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Diplomacy&Commerce www.diplomacyandcommerce.rs

May 2016 | ISSUE No. 3 | Price 350 RSD

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Photo: The Embassy of the Netherlands

Thriving Cooperation ATTILA PINTER

Ambassador of Hungary to Serbia

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Serbia is Again a Good Place to Invest ZORANA MIHAJLOVIĆ

Serbian Deputy Prime Minister and Minister of Construction, Transport and Infrastructure

BELGRADE IN ORANGE: KONINGSDAG

An Insiders Look at the Art Collection At US Ambassador's Residence Pavle Beljanski Memorial Collection in Novi Sad

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The U.S. ambassadorial residence of H.E. Kyle Randolph Scott has been turned into a kind of art gallery. Some of the most beautiful pictures of contemporary Serbian art from the Memorial Collection of Pavle Beljanski in Novi Sad will be exhibited there until 14th July this year

Israel - the Startup Nation

The National Day of Norway

H.E. YOSSEF LEVY

ARNE SANNES BJØRNSTAD

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Slow and Bumpy Ride Towards Positive Change BRENT SADLER

Former CNN Senior International Correspondent

Israeli Ambassador to Serbia

Norwegian Ambassador to Serbia

EDITORI AL

The Crossroads Are Approaching

CONTENTS

Dear readers, I must admit that Serbia is quite a curious place. Following these latest elections, the common European trend towards right-wing parties is obvious, as they managed to enter the parliament. However, unlike other Southern European countries, like Greece or Spain, left-wing parties achieved a surprisingly weak result. In the meantime, the most exciting presidential race in many years is reaching its climax in the United States. And, furthermore, in the theatre of the absurd which characterises Europe and the world these days, at this moment we still don’t know the composition of the Serbian Parliament; Macedonia is “under Ukrainisation” and many countries in Eastern Europe are deeply divided; Spain still has no government for fifth consecutive month, due to such divisions, and the two main parties lost the presidential elections in Austria and we have the surprising final match-up of the Free Party versus the Green Party! Terrorism hit Western Europe and Eastern Europe is becoming “righter and righter”, while the UK is contemplating Brexit and, if they decide to stay, whether or not it would be clever and wise to let anyone in. Which way are we headed in the future?

Perhaps 300+ million people in the U.S. will once again decide the fate of the world by choosing their leader. Obama opened up to Cuba and Iran and justified his Nobel Prize, at least partially, while concluding his second term. Economic growth is quite meagre everywhere, while we are perhaps approaching “secular (permanent) stagnation”. Is that conceivable at all? It will never be better, nor will it ever be worse. It will just be the same. But nothing stays the same and we are living in very interesting, if unpredictable, times.

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LEADING MEANS CONTINUOUSLY INNOVATING

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SERBIA IS AGAIN A GOOD PLACE TO INVEST ZORANA MIHAJLOVIĆ

Serbian Deputy Prime Minister and Minister of Construction, Transport and Infrastructure

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THRIVING COOPERATION ATTILA PINTER

Ambassador of Hungary to Serbia

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EUROPE TURNING A BLIND EYE TO VUČIĆ FLORIAN BIEBER

Professor, University of Graz ŽIKICA MILOŠEVIĆ

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Editor-in-Chief

SLOW AND BUMPY RIDE TOWARDS POSITIVE CHANGE

Diplomacy&Commerce www.diplomacyandcommerce.rs ŽIKICA MILOŠEVIĆ

NATAŠA NEŠIĆ

RUŽA RISTANOVIĆ

Crown-Prince

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tanja.bankovic@color.rs

ruza.ristanovic@color.rs

ALEKSANDAR MLADENOVIĆ

MILICA ĐOKIĆ

aleksandar.mladenovic@color.rs

milica.djokic@color.rs

VANJA KOVAČEV

Photos

Graphic designer

Advertising manager

vanja.kovacev@color.rs

JOVANA MARKOVIĆ Advertising manager

jovana.markovic@color.rs

Director

GORAN ZLATKOVIĆ GETTY IMAGES

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DANUBE STRATEGY – STEP CLOSER TO EU INTEGRATION Serbia’s inclusion in trans-European transport and energy networks

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EQUALITY IS STILL AN OBJECTIVE TO BE REACHED Where are women in Serbian society in 2016?

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TANJA BANKOVIĆ

Magazine director

In search of the digital world

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Former CNN Senior International Correspondent

WE JUST WANT OUR BELONGINGS BACK

Editorial manager

WHAT REALLY TINGLES OUR EXCITEMENT?

AN INSIDERS LOOK AT THE ART COLLECTION

Advertising manager

natasa.nesic@color.rs

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BRENT SADLER

Editor in Chief

zikica.milosevic@color.rs

INGEBORG ØFSTHUS

Telenor Serbia CEO

The Memorial Collection of Pavle Beljanski in Novi Sad

A PATH TO MODERN MEDICINES WITH THE PVA SYSTEM

ALEXANDER KARAĐORĐEVIĆ

How to access innovative medicines in Serbia

MAKING A DIFFERENCE ARNE SANNES BJØRNSTAD

Norwegian Ambassador to Serbia

Translation and lecturer

MRP EDITORIAL

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ISSN 2466-3808 = Diplomacy & Commerce COBISS.SR-ID 303269895

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Serbia is Again a Good Place to Invest The priorities for the development of Serbia have finally been properly established; we have results and we are working on the right things. The new government just needs to continue working on that. We have to immediately advance, more, better, in order to make up the backlog. That’s because investors are not led by emotions, they are looking for a serious place, reliable, secure and stable in order to leave their money ZORANA MIHAJLOVIĆ

Serbian Deputy Prime Minister and Minister of Construction, Transport and Infrastructure

There is no room for relaxation and satisfaction in organisation, regardless of the good results, says Zorana Mihajlović, Serbian Deputy Prime Minister and Minister of Construction, Transport and Infrastructure, in this interview for D&C. In contrast, the new government will face a number of tasks, but it will be much easier to work because the methods of work and priorities are well placed. This, says Mihailović, has also been noticed by investors, as evidenced by the recently concluded agreement with the biggest low-cost airline Ryan Air, which did not seek any subsidy when deciding to fly from Niš, as well as many other investments started or completed in the previous period. At the same time, the government has also increased the efficiency of its work, so it invests and oversees work even better and faster, which is primarily evident in the field of road infrastructure.

If we count the three main tasks of the government as reducing the fiscal deficit, reforming unsuccessful public enterprises and resolving the fate of companies undergoing privatisation, how much headway has been made in solving them, in your opinion?

— They have progressed quite a lot. If we bear in mind that for decades nothing was done in these fields, or it was done wrongly, which is even worse because it now needs to be corrected,

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then we now have results for the first time. These are smaller budget deficits, the beginning of the reform of public enterprises and, thus, for the first time in who knows how many decades we have one part of the railway, Serbia cargo, which is self-financing and not on state subsidies. From Smederevo we received the most important news for that city which everyone had virtually written off since the departure of U.S. Steel from the steelworks. Now we have the Chinese, which will revive this company with a significant impact on

THE PRIORITY MUST REMAIN CREATING JOBS THROUGH THE ATTRACTING OF INVESTMENTS, WORK ON THE CONSTRUCTION AND RECONSTRUCTIOWN OF ROADS AND RAILWAYS, AND REFORMING THE SYSTEM THAT WILL MAKE THE ENVIRONMENT ATTRACTIVE FOR INVESTORS

Serbia’s GDP, which supports the life of an entire city. We also have visible interest of investors from America who have started building the “New Niš”, which will be the largest construction project launched after four years of waiting. The start of construction of one of the most famous hotel chains in the world, the Hilton Hotel, has also been announced in Belgrade.

What do you see as the main priorities of the new government?

— The priorities for the development of Serbia were finally set properly; we finally have some sort of results; we are finally working on the right things, we now just need to continue.

This means reforming key public enterprises, because there is no more room for inefficiency, idleness, losses that are subsidized by the state.

If I managed in my ministry to make progress in moving Serbian Railways out of the mud, I do not see any reason for that not to be done with all the other clots in the systems that only suck money from the budget and do not contribute.

That will then direct the entire economy to the right track. The priority must remain creating jobs through the attracting of investments; the

priority must remain further work on the construction and reconstruction of roads and railways, on reforming the system that will make the environment attractive for investors, a system that will provide an online service for investors and citizens, for which electronic construction permits are a prime example that it can be so.

Alongside the reform of the remaining key sectors, it should be added to maintaining the continuation of Serbia as a politically stable country should certainly be added to this, because we all know that without it there is no sustainable economic development.

At what stage is the reform of public administration, the efficiency of which is one of the most important preconditions for attracting foreign investors?

— In the reform of public administration we have to take three steps at a time. We are so far behind.

But if you’re persistent that is possible.

We need a professional, efficient administration, without party-affiliated employment, and I am convinced that the new law will do that.

No one in Serbia believed a year and a half ago that a building permit could be obtained in a few days, instead of a few years, which was the practice previously. The first shock occurred when I used the new Law on Planning and Construction to shorten this period to 28 days. This great step, however, lasted less than a year, because the next one followed on 1st January this year, when everything became electronic. So, the point is that we have no time to lose, and we do not need to live on the celebration of one success for several years, but rather we must immediately advance, more, better, in order for us to make up for the backlog. Investors do not choose on the basis of emotions, meaning it is sufficient for s to be appealing to them because we are, like, helpful, cheerful and happy. No, they are seeking a serious place, reliable, secure and stable, in order to leave their money.

To what extent is a milestone represented by your cooperation with local governments, which led to the much more efficient issuing of building permits, followed by e-permits?

— That is crucial. Don’t let it bother you to constantly talk on the phone or go constantly to visit your associates. Sometimes you simply have to motivate the people around you; it is not enough to write an email and say “they did not answer”. I never accept that response from my associates.

Among the good news is an increase in public investments. Is that a sign that the government has finally found the key to effectively planning major investment projects?

— In just one week in April, the cities of Serbia were provided with about 20 million euros.

Kruševac, with the help of the Government of Serbia and the Ministry, received from Germany’s KfW bank 15 million euros for the construction of a wastewater treatment plant, while Kruševac and Vranje will receive a million euros in grant aid for organising the field of municipal waste and landfill facilities, while the Ministry has also secured 3.2 million euros for the first phase of construction of a water factory in Užice.

Another 10-kilometre section of the bypass around Belgrade was completed recently and

the end of construction is finally in sight after 26 long years of delays for various reasons.

That effort cannot go unnoticed among investors. So we have a domino effect of investments, which is what we hoped for. Since the Government has invested in equipping the airport in Niš, in order to equip it for operations under wintry conditions and improve the generally poor conditions, the world's largest low-cost airline, Ryanair, recognised its own interest, without any subsidies or incentives, in introducing flights from Berlin to Niš. In November they will introduce two to three flights a week, which is very good news, not only for the citizens of Niš, but for the whole of Southeast Serbia.

Growth in the construction sector has contributed strongly to GDP growth. Which innovations can we expect in this sector that would contribute to the further growth of this branch of industry?

— The value of completed construction works in the territory of Serbia throughout 2015 has grown in real terms by 18.3%. Gross domestic product in the construction industry increased in 2015 by 11.1% compared to 2014. In the structure of gross added value, construction increased from 6.5% in 2014 to 6.9% in 2015.

The number of building permits issued since the introduction of the unified procedure on 1st

if we look at the statistical data for Israel.

Why is that and what do the statistics of your ministry suggest?

— I hope that Israelis, like many investors who have shown an interest in investing in Serbia since we started recording growth in the construction industry, have recognised our efforts to raise this branch of industry, our efforts to create a good environment for construction and our efforts to justify the stance that Serbia is a good place in which to invest.

The Israeli Ambassador once called for the greater engagement of our construction workers on large projects in that country.

How much headway has been made in the operationalisation of that initiative?

— The overall effort to elevate the construction industry primarily implies strengthening our construction companies, which were once the main builders all over the world. We are doing everything to restore that former glory, to again build as the main contractors, and not just subcontractors. We have the potential to achieve that. More than a year ago we compiled a white and black list of construction companies.

Following the last update for the fourth quarter of 2015, the result showed that more than a year after that list was created the number of construction companies on it grew by

IF I MANAGED IN MY MINISTRY TO MAKE PROGRESS IN MOVING SERBIAN RAILWAYS OUT OF THE MUD, I DO NOT SEE ANY REASON FOR THAT NOT TO BE DONE WITH ALL THE OTHER CLOTS IN THE SYSTEMS THAT ONLY SUCK MONEY FROM THE BUDGET March 2015 until the end of 2015 is 33 per cent higher than the same period in 2014 and 29 per cent higher than the average in the same period during the previous seven years. I think these statistics, completely objectively, speak for themselves.

How much have the laws emerging from your ministry, such as those on planning and construction and the conversion of construction land, opened a window to increased investment in this sector?

— These reform laws were essential elements that investors lacked. If you use these laws to show them that you really want to ease their business and that they are welcome to come, money and new jobs come on their own.

