The process of transition requires universal reform of political and social structure. The purpose of this thesis is to define baseline and politics of the privatisation process and political, economic and social impact on The Republic of Croatia. After achieving its independency, Croatia has transposed inherited privatisation plan into new Croatian legislation. Social ownership, a form of collective ownership in the socialist economic system, has become the state ownership, and that empowered the economic role of the new state, instead of decreasing it. The process was interrupted by the Homeland War and many policies have not been implemented as well as in the other socialist states which were not under occupation. Using different sales methods, over the decade, the state was selling her ownership to a different private and public interest groups. In period since 1988 until 2004 the economy in transition has passed through two transformation phases and four privatisation phases. Chosen types of privatisation were not plausible to the economic conditions and resulted with social inequalities and increasing poverty. Formally, process ended after left orientated government has requested revision of transformation and privatisation. Also, some social surveys indicated increased disaffection and outlined goals of the process, which supposed to tranquillize social tensions, have not been achieved. Croatian type of capitalism, overemphasized with tycoon privatisation and deficit of sociocultural capital, has not influenced on positive overcomes of privatisation politics, and economic, social and political consequences, even two decades later, still being felt.