INTRODUCTION TO CANADA AND CANADIAN FEDERALISM

Some Basic Features of Canadian Federalism

Origins and Historical Evolution of Canada

Constitutional Structure

Division of Powers Between Ottawa and the Provinces

Major Trends and Events

Conclusion

Some basic features

• One of world’s oldest, most successful federations• A federal state underpinned by a ‘federal society’

and a federal economy• One of the world’s most decentralized federations• Federal-provincial relationship is one of equality

and partnership, not hierarchy, paternalism• A ‘negotiated country’• A multinational country

ORIGINS AND HISTORICAL EVOLUTION OF CANADA/1

First encounters:• Aboriginals and Europeans • French and English: accommodating difference from

the beginningConfederation – 1867• Coming together – the British North American

colonies for economic and political security• Coming apart – accommodating French-English

differenceDevelopment – Canada extended from sea to sea to

sea, completed 1949

Contemporary Canada

• A vast country• 10 provinces; three territories.• Large variations in population, size,

economic base, incomes, population makeup• A diverse country: key dimensions --

language, region, Aboriginal peoples; multiculturalism

• A liberal state that blends market economy and social democracy. High rating on UN Human development Index

CONSTITUTIONAL STRUCTURE

Two Key Constitutional Documents

Constitution Act, 1867: establishes a federal and parliamentary system. Canada remains a British country --- independence comes step by step, not from revolution, as US

Constitution Act, 1982: The Charter of Rights and Freedoms; amendment formula, patriation (Constitution no longer a British law)

Continuing constitutional debate

Constitutional Principles: as stated by Supreme Court of Canada, 1998: democracy, constitutionalism and rule of law; federalism; respect for minorities. Deeply ingrained in elite and popular culture

DIVISION OF POWERS BETWEEN OTTAWA AND THE PROVINCES

“Peace, Order and Good Government” a federal responsibility – suggests potential sweeping power for center, but

Sections 91 and 92 of the 1867 Constitution set out federal and provincial powers in detail. POGG becomes an emergency power not a general power

‘Watertight compartments’’ – only two areas of concurrent powers

Reality in 2008 – many more areas of concurrency as government has moved into new areas (environment, communications, etc.), or areas once of little concern to government become more important (education, health care)

Logic of Division of powers

Ottawa: foreign affairs and defense; nation-building; the economic union (trade and commerce, banking, etc.). Basic responsibility for social security – old age pensions, unemployment. Criminal law

Provinces: mainly social and cultural matters; education, welfare, health care; infra-structure; much economic regulation, promotion of economic development

But no clear distinctions

Constitutional amendment

• Until 1982, Canada must ask UK to amend constitution.

• 1982 Constitution establishes a Canadian amending formula.

• Most changes require support of federal parliament plus legislatures of 7 provinces with total 50 per cent of population; some require unanimity

• Makes amendment very difficult• No popular ratification

Fiscal Federalism• Provincial proportion of total government revenue and

spending highest in world• Trend since 1950s – greater provincial role• Federal government and provinces have virtually identical

powers to impose taxes, borrow• Intergovernmental transfers – important, but smaller than in

most federations; fewer conditions than in most federations• ‘Equalization’ – a central part of the Confederation bargain• High degree of coordination in fiscal policy• But current debate over vertical and horizontal fiscal

imbalance• Federal ‘spending power,’ allows it to use its resources to

influence provincial priorities. Controversial, but vital element of flexibility

Role of Courts

• Unified judicial system, federally appointed.

• To 1949, Canada’s highest court in UK

• UK courts radically re-interpreted Constitution to weaken federal powers, strengthen provinces.

• Since 1949, Supreme Court has sought to balance federal and provincial powers, and played crucial role in constitutional wars

Change over time

• Original division of powers gives wide powers for center to dominate provinces – e.g. disallowance and reservation. Canada in 1867 only ‘quasi-federal.’’

