In both federations and confederacies, you have a split in governmental power between a centralized government and localized state/provincial governments. This typically is done to afford the local governments a fairly high amount of political power relative to other governments in the world where power tends to focused in one region, or often one *city* in the nation.
There is no hard line between confederacies and federations, but *generally* confederacies will have very weak central governments that have extremely limited powers. While this ensures a high degree of self-rule among the state, it can cause problems when issues arise that can only really be handled at the central government level. As a result, confederacies have generally not performed all that well.
Two current examples of federations are the US and Germany. Two *historical* examples of confederation would be the CSA during the Civil War, as well as the pre-Constitution United States under the Articles of Confederation. One modern example is (arguably) the EU, although the EU doesn’t really refer to itself as a confederacy.
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