Yugoslavia: Half Karl & Half Groucho

Some Western visitors have remarked that Yugoslavia is a 100% Marxist country—50% Karl and 50% Groucho. With comic indecision, its economic planners have bobbed between ironhanded Communist controls and fleeting flirtations with capitalism. The results have not been happy. Yugoslavia's economy has been in almost constant chaos, punctuated by frequent crises of inflation, deflation and devaluation. Now it is in another economic bind. Unemployment is rising; the country is hard-pressed to meet a $1.3 billion foreign debt coming due this year, and Josip Broz Tito, the durable dictator, admitted recently that some factories are operating at only 40% to...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!