From For a Lasting Peace, for a People’s Democracy!
No. 41 (153), October 12, 1951.
Tito Fascist Clique “Legalises” Capitalism in Yugoslavia
Member, Political Bureau,
Central Committee, Rumanian Workers’ Party
If earlier, the Tito gang of assassins and spies went out of their way
to camouflage the restoration of capitalism in Yugoslavia, at present
this is being done quite openly. At the end of August, the
Tito-Rankovic fascist clique, which usurped power in the Party and in
the State, announced “new economic law” which signified nothing more
than a complete transition to open restoration of capitalism, open
transfer of Yugoslavia’s national riches to the American and British
imperialists, and the complete switching of the economy onto a war
Publication of the “new economic laws” was accompanied by a fiercer
criminal campaign of anti-Soviet falsehoods and by intensified
provocations on the borders of Albania, Bulgaria, Rumania and Hungary.
In addition, this act was preceded by visit to Yugoslavia of the arch
warmongers – Harriman, General Collins, Admiral Edelsten, and other
Taking the Hitler fascist regime as its model, the Tito clique borrowed
– on orders from its American masters – not only the methods of Hitler
and Goering in fascising the economy, but also their economic and
political “theories”. The Hitler propaganda arsenal is the source of
Titoite wisdom. They simply alter the terminology, substituting, for
example, “national socialism”, the praises of which the Hitlerites had
sung, with “Yugoslav national socialism”, etc.
Thus, the American-British imperialist fish the Hitlerite “theories”
from the cess-pool of history and hand them over to their Titoite
As early as 1949, the Information Bureau of Communist and Workers’
Parties pointed out in its Resolution the capitalist essence of State
property in Yugoslavia. “The State sector in the economy of Yugoslavia
has ceased to be people’s property, since State power is in the hands
of enemies of the people”. However, State property in industrial
enterprises, mines and banks, even though capitalist, was, to a certain
extent, an obstacle to its “free” seizure by the foreign imperialists,
to the complete restoration of the Yugoslav bourgeoisie. So in June
1950, the Tito clique began to abolish the State sector, transferring
enterprises to “workers’ councils”, which, in fact, are administrative
councils headed by the former capitalist employers. For example, the
coal industry is headed by former owners of the Varsca Ciuka and Resava
Bare mines. The directors of the enterprises enjoy fantastic incomes in
the form of salaries alone, exceeding 30-40 and even 50 times the
average wage received by workers – a feature characteristic only of
capitalist enterprises. Thus, by means of its “economic” measures, the
Tito clique is also creating a section of new Yugoslav bourgeoisie.
This conversion of State property into private property was described
by the Titoite as the introduction of “people’s property”.
The transfer of the enterprises to the capitalists was hailed by the
imperialist press with obvious satisfaction. The American bourgeois
journal, “United States News and World Report”, for example, stated
that bankers had been invited to act as advisers to bring order into
accounting in the enterprises, and to establish whether they were
operating profitably or not.
After capitalist trading had been officially introduced in January
1951, and after the dissolution in April 1951 of the so-called State
Planning Commission and all planning organs in the Republics, the
Titoites produced a whole series of draft laws about the “new system in
planning and finance” which signified the open restoration of
capitalism in Yugoslavia, accompanied by organisational forms,
“theoretical” terminology and argumentation taken from Hitler’s
so-called Four-Year economic plan.
Capitalist exploitation of the working class in its most brutal form,
that of compulsory slave labour disguised as “planned leadership of the
national economy”, is now being legalised in Yugoslavia. Article 1 of
the “new law” relates to two types of plans for Yugoslavia: “social
plans” of the Yugoslav State, and “independent plans” of the economic
organisations and federations. The social plans foresee only “basic
proportions of minimum exploitation of the production capacity of the
enterprises, capital investments for construction, and the average norm
of the accumulation fund and social funds”. These fictitious plans will
be submitted to the capitalists in the administrative councils of the
enterprises and economic federations for their approval. As for the
“independent plans” of the enterprises, they will be prepared by the
capitalist owners themselves, regardless of general planning. In
drafting these plans, conditions on the capitalist market and the
demands of the U.S.-British imperialists alone, are taken into account.
It is quite clear that the introduction of these “social plans” and
“independent plans” is nothing but out-and-out demagogy and crude
camouflage for the restoration of capitalism in Yugoslavia. Basically,
these plans are but a new edition of the well-known “Deutsches
Wirtschaftsrecht” (German Economic Law) which declared that the Hitler
State allowed the “co-existence of State management and free
enterprises in the most varied interlacing”.
Titoite legislation is not confined to “independent plans for the
enterprises”, drawn up by the owners of enterprises. It also legalises
combinations of owners according to industry and territory in the guise
of economic federations. These “economic federations”, or “producers’
federations”, as they are also called by the Titoites, enjoy the right
to approve “social plans”. Thus, the entire control of the enterprises
passes to the capitalist federations. This also signifies that the
so-called State social plan will actually be approved first by the
foreign imperialists who play the leading part in the “economic
federations” as owners of the mines and basic enterprises in
Yugoslavia. As is known, the U.S. trusts, “Anaconda Copper and Mining”,
“Continental Supply Corporations”, “Mackenzie Engineering Co.” and
“Bethlehem Steel”, are now the masters of the basic natural resources
and of industry in Yugoslavia.
