1027 6 th International Conference “An Enterprise Odyssey: Corporate governance and public policy – path to sustainable future”, Faculty of Economics and Business, University of Zagreb, Croatia, June 13-16, 2012 STRATEGIC PLANNING AS A TOOL FOR BETTER PUBLIC POLICY GOVERNANCE – THE CASE OF CROATIA Authors: Dr. Marijana SUMPOR The Institute of Economics, Zagreb, Trg J. F. Kennedy 7, 10000 Zagreb Phone: +385 1 2362 200, Fax: +385 1 2335 165 E-mail: msumpor@eizg.hr Dr. Irena ĐOKIĆ The Institute of Economics, Zagreb, Trg J. F. Kennedy 7, 10000 Zagreb Phone: +385 1 2362 200, Fax: +385 1 2335 165 E-mail: idokic@eizg.hr Abstract Henry Mintzberg wrote about the rise and fall of strategic planning, but it seems that strategic planning as a public administration tool is well back and entered all spheres of public administrations at all governance levels in the European Union, in Croatia as well. The purpose of this paper is to question the applicability of entrepreneurial strategic planning approaches in public administration practices. The trend of new public management as part of public sector economics has released its roots into public administrations worldwide. However, it is questioned, if by legislation foreseen procedure of strategic planning influences the improvement of the way how public administrations operate? Is performance improved? Is spending more rational? Are actions more accountable? And finally, is the State better managed? These questions are beyond political-economic discourse about the role of government and market. They aim at better public service provision and to create favourable conditions for economic growth and development. The main results of this research will be reflected in findings about strategic planning as a new approach within Croatian regional development policy and the budgetary process. Theoretical and practical progress is presented and critically discussed, and questions for further research and policy recommendations are proposed. Key words: Public policy, strategic planning, governance, regional development, budgetary planning JEL: H61 (Budget Systems), H83 (Public Administration), P11 (Capitalist Planning, Coordination and Reform), R58 (Regional Development Planning and Policy)