122. Furthermore, it seems to the CRM that more needs to be done to strengthen the bureau of administration and security of regional states, particularly that of Oromia and its neighbours. Oromia shares borders with all of the regional states except Tigray. Some of these borders are shared with emerging states that are relatively more resource-strapped than others. Going beyond conflict management, these conflicts should be transformed into opportunities for mutual cross-border development. Transforming conflicts into development cooperation requires both institutional capacity and financial resources. More federal support for appropriate capacity development would promote cross-border cooperation between Oromia and the emerging states of Benishangul-Gumuz and Gambella, between Oromia and the SNNP Regional State, and between Oromia and Somali. Priorities should be the creation of joint authorities and programmes for education, health, infrastructural development, the use of cross-border grazing lands and water points by communities occupying common border areas, both requiring substantial federal and international support. Potential Sources of Intra-State Conflict 123. The CRM notes that creating the Federal Democratic Republic of Ethiopia out of a system of hegemonic control and suppression unleashed two impulses amongst the Ethiopian Nations, Nationalities and Peoples. The first is the impulse for community solidarity and self-actualisation that drives nations, nationalities, and ethnic groups to affirm or reaffirm their sense of identity with a view to pursuing common developmental goals. The second is the impulse for equity within the larger federal arrangement such that these nations, nationalities and peoples relentlessly strive to achieve social, economic, and psychological standing in the federal mosaic. Under these circumstances, the potential for destructive and debilitating conflicts that can weaken and immobilise regional states as well as produce destructive outcomes in the interactions between and among regional states, must not be underestimated. Therefore, it is critical to identify and address potential sources of destructive conflict before they become active sources of conflict. The CSAR identified several sources of internal conflict and potential sources of conflict, as mentioned above. These were taken up during the country consultations. 124. Resources Allocation Formula: Throughout the regions visited by the CRM, there was keen interest in the process by which the budget allocation formula is constructed. As reported in the CSAR, the 2008 formula parameters were population size, revenue collection, and expenditure performance. This formula is under review. A revised formula is expected. Although the formula was complemented with affirmation action programmes for emerging regional states, - 76 -

Select target paragraph3