Publication: Croatia - Country Economic Memorandum : A Strategy for Growth through European Integration, Volume 2. Main Report
Date
2003-07
ISSN
Published
2003-07
Author(s)
World Bank
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. © Washington, DC. http://hdl.handle.net/10986/14707 License: CC BY 3.0 IGO.”