The difficult road of Serbia and Montenegro to Euro-Atlantic integration

The persistent strength of the nationalism in the Union continues to compromise the reform process in Serbia and Montenegro, and leaves minorities intimidated and overlooked.
The status of Kosovo threatens increased tensions in South Serbia, whose majority Albanian population wants the region taken into consideration in the negotiation process. Also, relations between Bosniak and Serbian communities are under strain in Sandzak, a majority-Muslim area straddling Serbia and Montenegro. If the referendum for division of the Union in two States will succeed, the region of Sandzak will be cut in half.

The northern province of Vojvodina, long held up as an example of inter-ethnic harmony, has seen in recent times frequent confrontations involving ethnic Hungarians, Croats and Serbs. Roma continue to face widespread discrimination throughout Serbia and Montenegro Union.
The more general exclusion of minorities is reflected in the Serbian parliament, where no minority party has managed to secure representation. The handful of minority MPs belong to mainstream parties, which do not prioritise minority issues.
Serbian radical and nationalist groups are increasingly active in universities. Their doctrine combines a return to the values of the Serbian Orthodox Church, with animosity towards non-Serbian ethnic groups.
Serbia and Montenegro will have difficulty achieving full Euro-Atlantic integration in such an environment.

Export is crucial for Kossovo.

As Kosovo enters the final status talks in Vienna, that Albanians hope will end in independence, concern is focusing increasingly on what the two million or habitants will live on in future. Though local officials claim Kosovo has the potential to export many items, such as coal and wine, in practice it barely exports anything, placing a question mark over its long term economic viability. Goods export is decreasing and the decline has not yet reached its conclusion.

UNMIK, which handles the economy, said, "Given its natural resources, Kosovo could export minerals competitively, such as coal, lead, zinc,nickel and magnesium. It also has the potential for large-scaleproduction and export of electricity.With its young and abundant labour force, Kosovo could also potentially produce textiles and footwear. But Kosovo should adopt policies that encourage investment into new types of activities".

For the moment these remain dreams rather than reality and even the most optimistic local economists know that any revival will be a long-term project.

Muhamet Mustafa, head of Riinvest, a non-profit research and policy development institute, agreed that Kosovo's export potential was not a lost cause. "The goods we exported in the past, such as lead, electricity and wine, are a potential sector for revival after privatisation and technological updates," he said."Small and medium-sized enterprises could lead the way in kick-starting exports, as they had already proven their expertise in fields such as fruit juice and other food stuffs" he added. But other experts warn that there will be no easy revival of theterritory's former industries, such as wine production.

Moreover, Kosovo's pre-war industries did not have to compete in the European market but lived off sales to Yugoslavia, of which Kosovo was then a part. Kujtim Dobruna, director of the Vienna-based Economic Initiative for Kosovo, points out that Kosovo has not even reached first base in the business of certification - an essential requirement for any exporter to the European Union. Kosovo producers have to concentrate on building up weak production capacity and fill the gap in the domestic market before trying to venture abroad. As far as western markets are concerned, the main obstacle ist he lack of knowledge among local entrepreneurs, while the government offers them only limited support