PRIVREDA KRAGUJEVCA U PERIODU VELIKE KRIZE (1929 – 1934)
Authors:   National Museum in Kragujevac, Serbia, Đurić Katarina 
Published: September 2023

During the creation of the modern Serbian state, Kragujevac had a continuous development, primarilythanks to its geographical position, and then to various political decisions. At the beginning of the 20th century it was the Turkish city and over time it became a real European city with all those elements of development in the 19th century. First of all, thanks to the wisdom of Prince Miloš Obrenović, various institutions were founded in Kragujevac, both administrative and educational and also cultural, and thanks to him Kragujevac became not only the center of the principality of Serbia, still under the supreme Ottoman rule, but also the center of liberation movements, which developed in this period not only in the Serbian national territories but also throughout the Balkans. The decisions of the Turkish sultans were read in Kragujevac,enablingthe city with a wide degree of autonomy so that the release from external pressure became stronger and the internal influence was felt less and less. In the process, internal political freedoms processes were also getting stronger. The Sretenje Constitution passed in 1835, and it foresaw the restriction of the Prince's power and the division into judicial executive and legislative power. The development of political freedoms was unstoppable and a certain number of laws were passed, predicting economic freedom. After passing the Constitution in 1869, and political events culminated in Kragujevac, the Principality of Serbia became an independent state, in August 1878, with the declaration of the decisions of the Congress of Berlin. Political actions after this period shifted to Belgrade, and Kragujevac gradually lost its political significance, although assemblies convened in this period. At the beginning of the Great War, Kragujevac became the military capital of the Kingdom of Serbia. Apart from these political events, Kragujevac was also developing economically, which was documented by the increase in population. One of the most important events that will undoubtedly play the most significant role in its development was Prince Aleksandar Karađorđević's decision to found the first modern arms factory in the Principality of Serbia - Topolivnica. Kragujevac, as well as Prince Miloš, was chosen because of its position. During this period, the middle of the 19th century, revolutionary changes took place throughout Europe. Topolivnica had a continuous development, and thanks to its rapid modernization Kragujevac received the first electric lighting in Serbia. It is important to emphasize that the foundation of the Military School of Arts and Crafts enabled an educated workforce in Kragujevac. Kragujevac was also the center of new political ideas that dominated throughout Europe in that period. Simultaneously with the development of the Military Factory, smaller other industrial companies were created, initially intended for the local market, however, they developed over time, especially in the early 20th century.During the continuous wars waged by the Kingdom of Serbia from 1912-1918, the economic development ceased in Kragujevac. Significant civil and budgetary losses happened in this period, as in other parts of the Kingdom of Serbia. After the First World War, the facilities of the Military Factory were devastated. The gradual recovery began in the 1920s when the elite of the newly created state decided to renovate military-industrial facilities, and the number of workers started to grow. Before the war, there were about 45,000 of them. Military and economic agreements with the Kingdom of Belgium and the Republic of France enabled the import of new modern weapons technology. All these decisions had considerable consequences for the local economy so that in this first period, the number of craft shops and privately owned industrial companies significantly increased (Stefanovići and Fijale). A time of crisis in foreign relations with the surrounding countries brought faster and greater investments into military-industrial facilities throughout the Kingdom of Serbs, Croats, and Slovenes, as well as in Kragujevac. This development also enables the strengthening of local infrastructure. This continuous development of the city lasted until 1930. Due to the Great World Economic crisis, there was a decline and significant losses appeared in the economy around the world. The Great World Economic crisis hit the private craft sector, trade and financial institutions the hardest. The production volume had been reduced by almost 2/3 and traders had a reduced sales volume. The only thing that helped maintenance of the economy in this period was the existence of the Military Technical Institute, and thanks to its existence, unemployed craftsmen had the opportunity to get a job again. Kragujevac, like other cities, did not feel the consequences of the crisis to that extent, thanks to the large military factory that employed the largest part of the population fit for military service.