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What’s Behind the Arms Buildup in the Balkans - War on the Rocks


Vuk Vuksanovic and Marija Ignjatijevic

15-19 minutes

  _____  

No one wants a Balkans arms race, even if it’s a “mini” one. Last May, when 
Croatia bought a dozen used Rafale fighter jets for $1.2 billion, the 
Associated Press described it 
<https://apnews.com/article/middle-east-croatia-europe-government-and-politics-business-3385f071a33bd4fdb0fbce949af17ab0>
  as part of a “mini arms race” with Serbia. In October, the Economist reported 
<https://www.economist.com/europe/2021/10/30/serbia-is-on-a-shopping-spree-for-weapons>
  on Serbia’s “weapons shopping spree” and $1.4 billion-a-year military budget 
under the headline “A Balkans arms race.”

In this case, the analysis might be off, but the concern is warranted. While 
Serbia and Croatia are indeed rapidly building up their respective arsenals, 
describing this as a simple arms race misunderstands the dynamic at play. In 
modernizing outdated military hardware left over from the Yugoslav era, 
Belgrade and Zagreb are not driven by strategic competition or fears of 
conflict with one another. Rather, elites in both countries are using the 
process of buying new weapons to advance broader foreign policy goals and, most 
importantly, improve their domestic political standing. The prospect of war is 
not realistic, but using arms procurement as an opportunity for saber-rattling 
can nonetheless destabilize the region.

Toys for the Serbian and Croatian Militaries

Over the past six years, Serbian and Croatian leaders have happily fed the 
narrative of an arms race as they engaged in a series of high-profile weapons 
purchases. The good news is that actual procurement has sometimes lagged behind 
the rhetoric, and, to date, neither side has exceeded the arms control 
provisions of the Dayton agreement.

Discussion of a regional arms race began in 2015 
<https://www.total-croatia-news.com/business/1938-arms-race-to-start-between-croatia-and-serbia>
  when Croatia asked the United States to donate 16 Lockheed Martin-produced 
M270 Multiple Launch Rocket System armed with ballistic missiles. Incumbent 
Serbian President Aleksandar Vučić, then prime minister, responded by 
announcing: “Either they will have to change their mind, or we will have to 
find an answer to that.” Serbia quickly started looking to Russia for an 
answer. During a January 2016 
<https://www.b92.net/biz/vesti/srbija.php?yyyy=2016&mm=01&dd=11&nav_id=1083975> 
 visit to Belgrade, Russia’s Deputy Prime Minister raised expectations by 
giving a model of the Russian S-300 missile defense system as a gift to Vučić. 
Over the course of the following year, tensions rose when the Croatian 
government 
<https://www.b92.net/eng/news/region.php?yyyy=2016&mm=02&dd=25&nav_id=97174>  
cited Serbia’s military buildup as possible grounds for reinstituting 
conscription.

In the end, however, Croatia did not receive U.S. rocket launchers and Serbia 
did not receive Russian S-300s. Despite the heated rhetoric, both countries 
faced financial constraints, and the great powers they were courting did not 
prove as forthcoming as they’d hoped.

Belgrade and Zagreb nevertheless persevered in their pursuit of new weapons, 
spending 
<https://www.euractiv.com/section/all/short_news/serbia-had-the-highest-military-expenditure-in-2019/>
  billions 
<https://balkaninsight.com/2020/12/14/transparency-concerns-over-serbias-growing-military-outlay/>
  on defense deals over the last several years. In 2017 Serbia’s largest 
defense contractor, Yugoimport-SDPR, developed a Šumadija tactical missile 
<https://www.yugoimport.com/en/proizvodi/shumadia-modular-self-propelled-multiple-launch-weapon>
  with a range of over 280 kilometers. To increase its air policing 
capabilities, Serbia received MIG-29 fighter jets from Russia 
<https://www.voanews.com/a/russia-hands-mig-twenty-nine-fighter-jets-serbia/4079225.html>
  and Belarus 
<https://rs.n1info.com/english/news/belarus-delivers-four-russian-made-mig-29-planes-to-serbia/>
  in 2021. Through a mix of sales and donations Russia 
<https://tass.com/world/1074014>  also provided 
<https://rs.n1info.com/english/news/serbia-receives-30-tanks-armoured-vehicles-from-russia-worth-e75-mil/>
  Belgrade 
<https://www.voanews.com/europe/more-russian-weapons-serbia-despite-us-sanction-threats>
  Mi-35 and Mi-17 military transport helicopters, T-72MS tanks, BRDM-2MS 
armored reconnaissance vehicles, and a rapid-fire Pantsir S1 
<https://www.voanews.com/a/europe_more-russian-weapons-serbia-despite-us-sanction-threats/6184714.html>
  anti-aircraft missile system.

