What Must the Winds of Change Bring to Croatia?

Do you remember the German rock band Scorpions and their worldwide hit from 1991, ‘Wind of Change’? If not, here is a short excerpt of the lyrics: ‘The wind of change/Blows straight into the face of time/Like a stormwind that will ring the freedom bell/For peace of mind.’

In recent history, Croats have often been exposed to the winds of change. How much they have truly blown away old systems, how much they have contributed to freedom, economic development, and progress, is a question that still lacks a clear answer today. Controversies surrounding the so-called lex Perković, the competitiveness of the Croatian economy, the absence of foreign direct investments, etc., are symptoms of an unfinished adjustment of society and the economy to new conditions. The latest and most economically demanding change occurred on July 1. After nearly a hundred days in the EU, we see that the curiosity of foreign investors, which was growing before joining the Union, is waning. We cannot even speak of specific, important investment projects to this day.

Love, Money, and Power The causes of such a disheartening trend year after year can be read from surveys of economic chambers: corruption and economic crime, high labor costs, lack of transparency in public tenders, difficult access to incentives, unpredictability of economic policy, legal uncertainty, inflexibility of labor legislation, an opaque tax system, high tax and parafiscal burdens, slow and expensive public administration, and payment indiscipline.
In short: fundamental structural changes that would instill confidence in both old and new investors that Croatia is a good investment destination are lacking. The current relationship of the authorities towards the economy can be described as an attempt to manage the chaos more effectively. Instead, the government should focus on creating a new, simple, and stable economic framework in which economic entities can successfully develop. Managing this turnaround (change management) should be a key task for every government.
Why has there been no turnaround so far? Changing behavioral patterns is one of the more difficult tasks. Those who live well in the system or from it are not willing to change either themselves or the system, but will defend it fiercely. And if change does occur, they will nostalgically lament the ‘good old days’ or continue to exploit connections and acquaintances from the former, now parallel, system. Three forces drive both individuals and the world: love (including sex), money, and power. If we want change, we must find a satisfactory answer to at least one of humanity’s drivers.

Positive Selection of Personnel The theory of change management often appeals to love in the broadest sense as an incentive for change – creating additional value for the system/masses and improving the standard of living for the individual. Practice teaches us that this is often not enough for a fundamental turnaround of the system because the needs of influential groups focused on money and power are not met.
The first and most important step out of this dilemma is (slow but) systematic positive selection of personnel. In the end, everything depends on individuals. Very successful companies differ from less successful ones in that they have more qualified people in key positions who gather experts around them, not cronies. The same principle should be applied at the macroeconomic and broader social level. Who today in Croatia systematically checks contemporary knowledge, skills, international experience, and achieved results in the public sector? And who systematically applies these criteria in the selection of leaders?
The next dilemma arises when we talk about managing performance in Croatia. The old system was based on two principles: that everyone is responsible or no one is, and that you must think one thing, say another, and do a third if you want to survive or be successful. Since the spirit of the old system has so far prevailed over the winds of change, there is no talk of clear goals, personal responsibilities, deadlines for execution, bonuses, and penalties in the public sector.
Even the public, as in the ‘good old days’, is trying to convince itself through the media that it is worse elsewhere, so there is no reason for alarm. There is currently no room for orientation towards the best and the development of a competitive spirit in citizenship and the economy so that Croatia can become the best in relevant segments as soon as possible. And this despite the fact that it recently became a full member of one of the most competitive markets in the world.
If Croatia misses these winds of change, what former Soviet President Gorbachev told his East German colleague Honecker before the fall of the Berlin Wall will happen: ‘Those who are late will be punished by life!’ And so it was.