Nearly 11 years after placing the commercial order, the Croatian Navy (HRM) received its second patrol ship, named “Umag,” last month. The first ship, “Omiš,” was delivered by Brodosplit six years ago. The same Split shipyard, run by entrepreneur Tomislav Debeljak, is expected to deliver three additional vessels for the HRM. This raises the question of whether this essential patrol flotilla can be completed before the end of the next decade. Moreover, it’s compelling to explore the potential for faster equipping of the Croatian armed forces within a broader economic and political framework.

Croatia is actively investing in various weapon systems, with public discussions frequently centered around combat aircraft and armored vehicles. Recently, there has been a suggestion about the possibility of establishing a domestic industry similar to these described armaments. Could Croatia, rather than relying on costly imports that necessitate future foreign maintenance services, produce at least some simpler components itself? More importantly, could this lead to the development of technologies applicable to civilian purposes, as is often the case in this sector? This seems challenging, particularly when considering the Brodosplit situation.

State Collaboration and Market Sustainability

Although the partnership has faltered in this instance, it doesn’t imply that solely relying on imports is the best path forward—especially since others abroad have utilized similar developmental models in conjunction with their local industries. According to former Croatian Defense Minister Jozo Radoš, “There will undoubtedly be purchases, not only due to the deteriorating security landscape in Europe and globally.” He points out that the Croatian military lacks sufficient equipment, compelling it to procure practically everything necessary for national defense. Nonetheless, he acknowledges that this scenario opens the door for domestic production opportunities.

“During my time managing the system at the start of the century, we aimed to sustain as many Croatian military equipment manufacturers as we could. While I lack precise data on their current status, I know that regrettably, most have ceased to exist. These smaller firms operated in niche areas, from short-barreled firearms and ammunition to helmets and software. However, merely relying on state procurement wouldn’t suffice. They would also need sustainability in international markets, as Croatia alone lacks the capacity to be their sole long-term consumer. Additionally, recent challenges faced by ship production have further complicated the outlook,” Radoš explains.

“The global economic scenario is also deteriorating,” he adds. “Moreover, the overall environment supporting broader domestic production has disintegrated. I’m referring to the decline of institutions such as the Shipping Institute and the Aerospace Technical Center or the ‘Đuro Đaković’ factory, among others.” Since the early 2000s, numerous factories have vanished, with economic policy favoring the service sector, leading to a decline in material and commodity production—a point reiterated by economic analyst Luka Brkić from Zagreb’s Libertas University, who initially highlighted agricultural concerns.

The Decline of a Maritime Power

“Croatia can no longer produce even half of the milk required for domestic consumption, let alone more complex military systems. It’s undeniable that wars are increasingly prevalent and becoming more sophisticated. The notion that we can avert wars through our armament efforts remains an illusion; hence, the economic and political challenges you identify come to the forefront. We are becoming a smaller and less dynamic economy, risking the failure to capitalize on opportunities for intensified fundamental research that could spur technological advancement. This is regrettable, as such developments often significantly benefit the economy,” the analyst posits.

“Brodosplit exemplifies a stark case of how this model fails us, even when some production still exists. We have essentially dismantled our shipbuilding sector, once regarded as the world’s third-largest. Although part of Yugoslavia, all these shipyards were Croatian. We possess the navigational expertise and knowledge of deep-sea vessel construction, but this knowledge has been neglected due to an inferior growth and development model,” Brkić asserts. This model has also led to the reliance on foreign military equipment purchases with little alternative. Consequently, military development goals have been reduced to mere acquisition, alongside a somewhat heated discourse focused primarily on specific brands.

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