Ethnic groups

Differences betweenMontenegrins andSerbs are a matter of continuing controversy. Although isolated from each other for centuries during the Ottoman period, when Albanian families came to dominate the interveningKosovo region, both groups retained their Orthodox religious traditions and many other common cultural attributes—including theCyrillic alphabet. Because of such obviouscommonalities, most Serbs see Montenegrins as “Mountain Serbs,” and many—but certainly not all—Montenegrins see themselves as Serb in origin.

Fluctuations between a Serb and a Montenegrin identity have been reflected in census figures. In 1981, for example, more than two-thirds of the residents of Montenegro identified themselves as Montenegrin, while only a tiny percentage reported themselves as Serb. By the early 1990s those proportions had changed to about three-fifths and one-tenth, respectively. In the early 21st century almost half of the population was identified as Montenegrin and about one-fourth as Serb. The largest non-Serb minorities areBosniaks (Muslims) and Albanians, the former concentrated in the northern mountains and the latter along the Adriatic coast. Nearly three-fourths of the population of the coastalcommunity ofUlcinj is Albanian.

Languages and religion

During the long period of separation fromSerbia, Montenegrins developed characteristics and institutions of their own. For example, they did not adhere to theSerbian Orthodox Church but were led by their own metropolitan until the Montenegrin church was absorbed into the Serbian patriarchate in 1920. In addition, Montenegrin pronunciation is closer to Croatian than to Serbian. A strong nationalist movement grew alongside Montenegrin resentment of Serbian attempts to minimize their distinctiveness. Many (but by no means all) Montenegrins joined Bosnians, Croats, and Serbs in insisting that what is spoken in each of their respective countries is a language distinct from neighbouring languages, despite mutual intelligibility. Thus, they prefer that their language be calledMontenegrin. Montenegrin,Serbian, Bosnian,Albanian, and Croatian are all recognized by the constitution as official languages.

Settlement patterns

In the 1940s about seven-eighths of Montenegrins were classified as rural, but over ensuing decades this proportion changed dramatically. By the early 21st century less than two-fifths of the population lived in rural areas. Montenegrin villages are found mainly in the polje depressions of the Karst. Houses are most often constructed of stone, frequently without mortar. The largest city by far isPodgorica, followed in size byNikšić, Pljevlja, Bijelo Polje,Cetinje, andBar.

Agriculture, forestry, and fishing

Although thecountry isendowed with only limited areas of suitable soil and climate, farming dominated Montenegro’s economy until the mid-20th century. Less than one-tenth of the land is farmed, and about two-fifths of this is devoted to grains. In upland areas the principal agricultural activity is sheepherding. With woodlands covering more than two-fifths of Montenegro, forestry is economically important. Despite the country’s significant seacoast,commercial fishing is negligible.

Power and resources

Bauxite, the principal raw material for aluminum, is Montenegro’s chief metallic resource. It is found principally near Nikšić. Significanthydroelectric power is produced at the Piva River plant on a tributary of the Drina and at the Peručica installation on the Zeta River. Montenegro also has a thermoelectric plant, which burns lignite mined near the town of Pljevlja.

Manufacturing

About one-tenth of Montenegro’s manufacturinglabour force is employed in the steelworks at Nikšić, the country’s largest industrial facility despite a location generally unsuited to steelmaking. (Lacking local sources of both coking coal and iron ore, the works long depended on imports ofpig iron from Zenica in Bosnia and Herzegovina.) Podgorica, where agricultural products (including tobacco) are processed, provides even more manufacturing jobs than Nikšić. Refrigerators are manufactured in Cetinje.

Finance and trade

Established in 1993, the Central Bank of Montenegro is responsible formonetary policy, the development of a sound banking system, and payment operations. The Germanmark was declared the sole means of payment in Montenegro in November 2000, and in 2002 Montenegro’s officialcurrency became theeuro, theEU’s single currency. Astock market began operating in 1996. Most enterprises in Montenegro have begunprivatization, and it is expected that most of these will eventually trade on the exchange.

Labour andtaxation

Because of the small numbers of nonagricultural workers,labour union activity is minor and local. Montenegrin taxes include personal and corporate income taxes, excise duties, sales taxes, property taxes, taxes on financial transactions, and use taxes. Montenegro was constitutionally required to remit a portion of its revenue to federal institutions while part ofYugoslavia but stopped doing so in 1998.

Tourism

Montenegro’s 150 miles (240 km) of seacoast have long been a majortourist destination. Attractive landscapes, picturesque old stone houses, and beaches draw both domestic and foreign tourists. The kings of prewar Yugoslavia had a summer palace near Miločer, and the postwar regime transformed the ancient fishing village of Sveti Stefan into a luxury resort. The city ofUlcinj—whose architecture has been influenced by the Greeks,Byzantines, Venetians, and Asians—is an important tourist destination.

Transportation and telecommunications

Montenegro’s firstrailroad was a short line connecting the port ofBar with Virpazar onLake Scutari. During the period betweenWorld War I andWorld War II, another rail line was constructed between Podgorica and Nikšić. Improvements continued during the communist era, including extension of a rail link in 1986 to the newly constructed Albanian system. The completion of the long-planned route between Bar andBelgrade in 1976 extended Montenegro’s rail lines considerably. About three-fifths of the country’s roads are classified as modern. The country’s sole maritime port is the small community of Bar; closed briefly in the early 1990s, it reopened in 1996.

Under Yugoslav regimes, Montenegro developed a modern telecommunications system. Unlike the Serbian telecommunicationsinfrastructure, Montenegro’s was not damaged duringNATO’s bombing campaign in 1999. Indeed, the system was augmented by access to European satellites and increased Internet availability.