WHEREAS, since our country, Ethiopia, subscribes to the system of the federal and democratic state organization, it has been found necessary to clearly provide for the regular inter-governmental relations that would be instrumental to facilitate the carrying out of multi-sectoral development and good governance activities by integrating and combining the capabilities of all the bodies at each and every level in an appropriate way instead of conducting isolated efforts so that it would be possible to bring about sustainable peace, ensure a reliable democracy, continue the rapid social and economic development as well as build one political and economic community thereof;

WHEREAS, although the individual and collective Powers and Responsibilities of both the Federal and State Governments have been duly identified and set out in the constitution by virtue of the federal system of state organization in operation, it is believed that the governments at each level need to be backed by a cooperative relations framework that would assist them perform the tasks separately vested in them in joint collaboration and with one another beyond those Powers and Duties assigned to them collectively and thereby effectively function by having formulated shared policies and strategies, where deemed appropriate;

WHEREAS, in view of the fact that mutual consultations conducted and cooperative agreements concluded as between and among governments within the system of the federal state organization emanate from the inherent nature of the system itself, it is essential to put in place the procedure through which the system is to be strengthened from time to time by holding and entrenching the common ideals and values which are of paramount importance for the sustainability of same;

WHEREAS, in order to maintain the strengths noticed and fill the gaps encountered or likely to be encountered as the result of the mutual consultations which have so far proceeded between the Federal Government and the Regional States as well as the State Governments themselves, the creation of a strong and principle-based mode of cooperation as between the levels of government and their respective institutions would have a significant contribution for the healthy development and continuity of the federal system;

WHEREAS, at the time when each and every government formulates and executes its own plan in a
bid to discharge the power and responsibility bestowed upon it, so that it may not incur duplication of expense and wastage of time due to its unilateral effort, and in connection with the changing and growing needs of clients seeking for the service, it has been appropriate to narrow the gap and quality differences prevailing between them and bring about proximate performance between them by formulating common service delivery standards and lay down newer working procedures as well as undertake experience-sharing exchanges involving the regions;

WHEREAS, it is to facilitate this, necessary to enact and implement an autonomous law in which the system of inter-governmental relations is to be guided accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows: