- Serbia and Montenegro
country in the NW Balkan Peninsula, bordering on the Adriatic, consisting of the republics Serbia & Montenegro: established as a nation in 2003: 39,449 sq mi (102,173 sq km); pop. 10,394,000; cap. Belgrade: see YUGOSLAVIA
* * *Serbia And Montenegro NoteSerbia and Montenegro have asserted the formation of a joint independent state, but this entity has not been formally recognized as a state by the US; the US view is that the Socialist Federal Republic of Yugoslavia (SFRY) has dissolved and that none of the successor republics represents its continuation Serbia And Montenegro:Geography Location: Southeastern Europe, bordering the Adriatic Sea, between Albania and Bosnia and Herzegovina Map references: Ethnic Groups in Eastern Europe, Europe Area: total area: 102,350 sq km land area: 102,136 sq km comparative area: slightly larger than Kentucky note: Serbia has a total area and a land area of 88,412 sq km making it slightly larger than Maine; Montenegro has a total area of 13,938 sq km and a land area of 13,724 sq km making it slightly larger than Connecticut Land boundaries: total 2,246 km, Albania 287 km (114 km with Serbia; 173 km with Montenegro), Bosnia and Herzegovina 527 km (312 km with Serbia; 215 km with Montenegro), Bulgaria 318 km, Croatia (north) 241 km, Croatia (south) 25 km, Hungary 151 km, The Former Yugoslav Republic of Macedonia 221 km, Romania 476 km note: the internal boundary between Montenegro and Serbia is 211 km Coastline: 199 km (Montenegro 199 km, Serbia 0 km) Maritime claims: NA International disputes: Sandzak region bordering northern Montenegro and southeastern Serbia - Muslims seeking autonomy; disputes with Bosnia and Herzegovina and Croatia over Serbian populated areas; Albanian majority in Kosovo seeks independence from Serbian Republic Climate: in the north, continental climate (cold winter and hot, humid summers with well distributed rainfall); central portion, continental and Mediterranean climate; to the south, Adriatic climate along the coast, hot, dry summers and autumns and relatively cold winters with heavy snowfall inland Terrain: extremely varied; to the north, rich fertile plains; to the east, limestone ranges and basins; to the southeast, ancient mountain and hills; to the southwest, extremely high shoreline with no islands off the coast Natural resources: oil, gas, coal, antimony, copper, lead, zinc, nickel, gold, pyrite, chrome Land use: arable land: 30% permanent crops: 5% meadows and pastures: 20% forest and woodland: 25% other: 20% Irrigated land: NA sq km Environment: current issues: pollution of coastal waters from sewage outlets, especially in tourist-related areas such as Kotor; air pollution around Belgrade and other industrial cities; water pollution from industrial wastes dumped into the Sava which flows into the Danube natural hazards: destructive earthquakes international agreements: NA Note: controls one of the major land routes from Western Europe to Turkey and the Near East; strategic location along the Adriatic coast Serbia And Montenegro:People Population: total population: 11,101,833 (July 1995 est.) Montenegro: 708,248 (July 1995 est.) Serbia: 10,393,585 (July 1995 est.) Age structure: Montenegro: *** No data for this item *** 0-14 years: 22% (female 77,498; male 82,005) 15-64 years: 68% (female 236,987; male 241,397) 65 years and over: 10% (female 41,625; male 28,736) (July 1995 est.) Serbia: *** No data for this item *** 0-14 years: 22% (female 1,095,121; male 1,173,224) 15-64 years: 66% (female 3,431,823; male 3,483,066) 65 years and over: 12% (female 699,488; male 510,863) (July 1995 est.) Population growth rate: Montenegro: 0.79% (1995 est.) Serbia: 0.51% (1995 est.) Birth rate: Montenegro: 14.39 births/1,000 population (1995 est.) Serbia: 14.15 births/1,000 population (1995 est.) Death rate: Montenegro: 5.7 deaths/1,000 population (1995 est.) Serbia: 8.72 deaths/1,000 population (1995 est.) Net migration rate: Montenegro: -0.78 migrant(s)/1,000 population (1995 est.) Serbia: -0.36 migrant(s)/1,000 population (1995 est.) Infant mortality rate: Montenegro: 9.8 deaths/1,000 live births (1995 est.) Serbia: 18.6 deaths/1,000 live births (1995 est.) Life expectancy at birth: Montenegro: *** No data for this item *** total population: 79.56 years male: 76.69 years female: 82.61 years (1995 est.) Serbia: *** No data for this item *** total population: 73.94 years male: 71.4 years female: 76.68 years (1995 est.) Total fertility rate: Montenegro: 1.79 children born/woman (1995 est.) Serbia: 2 children born/woman (1995 est.) Nationality: noun: Serb(s) and Montenegrin(s) adjective: Serbian and Montenegrin Ethnic divisions: Serbs 63%, Albanians 14%, Montenegrins 6%, Hungarians 4%, other 13% Religions: Orthodox 65%, Muslim 19%, Roman Catholic 4%, Protestant 1%, other 11% Languages: Serbo-Croatian 95%, Albanian 5% Literacy: NA% Labor force: 2,640,909 by occupation: industry, mining 40% (1990) Serbia And Montenegro:Government Names: conventional long form: none conventional short form: Serbia and Montenegro local long form: none local short form: Srbija-Crna Gora Digraph: Serbia: SR Montenegro: MW Type: republic Capital: Belgrade Administrative divisions: 2 republics (pokajine, singular - pokajina); and 2 nominally autonomous provinces*; Kosovo*, Montenegro, Serbia, Vojvodina* Independence: 11 April 1992 (Federal Republic of Yugoslavia formed as self-proclaimed successor to the Socialist Federal Republic of Yugoslavia - SFRY) National holiday: NA Constitution: 27 April 1992 Legal system: based on civil law system Suffrage: 16 years of age, if employed; 18 years of age, universal Executive branch: chief of state: President Zoran LILIC (since 25 June 1993); note - Slobodan MILOSEVIC is president of Serbia (since 9 December 1990); Momir BULATOVIC is president of Montenegro (since 23 December 1990); Federal Assembly elected Zoran LILIC on 25 June 1993 head of government: Prime Minister Radoje KONTIC (since 29 December 1992); Deputy Prime Ministers Jovan ZEBIC (since NA March 1993), Uros KLIKOVAC (since 15 September 1994), Nikola SAINOVIC (since 15 September 1995) cabinet: Federal Executive Council Legislative branch: bicameral Federal Assembly Chamber of Republics: elections last held 20 December 1992 (next to be held NA 1996); results - percent of vote by party NA; seats - (40 total, 20 Serbian, 20 Montenegrin) seats by party NA Chamber of Citizens: elections last held 20 December 1992 (next to be held NA 1996); results - percent of votes by party NA; seats - (138 total, 108 Serbian, 30 Montenegrin) SPS 47, SRS 34, Depos 20, DPSCG 17, DS 5, SP 5, NS 4, DZVM 3, other 3 Judicial branch: Savezni Sud (Federal Court), Constitutional Court Political parties and leaders: Serbian Socialist Party (SPS, former Communist Party), Slobodan MILOSEVIC; Serbian Radical Party (SRS), Vojislav SESELJ; Serbian Renewal Movement (SPO), Vuk DRASKOVIC, president; Democratic Party (DS), Zoran DJINDJIC; Democratic Party of Serbia (Depos), Vojlslav KOSTUNICA; Democratic Party of Socialists of Montenegro (DPSCG), Momir BULATOVIC, president; People's Party of Montenegro (NS), Milan PAROSKI; Liberal Alliance of Montenegro, Slavko PEROVIC; Democratic Community of Vojvodina Hungarians (DZVM), Andras AGOSTON; League of Communists-Movement for Yugoslavia (SK-PJ), Dragan ATANASOVSKI; Democratic Alliance of Kosovo (LDK), Dr. Ibrahim RUGOVA, president; Party of Democratic Action (SDA), Sulejman UGLJANIN; Civic Alliance of Serbia (GSS), Vesna PESIC, chairman; Socialist Party of Montenegro (SP), leader NA Other political or pressure groups: NA Diplomatic representation in US: US and Serbia and Montenegro do not maintain full diplomatic relations; the Embassy of the former Socialist Federal Republic of Yugoslavia continues to function in the US US diplomatic representation: chief of mission: (vacant); Charge d'Affaires Rudolf V. PERINA embassy: address NA, Belgrade mailing address: Box 5070, Unit 1310, APO AE 09213-1310 telephone:  (11) 645655 FAX:  (11) 645221 Flag: three equal horizontal bands of blue (top), white, and red Economy Overview: The swift collapse of the Yugoslav federation in 1991 has been followed by bloody ethnic warfare, the destabilization of republic boundaries, and the breakup of important interrepublic trade flows. Serbia and Montenegro faces major economic problems; output has dropped sharply, particularly in 1993. First, like the other former Yugoslav republics, it depended