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44 Fed. L. Rev. 1 (2016)

handle is hein.journals/fedlr44 and id is 1 raw text is: 
















    FEDERALISM AND SUBSIDIARITY: PRINCIPLES AND
    PROCESSES IN THE REFORM OF THE AUSTRALIAN
                               FEDERATION


                               Nicholas Aroney*



                                 ABSTRACT
The principle of subsidiarity offers a criterion for the rational allocation of roles within
federations between federal and state governments. The principle states that 'functions
should be performed by the lowest level of government competent to do so effectively'.
However, embedded in the principle is a hierarchy: there are 'higher' and there are
'lower' levels of government. This hierarchy suggests a point of view from which
assessments of optimal allocation are to be made. The deeper question, therefore, is this:
'who will decide for whom?' The reform of a federal system turns not only on what
principles are used, but on questions of process: who will decide what those principles
require, and how will they go about doing it? A problem of path dependency lies at the
heart of Australia's federal malaise. It is this problem that we need to be grappling with
when considering the optimal design of the system. To do so, we need to consider not
only the principles but also the processes by which the federal system is to be reformed.
This paper draws on the comparative experience of Switzerland, Germany and Austria
to provide guidance about how Australia's federal system might best be reformed.
   If we want to know how to change institutions, we must be attuned to the fact that there is
   frequently a mismatch between the initial aims of institution-builders and the
   contemporary value we attach to them.1

I INTRODUCTION
For some time now, the principle of subsidiarity has figured prominently in academic
and official discussion of the reform of federal systems. The principle is conspicuous, for
example, in the Terms of Reference and Issues Papers published by the Australian



    Professor of Constitutional Law and Australian Research Council Future Fellow, School of
    Law, University of Queensland. This paper was presented at the Australian Attorney-
    General's Department Constitutional Law Symposium, Canberra, 1 May 2015. Note, since
    the writing of this article, the Federation White Paper process has been discontinued by the
    federal government. The support of ARC grant FT100100469 is gratefully acknowledged.
    Daniel Ziblatt, Structuring the State: The Formation of Italy, Germany, and the Puzzle of Federalism
    (Princeton University Press, 2006) xi.

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