CROATIA Trends and Developments Contributed by: Ivan Gržić, TUS & GRŽIĆ
ecution and the deterrent effect of sanctions. In that sense, formal legislative harmonisation represents only an initial stage, while genuine transformation requires profound institutional change. For the Republic of Croatia, this entails the need for continuous investment in institutional capacities, strengthening expertise in the field of financial inves - tigations, and developing a co-ordinated approach among different authorities. It is particularly important to ensure a balance between repressive and preven - tive mechanisms, in which compliance and business integrity assume increasing importance. In a broader sense, OECD accession should not be viewed solely as a political or economic objective, but as a process of legal and institutional consolidation. Its success will depend on the ability to establish a system that not only formally satisfies international standards, but also implements them consistently in practice. It is precisely in that dimension that the key difference lies between normative declaratory align - ment and the genuine effectiveness of the rule of law.
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