In Serbia and Montenegro, OTI implements projects through its contractor, Creative Associates International, which, in addition to a Belgrade office, will manage the program's field offices in Kragujevac, Nis and Podgorica. The Democratic Opposition of Serbia Coalition won 176 seats, a two-thirds majority, in the December 2000 Serbian parliamentary election. The parliament was inaugurated on January 22, 2001. The social and economic situation of Serbia still requires drastic change and reform as a direct result of the policies of the past regime. Citizens still show a certain degree of patience, but new leaders fear it may wear thin without significant reform and real improvements to the quality of life.
Social unrest is possible unless real benefits are realized soon.
Expectations are high that the international community can intercede to provide interim solutions to enduring dilemmas faced by government at all levels. An ongoing debate between Serbia and Montenegro regarding their future relationship is a burning issue for many in the smaller republic of Montenegro. The Yugoslav and Montenegrin Governments have each produced a platform defining the future structure of Yugoslavia, but no agreement has been reached between representatives of the two sides. A recent accusation made by the Italian Ministry of Finance regarding Montenegrin President Djukanovic's collaboration with the Italian mafia sharpens the divisiveness of the negotiations. The Presevo Valley crisis in southern Serbia continues, with political positions hardening on each side.