Modern economies are mainly permeated with various forms of capitalist system. Capitalism encompasses most countries of the world, including the Republic of Croatia. There are different types of capitalism as well as differences in the performance of individual countries. This paper will analyse the activities of selected European Union countries - Denmark, Finland, the Netherlands and Sweden – and also the Republic of Croatia as examples of the different forms of present capitalism, as well as different economic performance. The analysis of these countries will provide insight into the main shortcomings and opportunities for improving existing economic systems. The focus is on the importance of institutions in improving economic growth and development. Therefore, the governments of individual countries have a very important role, which with their strategies, programs and interventions in market mechanisms stimulate economic activity and increase the market competitiveness of the country. Also, the main economic factors such as trade, industry and banking system will be analysed in the context of the economy of the Republic of Croatia. In addition, tourism has a very important role in the economy of Republic of Croatia, and for this reason, a special chapter will be based on the analysis of tourism in the Republic of Croatia as one of the key factors of the Croatian economic system.