Australian Federalism Confronts Globalisation: A New Challenge at the Centenary

Globalisation poses a special challenge for federal systems of government. Despite administrative reforms, Australia has not fully confronted crucial questions regarding the role of states and territories when international issues overlap areas of subnational government authority. This challenge emerged with controversies over environmental regulations, import quarantines and Aboriginal policies. Initial reforms focused mainly on treaty approval processes, leaving broader policy questions largely unexamined. Subnational governments sometimes react protectively when facing dislocation threats from global forces; conversely, they can carry out constituency representation and education functions in ways that promote Australia's competitiveness and counter public distrust of globalisation. Federalism's new challenge is to devise political processes that foster positive state and territorial participation in Australia's response to globalisation.