The decsion to destroy Yugoslavia as a country and carve it up into a number of small proxy states was taken by the Reagan adminstration in the early 1980s.
A "Secret Sensitive" National Security Decision Directive (NSDD 133) entitled "US Policy towards Yugoslavia." (Declassified) set the foreign policy framework for the destabilization of Yugoslavia's model of market socialism and the establishment of a US sphere of influence in Southeastern Europe.
Yugoslavia was in many regards "an economic success story". In the two decades before 1980, annual gross domestic product (GDP) growth averaged 6.1 percent, medical care was free, the rate of literacy was 91 percent, and life expectancy was 72 years.
While NSDD 133 was in itself a somewhat innocous document, it provided legitimacy to the free market reforms. A series of covert intelligence operations were implemented, which consisted in creating and supporting secessionist paramilitary armies, first in Bosnia then in Kosovo.
These covert operations were combined with the destabilization of the Yugoslav economy. The application of strong economic medicine under the helm of the IMF and the World Bank ultimately led to the destruction of Yugoslavia's industrial base, the demise of the workers' cooperative and the dramatic impoverishment of its population.
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http://www.globalresearch.ca/index.php?context=va&aid=8168