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01-017 Eng Title Page Federations What’s new in federalism worldwide volume 1, number 3, march 2001 In this issue Is British devolution a step toward federalism? By Melanie A. Sully After the 1997 election, Tony Blair’s government implemented devolution plans for both Scotland and Wales. These regions have received a measure of local power—more to Scotland than to Wales—but ultimate power resides in London. India creates three new states By Harihar Bhattacharyya What would be unusual—even legally impossible—in other federations has happened repeatedly throughout India’s history. The creation of the new states of Chhatisgarh, Jharkhand, and Uttaranchal last November was the latest example of “states reorganization” in India. Australia’s centenary of Federation: a mystery and a muddle? By David Headon This year marks the 100 th anniversary of Australia’s federation. Yet there has been little public reflection on the federal system’s successes, failures, and opportunities. The reason for this “Great Federalism Silence” has as much to do with Australia’s political present as with its perhaps unromantic origins. Brazil: tax reform and the “fiscal war” in the federation By Ricardo Varsano Globalization has intensified competition between Brazilian states seeking private-sector investment. But the Brazilian tax system has been ineffective in curbing the excesses of this fiscal war. The tax system must adapt if it is to put the brakes on a downward spiral which can only exacerbate regional inequality. The German Constitutional Court takes on the principle of ‘solidarity’ By Paul Bernd Spahn There has been much criticism of the law for interstate fiscal equalization in Germany. A recent ruling of the Constitutional Court challenges many of its provisions and states that it should be phased out as of 2005. In the debates which have already begun about both the details and the philosophy behind fiscal equalization in Germany, will the principle of inter-state “solidarity” survive? The PRACTITIONER’S Page: Llibert Cuatrecasas of Catalonia Llibert Cuatrecasas, the President of the Council of Europe’s Congress of Local and Regional Authorities, is deeply involved in the developing relationship between local governments and the European Union. He recently presided over a meeting of Regional Presidents in Barcelona. Federations spoke with him about regions with legislative power and the evolution of the EU in an increasingly globalized world. Contributors to this Issue Harihar Bhattacharyya is a Reader in the Department of Political Science, University of Burdwan, West Bengal, India. Llibert Cuatrecasas is Secretary-General for European Affairs in the Catalan government, and the President of the Council of Europe’s Congress of Local and Regional Authorities of Europe. David Headon is the Cultural Advisor to the National Capital Authority and is the Director of the Centre for Australian Cultural Studies in Canberra. Paul Bernd Spahn is Professor of Public Finance at the Johann Wolfgang Goethe University, in Frankfurt, and has been a consultant to the IMF, the World Bank and numerous governments around the world. Melanie Sully is a Lecturer at the Diplomatic Academy in Vienna and the author of The New Politics of Tony Blair and The Haider Phenomenon. Ricardo Varsano is the Tax Studies Coordinator at the Institute of Applied Economic Research (IPEA) in Rio de Janeiro. The Forum of Federations seeks to enhance democracy and improve governance by promoting dialogue on the practices, principles, and possibilities of federalism. From the editors... In this issue of Federations: What’s new in in addition to our usual five articles from different federalism worldwide we deal with a number regions of the globe, we will devote a page to the of different themes: particular point of view of a person who “practices” federal governance in one of its many guises. This • Fiscal federalism—in Brazil where a “fiscal war” “practitioner” will share a challenge that he or she has has resulted in a kind of beggar-thy-neighbour confronted, or a particular initiative with which he or policy, and in Germany where some of the she has been associated. This is part of the Forum’s more prosperous states have contested the focus on working to improve the practice of federal highly equalizing system of revenue sharing governance by acting as a clearing house for in that country; knowledge, experiences and best practices. • Evolving federalism—in India, where not too This issue’s practitioner is Llibert Cuatrecases of the long ago three new states were created in order Catalan Autonomous government, who talks about his to accommodate distinct cultural and ecological experience in steering the activities of the Congress of concerns; Local and Regional Authorities of Europe. • Nascent federalism—in Britain, where the policy We invite the many practitioners of federalism among of devolution to Scotland and Wales will likely be our readers to suggest accomplishments, best tested in an election this spring; practices