States would function independently of each other in a confederacy.
Explanation:
The three most commonly recognized systems of government, when divided by power structure, are unitary states, federations, and confederations. Most countries in the world are unitary, there are some federations, such as the United States, and examples of pure confederations are nearly nonexistent, though some countries, such as Switzerland, refer to themselves as such.
Confederations are characterized by the absence, or near-absence, of centralization. For most intents and purposes, such a country would be a collection of closely allied independent states. By contrast, federations tend to have a central government with a considerable degree of power, and in unitary states, the government is the highest authority.