The Republic of Croatia has a democratic government with a directly elected President who not only is head of state and commander of the armed forces but also is responsible for foreign policy and the intelligence services. The President has named the leader of the political party with a majority of seats to act as Prime Minister and share in the exercise of executive power. The OSCE deemed parliamentary elections held on the basis of universal suffrage to be free and fair, despite some irregularities. Ethnic Croats abroad have the right to vote on purely ethnic grounds.

Many Croatian Serbs who fled in 1995 cannot document their citizenship but have not been assisted by the government to secure documentation so they can vote. 33 women serve in the 152-seat Parliament, and 4 of 15 Ministers in Cabinet are women. 8 parliamentary seats are reserved for ethnic minorities, and 11 members of minority groups were elected. The Serb, Italian and Hungarian minorities are represented in government.

The judiciary is independent in law but is reported to be subject to political influence.

Discrimination on the basis of gender, age and race are prohibited, but discrimination is reported, particularly against the Roma.

Cooperation with the International Criminal Tribunal for the former Yugoslavia (ICTY) has improved, but some persons accused of war crimes have not been apprehended.

Freedom of speech and the press are guaranteed. A new media law is intended to ensure independence and protect sources of information. Access to the Internet is not restricted. Discrimination against homosexuals is reported. A survey shows that one-third of employers would not willingly employ workers who are declared homosexuals. People with HIV/AIDS also face discrimination.

Croatia is a source, transit and destination country for women and girls trafficked for the purpose of sexual exploitation. The government does not fully comply with the minimum standards for the elimination of trafficking.

Education is free and compulsory for ages 7 to 14. Most children continue their studies to age 18, except Roma children. Subsidised day care and free meals are provided. Reports cite discrimination against minorities in schools, and textbooks that use derogatory adjectives to refer to minorities. Attendance is optional for religious education classes in schools; where there are 7 students per class of a minority faith, they can be offered separate religion classes.

Reports cite harassment of Orthodox Serb children who attend religious classes. NGOs report that separate classes for Roma students in the northern part of the country are of a lower standard than those in mainstream schools. A 2003 case regarding segregation of primary school classes in the northern Medjimurje region remains pending before the Constitutional Court at the time of writing. Adult literacy is high at 98.1%.

A 3-year programme begins at age 3. 5% of ECE is private. The Net Enrolment Rate (NER) is 46%. There are 7,143 ECE teachers (all female), of whom 84% are trained. The pupil/teacher ratio (PTR) is 12 : 1.

Education is compulsory for ages 7 to 14. Primary school begins at age 7 and continues for 4 years. The NER is 87% (49% female). Of students who enrol in Grade 1, 100% reach the last grade of primary school. There are 10,832 primary teachers (90% female), and all of them are trained. The PTR is 18 : 1.

Secondary education begins at age 11 and continues for 8 years. 1% of education is private. The NER is 85%. 74% of students in upper secondary education study in technical vocational programmes. Only 1% of students in secondary education repeat grade levels. There are 36,846 secondary teachers, 17,073 (69% female) in lower secondary and 19,733 (65% female) in upper secondary schools. All are trained. The PTR is 12 : 1 in lower secondary and 10 : 1 in upper secondary school.

There are 12,722 students (53% female) in tertiary institutions. The NER is 39%. There are 2,836 foreign students studying in Croatia, mainly from Central and Eastern Europe (2,646) and North America and Western Europe (45). At the same time, 9,955 Croatian students study overseas, mainly in Germany (5,437), Italy (1,257), Austria (947), the USA (660) and Slovenia (425).

An Amnesty International report notes that authorities have failed to prevent violence among children in social care institutions. Occasional discrimination against persons with disabilities is reported. Education programmes for disabled children are more accessible in cities than in rural areas.

The government cooperates with the UNHCR and other humanitarian and international organisations to assist refugees and returnees. Government statistics show that about 115,148 refugees have returned to the country since the end of the war. Freedom of movement is constrained for IDPs who lost tenancy rights. With no permanent residence it is difficult to acquire civilian ID. While citizenship applications are pending, applicants are denied benefits such as free education, pensions and employment in the civil service. International humanitarian organisations assist displaced persons to obtain credentials.

Discrimination against minorities is legally prohibited but is evident against ethnic Serbs and Roma. In particular, Roma children face serious obstacles in education. Their situation is made doubly difficult by the combination of discrimination in schools and a lack of family support for education. Only 10% of Roma children are estimated to begin primary school, and of those who enrol only 10% continue to secondary education. Language barriers add yet another difficulty for Roma children in school. A lack of citizenship and identity documents also makes it difficult for some to gain access to school. NGOs are working with Roma children to help integrate them into society.

The European Centre for Roma Rights (ECRR) has a lawsuit against Croatia seeking justice for 15 Roma children subjected to racial discrimination in elementary schools. The Ministry of Education is accused of stopping funding for pre-school education for Roma children formerly operating in 6 schools in Medjimurje. Protests took place in Drzimurec-Strelec when a new wing was to be added to a primary school where Roma children are in the majority in the early grades. The school opened, and bilingual Roma assistants have been hired to help students overcome the language barrier. HIV-infected sisters were able to begin the 2005 school year without incident.

Reports do not indicate any restriction of academic freedom.

The Gender Equality law guarantees equality for women, but women still hold lower-paying jobs. Statistics show that 45% of women are formally employed and that women make up 5% of the unemployed. Women's wages are 10% below those of men on average.

Sexual harassment in the workplace is prohibited, but unions indicate the problem exists, notably in the textile and catering industries. Many women are reluctant to take action for fear of reprisal. Domestic violence is on the rise. Trafficking in women for the purposes of sexual exploitation is a serious problem.

The minimum age for employment of children is 15, and the law is enforced. Teenagers under age 18 are prohibited from working overtime, at night or in dangerous conditions. Recent changes to the criminal code have criminalised trafficking in children for purposes of sexual exploitation and labour. A national ombudsman for children is working to remove children from exploitative situations and return them to school.

Workers have the right to form and join trade unions. Estimates indicate that 64% of workers are members of unions, which are independent of political parties. Collective bargaining is practised. Members of the armed forces, the police and the civil service are not allowed to strike. A strike is legal at the end of a contract for those with the right to strike. Both public and private sector workers have conducted strikes.

Forced or compulsory labour is prohibited, but isolated instances are still reported. The national, minimum, monthly net wage of US$276 (1,850 Kuna) does not provide a decent standard of living for a worker and family. Trade unions calculate that even the average monthly net wage of US$757 (4,352 kuna) does not meet the minimum cost of living. Non-payment and late payment of wages is a problem. The labour law provides for a standard work week of 40 hours.