Canadian Politics: Federalism: Theory and Practice

T/F: federalism does not equal federal system

True: theory vs. practice

Define a unitary system:

a formal institutional hierarchy where the central government (capital) is the only legitimate source of political authority in the country

Define a federal system:

at least two orders of government, two legitimate sources of political authority

written constitution with formal division of jurisdiction, and impartial arbiter

What are the two features of a federal system?

Institutional non-subordination + partnership

Who was the father of modern federalism?

Johannes Althusius - wrote Politica Methodice Digesta (1603) -proposes federalist organization of society

Peace of Auburg (1555) “whose realm, their religion” encouraged religious toleration and choice - coexistence of Lutheranism and Catholicism in Germany,

first step towards religious/cultural homogeneization sovereign, nation states

Who popularized Athusius’ theory in the second half of the 18th century?

Otto Von Gierke

Althusius’ theory states that politics =

“the art of association” (religious) minorities need some kind of protection from the majority, should be able to self govern

The concept of subsidiary refers to the principle which in any given political organization… :

the central political authority should only be in charge of those matters which cannot be adequately performed at a more local/regional level.

T/F? Theory of federalism/ the subsidiary believes that local authorities have better understanding of the needs and impacts of specific policies/ decisions on communities

True. Therefore they are better suited to imagine and implement decisions that only concerns these.

Pierre-Joseph Proudhon wrote?

Du principe federatif in 1863

Proudhon, am anarchist-socialist, had conceptual innovations of socialism he argues 4 things that resulted in

Federations (feodus) as a covenant, a “pact”

What is Proudhon’s main argument?

That political hierarchies (unitary systems) are the condition of primitive society, and mature societies are founded on federalism

What are Proudhon’s 3 conceptual innovations?

1) that the state should be seen as a political association” (not as a hierarchical (unitary) organization)

2) The state as a “contract” between various partners

3) Partners must be “equal in status” for this to be a fair relationship → “non-subordination”

The ideas of Althusius and Von Gierke is __ federalism

classical

Therefore classical federalism’s main principles are

-orders (not levels) of government (partners) are euqal in principle: the logic of non subordination

-a formal division of powers (in a Constitution) which cannot be altered without the consent of parties

+meaningful autonomy (fiscal resources) more power Sy

What are the 2 institutional designs of federalism?

Symmetrical and asymmetrical

Symmetrical conception of federalism:

all federated entities must be treated exactly the same, no matter how different they may be- a one size fits all conception

-fairness= strict equal treatment between the partners

Asymmetrical conception of federalism:

all federated entities should not be treated exactly the same… must take into account their respective specificities

“One size fits all” in an asymmetrical conception of federalism leads to? fairness=?

unfair treatment of some partners + is not efficient from an institutional perspective; fairness = equity not equality

In an asymmetrical conception of federalism, federated entities are

“laboratories” for policy innovation

A decentralized concept of federalism…

follows the principle of the subsidiary: (argument to maintain power in regional authorities): most powers should be given to the provinces (or substate entities)

A centralized concept of federalism believes…

most powers should be given to central authority

Centralized and decentralized, vs administrative deconcentration / political devolution:

all powers to the central authority.. which accepts to delegate parts of it to substate entities

An example of decentralization:

Ottawa - provinces

An example of devolution in Canada:

Ottawa → the territories; provinces → municipalities

T/F Canada is highly decentralized

True - also slightly asymmetric

James Mallory wrote x which is an analytical framework that syasy the evolution of federalism in Canada is dependent on larger sociopolitical contexts in which it takes place; in a nutshell:

The Five Faces of Federalism; context and history matter, Canada went from a highly centralized federal system to a highly decentralized one

the first (1867-1896) conception of federalism in Canada was

Quasi Federalism

Describe Quasi Federalism (1867-1896): Macdonald saw Province and Federal relationship as

•John A MacDonald rejected the logic of institutional non-subordination wanted subordination (looked at US, civil war, didnt want to decentralize)

-London/Colonies (British Empire)

Quasi Federalism had the idea of; was dubbed

Junior vs senior governments → institutional dynamics of non-subordination; dubbed “colonial federalism” due to this perception that provincial politics are non-subordinated (junior) than federal politics (senior).