But, apart from these two laws, the Law on Legalisation is equally important. It will create a base that we must continue to upgrade, because we cannot have order in the construction industry while illegal construction is flourishing across the road. This law will solve the problem of a million and a half illegal buildings.

Although we have significant activity among large investors in the real estate sector, that often escapes our indicators, for example

about 13 per cent (from 540 companies in 2014 to 608 construction companies last year). Apart from the total number of analysed construction companies, the number of those on the white list has also been increasing, so for the last quarter of 2015 it included 379 companies, which is 62.33% of all companies on the list. On the other hand, the number of construction companies with zero points that are on the “black list” also fell – in 2015 there were 88, or 14.5%, while 2014 there were 86, or 15.9%. Severe injuries at work fell by half in 2015 (from 54 in 2014 to 27 in 2015) and, thanks to the Ministry’s insistence on frequent control checks, more violations of workers’ rights on roads have been recorded. So in 2014 36 workers were recorded on the black list, while in 2015 there were 82 of them.

This tells me that builders are on the right track to again building everywhere in the world, including in Israel.

What problems would you most like to tackle in the new government?

— It's important to me just to continue with all that has been started. Projects must not stand still; we must not send investors a message that we will not continue with the reforms launched.

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THE END OF HEILE WELT

Germany’s Illusions Have Been Shattered More than 1m refugees arrived in Germany last year, mainly young Muslim men. They entered a society that, relative to other Western countries, has embraced multiculturalism only recently. Suddenly these foreigners are in co-ed schools, discos, swimming pools, hospitals and parks.

Some of their interactions with their hosts go easily. Others do not—as epitomised by New Year’s Eve in Cologne, where gangs of North African men sexually assaulted scores of German women who had come to watch the fireworks Suddenly these foreigners are in co-ed schools, discos, swimming pools, hospitals and parks. Some of their interactions with their hosts go easily. Others do not—as epitomised by New Year’s Eve in Cologne, where gangs of North African men sexually assaulted scores of German women who had come to watch the fireworks.

Germans who only a year ago oozed confidence about their economy and their country are now losing faith that they “can manage”, as Angela Merkel, the chancellor, likes to put it. Many fear the crisis will render Germany unrecognisable. A sense of loss pervades many conversations.

To grasp this trauma it helps to understand the German zeitgeist that developed (mainly in the former West Germany) in the post-war years, and lingered in the reunited country.

Germans call it Heile Welt. The term means something like “wholesome world”, and describes an orderly, idyllic state. It may connote the nurturing environment parents create for their children to protect them from life’s ugliness, or a private oasis of peace amid public chaos. It was a state of mind that Germans clung to after the second world war.

Because it implies a degree of escapism, the term can be used sardonically. In 1973 Loriot, West Germany’s most incisive humourist, chose it for the title of an anthology of cartoons skewering his country’s bourgeois pretensions. In 1998 it was the title of a novel by Walter Kempowski, set in 1961, in which a teacher moves to an idyllic village but discovers that behind every silence and glance lurks a demon of the Nazi past.

In the immediate post-war years, with Holocaust, firebombing, mass rape and the carving up of their nation still recent memories, Germans flocked to watch Heimat (“homeland”) films. Usually shot in the Alps or in heaths and forests, they featured clean, simple tales of love and friendship between pure women and men dressed in regional garb. Outside the cinemas, Germans revelled in their “economic miracle”, as they rebuilt a devastated country into a commercial powerhouse.

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Foreigners were allowed into this Heile Welt, but not entirely accepted. To man its assembly lines, Germany invited workers from southern Europe and especially Turkey. The millionth arrived in 1964 and got a motorcycle as a gift.

By the time the programme ended in 1973, 4m foreigners lived in West Germany. But they were called “guest workers” rather than immigrants, on the premise that they would ultimately leave again. Unsurprisingly, most stayed. Yet mainstream Germany continued to see itself as ethnically homogenous—a Heile Welt in a tribal sense.

As part of Heile Welt, West Germans atoned for their past by becoming good democrats, good Europeans and ardent pacifists. But they did so like a teenager who experiments with increasing autonomy, confident that his uncool but protective parents are always standing by.

For West Germany, dad was America, which held its aegis over the country throughout the cold war. Mum was France, which despite its nervous vanity gracefully accepted Germany back into the European family.

MANY FEAR THE CRISIS WILL RENDER GERMANY UNRECOGNISABLE. A SENSE OF LOSS PERVADES MANY CONVERSATIONS The dystopian flip side of Heile Welt was never far away. If the cold war had ever turned hot, Germany would have been vaporised first. (“The shorter the range, the deader the Germans,” missile strategists used to quip.) West Germany even had terrorism. But its terrorists were native white leftists who killed industrial tycoons.

Ordinary Germans never felt threatened.

In their private lives Germans created micro-idylls. They kept garden plots orderly, guarded by the requisite gnome. East Germans seeking refuge from the cynically implausible Heile Welt offered by communism retreated to “the niches”: private book readings among intellectuals, or nude bathing with friends by

pristine lakes. East or west, order was paramount. Visitors were impressed (if not intimidated) by how fastidiously Germans separated their white, brown and green glass for recycling.

One by one, these facets of Heile Welt are becoming brittle. Russia is aggressive again; Germans fret that, when it comes to it, the ageing American dad may not show up. Having cultivated non-violence to the point of pacifism, they now realise that defence of their state and their values may someday require them to fight, kill and die again. The terrorists they now face are not German leftists, but foreigners ready to kill women and children. Globalisation no longer just means exporting BMWs, but also allowing in Muslim refugees, some of them with attitudes on gender and Jews that Germans find offensive.

GNOMIC WISDOM

Some Germans react by fleeing into ever tinier Heile Welten. “We are becoming ever more like our garden gnomes,” says Wolfgang Nowak, one of Germany’s most astute social observers—inward-facing rather than open-minded.

Every Monday a movement called Pegida, or “Patriotic Europeans Against the Islamisation of the Occident”, marches through Dresden. For many in the surrounding area of Saxony, these gatherings have become convivial rituals similar to American tailgate barbecues, but to outsiders they appear xenophobic and menacing. Even moderate Germans are turning against globalisation. Many see a free-trade area being negotiated between America and the EU not as an opportunity but as yet another threat to their way of life.

Above all, the tone of German conversations is changing. Language in the era of Heile Welt was sanitised, with political correctness often taken to ludicrous extremes. Now, in the name of “telling it as it is”, it is becoming coarser and aggressive. It is not clear what kind of world will replace the wholesome one the Germans once dreamed up. But it will be a rougher one.

From The Economist, published under licence.

The original article, in English, can be found on www.economist.com

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Thriving Cooperation Bilateral relations between Serbia and Hungary are excellent. This fact has a positive effect on all segments of mutual cooperation, including political and economic questions, and the issue of having communities of national minorities living in the two countries

ATTILA PINTER

Ambassador of Hungary to Serbia

The recent visit of Hungarian Prime Minister Viktor Orban and the upcoming third session of the Hungarian-Serbian joint government summit are just some of the examples of the excellent bilateral relations between Serbia and Hungary, says Ambassador Attila Pinter in this interview for D&C, which sees him speak in detail about relations between countries in the global, European and bilateral context.

Do you believe Europe’s Agreement with Turkey has put an end to the refugee wave in Europe?

— The Agreement between the EU and Turkey is a huge step forward, which can serve as the basis for future international and regional cooperation in tackling the migrant crisis. At this point we hope that the agreement will fulfil its role.

However we have to see that agreements like this are only dealing with the symptoms of the wave of refugees, and will not cure the root causes. The war in Syria, Iraq and Libya has to come to an end as soon as possible, and normal living conditions have to be restored. This is the only solution that can stop people leaving their homes and their countries. We are very pleased to see that the international community has been doing its best of late to reach a lasting solution for the crisis.

What are Hungary’s main security concerns connected to the current migrant crisis and, in this context, how do you view the fence erected on the border between our two countries?

— The Hungarian Government has several times made its position clear on this issue. On the one hand, the Schengen rules have to be respected and implemented in all Member States. These regulations have served and are serving the benefit of all sides, no matter if the given country is a member of the Schengen Zone or not. On the other hand, those people in urgent need must receive help as soon as possible. Still this help in practice cannot mean simply opening our

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borders and allowing people to enter without control. In this way we would endanger the simple existence of Schengen and at the same time risk the lives of our citizens. That is why we believe that measures taken were, and still are, required. When Hungary started to implement the actions there were, of course, critical voices.

However, more and more countries agree with our policy and are following our practice. To our greatest satisfaction, Serbia and the Serbian Government perfectly understood our reasons from the start. I can only underline here the importance of continuous dialogue, so that the steps of one side cannot be misinterpreted.

Do Serbia and Hungary have outstanding issues that could lead to delays in Serbia’s EU integration process?

What are the main issues at present when it comes to cooperation between Serbia and Hungary?

— As you are probably aware – related to the EU integration process of Serbia – on 3rd March the so-called Action Plan on the Rights of National Minorities was adopted by the Government of Serbia. During the formulation of the document all National Councils, including the Hungarian National Council, were involved in the process.

After a break of five years, the meeting of the Hungarian-Serbian Intergovernmental Joint Committee on Minorities was also held this April. Based on these recent experiences, I can only confirm that cooperation is excellent and all subjects can be discussed. I believe that if you asked the Serbian side, or the main representatives of the Hungarian community living in Serbia, you would receive the same answer.

— As both the Hungarian and Serbian Prime Ministers emphasised at their last meeting on 13th April, our bilateral relations are excellent and at the highest level possible. This fact has a positive effect on all segments of our cooperation, including the political and economic question, and also the issue of communities of national minorities living in our countries. Joint governmental summits are an excellent forum for cooperation, as they provide an opportuni-

THE HUNGARIAN APPROACH TO THE MIGRANT CRISIS AND ECONOMIC POLICY ARE BECOMING EXAMPLES OF POLICIES THAT OTHER COUNTRIES WANT TO FOLLOW ty to discuss and advance the most important issues affecting our countries. The third session the Hungarian-Serbian joint government summit is to be held in Serbia this year.

We strive to further expand infrastructure ties between our countries. Our governments have decided to launch a comprehensive cross-border programme on the development of transport infrastructure and border crossing points, in order to further strengthen ties between the people living on both sides of the border. This intention was set down in the Memorandum of Understanding signed on 1st July 2015. The development of North-South infrastructure is vital for the Western Balkans and Central Europe. We consider the joint modernisation of the Budapest-Belgrade rail line as the “flagship project” of our cooperation.

— There is no such issue as of today, and I cannot see one emerging in the near future either. Serbia’s EU integration is also in line with Hungary’s interests. Hungary has, from the very beginning of Serbia’s EU integration process, emphasised the importance of tackling all possible differences on bilateral bases. This has been and will remain our main objective in the future as well.

How would you assess cooperation between the two countries when it comes to the rights of minorities?

You served as the Hungarian Ministry of Foreign Affairs’ Chief for the Western Balkans. On the basis of that experience, how do you view these countries’ EU membership aspirations?

— Every country in the region has EU membership aspirations, but to reach this goal every country has to fulfil preconditions for fully-fledged membership. If we compare the EU integration process of Central European countries with that of Southeast European countries, we have some differences. Back 15-20 years ago the EU did not have any experience of how to integrate so-called post-communist countries and the acquis communataire was much smaller than today. Now the EU has had more experience regarding the integration of the former Eastern Bloc.

As far as Serbia’s membership is concerned, I am optimistic. The Serbian Government has done a very good job and I am sure that the Cabinet and the administration will continue with that until the date of accession. Hungary has always supported the EU accession of the countries of the Western Balkans, and we would like to remain the standard-bearer of this mission.

To what extent has Hungary succeeded in leading policies harmonised with those of the EU while simultaneously implementing its own foreign policy and economic goals, which include – among other things – good relations with Russia and China?

— In order to avoid any misunderstanding, we have to make one thing clear right at the beginning: when a country becomes a member of the European Union it has to harmonise foreign policy goals with the common EU policy. In 2010 our Prime Minister Viktor Orban asked: “why should we stand on one foot, if we have two feet?” Despite the fact that we sail under the flag of the West (European Union), in the global economy the Eastern wind blows, which can easily overturn the boats of those States which are weak and don’t have diversified relations. Of course, our policy has to be in line with the EU’s foreign policy, but individual Member States can set their own priorities. The “Eastern Opening Policy” is Hungary's answer to all the ongoing processes in world politics and world economy, and which can be clearly seen by the international community too. The doctrine is not aimed at creating good contacts with one specific country, but rather is more about building strategic alliances with states whose potential is not recognised. The Hungarian government has recognised the importance of cooperation with China and announced a dual policy of cooperation, saying that while the country is making efforts to maintain cooperation with western allies and the EU, it simultaneously builds good relations with China, as one of its main Asian partners, in accord-

ance with the “Eastern Opening Policy”. The same situation applies when it comes to Russia. Although Hungary respects the EU’s decision about the introduction of sanctions against Russia, it uses every opportunity to convince Europe that the crisis can’t be handled efficiently in this way. The sanctions introduced in August 2014 caused a loss of nearly $4.5 billion in exports for the Hungarian economy, and the greatest losses were registered in the field of agriculture and food processing.

