SOCIAL CHANGE AND NATIONAL QUESTION IN EASTERN EUROPE

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After a clash with Stalin, Yugoslav Communist broke with Soviet model of Socialism and adopted a new type of socialist system. One of the basic institutions was workers' self-management system of the enterprise. In this system, workers council, elected by all employees, appointed the director of the enterprise and supervised management board.The significance of this system was that it facilitated employees to identify themselves strongly with the enterprise and thus enhanced their work morale. Moreover workers had a good opportunity to learn the operation of the firm through the participation in management. This was particularly important, because it transformed the employees of peasant origin into the real industrial workers.However, workers' self-management revealed its drawback in 1980s. The biggest problem was that workers wanted too much wage when they distributed the corporate income. The enterprise extended its business depending on a bank loan. Its source was foreign debt. Yugoslav economy fell into a crisis when they could not afford to reply a loan. The government printed money to make up for financial deficit and raised an enormous inflation.In the beginning of 1990s Yugoslav communist regime collapsed and ethnic conflicts followed all over the country. Workers self-management system disappeared. Nevertheless we must admit that it was a historical experiment of employees' participation in management.