Public Opinion on Federalism in the United States and Canada in 2002: The Aftermath of Terrorism

This research reports on a public-opinion survey on intergovernmentaland border issues in Canada and the United States conductedin mid-April 2002. In the United States, there was an upsurgein public support for the federal government in 2002 over 2001,and a slight decline in public evaluations of state and localgovernments. Increased support for the federal government wasespecially notable among whites, Republicans, and respondentswith post-undergraduate education-groups that previously registeredlow support for the federal government. Canadians reported lesssatisfaction with all governments in their federal system, lowersupport for their federal government, and much more regionaland partisan division over intergovernmental issues. On internationalborder issues, Americans and Canadians generally agreed thata common border-security policy would be a good idea, thoughCanadians were slightly more likely than Americans to preferease of cross-border trade over improved border security.     

Public Opinion on Federalism in Canada, Mexico, and the United States in 2003

This research reports on public opinion surveys on intergovernmentaland federal issues conducted in Canada, Mexico, and the UnitedStates in March and April 2003. In all three countries, respondentsmost often see their federal government as being the least effective,least efficient, and least trustworthy. Respondents from Canadaappear least supportive of their federal government and mostsupportive of their local governments; those from Mexico appearmost supportive of their state governments; respondents fromthe United States appear more "balanced" in their support ofthe various orders of government. Also, far greater regionaldifferences in opinion exist in Canada than in Mexico or theUnited States. Support for more decentralized federalism isfound to be strong in all these federal countries. This researchalso updates long-term trend data for the United States. Comparedwith respondents from previous years, U.S. respondents in 2003showed a measurable uplick in support for the federal government,compared with state and local governments. This support seemsto be a carryover from the terrorist attacks of 11 September2001.     

Enduring neoliberalism in Alberta's oil sands: the troubling effects of private–public partnerships for First Nation and Métis communities

Changes in federal government relations with First Nations and Métis in Canada have been described as shifting over time, from fur trade colonialism, to welfare colonialism, to neoliberal partnerships. Acknowledging changes and continuities in Aboriginal peoples–state relations over time, this article examines the effects of recent policies that emphasize private–public partnerships for economic development on Indigenous communities in northern Alberta. We argue that while the term ‘partnership’ connotes equality, cooperation, and consensus, the actual workings of partnerships are anything but equal, and the effects include fragmentation, competition, and lack of overall accountability. These outcomes work against the needs and aspirations of Indigenous communities.     

COMPETITIVE MARKETS AND THE PROVISION OF PUBLIC SERVICES

Abstract: There is no universal panacea to improve the efficiency of public enterprises. However there is a worldwide trend at present to place more emphasis on markets than on centrally devised planning. The ownership of public enterprises is examined and it is argued that the performance of public enterprises is related to placing them in a more competitive environment. The importance of industry structure to competition is then discussed. The next sections turn to more practical matters. The first notes the present federal reforms of public enterprises and notes some similarities with the reforms set out in British White Papers in the 1950s and 1960s; and these reforms did not work in the sense of providing greater efficiency. Finally by way of example the deregulation of the NSW egg industry is examined; and the role of the government as a shareholder is discussed in the context of Australian Airlines. The paper concludes with a short summary.     

The Struggle For Jurisdiction: Regionalism Versus Rationalism

Territory, national versus regional, has been at the basis ofclaims to power in most federations, and Canada is no exception.But regionalism has had to contend with another perspectiveon political power in Canada: economic rationalism or entrepreneurism,which views its own conduct and that of government as the maximizationof economic profit. As advocated by the federal government,most particularly under Trudeau, economic rationalism conceivedof a division of powers that is efficient, least costly, flexible,hierarchical, systematic, and rational. This pursuit of omnicompetenceand unrestricted jurisdiction has resulted in unilateral federalisminitiated by Ottawa and rejoindered by provinces. It constitutesa major challenge to cooperative relations and an abdicationby the national government of its brokerage role between theinterests of the extensive and intensive communities in Canada.     

部门利益冲突的解析与防治

当前“政府权力部门化，部门权力利益化”的现象，以部门利益冲突加大了政府机构运行的经济成本，同时加大了我国的社会和政治风险，公权力和经济利益挂钩与政府职能划分不清及其行政监督不力是其重要原因。只有建立公共财政制度和加快大部制改革同时转变政府职能，实现政、企、事相分离，开才能切断利益与权力的关系，只有加强公共行政立法和行政监督来消除本门利益冲突，才能防止政府的公共权力被具有私利的主体所分解，所以，“发展和谐服务型政府”，为社会公正提供有效保障，是以实现政府从“部门行政”向“公共行政”转变的必由之路。     

THE ROLE OF STATE ECONOMIC DEVELOPMENT PROGRAMS IN NATIONAL INDUSTRY POLICY

A decade of economic stagnation has produced a plethora of calls for government action to stimulate economic growth in employment. Arguing that activists federal industry policy is likely not to emerge in the United States, Rasmussen and Ledebur examine the potential role of states in a "federalist industry policy." States presently administer effective programs of financial assistance to business enterprises. These efforts are "rationally parochial" in that their purpose is served equally well by cresting a new job or pirating from other jurisdictions. This paper considers how state programs can be reoriented to serve national growth and development objectives as well as those of specific jurisdictions. It concludes that a subnational industry policy offers a unique opportunity to reallocate existing state resources to achieve a much higher social return.     

