# What are the essential components of Federalism?

Federalism has three essential components:

• Formation of states and territorialisation of federal-local administration in such a manner as to promote closer contact between people and government;
• Distribution of federal powers on a non-centralised basis; and
• Creation of the institutions of shared rule.

The first, component, essentially means the creation of the institutions of ‘self-rule’. The institutions of self-rule at the macro level means the creation of states, and at the micro-level, it refers to the institutions of local self-governance. States or regional units of administration are usually formed on the basis of relative continuity or discontinuity of spatial interaction patterns between people, culture and territory. This, in other words, means the formation of states on the principle of “homogeneity with viability”.