This is the first study of poverty, andincome distribution in Croatia, which aims to provide anassessment of the country's poverty status, to explainthe causes of poverty, and recommend actions to efficientlyreduce poverty. In comparing international poverty standardsacross transition economies, the study finds that theincidence of absolute poverty in Croatia is low, however,these standards may not adequately reflect country-specificconditions. It is estimated that the level of totalhousehold expenditure - after paying for essential non-foodexpenditures - just attain minimal nutritional needs, and itis this level which therefore represent an absolute povertyline. Thus, less than ten percent of Croatia'spopulation fall below this national specific poverty line,and the report shows it would be affordable for the countryto eliminate absolute poverty. It presents the historical,and political context for understanding poverty, whichexamines Croatia's independence conditions, warconsequences, and post-war economic policies, to determinethe poverty scale, and profile, and economic causes ofpoverty, to form the basis for a social assessment.Macroeconomic, and structural policies were key determinantsof weak employment growth, and, labor market policies haveworsened the negative impact of macro-policies on incomedistribution. Policies to foster opportunities shouldinclude a sustained macroeconomic stability; creation of anenabling environment for private businesses; an increasedflexibility of the labor market; and, increased investmentsin human capital.
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