Debt and war in Yugoslavia

An unreported factor of the causes of the Balkan war is the foreign indebtedness of Yugoslavia. Since the early 1970s, the debt prob­lem, along with the cures recommended by the IMF, regenerated the differentiation between different regions of the country, and led to an unresolvable distributional conflict between the republics. The final result could not be else but the break-down of the Yugoslav economy, and the break-up of the federal stat.