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The Market-Planned Economy of Yugoslavia

The Market-Planned Economy of Yugoslavia

SVETOZAR PEJOVICH
Copyright Date: 1966
Edition: NED - New edition
Pages: 176
https://www.jstor.org/stable/10.5749/j.ctttsz2d
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  • Book Info
    The Market-Planned Economy of Yugoslavia
    Book Description:

    The Yugoslavian economic system, combining, as it does, elements of Marxist socialism with many aspects of free enterprise, represents a challenging experiment which is being closely watched by students of economic and political theory. The system has attracted serious attention in the emerging nations of Asia and Africa and, more recently, in the Soviet Union itself. Though they retain socialist, state-centered goals, the Yugoslavs have introduced a great deal of decentralization and individual incentive and have allowed production to be largely regulated by the demand of a relatively free market instead of by predetermined quotas and plans. Professor Pejovich describes and analyzes this economic system, as it affects both the overall economy and the individual firm. He then provides a theoretical analysis in which he points out implications for economic theory and for the theory of socialism as well as the practical significance of the Yugoslavian experiment. The stud makes an important contribution in combining the economic theory of socialism formulated in the pioneering work of Oskar Lange with the theory of economic development if Joseph Schumpeter, whose concepts are discussed by Dr. Pejovich in an appendix.

    eISBN: 978-0-8166-6399-6
    Subjects: History

Table of Contents

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  1. Front Matter
    (pp. iii-xii)
  2. Table of Contents
    (pp. xiii-2)
  3. I THE LEGAL STRUCTURE OF THE YUGOSLAV ECONOMY
    (pp. 3-36)

    The transformation of the Yugoslav economy after the Second World War is reflected in the pattern of change in its organizational framework. The legal acts discussed in this chapter have been chosen for a comprehensive picture of these changes; they show that the Yugoslav economic system has undergone unusually frequent and substantial organizational overhauling since 1945. The economic significance of these changes will be analyzed in later chapters in this study.

    The laws and regulations noted in this chapter reveal three basic organizational innovations in the Yugoslav economy. The first was engendered by the Law on the Economic Plan of...

  4. II ECONOMIC PLANNING IN YUGOSLAVIA
    (pp. 37-57)

    Economic planning can be defined as a deliberate choice of economic priorities. The institution of economic planning is probably as old as the institution of government, if not older. Today, there seems to exist a general agreement about the necessity of some planning in the allocation of resources.

    While the scope and method of economic planning differ from one country to another, there seem to be three major types of economic planning today: in Western Europe and the United States planning is characterized by various degrees of government interference with economic processes; in Yugoslavia, India, Egypt, and some African and...

  5. III THE PERFORMANCE OF THE YUGOSLAV ECONOMY
    (pp. 58-84)

    This chapter will concentrate on the analysis of the performance of the Yugoslav economy as a whole, including the rate of economic growth since 1947, and on the analysis of some of the factors contributing to economic development. The ultimate aim of this chapter is to establish the relationship between the three major innovating actions of the Yugoslav government and the rate of economic growth.

    Yugoslav statistics do not use the concept of national product. Their concept ofsocial productcovers the following economic activities: agriculture, mining, manufacturing, construction, transport, communications, trade, and catering. It leaves out as “unproductive services”...

  6. IV THE FIRM IN YUGOSLAVIA
    (pp. 85-104)

    In order to ascertain the ability of the Yugoslav firm to innovate, i.e., to undertake actions not previously planned, and evaluate the strength of the system of incentives given to the potential innovator, we shall analyze the organization of the Yugoslav firm and its relations with the local government and the banking system.

    By foreign relations of the enterprise we shall mean its relations with local government, which is the enterprise’s direct political superior, and with the banking system, upon which the economic performance of the enterprise depends.

    This chapter will not deal with the organization of the local government....

  7. V ANALYTICAL EXPLANATION OF THE PERFORMANCE OF THE YUGOSLAV ECONOMY
    (pp. 105-119)

    The purpose of this chapter is to provide an analytical explanation of the process of organizational changes and the performance of the Yugoslav economy. It will be shown that the Schumpeter theory of economic development gives a meaningful analytical insight into the process and results of changes in the Yugoslav economy since 1945.

    Although the problem of economic development has been in the focus of economic theory for some time, an agreed-upon definition of the concept of economic development is still lacking. Our working definition of the concept of economic development will be as follows:Economic development consists of economic...

  8. VI SUMMARY
    (pp. 120-122)

    The “Yugoslav experiment” has made several contributions to the static economic theory of socialism. Analysis of the Yugoslav economy suggests that one of its most important facets is the attempt to solve the problem of the interaction of macroeconomic and microeconomic decisions; macroeconomic decisions are, in general, administratively imposed, while microeconomic decisions tend to be based on the market mechanism. We must say “tend to” because the microeconomic decisions only approach a conformation to the working of the market, since administrative interferences by local governments diminish the potential impact of the market mechanism in Yugoslavia. The solution of the interaction...

  9. Appendix I. KARL MARX AND THE PROBLEM OF TRANSITION FROM CAPITALISM TO SOCIALISM
    (pp. 125-134)
  10. Appendix II. SCIENTIFIC SOCIALISM OF KARL MARX vs. SOCIALISM IN YUGOSLAVIA
    (pp. 135-137)
  11. Appendix III. SOME IMPORTANT FEATURES OF THE THEORY OF ECONOMIC DEVELOPMENT OF JOSEPH SCHUMPETER
    (pp. 138-139)
  12. Appendix IV. FOREIGN TRADE, TANGIBLE FOREIGN AID, AND LOANS FROM THE INTERNATIONAL BANK
    (pp. 140-143)
  13. Appendix V. WORKERS’ MANAGEMENT OF A FIRM IN YUGOSLAVIA
    (pp. 144-146)
  14. Appendix VI. PUBLIC ANNOUNCEMENTS
    (pp. 147-148)
  15. NOTES
    (pp. 151-156)
  16. INDEX
    (pp. 159-160)