Ethnic federalism is a political system that divides a country into regions based on ethnic groups. Each region, or state, has a degree of autonomy, allowing ethnic communities to govern themselves and preserve their cultural identities. This system aims to provide representation and power to diverse groups within a nation, reducing ethnic tensions and promoting stability. Countries like Ethiopia and India have implemented ethnic federalism to manage their diverse populations. While it can empower minority groups, critics argue that it may also reinforce divisions and lead to conflicts if not managed carefully. Balancing autonomy and national unity is a key challenge in such systems.