on its sister republics for large amounts of foodstuffs, energy supplies, and manufactures. Wide differences in climate, mineral resources, and levels of technology among the republics accentuated this interdependence, as did the communist practice of concentrating much industrial output in a small number of giant plants. The breakup of many of the trade links, the sharp drop in output as industrial plants lost suppliers and markets, and the destruction of physical assets in the fighting all have contributed to the economic difficulties of the republics. One singular factor in the economic situation of Serbia and Montenegro is the continuation in office of a communist government that is primarily interested in political and military mastery, not economic reform. A further complication is the imposition of economic sanctions by the UN in 1992. Hyperinflation ended with the establishment of a new currency unit in June 1993; prices were relatively stable in 1994. Reliable statistics are hard to come by; the GDP estimate of $1,000 per capita in 1994 is extremely rough. Output in 1994 seems to have leveled off after the plunge in 1993. National product: GDP - purchasing power parity - $10 billion (1994 est.) National product real growth rate: NA% National product per capita: $1,000 (1994 est.) Inflation rate (consumer prices): 20% (January-November 1994 est.) Unemployment rate: more than 40% (1994 est.) Budget: revenues: $NA expenditures: $NA, including capital expenditures of $NA Exports: $NA commodities: prior to the breakup of the federation, Yugoslavia exported machinery and transport equipment, manufactured goods, chemicals, food and live animals, raw materials partners: prior to the imposition of UN sanctions trade partners were the other former Yugoslav republics, Italy, Germany, other EC, the FSU countries, East European countries, US Imports: $NA commodities: prior to the breakup of the federation, Yugoslavia imported machinery and transport equipment, fuels and lubricants, manufactured goods, chemicals, food and live animals, raw materials including coking coal for the steel industry partners: prior to the imposition of UN sanctions trade partners were the other former Yugoslav republics, the FSU countries, EC countries (mainly Italy and Germany), East European countries, US External debt: $4.2 billion (1993 est.) Industrial production: growth rate NA% Electricity: capacity: 10,400,000 kW production: 34 billion kWh consumption per capita: 2,400 kWh (1994 est.) Industries: machine building (aircraft, trucks, and automobiles; armored vehicles and weapons; electrical equipment; agricultural machinery), metallurgy (steel, aluminum, copper, lead, zinc, chromium, antimony, bismuth, cadmium), mining (coal, bauxite, nonferrous ore, iron ore, limestone), consumer goods (textiles, footwear, foodstuffs, appliances), electronics, petroleum products, chemicals, and pharmaceuticals Agriculture: the fertile plains of Vojvodina produce 80% of the cereal production of the former Yugoslavia and most of the cotton, oilseeds, and chicory; Vojvodina also produces fodder crops to support intensive beef and dairy production; Serbia proper, although hilly, has a well-distributed rainfall and a long growing season; produces fruit, grapes, and cereals; in this area, livestock production (sheep and cattle) and dairy farming prosper; Kosovo produces fruits, vegetables, tobacco, and a small amount of cereals; the mountainous pastures of Kosovo and Montenegro support sheep and goat husbandry; Montenegro has only a small agriculture sector, mostly near the coast where a Mediterranean climate permits the culture of olives, citrus, grapes, and rice Illicit drugs: NA Economic aid: $NA Currency: 1 Yugoslav New Dinar (YD) = 100 paras Exchange rates: Yugoslav New Dinars (YD) per US $1 - 102.6 (February 1995 black market rate) Fiscal year: calendar year Serbia And Montenegro:Transportation Railroads: total: 3,960 km standard gauge: 3,960 km 1.435-m gauge (partially electrified) (1992) Highways: total: 46,019 km paved: 26,949 km unpaved: gravel 10,373 km; earth 8,697 km (1990) Inland waterways: NA km Pipelines: crude oil 415 km; petroleum products 130 km; natural gas 2,110 km Ports: Bar, Belgrade, Kotor, Novi