THE BUDAPEST -BELGRADE RAIL LINE FORMS A BRIDGE NOT ONLY BETWEEN OUR TWO COUNTRIES, BUT ALSO BETWEEN EAST AND WEST How much do you think Hungary’s unorthodox economic policies have helped the country overcome the consequences of the global financial crisis?

— The structural reforms which were implemented by the Hungarian government led to an economic and financial turnaround in Hungary, the unorthodox crisis management has proven successful. The country is not under the EU excessive deficit procedure anymore, the deficit declined and the country is on its new, sustainable economic path. Without the introduction of structural reforms, we wouldn’t be able to achieve sustainable GDP growth in the medium-term,

while it would have been impossible to reach higher employment rates and a balanced budget.

How much progress has been made in Hungary when it comes to realising plans to rebuild the Belgrade-Budapest railroad?

— The ongoing Budapest-Belgrade rail line renovation project has been progressing successfully.

On 15th August 2015 we received a financial and investment offer from the Chinese side, and we started the negotiations for the preparation of the intergovernmental agreement. On 24th November 2015, in Suzhou, on the margins of the China-CEE 16+1 Summit, we signed an intergovernmental agreement. The next working group meeting is planned to be held before the summer holidays.

How much could this infrastructure connection create room for wider economic and cultural cooperation, as well as cooperation in the field of tourism?

— The Budapest-Belgrade rail line forms a bridge not only between our two countries, but also between East and West. The completion of the rail line will decrease the travel time between the two capitals to three hours. The development of the transport infrastructure between our two countries, and here we mean not only the railway line but also the opening of new border crossings, will definitely make our capitals more attractive to tourists, especially to those from the Far East, and we will be able to offer them regional and thematic tourist tours (wine routes, city breaks, spa tours etc.).

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Photo source: www. florianbieber.org

Europe Turning a Blind Eye to Vučić “I wouldn’t classify SNS and SPS either as proEuropean or anti-European parties – those are parties of ultimate pragmatism and with an interest in being in power,” says Professor Florian Bieber from the University of Graz in this interview for DW I’ll read you a couple of headlines from the world media about the elections in Serbia and ask you to please comment: “Serbian voters strongly support the pro-EU policies of its leader” (Reuters). “Serbia gave Vučić consent for entry into the EU” (Die Welt).

— This is a mistaken interpretation which indicates that they do not follow the internal politics of Serbia, but rather only what Vučić says abroad. That’s because Vučić and his party say that they advocate strongly for entry into the European Union, while, on the other hand, the excuse for the election was the need for a mandate for reform. Viewed from internal politics, it looks more like an authoritarian system dominated by Vučić.

The issue of the EU did not come up during the election campaign and was not the overriding objective of the elections.

Bavarian Radio and Television: “Mandate for tough times”. What is it that should now be difficult that has not been to date?

— It should be considered that the current Government had the kind of majority before the election that no previous government has ever had, and this also goes for the biggest ruling party. Even the Socialist Party under Slobodan Milošević did not have such a majority. Therefore, the idea that it needed a stronger mandate does not hold water. Yes, times are tough, but they were tough four or five years ago, and someone who has more than 50 per cent of seats in parliament does not need a stronger mandate.

Alluding to the popular TV series “Game of Thrones”, in Serbia it could be said that “The Reform is coming”. And to date reforms have been more announced than implemented, and the results are not really visible.

— And that is connected to the early elections.

Because when you hold elections after two years, you can always say of the promises of the previous elections that you did not have a full four years to implement them. The rhet-

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oric of reform dominates above the content of reforms. Thus, there is no need to overly justify unfulfilled promises and it is easier to get into the mode of permanent election campaigns. This actually makes it difficult to really implement difficult reforms.

What is the essence of these reforms and why are they painful? Does it boil down to the liquidation of loss-making state enterprises, which actually means that many workers will be left on the streets?

— This is the part that certainly wouldn’t be popular. But it is also about the fact that European integration occurs through reforms in various areas, from public administration to the independence of the judiciary. This is in many ways at odds with the policy of the current government, which is trying to control and centralise important decisions,

I WOULDN’T CLASSIFY SNS AND SPS EITHER AS PRO-EUROPEAN OR ANTIEUROPEAN PARTIES – THOSE ARE PARTIES OF ULTIMATE PRAGMATISM AND WITH AN INTEREST IN BEING IN POWER as well as supplying party friends and members with functions. It should be noted that the percentage of the number of members of the Serbian Progressive Party in the population is about the same as it used to be in the League of Communists. Membership in the party has little to do with ideology and a lot to do with finding a practical livelihood. This is not compatible with the right reforms and the process of European integration.

Frankfurter Allgemeine Zeitung ran the headline: “Outcome of Serbian elections could mean a return to dark times”. This is a reference to the fact that more than 180 seats in the parliament belong to

parties from the regime of the 1990s, or SNS, which emerged from that group.

— This thesis is perhaps too dramatic, but of course it is disturbing that the three largest parties come directly from Milošević’s legacy. They have changed, but it is quite another question how deep-rooted that change is.

The Radical Party, which is again in parliament after a long break, is a naturally outspoken party that has remained unchanged in its radicalism, and it is not a positive signal that it has become the third strongest party. I wouldn’t classify SNS and SPS either as pro-European or anti-European parties – those are in fact parties of ultimate pragmatism with an interest in being in power. The rhetoric of European integration will be used as long as it enables them to stay in power. If this ceases to be the case, they will find other topics. Thus, their trustworthiness in any given direction is not overly great.

Vučić announced that he will only decide on a new government at the end of May. Will he use that time to seek a coalition partner?

— He announced even before the elections that he wanted to have a coalition partner, as he also did after the last elections, when he could have governed without partners but he still took the socialists. Thus he gains an opportunity to lay possible difficulties and problems at the feet of his coalition partners.

This will probably be the strategy once again.

The only question is with whom. Relations with the Socialists worsened during the campaign. However, new cooperation is not excluded, but it is no longer certain how that worked just a few months ago.

Despite a really convincing win, Vučić no longer gains with the Socialists the two-thirds majority needed to amend the Constitution. Such changes would probably be desirable for the EU, because of the policy towards Kosovo.

— If there is a will to amend the Constitution, i.e. to delete Kosovo from the preamble, then that could also be possible with the

support of the three lists also find themselves in the parliament, and which are committed to reform. The question is whether that political will can be agreed with these parties even with a topic where there is substantive closeness. Cooperation is made more difficult by the confrontational course that this government had, the demonisation of the opposition and the like.

Why is Vučić so popular in Europe?

— Because when speaking to the outside world he says what he should and acts as if he represents the correct positions on issues that interest Europe. He works constructively in relations with Kosovo and causes fewer problems than the previous governments did, which sometimes represented nationalist positions in order to appease voters. Vučić seems to be someone who addresses and takes matters seriously. At the same time, they turn a blind eye when it comes to internal political developments in Serbia. That’s because in Europe’s perception there is currently less interest in reform and EU expansion than in other issues. Preference is given to stability and reliability, and not the pace of reforms.

That’s precisely what I wanted to ask: it is striking that the German Christian Democrats support Vučić and are barely willing to utter the occasional word of criticism regarding the negative tendencies in Serbia.

Is that good for Serbia?

— I maintain that it is very destructive. Vučić’s government is highly praised in Austria, Germany and

other countries, while criticisms are rare. There are certainly good reasons to praise some decisions, such as the dialogue with Kosovo, which is an important advancement. But at the same time we should not forget that within Serbia itself the situation has become much more difficult in terms of media freedom, with constant pressure from the government and the ruling parties on the opposition and all critics. This is a development that has long-term ramifications for society and the state, while externally it is not taken seriously enough.

There is more appropriate criticism externally that for several years threatened the situation we are currently seeing in Macedonia.

You Recently wrote an interesting article following the referendum in which Dutch citizens rejected the agreement between the EU and Ukraine. Your thesis is that EU enlargement is frozen, and possibly dead. Can you explain your position?

— The Dutch referendum on the Free Trade Agreement with Ukraine was primarily a referendum against the EU. No one in the Netherlands was interested in the agreement with Ukraine.

EU opponents in the Netherlands can initiate a referendum against any enlargement of the EU. The Netherlands is just one of the countries in which there is strong opposition to further EU enlargement within the population – similarly to Austria, Germany and the Scandinavian countries. If there is any new referendum in the Netherlands – and for instance in France it has been promised that each subsequent EU

enlargement will be decided by referendum – a new rejection can be expected. One EU member’s rejection is sufficient to halt expansion. I cannot imagine any enlargement of the EU as long as the referendum instrument is available in individual Member States and as long as there is such scepticism regarding enlargement.

Is it dangerous for a country like Serbia to be denied a clear European perspective?

— It is very dangerous. In politics there is no vacuum – when one partner and one goal fails, it is likely for others to emerge. I don’t believe there is a long-term attractive alternative to the European Union, or to the democratic organisation that is offered by the rule of law and economic development like the European model. But an alternative could emerge sooner or later under Russian or other influences. We can already see that the crisis of EU integration has slowed down reform momentum markedly. It sometimes appears as if the EU simulates that it will expand, while the states of the Western Balkans simulate that they will reform themselves – and both sides know that this is a complicated game. * Florian Bieber, born 1973, is a political scientist from Luxembourg and one of the top experts on the Balkans in the German-speaking world. He is a professor at the University of Graz, where he runs the Centre for Southeast European Studies. He worked for five years at the European Centre for Minority Issues in Belgrade and Sarajevo. He lectures as a visiting professor in Budapest, Bologna and Sarajevo, while he has also lectured at the Faculty of Political Sciences in Belgrade. He speaks Serbo-Croatian fluently.

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AGRICULTURE

Text: BRANISLAV GULAN

Shortcomings of Serbia's Agrarian Strategy!

The results of production in Serbian agriculture in 2015 are far from those planned in the Strategy of Agriculture and Rural Development 2014-2024.

That's because, according to the strategy adopted by the Serbia Government, annual growth of agriculture is planned at a rate of 6.1, or 9.19 per cent per year.

However, production in 2015 fell by eight per cent The gross value of agricultural production in 2015 totalled 4,634 million dollars, which – according to the data of the Serbian Statistical Office – is 7.34% less than in 2014. At the same time, the net realised value of agricultural production, amounting to 4,090 million dollars, fell by 5.56% compared to 2014.

On 21st July 2014 the Government of Serbia adopted its Strategy of Agricultural and Rural Development, which will be valid for the next 10 years. According to the strategy, the share of agriculture in GDP should increase until the end of the period to 15 to 20 per cent. In the version that sees the share of agriculture rise to 15 per cent, agriculture needs to develop by 2023 at a rate of 6.1% per year. In the second, improved version, it is noted that in order for agriculture to grow to account for a 20 per cent share of GDP it should develop at a rate of 9.19% annually.

However, already in the first year of implementation of the Strategy, instead of the planned growth, Serbian agricultural sector, according to official data of the Serbian Statistical Office, there was an alarming fall of eight per cent!

Thus, instead of the planned and desired unrealistic growth, agriculture – after this unrealistic and incorrect strategy – has seen a

decline in production!

When the strategy was adopted, it was announced that the aim of the document was to promote the improvement and modernisation of agricultural production, improving quality of life for people in rural areas, the sustainable management of resources and environmental protection.

Such results for the Serbian agrarian sector show that the warning of former Yugoslav Minister of Agriculture Koviljka Lovra, during the public debate on the adopted strategy, was justified. Because he pointed out in a public debate at the time that the authors of the Strategy (about 200 of them) used incorrect data, and hence their expected projections and visions of agricultural development were completely illogical and absurd. That’s because, according to his estimates, the noted projections show that agriculture will develop in the complete opposite way to the development of legality.

Among other things, he said at the time: “What the authors of the Strategy project has yet to be achieved by a single country. Moreover, it would be devastating for our economy to achieve”.

The authors also projected the growth of gross investment in agriculture from 10 to 15 per cent annually in a nominal amount. That is unrealistic given that agricultural activity in Serbia

VALUE OF REALISED AGRICULTURAL PRODUCTION

2014

2015

Gross value of agricultural production Value of plant production Field and Vegetable Crops Grains/Cereals Industrial plants Vegetables Fodder crops Fruit cultivation Viticulture Livestock Value of barley, oats, 50% of corn, fodder crops..

Net value of agricultural production

5,001 3,346 2,877 1,830 494 392 161 410 59 1,655 670 4,331

4,634 2,979 2,494 1,527 420 392 155 405 80 1,655 544 4,090

* In millions of U.S. dollars Source: Calculated on the basis of data from the Serbian Statistical Office

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constitutes an unattractive prospect for foreign direct investment – this domain accounted for just 0.7 to 1.6% of total FDI in Serbia from 2004 to 2011! Thus, that which is planned and achieved in the first year shows the Strategy’s lack of logic and groundlessness. This has also proven to be the case in practice, where instead of growth in agriculture production in Serbia there has been a fall!

