Political and Economic System in Yugoslavia

Studies in the Communitist System

Abstract

After being expelled from the Cominform, Yugoslavia became the focus of the world's attention, not only because of its neutralistic diplomacy but also because of the new experiment of its political and economic system. This new experiment, which tried socialization and industrialization of the country with a decentralized and marketeconomic system, denying the Soviet centralized and planned economic system, is a very important and interesting subject in terms of democratizing of political and economic systems in East European countries following the Hungarian revolution, in terms of promoting self-management of enterprises in the Soviet Union and in terms of so cialization and industrialization of newly developed countries in Asia and Africa. The distinctive feature of this Yugoslav socialism is, roughly speaking, its administrative system, in which federal function is greatly curtailed and local commune is regarded as the fundamental unit of self-government and administration, and its economic system, in which self-management of individual enterprise through workers' council is recognized, and economic development is to be performed not by a plan but by means of the rule of supply and demand.
These new political and economic systems in Yugoslavia have been modified on many points reflecting internal and external conditions and leaders' relative pliability. Especially since 1959, they have experienced great shaking caused by increased difficulties. This article will survey two characteristics of Yugoslav political and economic systems, namely organization and development of the local self-governing system and workers' self-management system. Moreover it will analyze a question which is to be clarified by the recent shaking, especially focusing on the worker's self-management system. As for organizational questions, we will see the function of director of enterprise, election method of worker's council, and influence upon self-management of several political and economic organizations, such as local communes, economic associations, the League of Communists. As for economic activities, we will see method for distribution of earnings, role of market and limits on price setting.