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There are significant differences between urban changes affecting large, medium and small size cities in the postsocialist world of Eastern Europe. The regional centre of Eastern Croatia, the city of Osijek, is one of the examples of shrinkage showing declining trend and the most concerning demographic one. This paper introduces the dynamics and processes of change that have affected the urban area of Osijek, defined as functional shrinkage of the Osijek city core since the arrival of the new economic and political system. It combines an overview on the structures of decision making and quantitative indicators of changes in construction industry. It charts intensive reconstruction and new aesthetic of central public places and degradation of the street areas with the intensive housing emanating from the power of free market. The study is based on data obtained from a review of the literature on shrinking city studies as a platform for critical review. Official documents, statistical censuses, maps, authors’ and historical photos have also been utilised in the field work. The paper brings forward some key challenges facing the urban planning profession in post-socialist Osijek: how to ensure balanced and coherent changes in urban fabric among misbalanced interests.
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