Dissatisfaction with Government remains high, particularly in south. President Akayev consolidated power by pushing through widely-criticised constitutional referendum, but promises not to run in next election, due in 2005. Conviction of popular opposition leader Feliks Kulov upheld by Supreme Court.

Following Kyrgyz president’s example, President Rakhmonov held referendum on package of constitutional changes, one of which could allow him to remain in power until 2020. Government said amendments approved by over 93% of voters.

Central Asia’s most repressive and isolated country showing no signs of progress. President Niyazov maintains strict control over general population, limiting access to information, restricting travel abroad, and using systematic human rights abuses to stifle dissent. Parliament, until recently rubber-stamping body, now stripped even of that function.

Government continued campaign against suspected Islamic extremists, especially alleged members of banned Hizb ut-Tahrir. Heavy-handedness on part of security services, including widespread use of torture, risks further radicalising segments of the Muslim population. Little danger of conflict in short term, but continuing repressive policies here, as elsewhere in region, risk future unrest.

Parliament finally approved composition of new electoral commission, but compromise went against recommendations of U.S. envoy James Baker aimed at preventing electoral fraud in Nov. 2003 elections. Little progress made in negotiations over future status of Abkhazia.

Moldovan and Transdniestrian forces took first demilitarisation step in years, withdrawing 37 armoured vehicles from Security Zone separating sides. EU and NATO discussing OSCE proposal to send peacekeepers Moldova to help settle dispute and bring order to region.

SFOR made unsuccessful efforts to capture indicted war criminals, mounting raid on home of Gen. Ratko Mladic's late mother on 13 August and surrounding sites associated with Radovan Karadzic in Pale on 26 August. Mitar Rasevic, chief warder at Serb prison in Foca, surrendered to Hague Tribunal. The 3 ruling nationalist parties continue to bicker - both with coalition partners and within their ranks over jobs, education and tax reform, and proposed unification of Mostar.

Serbian parliament adopted declaration on 26 August reaffirming claim to Kosovo. 2 Serb teenagers killed and 6 injured in attack by unknown assailants on 13 August. UN police officer killed in ambush on 2 August. Kosovo Serb arrested. Unknown how much of violence was response to Belgrade’s declaration on Kosovo, coming as it did during transition to new UNMIK Chief, Harri Holkeri.

Increase in violent incidents as ethnic tensions persist. Albanian National Army fired 2 rocket-propelled grenades on 25 August at guard tower on Kosovo-Macedonia border; grenade attacks by unknown assailants on Skopje government buildings and bomb explosion on railway tracks north of Skopje on 28 August. No one injured. 2 police officers briefly kidnapped by ethnic Albanian gunmen on 27 August. Mandate of EU peacekeeping mission extended until 15 December 2003; EU police mission to strengthen rule of law under consideration.

Montenegrin politics continue to be overshadowed by allegations of smuggling and human trafficking.