INTRODUCTION TO CANADA AND CANADIAN FEDERALISM

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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

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Some basic features

• One of worlds oldest, most successful
  federations
• A federal state underpinned by a federal
  society and a federal economy
• One of the worlds most decentralized federations
• Federal-provincial relationship is one of
  equality and partnership, not hierarchy,
  paternalism
• A negotiated country
• A multinational country

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ORIGINS AND HISTORICAL EVOLUTION OF CANADA/1

• First encounters
• Aboriginals and Europeans
• French and English accommodating difference from
  the beginning
• Confederation 1867
• Coming together the British North American
  colonies for economic and political security
• Coming apart accommodating French-English
  difference
• Development Canada extended from sea to sea to
  sea, completed 1949

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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

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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

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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)

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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

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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

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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

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Role of Courts

• Unified judicial system, federally appointed.
• To 1949, Canadas 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

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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

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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

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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

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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

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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

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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

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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

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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)

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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.

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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

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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
• Quebecs Status in the Federation Remains
  Formally Unresolved, But Life Goes On