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

Main problems include massive structural unemployment followed by an insufficient amount of economic reforms. Of particular concern is the gravely backlogged judiciary system combined with inefficient public administration, especially involving land ownership.

Before the dissolution of Yugoslavia, the Republic of Croatia, after Slovenia, was the most prosperous and industrialized area, with a per capita output perhaps one-third above the Yugoslav average. Privatization under the new Croatian Government had barely begun when war broke out. As a result of the Croatian war of independence, the economic infrastructure sustained massive damage in the period 1991-92.

De Administrando Imperio book mentions a version of the events, where the Croats weren't actually invited by Heraclius, but instead defeated the Avars and settled on their own accord after migrating from an area near today's Silesia. This record is supported by the writings of one Thomas the archdeacon, Historia Salonitana from the 13th century.

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.

Croatia has a mixture of climates. In the north and east it is continental, Mediterranean along the coast and a semi-highland and highland climate in the south-central region.

Regardless of different interpretations, the Croat tribes eventually settled in the area between the Drava river and the Adriatic sea, the western Roman provinces Pannonia and Dalmatia; western Balkans in modern usage. The Croat tribes had been organized into two dukedoms; the Pannonian duchy in the north and the Dalmatian duchy in the south.