Federalism and federal systems

The concept of federalism is understood here as an idea and a constitutional principle for designing a multi-level polity. Federalism limits political power and integrates diverse political communities. It requires a constitutionally guaranteed division of authority between a federal government and constituent governments, and procedures of intergovernmental coordination to cope with interdependence, fiscal disparities or power imbalances. Federal institutions can be designed in various ways, and the ensemble of a multi-level architecture (division of authority, intergovernmental relations, the representation of subnational governments or communities at the federal level) deeply imprint a polity’s federal character. Each of those institutional features is discussed in detail, elucidating design options and their corresponding systematic consequences. However, there is no single best way to organize federal systems. Rather, the complexity of the institutional structure produces a perennial dynamic and necessitates continual adaption to safeguard the long-term stability of the system.