The principle of federalism in governmental structures refers to the division of powers between a central authority and regional or state governments. It allows different levels of government to exercise their powers independently while coordinating on shared responsibilities such as national defense and infrastructure. Federalism encourages local governance, enabling regions to address distinct cultural, economic, and social needs effectively. By promoting a balance between unity and diversity, federalism enhances political participation and can lead to innovations in policy-making, resulting in more tailored solutions for varied constituencies.