Since declaring its independence from Somalia in 1991, Somaliland has set up its own government institutions, written its own laws and constitution, and held credible elections. No government in the world has yet recognized Somaliland’s independence and for 18 years the territory has been left in legal limbo—a country that does not exist. During that time Somaliland has gone a long way towards building security and developing democratic institutions of governance. But the government’s failure to hold elections planned for a year ago has laid bare the limitations of that progress and now threatens to reverse it. Somaliland is at a crossroads, and the events of the next few months could well determine whether the territory will build upon its gains or see them begin to unravel.