Serbia has not been picky whether it was getting hardware from Western or 
non-Western powers. It plans to buy about 30 military helicopters 
<https://seenews.com/news/serbia-to-buy-about-30-military-helicopters-in-2022-2023-765227>
  in the next two years, some from the European multinational Airbus and some 
from Mil Moscow Helicopter Plant, a subsidiary of Russian Helicopters company. 
After agreeing to buy the French surface-to-air missile system Mistral, 
Belgrade is now eyeing the purchase 
<https://rs.n1info.com/english/news/a628502-rfe-us-warns-serbia-over-chinese-aa-missile-system-purchase/>
  of the Chinese FK-3 anti-aircraft rocket and Israel’s SPIKE LR2 anti-armor 
missiles 
<https://www.al-monitor.com/originals/2021/09/why-serbia-wants-buy-spike-missiles-israel>
 . Further, Serbia’s acquisition of six Chinese CH-92A drones 
<https://rusi.org/explore-our-research/publications/commentary/chinese-drones-in-serbian-skies>
 , along with the accompanying technology transfers, has allowed it to become 
the largest drone operator in the Balkans.

Croatia, of course, has kept pace. In 2015 and 2016, Zagreb acquired 
<https://www.morh.hr/en/pzh-2000-howitzers-for-the-croatian-armed-forces-presented/>
  12 Panzerhaubitze 2000 howitzers from Germany and 16 Kiowa Warrior 
helicopters from the United States. It subsequently received AGM-114 Hellfire 
missiles from Lockheed Martin and, in late 2020 
<https://www.army-technology.com/news/us-modernisation-croatia-bradley-vehicles/>
 , signed a deal for the modernization of 76 Bradley Fighting vehicles 
alongside associated machine guns and missiles.

Still, as arms control experts have noted 
<https://ifsh.de/en/news-detail/policy-brief-on-the-spectre-of-an-arms-race-in-the-western-balkans>
 , these purchases have yet to exceed internationally agreed restrictions. 
Article IV of Annex 1B of the Dayton Peace Agreement 
<http://hrlibrary.umn.edu/icty/dayton/daytonannex1B.html>  has been the bedrock 
of arms control in the Western Balkans since 1995, first under the auspice of 
the Organization for Security and Co-operation in Europe, then, since 2015, by 
agreement between the signatory states  of Serbia, Croatia, Bosnia and 
Herzegovina, and Montenegro. In the five categories of weaponry covered by 
Article IV — battle tanks, armored combat vehicles, artillery, combat aircraft, 
and combat helicopters — both Serbia and Croatia are still within the mandated 
limits 
<https://ifsh.de/en/news-detail/policy-brief-on-the-spectre-of-an-arms-race-in-the-western-balkans>
 .

Not Quite an Arms Race

In theory, Croatia and Serbia could use their new weaponry in a future Balkan 
conflict. Some U.S. analysts 
<https://nationalinterest.org/blog/reboot/why-serbia%E2%80%99s-latest-missiles-are-being-pointed-nato-177633>
  noted that Serbia could deploy Šumadija missiles against its neighbors if 
they took part in another NATO campaign against Belgrade. The drones acquired 
by Serbia would also be powerful instruments in a hypothetical battle in Kosovo 
or Bosnia. If the status quo were to break down in Bosnia, the resulting 
fighting would inevitably suck in both Serbia and Croatia, who might then have 
occasion to employ their new arsenals. Croatian howitzers and attack 
helicopters would be effective in the low-land Serbo-Croatian border, while 
Israeli SPIKE missiles would be a potential equalizer for Serbia 
<https://www.al-monitor.com/originals/2021/09/why-serbia-wants-buy-spike-missiles-israel>
 . But despite this, Bosnia has been largely absent from the rhetoric 
surrounding re-armament in both Belgrade and Zagreb.

