The World Bank Group has released the 2024 update of the Croatia Systematic Country Diagnostic (SCD), building on the initial edition from 2018. This report outlines four key areas essential for fostering inclusive, resilient, and sustainable growth in Croatia.
The first area highlighted is effective service delivery. The report emphasizes the need to strengthen public administration at both central and local levels and improve corporate governance of state-owned enterprises to boost productivity and service quality.
Improved human capital and social protection form the second focus area. The SCD suggests enhancing education coverage, quality, and relevance to the labor market. It also calls for improvements in primary and preventative healthcare delivery and stronger social assistance systems to protect vulnerable populations.
The third priority is creating better-paid jobs through higher productivity. This involves supporting investment in research and development as well as green technology adoption. Additionally, ensuring a favorable business environment with access to finance, particularly for start-ups and vulnerable groups, is deemed crucial.
Lastly, enhanced environmental sustainability is identified as a critical area. The report advocates for promoting renewable energy production, improving energy efficiency, enhancing climate change resilience, and preparing for disaster risks.
By addressing these areas, Croatia aims to achieve robust economic growth that is inclusive and environmentally sustainable, ultimately improving the long-term wellbeing of its citizens.
The findings from this SCD will inform the upcoming Country Partnership Framework (CPF) between the World Bank Group and Croatia for 2025-2030. This framework will guide the focus of support provided by the World Bank Group to Croatia.
A Systematic Country Diagnostic is a report produced every five years by the World Bank Group for partner countries. Its purpose is to identify key constraints and opportunities for ending poverty while promoting shared prosperity on a livable planet. The SCD draws on thorough analysis and consultations with various stakeholders.
Online consultations regarding this update were held from November 15 to December 15, 2023. The World Bank Group expressed gratitude for contributions concerning challenges faced by Croatia and priorities needed for achieving inclusive growth during these consultations.