Politička ekonomija reformiranja samoupravnog socijalizma – od europeizacije Jugoslavije do balkanizacije današnjeg EU-a
Political economy of reforming self-managing socialism - from europeanization to balkanization of present-day EU

Summary/Abstract: In the 1960s, the golden age of development in Europe came to an end, the socialist economies failed to adapt to the new situation and began to reform their economic system. The Yugoslav federal leadership announced economic reforms in 1961 and 1965, considered to be the best programme of economic reform and modernization during the institutional development of the Second socialist Yugoslavia. The self management system was based on the premises that the state control of the economy and planning should be replaced by contractual bargains among socially-owned enterprises, indicative planning and market mechanism. Kraigher’s reform (1965) strengthened the developmental principles and the position of industry as the leading economic activity on the one hand and stabilisation programme on the other. However, the stabilisation policy failed to live up to expectations, and its restrictive measures created new imbalances. Kraigher’s reform deepened the economic volatility, economic growth declined, while inflation and foreign debt swelled rapidly. The federal government made no particular efforts to remedy the situation and resolve the problems. In the late 1960s, the Yugoslav economic miracle came to an end. The communist authorities were preparing the grounds for constitutional ammendments, and enforced the adoption where federal communist leadership disciplined the proponents of economic reform and liberal market policies. The socialist economies, like modern EU states (Great Recession 2008-2013), failed to respond to the crisis immediately and with resolute action. This was a key reason for the disintegration of the Second Yugoslavia and could be the new form of balkanisation of EU.

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