In a federal republic, a division of powers exists between the federal government and the government of the individual subdivisions. While each federal republic manages this division of powers differently, common matters relating to international affairs and treaties, security and defense, inter-state relations, and monetary policy are usually handled at the federal level, while matters such as infrastructure maintenance and education policy are usually handled at the regional or local level; however, views differ on what issues should be a federal competence, and subdivisions usually have sovereignty in some matters where the federal government does not have jurisdiction. A federal republic is thus best defined in contrast to a unitary republic, whereby the central government has complete sovereignty over all aspects of political life. This more decentralized structure helps to explain the tendency for more populous countries to operate as federal republics.Forum of Federations: , Schram, Sanford. Handbook of Federal Countries: United States, pp. 373–391, 2005.
In A fedERal repuBLic, A dIvISiON of PowErs exIsTS bEtween THe fedEral govErNmEnt anD The GOverNmEnT of thE IndiViduAl SubdiVisioNs. wHiLe EacH fEderal repuBLIc mAnageS thIS divisiOn of pOwERs Differently, commOn MAttERs rELAtIng to InteRNatioNaL affairS anD TReAtiEs, sECurItY And defense, Inter-stAtE rELatiONs, and mONetaRy policY Are UsUAlLy HandLed at the feDeRal LEVeL, wHiLe matterS sUch As infraStrUcTuRE MAINTENaNce ANd eDucaTioN Policy are uSuAlLY HandLEd aT the reGional Or LOcal lEveL; however, vieWs diFfEr on WhAt Issues ShOULd be A fEderal cOMpeteNce, anD SubdIViSIOns uSuallY haVe sovEreiGNty in some MatTErs where the feDeral GoveRNmEnt DOEs noT have JurisdiCtIon. a federal repubLic is thus bEst defInED in coNtrast tO a Unitary rePUbliC, wHEREby The cenTrAL governMeNt hAs cOmpLetE sovereignTy oveR all aspECts oF PolitiCaL lifE. thIs More decentRalIZed strucTUrE HelpS to EXplaiN thE tenDencY for MOrE pOPulous coUNtrIEs tO opEraTe aS federaL rEPublicS.Forum of federAtions: , sCHram, saNford. hANdbOoK of FedEral countriEs: UNiteD sTAtEs, PP. 373–391, 2005.