The Early 1990s: Political and Economic Instability

Abstract

The years after the constitution of FR Yugoslavia came into force on 27 April 1992, now consisting of Serbia and Montenegro, were years of extreme political and economic instability. During this period the Yugoslav economy was negatively affected by a number of external shocks, including the direct effects of the break-up of the Yugoslav federation, several armed conflicts and severe sanctions of the international community. Though these shocks were by their nature ‘external’, they were the direct outcome or indirect consequence of the political choices of the Serbian/Yugoslav government. The government frequently blamed these external shocks for the progressive worsening of the country’s overall situation, not willing to recognize its own responsibility for dragging the country into a very deep political, economic, social, and moral crisis.