Business climate improvement initiative

Business climate improvement initiative – proposed by foreign chambers of commerce in Croatia

Based on advice from Croatian and foreign companies represented by our Chambers, we recommend three potentially “game changing” reforms that the Government should implement in order to make Croatia’s business environment more competitive and attractive for businesses and investors. This list is not exhaustive and will not solve all of Croatia’s economic problems. However, if implemented, these reforms will create a framework for increasing commerce and investment, which will help grow the economy and increase the number of jobs.

We are ready to support the Government’s efforts, including with technical assistance and advice. Improved Regulation – Bureaucratic obstacles to businesses could be greatly reduced by introducing an effective and transparent mechanism to address complaints from local businesses about regulatory and bureaucratic inefficiencies. In addition, all proposed new laws or amendments of existing laws and sub-regulations should undergo satisfactory impact assessments, including consultations with the business community. To support this, the Government should commit to increasing the share of laws passed via regular, instead of emergency parliamentary procedure, by agreeing to meet progressive yearly goals, for example a 10% increase of laws passed via regular procedure every year. Fair and Efficient Public Procurement – The Croatian public procurement system should ensure equitable treatment and efficient processing of all tender bids, leading to fewer bids being rejected for purely procedural reasons. To achieve this, the Government should guarantee effective and non-discriminatory legal protection for all public tender participants, ensure a sufficient level of capacity and expertise in all institutions dealing with public procurement and promote the predominant use of the “most economically advantageous tender (MEAT)” criteria in tender preparation and bid selection. Accountability and Predictability of Government Services – The difficulties in resolving administrative issues, such as obtaining permits, dealing with tax issues and business inspections, are a major impediment to business. Government offices should therefore be held accountable for proper implementation of existing laws and procedures. Adequate sanctions should be introduced for inefficiencies in carrying out legally prescribed duties by public officials, such as not abiding by the deadlines or providing inaccurate or incomplete information. Wherever possible, the principle of “silence is consent” should be implemented and e-services used for companies’ interactions with the Government.

Proposed by:
American Chamber of Commerce in Croatia
Austrian Trade Commission
Canadian-Croatian Business Network
Association of Italian Entrepreneurs in Croatia
German-Croatian Chamber of Industry and Commerce
Nordic Chamber of Commerce in Croatia

In consultation with:
The World Bank