If the "throw money at the problem" theorem were right - and it never was, not even once in human history - the Yugoslav wars of secession and succession would have never erupted. Former Yugoslavia was economically independent and prosperous. It constituted an effective and dynamic free trade zone between its six constituent republics. Resources were allocated within it with reasonable efficiency. Macedonia produced raw materials. Slovenia processed them. Croatia consumed them, added some industrial products of its own and all of them traded with Serbia, the seat of the administration. Yugoslavia was rather self sufficient and conducted much of its value added and trading activities in-house. The gap between its GDP and GNP only a decade ago, reflects what used to be this rather efficient and lucrative market, a mini-EU in the Balkans. The envy of all other socialist countries it was mooted to become member of the EU (then, the EEC) when the thought of the Czech Republic as a member would have elicited condescending smiles. Heavy industry, light manufacturing, construction and engineering all flourished. Yugoslavia's exports boomed. It had a proto-capitalistic system of ownership and a Japanese-style system of management. It introduced the IMF and its reforms in 1980, when Tito was still alive and years before any other socialist country. The reforms of Ante Markovic (the 1989-91 federal prime minister) are still a model of "free enterprise with a socialist bend". On purely economic grounds, the Yugoslav wars were and are a colossal insanity. The new Yugoslavia endured economic devastation to fight a losing war aimed at securing the interests and safety of Serb minorities in the newly formed Republics of former Yugoslavia (NOT to establish a "Greater Serbia" as Western propaganda has it). Macedonia withstood a multiple embargo by its neighbours Greece and Bulgaria because it wouldn't change its name or the historical status of its language. The economic price that Macedonia was forced to pay was mind boggling (the affair with Greece is dormant now but far from over) - and it was nothing compared to the Serb tally. The Jews, in contrast, were busy signing economic agreements with Germans less than 6 years after the holocaust. A different order of priorities, surely. Having lived in the Balkans and worked there for almost a decade, I am forced to conclude that economic arguments are absolutely meaningless when they clash with the proud and romantic nationalism of the likes of the Serbs. If offered in isolation, economic incentives will do nothing to reduce future conflicts or contain them. Marshal plans, future EU membership (or current EU "new" association), IMF soft loans, World Bank effective grants - will all fail to preclude future armed conflicts as they have always failed in the past.