Political Aspect of the Saving – Investment Gap in Croatia

All the Governments of Croatia should acknowledge the importance of the economic policythat will encourage higher saving rates thus enabling correlation with the investment rate withthe scope of reaching important macroeconomic goals, such as the GDP and employmentrates increase, etc., without in any way endangering the macroeconomic stability of thenational economy. Regardless of the great impact savings had on the investments, theimplementation of the economic or investment policy on behalf of the Right-wingGovernment of Croatia had a great impact in creating the discrepancy in thesaving-investment ratio, than it was the case with the Left-wing Government of Croatia. If theRight–wing Government of Croatia starts implementing the economic policy with the solescope 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 influenceeffectively the saving and investment correlation, thus lessening the saving-investment gapand reaching the macroeconomic stability. However, if the Right-wing Governmentopportunistically 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 goalof reaching a certain saving-investment correlation. On the other hand, with the growth insaving rates, Left-wing Government of Croatia can influence effectively its correlation withthe investment rates, but still in a lesser proportion compared to the Right–wing Governmentof Croatia. With the Left–wing Government of Croatia opportunistically orienting on the“middle voters” that would facilitate their position in achieving the macroeconomic stabilityand thus enforcing their influence on the saving-investment correlation, as would not be thecase if only complying with their left oriented party`s programme.