The Future of Federalism ― Intergovernmental Financial Relations in an Age of Austerity

The global financial crisis had a dramatic short-term effect on federal relations and, as the twelve case studies in this illuminating book show, set in place a new set of socio-political factors that are shaping the longer-run process of institutional change in federal systems. The Future of Federalism illustrates how an understanding of these complex dynamics is crucial to the development of policies needed for effective and sustainable federal governance in the twenty-first century.? The book finds that growing fiscal pressures are interacting with domestic political variables to produce country-specific federal dynamics. Arguably the first detailed study of the medium-term impact of the financial crisis and its aftermath on federal governance, this book highlights how growing budget pressures are contributing to increased centralization in many federations, while in others national governments are devolving power to appease regional grievances and preserve the federal union. Contributions from leading federalism and public finance scholars test recent theoretical explanations of change in federal systems against the experiences of a diverse cross-section of federal jurisdictions. The case studies include both established federations and ‘federalizing’ jurisdictions, such as the UK and China, and highlight the complex dynamics which shape the evolution of federal governance.Comprehensive and interdisciplinary, this timely book will appeal to students and scholars – from political science, economics and law – studying federalism, governance studies and comparative political economy. It is essential reading for public officials and policy-makers interested in intergovernmental relations, public finance and budgeting and tax policy.

Edited by Richard Eccleston, Director, Institute for the Study of Social Change, University of Tasmania and Richard Krever, Director, Taxation Law and Policy Research Group, Monash Business School, Monash University, Australia