Mudrinić on Competitiveness: We Are Not Capable of Coping with the Game We Are Playing in the Game Called the European Union

Competitiveness is a reflection of our readiness to attract investments. Here we measure ourselves in absolute terms – how we stand in certain areas, but we also have a ranking, competitiveness scale where it reflects whether we are more ready and capable than our neighbors to attract investments because the market is now global and capital goes where it can be enriched, explained Ivica Mudrinić, president of the National Competitiveness Council, during the presentation of the Global Competitiveness Report of the World Economic Forum. This report includes 98% of the world’s GDP, and data on Croatia can be tracked since 2002. However, the most interesting thing is how we move on that scale year by year. We are recording an improvement compared to the previous year, with Croatia moving from 77th to 74th place.

Croatia is relatively weak in the area of innovation compared to the average of Europe and North America, which is, according to Mudrinić, the most concerning. However, he emphasized that he hopes we will utilize funds from the European Union that are intended to improve precisely that area, and the competition is still open today and applications can be submitted. In addition to more efficient agricultural management and legal frameworks, the wastefulness of state spending, and the transparency of government policies, there are many areas where Croatia has weaker results.

– The government and the public sector are quite present in this segment where we are relatively weaker, and that is also an opportunity. This actually means that in a very short time we can make significant progress if we have a clear strategy, if we have levers in power that allow us to achieve what we want, to realize our goals, Mudrinić is optimistic.

The most critical issues according to the perception of entrepreneurs are the low efficiency of public administration, instability of tax rate policies (frequent changes), corruption, restrictive public legislation, and insufficient capacity for innovation. Indicators showing the greatest growth are auditing reporting standards, protection of minority shareholders’ interests, degree of investor protection, macroeconomic environment, higher education and training, efficiency of goods markets, labor market, growth of financial markets, and business sophistication.

The conclusions presented by Mudrinić on behalf of the National Competitiveness Council are as follows: We are recording a slight but insufficient increase in competitiveness that would enable a better and safer life. The constant decline in innovation and technical capabilities makes us unprepared for the fourth industrial revolution. It is essential to implement structural reforms without delay, and now more than ever a clear vision of Croatia’s future is needed. Mudrinić added that we need to set a clear goal, because if we do not do that, all goals are good, and emphasized that we are not capable of translating Slavonian wealth into realization and thus do nothing to prevent the exodus of young people from those areas.