LIBERALIZATION IN YOUGOSLAVIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-02771R000200330007-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 38
• Document Creation Date: December 20, 2016
• Document Release Date: September 13, 2006
• Sequence Number: 7
• Publication Date: August 24, 1999
• Content Type: REPORT

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ATIO4 IN ZU0037.04VIA
25X1
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D.
APPendi3g At
Appendix 23;
Appendix c:
Appendix D;
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iOi anti
4
1
Source Re renci
h 1956
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ent
all
is the
have
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an
lookiwurea are explai one or
aUorf *us deaentniaixation
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3
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41eo correctlyudae
y it op they had the
d4c iting the profit
t in private, by VUgoelav leadere,
kitty rt1c1patian heaidea
till's 'NAY have been a cautiowx
tete rlat&ve atety or danger
AA' srrottrary power of the
(permitting multiple
open voter el meetings or
have been a test
pulaee. The greater
rt to utilize the
effeetite legisla
an exorcise in intra-
rly prescribed in
and
Permitteu
ret
ana
ty
tO
ye and
nOe DY,
bone
r tho
ation
niOlr
ther
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4ublieis lovia's so-
10,the 4.eentrallzatlon of economic
of worker management of industrial
T idaw-of 2 July 1950 decreed the
a?b14a 3onourrent and subsequent leg-
Ina oanutaonatl-decentralization by the
i &flu republio economic manistries. To
rial_deaentralization was accompanied
Ltate from control of the economy
ty. ic is the purpose of this sur-
poten-Qtalaties for a broader base
nt in this organizational decontra-
and t. what eXtent sueh a broader
ne the eontrol of Partys trade
baoatizations, which are theoret-
4ati4ili practically speaking, ub-
a emanating from the Communist
to review the eseentials
am, rests and then to examine
oning (generall)' the dis-
im 1954 and 1955). In the
first be made to determine
*mere se independence of decision
vine tne role of Partys trade Union,
s 'worker management" of enter-
a belaboring of propositions
.auchs procedure nevertheleba
truths and contradictory
on the subject,)
Qbvioas
iew of
tlY p?
pointed out that there is no inherentcontra-
Party Leadership's granting 'eater freedom
re and the iron law" requiring perpetuation
power. In feats inasmuch as the new eco-
ituted f'4n4m above and not apparently forced
it may be aesumed that the new freedom
W as intonded to strengthen the leaders'
t to jaapardise it, This freedom may
way af achieving the long-standing
o productions though it BOOMB true
-is goal* of industrialization
or atandaned. The new way is to
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or illusory ince vets to
by * system of worker management
ntlY Arieby an article
of Januarv 19550 written by RadivoJ Uaiic,
feohor at the University of de
, Yugoslav Minister to Norway. The
B 4.11 #tuthoritative official ugoslav
n fc,r non-Communist readers, and shows
ugoslev regime would approve. It can
Golartt of the theory and includes recent
Law which forme the basis of Uvalic's
ti tVe AccOOntltscorroborated by -.Ln-
d observers, though it leaves muah
'tangto Vvalic, turned ver the
prc31*rty to the workpeople" with-
io of public property, "which
as * whele.' Thus though fes-
shave appeared, as will be
extend t he matter or private owner-
vr41.104 non-malgent.
on was on a broad scaleallegedly
mining, cemmunications, trsnport,
restry? and other economic enterprises.*
previovs ystem a relatively small
tia# state authority exercised deci-
tion of the economy and were able
for the possibility of measures
ate of society as a whole." These
be laral avoided in worker admlnietra-
or andel eking ar, not sufTiciently
c'.4e oe eb/e to ioee their will
If an undertaking'sroductin
t attuned to he needs of
d to modify them by the mar
tion from other under -
enjoys a mOnopoly, it
oejtad, and continue to exc p
eeterpr'ies but nevertheless
ly.
