Based on secondary data in the form of published books, papers, journals, reports and a critical analyses of primary sources in the form of interviews, newspaper, radio and television debates this article addresses the decentralization policy not only as a form of political organization and management of a state, but it attempts to prospective theoretical hypotheses regarding decentralization as an effective instrument for conflict management and prevention especially in a complex state with numerous ethnic groups and a dual colonial identity cohabiting side by side. While many decentralization experts assume thatcontext make a significant difference, the empirical analysis points to very similar that decentralization affects the conflict proneness of ethnic groups in a society. Those who stress the pacific effect of autonomy build directly on decentralization as a way to resolve conflicts over public goods provision by taking into account heterogeneous preferences among regions in a country. By improving policy responsiveness to as many people as possible, grievances can be avoided and peaceful avenues for political change provided to potential secessionists.Thus, this paper sustains that the policy of decentralization not only is an efficient instrument for conflict management, but it could prevent conflict in the long run and contribute towards an equitable distribution of wealth and balance development.