The Role of Subnational Governments in the Governance of North America
Case Synopsis
This essay argues that a key dimension of regional integration is often missed by analysts focusing on the Ottawa-Washington, D.C.- Mexico City axis: the interactions of subnational governments (such as state and provincial governments, as well as municipal and county governments), especially in border regions.
All three NAFTA states are federal systems, which gives subnational governments greater authority and autonomy in policymaking and, as it turns out, in contacts across borders. Fry calls this a "fortuitous convergence of government structure," and in the essay he marshals an impressive compendium of evidence showing how, in the past two decades, Canadian, U.S. and (to a lesser but increasing degree) Mexican subnational governments have increasingly reached out across borders (positively via cross-border cooperation, and negatively via unilateral actions) to advance their constituencies' interests in the context of expanding globalization and continentalization of the economy.
Fry concludes with the warning that, given the scale and intensity of these contacts, national governments cannot ignore or bypass these key actors as they consider future measures or agreements managing North American regional integration.
Educational Objectives
Students of American government, Canadian government, Mexican government, international relations, and comparative politics will be surprised and fascinated to see that federalism can have unforeseen effects on foreign affairs, given the highly integrated and independent context of North America.
Courses focusing on state and local government, or business-government relations, would use this case to discuss the interaction of levels of government, and the complexity of "governing" a regional economy in the absence of supranational institutions. Finally, the discussion of the "democratization of international relations" and the rise of non-state actors after the Cold War could benefit from discussing these subnational governmental actors.
Teaching Plan
Conservative Approach: How Does Federalism Work?
This case can be used to open a discussion of federalism in general, and possibly the three manifestations of federalism in the NAFTA triad. The instructor can assign this case to complement a textbook or more theoretical piece on federalism, and then ask students to point out how the transnationalization of subnational governmental activity squares with what they have read. Courses on American, Canadian, and Mexican government can go into greater depth studying the particular federalist system at issue, and asking how it may or may not differ from other federalist and non-federalist systems.
The case also presents empirical data which can then be analyzed according to the expectations students have about the way federalism empowers and yet limits subnational governments. The instructor might open discussion by asking, "Are all of these subnational contacts and activities created equal? Which are most likely to result in policy changes that will constrain the action of central governments, to the benefit of local communities?"
More Dynamic Approach: Modeling Subnational Interactions in North America
For this classroom exercise, in addition to assigning the textbook/theory on federalism and the case required readings, students would be divided into 4 groups: one Canadian province, one Mexican state, two U.S. border states. One U.S.-Canada issue would be chosen (such as the mad cow disease), and one U.S.-Mexico issue (such as illegal immigration or border security). The groups are told that they are preparing a policy memorandum for their state governor or provincial premier. They would have to research the issue from the point of view of their constituents, and in the context of cross-border flows and interests, and present their position on how they think the issue would best be resolved. Groups would also have to consider the jurisdictions and optimal roles for their governments vis-á-vis their national government (executive and legislative). To simplify, or if the instructor has a substantive preference, the class can be divided into four groups (two subnational governors, one representative each for the federal governments), and a single bilateral issue can be addressed. This can be a long-term project which culminates in oral presentations, or it can be modeled as a negotiation, depending upon the time limitations of the course.
Questions for Discussion
1. In the absence of federal immigration reform legislation, state governments in the U.S. have taken action to curb illegal migration. Do you think this is the right direction to go, or is federal action necessary? What role should bilateral, or regional, cooperation have on this issue, and which levels of government should take the lead?
2. Why is the presence of three federal systems in the North American region "fortuitous," as the author maintains? What advantages and disadvantages do federalist systems have in terms of efficiency and representation, and why should this matter for regional integration?
3. The Canadian province of Alberta, a major producer of oil exported to the United States, established an office in Washington, D.C. in 2004, and one in Mexico City in 2002. What do you think is the purpose of these officers? In what ways does it promote, and in what ways might it work against, the Canadian federal government's interests in North American integration? How might its actions impact domestic federal-provincial relations?
4. Imagine you are the mayor of a border city, either Canada-U.S. or Mexico-U.S. What kind of issues would you want to discuss with your counterparts across the borders - that is, what kinds of issues would require their cooperation in order to resolve them, that you and your government could not solve on your own?
Relevant Courses
This case would be appropriate for a variety of courses in Political Science, such as American government, Canadian government, Mexican government, comparative politics, international relations and foreign policy, international political economy, globalization studies, state and local government, municipal government, immigration studies, and environmental studies. It would complement the study of federalism, especially for courses looking for an illustration of how economic integration challenges the nation-state's ability to solve domestic problems on its own.
