Croatia, the newest member-state of theEuropean Union (EU), undertook significant justice reformsduring the last decade. Many were part of itsjustice-related EU accession process, including theenactment and implementation of new laws and amendment ofothers, improved case management and enforcement andcomputerization of land registers. BenchmarkingCroatia's justice sector indicates that it compareswell with other European countries on several aspects ofperformance including resource indicators important for afunctioning justice sector. However, the positiveachievements and the deployment of significant resourceshave been offset by less-than-expected levels of overallperformance, with high and growing demand for justiceservices facing an inadequate supply response. This reporttries to lift the veil on the reasons behind justice sectorunderperformance despite relatively adequate budgetaryallocations, comparatively high staffing levels, and a densenetwork of courts and prosecution offices. It provides asnapshot of Croatia's justice sector and of differentaspects of its performance. It reviews the evolution of andtrends in justice sector expenditures. It gives anassessment of sector expenditure management policies andpractices. The report examines demand and supply issues indepth, juxtaposing data on caseloads, case disposals, andexpenditures to identify implications for efficiencyimprovements. The report uses a supply-demand approach toassess the real challenges to improving sector performance,focusing on resource management, and allocation issues onthe supply side and on case inflow on the demand side.