Federalism As A Formula

1. The central government keeps 50% of the federal budget, and passes on the other 50% to all the states in direct proportion to their population.
2. The state government keeps 50% of the state budget, and passes on the other 50% to all the districts in direct proportion to their population.
3. The district government keeps 50% of the district budget, and passes on the other 50% to all the towns/villages in direct proportion to their population.
4. The state government is the only that gets to collect the sales tax. This will make sure all states compete to create the best possible environment for business.
5. For the national lower house, states get seats in direct proportion to their population. 300 seats total.
   
6. For the national upper house, there are 100 seats through proportional representation. Any party that gets at least 1% of the votes qualifies. A political party may not be armed. Other than that there will not be any disqualifiers. It is called the basic human right to peaceful assembly.
   

Proposed Constitution

In this formula, it does not matter how you draw the federal map, as in it is okay to do it along ethnic, linguistic lines. Makes no material difference.

At this point my knowledge base is such that I am sure only about three states: Madhesh, Tharuwan, and Newa. That does not mean I am opposed to the other demarcations. It is just that I want the Janajatis to come forward on their own to suggest what they want.

Let's have a little thought experiment here.

Hypothetical Table.

States	Population	GDP	MPs LH	MPs UH
Madhesh	9 million	$22 billion	84	28
Newa	4 million	$10 billion	36	12
Tharuwan	5 million	$10 billion	45	15
Kirat	3 million	$ 6 billion	27	9
Tamang	2 million	$ 4 billion	18	6
Tamuwan	3 million	$ 6 billion	27	9
Magarant	3 million	$ 6 billion	27	9
Karnali	2 million	$ 3 billion	18	6
Mahakali	2 million	$ 3 billion	18	6
Total	33 million	$70 billion	300	100

Satya Narayan Shah: Concept Of A Regional Party

People - read Pahadi Bahuns - who think in terms of a zero-sum game, in terms of a limited pie, are opposed to federalism. But we have to think in terms of a growing pie. Take one example of Dolpa. People feel sorry for Dolpa because it is in Karnali. But if Dolpa were to be allowed to keep half of all the tourist revenue it generates, it would be one of the richest districts in the country. What is going on now? The bureaucrats in Kathmandu end up keeping all that money. Federalism would be great for Dolpa.

It might look like Madhesh will be the largest state and hence will dominate. Not so. All the other states will have a major incentive to gang up against Madhesh if need be. Half of the Madhesh revenue goes to the central government where all states are represented. All states will be forced to work together to decide on what to do with all the shared revenue.

And if we were to put a major focus on transforming Nepal from an agricultural economy to a knowledge economy, then it is no longer true Madhesh will have the natural advantage. Then you are looking at a level playing field. Some of the hill station destinations might be best suited for the knowledge economy. It might not be Madhesh.

Let's use FM technology to that effect. 10 years of schooling through FM. Every evening for five hours nationwide, you should be able to tune in to any of the 10 class years. This way we are saying, we can't wait until we have enough teachers and school buildings. The future is now.

Bottomline, we have to think in terms of a growing pie. It is amazing to me how populated the Nepali diaspora is with prejudiced Pahadis who have been cooking up all sorts of unscientific arguments against federalism and the same has been consumed by the Kathmandu media like there were no tomorrow.

We have to move beyond those false arguments, and get busy with actually shaping the federalism in the most democratic way possible. It is so obvious to me we are going to have the ethnic states. Madhesh is going to be a state. That is for sure.

If you are not for ethnic federalism, you are in good company with me. I was not for it either before the Madhesi Movement. Joine me. Let go of your old prejudices. Grow your horizons. Federalism is okay, it is more than okay, it is great.


Janakpur Madhesis Demand Federal Republic Nepal
Bahun Federalism Is No Federalism At All
Madhesi Alliance: Panch Pandav: Federal Republic, Madhesh State, Nonviolence
Federalism: Four Layers Or Three Layers
Interim Federalism
Global Federation Of Indigenous People Of Nepal
Federal Republic Guaranteed
Critiquing Pitambar Sharma's Federalism
Pitambar Sharma's Federalism
Nepal: Maps
Federalism: Competing Maps
RPP For Federalism Ahead of UML, NC And NC(D)
My Federalism Is Economic, Scientific, Not Ethnic
Why It Is Important To Me The Congress Takes Up A Federal Republic
UML Inching Towards Federalism
Monarchy, Army, Federalism

On The Web

Federalism - Wikipedia, the free encyclopedia
Federalism (Stanford Encyclopedia of Philosophy)
Constitutional Topic: Federalism - The U.S. Constitution Online ...
Close Up Foundation Civics Education | Federalism
federalism: Definition and Much More from Answers.com
federalism: See what people are saying right now on Technorati
ThisNation.com--Federalism
Democracy For Nepal (DFN): Federalism: Competing Maps
The Federalism Project
American Federalism, 1776 to 1997: Significant Events
Cases & Materials on American Federalism
The Urban Institute | Assessing the New Federalism
Crime & Federalism: Daily commentary about what's wrong with the ...
Federalist - Wikipedia, the free encyclopedia
Center for the Study of Federalism
Centre for Research and Information on Canada: Federalism
Oxford Journals | Social Sciences | Publius
U.S. Federalism Web Site
Federalism - National Constitution Center
Ben's Guide (3-5): National versus State Government -- Federalism