
This research paper examines the politics of ethnicity and ethnic federalism in the era of globalization. In this globalization era, the quest for identity and states design for adopting the dynamism are the central tasks of states. After the demise of the Derge regime the FDRE government adopted ethnic based federalism as a response to ethnic diversity and former centralized systems of administration. Hence, the federal polity experiment neither it disintegrated the political community and nor it reduces the occurrence of ethnic conflicts in the country.