STATE RESTRUCTURING AND
FEDERALISM
Trilochan Pokharel, NASC,
[email protected]
2
Declaring a federal republic in an interim constitution
was easy: choosing which version to implement in
Nepal is the hard part.
Federations, January 2011
NASC, Trilochan Pokharel
10/18/2014
Outline of presentation
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

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Grounds and basis for state restructuring
Principles of federalism
Progress in state restructuring and federalism in
Nepal
Contentious debate
NASC, Trilochan Pokharel
10/18/2014
Grounds for state restructuring
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NASC, Trilochan
Pokharel
10/18/2014
With due
respect
to Prof. Pitambar
Sharma
Grounds…
5
अग्रगािम जातLय, भािषक र साँ कृितक
पिहचान (रा य मा वािम व)
- हुकर्ने अवसर ?
- पिहचानको व प ?
- अग्रािधकार ?
- अ पसंख्यकका अिधकारको यब थापन ?
NASC, Trilochan Pokharel
10/18/2014
Grounds…
6
समतामल
ु क, समावेिश िवकाश
- द्रत
ु आlथर्क िवकाश र िव तार ?
- जनिजिवकामा (गरीिब िनवारण, रोजगारी, आय, िशक्षा, वा य)
यापक सध
ु ार ?
- प्राकृितक र अ य ोत-साधनको उपल धता र पिरचालन ?
- पिरपरु क अ तर प्रादेिशक आिथर्क लेन-देन ?
- िवकाशका अवसरह मा समान र सम-पहुँच ?
NASC, Trilochan Pokharel
10/18/2014
Grounds…
7
सबैभ दा त लो तह स म शिक्त
िवकेि द्रकरण/िनक्षेपण
- वाय ता र आ मिनणर्यको अिधकार ?
- प्रशासिकय र िवि यिवकेि द्रकरण र िनक्षेपणको
व प?
- वािम व, अिधकार र दािय व ?
NASC, Trilochan Pokharel
10/18/2014
Why federalism?
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



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Bringing state closer to people
Increasing people's participation
Preventing tyranny by division of power at different
level
Managing unity in diversity
Improving governance
Promoting trade and commerce
Managing conflict
NASC, Trilochan Pokharel
10/18/2014
Countries with federalism
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

25 countries
40 percent population
NASC, Trilochan Pokharel
10/18/2014
Countries...
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NASC, Trilochan Pokharel
10/18/2014
Characteristics of federalism
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

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More than two tiers of government
Division of legislative, executive, judiciary and financial
powers
Inclusive and representative federal institutions (eg upper
house)
Written constitution with division of power (no unilateral
amendment)
Institutions for inter-governmental cooperation and
coordination
Inter-governmental dispute resolution mechanism
NASC, Trilochan Pokharel
10/18/2014
Differences in federal system
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Social diversity
Number of federal units and size
Division of power
Centralized and decentralized
Foreign affairs and supremacy
Governance system
NASC, Trilochan Pokharel
10/18/2014
Principles of federalism
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Integrative federalism (Coming together )
- USA, Switzerland
 Devolutionary federalism (Holding
together )- India, Belgium, Spain

NEPAL
NASC, Trilochan Pokharel
10/18/2014
Coming together…
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
Independent territorial entities come together for:
building strong nation
 promoting strength
 economic prosperity
 protecting each other

NASC, Trilochan Pokharel
10/18/2014
Holding together
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
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Address social diversity
Take state closer to people
Maintain regional balance of development
NASC, Trilochan Pokharel
10/18/2014
Attributes of federalism...
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
Self rule
Shared rule
NASC, Trilochan Pokharel
10/18/2014
Progress in Nepal
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NASC, Trilochan Pokharel
10/18/2014
Basis for federal structure
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
Identity
 ethnic,

linguistic, cultural and historical continuity
Feasibility
 economic
interrelationship and sustainability,
infrastructure, availability of resources and
administrative convenience
NASC, Trilochan Pokharel
10/18/2014
Proposed structure…
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
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Centralized structure
Symmetrical
Three tiers of government
Fiscal commission for redistribution and equalization
NASC, Trilochan Pokharel
10/18/2014
Division of powers
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Exclusive power
Concurrent power
Residual power
In Nepal:
Federal list
Province list
Local list
Special structure list
Concurrent list
NASC, Trilochan Pokharel
10/18/2014
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Revenue collection by …and areas
Central government
1.
2.
3.
4.
5.
Custom (Bhansar)
Antasulka
VAT
Institutional tax
Fee of passport, visa,
post, tourist, and other
services
Provincial government
1. income tax
2. property tax
3. Professional tax
4. Malpot
5. Fee tax
6. Registration fee
7. Vehicle tax
8. Entertainment tax
9. Advertisement tax
10. Tourist fee
11. Agriculture income tax
12. Other services tax
NASC, Trilochan Pokharel
10/18/2014
Which institution earns from what sources?
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Provincial government
Local govt./autonomous area
1. Income tax
1. Rent tax
2. Property tax
2. Property tax
3. Professional tax
3. Vehicle tax
4. Malpot
4. Malpot tiro
5. Fee tax
5. tourism
6. Registration fee (land and house)
6. Advertisement tax
7. Vehicle tax
additional to autonomous area
8. Entertainment tax
7. Registration fee(land/home)
9. Advertisement tax
8. Fee tax
10 Tourist fee
11. Agriculture income tax
12. Other services tax
NASC, Trilochan Pokharel
10/18/2014
Contentious Issues
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Name, number and boundaries of provincial
units
 Governance structure
 Preferential right
 Election process
 Independence of judiciary
 Transitional planning

NASC, Trilochan Pokharel
10/18/2014
Contd…
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Special structure
 Structure of civil service (not planned yet)

Strengthening local bodies (not discussed
properly)
 Focused on ism than system
 Focused on structure, not in process
 Uniting nation
 Focus on self-rule ignoring shared rule

NASC, Trilochan Pokharel
10/18/2014
Public opinion
http://www.spotlightnepal.com/News/Article/Nepal-Federalism-and-Public-Opinion
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Federalism with mutliple
identity states
Federalism with single
ethnic identity
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Unitary government
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2
1
0
Why CA failed?
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Power politics rather than politics on nationalism
Blaming game, attempt to downsize opponents
Ownership of agenda (whose brainchild)?
Lack of internalization (education) of federalism
among stakeholders
Election result projection
Weak institutional capacity of political parties
Non-disintegration movement (initiated from far-west)
Interference???
NASC, Trilochan Pokharel
10/18/2014
Finally…
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Thinking Federally!!!
NASC, Trilochan Pokharel
10/18/2014
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Thank you for your attention
NASC, Trilochan Pokharel
10/18/2014