More importantly, launching a new conflict in the Balkans makes no political or 
military sense. Indeed, there is no realistic goal that Croatia or Serbia could 
hope to achieve by attacking one other. It has become almost impossible to 
control territories inhabited by a hostile population, even for the most 
powerful militaries. Since 1995, neither the Croatian minority in Serbia nor 
the Serbian minority in Croatia is large enough to serve as the foundation for 
separatist ambitions.

What’s more, Croatia has been a member of NATO since 2009 
<https://www.nato.int/summit2009/topics_en/08-croatia.html> . A Serbian attack 
on Croatia would activate the collective defense clause within Article 5 
<https://www.nato.int/cps/en/natohq/topics_110496.htm>  of the North Atlantic 
Treaty, prompting NATO’s response against Belgrade. Similarly, NATO still has 
3,600 troops in Kosovo as part of the Kosovo Force 
<https://shape.nato.int/ongoingoperations/nato-mission-in-kosovo-kfor-> , 
ensuring that the Serbo-Albanian dispute over Kosovo will not be resolved 
militarily.

It would also be folly for Croatia to launch an offensive. The fear of being 
bogged down in the face of a partisan insurgency played a role in NATO’s 1999 
decision not to send ground troops 
<https://www.brookings.edu/opinions/if-no-ground-troops-nato-should-cut-its-losses/>
  against Serbia. If that threat was enough to deter NATO, it is enough to 
deter Croatia. Equally important is the fact that NATO-Serbian relations are 
much different now than in 1999. While Serbia does not seek NATO membership, it 
is a member of NATO’s Partnership for Peace program, and its Individual 
Partnership Action Plan 
<https://europeanwesternbalkans.com/2019/11/08/serbia-adopts-new-ipap-with-nato/>
  represents the highest level of cooperation a non-member state has with the 
alliance.

Moreover, waging war has become expensive for local capitals. That is why 
Croatia replaced its conscription military service with a professional army in 
2008 
<https://balkaninsight.com/2017/01/26/croatia-s-announced-military-service-not-realistic-01-25-2017/>
 , and Serbia did the same in 2011 
<https://balkaninsight.com/2010/12/02/serbia-to-say-farewell-to-compulsory-military-conscription/>
 . The budget deficit 
<https://balkaninsight.com/2017/10/04/croatian-govt-risks-increasing-budget-deficit-10-03-2017/>
  has been a growing concern in Croatia in recent years, impeding defense 
planning. The Serbian military is experiencing a constant loss of its 
professional cadre 
<https://bezbednost.org/en/publication/why-are-people-leaving-the-serbian-defence-system/>
 . The region 
<https://www.helvetas.org/en/eastern-europe/about-us/follow-us/helvetas-mosaic/article/March2021/demographic-decline-southeast-europe>
  as a whole is lagging behind in socio-economic terms and experiencing a 
demographic decline. That not only deprives the local leaders of the money and 
manpower to fight a prolonged war, but it also limits the spoils that any 
country could hope to achieve through victory.

Arms Procurement in Service of Foreign Policy

So, if they are not preparing for a war, why are Belgrade and Zagreb buying so 
many weapons? Both countries are conducting overdue military modernization 
while using the process to achieve other goals. In the realm of foreign policy, 
Serbia and Croatia are both trying to position themselves amidst growing 
security anxieties in Eastern Europe and worsening tensions between Russia and 
the West.

So long as the West perceives Russia 
<https://yalebooks.yale.edu/book/9780300219135/rival-power>  as a threat, 
Serbia has an opportunity to play Russia and the West against each other. In 
this balancing act, its arms buildup is both an end and a means. Serbia wants 
to be able to buy weapons from all sides. It also hopes that having a 
formidable military will enhance its leverage on all sides as well. Military 
cooperation with Russia is a way for Serbia to increase its bargaining power 
with the West on outstanding issues like the Kosovo dispute. Serbia knows that 
the unprovoked use of military force in theaters like Bosnia or Kosovo would 
attract Western hostility and intervention. However, Belgrade still believes 
that with more weaponry at its disposal it can do better at the negotiating 
table.

