Vertical intergovernmental relations in Ethiopia: normative and empirical considerations

Federations without sound and viable intergovernmental relations (IGR) cannot function effectively, and competition will replace cooperation in such cases. Establishing robust IGR mechanisms is therefore essential for the smooth operation of federations. Ethiopia adopted a federal system in 1991 but has since developed poorly institutionalized IGR. Following the political transition in 2018, the growing need to institutionalize effective IGR frameworks to foster cooperation and manage disputes between the federal and regional governments led to the enactment of the 2021 IGR law. While this law formalizes vertical IGR forums, the actual structure and processes governing these relations remain unresolved challenges for Ethiopia. Existing research indicates that these formal vertical IGR forums have largely remained non-functional. This paper explores how vertical IGR are managed in practice when formal IGR mechanisms are ineffective. Findings suggest many IGR issues are addressed under the tight control of the prime minister, with significant influence from party leadership.