BACKGROUND OF FEDERALISM

Federalism is the mixed or compound mode of government, combining a general government

(the central or 'federal' government) with regional governments (provincial, state, cantonal,
territorial or other sub-unit governments) in a single political system.

According to Merriam-Webster Dictionary, federalism is a political system that binds a group of

states into a larger, non-centralized, superior state while allowing them to maintain their own
political identities. Certain characteristics and principles are common to all successful federal
systems: a written constitution or basic law stipulating the distribution of powers; diffusion of
power among the constituent elements, which are substantially self-sustaining; and territorial
divisions to ensure neutrality and equality in the representation of various groups and interests.

It can thus be defined as a form of government in which there is a division of powers between
two levels of government of equal status. The power is divided or shared between the central
government and local state governments.

Federalism is sometimes viewed as in the context of international negotiation as "the best system
for integrating diverse nations, ethnic groups, or combatant parties, all of whom may have cause
to fear control by an overly powerful center. However, in some countries, those skeptical of
federal prescriptions believe that increased regional autonomy is likely to lead to secession or
dissolution of the nation.

In the US, the national government has sole power or authority to print money, declare war,
maintain the armed forces, enter into treaties with foreign governments, regulate interstates and
international trade, and establish a postal system.

A power that states have, meanwhile, is to establish their own local governments. The power to
tax, regulate business, set up courts, and build and maintain roads, among others, are shared by
the national government and the local state government.