Federalism and the Federalism and the Canadian Federal SystemCanadian Federal System

D. Brown / Pol Sci 220D. Brown / Pol Sci 220St Francis XavierSt Francis XavierNovember 2007November 2007

What is Federalism? What is Federalism?

A type of democratic governmentA type of democratic government

A philosophy of co-existence in diverse or A philosophy of co-existence in diverse or multiple societiesmultiple societies

The constitutional rule of lawThe constitutional rule of law

Self rule plus shared ruleSelf rule plus shared rule

Divided and shared sovereigntyDivided and shared sovereignty

Multilevel governance Multilevel governance

Definitions and DistinctionsDefinitions and Distinctions

FederalismFederalism -- the overall theory of shared -- the overall theory of shared governance and social co-existencegovernance and social co-existenceFederationFederation – two or more orders of – two or more orders of government with equal status under a government with equal status under a ConstitutionConstitutionConfederationConfederation – league of states with – league of states with delegated central authority (( in Canada, delegated central authority (( in Canada, the original act of union in 1867))the original act of union in 1867))

Why federalism?Why federalism?

Realist reasons:Realist reasons: Governing a large territory effectively and Governing a large territory effectively and

democraticallydemocratically Creating a larger economic spaceCreating a larger economic space Defence against potential enemiesDefence against potential enemies

Idealist reasons:Idealist reasons: Accommodating diverse groups, nationsAccommodating diverse groups, nations Sharing powerSharing power Creating competing power centresCreating competing power centres

Five Features of a FederationFive Features of a Federation

1. Combining shared rule and self rule 1. Combining shared rule and self rule regional governments for regional regional governments for regional

matters, laws applicable to residents matters, laws applicable to residents within their boundarieswithin their boundaries

central government for general central government for general matters, laws applicable to all citizens matters, laws applicable to all citizens

2. Constitutionally protected autonomy of 2. Constitutionally protected autonomy of each level of government , central and each level of government , central and local local

Five Features, continuedFive Features, continued

3. 3. A Constitution that distributes power A Constitution that distributes power between the orders of governmentbetween the orders of government

4. A constitutional amending formula, 4. A constitutional amending formula, preventing any one order of government preventing any one order of government from changing constitution unilaterallyfrom changing constitution unilaterally

5. Central institutions designed in part to 5. Central institutions designed in part to represent the units of the federationrepresent the units of the federation. .

Why did we (in Canada) create a Why did we (in Canada) create a federal union?federal union?

Defense of British North America and better Defense of British North America and better organization of imperial interestsorganization of imperial interests

Fenian raids cause concernFenian raids cause concern

Effect of US civil war and potential aggressionEffect of US civil war and potential aggression Creating a continental economyCreating a continental economy

British mercantilism endingBritish mercantilism ending

Reciprocity Treaty with USA ends 1866Reciprocity Treaty with USA ends 1866 To Get out of the Political Stalemate and Dysfunction To Get out of the Political Stalemate and Dysfunction

of the 1840 union of Upper and Lower Canadaof the 1840 union of Upper and Lower Canada

Steps to Getting to a DealSteps to Getting to a Deal

• Creation of the Conservative coalition in Creation of the Conservative coalition in Canada: Macdonald – Cartier Canada: Macdonald – Cartier

• The “Great Coalition” to include “Grits” The “Great Coalition” to include “Grits” creates a bipartisan agreement to push creates a bipartisan agreement to push for a federal union for a federal union

• Bringing Maritimes in: Charlottetown Bringing Maritimes in: Charlottetown conference, July 1864conference, July 1864

• Reaching a settlement: Quebec City Reaching a settlement: Quebec City conference, October 1864conference, October 1864

Who Did the Dealing?Who Did the Dealing?Elected politicians from Government and Elected politicians from Government and OppositionOpposition 23 at Charlottetown; 33 at Quebec23 at Charlottetown; 33 at Quebec

The British Government (Governors, The British Government (Governors, Colonial Secretary) behind the scenesColonial Secretary) behind the scenes

Not at the table Not at the table Quebec: Dorion and “les Rouges”Quebec: Dorion and “les Rouges” First Nations, Métis, InuitFirst Nations, Métis, Inuit British ColumbiaBritish Columbia

The Deal at Quebec City 1The Deal at Quebec City 1Distribution of Powers:Distribution of Powers:

General vs particular and localGeneral vs particular and local Two long lists of exclusive jurisdictionsTwo long lists of exclusive jurisdictions Central government holds “reserve” of powerCentral government holds “reserve” of power

Hierarchy of Power-sharing:Hierarchy of Power-sharing: Federal appointment of Lt.- GovernorsFederal appointment of Lt.- Governors Reservation and disallowanceReservation and disallowance Most important fiscal powers in central handsMost important fiscal powers in central hands Federally appointed judiciaryFederally appointed judiciary

The Deal at Quebec City 2The Deal at Quebec City 2 An appointed Senate An appointed Senate (some wanted (some wanted

elected)elected) Senate representation: “sectional” equality: Senate representation: “sectional” equality:

Ontario (24), Quebec (24) Nova Scotia (10) Ontario (24), Quebec (24) Nova Scotia (10) New Brunswick (10)New Brunswick (10)

Minority RightsMinority Rights: decentralized, not : decentralized, not universal:universal:language rights in legislature and courts: Quebec, language rights in legislature and courts: Quebec,

federalfederal

denominational rights in education: Quebec, denominational rights in education: Quebec, OntarioOntario

