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Kiss, Yudit. 2004 ‘Serbia and Montenegro - The State of the Defence Industry.’ Small Arms and Light Weapons Production in Eastern, Central, and Southeast Europe, p. 20. Geneva: Small Arms Survey, the Graduate Institute of International and Development Studies, Geneva. 1 October

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Serbia and Montenegro - The State of the Defence Industry

Reports had claimed that NATO's bombing campaign in the spring of 1999 destroyed or damaged most production and R&D facilities of the defence sector. After the fall of Milosevic, when information became more easily available, it became evident that this information was inaccurate. Indeed, despite serious damages, all military-related companies were operational by 2001 and the sector still employed about 20,000 people.

Thirteen years of war, economic and political crisis, and a UN arms embargo and financial sanctions did much to erode the comparative advantages of the once significant defence-related production sector. Today Serbia and Montenegro's large-scale facilities need urgent reform to adjust to altered economic and political conditions. At present the defence industry displays symptoms of decline. Its fundamental structural problems reflect the difficulties of a pre-conversion situation, a post-war economic crisis and rehabilitation, and the challenges of re-integration after a violent territorial break-up.

[R&D = Research and development]

ID: Q5399

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