Development and Underdevelopment in the History of Economic Thought

THE IDEAS OF VELIZAR JANKOVIĆ ON FINANCIAL ASSISTANCE FOR AGRICULTURE OF THE KINGDOM OF SCS AFTER THE GREAT WAR

Gnjatović Dragana, University of Kragujevac, Faculty of Hotel Management and Tourism in Vrnjačka Banja

The paper analyzes the ideas of Velizar Janković, Minister of Agriculture and Water in the Kingdom of Serbs, Croats and Slovenes (SCS), on the need to secure cheap agricultural loans for farmers. He laid out these ideas in 1920, in the Project of establishing a "state agricultural bank". Janković's ideas had a particular specific weight immediately after the Great War. His Project got an approval in the Parliament, but its implementation had encountered a number of obstacles. The aim of the paper is to examine why the Agricultural Development Bank Project had not been realized until 1929, when the Privileged Agrarian Bank was established. The reasons for this were brilliantly explained by Janković himself. He based his explanation on the appreciaton of differences of economic and legal nature in certain parts of the enlarged State. His comparative analysis of economic and legal circumstances in the areas of inherited Serbian and Austro-Hungarian legislation had shown that a developed system of banking and cooperative institutions that provided farmers with cheap credit existed only within the scope of the Austro-Hungarian legislation. At the same time, farmers were left to themselves in the areas of validity of the Serbian laws, the areas that were badly damaged in the Balkan Wars and the Great War. Those farmers were no longer even in possession of loans from agricultural credit cooperatives. The war devastation ravaged the villages and interrupted the work of credit cooperatives. The gap was also widened with the inherited differences in legal systems. The so-called peasant laws of the Kingdom of Serbia were an impediment to the development of agricultural credit, unlike Austrian and Hungarian legislation that met the financing needs of agricultural production.

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Keywords: Velizar Janković, agricultural credit, agricultural development bank, the Kingdom of SCS