The study analyzes and evaluates the nature and major trends of the federal system in the United States (US) in the early stage of its history. The underlying assumption is that the historical experiences and dynamics of the political system have a profound impact on the working of present day federal system in the US. Federalism aims at creating a system of diverse political and economic management by a conscious decision to achieve shared political objectives. The federation provides for the division of authority of state between a federal government and smaller administrative units. It establishes a mechanism for creating a shared authority but at the same time regional authorities function within their defined parameters. It combines two diverse political trends – the desire to preserve socio-political and ethnic identity and exclusive domain of independent action and an urge for cooperation and collaboration to achieve mutually agreed and shared objectives. It is best suited to heterogeneous societies.
