Biblio

One of the reasons that force countries to adopt federal system is that, federalism keeps
government closer to the people. Many problems require no uniform solution throughout a
country as local circumstances, local traditions, and even local tests may differ. Local conditions
may call for a local formula. Hence, the more the local government is, the greater the
opportunity for communication between them and those who put them there. Locally based
decisions are often more practical and sustainable in that they acknowledge and accommodate
local diversities that may exist within a particular locality.
Ethiopia entered into a decentralized system in 1991. Later on, the FDRE constitution laid the
ground work for a democratic system of government whereby people at all levels can freely
participate in political, social and economic affairs. Accordingly, the constitution attempts to
promote self- rule at all levels and participation of the people in the formulation of development
policies and programs. The constitution further stipulates that the government shall have the
duty to support the initiatives of the people in the development endeavors.
This study has been conducted on the institutional organization and fiscal autonomy of local
governments in the Regional State of Oromia. In doing the research, Interviews, Questionnaires
and focus group discussion have been employed. To substantiate the study, ideas, principles,
constitutions, laws, and experiences of other federations have also been discussed. Generally,
the study has shown the obstacles that hamper the actual functioning of Local Governments in
Oromia to exercise the 'self-rule' aspect of federalism which includes financial and skilled man
powers.