Yugoslavia - Economic development (Vol. 5 of 6) : Volume 5

-FIL COPYn DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Not For Public Use Report No. 194a-YU THE ECONOMIC DEVELOPMENT OF YUGOSLAVIA (in six volumes) VOLUME V APPENDICES November 26, 1973 Europe, Middle East and North Africa Region This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report.  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 US dollar = 15.0 dinars 1 Dinar = 6.67 US cents From December 22, 1971 to February 23, 1972 1 US dollar = 17.0 dinars 1 Dinar = 5.89 US cents .From February 23, 1973 to July 12, 1973 MIaintained a central rate of 1 US dollar = 17.0 dinars 1 Dinar = 5.89 US cents Since July 12, 1973 The Dinar has been floating. The rate of July 12, was 1 US dollar = 15.50 dinars 1 Dinar = 6.45 US cents * All conversions of 1971 data into dollars in this Report have been made at this exchange rate.  APPENDIX I STATISTICAL NOTE Introductioon 1. The statistical system of Yugoslavia is ma;nly organized around three importaa.t institutions: (a) Federal Institute for Statistics (FIS) (b) Social Accounting Services (SAS) (c) Institute of Economic Investment 2. Directly depending on the Federal Institute for Statistics are three statistical sectors: (a) Economic: Agriculture, Industry, Transportation and Prices (b) National Accounting with Input-output and consumption surveys (c) Population and social services with demography, education, employment and wages. 3. The Socia' Accounting Services which was created in 1953 as an in- spection branch of the National Bank of Yugoslavia and became a separate de- partment in 1960, is in charge of the monetary control of all transactions of the economy within the socialized sector (which is about 80 percent of the total economy). The SAS functions are the following: (a) Auditing (b) Recording financial statistics (c) Analysis of financial statistics (d) Giro operations among social accounting. Auditing is essentially concerned with fiscal control and al'l legal prescrip- tions not so much connected with salaries but with investment. All enterprises including banks, schools, are required to submit balance sheets to the SAS which are inspected quarterly, semi-annually or annually as appropriate. Taxes (and in particular turn-over taxes) are carefully analyzed. Deprecia- tion allowances are not controlled, but by the end of 1966 minimum levels for such allowances were established. Some enterprises which are in effect com- plexes of industries often provide a separate statement sheet for each unit. Alternatively they prepare a special reporting sheet for the use of the Na- tional Account Unit of the FTS. 4, Up to 1969 tEhe estimates of Gross Fixed Investment were prepared by the Institute of Economic Investment. While the basic current price data are estimates fromL the SAS, the price indices used, for deflating to derive real  APPE;NDTX I - Page 2 investment are cE.Lculated In the institute. For construction, different price iadices are prepared for the various areas. For equipment prices are the same all over the cour;try. The fixed investment would probably understate the true fixed investment because some of the investment is covered under maintenance. Estimates Df irvestment in the individual sector are prepared on the basis of private construction statistics which are available in the communes, the use of input-output tables, and import data. Estimates of individual invest- ment in irrigation and 1ivestock have a weaker statistical basis. 5. Tne principal characteristics of the National Account system in Yugoslav-_ are the three main accounts: "C-1" relates to producers of goods and produ--ive services, private and public as well; "C-2" relates to indi- viduals as consumers; "C-3" reLates to public services, health, education and personal services not included in account "C-1". 6. The Federal Institute of Statistics prepares estimates of Gross M4aterial Product (G,2) at current prices, both by industrial origin and by end use - consumption, investment and foreign balance. These accounts are the ones used in the country and published by the United Nations in the National Accounts Yearbook. 7. GMP includes the market price value-added of those sectors which produce goods, industry-agriculture, handicrafts, forestry and construction - plus the value-added by the activities contributing to the production and distribution of these goods and thereby increasing their value - transport and trade. It also includes passengers, transportation and all hotel services. 8. In order to adjust gross material product to gross domestic product, account "C-3" shou