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Federalism in Asia and Beyond

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Christian J. Hegemer / Hanns Bühler (Hrsg.) Federalism in Asia and beyond The Wildbad Kreuth Federalism Days 2012 Impressum ISBN 978-3-88795-439-0 Herausgeber Copyright 2013, Hanns-Seidel-Stiftung e.V. Lazarettstraße 33, 80636 München Tel.: +49 (0)89/1258-0 E-Mail: [email protected], Online: www.hss.de Vorsitzender Prof. Dr. h.c. mult. Hans Zehetmair, Staatsminister a.D., Senator E.h. Hauptgeschäftsführer Dr. Peter Witterauf Leiter des Instituts für Internationale Christian J. Hegemer Zusammenarbeit Leiter PRÖ/Publikationen Hubertus Klingsbögl Redaktion Christian J. Hegemer (V.i.S.d.P.) Hanns G. Bühler (Redaktionsleiter) Lukas Rudolph (Redakteur) Volker Lennart Plän (Redakteur) Druck Hausdruckerei der Hanns-Seidel-Stiftung Alle Rechte, insbesondere das Recht der Vervielfältigung, Verbreitung sowie Über- setzung, vorbehalten. Kein Teil dieses Werkes darf in irgendeiner Form (durch Foto- kopie, Mikrofilm oder ein anderes Verfahren) ohne schriftliche Genehmigung der Hanns-Seidel-Stiftung e.V. reproduziert oder unter Verwendung elektronischer Sys- teme verarbeitet, vervielfältigt oder verbreitet werden. Das Copyright für diese Pub- likation liegt bei der Hanns-Seidel-Stiftung e.V. Namentlich gekennzeichnete redak- tionelle Beiträge geben nicht unbedingt die Meinung des Herausgebers wieder. F O R E W O R D Foreword Gabriele Stauner For Bavarians, federalism is not just an abstract constitutional principle, but is also a part of the practicalities of life and an attitude to political and social challenges that is deeply anchored in our awareness. In Germany, federalism has strong roots that reach far back into the past. Its origins can be traced to the origins of our state organisation more than a millennium ago. Looking back beyond the historical hiatus brought about by National Socialism and the Second World War, we find a system of government in Bavaria that has been around for an exceptionally long time. Whereas it was only after the War that other German federal states were pieced together from various territories (the so-called Bindestrich-Länder, which used a hyphen to indicate that they were made up of more than one territory), the territory of Bavaria has existed almost unchanged in its current form for almost two centuries. This is why we in Bavaria have a great sense of history and self- assurance and why we regard federalism as an especially valuable part of our own tradition. GABRIELE STAUNER Franz Josef Strauß, statesman and former minister-president of Bavaria, once said: “Bavaria is our home, Germany is our fatherland and Europe is our future”. This formulation gets to the core of federal thinking. In other words, we love our traditions and are proud of our history, we are loyal and true in our association with the other Länder of the Federal Republic of Germany and we are doing everything in our power to contribute to a Europe of peace, of law and justice, of prosperity and of cultural wealth. For us, federalism is an answer to globalisation and its tendency towards standardisation in all areas of life. Against this we set regional diversity and respect for differences. To master the challenges of the future better, people need a firm basis to give them strength and self- confidence. With us, they will find this basis in the regional environment, in their traditions and customs and in their commitment to the community – in other words, in their home country. Federalism for us means competing for the best ideas and solutions. Comparing ourselves to other states and regions gives us an incentive to position our home country even better: in industry, in the system of education, in expanding infrastructure, in internal security and in many other political fields of action. This applies within Germany, but for us competition of this kind is also a model for shaping Europe. Federalism for us, however, also means solidarity. As a strong state, Bavaria is helping others to fulfil their tasks and is making a decisive contribution to the present system of financial equalisation among Germany’s federal states, the so-called Länderfinanzausgleich. In 2011, Bavaria’s contribution amounted to 3.9 billion euros: more than half the F O R E W O R D entire amount. Our aim, however, is to correct this system of redistribution, which in recent years has become out of balance. After the system has been reorganised, the aim will again be to help others to help themselves and especially to provide a stronger incentive for competition among the Länder. One important basic idea for us is the principle of subsidiarity. Every problem should be solved at the lowest political level possible. Only when joint solutions appear sensible and necessary at a higher level should the appropriate course