United States Agency for International Development
Bureau for Humanitarian Response
Office of Transition Initiatives

Program Description

The United States Agency for International Development's Office of Transition Initiatives (USAID/OTI) launched the Democratic Transition Initiative (DTI) in Serbia and Montenegro in early 2001 to consolidate the political gains achieved through elections in September and December 2000. DTI promotes citizen action that encourages participation and government accountability. DTI-supported projects are designed to improve citizen participation in government decision-making; support interest groups that promote government reform and responsiveness to citizens; magnify democratic gains through the use of media; and promote a transparent electoral process that encourages active and informed citizen participation. The first phase of OTI's program to promote a peaceful democratic transition in Serbia and Montenegro began in July 1997. OTI intensified its support to action-oriented media, civil society groups, democratically-oriented municipalities, and democratic political initiatives leading up to the 2000 elections. OTI's implementing partner in Serbia and Montenegro is Creative Associates International, Incorporated.

Country Situation

ONE YEAR AGO TODAY - October 5, 2001 was the first anniversary of Milosevic's removal from power. Despite growing discontent among the population because of the slow pace of reforms, the population of Serbia celebrated this anniversary by gathering at the main Belgrade Square.

CAN WE TALK? Modest progress was made this month on the question of the status of the Federal Republic of Yugoslavia (FRY). The Federal Government, after several aborted attempts, managed to hold talks on the future of relations between the two remaining republics in Yugoslavia, Serbia and Montenegro. At a recent meeting, it was agreed to wait for the results of the referendum on independence in Montenegro before making a decision on future relations and the fate of the Federation.

THE LIST GROWS - The International Criminal Tribunal for the former Yugoslavia (ICTY) unsealed indictments against four former Yugoslav National Army (JNA) officers who are alleged to have committed war crimes during the siege of the Croatian coastal town Dubrovnik from October 1 to December 31, 1991. Former Serbian and FRY president Slobodan Milosevic was also officially indicted for crimes against humanity committed in Croatia in 1991-92. This was the second indictment against Milosevic. The first was for crimes committed against ethnic Albanians in Kosovo in 1999.

MOBTEL ON THE RUN - Bogoljub Karic, a Serbian businessman rumored to have had strong ties to the Milosevic regime, and president of one of the most powerful companies in the country, fled the country temporarily with his family claiming that their lives were in danger. Karic's BK Group owns Astra Bank, Mobtel-GSM network with over one million subscribers, BK television, Internet provider EUnet, Europe insurance, a private college, and seven houses in the elite Belgrade residential area of Dedinje. Invoking the law on taxes on extra profit, Yugoslav National Bank (NBJ) Governor Mladjan Dinkic placed Astra Bank under temporary management. According to the National Bank, Astra Bank owes 67 million DM in taxes. In addition, a police investigation is underway with respect to the contract founding the Mobtel mobile telephone company. The contract involved the Serbian PTT Company and BK Trade, which is based in Moscow. Reporting on the events, Croatian media, in its weekly "Nactional," said that Serbian authorities have begun the fight against Milosevic's rich men.

GROWING UNREST - Strikes ended at nine Serbian mines, the electrical power company, the Serbian oil industry, and the mining-smelting company Bor, when an agreement was reached with the government that all wages due would be paid, and in some cases an increase of wages would be assessed. However, larger strikes erupted as a result of broad discontent over the new labor law. According to the strikers, the new law only ensures legal grounds for dismissal of employees. Trade unions are demanding the Serbian government immediately recall the bill and open inclusive dialogue with relevant partners and experts in labor relations about a new bill.

AUTONOMY RAGE - Under Milosevic, the autonomy of Vojvodina and Kosovo were suspended and powers given to the Serbian parliament. In October, a Vojvodina government expert team finished the first draft of the law that reinstates a number of duties to the provincial government. Following allegations that Rada Marinkov, senior official of the Democratic Party of Serbia (DSS), threatened to use tanks against advocates of wider autonomy for Vojvodina, the Vojvodina Parliament voted to dismiss Marinkov from his post as Vice-Premier of the Province's government. Following the dismissal vote, 14 DSS deputies walked out of the session in protest.

ALBANIAN COUNCIL - The Albanian community in southern Serbia recently created the Council of Coordination as the highest representative institution of the ethnic Albanian population in Serbia. The president is Mr. Riza Halimi (Party for Democratic Action leader and Presevo mayor). Three of the four deputies are representatives of three municipalities (Presevo, Bujanovac and Medvedja) and the fourth is a UCPMB representative. Three 5-member-committees (political, economic, and social) were created. OSCE Representative to Yugoslavia, Ambassador Stefano Sannino, visited southern Serbia at the beginning of this month together with his associates and representatives of the Serbian Ministry of Internal Affairs (MUP). During his visit he presented the program for the multi-ethnic police in the municipalities of Bujanovac, Presevo and Medvedja, commenting that considerable progress had been made already in resolving the problems between the Serbs and Albanians. He also used the opportunity to invite women to apply for the second multi-ethnic police training course.

MONTENEGRO DEBATES THE QUESTION - The formation of a grand coalition government was again proposed in Podgorica. The coalition would be composed of all parliamentary parties and its task would be to prepare a referendum on the legal status of the republic. In order to ensure adequate conditions for holding a referendum, the draft law on the referendum was placed before the Montenegrin parliament. According to the new draft all Montenegrin citizens 18 years of age who have lived in Montenegro at least 24 months before the referendum day have the right to vote in the referendum. The Coalition "Together for Yugoslavia" announced a boycott of the referendum unless it is organized under democratic and fair conditions. Serbian Minister of Justice, Vladan Batic, has been advocating holding the referendum in both republics of Yugoslavia.