The Rise of Competitive Federalism

This article challenges the prevailing view of increasing political and fiscal centralization in the federal government. Since 1978, the authors argue, the nation has entered a new era of "Competitive Federalism" with federal, state and local governments locked in a competitive struggle for taxpayer resources and support. The new era has emerged largely because of the loss of the tremendous fiscal advantage held by the federal government during its centralization period, 1929 to 1978. Although "deregulated" and free to move into any area of domestic policy, the federal government is constrained by necessary budget pressures and a "reformed" income tax structure. Competitive Federalism has emerged as a new balancing force between Washington, D.C. and the fifty state-local governments and will govern the federal system for the foreseeable future.     

Privatizing Federal Credit Programs: Why Sallie Mae?

The federal government subsidizes lending to a number of borrowers—notably students, farmers, and homeowners. Government‐sponsored enterprises issue the securities that channel capital to many of these privileged borrowers. One of the largest of these enterprises, the Student Loan Marketing Association (Sallie Mae), is scheduled to be wholly privatized by September 30, 2008. What explains the privatization of this enterprise? To identify distinctive features of Sallie Mae that permitted or abetted privatization, we investigate the structure, related capital market innovations, and growth of three government‐sponsored enterprises. We conclude that a unique structural feature of Sallie Mae may explain the pace of privatization. The core asset of Sallie Mae, the student loan, is guaranteed and subsidized by the government. The case of Sallie Mae is an instructive yet poorly understood example of how the federal government can leverage private‐sector assets and incentives to achieve public policy missions.     

Intergovernmental relations on immigrant integration in Canada: Insights from Quebec,Manitoba, and Ontario

ABSTRACT

The pattern of intergovernmental relations (IGR) on immigrant integration in Canada runs counter to core arguments in the extant literature. In particular, Canada's federal structures have not produced multilateral, institutionalized, and conflictual IGR; IGR in Canada has been predominantly bilateral and only moderately institutionalized. Moreover, IGR has been conflictual at times, while collaborative at others. Several factors explain this unexpected pattern. In an attempt to ward off separatism, the central government devolved authority over immigrant selection and settlement programmes to Quebec, creating a deep asymmetry between Quebec and the Anglophone provinces (and territories) in these areas. Interprovincial competition drove other provinces to seek powers over immigration and integration. The central government – driven by fiscal pressures and a philosophical commitment to symmetry – struck bilateral agreements with Anglophone provinces to fund and devolve settlement programming and some control over the selection of economic immigrants.     

Studying the role of political competition in the evolution of government size over long horizons

Here we argue for the use of cointegration and error correction analysis to combine economic factors that are nonstationary with political factors that are stationary into an empirical model of the evolution of public policy over long periods. The approach is applied to disentangle the contributions of economics and politics to the evolution of public expenditure by the Government of Canada over 130 years. Political competition emerges as the primary political factor affecting government size.     

PUBLIC ENTERPRISE, ECONOMIC DEVELOPMENT, AND THE IMPACT OF ENVIRONMENTAL REGULATION: THE EXPERIENCE OF AMERICAN SEAPORTS ON THE PACIFIC RIM

Port authorities perceive their ideas as broadly supportive of regional economic development and are strongly associated with chambers of commerce, economic development agencies and growth oriented citizens groups. However, shifts in American foreign trade and the use of new technologies atid environmental regulation have dramatically changed the seaport industry over the last 15 years. As public enterprises, many ports responded to the new competitive markets by developing efficient but capital intensive container technologies. Environmental regulation also had a role in stimulating more efficient use of port lands. Although frequently viewed as a road block to all development plans, the intergovernmental review processes may have helped turn ports away from their traditional patterns of land expansion development and toward redevelopment of existing facilities. With the constraint of greatly reduced expansion opportunities. the enterprising ports figured out they could greatly increase cargo handling capacity without enacting the wrath of environmental quality interests. This paper examines this contention with both economic logic and inferential data.     

The convergence of fiscal regimes and the decline of the Tiebout effect

A measure of waste from the competitive rent-seeking activity of special interest groups in federal, state and local budgets was calculated over the period 1900–88. This period in U.S. fiscal history is characterized by constitutional changes that have made for more transparency in governmental fiscal activities and for greater diffusion of taxes. The XVI Amendment to the Constitution created the progressive individual income tax (the corporate income tax was judged to be an excise tax in 1909 and passed the test of constitutionality). High marginal tax rates are a justification for a high average level of taxation. The Full Employment Act of 1946 insitutionalized government deficits as a means of meeting a political objective. As a result, opportunities for rent-seeking through budgetary reallocations rose in the United States. In the first two decades of the 20th century, waste at all levels of government represented about 10 percent of incremental national output. Today, waste is three times that amount.The transparency and diffusion of taxes are highest at the federal level and least at the local level. Rent-seeking through budgetary reallocation has followed the public purse. One explanation for the observed centralization of government in the 20th century may be that opportunities to concentrate benefits and diffuse taxes are highest at the federal level.     

