Ethnic federalism is a federal system of national government in which the federated units are defined according to ethnicity. Related terms are multi-ethnic federalism and ethnofederalism.
This type of federation is identified above all with the regime of Meles Zenawi from the 1990s in Ethiopia, where it has sometimes been known as Zenawism. Features of ethnic federalism have been displayed also in other countries, including Nepal, South Sudan, Pakistan, and the former Yugoslavia.
Ethnic federal systems have been created in attempts to accommodate demands for regional autonomy and manage inter-ethnic tensions within a state. They have not always succeeded in this: problems inherent in the construction and maintenance of an ethnic federation have led to some states either breaking up or resorting to repression.
In an ethnic federation some or all of the federated units are constructed as far as possible to follow ethnic boundaries, providing ethnic communities with a measure of autonomy. Because the federation remains one state, this is distinguished from outright partition. Such a system may be considered in nations where ethnic groups are concentrated in geographical localities.
In an ethnoterritorial federation - a "compromise model" - the largest ethnic group is divided among more than one subunit. Examples include Canada, India and Spain. This type of system may be appropriate for nations that contain one dominant group.
One of the main motivations for introducing ethnic federalism is to reduce conflict among the groups within the state, by granting each group local self-government and guaranteed representation at the centre. Thus an ethnic federal system may have particular appeal where serious conflict is feared or has already occurred. This goal is "defensive" and accepts the permanence of different ethnic identities within the state.