ABSTRACT
During the 1960s, the evolution of institutional change in the economy entered a new stage with Yugoslavia's systemic "mutation." All the grass roots-level economic units made "self-management agreements" with their suppliers and their future customers at the beginning of the planning process. At a union congress in 1978, Josip Broz Tito spoke about the "insufficiencies" of Yugoslavian development: slight gains in productivity, excessive growth in consumption, dispersion of investment, a negative balance of trade, indebtedness, inflation. A major gap in the system of self-management was the weak mobility of capital, which was aggravated by the fact that the republican and provincial governments planned and implemented economic development policy to large degree. The decision made in 1989 to authorize the free determination of wages heated up inflationary process, and the wages-prices and prices-prices effects opened the door to hyperinflation. The federal government recently introduced a new series of laws in parliament in an attempt to assign ownership titles for social property.
