Does public property work better in Bosnia? The Agrokomerc case

I have read that bad privatizations destroyed Bosnian industry. Agrokomerc was a good example of socialist industry.

Anyway the Agrokomerc affair exploded in 1987, during Socialism, well before any privatizations, bad or good.

The Agrokomerc Affair of 1987 was a banking scandal centered around Agrokomerc that led to political destabilization of Bosnia and Herzegovina.

In the 1980s Agrokomerc was engulfed in questionable banking deals where the corporation issued numerous high interest promissory notes without the proper financial equity. The director of the corporation Fikret Abdić lost the sense of scale as the corporation issued in excess of 1 billion[clarification needed] in fraudulent promissory notes.[2] The problem became more acute as the press reported it as the biggest economic affair in former Yugoslavia triggering the 250% inflation rate in Yugoslavia. Abdić was sent to court and process with him was an important event in late 1980s.

 

 

Is just privatization the only problem?

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