Federalism is a political system that divides power between a central government and regional entities, allowing each level of government to function independently within its own spheres of authority. Federalism facilitates a balance where local governments can address specific regional needs while national governments manage broader issues. This division helps to prevent the concentration of power and encourages participatory governance. The complexities of federalism also mean that interactions between different levels can lead to conflicts or inefficiencies, necessitating clear constitutional frameworks to define the relationships and responsibilities of each government tier.