The Articles of Confederation established a decentralized government in the United States, ratified in 1781. Under this framework, the national government had limited authority, primarily managing foreign affairs and defense but lacking the power to impose taxes or regulate commerce. Each state retained its sovereignty, leading to a weak central government that struggled to address financial and territorial challenges following the American Revolution. The inability to effectively coordinate between states and respond to issues such as Shays' Rebellion exemplified these limitations, ultimately prompting the formation of the Constitutional Convention in 1787 and the drafting of a stronger Constitution.