'STEP' Country Profile

From ancient times, the Montenegrin territory has been home to numerous cultures.  Reliable evidence dates the earliest settlements in Montenegro to the paleolithic ages. Continued settlement in these parts is confirmed in evidence from numerous archaeological sites from Illyrian, Roman, Slavic, Venetian and Turkish periods as well as from the times of the Montenegrin state itself.

Once a country of farmers (61.5% of the population in 1953), Montenegro has experienced a rapid urbanisation from 1991, at which time the agricultural population accounted for only 7.4% of the overall population, with 58.2% of the population living in urban centres. 

Montenegro is committed to the promotion of inter-ethnic relations.  Muslims and Albanians are completely integrated into the political, economic and cultural life of the republic. Indeed, in the previous sitting of the parliament, seven members were of the Muslim faith. Likewise, the Executive Branch had Muslims in high positions. The Deputy Prime Minister and the Minister for the Civil Service were of the Muslim faith. There is a Council for the Safeguarding of the Rights of National Minorities, chaired by the President of Montenegro, established for the protection of national minorities and for the promotion of inter-ethnic relations.

Technology, the Economy and Politics

As a relatively small principality and kingdom, Montenegro made its first steps towards an industrial economy only at the beginning of the 20th century. The cause for this relative delay lies in the small population , lack of raw materials, underdeveloped transport, reduced investments, and probably mostly due to the national effort to ensure independence and the historical survival of the state. However, this slow start has had a positive effect as Montenegro is now an ecological oasis.

More than this, the lack of investment over the decades has had the perverse effect of avoiding all the pitfalls of the  development of tourism which is not in keeping with the beautiful landscape and setting.

This brief evolution of industrial economy was interrupted by the Balkan War (1912-1913), followed by The First World War and The Second World War. Between the two World Wars, agriculture kept its dominant position in the national economy, while industrial plants were limited to wood mills, tobacco factories, breweries, and salt works.

The economy made major progress only after World War II. Once more destroyed and plundered, Montenegro made greater strides in its economic policy and development, thus laying the foundations for a modern and prosperous economy - a promising economy.

During the era of communism, Montenegro experienced a rapid period of urbanisation and industrialisation. An industrial sector based on electricity generation, steel, aluminium, coal mining, forestry and wood processing, textiles and tobacco manufacture was built up, with trade, overseas shipping, and particularly tourism became increasingly important by the late 1980s.

The loss of previously guaranteed markets and suppliers after the break up of Yugoslavia left the Montenegrin industrial sector reeling, as production was suspended and the privatisation programme, begun in 1989, was interrupted. The disintegration of the Yugoslav market, and the imposition of UN sanctions in May 1992 were the causes of the greatest economic and financial crisis since WW II.

Montenegro is a republic, whose President is elected for a period of 5 years. The Parliament passes all laws in Montenegro and appoints the Prime Minister.

The Government of Montenegro has established several attractive global economic projects which have drawn the interest of foreign and domestic investors alike and are expected to achieve rapid economic development. 

Since September (1996), it has opened a trade mission in Washington, unveiled a national airline, declared itself a low-tax "profit-making paradise" - like Cyprus - developed a Tourist Masterplan and tapped supermodel Claudia Schiffer to sing its praises world-wide".

Montenegro is experiencing significant inward investment through the European Bank for Reconstruction and Development (EBRD), the European Investment Bank. Montenegro is seeking membership of the European Union 2015, but already the EU has provided over €2bn to Montenegro and Serbia since 2000. Investment is going into airports at Podgorica and Tivat, as well as railways, highways and waterways.

The country is well placed to generate 'ecotourism': skiing in its prodigious mountains, white-water rafting in its cavernous gorges, fishing, sailing and bird watching. There are acres of UNESCO protected natural parks and lakes. Most of all, for those less inclined to exert themselves, bathing in a generous Mediterranean sun in any one of Montenegro's 117 beaches and caves along its gorgeous coast.