
Most of the multicultural nations are federal by polity and character though there are cultural linguistic and customatic differences. Generally the mono culture in the people of a particular territory leads to the emergence of federal character. it is not just the diversities which ensures federal character, but in spite of socio cultural differences the groups are whole heartedly unified for a Nobel collective purpose. We find two under-currents namely a force to keep the society united and to keep the society informed about the diversity. Thus, a federal nation needs to balance unity and diversity on a oscillating slippery plane. Here a national government that consists of regional government need to be co-ordinated for smooth run. The interdependence between national and regional governments facilitates fully empowered central ruling setup. Federal government is defined and discussed from the back drop of centralizing and non-centralizing forces. Whether it is classical or contemporary type, the federal concept revolves around division of power between national and regional governments. Federalism specifies three important issues like perfect demarcation of powers, need of autonomy for both central and regional government, co-ordination between central and regional government. In spite of perfect and non-over-lapping division of powers, national concern and maintenance of uniform standards automatically makes the national government a dominant force naturally. Federal government is a pre-requisite to achieve socio-economic development which necessitates planned and well co-ordinated interventions. Hence, third world countries have pragmatically different shades of federal government. The concept of welfare state made it obligatory for national government to ensure balanced regional development and maintenance of uniform standards simultaneously. This in turn necessitates sufficient and judicious legislative and financial powers to direct and monitor regional governments. Strong federalism constituted by dominant empowered national government and autonomous regional governments. The classical federalism is the route of many third world countries that are federal in character. From the analysis it is crystal clear that, the two tier government system and judicious autonomy of these two governments are the essential characteristics of any federal government. A careful management of autonomy of regional government and the realization of interdependence between national and regional government by both is the main essence of classical federalism.