Republic of Serbia

Република Србија
Republika Srbija
Republic of Serbia

Anthem
Боже Правде
Bože Pravde

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UNMIK

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Capital

Belgrade

Government

Republic and parliamentary democracy

President

- From 2004

Boris Tadić

Prime Minister

- From 2008

Mirko Cvetković

Legislature

National Assembly

History

- June 5, 2006

End of Union with Montenegro

Area

88,361 km²

Population

- 2010

7,306,677

Density

82.6/km²

GDP

2010 (PPP)

- Total

US$ 78.9 billion

- Per capita

US$ 10,808

Currency

Serbian dinar

Serbia and Montenegro

Serbia

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The Republic of Serbia is a parliamentary democracy in the Balkans.

Background

The Kingdom of Serbs, Croats, and Slovenes was formed in 1918; its name was changed to Yugoslavia in 1929. Various paramilitary bands resisted Nazi Germany's occupation and division of Yugoslavia from 1941 to 1945, but fought each other and ethnic opponents as much as the invaders. The military and political movement headed by Josip "TITO" Broz (Partisans) took full control of Yugoslavia when German and Croatian separatist forces were defeated in 1945. Although Communist, TITO's new government and his successors (he died in 1980) managed to steer their own path between the Warsaw Pact nations and the West for the next four and a half decades. In 1989, Slobodan MILOSEVIC became president of the Republic of Serbia and his ultranationalist calls for Serbian domination led to the violent breakup of Yugoslavia along ethnic lines. In 1991, Croatia, Slovenia, and Macedonia declared independence, followed by Bosnia in 1992. The remaining republics of Serbia and Montenegro declared a new Federal Republic of Yugoslavia (FRY) in April 1992 and under MILOSEVIC's leadership, Serbia led various military campaigns to unite ethnic Serbs in neighboring republics into a "Greater Serbia." These actions led to Yugoslavia being ousted from the UN in 1992, but Serbia continued its - ultimately unsuccessful - campaign until signing the Dayton Peace Accords in 1995. MILOSEVIC kept tight control over Serbia and eventually became president of the FRY in 1997. In 1998, an ethnic Albanian insurgency in the formerly autonomous Serbian province of Kosovo provoked a Serbian counterinsurgency campaign that resulted in massacres and massive expulsions of ethnic Albanians living in Kosovo. The MILOSEVIC government's rejection of a proposed international settlement led to NATO's bombing of Serbia in the spring of 1999, to the withdrawal of Serbian military and police forces from Kosovo in June 1999, and to the stationing of a NATO-led force in Kosovo to provide a safe and secure environment for the region's ethnic communities. FRY elections in late 2000 led to the ouster of MILOSEVIC and the installation of democratic government. MILOSEVIC was arrested in 2001 and sent to be tried in The Hague for crimes against humanity; he died in March 2006 before the completion of his trial. In 2001, the country's suspension from the UN was lifted. In 2003, the FRY became Serbia and Montenegro, a loose federation of the two republics with a federal level parliament. Widespread violence predominantly targeting ethnic Serbs in Kosovo in March 2004 caused the international community to open negotiations on the future status of Kosovo in January 2006. In May 2006, Montenegro invoked its right to secede from the federation and - following a successful referendum - it declared itself an independent nation on 3 June 2006. Two days later, Serbia declared that it was the successor state to the union of Serbia and Montenegro. A new Serbian constitution was approved in October 2006 and adopted the following month. In February 2008, after nearly two years of inconclusive negotiations, the UN-administered province of Kosovo declared itself independent of Serbia - an action Serbia refuses to recognize. At Serbia's request, the UN General Assembly (UNGA) in October 2008 sought an advisory opinion from the International Court of Justice (ICJ) on whether Kosovo's unilateral declaration of independence was in accordance with international law. In a ruling considered unfavorable to Serbia, the ICJ issued an advisory opinion in July 2010 stating that international law did not prohibit declarations of independence. In late 2010, Serbia agreed to an EU-drafted UNGA Resolution acknowledging the ICJ's decision and calling for a new round of talks between Serbia and Kosovo.^[1]

Economy

MILOSEVIC-era mismanagement of the economy, an extended period of international economic sanctions, and the damage to Yugoslavia's infrastructure and industry during the NATO airstrikes in 1999 left the economy only half the size it was in 1990. After the ousting of former Federal Yugoslav President MILOSEVIC in September 2000, the Democratic Opposition of Serbia (DOS) coalition government implemented stabilization measures and embarked on a market reform program. After renewing its membership in the IMF 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). Belgrade has made progress in trade liberalization and enterprise restructuring and privatization, including telecommunications and small- and medium-size firms. It has made some progress towards EU membership, signing a Stabilization and Association Agreement with Brussels in May 2008, and with full implementation of the Interim Trade Agreement with the EU in February 2010. Serbia is also pursuing membership in the World Trade Organization. Reforms needed to ensure the country's long-term viability have largely stalled since the onset of the global financial crisis. Serbia is grappling with fallout from crisis, which has led to a sharp drop in exports to Western Europe and a decline in manufacturing output. Unemployment and limited export earnings remain ongoing political and economic problems. Serbia signed an augmented $4 billion Stand By Arrangement with the IMF in May 2009. IMF conditions on Serbia constrain the use of stimulus efforts to revive the economy, while Serbia's concerns about inflation and exchange rate stability preclude the use of expansionary monetary policy. Serbia's economy grew by 1.8% in 2010 after a 3% contraction in 2009 as a recovery in Western Europe began.^[2]