8
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ket as the State
adaptability in
f reduce
lower prices.
to Qv lic's vertent con-
the worker maz*gment system cannot
th )
intendod sub tantiallI to repa3e
trot and administration of in-
s the workers' council. The mom-
re elected by all the factory
ecret ballot and varY in num -
egoording to the size of this enter -
Oloots a management committee to act
committee Wiries in el** from 3 to
ffieio the plant manager. AasationB
rkerpertiettiation in management Is
percent *r the members of the man-
dra4n frnm employees directlY sallAfid
it f each component involved
tee ricers council, management
10,44, by Walls as loalewel
the management committee and
agars, the worker,-' council
tmportent matters, such as
d Alamo sheet of the undertakIng
'dinuthe administration of the
omd reporting on the reports of
es., studying the more important
urms to be taken, distributing the
tits undertaking's not income and
I, responsible for various
drafts of the basic plans,
proper fonotioning or the undertaking
for internal organization and job
steps to promote production and
of workers and officials and for
octitn of workers, social insurance,
also responsible for the execution
4 manageMent or the undertaking....
ex officio a member of the management
he Is anewerablo. MI *moo* workers
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irIrrrrw-T 7
of4o4a4s in the undertaking except
3,-0,4441,41114014440n is made. Me is also
decisi4Jaa respeeting dismissal. Workers
voiOn-rAght to appeal to management
Undertsag egainat any decision re-
;and tho eennitteets decision is
4,4f tho undertaking is responsible
*Airs =0 officials to various posts
He also conoludes
,the werking capital under the
4Wmoe with the resolutions of the
rmeaager also represents the
14;40,0414eaeuthorities and in rola-
* e,bodies corporate. If he
luxlen of the management committee
4.1r,the.general plan he must with-
Pue),14c euthority concerned, which
" n within ten days."
of workers council powers in
to hire and fire managers, dietri-
clients* workers, and the man-
ty-for reporting infractions of
ooncerning practices in the
roe wiX1 be further elaborated.
001414 be noted thAt there seems to be no clear line
tipption ampng SaMe at the reepensibilities of the workers,
11 and thoscot the manage's-. and Walla lists this among
AS a, problem roquirirmi $4014404;
m**apw rtplations .4111 hay to define more clearly
100, rulactIcina of t44 **4-44444 organs, particularly those
Somm4.44o0a Sind manager* of undertakings.
se halve eQmetImes some into conflict,
the *tanager has tried to settle mettera
40..014,4,the eamagement comMittee or
oimilattee has underestimated
menagerts functions."
It ac,,count of the system that each
inavIdual enterpriseoitios autonomy also by determining
nails and as adf noted, 'by' the distribution of
ae 0464nSA of profits. Waite also states without
elaboration that enterprises enter into contracts with other
enterprises Independently.
111040* sr, timid Saco/ding to the volume of production
and prices planned by the ontorprioo. Aligbor trod* union bod
10
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t
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g
Orka, 111144. allocation too is charac-
argil needs ofsociety-. " It is not
work ega heve_for_choosing to contribute
imor4veiliente? apart from local pride
or ii-t, Uvalic is vague on this point,
t the workers participate here too in
,publie WarkS will be utilized.
ougp whieb workers participate leg-
la known 40 the council of producers,
by tha Constitutional Act of Feb-
a besond house of the legislature
QMoting Uvalic
ils of produ s
s in industry, a
commerce. In common
with the district
all matters in the
and may undertake the
their own initiative.
f representatives of
n to their contri-
tory of the town
nal system no
n at district,
ut the agreement
d officials who
duction and exchange
2the produceric
part of the una
al, and in the eoun-
in decisions through
developed annual economic
individual enterprises in
e importance in determining the
octal freedom. It will be useful to
this Qmatter since his discussion
standarg view, again corroborated
ndependent observers, but diffi-
aa init4Or of practice,
rkers has led to
social plan worked
longer fiXes the
iled provisions re-
nd so forth, as waa
%ion, only the
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?
e social plan,
out the plan_
s Galled plan-
is drawn up by
is and by the
the partici-
er the new
The general
n of the total
rds for the
Cum types of
out the yearly
their net
undertakings
tment re-
ulsory M-
N' de-
.sources
hatitutions
are being
and ob-
to its
with the
thus become iTch more flexibl
sent ofessential
sear ee-ordination of
is it leaves enough
t wide initiative in
*. Sash undertaking
basis of its obliga-
view to the most
=or lvities and the rational
at it disposal. Contracts
Avis. or abroad are
b te undertaking for the fulfil-
Ii ? iuci*l plan to which under-
to conform undoubtedly places cer-
*dowse of management. It should
vox, that these limits are con-
at the undertakings's income
Nismachasees if the nation, which
4i-economic organisation in the
1th the compulsory performance
tlos4i0ere4 to be essential to the
waish the necessary caveats aro
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in qu ti to
ons
ted
Ise-
ngs
note
since it
n as much
t has as.
