Superfederal??

Superfederalism: The Radical Decentralization Cure for a World in Flames.

Mikel de Elguezabal Mendez-Rodulfo, LEA Foundation, Navarra.

Abstract

This article advances "superfederalism" as a radical yet historically proven antidote to the world’s most intractable ethnic and territorial conflicts. Rejecting the centralising legacies of both Keynesian macro-management and Marxist state planning, superfederalism deliberately strips national capitals of fiscal, legislative, and cultural power and returns it to historic regions and peoples through two complementary mechanisms: (1) Foral-style extreme fiscal and political autonomy (as preserved for five centuries in the Basque Country and Navarra), and (2) pragmatic liberal concessions such as separate national sports teams (as practised by Scotland, Wales, and Northern Ireland within the United Kingdom). Using comparative economic and demographic data from all six inhabited continents, the analysis demonstrates that regions granted such autonomy consistently outperform neighbouring areas with identical geography and resources but subjected to centralised control. Concrete, time-bound superfederal blueprints are offered for Ukraine (Donbass/Crimea), China (Tibet, Xinjiang, Hong Kong, Taiwan), Palestine–Jordan, and more than a dozen additional plurinational states. The evidence shows that wherever historic liberties have been restored, prosperity and peace follow; wherever twentieth-century centralising doctrines have prevailed, resentment and violence persist. Superfederalism is therefore presented not as utopian theory but as the only institutional arrangement empirically validated to heal divided nations without forced assimilation or violent partition.

Introduction

In an age of escalating wars, frozen conflicts, and separatist explosions, the root cause is almost always the same: excessive concentration of power in distant national capitals. This article proposes “superfederalism”—an extreme form of federalism that deliberately strips the central state of almost all fiscal, legislative, and cultural authority—as the most realistic way to end violence and create lasting peace. Far from relying on the centralising doctrines of mainstream Keynesian economics or Marxist state planning, superfederalism explicitly rejects them. It draws instead on centuries-old traditions of local liberty, proven by the extraordinary success of Spain’s Foral Rights in the Basque Country and Navarra, to show that even the most bitter enemies of today could live in prosperity tomorrow—if only the centre would let go. By combining Foral-style fiscal autonomy with pragmatic allowances for regional national teams in global sports—as Scotland and Wales enjoy within the United Kingdom—superfederalism lowers social pressures, diffuses ethnic "karmas," and transforms tensions into healthy competition.

Objectives

The purpose of this proposal is fourfold:

1. To demonstrate, using hard economic data, that extreme regional autonomy produces far superior outcomes than centralised governance, even when geography and climate are identical;
   (2) To argue explicitly against the centralising tendencies of both Keynesian demand-management and Marxist state ownership, showing that their intellectual legacy has fuelled modern super-statism and therefore prolonged conflicts;
   (3) To offer concrete, time-limited superfederal blueprints for Ukraine’s east, China’s periphery, and the Palestinian territories;

   
   (4) To extend the model to other multilingual, multi-ethnic states currently torn by violence (Iraq, Iran, Syria, Morocco, Algeria)—and now, across all continents, showcasing plurinational "super states" where superfederalism could unlock prosperity and peace.

   Methodology

   This study combines four complementary methodological approaches:Historical-institutional analysis

   Examination of the Foral Rights (Fueros/Foruak) of the Basque Country and Navarra from the medieval period to the present Economic Agreement (Concierto Económico), using primary charter texts and secondary literature (Zubiri, 2021; BBVA Research, 2022) to establish the causal link between sustained fiscal autonomy and superior economic performance.

   Comparative regional economics

   Systematic paired comparisons of regions with near-identical geography, climate, and resource endowments but differing degrees of fiscal and political autonomy. Data sources include official statistical offices (INE Spain, Statistics Canada, Stats SA, BPS Indonesia, etc.), Eurostat, World Bank, IMF, and national economic surveys for 2023–2025. Key indicators: GDP per capita (PPS where available), unemployment rate, poverty rate, and public investment efficiency.

   Plurinational case selection

   Purposeful selection of contemporary conflict or tension zones within formally unitary or weakly federal states on all six inhabited continents (Europe, Asia, Africa, North America, South America, Oceania). Cases were chosen according to three criteria: (a) presence of distinct historic nations or large ethnic minorities seeking greater autonomy; (b) evidence of economic underperformance attributable to central redistribution or discrimination; (c) feasibility of applying either the Basque/Navarra Foral model, the UK devolved-nations sports model, or both.Policy design through analogy and extrapolationFor each case, the proven institutional templates of (i) the Basque Economic Agreement and (ii) the United Kingdom’s asymmetrical devolution-with-separate-sporting-representation are adapted to local legal, demographic, and geopolitical conditions. Where direct precedent is absent, 20-year transitional periods with terminal referenda are proposed to reduce perceived zero-sum risk (inspired by successful deferred-choice models in Northern Ireland and South Tyrol).

