After a period of long debate and confrontation between the two giant economic paradigms,rn[capitalism and socialism], to realize economic development on countries of the world, anotherrnview of economic theory, developmental state ideology come to over flood the developmentrnscholarship following the South East Asian countries developmental miracle, by implementingrnthe latter. Nowadays, many countries including Ethiopia are inclined towards the developmentalrnstate paradigm by intending to grasp its developmental benefits reaped by the Asian Tigers.rnTransplanting a developmental ideology with its best practice from countries that had a highlyrncentralized beaurocracy with a unitary form of state structure that help to easily frame arnhomogenous developmental policy overall their country may seem vague for a country, Ethiopia,rnhaving a constitutionally guaranteed federal form of state structure with significant autonomy ofrnregional states to design and implement their respective economic, social and developmentalrnpolicies and strategies.rnThis research reveals some of the difficulties to implement a developmental state economicrnideology in federal Ethiopia, on the one hand and how its unmanaged rush towards itsrnimplementation affect the autonomy of regional states, on the other. In doing so weather, therernexist any possible means and institutional solution to resolve this contradiction is the centralrnquestion of the research. The research underscores that Intergovernmental Relations (IGR) withrnits guideline and institutions could serve as a best solution and bridge between the contradictoryrnpoints of developmental state and federalism. Intensive and a duly managed use of IGRs betweenrnthe federal and regional states may help a federal country like Ethiopia to balance regionalrnstates autonomy, to design and implement their developmental policies and strategies [priorrnconcern of the countryâ€™s federalism] with the demand of a developmental state ideology, for arnharmonized and parallel developmental policy all over the country. However, this research findsrnthat, little emphasis has given to the area of IGRs in Ethiopia that, it fails to play its great roll ofrnbeing a forum of policy harmonization between the federal and regional states of the countryrnthan being a center to dictate the wish of the central government to regional states on nationalrndevelopmental policy matters.