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From political capitalism to clientelist capitalism? The case of Croatia

Author

Listed:
  • Vladimir Cvijanovic

    () (University of Zagreb, Faculty of Economics and Business, Zagreb, Croatia)

  • Denis Redzepagic

    (The institute of Economics Zagreb, Zagreb, Croatia)

Abstract

The paper analyses the typology of capitalism in Croatia. The Croatian form of capitalism is specific, in form and origin, with links between the pre-independence and post-independence periods, implying that capitalism has gradually evolved from the political during the eighties towards current clientelistic capitalism. The manufacturing focus aims to facilitate the analysis of institutional, political and economic changes over the past forty years, emphasising the implications of institutional changes which have to a great extent, apart from the war of course, influenced the evolution of capitalism. The paper finds that the transition generated a number of costs, mainly generated by the state (fall in employment, manufacturing and social capital). The claim that the manufacturing industry has inherited low competitiveness neglects the necessary discussion on the role of the state in the formation of industrial policy and market actions. It is also an ex post argument for the claim that restructuring should have been implemented prior to privatisation as this would reduce negative impacts. Institutional changes led to a drastic reduction of the role of the manufacturing sector in the economy. The main finding in this paper is that the change in the interaction between the financial and the real sectors of the economy, the educational system and industrial relations system exposed the vulnerability of the current institutional environment. Despite similarities, institutional advantages of political capitalism are lost in the new type of Croatian capitalism, due to the complexity of the double transition process and the institutional or socio-economic particularities.

Suggested Citation

  • Vladimir Cvijanovic & Denis Redzepagic, 2011. "From political capitalism to clientelist capitalism? The case of Croatia," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics, vol. 29(2), pages 355-372.
  • Handle: RePEc:rfe:zbefri:v:29:y:2011:i:2:p:355-372
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    File URL: https://www.efri.uniri.hr/sites/efri.hr/files/cr-collections/2/29-2-cvijanovic.pdf
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    References listed on IDEAS

    as
    1. Johnson, Harry G., 1977. "The monetary approach to the balance of payments : A nontechnical guide," Journal of International Economics, Elsevier, vol. 7(3), pages 251-268, August.
    2. Eric Berr & François Combarnous, 2005. "Vingt ans d'application du consensus de Washington à l'épreuve des faits," Post-Print hal-00244108, HAL.
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    Cited by:

    1. Edgar J. Saucedo A. & Samantha Rullán & Luis F. Villafuerte V., 2015. "Hierarchical capitalism in Latin America: Comparative analysis with other economies," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Eastern Macedonia and Thrace Institute of Technology (EMATTECH), Kavala, Greece, vol. 8(3), pages 69-82, December.

    More about this item

    Keywords

    manufacturing sector; Croatia; types of capitalism; institutions;

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
    • P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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