aooinl plan.v
ait would appear
ractical dole
matters to the
tion of several of
a attempted below
ism* and, in some
ntereated observer
even though not
Oemplete insight. These
41 etermination of wages
Lr e* market economy; deter.
Wed) method of establishing
/ the annual economic plan
holars& students,
the operation
?w and often
which might
the observers
and enter-
sal of em-
ation of the theory
observations, but
urate approximation of
from biased Yugoslav
eaat any single unbiased observer.
an be Lhai..kea against Uvalic's assertions
re the original provisitn
tiele provided for
bra "competent state
.(in e3elt-aontradictory statement)
was slsatod by the workers' council
PubLte authqJ.t, but went on to sky that
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-400Paretion.
OU r -i.t10-11Pasfa4 PrOduOtion
th fuctury managers have served to
44Poot of power of workers' eouncils
ars cited as being in extremely ner-
lositlg Lhoir positions, and often
etween trying to plus. the workers'
goverseuultal authorities above them.
high.incidonce or dismissals of man-
thrtat a fed-oral intervention to
save ,little doubt about the exercise
rise auton?wy.
how4revalently or on what pGunde
but a frequent y noted phenom-
legailAperhaps in teehnieal-admin-
*ism' souncil in the joint meet-
naps to be expected that Inas-
ttor ecamated and technically
11* would frequently dominate,
rai.ivis matters. This domination
lcials+ They present it pri-
Olea emad point to the fact that
r elements of **enemies and man-
444 of sophistication of workers
re them for a more genuine voice
fr.nstainces of manager domination,
ess4.un 440t the workers have not real-
- *rely do not exercise it out of
out of baseless fears of of-
Wt reasons may well have an ele-
will be discussed more exten-
crvor,4hoso atm seem to have been
pra?tiueaf worker menagesbent
ac?eptable oonclusion that there i3
a the poect.Loet in some factories the
4icAltiati.ati a passive workers' council;
ils ere quite active and have a con-
4,414 .
tiag pr.Leles, Walla's implication
free .to set prices seems true with
311-sla own (r'egar'dingindirect
.ding o one responsible source, the
oallings on some commodities' L4/
e understandable concern with pre-
04,4uruo: coneludes that enterprises
icors and initiative within the
as-aye's of the oountry; For
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a re44v?wages well under the
ha industryin which they are
ve "IX oVer the "staximumal.
cf Uwe extremes Possible, wages
to the Medi Jugeslevonski
oftre LA percent above the maxi -
Areaat seining faotcrj near
an, 4 EAMAMM wage of b,000 dinars
41ved only 3,5Q0
to corroborate or contradict
sp's 'can produce what they like.
vre limitations of what a fac-
-i wiAat it is committed by the
via., in the establishment of new
autpices Idiacussed below), one might
udt of choice on what is to be pro-
s on private initiative
coriesondent of the .n,kr Zak Xl4afs,
have been issued whose
sit iduals to form enter-
: viviestors will have
ehterpri by virtae of their
r4n by ?ricers Council accord-
the local People's Committee.
shga, in the profits it any,
Their only privilege is to with-
wi-Q1 intereet which would be no
1114 rate. Investors also will
used Wy the enterprise: it will
*QP1,10?elommittee.
