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What is a federal system and what are its merits?

A federal system is one in which power is shared between a national government and lower levels of governments, typically called state or provincial governments.  In such a system, a constitution sets out what powers each level of government has and neither level can simply take power from the other level.  The main merits of such a system are that it A) allows a diverse country to stay together, B) enables people in each state or province to feel that they rule themselves, and C) provides an opportunity for states and provinces to operate as “laboratories.”


Political scientists generally say there are three types of government.  These are unitary, confederal, and federal.  In a unitary system, the national government has all the power and the states have no powers or rights except those (if any) that the national government allows them to have.  In a confederal system, the provincial governments have all the power.  The national government only has such powers as the provinces allow it.  A federal system is in between, with both levels of government enjoying some powers.


A federal system is good because it allows a diverse country to stay together.  Imagine a country with regions dominated by different ethnic groups, religions, or ideologies.  Such a country would have a hard time staying together in a unitary system.  In a unitary system, the national government would impose policies on all the regions, which would surely anger some regions.  In a federal system, each state or province can rule itself to some degree, making rules that suit its own people.


Relatedly, a federal system allows people in a given state or province to feel that they rule themselves.  They do not have to feel that their lives are dominated by a government far away from them that does not understand their needs and attitudes.  Instead, they are governed by a local government over which they have more influence.  This allows them to feel that they are more in control of their own government and their own lives.


Finally, a federal system allows for experimentation.  Imagine that a country is trying to combat poverty.  In a unitary system, there will be one antipoverty program set by the national government.  By contrast, in a federal system, each state or province can have its own scheme.  Researchers can look at the various governments’ schemes and determine which works best.  The federal system allows for many different states and provinces, each trying out separate ideas.  This eventually helps the country as a whole find the best solutions to various problems.


For these reasons, political scientists generally agree that a federal system is the best system in any country that is large and/or that has geographical regions whose populations are very different in some important way. 

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