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"But chances of massive economic development are low. Instead, Serbia and
Montenegro are likely to become isolated debtor nations. Without access
to Montenegro's ports, Serbia's economy will become more a liability
than an asset to Europe. A lack of capital and a devastated
infrastructure will make Serbia the slower of the two to develop.
Montenegro's economy has an effective head start on Serbia and will
likely draw more investors.

The situation in and around Albania, as a result, is likely to become
more problematic in the short term. A weakened Yugoslav military will be
unable to contain ethnic Albanian insurgents. Two years after NATO
bombed Yugoslavia, the alliance will find that Serbia and Montenegro
will need protection from the alliance."

-------------

The Milosevic Extradition
Velvet Coup: Serb Rivals Gain Power Over Kostunica
Updated 2355 GMT, 010628 
Summary

Behind the sudden extradition of former Yugoslav President Slobodan
Milosevic, lies another event: the demise of the fragile coalition in
Belgrade. It is clear that the Yugoslav president was locked out of the
decision to extradite Milosevic. In Belgrade, Kostunica stands isolated.
Instead, the Serbian government appears to be increasing its control,
turning on both Milosevic and Kostunica. After nearly a century, the
nation of Yugoslavia is reaching the beginning of its end.  

Analysis

As Yugoslavia reacts to the extradition of its former leader, a number
of signs are emerging indicating that the president of Yugoslavia,
Vojislav Kostunica, was in fact locked out of the momentous decision to
finally extradite the man who had ruled the country for a decade.

In the overnight hours between June 27 and June 28, 15 of 23 cabinet
ministers in Kostunica's government met to discuss one topic: the
extradition of Milosevic to The Hague for war crimes and crimes against
humanity. One important figure did not attend: Kostunica. Later
Belgrade's Radio B92 reported that the president had not even been
invited to the meeting.

Once regarded by the West as a cooperative leader, Kostunica had been,
in fact, the last barrier to the extradition of Milosevic. Just hours
before the extradition - likely after the decision had been made - the
Yugoslav Beta news agency reported that Kostunica promised the Serbian
Socialist Party - Milosevic's former party - that their former leader
would not go to The Hague until a high court, the Constitutional Court,
ruled on the legality of the decree ordering Milosevic to trial.

A velvet coup is sweeping aside Kostunica's fragile coalition
government. Most of the coalition that put him in power eight months ago
is arrayed against the president; the support of the people appears to
have been wide but shallow. There is a group within the government of
Serbia, one of only two governments left in the federation, that is
doing away with the federation.


Serb Prime Minister Zoran Djindjic Led by the most powerful politician
in Belgrade today, Serbian Prime Minister Zoran Djindjic, this group now
includes 17 of the 18 parties that Kostunica has led. It is entirely
legal, under the Serbian Constitution, and the Serbian government is
steadily marginalizing the federal government into obsolescence.  

This group of Serbs is now effectively in control of the most important
government offices, at the federal level, in important international
missions now ongoing, and the most important ministries at the federal
level, such as the interior and justice ministries. Djindjic controls
the Yugoslav delegation to the international donor conference in
Brussels, which will decide on up to $4.5 billion in economic aid.

It is economic aid, too, that is driving the effort to topple Kostunica
- and demonize Milosevic. The Yugoslav economy is in shambles, its
output having dropped some 40 percent since the 1999 war for Kosovo.
Abroad, the Serbian-led government has moved to revive trade with the
former republics of Yugoslavia in the past six months.

At home, the Serbian government is discovering new mass graves allegedly
tied to massacres in Kosovo, but conveniently hidden for more than two
years. An unnamed spokesperson in the interior ministry announced on
June 28, just before Milosevic was hustled to the airport, that the
bodies of 36 ethnic Albanians, nine of them children, had suddenly been
discovered in a Belgrade suburb, according to Blic, an independent news
agency. The victims are reportedly from Suva Reka, in Kosovo - the site
of an alleged mass murder, included in the indictment against Milosevic.

These findings cap a steady drip-drip-drip of evidence that has
gradually turned once loyal Serbs against Milosevic and effectively
toward Djindjic. A drumbeat has sounded throughout much of the Serb
media. Just three days before Milosevic was bundled up and shipped off,
Beta news agency reported the findings of a poll by the Alternatives
Study Center (CPA). The confused report claimed that half of Serbs now
support Milosevic's extradition, while elsewhere it quoted CPA
researchers as saying that public opinion has not really shifted.

Beyond Belgrade: The Future of the Federation

In recent weeks, the debate over extraditing the former president has
revealed the deep fractures now cracking under the Yugoslav federation.

Unity has been shaky many times since Milosevic's ouster in October.
Montenegro's Socialist People's Party (SNP), a junior partner in the
ruling coalition, has threatened to pull out. The threats have largely
been a bargaining chip in as quest for equal status with Serbia in the
federation or, failing that, independence. Montenegrin President Milo
Djukanovic is driving a campaign for independence, slowly building
support. A referendum could take shape within months.

But now, Serbs within the reform government increasingly favor
dissolving the federation. Technocrats backing Djindjic's reform program
want to make a clean break with holdovers of the Milosevic regime, begin
building a viable market economy and create a democratic Serbia to
integrate with Europe.

