ZAGREB (Croatia), November 8 (SeeNews) – Croatia kept its position among the top 45 countries in the Legatum global prosperity index issued in November, as a result of its infrastructure development and investments in logistics.
Slow privatisation process and high unemployment rate, however, pushed Croatia down 15 spots to 61st in the Economic Quality sub-index, but the country’s 43rd place in the global ranking is still above the ones of other Balkan countries, chiefly due to the infrastructure improvements, especially since Croatia joined the EU in 2013, according to the 2016 edition of the Legatum Prosperity Index issued in November.
Despite its inefficient public administration and corruption in the judicial system, Croatia has achieved a modest improvement in the Business Environment sub-index, as reforms have made it easier to start and run a business in Croatia, with redundancy costs falling significantly. At the same time, broadband subscriptions have nearly tripled over the past decadе, according to the Legatum Prosperity Index 2016 compiled by Legatum Institute.
London-based Legatum Institute is an independent charity within the Legatum Group, a private investment group with a 30-year heritage of global investment in businesses and programmes that promote sustainable human development.
As much as 45% of interviewees thinks Croatia is a good place to start a business, compared to mere 30% in 2007. Nevertheless, business confidence appears to be lower in Croatia than in many other Balkan countries. For example, 68% of people see Romania as a safe country to incorporate a company.
Croatia has made a small step up in the Social Capital sub-index over the past decade, moving up ten ranks to 113th position, according to Legatum. However, the country performs well below average in comparison with EU peers. An increase in charitable donations complemented by an uptake in volunteering and sending financial aid to other households was reported. On the other hand, fewer people feel that they can rely on friends and family in times of need than in 2007.
Croatia performed best in the Natural Environment sub-index where it has moved up 51 ranks to 30th over the past decade. Wastewater management had been an issue of concern in Croatia, particularly in the coastal regions that play a crucial role in the country’s tourism industry. New wastewater facilities, funded by the government and the World Bank, have been built along Croatia’s coastline. The stake of treated wastewater was significantly boosted to 50% from 4.9% in 2007, according to Legatum.