The Institutional Politics of Territorial Redistribution: Federalism and Equalization Policy in Australia and Canada.

A key challenge for comparative politics is to explain the varying degrees of political conflict triggered by the territorial redistribution of financial resources. Federal systems pose this question particularly acutely since they typically operate equalization programs that generate different levels and patterns of intergovernmental conflict. For instance, in Canada equalization has generated serious conflict between federal and provincial governments whereas in Australia it has only led to low-level grumblings on the part of some states which have taken shots at others. This article sheds light on the causes for conflict around the territorial redistribution of financial resources by explaining why equalization has produced more severe intergovernmental conflict in Canada than in Australia. It argues that institutional factors linked to the governance structures of equalization and the nature of federalism are at the heart of the cross-national difference. More specifically, the presence of an arms-length agency administrating equalization in Australia compared to executive discretion over the program in Canada and the weaker status and lesser power of states in comparison to Canadian provinces means that equalization policy is more subject to political challenges in Australia than in Canada. [ABSTRACT FROM PUBLISHER]