|
Yugoslavia ECONOMIC HISTORY
YU030101.
Fifth International Technical Exposition, Belgrade,
1961
Courtesy Yugoslav National Tourist Office, New York
World War II and Recovery
Before World War II, Yugoslavia was one of Europe's most
underdeveloped countries. The eradication of feudalism after
World War I left over 75 percent of the population living in
poverty and dependent on small, inefficient peasant farms.
Economic growth, though steady, was modest. In 1938 per capita
income was 30 percent below the world average.
The German invasion of Yugoslavia and the subsequent
partition of the country among Germany, Bulgaria, Hungary, and
Italy destroyed all semblance of normal economic life. The
Germans built new factories in Slovenia and Croatia and converted
remaining plants to produce military equipment. The peasants
continued to farm, but over 50 percent of livestock and 80
percent of equipment were destroyed or confiscated during the
occupation. The communications network was sabotaged, and over
half the railroads and rolling stock was demolished. Inflation
was rampant, and barter became the prime means for transacting
business. The most devastating blow to Yugoslavia fell on its
people: over 11 percent of the prewar population was killed;
another 25 percent was left homeless.
Postwar reconstruction in Yugoslavia was financed by aid from
the United Nations Relief and Rehabilitation Administration. The
administration provided a total of US$60 million of aid in food,
clothing, medical supplies, seed, livestock, jeeps, and railroad
stock. By the end of 1946, Yugoslav national income was restored
to its 1938 level.
Data as of December 1990
|
