Three years after the Kosovo conflict, the Balkans remains politically and socially unstable as well as economically depressed. Even though Milosevic has gone, he has left behind him a legacy of destruction and distrust. The mechanisms, instruments, and models of international relations that provide a framework for producing security and promoting development such as creation of alliances, diplomacy, and models of security communities, did not produce the expected results. Therefore, a high potential for renewed conflict remains acute. one of the main reasons that Western Powers adopted a reluctant attitude towards the Balkans crises, or did too little too late, was misunderstanding the nature and the origin of the conflicts from the beginning. Without knowing where the region is coming from, it is impossible to construct where the region should be heading. This thesis outlines a brief history of the region that provides the context for the current situation. It demonstrates the impact of ethnicity, religion, language, culture, and economics in shaping the conflicts in the Balkans. Furthermore, it analyzes the current security and economic situation in the region. Finally, it provides some security and economic recommendations, which offer guidelines for implementing what the author considers the right path for De-Balkanizing the Balkans.