According to lames Madison in Federalist 10 , factions.. Are worse than political parties Are a necessary evil. Help to eliminate the separation of powers. Should mitigate problems caused by inequality. Federalism is best characterized by ... Subnational governments holding legitimate sovereignty while delegating some powers (e.g. national defense) to the national government Clear delineation of legitimate authority over specific policy areas between the national and subnational governments National and subnational governments sharing legitimate political authority The national govemment holding legitimate sovereignty but allowing subnational governments some independent authority.