Regional Government

What do other nations do?
USA - state capitals in every state. Washington is just for diplomats and politicians, the business of life is in the state capital
Canada - territory capitals for businesses
Germany - bundestag in every region where the bulk of commerce and industry is devolved (they even have local currencies!)
Spain - strong local regional identity and business loyalty to the region, rather than all concentrated in the capital
Italy - also strongly regionalised
Switzerland - strong regions

Democracy means that government should be near the people, and business should be near the people