An Overview of Economic Crisis in Croatia: Causes and Its Consequences

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An Overview of Economic Crisis in Croatia: Causes and Its Consequences

June 7, 2021 Physical Science 0

This study examines the consequences of the inherited political system’s transformation, with a focus on how political parties and state institutions operate, as well as the detrimental impact of the political system’s transformation on the economy. When assessing the reasons of the crisis, it’s important to consider how Croatia differs from the majority of other post-communist countries. This is mostly due to the peculiarities of an inherited socialist system, as well as the circumstances under which the Croatian society’s political and economic revolution began. As the newly formed state strove to maintain its independence and territorial integrity, a process of successive transformations of the socio-political system based on a unique model of self-management of social ownership was carried out. These aspects, according to the author, are crucial to comprehending Croatia’s current economic and social crises, which is exacerbated by the current value system. This system, which dates back to the early 1990s, is a direct outcome of the war and a sloppy transition. The imposed value structure led civilization to disintegrate over time and constituted a barrier to further democratisation. A “distorted” set of ideals, rather than progressing democracy toward the rule of law and justice, paved the path for institutional corruption to flourish. According to the author, the basis of the problem is contradictions that happened during the transition from a one-party system to a democracy based on democratic pluralism and the rule of law. This democratic transition resulted in the formation of a political structure characterised by the domination of one dominant political party and a weak opposition during the last decade of the twentieth century. Another concern addressed by the author is the majority of newly created political parties’ organisational model, which is characterised by a rigid hierarchical structure, with a powerful leader in control of a tiny elitist group of people who produced the political agenda. The politocracy—an established model of political party rule that works in today’s conditions—was shown to be the most effective political change of the society. Also, throughout this period of economic transformation, the growth of plutocracy has paved the way for the practise of ruling in favour of citizens at the expense of the common good, in close partnership with politocracy. According to the author, the most significant requirement for Croatia to emerge from its economic crisis is a shift in its value system, and the prerequisite for this is the implementation of structural changes in all areas of society, most notably the political system reform.

Author (s) Details

Karmen Skube
State Administration, Karlovac, Croatia.

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