Sections 55+56 + 90 CA 1867 had?

Disallowance and Reserve Powers

Describe disallowance and reserve powers

within 2 years, the GG and LT. Gov, had the constitutional power to disallow (reject altogether) and reserve (pause) bills.. ie. not giving Royal Assent

When was the Lt. Govs last use of the disallowance power? the reserve power?

disallowance power: 1945

reserve power: 1961

T/F reserve and disallowance powers are spent.. can no longer be used

True- if used today, a colonial imposition

In between 1867-1896 …

business as usual: colonial federalism (lieutenant governors and governor generals exercises their disallowance and reserve powers)

T/F? Quasi Federalism (1867-1896) was a highly centralized and symmetrical system

True

The second conception of federalism in Canada was? dates?

Classical federalism; 1896-1914

Features of Classical federalism in Canada?

-a shift of power: MacDonald → Laurier = better relationship with Ontario and Quebec -pacific scandal led to downfall of MacDonald, Laurier would treat the provinces as real partners, growing anger with central government due to execution of Riel, Laurier took over thus better relationship

•The importance of the Court (PCPC) - doctrine of Peace, Order and Good Government (centralization, power with feds) vs Doctrine of Exclusive jurisdictions in "watertight compartments"

Judiciary Committee of the Privy Council Maritime Bank case of 1892 led to?

→ “non-subordination”

“It is dear, therefore, that the provincial legislature of New Brunswick does not occupy the subordinate position which was
ascribed to it in the argument of the appellants [the central state]. It derives no authority from the Government of Canada, and
its status is in no way analogous to that of a municipal institution, which is an authority constituted for purposes of
local administration. It possesses powers, not of administration merely, but of legislation, in the strictest sense of that
word; and, within the limits assigned by section 92 of the Act of 1867, these powers are exclusive and supreme”

Classical federalism in Canada was?

Decentralization +++
Symmetry++

What is the 3rd conception of Federalism in Canada? Occurred when?

Emergency Federalism'; 1914-1960

T/F? in this era, the balance of power swung back towards the federal government

true - power and resources to face the wars + economic crisis

T/F? in times of crisis (emergency federalism + centralization) is what we expect from federal systems

True

T/F no asymmetry was possible with emergency federalism

True

Watertight compartments?

• Power between feds and provinces are in watertight compartments - meaning they are divided so either one has the power or it does not

• Lead to decentralization

Why centralization during emergency federalism? name the 3 factors. Led to?

Pragmatism (reflex inherited from Britain’s parliamentarism -no formal constitution or division of power between 2 orders of government), will better serve the Canadian national community (wars, welfare state, nation-building dynamics), will be more efficient in terms of governance

how can we better serve the Canadian national community? Led to national building dynamic - to better serve the will of the community

*before 1931, Canada did not have an international personality

Robert Bennett’s new deal echoed what? what did it do?

FD Roosevelt; to ask what Canada can do for you rather than what others can do for Canada - to build a sense of belonging

The Royal Commission on Dominion-Provincial Relations (1937-40) argued for?

recommended to scrap formal division of powers in favor of flexible approach - central gov should have power in terms of bettering life for Canadians, argued for centralized

coincided with the war

What is the 4th conception of federalism in Canada? when did it occur? AKA

Cooperative federalism; 1960-1995; Interdependence federalism

Summarize Quasi federalism:

reserve powers, two powers are not non-subordinated, junior vs senior governments , replicated relationship London had with the colonies

Summarize classical federalism

watertight compartments = no overlap possible, list of powers (shared powers are exceptions) closest we get to federalism in this period

Summarize emergency federalism

federal government took role, rise of welfare state - Canadian state wanted to appear as guardian of its own citizens, - can independence 1931, Canadian identity emerges, centralization dynamics during this war period - pragmatic

