90. In the case of Ethiopia, federalism based on principles of autonomy and selfdetermination for nations, nationalities and peoples must be viewed in the broader historical context of the long-drawn out struggle against perceived Amhara hegemony, and the failure of the control model of government to manage nationalities-based conflicts which saw the Derg seeking a military solution to such problems in Ethiopia. 91. The country’s federalism has, however, sometimes been criticised for “essentialising” ethnic identities, “privileging” them over other identity types and, in the process, heightening ethnic tension and conflict. Yet, in an important sense, Ethiopia’s federalism is a refreshing approach to governance. This is because it moves away from regarding ethnicity as a negative or dysfunctional political and socio-economic social force. Instead, it emphasises the positively creative, crosscutting, utilitarian value of ethnicity for democracy and development. It anchors democratic politics and development as a bargaining process, based on mutuality and reciprocity among ethnic and national groups, constituting the fundamental components of the social demography and political tapestry of the typical African state. This is indeed in the spirit of Articles 20(1) and 22(1) of the African Charter on Human and Peoples’ Rights. 92. Critics also fail to consider what has been referred to as ethnic and national resurgence, not only in Africa but across the world, in places like the United Kingdom, France, Belgium, Canada and Switzerland, where the persistence of ethnic conflicts has resulted in the creation of multi-ethnic nations, with substantial local autonomy or self-rule granted to ethnic minorities. Ethnic identity is not bad per se but requires adaptation as part of a broader process of widening democratic spaces in an inclusive, participatory and accountable way, in line with the rule of law and the promotion of not only civil and political rights, but also cultural, economic, and social rights 93. A number of major challenges, however, must be tackled. First, the need for a constructive approach to political asymmetries between the regional states and the ensuing regional inequalities. In the same way, applying the policy of equity to redress the historic disadvantages experienced by some national and ethnic groups, particularly in education and in public service, must be reconciled with the merit principle. In other words, while affirmative action might be necessary to right historic wrongs, it must not become an end in itself. Secondly, while the policy of decentralisation has further devolved powers and functions down to the wereda and kebele levels, in the spirit of federalism, serious problems of capacity, corruption and inefficiency threaten to defeat the spirit of decentralisation. These must be fully addressed. - 65 -