Serbia and Montenegro (formerly Federal Republic ofYugoslavia or F.R.Y.).

This article provides information on Serbia and Montenegro. The Serbian state as known today was created in 1170 A.D. by Stefan Nemanja, the founder of the Nemanjic dynasty. Montenegro's history is almost inextricably tied to Serbia's. Montenegro was the only Allied country in World War I to be annexed to another country at the end of the war. Military branches of both countries include the Army of Serbia and Montenegro, which includes ground forces with internal and border troops, naval forces, and air and air defense forces, and Civil Defense. Civilians fit for military service are estimated at about 2,088,595 (2001 est.). The 2002 estimate for military expenditures as percent of GDP is 3.6%. Following the assassination of Serbian Prime Minister Zoran Djindjic in March 2003, the Ministry of Defense has undertaken significant reform initiatives, which have been successful in moving Serbia and Montenegro closer to Euro-Atlantic integration. The economy of Serbia and Montenegro entered a prolonged decline in 1998. Privatization efforts have not succeeded as well as macroeconomic reform. The process of privatization is not popular among workers of large socially owned companies, and many citizens appear to believe the tendering process is overly centralized and controlled from Belgrade.