Recommendation For A Typology Of Cities And Municipalities In Croatia According To Development Level

The goal of this paper is to create a typology of municipalities according to development level, using what little data are available. Both economic (municipal income, employment, and entrepreneurship) and demographic (educated and immigrant population) indicators are used. Three economic types of municipality were defined using three economic indicators: income per capita (used as the main indicator); number of residents per entrepreneur; and share of employed in the total population. Following this, we defined demographic types of municipalities, using the three aforementioned economic indicators as well as two demographic indicators: average education level of the population and share of immigrants in the total population. Education level of the population is more important than employment or entrepreneurship for economic development. The typology indicates an above-average level of development on the Adriatic coast and islands, as well as in large cities and the immediate surroundings of Zagreb. In contrast, the typology also shows below-average development levels in southeastern Slavonia and northwestern Croatia. Areas of special state concern, such as those that were occupied during the Croatian War of Independence, have above-average municipal income and below-average education levels, employment, and entrepreneurship. Tourism, activities in large cities, and (paradoxically) state subsidies in areas of special state concern contribute the most to development level, while industry and (especially) agriculture do not make significant contributions to development level. The tradition of managing population size is no longer significant for development level, because a large number of sparsely-populated "new" municipalities have significantly higher incomes than "old' municipalities. This paper should serve as a supplement to the frequent discussions regarding the optimization of Croatia's system of local government units.