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Institutional development and good governance assessments in Croatia: an extended focus on corruption

This paper examines good governance assessments in Croatia and in selected CEE countries. It aims to confirm that the quality of governance should be evaluated by considering phenomena- or country-specific institutional environment. The paper begins with explanatory definitions of institutions and good governance dimensions and turns to the analysis of good governance assessments in eight selected CEE countries. Based on the analysis of good governance indicators development, slight improvements in all dimensions of good governance for all of the selected countries were observed in a period from 1996 to 2002. An insight to the components of aggregate good governance indicators described related measurement problems. The subjective perceptions of governance quality were emphasized in brief comments on good governance indicators development for Croatia explaining country's persisting low position compared to other selected CEE countries. The general assumption that good governance is connected to economic and social development was tested by using constructed aggregate Good Governance Index (GGI) and Human Development Index (HDI). Spearman rank order correlation analysis confirmed that for all selected countries in 2000 there was a high positive correlation between their GGI rank and HDI rank. The paper proceeds with more detailed analysis of HDI components and good governance indicators. The correlation matrix for CEE countries in 2000 confirmed our hypothesis that government effectiveness, regulatory quality and rule of law positively correlate with control of corruption. The correlation matrix of good governance indicators for Croatia in years 1996, 1998, 2000 and 2002 showed however that the highest correlation exists between voice and accountability and control of corruption, and between government effectiveness and regulatory quality. Corruption as one of the dimension of good governance has been chosen for the case study of Croatia. The paper analysis developments of Corruption Perception Index for selected CEE countries from 1996 to 2002, where the incidence of corruption in Croatia has been perceived decreasing from 1999 onwards. Additionally, the results of various surveys were used to provide institutional background of corruption perceptions in Croatia, both at national and local level. The paper concludes that research on interdependencies among good governance and development indicators as well as on determinants and effects of good governance dimensions remains to be done for Croatia. For the thorough evaluation of good governance assessments, the research model should consider country-specific institutional development as well.

institutional development; good governance; human development; correlation; corruption

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