Yehualashet, Worku (PhD)Belay, Hailu2018-08-142023-11-182018-08-142023-11-182001-05http://etd.aau.edu.et/handle/12345678/11657Decentralization is believed to improve development activities by allowing lower levels of government bodies and the people at large to participate in development planning and implementation. Of course, such participatory development through decentralization can be realized if important preconditions such as political commitment, availability of and access to resources, capacity of implementing agencies and the like are adequately met. The on-going decentralization process in Ethiopia has introduced a major change in the political, economic and social systems of the country. The new decentralization process, effected since 1991, is organized under federal form of government whereby the country has been divided into nine regional governments and one city administration under the umbrella of the Federal Government. The regions are delimited mainly based on historical, linguistic and ethnic considerations. This study is aimed at investigating the process of decentralization in the country. It is conducted mainly on a case study technique where one region, Oromia Region, is randomly selected from among the regions in the country. The research provides a brief description of the conceptual framework of decentralization, then the data collected and its analysis. Finally it presents conclusions arrived at. Both quantitative and qualitative data collection methods were used. Interviews were conducted with 25 key informants-individuals assumed to have particular knowledge on the issue of decentralization. Group discussions and survey questionnaires with 14 participants were also included in the research. Oromia Region is the largest of all in terms of territorial size and population. It has a relatively strong institutional and manpower situation as compared to other regions. However, close scrutiny of regional activities reveals that there is a lot to be done. Although authority and powers seem to be decentralized, the extent of decentralization below regional levels, to the zonal, woreda and kebele levels is limited. Moreover, the decentralization process in the Oromia region is challenged by many problems such as low revenue basis, very low administrative and manpower capacity and poor inter-organizational arrangements and relationships. There is a large vertical imbalance between the revenue raising powers and expenditure responsibilities of the Oromia Region. Therefore, every year, more than 70 percent of the budget of the region is granted by the Federal Government in the form of unconditional subsidy. This means that in Ethiopia, expenditure responsibilities have tended to be centralized in favor of the Federal Government.enDecentralization Process in EthiopiaThesis