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Center for the Study of Federalism Federalism shapes the ways in which nearly half the worlds people govern themselvesfrom citizen activism and representation to public policy formation innovation and diffusion. Modern federalism invented by the American founders provides a political means to create unity and protect diversity national identity and personal liberty. Because federalism profoundly shapes American politics and policy making understanding federalism equips students teachers and citizens with tools to more accurately perceive and interpret political life and policy outcomes. Here you will find curated resources on all facets of American federalism and the perennial problems of how a people best provide divide separate share and limit political power.