Federalism is a system of government in which political power is divided between a central (national) government and smaller governmental units. The central government is often called the federal government, and the smaller units, states or provinces. In a federal system, the division of powers is usually defined in a constitution. The United States, Canada, Australia, and Switzerland have federal systems.
Federal systems differ from unitary systems. In a unitary system, all political power legally derives from the central government. States or provinces have only the powers the central government grants them.
In a true federal system, some powers are constitutionally reserved for the states or provinces. Also in a federal system, the central government has some clearly stated powers to act directly on the people. This feature distinguishes a federal system from a loose grouping of states, commonly called a confederation. A confederation can only act through its individual member states.
See also Canada, Government of; Devolution; Government; State government; United States, Government of the; and the “Government” section of the countries mentioned in this article.
