What government system allows for local governance but derives power from a central authority?

The federal system is characterized by a division of power between a central authority and various regional or local governments. In this structure, the central government holds significant authority but delegates specific powers to state or local governments. This allows for local governance, enabling regions to address their own needs and preferences while still being part of a larger national framework.

This system facilitates a balance where both levels of government can operate effectively, making decisions that pertain directly to their respective domains. For instance, local governments may manage schools, transportation, and public safety, while the central government oversees defense, foreign affairs, and national policies. This separation is meant to optimize governance by promoting responsiveness to local issues while maintaining the unity and coherence of a single nation.

In contrast, other systems like a confederation typically grant more power to individual states with a relatively weaker central authority, often leading to challenges in cooperation and governance. A unitary system centralizes power more explicitly in the national government, which can dissolve or alter local governments as it sees fit. Lastly, a socialist system primarily pertains to economic organization and does not specifically address the structural relationship between local and central governance in the same way a federal system does.