The federal system was created with the intention of combining the different advantages which result from the magnitude and the littleness of nations. — Alexis de Tocqueville

Federalism is a structure of government that offers the benefits of political and economic union combined with local autonomy. Canada and the United States are both federations, with legislative powers distributed between a national government and provinces or states. However, the two systems were originally endowed with important differences and they have evolved in divergent ways.

An obvious difference is that while the American Revolution resulted in independence from Great Britain, Canada's Confederation maintained close formal ties with that country. Sir John A. Macdonald, who would become Canada's first prime minister, declared during the Confederation debates that union would ensure "British laws, the British connection and British freedom." The French-Canadian leader, Sir George-Etienne Cartier, said then that the French Canadians understand that "if they have their institutions, their language and their religion intact today, it is precisely because of their adherence to the British Crown."

After Confederation Canada gradually assumed more autonomy until its independent status was recognized in the Balfour Report of 1926. Canada officially ceased to be a British colony with the passage of the Statute of Westminster in 1931.

Another difference between the Canadian and American federations is that Canada has been shaped by two linguistic and cultural groups. In fact, one of the distinguishing characteristics of the Canadian federation is its marriage of cultural duality with political unity. The protection of minority language and educational rights has been a part of the country's basic body of laws since the British Parliament enacted the Quebec Act in 1774. Canada has been officially bilingual since the passage of the Official Languages Act in 1969.

The level of decentralization also distinguishes Canadian federalism from the American system. The U.S. was formed as a loose federation of powerful states, but subsequent events, most notably the Civil War, and judicial decisions, led to a significant strengthening of the central government. In Canada, the evolution proceeded in the opposite direction, with the gradual expansion of provincial authority, so that Canada's 10 provinces now have more autonomy in many areas than do the 50 states.

Canada is, in fact, one of the most highly decentralized federations in the world.

A commitment to the concept that all Canadians should receive roughly equivalent government services and be taxed at similar rates is another characteristic of Canadian federalism. "Equalization payments," transfers of funds to the poorer provinces out of general tax revenues, were first made in the 1950s, and the principle was entrenched in Canada's Constitution in 1982.

Confederation

The Canadian federation officially came into being on July 1, 1867, with the union of four provinces: Quebec and Ontario (previously united as the Province of Canada), Nova Scotia and New Brunswick.

The impetus for a federation of the colonies of British North America came from the Province of Canada. The union of French-speaking Canada East and English-speaking Canada West, formed in 1841, had proved to be unwieldy, and political leaders in both colonies believed the two sections could better preserve their identities within a wider federation. Economic considerations, including the need to counter the expected loss of trade preferences with the U.S. and Britain, also encouraged unionist sentiment, as did the raids of the Irish-American Fenians into Canada in 1866, which highlighted the potential military threat posed by the United States.

The "Fathers of Confederation," as the colonial leaders are known, met in Charlottetown, Quebec City and London between 1864 and 1867, and agreed to form a federation. With the passage of an act by the British Parliament (originally called the British North America Act, renamed the Constitution Act, 1867), the Dominion of Canada was born.

The Fathers of Confederation created an original form of government: a constitutional monarchy based on the principle of parliamentary supremacy, combined with a federation of self-governing provinces.

Manitoba joined the Canadian federation in 1870, followed by British Columbia (1871), Prince Edward Island (1872), Alberta and Saskatchewan (1905) and Newfoundland (1949).

Canada's Parliamentary System

Under the parliamentary system, the executive and legislative branches of government are fused, with the prime minister and cabinet responsible to Parliament.

Canada's Parliament comprises the Queen (represented by the Governor General), an elected lower chamber, the House of Commons, and an appointed upper chamber, the Senate. Parliament is supreme: if a majority of the House of Commons votes "no confidence" in the government, the Cabinet must either submit its resignation to the Governor General, who will then ask another political party to form a new Cabinet, or ask for a dissolution of Parliament and a new election.

