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This article provides a new synthesis on the origins of self-management in Yugoslavia on the basis of new archival research. It rejects the dominant view in the historiography that self-management arose merely as an ideological justification for the split with Stalin's USSR in 1948. Rather, it demonstrates that the introduction of workers' councils was part of an elaborate effort on the part of the Communist leadership to return to its pre-1948, proto-‘reform Communist’ strategy that was remarkably open to interaction with the world market. This is shown to have implications for understanding Yugoslavia, Eastern Europe, the Cold War and Communism.
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