This is an old revision of this page, as edited by Tezwoo (talk | contribs) at 17:01, 1 May 2015 (Undid revision 660269943 by Tuvixer (talk) unexplained removal of sourced content). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.
Revision as of 17:01, 1 May 2015 by Tezwoo (talk | contribs) (Undid revision 660269943 by Tuvixer (talk) unexplained removal of sourced content)(diff) ← Previous revision | Latest revision (diff) | Newer revision → (diff) | The neutrality of this article is disputed. Relevant discussion may be found on the talk page. Please do not remove this message until conditions to do so are met. (December 2014) (Learn how and when to remove this message) |
 | This article may require cleanup to meet Misplaced Pages's quality standards. The specific problem is: Needs better sourcing, better exposition and focus, with less OR and synthesis. Might be problematic w.r.t. living people. Please help improve this article if you can. (October 2014) (Learn how and when to remove this message) |
Privatization in Croatia refers to political and economic reforms which resulted in the privatization of state-owned assets in Croatia, immediately after the breakup of Yugoslavia. Most privatization took place in the 1990s, during the presidency of Franjo Tuđman and the rule of his party Croatian Democratic Union (HDZ). Some aspects of the privatization process are still seen as controversial as the political and economic turmoil, coupled with the events of the simultaneous 1991–95 independence war, are thought to have led to a degree of criminal activity, which plunged the country into an economic depression immediately after it declared independence in 1991.
Events
At the time Croatia gained independence, its economy (and the whole Yugoslavian economy) was in the middle of recession. As a result of the war that started in 1991, infrastructure sustained massive damage, especially the revenue-rich tourism industry. Privatization and transformation from a planned economy to a market economy was thus slow and unsteady, largely as a result of public mistrust when many state-owned companies were sold to politically well-connected at below-market prices. With the end of the war, Croatia's economy recovered moderately, but corruption, cronyism, and a general lack of transparency stymied economic reforms and foreign investment.
Primary methods of privatization in Croatia were management employee buyouts, while secondary methods were vouchers. In 1991 private sector share in GDP was 25% and in employment 22%. The method of privatization contributed to the increase of state ownership because the unsold shares were transferred to state funds. In 1999 the private sector share in GDP reached 60%, which was significantly lower than in other former socialist countries. The government retained 1-30% shareholdings in privatised firms in 33,4% of firms, and above 30% in 7,6% firms, much higher than other countries.
The privatization of large government-owned companies was practically halted during the war and in the years immediately following the conclusion of peace. As of 2000, roughly 70% of Croatia's major companies were still state-owned, including water, electricity, oil, transportation, telecommunications, and tourism.
| Year | GDP Growth | Deficit/Surplus* | Debt to GDP | Privatization revenues* |
|---|---|---|---|---|
| 1994 | 5,9% | 1,8% | 22,20% | |
| 1995 | 6,8% | -0,7% | 19,30% | 0,9% |
| 1996 | 5,9% | -0,4% | 28,50% | 1,4% |
| 1997 | 6,6% | -1,2% | 27,30% | 2,0% |
| 1998 | 1,9% | 0,5% | 26,20% | 3,6% |
| 1999 | -0,9% | -2,2% | 28,50% | 8,2% |
| 2000 | 3,8% | -5,0% | 34,30% | 10,2% |
| 2001 | 3,4% | -3,2% | 35,20% | 13,5% |
| 2002 | 5,2% | -2,6% | 34,80% | 15,8% |
| *Including capital revenues *cumulative, in % of GDP | ||||
See also
References
- International Business Publications: Croatia Investment and Trade Laws and Regulations Handbook, p. 22
- Istvan Benczes:Deficit and Debt in Transition: The Political Economy of Public Finances in Central and Eastern Europe, Central European University Press, 2014, p. 203
- Saul Estrin: The Impact of Privatization in Transition Economies, London School of Economics and Political Science, 2007, p. 18-19
- Istvan Benczes:Deficit and Debt in Transition: The Political Economy of Public Finances in Central and Eastern Europe, Central European University Press, 2014, p. 205-206
- Saul Estrin: The Impact of Privatization in Transition Economies, London School of Economics and Political Science, 2007, p. 20
- Eastern Europe: An Introduction to the People, Land, and Culture, p. 473
- National Accounts Main Aggregates Database