Civil-Military Relations in Croatia: Politicisation and Politics of Reform.

This article argues that since 2000 successive Croatian governments have shown themselves increasingly dedicated to reforming civil-military relations. However, their efforts have been hampered by four key obstacles. First, the need to implement defence reforms in the context of an unwieldy set of civil-military relationships, political and institutional rivalries, a lack of civil and military defence expertise and a continuing legacy of politicisation. Second, the need to cut defence spending as a proportion of the overall budget whilst taking on new military roles and improving the capability of the armed forces. Third, the need to balance the demands of the NATO accession process while implementing a balanced and fundamental reform of the armed forces as a whole. Finally, the need to implement root and branch personnel reforms and downsizing in the OSRH while simultaneously recruiting and retaining quality personnel and addressing the wider social issue of unemployment.

Water rights for variable supplies

The relative merits of different systems of property rights to allocate water among different extractive uses are evaluated for the case where variability of supply is important. Three systems of property rights are considered. In the first, variable supply is dealt with through the use of water entitlements defined as shares of the total quantity available. In the second, there are two types of water entitlements, one for water with a high security of supply and the other a lower security right for the residual supply. The third is a system of entitlements specified as state-contingent claims. With zero transaction costs, all systems are efficient. In the realistic situation where transaction costs matter, the system based on state-contingent claims is globally optimal, and the system with high-security and lower security entitlements is preferable to the system with share entitlements.