Croatia

Introduction

Croatia’s global development policy framework is determined by its size, capacities and challenges, as well as its post-war transition experience – which constitutes its comparative advantage more than the financial amounts that Croatia could provide for development co-operation. Croatia’s policy has undergone significant changes in recent times and is underpinned by the principles of effectiveness, collaboration and partnership with partner countries. In addition, Croatia sees development co-operation partnerships as the predecessor of wider political and economic co-operation. Croatia is moving away from traditional forms of support (i.e. inter-institutional official development assistance [ODA]) towards more technical and other non-financial forms of support that encourage knowledge sharing and experience as well as mutual learning.

Official development assistance

In 2018, Croatia provided USD 54.9 million in total ODA (preliminary data). This represented 0.1% of gross national income (GNI). Since Croatia did not extend any loans in 2018, its total ODA is the same using the new “grant-equivalent” methodology (see the methodological notes for further details) adopted by DAC members on their reporting of 2018 data as a more accurate way to count the donor effort in development loans and the “cash-flow basis” methodology used in the past. Total ODA for 2018 represented a decrease of 1.8% in real terms from 2017.

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In 2017, 26% of gross ODA was provided bilaterally, of which 26% was channelled through multilateral organisations (multi-bi/non-core contributions). Croatia allocated 74% of total ODA as core contributions to multilateral organisations.

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In 2017, 78.6% of bilateral ODA was programmed with partner countries, making Croatia’s share of country programmable aid much higher than the average for development providers beyond the DAC of 27.4% (see the methodological notes for further details on country programmable aid). Project-type interventions accounted for 91.9% of this aid.

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In 2017, Croatia channelled 58.2% of gross bilateral ODA through the public sector (down from 100% in 2016). In 2017, Croatia also channelled 10% of its bilateral aid through universities or other teaching and research institutions and 0.4% through public-private partnerships, but not through private sector institutions. See the methodological notes for further details on channels of delivery.

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In 2017, USD 0.5 million of gross bilateral ODA was channelled to and through civil society organisations (CSOs). Between 2016 and 2017, ODA channelled to and through CSOs increased as a share of bilateral aid (from 0% to 3.4%).

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In 2017, bilateral ODA was primarily focused on Europe. USD 13.2 million was allocated to Europe. USD 0.2 million was allocated to sub-Saharan Africa. Bilateral allocations to sub-Saharan Africa increased compared to 2016.

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In 2017, 97.7% of gross bilateral ODA went to Croatia’s top 10 recipients. Its top 10 recipients are in Europe, where Croatia has programmes with six countries, in line with its focus on its immediate neighbourhood. Bosnia and Herzegovina received the bulk of this aid (USD 10.1 million). Support to fragile contexts reached USD 0.5 million in 2017 (3.7% of gross bilateral ODA). Learn more about support to fragile contexts.

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In 2017, 3.6% of Croatia’s gross bilateral ODA (USD 0.5 million) was allocated to the least developed countries (LDCs). This is up from 0% in 2016 and is lower than the average of providers beyond the DAC of 12.3% in 2017. Upper middle-income countries received the highest share of bilateral ODA in 2017 (93.4%), noting that 1.9% was unallocated by income group. Within bilateral ODA that is unallocated by country, Croatia estimates that 3.6% is directed to the LDCs.

At 0.02% of GNI in 2017, total ODA to the LDCs was lower than the UN target of 0.15-0.20% of GNI. This includes imputed multilateral flows, i.e. making allowance for contributions through multilateral organisations, calculated using the geographical distribution of multilateral disbursements.

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In 2017, 74.9% of bilateral ODA commitments was allocated to social infrastructure and services, for a total of USD 11.3 million, with a strong focus on support to health (USD 6.6 million). Humanitarian aid amounted to USD 3 million. Croatia also committed USD 0.5 million (3.2% of bilateral allocable aid) to promote aid for trade and improve developing countries’ trade performance and integration into the world economy in 2017.

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Institutional set-up

The Law on Development Co-operation and External Humanitarian Assistance, adopted in 2008, provides the legal framework for Croatia’s development co-operation. The National Strategy for Development Cooperation of the Republic of Croatia for the period from 2009 to 2014 sets out the basic parameters for the country’s development co-operation. A new National Development Co-operation and Humanitarian Aid Strategy is being drafted.

The Ministry of Foreign and European Affairs (Directorate-General for Multilateral and Global Affairs, Directorate for Global Development Policies, Development Cooperation and Humanitarian Aid) has overall responsibility for policy formulation, management and co-ordination of Croatia’s development co-operation activities. Other line ministries (in particular the Ministry of Finance, the Ministry of Health and Social Welfare, as well as the Ministry of Science, Education and Sports) implement development projects within the scope of their competences.

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Reporting to the OECD since 2012.

Croatia