C. Hoover,
There is no logical connection between a decentralized, market economy and high unemployment so long as that economy is not a capitalist economy. Associating Titoism with high unemployment does not make a case about markets and decentralization. Titoism seems to me a form of limited Stalinism. There was no economic force for real development outside the government. Tito, as you point out, simply left some small social constructs alone because they were no particular threat to his regime. He also left the unemployed alone, again because they were no threat.
The bureaucratic, centralized economy deals with unemployment by fiat: "There is no unemployment because we say there isn't." So everybody grabs a broom, does nominal work and gets a nominal paycheck. Market discipline, applied to *that* economy forces people out in the name of efficiency. *That* economy is not *the* economy. If a new economy can find work for those souls pushed out by market discipline there is no problem. In fact, it is a better economy because it is doing more with the same number of workers. The problem is one of commerce creation.
peace