In the first political analysis of unemployment in a socialist country, Susan Woodward argues that the bloody conflicts that are destroying Yugoslavia stem not so much from ancient ethnic hatreds as from the political and social divisions created by a failed socialist program to prevent capitalist joblessness. Under Communism the concept of socialist unemployment was considered an oxymoron; when it appeared in postwar Yugoslavia, it was dismissed as illusory or as a transitory consequence of Yugoslavia'sunorthodox experiments with worker-managed firms. In Woodward's view, however, it was only a matter of time before countries in the former Soviet bloc caught up with Yugoslavia, confronting the same unintended consequences of economic reforms required tobring socialist states into the world economy. By 1985, Yugoslavia's unemployment rate had risen to 15 percent. How was it that a labor-oriented government managed to tolerate so clear a violation of the socialist commitment to full...

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