The Effect of Federalism on Policy Outcomes in Ethiopia

Abstract

Federalism can impact on numerous areas of policy outcome, such as policy in- novation, democracy, accountability, and corruption. This article explores how it influences policy outcomes in Ethiopia, doing so by comparing the Ethiopian federa- tion with the multinational federations of Switzerland, Belgium, and India. Drawing on Worldwide Governance Indicators, other secondary sources, and interviews, the article highlights how federalism influences policy outcomes in those federations and, in view of this, analyses the Ethiopian case. It finds that, although federalism has contributed to local self-governance and social and cultural policy, it has not improved policy outcomes such as popular participation and accountability, peace
and security, governmental efficacy, the rule of law, and control of corruption. This
is largely due to the existence of a unified party-political organisation and a lack of trust between state and society. Thus, Ethiopia needs to draw lessons from the Swiss, Belgian, and Indian federations in order to enhance the positive effect of federalism on policy outcomes.