Slovenias transition from labor managed economy to privately owned capitalism :: essays research papers

In 1991 following a ten day military machine resistance to the Yugoslavian National Army, Slovenia achieved its license. Since then the field has established itself by economic prosperity and stability that is not always the case for countries transforming from a communist dominated transcription. During the period that Slovenia was a part of Yugoslavia the government consisted of a socialist system dominated by the communist party with intimately aspects of political power centered at regional levels. As a part of Yugoslavia Slovenia made up one fifth of its GDP and since its independence it has maintained a consistent GDP growth rate of 4% and has been successful in its transformation to a market arrange dominated system by taking a policy of diversification of trade and an assist of bilateral and regional free trade agreements. Slovenia is a small country in central Europe. It b marks the Adriatic Sea and lies between Austria and Croatia. Slovenia is slightly smaller th an untested Jersey and has a population of just over two one million million people. Its strong historical ties to Western Europe along with many some other f runors such as a literacy rate of 99.7% have resulted in Slovenia enjoying a much higher per capita GDP than other varietying economies in Central Europe. The policy change that Slovenia experienced upon its independence involved a change from force managed enterprises to a privately owned capitalistic system. This task involves the privatization of the entire market from a socially owned and planned system. The changes to the labor market that took place were the transformation from wage controls to a competitive labor market. This was not as big of an issue in Slovenia due to the negative influence that labor-managed enterprises had on wage and price controls. The attempts to distance itself from central planning and the ideal of a functioning labor market is one of the primary reasons that Slovenia has made the transit ion to a capitalist economy with relative ease. Towards the late 1980s the Yugoslav government recognized the need for economic change in order to prevent stagflation from occurring and to spur production. Actions taken included liberalizing prices, wages, imports, and personal foreign specie accounts, which together would bring about equilibrium of relative prices. These stabilization policies allowed corporations to act more autonomously and set the stage for the eventual transition to a capitalist economy by Slovenia after its independence.Prior to the Slovene independence in 1991, the Yugoslav economy was based on labor-managed enterprises and basic price and wage controls.