Search

 

Cablegate: Poor Results On Croatian Competitiveness

VZCZCXRO3598
PP RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSL RUEHSR RUEHVK
RUEHYG
DE RUEHVB #0561 2541453
ZNR UUUUU ZZH
P 111453Z SEP 09
FM AMEMBASSY ZAGREB
TO RUEHC/SECSTATE WASHDC PRIORITY 9526
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

UNCLAS ZAGREB 000561

SIPDIS
SENSITIVE

COMMERCE FOR INTERNATIONAL TRADE ADMINISTRATION

E.O. 12958: N/A
TAGS: ECON ETRD EINV EFIN HR
SUBJECT: POOR RESULTS ON CROATIAN COMPETITIVENESS

1. (U) In the latest World Economic Forum Global
Competitiveness Report, Croatia dropped 11 places to number
72 out of 133 countries ranked - the largest fall since the
country was included in the research in 2002. Hungary,
Romania, and Montenegro all passed Croatia in the rankings
this year. According to the National Competitiveness
Council, the local organization that partnered with the WEF
to gather data for the study, the results are partially taken
from statistical data, but mostly from surveys sent to
businesses and entrepreneurs. Compared with the other
countries in the study, Croatia ranked particularly poorly in
the burden of government regulation, the efficiency of the
legal framework in resolving disputes, and the rigidity of
the labor market. Croatia ranked relatively well in
questions covering infrastructure, health, and education.

2. (SBU) The Director of the National Competitiveness
Council told us on September 9 that the results should be a
wake up call to the government. She said the government had
never paid much attention to the recommendations of the
Council in the past, but that the release of this year's poor
results had finally led to a call from a member of Parliament
asking for their advice. She facetiously commented that if
the government was unwilling to listen to the report's
warnings, then the National Competitiveness Council might as
well become an academic think tank, and cease offering advice
on policy issues.

3. (U) The World Bank Doing Business report, also issued
this week, cited a modest improvement in the ease of doing
business in Croatia. Croatia moved up seven places to 103rd,
still within the bottom half of the 183 countries surveyed.
The Doing Business Report analyzes the effects of specific
regulatory reforms on the business climate. Croatia was
specifically cited for improvements to its construction
permitting process.

4. (SBU) COMMENT: While the two reports appear contradictory
in their assessments of Croatian competitiveness, the WEF
Competitiveness Report offers a broader picture of the
business climate, touching on areas such as corruption, red
tape, infrastructure, and public health. While a drop of 11
places could arguably be insignificant across the broad scope
of the subjective survey, it is a clear signal from the
business community that Croatia has not made progress in
tackling the problems that drag on the economy.
FOLEY

© Scoop Media

 
 
 
World Headlines

 

UN: India’s New COVID-19 Wave Is Spreading Like ‘Wildfire’, Warns UN Children’s Fund

7 May 2021 A new wave of COVID-19 infections is spreading like “wildfire” across India, leaving many youngsters destitute, the UN Children’s Fund UNICEF said on Friday. In the last 24 hours, India registered 3,915 coronavirus deaths and 414,188 ... More>>

UN: Decades Of Health Gains At Risk In Brazil Due To COVID-19

Although COVID-19 cases are declining in Brazil, the pandemic is putting decades of public health gains there at risk, the head of the World Health Organization ( WHO ) said on Friday. With global attention and support focused this week ... More>>

UN Report: Myanmar Approaching Point Of Economic Collapse

The turmoil following the military coup in Myanmar, coupled with the impact of COVID-19 could result in up to 25 million people – nearly half of the country’s population, living in poverty by early next year, a United Nations report said on Friday. That ... More>>


Focus On: UN SDGs

Study: Cut Methane Emissions To Avert Global Temperature Rise

6 May 2021 Methane emissions caused by human activity can be reduced by up to 45 per cent this decade, thus helping to keep global temperature rise to 1.5 degrees Celsius in line with the Paris Agreement on climate change, according to a UN-backed ... More>>

UN: Learning From COVID-19, Forum To Highlight Critical Role Of Science, Technology And Innovation In Global Challenges

New York, 4 May —To build on the bold innovations in science, technology and innovations that produced life-saving solutions during the COVID-19 pandemic, the UN will bring together experts to highlight measures that can broaden the development and deployment ... More>>

What COVID-19 Has Taught Us: “Healthcare Can No Longer Exist Without Technology”

A grandmother in a village in the Gambia should have the same quality of life and access to healthcare they deserve as in New York or London. Photo: InnovaRx Global Health Start-up Works To Bridge Healthcare Gap In The Gambia By: Pavithra Rao As ... More>>