Federalism, direct democracy and taxation: A theory of Switzerland

Switzerland is often seen as a federalist oddity and singular example of a direct democracy. But Switzerland cannot be understood this way. A new theory of Switzerland is needed, maintains Charles B. Blankart of Humboldt University Berlin. If the initial geographic situation is considered as an exogenous variable of the territory of Switzerland, the development of the country becomes more comprehensible. The institutions of federalism and direct democracy that characterise Switzerland today developed from the fractured geography of the country. Although centralistic tendencies were observable in the 20th century, the regional authorities in Switzerland maintained their autonomy considerably more effectively than in other states. An important role here was played by the direct debt responsibility of the federal alliance, the cantons and the municipalities.