Introduction

Somaliland's particular form of bottom-up state formation has attracted the attention of domestic, regional and international observers. The Republic of Somaliland reinstated its sovereignty on 18 May 1991, when clan elders and the leadership of the Somali National Movement (SNM) declared the end of Somaliland's union with Somalia and the return of the country to its pre-union independence, which was attained from British colonial rule in 1960. Understandably, there was much euphoria, patriotism, healing and enthusiasm at the time of the declaration of restoration of sovereignty, as it represented the end of the era of the dictatorship of Mohamed Siad Barre (1969–91) following a decade-long bitter armed struggle (1981–91).

The restoration of sovereignty inaugurated a period of reconstruction, reconciliation, and rebuilding of state institutions. During the early years of restoration of independence, Somaliland faced enormous challenges in erecting institutions of a modern state in an environment where the involvement of clans was dominant in the country's political arena. The role of clans was facilitated by the traditional approach to politics, which was inclusive and participatory. The initial process of state formation was, thus, inclusive of representatives of all clans, traditional elders, religious leaders, business people, politicians and diaspora communities. At the same time, because of the atmosphere in which a return to war was a worrying possibility, the various actors were amenable to reaching political compromises.

The intermingling of state and non-state actors worked reasonably well, at least during the early years of restored independence. Regular engagement by the state with the traditional and religious leaders has been substantial and indispensable in keeping law and order. Over time, however, major incompatibilities of perspectives began to surface and pose challenges to the new state, although the country's political stability has remained largely intact, due to the close relationship between the leadership of SNM and clan authorities, and due to the consensus-building approach to decision-making that was in place. Yet the inclusive and consensus-based approach has come to hinder the introduction of needed reforms of state institutions and has led to growing challenges in harmonizing the various perspectives, particularly those of the state, the clan leaders and religious authorities.