Croatia

CROATIA IS THE FORMER constituent republic of the Socialist Federal Republic of Yugoslavia, which gained independence and international recognition in 1992. Croatia borders Bosnia and Herzegovina, Hungary, Serbia and Montenegro (north); Serbia and Montenegro (south); and Slovenia. Croatia is composed of the historic provinces Istria, Dalmatia, and Slavonia, with a population of 4,495,904 (2005). The ethnic composition of Croatia is 89.6 percent Croatian (77.9 percent before the end of the civil war in 1995), 4.5 percent Serbian (12.2 percent, respectively), and 5.9 percent other, including Bosniak/Muslims, Hungarians, Italians, Czech, and Roma. Croats speak the Croatian language, and the majority is Roman Catholic (87.8 percent).

With the exception of Slovenia, Croatia was the most prosperous and industrialized area among Yugoslav republics. After a recession, the Croatian economy revived in 2000, with tourism, banking, and public investments leading the way. The rate of growth was 3.7 percent in 2004, while Gross Domestic Product (GDP) per capita was 11,200 (purchasing power parity). Unemployment, however, remains high, at 13.8 percent. While absolute poverty is low in Croatia, significant poverty exists in the rural areas and certain ethnic groups (Serbs, Albanians, and Roma).

Croats, along with other South Slavs, moved into the valley of the Sava and Drava Rivers in the course of the 6th and 7th centuries. Prosperous during the reign of King Tomislav, medieval Croatia lost its independence to Hungary in 1102. Following the collapse of the Serbian empire, a large number of fleeing Serbs found a refuge in bordering regions of Croatia. The territory known as the Military Border enjoyed a considerable autonomy in the Austrian empire and became bitterly contested between Croats and Serbs. Following World War I and the collapse of the Austro-Hungarian Empire, Croatian lands became a part of the Kingdom of the Serbs, Croats, and Slovenes. During World War II, Croatian nationalists, who opposed the common state, formed a Nazi puppet Independent State of Croatia. After World War II, Croatia became a part of Yugoslavia.

Dissatisfied with the status of Croatia within the Yugoslav Federation, Croatian nationalists continued to pursue a drive toward independence, which culminated in the proclamation of independence in June 1991. This led to the outbreak of hostilities among the Serbs who lived in Croatia, the Croats, and the Yugoslav People's Army. In 1995, with tacit approval of international community, the Croatian army launched a major offensive, which resulted in expulsion of more than 200,000 Serbs from Croatia.

Today Croatia is a parliamentary democracy. The head of state is the president, who is commander in chief of the armed forces and also formally appoints the prime minister based on the parliament's recommendation.

Human Development Index Rank: 45

Human Poverty Index Rank: Not included.