Confederation:

A confederation may be defined as a group or association of two or more Sovereign States

which have permanently given up part of their liberty for some specific aims and objects, such
as defence.
A confederation is stronger than an alliance between sovereign States, but weaker than a federal
union. A confederation does not put an end to the sovereignty of the confederated States, as a
federation does.
German words explain the distinction between a confederation and a federation very clearly. A
federation is a Bundes-stant, a united State, while a confederation is a Staalenbund te, the union
of States.
1. A confederation is a league of sovereign States while a federation is a single
sovereign State.

In a federation the former sovereign States become integral parts or component units of a new
State, while there is no such integration in a confederation. The confederated States retain their
identity and separate entity. The confederated States retain their sovereignties, while the
federating States renounce their individual Sovereignties when they enter into a federal union.

2. Confederation is based on contract, and federation on constitution.

In confederation States enter into an alliance based on an agreement, but the federated States
are united by a constitution. It means that any one of the confederated States can withdraw
from the alliance, but none of the federated units can do so, as they have lost their sovereign
entity in a new union. In other words, confederation recognises the right of secession, but a
federation does not. Withdrawal from a confederation is legal, while from a federation it is
revolutionary.

3. A confederation has no central government.

A confederation has only a committee or congress of delegates from various confederated

States, who meet to vote by States and under instructions from their governments. Their
decisions are not laws but only resolutions. In a federation, there is a central government with
its own powers, organisation and machinery, consisting of representatives from various
component units, who make laws, and adopt a policy, which are executed by its own officials
over the whole country.

4. Citizenship.
In a confederation, the citizens of the confederate States retain their citizenship. They do not
become citizens of the confederation, but in a federation, they become the citizens of the federal
State. Hence in a confederation, they obey only the laws of their own State and not of the
confederation, while in al federation they obey the laws of the central government also.