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Second, the Serbs didn't have a scorched earth policy. They didn't even have time to properly collect their belongings and flee when Storm began... let alone destroy industry.
Finally, the area was mostly agrarian - not industrial.
Not having first-hand knowledge I would have to take things such as the follosing at face value...
Serbs of Croatia - Wikipedia, the free encyclopedia
Tension between Serbs and Croatians were violently high in 1990s. The violence has reduced since 2000 and has remained low to this day, however, significant problems remain. The participation of the largest Serbian party SDSS in the Croatian Government of Ivo Sanader has eased tensions to an extent, but the refugee situation is still politically sensitive. The main issue is high-level official and social discrimination against the Serbs. At the height levels of the government, new laws are continuously being introduced in order to combat this discrimination, thus, demonstrating an effort on the part of government. For example, lengthy and in some cases unfair proceedings, particularly in lower level courts, remain a major problem for Serbian returnees pursuing their rights in court. In addition, Serbs continue to be discriminated against in access to employment and in realizing other economic and social rights. Also some cases of violence and harassment against Croatian Serbs continue to be reported. The property laws allegedly favor Bosnian Croatians refugees who took residence in houses that were left unoccupied and unguarded by Serbs after Operation Storm. Amnesty International's 2005 report considers one of the greatest obstacles to the return of thousands of Croatian Serbs has been the failure of the Croatian authorities to provide adequate housing solutions to Croatian Serbs who were stripped of their occupancy rights, including where possible by reinstating occupancy rights to those who had been affected by their discriminatory termination The European Court of Human Rights decided against Croatian Serb Kristina Blečić, stripped her of occupancy rights after leaving his house in 1991 in Zadar.
Operation Storm - Wikipedia, the free encyclopedia
Approximately 300,000 Croatian Serbs were displaced during the entire war, only a third of which (or about 117,000) are officially registered as having returned as of 2005[update]. According to the UN High Commissioner for Refugees, 200,000 Croatian refugees, mostly Croatian Serbs, are still displaced in neighbouring countries and elsewhere. Many Croatian Serbs cannot return because they have lost their tenancy rights and under threats of intimidation.* Croatian Serbs continue to be the victim of discrimination in access to employment and with regard to other economic and social rights. Some cases of violence and harassment against Croatian Serbs continue to be reported. Some of the Croatian Serbs will not return out of fear of being charged for war crimes, as the Croatian police has secret war crime suspect lists; Croatia passed an Amnesty law for anyone who had not taken an active part in the war, but many do not know if they are on amnesty list or not because amnesty rules are not clear enough.  The return of refugees is further complicated by the fact that many Croats and Bosniaks (some expelled from Bosnia) have taken residence in their vacated houses. Another reason for the non-return of refugees is the fact that areas that were under Croatian Serb control during the 1991-95 period were economically ruined (unemployment in RSK was 92%). Since that time, Croatia has started a series of projects aimed at rebuilding these areas and jump-starting the economy (including special tax exemptions), but unemployment is still high.
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