Why is Somalia still far from achieving a lasting political settlement, after decades of international military, diplomatic and aid interventions to stabilize the war- torn country? This study argues that international aid and the interplay between local and foreign elites in policies and practices has frequently undermined state-building efforts in Somalia. Rather than assuming that foreign actors are external to the evolving conflict dynamics of warlord economies, militant Islamism or political settlements, Stabilization, Extraversion and Political Settlements in Somalia concludes that they should instead be understood as integral to them. Consequently, the power and interests of both Somali and international actors must be considered in order to understand the shortcomings of stabilization policies.