Why do some societies choose to adopt federal settlements in the face of acute ethnic conflict, while others do not? Neophytos Loizides examines how acrimoniously divided Cyprus could re-unify by adopting a federal and consociational arrangement inspiring similar attempts in its region. Loizides asserts that institutional innovation is key in designing peace processes. Analyzing power-sharing in Northern Ireland, the return of displaced persons in Bosnia, and the preparatory mandate referendum in South Africa, he shows how divided societies have implemented novel solutions despite conditions...