While the Dayton agreement on Bosnia-Herzegovina has moved that troubled region toward peace, it could not eliminate all the dangers precipitated by the breakup of Yugoslavia. The South Balkans--Kosovo, Macedonia, Albania--is beset by conflicts that have the potential to destabilize the region and to draw NATO members or other states into the fray. This report, the first in a series on conflict prevention by the Center for Preventative Action (CPA) at the Council on Foreign Relations, presents recommendations to avert the spread of the ex-Yugoslav conflict into the South Balkans and to create a more enduring framework for peace and security in the region. The report was written by members of the CPA South Balkans Working Group, which visited the region and met with officials, nongovernmental organizations, and community leaders as part of its field mission. It includes a section on the historical background of the conflict written by Steven L. Burg, as well as an appendix by Victor A. Friedman, which gives further insight into the complex issues surrounding ethnic and other identities in the Balkans; and evaluates some previous efforts at conflict prevention by the international community.