Discussion of the role of "non-state actors" in courses on international relations and globalization studies could also benefit from a look at governmental actors below the level of the state.
IPE classes could benefit from this piece as a way to discuss the multiplicity of interests that weigh in on foreign economic policy. The case would also complement materials on trade policy, business-government relations, and cross-border supply chains within courses on international business.
Useful Links from PNA
- Canadian Direct Investment in Western New York: A Tracking Study of Subsidiaries and Parent Companies
- Candian Provinces, U.S. States and North American Integration: Bench Warmers or Key Players?
- Do Cross-Border Regions Matter for Trade - Canada-U.S. Border Effects and Cross-Border Regions
- Federalism and the New Economic Order: A Citizen and Process Perspective
- International Trade, Interprovincial Trade and Canadian Provincial Growth
- North American Integration in Agri-Food
- North American Integration - The Emergence of Cross-Border Regions
- Plugged into North America: Hydro-Quebec in an Integrated Continental Energy Sector
- Quebec-New York Trade Corridors Initiatives
- Responding to the NAFTA Challenge: Ontario as a North American Region-State and Toronto as a Global City-Region
- Toward North American or Regional Cross-Border Communities: A Look at Economic Integration and Socio-Cultural Values in Canada
- The Border Region Between Mexico and the United States: A Challenge to Environmental Security
- The Effect of Undocumented Immigration and Border Enforcement on Crime Rates: Along the U.S.-Mexico Border
- The Emergence of Cross-Border Regions between Canada and the U.S.
Suggested Bibliography
Ball, Terrence, ed. (2003). The Federalist. Alexander Hamilton, James Madison, and James Jay (writing as Publius), with The Letters of Brutus. Cambridge: Cambridge University Press.
Chozick, Amy and Timiraos, Nick (2008). "NAFTA Bashing Stops at the Texas Line." Wall Street Journal, Eastern Edition, March 3, P. A13.
Erk, Jan (2008). Explaining Federalism: State, Soceity and Congruence in Austria, Belgium, Canada, Germany and Switzerland. New York: Routledge.
Friedman, Kathryn (2007). "Domestic Institutions and Subnational Autonomy under NAFTA: Policy Implications of Conceptualizing the Greater Golden Horseshoe Area as a Cross Border Region." Paper Presented at the Annual Meeting of the International Studies Association.
Fry, Earl H. (1998). Expanding the Role of State and Local Governments in U.S. Foreign Affairs. New York: Council on Foreign Relations Press.
Griffiths, Ann. L. (2005). Handbook of Federalist Countries 2005. Montreal: Published for Forum of Federations by McGill-Queen's University Press.
Peach, Ian, ed. (2007). Constructing Tomorrow's Federalism: New Perspectives on Canadian Governance. Winnipeg: University of Manitoba Press.
Rodriguez, Victoria E. (1997). Decentralization in Mexico: From Reforma Municipal, to Solidaridad, to Nuevo Federalismo. Boulder, CO: Westview Press.
VanNijnatten, Debora L. (2004). "Canadian-American Environmental Relations: Interoperability and Politics." American Review of Canadian Studies, vol. 34, no. 4 (Winter): 649-664.
Warner, Mildred and Jennifer Gerbasi (2004). "Rescaling and Reforming the State under NAFTA: Implications for Subnational Authority." International Journal of Urban and Regional Research, 28(4) (December): 858-873.
Suggested Web Resources
Alberta Mexico Office: http://www.albertacanada.com/mexico/default.htm.
Alberta Washington Office: http://www.international.alberta.ca/553.cfm.
Arizona-Mexico Commission: http://www.azmc.org/.
Atlantica: The International Northeast Economic Region: http://www.atlantica.org/.
Pacific Northwest Economic Region, PNWER: http://pnwer.org/.
US/Mexico Border Counties Coalition: http://www.bordercounties.org/.
Case Study from: Study Group on "Mapping the New North American Reality"
In cooperation with the Government of Quebec, the Government of Canada, the Institute for Research on Public Policy (IRPP), and HEC-Montreal, Montreal November 2003.
Published in: Mapping the New North American Reality, IRPP Working Paper Series 2004-09c.
Note: PNA is committed to encouraging intelligent discourse among our members. Comments are moderated by PNA, in accordance with the PNA Comment Policy. PNA does not necessarily endorse any of the views posted below.
2 Comments
Danielle Goldfarb, Associate Director at the International Trade and Investment Centre of The Conference Board of Canada, has recently published a piece on the increasing trade role of provincial governments in Canada.
See: "The New International Trade Dealmakers" —July 30, 2009, available from: http://www.conferenceboard.ca/economics/hot_eco_topics/default/09-07-30/....
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