The total value of crop production achieved in 2015 was 2,979 million dollars, which represents a fall of 10.97% compared to 2014, with a share of 64.29% in the realised gross value of agricultural production. At the same time, the value of livestock production in Serbia is estimated at last year’s level in the amount of 1,655 million dollars and has a share of 35.71% in the realised value of agricultural production.

In the coming years, a major challenge will confront producers and processors of sugar beet, the queen of crop cultures, due to the loss of the EU market, in which Serbia has a preferential quota for export of about 182,000 tonnes. This will significantly reduce the seedbed surface, which in recent years reached as much as 70,000 hectares (just in 2015 it was only 42,000 hectares), as well as processing facilities, due to limited competitiveness in the international exchange market, where prices are subject to fluctuations, as well as due to the cost-effective processing of sugar cane in relation to sugar beet.

Based on what experts planned in the strategy, it was already immediately apparent that this was only declarative goal that was unattainable in practice. This was demonstrated in the first year of its (non-)realisation.

This topic will be discussed, among others, at the International Agriculture and Food Conference on 17th May at the International Agricultural Fair in Novi Sad. The conference will be opened by State Secretary at the Ministry of Agriculture, Danilo Golubović, H.E. French Ambassador to Serbia Christine Moro, First Secretary at the Embassy of Italy, Marco Leone, head of the Economics Department of the EU Delegation in Belgrade, Freek Janmaat, and many others. Details of the programme and application procedures can be found via the website www.color.rs/iafc2016

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I NTERVI EW

Slow and Bumpy Ride Towards Positive Change A truly free media was not present in the Milošević era. And, by definition, is not so today either. Rather, I would hope it will evolve, and break away from past practices. The active presence of N1 on the market is a positive sign of that N1 is regarded by many in Serbia as the only TV station where you can hear something different than the other TV channels. When you were reporting here for CNN during the nineties did you have a feeling that there was more press freedom than today?

— You cannot compare the Serbia of today with the

BRENT SADLER

Former CNN Senior International Correspondent & current Chairman of the Editorial Board of the N1 News Channel

Brent Sadler joined CNN in 1991 and spent two decades covering the world, though he spent most of his time in the Middle East. In 2009 he became a presenter for the programme ‘Inside the Middle East’ on the CNN network. He is perhaps best known for his work covering the Gulf Wars while he was ITN’s Middle East Correspondent and later CNN's Beirut Bureau Chief. He has covered wars in Chad, Libya, Uganda, Iran, Iraq, Lebanon, Israel, Iraqi Kurdistan and the Falklands. He is currently Chairman of the Editorial Board of the N1 News Channel, a 24-hour cable news platform exclusively affiliated with CNN that covers events in the former Yugoslav countries of Bosnia-Herzegovina, Croatia and Serbia.

Elections have been held in Serbia. Would you comment on the results?

— The Serbian Progressive Party, under Prime Minster Aleksandar Vučić, has once again proved to be the clear, undisputed winner of the popular vote. Ahead of the ballot the question in most minds among the citizens of Serbia, and that is by no means all, because 45 per cent of the electorate did not vote, was by how much of a margin SNS could win. The outcome now gives Prime Minister Vučić another strong mandate to carry on ruling the country in a way that epitomises a style of leadership that obliterates the field. But the emergence of his former political associates in the Serbian Radical Party, led by Vojislav Šešelj, representing an ultra-nationalist and anti-European platform, could be a thorn in his side.

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Serbia of the past from the perspective of being a CNN reporter working from Belgrade in the 1990s.

Firstly, it was extremely difficult for me even to access the country from my base in Beirut, Lebanon. It required long meetings with the Yugoslav ambassador to Lebanon to explain my objectives in reporting from Serbia, which often involved a lecture about anti-Serb propaganda by Western TV news outlets. I tried my best to explain that as far as I was concerned my reporting would be professional and balanced.

Inside Serbia itself during the Milošević years, especially during the Zajedno opposition protests, I felt no pressure from the authorities. Indeed, reporting from Serbia was open on the streets of Belgrade when Zoran Đinđić, Vuk Drašković and Vesna Pešić were condemning RTS under Milošević as a “factory of lies.”

The landscape turned very different during the NATO bombing of Yugoslavia. I was in Pristina when the bombs fell. The CNN armoured car was

the two. A truly free media was not present in the Milošević era. And by definition it is not so today.

Rather, I would hope it will evolve, and break away from past practices. The active presence of N1 as a player in the market is a positive sign of that.

Can you compare N1 with Al Jazeera TV; what are the differences?

— As a former CNN Senior International Correspondent who reported from all the battle-fronts during the violent break-up of the former Yugoslavia, the pre-launch model of the three channels in the one N1 brand was important. I firmly believe that a transparent, accountable and professional media best serves good governance and the peoples it represents. N1 is not an extension of CNN. I respect Al-Jazeera and was very disappointed when Al-Jazeera America was closed down recently. But here in our region Al-Jazeera Balkans is slick and professional, though it does not have the depth of national and regional coverage that N1 does.

What is the main difference between the media in Serbia and in the U.S.?

— When I open a Serbian newspaper, watch TV news or click online, I am looking to read about events from multiple angles with myriad storylines, political viewpoints and analysis. When

I SEE TOO MUCH COMMENT, INNUENDO AND UNSUBSTANTIATED STORYLINES REPORTED AS FACT. IT HAPPENS IN SERBIA IN MY VIEW, AND IT ALSO HAPPENS IN THE U.S. AND OTHER ADVANCED DEMOCRACIES. SO, IN SHORT, WHAT IS THE MAIN DIFFERENCE? NO ONE SOURCE OF NEWS CAN GIVE YOU THE WHOLE PICTURE. IT IS THE SAME IN THE U.S. AS IT IS IN SERBIA set ablaze and I was rifle-butted by a drunken member of the Serb paramilitary police force before we were expelled from Kosovo. Soon after, though, I reached Belgrade via Hungary and spent the war reporting the conflict under strict reporting conditions.

It is essential that the media reports accurately and responsibly with fair and balanced content. Is there more or less freedom today than during the 1990s? My answer lies not in how the newspapers or broadcast media present themselves. It lies in the system of government and the inter-action between

I read the “yellow” tabloid media I know what to expect. If I turn to serious media, I want to see that journalists have got a story right and that they are being fair and balanced. So, for me, accuracy and attribution of source information in the media is vital. I see too much comment, innuendo and unsubstantiated storylines reported as fact. It happens in Serbia, in my view, and also happens in the U.S. and other advanced democracies. So, in short, what is the main difference? No one source of news can give you the whole picture. It is the same in the U.S. as it is in Serbia.

N1 is a commercial enterprise that seeks revenue from advertising budgets. How do you see the advertising market in Serbia, Bosnia and Croatia?

who is assured of his place in history after the downfall of Milošević. While open to the international media, his grip on power was short-lived.

Boris Tadić: a confident communicator who I first met when he was defence minister. With the presidency he also won international respect. I did not expect his return to the knife-fight of Serbian politics.

Aleksandar Vučić: the re-invention of his politics into a pro-European leader from his start as a prodigy of the ultra-nationalist Serbian Radical Party is stunning. He is relentless in the pursuit of his goals and is unwavering in his mantra that under his leadership Serbia is changing for the better.

— Like CNN International when it first aired as a separate news stream from CNN America, the business side took time to build. It is no secret that advertising budgets in the region are hard fought for and carefully controlled. It took a decade for CNN to develop strategies on the international side to monetise programming. N1 is the exclusive news channel affiliate of CNN and N1 is learning from those experiences and developing its own ideas.

How do you respond to critics who say that N1 is "the long arm of American official policy in the Balkans”?

— I spent 25 years covering the news as a CNN reporter. I have lost count of the number of times a government official from, say, the Middle East, Africa or the Far East has levelled accusations at my door of somehow being involved in a covert effort to support U.S. government policy. As a

UNPREDICTABLE EVENTS WILL CONTINUE TO SHAPE THE REGION FOR YEARS TO COME. DEVELOPING SYSTEMS OF GOVERNMENT, DEFINING AND RE-DEFINING POLITICAL IDEOLOGIES, IS PART OF THE PROCESS OF NATIONAL TRANSITION, WHICH TAKES TIME British passport holder reporting for America cable network CNN it amused me that the suspicion was not aimed at London, but rather Washington.

There really is no winning that argument in such closed-minded circles.

You knew all five of the leading Serbian leaders of the past two and a half decades - Milošević, Đinđić, Koštunica, Tadić, and now Aleksandar Vučić. How could you, from this historical distance, describe each of them in a few sentences?

— Slobodan Milošević: an old style Socialist whose playbook confounded and frustrated his international opponents. He ruled behind a closed and tightly controlled system, which left him out of touch and exposed when the edifice of power began to crumble.

Zoran Đinđić: a breath of fresh air in Belgrade.

I interviewed him many times. I suggested that if he wanted to succeed on the international stage he must learn English, so that his message would have more impact. He listened and learned.

Vojislav Koštunica: an old-school political leader

There are frequent criticisms that members of the diplomatic community in Serbia, as elsewhere in the world, do not spend much time focusing on the problems of our country. They do not try to understand the problem in depth and instead pursue the policies of their own governments in Belgrade to further their own careers. Are the expectations of the public and the media regarding the embassies and their impact on the government overplayed?

— First and foremost, the responsibility of foreign embassies in any country is to pursue multiple tracks – not least in the fields of bilateral relations, such as commerce, visas, military cooperation, intelligence and media. It is unrealistic to expect the inner-workings of any embassy to be made public. By its very nature diplomacy takes time and much of what is said on sensitive matters is kept secret. That is why the Wikileaks revelations were so damaging and embarrassing for some countries.

Certainly the international diplomatic community, especially those with the highest-level of relations and contacts with the Government of Serbia, play a huge role at the national and international levels.

I would say that their impact is at times both overplayed and underplayed.

You have a lot of experience in journalism from different parts of the world, and for this region you are tied for more than two decades. How do you see Serbia, Bosnia and Herzegovina and Croatia in 5 years?

Together in the EU, or in the further process of instability.

— I was privileged to have known Sir Fitzroy Maclean, who was appointed by Winston Churchill during World War II to head a military mission to Tito and his partisans. Maclean parachuted into Yugoslavia with his mission in September 1943. I first met him at the height of the bloodletting in Bosnia and later interviewed him at his castle in Scotland. He said that when the guns fall silent the warring nations must learn to overcome the horrors of conflict and accept that, while Yugoslavia was cleaved apart, the region’s future economic prosperity would still be entwined.

Today EU integration is a regional priority, but nations are still struggling to follow the lead of EU members Slovenia and Croatia. Five years is little more than the next Parliamentary mandate for Prime Minister Aleksandar Vučić in Serbia. Unpredictable events will continue to shape the region for years to come. Developing systems of government, defining and re-defining political ideologies, is part of the process of national transition which takes time.

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15

ARRIVALS & DEPARTURES UPCOMING N ATI O N AL D AYS

BSCC NEW TEAM MEMBERS The British-Serbian Chamber of Commerce has announced the appointments of four new team members who will work in the BSCC Belgrade office. The new team will consist of three new directors with rich and extensive experience of doing business in Serbia: David Webb, Nebojša Ćirjaković and Slavko Carić, who will join the current directors in the representative office in Belgrade.

20th May

Cameroon

State Unification Day

3rd May

Poland

DAVID WEBB

NEBOJŠA ĆIRJAKOVIĆ

Expert in business and relations with the governments of the Balkans

Manager of corporate and regulatory affairs for Serbia and Montenegro at British American Tobacco Southeast Europe

He has amassed 20 years of experience, dating back to his first involvement in the region in 1996, when he started working at the UK Department of Trade and Industry in London.

In 2001 he was appointed First Secretary responsible for trade and investment at the British Embassy in Belgrade, where he worked until 2006. In late 2007 he became the co-founder of Webb-Dowse, one of the most respected companies engaged in corporate communications in Serbia and throughout the Western Balkans.

Constitution Day

Montenegro

Independence Day

8th May

ICRC, IFRC

International Red Cross Day Prior to joining British American Tobacco he gained rich experience working at the ministries of health, trade and services, the economy and regional development, foreign economic relations and other institutions. He is a graduate of the Faculty of International Economics and is currently completing his master’s studies on the London School of Commerce’s MBA for Executives Programme.

21st May

22nd May

Yemen

Unification Day

9th May

EU

Schuman Day (Europe Day)

24th May

Eritrea

Independence Day

SLAVKO CARIĆ

CEO of Erste Bank Serbia

Slavko Carić is CEO of Erste Bank Serbia, a member of Erste Group – one of the largest financial services providers in Central and Eastern Europe.

Educated in the U.S. and Switzerland, where he earned a degree in Business Administration from the University of Geneva in 1995, during his career he has founded several successful companies in the area of trade and finance. He is familiar with the business environment in Serbia thanks to his many years of experience in investment banking and capital markets in Serbia. He is also a member of the Trilateral Commission and participates actively as a member of its group in Serbia.

