Yugoslavia - Self management socialism and the challenges of development (Vol. 1 of 6) : An economic system in evolution

k- LL L FILE COPY Report No. 1615a-YU Yugoslavia: Self-Management Socialism and the Challen1rs of Develonment (In Six Volumes) Volume I Part 1: An Economic System in Evolution March 21, 1978 Firope, Middle East and Nnrth Africa Region FUDmK ,rmaFFrI.C i AA L Imu S .. -tON , Document of the World Bank This document has a restricted distribution and may hb used by recipients only in the performance of their official duties. Its contents may not otherwise he disc!osed without World Rank aiithnriz7tionn  CURRENCY EQUIVALENTS Before January 23, 1971 1 US dollar = 12.5 dinars 1 Dinar = 8 US cents From January 23, 1971 to December 22, 1971 1 USdo A1lr = 15. n 44a 1 Dir.ar - .7zScents From December 22, 1971 to July 12, 1973 1-US dollar = 17.0 dinars 1 Dinar = 5.89 US cents Since July 12, 1973 The Dinar has been floating. The rate of December 31,1977 was 1 US dollar = 18.445 dinars 1 Dinar = 5.42 US cents  MD R O IrF! AT LTUE OTf v YUGOSLAVIA: SELF-MANAGEMENT SOCIALISM AND THE CHALLENGES OF DEVELOPMENT Trable ofP rConlents I U.LC Page No. VOLUME I COUNTRY DATA MAP PREFACE. PART I: AN ECONOMIC SYSTEM IN EVOLUTION .... .............. 1 I. THE 1974 CONSTITUTION: ANTECEDENTS AND IMPLICATIONS. i The Historical Setting .1 Economic Overview 1954-74. 3 Economic Management 1950-74. 6 Economic Performance 1965-75. 7 The 1974 Constitution and its Economic Implications .12 II. MEDIUM-TERM PROSPECTS: THE FIVE-YEAR PLAN, 1976-80 .20 Recent Developments .20 The Balance of Payments and Economic Growth . 22 Labor Force and Employment Prospects 29 Reducing Regional Disparities .32 Summary .37 VOLUME II PART II: SELF-MANAGEMENT SOCIALISM--CONTOURS OF THE SYSTEM. 39 A. THE INSTITUTIONAL FRAMEWORK OF THE YUGOSLAV SYSTEM .... 40 Historical Overview .40 Political Premises of the Yugoslav System 43 Instruments and Organizations of Self- Management .50 B. MARKET AND PLANNING IN THE YUGOSLAV SYSTEM .. 65 The Role of the Mfarket .65 Planning .70 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorivation.  Table of Contents (Continued) Page No. VOLUME III PART III: DEVELOPMENT ISSUES ............................... 83 I. STABILIZATION ............................... 84 Trends and Functioning of the Economy, 1966-75. .................................. 84 Macro-Economic Policies ..... ................ 91 Prospects fLor Stabilizatior ....................1 I T T OBILIZA'TIVPJ 110 J.J. AftJLa2I.JDZJ kUJL.LkiL'.1.....1.0 ..... .... Trends O'L Financial LDieve'Lopment L96'-7J .I.... I 110 Business Banks .............................. 126 Other Financial IntermuediarLie ...... . . . . . . . . I Social and Private Sectors Savings and Investments i966-75 ..... .................. 134 Prospects for Domestic Resource Mobilization. 145 III. ALLOCATION OF INVESTMENT RESOURCES ... ....... 166 Past Development ............................ 166 New System of Resource Allocation .... ....... i89 Allocation in the Five-Year Plan 1976-80 .... 198 IV. FOREIGN ECONOMIC RELATIONS .... .............. 215 Structure of the Balance of Payments ... ..... 215 Foreign Trade and Payments System and Policy. 244 Prospects ....... ............................ 254 VOLUME IV V. EMPLOYMENT ....... ........................... 280 Characteristics ............................. 281 Labor Absorption ............................ 294 Employment Policy ..... ...................... 310 Population, Active Labor Force and Employment 1975-85 ........ ........................... 317 VI. REGIONAL DISPARITIES ..... ................... 355 Factors Affecting Interregional Disparities . 360 Past Measures to Redress Regional Disparities 376 Targets, Measures and Policies of the New Plan ....... ........................... 381  Table of Contents (Continued) Paee No. VII. FUTURE PROSPECTS AND THE FIVE-YEAR PLAN _Q3 The Lona-Term Plan 1976-85 .... .............. 39QQ The Five-Year Plan 1976-80 ........ .......... 402 VOLUME V APPENDICES I. GLOSSARY OF FREQUENTLY USED LEGAL AND SYSTEM TERMS II. THE CONTOLURS OF A THEORY OF SELF-MANAGEMENT PLANNING III. NATIONAL ACCOUNTS OF YUGOSLAVIA IV. FLOW OF FUNDS V. THE SCOPE OF A SOCIALIST CAPITAL MARKET WITHIN THE V'TT('CT AXT CV1U VI. FORMAT, SCOPE AND APPLICATION OF COST-BENEFIT ANALYSIS VIT. T tL'OIT AV?ENT;' STATISTICAT NOTEVT VuLaur1i VI V'l'11. INP`u T1-OT j.Pl T ANiAT.YS IS F ...............R YUGOSL. T AVTIA   LIST OF TABLES Table No. Page No. VOLUME I PART I: ,A ECONOMIC SYSTEM IN EVOLUTION I. The- 1974 ConLLs t i t u t-i on: Anteced4ents and TImplicatior.s * ~ J J J *~ '..~JL~ L.LLUL.LJLI * CLLIU.