Publication: Croatia - Country Economic Memorandum : A Strategy for Growth through European Integration, Volume 2. Main Report
Loading...
Published
2003-07
ISSN
Date
2013-07-31
Author(s)
Editor(s)
Abstract
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.
Link to Data Set
Citation
“World Bank. 2003. Croatia - Country Economic Memorandum : A Strategy for Growth through European Integration, Volume 2. Main Report. © World Bank. http://hdl.handle.net/10986/14707 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Croatia Country Economic Memorandum : A Strategy for Growth through European Integration, Volume 1. Summary Report(Washington, DC, 2003-07)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.Publication Bosnia and Herzegovina : Country Economic Memorandum(Washington, DC, 2005-05)This Country Economic Memorandum (CEM) takes stock of economic developments in Bosnia and Herzegovina (BH) since the end of the 1995 war, and, discusses potential sources of high, sustained growth that BH could exploit, as European Union integration advances. The report formulates policy recommendations that would help maximize the potential of the country's economy to achieve higher real GDP growth, and increased job generation. In doing so, the CEM focuses on four priority policy areas: macroeconomic management, international trade policy, business environment and enterprise reform, and, labor market policies. The report conveys the need to significantly build human capital, strengthen the institutional framework, particularly focusing on social sectors, and, develop infrastructure. Despite the country's recent macroeconomic stability, there are still uneven structural policies, and a largely unfinished agenda. The single most important macroeconomic imbalance is the persistent current account deficit. The analysis presented in this report suggests that it is the result of low domestic savings rates, rather than high investment. The rate of investment is not above the average for transition economies, whereas the share of domestic savings that can finance it is particularly low. The need for higher domestic savings raises the question of the adequacy of BH's current fiscal policy stance to serve economic growth. In the area of trade, the recent sluggish performance can hardly be attributed to a policy stance that has pursued liberalization and integration. The real constraints to a more dynamic export performance lie in the business environment and investment climate. The challenges of broad-based enterprise reforms essentially center around two main issues a) removal of structural barriers to the creation, and functioning of competitive markets; and, b) establishment of rules, procedures and related institutions that create incentives to facilitate business transactions. Challenges in the labor market are numerous: unemployment is high and rising, and, jobs being created are scarce, mainly in the informal sector. The report provides several recommendations, among which some suggest the need for changes in privatization regulations, of increased labor market flexibility, of fundamental changes in corporate ownership rules, as well as in the rules for privatization of investment funds, and most importantly, for adequate sequencing of reforms and improved governance.Publication Romania - Restructuring for EU Integration--The Policy Agenda : Country Economic Memorandum, Volume 1. Summary Report(Washington, DC, 2004-06)This Country Economic Memorandum (CEM) looks at the broad reform program, including institutional, governance, and economic restructuring reforms Romania is pursuing, which are anchored in its process for accession to the European Union (EU). The challenge is to expand integration with the EU more broadly throughout the economy, by relying on market driven mechanisms in a predictable rules-based policy environment, with the state sharply focused on the provision of essential public goods. Implementing the institutional reform agenda is the first priority in the accession-led reform, having the country the largest increase in its share of EU external imports among the Central Eastern European Countries (CEECs), with trade diversification providing a robust foundation for trade expansion. But, to deepen trade integration, Romania would need to broaden its trade performance throughout the economy. On restructuring the enterprise sector, the CEM indicates enterprise reform needs to be accelerated, and budget constraint discipline needs to be extended to the transaction interface between the state and enterprises. As for implementing agricultural transformation, the potential competitiveness of agriculture, associated with Romania's moderate climate, and the availability of land, remains largely untapped. Therefore, agricultural policies and transformation need to be driven by competitiveness. Moreover, increased labor market flexibility is needed to improve sectoral employment imbalances, and competitiveness, and hence reduce the risks to the sustainability of growth, as competing in the EU, and global markets becomes increasingly more difficult. Notwithstanding recent progress, there are risks and vulnerabilities to the macroeconomic stabilization, and reform achievements. The energy sector in Romania has been a main source of persistently large quasi-fiscal deficits, more so than in many other transition economies, with high hidden subsidies, and losses in the energy sector. Completing the energy sector reform is essential, but the challenge is to implement budget constraints between the state and energy enterprises, so as to complete the restructuring of the energy sector. Further recommendations include elimination of quasi-fiscal financing, replaced by efficient financial intermediation, and strengthening the regulatory and supervisory infrastructure; deepening the reforms of the social security system; and, containing the costs of upgrading environmental standards.Publication Kosovo : Economic Memorandum(Washington, DC, 2004-05-18)Prospects for economic