Confederation Explained: Key Differences & Examples

A confederation is an association of sovereign states linked by a central authority for purposes of common action, but in which the individual states retain a great deal of independence. It differs from a federation, since the central authority of a confederation generally acts according to the wishes of the component states. This distinction is significant in explaining why particular unions are able to cooperate in matters like war, peace, and foreign affairs, while still remaining separate countries. This distinction is also significant in explaining why these unions may struggle to function, because the central government lacks the power to tax, raise an army, or enforce its rulings.

Confederation Definition In Government

A confederation is a political association of independent states, by a treaty for acting in common action in certain specified subjects, each State retaining its individuality. The centre may act on certain common subjects, or represent common interests, or exercise functions which have been delegated to it by the Governments, but it does not usually exercise the right of governing individuals directly as a central Government.

However, there is a difference between a Government alliance and a single Government. A Government alliance can be restricted in scope and can last for a limited period, e.g., a League of Nations Alliance for a particular purpose relating to national security. But a single Government exercises legislative authority over individuals within a country and over its territory. The confederal system mentioned here is somewhere in between, closer to a formalized treaty relationship than to a unitary State.

The important question, however, is who has the last say when there is a dispute between the common organ and the members of the confederation?

How Confederations Work In Practice

Confederations work via delegation rather than absorption. Member states maintain their own sovereignty and delegate specific authorities to a central body, which are typically set out in a founding document, treaty or constitution. If the central authority wishes to exercise powers beyond those delegated, then it usually requires further consent.

So how does this actually work in practice? The central body relies on the member states for assistance. One of the classic confederation instances is the American government during the early period of the republic, where the Congress could deal with national issues but lacked powers subsequently given to the federal government. Some decisions may require consent of the member states, so independence is retained, but action is limited where interests diverge.

Shared Powers And Limited Central Authority

The central authority is usually best at dealing with issues that are better dealt with collectively, such as national defence, foreign relations, borders, commerce or currency. It may be the confederation, but only up to the limit of its delegated powers.

One useful confederation instance is that the central council may be able to make a treaty, but cannot raise taxes to fund a military force without the consent of the states it represents. This prevents misuse, but it also limits the ability to act swiftly in response to shared interests.

Why States Choose A Loose Confederation

States may choose a confederation if they wish to gain the advantages of cooperation without giving up their autonomy. A confederation can enable smaller or warier states to co-ordinate defence, commerce or foreign policy without being subject to a single national authority.

And here is something most people do not understand. This type of government results as much from mistrust as from administrative convenience. The states may accept the need for joint action, but also worry that a central government may interfere with their legislation, culture, financial system or military.

Confederation Vs. Federation

The confederations retain most sovereignty with the states while in a federation the central government exercises power, according to the Constitution, directly on the citizens, as occurred when the United States replaced the confederation with a federal republic in 1789.

Confederation vs. federation: sovereignty and central power

This table shows how the advantages and disadvantages of confederations and federations relate to their ideal environments, where the actual sovereignty lies, what their main benefits are, and their main problems. Examples come from the U.S., the EU, and Switzerland.

Historical Confederation Examples

To better understand how loosely defined confederation are, it’s useful to look at some historical instances that sought to balance independence and unity.

The Articles of Confederation served as the first constitution for the United States, but the United States Congress was the only shared institution and it had no power to tax or enforce laws.
The Swiss Confederacy began as a confederation of towns and cantons that worked together for mutual defense and political survival, until changes to the Swiss constitution made it something different.
The German Confederation brought German states together under a common diplomatic umbrella after the Napoleonic wars, without actually unifying them into one country.
The Iroquois Confederacy established a stable political union among various nations, showing how cooperation and local independence could work in practice even outside of the European constitutional tradition.

The Articles Of Confederation As A Confederation Example

The earliest United States tends to be the go-to example for this search query because it demonstrates both the promise and the problems with a confederal system in one familiar story. The United States Congress had the authority to perform shared duties, but that structure left it weak, especially in its inability to raise revenue.

That weakness helps explain why so many discussions of confederacies cite the shift in the United States as evidence. The U.S. Constitution replaced this earlier confederation with a stronger central government and a separate federal system.

