Federalism refers to the organization of several divided polities that share and compete for power under the jurisdiction of a central government that derives its authority from a binding contract or constitution to which the polities have submitted or otherwise consented either expressly or impliedly.
The goal and effect of federalism is to disperse, diffuse, and decentralize power among competing units of government, mediate conflicts that arise between diverse groups and interests within different polities, and integrate cultural and normative variety into the governing institutions that hold different polities together in political union.
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