The book focuses on the tripartite relationship between federalism, democracy, and party politics. It deals on: 1) the role federalism in democratizing state and society in Ethiopia; and 2)the role of political parties in Ethiopia in general and the ruling party in particular in light of the major principles of federalism. The major principles of party system institutionalization and the impacts this have in democratic consolidation is analysed. The interplay between party politics and federalism is also liked with the challenges of federal stability in multiethnic countries. The major findings Ethiopia''s weak party system and legacy authoritarian culture are the major problems facing the ethiopian federal system. Due to Weak institutionalization, political parties are unable to perform many of the traditional roles of political parties in democracy.