This study stems from a long association with Yugoslavia: two years at the World Bank and a further two and a half years with the International Investment Corporation for Yugoslavia S.A. in London when I was invol­ ved in the financing of joint ventures between Yugoslav and foreign enter­ prises - part of the subject matter of this study. I believe that anyone dealing with Yugoslavia has found it difficult to escape the spell of this fascinating country. There is its history, rich in struggles and achievements, its cultural heritage, the beauty of its land­ scapes and, last but not least, the character and qualities of its people. But while anyone of these features (to which others could easily be added) may have its special appeal depending on one's personal inclinations, it is undoubtedly Yugoslavia's socio-economic system that arouses universal interest. For some it represents the only system that eventually can ensure a just society, while for others its theoretical foundations are utopian and its practical implementation an incoherent muddle. The debate in the West about the merits of Yugoslav socialism will continue for a long time, and if at this stage a personal comment is called for then it must be that I have been struck by two things: modesty and courage. The Yugoslavs are surprisingly modest about the achievements oftheir system. There is no missionary zeal to export their social philosophy.