Economic Destabilization Of Yugoslavia In The 1980's

In the 1980’s The International Monetary Fund and the World Bank provided loans to Yugoslavian nations in an effort to aide U.S. Policy in destabilizing the economic standing and starting a civil war in an attempt to remove a communist regime from power. This directly resulted in the breaking off of Balkan nations from Yugoslavia. The United States in the late 1970’s started writing policies in an attempt to create an economic destabilization in the government amongst its regions in their campaign against communist nations. As this ultimately began to show success, the IMF issued out loans to help “repair” their now troubled economy. These loans had conditions of restructure tied to them, which ultimately shot the control communist economy into disarray. “When the first phase of macroeconomics reform started, industrial growth began its seven-year decline”

This tied into inflation and wages being frozen by employers and the government. The restructure essentially killed the economy of Yugoslavia. In Kosovo, one of the poorest regions of Yugoslavia, this started a racial/ethnic war between the people leading to government jobs booting the minority workers out entirely. By the early 90’s the nations of Croatia, Slovenia, and Macedonia declared their own independence from Yugoslavia, this all beginning after the World Bank began to oversee National Bank Shutdowns. The heavy debt being incurred by World Bank backed programs is leaving Kosovo in an undesirable spot, as they are going to be funding the repayment through “dirty money” brought in by illicit trade activities. All while the World Bank is loaning them money to start regulation processes and supporting new institutions in economics, health, and government assets. Most state owned assets are being sold off to foreign countries in an effort to stabilize their inconsolable