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Federal system and unitary system difference:
In a federal system, there are sub-national units with legislative power, but national law takes precedence. Federal systems (or federations) are more common than confederal governments today.
Ex: The USA is federal, as is Canada. Germany is federal, and Russia is a rather centralized federation. Federal systems differ in how much power they give to the federal, as opposed to the regional, governments, but they are all alike in that some powers are reserved to each level of government in a balancing act.
In a unitary system, there are no sub-national units that have legislative power; all law is national. In a unitary government, power is almost entirely centralized in a national government. Power devolves to local governments only for the sake of convenience (such as garbage collection times or issuing parking tickets). Any local governments that exist hold power only with permission from the national government, and they cannot ever conflict with national policy. Thus, in the UK, the counties into which England is divided have their own bureaucracies and regulations, but only in areas where the national Parliament has given them permission to set up those systems. In smaller countries, there may be no regional governments at all; instead, there would a national government, and the next level would be local councils, who could set city policies, but only if those policies never conflicted with existing national law.
Ex: Unitary government is especially common in smaller states, but the most populous country in the world, China, is also a unitary government.
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