834707320

834707320



6.    The reproductive ability of enterprises is falling. The share of economie organizations in financing total investment in fixed Capital is 31.2% in 1967 compared to 39% in 1956 and 1966. Repayment of loans in 1968 amounts to 111% of allocations to funds, and accord-

ingly net investments under the direct control of enterprises remained negative.

7.    Indebtedness of the economy is increasing. Last year (1968) morę than a third of enterprises were not in a condition to cover their ob-ligations regularly. Since then indebtedness has increased by 45%, and accounts receivable amount to 74 billion dinars, which is twó times morę than the amount of short term bank credits. That means devastation of a commodity-money economy.

8.    Capacities are used less than before the reform, the generał ef-ficiency of investment is lower, and the economy is suffering enorm-ous losses. Because of the mistaken economie policy in one year alone - the monetary restrictions in 1966 without corresponding measures of fiscal and other policies, because of which the depression was deep-ened and for the first time sińce the Cominform soon led to an abso-lute reduction of production - the economy suffered losses of the order of magnitude of 11% of social product.

9.    Growth has been slowing down sińce 1960, and from 1965 the restructuring of the economy is also perceptibly slowed.

10.    Unemployment is increasing to alarming volumes even this year in the wave of the economie upswing. On the average this year (1969) there were 340,000 persons seeking employment. To that should be added the estimated number (exact data are unknown) of 400,000 persons at work abroad.

11.    The proclaimed morę rapid development of the undeveloped regions lately is not being realized and the gap between the developed and the undeveloped regions is increasing.

12.    The country has no personnel and scientific policy. It is well known that qualified personnel and scientific research represent the basie levers of long-run economie development in contemporary con-ditions. Qualified personnel are leaving the country. Post-graduate specialization is not institutionally resolved and evolves haphazardly and on a level far below contemporary standards. A program of scientific research does not exist, scientific work is not institutionally resolved and lags drastically behind the needs of the country; scientific institutions are scattered, and top personnel leave the country.

13.    The five year plan will not be achieved. The forecasts and objectives presented in annual parliamentary resolutions on develop-ment are shown to be in error by tens and even hundreds of percent. In the last decade three medium term plans will remain uncomplete (1961-1965, 1963-1970, 1965-1970). There is no guarantee whatever

that the plan which is now being prepared will expenence a diiterent fate.ł>

>• It is known that in the meantime it was necessary to postpone adoption of a new plan.

539



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