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The Croatian economy is post-communist. In the late 1980s, at the beginning of the process of economic transition, its position was favourable, but it was gravely impacted by de-industrialization and war damages.

As the Turkish incursion into Europe started, Croatia was once again a border area between two major forces in this part of the world. While Croats under fra Ivan Kapistran contributed to the Christian victory over the Ottomans in the siege of Belgrade of 1456, they suffered a major defeat in the Battle of Krbava Field (in Lika, Croatia) in 1493 and gradually lost increasing amounts of territory to the Ottoman Empire.

The princes of Bribir from the Šubic family became particularly influential during the time of Pavao Šubic (1272-1312) who asserted control over large parts of Dalmatia, Slavonia and Bosnia during an internal conflict between the Árpád and Anjou ruling dynasties. Later, however, the Anjouvines intervened and scattered the Šubic family across the country (an important offspring being the Zrinski family), and later even selling the whole of Dalmatia to the Republic of Venice in 1409.

By the 1840s, the movement had moved from cultural goals to resisting Hungarian political demands. By the royal order of January 11, 1843, originating from the chancellor Metternich, the use of the Illyrian name and insignia in public was forbidden. This deterred the movement's progress but it couldn't stop the changes in the society that had already started.

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 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 beginnings of the Christianization are also disputed in the historical texts: the Byzantine texts talk of duke Porin who started this at the incentive of emperor Heraclius, then of duke Porga who mainly Christianized his people after the influence of missionaries from Rome, while the national tradition recalls Christianization during the rule of Dalmatian duke Borna. It is possible that these are all renditions of the same ruler's name.

The record of archdeacon Thomas, as well as the Chronicle of the Priest of Duklja from the 12th century, state that the Croats did not arrive the same way that the Byzantine texts say. Instead, these works claim that the Croats were a group of Slavs that remained after the Goths (under a leader referred to as "Totila") had occupied and pillaged the Roman province of Dalmatia. The Chronicle of Dioclea, on the other hand, speaks of a Gothic invasion (under a leader referred to as "Svevlad", followed by his descendants "Selimir" and "Ostroilo") after which the Slavs merely took over.

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.