Abstract
Devolution has been the most notable feature of the Labour government's plan to modernize the constitution. Principal consideration is given to Wales and to events since the formation of the National Assembly, which are examined by recourse to theoretically informed analysis on territorial politics and the nature of governance. The central question concerns the extent to which the Assembly can develop an autonomous policy position. Contemporary theories argue that internal and external developments have left central government in a less powerful position, which potentially can further augment the prospects for devolution. Events prior to and after the formation of the Assembly question whether government has moved into a new phase of development. Central government still commands an extensive range of resources and powers, especially over territorial bodies. At the same time, comparative analysis shows that such institutional parameters need not remain fixed. There is institutional space within the state for these powers to be contested and that the continued significance of territory can act as the basis of such political struggle.

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