Money from the People, for the People

This study explores the historical institution of self-contributions (samodoprinos) in socialist Yugoslavia as a participatory financing mechanism for local development. Instituted in 1946 and later formalized through referenda, self-contributions allowed citizens to voluntarily impose financial levies on themselves to fund infrastructure, public services, and community development. Unlike conventional taxation, self-contributions were locally determined, time-bound, and targeted toward specific projects, thus fostering direct democratic participation in fiscal decision-making. By the 1980s, they accounted for a significant share of local revenues across Yugoslavia, supporting projects ranging from electrification and road construction to ecological initiatives and Olympic infrastructure. Despite their importance, self-contributions fell into disuse following the dissolution of Yugoslavia, even though they remain legally recognized in some successor states.

In contemporary contexts, characterized by neoliberal fiscal austerity, declining public investment, and growing demands for participatory governance, self-contributions offer valuable lessons for reimagining democratic public finance. The study argues that modern adaptations of self-contributions could enhance citizen engagement, increase transparency, and mobilize resources for critical infrastructure and social services, particularly in crisis response and ecological transitions. However, potential challenges include public distrust in government institutions, the politicization of fiscal policy, and resistance to new financial obligations. The paper concludes by proposing design principles for contemporary self-contribution mechanisms, emphasizing participatory governance, progressive contribution structures, and robust accountability measures to mitigate risks and maximize democratic legitimacy. In doing so, it calls for a reassessment of historical fiscal innovations in addressing present and future policy challenges.