Posted by Ilya Somin:
The Belgian "Breakup" and the Future of Ethnic Federalism:
http://volokh.com/archives/archive_2007_09_16-2007_09_22.shtml#1190443186


   Both [1]the New York Times and [2]some European observers are
   predicting that Belgium may soon break up. This circumstance, combined
   with the persistence of longstanding secession movements in Quebec,
   Scotland, and elsewhere, have persuaded some, including our own
   [3]David Bernstein to doubt the viability of federalist solutions to
   the problem of ethnic conflict.

   Belgium has a long history history of tension between the majority of
   Flemish speakers (concentrated in the north) and the French-speaking
   Walloon minority (most of whom live in the south). It is certainly
   possible that the country will break up soon. However, there are
   reasons to doubt both the likelihood of breakup and the claim that
   such an event demonstrates the failure of federalism.

   It is far from clear that Belgium really will split up. The country
   has weathered ethnic tensions and threats of secession for over 170
   years. The record suggests that the current crisis, triggered by a
   coalition power struggle in parliament, may well blow over as many
   previous ones have.

   Even if it does not, a peaceful secession today by either the south or
   the north would not invalidate the successes of federalism in keeping
   ethnic conflict in check. After all, a combination of federalist
   decentralization and powersharing kept Belgium together for 170 years
   with a relative minimum of intergroup violence. Flemish and
   French-speaking Belgians may not like each other much (though the New
   York Times is surely wrong to claim that they "hate" each other), but
   they have coexisted successfully for many decades. During that time,
   the country achieved a high level of political and economic
   development. The same is true in Canada, which has longstanding issues
   with its own secession movement, and even more so in Switzerland,
   whose federalist system has successfully managed conflicts between
   four different ethnic groups for centuries. Ethnic federalism is no
   panacea and won't work everywhere; David is probably right to suggest
   that it wouldn't work under current conditions in Israel/Palestine.
   But, overall, it has been a great success in Switzerland, Belgium,
   Canada, and a number of other countries. By allowing each group to
   have control of those regions of the country where it is in the
   majority, while respecting basic minority rights, it prevents the kind
   of zero-sum power struggle between groups that is likely to occur in
   an ethnically divided society where all the power is in the hands of
   the central government.

   However, the Belgian example is a warning signal on one important
   issue: Much of the secessionist impulse by Flemish Belgians stems
   from[4] "deep resentment in Flanders that its much healthier economy
   must subsidize the French-speaking south, where unemployment is double
   that of the north." Federal transfers between different regional
   governments create a zero-sum game between regions and stimulate
   resentment in regions whose inhabitants believe they are being fleeced
   for the benefit of parts of the country dominated by other ethnic
   group. They also reduce the incentive of regional governments in
   poorer regions to adopt pro-growth policies likely to improve their
   economic fortunes. These problems arise even in federal systems that
   are not divided on ethnic lines (as John McGinnis and I explain
   [5]here). But they are heightened when ethnic grievances come into
   play.

References

   1. 
http://www.nytimes.com/2007/09/21/world/europe/21belgium.html?_r=2&hp=&adxnnl=1&oref=slogin&adxnnlx=1190341532-XCLaBGCMmftvOzOJNRLqzA&oref=slogin
   2. http://pajamasmedia.com/2007/09/belgium_splitting.php
   3. http://volokh.com/archives/archive_2007_09_16-2007_09_22.shtml#1190340457
   4. 
http://www.nytimes.com/2007/09/21/world/europe/21belgium.html?pagewanted=1&hp
   5. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=578143

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