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The death of President Tudman in December 1999, and the defeat of his ruling Coatian Democratic Union or HDZ party in parliamentary and presidential elections in January 2000 ushered in a new government committed to economic reform and halting the economic decline.

Croatia has a three-tiered judicial system, consisting of the Supreme Court, county courts, and municipal courts. The Constitutional Court rules on matters regarding the Constitution.

Illyria was a sovereign state until the Romans conquered it in 168 BC. The Western Empire organized the provinces of Pannonia and Dalmatia, which after its downfall passed to the Huns, the Ostrogoths and then to the Byzantine Empire. Forebears of Croatia's current Slav population settled there in the 7th century.

Croatia is divided into 20 counties (Croatian: županija) and the city district of the capital, Zagreb

The Croatian Government (Vlada) is headed by the Prime minister who has 2 deputy prime ministers and 14 ministers in charge of particular sectors of activity. The executive branch is responsible for proposing legislation and a budget, executing the laws, and guiding the foreign and internal policies of the republic.