Abstract:
Ethiopia adopted federalism in 1995, which is intended to accommodate ethnic diversity. Federalism is an attempt to give us a valuable tool for accelerating development and resolving inter-ethnic conflict. The Ethiopian Federal Constitution establishes the legal basis for ethnic federalism, with the preamble indicating the character and state-building strategy of the new nation. The paper intended to examine the power distribution between the federal and state governments in Ethiopia and regional autonomy; the factors considered essential to the working of federalism in Ethiopia; how federalism provides a framework for the equal recognition of cultural and religious diversity in Ethiopia and the contribution of ethnic-based federalism in promoting democracy. The research was conducted in four regions (Oromia, South Nation and Nationality People (SNNP), Sidama and Somali), Addis Ababa city administration, selected federal institutions, and Ethiopian Civil Service University. Both quantitative and qualitative method of data collection was employed for the study. The study found that Ethiopia's federalism provides a framework for the equal recognition of cultural and religious diversity and has contributed to the development of democracy in the country. The study found that some regional states were not fully practicing their autonomy.
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