The 1974 Food Security Act (officially the Act for the Stabilization of Essential Goods) was a major piece of economic legislation passed by the government of Ante Brov. It established the legal framework for state intervention in the retail market and created the NaroMart (National Market) chain.
Passed during a period of global economic volatility and domestic harvest failures, the Act mandated strict price controls on staple foods and authorized the Council for Growth and Agriculture to directly distribute food to the populace. It is considered the precursor to the more aggressive nationalization policies of the 1980s, marking the transition of the Republic from a regulated market economy to the “Statist-Labor” model.
Background
The “Hunger of ‘73”
In 1973, a combination of drought in Ravna Skrad and rising fuel costs for the private trucking fleets led to a sharp spike in the price of bread and grain. In the poorer districts of the north and the industrial slums of Novi Otonik, the cost of living became unsustainable.
Reports of malnutrition and food riots in Bistrica alarmed the central government in Sinj. Ante Brov, viewing food security as a cornerstone of national stability, declared that “The Divine Republic cannot claim legitimacy if its children go hungry.”
The Merchant Crisis
Brov blamed private speculators for hoarding grain to drive up prices. At the time, agricultural distribution was controlled by a loose network of private trading houses (the precursors to Maj Holdings’ agricultural division). The government argued that the free market had failed to deliver basic necessities.
Key Provisions
The Act introduced three radical measures:
- Price Caps: The government established a “Maximum Retail Price” for flour, salt, oil, and basic textiles. Selling above this price became a criminal offense.
- Creation of NaroMart: The Act authorized the Council for Growth to establish “National Distribution Centers.” Originally intended as temporary warehouses to sell surplus stock, these evolved into the permanent NaroMart retail chain.
- Export Controls: It granted the Chancellory the power to ban the export of agricultural products if domestic stocks fell below a “Strategic Threshold.”
Parliamentary Passage
- The Coalition:
- Blue Dawn (9 seats): Voted unanimously in favor. Brov whipped his party to support the measure as a humanitarian necessity.
- Northern Power (4 seats): Leader Pavel Iric supported the bill, as his constituents in the mining districts were hardest hit by the inflation.
- Sons of Kresimir (1 seat): Tihomir Bran voted in favor, citing the religious duty of charity and the state’s role as a moral guardian.
- The Opposition:
- Civic Renewal Front (1 seat): The newly elected Mia Marija Pavlovic cast a lonely vote against the bill. In a famous dissent, she argued that price controls would destroy the incentive for farmers to grow crops, ultimately leading to shortages. She called NaroMart a “bureaucratic monopoly that will sell rotting vegetables.”
- Vjetrusa (3 seats): Leader Haret Trn opposed the bill, defending the rights of the private merchants and landowners in Dubica who stood to lose profits.
- BLF (2 seats): Abstained (Moraviski Abstentionism).
The Act passed 15–3.
| Senator | Vote |
|---|---|
| Edvard Matas (BD) | For |
| Ante Brov (BD) | For |
| Sinisa Ivic (BD) | For |
| Cvjetko Bebic (VJ) | For |
| Filip Danijel Janes (BD) | For |
| Tihomir Bran (SoK) | For |
| Pavel Iric (NP) | For |
| Ilja Brasic (NP) | For |
| Nika Radman (BD) | For |
| Ivica Grebenara (VJ) | Against |
| Miljenko Tarin (NP) | For |
| Haret Trn (VJ) | Against |
| Mia Marija Pavlovic (CRF) | Against |
| Ante Dumanovic (BD) | For |
| Veselina Jolar (BD) | For |
| Dalibor Pralinovic (NP) | For |
| Stojana Czyhlarz (BD) | For |
| Dorde Palic (BD) | For |
| Nadja Vrasch (BLF) | - |
| Stipe Seitz (BLF) | - |
Impact and Legacy
The immediate effect of the Act was the stabilization of bread prices. The first NaroMart store opened in Sinj in December 1974, followed rapidly by branches in every district capital.
- Political Success: The Act cemented Blue Dawn’s reputation as the party of the common people, contributing to Brov’s massive victory in the subsequent 1979 election.
- Economic Shift: The creation of NaroMart laid the logistical groundwork for the future. When Ljubo Sanjakorin nationalized the grain industry in 1989 to form the National Grain Trust, he simply integrated it into the existing NaroMart supply chain.
- Criticism: Modern economists and the CRF argue that the 1974 Act destroyed the independent Kresimirian merchant class, allowing Maj Holdings to eventually monopolize the remaining private sector by buying out bankrupt small traders.