Federalism is a system of government in which power is divided between a central government and smaller regional governments. This division of power allows for a more efficient and effective government by allowing each level of government to specialize in certain areas. For example, the federal government is responsible for issues such as national defense and foreign policy, while state governments are responsible for issues such as education and transportation.The main purpose of federalism is to create a more effective and efficient government. By dividing power between the central government and smaller regional governments, each level of government is able to specialize in certain areas. This specialization allows for a more efficient and effective government overall.