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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
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 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
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; nationbuilding; 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; infrastructure; 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: selfgovernment 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