Maruška Vizek: We are definitely not like Africa, but we are not an advanced digitalization country either

Croatia and Slovenia are the only countries in the region that are in a transitional phase of digitalization, with Croatia just at the beginning, while Slovenia is on the path to becoming an advanced digitalization country – it was stated at the conference “Digitalization Index – Potential and Barriers to Faster Growth” at the Faculty of Economics in Zagreb, where the director of the Economic Institute Zagreb Maruška Vizek presented the results of the study The Impact of Digital Transformation on the Countries of the Western Balkans, the first such study that calculated the digitalization indices of six countries in the region and placed them in mutual relation.

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We are definitely not like Africa, nor are we like Switzerland and Norway, Vizek emphasized, highlighting the great potentials that digitalization can bring.

If digitalization increases by 10 percent, GDP grows by 0.6 percent, and by 2050, this would mean that GDP would double. If digitalization accelerates four times compared to today, GDP grows by 15 percent, the Institute’s study shows.

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At the end of her presentation, Vizek highlighted recommendations that would bring progress in the field of digitalization: reducing parafiscal charges (there are at least 32) for laying infrastructure, reducing the time to obtain permits, ensuring legal security for investments, facilitating the use of public land for infrastructure (half of European countries do not charge a fee for the right of way), encouraging investment in infrastructure in rural areas, promoting digital transformation in small enterprises, encouraging startup companies, investing in the development of citizens’ digital skills, and fundamentally working on fostering an investment climate and tax relief.

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The study was also worked on by Florian Bieber, head of the Center for Southeast European Studies at the University of Graz, who at the beginning of his presentation mentioned the Macedonian town of Veles, which became famous for the story of fake news during the American presidential elections, indicating how digitalization and digital transformation are coming to Southeast Europe without a specific strategy and investment, but perhaps in a way that is not desirable.

He also warned that young people are leaving for the EU instead of being encouraged to stay in the country.

Digitalization offers the opportunity to turn real migration, which is a problem in most countries in the region, into virtual migration, in the sense of digital nomads who can work from anywhere, Bieber believes.

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After the presentation of the study, two panel discussions followed. The first discussed the role of regulation and drivers of digitalization, with participation from Krešo Antonović, head of the Electronic Communications and Postal Sector at the Ministry of the Sea, Transport and Infrastructure, president of the Council of the Croatian Regulatory Agency for Network Activities Tonko Obuljen, Bernard Gršić, state secretary of the Central State Office for the Development of the Digital Society, Boris Drilo, president of HUP – Association of Information and Communication Activities, and Neven Vrček, dean of the Faculty of Organization and Informatics at the University of Zagreb. Branka Ramljak, a representative of the Ministry of Science and Education, was announced as a guest but did not appear at the conference.

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– The study showed that progress exists, but it is slow. An important question is how we can accelerate progress, and the only way to do that is to change. And that is precisely the essence of digitalization because it changes everything. We must first change the way we think and the climate in a society that has resistance to change. Then we also need to work on the burdens that are often too high and must be aligned with the European level, said Obuljen.

In the second discussion, the focus was on users of digital infrastructure, with participation from Ivana Lupića, director of ICT solutions for industry and society at Ericsson Nikola Tesla, founder of the startup Photomath Damir Sabol, co-founder and Chief Growth Officer of Gideon Brothers Milan Račić, CEO of Croatian Post Ivan Čulo, Mladen Pejković, senior executive at Atlantic Group, and Siniša Đuranović, senior vice president of Hrvatski Telekom.

– For a small Croatia, I see many opportunities in the field of digitalization; if we are successful in football and tourism, why shouldn’t we also excel in the field of AI? If the state supports us and does not impose such burdens, we could achieve a lot. We must set clear goals and follow them. CEOs who can implement digital reforms will win the future, while many will fail this test, Račić stated.

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While government representatives highlighted what has already been done and what is planned for the future in the field of digitalization, industry representatives emphasized the need for greater investment and a stronger willingness to work on changes. The only thing both sides agree on is the frustration over the repetition of the same issues at conferences.