The “new economic laws” end the State foreign trade monopoly in
Yugoslavia. Enterprises have the right freely to export and import, to
possess foreign currency and to perform financial operations with
abroad, particularly through the “Export and Import Bank” established
by the Americans. The rate of the Yugoslav dinars was fixed in
accordance with the present foreign currency agreement, and this rate,
of course, is extremely unstable. Income derived from the turnover with
foreign countries is subjected to taxation only if not taxed abroad.
Hence, the essence of these “economic laws” is that the imperialists
are given a free in plundering Yugoslavia and are insured by most
extensive conditions for colonial exploitation.
Simultaneously with the “new planning”, there were introduces also the
“new system of piece-work payment” and a “new wage system”, both of
which mean nothing more than the introduction of most unbridled methods
of exploitation of the working people, and abolition of the minimum
labour protection measures. According to the “new wage system”, two
types of wages are introduced: “variable” – depending on the
“profitability” of the enterprises, - and “permanent”. The nature of
the so-called permanent wage is evident from the respective law: “If an
enterprise does not ensure the fixed permanent wage fund and does not
possess reserve funds, workers and employees will get their permanent
wage in proportion to the available wage fund”. In other words, the
workers permanent wage, and more so, his “variable” wage, is fixed at
the will of the capitalist “councils” running the enterprises. To
ensure the interests of capitalist bosses fully, the Titoite law says
that prior to distribution of the variable wage fund, they must set
aside from these means an obligatory capital investments fund. And the
obligatory capital investments fund is fixed by the capitalist
Thus, the predatory capitalist “regulations” of the Yugoslav
enterprises are legalised. Under the cynical slogan: “Every one works
as much as he wants”, the eight-hour day was abolished, a 12-14-16 –
hours working day introduced, and, simultaneously, norms were raised
and wages reduced. For example, at the Bevare construction site, the
working day ranges from 11 to 13 hours; in the Place port, 14 hours;
Rijeka dockers had their payment for handling a ton of coal cut from
43.5 to 38.5 dinars. In the lumber industry in Herzegovina, norms were
increased by 70 per cent, in Jirinitsa lumber enterprise, 50 per cent.
Parallel with the open restoration capitalism in the towns, the Tito
clique is hastily implanting kulaks in agriculture with a view to
strengthening its class positions in the countryside. Even Titoite
statistics show that each year 10 per cent of the working peasant
household fall into the hands of kulaks; that the kulaks (6.25 per cent
of rural population) own 50 per cent of the land.
The “new laws” place the trade network in the countryside wholly at the
disposal of the kulaks. These laws envisage supplies of credits only
for “profitable co-operatives”, i.e., for kulak ones. The taxes paid by
poor peasants are mounting.
Under the pretext that it is impossible to ensure food for the urban
workers, the Tito clique forces the latter to return to the
countryside. For this purpose a special law – a replica of the Hitler
“Erbhof” 1933 law – was issued. Over 500 enterprises were closed in
Yugoslavia following the introduction of the “unprofitability” laws.
According to the bourgeois journal, “Internationale Wirtschaft”, as a
result of these laws, a “flow of the population to the agricultural
regions” is anticipated. Thus, the object of all these “laws” of the
Tito-Rankovic gang is also to lower wages, to expand the army of
unemployed and ensure cheap manpower for the exploiters.
In an attempt to give a “theoretical” grounding to these laws, the Tito
clique strongly combines its own petty “theoretical efforts” with the
Hitlerite economic ravings. For example, the anarchic laws of
capitalist economy are declared by Kidric, “Oberfuhrer of the planned
economy”, to be immutable and unalterable.
Using Hitlerite terminology, this paltry slave of the monopolists
places the ruthless capitalist exploitation among the “immutable
economic laws”; he declares production and distribution to be “the
life-stream of the law of value”, asserting that a “larger part of the
surplus labour” should be assimilated by enterprises and economic
federations themselves; in other words, appropriated by the capitalists.
Kidric, the new fascist “theoretician” also resorts to the theories of
Right-wing Socialists, describing imperialism as “developed
capitalism”, and asserting that the last phase of capitalism
constitutes the first phase of Socialism. The Titoites deny the
existence of classes in fascist Yugoslavia. Using the terminology of
Hitler and Mussolini they seek to prove that in Yugoslavia there is no
working class and no capitalists, no working peasants and kulaks, no
exploited and exploiters, only “direct producers”.
The introduction of the capitalist economic “system” in Yugoslavia was
enthusiastically welcomed by American and British capitalists. Wall
Street and City magnates acknowledge with satisfaction that Tito
Yugoslavia is a place for “profitable and safe capital investments”.
Not without reason did the “Economist”, organ of the leading financial
circles in Britain, comment after publication of the new Tito “laws”
that the theory on which the proposals were based could be accepted
with satisfaction in the West, that the new system was a genuine
achievement, that its author deserved the attention and full respect of
the Western democracies, etc.
