Development prospects of the Vukovar-Srijem county in a situation of scarce social capital

Eastern Croatia, usually regarded as the region consisting of the two counties of Osijek-Baranja and Vukovar-Srijem, has experienced deep changes in recent Croatian history both socio-economically and socio-culturally. In this paper theauthors onalyse some of these changes in the Vukovar-Srijem County. All the suffering of the non-Serbian population in the Croatian War of Independence, the destruction and plundering of economic potential and the siege that lasted until 1997 left deep scars in the post-war years. The slow economic recovery, feeble demographic renewal (return of the exiled), unfavourable educational structure of the population, high unemployment rate, low individual and social standard, are just some of the indicators of the transition of the Vukovar region. The socio-economic picture of Eastern Croatia also includes problems of coexistence, problems that can be summarised within the concept of mistrust. The latter is, in terms of economic discourse, reflected in the non-existence or lack of social capital. This issue is dealt with in the first part of the paper. The second, however, deals with the data referring to the demographic and economic state and changes occurring in the last fifteen years. In addition to the rise of numerous small enterprises, an important role is allocated to big economic subjects and the need for stronger cooperation. The importance of selective revival of the economy, building of the infrastructure, as well as investing in the education of young people and the social standard of this area are the only way to raising the level of trust and keeping social peace. This is also a means of helping this region join the more developed and economically more prosperous parts of Croatia.