Ivana Stankovic

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Master of Science Thesis 2005/06 KTH, Stockholm On April 6, 1941, Belgrade was heavily bombed by the Luftwaffe (killing thousands of people) and Yugoslavia was invaded by German, Italian, Hungarian and Bulgarian forces. The city remained under German occupation until October 20, 1944, when it was liberated by Yugoslav Partisan forces and the Red Army. The same year it was heavily bombed, 11 times in the spring and early autumn, by the Americans and other allies. In the post-war period Belgrade grew rapidly as the capital of the renewed Yugoslavia, developing as a major industrial centre. As a result of a specific policy led by Josip Broz Tito, Belgrade became and important international, political, cultural European, sports, and economic center. Unfortunately, many unsolved national, ethnical, political, economic and other problems in the country led to disintegration of Yugoslavia in 1991, which marked the end of the longest period of peace in Balkan in the XX century. Since 1992 Belgrade has been the capital of the Federal Republic of Yugoslavia, consisting of the Republic of Serbia and the Republic of Montenegro. Belgrade was bombed by NATO aviation during the Kosovo War in 1999 which caused substantial damage. As of March 2002, Belgrade has been the capital of the newly formed State Union of Serbia and Montenegro. Belgrade has come under some form of attack some 54 times since AD 1, or every 37 years on average. This means that, statistically, every citizen of Belgrade has seen two attacks on the city in his/her life. Zoran Djindjic was the first elected mayor of Belgrade. The current mayor is Nenad Bogdanovic. 3.1.3 Population In 2002, 8116552 people lived in Serbia and Montenegro, of which 56.8% lived in urban areas. 8 Population per 1km 2 was 89. In total, there were 2712237 Pic 4 Belgrade from the Sava river households, with the average of 29.7 households per 1km 2 . According to the same statistic in Serbia and Montenegro 3.3 persons lived per household (which gives 98 people per 1km 2 ). If we compare the numbers, according to the same statistics 22 persons lived in Sweden per 1km 2 , and 479 in the Netherlands. In Serbia and Montenegro, children under the age of 7 were 13.82% of the total number of inhabitants, while children aged from 7 to 14 contributed 15.94% to the total number. As a result of Belgrade’s turbulent history, many nations live in Belgrade for centuries, and the majority of the population make Serbs (86%) of Orthodox persuasion. In total there are 24 different nationalities declared with some 50000 people not declared or unknown. 9 8 Statistical Pocket Book 2005, Statistical Office, Belgrade 2005. Document downloaded from the Official Internet site of the Statistical Office of Serbia and Montenegro: http://www.szs.sv.gov.yu/english.htm document retrieved 2005-11-22 9 Data obtained from the official Internet site of the City of Belgrade: http://www.beograd.org.yu, data retrieved 2005-11-20 Ivana Stankovic 8
Master of Science Thesis 2005/06 KTH, Stockholm According to 2002 census, there were 1.576.124 citizens in the larger-city area, and 1.273.651 citizens in the inner-city area. During the last 70 years the population has grown 6.6 times in Belgrade which made a significant impact to the city as a whole. 3.1.4 Economy in Yugoslavia after the World War II 10 From 1945 to 1950 the state controlled the economy absolutely. As in the USSR, Yugoslavia’s Communist government established economic goals through five-year plans. The first five-year plan, launched in 1947, began a program of rapid industrialization. This program emphasized heavy industry over light industry and largely neglected agriculture and consumer goods. The government attempted to collectivize farms, but the peasants resisted vigorously. In 1950 and 1951 the government formally abandoned state ownership and central planning in favor of programs known as social ownership and workers’ self-management. In the former, the government gradually transferred its control of enterprises to local communes and workers’ councils. Under the principle of self-management, the workers supposedly ran the factories, free to make their own production and marketing decisions. Profits were distributed as wages and served as the measure of the success of an enterprise. Despite appearances, however, the state still controlled the economy, having—and later sharing—the power to appoint enterprise directors and to allocate money for each enterprise. Production and consumption boomed, but state control of investment funds led to the continued creation and survival of politically favored, inefficient enterprises. By 1952 only about one-fifth of the country’s agricultural land had been collectivized, and the state ceased its effort to collectivize farms. Most farms remained or changed back to being small and privately held. Farming methods remained primitive, and farmers had no access to bank loans or other means of financing. These factors limited food production, forcing Yugoslavia to import grain and other foodstuffs. Millions of peasants migrated to cities and tried to find jobs in industries. But neither the cities nor the industries were expanding rapidly enough to house and create jobs for so many people. In 1965 the government instituted major economic reforms that ushered in a program known as market socialism. Under this program, the government surrendered control of investment funds to enterprises and to a reformed banking system. Lowered taxes allowed enterprises to keep more of their earned income instead of handing it over to the state. The government lifted price controls, and it devalued the currency, the dinar, to encourage exports. Investment priorities changed to favor consumer goods over heavy industries. Peasant farmers gained access to credits, enabling them to buy farm machinery to expand production and end the dependence on food imports. Yugoslavia lifted its restrictions on emigration, and in each year after 1965 up to a million Yugoslavs lived in Western Europe as guest workers. The earnings they sent home became increasingly important to the Yugoslav economy, contributing to a boom in private house building and small private enterprises. These enterprises contributed significantly to a flourishing tourist industry concentrated along the Adriatic coast. Along with their positive results, the reforms of 1965 led to rising unemployment, inflation, and regional differences in wealth. These negative developments led to a retreat from the principles of market socialism. In the early 1970s reforms were implemented that, in effect, created a negotiated economy based on contracts between firms. These contracts were designed to protect supply and demand (and prices) from market competition. At the same time, foreign borrowing grew rapidly. The borrowed money was intended for modernization of export-oriented industries. However, most of it was used to help pay for increasing consumption and prosperity for most Yugoslavs. In 1980, the year Tito died, a worldwide recession and foreign credit squeeze, combined with the flaws in the economic 10 Data obtained from the Internet site Encarta online: http://encarta.msn.com/encyclopedia_761567145_2/Yugoslavia.html, retrieved 2005-11-17 Ivana Stankovic 9
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Ivana Stankovic

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