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

In 1991 following a ten mean solar day military resistance to the Yugoslav National Army, Slovenia achieved its independence. Since then the country has constituted itself through economic prosperity and stability that is not always the geek for countries transforming from a communist dominate system. During the period that Slovenia was a part of Yugoslavia the authorities consisted of a socialist system dominated by the communist troupe with most aspects of political power centered at regional levels. As a part of Yugoslavia Slovenia do up one fifth of its gross domestic product and since its independence it has maintained a consistent GDP growth point of 4% and has been successful in its transformation to a commercialize dominated system by taking a policy of diversification of merchandise and an advocate of bilateral and regional free trade agreements. Slovenia is a dispirited country in central Europe. It borders the Adriatic Sea and lies between Austria and Croatia. Slovenia is slightly smaller than New Jersey and has a population of just over devil million people. Its strong historical ties to Western Europe along with umteen other factors such as a literacy rate of 99.7% have resulted in Slovenia enjoying a much higher per capita GDP than other transitioning economies in primordial Europe. The policy lurch that Slovenia experienced upon its independence involved a change from labor managed enterprises to a privately owned capitalist system. This task involves the privatization of the constitutional market from a socially owned and planned system. The changes to the labor market that took place were the transformation from net controls to a competitive labor market. This was not as big of an issue in Slovenia due to the negative make that labor-managed enterprises had on wage and price controls. The attempts to distance itself from central planning and the lofty of a functioning labor market is one of the primary reasons that Slovenia has made the transition to a capitalist economy with relative ease. Towards the late eighties 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 external currency accounts, which together would bring about equilibrium of relative prices. These stabilisation 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.