Like all other governing institutions, federal structures must be able to a
dapt and adjust to changing economic, political, and social circumstances.
This article outlines the major drivers that call for change in the institu
tions and processes of federalism. These include changing citizen orientati
ons and expectations, changing policy agendas arising from the environment,
new patterns of governance and public administration, and the pressures of
globalisation. Although some worry that federal institutions are rigid and
inflexible, the paper describes a wide variety of mechanisms and processes
through which federal institutions have been able to respond. These includ
e constitutional amendment, judicial interpretation, coordination through i
ntergovernmental relations and associated intergovernmental agreements, fis
cal federalism, asymmetrical arrangements, the delegation of powers, and, i
n limited cases, the use of emergency powers.