Doing business in Croatia is always a hot topic, especially when it comes to listing the long list of negative experiences people have endured and hoops they have had to jump through in order to get a basic task done. While this isn’t always the case, it’s certainly the rule more than it is the exception, but just when will Croatia learn that the ease of doing business is far more likely to attract potential investors than natural beauty is?
As Ana Blaskovic/Poslovni Dnevnik writes on the 1st of November, 2018, not much has come from the grandiose announcements made by Andrej Plenković earlier this year that 2018 will be the year of reforms for Croatia.
Many people will simply make such a statement for the sake of making it, to keep up the tradition of disliking politicians and the political system, or simply as a protest against the current prime minister, but despite all of the above, this isn’t a malignant interpretation, but a concerning one stated on the Doing Business World Bank scale. Croatia held 51st place last year when it came to the ease of doing business, but in 2018, Croatia returned to 58th place among 190 countries across the world.
The year of reforms indeed.
Discussions about methodology and criteria when it comes to doing business in Croatia can of course be debated and argued over, but they are the same for everyone and whatever conclusion one may arrive to, ultimately, nothing can change the fact that the number on the aforementioned scale is an unfavouravle one, and such scales are a very important tool when it comes to investors deciding whether or not to bring their capital, their skills and know-how, and open jobs here in Croatia, or simply to go somewhere else. The average start-up time for doing business in Croatia is a rather uninspiring 22.5 days, in neighbouring Serbia it is typically 5.5 days, and in Slovenia, it usually takes 8 days.
These figures perfectly illustrate the two areas that remain ”cancerous” to the system and hinder any progress – the judiciary and of course, the public administration. Although a company’s name can be electronically registered at a commercial court, that same court needs an average of two entire weeks just to issue a piece of paper confirming it, and without them and their pieces of paper, it’s impossible to open a company bank account or design and make a company stamp.
The worst of the worst in this situation appears to relate to construction licenses (159th place in the world) where instead of simplification, four new procedures have conveniently been added, so that the process lasts for an utterly ridiculpus 146 days. In a rather embarrassing comparison, Serbia is at 11th place with a 40-day shorter process.
There is a proverbial sea, no, ocean, of such examples and the naked truth is simple yet brutal: Croatia is definitely going in the right direction and is making a lot of progress, but other countries are simply doing much more.
It’s now high time that the Croatian Government realised that Croatia is not above any other country, and that investments don’t come knocking at the door because of natural beauty, warm weather and a nice beach or two, but owing to the ease of doing business, which should be any normal country’s top priority.
With investors frequently having nothing but complaints, red tape taking an insane amount of time to get through and money simply being lost in the ”Bermuda Triangle” that is Croatia, all while trying to make a stamp as if we’ve taken a trip back to the 20th century, the question is – when will the penny finally drop?
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Click here for the original article by Ana Blaskovic for Poslovni Dnevnik
