Advantages of a Confederal Government

Confederacies are a unified body of individual states or provincial units. These

peripheral units are stronger than the union. They coexist, but maintain their
separate identities. Each region, canton, or province is considered equal, and has a
say in shaping the nature of central authority.

These peripheral units are stronger than the union. They coexist, but maintain their
separate identities. Each region, canton, or province is considered equal, and has a
say in shaping the nature of central authority.

Decentralization of Power: 

States being the decision makers, this governance is completely contrary to the
unitary form of government. Thus, legislation and execution is divided among the
provincial and local governments. Local governance minimizes the growth of the
center, and reduces the risk of it turning into a dominant union or tyranny.

Democratic Republics, particularly, are known for the principle of sovereignty. In

a confederation, the citizenry is focused more; their needs are better addressed.
Thus, the concept of ‘citizens being the real sovereign of a nation’ is realized in
this type of government.

Cooperation: 

Every state is an independent and sovereign unit of the federation. Agreement

among these equals makes decisions over common issues easier. The flow of
power is from the periphery to the center, which ultimately rests on the principle of
cooperation among the confederates, at least over common concerns.
Disadvantages of a Confederal Government

If the central government derives its authority from the states, it is bound to
become weak. The member states have majority of the legislative powers, thus,
leaving the center with no right to make or enforce laws. Also, significant subjects
of national interest, like international treaties, issue of currency, or maintenance of
an army may not be handled by the center.

Disadvantages

 Confederal systems of government tend to easily collapse, since there is the

option to secede if so desired. 
 A disadvantage of a confederacy is that it encourages disunity since
component units retain a considerable amount of power and take care of
their own foreign policy.
 Since component units are given more powers than the central government,
this makes the central government somewhat weak.

Financial Powers: 

A major drawback of the confederate government style is that, the center does not
enjoy any power regarding taxation. Levying of or appropriation of taxes in order
to regulate the national revenue model is not the function of the central
government. Regulation of the monetary system, budgeting, and monitoring the
growth of the nation does not follow a uniform policy.

Identities of states or provinces as separate units encourages a tussle for political

power. Also, secessionist tendencies are built up easily, leading to an internal
struggle between the confederates. The relations between the Union and the states,
and among the states, are responsible for creating such fault lines in the
confederation.

Sustenance: 

Confederacies are not observed as a popular form of government across the world.
One reason being that, this type of government is not a long-lasting one. Though
they are seen to be the most decentralized forms, there arises the question of their
sustenance. Confederation is also referred to as a transformation period (as
countries are seen transforming from a confederation to a federation).