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Serbia and Montenegro is a country, a loose federation of two republics called Serbia and Montenegro. It is located on the west-central Balkan Peninsula.
Serbia and Montenegro, the
remaining federal states of the Socialist Federal Republic of Yugoslavia, came to an agreement only to
cooperate in some political fields (e.g. a defence union). The states have their own economic policies and currencies. Serbia and
Montenegro does not have a unified capital any more. Though most institutions are in Belgrade, some have been moved to Podgorica.
A new constitution was accepted on February 4, 2003, and each of the two states may seek full independence via a referendum to be held in 2006.
History
Main articles: History of Serbia
and Montenegro, History of Yugoslavia
Upon its creation in 1992, the United Nations, and many individual
states (especially the United States) had refused to recognise the
remaining confederation of Serbia and Montenegro as the continuation of the Socialist Federal Republic of Yugoslavia, although they accepted it as
constituting a state. This was due to the ongoing Yugoslav wars, which
had prevented agreement being reached on the disposition of federal assets and liabilities, particularly the national debt. The
Federal Republic of Yugoslavia was finally re-admitted to the United Nations in 2000 after
several years of suspension.
In 2002, Serbia and Montenegro came to a new agreement regarding continued co-operation,
which, among other changes, promised the end of the name Yugoslavia. On February
4, 2003, the federal parliament of Yugoslavia created a loose commonwealth of Serbia and Montenegro called Serbia and Montenegro.
Political divisions
Main article: Internal structure of Serbia and Montenegro
Economy
Main article: Economy of Serbia
and Montenegro
Mismanagement of the economy, an extended period of economic sanctions, and the damage to Yugoslavia's infrastructure and
industry caused by the Kosovo War have left the economy only half the size it
was in 1990. Since the ousting of former Federal Yugoslav President Slobodan Milosevic in October 2000, the Democratic Opposition of Serbia (DOS)
coalition government has implemented stabilization measures and embarked on an aggressive market reform program. After renewing
its membership in the International Monetary
Fund in December 2000, Yugoslavia continued to reintegrate into the international community by rejoining the World Bank (IBRD) and the European Bank
for Reconstruction and Development (EBRD). A World Bank-European Commission sponsored Donors' Conference held in June 2001 raised $1.3 billion for economic
restructuring. An agreement rescheduling the country's $4.5 billion Paris Club government debts was concluded in November 2001; it will write off 66% of the debt;
a similar debt relief agreement on its $2.8 billion London Club commercial debt is still pending. The smaller republic of Montenegro severed its economy from federal control and from Serbia during the Milosevic era and continues to
maintain its own central bank, uses the euro instead of the Yugoslav dinar as official
currency, collects customs tariffs, and manages its own budget.
The southern Serbian province of Kosovo, while technically still part of Serbia
(according to United Nations Security Council Resolution 1244), is moving toward local autonomy under the United Nations Interim
Administration Mission in Kosovo (UNMIK) and is dependent on the international community
for financial and technical assistance. The euro and the Yugoslav dinar are official currencies, and UNMIK collects taxes and
manages the budget. The complexity of Serbia and Montenegro political relationships, slow progress in privatization, and
stagnation in the European economy are holding back the economy. Arrangements with the IMF, especially requirements for fiscal
discipline, are an important element in policy formation. Severe unemployment remains a key political economic problem.
Transportation
Main article: Transportation in Serbia and Montenegro
Serbia, and in particular the valley of Morava is often described as "the crossroad between the East and the West", which is one of primary reasons for its turbulent history.
The valley is by far the easiest way of land travel from continental Europe to Greece and Asia Minor.
Major international highways going through Serbia are E75 and E70. E763/E761 is the most important route connecting Serbia with
Montenegro.
The Danube, an important international waterway, flows through Serbia. The largest
sea harbour is Montenegro's Bar.
Miscellaneous topics
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