An Outline of the Guaranteed Supply Scheme in Yugoslavia between 1948 and 1953

Abstract

The author outlines the guaranteed public supply scheme which was in force in Yugoslavia from 1948 until 1953 when it was replaced by the market based supply. The guaranteed supply scheme, which was introduced due to a rapid growth in the number of people employed in non-agrarian production, and also for obvious ideological and political purposes, was characterized by a total state monopoly of the supply. To qualify as a beneficiary of the guaranteed supply scheme, one had to be employed and socially insured by a state institution. The quantity of guaranteed goods a beneficiary was entitled to depended on the arduousness of one's work. Basic foodstuffs, industrial products, clothing and footwear were redeemed against consumer vouchers. Buying on the free market was also possible, however, at considerably higher prices. After 1951, the guaranteed supply scheme was gradually relaxed and a greater emphasis was given to free sale. In September 1951, the consumer vouchers were replaced by monetary vouchers, and by the end of 1953 all payments were made only in cash. The voucher scheme was thus finally abolished.