Sad, Pancevo, Tivat Merchant marine: Montenegro: total 35 ships (1,000 GRT or over) totaling 543,511 GRT/891,664 DWT (controlled by Montenegrin beneficial owners) ships by type: bulk 15, cargo 14, container 5, short-sea passenger ferry 1 note: under Maltese and Saint Vincent and the Grenadines flags; no ships remain under Yugoslav flag Serbia: total 2 (1,000 GRT or over) totaling 113,471 GRT/212,742 DWT (controlled by Serbian beneficial owners) ships by type: bulk 2 note: all under the flag of Saint Vincent and the Grenadines; no ships remain under Yugoslav flag Airports: total: 54 with paved runways over 3,047 m: 2 with paved runways 2,438 to 3,047 m: 5 with paved runways 1,524 to 2,437 m: 5 with paved runways 914 to 1,523 m: 2 with paved runways under 914 m: 24 with unpaved runways 1,524 to 2,438 m: 2 with unpaved runways 914 to 1,523 m: 14 Serbia And Montenegro:Communications Telephone system: 700,000 telephones local: NA intercity: NA international: 1 INTELSAT (Atlantic Ocean) earth station Radio: broadcast stations: AM 26, FM 9, shortwave 0 radios: 2.015 million Television: broadcast stations: 18 televisions: 1 million Serbia And Montenegro:Defense Forces Branches: People's Army (includes Ground Forces with internal and border troops, Naval Forces, and Air and Air Defense Forces), Civil Defense Manpower availability: Montenegro: males age 15-49 194,154; males fit for military service 157,611; males reach military age (19) annually 5,498 (1995 est.) Serbia: males age 15-49 2,652,224; males fit for military service 2,131,894 (1995 est.) Defense expenditures: 245 billion dinars, 4% to 6% of GDP (1992 est.); note - conversion of defense expenditures into US dollars using the current exchange rate could produce misleading results
* * *Federated country, west-central Balkan Peninsula, southern Europe.It consists of two republics: Serbia and Montenegro. Area: 39,449 sq mi (102,173 sq km). Population (2002 est.): 10,663,806. Capital: Belgrade. The population comprises Serbian, Albanian, Montenegrin, Hungarian, and other ethnic groups. Languages: Serbian (Serbo-Croatian; official), Albanian. Religions: Serbian Orthodoxy, Islam, Catholicism, Protestantism. Currencies: Serbian dinar (Serbia); euro (Montenegro). The southern two-thirds of Serbia and Montenegro is mountainous, with the Dinaric Alps in the west and the Balkan Mountains in the east. Rivers include the Danube, Ibar, Morava, Timiş, and Tisza. The country has oil, gas, coal, copper, lead, zinc, and gold deposits. Its industries include machine building, metallurgy, mining, electronics, and petroleum products, while its agricultural products include corn, wheat, potatoes, and fruit. The country is a federation with a president and a unicameral legislature, but most power resides with the governments of the two republics. The Kingdom of Serbs, Croats, and Slovenes was created after the collapse of Austria-Hungary at the end of World War I. The country signed treaties with Czechoslovakia and Romania in 1920–21, marking the beginning of the Little Entente. In 1929 an absolute monarchy was established, the country's name was changed to Yugoslavia, and it was divided without regard to ethnic boundaries. Axis powers invaded Yugoslavia in 1941, and German, Italian, Hungarian, and Bulgarian troops occupied it for the rest of World War II. In 1945 the Socialist Federal Republic of Yugoslavia was established; it included the republics of Bosnia and Herzegovina, Croatia, Macedonia, Montenegro, Serbia, and Slovenia. Its independent form of communism under the leadership of Josip Broz Tito provoked the Soviet Union and led to its expulsion from the Cominform in 1948. Internal ethnic tensions flared up in the 1980s, causing Yugoslavia to collapse. In 1991–92 independence was declared by Croatia, Slovenia, Macedonia, and Bosnia and Herzegovina; the new Federal Republic of Yugoslavia (containing roughly 45% of the population and 40% of the area of its predecessor) was proclaimed by Serbia and Montenegro. Still fueled by long-standing ethnic tensions, hostilities continued into the 1990s (see Bosnian conflict; Kosovo conflict). In 2003, after the ratification of an accord by the governments of Serbia, Montenegro, and Yugoslavia, the country was renamed Serbia and Montenegro.
