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Croatia’s Post-communist Transition Experience: The Paradox of Initial Advantage Turning into a Middle-Income Trap

  • Kristijan KotarskiEmail author
  • Zdravko Petak
Chapter
Part of the New Perspectives on South-East Europe book series (NPSE)

Abstract

The central puzzle of Croatia’s post-communist transition has been the extent of economic and institutional divergence with new EU member states bound by common historical legacy and imperatives of institutional transformation following a collapse of the old institutional order. In this chapter we identify two key explanations that stand behind this evolution. First, we claim that the political economy of Croatia’s transition represents the case of partial reform equilibrium where winners represent the biggest threat to successful long-term transition. Second, comparative political economy analysis of five key areas (product market competition, collective bargaining, financial sector, social protection and education) shows that Croatia developed a typical variant of capitalism, which is in its attributes closer to South European capitalisms than to capitalisms prevalent in Central and Eastern Europe (CEE-10) EU member states.

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Faculty of Political ScienceUniversity of ZagrebZagrebCroatia

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