Which of the following accurately defines 'federalism'?

Federalism is defined as a system in which power is shared between a central (or national) government and regional (or state) governments. This structure allows for a division of authority, wherein both levels of government have their own responsibilities and can make decisions independently in certain areas. This is significant because it enables multiple layers of governance and can foster a balance of power, ensuring that neither the central nor regional authorities become too powerful.

This concept is foundational in many countries, particularly in the United States, where the federal government and the state governments operate concurrently, each with defined powers and responsibilities as outlined in a constitution. This arrangement helps accommodate the diverse needs and interests of different regions while maintaining a cohesive national policy framework.