46th Congress of the European Regional Science Association: "Enlargement, Southern Europe and the Mediterranean", August 30th - September 3rd, 2006, Volos, Greece
The disintegration of Popular Federal Republic of Yugoslavia, in 1990, did not only mean the end of a state-country, but also the end of a rather particular political and economically system, which originated and developed in its interior. In the present paper, the regional inequalities in Former Yugoslavia are examined, as well as adopted policies for achievement of regional convergence and their results. The main factors that led the country to unequal economic growth were historical, economical, political, and demographical. The regional policies that were applied in order to eradicate, existing inequalities-divergences in the first post-war decade, consisted of government-aided investments in the less developed regions by transferring of funds and resources (donations from state-budget, interest-free loans, etc.) By presenting and examining the economic growth of the regions at the beginning and at the end of period of application of regional policies (1966 and 1990), based on the indicators used by Yugoslav government (GDP, employment and fixed capital equipment), we concluded that even though a increase in the growth rates was accomplished, the provinces of Yugoslavia did not alter their initial hierarchy in terms of regional divergence. Subsequently, the regional policies that were adopted in the period of 1966-1990, failed to achieve their objectives. The reasons that led to this failure were not only of economic nature but also a result of not taking under consideration the demographic behaviours of the less developed regions. In order to examine this, particular accent will be given in the province of Kosovo, and the issue of demographic increase (absence of measures for control of births) which resulted in the failure of regional policies to the extend that "demographic investments" absorbed the total capital directed to this region.