This paper discusses very briefly the distinguishing features of the Yugoslav system of self-management and comments on its current problems, including the alleged conflict between economic efficiency and industrial democracy. In particular, it rejects the view that the conflict is a "trade-off" problem. This view is both misleading and unrealistic. Effciency and democracy are not always incompatible, and even if they were, are not to be traded off against each other. In any case, the Yugoslavs themselves regard self-management as the supreme goal to be achieved with, but not to be sacrificed for, maximum efficiency.