We examine the phenomenon of “failed” states by using, as an example, Somalia that is being faced with a vast array of problems: collapse of state institutes, civil war, separatism, terrorism, radical Islamism, and piracy. It is found that clannishness and tribalism of Somali society are complicating the process of political settlement and national reconciliation. It is pointed out that some of the tribes and groups, including under the action of external forces, are actually forming the country’s political space. It is shown that the pseudo-state entities in Somalia are unstable, and their boundaries of “flowing” so that they are incapable of exercising a full control over the territory. It is emphasized that the problem of Islamic extremism can be treated as deriving from failure of the state institutes; the peak of activity and territorial expansion of Islamist groups in the country is now in the past, and the area of their activity is bounded by the area inhabited by the Somali ethnos. It is found that the piracy problem is determined by the geographical location of Somalia, and its solution is impossible without the reestablishment of the state institutes and the economic system of the country. Two potential cores of reestablishment of Somali statehood have been revealed: Federal Government in Mogadishu as well as Puntland State of Somalia. It is forecasted that the international community will be gradually recognizing the Republic of Somaliland. It is concluded that the federalization of the country as declared by authorities is formal in character but yields first results implying that the negotiation probes between the groups of clans have been led into a political channel.Keywords: Somaliland, Puntland, failed states, separatism, Islamism, terrorism.