• Provinces resist federal power; courts re-interpret constitution to limit federal power

• 1930s depression, World War II, and postwar construction of the welfare state shift power back to Ottawa

• From 1960s rise of Quebec nationalism, completion of welfare state, and growing importance of areas under provincial jurisdiction all shift power again

• Today almost all constitutional jurisdictions are shared and concurrent

Intergovernmental Relations• Complex mix of cooperation and competition• An informal process: institutions and procedures not set out in

law or constitution• Intergovernmental agreements set out shared priorities and

clarify roles and responsibilities, but have no legal status• Two elements: ‘FPT’ (all three); ‘PT’ (provinces and territories

cooperating)• First Ministers, Ministers, and officials meetings and councils• Important successes in coordinating policy, but worrying

emphasis on turf protection, credit claiming, blame-shifting and buck-passing

• Worry about the democratic deficit decision-making behind closed doors, little public participation, lack of accountability

Other elements in political system affecting federalism

• An electoral system that rewards small, regional parties• Result: a regionalized party system; today no truly national

party• Power concentrated in PM and cabinet: minority regions may

feel frozen out• A Senate that fails to represent provinces• These weaknesses at the center are a major reason for

strength of provinces• ‘Separated’ federal and provincial political systems: little

mobility of officials and politicians; helps explain competitive relationship.

• An independent Supreme Court that often plays an important balancing role

The Quebec Debate

• Quebec as homeland of French-speaking Canadians

• Historically argued for provincial power and resisted federal power

• Modernizing revolution in 1960 leads to growth of Quebec nationalism – masters in our own house.

• Three competing strategies

Quebec options/1

• National bilingualism: Strong Quebec representation in government; minority language services across country; focus on individual rights, Canada-wide values

• ‘’Renewed federalism’’ – recognition of special role of Quebec; asymmetry; language laws to protect French language

• Independence, secession: usually linked to ‘’association’’ or ‘’partnership’’

Quebec/3

• Sovereignist PQ elected 1976, alternates in government since.

• Referendums, 1980, 1995 (federalism wins by only 44,000 votes.

• 1998 Supreme Court decision: Quebec has no right under Canadian or international law, but if Quebec votes clearly for secession, then rest of Canada has duty to negotiate

• Recent developments: Clarity Act; Parliament agrees Quebec is a ‘nation’; new government calls for ‘’open federalism,’ responsive to Quebec concerns

• Most Quebecers have dual identity – Quebecer and Canadian

Quebec/4

• Quebec sense of nationhood remains• But drive for independence has weakened• ‘Post-national’ new world allows for

greater flexibility in relation between state and nation

• Canadian achievement: a debate about very existence of the country conducted peacefully and democratically on both sides

Province-building elsewhere

• Other provinces emulate Quebec search for more power

• See selves as responsible for broad economic and social development, including a greater international role; resist federal ‘intrusions.’

• Extensive provincial innovation, examples: Saskatchewan (public health care); Quebec (child care); B.C. (carbon tax)

Current Issues/1

Quebec: remains central to almost all Canadian debate; lower on the agenda today

Oil and gas:– Concentrated in Alberta – Provinces own natural resources, gain greatest

benefits from royalties, employment, etc. Ottawa has limited powers – corporate taxation, exports.

– Result: rapid growth of Alberta revenues, increases disparities; strains equalization system; threatens manufacturing because of rise of dollar

– Earlier federal intervention (1970s) creates political crisis. Caution today.

Current issues/2

• Aboriginal peoples’ search for justice• Is federalism a template for them: self-

government for First Nations?• Challenges of size, capacities• Multiculturalism: all levels have

responsibility to integrate new Canadians, but main solutions lie outside federalism

• Enhancing transparency, accountability, effectiveness of IGR

CONCLUSION

Began as a “Quasi-Federation”: Now Is a Genuine Federation

Began as a Highly Centralized Federation: Now Is a Highly Decentralized Federation

Division of Powers - Began With a System of Watertight Compartments: Now Powers and Responsibilities of Each Order of Government Collide; Entanglement and Competition

The Federal Government Had a Paternalistic, Oversight Role at the Beginning: Now Provinces Are Autonomous and Two Orders of Government Are Equally Sovereign in Their Spheres of Jurisdiction

Canada Had in 1867 and Still Has Today a Federal System Dominated by the Executive at Both Levels

Quebec’s Status in the Federation Remains Formally Unresolved, But Life Goes On