On the territorial evolution of the Australian Federation in the 21st century

On the territorial evolution of the Australian Federation in the 21st century

This paper draws attention to the historical territorial evolution of the Australia Federation, and to the potential gains from continuing this evolution in the 21st century. To this end, the paper contemplates the desirability of new Australian States. While the size of states is a function of a number of variables,1 some Australian States can be identified as too large (in terms of area). An analogy with the United States motivates this conclusion. Specialisation and agglomeration gains envisage smaller states, even at the size of conurbations and their hinterland. The paper reimagines conurbations, such as metropolitan Brisbane, as States within the Federation, analogous to Hamburg in Germany, and Vienna in Austria. Creating specially crafted governance units can benefit both cities and regions due to their ability to tailor their policies to their individual socio-economic needs. After canvassing the constitutional and political hurdles, the paper identifies Commonwealth leadership as imperative for the creation of new States.

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