The Adriatic Institute sent us some uplifting news this morning. The Croatian people have elected a president known as Mr. Clean, who ran on the platform of cleaning up the rampant corruption within Croatia’s government. The topic of corruption has been at the heart of the Adriatic Institute’s efforts from the beginning, and it is wonderful seeing their work pay off and the people of Croatia taking steps to demand real reform in their country. Read this note from Joel Anand Samy, and Natasha Srdoc:
Croatians elect the Social Democratic Party’s Ivo Josipovic – ‘Mr Clean’ as its new president
President-elect Ivo Josipovic – ‘Mr Clean’s’ daunting task and real test: To effectively address political corruption and illicit enrichment in Croatia (a nation governed by a corrupt HDZ political party structure for nearly two decades) and to begin boldly implementing efforts to hold into account his own SDP party and political officials tainted by allegations of corruption.
Mr. Ivo Josipovic a member of the Socialist Democratic Party (SDP) won a decisive victory in Croatia’s presidential election last night by defeating his own party’s Milan Bandic, mayor of Zagreb who was kicked-out of the political grouping for standing as an independent candidate. Bandic was mired in allegations of corruption and illicit renrichment, yet received public endorsements from priests affiliated with the nation’s dominant Roman Catholic church. The first round that took place on December 27, 2009 left the Croatian Democratic Union (HDZ) - Croatia’s ruling party and a group mired in corruption with alleged ties to organized crime with about 12% of the popular vote.
The signal from Croatia’s voters clearly conveyed discontent for rampant political corruption, the rise of organized crime and the country’s very low economic growth over the past two decades. Voter frustration is growing against elected officials that have not implemented principled reforms and pro-growth solutions.
Since its independence in 1991, Croatia has not implemented one notable economic reform initiative. The Balkan nation has limped along over the past two decades with the help of European tourists visiting the nation’s attractive coastal region and the generous remittances from the more than 2 million diaspora residing in Western Europe, North America and Asia-Pacific region.
Today, the country of 4 million inhabitants is best described as the highest taxing nation in Eastern Europe with a VAT that is around 23%, the highest payroll taxes in the world (over 100%), cumbersome regulation and a non-transparent system, and a huge debt with an unemployment rate hovering around 16%. The nation’s best export is its youth and educated mobile citizens leaving Croatia for greener pastures in Europe and beyond.
The political landscape in Croatia reveals an imploding HDZ political party. Two former HDZ officials ran as independents in the recent election, one with allegations of illicit enrichment. Last week’s attempt made by former PM Sanader to return to the political arena and consequently his swift expulsion (within 24 hours) from his own party and the very low results of the recent presidential election showcase a ruling party experiencing drastic decline.
However, as Croatia’s ‘Mr. Clean’ (a title attributed to Mr. Josipovic by both local and international media groups) delivered his victory speech last night in Zagreb, Mr. Josipovic was surrounded by SDP party officials tainted by allegations of corruption. Mr. Josipovic has a daunting task to use the mostly ceremonial role of the presidency and transforming the visible national pulpit to strengthen the rule of law, address political corruption, effectively combat HDZ’s corrupt structures and his own party’s legacy in Croatia.
Mr. Josipovic’s campaign promise must be held into account by Croatia’s voters who supported his pledge to strengthen the rule of law.
<the EU's annual update on Croatia about its judiciary from the 2009 EU Progress Report (released in Oct. 2009):
“The potential for undue political influence over the judiciary remains…Threats against journalists working on cases of corruption and organized crime have been increasing. There has been limited success in identifying and prosecuting perpetrators and instigators of certain physical attacks on journalists. Editors and journalists continue to report undue political pressure. Concerns about freedom of expression persist, including at the local level.”
Mr. Josipovic's real task to establish the rule of law in Croatia begins on February 18, 2010.