| Abstract: | This article investigates Australia's economic success since the 1990s. As this was set in motion by fundamental political reforms, it asks to what extent Australian‐type federalism has been an important factor in the reform process. By using two approaches ‐ the market‐preserving federalism approach of Weingast, which stresses the virtues of ‘limited government’, decentralisation and competition together with the intergovernmental coordination approach of Scharpf which argues for a ‘problem‐solving’ orientation of territorial actors ‐, the structure of Australian federalism, changes in the working of the federal system in the 1990s, and effects on policy‐making are scrutinised. The article demonstrates that a particular combination of a rather centralised federal structure and a particular type of intergovernmental coordination, i.e. collaboration, supplemented by the strong influence of new public management ideas, has been conducive to political reforms in Australia. This suggests that a decentralised and competitive version of federalism, as defended by Weingast, is not a necessary condition for embarking on a successful reform path in federal countries. In future research, both approaches or analytical dimensions should be used in order to better understand the relationship of intergovernmental relations and policy reforms. |
