Some thoughts from Indium d.o.o. CEO Milan Račić, published on his LinkedIn page on February 22, 2017, on why Croatia is failing to fix its state-owned companies.
In the space of a quarter-century spanning 14 governments we have consistently failed to fix our state-owned enterprises (SOEs). Despite all the efficiency talk, the counsel of top Croatian economists and pressure from the outside to sell off chunks of our non-core companies, our government continues to play a supersized role in our economy.
SOEs control 30% of the total assets, contribute 18% of the total revenue and employ 12% of all employees in the country. The numbers are even bigger in certain industries, 79% of those employed in utilities and 45% of those employed in the transportation sector are employed by SOEs (EU Commission estimates).