Regional Clusters in a Function of Rural Development in Croatia

Abstract

The Republic of Croatia as a candidate country began negotiations for EU membership on economic, institutional, legislation, regional planning and social level, for the purpose of development oriented economy. The beginning of negotiations and potential candidature for EU membership create more favourable conditions for further economic development. Croatia, as a typical transitional country, is divided into 20 counties and the city of Zagreb, which has a county status, and confronts plenty of problems concerning privatization and inadequate economic reform, as well as a high unemployment rate (18%, i.e. 300.000 people). This agricultural country has 90% of rural area which is characterized by agricultural activities and only 40% of total population. In this area 14 cities with more than 30.000 inhabitants mean that almost every third resident (35% of population) lives in one of thouse cities. Rural area is also characterised by extremely low population density with only 34 inhabitants/km² ; , while average population density of urban areas records, according to EU criterion, 325 inhabitants/km² ; . Moreover, inadequately developed social, municipal, transport and other infrastructure ; as well as depopulation, social and economic problems are also typical for this area. In order to stimulate rural resources for more rapid economic development, it is necessary to stimulate diversification of economic activities for the whole rural development. Extreme disproportion of economic development of rural and urban areas is also indicated by GDP data per capita in the city of Zagreb, which is three times above the state average. Implementation of regionalization as a consequence of differently developed regions represents a strategic point in creating a strategy which has two goals: the balance of social-economic diversity and initiative of integral regional development. This approach will provide coordination of priorities and measures oriented towards economic growth and sustainable development in order to decrease economic and social differences. The paper will present economic activities of specific regions and measure economic and demographical index through: net income per capita, unemployment rate, budget income of local self- administration unit, population density, level of education etc., in order to present the real economic and social situation in the Republic of Croatia.