"The World Bank's assessment of the business climate in Croatia is simply not correct and I, as Croatian Prime Minister, do not accept it," Sanader said at a business forum, a traditional gathering of government officials and business people at the Autumn International Trade Fair in Zagreb.
In its latest report on prospects for doing business in 2006, the World Bank ranked Croatia 118th on a list of 155 countries, the worst among East European countries.
Sanader called on the World Bank to name one transition country that has a one-stop shop or is in the middle of reform of its land registry.
"We know our worth," the prime minister said, adding that international credit rating agencies had increased Croatia's credit rating at the end of 2004 for the first time in seven years.
Sanader said that in January this year a World Bank team visited Croatia without contacting anyone from the government and assessed what had been done in 2004.
"Some important things that have happened in Croatia were not included (in the World Bank report)," Sanader said, wondering if the ratings by international credit rating agencies and the World Bank were "in absolute contradiction".
The prime minister said he had information that the World Bank would respond to the Croatian protest on Thursday.
This year's business forum focused on Croatia's competitiveness on its path to European Union membership.
Sanader said that one of Croatia's goals was to ensure strong economic growth by joining the 25-member bloc.
Speaking of government measures, he announced further investment in infrastructure, noting that over the next few years the annual rate of investment would be seven per cent of Gross Domestic Product or about 15 billion kuna.
The government will working on the development of industrial clusters and restructuring of the agriculture and food sector and money-losing public companies. Privatisation will continue, and the government will promote public-private partnerships, the prime minister said.
In cooperation with the central bank, the government will try to maintain the low inflation rate and the stable exchange rate of the domestic currency and contain the public debt.