Domestic Policy and Government: Each state (city) has its own elected leader, who has complete freedom in the setup of the state's government, domestic policies, etc. The federal government will not interfere, they only require that the leader be elected every 5 years with a 2 term limit unless they get an overwhelming majority vote (75%+). In addition, the federal government has a mandatory 3 year military enlistment for all people above 18. 

Federal Government: The federal government is made up of a council of elected leaders from each state. At the head of the council is Aisat, who has the final say in all decisions. The state council members are merely there to advise the Head of Council, assist in his duties, and speak the concerns of each state. Aisat is not elected and has absolute power over the federal government and its foreign affairs, military, and federally-run projects.

Foreign Policy: Based off that of the alliance Aisatia is in, Event Horizon. What they say goes. As of now, we are pro-militarization and openly raid other countries. 

Economics: As stated before, each state has their own government and therefore can create their own economic policies. The federal government, however, relies mainly on military campaigns, raiding and looting, and profitable trade with other nations in order to raise funds. They levy a small tax on each state (always under 5% state GDP, depending on the needs of the federal goverment at the time). When the government has excess funds, it is publicly announced and distributed among the states, who can decide what to do with it. 

Ideally, Aisatia should be a nation that is good for the people and the nation. People with similar ideals should live in the same state, and elect leaders who satisfy their ideals. States are created on the basis of similar geography, cultures of people, weather/climate, etc. Therefore, the people shall be happy with whatever ruler they choose, and there should be minimal conflict between groups as everyone in a state should be similar to each other. In terms of the federal state, a strong head of state can turn the nation into a powerhouse respected by the international community. They can go on military campaigns and focus on the country's greatness without worrying about the happiness of the population, and use the rich rewards to distribute back to the population as well as the government, keeping federal taxes low.