Causes and Consequences of the Economic Crisis in Croatia

Abstract

In analyzing the causes of the crisis, it is necessary to take into account certain specific features characteristic for Croatia, compared with the most of other post-communist countries. This is primarily related to the peculiarities of an inherited socialist system, and the circumstances in which the process of political and economic transformation of the Croatian society was begun. Thus, the process of multiple transition of socio-political system based on a unique model of self-management of social ownership was carried out while struggling to preserve the independence and territorial integrity of the newly established state. These factors, according to the author, are the key to understanding the present economic and social crisis in Croatia, which is generated by the current system of values. Built in the early 90’s of the last century, this system is a direct consequence of the war and a badly managed transition. The imposed system of values led to a rapid disintegration of society and became an obstacle in the further process of democratization. Instead of the development of society in the direction of the rule of law and justice, “distorted” system of values paved the way for the development of systemic corruption. The cause of this problem, according to the author, is in the anomalies that occurred during the process of political transformation from the one-party system to a society based on democratic principles of pluralism and the rule of law. The result of this political transformation was the creation of a political system, which was marked by the rule of one strong political party and the weak opposition during the last decade of the 20th century. Another problem the author points to is the organizational model of the majority of newly established political parties, which is characterized by a strict hierarchical structure, with a strong leader in charge of a narrow elitist circle of people within which this program of political action was created. The end result of the implemented political transformation of the society was politocracy—an established model of the rule of political parties that functions in today’s conditions. Also, the process of economic transition has enabled the emergence of plutocracy, which has in a strong symbiosis with politocracy paved the way for the practice of ruling in favor of the individual, to the detriment of the common good. According to the author’s opinion, the basic requirement for Croatia to exit the economic crisis is the change in the system of values, and the prerequisite for this is the implementation of structural reforms in all fields of society—above all, the reform of the political system.