Neoclassical Economics and Yugoslav Socialism
Neoclassical Economics and Yugoslav Socialism
After World War II, Marshall Josip Broz Tito and his Communist Party took control of the Yugoslav state and embarked on the creation of a socialist system based on the Soviet model by nationalizing companies and replacing markets with centralized planning. In addition, the Communist Party declared neoclassical economics “bourgeois” in contrast to Marxist political economy which is proletarian and replaced existing economics professors with a new cadre of Marxist-trained economists. Yugoslavia, a solid member of the East Bloc, initially followed the Soviet path to socialism but later discarded the Soviet model in favor of its own brand of socialism. In 1948, the country was expelled by the Soviet leadership from the Cominform, an organization uniting the Communist Parties of Eastern and Western Europe. This chapter explores how Yugoslavia mobilized neoclassical economics—which seemed to lean towards capitalism and the West—to develop a new non-Soviet socialism that became a global model for development.
Keywords: Josip Broz Tito, Communist Party, Yugoslavia, neoclassical economics, Soviet Union, Cominform
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