ANA RAČIĆ

New marketing and communications division director at Vojvođanska banka

Ana Račić has a master's degree in psychology from Moscow state university M. V. Lomonosov, where she also earned her bachelor's degree. She is fluent in English and Russian. She has gained her professional experience since 1999, in marketing companies IDEA Plus Communications and Publicic Grup (Publicis and Saatchi&Saatchi). Since 2007 she had been working in Vip mobile. There, in the past four years, she held managerial roles in Marketing communications.

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12th May

Israel

Independence Day

CARLOS DE CORDOUE

New Chairman of the Executive Board at Crédit Agricole Bank Serbia

Carlos de Cordoue (54), an experienced corporate banker and the new President of the Executive Board of Crédit Agricole Serbia comes from the position of Director of Business Cooperation between CA-CIB and Crédit Agricole Group which he held since 2011. He was previously engaged in Asia where he held highly responsible financial positions since 2007 in CA-CIB in Hong Kong, and afterwards at CA-CIB Thailand company. As the new President of the Executive Board, de Cordoue will be responsible for the business operations of Crédit Agricole Bank in Serbia, which has 81 branches and employs over 900 people.

14th May

Paraguay

Independence Day

25th May

Argentina

Revolution Day

26th May

Georgia

Independence Day

28th May 17th May

Norway

Constitution Day

Azerbayjan

Founding Day of the Democratic Republic of Azerbaijan

PEOPLE & EV ENTS 1stth April 8 xxx

FIRST DIPLOMATIC XXX FORUM HELD xxx

The Palace of Serbia hosted the First Diplomatic Forum dedicated to the professional development of public servants.

The Forum was organised by the Ministry of Public Administration and Local Self-Government and NALED, with the aim of improving cooperation with the diplomatic representative offices of European and world countries offering Serbian citizens an opportunity to attend supported trainings. Opening the Forum, Serbian Deputy Prime Minister and Minister of Public Administration and Local Self-Government, Kori Udovički, said that the development of a high quality public service is one of the four pillars of public administration reform.

H. E. Arne Sannes Bjørnstad , Norwegian Ambassador

xxx

th th 6-11 8 xxx April

XXX FASHION WEEK SERBIAN Bojana Vukosavljević, EBRD, Danijela Fišakov, President at Slovenian Bussiness Club and Roman Župevec, GEO PRO

Serbian Fashion Week (SFW), the biggest fashion week in the xxx region, and the 5th biggest in Europe, took place from 6th to 11th April in Novi Sad, and included 31 catwalk shows with both Serbian and guest international designers. Among them were SFW designers Marija Sabić, Bata Spasojević, Boško Jakovljević, Mladen Milivojević Baron, Vesna Milošević and Zorana Milicić, and lots of newcomers. SFW announced the formation of the Serbian Fashion Film Festival, while Tuna Yilmaz, founder of the Istanbul Fashion Film Festival, attended the SFW on this occasion especially to help present this project. SFW also signed contracts with 24 Fashion Weeks from around the world.

5th April

BERNARDINI HOTELS CELEBRATE XXXth ANNIVERSARY 40 8th xxx

xxx Bernardini Hotels from Portorož have celebrated a major anniversary of 40 years of successful operations. On this occasion the company organised a gala cocktail reception for friends and business partners from Serbia on 5th April at the Courtyard by Marriott in central Belgrade.

The cocktail reception was attended by representatives of the Embassy of the Republic of Slovenia in Belgrade – Miha Vilar, head of the consular department, and Goran Križ, economic attaché, as well as Danijela Fišakov, President of the Management Board of the Slovenian Business Club, representative of the British Embassy in Belgrade, Mina Knežević, economic attaché, Vice President of the International Women’s Club – Belgrade, Beatrice Grozdanić, as well as numerous personalities from business and public life.

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MORE PHOTOS ON

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thth 13 8 xxx April

CHOOSE REFORM PRIORITIES XXX FOR GOVERNMENT xxx

Amendments to tax legislation should be a reform priority of the new Serbian Government, decided members of the National Alliance for Local Economic Development (NALED) at their 10th annual meeting. Government should work quickly and efficiently. We plan to commit to the implementation of public-private partnerships, improving the knowledge and efficiency of civil servants and the reform of healthcare financing- said Ana Brnabić, President of the Management Board of NALED. A Memorandum of Understanding which formalised the handover of software was signed by Serbian Deputy Prime Minister and Minister of Construction Zorana Mihajlović, NALED’s Brnabić, manager of the GIZ Open Regional Fund, Christophe di Marco, and Director of the Business Registers Agency, Zvonko Obradović.

Zoran Petrović, Tanja Miščević, Michael Davenport and Vera Nikolić Dimić, AmCham Executive Director

14th April

EU INTEGRATION IMPORTANT FOR IMPROVING SERBIA’S BUSINESS CLIMATE 8th xxx

Michael Davenport

A business luncheon organised by the American Chamber of Commerce in Serbia (AmCham) saw the Head of the EU Delegation to Serbia, Michael Davenport, and the Head of the Negotiating Team for the Accession of Serbia to the EU, Tanja Miščević, stress the importance and impact of EU accession negotiations to improving the xxx business climate in Serbia, as well as the need for further progress on economic reforms. Davenport said that harmonisation with the EU’s standards is a sign of the stability and predictability of the business environment, which is important for potential investors. Zoran Petrović, President of the AmCham Board of Directors, concluded that harmonisation with EU standards is “necessary to ensure legal certainty and the protection, predictable business environment and tax and fiscal policy, which are important to the operations of every company in Serbia”.

XXX

Deputy Prime Minister Zorana Mihajlović, U.S. Ambassador to Serbia, H.E. Kyle Randolph Scott, and Ambassador of the Kingdom of the Netherlands to Serbia, H.E. Hendrik van den Dool

thth 14 8 xxx April

OFFICIAL GERMAN-SERBIAN CHAMBER XXX OF COMMERCE ESTABLISHED xxx

The German-Serbian Chamber of Commerce was formally founded in the presence of Serbian Economy Minister Željko Sertić and German Ambassador Axel Dittmann. This is the first bilateral chamber founded under the auspices of the new Law on Chambers of Commerce in Serbia. The chamber was established on the basis of an agreement between the governments of both countries.

Minister Sertić, as the guest of honour, congratulated the founders of the German-Serbian Chamber of Commerce and stressed the importance of bilateral German-Serbian economic relations.

DSW President and Hemofarm CEO Ronald Seeliger said that the establishment of the German-Serbian Chamber of Commerce is a natural extension of current practices of economic cooperation between Germany and Serbia, which is the most intense area of economic relations between the two countries.

Ronald Seeliger, H. E. Axel Dittmann and Martin Knapp

www.diplomacyandcommerce.rs

19

PEOPLE & EV ENTS 14th April

PRO FEMINA 2016 This year's ProFemina conference, which was organised for the fourth time with great success by company Color Press Group and magazine Lepota i zdravlje (Health & Beauty), was marked by the slogan of the event – “Every woman knows what she wants”, but also the anniversary of the most popular women’s magazine in the region, which is marking fifteen years of its existence.

In her opening statement, Lepota i zdravlje editor Lidija Ćulibrk briefly referred to the work of the magazine over the past decade and a half, after which the conference was officially opened by Serbian Deputy Prime Minister Zorana Mihajlović.

Prof Dr. Mehmet Mutaf, specialist in reconstructive surgery at Acibadem Clinic

H.E. Finnish Ambassador to Serbia Pertti Ikonen

14th April

FINNISH FILM WEEK

Zorana Mihajlović

The fourth annual Finnish Film Week festival took place in the Hall of the Belgrade Culture Centre from 14th to 18th April. This event is traditionally organised biannually by the Belgrade Culture Centre, the Finnish Film Fund of Helsinki and the Finnish Embassy in Serbia. The festival was opened by H.E. Finnish Ambassador to Serbia Pertti Ikonen, while guests at the opening were also welcomed by Finnish Film Fund director Jaana Puskala, festival selector and guest editor of the DKC film programme, Stefan Arsenijević, film director Jukka-Pekka Valkeapää and director Amir Eskandari, whose film "Pixadores" also opened this year’s film week.

17th April

MALBEC WORLD DAY

H.E. Ricardo Fernando Fernández and Juan Bautista Scartascini Del Rio Third Secretary

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Diplomacy&Commerce

The Argentine Ambassadorial Residence has celebrated Malbec World Day, which is celebrated in 54 countries around the world as the day of the autochthonous grapes of Argentina. It is this variety of grape that has made Argentina a new major wine producing country. The event was organised by SERSA (Serbian Association of Sommeliers) and on that occasion five Argentinian wineries presented Malbec wines from their offers. The presentation was led by Mina Marković, restaurant manager and sommelier at Square Nine Hotel.

MORE PHOTOS ON

www.diplomacyandcommerce.rs

19th April

TURKISH AIRLINES CELEBRATES 10th ANNIVERSARY IN SERBIA Turkish Airlines, the national carrier of the Republic of Turkey and the top airline in Europe, has celebrated the 10th Anniversary of its reglar flights to Belgrade. The anniversary was marked with a gala celebration on 19th April at the Hyatt Regency Hotel. General Manager of Turkish Airlines for Serbia, Mehmet Alagöz, together with senior officials of Turkish Airlines, hosted numerous guests on this occasion, including the Ambassador of Republic of Turkey to Serbia, H. E. Mehmet Kemal Bozay, other representatives of the diplomatic corps, media representatives and business partners. The idea is to reach the entire world via Istanbul and the representatives of Turkish Airlines have belief in tourism in Serbia and would like to present Serbia to tour agencies in Turkey through organised visits.

H. E. Mehmet Kemal Bozay , Ambassador of the Republic of Turkey to Serbia

Mert Dorman, Turkish Airlines Vice President for Eastern Europe, the Balkans and the Caucasus, Mehmet Alagöz, General Manager of Turkish Airlines for Serbia and ZiyaTaşkent, Turkish Airlines Senior Vice President

19th April

MORE FLIGHTS TO WARSAW BY LOT Cile Marinković and H.E. Kyle Randolph Scott, U.S. Ambassador to Serbia

This summer, LOT introduced more flights between Warsaw and Belgrade. Since the end of March travellers from Serbia have been able to visit Warsaw and continue their journey to Western Europe, Canada or the United States. "In the summer season, we can offer passengers flights to cities like Krakow, Warsaw, Gdansk and Wroclaw, but also to destinations in Europe, New York, Chicago and Toronto. We are confident that the suitable timetable from Warsaw to Belgrade will encourage many travellers from Poland and Central Europe to spend their holidays in Serbia "- Adrian Kubicki said.

19th April

PASSENGERS – FROM CILE TO BELGRADE The exhibition “Passengers – From Cile to Belgrade”, by Milan “Cile” Marinković, was opened by Maja Gojković in the hall of the National Assembly. The exhibition will premiere part of the new collection of large format paintings, thematically linked to the central figure – a man presented as a nomad of modern times. Marinković is one of the most prominent Serbian painters, having exhibited his works at more than 100 solo and over 250 group exhibitions. This exhibition will also be presented to the Parisian audience in December.

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PEOPLE & EV ENTS thth 25 8 xxx April

WORKING BREAKFAST XXX FOR MANAGERS xxx

The Serbian Association of Managers, SAM, organised its traditional working breakfast with the Fiscal Council of the Republic of Serbia, at which attendees discussed the measures that Serbia can apply to encourage economic growth, the situation with our public finances today and what awaits us in the future. The meeting saw Serbian managers and members of the Fiscal Council exchange views on fiscal developments in the first quarter of 2016. Available data indicate that fiscal developments in early 2016 are in line with the budget plan, though some trends are slightly better than expected. The reason for this is a slight improvement in revenue collection.

Jelena Bulatović, Executive Director of SAM, Nikola Altiparmakov, member of the fiscal council, Pavle Petrović, chairman of the Fiscal Council, Vladimir Vučković and Milan Petrović President of SAM

xxx

8th xxx

XXX xxx

8th xxx

Crown Prince Alexander II Karađorđević with his wife, H.E. Ambassador Henk van den Dool, Maja Gojković and U.S. Ambassador H.E. Kyle Randolph Scott

XXX BELGRADE IN ORANGE: KONINGSDAG 27th April xxx

The Embassy of the Netherlands in Belgrade organised a reception at the Ušće Top of the Hub. On the occasion of the Dutch national holiday - King’s Day. Ambassador Henk van den Dool used the opportunity to emphasise good bilateral relations between Serbia and the Netherlands, and to reassure of the Dutch support to the EU integration of Serbia, especially in the field of the rule of law. The reception for business partners, members of the international community, representatives of the Government and the civil sector, was supported by the most successful Dutch companies in Serbia (Heineken, Vahali, Kupujem prodajem, Levi9, Windvision, Pheno geno roses and Nul tien).

