International Experiences of Federalism

1. International Experiences of Federalism Azhar Saeed Malik – Assistant Country Director UNDP

2. Overview of Federalism • 28 countries, home to 40% of world population • Almost all large democracies are federal • Argentina, Brazil and Mexico becoming increasingly Federal • Former unitary states Belgium, Ethiopia have become Federal • It has been adopted in post conflict countries Congo, Iraq, Sudan and South Africa

3. Federalism Variety • Internal Institutional arrangements vary greatly • From 2 to more than 80 constituent units – states, provinces, Lander and cantons • Some very centralized, others decentralized with extensive autonomy • Some have very clear division of power, while other have overlapping powers • No one model fits all but the prime objective is of shared and self rule • Of accommodating diverse people in a single country • Two constitutionally established orders of government each accountable to their electorate

4. Federalism its Evolution • In confederal systems – the federal government is creation of constituent Units • Whereas in Unitary Systems regional government are legal creations of federal government • First wave was the US, Switzerland and Canada • Second wave in Latin America – Brazil, Argentina and Mexico • Third wave post colonial federations • Fourth wave federations emerging from collapse of communism • EU is a unique political institution perhaps more confederal than federal

5. Federalism its Evolution • All federations evolve over time • Some undertake major constitutional changes others have done amendments ----- US only 27 amendments, India 94 ------ Brazil had 7 constitutions, Mexico 6 -------Some had unconstitutional breaks • New constituent units, urbanization, economic shifts, new technologies, global and domestic political development, experience of democracy ----- evolved federations • There are successes but also failures in the form of break up or secession

6. Patterns in Distribution of Power • Great variation in approaches, there is no simple formula • Each country has its own debates ---- decisions are based on shared objectives • Can also have asymmetrical distribution of powers • Currency, defense, treat ratification, external trade, interstate trade, major infrastructure, custom – usually federal • Primary / secondary education, health care, municipal affairs, agriculture - usually CU • Court system, police, taxes, income securities – joint or concurrent • Mineral resources, criminal law, post secondary – no clear pattern

7. Inter Governmental Relations • Interdependence and interaction is at the heart of federation political life • Because federally legislated programs, concurrency, joint responsibility, conditional financing • Different levels of coordination, consultation and cooperation – formal, informal and adhoc • It can be lead by executive or legislature • Upper houses in legislatures play an important role – directly or indirectly elected? • Office of intergovernmental relations, Finance ministers forum for fiscal federalism, other ministers • Coercive and consultative relations • Context of politics and issues in which they operate

8. Lessons for Pakistan • A democratic process is central for federalism to prosper • Its an ever evolving process that addresses the hanging needs of time • There are challenges of Unit – embracing diversity, building out (devolution), building in • It addresses the imbalances between regions, ethnicities and rights of minorities • There are no quick fix solution but continuous dialogue and debate is important • Inter Governmental relations are an important part of the process