| Summary: | Socialist Federal Republic of Yugoslavia
represented a community of six republics with socio-cultural,
social and economical differences that increased over the
decades, leading to disintegration of the state. Factors that
led to the collapse of the state are numerous, such as
cultural and religious differences, nationalism, structure and
function of the state system, internal and external factors of
disintegration, change in the world politics, different levels
of economic development of the republics.The economic
system of Yugoslavia was based on self-managing model, a
hybrid of both capitalism and socialism, which was
considered to be the most effective use of capital goods,
increasing workforce productivity, distributing the income
and creating a product competitive for the domestic and
foreign markets. However, this system had tremendous
disadvantages which in addition to the changes in the world
market led to the state of recession, very high inflation,
decrease in workforce productivity and competitiveness of
the final products in the markets, eventually resulting in the
collapse of the entire system and disintegration of
Yugoslavia.
|
|---|