Berlin wall demolition is such a historic act as the Fall of the Bastille was. Reforms in the East indicate the stalinist and dogmatic socialism breakdown, the birth of the market economy and radical change of the property relations. Bureaucratic resistance to the economic system changes is still great. Reformers in Yugoslavia and in the other socialist countries have not yet got clear vision of the new socialist and economic system. Starting with Marx's class teaching and Galbraith's new socialism, the authors of the paper points out to four points of support of every economic reform in countries in the East.
Economic reforms taking place in many Eastern countries try to break up with a dogmatic conception of the market, planning, property, securities, entrepreneurship, marketing and franchising. Many of the ideas that until recently were strongly criticized are now adapted as signposts of progress. Socialism is facing the changes of historical importance. Owing to "perestroika" the East shall be gradually opening up to the West. Many Western countries are new achieving a notable success in development of their enterprises and mutual cooperation. Prosperity of world economy depends on co-operation between East and West as well as between South and North. Yugoslav economy, which is objectively placed between East and West, tries to integrate itself into the international division of labour and gain access to the world market as best it can. Many measures are introducing new technologies via joint ventures with foreign partners. It seems that the introduction of franchising in Yugoslavia shall lead to setting up of small enterprises to be gathered together and organised by major domestic and foreign enterprises (franchisors). Seems necessary that the West offers immediate financial and business support of the effort done in the East to enable them to adopt new technologies. Franchising could prove an important link in East/West co-operation.
This paper sets out the major changes of inheres to foreign companies, i.e. the turn of the official economic policy towards a market-regulated national economy and the consequent new possibilities for cooperation. To this end new legislative avenues provide support to foreign investment in Yugoslav enterprises of importance for the production, export and acceleration of technological development, as well ensuring an improving and adjusting process needed for development of Yugoslavia and trends in the world market
Yugoslavia nowadays has a powerful textile and garments industry which is relatively evenly spread throughout her territory and which unites more than a hundred years of experience on the one hand, and energy and initiative of a young industry on the other. Recent developments in this industry have been in the function of domestic demand and exports. Domestic demand, in its turn, is determined primarily by the standard of living and structural changes in personal consumption.