Assessments in Croatia: An Extended Focus on Corruption

Abstract: This paper examines good gO\'Cfnance assessments in Croatia and in selected CEE countries. It aims to confirm that the quality of governance should he evaluated by considering phenomena- or country-specitic institutional environment. Based on the anal: sis of good governance indicators slight improvements in all dimensions of good governance for all of the selected counll'ies were observed in a period from 1990 to 2002. ('sing constructed aggregate Good Governance Index (GGI) and Human Development Index (I-IDI) tested the general assumption that good governance is connected to economic and social development. Spearman rank order correlation analysis confirmed that for all selected countries in 2000 there was a high positive correlation bctween their C;(,I rank and l-lDI rank. The correlation matrix for CEE countries in 2000 confirmed our hypothesis that government dfeetivcness; regulatory quality and rule of Imv positiwly correlate with control of corruption. Thc paper concludes that research on interdependencies among good governance and uen;lopment indicators as well as on determinants and effects ofgood governancc dimensions remains to be done for Croatia. JEL Classification: 1'37, III