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Serbia and Montenegro: Countries Caught in the Grip of Organized Crime

Belgrade, Serbia - The recent assassination of Serbian Prime Minister Zoran Djindjic has sent shockwaves throughout the region, highlighting the deep-seated corruption and organized crime that has plagued both Serbia and Montenegro since the fall of Slobodan Milosevic’s regime.

Challenges in Implementing Reforms

In Serbia, the government’s ability to implement reforms was severely limited by its close ties with organized crime groups. The security services, which were responsible for fighting crime, were themselves involved in criminal activities, making it difficult to dismantle them decisively. This lack of action proved fatal not only for Prime Minister Djindjic but also for the entire reform process.

• The government’s inability to effectively reform the army, a federal institution that posed a constant threat to its authority, further hindered progress.
• Fear of an army coup d’etat was exaggerated, but it still played a significant role in shaping the government’s behavior. As a result, the reform of the army remains incomplete.

Montenegro: A “Captured State”

Meanwhile, Montenegro has been described as a “captured state” with a political structure deeply connected to the informal economy. Prime Minister Milo Djukanovic has been implicated in widespread cigarette smuggling, and recently, a scandal involving prostitution and human trafficking made headlines.

• While it is difficult to assess the extent of organized crime in Montenegro, there is little doubt that an informal economy plays a significant role, and that this economy relies heavily on corruption.
• The government’s lack of commitment to the rule of law has created a constant obstacle to economic development and political stability.

Threats to EU Integration

The failure of both countries to tackle organized crime and corruption threatens their prospects for EU integration, which is seen as crucial for their future stability and modernization. The international community is increasingly viewing organized crime as the most significant problem facing Serbia and Montenegro, more so than any other issue.

A Brief History of Serbia and Montenegro

Serbia and Montenegro were once part of Yugoslavia, which broke apart in the early 1990s. After the war in Kosovo in 1999, Serbia and Montenegro formed a new Federal Republic of Yugoslavia. However, the two states began drifting apart, with Montenegro introducing its own currency and laws.

• By October 2000, when Slobodan Milosevic was ousted, Serbia and Montenegro had de facto separate governments and legal systems.
• The presidential elections in September 2000 saw Vojislav Kostunica elected as president of Yugoslavia, but the governing parties in Montenegro boycotted the election, leading to political instability. The problem was eventually resolved with a referendum on independence, which Montenegrins overwhelmingly supported.