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Diplomacy&Commerce

Jadranka Joksimovic, Minister without portfolio responsible for European integration and H.E. Henk van den Dool

MORE PHOTOS ON

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PANAMA PAPERS

Text: ŽIKICA MILOŠEVIĆ

Only Death is Certain, Not Taxes The so-called “Panama papers” shook the world profoundly during April, and the first victims of the leaked documents have fallen. But somehow it seems that the hidden aim of the affair was to compromise certain leaders, though the “rifle backfired” and the bullets ricocheted in some other directions, wounding others NEITHER DEATH NOR TAXES...

OKAY, DEATH IS ALRIGHT.

There is a proverb “death and taxes are the only certainties in this world”. The jokers and true believers used to add: “But not for Saint Elijah; he did not die, but rather ascended to Heaven”. Some other people, however, have decided that death may be imminent, but during their earthly existence they will not pay taxes.

Simply, who cares about the infrastructures, schools, and other “unnecessary” social things?

‘If I have 10 million pounds, why not keep it all?

Let the poor people pay,’ they think. Of course, by creating either legal or illegal bank accounts and offshore companies somewhere. Usually in the Caribbean, in island states or continental ones, who cares? Money is what matters.

The Panama Papers (Panama Leaks) are in fact a set of 11.5 million leaked documents detailing privileged attorney–client information for more than 214,000 offshore companies associated with a Panamanian law firm and corporate service provider named Mossack Fonseca. But, funnily enough, although the name of Panama seems “stained” in a way, basically it is not that true. In comparison with the honesty and brutal objectivity of Wikileaks, the Panama Papers seem bleak, but certainly scandalous.

We all know, and my father repeated it to me as a kid, that there were numerous cargo ships sailing under Panamanian flag. It is common knowledge that Panama offers that type of service, but who is not a sinner? There are offshore paradises in Europe too, like Liechtenstein or, even worse, inside the European Union. Remember Cyprus, or Jersey, or even Luxembourg.

There are no Americans on the list? Well they already have Nevada and Delaware to make such deals. They don’t have to reach beyond U.S. soil.

WHO IS DOOMED AFTER ALL?

The names of several prime ministers or presidents appeared, and the first victim was Icelandic PM Sigmundur Davíð Gunnlaugsson.

Very unpleasant times were survived by Petro Poroshenko from Ukraine, and King Salman of Saudi Arabia, as well as Emirati head-of-state Khalifa bin Zayed Al-Nahyan. There are Qatari

officials there too, some more from Ukraine, Georgia or Moldova, and a couple of friends of Vladimir Putin. Friends? Well, many people theorised that he might be the main target of the leak, together with China, but the target was missed. Also, the idea of corrupt relatives of Asian and African leaders didn’t bother the general public or the leaders themselves very much. But here’s what the real shock was.

WHEN A DOG BITES A MAN, IT IS NOT MUCH OF A STORY

The kicker was the fact that organised and supposedly moral countries and leaders, always willing to lecture the rest of the world, proved to be just as rotten as those they criticise. The harshest time was had, of course, by UK PM David Cameron. His father, millionaire Ian Cameron, did not bother paying his UK taxes. Who cares about buying a dialysis ma-

IT IS HARDLY NEWS WHEN SOME THIRD WORLD COUNTRY IS PROVEN CORRUPT. WE EXPECT SINNERS TO BE SINNERS, BUT WE DON’T EXPECT THE PREACHERS TO BE SINNERS chine? Who cares about school microscopes?

Let us stash our dough… in Ireland. It is even more devastating having in mind that Cameron himself made many budget cuts for the needy and the poor. Immediately he came out with his property list, and the public was not amused.

Jeremy Corbyn did the same and the public was satisfied. Boris Johnson did so and the public understood that they deeply disliked all the inherited riches. Former Mayor of London, Ken Livingstone, said that "David Cameron should not just resign, but should be sent to prison".

Mark Thatcher was also on the list. Yes, the son of Baroness Thatcher, a leader of neoliberal reforms, social cuts and the bearer of morality in politics. A Tory disaster was unfolding in real-time. All of a sudden, the Norwegian solution

of “public-on-the-web” property lists and list of paid taxes was so appealing. Let’s explain, you can check the property and tax form for every politician in Norway just with a click. Unimaginable in the UK? We will see.

Even worse, when Ukrainian president Petro Poroshenko took office in 2014, it was because his predecessor, Viktor Yanukovych, was “corrupt”. Yes, he was. A popular uprising toppled Yanukovych and there were high hopes present after “Euromaidan”. And what did Yanukovych’s successor do? Poroshenko pledged to sell his candy business (Roshen) if elected, but leaked documents indicate that on 21st August 2014 he instead had Mossack Fonseca set up offshore holding company Prime Asset Partners Ltd in the British Virgin Islands and moved his company there, roughly two months after the election. The move had the potential to save him millions of dollars on his Ukrainian taxes. Very patriotic and “not corrupt” at all...

So, remind us, why all the fuss and Euromaidan revolt? A tragic blow for the enthusiasm of the Ukrainian people.

Well, there are thousands of names, but the idea is the following: we knew that the autocratic Oriental kings and emirs, or strongmen from the Third World, hide their money, or state money, or people’s money. We know that Ukraine, Moldova, Russia or Berlusconi might be corrupt.

The latter was even sentenced for that. But it is hardly news. Messi is there? Who cares. But an Icelandic PM corrupt? Unthinkable! And the British PM’s family is a tax evader? Not sounding good. The trouble is that we expect sinners to be sinners, but we don’t expect the preachers to be sinners. It is an even harder blow.

Just imagine the world where all the richest people pay taxes and the poor people are socially and medically secure. Just imagine so many hospitals, roads, schools built with their taxes. Well, all I wanna say is they don’t really care about us, as Michael Jackson once sang. They don’t care much about the starving grannies and dying children. Why think about that when you can afford another Mercedes or the latest mega yacht? Don’t blame Panama or the British Virgin Islands. The sinners are those who made them.

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23

CROWN-PRINCE ALEXANDER KARAĐORĐEV I Ć positive reactions in the local public.

There were scenes of spontaneous citizen enthusiasm, for example in Novi Sad, when the Royal Couple broke protocol to greet several hundred people gathered in the city centre. In your opinion, what are the possibilities for the idea of the future of the monarchy in Serbia to gain more followers?

— My view has always been that a constitutional monarchy would be a great solution for Serbia. This is no disrespect to our politicians, as it would avoid conflict at the highest level.

The monarch is neutral and provides unity, continuity and stability. The monarch reigns and the prime minister rules. Constitutional monarchies are very successful in many countries, like for example the United Kingdom, Japan, Norway, the Netherlands, Canada etc.

We Just Want Our Belongings Back The Royal Compound is today, unfortunately, still confiscated property.

There is much work to be done, but I am very hopeful there will be a positive solution soon. After all, the right to private property is a basic human right I am glad that many Karađorđević properties have been subjected to restitution, but I encourage more work to be done regarding this important human right, says Crown-Prince Alexander Karađorđević in this interview for D&C, in which he emphasises his good relations with the authorities, talks about the current problems of maintaining the Royal Compound, and why the recent visit of the Prince of Wales and Duchess of Cornwall, who were warmly welcomed to Serbia, represents one more argument for reconsidering a constitutional monarchy as a solution for Serbia.

There are many dilemmas in the public about what precisely the Karađorđevićs claim from each country in the region.

Can you give us a precise list – what movable and immovable assets do you claim from Serbia, Montenegro, Slovenia etc.?

— Following World War II, Tito ordered the confiscation of all of my family’s property. The Royal Family’s confiscated property is listed in Kardelj’s Decree of 1947 [which is available for scrutiny].

You are often a guest at the receptions of foreign embassies in Belgrade. On those occasions, what do the repre-

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sentatives of the diplomatic community say to you on the issue of the restitution of the Karađorđevićs property?

— It is always a pleasure for my wife and I to be invited to many receptions. We very much enjoy making friends with members of the Diplomatic Corps and are happy when they

THE ROYAL COMPOUND WAS ALWAYS MAINTAINED BY THE STATE FROM 1947 TO 2001 AND NO ONE SAW ANY PROBLEM IN THAT. I DO NOT UNDERSTAND WHY IT IS NOW TREATED AS SOMETHING ILLOGICAL come to see us. It should be noted that the right to private property is a basic human right. I am glad that many properties have been subjected to restitution, but I encourage more work to be done regarding this important human right.

The recent visit of the Prince of Wales and Duchess of Cornwall received quite

Your 70th birthday saw many crowned heads of Europe gather in Belgrade – from Prince Albert of Monaco, to Sweden’s King Gustav, Spain’s Queen Mother Sofia and many others. The State of Serbia was officially represented by National Assembly Speaker Maja Gojković and Foreign Minister Ivica Dačić. Why do you think the executive and presidential authorities (the President of the Republic and the Prime Minister) do not cooperate to a greater extent with the House of Karađorđević? The situation was the same with the previous political leadership.

— My collaboration with the authorities is actually very good. I meet often with the government at the highest level and the meetings are always cordial. Some politicians do not like to appear at events which by their nature are informal, although my opinion is that meetings with the heads of foreign states, even when they are on a private visit, can be extremely useful for our country.

You and your wife are often initiators of, and participants in, numerous humanitarian activities in Serbia. What do you see as the main problem of our country?

Which segments of the population need help the most?

— There are humanitarian organisations even in developed countries. Simply put, the state, regardless of the degree of organisation and wealth, can hardly cover all potentially vulnerable categories. My wife, with her Foundation, and I identify such categories and then act. We are very happy to help all segments.

There has been frequent controversy in the public surrounding the Royal Palace and the White Palace when it comes to expenses, maintenance costs, electricity bills etc. Could you tell us exactly how much the government pays a month to maintain the Royal Compound and how much it takes to keep these facilities functional and in good condition?

— The Royal Compound in Dedinje is still state property and as long as it is so it is quite natural that the owner takes care of its constant maintenance and repairs. The two palaces are

getting old and need a lot of care. They are national registered monuments and very popular with domestic and international tourists. The Royal Compound was always maintained by the state from 1947 to 2001 and no one saw any problem with that. I do not understand why it is now treated as something illogical. After all, the White Palace is today available to the state for any types of protocol requirements, and there have been cases when it was successfully used for this purpose. The two palaces and compound are large, and thus a lot of utilities are in use, especially when visitors come. Without electricity and water the compound would not be available for the constant flow of visitors, which include guests from the government and diplomatic corps, tourists, pensioners and students. The two palaces contain important classical art and are of historical importance. That historical importance is both pre-war and post-war.

What are the chances that other members of the Karađorđević family, Princess Elizabeth for example, cold get a “green light” from you to live in one of the palaces in the Royal Compound, and would the greater unity of the Karađorđevićs increase their popularity among the citizens in Serbia?

— The Royal Compound is the inheritance of my father, King Peter II, and his two brothers, Prince Tomislav and

Prince Andrej, in equal portions. The two palaces were commissioned and built with the private funds of my grandfather King Alexander I. Prince Paul, the father of Princess Elizabeth, was the regent following King Alexander’s assassination in Marseille in

1934 and he was given permission to live in the White Palace when it was completed in 1934. Interestingly, Princess Elizabeth was born in the White Palace, but the inheritance is that of the three brothers. Other members of my family have come to stay very of-

ten and Princess Elizabeth has visited many times. The Royal Compound is today, unfortunately, still confiscated property. There is much work to be done, but I am very hopeful there will be a positive solution soon.

Your grandmother was Romanian, your mother was Greek, the mother of your children is Brazilian, your wife is Greek and you have lived in a number of countries. You can rightfully say that you are a “citizen of the world”. How do you see Serbia in 10 years, as a country in the European Union or as part of a still turbulent “Western Balkans”, with politicians who take two steps back with every step forward?

— I am proud of my heritage and to be living today in Serbia. I see Serbia soon becoming a member of the European Union. I fully support the Prime Minister and his government with the task of concluding our entry into the European Union. With respect to your question about turbulence, I must say that we are a region no more turbulent than many other parts of the world, not to ignore Europe, the Middle East and even the United States. Politics, elections and referendums are hot.

Just read the news every day. Our government and the governments of our region will always sensibly iron out their problems. What we need in our region is investors and constant work on economic growth.

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25

The New Mediocre

The ECB will do something at its meeting next week, but to what effect?

The launch, a year ago, of the European Central Bank’s programme of quantitative easing (QE—creating money to buy bonds) sparked elation. Growth was picking up, consumers had a spring in their step and stockmarkets were jubilant. A year later spirits are sombre as the recovery flags, stockmarkets languish and deflation returns. After prescribing more medicine in December, the ECB is expected to increase the dose again on March 10th.

But there are increasing doubts about its effects.

Consumer prices fell by 0.2% in the year to February (see chart), reinforcing the case for greater stimulus. Though this fall was driven by a renewed collapse in oil prices, the core inflation index, which excludes volatile items such as energy, is also looking wan. Prices rose by just 0.7% in the year to February, among the lowest readings since the euro was born 17 years ago. Despite a year of QE, during which the ECB has bought €60 billion ($65 billion) of bonds a month, it appears to be no closer to its goal of inflation of nearly 2% than when it started.

