Serbia and Montenegro

Serbia and Montenegro (Serbian: Србија и Црна Гора, Srbija i Crna Gora, often abbreviated as "SCG") is the name of the union of Serbia and Montenegro, two former Yugoslav republics united since 2003 in a loose confederation. It is located on the west-central Balkan Peninsula.

Economy

Main article: Economy of Serbia and Montenegro

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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 Milo?evi? 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 has been reached in July 2004; 62% of the debt have been written off.

Related Topics:
Kosovo War - 1990 - Slobodan Milo?evi? - Democratic Opposition of Serbia - International Monetary Fund - World Bank - European Bank for Reconstruction and Development - European Commission - Paris Club - London Club

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The smaller republic of Montenegro severed its economy from federal control and from Serbia during the Milo?evi? era. Now both republics have separate central banks, different currencies - Montenegro uses the euro, while Serbia uses the Serbian dinar as official currency. The two states also have different customs tariffs, separate state budgets, police forces, governments.

Related Topics:
Montenegro - Euro

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The southern Serbian province of Kosovo, while formally 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.

Related Topics:
Kosovo - UNMIK

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The complexity of Serbia and Montenegro's political relationships, slow progress in privatisation, 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. Corruption also presents a major problem, with a large black market and a high degree of criminal involvement in the formal economy.

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:Economy statistics: Economy of Serbia

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