   All economic data are cited at the most recent reliable year (2023–2025), and demographic figures are drawn from the latest national censuses or official mid-year estimates. No primary data collection was conducted; the contribution lies in synthesis, comparative institutional analysis, and politically feasible policy transfer from empirically successful historical cases to contemporary crises.

   Why Keynesian and Marxist Traditions Feed Conflict

   Twentieth-century mainstream economics, dominated by Keynesian ideas, legitimised massive central-government spending, national fiscal transfers, and uniform regulatory frameworks (Keynes, 1936; Crotty, 2019). Marxist theory went further, celebrating the abolition of “bourgeois” regional privileges and the creation of a single, omnipotent proletarian state (Marx, 1848; Mattick, 1955). Both traditions—whatever their differences—justified the destruction of historic local liberties and the concentration of tax and legislative power in the capital. The result has been predictable: peripheral regions stripped of agency, forced to beg for transfers, and—when the centre refuses or discriminates—driven to rebellion. Superfederalism is the conscious antithesis: it returns power to the historic nations and regions, deliberately reversing the centralising logic that Keynes and Marx helped normalise.

   Historical Proof

   The Foral Triumph in the Basque Country and NavarraFor centuries the Basque provinces and Navarra defended their Foral Rights (Fuero in Spanish, Forua in Basque)—medieval charters that even the monarchs of Castile swore to respect. These rights survived incorporation into Spain and evolved into today’s unique fiscal autonomy: the regions collect nearly all taxes themselves and negotiate a small annual quota to Madrid. The economic divergence with neighbouring regions that lack such rights is stunning. In 2023 the Basque Country recorded a GDP per capita of €39,547 and unemployment of 7.7%. Identical rainy, mountainous northern neighbours without Foral privileges—Asturias, Cantabria, León, Burgos, Galicia—languish between €24,000 and €28,000 GDP per capita and 10–14% unemployment (BBVA Research, 2022; Zubiri, 2021). Same soil, same rain, same Atlantic winds—radically different outcomes. The only variable is institutional: who controls the taxes and laws. Centralised Spain proves the failure of the Keynesian-Marxist inheritance; the Foral regions prove the superiority of radical decentralisation.

   Concrete Superfederal Proposals

   Ukraine: 20-Year Superfederal Status for Donbass, Donetsk, and Crimea

   Transform these territories into superfederal regions inside Ukraine for an initial 20-year period: full control of taxes, budgets, police, education, and culture; separate national sports teams (as Scotland enjoys). After twenty years, an internationally supervised referendum would decide: remain superfederal inside Ukraine, become independent bilingual states, or join a future superfederal Russia. This removes the winner-take-all logic that sustains the war and gives every side a credible, face-saving future (Keil, 2025).

   China: Rethinking the Unitary State

   Replace the current hyper-centralised system with genuine superfederal members: Tibet, Xinjiang/Uyghur region, Hong Kong, and Taiwan would each gain complete fiscal and legislative autonomy, their own legal systems, currencies if desired, and independent Olympic and FIFA teams. A slimmed-down federal centre in Beijing would handle only defence and foreign affairs. This would directly contradict the centralising legacy of both Maoist Marxism and post-1978 state capitalism, offering minorities the self-rule that Beijing has always denied them (Zheng, 2023; Yu & Kwan, 2025).

   Palestine–Jordan: The United Kingdom of Jordan

   Reunite the West Bank (and later Gaza) with Jordan as a fully superfederal Palestinian region inside a rebranded “United Kingdom of Jordan.” Palestinians would control taxation, education, police, and field their own international sports teams, while Jordan retains defence and diplomacy—exactly the British model. This revives King Hussein’s 1972 federation plan and offers a dignified third way between deadlock and annexation (Katz, 2018).

   Further Applications

• Iraq: Balanced superfederal regions for Kurds, Sunni Arabs, and Shia Arabs, ending Baghdad’s suffocating dominance (Hale et al., 2015).

• Iran: Genuine autonomy for Kurdish, Baloch, Arab, and Azeri provinces (Ahmadi, 2018).

• Syria: Recognised superfederal cantons for Kurds, Alawites, Druze, and Sunni Arabs (Jeffrey, 2025).

• Morocco and Algeria: Full fiscal and cultural autonomy for Amazigh/Berber regions (Maddy-Weitzman, 2013).

Global Use Cases: Superfederalism for Plurinational Super States Across Continents

Superfederalism's dual pillars—Foral fiscal liberties and sports-team pragmatism—extend seamlessly to plurinational states worldwide. By granting regions tax sovereignty and international athletic representation, nations can vent cultural pressures without fracturing. Below, we apply this to diverse continents, using 2024-2025 data to contrast candidate "Foral regions" with centralised peers, revealing autonomy's untapped potential.Europe: The United Kingdom—Scotland and Wales as Foral Prototypes

Scotland (population 5.55 million) exemplifies superfederalism's sports model, fielding teams in FIFA and rugby while enjoying devolved powers (National Records of Scotland, 2025; Scotland's Census, 2025). Economically, Scotland's 2024 GDP growth of 1.1% outpaced the UK's 0.9%, with unemployment steady at 4.4% versus England's 4.1% (Scottish Government, 2025; ONS, 2025). Yet full Foral tax control could bridge its £34,000 per capita GDP gap with London's £60,000, mirroring Basque outperformance. Wales (3.1 million) could gain similar liberties, slashing its 5.7% unemployment (Statista, 2025) and easing Celtic tensions.

