The Balkan peninsula is a European region known for its rich history and cultural diversity, as
well as various empires vying for dominance and regional conflict. Many would think of the
former Yugoslavia as a good example of economic prosperity and social stability in the region.
The region has been comparatively peaceful since the conflict that resulted from Yugoslavia’s
dissolution, but it continues to face socio-political and economic challenges. The former
Yugoslav republics, which are now Slovenia, Croatia, Bosnia and Herzegovina, Serbia,
Montenegro, Kosovo, and North Macedonia, have undergone numerous changes and
oscillations that continue to shape regional affairs. Because of the complexity and differences in
the region, it is critical to discuss this topic in specific points for a better understanding.
Ethnic tensions and nationalism:
Orthodox, Catholic and Muslim populations have been cohabitating and scattered throughout
the region for hundreds of years. In addition, a complex mix of ethnicities and historical legacies
created divisions in society. Throughout history, from the Kingdom of Bosnia to the Kingdom of
Serbs, Croats and Slovenians, to lastly Yugoslavia, the people in Balkans were almost always
living under one united territory. However, the issue of nationality and ethnic belonging has
always created lesions in the organ of the “Yugoslav” body. The most recent conflict in the
region played a key role in the formation of the current borders of ex-Yugoslavia countries.
Tensions which occurred due to nationalist propaganda escalated into war after the death of
Yugoslavia’s President Tito in 1980. Brutal clashes occurred throughout the Balkans, with the
people of Bosnia and Herzegovina, Croatia and Kosovo bearing great losses and destruction.
Atrocities, ethnic cleansing and the intervention of international forces such as NATO depict the
gruesomeness and severity of the war that took place in the late 20th century. This resulted in
mass migration and displacement of people as well as genocide in Srebrenica – the worst
atrocity committed on the territory of Europe since the Second World War to this day. Even
after almost three decades, these conflicts play a great role in the current politics of the region.
Reconciliation efforts:
There has been a great improvement in the region towards better understanding and
reconciliation considering the severity of the 1990s war. While there is an issue of agreeing and
adhering to a universal truth, which aids to reluctance in interethnic understanding, the
progress cannot be disregarded. War crimes are being prosecuted and there is a great effort to
bring justice to the victims and their families. There is also a great dialogue between the former
republics, citizens can move freely between the borders and the interethnic conflicts are rare.
While the security is fully satisfactory in the region, it is crucial to keep reflecting on the past to
grant a better chance for an inclusive society and long-lasting peace.
EU integration:
Slovenia was the first country from former Yugoslavia to become independent as well as to join
the EU in 2004. While Croatia applied for membership in 2003, it was only fully integrated in
2013. Serbia, being the largest country in Southeast Europe seeking entry into the EU, was
granted a candidate status in 2012. Bosnia and Herzegovina was approved as a candidate in
2022. Even though most of the ex-Yugoslavian countries are not yet active members of the EU,
this common goal of all states to integrate into a larger system and European community has
aided significantly the current situation in the area that keeps improving step by step.
Economic shift and development
Each ex-Yugoslav state has been on a unique path when it comes to economic development. The
common factor, however, is shifting from a socialist structured economy to a capitalist one. This
shift was not easy especially since many of the successful, government-owned companies failed,
resulting in severe unemployment in some areas. Capitals and coastal areas still have a
considerably developed economy due to domestic and inbound tourism in combination with
investment, whereas smaller towns that relied on single factories or companies struggled more
with the transition. This led to a shift from the production industry to tertiary services focus in
smaller communities. However, there are some private-owned companies and factories slowly
emerging in these communities. While Yugoslavia had a peculiar system to manage its economic
affairs, from collective farming, public ownership and management of trade and prices fixed by
authority, modern states now have shifted to mostly privately operated production factories
and small businesses. Slovenia and Croatia were much more successful in implementing these
reforms and attracting foreign investment compared to other countries in the region.
Integration of Slovenia and Croatia into the EU certainly helped to get their economies even
more open to the European market, while corruption, ethnic tensions and decentralisation
hindered the economy of other countries in the region, especially in Bosnia and Herzegovina. It
is also important to note that Bosnia and Herzegovina is highly decentralised and it is the only
country that has three presidents who alter every six months in the position. Such
decentralisation creates a large gap in decision-making and economic prosperity for the country.
Therefore, economic disparities are visible not just among the ex-Yugoslav countries but also
within the borders.
Social issues:
Political and ethnic tensions, poverty, economic inequalities, brain drain and corruption are
some of the key social issues in modern countries of southeast Europe. As explained above,
ethnic tensions continue to have a high influence on the region’s political stability, economic
development and interethnic understanding. Uneven economic development and poverty in
certain areas are driving mass migration until the present day. A large number (in thousands) of
highly skilled professionals decide to leave the region due to a lack of opportunities and opt
usually for one of the central European countries. As an outcome, Balkan region is continually
hit by one of the most severe brain drains in Europe, impacting the region’s social and economic
fabric.
Corruption, another significant issue and a key factor of worsened quality of life for residents
and a trigger for emigration has severely impacted the accountability and transparency of the
ex-Yu governments. Citizens have developed trust issues in institutions due to a lack of the rule
of law.
Overall, the current situation in the Balkans has achieved an admirable position reflecting an
ongoing development and higher exchange of education and trade. Full integration in the EU of
Slovenia and Croatia and the candidate status of other countries in the region has also been a
high road to a more open and tolerant situation in the region. However, the ongoing issues of
ethnic tensions, economic disparity, unemployment, and corruption, especially in decentralised
Bosnia and Herzegovina, continue to hinder sustained and inclusive growth across the region.
The legacy of nationalism and the wars continues to shape politics and society in the exYugoslav countries, presenting ongoing challenges to stability and reconciliation efforts.
The Balkan countries must continue with efforts to address the legacies of the past and building
inclusive societies is crucial for lasting peace and stability.
(The writer is Bosnian, residing in Pakistan, holds Degree from London School of Economics in International Development. Currently associated with Centre for South Asia & International Studies (CSAIS), Islamabad.
