Sillce 1992, Ethiopia has embarked on extensive decentralization and regions have beenrngivell extensive decision making power and responsibilities in administering theirrnrespective regions. J-/mv ever, if we understand decentralization as making governancerncloser 10 people and strengthening local/ wereda government little is done at weredarnlevel.rnThe silualioll in Sidama zone indicates that local government officials have no clear idearnas 10 what belongs to Ihe wereda and what belongs to the higher level. The weredas havern/illle or 110 aulollomy 10 plan and make decisions and no sources of revenue, which couldrnbe used, for local development activities. Moreover, they are highly dependent on zonernfor recurrent budget and the capital budget does not flow to wereda level. Regardingrnservice delivery, although considerable expansion is witnessed, due to lack of standardrnand Cjuality problems most of the health posts and health centers could not be used forrnilllended purpose. Moreover, lillle allention was given to recurrent cost of the institutionsrnlind I71QJljJ0l