The Senate has legal powers almost equal to those of the House of Commons, although, in practice, the Commons has become the dominant body since it is elected and the government stands or falls on its support. The Senate was intended to provide "sober second thought" on legislation, which must be passed by the upper house to become law. In practice, the Senate has rarely refused to pass bills sent to it by the House of Commons, although it has delayed legislation by proposing amendments.

Representation in the House of Commons is based on population. The next House will have 301 seats. Senate seats are apportioned by region, with 24 each from the Maritimes, Quebec, Ontario and the West, six from Newfoundland and one from each of the two territories. The Canadian Senate has not served the same function of regional representation as its more powerful U.S. counterpart; instead Cabinet members play such a representative role in addition to their other duties.

Although, formally, Canada's head of state is Queen Elizabeth II, her powers are carried out by the Governor General, the Crown's resident representative. The Governor General gives "Royal Assent" to bills passed by the House of Commons and executes decisions of the Cabinet, as well as other duties. The first Canadian to hold the position, Vincent Massey, was appointed in 1952. Unlike the head of government, the Prime Minister, who represents a political party, the Governor General is considered to be above politics and to speak for the whole country. Lieutenant Governors fulfill a similar function at the provincial level.

The Distribution of Powers

The founders of Canada set out to create a strong central government and, at the same time, assign powers to provincial legislative assemblies that would allow the provinces to maintain their identities, cultures and special institutions. They assigned Parliament jurisdiction over defence, trade and foreign policy, transportation and communications, and the power "to make laws for the peace, order and good government of Canada," except for subjects specifically assigned to the provinces. (The U.S. Constitution reserves all unspecified powers to the states or the people.)

Parliament was also given jurisdiction over Indians and Indian lands. Areas under exclusive provincial jurisdiction included education, natural resources, hospitals, property and civil rights, all considered purely local. Jurisdiction over immigration and agriculture was shared between the federal and provincial legislative assemblies.

Since Confederation, much of the political debate in Canada has revolved around the distribution of powers between the federal and provincial orders of government. The balance of power has shifted back and forth, because of interpretation by the courts, political compromise and the course of events. The general tendency, however, has been towards increased provincial powers.

The Judicial Committee of the British Privy Council, the court of last appeal for Canada until 1949, expanded the powers wielded by the provinces through its broad interpretation of provincial authority over property and civil rights and its relatively narrow reading of the principal federal powers.

In the twentieth century, provincial reach was extended further by the demand for social welfare services created by the Great Depression. However, during the two World Wars, the pendulum swung in the opposite direction as power was concentrated within the federal government. After the Second World War, all levels of government expanded. Although much of the demand for government services was in areas under provincial jurisdiction, the limited provincial taxing powers led to the development of federal cost-sharing, in some instances with established national standards, for medicare, grants to universities and other social programs. Some provinces have objected to the federal government's use of its spending power to expand its role in determining social policy.

In the 1970s and '80s, the provinces acquired an important new source of revenue for expanded programs through natural resource development. The provinces, especially Quebec, have also negotiated more autonomy through administrative agreements with the federal government that transfer taxing authority and effective control over areas such as immigration, while leaving formal constitutional provisions in place. Quebec has opted out of some programs, including the national pension plan, and developed its own versions.

An extensive overlap of governmental responsibilities now characterizes the Canadian federal system. For example, the federal government has the power to sign treaties with foreign countries, but implementation often depends on provincial action. The efficient functioning of the federation depends upon a high degree of federal-provincial cooperation, negotiation and compromise at all levels, and a complex network of joint committees, boards and other bodies has grown up to coordinate policy, sometimes known as "executive federalism." The most visible mechanism for managing relations is the First Ministers' conference, a high-profile meeting of the Prime Minister and provincial premiers that is convened as issues arise. Such gatherings sometimes lead to major policy changes such as the constitutional agreement reached in 1981.