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Viewing cable 08ZAGREB794, MODERNIZING CROATIA'S CIVIL SERVICE AND PUBLIC

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Reference ID Created Released Classification Origin
08ZAGREB794 2008-11-18 13:10 2011-08-25 00:00 UNCLASSIFIED Embassy Zagreb
VZCZCXRO3767
PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHVB #0794/01 3231310
ZNR UUUUU ZZH
P 181310Z NOV 08 ZDK
FM AMEMBASSY ZAGREB
TO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEHC/SECSTATE WASHDC PRIORITY 8784
INFO RUEAIIA/CIA WASHDC PRIORITY
UNCLAS SECTION 01 OF 02 ZAGREB 000794 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV ECON HR
SUBJECT: MODERNIZING CROATIA'S CIVIL SERVICE AND PUBLIC 
ADMINISTRATION: A WORK IN-PROGRESS 
 
1. (U) SUMMARY:  As Croatia approaches membership in the EU, 
considerable money and legislative effort are being expended 
on increasing the professionalization of Croatia's civil 
service and reforming its functioning to allow for more 
transparency, accountability, and efficiency.  The 
implementation of the final aspects of the Civil Servant Act 
has, in theory, increased the authority of career civil 
servants at the expense of political appointees, but it has 
not been fully embraced across all government ministries. 
While this law has spurred some needed re-organization of 
government functions, it has also needlessly obscured 
leadership roles in some government ministries.  The law 
re-vamping public administration procedures is still in 
review in parliament, and if the current draft survives and 
it is fully implemented it will be a powerful initiative to 
simplify government red tape and improve the business 
environment.  END SUMMARY 
 
Professionalization of the Civil Service Uneven 
----------------------------------- 
 
2. (U) A new Civil Service Law was passed in 2005, but the 
final provisions were not to be implemented until 60 days 
after the general election in 2007.  These final provisions 
required that formerly politically appointed leadership 
positions -- typically positions below that of State 
S\ecretary, such as Assistant Ministers or Deputy State 
S\ecretaries of central government bureaus -- must become 
career civil service jobs, filled via open competitions, but 
retain their former decision making power.  (Note: The title 
of Assistant Minister was abolished and these positions have 
been renamed Department or Office Directors)  Full 
implementation of the civil service act remains incomplete, 
as government ministries are obliged to publicly post 
vacancies for these newly minted civil service jobs, rather 
than grandfather in the current political appointees holding 
these positions. 
 
3. (U) The Foreign Ministry, for example, has only partially 
removed politically appointed officials below the rank 
State-Secretary.  Other ministries have simply elevated the 
rank of political appointees to that of State Secretary, 
obscuring leadership roles.  The Finance Ministry, previously 
with only one State Secretary and clear chain of command, now 
has five State Secretaries from four different political 
parties.  Overall, Sanader's second term has seen the 
mushrooming of State Secretary level positions, growing from 
around 36 in his previous term to 76 currently.  (Note: State 
S\ecretaries report directly to the Minister of the relevant 
government institution.)  The ministries of Justice, Economy, 
and Agriculture have also only partially implemented the law. 
 The real laggard, however, is the public administration 
bureau itself, which has yet to even begin implementation and 
where career civil servants still have almost no decision 
making authority.  Meanwhile, the good news is that the act 
has spurred some ministries, such as the MFA, to at least 
reorganize some functions and stream-line within the 
mid-levels of their bureaucracy. 
 
Reforming Public Administrative Procedures Just Getting Off 
the Ground 
-------------------------------------- 
 
4. (U) While personnel reforms move slowly, and despite 
headwinds from an entrenched bureaucracy, a draft law on 
reforming Croatia's public administrative procedures has 
passed its first reading in parliament, and is likely to be 
adopted in first half of 2009.  This law modernizes many 
aspects of public administrative procedure with 
e-administration initiative, as well as simplifying the 
myriad of "special procedures" that govern such activities as 
telecommunication, real estate zoning, health, education, and 
some business permitting.  Crucial to the success of this 
draft law will be provisions that allow parliament to 
transfer decision making authority and competency over a 
variety of regulatory decisions to the public administrative 
bureau to improve efficiency.  Currently special procedures 
that cover a myriad of sectors have to be legislatively 
amended in parliament to accommodate new business realities 
or changes in technology. 
 
Comment 
------- 
 
5. (U) The harmonization of public administration staffing 
and procedures with European norms is a giant leap forward 
from many of the current governing provisions that were 
adopted in 1950s and designed to give appointed Communist 
Party elites nearly complete decision making authority, with 
little regard to public disclosure or efficiency.  The 
implementation of the staffing law, even if progressing 
 
ZAGREB 00000794  002 OF 002 
 
 
unevenly, allows for greater decision making by career civil 
servants that should facilitate greater transparency and 
accountability in government function.  Likewise, pending 
changes to public administrative procedures could further 
improve the transparency and efficiency of Croatia's 
regulatory environment, much to the benefit of the business 
climate.  However, it will take a paradigm change by a new 
generation of civil servants to fully embrace the authorities 
being granted them and to break with the old culture of 
deferring decisions to the highest levels of government.  But 
the EU has provided a great deal of funding and technical 
support for these reform efforts since 2003 and their efforts 
are beginning to bear fruit.  END COMMENT 
Bradtke