ABSTRACTEthiopia experienced a critical juncture in 1991 with the defeat of the military dictatorship, opening up the possibilities of a new political order. Since then the country underwent social engineering and institutional transformation emerging as a leading reformist state under hegemonic-party rule with high institutional state capacity but also a concentration, and even personalisation, of decision-making power. This approximates to a path of ‘authoritarian institutionalisation’. This article argues that Ethiopia’s institutional trajectory can be explained by the nature of coalition politics in the formative years of transition, specifically the extent to which credible challengers were excluded from transitional processes. The strategy of excluding Pan-Ethiopian parties and sideling the Oromo Liberation Front (OLF) set the country on the path of establishing a hegemonic rule by the Ethiopian People’s Revolutionary Democratic Front (EPRDF). Sustaining hegemonic rule entailed fending off threats from excluded groups in the 1990s but which coalesced into a strong electoral performance in the 2005 elections in whose aftermath the ruling party embarked on aggressive pursuit of state-directed development for political legitimation.
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