Croatia - Country Economic Memorandum : A Strategy for Growth through European Integration, Volume 2. Main Report

For Croatia, the challenge is to create conditions that will attract investment and produce growth. These conditions can broadly be categorized as (a) stable, progressive and predictable laws and institutions; (b) efficient labor and financial markets; (c) macroeconomic and financial stability; (d) social and environmental sustainability; (e) effective integration into the European infrastructure networks ensuring competitive cost and quality; and (f) a dynamic business-oriented environment which facilitates the production of high value added goods and promotes the adoption of efficient processes and innovative technologies. This Report proposes a reform strategy for faster economic growth through European integration. Other key inputs for creating a favorable investment climate and consolidating growth prospects include skilled labor, efficient financial markets, and high-quality cost-efficient infrastructure services. Croatia has already achieved substantial progress in these areas. However, pursuing reforms in these sectors would not be costly and would be good for growth and European integration. Thus, higher education reform should be pursued, as should reforms to create market-oriented infrastructure institutions as envisaged in EU Directives, including the institutional development of regulators and the strengthening of the competition agency. The highly competitive European environment requires, in particular, well-focused training and higher education programs that offer firms qualified staff and adequate skills for an innovation-driven knowledge economy. The further deepening of financial markets, which is closely connected to the reforms in the legal and institutional framework outlined above, ought to focus also on the strengthening of the regulatory and supervisory functions, particularly in the non-banking sectors. Similarly, market-oriented energy, transport, and communications are crucial to enhance the global competitiveness of the Croatian economy and to foster its integration into the European economy while creating opportunities for FDI.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2003-07
Subjects:	EURROPEAN INTEGRATION, ENTERPRISE RESTRUCTURING, STRUCTURAL REFORMS, INVESTMENT ENVIRONMENT, GROWTH PROMOTION, PROPERTY RIGHTS, JUDICIAL REFORM, JOB CREATION POLICIES, BUSINESS ENVIRONMENT, PUBLIC ADMINISTRATION, KNOWLEDGE TRANSFER, COMPETITIVENESS, MACROECONOMIC STABILIZATION, PUBLIC EXPENDITURES FOR HEALTH, WAGE LEVELS, FISCAL POLICY, GOVERNMENT SPENDING POLICY, SOCIAL SECURITY SYSTEMS, CIVIL SERVICE REFORMS, COURT PROCEDURES, SMALL CLAIMS COURTS, LEGAL FRAMEWORK, UNEMPLOYMENT RATES, BARRIERS TO ENTRY, LABOR MARKET CHARACTERISTICS, CORPORATE GOVERNANCE, PRIVATIZATION OF PUBLIC ENTERPRISES, DEBT SUSTAINABILITY, EMPLOYMENT CREATION, LAND RIGHTS, HUMAN CAPITAL DEVELOPMENT ACCOUNTABILITY, ADMINISTRATIVE REFORMS, AGRICULTURE, AIR, AIR QUALITY, ALTERNATIVE POLICIES, BALANCE SHEET, BANKING SYSTEM, BANKRUPTCY, BENCHMARK, CAPITAL FLOWS, CAPITAL GOODS, CENTRAL GOVERNMENT, CITIZENS, CIVIL SERVICE, CONSOLIDATION, DEBT, DEMOCRATIZATION, DEVELOPMENT PROJECTS, ECONOMIC GROWTH, ECONOMIC INFORMATION, EMPLOYMENT, EXCHANGE RATE, EXPENDITURES, EXPORTS, EXTERNALITIES, FINANCIAL MARKETS, FINANCIAL SECTOR, FINANCIAL STABILITY, FISCAL, FISCAL REFORM, FOREIGN DIRECT INVESTMENT, FOREIGN INVESTMENT, FREE TRADE, GDP, HUMAN CAPITAL, INCOME, INNOVATION, INSTITUTIONAL CAPACITY, INSTITUTIONAL DEVELOPMENT, INSTITUTIONAL INVESTORS, INSTITUTIONAL REFORMS, INTERVENTION, INVESTMENT CLIMATE, JUDICIARY, KNOWLEDGE ECONOMY, LABOR MARKET, LABOR MARKETS, LABOR MOBILITY, LACK OF TRANSPARENCY, LAWS, LEGISLATION, LOCAL GOVERNMENT, MACROECONOMIC STABILITY, MARKETING, MEMBER STATES, NEW ENTRANTS, POLICY MAKERS, POLLUTION, PRESIDENTIAL ELECTIONS, PRIVATE SECTOR, PRIVATE SECTOR PARTICIPATION, PRIVATIZATION, PRUDENTIAL REGULATIONS, PUBLIC ADMINISTRATION REFORM, PUBLIC DEBT, PUBLIC ENTERPRISES, PUBLIC EXPENDITURE, PUBLIC EXPENDITURES, PUBLIC GOODS, PUBLIC RESOURCES, PUBLIC SECTOR, QUALITY STANDARDS, RECURRENT EXPENDITURES, REGIONAL INTEGRATION, RESEARCH CENTERS, SAVINGS, SCHOOLS, SOCIAL COST, SOCIAL PROTECTION, SOFT BUDGET CONSTRAINTS, STATE AID, STATE-OWNED ENTERPRISES, SUSTAINABLE GROWTH, TERTIARY EDUCATION, TRADE BARRIERS, TRADE FLOWS, TRADE LIBERALIZATION, TRANSPORT, UNEMPLOYMENT, VALUE ADDED, WAGES, WASTE, WATER SUPPLY, WORKERS, WORLD TRADE ORGANIZATION, WTO,
Online Access:	http://documents.worldbank.org/curated/en/2003/07/2466194/croatia-country-economic-memorandum-strategy-growth-through-european-integration-vol-2-2-main-report https://hdl.handle.net/10986/14707
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