Federalism is a political system where power is divided between a central authority and smaller political units, often states or provinces. This division allows for multiple levels of government to coexist, each with its own set of responsibilities and powers. Federalism aims to balance the benefits of a strong national government with the need for regional autonomy. It encourages local governance, allowing states to address specific needs while adhering to national laws. This system can promote political participation and accountability but may also lead to conflicts between state and federal authorities over jurisdiction and policy implementation.