Throughout, Djindjic has held the upper hand over the federal president,
Kostunica.

Now, Deputy Prime Minster Zarko Korac, an ally of Djindjic, has gone so
far as to tell the BBC that Kostunica and his party were "quite
isolated." As of 10:25 p.m. Belgrade time June 28 - more than six hours
after Milosevic was extradited - the Serbian government had yet to
officially notify Kostunica of the move, according to Reuters, which
cited a source in the president's office.

The move against Kostunica and the federal government is carefully
cloaked in the legality of the Serbian Constitution. In 1990, Milosevic
added a clause to the republic's constitution granting Serbia the right
to reject any federal law, decree or court decision if it clashed with
Serbian interests. Djindjic has shrewdly used that clause to bypass
protections that Milosevic built in for himself, later, in the federal
constitution.

The Crisis That Now Confronts the West

Throughout the past several months, Western governments and human rights
groups have hailed extradition as a courageous step.

In fact, extradition now not only threatens the future of Yugoslavia as
a country but billions in Western aid and security in the tumultuous
Balkans. This reality is now settling into Serbia.

A spokesman for Montenegro's ruling Democratic Party of Serbia, Igor
Luksic, told Radio B92 that Milosevic's extradition said, "It's high
time to face reality and accept that Serbia and Montenegro should be two
independent states." The independent Onasa news agency in Sarajevo
quoted an unnamed Western diplomat in Belgrade as saying, "I don't see
how they will be able to avoid a government crisis."

Miodrag Zivkovic, leader of the Liberal Alliance of Montenegro, said the
extradition of Milosevic did not mark the first time such a decision was
made for the sake of a nation's survival and for cash, according to
I*Net news service.

The collapse of the federation would mark the final fracture of the
formerly united Yugoslav state, a fragile entity knitted together after
World War I but ripped apart by bloody ethnic rivalries during the
1990s. The splitting of the federation will have economic and political
consequences for the Balkans and internationally.


The United States and European Union will experience economic benefits,
finding it easier to stimulate regional development. Donor nations can
better enforce and reward two exclusive programs for combating
corruption endemic in both Serbia and Montenegro; in the past, federal
officers could hamper the process. Russia, on the other hand, will also
lose a fair-weather ally when Yugoslavia falls, isolating Russia from
the politics of the region.

But chances of massive economic development are low. Instead, Serbia and
Montenegro are likely to become isolated debtor nations. Without access
to Montenegro's ports, Serbia's economy will become more a liability
than an asset to Europe. A lack of capital and a devastated
infrastructure will make Serbia the slower of the two to develop.
Montenegro's economy has an effective head start on Serbia and will
likely draw more investors.


The situation in and around Albania, as a result, is likely to become
more problematic in the short term. A weakened Yugoslav military will be
unable to contain ethnic Albanian insurgents. Two years after NATO
bombed Yugoslavia, the alliance will find that Serbia and Montenegro
will need protection from the alliance. 
 
 


Related Analysis: 

Trial in The Hague: Why No Charges of Gencide in Kosovo 

Summary

The International Criminal Tribunal for the former Yugoslavia now awaits
Slobodan Milosevic for alleged war crimes in Kosovo. But in the two
years since the Kosovo conflict, it appears that the former president
did not commit the genocide he was accused of by NATO, including the
deaths of some 10,000 people. Ironically, the charges he faces would
make it easy for international courts to try a variety of foreign
leaders and military officers, including Americans.

Analysis

Former Yugoslav president Slobodan Milosevic will likely be extradited
to face charges at the International Criminal Tribunal for the former
Yugoslavia (ICTY). 
Milosevic is charged with crimes against humanity and war crimes for his
role in the 1999 Kosovo conflict. An indictment for Milosevic's role in
the Bosnian war, from 1992 to 1995, has not yet been released, according
to an ICTY spokeswoman.
Click here to continue. 

Yugoslavia: Right Back Where
We Started


Summary

Just two years after NATO won its conflict against Yugoslavia, the new
government in Belgrade is preparing to extradite former President
Slobodan Milosevic. But a new, old logic now flows from the Balkans. The
charges against Milosevic, regarding Kosovo, do not appear to amount to
the rhetoric leveled at him during the war. And the need to reward the
Kostunica government for its help is strong. Expect NATO to reward
Belgrade -- quite possibly with Kosovo.

Analysis

Two events in the Balkans last week drew attention back to the troubled
region. The first was the apparent decision by the Kostunica government
to extradite former president Slobodan Milosevic for war crimes charges.
The second was an attempt by Europe to broker a cease-fire in Macedonia.
Both, in different ways, are cautionary tales against thinking that
closure in the Balkans is possible.
Click here to continue.

Yugoslav Legislation May Send Milosevic to The Hague
-22 June 2001 

Where Are Kosovo's Killing Fields?
-17 October 1999 

Milosevic Arrest Heightens Feud 
-30 March 2001 

Montenegro Seeks Independence from the Federal Republic of Yugoslavia
-28 November 2000


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