Federalism in a Changing World

Federalism in a Changing World contains the scientific background papers, proceedings, and plenary speeches presented at the International Conference on Federalism 2002 held in St Gallen, Switzerland, in August 2002. The three principal topics of the conference were federalism and foreign relations; federalism, decentralization and conflict management in multicultural societies; and assignment of responsibilities and fiscal federalism. The volume comprises texts by more than seventy authors from twenty countries throughout the world. Contributors include Dauda Abubakar (University of Maiduguri, Nigeria), José Roberto Afonso (Brazilian Bank of Development, Brazil), Giuliano Amato (vice-president of the European Convention, Italy), Nicholas Aroney (University of Queensland, St Lucia, Australia), Lidija Basta-Fleiner (University of Fribourg, Switzerland), Richard Bird (University of Toronto, Canada), Raoul Blindenbacher (executive director, International Conference on Federalism 2002, Switzerland), Jean Chrétien (prime minister of Canada), Richard Crook (University of Sussex, UK), Bernard Dafflon (University of Fribourg, Switzerland), Joseph Deiss (head of the Federal Department of Foreign Affairs, Switzerland), Udo Diedrichs (University of Cologne, Germany), Bernhard Ehrenzeller Bernhard (University of St. Gallen, Switzerland), Lars Feld (University of Marburg, Germany), George Fernandes (minister of Defence of the Republic of India), Sergio Ferreira (Brazilian Bank of Development, Brazil), Thomas Fleiner (University of Fribourg, Switzerland), Xóchitl Gálvez (Presidential Office for Indigenous People, United Mexican States), Beat Habegger (University of St Gallen, Switzerland), Nicholas R.L. Haysom (Wits University and former legal advisor to the President, South Africa), William John Hopkins (University of Hull, UK), Rudolf Hrbek (University of Tübingen, Germany), Thomas O. Hueglin (Wilfrid Laurier University, Waterloo, Canada), Claude Jeanrenaud (University of Neuchatel, Switzerland), Isabelle Joumard (Economics Department of the OECD, France), Wlater Kälin (University of Berne, Switzerland), Jakob Kellenberger (former secretary of state of the Federal Department of Foreign Affairs, Switzerland), Michael J. Kelly (Military Law Centre Department of Defence of Australia, Australia), Rahmatullah Kahn (Raoul Wallenberg Institute, Lund, Sweden/India), John Kincaid (Lafayette College, USA), Gebhard Kirchgässner (University of St Gallen, Switzerland), Arnold Koller (former president of the Swiss Confederation), Vojislav Kostunica (president of the Federal Republic of Yugoslavia), Yves Lejeune (Catholic University of Louvain, Belgium), Wolf Linder (University of Berne, Switzerland), Giorgio Malinverni (University of Geneva, Switzerland), Tim McCormack (University of Melbourne, Australia), Ruth Metzler-Arnold (Federal Department of Justice and Police, Switzerland), Flora Musonda (Economic and Social Research Foundation, Tanzania), Radmila Nakarada (Institute of European Studies, Belgrade, Yugoslavia), Wallace Oates (University of Maryland, College Park, USA), Luigi Pedrazzini (Conference of Cantonal Governments, Switzerland), Martin Polaschek (University of Graz, Austria), Bob Rae (Forum of Federations, Canada), Johannes Rau (President of the Federal Republic of Germany), Ash Narain Roy (Institute of Social Sciences, New Delhi, India), Nafis Sadik (special advisor to the United Nations Secretary General and former UNFPA executive director, Pakistan), Cheryl Saunders (University of Melbourne, Australia), Antonin Scalia (associate justice of the Supreme Court of the United States of America), Benjamin Schindler (Federal Office of Justice, Switzerland), Nicolas Schmitt (University of Fribourg, Switzerland), Wolfgang Schüssel (chancellor of the Republic of Austria), Anwar Shah (lead economist of the World Bank, USA/ Pakistan), Daniel Thürer (University of Zürich, Switzerland), Touré Toumani (president of the Republic of Mali), François Vai

Preface

xiii

PART A INTRODUCTION

1

(50)

Welcome Note

3

(4)

Arnold Koller

Federalism in a Changing World -- A Conceptual Framework for the Conference

7

(19)

Raoul Blindenbacher

Ronald L. Watts

Federalism and Foreign Relations

26

(7)

Daniel Thurer

Federalism, Decentralisation and Conflict Management in Multicultural Societies

33

(6)

Cheryl Saunders

Assignment of Responsibilities and Fiscal Federalism

39

(12)

Wallace E. Oates

PART B THEME I

51

(144)

Scientific Background: Theme Paper

Federalism and Foreign Relations

53

(21)

Bernhard Ehrenzeller

Rudolf Hrbek

Giorgio Malinverni

Daniel Thurer

Scientific Background: Subtheme Papers

Foreign Relations of Sub-national Units

74

(23)

John Kincaid

Participation of Sub-national Units in the Foreign Policy of the Federation

97

(18)

Yves Lejeune

Implementation of International and Supra-national Law by Sub-national Units

115

(15)