With the second phase of the Montenegro mass voucher privatization (MVP) campaign drawing to an end on Friday, November 2, reports indicate that 30% of citizens have deposited their vouchers with the participating funds.

OTI Highlights

A. Narrative Summary

DTI/Serbia & Montenegro began the month of October with a 3-day strategy planning session in Montenegro. With a large USAID Community Revitalization through Democratic Action (CRDA) program coming on line, OTI will be shifting gears in FY2002 to address issues related to increasing public frustration over the pace of change/reform. Utilizing the valuable contacts that the DTI field offices have made at the municipal and community levels, DTI will work both at the republic and local levels to promote activities and engage citizens in the following: increasing the pace of reforms (including a judicial reform package, local self-governance law, anti-corruption issues, an economic reform package, and minority rights law); improving knowledge about human rights; expanding the truth and responsibility dialogue; increasing citizen awareness and participation in democratic activities (e.g. the USAID CRDA process); supporting electoral processes; and mitigating ad-hoc issues that could destabilize the country as they arise.

In addition to the strategy shift away from community improvement projects, DTI staff is rapidly trying to finalize current ongoing projects in anticipation of the arrival of winter and an end to the outdoor building season. From December, work will continue only on those projects with an indoor component (i.e. interior renovations), while outdoor projects will have to wait until spring.

Following on the heels of a month of strikes and the confusion created with the closure of most of the Zastava factory, broadcast of a DTI-supported series "FABRIKA" (factory) began Sunday, October 21. "FABRIKA", a weekly series, highlights factories going through the privatization process. Working with TV B-92's production staff and the Yugoslav Agency for Privatization, DTI staff identified 10 of 16 factories on the list to be privatized. The first program introduced the privatization process and examined the situation at Zorka pharma in Sabac, while the second program focused on PKS-Lateks in Cacak. The programs include interviews with workers, factory directors, municipal officials, and the Minister for Privatization. This project complements ongoing USAID Mission-supported technical assistance to the Privatization Agency.

On the media front in Podgorica, DTI staff was informed that one of its grantees would not be able to fulfill grant obligations (production of six additional monthly issues of a political magazine) because of a shortage in skilled journalists and technical staff. In anticipation of the referendum, it appears that all sides are making significant media preparations, to include the creation of newspapers and television stations, and the change of editorial staff at existing media outlets. Promising large salaries (1000 -2000DM/month), these new outlets have drawn away several key staff. Pre-referendum campaigns should be expected to begin shortly if pro-Montenegrin and pro-Serbian political forces are successful in establishing these new outlets.

B. Indicators of Success

On October 18, OTI and the United Nations Children's Fund (UNICEF) signed a memorandum of understanding that committed both organizations to collaborate on five school repair projects in southern Serbia. The school projects, located in the villages of Turija, Veliki Trnovac, Letovica, Breznica, and Mali Trnovac, are estimated at a value of $253,000. OTI will mobilize community support and involvement, repair the physical infrastructure of the school buildings, and monitor the implementation of the project. UNICEF will provide teaching aids and sets of school furniture (each set consists of a blackboard, school desks, school chairs, and a teacher's desk), and will ensure the professional development of teachers through participation in teachers' seminars.

DTI first engaged the Zujince community on March in close cooperation with the Presevo municipality. Representatives of Presevo accompanied DTI to community meetings and committed to provide their own contribution to any project identified. The Zujince community identified the paving of 2.5 km of a local road as their top priority. This particular road serves as the primary transportation artery connecting several villages to the center of Presevo municipality. The community was informed that DTI would not be able to provide the entire $355,000 needed to implement the project. Working together, the Community Development Group (CDG) and OTI leveraged their combined resources of $103,000, of which OTI has contributed $53,000, to obtain commitments of an additional $252,000. The final contributions came from the following: the Serbian Government, insisting that road works in Southern Serbia are vital, has contributed $51,000, the Municipality of Presevo and Zujince community have contributed approximately $50,000 each; and CHF, a USAID-funded NGO, has contributed approximately $151,000.

C. Grants Activity Summary

For the month of October, 11 grants were delivered and 25 grants were approved valued at $631,764. The following chart indicates the total grant activity since October 1, 2000.

Program Category	Approved	Delivered	USAID/OTI Contribution	Matching Contribution	Total USD
Civil Society Org. Support	25	12	$646,788	$162,448	$809,236
Community Impact Activities	150	84	$4,158,392	$4,103,226	$8,261,618
Election Processes	55	53	$1,643,464	$272,950	$1,916,414
Media	79	33	$1,250,734	$272,885	$1,523,619
Grand Total **	309	182	$7,699,378	$4,811,509	$12,510,887

** Grand Total -- This total includes RONCO grants approved between October 1-December 22, 2000.

NEXT STEPS/IMMEDIATE PRIORITIES

Priorities for November include:

• Continued coordination with newly selected USAID Mission-supported NGOs, which will be implementing a similar community impact project (CIP) process.
• Finalization of DTI's Revised Program Strategy.

For further information or questions, please contact:

In Serbia, contact Paul Randolph, Country Representative for Serbia/Montenegro (Paul_Randolph@dti.co.yu) and/or Erin Miller, Deputy Country Representative (Erin_Miller@dti.co.yu).

In Washington, contact Robert Jenkins, Europe and Eurasia Team Leader (rjenkins@usaid.gov) and/or Sara Brewer, Program Manager (sbrewer@usaid.gov).