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Who and What Holds Back Reforms in Croatia? Political Economy Perspective

The purpose of this paper is to explore the factors affecting reform pattern in Croatia in order to identify the main reasons for the (missing) reform success so far. The focus is on the analysis of the political system, especially the government fragmentation as one of the main features of proportional electoral rule and clientelism. Besides political variables, economic factors are analysed as well. The obtained results show that reforms in Croatia were implemented during crisis, that coalition governments are not conductive to reforms and that clientelism and corruption present significant obstacles for reform implementation in Croatia. Moreover, the results show that political cycles also have a significant effect with reform activity slowing down as elections approach. This article contributes to the burgeoning debate on the reform implementation (in the postsocialist societies) from the political economy perspective.

reforms ; Croatia ; clientelism ; coalitions ; corruption ; economic freedom

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