growth depend upon the success of two overarching factors (1) mitigating risks related to political uncertainty and the maintenance of peace and security in the region; and (2) implementation of a policy program that promotes private sector- led growth, including completion of the reconstruction effort. Such a package of reforms might include the following measures: Within a sound fiscal position proceed with prioritized capital projects to complete the rehabilitation of infrastructure, but resist unsustainable spending on recurrent expenses such as the public sector wage bill. Pursue improved trade relations within the region. Maintain a uniform tariff rate and reduce the rate across the board. Consider a compensating revenue effort to raise taxes from the value-added tax, including through improved administration. Proceed with privatization of socially-owned enterprises and restructuring of publicly owned enterprises, including privatization of land-use rights of public enterprises (SOEs) slated for liquidation. Strengthen the capacity of the municipal courts to implement and enforce creditors rights and contracts. Rehabilitate the power sector, including lignite mines, and pursue a strategy for integrating with the regional power grid. Develop a strategy for the revitalization of the rest of the mining sector. Address overstaffing issues in private enterprises and SOEs, address transitional unemployment issues and facilitate redeployment to alternative productive activities. Keep the labor market relatively unencumbered by payroll taxes. Facilitate employment search. by linking information systems to enterprise surveys and the provision of vocational training. and then looking at the particulars of several sectors. Chapter 2 looks at macroeconomic stability, and considers the prospects for improving economic growth in Kosovo. Chapter 3 discusses a conducive business Climate. Chapter 4 examines the prospects for export-led growth in the power, mining and agriculture sectors. These are three sectors in which Kosovo could have a comparative advantage, as it is relatively well endowed with (1) lignite, (2) other minerals, and (3) fertile agricultural land; enjoys free trade with the European Union and is geographically located close to Western European markets. Finally, Chapter 5 reviews the labor market outcomes and policies for a liberal labor market and an appropriately skilled labor force.Publication Turkey’s Transitions : Integration, Inclusion, Institutions(Washington, DC, 2014-12-01)Turkey has always been a country of strategic significance. Its geographic position as a bridge between East and West, its long and unique history of relations with the European Union (EU), and the particular rout the Republic of Turkey chose towards modernization after its foundation in 1923 have attracted the attention of historian and political scientists a like. More recently, Turkey’s economic success has become a source of inspiration for a number of developing countries, particularly – but no only – in the Muslim world. Over the last two years, however, questions have emerged over the lessons to be drawn from Turkey’s experience. Economic growth has come down to a modest 3-4% range - from well over 5% during 2002-2011 - and risks related to the country’s large external financing needs have not been banished. Critics have raised questions over the strength of Turkey’s legal and economic institutions, and economists are concerned that Turkey may remain ‘trapped’ in its current middle income status. This publication is addressed to policy makers both from other emerging markets and from Turkey itself. To the former, if offers lessons in how Turkey progressed towards international integration and increased social inclusion. To the latter, it offers a narrative of the country’s achievements and remaining challenges that may help define the reform agenda going forward.
Users also downloaded
Showing related downloaded files
Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication Lebanon Economic Monitor, Fall 2022(Washington, DC, 2022-11)The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.Publication The Journey Ahead(Washington, DC: World Bank, 2024-10-31)The Journey Ahead: Supporting Successful Migration in Europe and Central Asia provides an in-depth analysis of international migration in Europe and Central Asia (ECA) and the implications for policy making. By identifying challenges and opportunities associated with migration in the region, it aims to inform a more nuanced, evidencebased debate on the costs and benefits of cross-border mobility. Using data-driven insights and new analysis, the report shows that migration has been an engine of prosperity and has helped address some of ECA’s demographic and socioeconomic disparities. Yet, migration’s full economic potential remains untapped. The report identifies multiple barriers keeping migration from achieving its full potential. Crucially, it argues that policies in both origin and destination countries can help maximize the development impacts of migration and effectively manage the economic, social, and political costs. Drawing from a wide range of literature, country experiences, and novel analysis, The Journey Ahead presents actionable policy options to enhance the benefits of migration for destination and origin countries and migrants themselves. Some measures can be taken unilaterally by countries, whereas others require close bilateral or regional coordination. The recommendations are tailored to different types of migration— forced displacement as well as high-skilled and low-skilled economic migration—and from the perspectives of both sending and receiving countries. This report serves as a comprehensive resource for governments, development partners, and other stakeholders throughout Europe and Central Asia, where the richness and diversity of migration experiences provide valuable insights for policy makers in other regions of the world.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.