Federations, such as Greek city states, Hansa and the Dutch republic, have been generally much more prosperous than the cotemporary societies with centralized governments. However, they tend to be vulnerable to external aggression. For example, during the first Anglo-Dutch war the Dutch republic possessed much bigger economic resources than the post-civil war England. The Dutch still lost, as its inland provinces were not fully committed to the fight and the English government was more effective in mobilizing its resources. There are similar examples in the conflicts between the French kingdom and cities of Northern Italy, Greek cities and the Macedonian kingdom, Hansa and the kingdom of Denmark.

Federations are also vulnerable to their own central governments which over time concentrate more and more powers in their own hands. Perhaps the most difficult question is how can the centralized government be made to give up its powers in favor of local authorities. Do you see a realistic way of this happening in the UK?