THE ORGANIZATION AND WORK OF PEOPLE'S COUNCILS IN YUGOSLAVIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000700070298-3
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 12
• Document Creation Date: December 22, 2016
• Document Release Date: August 19, 2011
• Sequence Number: 298
• Publication Date: July 15, 1952
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/08/19: CIA-RDP80-00809A000700070298-3
CLASSIFICATION RESTRICTED
CENTRAL I O I ~ REPORT
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
Lun - Tull 1951
DATE
PUBLISHEn
HOW
PUBLISHED f thly periodical
WHERE
PUBLISHED Belgrade
COUNTRY Yugoslavia
SUBJECT Economic - Organization
Political - Administrative
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DATE OF
INFORMATION 1951
SUPPLEMENT TO
REPORT NO.
THE ORGANIZATION AND WORK OF PEOPLE'S COUNCILS IN YUGOSLAVIA
The present organization of the administrative apparatus of the srez
people's councils is based mainly on principles that were formulated early
in 1948. The basic principle of this organization was the division of councils
into commissions, headed by a commissioner, who was also a member of the execu-
tive council. Since then, the changes that have taken place in the organization
of the econospr, in health, education, and social care in Yugoslavia, besides
the changes that have taken place in the commissions themselves, have made it
necessary to re-study the organization of local administration and its relation
to the economy now being administered by producers and to the social services
which are being transferred to the administration of the state agencies.
Further, it has become necessary tc. study the personnel structure in the
administrative apparatus of the people's councils and find suitable measures
for professional development of personnel.
Therefore, at the beginning of April 1951, the Council for Legislation
and Development of the People's Authority sent all federal ministries, republic
councils for legislation and development of the people's authority, scientific
and other establishments, and public and scientific workers. the following
proposals for changes in the organization and work of people's councils for
their study. The federal government is to issue corresponding recommendations
and propose eventual legislative and other measures based on the results of
this study.
Organization of Local Economy
The organizational development of the economy as a whole is directed toward
abolishing differences between enterprises of local, republic, and federal
significance. In the future, the relation of people's councils to enterprises
is to be the same whether ruterprises are large or small. The economic basis
for autonomy in people's councils is to be based on designated rights to the
accumulation fp-rofit7 of all enterprises in their area and the right to dis-
pose of this accumulation in improving the living standard of the inhabitants.
The only difference between local and republic enterprises is to consist.. of
local enterprises being organized into local associations instead of republic
NAVY NSRB
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aseociatior?. of producers, .'he people's councils will probably have some plan-
ning and supervisory rights over these local associations, depending on methods
of planning.
As long as the economy is to be based on the production of consumers'
goods, the economic independence of enterprises and the rights of work collectives
imist be atreagthened, so that within the framework of the law and under the
supervision of state agencies, they may handle more independently the property
entrusted to them to administer, marking it possible for them to enter ivto
economic relations based on production of consumers' goods and to pay a part of
the accualation, as clearly determined by law, for local and general social
needs.
Accordingly, the development of associations is not. to militate against
the 4ic.eFen?,9ence of enterprises or to make enterprises work under the manage-
ment of associations. Economic associations will have c.ertain rights toward
enterprises, such as the right tc colle:t a part of the accumulation for further
investment, b_t their basic funt.ion will be to solve common problems on eco-
nomic development, help enterprises to their economic connections without in-
fringing or their independence, propose the enactment of general measures and
economic plans by state agencies, and make requests of state agencies in the
name of associate,, enterprises regarding the distribution of the accumulation.
Yugoslavia is no` yet in a poeltitc, to organize the economy completely on
these principles, bp--a-,se cooditicrs are sct yet right. The new financial
system most first go, into effect and funttioo efficiently, the administrative
management of the a or.;my m'.;cut `e _,gaiiated, the _ew system of trade must be
strengthened, and the present system of guaranteed supplies trust be eliminated.
However, the local economy ar.d its relatlon to economic associations must be
reorganized to enable the grad-al realization of the principles mentioned above
in the following manner?.
I. Transfer the adminietrattoz of local enterprises to producers and their
organizations and enact correspond:r.c leg latcons,
2. Estatlish economic associations where favorable economic conditions
exist, but refrain from forcing their establishment where such conditions do
not exist,
3. Strengthen the operat:o al independence of enterprises.
4. Enact reg.lat:ens regarding the nights cf local agencies with respect
to federal and republic enterprises, r=l'eeially eou:.erning finances.
5. Abol;sh the operational management of the economy by the administrative
apparat ns .
On the basis of these principles, the various branches of economy in a srez
would be organized as follows:
1 Local ;municipal, srez, and city] enterprises, except for those that
can join the republic economic association., would be united in a directorate
of local industrial and artisans' enterprises while iL small srezes, a joint
industrial and artisans' enterprise of plant,,, would be established. The di-
rectorate would take are of cap;t_al c.,nstr~ct,ic,z, iccressing activities, etc.,
thus eliminating the necuasity for the administrative apparatus to do such work.
In case a joint enterprise of plants is established, the rights of each plant
would be regulated,
;. I
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a. Srez and city state stores to be established in cities, large
places, crossroads, and other places,.
c. Stores (not necessarily in every village) for general agricultural
cooperatives.
d. Stores established by farm work cooperatives for their members.
e. Srez crop-purchase enterprises.
f. Enterprises for scrap trade.
g. Commercial enterprises for disabled persons,
Instead of uniting commercial enterprises into directorates, they could
be united into joint enterprises ,;cartels) for joint economic activity.
General agricultural cooperatives and SRZ (farm work cooperatives)
would also participate in ccmerlie.
Commercial organizations c7.-1d continue in some srezee. For some
time, their functions would be to distrlhute gu?rau*eed supply items and some
items in short supply; to serve an middlemen procu ing merchandise, par-
ticularly goods sold in small quantitles; and to establish direct connections
wiah industry and individual enterprises wherever possible,
Agencies of the state administration would establish the plan for
commerce in goods, plan new investments. plan the commercial network, regula,.:j
or approve pri?ies, perform commercial inspe-tion, supervise guaranteed supplies
and fulfillment of the plan, supervise finances, and regulate relations toward
employees and citizens,
3. Crop-purchase organizations w,)ult to the Grain Foundation and its bases
and warehouses, local crop-purchase enterpr,