What does federalism refer to?

Federalism refers specifically to the division of power between a central government and constituent governments, such as state or provincial authorities. This system allows for multiple layers of governance, where each level has its own responsibilities and powers. The central government typically handles national issues like defense, foreign affairs, and trade, while constituent governments manage more localized concerns, such as education, transportation, and law enforcement.

This structure fosters a balance of power, ensuring that neither the central nor the state governments hold absolute authority over the other, which can enhance democratic participation and protect the rights of individuals by allowing for representation at both levels. Consequently, such an arrangement is fundamental to the functioning of federal systems, like that of the United States, where states retain significant authority even as they remain unified under a national government.