The economic model of socialist Yugoslavia: The saga of self-destruction

Abstract

This paper analyzes causes of the collapse of the economy of socialist Yugoslavia. At the heart of the problem was the inability of the Yugoslav economy to generate accumulation capable of financing sustainable economic growth and development. In the absence of clear ownership relations, in the entire post-war period, Yugoslav economy generated systemic deficits that would fall on the shoulders of future generations. After half a century of redistribution and not creating new value, growing political and social tensions at the federal and inter-republic level eventually led to the disintegration of the state. Unfortunately, camouflaged as "anti-communist communism" this paradigm is the lifeblood of Serbian society today. If the Serbian society does not build a new value system based on a new political and social philosophy it will experience a thorough devastation with unforeseeable harmful consequences. [Projekat Ministarstva nauke Republike Srbije, br. 179035]

Keywords

• accumulation
• investments
• redistribution
• systemic deficit
• social ownership