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