ZAGREB, May 9 (Hina) - The Scientific Council for Economic Research and Croatian Economy of the Croatian Academy of Sciences and Arts (HAZU) believes Croatia's economy cannot leave the state of crisis unless the state authorities make
a sharp turnaround in the current and proclaimed medium-term policy, reads a document entitled "Croatian Economic Crisis and Directions of a Turnaround from a Pro-Recession Economic Policy Into a Development-Oriented One." The document, which was drawn up by the Scientific Council on the basis of extensive analyses, will be presented late this month at the seminar "Croatian Economic Crisis and Directions of a Turnaround from Recession to Economic Development." An analysis of the state economic policy from the beginning of 2000 to the present shows that it is not based on a comprehensive, consistent, theoretically and scientifically founded programm
ZAGREB, May 9 (Hina) - The Scientific Council for Economic Research
and Croatian Economy of the Croatian Academy of Sciences and Arts
(HAZU) believes Croatia's economy cannot leave the state of crisis
unless the state authorities make a sharp turnaround in the current
and proclaimed medium-term policy, reads a document entitled
"Croatian Economic Crisis and Directions of a Turnaround from a
Pro-Recession Economic Policy Into a Development-Oriented One."
The document, which was drawn up by the Scientific Council on the
basis of extensive analyses, will be presented late this month at
the seminar "Croatian Economic Crisis and Directions of a
Turnaround from Recession to Economic Development."
An analysis of the state economic policy from the beginning of 2000
to the present shows that it is not based on a comprehensive,
consistent, theoretically and scientifically founded programme,
but that some of its important segments rely on rash solutions and
that there is a tendency towards compromises. The state authorities
are not critical enough toward the actions of the former
authorities or its own policy, the Council says. It also believes
the authorities lack understanding for the state of economy, the
state bodies are extremely uncritical toward the former and current
monetary policies and activities of the Croatian National Bank
(HNB) and that permanent damage has been done to the banking sector
by encouraging the arrival of inappropriately high amounts of
foreign capital. Compared to the former authorities, the current
authority has failed to make any significant progress in its
development and current policies and a significant limitation in
the development policy is linked to the inadmissibly low
investments in science, which are among the lowest in Europe, the
Council says. Particularly worrying is the fact that investments
continue to decrease despite increased bank credit potential and a
slightly decreased difference in the prices of domestic and foreign
money.
The HAZU Scientific Council for Economic Research and Croatian
Economy has forwarded this assessment to state bodies and experts,
suggesting, among else, the setting up of a multidisciplinary
advisory team of experts, who would help draw up Croatia's
development strategy.
(hina) sb rml