ZAGREB, Aug 22 (Hina) - Doubts surrounding the efficiency of Prime Minister Ivica Racan's cabinet, border disputes with Yugoslavia and Bosnia, excessive spending for defence, education and health, and a record amount of foreign debt
of US$ 12.3 billion are the main causes of the drop of the LEGSI stability index for Croatia by two points. In August, thus, the index is 57 points.
ZAGREB, Aug 22 (Hina) - Doubts surrounding the efficiency of Prime
Minister Ivica Racan's cabinet, border disputes with Yugoslavia
and Bosnia, excessive spending for defence, education and health,
and a record amount of foreign debt of US$ 12.3 billion are the main
causes of the drop of the LEGSI stability index for Croatia by two
points. In August, thus, the index is 57 points. #L#
Analysts at Euroasia Group and Lehman Brothers consulting
companies issued their regular monthly report in which they noted
that the reshuffled government shared many similarities with the
former one, which was not a guarantee of greater efficiency.
The report states that border issues with Yugoslavia and Bosnia are
serious incidents in the area of security. The excessive public
spending and foreign debt are additional reasons for the LEGSI to
drop, the analysts said.
The drop of the index resulted in Croatia's falling by two places,
currently being at the ninth place behind Hungary, Poland, Mexico,
Bulgaria, South Africa, Thailand, Brazil and the Philippines.
The LEGSI index gauges the political stability of countries in
transition and other countries from all parts of the world, that is,
their potential and resistance to internal crises.
It is calculated by assessing governments' political and economic
acts and their reputation at home and abroad, as well as social and
economic events marking the observed period.
(hina) lml