The reorganization of the Croatian Ministry of Defense is being conducted and structured in ways that will ensure future civilian control of the Armed Forces. In accordance with these measures, reductions in the number of employees, as well as the transfer of a portion of operational duties from the Ministry of Defense to the General Staff of the Armed Forces of the Republic of Croatia, particularly with regards to issues concerning the management of personnel, will soon be under way.

  The reorganization of defense structures in the Croatian Armed Forces will also encompass a new military-territorial division, including a reduction in the number of Operational Zone Centers from 6 to 4.  These Operational Zone Centers will in the future  include: Zagreb, Osijek, Rijeka, and Split or Knin. In addition, there will also be significant reductions in the number of professional brigades, whereby each Operational Zone Center will have one professional brigade unit allocated to it.  At the same time, Croatian Armed Forces headquarters are expected to increase their efficiency by reducing the number of support staff personnel, particularly administrative staff, and by increasing the number of positions for those who have made invaluable contributions though their direct service and participation.  These reforms will in turn help implement the foundational changes necessary for the specialized instruction of Croatian conscripts, by improving the conditions in which they live and work.

  The Department of Human Resources of the Ministry of Defense will be reorganized to better meet the needs and requirements for development and modernization of the Croatian military, and to better prepare the Armed Forces of the Republic of Croatia for their future role.  There will also be some changes and developments underway in the educational structure of personnel, so that they can be better integrated and tied into the existing civilian educational structure, and a new system of receiving payments is in the process of being constructed. This process will be begun by reforming the laws which have jurisdiction over the defense sector, so that they can better adhere to European standards and norms.  These include, The Law of Defense (Number 74/93 of the Official Gazzette) and The Law of Service in the Armed Forces of the Republic of Croatia (Number 23/95 and 33/95 of the Official Gazzette).  It is important to note that changes to the latter law are currently being discussed by the Croatian parliament, which is expected to ratify a new law that would reduce the current 1 year mandatory army service.  Adoption of this new law will mean that as of January 1, 2001, 6 months will be the mandatory time required of young Croatian conscripts for completion of their military service.  Currently, the effects that such a reduction in army service duty will have on two generations of conscripts, is being analyzed. The number of active employees in the Armed Forced will also be reduced from 36,000 to about 25,000 employees.

  The formation of a strategy that will modernize the Armed Forces of the Republic of Croatia, will take place in congruence with integration into western security structures as well as the overall economic development of Croatia.  Decisions will also be made concerning priorities, trends, the speed of modernization, the purchase of new or constructible radar and defense systems, and the strengthening of priorities and possible strategic areas of development in the domestic military industry, for the purposes of reducing dependency on imports and increasing support for national security.  Stimulation of the domestic industry for military purposes will also aim at pursuing economic development plans such as the creation of new job opportunities for non-active personnel (ie: veterans, civilians, etc.). Most importantly, defense expenditures will be significantly reduced in accordance with European standards, thereby effectively bringing the Ministry of Defense budget for the fiscal year 2000 to  4,500,000,000 Kuna's (USD 562,500,000) which is an overall reduction of approximately 15%.

  Future reforms will also include: the standardization of uncombative structures, military training, and improvement of work and living conditions on military bases, with a particular emphasis on improving military installations designed for conscripts.  In addition, plans are underway to reform the grouping of warehouse installations, as well as the establishment of a modern system of safe-keeping over mine-explosives and other material provisions and to begin the construction of a modern information and communication system.

  In the framework of strengthening international military cooperation, it is expected that bilateral and other military agreements will be signed with the United States and European countries, and that a higher level of cooperation will be sought with neighboring states and partner countries.  In addition, expanding participation in peacekeeping operations under the UN and the OSCE (Organization for Security and Co-operation in Europe), as well as carrying out responsibilities for pledged international agreements and fulfilling the remaining conditions necessary for entrance into Partnership for Peace and NATO, remain the top priorities and goals of the Croatian Ministry of Defense.

  To assist in realizing the forementioned strategic goals, the Ministry of Defense of the Republic of Croatia has begun preparing a White Book as a means through which to ensure complete and total transparency of the defense system.