Inter-Regional Competition in Co-operative Federalism: New Modes of Multi-level Governance in Germany

In its territorial dimension, the reconfiguration of the state is mainly revealed in the development of multi-level governance. Generally speaking, we observe a shift from hierarchical and co-operative modes towards competitive modes. As a consequence, regions are increasingly challenged by competition. Beyond the driving forces of the market, which are often overestimated, central governments use policy competition to influence and control regional policy making. Based on an analytical distinction between these types of competition, the article explains how this new mode of multi-level governance works. Empirical evidence is provided for Germany where inter-regional policy competition organized by the federal government is implemented in a co-operative federalism. This case allows us to explain practical problems and constraints of competitive governance.