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Balkanize (v.)

1914, "to divide into small and mutually hostile groups," as was the political condition of the Balkans; it is said to have been coined by English editor James Louis Garvin, but A.J. Toynbee (1922) credited it to "German Socialists" describing the results of the treaty of Brest-Litovsk. Either way, the reference is to the political situation in the Balkans c. 1878-1913, when the European section of the Ottoman Empire split up into small, warring nations. Balkanized and Balkanization both also are from 1920.

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Definitions of Balkanize from WordNet

Balkanize (v.)
divide a territory into small, hostile states;
Synonyms: Balkanise
From wordnet.princeton.edu