Unemployment has at least carried on falling, to 10.3% in January, reflecting the continuing economic recovery since the spring of 2013.

But the upturn has failed to live up to the promise of early 2015, when GDP growth reached 0.5% (an annualised rate of 2.2%). That turned out to be the (not very) high point. Expansion subsequently slowed, to 0.3% (an annualised rate of 1.1%) in the final quarter of last year. GDP in the single-currency club is still below its peak in early 2008, whereas America’s is almost 10% above its pre-crisis high from eight years ago.

Consumers have sustained the euro-zone recovery as household budgets have stretched further thanks to lower energy prices. But investment growth lacks the vitality of previous upturns. That has left the currency union vulnerable to the recent setback in emerging economies, especially in China, which is hurting exporters. Industrial output fell in December in Germany, France and Italy, the three biggest

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Diplomacy&Commerce

economies in the euro area.

Whereas European stockmarkets were buoyant in early 2015, they sank in the first six weeks of 2016, with particularly sharp falls in bank shares. Though they have since recovered some of their poise, the Stoxx Europe 600 index remains 7% down this year; its banking component has fallen by 15%. An index of business and consumer sentiment compiled by the Eu-

CONSUMERS HAVE SUSTAINED THE EUROZONE RECOVERY AS HOUSEHOLD BUDGETS HAVE STRETCHED FURTHER THANKS TO LOWER ENERGY PRICES. BUT INVESTMENT GROWTH LACKS THE VITALITY OF PREVIOUS UPTURNS THE GOOD, THE BAD AND THE UGLY Euro area 13

3

12

2

11

1

10

0

+

2012

2013

2014

2015

2016

1

Unemployment rate, % Consumer prices %

change on a year earlier

All items Excl. energy, food, alcohol & tobacco Source: Eurostat

ropean Commission, which tends to mirror GDP growth, has fallen from a recent high of 106.7 in December to 103.8 in February, with especially big declines among French and Italian consum-

ers. German industry and trade is more worried about business prospects than at any time since late 2012, not long after the euro zone skirted a break-up, according to the latest Ifo survey.

All this will probably spur the ECB to do more when its monetary-policy council meets this month. In December it extended QE by six months until March 2017, raising the programme’s total size from €1.14 trillion to €1.5 trillion (14% of euro-zone GDP). It also cut interest rates, which first fell below zero in 2014, deeper into negative territory. The deposit rate was lowered from -0.2% to -0.3%.

At its March meeting, the ECB is likely to keep pulling on more than one lever. The deposit rate looks set to fall again, to -0.4%.

The central bank may also extend another programme that it introduced in 2014, in which it has offered ultra-cheap long-term funding (stretching until September 2018) to banks that improve their lending to the private sector. Most important, the ECB may step up the pace of QE for the next six months or so, from €60 billion a month to, say, €75 billion. It may also extend the programme again, until September 2017, a full year after it was first supposed to end.

The markets had expected more from Mario Draghi, the ECB’s president, back in December.

But even if he comes up with the goods on March 10th, they are likely to remain sceptical. The effects of negative interest rates on inflation are hard to discern, but banks and insurers are obviously suffering. The ECB could introduce tiered negative rates, protecting most of banks’ reserves from the lowest rate, but that did not spare Japanese banks from a stockmarket beating. Moreover, twiddling the dials of QE will not have the same impact as its introduction. Mr Draghi won a reputation as a magician when he cast his “whatever it takes” spell to save the euro, but now even he seems to be running out of tricks.

From The Economist, published under licence.

The original article, in English, can be found on www.economist.com

CORPORATE

Vojvođanska Banka Supports Five More Olympians Vojvođanska Banka, the official bank of the Serbian Olympic team for the past sixteen years, has decided to support five more top athletes who will be heading to the 31st Summer Olympic Games in Rio de Janerio this August. This is great news for sport, but also for the bank’s clients Vojvođanska Banka, as the official bank of the Serbian Olympic Team for the fourth Olympic cycle, has found a truly remarkable model for supporting top athletes and the bank itself.

With five more top athletes added to the list of those it supports, the bank is raising Serbia’s chances of doing well in Rio de Janerio.

Vojvođanska Banka, the official bank of the Serbian Olympic team for the past sixteen years, signed a Protocol Agreement on additional support to five Olympians who will represent our country at the 2016 Rio Olympics.

The athletes who will be additionally supported by the Bank in their preparations for the upcoming Games are sports shooter Andrea Arsović, kayakers Marko Novaković and Nebojša Grujić, swimmer Anja Crevar and water polo player Slobodan Nikić.

Addressing those in attendance at the

Committee, and Marinos Vathis, President of the Executive Board of Vojvođanska Banka.

“We are proud to be the official bank of the Olympic Team of Serbia for the fourth consecutive Olympic cycle, and today we have decided to additionally support five Olympians, to enable them to prepare themselves in the best possible way for the upcoming Olympic Games in Rio. The importance of this cooperation for us can be seen in a specially designed product of the Bank; apart from general support, we have a donation Olympic card from which a portion of funds is allocated for the Olympic team. All clients who use this card will have the chance to win a trip for two to Rio, where they will be able to cheer for the Serbian team at the Olympic Games,” said Vathis.

“Vojvođanska Banka, as the official bank of the Serbian Olympic Team, represents – for the fourth consective Olympic cycle – a true model

dent of the Serbian Olympic Committee.

Markswoman Arsović earned her place at the Olympic Games by finishing fifth at the 2014 World Championships, while in 2015 she became European champion and took bronze and the small crystal globe at the World Cup Finals. Kayakers Novaković and Grujić became champions of the 2015 European Games, won bronze at the World Championships and silver in 2014. Swimmer Crevar will, at the age of 16, be Serbia’s youngest representative at the Rio Olympics. At the 2015 European Games in Baku she won bronze in the 400 metres freestyle, while at last year’s Junior World Championships she swam in a time that satisfied the Olympic criteria and booked her place in Rio. Nikić is Serbia’s most successful water polo player and a member of the team that is current World and European champion, as well as being part of the team that won bronze at the London Olympics.

VOJVOĐANSKA BANKA REPRESENTS A TRUE MODEL AND EXAMPLE TO OTHER COMPANIES ON HOW TO SUPPORT SERBIA’S TOP ATHLETES, WHO ARE UNDOUBTEDLY THE BEST THING THIS COUNTRY POSSESSES, SAYS ŽARKO PASPALJ, VICE-PRESIDENT OF THE SERBIAN OLYMPIC COMMITTEE signing on behalf of the Olympians, Andrea Arsović said: “Thank you Vojvođanska Banka for the trust and support that mean a lot to us.

The additional wind at our backs will certainly make the trip to Rio easier and less burdened, and I sincerely believe that upon returning from the Olympic Games we will all have reasons for celebration”.

Those present were also addressed by Žarko Paspalj, Vice-President of the Serbian Olympic

and an example to other companies on how to support Serbia’s top athletes, who are undoubtedly the best thing this country possesses.

Additional support and cooperation with these athletes will represent a chance for the additional promotion of Vojvođanska Banka as the official bank of the Olympic team, but also a great opportunity to promote these athletes, i.e. the values they carry with them, which is particularly important to us,” stated the Vice-Presi-

The 31st Summer Olympic Games will be held in Rio de Janerio (Brazil) from 5th to 21st August 2016. Rio was selected to host the games in October 2009 in Copenhagen, beating off fellow candidate cities Tokyo, Chicago and Madrid. Some 26 sports and 39 disciplines will fearture in the 2016 Olympic Games. After many years, golf and rugby will also be included within the Olympic competition programme at the Rio Olympics.

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CORPORATE

Projects for the Future Serbia has great potential, but projects related to renewable energy sources are largely new to our market. The knowhow that Erste Bank acquired by financing 22 small hydro power plants singles it out compared to other investors ALEKSANDAR SAVIĆ

Head of Erste Bank’s Special Finance Department

In the last few years there has been growing interest in Serbia for projects related to renewable energy sources. Likewise, there is also a growing number of foreign investors willing to support the development of such projects in our country with their experience. However, the most important question that arises in this story is the difficulty of finding commercial banks that are willing to support these projects.

Namely, this is about very complex projects, in which it is important to provide the client with a complete service, which implies a large amount of technical knowledge.

Aleksandar Savić, Head of Erste Bank’s Special Finance Department, responded to questions about the complexity of these projects and what kind of specific skills, in addition to regular banking skills, need to be possessed by a bank that wants to enter into this process, and that has previously considering the financial structure itself.

BANK AS AN ADVISOR

SERBIAN MARKET POTENTIAL

What kind of experience does Erste Bank have in the financing of green projects and what can it offer new clients, on the basis of acquired knowledge?

What are the basic preconditions Serbia needs to fulfil in order to gain the opportunity to fully exploit its potential?

— In addition to the banking knowhow that we possess, project financing also requires specific technical knowledge in this field. Considering that projects related to renewable energy sources are largely new to the Serbian market, it is very important for us to understand the actual process and all technical aspects essential to

— When it comes to the Serbian market, we expect greater activity in the field of realising biogas station projects. For example, in the Czech Republic, which is comparable with Serbia on the issue of bio-potential, there are over 500 such plants, while in Serbia there are just five. The implementation of these projects is conditioned by the adoption of expected bylaws. Such regulations should enable greater activity in the field of wind-power plants, although the approach to funding such projects is slightly different because of the small number of very large projects.

Can banks finance all the projects in this field?

— As far as geothermal energy is concerned, the main challenge for the realisation of these

To what extent are projects in the area of the green economy represented in the bank's portfolio?

— Erste Bank pays special attention to financing renewable energy projects, which, despite their complexity, represent an investment in the future and the preservation of the environment.

Investment in this kind of project also represents the strategic orientation of our bank. We have so far invested more than 56 million euros in these projects.

Which projects supported by Erste Bank would you single out in particular, and how many of them are operational today?

— Serbia is specific in that it possesses renewable energy sources of sun, water, wind, geothermal energy and biomass. Projects realised to date consist of 22 small hydro plants, three biogas facilities, two solar power plants, as well as the first wind farm in Kula, which was formally opened late last year. During the previous period, 17 of the aforementioned hydro power plants started to produce electricity. It is important to note that the highest rate of energy recovery from renewable sources is the watercourse energy, and that the greatest potential lies in biomass.

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Diplomacy&Commerce

FINANCING RENEWABLE ENERGY PROJECTS REPRESENTS A STRATEGIC COMMITMENT OF ERSTE BANK, WHICH HAS SO FAR INVESTED MORE THAN 56 MILLION EUROS IN SUCH PROJECTS their success, in order to reduce to a minimum the risk for the customer and the bank. As one of our strengths I would emphasise the experience we have gained by funding 22 small hydro power plants, which are located in different places, and where we had the opportunity to work with various contractors, passing through all stages of project implementation, so we can share with new clients and jointly ensure the viability of the project and investment. Only a few investors have such vast experience.

projects is expensive research works, which – due to increased risk and uncertainty – are not suitable for funding via bank loans.

What kind of conclusion would you draw, based on the projects you have so far supported?

— The conclusion is that Serbia has great potential and that Erste Bank is there to support the development of green projects in an advisory and financial capacity.

Diplomacy&Commerce

The National Day of

Norway

01

02

03

04 01

FJORDS RULE

Norway is the European country (Russia excluded) with the longest coastline - 53,199 km Paal Audestad www.fjordtours.com

02

NO SUN, MANY BOOKS

As of 2011, 37% of Norwegians have completed postsecondary education, making them the best educated people in Europe.

03

05 RICH AND MODEST

Norway is the country with the highest nominal GDP per capita after Luxembourg, approximately 100,000 US$ per person

04

STATE IS THE KING

Norway is one of the few countries that still practices state capitalism.

State-owned companies represented over 30% of the Oslo stockmarket.

05

SPORTY SPICES, ALL OF THEM

Norway has won more Winter Olympic medals than any other country on Earth, with a grand total of 303 medals

www.diplomacyandcommerce.rs

29

I NTE RV IEW

Making a

DIFFERENCE Arne Sannes Bjørnstad Norwegian Ambassador to Serbia

Norway supports Serbia continuously in the establishing of an efficient and professional public administration, as one of the key elements in the success of overall reforms.

This is just one of many examples of successful bilateral relations between the two countries

A

lthough Norway’s domestic economy was hit hard by falling oil prices, the country will continue to provide help and assistance to those countries where the needs are the greatest and where Norway is particularly well placed to make a difference. In the case of Serbia, Norway is focused, among other things, on continuous support to the reform of the Serbian public administration, but it is also active in helping Serbia deal with refugees and in supporting mutual trade. In this interview for D&C, Arne Sannes Bjørnstad, Norwegian Ambassador to Serbia, talks about these and many other topics related to bilateral cooperation between the two countries.

How far do you think we have progressed along the road to securing a systemic solution to the migrant crisis?

