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Political Science
Political Science 2133A/B

Federalism 01/23/2014 Whats is Federalism System of government Lower level of governments (Provinces) non­have sub­ordinate over the other. Governments are autonomous of eachother. Unitary and Confederal States National government has authority over all the levels of the government (France) Confederal state  Confederation Goals  Economic development, larger markets Security From quasi­federalism to Federalism Central government had a lot of power Centre­Periphery Relations Historical Dominance of Central Canada Functions of demographics, geography and policy National policy, National Energy Program Control over natural resources Preoccupation with Quebec  All led to western regional alienation Canada at the time of Confederation Ontario was quite small around the great lakes Quebec hugged the st.lawrence Population mostly was in what now is southern quebec and Ontario The National Policy Sir John A MacDonald (1867­1873, 1878­1891) High tariffs on manufactured goods Aim was to protect manufacturing industry in Ontario and Quebec Nation­Building: creating east­west rather then north­south Canadian Pacific Railway, western settlement National Energy Program Pierre Trudeau (1968­1979, 1980­1984) Goals: energy security, federal government share of resources, greater Canadian ownership How Limits on price of gas and oil sold in Canada from Canadian sources Expanded role for Petro­Canada, 25% share for federal government offshore resources and in the north Natural Resources Provincial control over natural resources guaranteed in Constitution Act 1867, but: Manitoba, Saskatchewan and Alberta not granted the same powers. Federal government had exclusive right to regulate, license, and collect royalties from resources until 1930 Colonialism? “West was not to exist for its own sake but only as a useful appendage to Central Canada” View in rest of Canada: Taxpayers bought the land, should control it Preoccupation with Quebec Back to history “Mega­Constitutional” Conflicts 1960’s: Quiet Revolution 1970’s: rise of separatism, PQ. Language Laws. 1980’s: patriation of Constitution. Meech Lake 1990’s: Charlottetown, 1995 referendum, Clarity Act Differen conceptions of Canadian Federalism Two­nation compact? Equality of Provinces? Western (Regional) Alienation Beliefs and attitudes held by individuals in the four western provinces: Federal system promotes dysfunctional, assymetic relationship Economic policies benefit central Canada at expense of West Political inequality: Western votes “not needed”, failure of intrastate federalism Quebec Protest movements an parties Strengthening regional identities Executive Federalism “true third order of the government”, less true now? Definition: negotiations about division of [owers and fiscal balance between the prime minister and  premiers. First Ministers’ Conferences, council of the Federation Harper’s “Open Federalism” Shift in federal provincial balance towards provinces Respect for constitutional division of powers “dual Federalism” Reducing federal spending power, addressing fiscal imbalance Change in intergovernmental relations Reasons 1. Concentration of power in first ministers 2. Lack of intrastate federalism 3. Numbers 4. Constitutional leftover Criticisms 1. Secrecy, ‘under democratic’ 2. Confuses responsibility for policy 3. No public (or legislative, party) input 4. Emphasis on territorial interest, intergovernmental conflict 5. Fuels government expansion Fiscal Federalism The most important thing? Definition: the evolving system of financial arrangements between the federal and provincial orders of  government. Involves 1. Constitutional powers 2. Tax structures 3. Intergovernmental transfers 4. Intergovernmental relations Fiscal Imbalance 1. Between provincial revenues and expenditures (fiscal gap) 2. Between what wealthier provinces contribute and what they receive from the federal  government Fiscal Federalism: Structure Constitutional Powers Exclusive fields of jurisdiction Both levels of government have broad taxation powers Federal spending power Tax Structures Types of taxes: direct, indirect, consumption, resources Decentralization: 1950 fed govt. 65% of total taxes, 2005 44% ‘tax room’ Intergovernmental Transfers Intergovernmental Relations Fiscal federalism an inherently political process Accountability Federal Transfers to Provinces From shared­cost to block funding programs Currently, four main types: 1. Canada health transfer Funding for health care services according to Canadian health act Largest component of federal transfers Basically unconditional block funding In 2013­2014, 30.2 billion Transferred on equal per capita basis 2. Canada social transfer Funding for post secondary education and social services 2013­2014, 12.2 billion unconditional block funding equal per capita basis 3. Equalization Entrenched in Constitution Act, 1982 Unconditional transfer of funds to provinces to ensure reasonable comparable level of public services at  reasonable levels of taxation. 16.1 billion in 2013­2014 Determination of equalization payments to difference between a provinces “fiscal capacity” and national  average. Based only on revenues, not expenditures Leads to ‘have’ and ‘have­not’ provinces 4. Territorial Financing Formula Same goals as equalization Takes into account fiscal capacity and estimates of expenditures 3.3 billion in 2013­2014 Centralization An increase in the power of the central government via­a­vis provincial or state governments Decentralization An increase in the power of provincial or state governments vi­avis the central government. Some Key Federal Responsibilities Defense and foreign affairs Unemployment insurance Criminal
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