Can Local Governments in Croatia Cope with more Responsibilities?

  • Dubravka Jurlina Alibegović The Institute of Economics, Zagreb
  • Sunčana Slijepčević The Institute of Economics, Zagreb
  • Zeljka Kordej-De Villa The Institute of Economics, Zagreb
Keywords: fiscal decentralization, local government units, fiscal capacity, Croatia

Abstract

The decentralization process started in 2001 by broadening the responsibilities of local self-government units and changing the sources of financing public functions. In spite of these steps toward decentralization, today Croatia exhibits low level of fiscal decentralization compared to EU and SEE countries. In the paper we show that large differences in fiscal capacity between local government units and their large reliance on received grants represent one of the main barriers for further decentralization process. Based on the analysis of the results of conducted interviews with representatives of local and regional units, we present recommendations for further process of decentralization.

Author Biographies

Dubravka Jurlina Alibegović, The Institute of Economics, Zagreb
Senior Research Associate
Sunčana Slijepčević, The Institute of Economics, Zagreb
Research Associate
Zeljka Kordej-De Villa, The Institute of Economics, Zagreb
Senior Research Associate
Published
2013-07-01
Section
Conference Paper