Abstract
Although the reforms embodied in Yugoslavia's 1974 Constitution have stabilized her political situation, the increased reliance on social plans and instruments does not appear to be producing a corresponding degree of economic stability. This article describes the new political and economic decision-making system in Yugoslavia and shows how its functioning has generated certain tensions between and among governmental and productive entities, tensions that have led to unintended and undesired economic consequences. It suggests that the root of the problem lies in the operation of the new system, not in a departure from its principles.
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