ABSTRACT
The subsequent evolution of the communist systems in the two countries could not have been more different. In contrast to the Yugoslav experiment with pro-market reforms and decentralization, the Albanian government persisted with its devotion to the Stalinist system of central planning and state ownership of property. While the Yugoslavs pursued the decentralization of the state and progressively reduced the power of the federal government, in Albania the state became an increasingly dominant influence in all aspects of life. Albania became closed and centralized, while Yugoslavia developed a system of market socialism, open to trade and the out-migration of labour to the West. As a leading member of the Movement of Non-Aligned Nations, Yugoslavia acted as a bridge between the opposing power blocs in the Cold War. In contrast, Albania eventually isolated itself from the outside world and pursued a path of autarchy and self-sufficiency. This chapter explores these divergent experiences and the background to the collapse of the communist systems in the two countries.
