Federalism is a political system where power is divided between a central authority and constituent political units, such as states or provinces. This division influences the distribution of power and responsibilities across different levels of government. In countries following federalism, state governments often have the authority to enact laws and regulations, reflecting local needs and values. Federalism can enhance democratic participation by allowing citizens to engage with their local governments while also maintaining a cohesive national policy framework. However, it can also lead to conflicts over jurisdiction and policy implementation between different government levels.