Prince Mihajlo Obrenovic (1860-68), son of Milos, is an effective ruler who further loosens the Turkish grip on Serbia.

Western-educated and autocratic, Mihajlo liberalizes the constitution and in 1867 secures the withdrawal of Turkish garrisons from Serbian cities.

Industrial development begins at this time, although eighty percent of Serbia's one and a quarter million people remain illiterate peasants.

Mihajlo seeks to create a South Slav confederation, and he organizes a regular army to prepare for liberation of Turkish-held Serbian territory.

Scandal undermines Mihajlo's popularity, however, and he is eventually assassinated.