The social property in Yugoslavia

“Društvena svojina” are the croatian words for “social property. After the defeat of the nazis in the big war, extremely devastating for the balcan population, what Yugoslavia was and experiment and self managed socialism. Yugoslavian experiment


Faced with the economic stagnation, after the resolution of Inforbiro, due to the blockade imposed by the Warsaw Pact countries, the growing discontent of the people and realizing that the Soviet system of economic management is not effective, the Yugoslav leaders, have returned to the roots of Marxism – Marx’s writings. They were looking for a way to increase the efficiency of companies and enterprises, motivate employees to work more and more responsible and turn them from objects (that are conducted) in subjects who themselves decide on their existence, Yugoslav communists used the original ideas of Marxism – the workers’ councils as a method of direct democracy, formally set up on top of the ladder.

In those years, the Yugoslav communists fiercely examined their own ideology, and at the end of those turmoil they laid the foundations for a new economic mechanism which they called – socialist (workers’) self-management.

The first workers’ councils were formed by the then state-owned companies – in 1949, it was legalized by legislative act, which the Federal Assembly voted in 1950. and 1951. in order to have the new system fully implemented. [2] With these laws state ownership of the means of production legally becomes “social property” (drustveno vlasnistvo) entrusted to the management of workers in enterprises.

Iron Gate Hydroelectric Power Plant

The workers’ councils were themselves determining their production plans, pricing their products and services and oversaw the finances, but the power (government) retain control mechanisms through the directors over the decisions of the workers’ councils, because appointed directors had veto power over the workers’ councils. At the same time the Reform of economic planning and market economy was introduced trough the back door, leaving the companies themselves to form the prices – on the basis of offer and demand, but the foreign trade remained under the jurisdiction of the Federal Government. [2] Changing the centralized planned economy, for the system of self-management, was demanding the Communist Party itself to be reformed, conceded its current monopoly on decision-making. At the Sixth Party Congress in November 1952, the Communist Party, changed its name to the League of Communists of Yugoslavia, with this wanting to make it clear that it broke with its Stalinist history and revise its own leading role in the political life of the country. Congress has announced that the Communist Party will structurally separate from the state. Instead of direct involvement in the operations of government and economic processes in the country, the Communist Party will move the focus of its work on the impact in all layers of society, on making decisions democratically through education, publicity and participation of individual Communists in political institutions, workers’ councils and other organizations. Free discussion within-party, were to determine the political agenda, which would then be finally adopted by the Congress, after that the program, according to the principle of democratic centralism, binding on all members to support it and implement. At the same time the possibility of a multi-party system was rejected, so that the Communist Party held a monopoly over political life in the country. Three months after the Congress, the National Front was transformed into the Socialist Alliance of Working People of Yugoslavia, the umbrella organization of all citizens and their associations. [2]

The Federal Assembly passed The Constitutional law in 1953, with which almost changed the whole Constitution of 1946 in accordance with the new laws on workers’ self-management. [2]

Since March 1953, the Government began disbanding previously favored cooperatives and state agricultural combines. Two-thirds of farmers halt to cooperatives within nine months, and the share of social land ownership fell from 25% to 9 per cent within three years. In an attempt to alleviate the problem of peasant “with no land”, the government has reduced the size of the private land of 25 – 35 acres to the farmland of 10 acres. This restriction remaine

d in force for more than three decades and have limited the development of effective family farms. The government also abolished the system of compulsory purchase and fixed taxes in advance, inciting peasants to join the purchasing and selling their products through cooperatives, those years increased investment in agriculture. As a result, the Yugoslav agricultural production rose continuously in the 1950s, so that in 1958. and 1959. had a record harvest. [2] However, in this period, the state has focused on industrial development, after the reforms of 1953., And the introduction of workers self-management, industrial production experienced a boom, with exports more than doubled between 1954. – 1960. So that Yugoslavia between 1957 and 1960. had the second highest growth rate in the world. [2]

Tuzla power plant

This growth has allowed the improvement of the standard of living, better health care, education and access to wider layers of culture. [2]…


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