A political system wherein sovereign states delegate power to a central government for specific purposes. This central authority possesses limited power, and member states retain significant autonomy. The allocation of power is typically outlined in a treaty or constitution. Switzerland, historically, provides an example of this type of political organization. Prior to 1848, the Swiss cantons operated as a loose association with limited central authority.
The importance of understanding such a system lies in its ability to balance national unity with regional independence. Member states benefit from cooperation on common issues like defense or trade, while maintaining control over internal affairs. Historically, these structures have often been transitional phases, evolving toward either a more centralized federation or dissolution into independent entities. Studying these structures illuminates the complexities of governance and territorial organization in the context of varying cultural and political landscapes.