ABSTRACT For democracy to be implemented, there should be a peaceful, functioning, and defined sustem of governance. Though scholars have different perspectives on the nexus between state formation and democracy, this article uses Somaliland as a case. Somaliland, a former British Protectorate and now de facto state in the Horn of Africa, has adopted a hybrid system of governance—traditional, religious, and modern democratic systems of governance. The democratization process in Somaliland started decades back. As per the literature reviewed, most of the researchers have studied the peace-building process and the state formation processes separately. They did not specifically investigate the nexus between democracy and state formation in Somaliland. To fill that gap, this article examines the experiences of Somaliland’s democratization process and its impact on state formation. It clarifies how a clan-based system of governance turned into a democratic multiparty system. The major findings of this article include that democracy has had a huge impact on Somaliland’s state formation process. Not only that, it contributed to the peace-building process as well. Above all, the people of Somaliland were keen on building trust among themselves with democratic principles during the state formation. The application of democracy has permitted Somaliland people the right of accountability where they can change the leaders by casting votes in elections. The characteristics and principles of democracy had emerged in Somaliland’s ruling systems even before it reclaimed its internationally fully recognized independence.
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