The Republic of Montenegro is situated in Southeastern Europe. It has a coast on the Adriatic Sea to the south. It is surrounded by Croatia to the west, Bosnia and Herzegovina to the northwest, Serbia to the northeast and Albania to the southeast. Podgorica is the capital as well as largest city of Montenegro. Before 1918, Montenegro was a part of Yugoslavia and the state union of Serbia and Montenegro. Montenegro became independent on 3rd June 2006. On 28th June, Montenegro became the 192nd member state of UN.

During the 10th century, the Slav tribes, mixed with Illyrians, Avars and Romans established the semi-independent dukedom of Duklja. In 1077, Pope Gregory VII recognized Duklja as an independent state, acknowledging its king Mihailo. After that the kingdom of the Serbian Grand Prince Stefan Nemanja was established. During 13th century, the Principality of Zeta became confident and forceful. But during 1360 to 1421, the House of Balsic and the House of Crnojevic ruled Zeta and the Ottoman Empire controlled the lands to the south and east from the 15th century.

In 1616 Prince Durad Cranojevic gave up the role of King in favor of the Archbishop Vavil, who then made Montenegro into a theocratic state under the rule of the prince-bishop, of Cetinje, a position held from 1697 by the Petrovic-Njego's family of the Ridani clan. In 1851, Danilo II Petrovic Njego became vladika, but in 1852 he married and left the priesthood, assumed the title of Prince and transformed his land into a secular principality.

In 1910, Prince Nikola became King of Montenegro. After two years, he declared war on the Ottoman Empire. The Montenegrin army attacked each other. The result was a military disaster for the Ottomans, who were thrown back to an area north of Constantinople. From 1919 to 1941 Montenegro was a part of the kingdom of Serbs, Croats and Slovenes, which renamed itself the kingdom of Yugoslavia in 1929.

At the time of communism, rapid urbanization and initializations could be possible in Montenegro. An industrialization sector based on electricity generation, steel, aluminum, coal mining, forestry and wood processing, textiles and tobacco manufacture was built up, with trade, overseas shipping and particularly tourism, increasingly important by 1980s.

During the time of Second World War, Montenegrin economy faced the greatest economic and financial crisis, due to the disintegration of the Yugoslav market and the imposition of the UN sanctions, in May 1992. During 1993, Montenegro faced poverty, its about two thirds of the total population lived below the poverty line. The financial losses under the adverse effects of the UN sanctions on the overall economy of Montenegro are estimated to be approximately $6.39 billion. At that time there was the second highest hyperinflation in the history of Montenegro, which was about 3 million percent in January 1994.

Montenegro's main economic activity was smuggling because I has favorable geographical location. It mainly smuggled user goods, such as petrol and cigarettes. In 1997, Milo dukanovic, Milosevic close ally took control over the ruling democratic party of Socialists of Montenegro and began severing ties with Serbia. After he blamed policies of Slobodan Milosevic for overall decline of the Montenegrin economy. Montenegro introduced the German mark response to again-growing inflation and insisted on taking more control over economic fate. This resulted in creation of Serbia and Montenegro, a loose union in which Montenegro mainly took responsibility for its economic policies. Implementation of faster and more efficient privatization, introduction of VAT and usage of euro followed this.

In the constitution of Montenegro adopted in 1992, the official languages of the republic was changed from Serb-Croat to the Ijekavian standard dialect of Serbian. As of 2003, 63.5% of the population declares Serbian their mother tongue, while almost 22% declare Montenegrin language. The dialects used are the same, very similar to those used by Serbs, Croats and Muslims in Bosmia - Herzegovina and Croatia, with slight nuances.