Table of Contents Chapter 1 1 Country Overview 1 Country Overview 2 Key Data 3 Montenegro 4 Southeastern Europe 5 Chapter 2 7 Political Overview 7 History 8 Political Conditions 11 Political Risk Index 43 Political Stability 57 Freedom Rankings 72 Human Rights 84 Government Functions 87 Government Structure 89 Principal Government Officials 94 Leader Biography 95 Leader Biography 95 Foreign Relations 98 National Security 100 Defense Forces 102 Chapter 3 105 Economic Overview 105 Economic Overview 106 Nominal GDP and Components 112 Population and GDP Per Capita 114 Real GDP and Inflation 115 Government Spending and Taxation 116 Money Supply, Interest Rates and Unemployment 117 Foreign Trade and the Exchange Rate 118 Data in US Dollars 119 Energy Consumption and Production Standard Units 120 Energy Consumption and Production QUADS 122 World Energy Price Summary 123 CO2 Emissions 124 Agriculture Consumption and Production 125 World Agriculture Pricing Summary 128 Metals Consumption and Production 129 World Metals Pricing Summary 131 Economic Performance Index 132 Chapter 4 144 Investment Overview 144 Foreign Investment Climate 145 Foreign Investment Index 147 Corruption Perceptions Index 160 Competitiveness Ranking 171 Taxation 180 Stock Market 181 Partner Links 181 Chapter 5 183 Social Overview 183 People 184 Human Development Index 186 Life Satisfaction Index 190 Happy Planet Index 201 Status of Women 210 Global Gender Gap Index 211 Culture and Arts 220 Etiquette 221 Travel Information 221 Diseases/Health Data 230 Chapter 6 235 Environmental Overview 235 Environmental Issues 236 Environmental Policy 237 Greenhouse Gas Ranking 239 Global Environmental Snapshot 250 Global Environmental Concepts 261 International Environmental Agreements and Associations 275 Appendices 299 Bibliography 300 Montenegro Chapter 1 Country Overview Montenegro Review 2016 Page 1 of 312 pages Montenegro Country Overview MONTENEGRO Located in southeastern Europe, Montenegro, which means "Black Mountain", borders Croatia, Bosnia, Serbia, Kosovo, and Albania. About half of it is covered in thick forest. At the end of World War II, Montenegro became a constituent republic of the Socialist Federal Republic of Yugoslavia. When the latter dissolved in 1992, Montenegro federated with Serbia, first as the Federal Republic of Yugoslavia and, after 2003, in a looser union of Serbia and Montenegro. In a May 2006 referendum, Montenegro emerged as a sovereign state after just over 55 percent of the population opted for independence. Montenegro is endowed with mineral resources, primarily bauxite, adequate water supplies, and a climate conducive to agriculture and tourism. The economy is highly dependent on aluminum exports and tourism. Montenegro Review 2016 Page 2 of 312 pages Montenegro Key Data Key Data Region: Southeastern Europe Population: 647073 Hot summers and cold winters; areas of high elevation have short, cool Climate: summers and long, severe winters; mild, rainy winters along coast. Ijekavian dialect -- sometimes called Montenegrin -- is the official language; Languages: Serbian, Albanian, Bosnian, Croatian, Romany also spoken Currency: Euro National day is July 13, 1878; referendum on independence held on May 21 Holiday: 2006; independence delared on June 3, 2006 Area Total: 14026 Area Land: 13812 Coast Line: 294 Montenegro Review 2016 Page 3 of 312 pages Montenegro Montenegro Country Map Montenegro Review 2016 Page 4 of 312 pages Montenegro Southeastern Europe Regional Map Montenegro Review 2016 Page 5 of 312 pages Montenegro Montenegro Review 2016 Page 6 of 312 pages Montenegro Chapter 2 Political Overview Montenegro Review 2016 Page 7 of 312 pages Montenegro History Synopsis The use of the name Montenegro began in the 15th century when the Crnojevic dynasty began to rule the Serbian principality of Zeta; over subsequent centuries it was able to maintain its independence from the Ottoman Empire. From the 16th to 19th centuries, Montenegro became a theocratic state ruled by a series of princes and in 1852, it was transformed into a secular principality. After World War I, Montenegro was part of the Kingdom of Yugoslavia, and, at the conclusion of World War II, it became a constituent republic of the Socialist Federal Republic of Yugoslavia. When the Socialist Federal Republic of Yugoslavia was dissolved in 1992, Montenegro federated with Serbia as the Federal Republic of Yugoslavia (FRY). In March 2002, an agreement on governance between Serbia and Montenegro was signed, officially changing the name of the country from the Republic of Yugoslavia to Serbia and Montenegro and changing the federation into a new "Union of States" (also referred to as a "community of states"). The move essentially ended the country once known as the Federal Republic of Yugoslavia (FRY). A new structure for constitutional government was also promulgated and ratified at that time. The country was a confederal parliamentary democratic republic, with two constituent states, the Republic of Serbia and the Republic of Montenegro. The Serbian province of Kosovo has been governed by the United Nations Interim