Behind any development agenda prevails a reason, motives, objectives or other value of political character either explicitly or implicitly. After all, development takes place in a political environment and it has always a political connotation. And, this monograph is a synthesized study of ‘politics'' and ‘development'' approached from the vantage of endogenous or bottom-up perspective in the context of the Arsi Oromo of Bale. Emphasis has been made, however, to the ‘political'' undertakings of the Dergue government under the banner of ‘socialist-development'' in the same region, which practically may facilitate a better understanding of the intertwined and complex nature of the concepts involved. It argues that top- down imposition and enforcement of development strategies, which have proved failure for so long in Ethiopia should be reconsidered in such a way to make people both the means and end of development. Study sources attested that endogenous institutions which were once predominant variables can still be integrated into the development schemes for the people of the region and so for the socio-economic development of the country.