Socialist Federal Republic of Yugoslavia

The Socialist Federal Republic of Yugoslavia was the Yugoslav state that existed from the end of World War II to the Yugoslav wars. It was a communist republic that comprised the area of the present-day states of Bosnia and Herzegovina, Croatia, Republic of Macedonia, Serbia and Montenegro and Slovenia.

Economy

Despite common origins, the economy of socialist Yugoslavia was much different from economies of the Soviet Union and other Eastern European socialist countries, especially after the Yugoslav-Soviet break-up of 1948. Rather then being owned by the state, companies were socially owned and managed with workers' self-management. The occupation and liberation struggle in World War II left Yugoslavia's infrastructure devastated. Even the most developed parts of the country were largely rural and the little industry the country had was largely damaged or destroyed.

Related Topics:
Yugoslav-Soviet break-up - 1948 - Socially owned

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

With the exception of a recession in mid-1960s, the country's economy prospered formidably. Unemployment was low and the education level of the working force steadily increased. Due to Yugoslavia's neutrality and a leading role in the Non-aligned Movement, Yugoslav companies exported to both Western and Eastern markets. Yugoslav companies carried out construction of numerous major infrastructural and industrial projects in Africa, Europe and Asia.

Related Topics:
1960s - Non-aligned Movement

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

In 1970s, the economy was reorganized according to Edvard Kardelj's theory of associated labour, in which the right to decision making and a share in profits of socially owned companies is based on the investment of labour. All companies were transformed into organizations of associated labour. The smallest, basic organizations of associated labour, roughly corresponded to a small company or a department in a large company. These were organized into enterprises which in turn associated into composite organizations of associated labour, which could be large companies or even whole industry branches in a certain area. Most executive decision making was based in enterprises, so that these continued to compete to an extent even when they were part of a same composite organization. The appointment of managers and strategic policy of composite organizations were, depending on their size and importance, in practice often subject to political and personal influence-peddling.

Related Topics:
1970s - Edvard Kardelj - Associated labour - Socially owned companies - Enterprises

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

In order to give all employees the same access to decision making, the basic organisations of associated labour were also introduced into public services, including health and education. The basic organizations were usually made up of just dozens of people and had their own workers councils, whose assent was needed for strategic decisions and appointment of managers in enterprises or public institutions.

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

The Yugoslav wars, consequent loss of market, as well as mismanagement and/or non-transparent privatization brought further economic trouble for all former republics of Yugoslavia in the 1990s. Only Slovenia's economy grew steadily after the initial shock and slump. Croatia reached its 1990 GDP in 2003, a feat yet to be accomplished by other former Yugoslav republics.

Related Topics:
Yugoslav wars - Slovenia - Croatia - GDP

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

The money of SFRY was the Yugoslav dinar.

~ ~ ~ ~ ~ ~ ~ ~ ~ ~