Privatization in Croatia

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Privatization in Croatia refers to political and economic reforms which resulted in the privatization of state-owned assets in Croatia, immediately after the breakup of Yugoslavia. Most privatization took place in the 1990s, during the presidency of Franjo Tuđman and the rule of his party Croatian Democratic Union (HDZ). Some aspects of the privatization process are still seen as controversial as the political and economic turmoil, coupled with the events of the simultaneous 1991–95 independence war, are thought to have led to a degree of criminal activity, which plunged the country into an economic depression immediately after it declared independence in 1991.


After the collapse of SFR Yugoslavia, President Tuđman of the Croatian Democratic Union (Croatian: Hrvatska Demokratska Zajednica, HDZ) initiated the process of privatization and de-nationalization in Croatia. However, this was far from transparent and fully legal. The inefficiency and slowness of the new government's legal system, as well as the wider context of the Yugoslav wars, caused numerous incidents. Nepotism was endemic, with the President deciding on a concept of "200 families" that would control all property in Croatia.[1][dead link]

During this period many influential individuals, with the backing of the authorities, acquired state-owned property and companies at extremely low prices, afterwards selling them off piecemeal to the highest bidder for much larger sums. This proved very lucrative for the new owners, but in the vast majority of cases, this sell-off (along with the separation from previously-secured Yugoslav markets) also directly caused the bankruptcy of these successful companies, resulting in the unemployment of thousands and thousands of citizens - a problem with which Croatia still struggles to this day.[citation needed]

It is also beyond doubt that numerous shadowy figures who moved close to Tuđman, the centre of power in Croatian society, profited from this enormously, having amassed wealth with suspicious celerity. Although this phenomenon is common to the chaotic reforms that took place in most post-communist societies (the best example being Russia with her "oligarchs"), the majority of Croats are of the opinion that Tuđman could and should have prevented at least a part of these malfeasances because nothing similar took place in Slovenia which, like Croatia, achieved independence from Yugoslavia. The most common allegations that have emerged point to the likelihood that Tuđman personally profited.[citation needed]

Franjo Tuđman's son Miroslav Tuđman occupied the position of Chief of the HIS, the Croatian secret service, during the time of his father's presidency [2] and in second half of the 1990s (Franjo Tuđman's second tenure), his grandchild, Dejan Košutić, became the owner of Kaptol Bank and emigrated from Croatia to Serbia after his grandfather's death. He returned only in 2005 to launch the information security consulting company Kvadra Savjetovanje.

Franjo Tuđman is often accused of having acquired his personal property by dishonest means.[3]

See also[edit]


  1. ^ Berislav Jelinić (3 August 2009). "Ivić Pašalić tajni ortak Hypo banke" [Ivić Pašalić is a silent partner of Hypo Banka] (in Croatian). Nacional. Archived from the original on 23 July 2012. Retrieved 23 July 2012. Polovinom 90-ih Tuđman je odobrio projekt Ivića Pašalića baziran na Tuđmanovoj ideji o 200 obitelji koje bi vladale hrvatskom imovinom 
  2. ^ "blaskic Footnotes" (in French). pub. 2007. Archived from the original on 2008-03-03. Retrieved 2007-09-26. 701 - Rapport des services croates de renseignement (« HIS ») daté du 21 mars 1994, signé par le directeur du HIS, Miroslav Tudman, et adressé à Franjo Tudman. 
  3. ^ Ivica Djikic (AIM Zagreb) (2001-11-29). "CORRUPTION, CROATIA'S TRAGEDY". aimpress. Retrieved 2007-09-26. 

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