Slovenia

SLOVENIA IS A FORMER constituent republic of the Socialist Federal Republic of Yugoslavia, and gained independence and international recognition in January 1992. With its historical ties to western Europe, Slovenia enjoys a Gross Domestic Product (GDP) per capita substantially higher than that of the other transitioning economies of central Europe. Privatization of the economy proceeded at an accelerated pace from 2002 through 2004, especially in the banking, telecommunications, and public utility sector. The growth of real GDP was 3.9 percent and GDP per capita was $19,600 (purchasing power parity) in 2004.

Structural reforms to improve the business environment have allowed for greater foreign participation in Slovenia's economy and have helped to lower unemployment. While further measures to curb inflation and corruption are still needed, the Slovenian economy is strong and competitive. Slovenia is the wealthiest country in central Europe, with a low poverty level when compared with other countries in transition.

According to the data, the risk of poverty diminished from 12.9 percent in 2001 to 11.9 percent in 2002. The risk of poverty in Slovenia is thus considerably below the European Union (EU) level, which is 15 percent. In a survey by the Dublin Foundation, Slovenia ranked third among the EU member states with the lowest at-risk-of-poverty rate, immediately after the Czech Republic and Sweden. The share of GDP for social benefits did not increase considerably (in 2002 it amounted to 25.4 percent) and was below the EU average (which in 2001 amounted to 27.5 percent). This is an indication of the increased effectiveness of Slovenia's system of social benefits.

Slovenian tribes arrived in the Balkan peninsula in the 6th century. After failing to establish an autonomous state, the Slovenes fell under foreign rule in 745 and remained subdued until 1918. Slovenes, although not entirely, were liberated following the formation of the Kingdom of the Serbs, Croats, and Slovenes on December 1, 1918. After World War II, the Slovenian republic was established in 1945. On June 25, 1991, Slovenia unilaterally seceded from Yugoslavia. Slovenia joined the North Atlantic Treaty Organization (NATO) and the EU in 2004.

Slovenia is a parliamentary democratic republic. The head of the state is a president who is elected by popular vote every five years, and the executive branch is headed by a prime minister and cabinet, which are elected by parliament. The Slovenian parliament is bicameral, with a National Assembly (90 seats) and a National Council (22 seats), and elections are held every four years. There are eight regions and 193 municipalities in Slovenia, 11 of which have urban status.

Human Development Index Rank: 26

Human Poverty Index Rank: Not included.