A confederation is a political association in which constituent states remain sovereign and grant a common institution only narrowly defined competences—typically defense, foreign affairs, or a customs union—while keeping control over taxation, law enforcement, and most domestic policy. The defining feature is that authority flows upward from the member states rather than downward from a national constitution, distinguishing confederations from federations, where citizens are directly bound by central law.
Historically, confederal arrangements have proven fragile because the center usually lacks the power to tax individuals, raise its own army, or enforce decisions against recalcitrant members. The United States under the Articles of Confederation (in force 1781–1789) is the textbook case: Congress could neither levy taxes nor regulate interstate commerce, prompting the Philadelphia Convention and the 1787 Constitution. The German Confederation (Deutscher Bund, 1815–1866) and the Confederate States of America (1861–1865) similarly fractured under internal strain.
A few modern states retain the label without the classical structure. Switzerland is officially the Confoederatio Helvetica, but since 1848 it has functioned as a federation with a directly binding federal constitution. Canada's 1867 unification is called "Confederation" in common usage, though the British North America Act created a federal state.
Scholars frequently debate whether the European Union is a confederation, a federation, or a sui generis entity. Its member states retain treaty-making power and the right to withdraw (exercised by the United Kingdom under Article 50 TEU, completed 31 January 2020), yet EU law has direct effect on citizens and primacy over national law—features atypical of confederations.
Key contrasts to keep in mind:
- Confederation vs. federation: locus of sovereignty (states vs. shared/central).
- Confederation vs. alliance: confederations have permanent institutions; alliances are treaty-based and issue-specific.
- Confederation vs. unitary state: degree of decentralization is extreme in the former, minimal in the latter.
Example
From 1781 to 1789, the United States operated under the Articles of Confederation, which left Congress unable to tax citizens directly and ultimately led to the 1787 Constitutional Convention.
Frequently asked questions
In a confederation, sovereignty rests with the member states and the center holds only delegated powers. In a federation, a constitution divides sovereignty between central and regional governments, and central law binds citizens directly.
Keep learning