1. International Experiences of Federalism Azhar Saeed Malik – Assistant Country Director UNDP

2. Overview of Federalism 28 countries, home to 40% of world population Almost all large democracies are federal Argentina, Brazil and Mexico becoming increasingly Federal Former unitary states Belgium, Ethiopia have become Federal It has been adopted in post conflict countries Congo, Iraq, Sudan and South Africa

3. Federalism Variety Internal Institutional arrangements vary greatly From 2 to more than 80 constituent units – states, provinces, Lander and cantons Some very centralized, others decentralized with extensive autonomy Some have very clear division of power, while other have overlapping powers No one model fits all but the prime objective is of shared and self rule Of accommodating diverse people in a single country Two constitutionally established orders of government each accountable to their electorate

4. Federalism its Evolution In confederal systems – the federal government is creation of constituent Units Whereas in Unitary Systems regional government are legal creations of federal government First wave was the US, Switzerland and Canada Second wave in Latin America – Brazil, Argentina and Mexico Third wave post colonial federations Fourth wave federations emerging from collapse of communism EU is a unique political institution perhaps more confederal than federal

5. All federations evolve over time Some undertake major constitutional changes others have done amendments ----- US only 27 amendments, India 94 ------ Brazil had 7 constitutions, Mexico 6 -------Some had unconstitutional breaks New constituent units, urbanization, economic shifts, new technologies, global and domestic political development, experience of democracy -- --- evolved federations There are successes but also failures in the form of break up or secession Federalism its Evolution

6. Patterns in Distribution of Power Great variation in approaches, there is no simple formula Each country has its own debates ---- decisions are based on shared objectives Can also have asymmetrical distribution of powers Currency, defense, treat ratification, external trade, interstate trade, major infrastructure, custom – usually federal Primary / secondary education, health care, municipal affairs, agriculture - usually CU Court system, police, taxes, income securities – joint or concurrent Mineral resources, criminal law, post secondary – no clear pattern

7. Inter Governmental Relations Interdependence and interaction is at the heart of federation political life Because federally legislated programs, concurrency, joint responsibility, conditional financing Different levels of coordination, consultation and cooperation – formal, informal and adhoc It can be lead by executive or legislature Upper houses in legislatures play an important role – directly or indirectly elected? Office of intergovernmental relations, Finance ministers forum for fiscal federalism, other ministers Coercive and consultative relations Context of politics and issues in which they operate

8. Lessons for Pakistan A democratic process is central for federalism to prosper Its an ever evolving process that addresses the hanging needs of time There are challenges of Unit – embracing diversity, building out (devolution), building in It addresses the imbalances between regions, ethnicities and rights of minorities There are no quick fix solution but continuous dialogue and debate is important Inter Governmental relations are an important part of the process