The Republic of Croatia is located in southeastern Europe, bordered by the Adriatic Sea to the south, Hungary to the north, Slovenia to the west, and Serbia, Montenegro, Bosnia, and Herzegovina to the east. According to the 2001 census, the population of Croatia was 4,437,460. Croatia covers an area of 56,542 square kilometers (21,825 square miles). Northern Croatia is a plain bounded by

(MAP BY MARYLAND CARTOGRAPHICS/THE GALE GROUP)

the Drava River in the north, the Sava River in the south, and the Danube River in the east. A range of the Dinaric Alps follows the Adriatic coastline.

More than 60 percent of the property formerly owned by the state had been privatized by the early 2000s, and the privatization process was expected to continue. Agriculture was dominated by small farmers that comprise a strong political lobby. Tourist services accounted for a significant source of national income. Croatia's per capita income was...