Explanation: Ethnic federalism, multi-ethnic or multi-national federalism, is quite self explanatory, it is an ethnic based federal system of national government, which the federated regional or state units are defined by ethnicity. This type of federation has been implemented by Meles Zenawi in the 1990s in Ethiopia.
As for Ethiopia, it gives them a better understanding of local issues and demands, their central government has no true way to understand the issues, demands and changes needed to be made in every area of the country, federalism helps them gage in the areas needed to help with these issues, demands and changes.