A federal system typically features a government structure that divides powers between a central authority and subnational entities, such as states or provinces. This division allows for a balance of power and autonomy in local governance, enabling regions to address their unique needs while remaining part of a unified nation. Each level of government has defined responsibilities, contributing to policy-making and administration. Such systems often promote diversity in governance styles and can enhance democratic participation by bringing government closer to the citizenry through localized decision-making.