SERBIA'S SANDZAK: WHAT A DIFFERENCE A YEAR MAKES

UNCLAS SECTION 01 OF 02 BELGRADE 001148

SENSITIVE
SIPDIS

E.O.12958: N/A
TAGS: PGOV PREL EINV SR
SUBJECT: SERBIA'S SANDZAK: WHAT A DIFFERENCE A YEAR MAKES

REF: A) BELGRADE 786, B) BELGRADE 279

Summary
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1. (SBU) Though still facing significant economic and political
challenges, Novi Pazar, the largest predominantly Muslim city in
Serbia, is no longer the potential tinderbox that it was just a year
ago. May's election of a democratically oriented - though
inexperienced - mayor, and the subsequent removal of the city's
longstanding strong man, have reduced the political tensions that
long suffocated this Bosniak majority town in southwestern Serbia.
The new pro-American mayor has committed himself to multi-ethnic and
multi-party governance while promoting openness and accountability,
but he has yet to be truly tested. Though the political feud among
the divided Muslim community lingers, name calling has replaced last
year's street violence. The easing of political tensions in Novi
Pazar is testament to an effective U.S. strategy of engaging all
sides while addressing the long term endemic problems of an isolated
and frequently politically manipulated corner of Serbia. End
Summary.

Novi Pazar: New Mayor, New Mandate
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2. (SBU) Following May's local elections, Novi Pazar (population
120,000) formed a new municipal government led by the Sandzak
Democratic Party (SDP) in coalition with the local Serb list (Ref
A). The new coalition ended more than ten years of rule by Sulejman
Ugljanin of the Democratic Action Party (SDA). In July, Mirsad
Djerlek assumed the office of mayor, and has called for an open
multi-ethnic, multi-party administration committed to good
governance. Ugljanin's ouster and Djerlek's message of compromise
have reduced the political tensions that were mounting against
Ugljanin. Though Novi Pazar has many political and economic
hurdles, our contacts all report that the atmosphere has changed
from opposition to cooperation.

Committed to Working Together...
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3. (SBU) Novi Pazar's mayor told the Ambassador during an October
29-30 visit to the city that he was committed to a multi-ethnic
municipal government. Djerlek said he recognized that ethnic
relations between the Serbian minority (15%) and the Muslim majority
(85%) were poor, and he was committed to addressing the problem
through dialogue and cooperation with the local Serbian list
coalition partners. Djerlek also said he would work with Ugljanin's
SDA, which only the day before began attending municipal assembly
sessions. Djerlek also cited a constructive meeting he had with SDA
mayors from the nearby municipalities of Sjenica and Tutin. Djerlek
said he would continue to engage feuding Muslim leaders, stating
that he would "encourage them to talk for a year, rather than to
fight for a day."

...And with the United States
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4. (SBU) In addition to working with his local citizens, Djerlek
said he was committed to working closely with the United States.
Djerlek told the Ambassador he would quickly finalize construction
of a municipal property that would serve as the newest American
Corner in Serbia.
On October 29 Djerlek signed an MOU to join USAID's Municipal
Economic Growth Activity (MEGA) program in an effort to improve the
region's business and investment climate. He also welcomed quick
U.S. technical assistance to address a significant municipal debt
that he inherited from the previous government. Djerlek asked for
our assistance in bringing the economic and political needs of Novi
Pazar to the forefront of national decision makers in Belgrade.

NGO and Business Leaders: Change and Challenges
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5. (SBU) Civic and business leaders told the Ambassador that the
political climate had calmed since the peaceful conclusion of May's
local election. They credited the mayor for his openness but
recognized significant challenges. Representatives of local NGO's
said Novi Pazar is faced with huge demographic divisions facing
women, youth, and minorities. Unemployment among youth was nearly
50%, and was even higher for women, resulting in a growing idle
population. Novi Pazar's business leaders in the local niche
textile trade said they had the capacity to expand production but
were limited by difficult access to external markets and the lack of
design and marketing capability. Businessmen were concerned that
government lending and credits would dry up during this economic
downturn and there would be no access to capital on private markets.
In order to provide greater business and educational
opportunities, all called for a more open visa regime for travel to

BELGRADE 00001148 002 OF 002


the EU, a desire heard in all corners of Serbia.

Muslim Community Feud Ongoing, But Less Tense
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6. (SBU) Muslim leaders from the feuding communities also
acknowledged a decrease in tensions with the new local government.
Mufti Muamer Zukorlic, leader of the larger and more prominent
Islamic Community in Serbia, said that with Ugljanin's removal the
region was hopeful for progress. (Comment: Zukorlic receives
political support from the SDP party and his rival Zilkic from
Ugljanin's SDA Party. End Comment) He said, however, that the new
municipal government must deliver on progress and if it "does not
pass the test, voters will vote them out at the next opportunity."
He left open exactly who would fill that political space if the
current government could not deliver. A new local government was
only part of the solution, Zukorlic said, stating that he also
wanted to see changes in the national government's interactions with
Novi Pazar, particularly regarding security, judicial, and
educational issues. He said that after years of neglect, Belgrade
needed to treat Novi Pazar (and him) as a partner which merited
respect.


7. (SBU) Reis Adem Zilkic, of the marginalized Islamic Community of
Serbia, welcomed the decrease of tensions since the elections but
said there was still "a long way to go before the Bosniak community
was able to heal itself." Like Zukorlic, he called for better
relations between Belgrade authorities and Novi Pazar. He committed
himself to dialogue with both local and national actors in order to
foster greater goodwill. (Comment: Though both were invited to
this year's Iftar hosted by the Ambassador, only Zilkic attended.
Zukorlic refused citing his opposition to our talking to Zilkic's
group. Zilkic delivered an apparently constructive speech at the
Iftar calling for reconciliation, a gesture more political than
sincere, given the defeat of his sponsor Ugljanin. End Comment.)

Comment
--------------


8. (SBU) While time may have healed some of the political wounds in
Novi Pazar, our increased engagement over the past year has also
helped create a more inclusive and calm environment. The USAID
mission maintains a field office in Novi Pazar that has worked with
local leaders to address underlying structural problems in the
business climate and local governance. Embassy officials, including
the DCM and Ambassador, have also traveled more than six times to
this isolated region in the past year in an effort to foster a
dialogue among all parties and to encourage the small civil society
to work with the municipal government which it long mistrusted.
Though the mayor and the municipality will have some major
challenges ahead, particularly in this difficult economic period,
the groundwork has been set and dialogue may now replace distrust.
End Comment.


MUNTER