Economic Institute Zagreb: Best in the World in Socialism, Unnoticed in Capitalism

‘Does Croatia have an Economic Institute?’

When such a question is posed by esteemed economic experts who have collaborated with scientists from that institution, and some have even written articles and scientific papers about them, further elaboration on the topic is almost superfluous.

Only when you dive deep into the past can you see the difference between what the Economic Institute Zagreb (EIZG) once was and what it is today. In the 1970s, it had the status of one of the best institutes in the world. From its ‘kitchen’ emerged scientific papers that were translated in many countries and became university textbooks, and its human potential consisted of charismatic economic leaders who skillfully navigated between political ideology and the protection of science. They were relevant participants in shaping economic policy, not only for Croatia but for the entire Yugoslavia.

EIZG had a strong staffing structure of civil economists in Yugoslavia, with many individuals going abroad for education through international scholarships and gaining the software foundation to recognize where a society is heading. They were world-class individuals exceptionally well connected with American and European scientific institutions. It was an extremely competent crew.

Today’s Economic Institute, led by Tajana Barbić, who took over two years ago and began her career at the Institute as an assistant in 2004, replacing Maruška Vizek, who is now her assistant, continues to engage in relevant scientific work and has very strong economic experts among its ranks. However, it is very difficult to extract the concrete significance of the Institute for the advancement of the Croatian economy and society when compared to former times. Especially when compared to other institutes in Southeast Europe, let alone in Germany.

Many will praise individuals, scientists employed at that institution (49 of them), especially Željko Lovrinčević, one of the most esteemed economic scientists and a member of the EIZG Management Board. However, many prefer to remember the past. Some will say that the reason for the decline in reputation is the current human potential, but most see the roots of the decline in the marginalized role of science in Croatia in general, especially among the structures that govern this country.

– The Zagreb Economic Institute was one of the highest quality economic institutes in the world. Heads of each department were in direct contact with Nobel laureates and leading world economists. They collaborated with various other institutes in the USA, Europe, and even with the Russian Academy. Milan Mesarić was one of the most sought-after global advisors, and the World Bank engaged him to assist countries in creating economic policies, recalls economist Ljubo Jurčić.

Mesarić’s biography states that he was the deputy director of EIZG from 1965 to 1970, after which the UN employed him as an expert and project director for development planning in Sri Lanka, Sierra Leone, and Libya, focusing on the development planning of economies in developing countries.

Rikard Lang, whom many consider the founder of the Institute (he led it from 1955 to 1973), is remembered as a strategist and promoter of research, as well as a protector of science. He attracted the attention of world economists from both the West and the Eastern bloc with his knowledge in the field of self-management.

Dragomir Vojnić was the director of the Institute from 1973 to 1993, a member of the International Association for the Study of Income and Wealth, president of the Yugoslav-American Council, and the Center for Yugoslav-American Studies, Research, and Exchange at Florida State University.

There are also Mate Babić, Gorazd Nikić, Mijo Sekulić, who introduced the system of intersectoral relations and input/output analysis and was a close friend of Wassily Leontief.

Ante Čičin Šain and Pero Jurković, who worked at the Institute, were the first two governors of the Croatian National Bank. Jurković learned from Jan Tinbergen, a Dutch economist who received the first Nobel Prize in Economic Sciences in 1969.

Jurčić also remembered Stjepan Zdunić and Branko Horvat, a likely candidate for the Nobel Prize, which he missed for political reasons.

Many strong names have passed through the Economic Institute, and a separate book could be written about each of them.

It is difficult to assess the specific reason and point a finger at one person who can be considered responsible for what was once Croatia’s golden scientific hen becoming a scattered yolk, especially in times when the economy dictates the social and political order. However, it is certainly hard to watch science being suppressed out of ignorance.

A detailed analysis of the EIZG’s operations then and now can be read in the new printed and digital edition of Lider.