In Belgium, Flanders (6.8 million) already thrives with partial autonomy: 2024 GDP per capita at €47,300 (PPS) dwarfs Wallonia's €33,400, despite shared geography (Vlaamse Overheid, 2025; Statbel, 2025). Superfederalism would formalise Flemish tax sovereignty and Olympic teams, reducing linguistic strife (Deschouwer, 2022).

North America: Canada—Quebec as a Bilingual Foral Beacon

Quebec (8.7 million) chafes under Ottawa's centralism, yet its 1.2% real per-capita GDP growth (2023-24) edges Ontario's 0.7%, though absolute per capita lags at CAD 55,000 versus Ontario's CAD 65,000 (Fraser Institute, 2024; Statistics Canada, 2025). Unemployment hovers at 6.0% in both, but Quebec's cultural policies boost retention (Institut de la statistique du Québec, 2025). Elevate Quebec to Foral status with full taxation and NHL-style international teams (e.g., IIHF), diluting separatism while enriching francophone identity (Béland & Lecours, 2023).

Asia: India—Kashmir and Northeast as Autonomous Enclaves

Jammu & Kashmir (12.5 million) suffers Delhi's overreach, with 2024 unemployment at 6.1% (down from 17% peak) and projected 7.06% growth—yet per capita GDP trails India's $2,500 national average by 20% (J&K Economic Survey, 2025; RBI, 2025). Northeast states like Nagaland (2.2 million) mirror this lag, with 5% unemployment versus India's 3.2% (NITI Aayog, 2024). Superfederalism grants Foral budgets for resource-rich hills and cricket teams in global tournaments, easing insurgencies (Varshney, 2021; Chaube, 2023).

In Indonesia (283 million total; Java 57% GDP share), Papua (5.4 million) lags with per capita GDP under $3,000 versus Java's $7,000, fueling separatism (BPS Indonesia, 2025; World Bank, 2025). Foral autonomy over mining taxes and Pacific Games teams could triple Papuan output, balancing Javanese dominance (Davidson, 2024).

South America: Bolivia—A Plurinational Foral Archipelago

Bolivia (12.3 million) enshrines plurinationalism constitutionally, yet indigenous departments like Potosí yield $2,500 per capita GDP versus urban La Paz's $5,000 (INE Bolivia, 2025; World Bank, 2025). National per capita: $3,821. Superfederalism would devolves mining royalties Foral-style to departments, plus Andean Games teams, empowering 62% self-identified indigenous without secession (Albro, 2022; Canessa, 2023).

Africa: Nigeria—Ethnic Federacies for Hausa, Yoruba, Igbo

Nigeria (232 million) fractures along lines where southern Yoruba Lagos boasts $10,000 per capita GDP, dwarfing northern Hausa states' $1,500 amid 40% poverty (NBS Nigeria, 2025; World Bank, 2025). Unemployment: 5% south, 10% north. Superfederal regions with Foral oil/agriculture taxes and Africa Cup squads per ethnicity would redistribute equitably, quelling Biafran echoes (Suberu, 2021; Falola, 2024).

South Africa's provinces (63 million total) highlight divides: Western Cape (7.6 million) hits R132,000 per capita GDP with 6% unemployment, versus Eastern Cape's (7.2 million) R40,000 and 35% (Stats SA, 2025; SARB, 2025). Foral devolution to Xhosa/Zulu areas, plus rugby teams, heals apartheid scars (Seekings, 2023; Butler, 2024).

Oceania: Australia—Indigenous Foral Territories

Australia (26.8 million) marginalises First Nations (3.8% Aboriginal/Torres Strait Islander), concentrated in Northern Territory (0.25 million; 30% indigenous) with $60,000 per capita GDP but 20% unemployment—versus national $65,000 and 4% (ABS, 2025; Productivity Commission, 2024). Superfederal Torres Strait or Yolngu zones with land-tax autonomy and Indigenous AFL teams foster self-rule, closing the 8-year life expectancy gap (Walter, 2022; Moreton-Robinson, 2023).

Conclusion

The evidence could be overwhelming: wherever historic liberties and fiscal powers have been preserved or restored—as in the Basque Country and Navarra—prosperity and peace follow. Wherever Keynesian or Marxist centralisation has been imposed, resentment, poverty, and violence have been the result. Superfederalism is not a compromise; it is a deliberate, radical reversal of the twentieth-century obsession with the all-powerful state. By stripping the centre of the powers it has so catastrophically abused, and returning them to the regions and peoples who actually live the consequences—bolstered by sports freedoms that vent cultural steam—superfederalism offers the only proven path to heal a fractured planet. The Foral regions of Spain have shown the way for five hundred years. From Scottish pitches to Papuan ports, it is time the rest of the world followed.

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