Croatia, in turn, has used the same regional dynamics to raise its standing in 
the West. As one of newest members of both NATO and the European Union, Zagreb 
<https://www.foreignaffairs.com/articles/croatia/2017-07-25/croatia-russia-and-balkan-great-game>
  has tried to portray itself as a Western bulwark in a dangerous region, 
facing down Russian meddling and an unpredictable Serbia. Croatia’s National 
Security Strategy of 2017 
<https://www.soa.hr/files/file/National-Security-Strategy-2017.pdf>  does not 
mention Serbia, but it refers to the country’s “Southeastern neighbourhood” as 
“a source of potential challenges.” Defense modernization serves to promote 
Croatia as the anchor of regional stability. It also helps Croatia uphold 
NATO’s target of 2 percent defense spending. Indeed, Croatian Prime Minister 
Andrej Plenković has stated that purchasing Rafale jets 
<https://www.france24.com/en/europe/20210528-croatia-to-buy-12-used-rafale-fighter-jets-from-france-for-%E2%82%AC1-billion>
  from France takes Croatia’s defense spending beyond NATO’s threshold.

A Lack of Transparency

The arms race narrative also feeds, and feeds off of, a lack of defense sector 
transparency. Over the past five years there has been a noticeable decline in 
the transparency of Serbia’s defense sector 
<https://bezbednost.org/wp-content/uploads/2020/06/NED-eng-screen-fin.pdf> , 
particularly in finances and procurement. During this period a number of bad 
practices have been legalized. For instance, legal amendments have allowed the 
government to declare whole categories of data confidential under the guise of 
protecting national security. One of the categories marked confidential in 2016 
was human resources management 
<https://bezbednost.org/en/publication/why-are-people-leaving-the-serbian-defence-system/>
 . Hence, the Serbian public cannot find official records about personnel in 
the defense system, and least of all, personnel drain.  Sensationalist 
reporting on weapons and military modernization goes hand in with preventing 
the public from learning about military personnel leaving the service on 
account of unsatisfactory conditions. Were this information more readily 
available, it would shatter the image of a competent government taking good 
care of the army, one of the most respected national institutions.

The lack of transparency in defense procurement also drives perceptions of an 
arms race. Military  spending is exempt from Serbia’s Law on Public 
Procurement. This means that the Serbian Ministry of Defense does not report 
<https://bezbednost.org/en/publication/security-sector-capture-in-serbia-an-early-study/>
  on confidential procurement, or even provide a lump sum of the total money 
spent. Nor does it publish whether, when, or with whom confidential procurement 
contracts are signed. Even in 2019, when legislation on public procurement was 
amended 
<https://preugovor.org/Alarm-Reports/1596/Coalition-prEUgovor-Report-on-Progress-of-Serbia.shtml>
  to align with European standards, the range of national security exemptions 
was broadened. Unlike in Croatia, long-term planning documents are not 
disclosed to the public. Hence, there is no way to determine whether the 
government’s spending is keeping up with its own strategic planning. Instead 
government officials announce sales when it suits them. In 2018, the president 
even said he would “surprise 
<https://obris.org/regija/rusija-modernizira-vojsku-srbije/> ’’ citizens and 
soldiers with a new arms purchase.

Croatian non-transparency also benefits from the rhetoric of an arms race. As a 
NATO member, Croatia’s finance and procurement transparency level is higher 
than Serbia’s 
<https://ti-defence.org/publications/the-transparency-of-national-defence-budgets/>
 . Up to a point. To reach NATO’s spending threshold, for example, Croatia 
pulled a bookkeeping trick 
<https://obris.org/hrvatska/nato-i-obrambena-izdvajanja-rh-na-prvu-loptu-i-trajnu-stetu/>
  by including war veteran pensions in its military expenditure. For the 
government in Zagreb, anti-Serbian rhetoric also helped suppress debate over 
its latest fighter jet purchase 
<https://obris.org/hrvatska/dan-hrz-nit-proslave-nit-glasa-od-aviona/>  on 
supposed national security grounds. Throughout 2020, the Croatian public was 
kept out of loop as the government negotiated with potential bidders, raising 
suspicions about the competence of the Croatian negotiators. When the deal to 
purchase Rafale jets from France was announced, local media raised questions 
about the sudden jump in price 
<https://slobodnadalmacija.hr/vijesti/hrvatska/hrvatska-je-macronu-platila-rafale-67-posto-jeftinije-nego-grcka-je-li-za-to-dobila-macka-u-vreci-ili-najjacu-eskadrilu-u-sirem-susjedstvu-1146331>
  and asked whether Croatia has the logistical capabilities 
<https://balkans.aljazeera.net/teme/2021/6/6/hrvatski-gradjani-znaju-da-ce-platiti-rafale-i-gotovo-nista-vise>
  to make effective use of these jets. The government hopes that tough talk 
toward Serbia can ensure these awkward questions will be overlooked.

