Federalism: Federalism is among a type of governmental system in which powers of the government are divided between the central and state/local government. It is opposite of the Unitary system. In Federalism the central and state governments are two sovereigns in their respective areas. The Central government does have some power on the state system in the implementation of federal programs and such, but that is way limited. If the machinery of the central government stops for a short time it wont have much effect on the state government.