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Croatia’s Corruption Perception Index Plummets Below EU Average
A recent report by Transparency International has revealed that Croatia’s corruption perception index has dropped significantly, ranking 63rd out of 180 countries evaluated. This is a staggering 46% drop from the EU average.
The Impact of Corruption
The report highlights that corruption has a profound impact on various aspects of economic and social development, including:
- Investment
- Competition
- Entrepreneurship
- Government efficiency
- Human-capital formation
The negative effects of corruption can be seen in:
- Resource misallocation
- Price distortion
- Reduced quality or scarcity of goods and services
- Distorted competition
- Decreased growth and innovation
- Unfair allocation of benefits
- A loss of trust in the government
Perceptions of Corruption in Croatia
According to the 2021 Transparency International Corruption Perception Index (CPI), Croatia ranks below Romania, Hungary, and Bulgaria. Additionally:
- 97% of Croatian citizens believe corruption is widespread, compared to the EU average of 71%.
- 54% of them feel personally affected by it in their everyday lives, which is significantly higher than the EU average of 26%.
The Role of Anti-Corruption Policies
Despite efforts to reduce opportunities for corruption and limit discretion in public decision-making, some elements of a functioning anti-corruption framework are still missing. For instance:
- There is no code of conduct for persons with top executive functions
- Comprehensive codes of conduct for elected officials at regional and local levels are lacking
- An operational whistle-blower protection system does not exist
The energy and industry sectors are particularly vulnerable to corruption due to large-scale investments in modernizing and expanding infrastructure. The government has invested heavily in these sectors, but without effective anti-corruption policies, the risk of anti-competitive behavior grows significantly.
Prevention of Corruption
A generally advanced legal framework for preventing corruption is in place, with a network of authorities contributing to policy-making and prevention. However, further efforts are needed to address concerns about the prevalent level of corruption.
Conclusion
Croatia’s corruption perception index has dropped significantly below the EU average, highlighting the need for more effective anti-corruption policies. The government must take concrete steps to prevent corruption, including implementing clear rules on conflict of interest and strengthening the institutional framework for preventing corruption.
Source: Transparency International Corruption Perception Index 2021
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