Administration Mission in Kosovo (UNMIK) since 1999, under the authority of United Nations Security Council Resolution 1244 and has self government. In May 2006, Montenegro voted in favor of independence from Serbia. Thus ended the country known only for a few years as Serbia and Montenegro. Serbia became the successor state of what had once been the Yugoslav Federation. Montenegro became one of the world's newest independent states. History of Montenegro Montenegro's native name, "Crna Gora," translates in meaning to "black mountain" and Montenegro Review 2016 Page 8 of 312 pages Montenegro presumably references the dark colored forests and woodlands of the Dinaric Alps on the coast. The current name, Montenegro, is believed to be rooted in Venetian cultural ascendancy of the region during the Middle Ages, and also translated into meaning "black mountain." The area of current Montengro, like all the Balkans, was colonized by waves of Slavs from the 6th and 7th centuries. Some schools of thought have argued that ethnic Montenegrins came from the area between the Baltic Sea and Hanover in Germany in the 6th century, while Serbs and Croats arrived in the 7th century. By the 10th century, Slav tribes intermarried and intermixed with Illyrians (predecessors of the modern Albanians), Romans and Avars, effectively complicating the ethnic and cultural makeup of the Balkan region. Roman influence was most pronounced in the religious realm as pagan Montenegrins turned to Christianity. The 10th century also marked the establishment of a semi-autonomous dukedom called Duklja. It was recognized as independent by Pope Gregory VII in the early 11th century and King Mihailo of the Vojisavljevic dynasty was made king. The new kingdom shared a relationship with the Byzantine Empire, characterized by the fact that it paid tribute to the Byzantines. Power struggled weakened the kingdom and contributed to the rise of new centers of power and control. Indeed, in the late 11th century and early 12th century, there were two main political centers in the region -- Zeta, located in the mountains of present-day Montenegro, and Raska, located in modern southwestern Serbia. The zupan of Raska, Stefan Nemanja threw off Byzantine domination in the 12th century, subordinated Zeta, and incorporated it into Raska (Serbia). In this way, the first period of Montenegrin statehood ended. Moreover the foundation for medieval Serbia was laid by the conqueest of Zeta and part of southern Dalmatia. The first Serbian autonomous state was then formed. The zupan's son and successor, Stefan II Nemanja, transformed Serbia into a stable state in the late 12th century and early 13th century, friendly with Rome but with religious loyalty to Constantinople. In 1218, Pope Honorius III recognized Serbian political independence and crowned Stefan II king. In the 14th century, following the death of the Serbian tzar, Dusan Nemanjic, the kingdom began to crumble. A new Balsic dynasty, which was so-called in honor of its founder Balsa I, reasserted Zeta's independence. The ascendancy of the Balsics also corresponded with the rising influence of the Roman Catholic Church in Montenegro. Under Balsa's sons, Zeta's territory expanded and was consolidated. The 15th century marked the end of the Balsic dynasty. The next thirty years were a period of strife and struggle in Zeta with competing clans fighting for power and control. So emerged a new Montenegrin dynasty -- the Djurasevic family of the Crnojevic clan. Although the Ottoman Empire controlled the area to the south and east during this period, Zeta was not fully conquered. Montenegro Review 2016 Page 9 of 312 pages Montenegro The Crnojevics saw Serbia, Bosnia and Herzegovina fall to the powerful Ottoman armies, but Zeta did not suffer the same fate. This was largely due to the decision by Ivan Crnojevic to move the capital from Zabljak on Lake Skadar into the highland valley of Lovcenski Dolac. With the Ottomans advancing in northern Albania, Zeta joined forces with Venice to fight off the threat. While there was some retrenchment of territory, sovereignty was preserved and gave rise to a cultural renaissance in the area that is now modern Montenegro. Following the Crnojevics came rulership by the Vladikas or Bishops for about 180 years. Vladikas were regarded as spiritual leaders as well as political ones, and they came to power via election by popular assemblies. Although something of a theocratic regime, rule by the Vladikas was not brutish or autocratic. Instead, they used moral persuasion to command the people. Despite the fact that Ottoman control surrounded the area of modern-day Montenegro, under the Vladikas, sovereignty prevailed. Nevertheless, Montenegro, like Serbia, eventually came under the rule of the Ottoman Turks for the duration of their reign in the Balkans. When the Turks were removed from the area, Montenegro became an independent principality within the Austro-Hungarian Empire, but did not become an independent sovereign state until 1878. During World War I, Montenegro fought on the side of the Allies but was defeated and occupied by Austria.