DEVELOPMENT CAPACITY ESTIMATE IN AREAS OF SPECIAL STATE CONCERNE

Economic, demographic and social problems are bigger and more complex in the areas of special state concern than in the rest of Croatia. One part of the problem is due to the specific local issues caused by direct and indirect consequences of the war, and the
other part is similar to issues troubling the rest of Croatia, but with more pronounced negative characteristics. The majority of these problems can be solved by coherent regional politics directed towards increasing dynamics of economic growth and development of
these areas. Since local development cannot be achieved without local resources, which also includes human resources, and without adequate entrepreneurial environment, special problems
of these areas are entrepreneurial capacities. Areas of special state concern are inferior to the rest of Croatia, regarding human potential and entrepreneurial climate. Because of that, future programs of government intervention should include capacity building (especially
in terms of human potential) and not only fi nancial incentives for development. Without adequate human resources and strengthening of the whole entrepreneurial environment in these areas, financial aid incentives (loans) will not achieve by itself optimal and expected
results.