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=DRAFT= DRAFT This is a Draft Edit for the page Socialist Federal Republic of Yugoslavia


 * Paragraph Addition in: Section 4: Economy

=Yugoslavia and International Financial Institutions=

The need for national loans
The SRFY's need for national loans was unique in that it was one of the first European countries The SFRY's economic stagnation was most largely attributed to record levels of unemployment, a beneficial welfare state and a rapid degree of hyperinflation. Beyond this, the SFRY was nowhere near macroeconomic equilibrium -- making structural adjustments seemingly ineffective without economic stability. This produced twofold obstacles for the SRFY: to address both the need for immediate stabilization and long-term prevention of XYZ. Although many other socialist countries had begun transitions on behalf of conditionalities with either the World Bank or the International Monetary Fund, there was no "one size fits all" policy roadmap that outlined an approach for the SRFY.

One of the SFRYs major causes of instability of enterprise-loss. This refers to Addressed by (next section): fiscal discipline, spontaneous privatization, characterized by programs that rapidly reallocate capital from the state to labor and management, and a centralized reporting system -- ie a non-confiscatory, but the inflationary route.

IMF and World Bank Involvement
In 1945, the then Federal People's Republic of Yugoslavia adopted the Articles of Agreement of the World Bank. By the late 1970s, Yugoslavia was one of the top five borrowing nations to receive loans from the World Bank. Together, this accounted for approximately $12 billion of Yugoslavia's debt, which equated to about 60 loans. By the late 1970s, Yugoslavia was one of the top five borrowing nations to receive loans from the World Bank. Together, this accounted for approximately $12 billion of Yugoslavia's debt, which equated to about 60 loans.

The World Bank developed substantial loans and conditionalities requiring structural adjustment in the form of decentralization -- something the SRFY has already been developing through various policies, like increased autonomy for firms. Because political intricacies are so interconnected with economic functions, the SFRY also rapidly transformed their political institutions to accommodate macroeconomic endeavors The SFRY transitioned from a centrally planned economy to a decentralized economy (REF). Part of the plan to decentralize included redistribution of power over labor and management (REF). With greater self-management over firms and ultimately an extension of worker autonomy over the enterprise, government and the private sector increased coordination in addressing intersectional problems and common macroeconomic endeavors (REF). developed features of a more coordinated market economy or social market economy.

Fall and cascading effects
Defaulted loans absorbed by successor states erected directly from former Socialist Yugoslavia. The stagnation of the Yugoslav economy was only compounded - and subsequently warranted of loaning - after it's major banks failed.