engleski

Environmental and Economic Influence of Construction Industry on the Development

Because of its direct and induced influence on the total rate of economic growth, construction industry – on the global scale – has been traditionally given great importance in the management of economic development. Unlike that, there are traditionally great amplitudes in the relation of economic policy to the construction industry in Croatia, with accompanying, sometimes positive but mostly negative implications on this economic branch and its contribution to the total rate of economic growth. Consequences of such unequal relation of current economic policy towards the construction industry are numerous and in they finally determine the intensity of alimenting the total growth rate of the social product of Croatia from the construction industry, but they also determine the level of its international competitiveness. The retrospective analysis of the state of Croatian construction industry in the last decade of the 20th century undoubtedly leads to the conclusion that the contribution of the construction industry to sustainable development of Croatia – due to the globally recognized interaction between the construction industry and the economic and social surroundings – it is necessary to make fundamental changes in the attitude of the current economic policy towards the construction industry. In recent time there are more and more signals of such changes, so it is possible to attribute to them the turn in the trends of stagnation from the previous decade into the revival of construction industry in the first years of the 21st century, when many positive tendencies become visible – above all the growing demand for the products of the construction industry. Moderator of this demand is largely the country's current economic policy and, within its framework, the opening of public works on the construction of the road infrastructure, of the works on the rebuilding and renewal of the parts of the country devasted by the war and the housing construction. The material foundation for such revival is provided by the growth of the solvent demand for construction products and services on the Croatian market, which guarantees favorable prospective for this activity in the current decade. Nevertheless, the financial strength of this activity is too unstable and still rather unfavorable, investments in it are insufficient and of inappropriate structure, and the export activities of construction companies are insufficiently intensive. Furthermore, geopolitical instability on the global scale, and the turmoil in the establishment of the new economic relations and powers, as well as the slowdown of the world market conditions on one, and globalization processes and sharpening of the competition on the global construction market on the other hand, are a potential threat to the currently positive tendencies in the Croatian construction industry. Reducing the threats and generating the conditions for the improvement of the strength and functioning of the Croatian construction industry can be realized only through permanent learning and improving of knowledge, through its constant innovations and modernization on the macro and micro plan.

construction industry, Croatian economic policy, restructuring, efficiency

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