A Break with the Old and the Beginning of Something New: Slovene Economy during the Period of Transition from Socialism to Capitalism

Abstract

The state of Slovene economy became incre- asingly worse in the second half of the 1980s. Once it became obvious that the possibilities of economic development in Slovenia were quite limited within the then existing system of government the multiparty elections of April 1990 heralded the official beginning of the period of transition. During the initial period of this extremely demanding process Slovenia had to battle recession, macroeconomic instability, and a decreased standard of living. Its economic policy focused primarily on establi- shing elements and institutions required for a successful operation of the country intent on market economy.