I have been going back and forth to Canada for the last 10 years visiting my son’s family, staying in for six to eight months and I have observed and read about how a federal government works.

Canada is located on the northern boundary of the of United States which lies in the south of Canada, and extends to the north up to the Arctic Ocean in a vast land area from the Pacific Ocean to the Atlantic Sea. Canada has one of the largest land area in the world, second only to Russia. It is one of the most highly ethnically diverse and multicultural nations, a product of large-scale immigration from countries of the world` mainly from European and Asian countries. Its population is estimated at 37 million people that include one and a half million of its aboriginals, the First Nations as well as hundreds of indigenous tribes in the north. Canada’s land mass is comparable to that of California.

Federalism has its beginnings in Canada during its colonial days under Great Britain when its Parliament enacted the Constitutional Act of 1867, which modified its sovereign power and granted self-governing powers and authority on domestic affairs settlements to British North America. It was a response to the colonial era diversity between the French speaking Lower Canada (southern Quebec and Labrador region in Newfoundland), the English speaking Upper Canada (modern day Ontario province), and the Maritime provinces in the east (New Brunswick, Nova Scotia, and Prince Edward). From a beginning of 4 provinces, the settlement colonies grew to 10 plus 3 territories of today.

Its government is a federal parliamentary democracy and a constitutional monarchy with the Queen of England as the Head of State who is represented by a Governor General. It has three levels of government: federal, provincial or territorial; and municipal (city).

The first level is the single national government referred to as the ‘federal government,‘ which has jurisdiction and exercises certain powers across the entire country. It refers to the Monarchy, the head of the state, which is ceremonial, and exercised by the Governor General, the Prime Minster and his Cabinet –an elected legislature, the House of Commons and the Senate –an appointed body. The second level holds the self-governing 10 provinces (states) and 3 territories, which exercise certain powers and authority within the region or territory. Each province has a head of state –the Deputy Governor General, and an elected legislature. Executive powers are exercised by the Premier and his cabinet. The provinces have constitutionally recognized powers independent of the federal government and can enact and implement laws within their territories. The 3 territories (Northern territory, Nunavut and Yukon) that are part of the First Nations, have their own legislatures but unlike the provinces, are under the legislative jurisdiction of the federal government. In actuality, the 3 territories have been acting more like the provinces, having their powers and influence felt by the federal government. The third level is municipal. Mayors lead municipal governments. Municipal governments run cities, towns or districts (municipalities).

Canada’s Constitution Act of 1867 has undergone many changes and amendments in the powers of the federal government. Its constitutionally recognized powers are broadly stated as the ‘Peace and Order and Good Government’ clause which includes the power to regulate trade and commerce, postal service, census and statistics, the military, navigation and shipping, sea coast inland fisheries, Indian reserve land and criminal law and treaty making. The provinces can enact laws on hospitals, asylums, municipalities, prison, property and civil rights have sole jurisdictions on these areas. Both have concurrent powers on agriculture, immigration, pension and supplementary benefits. The territories have power to enact laws on education, health and social welfare.

The federal government has wide taxing powers and may raise revenue, such as direct taxes income or corporate taxes, and indirect taxation such as duties and fees. The provinces have limited power of taxation, confined only to ‘direct tax’ to raise revenue. Most provinces levy income and corporate taxes, sales on exchange of goods and services and may raise revenue through licensing and fees. Hence, the need for coordination between the federal government and the province because both levels have powers to impose direct taxes, income and corporate taxes. Otherwise, there will be duplication and over-taxing of individuals and business establishments.

The federal government uses the tax system to transfer taxes to other levels of government as it provides subsidies or conditional grants (block transfers) to provinces and territories to ensure that these entities’ public services can come up to standard. The federal government has special power to control provinces and may approve or reject provincial legislation, and declare under its control any local work or undertaking which it deemed to the general advantage of Canada. It has fiscal spending power, which means it can spend money on areas not within its jurisdiction. It can fund provincial programs such as education, health care welfare etc as a way of making the province comply with certain federal policies. Also, to remove disparities in rendering public provincial service, it may transfer revenues from one province to another in need (Equalization Clause). It reserves for itself powers and authority not specifically delegated to the provinces.

The history of federalism in Canada is a narration of disputes between the two levels of government on the delineation of powers and authority on broad areas, and on sharing on major ones, and has led to amendments of its Constitution and enactment of pertinent laws. The issue is to determine which ‘rule to follow, and who will raise the money.’

