Improving Investment in Human Capital in Croatia: Efficiency of Public Spending on Education and Healthcare

Croatia’s public spending efficiency in education and healthcare can be increased. Increased efficiency would free fiscal resources that could be used for fiscal savings and/or improved outcomes. This would require reforms such as consolidating schools, increasing instructional hours, revising curricula, shifting emphasis from vocational education toward general education, and supporting tertiary enrollment. In healthcare, reforms should focus on telemedicine and primary care, reorganizing hospitals, and prioritizing preventive measures. These reforms would also foster human capital accumulation, reduce labor shortage and skills mismatches, boost productivity, and increase the creation and diffusion of innovation. They would improve potential growth.