State-centered theory (or state-centred federalism) is a political theory which stresses the role of the government on civil society.[1] [2] It holds that the state itself can structure political life to some degree, but doesn't facilitate the way power is distributed between classes and other groups at a given time.
Theory holding that the national government represents a voluntary compact or agreement between the states, which retain a dominant position. Supporters of state-centered federalism included Thomas Jefferson and the Republican Party. They saw the Constitution as an agreement among the states of which gave them the ability to self-governance.
National policy makers interact with economy independently, with intention of raising social welfare. This gives legitimacy to market intervention.[3]