and challenges they might wish to share. • Centennial federal malaise—in Australia, where We also invite your letters, which we post on our web at least some writers find a disappointing lack site: www.forumfed.org of enthusiasm for the hundredth birthday of Australian Federation; The Forum of Federations has been very busy the past few months working on projects in many different • And Supra-National federalism—in the “new regions of the world. Among the many events coming Europe”, where the regions with legislative powers up in the near future are a roundtable on the role of are trying to get the respect they consider to be constituent units in international relations to be held their due. this May in Winnipeg, Canada, and two major regional We deal with the last theme in our new feature, conferences on federalism to be held later this year, “the Practitioner’s Page”. In each issue from now on, the first in Nigeria and the second in Mexico. A publication of the Forum of Federations 700-325 Dalhousie, Ottawa, Ontario K1N 7G2 Canada Tel.: (613) 244-3360 Fax: (613) 244-3372 [email protected] www.forumfed.org Editor: Karl Nerenberg Associate Editor: John Ihnat Editorial / Administrative Assistant: Rita Champagne Federations is published five times per year by the Forum of Federations. Subscription rates are $20 CDA per year in Canada, $20 USD per year anywhere else in the world. Contributions of articles are welcome. Contact the Editors at the above coordinates. The Forum of Federations cannot guarantee the return of unsolicited manuscripts. Is British devolution a step toward federalism? BY MELANIE A. SULLY In 1997 Tony Blair won a landslide In 1707 to guarantee prosperity the Act of Three-quarters voted in favour of a Scottish victory at the polls for New Labour on Union established a new kingdom of Great parliament and almost two-thirds endorsed a programme that included proposals Britain merging the English and Scottish the proposal for tax-varying powers. for radical constitutional reform—with parliaments with joint representation in particular emphasis on the devolution Westminster. At the same time the Union A new parliament quite different of power to Scotland and Wales. guaranteed the independence of Scotland’s Presbyterian church, its from Westminster Britain had one of the most centralized universities and its legal system. Other In 1999 the 129-member parliament was systems in Europe and the pressure for clauses in the Union saw that the two elected for a fixed term of four years. The greater independence from London had countries should be taxed in the same parliament differs from Westminster in been mounting and threatened potentially way, have the same currency and enjoy some important ways. Its physical layout to wreck the unity of the United Kingdom. equal rights in trade giving Scottish traders is horse-shoe shaped, encouraging a “Devolution”, in this context, means a access to rich colonial markets. consensual style rather than the traditional process by which powers are transferred, government versus opposition style. And it At the end of the nineteenth century a without parliament relinquishing its has a First Minister (a Scottish prime Scottish office was created and a Scottish supremacy. And soon after it took office, minister) who is elected by all the secretary has usually been a member of the Blair government drew up a devolution members of parliament, using a modern the cabinet. Further, Scotland’s voice could package including a Scottish parliament electronic voting system. be heard in parliamentary committees that with tax-raising powers, and an assembly dealt with Scottish legislation. The royal prerogative is preserved in that (with much less power) for Wales. the First Minister elected by the members In 1979 Mrs Thatcher, a figure unloved The Conservative Party saw these must then be formally recommended by in Scotland, came to power as prime proposals as the beginnings of the the presiding officer (Speaker) for minister, representing an ideology “Balkanisation” of Britain that would lead ratification by the Monarch. The sovereign anathema to the Scottish political to increased fragmentation and conflict. also receives the resignation of the First culture. For almost 20 years the political Conservatives expressed the fear that such Minister and formally dissolves parliament. colour of the government in Westminster decentralization could lead to a reactionary All Scottish bills are to receive royal assent was at loggerheads with political feeling backlash in England and fuel passions of and Scotland remains an integral part of in Scotland. nationalism and hate. the UK and the Queen remains the head During the Thatcher period, legal experts, of state. The debate on devolution is by no means representatives from the churches, political over and has stirred feelings of the English The method of electing members also parties, business groups and labour as a separate nation with a distinct history differs from the Westminster system.
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