Montenegro is a parliamentary republic. In terms of political and civil liberties, Montenegro ranks first. The citizens of Montenegro enjoy complete freedom. The majority of countries in which citizens enjoy broad civil and political liberties are representative democracies, in which civil servants are directly elected by the citizens to represent their needs and aspirations. Free countries are often backed by healthy economies and well-functioning governments. Prime Minister is Milo Đukanović.

According to the World Bank Group, Montenegro's government effectiveness index is 0.28. This suggests that the government of Montenegro is mediocre. While some public and civil services are limited, in other cases they can be considered adequate or even effective. Potential investors should carefully assess the government situation in Montenegro before considering any business maneuvers. In Montenegro, legislative power rests with an assembly. The Global Peace Index (GPI) for Montenegro is 1.854. The strength of the legal rights index for Montenegro is 12. Overall, it is considered quite strong – bankruptcy and collateral laws can protect the rights of borrowers and lenders quite well; Credit information is plentiful and easily accessible. In 2013, Montenegro received US$103.2 million in foreign aid. In 2014, foreign aid was $125.7. Montenegro is a member of the United Nations (UN). On June 28, 2006, it joined the United Nations as a full member. Montenegro is a member of the World Bank.