An emerging economy in the great recession


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2013 MBAA/NAMS presentation, "An Emerging Economy in the Great Recession: Croatia's Quest for Workplace Health and Safety" Melody L. Wollan, Eastern Illinois University; Foster C. Rinefort, Eastern Illinois University; and Joseph A. Petrick, Wright State University

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An emerging economy in the great recession

  1. 1. An Emerging Economy in the Great Recession:Croatias Quest for Workplace Health and Safety Melody L. Wollan, PhD, SPHR Associate Professor of Management, Eastern Illinois University Foster C. Rinefort, PhD, PE, SPHR Professor Emeritus, Eastern Illinois University Joseph A. Petrick, PhD, SPHR Professor of Management, Wright State University
  2. 2. Introduction• Recent history • Yugoslavia • European Union • Political Instability• Economics • Financial Crisis • Government • Occupational Safety & HealthPurpose:An overview to inform furtherdata collection and analysison management issues in thiscountry, including health andsafety of the Croatia workforce
  3. 3. ECONOMYOverview WWII – Market Socialism  Succession of Leadership 1991 Independence  Pop. 4,480,000Privatization of industry & business Exceptions  Commitment to workers &  Agriculture and fishing (9.3% of holdings at end of 2001) Western business strategy  Tourism (21% of holdings)  Industry and mining (43% of remaining holdings).
  4. 4. Plitvice National ParkUNESCO World Heritage Site; 16 lakes
  5. 5. ECONOMYOverview WWII – Market Socialism  Succession of Leadership 1991 Independence  Pop. 4,480,000Privatization of industry & business Exceptions  Agriculture and fishing (9.3% of holdings at end of 2001)  Commitment to workers & Western business  Tourism (21% of holdings) strategy  Industry and mining (43% of remaining holdings).Recession pressures Increasing foreign debt, exports stable Tight budgets Deterioration of capital investments Change in “tourism” to less profitable type
  6. 6. Table 1: Principle Measures of Economic Activity in Croatia (CIA World Factbook, 2012 ) 2010 2012Gross Domestic Product $79 billion $81 billionPopulation 4,416,000 4,480,000Gross Domestic Product per Capita $17,500 $18,400 -6% 0%Change in Gross Domestic Product (from 2009 to 2010) (from 2011 to 2012)Budget Deficit as % of GDP 2% 6%Public Debt as % of GDP 58% 44%Inflation 1.1% 2.3%Labor Force 1,800,000 1,717,000Unemployment 16% 18%
  7. 7. GLOBAL INFLUENCES ONOCCUPATIONAL SAFETY & HEALTHUnited Nations International Labor Organization (ILO)  International Occupational Safety and Health Information Center  Global Program on Occupational Safety, Health, and the Environment World Health Organization (WHO)  2009 - Global Plan of Action on Worker Health (GPA)  2010 - National workshop on worker health United Nations Economic, Social, and Cultural Organization (UNESCO)European Union European Union Occupational Safety and Health system (Brussels) European Agency for Safety and Health at WorkUnited States - Media & diplomatic missions National Safety Council  International accident facts  National safety congress OSHA - Voluntary Protection Program Participants Association
  8. 8. OCCUPATIONAL SAFETY & HEALTH IN CROATIAMinistry of Health and Social Welfare Croatian Institute for Health Protection and Safety at Work Croatian Institute for Insurance and Protection of Workers Health Croatian Institute for Public Health Croatian Institute for Retirement Insurance State Inspectorate - enforcement and statistical reports Private Organization: National Council for Occupational Safety of the Republic of CroatiaWorld Health Organization Conferences (WHO) “Health Promotion at the Workplace: The Goals and the Means” Groznjan (2010) - WHO Collaborating Centre for Occupational Health "Healthy Workplaces for Health Workers“ Zagreb (2011) - SEE Network on Workers’ Health - Workplace Academy
  9. 9. OCCUPATIONAL SAFETY & HEALTH IN CROATIAMost Recent Data - U.S. Department of State (2009) “…many industries often did not meet worker protection standards.” “In 2009 the inspectorate initiated 3,316 requests for misdemeanor proceedings covering 6,635 violations of safety standards.” “During 2009 courts handed down 5,286 decisions for misdemeanor acts involving work safety, a great number of which concerned cases from 2007 and 2008.” “…of the 11,932 misdemeanor cases reported over the past few years, 4,351 have been thrown out due to the statute of limitations."
  10. 10. OCCUPATIONAL SAFETY & HEALTH IN CROATIAAccident/Injury reporting factors Reductions in reporting – Threat of loss of employment Increases in reporting - economic pressures, governmental emphasis, reduced employer support, and decreased influences of trade unionsMotor vehicle indications of safety & health 6120 fatalities (13.6 per 100,000 people) reported in 2010 More than triple the rate for most northern European countries. Probable causes include: economic pressure, increased traffic, poor roadway maintenance, and increased numbers of immigrant and younger drivers.
  11. 11. MANAGERIAL IMPLICATIONS• Croatian Agencies to support workplace health and safety are stabilizing and adapting European Union standards• Mechanisms are in place now for reporting violations• Privatization of Croatian industry has increased foreign ownership in companies and that will increase the influence of global standards in safety• Building expectations for managing health and safety (weak managerial skills by Croatians in general)• Building infrastructure nationally will aid worker health and safety (new roads are not just for tourists)