Ken Coateg!. latest contribution to: the discussion of Yugoslavia expends his arguments considerably, Points of difference on matters of fact : end interpretation remain, however, A further note my help us‘ toward thot "olinieonl objectivity" which we all find So elusive. The points can be summarised as ‘Follows: le Politics. It is surely a fundamental proposition of marxist method and indeed of most sociologists that basic interest divisions within a social structure will tend to be reflected/its political structure, These differences of interest exist in Yugoslavia clustering around the foci of the peasantry, the different. nationalities und religious groups, complicsted by unequal levels of economic development, The historical experience i. ef thé arée‘is characterised by its instability and fragmentation. Fratricidal killing took place only 25 years ago (see, for instance, Dedijer, °° "The Beloved Land"), None of us wishes to see the Yugoslav experinent collapse on these divisionse My assessment of the situation is that it is still too early-.for the formation of any institutionolised opposition, whether it take party or faction forte I would suggest that ot present the most important area for pressure is in the field of individusl liberty to criticise snd publish. The Mihailovic affair, and the eorlier suppression of Perspektive (a‘small cultural/political review) are matters of concern, for example. Of course, this: assessment is arguable, 2. Differentials. As. I stressed, in 1961 the high differentials were being paid to directors, but to engineers ond chemists. Kolaje*s figures do not refute my general contention, since his research, although published this yecr, was carried out during summer; 1959, ieee, just about the time legal restrictions were being relaxed, Kolaja'ts book is very ; inadequate in other respects, incidertallys With regard to differentials» between firms, I still contend that this | is a necessary corollary of any’ meaningful workers? self-management, at least in the conditions of the foreseeable future, Taxation policy and indeed economic reforns will keep the differentials within bounds, though I agree the problem needs continuous care in any society, or new "enterprise elites" may emerges 3. Bureaucrats, Of course, planning stoff ‘are not the only pure: “uerats; my reference to the decrease in their numbers did not intend to imply this. But it would seem theoretically that massive planning apparatus would indicate a bureaucratised society in the sociological usage of the term, and the reduction in size in Yugoslavia is, I should have thoucht, of Significances What evidence is there that the powers of the "factory managers and industrial personnel" (presumebly “administrative personnel" is meant) have increased gince the market was introduced? However great it now is, the Directors I spoke. to unanimously felt their powers hod been reduced in favour of the workers since the administrative periods 4 Economic Reforme Ken Coates devotes most.of his rejoinder to the set of economic reforms promulgited'in Julye The expectation is that 250,000 unskilled workers are to be dismissed", there will be a "2505 cut in the living standards of precisely the lowest paid groups" The objectivity is less than clinical heres Readers of the Week who ore interested in the detailed rationale of the reforms ~ and a betweenethe~lines idea of the intense inner differences of opinion they provoked ~ are referred to Mijolko Todorovicts address to the 2nd Plenum of the.Certral Committee of the League of Communists, "Current Tasks in the Development of the Economic
.& further. comment on Yugoslavia continued
“System nnd Socialeeconomic Relatians" (Socinlist Thought and Practice, Noe
19, 1965, ppe 13=51). Basically the argument is that (a) certain, state-
determined, prices, especially in agriculture, minerals and housing have
been kept so low that the economy has become unbalanced, requiring constant
administrative intervention, and (b) this has been accentuated by a tendency
for both personal incomes and investment to rise faster than productivitye
The sources of this are to be sought in planning failures, "In point of
fact the roots of the present..edifficulties in the economic and social
sphere should be sought precisely in the fact that we failed to take
appropriate measures in good times" The reforms meen a big shakeeup =
"almost revolutionary" (pe 46). Generally it is estimated that prices
will rise by about 23%, But workers! councils will have about 20% more
incones to distribute through accompanying tax reforme The 3% difference
presumably reflects factor (b). Firms in difficulties will receive communal
and Republic aid to reorganise and become more efficient, and Federal aid
will be given to more backward regions, The only people who night suffer
severe cuts in living standard are those on fixed incomes, especially
pensions, and we shall expect aid to be given to them when the reforms
begin to be effected in Januarye The League of Communists has, "Particylar
obligntionsesee(to) workers and working organisations with low incomes" (P.s43)
Another article in the same issue illustrates the extent that price policy
was affecting the economy. The example given is for coppere Raw copper
prices were kept artificially low, and there were no funds for investments
They will be increased 2/3rds to the world level, The increased investment
this will permit will in 4 years reduce imports sufficiently to save
annually an amount of foreign exchange equal to 50% of all receipts from
foreign tourists in Yugoslavia, for this one iteme Copper manufacturers
will have to absorb some of the higher cost, and pass on some. But once
a irre is achieved, new price relationships will be healthy, (Jakic pe
Pe 141-5)
‘All*in all, the aim of the reforms is to increase productivity, rce.ove
market instability and the necessity for administrative intervention in .
the price system, "a constant source of bureaucratic tendencies” (Todorovic,
pe32). If the reforms lead to what Ken Coates says they will = and there
is no evidence thet this will be the result - they will have have foileds
None of this seems to me to provide evidence of the trends to "bureaucr=
atic anarchy" (still undefined), or fragmentationthat concerns Ken Coatese
On the contrary, it is an attempt to develop further the framework within
which workers! self-management can be exercised, in the general setting
of a developing economy and international trade relationshipse
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