of action be taken at that level. This applies not only to the relationship between the local authorities and the Länder but also to the relationship between the Länder and the Federal Republic, as well as the European Union. Subsidiarity leads to a strengthening of democracy. Democracy means getting involved in one’s own affairs. What more sensible way could there be of accomplishing this, than in a graduated federal system? Federalism thus leads to decisions being taken that are as citizen- friendly as possible and therefore more transparent and convincing for each individual person. Thus federalism also leads to a policy of short distances. Bavaria lays claim to the right to regulate its own affairs, but is also prepared to use its economic power and political influence in the Federal Republic of Germany and in Europe to take on the burden of responsibility. One of the main contributory factors is its role in the making of federal policies in the Bundesrat, the second chamber of the German parliament, as regulated by the Constitution. Nor must we forget the Committee of the Regions in the EU. In Brussels we are playing an GABRIELE STAUNER active and acknowledged role, because among other things we are involved in the European early warning system for subsidiarity control and are contributing our entire experience and expertise in order to help the EU to bring its decisions in line with practical experience and to shape them so that they are as close as possible to the citizens. Bavaria sees itself as the driving force behind federalism in Germany and Europe. I am very pleased that this attitude and our federal state system are attracting a lively interest abroad. The 1st Kreuth Federalism Days provided an opportunity for us to present our experiences, to compare them with developments in other regions of the world, especially in South and Southeast Asia, and in the process to discuss intensively the future prospects of this state model. The aim of this collected volume of talks and lectures is to make the results of the conference in Kreuth accessible to those who did not have the opportunity to attend it. I should like to thank all those who contributed and hope that it will find many interested readers. FEDERALISM DAYS 2012 v Overview Foreword 1 Gabriele Stauner Preface 11 Hans Zehetmair Federalism in South Asia and beyond 17 Lukas Rudolph How to Organize National and Regional Co-operation in Federal States? 39 Roland Sturm Unity in Diversity: Learning From Each Other 67 Felix Knüpling Report on the principles of federalism 91 Thomas Pfisterer Crisis of Federalism in Pakistan: Issues and Challenges 119 Jami Chandio Federalism, Ethnicity and Sub-National Identity in Pakistan 159 Sayed Wiqar Ali Shah Constitutional Reforms in Pakistan: federalism after the 18th amendment 193 Zafarullah Khan Economy and Federalism in India 217 Sucha Singh Gill Democratic Decentralization: The Indian Experience 241 Rashpal Malhotra Democracy, Citizenship and Federalisation in India 261 Subrata Mitra Federalism in Myanmar: Status Quo, Positions and Outlook 291 Achim Munz & Michael Siegner About the authors 315 vi FEDERALISM DAYS 2012 Table of Contents Foreword 1 Preface 11 Federalism in South Asia and beyond 17 1 Federalism as a New Paradigm? 17 2 Modelling Choices and Best Practices of Federalism 21 3 The Case Study of Federalism in Pakistan 24 4 The Case Study of Federalism in India 28 5 The Case Study of Federalism in Myanmar 32 6 Conclusion 34 7 Bibliography 35 How to Organize National and Regional Co-operation in Federal States? 39 1 Introduction 39 2 Co-operation with regard to competences 41 3 Co-operation with regard to finances 48 4 Conflict resolution 57 5 Conclusion 61 6 Bibliography 63 Unity in Diversity: Learning From Each Other 67 1 Introduction 67 2 Diversity in Diversity 70 3 The Governance of Diversity 72 3.1 Self Government and Autonomy Arrangements 73 3.2 Distribution of Competencies and Asymmetry 75 3.3 Participation at the federal (central) institutions 77 3.4 Power Sharing Arrangements/Consociationalism 79 FEDERALISM DAYS 2012 vii 3.5 Language Policy 80 3.6 Multicultural and Immigration Policies 83 4 The Issue of Secession 85 5 Conclusion 87 Report on the principles of federalism 91 1 Background of the Guidelines 92 2 A Swiss contribution to a global discussion 95 3 Survey of the Guidelines 96 4 Summary of the five Guidelines 97 5 Bibliography 100 6 Appendix 102 Crisis of Federalism in Pakistan: Issues and Challenges 119 1 Introduction 119 2 Constitutions of Pakistan and Provincial Autonomy 122 2.1 1956 Constitution 124 2.2 1962 Constitution 126 2.3 1973 Constitution 127 2.4 Federation of Pakistan after 18th constitutional amendment 129 3 Issues of Fiscal Federalism in Pakistan 135 4 Ownership of Natural Resources and Royalty Distribution 140 5 Water
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