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HRVOJE VOLNER was impossible to understand that the people’s ownership has primarily a social character, not a capitalist one. That generated a tendency of destroying the competition of the local economy, at different levels of government, in order to centralize the means of production. The creators of the five-year plan called that process a conditional nationalism because there was no reaction that would give these phenomena a bourgeois-nationalist direction.” CONCLUSION In the first phase of modernization, we can follow a consolidation of landowners and liberated peasants, who, in different ways, adapted to the new situation, especially freedom, but also a state intervention that, through various taxes, forced farmers to turn goods into money. Demographic growth and insufficient resources for investment as well as exclusivity in the process of implementation of agrarian reform after the First World War was the cause of hostility between nations. Distribution had nothing to do with the quality of tillage, and the primary sector of the national economy became a category of social welfare. The colonial-capitalist sector of the national economy was included in the system of corruption, and therefore this sector of the economy became unpliable for the development of maximum capacity. The attempt to change the social structure of the population after the Second World War gave more significant results. The number of employees in agriculture, as well as demographic growth were reduced. From the the mid-60s of the last century the economic emigration to the countries of Western Europe grew. The planned economy connected the sectors of production in a national economy using the logic of education, opening workplaces, and providing social and health care. Modernization without the pluralism of political life formed society via propaganda, which led to a long-term decline of civil society, general widespread corruption, and the strengthening of ethno-nationalism as a traditional system of identification of subjects. REFERENCES ARENDT, Hannah: The Human Condition, Zagreb, August Cesarec, 1990. BEREND, Ivan T. — RANKI, Gyorgy: The European Periphery and Industrialization 1780-1914, Zagreb, Naprijed, 1996. 2% Katarina Spehnjak: Seljacki otpor politici obveznog otkupa u Hrvatskoj 1949. godine, Casopis za suvremenu povijest, 27, 1995, 209-210; Boris Kidri¢é: O nekim principijelnim pitanjima nase privrede, Sabrana dela V, Beograd, 1948, 8-14; John R. Lampe — Marvin R. Jackson: Balkan Economic History 1550-1950, 442. + 146 +
