This book attempts to inquire the potential of federations to avert spillover effects of political instability taking the Ethiopian federation as a case in point. Accordingly, this book argues that somalia''s collapse and political instability has been contributing to the political disorder of Ethiopia''s somali region. The stranded ethnic group beyond and within the Ethio-Somali border, the unpleasant legacy of inter state relation between the two states and the simultanious collapse of both regimes in 1991 are mentioned as major factors, among others, for the diffusion of destablizing elements from Somalia in to Somali region of Ethiopia. It is also argued that the instability of Somali region gave the scapegoat for the federal government to control the region with less political autonoimy and self rule to be entertained by the former. In sum, the book pin points the major factors for the instability of Somali region and suggests genune federalism with political autonomy, tight security against border crossing factors and economic presence as solutions for the instability of Somali region and the federation at large.