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If the functioning of the fiscal system implies the functioning of democracy, then the interest in its smooth operation is understandable. Particularly important is its segment concerning the financing of local government & self-government. Well-regulated relations between the state & local communities is the basic prerequisite of economic, social, & any other development. The decentralization of the fiscal system in the Republic of Croatia is one of the barriers standing in the way of achieving these goals. The crucial question is the acceptable degree of decentralization, economically & politically. The experiences of other European countries may serve as a basis for regulating the fiscal relations among the higher & lower levels of government. The central government should retain only those responsibilities that cannot be carried out by the units of local government & self-government. 3 Tables, 25 References. Adapted from the source document.

If the functioning of the fiscal system implies the functioning of democracy, then the interest in its smooth operation is understandable. Particularly important is its segment concerning the financing of local government and selfgovernment Wellregulated relations between the state and local conununities is the basic prerequisite of economic, social and any other development. The decentralization of the fiscal system in the Republic of Croatia is one of the barriers standing in the way of achieving these goals. The crucial question is onlv which is the acceptable degree of the decentralization, economically and politically. The experiences of other European countries may serve as a basis for regulating the fiscal relations among the higher and the lower levels of goverrilnent. The central government should retain only those responsibilities that cannot be carried out by the units of local government and selfgovernment. (SOI : PM: S. 206)

Croatia, together with some thirty countries is waiting to be admitted into the World Trade Organization. The membership in WTO-u is the first step in the membership in CEFTA and one of the overture steps in joining the European Union. Apart from the undeniable benefits that the WTO membership brings, there are numerous pitfalls and sacrifices facing Croatia which at the beginning may have a detrimental effect on some sectors of economy. Among the sectors most vulnerable to global competition is the sector of agriculture and food production. Its position on the local market will be significantly weakened, since it is uncompetitive even at the present level of protective tariffs. The central issue in the negotiations for admitting a country or a group of countries into this organization are protective tariffs in this sector. There is no doubt that Croatia will in reasonable time have to reduce these protective measures to the level required by the WTO. What is that going to mean for Croatian agriculture? To what extent is Croatian agriculture (un)prepared to meet these demands? Which are the possible consequences, regarding the strategic importance of agriculture for any country, Croatia being no exception to the rule? (SOI : PM: S. 112)

EU's agrarian policy has always been - and remains - a complex issue of the Unions overall economic policy. Although agrarian policy was at first central for the Union and served as a cohesive and integrating factor, in time it became a bone of contention, a source of conflicts and feuding within the Union. Solving the problem of agrarian policy on the eye of the third millennium is one of the Union's priorities. The problems of agricultural subsidies in the Union, its eastern expansion and the demands of the WTO, are far from being easy tasks. Besides, agrarian policy is not solely an economic matter, but also a social (particularly rural), ecological, cultural, and political problem. The problem of agriculture has always been considered a political problem and resolved as such. (SOI : PM: S. 70)

The debtors' crisis at the end of the 20 century is a hard reality facing the transitional countries. (And not only them.) However, to borrow or not to borrow, is a false dilemma. In the situation when in most transitional countries the local accumulation is insufficient for financing the economic development and completing the transitional process, the only alternative is borrowing. This is particularly unavoidable when the influx of foreign capital via direct investments is meagre. This is also true for the Republic of Croatia, in which the level of direct investments is, for the time being, very modest. That is why borrowing, particularly from foreign countries, calls for a high degree of caution, a well-thought out approach to borrowing, and the rational use of the loans. (SOI : S. 204)

Croatia, together with some 30 countries, is waiting to be admitted into the World Trade Organization. Membership in the WTO is the first step in membership in CEFTA & one of the overture steps in joining the European Union. Apart from the undeniable benefits that WTO membership brings, there are numerous pitfalls & sacrifices facing Croatia, which at the beginning may have a detrimental effect on some sectors of economy. Among the sectors most vulnerable to global competition is that of agriculture & food production. Its position on the local market will be significantly weakened, since it is uncompetitive even at the present level of protective tariffs. The central issue in the negotiations for admitting a country or a group of countries into this organization are protective tariffs in this sector. There is no doubt that Croatia will have to reduce these protective measures to the level required by the WTO. What is that going to mean for Croatian agriculture? To what extent is Croatian agriculture (un)prepared to meet these demands? What are the possible consequences in light of the strategic importance of agriculture for any country, Croatia being no exception? 1 Table, 18 References. Adapted from the source document.

The debtors' crisis at the end of the 20th century is a hard reality facing transitional countries (and others as well). However, to borrow or not to borrow is a false dilemma. In the situation when in most transitional countries, the local accumulation is insufficient for financing economic development & completing the transitional process, the only alternative is borrowing. This is particularly unavoidable when the influx of foreign capital via direct investments is meager. This is also true for the Republic of Croatia, in which the level of direct investments is, for the time being, very modest. Borrowing, particularly from foreign countries, calls for a high degree of caution, a well-thought out approach to borrowing, & the rational use of the loans. 5 Tables, 14 References. Adapted from the source document.

EU's agrarian policy has always been -- & remains -- a complex issue of the Union's overall economic policy. Although agrarian policy was at first central for the Union & served as a cohesive & integrating factor, in time it became a bone of contention, a source of conflicts & feuding within the EU. Solving the problem of agrarian policy on the eve of the third millennium is one of the EU's priorities. The problems of agricultural subsidies in the EU, its Eastern expansion, & the demands of the WTO are far from being easy tasks. Besides, agrarian policy is not solely an economic matter, but also a social (particularly rural), ecological, cultural, & political problem. The problem of agriculture has always been considered a political problem & resolved as such. 1 Table, 15 References. Adapted from the source document.

The ownership structure is one of the determining factors in the development of all agricultures; Croatia's is not an exception to this rule. I the long run, the ownership structure is undoubtedly going to determine the direction of the development of the market-oriented Croatian agriculture. The process of building the ownership structure appropriate to the market economy is neither simple not fast, let alone cheap. An overnight change in the ownership structure is neither possible nor prudent. The existing ownership structure of Croatian agriculture is the result of a century and a half long historical development. Socio-economic and political factors exerted a strong influence onthe process of the ownership structure's formation. Today Croatia has an "atomized" estate of only 2.9 hectares. A century ago the average size of estates was 8 hectares. This fragmentation is a direct result of the agrarian reform and colonization in the second Yugoslavia when the land maximum was reduced to 10 hectares. The existing - very unfavorable structure - should be in the transitional period gradually adapted to the family economy as the basis of future development, which will be market-oriented, cost-effective, and profitable. (SOI : PM: S. 238)

The ownership structure is one of the determining factors in the development of all agricultures; Croatia's is not an exception to this rule. In the long run, the ownership structure is undoubtedly going to determine the direction of the development of the market-oriented Croatian agriculture. The process of building the ownership structure appropriate to the market economy is neither simple not fast, let alone cheap. An overnight change in the ownership structure is neither possible nor prudent. The existing ownership structure of Croatian agriculture is the result of a century & a half long historical development. Socioeconomic & political factors exerted a strong influence on the process of the ownership structure's formation. Today Croatia has an "atomized" estate of only 2.9 hectares. A century ago the average size of estates was 8 hectares. This fragmentation is a direct result of the agrarian reform & colonization in the second Yugoslavia when the land maximum was reduced to 10 hectares. The existing -- very unfavorable structure -- should be in the transitional period gradually adapted to the family economy as the basis of future development, which will be market-oriented, cost-effective, & profitable. 3 Tables, 23 References. Adapted from the source document.