For some years, the philosophy of self-management has been the pillar of Yugoslavia's economy.
GV INTERIOR Polish Parliament PAN TO speaker
SV Polish people queueing outside shop for food (5 shots)
Jelovica, Yugoslavia: CU Portrait of late President Tito - GV and CUs meeting of Workers' Council of Jelovica with President of Council (in dark glasses) addressing members (4 shots)
GV PAN OVER New Drying house for timber under construction
GV INTERIOR New Machinery being installed in timber drying house
SV Goods stacked in factory yard and inside factory and being loaded onto fork lift truck
GV Lubljana: GV Slovania Parliament House and statue of Edvard Kardelj (3 shots)
CU & SV Kardelj at unveiling ceremony (2 shots)
CU FROM Sign "Skofja Loka" TO GV of town
GV PAN FROM New blocks of flats TO homes for old people (2 shots)
GV School buildings and children playing in playground (3 shots)
GV PAN New sports centre
CU INTERIORS Supermarket shelves stocked with foodstuffs (3 shots)
SV People paying for purchases in supermarket (2 shots)
CU PAN OVER Jewellery on display in shop and people looking at wares (4 shots)
ADDITIONAL INFORMATION: Yugoslavia is a Socialist Federal Republic comprising the Republics of Serbia, Croatia, Macedonia, Montenegro, Slovenia, and Bosnia-Herzegovina.
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Background: For some years, the philosophy of self-management has been the pillar of Yugoslavia's economy. Until Marshal Tito's rift with Joseph Stalin in 1948, socialist Yugoslavia was as state-controlled as any other economy in Eastern Europe. But for years later, a new Constitution brought a simultaneous return of land to the peasants and factories to the workers -- an experiment in economic democracy clearly distinguishing it from developments in the "capitalist" West and the "socialist" East. Another East European country, Poland, adhered to traditional Socialist methods -- until forced along a similar path by the independent trade union Solidarity. They won sweeping reforms.
SYNOPSIS: But, the time martial law was imposed last December, the state of Poland's economy was critical. Solidarity's achievements were swamped by massive inflation that raised the cost of food and fuel by between 200 and 400 per cent, and reduced the nation's output by a fifth. The priority now was to pay off Poland's massive foreign debts and reduce the country's dependence on foreign credit.
In Yugoslavia, both the theory and practice of self-management have undergone constant changes and adjustment over the years. Here at Skofja Loka, the workers council of Jelovica -- a firm producing doors and windows -- discuss new projects and wage levels for their fellow employees. Management by the workers has brought widespread reforms which do not exist in other eastern European countries...
Yugoslavia, compared with nations like Poland and Romania, has improved its financial situation over the years. But the country's system of self-management was reported to have encountered its most serious challenge this year when an eruption of price increases caught both the nation and the Government unprepared. Inflation was said to be running at more than 12 per cent and to have had a serious effect on the low income groups. But there has been no lack of faith in the country's system of worker management...
The late President Tito is said to have needed a lot of persuasion to agree to the principle of self-management for Yugoslavia. He is reported to have been finally persuaded when his closest colleague, Edvard Kardelj, reminded him it was Lenin himself who coined the phrase "factories to the workers".. Mr Kardelj, the League of Communists chief ideologist, died in 1979...
Over-spending has been one of the most persistent problems facing Yugoslavia economic managers. Western reports say the self-managing enterprises have tended to vote for higher investment at the same time as for higher wages. The collective funds of these local enterprises have been used to build houses for the old, schools, sports stadiums and many other projects for the people... Recent planning guidelines however, now insist on investment being concentrated on purely economic projects. The priorities include industrial modernisation and export growth...
Yugoslavia hopes rising income from exports and tourism will help it reduce its balance of payments deficit and cope with other economic problems...The International Monetary Fund (IMF) provides financial assistance to the Yugoslavs under a programme which makes sure it meets certain economic targets. An IMF survey increased worldwide economic problems...
To beat current inflation and unemployment, Yugoslavia needs to earn more hard currency by higher exports to both East and West. The Yugoslav self-management system has already shown it is prepared to make drastic cuts in living standards to win the fight against recession...