The establishment of the Hitler “order” in Yugoslavia’s economy is
bound up with the continued militarisation of the country. As was the
case at one time in Hitler Germany, so now in Yugoslavia, the “new,
planned economy” provides, above all, for building strategic roads and
military airfields for rearmaments, conversion of industry to war
production, and transforming the State budget into a war budget.
The open restoration of capitalism, militarisation of the economy and
its subordination to the foreign imperialists, resulted in a
catastrophic fall in the standard of living of the working people in
Yugoslavia. The Titoites restored not only capitalist exploitation in
Yugoslavia; following the example of the Hitlerites, they resurrected
feudal and even slave forms of exploitation. Four hundred and fifty
thousand people were sent for compulsory labour to the mines in Bosnia,
Slovenia and Croatia. About two million peasants were mobilised for
forced labour. The Titoite gangsters stop at nothing. In Stip, youth
found in the street were press-ganged by the Titoites for work on the
Banja-Luca-Doboi Railway. In the village of Riejana, dozens of peasant
houses were surrounded and the young men and women rounded-up and sent
to compulsory labour.
Yugoslav workers get a scanty wage, inadequate for minimum
requirements. The monthly wage averages 2,500-3,000 dinars. In
Montenegro, for instance, building workers get 1,400 dinars a month, at
a time when a kilogram of fat costs 800 dinars; rent, which was
increased 30 per cent in 1950, recently soared another 30 per cent; the
price of salt, matches, tobacco and kerosene rose 200 per cent. A
system of fining and deducting wages has been legalised in the
enterprises. For example, at the Bogovina Mine, failure to fulfil the
norm is punished by deducting 50 per cent of the worker’s wages; at the
Banovic mines, three days wages are deducted for a day’s absence from
work; in Sibenic port, only 6 of the 8 working hours are paid. By these
methods a sum of 3.3 million dinars was deducted during first six
months of 1951 at the Kreka mines, and 2.9 million dinars at the
The “new economic laws” are a heavy burden on the shoulders of the
Yugoslav working people. The price of meat jumped threefold recently.
The price of bread, sugar, maize and potatoes is rising rapidly, it
soared in 1950 from 200 to 900 per cent. Although there is a scarcity
of food, the Titoites are exporting nearly a million tons of wheat and
maize to Western Germany; foodstuffs to the total of 50 million francs
were exported to France. Yugoslav sugar is exported to Franco Spain at
a price almost ten times lower than that charged on the home market.
The treacherous policy of the Belgrade fascist gang evokes the wrath
and hatred of the Yugoslav people. The Yugoslav proletariat is acting
ever more resolutely against the Tito regime. This is evident from
numerous facts. For example, at the Jelsingrad steel plant engaged on
war production, output dropped by 40 per cent, and at the Army footwear
factory in Banja Luca, thousands of pairs of boots were defective. The
plan for ore mining at the Bor mines has not been fulfilled for a
number of years; in the Kreka coal basin, the workers brought work at
30 big mines to a standstill. Output of bauxites at the Dinas mines is
40 per cent short of plan. Strikes and absenteeism are widespread forms
of struggle used by the working class. Every day tens of thousands of
workers fail to report for work; ten thousand of the eleven thousand
workers sent to forced labour in the Trepca mines absconded. Sabotage
in transport is on the increase: in July, a shipment of iron-ore for
Austria failed to reach its destination because 260 of the 300 cars
were damaged. At the Ljubljana goods station, workers set fire to a
warehouse stocked with railway materials; at Doboi Station, a depot
containing military equipment was set on fire.
Together with the working class, Yugoslav peasants are more and more
vigorously opposing the Tito regime. In the Banja Luca region, the
Titoites collected a mere one per cent of the planned State quotas.
Peasants react to the terror with armed struggle, as was the case in
Cordun, Bania, Cazin, and recently in Topliza and Doboi. The other day
new peasant disturbances were reported from Croatia.
The Tito gang uses force in its attempts to suppress the growing
discontent of the working people. Nearly 250,000 workers, peasants and
intellectuals – Yugoslav patriots – have been incarcerated in prisons
and concentration camps. More and more often the Titoites send troops
to suppress the working people’s resistance. But the workers and
peasants in uniform hate the fascist Tito clique.
The “new economic laws” reveal the internal rottenness of the Tito
fascist regime; they usher in the reign of complete anarchy in the
economy and head it towards bankruptcy. The “new laws” will inevitably
bring Yugoslavia to economic and political crisis from which there is
only one outlet: overthrow of the fascist dictatorship of the Tito gang
and the liberation of Yugoslavia from bondage to the U.S.-British
From the flames of the heroic struggle waged by the Yugoslav working
people against the Titoites, new cadres of tempered fighters and
leaders are rising, cadres enriched with the experience of underground
struggle and imbued with the spirit of proletarian internationalism.
Under the leadership of the re-created Communist Party of Yugoslavia,
and under the banner of proletarian internationalism, under the banner
of Leninism, the working people of Yugoslavia will rout the Tito clique
and return the country to the family of the peoples building Socialism.
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