The Deal at Quebec City 3The Deal at Quebec City 3

Room to Expand…Room to Expand… Anticipating Newfoundland, PEI and British Anticipating Newfoundland, PEI and British

ColumbiaColumbia Expectations re Rupert’s Land and Northwest Expectations re Rupert’s Land and Northwest

TerritoryTerritoryGovernment of Red River settlement Government of Red River settlement Treaties with IndiansTreaties with IndiansFederal lands and resourcesFederal lands and resources

Amending the Constitution: left to Imperial Amending the Constitution: left to Imperial ParliamentParliament

Deal at Quebec City --PowersDeal at Quebec City --Powers

FederalFederal Peace, Order and Peace, Order and

Good Government Good Government Trade and CommerceTrade and Commerce Control over Indians Control over Indians

and their lands, the and their lands, the NorthwestNorthwest

Transportation and Transportation and communicationscommunications

ProvincialProvincial Property and Civil Property and Civil

RightsRights Matters of a Local and Matters of a Local and

Private NaturePrivate Nature Ownership & Ownership &

regulation of natural regulation of natural resourcesresources

Education, health and Education, health and social servicessocial services

The Evolution of Canadian The Evolution of Canadian Federalism, 1867-1967Federalism, 1867-1967

1867-1896: a period of “Imperial federal 1867-1896: a period of “Imperial federal government”government”

1880s-1914: the Rise of Provincial Rights 1880s-1914: the Rise of Provincial Rights

1896-1939: The era of classical federalism1896-1939: The era of classical federalism

1939-66 Centralization and the welfare state1939-66 Centralization and the welfare state

1967-present: federal-provincial competition 1967-present: federal-provincial competition and the rise of “executive federalism”and the rise of “executive federalism”

Executive Federalism Executive Federalism

Describes how intergovernmental relations Describes how intergovernmental relations are dominated by elected and bureaucratic are dominated by elected and bureaucratic executives executives Response to interdependence in federal Response to interdependence in federal systemsystemExecutive dominance comes from Executive dominance comes from “Westminster” form of government “Westminster” form of government Bigger role due to poor degree of regional Bigger role due to poor degree of regional representation in central institutionsrepresentation in central institutions

Why do we need intergovernmentalWhy do we need intergovernmentalrelations ?relations ?

To compensate for inadequate or To compensate for inadequate or uncertain division of powersuncertain division of powersTo deal with government interdependenceTo deal with government interdependence welfare statewelfare state globalizationglobalization

To promote fiscal efficiency and equityTo promote fiscal efficiency and equityTo provide regional representationTo provide regional representationBut….some still prefer a more “classical” But….some still prefer a more “classical” approach (e.g. Quebec, Stephen Harper)approach (e.g. Quebec, Stephen Harper)

Your list of Current IssuesYour list of Current IssuesF=feds; P=prov’s; F=feds; P=prov’s;

Auto insurance – PAuto insurance – P

Canadian dollar – FCanadian dollar – F

Ownership and regulation of oil – POwnership and regulation of oil – P

Gasoline prices – f/PGasoline prices – f/P

Health care: public/private – P/FHealth care: public/private – P/F

International trade – F/pInternational trade – F/p

Environment – F/PEnvironment – F/P

Where Executive Federalism Where Executive Federalism HappensHappens

First Ministers MeetingsFirst Ministers Meetings

Federal-Provincial-Territorial Ministerial Federal-Provincial-Territorial Ministerial CouncilsCouncils

Seniors officials meetingsSeniors officials meetings

Regional meetings of Premiers, etc.Regional meetings of Premiers, etc.

Informal interaction:Informal interaction: Correspondence, emails, phone calls, Correspondence, emails, phone calls,

bilateral meetingsbilateral meetings

Issues with Executive FederalismIssues with Executive Federalism

Low level of institutional structure: no Low level of institutional structure: no votes, no constitutional statusvotes, no constitutional statusFew incentives to agree: a competitive Few incentives to agree: a competitive political culturepolitical cultureDemocratic deficits:Democratic deficits: Poor accountability to legislaturesPoor accountability to legislatures Limited nature of representation -- “white men Limited nature of representation -- “white men

in suits”in suits” Secretive, bureaucratic, overly technicalSecretive, bureaucratic, overly technical

Fiscal FederalismFiscal FederalismConstitutional PowersConstitutional Powers Exclusive provincial powers, but feds have “spending Exclusive provincial powers, but feds have “spending

power”power” Both feds and provinces have access to important Both feds and provinces have access to important

taxestaxes

Tax Structure and HarmonizationTax Structure and Harmonization Shared revenues: personal and corporate income tax, Shared revenues: personal and corporate income tax,

sales taxes, alcohol, tobacco and fuelssales taxes, alcohol, tobacco and fuels Tax collection agreements for some taxesTax collection agreements for some taxes

Intergovernmental TransfersIntergovernmental Transfers Conditional and unconditionalConditional and unconditional Equalization, Canada Health Transfer are two biggestEqualization, Canada Health Transfer are two biggest

Intergovernmental transfersIntergovernmental transfers

Vertical fiscal gaps: met with cash and tax Vertical fiscal gaps: met with cash and tax transferstransfersHorizontal fiscal inequities: met by Horizontal fiscal inequities: met by Equalization program, plus equalizing Equalization program, plus equalizing features of other transfersfeatures of other transfersRelatively few conditions on transfers Relatively few conditions on transfers compared with other federal systemscompared with other federal systemsEqualization is the key to sustaining Equalization is the key to sustaining provincial autonomy over timeprovincial autonomy over time

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