balkanize

To break up into small, mutually-hostile units, especially on a political basis.

The Pentagon and the CIA were being Balkanized, partially dismantled, and a Congressional investigation had focused on Screaming Fist.

Alternative letter-case form of Balkanize.

And while political analysts and government officials in the region say the spreading Sunni disillusionment with Shiites and their backers in Iran will benefit Sunni-led governments and the United States, they and others worry that the tensions could start to balkanize the region as they have in Iraq itself.