HIP grew out of a conservative citizens' association known by the same
initialism, called "Croatian Identity and Prosperity" (), established by conservative politician
Miroslav Tuđman, son of the late
Franjo Tuđman. It was formally registered as a party in January 2002, at the time when the main conservative party
Croatian Democratic Union (HDZ) was going through a period of considerable internal turmoil brought about by their defeat in the
2000 general election. HIP sought to rally right-wing politicians and voters who had been disappointed with the party's change in position from right-wing to
centre-right under the guidance of the newly elected party chief
Ivo Sanader. HIP thus advocated a return to conservative nationalism which had been espoused by HDZ and its longtime president Franjo Tuđman in the 1990s. It adamantly opposed Croatian government's cooperation with the
International Criminal Tribunal for the former Yugoslavia (ICTY) and extradition of Croatian army generals who had been charged with war crimes related to the 1991–95
Croatian War of Independence. The party held their first general convention on 30 November 2002 in Zagreb. In August 2003 two HDZ members of
Sabor, Ante Beljo and Dario Vukić, joined HIP, which made it a parliamentary party. In September 2003 Đuro Njavro, a former member of HDZ, also joined the party, which gave HIP a total of three MPs by the time the
4th Sabor assembly was dissolved in October 2003. ==Election history==