Balkanization or Balkanisation is the process involving the fragmentation of an area, country, or region into multiple smaller, and often hostile, independent states. It is usually caused by differences in ethnicity, culture, religion, and geopolitical interests.
The term was first coined in the early 20th century, and found its roots in the depiction of events during the Balkan Wars (1912–1913) and World War I (1914–1918), specifically referring to incidents that transpired earlier in the Balkans.
The term is pejorative; when sponsored or encouraged by a sovereign third party, it has been used as an accusation against such third-party nations. Controversially, the term is often used by opponents of secessionism to highlight potential dangers. The Balkan peninsula is seen as an example of shatter belts in geopolitics.
Zambia, Zimbabwe, Malawi, Uganda and Tanzania achieved independence toward the end of when the Great Powers postcolonial era came about. The period also saw the breakdown of the Federation of the Rhodesias and Nyasaland as well as the East African High Commission. Splintering into today's nations was a result of the movement towards a closed economy. Countries were adopting antitrade and anti-market policies. Tariff rates were 15% higher than in OECD countries during the 1970s and 1980s. Furthermore, countries took approaches to subsidise their own local industries, but the interior markets were small in scale. Transport networks were fragmented; regulations on labor and capital flow were increased; price controls were introduced. Between 1960 and 1990, balkanisation led to disastrous results. The GDP of these regions were one tenth of OECD countries. Balkanisation also resulted in what van de Valle called "typically fairly overvalued exchanged rates" in Africa. Balkanisation contributed to what Bates, Coatsworth & Williamson claimed to be a lost decade in Africa.
Economic stagnation ended only in the mid-1990s. Countries within the region started to input more stabilisation policies. What was originally a high exchange rate eventually fell to a more reasonable exchange rate after devaluations in 1994. By 1994, the number of countries with an exchange rate 50 percent higher than the official exchange rate had decreased from 18 to four. However, there is still limited progress in improving trade policies within the region, according to van de Walle. In addition, the post-independent countries still rely heavily on donors for development plans. Balkanisation still has an impact on today's Africa. However, this causation narrative is not popular in many circles.
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