A model of the interstellar medium (ISM) is developed that takes into accou
nt its multiphase structure, in particular the existence of a system of col
d clouds embedded in a hot intercloud medium. The model considers star form
ation, kinetic energy input into the cloud system from stars, and kinetic e
nergy loss through cloud-cloud collisions. These processes result in a char
acteristic equilibrium state of the ISM with properties that are in good ag
reement with observations. Analytical solutions for the global equilibrium
states of dwarf galaxies are derived for simplified scenarios. First result
s of three-dimensional numerical simulations are presented. The serf-regula
ted evolution within a confining dark halo leads to a model galaxy characte
rized by exponential density profiles for the gaseous and stellar component
s, as observed in dwarf galaxies. No significant mass loss of cold gas occu
rs. The characteristic global properties of the simulated galaxies are in e
xcellent agreement with the observations.