STUDY ON ECONOMIC RELATION AMONG REPUBLICS (AUTONOMOUS PROVINCES) AND REGIONAL ECONOMIES IN YUGOSLAVIA

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Firstly, financial aids through the Fund for Accelerating Development of Less-Developed Regions (FAD), which was established at the Federation level to reduce economic difference between the North and the South, have proved to be inefficient and ineffective.Secondly, direct investments to the less developed regions by the developed regions did not increase so much because the regime of the 1974 Constitution has prevented free transfer of capitals.Thirdly, although the necessity of the unified Yugoslav market was always stressed, in fact the tendency of territorial closing of economies was proceeding in the 1970s. In the case of the Republic of Bosnia-Herzegovina, for example, the ration of commodities supplied from outside the Republic decreased from 36.9% in 1970 to 27.1% in 1978. This means that in contrast to the historical trend inter-Republican (Provincial) thresholds became higher in Yugoslavia. This tendency became evident especially after the regime of the 1974 Constitution gav … More e big powers to Republics and Autonomous Provinces. The tendencies of territorial closeing and autarchy had been further promoted by the law on foreign currency dealing and external credits of 1977. In fact, in the overall foreign currency deficit each Republic and Autonomous Province behaved so as to increase foreign currency revenue in its territory as much as possible at the sacrifice of other Republics and Autonomous Provnces in order to make the accounts balance. Consequently as the same autarchic movement was going on within the framework of each Republic and Province or commune, these territorial units became directly connected with the world economy. From economic point of view, the tendency of disintegration of the Yugoslav Federation had begun already in the early 1970s.The collapse of socialism in Yugoslavia, more cocretly, the collapse of the regime of the 1974 Constitution caused serious national conflicts. Nevertheless, countries which had consisted of the former Yugoslavia need a loose connection in some form because even the most developed region of the former Yugoslavia lacks competitiveness in world markets. Less