Examples of these major disputes are what will likely happen if the Philippines adopts a federal government (first level) with the regions (the second level of government), as discussed below:

• Derailment of a National Project. This is the expanded Trans Mountain Pipeline, a 1100 km conduit of crude and refined oil from northern Canada, which will pass through the provinces of Alberta to the west coast of British Columbia. It will enable Canada to ship oil from its western ports, open new markets and sell much bigger volume at more competitive prices thereby deriving more revenues. The project has been stalled for many years and has been litigated in the courts over demands and claims on environmental and other concerns by the provinces and territories, including the investors.

If the Philippine Federal Government (PFG) will construct a railway in Mindanao, which will pass through several regions, it is expected that the latter will ask for concessions such as royalties, permits, payments for right of way, and other demands to raise revenues. TRO’s will be filed and long litigations in courts will certainly stall or ultimately doom the project.

• Obstruction to National Programs. The federal government in response to the United Nations Convention on Climate Change has mandated that provinces formulate a viable program to control emission of carbon content from fossil based fuel (coal, petroleum, and natural gas). Those provinces, which do not comply, will have to be taxed a certain amount per ton of emission. Despite a pledge by the federal government to rebate to the provinces the taxes received, the affected provinces objected citing rising costs on goods and services that may ensue, and result to an inadequate rebate.

The supposed PFG would require Metro Manila (one of the proposed regions) to have a viable and self-funded garbage collection and disposal program. (Quezon City budgets P1.7billion a year for garbage collection). Cities will have to levy new taxes in addition to present ones. It may levy tax on residences on the basis of area of land occupied or collect fees on a number of garbage drums used by the residents and from establishments such as restaurants, factories and schools.

• Multiple Taxation. If you buy groceries say from Walmart in Ontario province, your receipt will show a Harmonized Sales Tax (HST) of 13%, of which 8% is provincial sales tax and 5% is for Goods and Services, which is the same for 6 provinces. At one time, Ontario levied a tax on gasoline resulting in the increase in prices, which the customer had to bear.

What then will stop the Philippine regions from levying tax on any business on any goods and services sold? More taxes will result in the increase of both the price of goods and services in an inflation vulnerable economy.

Transfer of Revenues. Under the Equalization Clause of its tax code, the federal government may transfer revenues raised from a richer province to another in need to remove disparities in the rendering of public services to the residents.

If this “transfer of revenue” scheme is adopted in the Philippines, it may engender opposition from the local political leaders of the richer regions for that would mean fewer projects for their provinces, towns and barangays, and in turn lead to loss of votes.

• Additional Layers of Power and Administrative Set-up. Each province in Canada has its own elected legislature and executive body composed of the Premier and Cabinet.

In the Philippines, a federal set-up will result in one more layer of power and authority in the regions – more bureaucracy and red tape. Setting up and running private businesses will undergo more checks and procedures and public projects will be subjected to additional reviews and scrutiny.

• Additional Financial Burden. Based on the estimates by the Department of Finance, it will require trillions of pesos, which have to be appropriated by Congress to initially support and maintain for a number of years the legislatures and administrative bodies to be set up in the regions. The regions may be required to support/fund this additional burden. It would need close coordination between the federal government and the regions to avoid tax duplication, which might add another step in the bureaucracy.
• Rise and Entrenching of Local Power. In an environment where there is space for creative initiatives and pioneering entrepreneurship as in the provinces and territories of Canada, which are autonomous in areas within their authority, some new leaders in politics, business, and other fields will likely emerge.

Such may not likely happen in the Philippines as the political family dynasties that own vast tracts of plantation land and big businesses will continue to lord over the political landscape and ensure they remain entrenched in power, nullifying the Lincoln dictum of “a government for, of, and by the people.”

• Spurring Separatist Movement. The desire of the people of Quebec province to be distinct and separate from the rest of the provinces has roots to the colonial period under Great Britain. The separatist movement in Quebec reached its violent period in October 1970 when its Deputy Minister for Labor was kidnapped and killed, and a top British diplomat was kidnapped. The government invoked for the first time after WW II the War Measures Act and had some 500 persons arrested and jailed without bail. A non-binding referendum held in 1995 sponsored by a private organization resulted in the separatists losing by a slim margin.

The present Philippine government, however, avers that the federal government is a possible solution to the centuries old separatist movement and struggle by the Muslims in Mindanao since so many peace agreements that were forged by past administrations have failed or have been aborted.
The above deficiencies in federalism may be avoided if there are clear and unambiguous delineation of powers and authority between the levels of government. The major benefits in a federal set-up are as follows:

• Devolution and Decentralization of Powers. Under the subsidiary principle, power is exercised by the most competent who is nearest to the ones who will be most affected. In Canada, the legislature and governing bodies in the provinces and the territories are in a better position than the federal government to determine what services are to be rendered, programs to be pursued, and projects to be built for the benefit of the residents within their jurisdictions. They can collect taxes, fund and implement them.

