10 ODI Policy brief Implications De facto states are awkwardly positioned on the boundaries of the international system. Even as their claim to statehood is rejected by some or all de jure states, and their access to the range of legal and diplomatic privileges afforded by de jure statehood is denied, de facto states are nevertheless integrated into the international system in a number of ways. They may be members of FIFA but not the UN, as in the case of Kosovo; sites of key geostrategic projects despite their universal non-recognition, as in the case of Somaliland; or their foreign relations may be more modest, dominated by their relative isolation and antagonism between parent and patron states, as in the cases of Abkhazia and Transnistria. Forms of engagement with de facto states remain largely ad hoc, and consideration of the effects of non-recognition on those living in them is often a secondary concern. In practice, states and multilateral organisations can and do interact with de facto entities in a number of ways, pointing to the flexibility and still largely underexplored political space for new and innovative avenues of engagement with de facto entities, including through existing bodies such as the Unrepresented Nations and Peoples Organisation (UNPO). This highlights the need for further research into the political economy of non-/recognition and relations with de facto states, alongside analysis of the impeding and enabling factors which determine the political desirability and feasibility of different approaches. Research into internal political dynamics and the ways in which those living in de facto states negotiate the challenges stemming from nonrecognition can also inform international actors’ approaches to de facto states. Comparative analysis of current forms of engagement, including development assistance, adopted by states and multilateral organisations, is also needed to inform more systematic approaches to engaging de facto states. Whether unrecognised governments or breakaway states, there are significant political sensitivities around engaging de facto entities for bilateral missions, international organisations or (I)NGOs. However, given the negative political, economic and social outcomes associated with the current paradigm of engagement, it is clear that new, politically nuanced policy approaches are needed. While these must address and respond to the specific political contexts of each case of de facto governance, developing new approaches which transcend the binary of non-/recognition and find more effective ways of engaging with de facto states and those living within them is essential.