Federalism as social structure: A systematic literature review on power, institutions and identity in multi-ethnic societies

The first wave of federalism emerged between the late eighteenth and early twentieth centuries, marked by the formation of new federations among previously sovereign states. Federalism expanded significantly throughout the twentieth century and into the twenty-first century, with an increasing number of countries adopting federal systems. Currently, approximately 25 countries representing about 40 per cent of the world’s population uses federal governance. Generally, large countries such as Russia, the United States, Australia, Pakistan, Canada, Germany, India, Brazil, and Nigeria employ federal structures in their systems of governance. This is because federalism allows subnational governments to manage and respond more effectively to local demands and issues. Meanwhile, smaller countries such as Comoros and Saint Kitts and Nevis also adopt federal arrangements, although they differ considerably in terms of the number of constituent units, the degree of centralisation, constitutional functions and the division of taxation powers.  Using a systematic literature review (SLR) methodology, this study chooses scholarly articles published between 2015 and 2025 by applying predetermined inclusion and exclusion criteria. Using a revised PRISMA flow process, this study examined the full texts, abstracts, and titles of 21 peer-reviewed publications. This approach made it possible to evaluate current scholarly discourse on federalism in an organised and comprehensive manner by offering recommendations for further sociological study. Four major thematic dimensions emerged from the analysis: (i) power distribution and institutional structures; (ii) identity politics and ethnic accommodation; (iii) fiscal federalism and intergovernmental relations, and (iv) governance practices, legal frameworks, and multilevel coordination. These themes show that federalism is a dynamic sociological mechanism and legal-institutional arrangement. It mediates intergovernmental relations, combines moral legitimacy with legal authority and shapes governance outcomes that can be either inclusive or exclusive.