In this work the author relies on scientific articles, literature and source work, and with them he analyses the period from 1947. to 1951., which is interesting to us because it mainly analyses the five year plan of economy which had a large impact on the economy of Jugoslavija. Except for the interesting view on the economic politics and economy, the specific period is marked by the events which influenced the international relations and changes in the population structure. Great changes happened even in the village, and had great consequences in the lives of the villagers who had to adapt to the new economic system. The clash with the USSR, which happened on the Information bureau level in 1948. marks a great divide on the international political scene, but also on the economical level. Ambitious plan which aimed to achieve the goal of advancment in production as well as to multipe increase in production and labor productivity showed to be to big of a step, especially if we consider that the mentioned plan started two years after the end of World war II. War left in its wake human casualties, economic and infrastructural damage. The lack of the educated people, workers, factories and communication links were the problems which the authority tried to solve during the five year plan. In the intention that the population, and the youth were re-educated as best as possible in the principles of the new regime, and to use youth as best as possible, the authority sent the youth to the work actions. Except of the industry, great amount of changes happened on the village. The agrarian reform and the proces of the colonisation changed the picture of the village, both ecnomically and socially. During the transformation of the village, new forms of production are introduced, the collectives know as the peasant labour cooperatives. The divide with the USSR on the ideological basis, made the authority substantiate its rule, especially in the economic sector. Because of that workers 'self-management and workers' councils were introduced in the companies.