In a confederate system of government, who holds sovereignty?

In a confederate system of government, the authority and sovereignty primarily reside with the individual states. The national government, if it exists, derives its powers from the consent of the states rather than having inherent sovereignty over them. This structure allows states to retain a significant amount of independence and autonomy, often leading to a scenario where the national government can act only within the limits set by the states.

In this context, the assertion that "the states allow what the national government permits" reflects the underlying principle of a confederation, where the states are the primary entities that grant power to the central authority. Thus, rather than a strong central government exercising control over the states, the states collectively maintain the sovereignty and dictate the extent of national government powers.

This understanding differentiates a confederate system from a federal system, where sovereignty is shared and balanced between national and state governments. Therefore, in a confederation, the operational dynamic is more about the states framing the role of the national government based on their agreement and mutual consent.