The SEPDM position rests on the achievement of a “southern identity” rooted in respecting diversity and Ethiopian unity. Often supported by academics like Kinkino, statehood advocates argue for dignity through equal recognition, as smaller groups such as the Harari received a region when the federation was designed. The SEPDM leadership argues that SNNP is a cost-effective arrangement, while activists and local elites claim that smaller regions would be more administratively efficient. For example, Keffa, a western Zone with a history of autonomy is a long way from Hawassa. Arguably, even the relatively sparsely populated South Omo Zone—whose extreme ethnic diversity, with its many agro-pastoral peoples—adds yet another layer of complexity and could potentially become a viable region with a seat at Jinka. Much will now depend on how Sidama fares in its unprecedented bid to become the federation’s tenth member.
Currently, Sidama Zone is lumped in with other lower revenue-raising capacity zones and special weredas in SNNP, while Hawassa City is the only self-sustaining administration in the region. SNNP provides a subsidy of 3.2 billion birr to Sidama Zone, which has livestock and cereal and is the leading coffee-producing zone in Ethiopia, the single largest grossing export commodity. M
ore than 40 percent of Ethiopia’s washed coffee comes from Sidama, but it has no powers to levy taxes on this production, which could lead to a regional request that primary commodities have similar federal-regional tax revenue-sharing arrangements to extractive industries.
Largely as a product of EPRDF’s unitary-like de facto control of a de jure radically devolved system, despite the right to raise taxes, regions rely on federal grants and, despite the right to grant weredas and zones revenue-raising powers, weredas and zones rely on regional transfers. Moreover, there is little tax competition between states, again presumably because it is EPRDF and affiliated parties that have jointly set policy.
With the EPRDF system more strained than ever before, these federal dynamics could begin to shift. And with increased inter-regional tensions, better performing states may start objecting to subsiding those that rely more on federal grants. Regional administrations would be in a better position to adjust to this new scenario than zones or special weredas because of regions’ constitutionally guaranteed
revenue-raising rights.
https://www.satenaw.com/southern-comfort-on-the-rocks/