Early nineties in the Bjelovar municipality had positive impact on the spread of democracy. Political parties were created and there were preparations for the first multi-party parliamentary elections. However, the Serb Democratic Party leadership and part of Croatian Serbs were not in approval of such situation, especially because of Croatian inclination towards independence. The first rebellion took place in Pakrac in March 1991 when separatists took over the police station and disarmed Croatian police officers. Between 1990 and 1992, the Bjelovar economy was experiencing issues like the rest of Croatia. Some of them were: production drop, falling living standards, unemployment, exports drop, privatization, land reparcelling, migrations, refugees and inflation. Throughout the Bjelovar municipality and the rest of Croatia, the entire August 1991 was very dramatic. Soon after, the battle of the barracks began as they were full of armaments necessary for the defense of Croatia. In September 1991, units of the Territorial Defense Bjelovar and the SJPU „Omege“ Bjelovar managed to take over the „Božidar Adžija“ barracks in Bjelovar. From September 1991 until January 1992, there were constant battles on the first line around Pakrac, Lipik, Grubišno Polje, Veliki Grđevac, Daruvar and other border areas. The civilian population of vulnerable areas fled through Bjelovar to Zagreb as refugees. At the beginning of October 1991, the Bjelovar Operational Zone preparations for the cleaning of the Grubišno Polje municipality and Bilogora from the separatists commenced. The operation was known as „Otkos-10“. It was successful and by the end of 1991 there was groundwork for the signing of the ceasefire agreement. The Croatian leadership was able to arrange the cessation of fire on all battlefields and enable the arrival of the UNPROFOR forces to end the conflicts a calm way.