Croatia's Modern Approach to Tackling Poverty Through Data Integration

Croatia is transforming its poverty measurement system by shifting from traditional surveys to a sophisticated register-based approach. The World Bank’s report "Register-based Measurements of Poverty and Social Exclusion" outlines the development of a Central Population Register, which will integrate administrative data to provide precise and real-time socio-economic indicators. This shift aims to enhance social policy interventions, particularly for vulnerable groups like the elderly and marginalized communities. Challenges include incomplete data on households and under-reporting of income, but the new methodology offers a robust solution for long-term poverty reduction.

Transforming the Fight Against Poverty and Social Exclusion in Croatia

Croatia is taking a revolutionary step to tackle poverty and social exclusion by transitioning from traditional survey-based data collection to a sophisticated register-based system. This transition, detailed in the World Bank’s comprehensive report "Register-based Measurements of Poverty and Social Exclusion," is expected to enhance the quality, precision, and granularity of poverty measurements in Croatia. By developing a new Central Population Register, the country aims to monitor the socio-economic conditions of its citizens more accurately and make informed policy decisions that cater to its most vulnerable populations.

A Shift to Register-Based Data for Precision

The shift from survey-based methods, like the EU Statistics on Income and Living Conditions (EU-SILC), to register-based data marks a significant advancement for Croatia. Traditional surveys often suffer from limitations in their ability to capture real-time and region-specific socio-economic data. The new methodology proposed by the World Bank’s report leverages the Central Population Register, combining data from various administrative sources such as the Tax Administration, health records, and social welfare databases. This integration is expected to provide a more comprehensive picture of poverty trends across different regions and demographics.

Croatia’s approach, inspired by similar successful implementations in countries like Estonia and Slovenia, aligns with the European Union’s call to enhance social policies and bring at least 15 million people out of poverty by 2030. With the Central Population Register set to be operational by 2026, the Croatian government aims to produce high-quality, register-based poverty and social exclusion measurements that can be analyzed at national, regional, and municipal levels. Such an approach will be critical in identifying pockets of extreme poverty and tailoring interventions to meet specific community needs.

Overcoming Challenges in Implementation

Implementing this new data-driven framework has not been without its challenges. One of the primary obstacles has been the lack of unique apartment identifiers in Croatia’s existing data systems. This makes it difficult to accurately identify households in multi-apartment buildings—a common residential pattern in urban Croatia. Furthermore, there is an issue of under-reporting income, particularly among self-employed individuals and those engaged in small-scale tourism, who often pay taxes based on fixed rates without disclosing actual revenues and expenses.

To address these gaps, the report recommends strategies such as using imputation techniques and integrating additional data sources to fill in missing details. The successful implementation of the Central Population Register also hinges on establishing strong data-sharing agreements between various administrative bodies and ensuring adherence to data privacy standards, as outlined in the European Union’s General Data Protection Regulation (GDPR). Such measures will prevent misuse of data while maintaining the integrity and reliability of the poverty and social exclusion indicators produced.

The Future of Social Policy in Croatia

The introduction of register-based poverty measurements will provide Croatian policymakers with a powerful tool to tackle poverty at its roots. The comprehensive framework proposed by the World Bank integrates demographic, income, and welfare data, which will enable the government to track progress at sub-national levels, including counties and municipalities. This will be particularly beneficial in designing targeted social interventions for vulnerable groups like the elderly and marginalized communities, whose needs are often overlooked in broad national statistics.

Additionally, the report underscores the importance of a robust monitoring and evaluation system to ensure that data-driven policies are responsive and effective. By 2026, Croatia is expected to have a fully operational Central Population Register, linked with administrative records and providing real-time data on the socio-economic conditions of its population. This will not only improve the country’s compliance with EU social policy standards but also set a precedent for other nations looking to modernize their poverty measurement frameworks.

As Croatia moves forward with this ambitious initiative, it has the potential to transform its social policy landscape, making it more inclusive and equitable. By leveraging modern data systems and drawing lessons from other EU member states, Croatia is well on its way to achieving its goal of reducing poverty and social exclusion, ensuring a better quality of life for all its citizens.