* * *▪ 2006Area:102,173 sq km (39,449 sq mi), including 10,887 sq km (4,203 sq mi) in the UN interim-administrated region of KosovoPopulation(2005 est.): 9,960,000, including 1,900,000 in KosovoAdministrative centres:Chief of state:President Svetozar MarovicHead of government:Efforts by Serbia and Montenegro to begin the process of integration into Europe, address issues of the country's future status—including that of the restive province of Kosovo—face up to corruption and war crimes, and deal with the economy dominated headlines in 2005. In October the International Monetary Fund temporarily suspended high-level talks with Belgrade following disagreements over Serbia's monetary and public-spending policies and the country's higher-than-planned inflation rate of 17%. The negotiations aimed at extending a nearly $1 billion standby credit arrangement were crucial for Serbia's transition process because they were linked to a $730 million debt write-off by the Paris Club of creditors, which had already canceled $2.3 billion of Serbia's $13 billion debt. In response Serbia's government approved a 2006 budget proposal of $6.9 billion, calling for more spending cuts in health services, aid to state-run companies, and salaries in the public-services sector. The government projected a surplus in 2006 of $560 million, compared with the budget deficit of $533 million the previous year. Serbian Deputy Prime Minister Miroljub Labus announced in November that he expected that Serbia and Montenegro would sign its first contract with the EU by November 2006. The International Criminal Tribunal for the Former Yugoslavia (ICTY), however, gave Serbia a strong warning that Belgrade had to deliver Bosnian Serb war-crimes fugitive Ratko Mladic by the end of the year or face “excommunication” from any Euro-Atlantic integration process.Officials contended that the main obstacles for economic development in Serbia were unemployment and the lack of investments, compounded by political issues such as cooperation with the ICTY, the status of Kosovo, and relations with Montenegro. In November a European Commission report found that economic growth in Serbia and Montenegro had improved, but problems regarding human rights, freedom of expression, corruption, and “inappropriate political interference” in the courts interfered with the country's development.Media intimidation and intolerance of ethnic and religious minorities increased somewhat. Journalists and nongovernmental organizations investigating Serbia's role in the wars that led to the dissolution of Yugoslavia were frequently threatened, beaten, and harassed by right-wing extremists and hooligans. Incidents involving discrimination were largely ignored by officials, and talk of independence for Kosovo and Montenegro increased fears that the northern province of Vojvodina, with more than 20 different ethnic groups, might also seek to leave Serbia. Serbia's Jewish community reported an increase in anti-Semitism.In November the government of Serbia brought criminal charges against 40 judges in an effort to fight corruption. Media and reformers repeatedly accused government prosecutors of serving the interests of politicians. The most publicized case came in August, when charges of extortion against Marko Milosevic, the son of former Serbian president Slobodan Milosevic, were dropped. A damning government report in September alleged the acquisition of military equipment by top Montenegrin officials and further damaged the already-tense relations between Serbia and Montenegro. It was widely expected that a referendum on Montenegro's future status would be held in April 2006.Public support for Serbian right-wing nationalists remained strong. According to several polls, the Serbian Radical Party of indicted war criminal Vojislav Seselj, which held the largest bloc of seats in Parliament, was the most popular, with Serbian Pres. Boris Tadic's Democratic Party a distant second and Serbian Prime Minister Vojislav Kostunica's Democratic Party of Serbia in either third or fourth place. In October Tadic recommended new parliamentary elections, alleging that the governing coalition under Kostunica