Foreign policy capacity is defined as dynamic, information-based adaptation by nation-states in complex, ambiguous environments that involve their domestic systems as well as external variables. On questions of Bosnia and Kosovo, Serbia's policy capacity is weakened by lack of domestic consensus on whether Belgrade should embrace East or West on Balkan security issues. Nonalignment may be one way out of this dilemma; a second avenue might be a stronger role for the Contact Group comprising the United States, Russia, and key European Union countries. A continued policy of drift at the mercy of events seems risky for Serbia over the longer term.

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