The Main Mechanisms of State Control over Economy in Socialist Yugoslavia: From Central Planning to Individual Credit Scheme Policy, 1947–1964 Cover Image
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Главни механизми контроле привреде у социјалистичкој Југославији – од централног планирања до кредитне политике (1947–1964)
The Main Mechanisms of State Control over Economy in Socialist Yugoslavia: From Central Planning to Individual Credit Scheme Policy, 1947–1964

Author(s): Milan Piljak
Subject(s): National Economy, Economic history, Political history, Economic policy, Economic development, Post-War period (1950 - 1989)
Published by: Institut za noviju istoriju Srbije
Keywords: central-planning economy; economic control; economic reform; distribution of funds;
Summary/Abstract: The Communist Party ideology – disillusioned by economic performances of the previous regime of interwar Yugoslavia, and strongly inspired by Soviet economic model and experience – instigated CPY towards central-planning economic system soon after the end of World War Two. Unlike the market economy, where certain limitations and scrutiny over the economy existed, the central-planning was almost everything about the control. Although the Yugoslav leadership was the fi rst (among the Soviet satellites) in introducing the central-planning, it was also the first that have abandoned it. However, that process was slow and painful, lasting for almost two decades. In fact, it never ended but went through considerable changes on the institutional level. This paper is focused on these very institutional leftovers which continued to function within the system. Observed from this institutional point of view, Yugoslavia greatly diverged from Soviet model and experience. Yet, although the Yugoslav pioneer achievements were bringing it closer to the model of mixed economies of the Western Europe, it was still quite far away from there, lacking independent credit institutions, thus still more resembling to other state-socialist countries and economies than to Western ones. The unquestionable role of communist party appeared a major ingredient (shared by Soviets and their allies, including Yugoslavia) in crucial economic decision making.