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FOCJFunctional Overlapping Competing Jurisdictions
FOCJFerrari Owners Club Japan (automobile club; Japan)
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Another German economist, Wolfgang Kerber, agreed with Eichberger that an "underlying legal order" would still be needed to provide, among other things, "a set of metarules that ensure that a system of FOCJs is really able to enhance the welfare of the citizens." But Kerber argued that a competitive process could enter the legal order as well; it may be possible, he wrote, for "individuals or firms [to] have the right to choose between legal rules or whole legal orders.
FOCJ may overlap in two respects: first, FOCJ catering to different functions may overlap; second, two or more FOCJ catering to the same function may overlap (for example, a multitude of school FOCJ may serve the same geographical area).
The heads of FOCJ are induced to conform closely to their members' preferences by two mechanisms: the individuals' and communities' capacity to exit mimics market competition, and their right to vote establishes political competition.
For FOCJ to establish competition between governments, exit should be restrained as little as possible.
The citizens should directly elect the persons managing the FOCJ, and they should be given the right to initiate popular referenda on specific issues.
First, the lowest political unit (normally the community) and all corresponding citizens automatically become citizens of the FOCJ to which their community belongs.
FOCJ compare favorably to traditional forms of federalism with respect to the governments' incentives and capacities to satisfy the heterogeneous preferences of individuals.
Because FOCJ are formed in order to minimize interjurisdictional spillovers and to exploit economics of scale, they would be able to provide public services at low cost.
FOCJ may also expose the politicians' cartel to competition by competent outsiders.
A federal web composed of FOCJ certainly would affect the role of the nation-states.
Four criticisms are often advanced against the proposal for establishing FOCJ.
In a federal system of FOCJ, each individual is a citizen of various jurisdictions.