Serbia
Franchising Association:
Marica Vidanovic
Board for International Economic Relations
Franchising Center
Bilateral department: USA, Canada
MARICA VIDANOVIC, Senior Advisor
Ph: + 381 11 33 04 518, Fax: + 381 11 32
48 060
Terazije 23, Belgrade
E-mail:
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www.pks.co.yu
www.pks.co.yu/fransizing
Background:
The Kingdom of Serbs, Croats, and Slovenes was formed in 1918; its name was changed to Yugoslavia in 1929. Various paramilitary bands resisted Nazi Germany's occupation and division of Yugoslavia from 1941 to 1945, but fought each other and ethnic opponents as much as the invaders. The military and political movement headed by Josip TITO (Partisans) took full control of Yugoslavia when German and Croatian separatist forces were defeated in 1945. Although Communist, TITO's new government and his successors (he died in 1980) managed to steer their own path between the Warsaw Pact nations and the West for the next four and a half decades. In 1989, Slobodan MILOSEVIC became president of the Serbian Republic and his ultranationalist calls for Serbian domination led to the violent breakup of Yugoslavia along ethnic lines. In 1991, Croatia, Slovenia, and Macedonia declared independence, followed by Bosnia in 1992. The remaining republics of Serbia and Montenegro declared a new Federal Republic of Yugoslavia (FRY) in April 1992 and under MILOSEVIC's leadership, Serbia led various military campaigns to unite ethnic Serbs in neighboring republics into a "Greater Serbia." These actions led to Yugoslavia being ousted from the UN in 1992, but Serbia continued its - ultimately unsuccessful - campaign until signing the Dayton Peace Accords in 1995. MILOSEVIC kept tight control over Serbia and eventually became president of the FRY in 1997. In 1998, an ethnic Albanian insurgency in the formerly autonomous Serbian province of Kosovo provoked a Serbian counterinsurgency campaign that resulted in massacres and massive expulsions of ethnic Albanians living in Kosovo. The MILOSEVIC government's rejection of a proposed international settlement led to NATO's bombing of Serbia in the spring of 1999 and to the eventual withdrawal of Serbian military and police forces from Kosovo in June 1999. UNSC Resolution 1244 in June 1999 authorized the stationing of a NATO-led force (KFOR) in Kosovo to provide a safe and secure environment for the region's ethnic communities, created a UN interim Administration Mission in Kosovo (UNMIK) to foster self-governing institutions, and reserved the issue of Kosovo's final status for an unspecified date in the future. In 2001, UNMIK promulgated a constitutional framework that allowed Kosovo to establish institutions of self-government and led to Kosovo's first parliamentary election. FRY elections in September 2000 led to the ouster of MILOSEVIC and installed Vojislav KOSTUNICA as president. A broad coalition of democratic reformist parties known as DOS (the Democratic Opposition of Serbia) was subsequently elected to parliament in December 2000 and took control of the government. DOS arrested MILOSEVIC in 2001 and allowed for him to be tried in The Hague for crimes against humanity. (MILOSEVIC died in March 2006 before the completion of his trial.) In 2001, the country's suspension from the UN was lifted. In 2003, the FRY became Serbia and Montenegro, a loose federation of the two republics with a federal level parliament. Widespread violence predominantly targeting ethnic Serbs in Kosovo in March 2004 caused the international community to open negotiations on the future status of Kosovo in January 2006. In May 2006, Montenegro invoked its right to secede from the federation and - following a successful referendum - it declared itself an independent nation on 3 June 2006. Two days later, Serbia declared that it was the successor state to the union of Serbia and Montenegro. A new Serbian constitution was approved in October 2006 and adopted the following month. After 15 months of inconclusive negotiations mediated by the UN and four months of further inconclusive negotiations mediated by the US, EU, and Russia, on 17 February 2008, the UNMIK-administered province of Kosovo declared itself independent of Serbia.
Geography:
Area: Serbia (77,474 sq. km.) is slightly smaller than Maine.
Cities: Capital--Belgrade. Other cities--Pancevo, Novi Pazar, Uzice, Novi Sad, Subotica, Bor,
People (2004 est.):
Nationality: Noun--Serb(s); adjective--Serbian.
Population (2002 Republic census): 7,478,820.
Population growth rate: -3.5%.
Ethnic groups (2002 population census): Serbian 83%, Hungarian 4%, Bosnian 2%, Albanian 1%, Montenegrin 1%, other 9%.
Religions (2002 population census): Orthodox 85%, Roman Catholic 5.5%, Muslim 3%, Protestant 1%, other 5.5%.
Languages: Serbian 88%, Hungarian 3.8%, Bosnian 2%, Albanian 1%, others 5%.
Health: Infant mortality rate--8.1 deaths/1,000. Life expectancy--males 72.44 yrs., female 77.86 yrs.
Economy:
GDP (purchasing power parity): $83.14 billion (2008 est.)
GDP (official exchange rate): $52.18 billion (2008 est.)
GDP - real growth rate: 5.6% (2008 est.)
GDP - per capita (PPP): $8,200 (2008 est.)
Inflation rate (2007): 10.1%.
Natural resources: Coal, petroleum, natural gas, antimony, copper, lead, zinc, timber, bauxite, gold, silver, navigable rivers.
Agriculture: 11% of GDP.
Industry: 18% of GDP.
Services: 21% of GDP.
Trade (2007): Exports--$8.8 billion. Major markets--Italy, Germany, Bosnia, Montenegro. Imports--$18.5 billion. Major suppliers--Germany, Italy, Russia, China.
MILOSEVIC-era mismanagement of the economy, an extended period of international economic sanctions, and the damage to Yugoslavia's infrastructure and industry during the NATO airstrikes in 1999 left the economy only half the size it was in 1990. After the ousting of former Federal Yugoslav President MILOSEVIC in September 2000, the Democratic Opposition of Serbia (DOS) coalition government implemented stabilization measures and embarked on a market reform program. After renewing its membership in the IMF in December 2000, Yugoslavia continued to reintegrate into the international community by rejoining the World Bank (IBRD) and the European Bank for Reconstruction and Development (EBRD). A World Bank-European Commission sponsored Donors' Conference held in June 2001 raised $1.3 billion for economic restructuring. In November 2001, the Paris Club agreed to reschedule the country's $4.5 billion public debt and wrote off 66% of the debt. In July 2004, the London Club of private creditors forgave $1.7 billion of debt just over half the total owed. Belgrade has made progress in trade liberalization and enterprise restructuring and privatization, including telecommunications and small and medium size firms. It has made halting progress towards EU membership despite signing a Stabilization and Association Agreement with Brussels in May 2008. Serbia is also pursuing membership in the World Trade Organization. Unemployment and the large current account deficit remain ongoing political and economic problems.
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NewsThe worldwide chain of McDonald's fast food restaurants plans to invest around US $1 bn into developing its franchises in Europe next year, the Reuters newswire reported. At the same time, they will pay greater attention to developing countries. "The potential for growth in Central and Eastern Europe is huge. We have only opened 350 restaurants in Ukraine, Poland and Romania, which have a combined population of more than 100 million and flourishing economies", says Executive Director Ralf Alvarez. There are 63 McDonald's restaurants in Ukraine in 19 cities. The total amount of investments since they began operating in Ukraine (since 1997) exceeded US $100 mn. McDonald's Ukraine has around 5,000 employees across the country. Reuters Sep 2008
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