Jugoslavia’s New Course

Press, Volume CVI, Issue 31119, 23 July 1966, Page 14

Jugoslavia’s New Course

President Tito’s dismissal of his Vice-President, Mr Aleksandar Rankovic, and the chiefs of Jugoslavia’s security service goes deeper than the usual struggles for power in Communist hierarchies. The dismissals are striking evidence that the liberal forces in Jugoslavia have won a major, and probably decisive, victory in their plans to put to the test the Communist theory on the ultimate withering away of the State. This is more than a mere economic readjustment. The reforms begun a year ago went a long way towards decentralising the economy and demonstrated that Jugoslavia may have found a workable middle course between Western capitalism and the State-run economies of the East. The pioneer worker-managed enterprises have been given far greater freedom of action, even so far as concluding partnerships with Western investors. Profit has been sensibly recognised as a strong motive for enterprise and' efficiency. Private businesses and farms have been encouraged and recognised as essential parts of the national economy. As a result there is an air of vitality and well-being about the booming industrial centres, the farms, and the villages.

But decentralisation of the economy has thrown heavy strains on the highly-centralised political power structure of Jugoslavia. President Tito concluded that the League of Communists should no longer be directly involved in the day-to-day administration of the country, from the small farming commune right up to the federal government. He sees the party, in the words of the “ Economist ”, as “ a “ kind of ideological mentor which from the sidelines “ will govemlhe various executive and representative “ bodies along the correct path. It will govern the “ country by remote control, not direct action; by “ persuasion, not coercion There is no intention of establishing a Western political system with an organised opposition; but the idea of political as well as economic decentralisation has been strongly opposed by the conservative section of the party. Last month an investigating commission found that the opposition to President Tito’s innovations over many years—including opposition to Jugoslavia’s break with Stalinism 18 years ago—had close links with the security service Mr Rankovic ran for most of his postwar career. By a variety of underhand methods, the commission said, the security service sabotaged the self-management and other reforms, built up a factional group of “ dogmatists ” within the party, and drove a wedge between the north-west and south-east of Jugoslavia. The appointment of Mr Koca Popovic, the son of a millionaire and former Foreign Secretary, as Vice-President will be much to heal any rift the conservatives may have opened. Serbs and Croats, as well as Slovenes and Macedonians, are well pleased with the choice.

This is the second time President Tito has dealt harshly with a close colleague. Mr Milovan Djilas is still in prison because he wanted to go too far in doing away with the Communist system in Jugoslavia. Mr Rankovic has been dismissed because of his opposition to change. The path between these extremes is a narrow one, but President Tito, and Jugoslavia, have trodden uncharted ways since the start of their liberation struggle against the Germans 25 years ago. The experiment will be closely watched by both East and West.