The Yugopluralist Model

Topics: Germany, Market economy, Soviet Union Pages: 2 (678 words) Published: August 2, 2013
The Yugopluralist Model
In contrast to reform in COMECON (Council for Mutual Economic Assistance) nations, policy changes in the former Yugoslavia were initiated at the local level. This resulted in an economic model unique to Yugoslavia, and a function of its pluralism. Dana (1994d) explains how the Yugopluralist model was a result of a week central government and the cultural heterogeneity of its constituent republics. Members of the federation gained substantial autonomy as decentralization of the federal system enabled each one to implement change at its own pace; culture was thus an important determinant of difference in economy policy which in turn contributed to the regional disparity. The Perseritje Model

Reform in Albania was even more radical than in the USSR and CPMECON countries. In 1986, there were only forty automobiles in Albania; there neither bananas nor Coca-Cola in this country with imports were few. Yet, once the nation moved away from Enver Hox ideology and embarked on its Pereritje Model of Transition, the Brea Woods institutions considered Albania to be one of the most successful transitional economies in Europe. The Perseritje Model is analyzed in de in Dana (1996a; 2000b). Top down Reform Model

While reform in the former Yugopluralist was initiated at the local level and subsequently caused changes at the federal level, the top-down reform model illustrates reform by decree, from the top levels, of government, down to the people. Several governments declared the change from a centrally planned economy to one driven by market forces. The German Democratic Republic followed the top-down reform model when transforming itself into a market economy and merged into the German Federal republic. Dana (1994c) notes that while this model causes rapid reform, side-effects include a variety of economic problems during a period of transition. Thousands of East German enterprises could not survive without...
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