ANALYSIS Zagreb Coping with Demographic Decline in Croatia and Bulgaria IVAN ČIPIN NaDEZHDA ILIEVA November 2017 CROATIA n From January 1st, 2007 to December 31st, 2016, Croatia lost around 160,000 persons, and this figure will likely to approach 200,000 by the end of 2017. n Over the last few years, out-migration has become the main demographic driver of depopulation in Croatia. n Population decline attributable to negative net migration is even greater as large unregistered emigration is present, especially after joining EU in 2013. n Low fertility should not be treated solely as a „problem to be solved“ but as a „symptom of some other social problems“. n Population ageing is not a purely demographic problem, so its negative effects cannot be solved only by demographic policies. BULGARIA n The younger age structure of the urban population and the greater number of childbearing contingents determined also a higher birth rate for the population in the cities. n Only seven countries in Europe (Greece, Spain, Croatia, Italy, Andorra, Bosnia and Herzegovina, Portugal) have birth rates that are lower than the birth rate in Bulgaria. n Bulgaria has become a traditional donor of emigrants to Europe. ČIPIN | RECENT DEMOGRAPHIC TRENDS AND POLICY INITIATIVES IN CROATIA Recent Demographic Trends and Policy Initiatives in Croatia Ivan Čipin, University of Zagreb, Faculty of Economics & Business, Department of Demography Main demographic trends have to wait for the next census in 2021. After in Croatia since 2007 that census, a revision of population estimates in the 2010s will reveal the real extent of emigration. Comparing population size in 2007 and 2017 (see From 2007 to date, the demographic picture figure 1), we notice an evident population decline of Croatia as presented by basic demographic due to the outmigration of younger age groups indicators (i.e. natural growth, net migration and (below 50) and an increase in older population, total population change) shows features not especially those aged 80+. However, if these typical for most EU countries. Since the beginning trends prevail, Croatia’s population will fall below of the economic crisis, Croatia exhibited, in total, 4 million at the beginning of the next decade. a natural decline (more deaths than livebirths), a negative net migration balance, and a decline Over the last few years, out-migration has become in population size. Moreover, Croatia belongs the main demographic driver of depopulation in to a group of five EU countries (together with Croatia. While it is very difficult to turn the negative Lithuania, Latvia, Romania and Bulgaria) that natural increase into a positive one, a migration- recorded a loss of more than 3% of the total oriented solution could be a lot easier. We believe population during the observed period1. From the that these negative net migration numbers could beginning of 2007 until the end of 2016, Croatia turn positive in the near future, especially with lost around 160,000 people and this figure will the continuation and acceleration of the current likely to approach 200,000 by the end of 2017. economic growth that should generate new jobs, which will then significantly mitigate outmigration Since joining the EU, from mid-2013 until the end and attract migrants to move in. of 2016, Croatia lost 101,476 inhabitants. Out of these, 48,533 were due to a natural decrease, As already mentioned, the impaired age structure and 52,943 were due to a negative balance of (due to long-term effects of low fertility and out- net migration2. Population decline attributable to migration) is the reason why even a possible negative net migration is likely even greater as large moderate increase in fertility (15-30%) will not unregistered emigration is constantly present, stop a further decline of Croatia’s population in and is probably around 50% or even higher than the next few decades. the official statistics. A revelation of this “ghost population”, i.e. under-estimated emigration that At the same time, an ageing population is what over-estimates current population estimates, will holds the attention of many. According to various ageing indicators, Croatia is among the 10 oldest 1. Eurostat’s online database Population and social conditions. nations in the world. A constant yearly increase Accessed at http://ec.europa.eu/eurostat/data/database in the number of people aged 65 and over (today, 2. Croatian Bureau of Statistics (CBS), unpublished tabulations. one out of five belongs to that age group) and 2 ČIPIN | RECENT DEMOGRAPHIC TRENDS AND POLICY INITIATIVES IN CROATIA Figure 1. Population of Croatia by age and sex, 2007 and 2017 Source: Author’s calculations based on CBS’ tabulations a decrease in the working age population hide Very low fertility – trends and causes some potential economic and social problems. A shrinking working age population means fewer taxpayers to contribute to education and