Requiem for the Yugoslav Economy

It is sometimes said that Yugoslavia disintegrated because of its economic failures. Those who know a bit more talk about the failure of self-management. Still others say that social property was responsible for the failures. Some economists admit that economic development occurred but maintain that this was because of foreign aid. None of these explanations is correct. The causes are political. I have elaborated a complete political economy of socialism elsewhere, and I will not repeat it here. By way of introduction, let me point to a few crucial economic facts.’

Before World War II, Yugoslavia was extremely underdeveloped. However, because of rapid development, by 1968 Yugoslavia had surpassed the prewar level of producti...