The Politics of Fiscal Federalism
Neoliberalism versus Social Democracy in Multilevel Governance
How conservatives and progressives lock in their economic policies through the institutions of federalism, regionalism, and globalism.
Description
What does federalism have to do with the political struggle between conservatives and progressives over economic policy? How do economic theories of fiscal federalism influence European, North American, and global forms of governance? In the first comprehensive account of the left-right politics of multilevel governance across federal, regional, and global levels, Adam Harmes identifies both free-market and interventionist political projects related to fiscal federalism. Harmes argues that these political projects and the interests that promote them explain a diverse range of phenomena across national contexts, across levels of governance, and over time. This includes the left-right dynamics of US and Canadian federalism, the free-market origins of British euroscepticism and the Brexit vote, the complex politics behind the NAFTA renegotiations, and the emergence of both populist and progressive challenges to global free trade. A highly accessible outline of fiscal federalism theory, The Politics of Fiscal Federalism also expands upon the broader value and policy differences between neoliberal, classical liberal, and Keynesian welfare economics on issues such as the role of the state, subnational and global trade, economic nationalism, and monetary integration. This original and innovative work demonstrates that a political economy approach is essential to the study of federalism, and why federalism and multilevel governance is a critical area of study for political economists.
Reviews
"Harmes persuasively argues that competition over multi-level governance is best understood through the lens of neoliberalism versus social democracy, which maps broadly on to left and right political divides. This perspective helps explain modern political phenomena ranging from Brexit to President Trump’s federalism policies. Harmes carefully constructs his theory, noting caveats and areas in which over-generalization is necessary. This represents a promising new direction in the study of federalism, one that will appeal to political economy, international relations, and federalism scholars. Highly recommended." Choice
"The Politics of Fiscal Federalism produces an entirely new explanation of the dynamics and nature of contemporary questions of federalism. It is extremely well-researched and beautifully written." Stephen Gill, York University
"The Politics of Fiscal Federalism shows excellent scholarship. Harmes has exemplary command of the literature, which he uses effectively. The political economy approach deployed along three levels successfully mobilizes ideas as theoretical tools to unveil what is behind fiscal federalism." André Lecours, University of Ottawa