- Funding Programme
- Year
- 2022
Foreign Direct Investment Qualities Review of Croatia
The European Commission has supported the publishing a review of investment promotion and facilitation policies in Croatia. The findings and recommendations of the review aim to support the Government of the Republic of Croatia to develop a Strategic Framework for the Promotion and Facilitation of Private Investment, including a National Plan on Investment Promotion, a related Action Plan, and an amendment to the Investment Promotion Act. The reform is part of Croatia's National Recovery and Resilience Plan and is supported by the European Commission (EC).
Context
Foreign direct investment (FDI) has played an important role in Croatia's economic growth since the early 2000s. Yet, FDI in Croatia remains below potential and the impacts of international investment on the domestic economy could be further improved. The FDI Qualities Review of Croatia provides policy recommendations on the design and implementation of a new strategic framework for investment promotion and facilitation in Croatia. It provides an assessment of how FDIcontributes to policy priorities of the European Union including sustainable development, productivity and innovation, job quality and skills development, decarbonisation and regional development.
The review also provides policy guidance on how Croatia could position itself as an attractive location for sustainable investments, supporting EU efforts towards the twin green and digital transition, therefore contributing to Europe’s strategic autonomy and the resilience of the EU Single Market.
Support delivered
Throughout 2023, the OECD undertook an assessment of Croatia’s investment promotion and facilitation framework and submitted a report with key findings and policy recommendations for the Government of Croatia to consider. The action was funded by the European Union via the Technical Support Instrument, and implemented by the OECD, in co-operation with the Directorate-General for Structural Reform Support of the EC.
This review was prepared in close collaboration with the Ministry of Economy and Sustainable Development of the Republic of Croatia, in consultation with an inter-ministerial taskforce specifically created. The report has also benefited from consultations with OECD Investment Committee Delegates, representatives from international organisations, the private sector, civil society and academia, whose experiences on Croatia’s business environment further enriched the assessment. The OECD also engaged in policy dialogue with public and private sector stakeholders and co-organised consultation workshops that took place in Zagreb in May 2023.
Results achieved
The final report was launched launched at an event on 27 November 2023 in Zagreb, co-organised with the Government of Croatia and the European Commission DG REFORM. The reportindicates potential areas for institutional and policy reform to improve Croatia’s investment climate and strengthen the economic, social and environmental benefits of FDI.
The Croatian Ministry of Economy and Sustainable Development is the main national authority benefiting from this Action, and it will implement and coordinate future investment promotion and facilitation activities developed through this Action. To help develop, implement and ultimately use Croatia’s new strategic framework,key stakeholders at the national and the regional level have been consulted.
These stakeholders include, but are not limited to:
i) the Ministry of Economy and Sustainable development;
ii) the Ministry of Foreign and European Affairs and its Directorate for Economic Affairs and Development Cooperation;
iii) the Regional Development Agencies in charge of investment promotion and facilitation at the local level;
iv) foreign and domestic businesses and their associations located in Croatia; and
iv) civil society, academia and international organisations in Croatia.