This report covers themes ranging from economic trends and prospects to civil society to planning, decision-making, and managing in Croatia. As a result of the political changes at the beginning of 2000, there has been notable improvement in the overall condition of Croatia’s economy. Since then, it has become a member of the World Trade Organization (WTO) and has seen a continued pattern of increasing GDP. There has also been an increase in overall economic activity of 4.5% in the first half of 2001. Given the country’s significant political transition, the Croatian economy underwent a moderate but stable recovery. Some of the negative trends that the report addresses are the deterioration of the labor market situation as well as distrust in Croatia’s social institutions, including its legal systems, parliament and civil services.