page_title: Socialist Federal Republic of Yugoslavia
section_title: Reform
hierarchical_section_title: Socialist Federal Republic of Yugoslavia / History / Reform
caption_attribution_description: Josip Tito and Jimmy Carter hold a meeting between U.S. and Yugoslavian officials.
context_page_description: The Socialist Federal Republic of Yugoslavia, commonly referred to as SFR Yugoslavia or simply Yugoslavia, was a country in Southeast and Central Europe that existed from its foundation in the aftermath of World War II until its dissolution in 1992 amid the Yugoslav Wars. Covering an area of 255,804 km², the SFRY was bordered by the Adriatic Sea and Italy to the west, Austria and Hungary to the north, Bulgaria and Romania to the east, and Albania and Greece to the south. The nation was a socialist state and a federation governed by the League of Communists of Yugoslavia and made up of six socialist republics – Bosnia and Herzegovina, Croatia, Macedonia, Montenegro, Serbia, and Slovenia – with Belgrade as its capital. In addition, it included two autonomous provinces within Serbia: Kosovo and Vojvodina. The SFRY's origin is traced to 26 November 1942, when the Anti-Fascist Council for the National Liberation of Yugoslavia was formed during World War II.
  On 29 November 1945, the Federal People's Republic of Yugoslavia was proclaimed after the deposition of King Peter II, thus ending the monarchy.
context_section_description: Yugoslavia began a number of fundamental reforms in the early 1950s, bringing about change in three major directions: rapid liberalization and decentralization of the country's political system, the institution of a new, unique economic system, and a diplomatic policy of non-alignment. Yugoslavia refused to take part in the communist Warsaw Pact and instead took a neutral stance in the Cold War, becoming a founding member of the Non-Aligned Movement along with countries like India, Egypt and Indonesia, and pursuing centre-left influences that promoted a non-confrontational policy towards the U.S.A. The country distanced itself from the Soviets in 1948 and started to build its own way to socialism under the strong political leadership of Josip Broz Tito, sometimes informally called "Titoism". The economic reforms began with the introduction of workers' self-management in June 1950. In this system, profits were shared among the workers themselves as workers' councils controlled production and the profits. An industrial sector began to emerge thanks to the government's implementation of industrial and infrastructure development programs. Exports of industrial products, led by heavy machinery, transportation machines (especially in the shipbuilding industry), and military technology and equipment rose by a yearly increase of 11%. All in all, the annual growth of the gross domestic product (GDP) through to the early 1980s averaged 6.1%. Political liberalization began with the reduction of the massive state (and party) bureaucratic apparatus, a process described as the "whittling down of the state" by Boris Kidrič, President of the Yugoslav Economic Council (economics minister). On 2 November 1952, the Sixth Congress of the Communist Party of Yugoslavia introduced the "Basic Law", which emphasized the "personal freedom and rights of man" and the freedom of "free associations of working people". The Communist Party of Yugoslavia (KPJ) changed its name at this time to the League of Communists of Yugoslavia (SKJ), becoming a federation of six republican Communist parties. The result was a regime that was somewhat more humane than other Communist regimes.  However, the LCY retained absolute power; as in all Communist regimes, the legislature did little more than rubber-stamp decisions already made by the LCY's Politburo.  The secret police, the State Security Administration (U.D.B.A), while operating with considerably more restraint than its counterparts in the rest of Eastern Europe, was nonetheless a feared tool of government control. U.D.B.A was particularly notorious for assassinating suspected "enemies of the state" who lived in exile overseas. The media remained under restrictions that were somewhat onerous by Western standards, but still had somewhat more latitude than their counterparts in other Communist countries. Nationalist groups were a particular target of the authorities, with numerous arrests and prison sentences handed down over the years for separatist activities. Dissent from a radical faction within the party led by Milovan Đilas, advocating the near-complete annihilation of the state apparatus, was at this time put down by Tito's intervention. In the early 1960s concern over problems such as the building of economically irrational "political" factories and inflation led a group within the communist leadership to advocate greater decentralization. These liberals were opposed by a group around Aleksandar Ranković. In 1966 the liberals (the most important being Edvard Kardelj, Vladimir Bakarić of Croatia and Petar Stambolić of Serbia) gained the support of Tito. At a party meeting in Brijuni, Ranković faced a fully prepared dossier of accusations and a denunciation from Tito that he had formed a clique with the intention of taking power. Ranković was forced to resign all party posts and some of his supporters were expelled from the party. Throughout the 1950s and '60s, the economic development and liberalization continued at a rapid pace. The introduction of further reforms introduced a variant of market socialis
caption: U.S.-Yugoslavia summit, 1978
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