Abstract
South-East European countries continue to suffer from wide-spread and deeply rooted corruption. This article is concerned with the social and economic sources of corruption and disrespect for the rule of law in the Republic of Croatia (rc), with particular attention being paid to tax evasion. Although the government of the rc has expressed a determination to undertake measures against corruption and tax evasion, it faces criticism that the fight against these social evils is not being given sufficient political support and respect. While it is clear that in the run up to joining the eu the rc has enacted different laws and institutions targeted towards the reduction of corruption; a serious problem remains in the low level of law enforcement. Croatia’s ineffective legal system and a lack of transparency have consequently presented significant challenges to investors. Moreover, the fight against corruption is often hampered by an inefficient public administration and a lack of intra-governmental coordination.
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