Evening star., 1950-09-10


In Tito's own five-year economic pl
on the achievements of the first
three years of this plan to permit
an assessment, in broad outline
of its successes and failures. Such
an assessment sheds light on So
viet-style planning in practice and
brings out the curious fact that the
Yugoslav planners often have less
real control over their economy
than British government depart
ments controlling private enter
prise or even than American Gov
ernment institutions controlling
national credit policy. It also
shows the extent to which eco
nomic planning without political
freedom leads to disorganization,
waste and inequality.
It can safely be said that the
five-year plan will not be fulfilled
anywhere near 100 per cent. Agri-
cultural production has fallen
short OF its target: the peasants
have cut down production owing to
dissatisfaction with the govern
ment's compulsory purchase price
for their crops and this years
drought has lowered the yield.
This year the supply Of rationed
goods and goods sold at controlled
prices has been cut by 8 per cent
from its already low level. in spite
of the fact that the number of
workers has increased. This has
further weakened incentives to
work, especially for the peasants.
Money Loses Value
After the war the Yugoslav
government took over ownership
of all the non-agricultural ma
tional wealth, and, with plan
based on Soviet technique. aimed
at controlling the nations eco
nomic development. Now the best
single test of a governments ef-
fective economic control is the
value Of its money. In Britain.
for example. since 1945, imitation
has been largely overcome (though
the British are very strongly af-
fected, as a trading nation, by
world price movements largely by
the process of matching ambi-
tions to resources.
In Yugoslavia, where the gov
ernment has greater nominal con-
troll. money has lost much OF its
value. No price indices are pub
lished, but observation shows a
two, three or four fold increase
since 1947 in the price Of those
things available to the purchaser
drink, fruit. restaurant meals, rail
travel, clothes and unrationed
food. A graded rationing system
which allows every one. according
to his job.- a certain guaranteed
amount of goods at fixed prices
has not prevented money from
losing much of its value, especially
as an incentive. After a worker
or peasant has earned enough to
cover his rations, rent and cigar
cites (Which are not expensive),
his further money income has less
value. s.
The government is responsible
for this situation, since it is paying
out far more in cash than it can
redeem with consumer goods. Ra-
tioning and controls are no REM
edy since coupons merely become
another kind of money.
Like Stain, Tito attempted
rapid industrialization, taking for
granted that the peasants would
increase production and hand over
all their produce. But, unlike
Stain, he wished to achieve it
without the use Of violence and
colonial methods. Collectiviza-
ton of the farms was to be the
"open sesame" insuring rapidly
increased production, and the de-
livery of produce to the State at
fixed prices. But Tito lacked,
among other things, the admins
trative machinery for implement
ing such plan.
Labor Problem :
In Britain, with an efficient civil
service, a Ministry of Labor with
its labor exchanges, county agri-
cultural committees and other
tested organizations, planning is
usually an essay in the possible.
New measures Of control are ex-
pected to show at least a prima
facie case to justify interference
with the individual. Public opin-
ion. Parliament. business organi-
cations, trade unions and con-
sumer choice Qimited, but still
very reaD all act as q check on
the power of the government