World Bank to Help Improve Business Environment and Justice Service Standards in Croatia

The World Bank Board of Executive Directors today approved a loan to the Republic of Croatia for the Justice for Business Project in the amount of EUR 100 million (US$110.3 million equivalent) aimed at improving business regulatory procedures and justice service standards for businesses and citizens.

The project will support the implementation of reforms that will improve the country’s business environment and justice sector services under the leadership of the Ministry of Justice, in coordination with the Ministry of Economy, Entrepreneurship and Crafts and the Ministry of Construction and Physical Planning. A first set of activities will focus on reducing the administrative burden for companies to interact with government, focusing on removing regulatory barriers for firms to enter the market and operate and by simplifying dealing with construction permits and improving market functioning in the construction sector.

The project will also improve justice services. For example, the use of electronic services will be expanded to speed up response times and integrate case management systems across different courts. The Zagreb, Vinkovci, Kutina and Varazdin courthouses will be rehabilitated and upgraded for better court performance and user experience, and these transformational investments will help develop standard investment designs to be replicated across the country.

“Increasing the capacity of the state to swiftly respond to the needs of citizens and firms, particularly during these times of crisis, is especially important. Improved justice sector infrastructure and services will benefit both citizens and businesses. Businesses will benefit from having a simpler and more transparent way to interact with government agencies and faster and more responsive mechanisms to interact with the courts, and all citizens will benefit from more effective, efficient and reliable administration of justice and rule of law,” said Elisabetta Capannelli, World Bank Country Manager for Croatia and Slovenia. “In such a difficult time for Croatian citizens, caused by the multiple emergencies to the health system, the city of Zagreb and the economy, this project can also contribute to providing an economic and confidence boost to the country.”

In the past years, Croatia has made significant efforts to improve the country’s public sector performance, which is falling behind European Union (EU) averages across most governance, business environment and human capital indicators. While key government institutions, most notably the public administration and the judiciary, are still underperforming according to both EU and global benchmarks, the Government of Croatia is committed in its effort to modernization its administration.

Since joining the World Bank Group in 1993, Croatia has benefited from the World Bank’s financial and technical assistance, policy advice, and analytical services. To date, the World Bank has supported more than 50 operations amounting to around US$3.5 billion. The Bank’s current engagement focuses on transport, health, innovation, business environment, land administration, agriculture, economic development of the Slavonia regions and support for the preparation of the National Development Strategy.

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