At Large scale enterprises will
t rather smaller, handicraft
number of people will con-
toots tald will have an opportun-
Inlmoters have the assurance
ode of time the enterprise will
terviews with Yugoslays involved
timid to confirm the existence of
*yet's.
orroorates at least the fact
control on the part of enterprises
2,61
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44
dixeat control over
luta or of their operations
.44W enterprise, the
Committee forms
sing about a
and grants it
tor/. Onoe
147 becomes
and competes
by the re-
ttees,
oaa grant of
rate so that,
rims offer-
the seven
has raised
Or, is that
ter a
bus
time an
economic
c law rquiring conformance
flttLLtZ&tiOfl is doubted not
a. What all observers agree
a?matter of decI.ding voliane
yea frau the olnter to a
as to ahat the various sectorti
to the production capae-
sio proportion*
evoLved with participation,
cn the enterprise level
al People's Committees to
the federal level. What
rieus investigators is the
social plan, its
federal givermawn
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vs yatern, the
for operations
its tuLt&Jrit
ti The
s and from the
in
doeu
as one harlesed
c plan is
The 'bas
ude a limited
tot a large
n specific
on bank credit
enterprise except
t and a flexible
ally included as
s an Integral
are an incredibly
exchange regu-
I economic
ning
to a
Corn-
their
he
autono. in
noes of disagree-
is only fair to
s between plan-
cede the final
d by the Federal
ible de u4ritine of the plan vary in
aacrIbin&-in v' way more control to
VarliMant without oein4abi. precisely to define
ighich thia iu exeralsed !van these more
inadvertently admit the dependence on
local 44iitlitive.
_li-getion there is a possibilitythat
sts rom*In* in effect, mandatory. In
Progosea plans Party and trade union
eterpries 444 tarty oominance In the local
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ehrsroe &nt insure acceptance of
Ahether this is a trul reflection
it mist be emphasized, is hypo-
* is lasking. Mich would de-
temminable conferences" to which
litagth would seem to suggest
ed= of eat-and-dried, uncOntest-
re. Furthermore, the amount
prises and local organm exer-
would seem at variouse with
dietary, central directive
h factors as the existence
ible prices and competition
d possibly kind of production,
row enterprises, and the
d seem to limit absolute
(mita Plan.
40
esergss of enterprise autnomy in
in some aspeets of determination
aonslrieroble variation from enter-
al though limited freedom for
foam central government direc-
it is pertinent to ask whether
the worker population at large,
tion of it only, omnipresent in
LippLoatus. Uvalic does not discus
L3 * dutiful doctrinaire he
or_becwust) an a propagondist writing
a *too difficult to explain
tit aye-44a dlaciusalan.
onomic as well ae
any of iftsobservers
asaumption while others
party dominance is imple-
flirty domination is the
r officials themselves of
s. Such evidence serves
piotro which a000v1t4 like Wallets find it
over
a
and tailing statementof such 'hidden'
vantage at the
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1,4104 ia
4v0' 4:o1nf4
au4 )'44i) oUtalltted
.0 working organize
tbi Veins looked on generally
rs' Interests* the unions
A.
trade
jets of
inde-
asionally
con-
levio eearetary goner
4tion* told me We draw
, if ,aoy non-union men get
11- .istakes have been reported.
(350 .workers' councils* 300
4 mitgiff Placed before workers;
lairOtent464 of Party members
0 asteatIy. Prom toy own ex-
wage about 60 percent.
of conforMitY.
a oh batwaea ualOn and Party Is
44
is liaison between union and
4r140.40
important Matters ached -
rkeraJ council are first dis-
izattoon. Tripto Sindik* se..-
Afliofl
organleation* told me
anged some 40 different
workers council members
of
ght take issue is
d on-general y as
e*t. It IA hard to be-
onib in his light though it
It would be difficult to
etatement on the control ling
1114 briest ststment
aioalakia recently* sought the
wcvekors on the workers' council
2sautions with Yugoslav officials.
1440-flamer* voles in management
4.4.1s* they asserted* were domi-
and a non-Party member felt
a to question Party decisions.
