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The London School of Economics and Political Science WORKERS' SELF The London School of Economics and Political Science WORKERS’ SELF-MANAGEMENT IN THE ‘YUGOSLAV ROAD TO SOCIALISM’: MARKET, MOBILISATION AND POLITICAL CONFLICT 1948-1962 Vladimir Unkovski-Korica A thesis submitted to the Department of International History at the London School of Economics for the degree of Doctor of Philosophy, London, April 2011 Declaration I certify that the thesis I have presented for examination for the PhD degree of the London School of Economics and Political Science is solely my own work other than where I have clearly indicated that it is the work of others (in which case the extent of any work carried out jointly by me and any other person is clearly identified in it). The copyright of this thesis rests with the author. Quotation from it is permitted, provided that full acknowledgement is made. This thesis may not be reproduced without the prior written consent of the author. I warrant that this authorisation does not, to the best of my belief, infringe the rights of any third party. Abstract This is the first documented history of the birth and evolution of the workers’ councils system in Yugoslavia and the political conflicts that accompanied it. Straddling fourteen years, from the split with Moscow in 1948 to the re-opening of the national question for the first time after the Second World War in 1962, this thesis demonstrates that the progressive opening to the world market after the Tito-Stalin conflict intensified domestic struggles and centrifugal pulls on the federation. Using the archival materials of the ruling Communist Party, government and mass organisations, it explains the stages by which the market came to dominate the party-state’s mobilising strategies for society and the shop-floor. In Chapter 1, the introduction of workers’ councils is shown to have been a measure to reverse the extraordinary and democratising mobilisation that followed the break with the USSR, by splitting more advanced sections of the working class from those more tied to the countryside. Chapter 2 suggests that the umbilical cord set up from the West to ‘keep Tito afloat’ allowed the Yugoslav Communists to continue to invest in heavy industry over agriculture in order to escape underdevelopment. This created food shortages and massive resistance to managerial imperatives on the shop-floor. As the country fell deeper in debt, the government intensified market reform under the guise of expanding self-management in order to create an export sector. Chapter 3 sets the stage for open factional conflict in the leadership by noting the gulf between promise and reality in the workplace and on the terrain of complex and uneven domestic development. The main contribution of the thesis is to go beyond history as elite conflict and present it also as a process of class struggle with many mediating instances between the workplace and the state beholden to the world market. Acknowledgements The debts incurred during my work on this thesis are many. My principal tribute and thanks go to Anita Prazmowska, my supervisor, whose profound insight and generous support remained critical throughout. Her example and friendship are an inspiration for life. I am grateful also to a number of scholars and associates for their assistance and commentary at various stages of my research and writing: Jovo Bakic, Dayna Barnes, Robert Boyce, Tanya Harmer, Artemy Kalinovsky, SiniSa Korica, Todor Kuljic, Vladimir Markovid, Matija Medenica, Olivera Milosavljevic, Goran Music, Sanja Petrovic Todosijevic, Dragan PlavSic, Milan Radanovic, Svetozar Rajak, James Robertson, Ame Westad, and Andreja Zivkovic. Countless other friends and comrades active in the International Socialist tradition aided and shaped me in these years, and I hope I do not disappoint them. Various archivists and librarians came to my aid when I needed it. The Department of International History at LSE provided a stimulating environment for the endeavour, and I was privileged to have Dejan Jovic and David Priestland as my examiners. My devotion goes finally to those closest to me. Sara Bernard’s affection gave me vital equanimity and joy in the final stages of my labours. The love, care and companionship of Sneiana Korica, Branko Unkovski-Korica, Vladica Korica and Dimitrije Unkovski sustained and moved me, and will continue to do so. It is to them that I would dedicate my work. Any fault in the text itself must remain my own. Abbreviations c c Central Committee c v Central Council EC Executive Committee FNRJ Federal People’s Republic of Yugoslavia NFJ Popular Front of Yugoslavia KPJ Communist Party of Yugoslavia SIV Federal Executive Committee SKJ League of Communist of Yugoslavia SKOJ League of Communist Youth of Yugoslavia SSRNJ Socialist Alliance of Working People of Yugoslavia SSJ Confederation of Trade Unions of Yugoslavia Table of Contents INTRODUCTION CHAPTER 1: FACTORIES TO THE WORKERS! Part I - Before the Split with Stalin Part II - ‘Renewal’ and the April Crisis: Towards NEP Part III - Towards the ‘Yugoslav Road to Socialism’ - By Umbilical Cord with the USA CHAPTER 