Yugoslavia: Economy


Figure 1.--

Yugosalvia before World War II like the Balkans in general was a largely agricultural country with limited industry. There wasa major economic divide between the mor advanced north (Slovenis and Croatia) and the less developed south (Serbia and Macedonia). This was a basically historical matter. The southern areas were the areas controlled by the Ottomans and liberated by the Serbs (19th century). The northern areas were the areas conrolled by Austria. These economic differences persisted throughout the seven decades Yugoslavia exisred (1920s-1990s) and were one of the issues leading the the independence wars (1990s). There were some important mineral reources (aluminum (bauxite), coal, copper, iron, lead, mercury, and zinc). The economy was dominated by agriculture, primarily peasant agriculture. There were differences, not geographic based but because Yugoslavia was cobelled together after World War I primarily from Serbia and regions of the former Austro-Hungarian Empire. The economic changes were limited. The econmy continued to be dominated by peasant agriculture. There was some limited industry. And a great deal of what night be called artisan manufacturing. There were in sharp contrast to the post-World War I era, major economic changes after Word War II. The Communist Government immediatelu began implementing a Soviet model. which seized control of private holdings was an effort to industrialize the country. All industry was nationalized and converted to state ownership. These socialist enterprises had some success, at least within the other largely inefficent countries of COMECON. Few if any could compete with Western cpitalist industrues, but within the Soviet bloc did reasonbly well. The new Yugoslavs Communist Government upon seizing power also began to implement a collectivization process, again following the Soviet model. Tito and his assoociates were committd Communists who believed that Communism and Socialist economics actially worked. Stalin;s efforts to arrest Tito and the experience of runningb the economy, adjusted their thinking. And we have some of the earlist experints with market reforms, albeit minimal. With the implosion of the Soviet Union and the end of COMECON, few Yugoslav industries were efficent enough to compete on the world market or against imports from Western countries on the domestic market. The Government following Markist doctine and Soviet practices also began collectivizing agriculture, but the resulting drop in harvest levels convinced authorities to discontinue this process.

North-South Economic Divide

Yugosalvia before World War II like the Balkans in general was a largely agricultural country with limited industry. There was a major economic divide between the mor advanced north (Slovenis and Croatia) and the less developed south (Serbia and Macedonia). This was a basically historical matter. The southern areas were the areas controlled by the Ottomans and liberated by the Serbs (19th century). The northern areas were the areas conrolled by Austria. These economic differences persisted throughout the seven decades Yugosklavuia exisred (1920s-1990s) and were one of the issues leading the the independence wars (1990s).

Resourcs

Yugoslavia had some important mineral reources (aluminum (bauxite), coal, copper, iron, lead, mercury, and zinc). Thee were also vluable forestry resources.

Sectors

The economy was dominated by agriculture, primarily peasant agriculture.

Two Different Eras

There were also econmic differences, not geographic based but because during the seven decades that Yugoslavia existed, the country was ruled by two very different regimes. The forst was Royal Yugolavia. The country was created around the pre-World War I Serbian monarchy. The various lands of the southern Slavs (Slovenia, Croatia, Bosnia, Montenegro, Macedonia, and other smaller areas were added to Serbia to form Royal Yugoslavia (1923-41). The country was occupied by the Axis (1941-45) and experienced a terrible bloodlettin as a result of the Germans, Axis allies, local collaborators, Particans, and Chetniks, became on of the deadly places of the War. Not only were countless people killed, but The economy was virtually destroyed. The Partisans prevailed and after the War established another Soviet-style police state and began to pursue Soviet-style economics (1946). This began to change. Stalin soured on Tito because he did not prove to be a sufficently docile puppet (1928). And after successfully defying Stalin, Tito began to slow down the collectivation of peasant agriculture. The Yugoslav Communists also began the first concessions to market conomics by a Communist state since Lenin's New Economic Policy (1921-28).

Royal Yugoslavuia (1919/23-41)

Yugoslavia was cobelled together after World War I primarily from Serbia and regions of the former Austro-Hungarian Empire. The economic changes were limited. The econmy continued to be dominated by peasant agriculture. There was some limited industry. And a great deal of what night be called artisan manufacturing. Major chanhgs did not follow the creation of Yugoslavia. There was some political turmoil, but there were no major economic reforms.

World War II Axis Occupation (1941-45)

Yugoslavia was occupied by the Axis after a swift German military campaign (April 1941). Yugoslavs experienced a terrible bloodlettin as a result of the Germans, Axis allies, local collaborators, Particans, and Chetniks, became on of the deadly places of the War. Not only were countless people killed, but The economy was virtually destroyed. Yugoslavia was onr of the country's more devestated by World War II. The Communist Government faced an enormous job of relief and reconstruction. than any other country in Europe. The damage began with the German invasion (April 1941). Hitler was furious that the Yugoslavs overthrew the Government he forced to sign the Axis Pact. He decided to punish the Yugoslavs by the terror bombing of Belgrade. About 17,000 people were killed in the Luftwaffe terror bombing of a largely undefended city. The ensuing German invasion quickly suceeded and left the country in Axis hands. The country was occupied by Bulgaria, Germany, Hungary, and Italy. The Germans granted a kind of independence to Croatia. The occupation progressed differently in these various zones. The Germans distrusted tghe Serbs because they had fought with the Allies in World War I and for racial reasons. They quickly round up the Jews. About 70,000 were killed even before the death camps in Poland were opened. It was the Serbs who were killed in large numbers. The Germans reacted viciously to acts of resistance. But even more deadly than the Germans were the Croat Ustaše. A complicated civil war developed in addition to the Resistance.

Communist Yugsoslavia (1945-95)

The Partisans prevailed in the World War II guerilla struggle and after the War established another Soviet-style police state and began to pursue Soviet-style economics (1946). There were in sharp contrast to the post-World War I era, major economic changes after Word War II. The Communist Government immediately began implementing a Soviet model. The state seized control of private holdings and a major effort was made to industrialize the country. Communists in general see industrialization as the future and generally marginalize agriculture. The Yugoslav Communists were no exception. All industry was nationalized and converted to state ownership. These socialist enterprises had some success, at least within the other largely inefficent countries of COMECON. Few if any could compete with Western capitalist industrues, but within the Soviet bloc did reasonbly well. The new Yugoslavs Communist Government upon seizing power also began to implement a collectivization process, again following the Soviet model. The Communists began the collectivization (kolektivizacija) process (1946). The goal was to 'consolidate' individual landholdings and labor into collective farms (Peasants' Work Cooperatives). They followed the Soviet pattern with two types of farms, the state farms and collective farms. Peasant holdings were operated under government supervision. The state farms were owned and operated by the governments paying workers wages. Tito and his assoociates were committed Communists who believed that Communism and Socialist economics actially worked. Like the Soviets before them and the other Eastern European Communists, they assumed that Socialist economics and the supression of capitalism would immediately result in prosperity. Stalin's efforts to arrest Tito and the experience of running the economy, adjusted their thinking. The collectivization process ended (1952). Peasants still owning their land were allowed to contnue to do so. Government investsments, however, were all directed to the state sector. And in industry we have some of the earlist experints with market reforms, albeit minimal. With the implosion of the Soviet Union and the end of COMECON, few Yugoslav industries were efficent enough to compete on the world market or against imports from Western countries on the domestic market. The Government following Markist doctine and Soviet practices also began collectivizing agriculture, but the resulting drop in harvest levels convinced authorities to discontinue this process.








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Created: 1:38 AM 7/15/2018
Last updated: 1:38 AM 7/15/2018