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http://www.washingtontimes.com/news/2010/sep/30/a-modern-mafia-state/


KUHNER: A modern mafia state


Communist-era corruption still persists


By Jeffrey T. Kuhner <http://www.washingtontimes.com/staff/jeffrey-t-kuhner/> 

The Washington Times

6:46 p.m., Thursday, September 30, 2010

MugshotIllustration: Croatia by Linas Garsys for The Washington Times

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Croatia <http://www.washingtontimes.com/topics/croatia/>  is at a crossroads. 
The former Yugoslav republic is on the verge of entering the European Union 
<http://www.washingtontimes.com/topics/european-union/> . Accession talks have 
begun, and many Croatians hope the nation will join the EU 
<http://www.washingtontimes.com/topics/european-union/>  by next year.

They falsely think membership in the coveted club will transform Croatia 
<http://www.washingtontimes.com/topics/croatia/>  into a prosperous, 
Western-style state. Zagreb's political elites - both right and left - imagine 
that the EU <http://www.washingtontimes.com/topics/european-union/>  will serve 
as the panacea for the nation's systemic problems. It won't.

In fact, the frenzied dash toward EU 
<http://www.washingtontimes.com/topics/european-union/>  membership is papering 
over the moral rot at the heart of the country - a social cancer that threatens 
to devour this small nation of more than 4 million. Croatia 
<http://www.washingtontimes.com/topics/croatia/> 's major problem is that it 
has never confronted its tragic communist past.

Under Serb-dominated Yugoslavia, Croatia 
<http://www.washingtontimes.com/topics/croatia/>  was reduced to an economic 
vassal of Belgrade. From 1945 until his death in 1980, Communist dictator Josip 
Broz Tito <http://www.washingtontimes.com/topics/josip-broz-tito/>  imposed a 
brutal police state. His multiethnic empire subjugated Yugoslavia 
<http://www.washingtontimes.com/topics/yugoslavia/> 's constituent peoples - 
especially Croatians.

Tito <http://www.washingtontimes.com/topics/josip-broz-tito/>  sought to smash 
the two great sources of opposition to his totalitarian rule: the Croatian 
peasantry and the Roman Catholic Church 
<http://www.washingtontimes.com/topics/roman-catholic-church/> . His regime 
murdered more than 200,000 Croatians, including countless priests and nuns. 
Churches were confiscated. State-sponsored atheism was inculcated 
systematically in the youth. Press freedoms were abrogated. Dissidents and 
anti-communist intellectuals were shot or imprisoned. The environment was 
ravaged. Economic collectivism destroyed private enterprise and personal 
responsibility. Cronyism and corruption became rampant. Croatian nationalism 
was suppressed savagely. In short, Croatia 
<http://www.washingtontimes.com/topics/croatia/> 's moral and historic core - 
traditional Catholicism fused with Central European civilization - was 
eradicated.

After a four-year war with rebel Serbs, the country achieved its national 
independence. But it came at a high cost: A Balkan criminal underworld took 
root, smuggling guns, drugs and cigarettes during much of the fighting. Many 
gangsters infiltrated the government. Also, many former communists simply 
changed the Titoist red star for the Croatian red-and-white checkerboard. They 
retained their authoritarian, corrupt habits. The Croatian state became 
pregnant with a new criminal elite - one whose tentacles reach into every 
sector of society.

The governing Croatian Democratic Union 
<http://www.washingtontimes.com/topics/croatian-democratic-union/> , known by 
its acronym HDZ, is the political expression of this gangster ruling class. Its 
former prime minister, Ivo Sanader 
<http://www.washingtontimes.com/topics/ivo-sanader/> , is under investigation 
for embezzlement, bribery, corruption and influence-peddling. High-ranking 
sources both within the government and outside say that, along with his 
cronies, Mr. Sanader <http://www.washingtontimes.com/topics/ivo-sanader/>  
plundered public assets. They have amassed huge personal fortunes - all at the 
expense of the Croatian taxpayer. The HDZ elite have stolen or siphoned off 
about $1 billion - a grotesque sum for such a small nation. Mr. Sanader 
<http://www.washingtontimes.com/topics/ivo-sanader/>  belongs in one place: the 
dock. He should answer for his crimes to the Croatian people.

Moreover, the HDZ refuses to implement sweeping reforms needed to kick-start 
Croatia <http://www.washingtontimes.com/topics/croatia/> 's sluggish economy. 
Zagreb continues to embrace a bureaucratic corporatist model marked by a 
bloated public sector, stifling regulation and crushing taxes. The reason is 
simple: Creating a genuine free-market economy would dissolve the stranglehold 
the ruling class has on society. Croatia 
<http://www.washingtontimes.com/topics/croatia/> 's politicians derive their 
power - and wealth - from statism and the massive bureaucracy, creating a vast 
patronage machine dispensing jobs to loyal allies.

Hence, there is little transparency and openness. Political connections and 
bribery are necessary to personal advancement. A healthy, vibrant society is 
based upon pluralism, the rule of law, entrenched private property rights and 
meritocracy. Croatia <http://www.washingtontimes.com/topics/croatia/>  has none 
of these. The HDZ may pay lip service to these goals. In reality, it seeks the 
very opposite: a Balkan-style kleptocracy, which exerts considerable influence 
upon the media, business and the economy.

The status quo may serve the elites well, but not the vast majority of 
Croatians. Unemployment is at 18 percent. The economy actually contracted last 
year. The soaring national debt threatens the country's long-term future. 
Foreign investment and much-needed business capital are fleeing. Economic 
stagnation has set in. The gap between the rich and the poor is growing 
dangerously large, potentially leading to social instability. The middle class 
is shrinking. Croatia <http://www.washingtontimes.com/topics/croatia/>  is 
becoming a two-tiered society, divided between the haves and have-nots. This is 
not the independent Croatia <http://www.washingtontimes.com/topics/croatia/>  
many dreamed of - or died for.

Croatia <http://www.washingtontimes.com/topics/croatia/> 's fledgling democracy 
has the potential to become the Switzerland - or to be more accurate, the 
Austria - of southeastern Europe. It has a talented, innovative and intelligent 
population. Its natural beauty and stunning Adriatic coastline already are 
making the country a tourist mecca. Its ancient ties to the Austro-Hungarian 
Empire firmly anchor its culture to the West. Its press can be lively, 
combative and brainy - when allowed to function free of political harassment.

Yet Croatia <http://www.washingtontimes.com/topics/croatia/>  will never 
achieve its national potential or civilizational destiny until it wages a 
serious war on corruption. Its gangster regime is not only stunting the 
country's development, but draining it of precious energy and treasure. 
Numerous skilled and educated Croatians are emigrating, a massive brain drain 
depleting the country of vital human capital.

Many states have a mafia. In Croatia 
<http://www.washingtontimes.com/topics/croatia/> , however, the mafia has a 
state. Until this is recognized and genuinely resolved, the relentless slide 
toward an economic abyss will continue. No amount of spin or EU 
<http://www.washingtontimes.com/topics/european-union/>  subsidies can change 
this.

Jeffrey T. Kuhner is a columnist at The Washington Times and president of the 
Edmund Burke Institute, a Washington think tank.




About the Author


Jeffrey T. Kuhner <http://www.washingtontimes.com/staff/jeffrey-t-kuhner/> 

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