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The Racan Government carried out a large number of structural reforms and with tourism as the main factor, the country emerged from recession in 2000. Due to overall increase in stability, the economic rating of the country improved and interest rates dropped. As a result of coalition politics and resistance from the unions and the public, many reforms are still overdue, esp. in the legal system.

The Chamber of Counties or Županijski Dom used to be composed of three deputies from each of the 21 counties (županije). However, as it had no practical power over the Chamber of Representatives, in 2001, the Chamber was abolished and whatever powers it had were transferred directly to the county governments.

The 1526 Battle of Mohács was a crucial event in which the rule of the Jagiellon dynasty was shattered by the death of King Louis II. The defeat emphasized the overall inability of the Christian feudal military to halt the Ottomans, who would remain a major threat for centuries.

The Croatian national revival began in the 1830s with the Illyrian Movement. The movement was misnamed (some wrongly thought that they primarily descended from the ancient Illyrians rather than the Slav settlers), but it nevertheless attracted a number of influential figures and produced some important advances in the Croatian language and culture. The champion of the Illyrian movement was Ljudevit Gaj who also reformed and standardized the Croatian literary language.

The last parliamentary elections were held November 23 2003.

Inflation and unemployment rose and the kuna fell, prompting the national bank to tighten fiscal policy. A new banking law passed in December 1998 gave the central bank more control over Croatia's 53 remaining commercial banks. Croatia is dependent on international debt to finance the deficit. A recently issued Euro-denominated bond was well received, selling $300 million, which helped offset economic losses from the Kosovo crisis.

The President of the Republic of Croatia is the head of state and is elected by popular vote for a five-year term.

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

The Illyrian movement was rather broad in scope, both nationalist and pan-Slavist. It would eventually develop into two major causes:

The National Judicial Council (Državno Sudbeno Vijece) of the Republic appoints all judges. It is a body consisting of a president and 14 members proposed and elected by the Parliament for 4-year terms, maximum 2 terms.

After the Battle of Sisak in 1593, when the Ottoman army was successfully repelled for the first time on the territory of Croatia, the lost territory was mostly restored, except for large parts of today's Bosnia and Herzegovina. By the 1700s, the Ottoman Empire was driven out of Hungary and Croatia, and Austria brought the empire under central control.

The second wave of migration, possibly around year 620, included the Croats and Serbs, who were invited by the Emperor Heraclius to counter the Avar threat on the Byzantine Empire. These two Slavic groups which are today nations were one of several in Dalmatia, including the people of Zahumlje, Narenta/Pagania, Travunia, Dioclea etc.