had lost the trust of the voters and the government was “unstable.”Kosovo's political landscape remained polarized, despite efforts by the international community to broker a peaceful settlement over the future status of the province. Kosovo Pres. Ibrahim Rugova and Prime Minister Bajram Kosumi stressed that the province would accept nothing less than full independence after the completion of UN-sponsored final-status talks. Several proposals, notably from within the EU, had called for “conditional independence” for Kosovo, which would not enjoy full sovereignty until it joined the EU and adopted its rules and restrictions. Serb political leaders in Kosovo were divided about how to approach the negotiations, and even Tadic was not immune from using nationalist rhetoric. On a visit to a Kosovo Serb enclave in February, he stated that “this [Kosovo] is Serbia” and emphasized that independence for the predominantly Albanian-populated province was “unacceptable.” Kostunica said Belgrade would grant Kosovo broad autonomy but warned that outright independence could provoke a major crisis.Milan Andrejevich▪ 2005Area:102,173 sq km (39,449 sq mi)Population(2004 est.): 10,826,000, including 1,900,000 persons in the UN interim-administrated region of KosovoAdministrative centres:Chief of state:President Svetozar MarovicHead of government:Prime Ministers Zoran Zivkovic and, from March 3, Vojislav Kostunica (Serbia) and Milo Djukanovic (Montenegro)Some promising signs of political stability emerged in Serbia in 2004 amid the worst outbreak of interethnic violence since 1999 in the predominantly ethnic Albanian Kosovo area. Despite the obvious split among Serbs, Montenegrins, ethnic Albanians, and other minorities, the results of presidential and local elections indicated that Serbia's fragile political landscape continued to follow the reform-oriented direction it had adopted after Slobodan Milosevic's ouster in October 2000. Major Serbian leaders continued to withhold cooperation with the United Nations International Criminal Tribunal for the Former Yugoslavia. A growing number of government officials, however, were eager to win Serbia's entry into the EU and NATO and were pushing for cooperation with international investigators.In March the first formal talks took place between representatives of Serbia and Kosovo since the end of the 1999 war; the focus of the talks was on issues such as low energy supplies, missing persons, the return of Serbian refugees to Kosovo, and trade between the two entities. Ethnic Albanian and Serbian leaders remained divided over Kosovo's final status. Though the region was under UN administration and under the protection of some 19,000 NATO peacekeepers, the ethnic Albanian majority continued to insist on independence, while Serbia fiercely opposed the idea. Serbian Prime Minister Vojislav Kostunica reaffirmed Belgrade's position that Serbia would not let Kosovo gain independence and proposed a “partition or cantonization,” which he called the “decentralization” of Kosovo along ethnic lines. The Albanians rejected the idea on the grounds that it would have led to Kosovo's partition and given Serbs the mineral-rich north region of (Kosovska) Mitrovica, where about 60,000 Serbs lived and Albanians were a minority.Kostunica's plan came on the heels of three days of violence in early March that drove more than 4,000 Serbs and Roma (Gypsies) from their homes and claimed some 30 lives, mostly those of Serbs. NATO commanders likened the violence to ethnic cleansing, and the UN's top official in Kosovo, Harri Holkeri, stated that the violence had been “orchestrated” by Albanian extremists. A report in May by the Organization for Security and Co-operation in Europe accused major Albanian-language broadcasters of having incited the vengeful mood and violence through “sloppy and biased reporting.” The Serbs responded by boycotting the October parliamentary elections, which analysts said could deprive the Serbs of legitimate leaders to participate in any future talks on Kosovo's status. In the balloting for the 120-seat Kosovo assembly, Pres. Ibrahim Rugova's party, the pro-independence Democratic League of Kosovo, won the most seats but not enough for a