T/F Cooperative federalism was a sort of forced cooperation, more than cooperative, no more watertight compartments, one body has more money

True

Describe the main aspects of cooperative federalism

saw the expansion of the welfare state (more services demanded from the gov, Keynesianism)

because of federalism federal-provincial cooperation was required on many levels (most of money is in hands of the feds, as well as policy)

Describe what led to federal transfers

Provinces had no money… but were in charge of implementing many aspects of the welfare system, and the Feds had a lot of money… not in charge…

Two possible institutional paths: decentralization of the overall tax system… or federal transfers

What are the 2 types of federal transfers (name them)

Conditional and unconditional (equalization payments)

Describe conditional federal transfers; what is it called; what era of Canadian federalism did they occur

A symmetrical dynamic where the feds sends a cheque to the provinces, but these must enforce certain conditions to receive the money; that is called spending power; Cooperative federalism

Describe spending power

the authority for the federal parliament to spend its money for purposes for which it is not competent

What is an example of a conditional federal transfer?

The Canada health transfer - 5 conditions Universality, Comprehensiveness, portability, accessibility, public admin

T/F you can opt out of conditional federal transfers with compensation

True - some minor forms of asymmetry

CA, 1982 section 36, on equalization payments says its committed to?

1a) promoting equal opportunities for the well-being of Canadians

b) furthering economic development to reduce disparity in opportunities and

c) providing essential public services of reasonable quality to all Canadians

CA, 1982 section 36, on equalization payments says its committed to? (2)

(2) Parliament and the government of Canada are committed to the principle of making equalization payments to ensure that provincial governments have sufficient revenues to provide reasonably comparable levels of public services at reasonably comparable levels of taxation.

T/F the method of equalization payments are political

True - the program allocates payments to specific provinces when their fiscal capacity* falls below a certain national average. Provinces that are above this national average do not receive any equalization payments

What is fiscal capacity?

A provinces capacity to raise revenues… (depends on) population size, resources, businesses

Who contributes to the equalization payments

individuals and businesses, not the provinces per se

T/F, the equalization payments have nothing to do with some provinces having more social programs than others

True

Who receives the lions share of equalization payments?

Quebec pro rata, PEI, and Manitoba

What is the 5th conception of federalism in Canada? When did it occur

Collaborative and Open federalism; 1995-

T/F - provinces can decide how to distribute equalization payments

True

Why doesnt Alberta like equalization payments

because its calculated based on fiscal capacity, and theirs is always fluctuating due to oil industry

Describe the aspects of Collaborative federalism

• “opt-out with compensation” became more common - less cooperation, more collaboration

• All provinces developed agencies to work on intergovernmental relations(specifically to maximize provincial autonomy when negotiating with Ottawa) (Wab Kinew in charge of this) this reinforced:

• Regionalism... end of “pan-Canadian vision”

• The creation of new institutions such as the Council of the Federation (2003)

What is the council of federation

• An institution created to develop a forum where leaders of provinces and territories can develop a united front and go to Ottawa and negotiateDid not replace senate, Para constitutional, replication of body in German politics

• Today doesn’t live up to expectations, non-constitutional, therefore marginal, formal institutions win, bi-lateral agreements with provinces to bypass united front

• Did not replace senate, Para constitutional, replication of body in German politics

What did Harper’s open federalism do

1. Put an end to a severe fiscal imbalance between governments’ revenues and fields of jurisdiction and augment provincial accountability

2. Respect exclusive provincial jurisdictions;

3. Limit Ottawa’s spending power in areas of exclusive provincial jurisdictions (cf. JCPC… watertight compartments);

4. Recognize a role for Quebec within international forums starting with a Quebec presence within the Canadian delegation at UNESCO

Harper came from x .. which favoured Western asymmetry

Calgary school of thought

1,2,3 of open federalism =

meaningful autonomy (real decentralization)

4 of open federalism =

Asymmetry (for Quebec, which helped conservatives get seats)