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Federalism is a political concept in which a groupof members are bound together by covenant (Latin: foedus, covenant) with a governing representative head. The term "federalism" is also used to describe a system of the government in which sovereignty is constitutionally divided between a central governing authority and constituent political units (such as states or provinces). Federalism is a system based upon democratic rules and institutions in which the power to govern is shared between national and provincial/state governments, creating what is often called a federation. Proponents are often called federalists.

In Europe, "federalist" is sometimes used to describe those who favor a common federal government, with distributed power at regional, national and supranational levels. Most European federalists want this development to continue within the European Union. European federalism originated in post-war Europe; one of the more important initiatives was Winston Churchill's speech in Zurich in 1946.[1]

In Canada, federalism typically implies opposition to sovereigntist movements (most commonly Quebec separatism).

The governments of Argentina, Australia, Brazil, India and Mexico, among others, are also organized along federalist principles.

Federalism may encompass as few as two or three internal divisions, as is the case in Belgium or Bosnia and Herzegovina. In general, two extremes of federalism can be distinguished: at one extreme, the strong federal state is almost completely unitary, with few powers reserved for local governments; while at the other extreme, the national government may be a federal state in name only, being a confederation in actuality.

In 1999, the Government of Canada established the Forum of Federations as an international network for exchange of best practices among federal and federalizing countries. Headquartered in Ottawa, the Forum of Federations partner governments include Australia, Brazil, Canada, Ethiopia, Germany, India, Mexico, Nigeria and Switzerland.

Some Christian denominations are organized on federalist principles; in these churches this is known as ecclesiasticor theological federalism.

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