Croatia - International Special Reports

Ron Brown credited for introducing US business to Croatia

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Ron Brown credited for introducing US business to Croatia

Commerce Secretary Ron Brown’s ill- fated trade mission to Dubrovnik in April 1996 came at a time when Croatia was just emerging from a long war. The nation was still four years away from possessing a government that was firmly committed to a platform of economic reform.

"Ron Brown’s trip brought a host of projects to Croatia," said Beryl Blecher, Commercial Attaché to the United States Embassy in Zagreb. Even today, "We need to have Croatia actively promoted to US companies otherwise, unless it is right in front of them, these companies just won’t see the country."

Given the government of Croatia’s progress in streamlining the nation’s legal and regulatory environment, many more American and other Western investors should be taking a serious look at the nation. In the twenty-two months that the current government has been in office the level of Foreign Direct Investment (FDI) in Croatia has increased. Much of the FDI that has taken place came about through opportunities that arose through the government’s privatization effort.

"For a transition country privatization is an essential process for enabling a country to restructure its economy towards a market economy," said Hrvoje Vojovic, President of the Croatian Privatization Fund. As the privatization process moves forward more and more opportunities for FDI will occur. "We are focusing on companies involved in agriculture, the tourism sector, more than forty hotels, the electronics industry, shipping, and shipbuilding," says Vojovic.

An official OPIC investment bulletin states, "Croatia’s investment climate is brightening and this should continue if Croatia maintains its commitment to market transition and reform and builds on the progress to date."

The Western Wireless company has taken a stake in Croatia’s telecommunications services. Parsons Power of Reading, Pennsylvania has been rehabilitating a geothermal power plant in central Croatia. Bechtel signed a contract in 1998 to construct a major highway connecting Zagreb with Split. Out of this highway project sprang $100 million in business for the Caterpillar company- purportedly the largest Caterpillar fleet assembled in one place apart from an open pit mine. Hilton is currently renovating a hotel in Dubrovnik. Coca-Cola has had a major presence in Croatia for many years.

This core group of companies, who had the prescience to take advantage of Croatia’s strong potential, formed an American Chamber of Commerce office in Zagreb. Yet, according to Charles Ludolph, Deputy Assistant Secretary of Commerce, "There is much more that US companies could do in Croatia. US companies could bring services and management expertise to the vibrant Croatian tourism sector and more US companies could become involved in the privatization process that Croatia has undertaken."

In order for this to happen, however, the word must get out that Croatia is a stable, progressive, Westward facing country full of possibilities. The AmCham office in Zagreb, in conjunction with its members, can help to promote Croatia in the United States. However, much of the credit for getting us to where we are today should be attributed to Ron Brown, proving that, in the words of Beryl Blecher, "His mission was not in vain."