In 1991, when Tigray People's Liberation Front (TPLF) became a leading party within the Ethiopian People's Revolutionary Democratic Front (EPRDF), Ethiopia introduced a system of ethnic-based federalism, which had never been practiced in the political history of the state before. The recognition of Ethiopian ethnic diversity became one of the country’s fundamental principles, with the federal system largely consisting of ethnic-based territorial units. Since its inception, Ethiopia's ethnic federalism has been the subject of heated debate among various political organizations in the country, as well as among observers and scholars both in and outside the country. The key objective of this paper is to appraise the pitfalls of ethnic-based federalism in Ethiopia, which has been functioning in the country for more than two and half decades. The authors believe ethnic-based federalism to be a political arrangement that succeeds to maintain balance of centrifugal and centripetal forces. They see it as an appropriate and viable strategy for a sustainable nation-building effort in the context of Ethiopia’s ethnic diversity. At the same time, the authors observe that in the case with ethnicity-based political arrangements, unless they are implemented with maximum care, the risk outweighs the benefit. When a state like Ethiopia, which had been highly centralized for many years, is trying to experiment with a seemingly federal arrangement, the equilibrium of diversity and unity should be maintained. If the political environment focuses primarily on diversity and ignores shared values and common identity, it leaves room for the elites to manipulate the differences and pursue their own parochial political interests, which would eventually serve against the public benefit. The pioneers of Ethiopia’s ethnic federalism believe that the contemporary ethnolinguistic-based federal arrangement is a panacea for problems related to identity politics. However, the authors argue that, from a practical perspective, for the past two and half decades (probably in the future too, unless re-designed) ethnic federalism in Ethiopia has been highly politicized (manipulated by political dealers promoting their own selfish interests).

Since the independence of the continent, there have been failed attempts to industrialize it using import-substitution policy, which gave rise to the idea of regional integration as an instrument to facilitate structural transformation in Africa. Consequently, African countries have embraced regional integration as an essential element of their development strategies principally driven by the economic rational of overcoming the restraint of small and fractioned economies working in isolation. The establishment of the Organization for African Unity (OAU) in 1963 believed to contribute to many integration initiatives. Even after the transformation of OAU to AU, leaders of the continent once again emphasized their dedication to the idea of regional integration. Obviously, even in the future the issue will continue to be one of the main economic agendas of the continent as there is a widely shared belief that regional cooperation is crucial to tackle development challenges that cannot be addressed at a national level. The cardinal objective of this paper is to assess the obstacles of regional integration in the Horn of Africa. Hence, the findings show that political instability, conflicts, overlapping membership and weak infrastructure are the main challenges for regional integration in East Africa.