What does "federalism" refer to in government structure?

Federalism refers to a unique system of governance in which power is divided and shared between a central national government and various state or regional governments. This structure allows for multiple levels of authority, enabling each to govern within its own sphere of responsibilities. In a federal system, both the national government and the state governments have the authority to create and enforce laws, manage resources, and operate independently within their jurisdiction, except where their powers overlap.

Federalism is designed to balance the need for a strong national framework with the benefits of local governance, allowing states to address their specific needs and interests while still adhering to national standards and policies. This division of powers not only promotes political participation at different levels but also helps protect individual freedoms by preventing any one entity from holding too much control over the citizens.