Public Enterprises and the Budget in Developing Countries

Public enterprises have a substantial fiscal impact in developing countries. This has led to the enterprises impinging on the budgetary process of the government while public enterprises are burdened by budget policies and macroeconomic policies. Such difficulties may necessitate the restructuring of public enterprises, either through privatization or reform to make them more competitive with the private sector.     

Fiscal Consolidation and Australia's Public Debt

Australia has experienced one of the fastest growing public debt levels in the world post‐Global Financial Crisis due to a series of large federal budget deficits driven by high government spending. In this paper we examine the balance sheet implications of this escalating public debt, before proposing some macro‐fiscal objectives for determining its sustainable level. These objectives are to (i) restore the federal government's solvency; (ii) eliminate foreign public debt; and (iii) achieve budgetary balance over the business cycle. Empirically, we first examine how much fiscal consolidation is required for debt stabilisation at current levels, before considering what sized budget balances are needed to achieve the target debt to GDP ratios consistent with the proposed objectives. The results show that no target debt to GDP level consistent with the optimal levels will be met on current fiscal settings in the medium term. This implies significantly greater fiscal consolidation is required to minimise future fiscal risk.     

Cities as Lobbyists

Individual cities are active interest groups in lobbying the federal government, and yet the dynamics of this intergovernmental lobbying are poorly understood. We argue that preference incongruence between a city and its parent state government leads to underprovision of public goods, and cities need to appeal to the federal government for additional resources. We provide evidence for this theory using a data set of over 13,800 lobbying disclosures filed by cities with populations over 25,000 between 1999 and 2012. Income inequality and ethnic fragmentation are also highly related to federal lobbying activities. Using an instrumental variables analysis of earmark and Recovery Act grant data, we show that each dollar a city spends on lobbying generates substantial returns.     

Increasing Canada's Foreign Intelligence Capability: Is it a Dead Issue?

Despite the fact that the issue of whether Canada should develop a greater foreign intelligence capability has been broached numerous times, in various guises, over more than a century, those who have followed the development of the country's intelligence architecture will know it has never had a foreign intelligence service like its close allies. They will also be aware that on each occasion on which the issue has been raised, the Canadian government has declined to proceed. If history is any guide, there is a strong likelihood that the idea of Canada developing a more robust capability will again engage politicians, former intelligence officials, academics, the media, and think tanks in the not too distant future. The view adopted in this paper is that the public discourse has become sterile, and that if it is to advance, aspects of the counterfactual case – why has a foreign Humint capability not been developed? – may prove more fruitful.     

Decentralizing a Centralized State: Local Government Finance in Chile Within the Latin American Context

A major issue in Latin. America is the decentralization of public finances and the autonomy of local government. This article begins with a brief review of the ongoing decentralization debate. We then discuss key features of local government finance and autonomy among unitary and federal governments in Latin America. Against that backdrop, we focus on the Chilean case, which has been a widely celebrated success story in the economic development literature. We argue that despite major gains by municipal governments over the past two decades, financial decision making powers still rest with the national government. This creates financial complacency among local governments. To remedy this, we conclude with six proposals for promoting effective decentralization.     

The Provision of Highways in Canada and the Federal Government

This article presents the role of the Canadian federal governmentin the provision of highways since 1867, describes the CanadianNational Highway System, and presents 1989–1998 data onhighway-related revenues and expenditures by the governmentsin both Canada and the United States. The article then examineswhy the Canadian federal government intervention on highwaysis incontestably smaller than that of the federal governmentin the United States. Our hey finding is that the policy ofthe Canadian government in the provision of highways since Confederationin 1867 can be characterized as "no policy." Its interventionsare best characterized by various ephemeral programs, the mainpurposes of which are often other than coordinating or promotinghighway construction.     

The Federal Spending Power in Canada: Nation-Building or Nation-Destroying?

For the past 40 years, the federal spending power in Canadahas been one of the most contentious issues in federal-provincialrelations, and it has been central to Quebec's dissatisfactionwith the Canadian federation. The dispute is rooted in two differentconceptions of federalism and different perceptions of the federalcompact in Canada. English-speaking Canadians tend to view thefederal spending power as the source of highly valued "national"social programs, while the government of Quebec maintains thatthe federal spending power constitutes an invasion of provincialautonomy and, as such, poses a threat to the cultural distinctivenessof the Quebec nation. The governments of Canada and Quebec havereached a tenuous modus operandi, but the fundamental conflictremains unsolved.