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Policy Issues in Federalism International Perspectives Unity in Diversity Learning from Each Other POLICY ISSUES IN FEDERALISM INTERNATIONAL PERSPECTIVES UNITY IN DIVERSITY LEARNING FROM EACH OTHER Volume 1 : Building on and Accommodating Diversities Volume 2 : Emerging Issues in Fiscal Federalism Volume 3 : Interaction in Federal Systems Volume 4 : Local Government in Federal Systems UNITY IN DIVERSITY LEARNING FROM EACH OTHER VOLUME 5 Policy Issues in Federalism International Perspectives Edited by John Kincaid and Rupak Chattopadhyay FORUM OF FEDERATIONS © Forum of Federations, 2008 All rights reserved. No part of this publication may be reproduced or transmitted, in any form or by any means, without permission. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First published, 2008 Viva Books Private Limited • 4737/23, Ansari Road, Daryaganj, New Delhi 110 002 E-mail: [email protected], Tel. 42242200 • Plot No. 76, Service Industries, Shirvane, Sector 1, Nerul, Navi Mumbai 400 706, E-mail: [email protected] Tel. 27721273, 27721274 • Jamals Fazal Chambers, 26 Greams Road, Chennai 600 006 E-mail: [email protected], Tel. 28290304, 28294241 • B-103, Jindal Towers, 21/1A/3 Darga Road, Kolkata 700 017 E-mail: [email protected], Tel. 22836381, 22816713 • 7, Sovereign Park Aptts., 56-58, K.R. Road, Basavanagudi, Bangalore 560 004 E-mail: [email protected], Tel. 26607409, 26607410 • 101-102, Moghal Marc Apartments, 3-4-637 to 641, Narayanguda, Hyderabad 500 029, E-mail: [email protected] Tel. 27564481, 27564482 • Beevi Towers, First Floor, SRM Road, Kaloor, Kochi 682 018, Kerala, E-mail: [email protected], Tel. 0484-2403055, 2403056 www.vivagroupindia.com ISBN-10: 81-309- ISBN-13: 978-81-309- Published by Vinod Vasishtha for Viva Books Private Limited, 4737/23 Ansari Road, Daryagang, New Delhi 110 002. Printed & bound at Sanat Printers, Kundli 131 028 This book is meant for educational and learning purposes. The editor and the contributors of the book have taken all reasonable care to ensure that the contents of the book do not violate any existing copyright or other intellectual property rights of any person in any manner whatsoever. In the event the editor and contributors have been unable to track any source and if any copyright has been inadvertently infringed, please notify the publisher in writing for corrective action. Contents Preface vii RUPAK CHATTOPADHYAY PAUL MORTON THEME 1: BUILDING ON AND ACCOMMODATING DIVERSITIES Can Diversity be Accommodated? 3 The Case of Ethiopia L EULSEGED TADESSE Policy as Instrument for Reconciling Diversity 13 Experience of the Indian Federal System H IMANSHU JHA How Important is Language Policy as a 30 Conflict-Resolution Tool? The Cases of India and Serbia A NSHU SRIVASTAVA M IODRAG A. JOVANOVIÆ THEME 2: EMERGING ISSUES IN FISCAL FEDERALISM Differences in Resource Endowments and the Impact 53 on the Argentine Education System L UCIANA DÍAZ FRERS Are Federations Moving Towards More Rational Forms 65 of Equalization? The Cases of India and Russia S HEFALI DHINGRA V LADIMIR NAZAROV VI Contents To What Extent do Central Governments Erode 88 Subnational Jurisdiction using Fiscal Arrangements? Perspectives from India and Italy S ANJAY KUMAR PANDEY A UGUSTA BADRIOTTI THEME 3: INTERACTION IN FEDERAL SYSTEMS Intergovernmental Responses to Water Disputes 113 in Australia A DAM WAND Accountability and Transparency 125 Challenges to Executive Dominance in Intergovernmental Relations T RIPTA KANOJIA R ACHEL SIMEON How do Federal States Deal with the Need for 147 Coordinated Policing and Public Security? S TEPHEN HERBERT Are Centralized Election Management Bodies Suitable 160 for Federal Structures? I NDRANEEL DATTA THEME 4: LOCAL GOVERNMENT IN FEDERAL SYSTEMS Local Government Leading the Empowerment 177 of Disadvantaged Groups The Cases of India and South Africa N EETU PRASAD R EUBEN BAATJIES Democratization and Decentralization in Latin America 201 and the Case of Participatory Budgets A LBERTO KLEIMAN Panchayati Raj in India 209 Are They Really Successful in Participatory Decision-Making? N UPUR T IWARI The Reform of Federal-Local Relations in Germany 219 H ENDRIK HAGEMANN Notes on Contributors 227 Young Professional Committee 232 Contents VII Preface Rupak Chattopadhyay Paul Morton This volume is the last in a series of five books based on the proceed- ings of the 4th International Conference on Federalism, held in New Delhi between 5-7 November 2007. While the other volumes each represented one of the four conference themes, this one brings together a selection of papers from the Young Professionals Pro- gramme of the conference. The 4th International Conference on Federalism was the most recent in a series of events organized in partnership