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Prior Economic Problems Due To The Economic Destruction Of Yugoslavia

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Prior Economic Problems Due To The Economic Destruction Of Yugoslavia
Lastly, the death of Tito caused further economic decline due to both prior economic problems and economic problems post Tito's death. During Tito's time as ruler, his vision was for a third way economy, in which saw Yugoslavia working with both East and West without being dominated by either. Despite communist representation, Yugoslavia was the most free of the communist states , as Tito's system allowed for small businesses which ultimately allowed for small luxuries and modest wealth. Due to Tito's system and other economic measures, Yugoslavia was at times more prosperous than poorer capitalist countries within Europe. Following Tito's death in May 1980, Yugoslavia was beset by serious economic difficulties. This was due to the reappearance of internationality relations, the clear decline in the effectiveness of established …show more content…
As conflict increased within Yugoslavia and between other nations and Yugoslavia, the economic crisis worsened and the federation became increasingly untenable. The economic crisis whilst not being the main cause of Yugoslavia's dissolution, did contribute to it as it was part of the repercussions of Tito's death.
The economic difficulties within Yugoslavia had magnified long-neglected problems and weaknesses and made the need for correction more prominent. This gave rise to more controversy and debate over the leadership of the country and whether the present circumstances demanded new and effective economic and political reforms that would ultimately carry the country in the direction of what the west calls 'liberalisation' . The other alternative was to abandon existing 'liberal' formulae and return to more 'conservative' ones. Yugoslavia was essentially divided and in a situation of stalemate. Whilst Tito's death was not the immediate cause of the economic crisis Yugoslavia

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