Political Aspect of the Saving – Investment Gap in Croatia

Abstract

All the Governments of Croatia should acknowledge the importance of the economic policy
that will encourage higher saving rates thus enabling correlation with the investment rate with
the scope of reaching important macroeconomic goals, such as the GDP and employment
rates increase, etc., without in any way endangering the macroeconomic stability of the
national economy. Regardless of the great impact savings had on the investments, the
implementation of the economic or investment policy on behalf of the Right-wing
Government of Croatia had a great impact in creating the discrepancy in the
saving-investment ratio, than it was the case with the Left-wing Government of Croatia. If the
Right–wing Government of Croatia starts implementing the economic policy with the sole
scope of reaching higher saving rates than the former ones, complying with their ideology,
and focusing less on how to opportunistically reach middle voters, they will influence
effectively the saving and investment correlation, thus lessening the saving-investment gap
and reaching the macroeconomic stability. However, if the Right-wing Government
opportunistically turn to the “middle voters” instead of following their ideology`s programme,
this could lead to the decrease in efficiency of some economic policy measures with the goal
of reaching a certain saving-investment correlation. On the other hand, with the growth in
saving rates, Left-wing Government of Croatia can influence effectively its correlation with
the investment rates, but still in a lesser proportion compared to the Right–wing Government
of Croatia. With the Left–wing Government of Croatia opportunistically orienting on the
“middle voters” that would facilitate their position in achieving the macroeconomic stability
and thus enforcing their influence on the saving-investment correlation, as would not be the
case if only complying with their left oriented party`s programme.