Socialist self-management

[2] Based on market-based allocation, social ownership of the means of production and self-management within firms, this system substituted for Yugoslavia's former Soviet-type central planning.

The Soviets and their satellite states often accused Yugoslavia of Trotskyism and social democracy, charges loosely based on Tito's form of workers' self-management and the theory of associated labor (profit sharing policies and worker-owned industries initiated by him, Milovan Đilas and Edvard Kardelj in 1950).

The meeting was held shortly after Stalin accused Tito of being a nationalist and moving to the right, branding the latter's heresy Titoism.

Initially the Yugoslav communists, despite the break with Stalin, remained as hardline as before but soon began to pursue a policy of independent socialism that experimented with the self-management of workers in state-run enterprises, with decentralization and other departures from the Soviet model of a Communist state.

This resulted in a change in the party's role in society from holding a monopoly of power to being an ideological leader.