The process of capitalist restoration in Serbia has been brutal. Hundreds of thousands of workers in the old industries have lost their jobs. The old social buffers provided by the planned economy have been dismantled. In this atmosphere a sombre mood dominates the working class. The only outlet the ruling class can offer is to keep whipping up nationalist sentiment.

This article was sent to us by Nikola Vukobratović, who is the Chairman of the Socialist Youth of Croatia, the youth organisation of the Socialist Workers' Party of Croatia. Since most of our readers will not be familiar with the corruption scandals mentioned in the article, we provide here a short introduction.

The collapse of the former Yugoslavia had led to a swathe of privatisations, cuts in social spending and a systematic dismantling of all the gains of the past. But one event back on November revealed that below the surface a new situation is brewing. Suddenly in reaction to worsening conditions, the imposition and increase in fees and so on, the students in one Faculty occupied the university building in an exemplary manner.

We have received this article from the President of the Workers' Communist Party of Bosnia and Herzegovina. Although we may not agree with every point in it, it gives a very good idea of the totally negative effects of the break up of the former Yugoslavia on the living conditions of workers on both sides of the divide. But there are signs that the class struggle is simmering below the surface.

The break-up of the former Yugoslav Federation led to an unmitigated disaster for the workers of all the republics that emerged from the debris. This article shows how the Croatian economy entered a long period of depression, with very high levels of unemployment. Now a certain stabilisation has been achieved but only at the cost of accumulating a huge foreign debt.

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