Federalism is a political system in which power is divided between a central government and regional governments. This structure allows for different levels of government to govern concurrently, facilitating autonomy for states or provinces while allowing the national government to address issues that affect the whole country. Federalism can enhance representation and protect minority interests, but it can also lead to conflicts over jurisdiction and authority. The degree of power balance varies between countries, significantly impacting their political dynamics and policy-making processes.