Canadian Confederation And Why The Term Means Something Different

Canadian Confederation refers to the 1867 amalgamation of British North American colonies that became the Dominion of Canada pursuant to the Constitution Act, 1867. Here, it means nation building, not a present day dynamic where the national government is a secondary institution to independent states.

It’s worth taking a minute to understand why that matters. Canada today should not be described as following a similar structure as the original United States under its initial governing arrangement.

Strengths Of A Confederal System

One of the strengths of the Articles of Confederation is that they allow the states to cooperate without losing their independence.

It permits states to retain their sovereignty because the confederation allows them to retain their own political identity and a number of powers associated with it.
It allows states to cooperate without having to give up their sovereignty entirely. This can be helpful when states need to cooperate on matters such as defense, diplomacy, trade, or crisis management, but are unable to agree to a confederal government.
It may prevent the emergence of a central government since the central government is reliant on the states that formed it for its consent, funding, and enforcement.

Weaknesses And Common Failure Points

As opposed to the Canadian Confederation, groups that are built around a weak central authority may face similar difficulties in keeping unity when faced with the need to take action together.

Collective decision-making can become little more than advice, if the means of enforcement are insufficient. If the members of the confederation fail to comply with a directive, the central government may have no immediate means of ensuring compliance.
A lack of funding may ensue, if the confederate body is reliant upon the contributions of its member states for its funding, rather than having a steady source of revenue.
Consensus-building may prove to be cumbersome, particularly if there is a high threshold for achieving consent from the member states on matters such as national defence, taxation and international relations.
Outside influences can increase the likelihood of instability. An international crisis that demands a quick response can either result in the dissolution of the confederation, or an increase in the powers accorded to the constitution.

Key takeaways

The major difference between a confederation and a federation is that federal governments typically have authority over people. Canadian Confederation is about the history of the founding of Canada, and is not a confederal government today. It’s hard to find a modern example of a confederation because a weak central government often leads to issues with funding, enforcement, and coordination. Articles of Confederation: the early United States is the best example of a weak common government giving way to a strong constitutional government. Dominion of Canada: the name is about the history of the founding of Canada, and should be understood in that context. It is not evidence that Canada is a weak confederation today.

Frequently asked questions

What is the definition of a confederation?

A simple way to define what confederation is: “sovereign states create a central government for certain purposes, while the constituent states retain their sovereignty and legal personhood; and where the central government possesses only those powers expressly delegated by the member states.” Therefore, a confederation has less authority than a federal state, but more than simple cooperation.

What is a confederation vs. federation?

The key difference is enforcement: In a looser confederation, the member states have the final say, whereas in a federation, the central government has direct constitutional power over the people of individual states. The United States post-U.S. Constitution is a federal union. The earlier American system was far less united.

Is the United States a confederation?

The United States is not a confederation anymore because the U.S. Constitution created a federal government in which the national government had direct authority over individuals as well as the states. The prior American system was not. It gave the U.S. Congress very little power, especially with regards to taxation and enforcement.

What does confederation mean in Canada?

In Canada, it typically refers to the act of uniting multiple colonies together in 1867 to become the Dominion of Canada under the Constitution Act, 1867. This is a historical term and does not imply that Canada is currently a loose confederation of independent nations.

Why are true confederations uncommon today?

A confederal system of government is uncommon, since a weak central government usually cannot raise money to implement policies, enforce compliance, and respond quickly to conflicts when the states disagree. Many of these governments have either disbanded or turned into federations over time. Some see the European Union as the only true modern example, but we need to keep an eye on this to see if it gets more power.

Conclusion

A confederation is a union of sovereign states which have formed a common government, yet have sovereignty for most purposes. It can provide guarantees of state sovereignty and facilitate cooperation, but it can also have a lack of enforcement, a lack of funding and slow decision-making.

The early United States provides an example of why a confederacy might be attractive to countries that are wary of a central government and why it might be inadequate when the needs of the community exceed the capabilities of the central body. Canada adds a wrinkle, as the term in that country is used to describe the country’s founding but does not match a current term in political science. As information about existing unions may change with new treaties, rulings and constitutional amendments, you should check the current legal status of a given example.

Confederation Explained: Key Differences & Examples

In This Article

Confederation Definition In Government

How Confederations Work In Practice