ABSTRACT
Contrary to the predictions of critics of the Bank and Fund, one Soviet Bloc country, Yugoslavia, has maintained a close and cooperative relationship with the International Bank for Reconstruction and Development and the International Monetary Fund (IMF) during its years of membership. Yugoslavia set a precedent in both foreign policy and socialist economic practice by first defying the Soviet Union and subsequently devising a unique economic structure combining elements of self-management, socialism and market forces. Worker's self-management was introduced by Tito on January 7, 1950, and reforms necessary to complete the transformation from an administratively-directed economy continued to be passed with increasing frequency until early in 1954. The formative stages of a money market in Yugoslavia also appeared during 1963 with the introduction of negotiable government bonds. That the Yugoslav and IMF perspectives coicided was not a matter of coercion but of coincidence based in part on circumstance and in part on cooperation.
