Yugoslavian economy VS IMF-WB?

[maxham]

During the 1950-1960s, most of the communist states enjoyed a rapid economic & wealthy boom, incl. SFRY, which had "split-up" with USSR since 1948. Yugoslavia, with her images as "one of the most liberal communist states", along with the autogestion economic system, had made the people enjoyed economic & wealth equality & also "glowing wealth", compared with the other communist states.

But sadly, after the 1973-74 energy crisis, the communist economics started to decline, including Yugoslavia herself. IMF & World Bank was blamed as the puppeteers of the communist economic decline. But how did they "destroy" Yugoslavia since the 1950-1960s?

[mykittyhasaboner]

But sadly, after the 1973-74 energy crisis, the communist economics started to decline, including Yugoslavia herself. IMF & World Bank was blamed as the puppeteers of the communist economic decline. But how did they "destroy" Yugoslavia since the 1950-1960s?

In one word: debt. When socialist countries took loans from the IMF they were basically taking out a debt for the West. This is because in order for their loans to be paid off they must be able to export back to the West; but when their are recessions in the west and exports are literally blocked off then you end up with plenty of exports but nowhere to export them i.e. crisis of over production. This phenomenon basically escalated to a point where the Yugoslav economy was brought to a stand still, and it declined even more when the Soviet Union dissolved.

So what happens when a country has been doing well for so long, then all of the sudden turns sour? Well, opportunist politicians have a field day (nationalists like Milosevic, Tudjman, etc there are too many criminals to name); and that's pretty much how it happened.