Croatia Bolsters Anti-Poverty Efforts with EU, World Bank Aid

ZAGREB, September 11, 2024 - The Government of Croatia is committed to reducing the number of people at risk of poverty or social exclusion. To this end, the Ministry of Labor, Pension System, Family, and Social Policy (MLPSFSP) initiated an important project to build a modern comprehensive policy framework for the fight against poverty and social exclusion, based on an evidence-based diagnostic of poverty and social exclusion at sub-national level.

The technical assistance Project - Support to Improve Poverty Diagnostic and Social Policies Monitoring, the results of which were presented today, focused on supporting the MLPSFSP in developing a practical methodology to effectively use subnational administrative data on poverty and social exclusion in Croatia. The project was funded by the European Union via the Technical Support Instrument and implemented by the World Bank, in cooperation with the European Commission (Directorate General for Structural Reforms of the European Commission).

The activities under this project will have multiple benefits for all stakeholders. Firstly, through getting a more granular picture of poverty and social exclusion at the subnational level, policy makers will be in a position to develop better targeted and more comprehensive social policies. Secondly, an advanced monitoring and reporting system for the five national social strategic plans will enable the Government to implement evidence-based social policy, evaluate progress, to adjust its course of action as needed, and to demonstrate results. And finally, enhanced stakeholder engagement mechanisms will ensure that everyone contributes to the social policymaking cycle - government institutions, social partners, academia, civil society, and beneficiaries themselves.

"The crises that Croatia has recently faced have additionally indicated the need to strengthen the social welfare system, but also the role of the state in preserving jobs, pensions and social benefits. Our fight against poverty is based on the establishment of a social safety net that ensures that no one is left behind. Guided by the principle of solidarity towards each individual, especially towards children, young people, people with disabilities, the elderly and those at risk of poverty, the Government of the Republic of Croatia always places people, their needs and improving the standard of living at the center of its policies," emphasized Margareta Mađerić, State Secretary, Ministry of Labor, Pension System, Family and Social Policy.

"Europe has a unique quality of life, our social market economy model serves both our economies and our societies, ensuring that no one is left behind. The European Pillar of Social Rights is the compass for upward convergence towards better working and living conditions in the EU. Therefore, I am happy we were able to support Croatia through our Technical Support Instrument in establishing efficient methodologies to track poverty and social exclusion, especially on sub-national level. This will empower the Croatian authorities in monitoring and evaluating social policy measures and in designing support measures targeted at the most vulnerable," stated Nathalie Berger, Director for Support to Member State's Reforms, European Commission.

"Reliable data and solid evidence are crucial for understanding the social, economic, and environmental factors that shape development outcomes. Building a comprehensive data ecosystem requires coordinated efforts from various stakeholders and continuous development of institutional and individual capacities. These initiatives ensure data quality and integrity, supporting informed decision-making on poverty-targeted policies and strategic resource allocation," said Ambar Narayan, World Bank Practice Manager for Poverty and Equity, Europe and Central Asia. "We are pleased that the World Bank remains the government's partner of choice in creating a fairer and more inclusive Croatia. Together, we look forward to making a lasting difference in the lives of those who need it most."

The event provided a platform to present and discuss the knowledge gains from this project, and to highlight the importance of these findings in the context of strategic planning and the use of EU funds. Participants, comprising among other representatives of the Ministry of Labor, Pension System, Family and Social Policy, the Ministry of Health, the Ministry of Justice, Public Administration and Digital Transformation, the Tax Administration, the Croatian Health Insurance Fund, the Croatian Bureau of Statistics, the European Commission, the World Bank, academia and civil society organizations exchanged ideas on how to jointly enhance the implementation and sustainability of policy solutions identified as part of the project.

About the Technical Support Instrument

The Technical Support Instrument helps EU Member States design and implement resilience-enhancing reforms by providing expertise to national authorities. The support is on demand and can include strategic and legal advice, studies, training and expert visits on the ground.

Member States can request support to:

  • implement resilience-enhancing reforms in the context of EU economic governance, such as those arising from country-specific recommendations under the European Semester and by virtue of implementing EU law
  • prepare, amend, implement and revise national recovery and resilience plans under the Recovery and Resilience Facility
  • implement economic adjustment programs
  • implement reforms undertaken at their own initiative

The support is delivered by a wide range of providers, including international organizations, public bodies, the private sector or the Commission's own staff.

Technical Support Instrument - European Commission (europa.eu)

About the World Bank in Croatia

The World Bank has been a partner to Croatia over 30 years. During this period, the Bank has supported more than 50 projects, totaling almost $5 billion and provided knowledge and technical assistance to help strengthen institutions and support policymaking through more than 330 reports and studies.

The World Bank currently provides knowledge, technical assistance and financing in the areas of, digital transformation and the green transition of the economy, justice service delivery, education, business environment, land administration, science and technology, post-earthquake reconstruction of key health and education facilities, social policy, deinstitutionalization, pension system modernization, long-term care, and public administration.

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