2: BETWEEN STATE AND MARKET: WORKERS’ COUNCILS 1953-1958 Part I - ‘The dinar has indeed started running all relations among people’: Politics, self-management and the market Part II — Self-Management, Wages and the Hungarian Scenario: 1954-1956 Part III - Income Sharing, the Market and the Trbovlje Strike 1956-1958 CHAPTER 3:WORKERS’ SELF-MANAGEMENT, THE MARKET, AND THE RETURN OF THE NATIONAL QUESTION Part I - The Strikes and the Beginning of the Faction Fight Part II - Self-Management Economics, the Politics of Mobilisation and the State CONCLUSION BIBLIOGRAPHY Introduction Yugoslavia was the first country in Eastern Europe to develop a system combining worker participation in firms with a regulated market economy. Its non-aligned position between the Cold War blocs as well as its unusually complex multinational composition accentuated the country’s apparently unique route to development for the most part of the second half of the twentieth century. This thesis charts the evolution of the ‘Yugoslav Road to Socialism’ from its inception, following the Tito-Stalin split in 1948, to its first major economic and political crisis in 1961-1962, ending with an uneasy and provisional compromise in the country’s fractured leadership as represented by the resolutions of the Sixth Plenum of the Central Committee of the League of Communists of Yugoslavia. The hypothesis put forward is that the external pressures, exacerbated in particular by the country’s western tilt in the Cold War and the debt trap it fell into as a means of securing independence from the Soviet bloc, gradually imposed the competitive imperative of accumulation for its own sake on Yugoslav development strategy, making impossible any notion of the polity evolving into a ‘free association of producers’. Prices of goods and services, including crucially labour, came to be compared to world prices in the search for a viable import-export balance. Efforts to organise work and stimulate production for international competition through a participatory economy encountered, domestically, conditions of underdevelopment and regional unevenness that further distorted the endeavour to attain equitable and smooth growth. Even as the dominant faction in the party leadership increasingly championed the pursuit of economies of scale on a federal level and on a market basis, for foreign competition, political struggles developed over control of assets and strategies towards labour, taking on a regional character but an ideological form: the defence of self-management against bureaucratic state centralism. 2 Historiography Titoist Yugoslavia drew much contemporary commentary and claimed a unique position in the Cold War set-up on account of its distinctive socio-economic system apparently based on a labour-managed economy. The post-socialist historiography, however, has produced no single documented study of the system of workers’ councils despite the slow release of documents through the 1980s, 1990s and 2000s.1 In that sense, the central plank of ‘self­ management socialism’ has been possibly the most high-profile casualty of the wars of the 1990s in the academic field. The domestic political scene in the 1950s as a whole has been a neglected topic on the research agenda since the end of the Cold War, and no comprehensive account has emerged.2 * The classical texts on post-war politics in the Anglo-Saxon world remain Dennison Rusinow’s The Yugoslav Experiment and A. Ross Johnson’s The Transformation of Communist Ideology? Two subsequent additions dealing with the impact of the Tito-Stalin split on domestic elites in the form of Ivo Banac’s With Stalin against Tito and Susan Woodward’s Socialist Unemployment dealing with the origins of the economic system have acquired the status of authoritative texts.4 Nevertheless, the political histories of the period with closest approximation to archival research are the late achievements of 1 An unpublished doctoral dissertation by Olivera Milosavljevid in fact appeared before the collapse, Driava i samoupravljanje: ¡949-1956: doktorska disertacija, Beograd, 1987. 2 The most thorough overview o f the decade is still George Walter Hoffman and Fred Warner Neal, Yugoslavia and the New Communism, New York: Twentieth Century Fund, 1962. For a short introduction to workers’ councils, see Adolf Fox Sturmthal, Workers' Councils: A Study of Workplace Organization on Both Sides of the Iron Curtain, Harvard U.P; Oxford U.P, 1964. The official history is useful but without citation of documents: Dragan Markovid et al, Factories to their workers: chronicle about workers’ management in Yugoslavia, Belgrade: [s.n.], 1965 Dennison Rusinow, The Yugoslav Experiment 1948-1974, London: Hurst for the Royal Institute of International Affairs, 1977 and A. Ross Johnson, The Transformation of Communist Ideology: The Yugoslav Case 1945-1953, Cambridge, Mass., 1972. Ivo Banac, With Stalin against Tito: Cominformist Splits in Yugoslav Communism, Ithaca; London: Cornell University Press, 1988, and Susan Woodward, Socialist Unemployment: The Political Economy of Yugoslavia, 1945-1990, Princeton NJ: Princeton University Press, c.
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