficiency of decentralized versus centralized decision-making in sectors like healthcare, education, and environmental policy provide rich fields for such critical investigations.

Case Studies

European Union

The EU serves as a prime example where subsidiarity is at work. Policymaking within the EU frequently requires balancing local member states’ autonomy with the coherence and authority of EU-wide agreements. Case studies might include the implementation of regional development funds or environmental policies.

Federal Systems

In countries like the United States, case studies might explore the division of educational or healthcare responsibilities between state and federal governments.

Suggested Books for Further Studies

“The Principle of Subsidiarity and its Enforcement in the EU Legal Order” by Katarzyna Granat
“Governance and Politics in the Post-Crisis European Union” by Roger Scully and Richard Wyn Jones
“Federalism: A Normative Theory and Its Practical Relevance” by Gregory A. Caldeira and Daniel J. Elazar

Decentralization: Distribution of decision-making powers from central government to regional or local authorities.
Federalism: The mixed or compound mode of government combining a general government with regional governments in a single political system.
Supranationalism: A large amount of power given to an authority which in theory is higher than the state.
Localism: Preference for localized, close-to-home governance and decision-making.
Centralization: The concentration of control and decision-making authority at the top or center of an organization or political framework.