Yugoslavia: Capital Proposition

As they make clear that they are more and more ready to adopt the methods of Western capitalism, the development-minded countries of Communist Europe are actually following Yugoslavia's lead. Yugoslavia was first to slacken party control of industry, first to bow to the efficiencies of the profit system, first actively to seek competition in world markets. Now it is first in the Bloc again—this time with a hard-sell invitation to Western capital to set up shop in conjunction with state-owned Yugoslavian firms.

Under a new, precedent-breaking foreign-investment code, Western firms will be allowed to provide up to 50% of...

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