The World Bank presented a report on living standards and regional development in Croatia under the auspices of President Stjepan Mesić. During the presentation of the strategy, Seth Adnan, the World Bank director for Croatia, Bulgaria, and Romania, noted that the Government currently allocates four percent of GDP for more than one hundred programs, so there should be no talk of poverty in a country like Croatia. – Poverty exists not because there are not enough resources to reduce poverty but because the resources are not optimally directed – said Seth Adnan.
President Mesić agreed that Croatia has no right to poverty given all the advantages it possesses. – Fortunately, the World Bank’s analysis shows that poverty in Croatia is relatively limited. Only 11 percent of the population is poor, and about one percent of the population is in the zone of severe poverty – noted Mesić, adding that the problems of citizens’ living standards are significantly more complex. – As many as three-quarters of households in Croatia have problems covering their monthly expenses, and half of the income goes to meet basic existential needs – said Mesić. He also stated that Croatia’s GDP per capita is about 55 percent of the average of EU member states and that despite relatively high economic growth rates, the job creation process has been very limited.
– Croatia has an employment rate of about 55 percent in the active working population, while the EU average is about 65 percent – emphasized Mesić, adding that development is still below the potential development capabilities of Croatia and that social, political, economic, and social reforms are needed. The head of the European Commission Delegation in Croatia, Vincent Degert, stated that the employment rate in Croatia is one of the lowest in Europe and that the Government can effectively utilize studies conducted in the education sector and international support to find a way to implement social programs. Detailed results of the study were presented by senior World Bank economist Salman Zaidi, focusing on three key findings of the study. Poverty in Croatia is quite shallow, meaning that only a relatively small share of the poor faces severe deprivation, and poverty can be reduced by faster job creation and better-targeted social spending.
