“Security/defense” are products of a mechanism called state apparatus, which must deliver some essential public goods. If those public goods are not delivered, or are delivered in small quantities and are of poor quality, it is difficult to have a robust “security/defense” chain. Therefore, the Balkans are and will stay (with the Baltic States) the weak links of NATO. It is generally accepted that in the early 90s “democracy” was introduced into the Balkan countries, starting with free elections. However, condition sine qua non for genuine democracy is not the existence of institutions but the functioning of institutions. Instead of law and order, chaotic “freedoms” were introduced. The main beneficiaries of the change are crooks, organized crime and “political elites.” The raison d'être of public institutions is to promote public goods, and above all trust, so that governments can introduce reforms and citizens are confident about their intentions and aims. It is known that too many judges are corrupted, but what is not yet recognized is that attorneys-at-law and public notaries are also corrupted and have set up, with the support of judges, ad hoc criminal groups. Let's add that terrorism is a blessing for the Western European tourist industry while for NATO, it is an additional burden because both organized crime, for keeping on their “business”, and terrorists, for getting documents and find safe havens, need failed States. When institutions deliver “public bads,”, when taking to the streets appears not to solve the problem, young people choose to emigrate. Economically this is called “fiscal mortality”. However, more deathful than generally recognized is the brain drain of quality and democratically educated workforce that leaves free space for corruption. Until now such “controlled instability” in the Balkan by Western power and money rely on their supremacy in the region. But with the rewarming of the Cold War, balances are changing, and hidden instabilities could easily be revitalized to produce similar conditions that produced World War I.