Power politics dominates the international scene and the US as the most powerful nation on the planet plays power politics hard. Power politics is also how the vertical power balance in a federal system is conducted. For instance in the US California tends to be very independent of the US national government. This is due to a mix of size, economic power and ability to raise revenue to support independent policy. So much so that Californian policy ends up influencing federal policies.
Australia has a far more centralised federal system which despite NSW's dominance of GDP at 33% has not translated into independent policy and political power since WWII. The main imbalance is tax, but a nationalist high court has helped as has a national government selective in its fights. (more)
One of the arguments in Australia against federalism today is that it was politically necessary in 1901 in order to get the colonies to come under one government - and today that is no longer a political need. Federalism is a form of political organisation that has positive benefits beyond the historical reasons for Australian federation. These include; decentralisation, geographical balance of powers, policy diversity and local autonomy and representation.
This isn't nostalgia for some mythical Australian past; a federalist system is a superior form of constitutional and political organisation. (more)
