CROATIA GAINS ONE PLACE ON POLITICAL STABILITY INDEX

ZAGREB, Dec 19 (Hina) - The LEGSI stability index for Croatia for December is 65, placing Croatia fifth among ten monitored countries, with one position up in relation to November. LEGSI (Lehman Eurasia Group Stability Index) is measured by the U.S. consulting company Euroasia Group in cooperation with the Lehman Brothers investment bank. The index measures the political stability of countries in transition, as well as other countries. Croatia's progress is primarily the result of President Stjepan Mesic's diplomatic activity, i.e. the visit to Israel, and headway made in relations with neighbours, i.e. Yugoslavia. On the other hand, the public's discontent with the slowness in the implementation of reforms and a dispute between the bishops and the government regarding social issues have a negative effect on the index. Hungary is the first on the December index, followed by Poland, Bulgaria, and Russia. Croatia is fifth, and is followed by the Ukraine, Thailand, Turkey, Indonesia, and Azerbaijan. The index is a good indicator for foreign investors as it combines economic and social-political indicators, providing a reliable picture of the monitored country's stability. (hina) ha sb