Croatia is today negotiating for full membership of the European Union and now finds itself at a social and economic turning point that will result in new opportunities and new challenges. This turning point requires us to review our social and economic advantages, and to identify the shortcomings and weaknesses that prevent us from fully and efficiently making the most of all the opportunities arising for the Croatian economy and society. Croatia wishes to be a competitive member of the EU, and to ensure its citizens an appropriate standard and quality of life. The Strategic Development Framework, which covers the period up to 2013, describes the manner in which prosperity may be ensured for Croatia in a competitive market economy within the framework of a welfare state adjusted to the conditions of the 21st century.