The Contribution of Women to Peace and Reconciliation

areas of production, domestic and foreign trade, municipal supply, health
care, social welfare, science, education and culture, and funded from contributions
of the base organizations. These little “base organizations” thus
became the decisive supports of the self-management of the economy
and of society. This negotiation economy moved away both from the
planned economy and the nascent market economy. Instead, there were
long and expensive processes of coordination, atomization of the economy
and dominance of social property. Those who participated in selfmanagement
by way of the innumerable meetings were primarily
interested in rapidly increasing their own income. Long-term goals and
achieving high quality for foreign trade fell by the wayside, as did the
necessary cooperation. The enterprises took no responsibility for their
losses; this accrued to the municipalities, the republics and the federal
government. At the same time, the legal competences of the republics
had been increased, and those of the federal government weakened;
the organs of the republics even received veto power. Old and new conflicts
of interest between the republics led to a fragmentation of the Yugoslav
market into eight partial markets. Serious production losses
ensued. To permit implementation of a variety of uncoordinated devel -
opment programmes, public expenditure had to be increased. Additional
measures were designed to limit the negative impact of the new strat -
egy; however, they were realized only half-heartedly and actually led to
still more bureaucratization and additional expense. By the end of the
‘70s, the possibilities for achieving higher growth rates by means of fur -
ther foreign indebtedness had been exhausted. Demands for repayment
grew, while the local banks and enterprises were unable to adapt to the
new situation. Out of a desire to overcome the national divisions and injuries
of the Second World War, a crushing economic monster caught
in a trap of its own making had been created.
After Tito’s death in 1980, the national debt, inflation and the impove -
rishment of the people grew apace. The people’s confidence in the communist
leadership faded rapidly as its measures were confined to
short-term administrative patchwork, price freezes, wage freezes, investment
restrictions, currency devaluations, import restrictions, foreign
currency rationing and debt restructuring negotiations.
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