Basic Law on the Management of State Economic Enterprises by Working Collectives
Yugoslavia [1950]
Quick Summary
In 1950, Yugoslavia enacted the Basic Law on the Management of State Economic Enterprises in Workers Collectives. This law marked a significant shift from centralized Soviet-style planning, moving towards a system of worker self-management.
Key aspects of this law and the subsequent system included:
- Decentralization: It largely abolished the central planning agency, transferring authority to newly elected workers' councils within state-owned enterprises.
- Worker Control: These councils were intended to decide their own production programs based on profitability and negotiate prices.
- Investment: Enterprises had some control over investments through profits, supplemented by bank credits.
While this system aimed for greater efficiency and worker involvement, it also led to challenges such as inflation and rivalries between republics, contributing to economic difficulties in later decades.1234
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