While Yugoslavia's standards of living has risen dramatically along with the level of education across the country, Yugoslavia has suffered from high unemployment due to a lack of suitable jobs for the increasing numbers of highly-educated citizens. The lack of employment prospects has caused hundreds of thousands to become guest workers in the West - particularly Germany - and send their remittances back home. While these remittances are helping the Yugoslav economy, they just highlight the true extent of the unemployment crisis. Another, but less prominent problem is the Yugoslavian reliance on Western electronic products due to a lack of domestic industrial capability. With the development of the 'undeveloped regions' progressing at an accelerated rate, Yugoslavia believes that some investments focusing more on the developed regions of Croatia and Slovenia are reasonable in order to help bring unemployment down across the board.

As part of this initiative to boost domestic production and reduce unemployment, 35 million dollars will be devoted to the worker-run Iskra Elektrozveze (Iskra Telecommunications) to create 8 modern factories for the production of radio sets, televisions, television receivers, and the cabling needed to hook the aforementioned pieces of technology. Television sets created in this manner will be predominantly 60% black and white televisions while the remaining 40% will be colored televisions. Overtime, the production of colored televisions will increase, eventually becoming the only type of television still in production by 1980. These factories will be erected in Sarajevo, Zagreb, Belgrade, Nis, Split, Ljubljana, Rijeka and Novi Sad.