44 by saying that such an
oAd system of centralized
realise that they Gould havo
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4
ng admitted the
o s' COUnUB, the
f not disingenuously,
at !Petty* in the
nista) by
uced as a
s dis-
courses offered
re ostensibly given
good reason to
indoctrination
and could be
workers to sup-
trade union.
ounnil memberb
may be an instance
not clear.
oyirpriea is evident in yet on-
e* aolm.131044,aia the lo*al organs of
ted 00uo.Wert41e power over the enter-
the.s.*AWr.a taxation. What Walla
t the ddasemal of the people's council
08 tmposiod by the People's Com-
twdeubt Neol's assertion(corrob-
tee peoplo's cammittees
g power, sometimes wisely, some-
al ..11 level* is, for practical
Party and Party-approved Qrgani-
rpX1sea ini;ais awaner, too, ars Party con-
lo obamixv
tion cif
i.e MMA41#
t& thut ha la
atlon Aubj.astto Giant
la a foci' t? is further
assumed that
is "political
to have any
the Communist
discipline. To
?neurone. of Party
n oonditio in Yugo-
the country. Dospite
by Party and Party
on cannot be made
funotionally is a
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r.
terPr4A0
Wed Ind*
4tre1 &overflown
th440 deviations#
on oe nct 3.ue
id, the mrer PartY
deviations could
to 00014r.
ive
triem
log-
and.
rtY
d Beam
Qt an enter -
onal pay bontuJ
people's
or pu.1ic pro-
-and conflict in
of managers. Assum-
the stamp of approval
ttees), it seem
counoll has
ame =lager.
?rned4
et MOM-
ariralgg
tIr m041-
nal
era f w ricer's'
suah MeMberahlp.)
s (among tarty
ter of some
un-
the exietence
y leadership,
=onto suah con-
noted by an cb-
reality of
4 4 - vklilw* arec ri-
c4444 ii441 bsrvera seemed vi efod that
Ole A40(er terpriase within their goo-
, mil4414 a4Voligh taxation* erratically
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GaU.z'ailLation meaiures in the
torahip - a
graupe are
weatarn-type
introduation
in, government
btedly
trial
mono
or
resu t
and to
to
enter-
tion
n-
nt ot-
oeei1rnw ad the
tive
some form
people's
*es not seem
imputed fed-
nting cen-
provid d
dropped.
ales of "aSsociatl ns
as Chambers of
which he describes
h are allegedly
or the enterprises
thir..mmtaliprisels of
Witt= in VI*
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Cr obi. more con-
V1 ups.
ImPU444t101 1 GomPeting pressure groups
in-Zaat oniinforced by the phenomenon
called Tiroaaltsgs" in the citation above)
bean P4iallalau acknowledged by Yugoslav
arlaiomi oat :of ,decentralization and has
Obaa444xa. ,? It kaa undoubtedly been
of tliihu central controls. ''Parti-
14.1a0 of local nationalism, in-
Cilbala rivalries existing in
loaal pride superseding national
one's community translated into
Ity at the expanse of
t *OM from the eanter4
on the strength and
blies of Yugoslavik,
economic docentra-
raised a question
e to the danger of a
*demi and republic
possibility. As
ld on all sections
a lane time --they
however, arisen
Wilts,' by which
industrial unit&
profit at the
non has been
to
aaxianizatiori
at the expense of
Lally true where
alty government and
ir production to
vs call this 'sachem*
in ho process of
If
aanUO.10,4
may presage a reintro-
26
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Approved For Release 2007/10/23: CIA-RDP78-02771R000200330007-3
This
latent
inferring
eative,
tion on
es have r*ta1ted In
tT and power of clo-
the eentxL1 govern-
r1 themselves.
0 there
# to SOM2
voice
c bowle-
d con-
needa
ation
c
are
ere, ed
Ore,
vim& in
be
the
reseed
led
1
cult
trallKst on
ion4 It ly
remmAns Lows but lower
,11144 clear. The conointg
pend an other important
a ng individual initiative
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Approved For Release 2007/10/23: CIA-RDP78-02771R000200330007-3
entral,44434n and th worker management
tivo d economic demo-
conoeaiona in the
I' ctdowub . However, whatever
Qr,41111,1mmodlato post or can
ham to doubt that it is a
fo_o the reason that central
4.1.tiseo has boon curtailed,
tiat thororore the possibil ty
vomont policY has gain**.
Et8
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Approved For Release 2007/10/23: CIA-RDP78-02771R000200330007-3
V c;,
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A. ? roved For Release 2007/10/23: CIA-RDP78-02771R000200330007-3
Approved For Release 2007/10/23: CIA-RDP78-02771R000200330007-3
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Approved For Release 2007/10/23: CIA-RDP78-02771R000200330007-3
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34
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6 .
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