Positioning Croatia in the Process of Globalization

Interview - Dragomir Sundać, PhD, Faculty of Economics, University of Rijeka, Croatia, October 2007

What kind of intelectual capital Croatia has?

First of all I have to say how intelectual capital is continually being developed in world and now we have to take fast steps to minimize the difference in which we are staying behind the world. That we are staying behind the world can be statisticly prooved if you just look at the amount of money invested in education and science. EU, depending on different states, has 17 to 23 percent highly educated people. In Croatia we are talking about 7,9 percent. At the heart of things are people. It is not possible to approach the problem with an attitude how we are smart and intelligent by nature because the problems today are being solved with science.

Does government of Croatia recognize the importance of use of knowledge and what does it do regarding this question?

More or less it recognizes, but not quite because when it comes to concrete decisions in practice, it failes. Someone might judge me for this what I'm about to say, but I have witnessed cases where companies have been sanirana with hundreds of million dollars that have despite that help bankrupted. I know that is social good but I wonder what would have happened if with that money we paid for our young people's education. What would have happened if if we have given them scholarships or have paid for their PhD's. The results wouldn't have been visible immediately the next year but in the long term it would pay off. It is known that one kuna invested in production gives back one kuna and 15 lipas whereas all world statistics show how one kuna invested in education gives back three.

In your lecture you have named knowledge and creativity as basics of competetivness in todays' work market. How creative are Croats as a nation?

We produce very little, and export even less. How can it be possible then to invest in knowledge and creativity of new products? But, by the number of patents and discoveries, especcially due to Croats outside, we have big number of registered ones. That means that we can do it.But regarding the production very little happens so we don't have where to be creative. Income from tourism where almost million people are involved, this year will be around 7 billion euros. One german pharmaceutical company with 70 employees has discovered a cure on which they annually earn 13 billion euros. If tourism contines to be based just on a pretty shore that will be a limiting factor. But if we think of a torism as a way to produce an illusion, what tourism is, people will continue buying it. Big events, shows and stories have to be created.

Is globalization threatening us with even bigger trust?

Yes, absolutely. That is a realistic fear coming to life because globalisation attracts young smart people to its centeres of power which is the case with our young and perspective people. Who ever stands out gets the offer to go outside of the country and work in mentioned centres. Then it happens that these centres of power view us like one market where they send products we have to buy by getting indebted. In a way they are finacially exploiting us and taking away our intelectual capital.

In your lecture you have showed mathematical proofs that talk against positive outcome of globalization.

Globalization shouldn't be accepted nor rejected. It should be viewed for what it is and then try to position our country as good as possible in it. Globalization cannot be avoided nor does it only have negative side. It's a game where we have to position Croatia in a way that we play the world game the best we can. It is known an expression how the game is not won by a player that has the best cards but the one with the best strategy.

Interview by Karmen Anastazija Škaro

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