The Philippine system has local politicians having to go to Imperial Manila, to lobby in Malacañang and the Batasan for funds to build schools, houses, farm to market roads, a bridge or a wharf, etc.

• Development of National Leaders. The legislatures and governing bodies in the Canadian provinces provide training and experience in preparation for office at the national level. Governors are choice candidates for senators and Presidents.

Unfortunately, in the Philippines, the trending basis of choice is ‘popularity and money.’ Celebrities like movie stars (or linked to movies figures), sports figures and other personalities notably covered by media for good or bad, have more chances of being elected in national and local offices than career government officials, prominent educators or top professionals.

• Foil to Tyrannous Central Government. A strong central government can easily impose its rule and power all over the country. In a federal set-up, the sub-governments or states can serve as a deterrent to a tyrannous government.

In the October 1970 crisis, the provincial government of Quebec requested the federal government of Prime Minister Pierre Trudeau (father of incumbent Prime Minister Justin Trudeau) to invoke the War Measures Act and send federal troops to help restore order, guard property, and quell the rebellion.

President Ferdinand Marcos in 1972 declared a national emergency and martial law all over the country with powers and authority he had under the 1936 Philippine Constitution.

Mitigating a Separatist Movement. Studies have shown that separatist movements in countries like India and Pakistan where people are differentiated by religion, ethnic origin, and language have been mitigated or muted. This has been attributed to the autonomous powers granted to the regions.

While the deep historic desire of its French sector that influences people to be distinct and independent still exists in Quebec, the liberal and democratic policies of the federal government have led to a more stable and harmonious relation between the two.

The proponents of federalism for the Philippines claim that the solution to end the Muslim rebellion and separatist movement in Mindanao is to give them adequate powers and authority to govern themselves and resources within their territories; recognize their ownership of ancestral lands, and respect their language and culture.

There are cases in the past, however, where federalism has given rise to secession or separatist movements as illustrated below:

• The 11 southern states of the United States composed of the Confederacy and the loyal northern states, and the Union headed by President Abraham Lincoln, went to war from 1861 to 1865 on the issue of states rights and slavery. The seceding 11 states had claimed that the power and authority of the federal government were originated and granted by the states, hence, they are supreme on these issues. The defeat of the Confederacy strengthened the federal government and saved the Union. But victory cost some 800,000 American lives.
• In the case of Yugoslavia, it was a loose federation of 6 republics and 2 autonomous entities formed years before WW II. Marshall Broz Tito, who rose as the victorious partisan leader in WWII against the Germans, consolidated the regions of varied culture and languages and adopted socialism. After his death in 1980, the federation started to break up into warring independent states characterized by heavy fighting and genocide of minorities. Western countries led by NATO had to intervene to restore order and stability to the country.
• A more recent separatist moment was that of Catalonia province, an autonomous region in federal Spain when its Minister declared independence. The Spanish government, invoking a provision in Spain’s Constitution, the –indivisibility and unity of the Spanish nation– had him and his ministers, who fled and sought asylum in Belgium, arrested and charged for sedition and rebellion.

The strength and stability of the federal government of Canada is attributed to many factors. It has evolved through decades over a span of more than one and half centuries starting from the colonial period under the British empire, which granted the colonies settlements power and authority over domestic matters.

Federalism was a pragmatic solution to governing and administering a very large tract of land over people of diverse languages and culture adapting to changing situations and circumstances by making revisions in its constitution, enacting pertinent laws and formulating sound policies. Its parliamentary form of government, in which the majority party in the House of Commons forms the Cabinet, avoids the frequent disputes between the executive and legislative branches of a presidential form. Canada is described as a ’full democracy,’ with a tradition of liberalism and a centrist moderate political ideology. Its stated political goals are ‘Peace, Order and Good Governance.’ Its approach to governance is egalitarian, emphasizing social welfare, economic freedom and multiculturalism.

In a survey by the World-Wide Governance (WGI) in 2013, Canada was ranked in the 84th percentile in Political Stability and Absence of Violence and Terrorism. It was also ranked in the 97th percentile in Government Effectiveness. Its economy is 11th largest in the world and ranked 8th. It is a member of the Government Organization for Economic Cooperation, The Group of Seven, comprising the largest economies of the world.

A top official of the Philippine Department of Interior and Government (DILG) was quoted by media to have recommended that the President declare a Revolutionary Government and decree a federal government be set up in the country. However, his proposal is an antithesis of what federalism is, and what it has been. Settlements and communities have evolved over time into self-governing entities, certainly not by decree but rather after decades of growth and nurturing, forming and binding themselves into a federation, and adapting themselves to changing situations.