The concept of federalism in a political system refers to the division of powers between a central authority and regional governments. This structure allows for multiple layers of governance, promoting local autonomy while maintaining a cohesive national policy. In federal systems, certain powers are reserved for the national government, while others are managed by states or provinces. The balance of power can vary, with some systems granting more authority to regional governments, allowing for tailored policies that address local needs. Federalism is designed to enhance democratic governance by bringing government closer to the people.