ABSTRACT
The Republic of Serbia has created its platform of privatization in the law on conditions and the procedures of transformation of the social into other forms of property. Privatization, one of the most important factors of the transition process, is taking place in former Yugoslavia under conditions which are far from what is usually considered “normal.” A special governmental agency has the right to control the financial aspects of property transformation. Privatization is expected to bring new winds and new elements in economic behavior on the part of the decision makers. Equally important in discouraging the process of privatization and transition in Serbia are some negative features of the general socio-economic conditions. The very existence and growth of the underground economy in Yugoslavia and its analysis has methodological and statistical features similar to those in many other countries.