The Dangers of Domestic Politics

To date, the arms race narrative has worked well for leaders in both Zagreb and 
Belgrade. When sensationalist reporting about arms sales is combined with 
military exercises and moves like reintroducing conscription, it triggers 
escalating rhetoric on all sides. Political leaders and the media are all too 
proficient in stirring the tensions and scoring populist points in order to 
avoid accountability for their own records. Inflammatory nationalist rhetoric 
is a tried and tested recipe in the region for mobilizing voters and divertubg 
attention from corruption and economic problems.

Not suprisingly, the “arms race” narrative has typically peaked during 
pre-election periods 
<https://www.euractiv.com/section/enlargement/news/serbia-croatia-relations-strained-by-the-past/>
 . Both Serbia and Croatia had parliamentary elections in 2016, the year the 
narrative first took hold. Ahead of the 2017 presidential elections in Serbia, 
front pages were full of reports about the arrival of MIG-29 jets from Russia. 
Headlines <https://www.dw.com/sr/medijska-militarizacija-balkana/a-37343933>  
announced that “Putin will defend Serbia with weaponry” and “The Serbian Army 
will roar when the new MIGs arrive.”

A return to the armed hostilities of the 1990s is highly unlikely, but the 
current process is still alarming. It is dangerous because it further poisons 
the already distrustful relationships between regional states. Moreover, it 
perpetuates the poor state of local governance. So long as spitting in the 
direction of your neighbors is a more appealing option than discussing policy, 
the region will be plagued by economic problems and poor public services. War 
is unlikely, but bullets do not have to be fired for the damage to be inflicted.

Serbia and Croatia have every right to modernize their outdated arsenals, 
particularly in light of technological transformation that is changing the 
global security landscape. However, they should do it in less toxic fashion. 
Perhaps in time politicians in both countries will come to perceive how hawkish 
rhetoric has actually undermined their international prestige. Or perhaps a new 
generation of more mature leaders will eventually emerge.

When this happens, both capitals should begin reducing tensions through 
consultations and confidence-building measures. In doing so, they can rely on 
the extant regional arms control regime, emboided by Article IV of Annex 1B of 
the Dayton Peace Agreement. They can also develop a billateral system of 
consultations between their military staffs to reduce security anxieties. More 
importantly, they can abandon the rhetoric of an arms race. Defense and 
national security should be left out of domestic politics in the Balkans where 
historical wounds have been slow to heal.

Vuk Vuksanovic <https://twitter.com/v_vuksanovic>  is a senior researcher at 
the Belgrade Centre for Security Policy and an associate of LSE IDEAS, a 
foreign policy think tank at the London School of Economics and Political 
Science. He received his Ph.D. in international relations from the London 
School of Economics and Political Science. He has published widely on modern 
foreign and security policy issues. 

Marija Ignjatijevic <https://twitter.com/ignjatijevic__>  is a researcher at 
the Belgrade Centre for Security Policy. Her field of expertise covers defense 
policy, international military cooperation, parliamentary oversight of the 
armed forces, and the violent extremism in the Western Balkans. This piece is 
derived from the analysis 
<https://bezbednost.org/en/publication/a-quasi-arms-race-serbia-and-croatia/>  
they co-authored for the Belgrade Centre for Security Policy.

Image: U.S. Army (Photo by 1st Lt. Caroline Pirchner) 
<https://www.dvidshub.net/image/6871386/1st-infantry-division-and-7th-army-training-command-participate-asda-exhibition>
 

 

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