Abstract: In mid-1965, the Socialist Federal Republic of Yugoslavia undertook an extensive economic reform to promote deeper integration into the global economy. One of the reform’s objectives was to enhance the competitiveness of Yugoslav enterprises on the international market and to foster the establishment of greater foreign business relations. Prior to the practical implementation of these reforms, the SFRY developed an economic-diplomatic strategy that led to numerous participations in international economic fairs. Based on unpublished archival materials and relevant historiographic literature, this paper examines Yugoslavia’s presence at international fairs held in Budapest, Gothenburg, Hanover, Kampala, Leipzig, Milan, Paris, and Utrecht.

Keywords: Socialist Federal Republic of Yugoslavia, 1965, economic reform, international trade fairs

Summary

As the Socialist Federal Republic of Yugoslavia became more involved in international trade, conditions would be created for the market, i.e. the law of supply and demand, to determine the prices of goods and services. Communist Yugoslavia struggled with foreign trade imbalances in the beginning of the 1960s. These economic problems had a major impact on domestic political and economic situation. That is why the most complete economic reform was initiated in 1965, with the aim of neutralizing microeconomic problems and including SFRY more extensively into international exchange of goods and services. To decrease import and increase export, the reform included devaluation of the dinar and a reduction in tariff protection. In foreign trade relations, SFRY was mostly operating at a loss. The reason was in the fact that Yugoslavian export focused mostly on raw materials and agricultural produce, while the import consisted of industrial equipment. The reform was meant to increase the share of industrial goods in the overall structure of Yugoslavian export. These plans corresponded with economic and diplomatic initiative which started early in 1965. For the purpose of promoting Yugoslavian producers, exporters and tourism, the Socialist Federal Republic of Yugoslavia participated in numerous international trade fairs during 1965. Apart from successful presentation of the competitiveness of Yugoslavian products and services, the participation in international trade fairs was to help establish good relations within business circles of countries around the world.