In the present essay, we analyse the development of the proto-federations of the democratic city-states. We examine the political institutions and policies developed in the Achaean federation such as common defense and external policy, military organization, representative federal bodies like popular assemblies, parliament, generals as military and political commanders, federal finance ministers, etc., as well as its economic institutions and policies: common currency, federal budget and federal revenues. We offer arguments as to why the Achaean federation emerged and proved successful and finally, we offer some ideas as to how the Achaean federation would have faced a series of current global issues such as the European Union integration, global terrorism, etc.