parliamentary majority. In December, Ramush Haradinaj, a former rebel commander, was elected prime minister of Kosovo. The Serbs objected, but the UN refused to annul the election, and Belgrade broke off formal negotiations with the ethnic Albanians.The events also raised concerns about how deep the divisions had become after several years of international efforts, at a cost estimated at some $40 billion, to rebuild the infrastructure and reconcile hostilities. Unemployment fluctuated around 60–70%, and pervasive poverty exacerbated ethnic tensions. The attempt to make a smoother transition from a socialist to a market-oriented economy was also complicated by Kosovo's legal status. International investors saw Kosovo's unresolved political status as far too risky.In June—after four failed attempts within two years— Boris Tadic was elected president of Serbia. Tadic, who had succeeded Zoran Djindjic as leader of the opposition Democratic Party after Djindjic was assassinated in March 2003, defeated Tomislav Nikolic of the nationalist Serbian Radical Party. Both parties effectively divided power between them in municipal elections held in September and October.Tadic's victory was expected to boost the country's stalled reform initiatives, help stabilize the overall political situation, and give a jump start to Kostunica's reform efforts. Tadic's pledge to build a pro-democracy consensus was backed by Kostunica, head of the conservative Democratic Party of Serbia. Tadic and Kostunica pledged not to call early elections but rather to work on adopting a new constitution, but by year's end their cooperative spirit was beset by disagreements.Few analysts believed that the new government could quickly halt the slide into deeper recession. After payment of enormous sums of money to social services agencies and support for indebted state companies, a budget surplus was not expected for 2004. Unemployment officially stood at 30%, but economists warned that the true rate was higher than 40%. Foreign investment fell, though Serbia still attracted some $500 million, notably as a result of the sale of state tobacco companies to Philip Morris and British American Tobacco. It was not clear how much Belgrade paid on the more than $700 million due to service its $13 billion foreign debt.The state union of Serbia and Montenegro yielded little progress in reconciling differences over the future relations of the two republics. They failed to take steps toward creating a single-market economy, implementing joint reforms to the judiciary and police, or cooperating with the UN war crimes tribunal, all required for EU membership. The Montenegrin government was forced to shelve plans for a referendum on independence; polls showed a steady decline of support among Montenegrins, and the EU imposed an indefinite ban on such a move.In July progress was reported as the state union adopted a new defense doctrine in which Serbia and Montenegro agreed to focus its defense strategy entirely on integration with the West and stressed Belgrade's new determination to join NATO's Partnership for Peace. The new defense doctrine identified terrorism and organized crime as the biggest security threats facing the state union. As part of a broader defense-reform plan, Belgrade also started reducing the number of military facilities and personnel, as well as cutting back on equipment.Milan Andrejevich▪ 2004Area:102,173 sq km (39,449 sq mi)Population(2003 est.): 10,527,000Administrative centres:Chief of state:Presidents Vojislav Kostunica and, from March 7, Svetozar Marovic. The name of the state was changed from the Federal Republic of Yugoslavia to Serbia and Montenegro on February 4.Head of government:Prime Minister (of Yugoslavia) Dragisa Pesic to March 27; after that date the two constituent governments were led by Prime Minister Zoran Zivkovic (Serbia, elected by Parliament on March 18) and Milo Djukanovic (Montenegro, elected by Parliament on January 8)On Feb. 4, 2003, a new entity, dubbed a “state union” (drzavna zajednica in Serbian) and named Serbia and Montenegro, replaced the Federal Republic of Yugoslavia. The union was very loose; each republic maintained its own foreign policy, budget and fiscal system, trade