| Abstract: | The stock opinion among students of interest groups has, untilrecently, posited that groups in countries with a federal systemof government are less cohesive and more prone to disunity thaninterest groups in unitary states. This article addresses thisrelationship bet ween federalism and weak group cohesion inan attempt to explain the contrasting patterns of cohesion intwo peak Australian business groups, each a confederation instructure. The literature on federalism and group cohesion givesinsufficient attention to the divisive impact of three factors:party go vernment, size and wealth inequalities among a group'sconstituent units, and a group's decision and payoff rules.The literature also gives insufficient attention to the determinantsof group secession. It is the contention of the article thatconflicts over the fairness of a federated organization's rules,particularly when the large, wealthy units find themselves outvotedby the small, poor units, can be sufficient to provoke the aggrievedunits to secede. |