Rahmatullah Khan

Federal Structures and Foreign Policy of International and Supra-national Organisations

130

(19)

Udo Diedrichs

Wolfgang Wessels

Work Session Proceedings: Reports

Foreign Relations of Sub-national Units (Work Sessions 1 and 13)

149

(10)

William John Hopkins

Participation of Sub-national Units in the Foreign Policy of the Federation (Work Sessions 2 and 14)

159

(10)

Beat Habegger

Implementation of International and Supra-national Law by Sub-national Units (Work Sessions 3 and 15)

169

(10)

Martin F. Polaschek

Federal Structures and Foreign Policy of International and Supra-national Organisations (Work Sessions 4 and 16)

179

(10)

Benjamin Schindler

Dialogue Table Proceedings: Summary Address

Federalism and Foreign Relations (Dialogue Tables 1 and 4)

189

(6)

Jakob Kellenberger

PART C THEME II

195

(154)

Scientific Background: Theme Paper

Federalism, Decentralisation and Conflict Management in Multicultural Societies

197

(19)

Thomas Fleiner

Walter Kalin

Wolf Linder

Cheryl Saunders

Scientific Background: Subtheme Papers

Constitution Making and Nation Building

216

(24)

Nicholas R.L. Haysom

Decentralisation and Good Governance

240

(20)

Richard Charles Crook

Communities -- Civil Society and Conflict Management

260

(18)

Radmila Nakarada

International and Regional Action with regard to Conflicts in Multicultural Societies

278

(30)

Michael J. Kelly

Timothy L.H. McCormack

Work Session Proceedings: Reports

Constitution Making and Nation Building (Work Sessions 5 and 17)

308

(7)

Lidija R. Basta Fleiner

Decentralisation and Good Governance (Work Sessions 6 and 18)

315

(10)

Thomas O. Hueglin

Communities -- Civil Society and Conflict Management (Work Sessions 7 and 19)

325

(12)

Ash Narain Roy

International and Regional Action with regard to Conflicts in Multicultural Societies (Work Sessions 8 and 20)

337

(5)

Dauda Abubakar

Dialogue Table Proceedings: Summary Address

Federalism, Decentralisation and Conflict Management in Multicultural Societies (Dialogue Tables 2 and 5)

342

(7)

Nafis Sadik

PART D THEME III

349

(168)

Scientific Background: Theme Paper

Assignment of Responsibilities and Fiscal Federalism

351

(22)

Richard Bird

Bernard Dafflon

Claude Jeanrenaud

Gebhard Kirchgassner

Scientific Background: Subtheme Papers

Fiscal Federalism and Political Decision Structures

373

(22)

Jurgen von Hagen

Problems of Equalisation in Federal Systems

395

(17)

Bernard Dafflon

Francois Vaillancourt

Fiscal Competition

412

(20)

Jose Roberto Afonso

Sergio Guimaraes Ferreira

Ricardo Varsano

Fiscal Decentralisation in Transition Economies and Developing Countries

432

(29)

Anwar Shah

Work Session Proceedings: Reports

Fiscal Federalism and Political Decision Structures (Work Sessions 9 and 21)

461

(10)

Lars P. Feld

Problems of Equalisation in Federal Systems -- The Concept of Equalisation (Work Session 10)

471

(10)

Isabelle Joumard

Problems of Equalisation in Federal Systems -- Revenue Equalisation versus Cost Equalisation (Work Session 22)

481

(11)

Nicolas Schmitt

Fiscal Competition (Work Sessions 11 and 23)

492

(10)

Nicholas Aroney

Fiscal Decentralisation in Transition Economies and Developing Countries (Work Sessions 12 and 24)

502

(11)

Flora Musonda

Dialogue Table Proceedings: Summary Address

Assignment of Responsibilities and Fiscal Federalism (Dialogue Tables 3 and 6)

513

(4)

Bob Rae

PART E PLENARY SPEECHES

517

(80)

President of the Swiss Confederation, Head of the Federal Department of Finance, Switzerland

519

(5)

Kaspar Villiger

President of the Federal Republic of Germany

524

(10)

Johannes Rau

Federal Councillor, Head of the Federal Department of Foreign Affairs, Switzerland

534

(5)

Joseph Deiss

Associate Justice, Supreme Court of the United States of America

539

(10)

Antonin Scalia

Head of the Presidential Office for Indigenous People, United Mexican States

549

(6)

Xochitl Galvez

President of the Republic of Mali

555

(4)

Amadou Toumani Toure

President of the Federal Republic of Yugoslavia

559

(8)

Vojislav Kostunica

Federal Chancellor of the Republic of Austria

567

(5)

Wolfgang Schussel

Prime Minister of the Kingdom of Belgium

572

(5)

Guy Verhofstadt

Vice-President of the European Convention, Italy

577

(5)

Giuliano Amato

Minister of Defence of the Republic of India

582

(5)

George Fernandes

Federal Councillor, Head of the Federal Department of Justice and Police, Switzerland

587

(5)

Ruth Metzler-Arnold

Prime Minister of Canada

592

(5)

Jean Chretien

Authors

597

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