Eastern Croatia has recently proven to be the greatest problem area of Croatia. The region lags behind as a conse quence of the interdependent influences of multiple factors, from the Croatian War of Independence (hereafter referred to as the Homeland War) and the detective (mistaken) model of ownership transformation and privatization during the transition period, to the consequential worsening of the sectoral structure. The effects of the war and the reduction in employment due to de-industrialization resulted in emigration, which has left deep and long term marks in demo graphic development Tins is visible in the deteriorated age structure, quickened aging process, negative natural change, i.e. overall depopulation, and a trend of demographic extinction. Unfavourable economic and demographic processes are reflected in the changes of regional identity, which is in turn have reflected in the attitudes of souths (students) from Eastern Croatia, who show, in ever greater numbers, the intent to live and work outside of this area.