The project analysed possibilities of different measures for poverty alleviation, such as incentivising economic development and growth, especially the role of the state in economic change, creating employment opportunities, improving human capital, obtaining an efficient welfare system, decentralisation, reduction of corruption and institution development. There is no single model for the eradication of poverty, economic inequality and social exclusion that would be optimal for all societies. Like any other country, Croatia has to find and develop constitutional and legal arrangements that would best suit its own historical, social, cultural and economic situations, conditions and possibilities.
Croatia is in the process of welfare and social security reform, and different measures are directed toward the eradication of poverty and inequality. Monitoring the effects of a particular programme and measures is especially important for the successful realisation of these reforms. This is necessary for obtaining information about who is exposed to poverty and social exclusion. This would improve policy and realise better targeting of the public aid system to the most vulnerable social groups.
The Institute of Public Finance and the Friedrich Ebert Foundation as a part of the project “Economic Aspects of Improving the Social Picture of Croatia” organised the roundtable “Poverty and the Possibilities of Palliating it in Croatia”, which took place on 15 November 2004. The intention was to discuss poverty from different positions, and to explain the role of development, social, pension and tax policies in its mitigation. A selection of articles from the roundtable was printed in the special issue of Financial Theory and Practice, No. 1, 2005.