Background: In 1918 the Croats Serbs and Slovenes formed a kingdom known after 1929 as Yugoslavia. Following World War II Yugoslavia became an independent communist state under the strong hand of Marshal TITO. Although Croatia declared its independence from Yugoslavia in 1991 it took four years of sporadic but often bitter fighting before occupying Serb armies were mostly cleared from Croatian lands. Under UN supervision the last Serb-held enclave in eastern Slavonia was returned to Croatia in 1998.
Environment Current issues: air pollution (from metallurgical plants) and resulting acid rain is damaging the forests; coastal pollution from industrial and domestic waste; widespread casualties and destruction of infrastructure in border areas affected by civil strife
Legislative branch: bicameral Assembly or Sabor consists of the House of Counties or Zupanijski Dom (68 seats - 63 directly elected by popular vote 5 appointed by the president; members serve four-year terms) and House of Representatives or the Zastupnicki Dom (151 seats members elected by popular vote to serve four-year terms)
Judicial branch: Supreme Court judges appointed for eight-year terms by the Judicial Council of the Republic which is elected by the House of Representatives; Constitutional Court judges appointed for eight-year terms by the Judicial Council of the Republic which is elected by the House of Representatives
Political parties and leaders: Action of the Social Democrats of Croatia or ASH [Silvije DEGEN]; Alliance of Croatian Coast and Mountains Department or PGS [Luciano SUSANJ]; Croatian Christian Democratic Union or HKDU [Marko VESELICA president]; Croatian Democratic Independents or HND [Josip MANOLIC president]; Croatian Democratic Union or HDZ [Vladimir SEKS acting president]; Croatian Party of Rights or HSP [Anto DJAPIC]; Croatian Party of Rights 1861 or HSP 1861 [Dobrislav PARAGA]; Croatian Peasant Party or HSS [Zlatko TOMCIC]; Croatian People's Party or HNS [Radimir CACIC president]; Croatian Social Liberal Party or HSLS [Drazen BUDISA president]; Independent Democratic Serb Party or SDSS [Vojislav STANIMIROVIC]; Istrian Democratic Assembly or IDS [Ivan JAKOVCIC]; Liberal Party or LP [Vlado GOTOVAC president]; Party of Democratic Action or SDA [Semso TANKOVIC]; Primorje Gorski Kotar Alliance [leader NA]; Serbian National Party or SNS [Milan DJUKIC]; Slanvonsko-Baranja Croatian Party or SBHS [Damir JURIC]; Social Democratic Party of Croatia or SDP [Ivica RACAN]
International organization participation: BIS CCC CE CEI EBRD ECE FAO IADB IAEA IBRD ICAO ICFTU ICRM IDA IFAD IFC IFRCS IHO ILO IMF IMO Inmarsat Intelsat Interpol IOC IOM ISO ITU NAM (observer) OAS (observer) OPCW OSCE UN UNCTAD UNESCO UNIDO UPU WHO WIPO WMO WToO WTrO (applicant)
Economy overview: Before the dissolution of Yugoslavia the Republic of Croatia after Slovenia was the most prosperous and industrialized area with a per capita output perhaps one-third above the Yugoslav average. Croatia faces considerable economic problems stemming from: the legacy of longtime communist mismanagement of the economy; damage during the internecine fighting to bridges factories power lines buildings and houses; the large refugee and displaced population both Croatian and Bosnian; and the disruption of economic ties. Western aid and investment especially in the tourist and oil industries would help restore the economy. The government has been successful in some reform efforts - partially macroeconomic stabilization policies - and it has normalized relations with its creditors. Yet it still is struggling with privatization of large state enterprises and with bank reform. The recession that began at the end of 1998 continued through most of 1999 and GDP growth for the year was flat. Inflation remained in check and the kuna was stable. The death of President TUDJMAN in December 1999 and the defeat of his ruling Coatian Democratic Union or HDZ party in parliamentary and presidential elections in January 2000 has ushered in a new government committed to economic reform but faced with the challenge of halting the economic decline.
Industries: chemicals and plastics machine tools fabricated metal electronics pig iron and rolled steel products aluminum paper wood products construction materials textiles shipbuilding petroleum and petroleum refining food and beverages; tourism
Disputes international: Eastern Slavonia which was held by ethnic Serbs during the ethnic conflict between the Croats and the Serbs was returned to Croatian control by the UN Transitional Administration for Eastern Slavonia on 15 January 1998; Croatia and Italy made progress toward resolving a bilateral issue dating from World War II over property and ethnic minority rights; significant progress has been made with Slovenia toward resolving a maritime border dispute over direct access to the sea in the Adriatic; Serbia and Montenegro is disputing Croatia's claim to the Prevlaka Peninsula in southern Croatia because it controls the entrance to Boka Kotorska in Montenegro; Prevlaka is currently under observation by the UN Military Observer Mission in Prevlaka (UNMOP)
Illicit drugs: transit point along the Balkan route for Southwest Asian heroin to Western Europe; a minor transit point for maritime shipments of South American cocaine bound for Western Europe