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Local Public Services and Austerity Measures in Croatia: Adaptations of the Resilient Social Model Through the Central-Local Power and Blame Games

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Local Public Services in Times of Austerity across Mediterranean Europe

Abstract

An economic crisis hit Croatia in the period 2008–2014, simultaneously with the EU pre-accession process, provoking various austerity measures in the public sector. The influence of the economic crisis on local service delivery in the healthcare, water, and waste sectors is analysed within the neo-institutional theoretical approach. The main Government’s austerity strategy in the three analysed sectors has aimed at efficiency through financial consolidation and institutional rearrangements. A muddling-through adaptation to environmental pressures has enabled the Croatian local governments to remain untouched by structural, territorial, or similar measures. They adapted to the new situation using the welfare needs as a barrier against any serious reform, despite an inclination towards centralization caused by the lack of capacities in the vast majority of them. It is concluded that the concept of resilient local authority opens appropriate research questions in times of crisis and wicked problems that befall local governments.

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Notes

  1. 1.

    There are 274 local governments (49.3%) with fewer than 3000 inhabitants.

  2. 2.

    Data on GDP growth rates, unemployment rates, and risk of poverty have been retrieved from Statistical Yearbooks published by the Croatian Bureau of Statistics (https://www.dzs.hr/hrv/publication/stat_year.htm); data on budgetary deficit from Croatian National Bank (https://www.hnb.hr/en/statistics/main-macroeconomic-indicators); and data on public debt from the Ministry of Finance (http://www.mfin.hr/hr/drzavni-proracun-arhiva).

  3. 3.

    Data on local budgets, revenues, and expenditures have been retrieved from the Ministry of Finance’s reports and calculated by the authors (http://www.mfin.hr/hr/lokalni-proracuni).

  4. 4.

    https://eblnews.com/news/croatia/eurobarometer-shows-croatia-hasnt-lost-trust-eu-61012

  5. 5.

    http://vijesti.hrt.hr/345491/spor-oko-novog-plana-za-gospodarenje-otpadom

  6. 6.

    The primary sector encompasses community health centres, healthcare facilities, services providing care for people in their own homes, and institutions providing palliative care. It may also be delivered by private health professionals on a concession base. The secondary sector includes outpatient centres, hospitals, and treatment centres. The tertiary sector includes clinics, clinical hospitals, and clinical hospital centres (Koprić et al. 2016, p. 211).

  7. 7.

    The CHIF is an extra-budgetary, central government institution. Its director and board of directors are appointed by the Government. A major part of its resources (82%) comes from the compulsory health insurance paid by the employers, self-employed persons, farmers, and pensioners with higher pensions. The rest of the revenues come from the central state budget (11%) and other sources (CHIF 2016, p. 3).

  8. 8.

    https://zdravlje.gov.hr/reforma-zdravstvenog-sustava/1491

  9. 9.

    http://www.jutarnji.hr/vijesti/hrvatska/zupanije-zele-da-im-se-bolnice-vrate-bez-novih-dugova/105019/; http://www.novilist.hr/Vijesti/Hrvatska/Neuspjela-sanacija-vraca-gubitase-osnivacima-Opce-bolnice-vracaju-se-u-vlasnistvo-zupanija?meta_refresh=true

  10. 10.

    https://zdravlje.gov.hr/reforma-zdravstvenog-sustava/1491

  11. 11.

    http://dnevnik.hr/vijesti/hrvatska/reforma-zdravstva-docekana-na-noz.html

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Koprić, I., Škarica, M., Manojlović Tomań, R. (2019). Local Public Services and Austerity Measures in Croatia: Adaptations of the Resilient Social Model Through the Central-Local Power and Blame Games. In: Lippi, A., Tsekos, T. (eds) Local Public Services in Times of Austerity across Mediterranean Europe. Governance and Public Management. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-76225-8_8

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