Economy

Prior to World War II, Yugoslavia had an economy based primarily on agriculture. After the war, the Communist party imposed the Stalinist model of agricultural collectivization and rapid industrial development. The leadership soon relinquished orthodox Stalinism in favor of a less centralized “self-management” system and a return of much of the land to private ownership. The fertile Danubian plains of Vojvodina, in Serbia, are the most productive agricultural areas. Wheat, corn, hemp, sugar beets, and flax are the chief crops. Serbia proper has extensive vineyards and is a major fruit-growing region; plums are an important crop. Sheep and goat raising are important occupations in Montenegro.

Mining and manufacturing are the largest contributors to the economy; manufacturing is largely concentrated in Serbia proper, which is the most industrially developed region of Yugoslavia. Manufactures include iron, transport vehicles, and plastics. There are significant deposits of iron, bauxite, and petroleum in Montenegro and large coal reserves in Kosovo. The per capita gross national product for the six-republic federation was $5,000 in 1990, but soaring inflation, a staggeringly high foreign debt, rising unemployment, and the effects of an international economic blockade have brought the economies of Serbia and Montenegro to the brink of collapse.

People

Yugoslavia

Government

The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2003, Columbia University Press.

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