The Search for Legitimacy over Yugoslavia: Rudolf Bićanić and the Power of Gold

Abstract While historical narratives of the communist legitimation of power in Yugoslavia have often marginalized perspectives of lesser-known civil servants, this study highlights the crucial role of Dr. Rudolf Bićanić, a renowned Yugoslav economist. Departing from the diplomatic, foreign political, and military perspectives when investigating the Yugoslav émigré government actions, this article explores the ideas espoused, networks created, and actions performed by Bićanić across diverse transnational settings. Bićanić’s lens as a vice-governor of the Yugoslav National Bank demonstrates that the debates regarding the future social and economic policies shaped the transition process between the two Yugoslav states. Driven by a mission to enhance peasant living conditions in Yugoslavia, Bićanić embarked on a brief yet impactful governmental career from 1941 to 1945. The article posits that Bićanić’s anti-government propaganda disseminated through the United Committee of South Slavs and his financial malversations led to the transfer of economic and political legitimacy over Yugoslavia in April 1944 to the National Liberation Council. With this action, Bićanić accelerated the signing of the Tito-Šubašić agreement in June 1944, which empowered him to negotiate the post-war reconstruction aid and loans in Washington, DC, carving a unique path for Yugoslavia between socialism and capitalism.