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Croatia 2030 National Development Strategy Croatia 2030 Croatia 2030: Roadmap for a Better Future January 2020 Chapeau note 1 Acknowledgements This Report was prepared in the context of the Reimbursable Advisory Services Agreement “Support for Establishing the System for Strategic Planning and Development Management and for Preparing the 2030 National Development Strategy”. The core World Bank team was led by Donato De Rosa (Lead Economist, Team Leader), Josip Funda (Senior Economist, co-Team Leader), and Catalin Pauna (former Team Leader) and included Stanka Crvik Oreskovic and Martina Vojkovic (Project Coordinators) and Bogdanka Krtinic (Program Assistant). The team worked under the guidance of Elisabetta Capannelli (Country Manager) and Gallina Andronova Vincelette (Practice Manager). The Report is based on the Policy Notes prepared in the context of the same Reimbursable Advisory Ser- vices Agreement. The team for the preparation of this Report included Josip Funda, Stanka Crvik Ore- skovic, Alan Bobetko, Donato De Rosa, Jaksa Puljiz and Peter Harrold, under the guidance of Gallina Andronova Vincelette, Practice Manager for Macroeconomics, Trade & Investment Global Practice for Europe and Central Asia. The following team members have made significant contributions to this report or the underlying Policy Notes: Yahia Ziad Abuhashem Aida, Mohirjon Ahmedov, Sameer Akbar, Diego Ambasz, Sandra Antulić, Zoran Anušić, Joao Bevilaqua T. Basto, Alan Bobetko, Ana Bobinac, Ana Maria Boromisa, Miroslav Božić, Lucia Brajković, Jamie Lee Brown, Ana Elisa Bucher, Emmaline Holland Gayk Burduja, May Ca- bilas Olalia, Rome Chavapricha, Paul Andres Corral Rodas, Paulo Correa, Elwyn Davies, Carmen De Paz Nieves, Charlotte De Fontaubert, Ioannis Dimitropoulos, Tania Dmytraczenko, Ivan Drabek, Juan Carlos Duque, Svetlana Edmeades, Stephanie Ekaette Trpkov, Erika Ruth Felix, Ian Forde, Stipe Gabrić, Runyararo Gladys Senderayi, Dobrina Gogova, Karla Gonzalez Carvajal, Estella Tian-Ran Gong, Jessica Carolina Grisanti Bravo, Arti Grover, Anita Amaral Gurgel, Linn Hammergren, Zahid Hasnian, Hrvoje Horvat, Maja Hranilović, Marcel Ionescu-Heroiu, Jorge Pena Izquierdo, Lidija Japec, Nizar Jegham, Na- tasha Kapil, Davor Katavic, Ivan Kopric, Anna Koziel, Tatyana Kramskaya, Gianni La Ferrara, Matija Laco, Somik Lall, Julian A. Lampietti, David Lee, Alberto Leyton, Andrea Liverani, Nancy Lozano Gracia, Kseniya Lvovsky, Raimund Mair, Waleed Haider Malik, Manuel Ramos Maqueda, Teo Matković, Joanna Mclean Masic, Katie L. McWilliams, Cem Mete, David Michaud, Amelia Midgley, Tamara Mihaljčić, Todor Milchevski, Darjan Milutinovic, Fernando Montes-Negret , Marialisa Motta, Jasmina Mrkonja, Sally Murray, Shiho Nagaki, Urvashi Narain, Danijel Nestić, Roberto O. Panzardi, Dejan Ostojic, Anabella Emilise Palacios, Dominic Pasquale Patella, Harry Anthony Patrinos, Aleksandra Posarac, Thorsten Posselt, Steffen Preissler, Tatjana Prenđa Trupec, Demetris Psaltopoulos, Domagoj Račić, Sonja Radas, Višnja Rajić, Andres Rodriguez Pose, Fernando Rojas, Gabriela Schmidt, Ninoslav Šćukanec Schmidt, Roby Senderowitsch, Sameer Shukla, Carlos Silva-Jauregui, Ana Simecki, Alanna L. Simpson, David N. Sislen, Evar Somer, Lars M. Sondergaard, Valerie Gilbert T. Ulep, Rogier J. E. van den Brink, Philip Van der Celen, Frans Anton Carel Olaf Vermast, Nataša Vetma, Nenad Vukadinovic, Huihui Wang, Zetianyu Wang, Collette Wheeler, Michele Davide Zini, Darko Znaor. Note This report is a product of the staff of the World Bank Group. The findings, interpretations, and conclusions expressed in the report do not necessarily reflect the views of The World Bank Group, its Board of Exec- utive Directors, or the governments they represent. The World Bank Group does not guarantee the accuracy of the data included in this work, which is drawn from multiple external sources. Nothing herein shall constitute, or be considered to be, a limitation upon or waiver of the privileges and immunities of The World Bank Group, all of which are specifically reserved. Croatia 2030: Roadmap for a Better Future 2 Content List of Acronyms ............................................................................................................................ 5 Executive Summary ....................................................................................................................... 8 1. Introduction ..................................................................................................................... 17 2. Development challenges for the next decade .................................................................. 21 A. Boosting the economy’s growth potential ............................................................................ 21 A.1. Productivity ...................................................................................................................... 22 The regulatory environment ......................................................................................................... 22 Public administration, management of state assets and SOEs ..................................................... 22 The judiciary and anti-corruption policies ................................................................................... 24 Research, development and innovation ........................................................................................ 27 A.2. Physical capital and connectivity ..................................................................................... 28 Transport ...................................................................................................................................... 28 Broadband infrastructure .............................................................................................................. 30 Energy policy ............................................................................................................................... 30 Investment needs in specific sectors: tourism and agriculture, fisheries and aquaculture ........... 31 A.3. Labor and human capital .................................................................................................. 32 Labor market ................................................................................................................................ 33 Education ..................................................................................................................................... 35 Health sector................................................................................................................................. 37 B. Making growth inclusive ...................................................................................................... 39 Poverty and social protection ....................................................................................................... 39 Pension system ............................................................................................................................. 40 Inclusion ....................................................................................................................................... 41 Balanced territorial development ................................................................................................. 42 C. Ensuring environmental sustainability ................................................................................. 43 Circular economy, waste management and water utilities ........................................................... 44 3. Conclusion ...................................................................................................................... 45 ANNEX: A policy agenda until 2030 .......................................................................................... 47 A. Accelerating growth ............................................................................................................. 48 A.1. Productivity ...................................................................................................................... 48 The regulatory environment ......................................................................................................... 48 Public administration and fiscal policy ........................................................................................ 49 Croatia 2030: Roadmap for a Better Future 3 Management of state assets and state-owned enterprises ............................................................. 50 The judiciary ................................................................................................................................ 50 Research, development and innovation ........................................................................................ 51 A.2. Physical capital and connectivity ..................................................................................... 52 Transport ...................................................................................................................................... 52 Broadband development ............................................................................................................... 54 Energy policy ............................................................................................................................... 54 Waste management and water utilities ......................................................................................... 55 Agriculture and fisheries .............................................................................................................
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