Economic reforms in the East

Date of publication: September 1, 1988

Abstract:

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.

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