Republic has turned round internally (8)
I believe the answer is:
honduras
'republic' is the definition.
(I know that Honduras is a republic)
'has turned round internally' is the wordplay.
'turned' indicates an anagram.
'internally' is an insertion indicator.
'round' anagrammed gives 'ondur'.
'has' going around 'ondur' is 'HONDURAS'.
(Other definitions for honduras that I've seen before include "Central American republic" , "Central US country" , "Central American country, capital Tegucigalpa" , "Land" , "Country of Central America" .)