between host governments and the Forum of Federations. Held, on an average, every three years, these conferences are an opportunity for experts and practitioners from around the world to discuss current themes in federal governance. The first was hosted by the Government of Canada in Mont Tremblant in 1999, and examined the role of fede- ralism in an age of globalization. Thereafter, the federal and canto- nal governments of Switzerland together held the second conference in August 2002. In 2005, the third conference was held in Brussels to coincide with the 175th anniversary of Belgium’s independence and the 25th anniversary of federalism in the country. Develop- ments in Sudan, Iraq, and elsewhere at the time led to a conference heavily focused on the role of federalism in post-conflict environ- ments. Common to each of these conferences was a programme for young professionals. However, the conference in New Delhi offered a unique opportunity to integrate contributions by young profes- sionals into the work of the main conference. In past conferences, VIII Preface parallel programmes were usually created for young professionals. Furthermore, the demography targeted by the Young Professional Programme at this conference embraced those in early stages of a promising career in federalism-related fields, rather than students. This allowed the group to be seamlessly integrated in the working sessions of the conference. The New Delhi conference brought together 50 Indian and international participants, from established (such as Germany and Brazil) and emerging federations (such as Iraq), as well as participants from countries with federal type arrangements (such as Italy and the UK). In addition to participating in the conference sessions, they worked together on a series of co-authored papers in the lead-up to the conference. In contrast to the thematic papers prepared for the main conference sessions, the young professionals were asked to bring a new perspective on the themes by reflecting on future challenges in these areas. The following policy questions, arranged by theme and subtheme, were considered during the working sessions of the conference. Theme 1: Building on and Accommodating Diversity • Subtheme: Nation Building and Diversity – Can Unity and Diversity be Reconciled? – Can Deep Differences be Accommodated? • Subtheme: Autonomy and Diversity – How do Institutional Arrangements for Diversity Evolve over Time? – How do Devolved Systems Deal with Autonomy? • Subtheme: Managing Conflicts of Diversity – How Important is Language Policy as a Tool of Conflict Resolution? – Is Federalism an Option for Managing Conflict? Theme 2: Emerging Issues in Fiscal Federalism • Subtheme: Assignment Systems in Federations Preface IX – How Effective are Different Forms of Harmonizing VAT and Other Taxes? – Does Fiscal Responsibility Legislation Undermine Federalism? • Subtheme: Managing Fiscal Conflicts – How Far should Federations Accommodate Differences in Resource Endowments? – Are Federations Moving Towards More Rational Forms of Equalization? • Subtheme: Fiscal Federalism and Regional Equity – How do Federations Reconcile Overall Economic Stability with State Autonomy? – To What Extent do Central Governments Erode State Jurisdiction using Fiscal Arrangements? Theme 3: Interaction in Federal Systems • Subtheme: Anticipating and Managing Tension and Conflict – How do Federations Deal with Water Disputes? – How do Federations Coordinate Policing and Deal with Public Security? • Subtheme: Techniques, Structures, and Processes – What are Effective Approaches to Intergovernmental Relations? – How can Disasters and Emergencies be Effectively Managed? • Subtheme: Accountability and Transparency – Can Accountability and Transparency be Achieved where Executive Branches Dominate Intergovern- mental Relations? – Are Centralized Election Agencies Compatible with Federalism? Theme 4: Local Government in Federal Systems • Subtheme: Enhancement of Democracy through Empowerment of Disadvantaged Groups X Preface – To What Extent should Local Governments Lead in the Empowerment of Disadvantaged Groups? – Are Local Governments Really Enhancing Participatory Decision-Making? • Subtheme: The Functioning of Local Governments in Federal Systems – Should Local Governments be Constitutionalized? – Do Direct Federal-Local Government Relations Undermine Federalism? • Subtheme: Governance of Megacities in Federal Orders – How is Governance and Service Delivery Organized in Megacities? – What Forms has Governance of National Capital Regions Taken? These questions formed the basis of young professional contri- butions to the conference and form the basis of the papers which have been reproduced in this volume.
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