To make our system more successful we need to apply principles of Democratic Subsidiarity. I add the adjective "democratic" because without democratic features subsidiarity risks becoming a means for affirming updated forms of feudalism. The European Union is running into this problem because they can't agree and are afraid to enforce democratic or even representative principles when applying the principle of subsidiarity.
The notion of Democratic Subsidiarity hails from conservative arguments logically applied to good government:
"Subsidiarity is an organizing principle that matters ought to be handled by the smallest, lowest or least centralized competent authority. Political decisions should be taken at a local level if possible, rather than by a central authority."
Subsidiarity also is a term that hearkens back to Europe's Dark Ages and Feudal System. So beware of simplistic arguments!
In the context of Federations and confederations, this principle has to guide function for the members of a loose Federated government to be willing to join the confederation. However, not all political decisions logically are the jurisdiction of local authority. General decision making has to be a collective function of centralized authority mediated by leadership and some amount of coercive authority or Federations tend to be temporary and fly apart at the first sign of strain. General functions require that both local and central decisions be taken deliberately and with republican and democratic principles respected. Moreover, local functions usually require some sort of General support. For example the European Union created a monetary condominium with central banking managed chaotically under influence of centralized bankers. The result was that local governments weren't subject to rational accounting controls while at the same time the bankers were able to prey on local people and businesses without even the ability to fiscally assist local government. On the contrary local and national governments have been under the rule of compound interest and debt for money that rightfully should have belonged to the people as a whole. Creating the Euro was a good idea. Letting private banks govern it, not so good. Talking about subsidiarity without ordinary controls (regulations and rules) over local spending coupled with government that provides sufficient money to float an economy, is creating government without the tools to even survive.
Thus, Ironically, subsidiarity only works if it also encompasses republican and democratic principles.
- Republican principles include representation, separation of powers, and majority rule as a threshold for decision making. Democratic
- Democratic principles = governments that involve as many as possible of the ordinary people affected by them (within their jurisdiction).
Without representation consent of Governed of the governed becomes impossible. Countries without strong representative and rule of law principles tend to fly apart when people have minor disagreements and break out into warfare when they have major ones. Subsidiarity is a valid principle for some kinds of decisions and areas of government. Likewise governments without an informed and involved citizenry tend to be governed corruptly and poorly. "Competent authority" requires democratic controls (oversight). Subsidiarity requires both tools, privileges, checks and duties. Subsidiarity is a valid principle, but not by itself and not without that attribute "Democratic" added.