CONTACT US Further information can be found on the ETF website: www.etf.europa.eu For any additional information please contact: European Training Foundation Communication Department Villa Gualino Viale Settimio Severo 65 I – 10133 Torino CROATIA E [email protected] F +39 011 630 2200 REVIEW OF HUMAN RESOURCES DEVELOPMENT T +39 011 630 2222 2-530-EN-C A-30-1 100 T 95 75 25 5 0 Cover_Croatia gioved 3 maggio 2012 09:50:20 HOW TO OBTAIN EU PUBLICATIONS Our priced publications are available from EU Bookshop (http://bookshop.europa.eu), where you can place an order with the sales agent of your choice. The Publications Office has a worldwide network of sales agents. You can obtain their contact details by sending a fax to (352) 29 29-42758. Europe Direct is a service to help you find answers to your questions about the European Union Freephone number (*): 00 800 6 7 8 9 10 11 (*) Certain mobile telephone operators do not allow access to 00 800 numbers or these calls may be billed. More information on the European Union is available on the Internet (http://europa.eu). Cataloguing data can be found at the end of this publication. 100 Luxembourg: Publications Office of the 95 European Union, 2012. 75 ISBN: 978-92-9157-601-2 doi:10.2816/1749 © European Training Foundation, 2012. 25 Reproduction is authorised provided the source is acknowledged. 5 Printed in Italy © Cover photos: ETF/A. Jongsma 0 Cover_Croatia gioved 3 maggio 2012 09:50:20 CROATIA REVIEW OF HUMAN RESOURCES DEVELOPMENT PREPARED BY SIMONA RINALDI, VACLAV KLENHA, LIZZI FEILER AND EVGENIA PETKOVA, WITH SPECIAL THANKS TO DORIANA MONTELEONE AND CRISTINA VIANO December, 2011 3 PREFACE Over the past 15 years, the EU enlargement process has provided solid evidence that human resources are extremely important in the wide-ranging reforms launched by countries on their road to EU membership. At present, the Western Balkans and Turkey invest huge efforts in harnessing the potential of their human capital and maximising its contribution to economic and social welfare. The Employment, Social Affairs and Inclusion Directorate General of the European Commission asked the ETF to draft a human resources development country review for Croatia. This has given the ETF the opportunity to look at the development of human resources as both an aim and a means of EU driven reforms. This review reflects the ETF’s understanding of the major human resources development challenges faced by the country and Croatia’s endeavours to achieve sustainable growth, increase prosperity and enhance social cohesion. It is my hope that the findings and conclusions of the review will inform the IPA programming exercise of the European Commission and the national policy-making process. The review has been prepared by the ETF country team for Croatia. It focuses on the interplay between two major aspects of human resources development: education and training in a lifelong learning perspective and employment. The review also reflects on the importance of equal opportunities in society for the quality of human capital development and takes into consideration the inclusiveness of Croatia’s education, training and employment systems. Relevant national and international documents, research papers and studies have provided a solid frame of reference for the review. In the process of collecting up-to-date information and the verification of the main findings and conclusions, ETF experts have consulted and involved key national stakeholders. During a series of missions to Croatia in 2010 and 2011, the ETF team conducted interviews and discussions with representatives in the Ministry of Science, Education and Sports, the Ministry of Economy, Labour and Entrepreneurship, the Agency for Vocational Education and Training and Adult Education, the Education and Teacher Training Agency, the Agency for Science and Higher Education, the National Employment Service, chambers of commerce and trades and crafts, education institutions and research organisations, the main social partners and civil society organisations, as well as bilateral and international donors. In addition, two counties (Varazdin and Sisak-Moslavina) were visited to gather some examples at sub-national level. On behalf of the ETF, I wish to thank the Employment, Social Affairs and Inclusion Directorate General of the European Commission for entrusting us with the preparation of the review. I would also like to extend my thanks and appreciation to all experts and institutions in Croatia for their responsiveness, involvement and valuable contributions to this paper. I am convinced that this report can be used effectively to better inform decisions and actions at both European and national levels. At the same time, I would like to underline the importance of continuity in the policy-making process at national level, in all its phases – policy formulation, implementation, monitoring and evaluation – and to assure Croatia that the ETF will continue to provide support for fostering the development of the human resources in the country. Madlen Serban Director European Training Foundation 5 CONTENTS PREFACE 3 EXECUTIVE SUMMARY 9 1. POLITICAL AND SOCIOECONOMIC BACKGROUND 11 1.1 EU, regional and national political context ....................................11 1.2 Demographic developments and trends, including migration .....................11 1.3 Economic developments and trends ........................................12 1.4 Preparation for EU Structural Funds .........................................13 Tables.....................................................................14 2. KEY POLICY ISSUES, STRATEGIES AND CHALLENGES IN EDUCATION AND TRAINING IN A LIFELONG LEARNING PERSPECTIVE 19 2.1 Policy framework for education and training ..................................19 2.2 Investment in human capital...............................................20 2.3 Lifelong learning strategies, broadening the education and training supply and recognising qualifications .................................................21 2.4 Secondary and post-secondary vocational education and training ..................24 2.5 Teacher training and learning in schools ......................................27 2.6 Higher education........................................................28 2.7 Institutional structure in education and training ................................30 2.8 IPA IV programming .....................................................31 Tables and figures ...........................................................33 3. KEY POLICY ISSUES, STRATEGIES AND CHALLENGES IN EMPLOYMENT 51 3.1 Characteristics of the labour market .........................................51 3.2 Labour legislation and industrial relations .....................................53 3.3 Active labour market policy and activation approaches ..........................54 3.4 Matching supply and demand on the labour market ............................56 3.5 Unemployment benefit and social security system .............................57 3.6 Job creation and the business environment ...................................57 3.7 Policy framework and institutional setup in the employment policy field .............58 3.8 IPA IV programming .....................................................60 Tables and figures ...........................................................61 6 CROATIA – REVIEW OF HUMAN RESOURCES DEVELOPMENT 4. KEY POLICY ISSUES, STRATEGIES AND CHALLENGES IN SOCIAL INCLUSION 87 4.1 General policy initiatives and programmes for vulnerable groups ..................87 4.2 Social inclusion in education ...............................................88 4.3 Social inclusion in employment ............................................90 4.4 Territorial (regional) cohesion ..............................................91 4.5 IPA IV programming .....................................................92 Tables and figures ...........................................................93 5. MAIN CHALLENGES, STRATEGIC PRIORITIES AND RECOMMENDATIONS 99 5.1 Horizontal priorities and recommendations ...................................99 5.2 Education and training ...................................................99 5.3 Employment ..........................................................102 5.4 Social inclusion ........................................................103 ABBREVIATIONS AND ACRONYMS 105 BIBLIOGRAPHY 109 LIST OF TABLES Table 1.1 Population (total population, population growth and dependency ratios) .......................14 Table 1.2 Migration: immigrant and emigrant population ........................................... 14 Table 1.3 GDP per capita (PPP), GDP growth and FDI inflows....................................... 14 Table 1.4 GDP by sector.................................................................... 15 Table 1.5 IPA countries and EU benchmarks – Macroeconomic data ................................. 15 Table 1.6 Human Development Index 2010 and trends ............................................ 16 Table 1.7 Global Competitiveness Index 2010 and comparisons with 2009.............................16 Table 1.8 Corruption Perceptions Index – Croatia................................................. 16 Table 1.9 Gender Empowerment and Inequality ranking ........................................... 17 Table 1.10 Gender Gap Index................................................................. 17 Table 1.11 Index of Economic Freedom......................................................... 17 Table 2.1 Public expenditure