This article is the first part of a study exploring the success and limits of external non-military coercion in intrastate conflict. This part seeks to understand the conditions and methods that made non-military coercion a useful conflict management strategy in the Former Yugoslav Republic of Macedonia. The study aims to demonstrate the effectiveness of non-military coercion as a reasonable alternative to military forms of intervention. Empirical data were drawn from a series of elite interviews and documentary accounts collected in three subsequent field trips. The analysis separates the conflict into three distinct phases, emergence, escalation and settlement, to illustrate the influence of coercion on the decision-making calculus of conflict participants, and outlines the coordinated use of positive inducements and pressures to portray the positive influence of non-military coercion on the de-escalation of interethnic violence.