health In Croatia, the rate of total fertility (TFR), as expenditure, pensions and social welfare. This measured by the number of live-born children per could further reduce the already low living standard woman in her reproductive age (15-49), has been of many pensioners. A decrease in population below the “replacement level” of two children ever also means lower personal consumption, and, as since the late 1960s. The current value of period personal consumption is the most important part TFR is around 1.4 children per woman3 (Eurostat, of GDP, a plunging size of domestic consumers 2017). Although Croatia has never experienced may hinder Croatia’s growth and economic the lowest-low fertility (TFR below 1.3), as most recovery. Shrinking generations of live births of the countries of southern, central and eastern will reduce the need for maintaining the current Europe have, the adverse age structure is reflected number of teachers and professors in the future, in the insufficient number of live births. Every and the enrolment quotas in higher education generation of children born in the last ten years is institutions will have to adjust accordingly. only a third in size of their parent’s generation, and this generates imbalances in the age structure. 3. For more details see Eurostat’s online database and recent CBS’ Statistical Yearbook 3 ČIPIN | RECENT DEMOGRAPHIC TRENDS AND POLICY INITIATIVES IN CROATIA Unemployment and job insecurity for young Emigration – incomplete registration people under the age of 30, a lack of adequate income to leave the parental home and form one’s own family, an increasing number of (mostly The reasons for emigration are mostly but not inadequately paid) jobs that require work in the exclusively economic: the bad economic situation so-called atypical working hours (overtime and and the inability of the Croatian economy to night work, work on Saturdays and Sundays) are generate enough jobs, a desire for a higher among the most cited reasons for low fertility in standard of living and a better quality of life. There Croatia4. At the same time, prolonged education is also a search for an environment in which there and the desire for career advancement lead to are more opportunities for advancement in a late childbearing, which shortens the primary career. Social networks probably play a key role in reproductive period to only 10 to 15 years. Today, encouraging emigration: family, relatives, friends women aged 25 – 35 account for about two- and acquaintances who already live abroad and thirds of all live-born children in Croatia5. pull in new emigrants. Croatian society, although traditional from the Reliable data and research that would confirm outside, is slowly changing, and ideals, norms that present emigration is manly concentrated and preferences related to childbearing are not among the highly educated and that whole exempt from these changes. Do Croats prefer families are leaving is still lacking, leaving this small or large families? What about voluntary to pure speculation. It is quite normal that today, childlessness – a life free of children? Do they as compared to the period of 50 years ago, there have a preference on the number of children they are more highly educated outmigrants simply intend to have? Do they have time for children because they take up a larger proportion of the and what could encourage them to have more entire population. But the figures of 50,000 or children? We do not have the answers to such 100,000 young and highly educated who left and many other similar questions, and it should Croatia in a single year is typically an exaggeration. be a subject of further research in Croatia. In Croatia, no more than 35,000 students However, according to the cultural explanation graduate annually6. The economic situation in the of low fertility, within the framework of the country, however, is not so critical that complete theory of the second demographic transition, generations of graduates would leave. self-fulfilment is the main goal in life, and having children becomes less important in the lives of Almost all countries have some problems with individuals and couples. As a result, marriage an incomplete registration of out-migrants. For and childbirth are postponed for later years many years now, the EU has been trying to find until all other goals in life, such as acquiring an efficient strategy of migration registration, the desired level of education and obtaining a but there is still no satisfactory solution. There is satisfactory position on the labour market, do no easy way to encourage people to deregister not materialize. when they change their country of residence. In the absence of a Central Register of Population, the Central Bureau of Statistics (CBS) uses partial registers of deceased and live births kept by the registrar’s offices and the records of the Ministry of the Interior on residence registration.