and customs arrangements, and currency. The instrument of formation of the union, due to expire in 2006, was a prerequisite for the country's joining the Council of Europe and NATO's Partnership for Peace program. From the outset, however, the ongoing political crisis in Serbia and Montenegro's halfhearted support for union with Serbia threatened to disrupt the country's bid to join these organizations.The assassination of Serbian Prime Minister Zoran Djindjic in March resulted in an extensive crackdown on crime. (See Obituaries (Djindjic, Zoran ).) Among the estimated 10,000 individuals who were either detained or charged were former police, government, and military officials, many of whom had links to organized crime and to paramilitary groups reported to have committed war crimes in Croatia, Bosnia and Herzegovina, and Kosovo during the 1990s.Djindjic's successor, Zoran Zivkovic, was unable to jump-start the reform process. (See Biographies (Zivkovic, Zoran ).) Serbia failed in three attempts to elect a president, and the republic remained without a leader for more than a year; another attempt was to be made in January 2004. A draft republican constitution was not adopted, and the coalition government headed by the Democratic Opposition of Serbia dissolved, which forced parliamentary elections on December 28. In what was interpreted as a “hands-off” gesture to the world by the Serbian populace, two men sitting in jail in The Hague under indictment for war crimes, Slobodan Milosevic and Vojislav Seselj, won seats, and Seselj's ultranationalist Serbian Radical Party received the most votes, though not a clear majority. Observers expected a weak coalition government to be formed in early 2004.Seselj's victory and that of his party were emblematic of increasing disillusionment over the political stagnation in Serbia. Support for Montenegrin Pres. Milo Djukanovic also waned as he faced allegations of corruption, involvement in organized crime, conspiracy in a high-profile case involving human trafficking and prostitution, and complicity in war crimes. Even Djindjic was accused by his rivals of having been involved with criminal groups, and it was pointed out that his murder was masterminded by one such group after he vowed to crack down on crime.In June Serbia's parliament passed legislation allowing local courts to prosecute war crimes committed anywhere in the former Yugoslavia. More indictments were served by the International Criminal Tribunal for the Former Yugoslavia (ICTY) for atrocities allegedly committed by Serbian generals during the war in Kosovo. Zivkovic refused to accept the sealed indictments from ICTY chief prosecutor Carla del Ponte, stating that the matter was not a priority for the government. In October del Ponte gave the UN Security Council a negative assessment of Serbia and Montenegro's cooperation with the tribunal.The economy showed little sign of improvement. GDP growth was less than 1%—well below expectations and down 3% from the previous year. The trade deficit was $2.8 billion for the first eight months of 2003—a 35% increase over the same period in 2002—and Belgrade anted up only 10% of the $450 million it was scheduled to pay to service its $13 billion foreign debt. Government figures placed the unemployment rate at 30%, though independent economists estimated it at nearer 45%. On the positive side, the federal government ended with budget surpluses of $100 million in 2002 and about $55 million in 2003.Negotiations began between ethnic Serbs and Albanians over the status of Kosovo. Kosovo's Albanian leaders held steadfast to their aspirations of independence, while the Serbian government and parliament ruled it out. Kosovo Serbs called for the ethnic partition of the region, a move supported by Djindjic and Zivkovic. The first-ever formal talks between the two communities dealt with issues such as identity cards, vehicle registration, electric energy supplies, and the return of people displaced by the 1999 conflict. The international community pressured Kosovo's Albanian leaders to issue a statement urging displaced Serbs to return to their homes in the province.Milan Andrejevich
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