— Serbia has shown a high level of humanity and commitment to European values in dealing with the refugee/migrant crisis. We have also seen good cooperation between NGOs and the government in dealing with this challenge. As many as 651,000 migrants entered Serbia in 2015, and 100,000 more have arrived since the beginning of this year. They were all registered and provided with accommodation, healthcare services and protection. However, with the closure of the so-called Balkan route on 8th March, the refugee/migrants crisis has merely been postponed, but not resolved. This means that in the future governments should develop mechanisms in an effort to create societies with more tolerance.

As a major donor to the Western Balkan countries in their response to the migrant crisis, what do you now consider as being the priorities of Serbia’s policy in this area?

— This calm period should be used to improve the laws and standards on asylum and foreigners, as well as implementing programmes for the integration of those refugees who will stay in Serbia. This will require cooperation among different sectors. Our grantee, Group 484, is already working on improving the quality of assistance and developing a wider scope of assistance and protection activities.

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You recently signed a new agreement with the Serbian government on assistance in training for public administration personnel. What are the key objectives of this new

Serbia through different projects. The most recent project is Delivery of Change, which enabled the Ministry of Public Administration and Local Self Government to change its organisa-

Recent examples of successful business endeavours prove that SerbianNorwegian economic cooperation is growing slowly but surely programme and how reliant is it on previous Norwegian support programmes?

— Norway has for years supported the establishment of an efficient and professional public administration in

Diplomacy&Commerce

tion after conducting a thorough analysis. When driving forces for reform come from within institutions, reforms are more flexible and more sustainable. Training is fundamental, because so many reforms – in Norway

and elsewhere – fail because the mentality of those involved remains the same as before, as does their approach to their tasks.

Will the change in Norway’s economic policy, prompted by oil prices, influence the volume of donor support in the region, and what will be Norway’s priorities in this context?

— With oil prices now a third of what they were just two years ago, the Norwegian economy is facing a difficult time. More than 30,000 oil related jobs have been lost since prices started dropping. Due to the fall in the price of oil and gas, the Norwegian Krone has lost a quarter of its value against the euro over the past two

years. Despite this, Norway will continue to provide help and assistance to those in need. In fact, the increase in total humanitarian aid in the budget for 2016 more than compensates for this fall in the value of our currency.

We do, however, need to be more efficient, and Norwegian humanitarian efforts are focused on countries where the needs are the greatest and where Norway is particularly well placed to make a difference.

ploited. The Embassy, from its side, is investing its efforts to further develop these relations.

In the current media reform in Serbia, what lessons could be drawn from the Norwegian approach to preserving democracy through state subsidies for the free press?

To what extent could the first ship from Serbia ordered by a Norwegian buyer be considered a symbolic sign that Serbian companies are managing to find new niches in economic cooperation with Norway?

— The photo from the handover ceremony with the Norwegian and Serbian flags on the vessel hit the media in April. Previously, we also saw Serbian companies making prefabricated houses for Norwegians, as well as parts for the world-famous Norwegian Stokke chairs, and Serbian honey on the Norwegian breakfast table. All this proves that Serbian-Norwegian economic cooperation is growing, slowly but surely. This proves that there is huge potential that has yet to be ex-

Norway will continue to provide help and assistance to those in need. In fact, the increase in total humanitarian aid in the budget for 2016 more than compensates for this fall in the value of our currency

— A free press plays a vital role in democratic societies. A monopoly in the press potentially leads to a monopolising of opinions. Therefore, Norway has developed a press support system to ensure the diversity of voices in the public sphere. The Norwegian media market was undergoing rapid change in the 1960s, benefitting from the larger newspapers to the detriment of smaller, usually local or “alternative” papers. This gave rise to Direct Press Support. Almost 40 million euros in support is now distributed according to set criteria. The subsidies are divided mainly between two groups of newspapers; those that are the biggest or the only paper in a local municipality with a small edition, and those that are the second largest in their municipality, independent of size. In addition to support provided directly, the Norwegian press are also exempt from sales tax.

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31

SE RBIA N-NORW EGIA N T R A DE

Slow but

STEADY PROGRESS Norway is ranked second in terms of the value of foreign direct investments in Serbia, at €1.36 billion, thanks primarily to the investments of company Telenor. Every step Serbia makes towards membership in the European Union provides an additional incentive for Norwegian businesses to look into possible investments in Serbia

O

verall trade between Norway and Serbia is stable.

Serbian exports grew slightly in 2015, while Norwegian exports posted better results than in 2014. According to preliminary data from Norway’s Statistical Office, Serbia’s export to Norway reached a value of NOK 206 million (about €22 million) in 2015, while Norwegian exports to Serbia were worth around NOK 168 million (about €17.9 million).

These results are slightly better on the Serbian side compared to 2014, when exports to Norway reached a value of NOK 164 million (about €19.1 million), while imports from Norway almost doubled in comparison with 2014, when they stood at around NOK 78 million (about €9.1 million). In 2013, Serbia’s exports to Norway amounted NOK 183 million (around €19.1 million), while Norway’s export to Serbia were NOK 64.8 million (around €7 million).

According to official Serbian statistics, trade with Norway reached €47.1 million in 2015, which is far less than with other Scandinavian states.

For example trade totalled €208.6 million with Sweden, €170.7 million with Denmark and €84.5 million with Finland. However, Norway is the only Scandinavian country with which Serbia had a surplus in both 2013 and 2014.

Although that trend was not sustained in 2015, the shortfall remained minimal compared to the trade ratio deficit with other Scandinavian partners, standing at €1.7 million.

The Norwegian market is a challenging one, which is why it is essential that Serbian companies are prepared to deliver high-quality products, thereby fulfilling all the required standards.

However, markets of Scandinavia are not unattainable and when meeting all necessary conditions in terms of quantity, standards and packaging, the

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way to their customer is provided without any obstacles.

The good examples of cooperation between the Norwegian and Serbian companies are several success stories over the past decade, with sizable Norwegian investments in Serbia and the growing Serbian exports to Norway.

Serbia mostly exports to Norway: winches (29.03% share of total exports), transmissions and their parts (9.29%), frozen raspberries without sugar (6.84%), natural honey (6.65%),

Norway in 2015. Apart from these, Serbia also exports parts for hydraulic turbines and waterwheels, jet fuel, men's trousers and work overalls, other food products, diesel trucks up to five tonnes, frozen blackberries and mulberries, scaffolding and support elements, iron and steel products, other ammunition and parts, other wood products, wooden furniture.

At the same time, the leading goods imported from Norway to Serbia are: active organic anion (21.10% share of

Exports of Serbian natural honey to Norway continue to represent a success story, with a consecutive rise in exports of this product (€1.226 million in 2013, €1.413 million in 2014 and €1.493 million in 2015

plastics in other forms (4.15%), plastic-coated paper and cardboard (3.91%), prefabricated wooden structures (3.39%), gear friction laptops (3.05%), parts and accessories for motor vehicles (3.04%) and machinery parts from group 744 (2.87%). These ten categories of goods accounted for over 72 per cent of Serbian exports to

Diplomacy&Commerce

total imports), fresh or chilled salmon (15.83%), unclassified goods (13.88%), polyethylene (9.79%), mackerel (5.28%), mechanically pulped wood (4.91%), writing paper (3.27%), machines for the reception, conversion and transmission of data (2.97%), chemical wood pulp soluble ( 1.56%) and ploughs (1.34%). These ten categories of goods

accounted for 80 per cent of Serbian imports from Norway in 2015.

Exports of Serbian natural honey to Norway continue to represent a success story, with a consecutive rise in exports of this product (€1.226 million in 2013, €1.413 million in 2014 and €1.493 million in 2015. During the last couple of years, the Norwegian Embassy Fund supported the projects: “Honey Production – Export Chance for the Braničevo Region” and “Save her Majesty - The BEE”.

Serbia’s free trade agreements, such as those with the EU, Turkey and Russia, enable further access to various markets. These aspects have resulted in many EU companies recognising the capacities and potentials for various new establishments in Serbia.

Serbia’s economic cooperation with Norway and other Scandinavian countries has significant potential, but has yet to be exploited. Serbia has great potential in agriculture, organic food production, as well as in the field of renewable resources and ICT, which are areas with the possibility of future cooperation between Serbia and Norway.

The broadest range of cooperation with Norway has been achieved in the field of investment. Norway is ranked second in terms of the value of foreign direct investments in Serbia, at €1.36 billion, thanks primarily to the investments of company Telenor in the telecommunications sector. This is also the largest single foreign investment ever recorded in Serbia. Every step Serbia makes towards membership in the European Union provides an additional incentive for Norwegian businesses to look into possible investments in Serbia.

According to the new methodology used by the National Bank of Serbia, net foreign direct investments from Norway in 2014 amounted to €1.675 million, while in 2015 this figure was €1 million.

NORWE GIAN ECCONOM Y

Adopting to

FALLING OIL PRICES

The Norwegian economy, once one of Europe's brightest, ground to a halt in late 2015, and Statistics Norway expects this economic downturn to last until the end of 2016. According to the OECD forecast, growth is projected to recover gradually in 2016 and 2017

N

orway produces 1.5 million barrels of oil per day. This is more than the entire EU, and equates to the world’s 5th biggest production per capita. As Western Europe's top oil and gas producer, Norway has been hit by the 70 per cent fall in crude prices since mid2014. With oil prices now just a third of what they were only two years ago, little profit, if any, is being generated by the industry these days. The resulting labour and cost cuts have an impact on those who have been employed in oil and gas related industries, but also the society as whole.

Moreover, the value of the Norwegian currency, the Krone, NOK, is being strongly affected by current low demand for Norway’s primary export. A 25 per cent drop in the NOK’s value against the euro over the last two years has had a major impact on what Norwegians and Norway can spend abroad; be that on common goods, investments or financial aid.

Overall unemployment has reached a 10-year high of 4.6 per cent, which, although low by global standards, is far above the 3.2 per cent level that Norway recorded in mid-2014.

The Norwegian economy must adapt to considerably reduced demand from the oil sector and rely more on other sectors. Underpinning the necessity to transition towards non-oil industries, the labour cost level in Norway must again be brought more closely into line with those of the country’s trading partners or the NOK has to slide even more. The weaker krone has been a key factor in making non-oil exporters more competitive, but not enough to boost the economy as a whole.

Statistics Norway expects the economic downturn to last until the end of 2016, after which it should pick up slightly. According to the OECD forecast, growth is projected to recover gradually in 2016 and 2017, with non-oil investment picking up in response to higher exports and some new oil investment projects being launched.

The good news is that Norway has never relied on oil as a single source of growth. The Government Pension Fund Global, commonly known as the oil fund, has very strict rules when it comes to using the money it has accumulated, and preserves funds for the future.

Such a policy has enabled other industries to grow, like fisheries, fish-farming and the mechanical

industries, which have improved their export potential with the drop in the value of the currency.

However, this is still not enough to offset the negative trends in the shipping industry, which is suffering from falling oil prices and lagging global trade. In the ‘Maritime Outlook Report’ for 2016, the Norwegian Ship-owners Association indicates that 2016 will be an extremely difficult year for many segments of the maritime industry and that between 4,000 and 4,500 employees are expected to be laid off, compared to 7,300 in 2015.

Nevertheless, the technology developed by Norway for the oil industry is now making contributions to other business endeavours. Norwegian geologists, for example, study oil reservoirs from the “inside” using 3-D glasses and the world's most advanced computers. Now Norwegian surgeons are adapting that oil technology to map brain tumours before operations. Surgeons using the technology say it's like being inside the patient's head.

The country’s offshore expertise also provides an advantage to developing renewable energy. Solar energy will be a robust and sustainable business for Norway long after its petroleum activities decline.

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33

P E OP L E AND CUST OM S

C U LT U R E

Working for a

GREATER CAUSE

From Munch

TO MUSIC

V

oluntary organisations, or non-governmental, non-profit organisations, or civil society organisations, are an important part of Norwegian society. Some of them were established as far back as the mid-19th century and have their roots in the temperance, missionary and labour movements, but also organisations dedicated to cultural heritage, outdoor life and combatting poverty. These grassroots organisations received their funding largely from donations and membership fees.

At the beginning of the 20th century, organ-

Norwegian NGOs have around 10 million members, meaning that the average Norwegian is a member of around two organisations isations started focusing on health, social care and humanitarian work. After World War II, the number of voluntary organisations in Norway increased dramatically. The growth of the welfare state led to changes in the relationship between the state and organisations, where voluntary organisations became responsible for health, children and youth, culture, sports and cultural heritage.

With societal changes, the voluntary organisations also evolved. People are currently more issue-driven and less likely to be a member of an organisation for their whole life.

Young people are increasingly mobilised through campaigns and events, rather than the

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Diplomacy&Commerce

traditional work of organisational structures and within associations.

However, volunteerism still plays an important part in the life of the average Norwegian, with the country boasting around 80,000 volunteering organisations. Around 80 per cent of Norwegian citizens are members of at least one organisation and almost 50 per cent define themselves as “active”.

The level of volunteerism in Norway is one of the highest in world, with the total effort estimated to equal the effect of 115,000 full time jobs.

A

lthough it has a small population, Norway has an incredibly rich, accomplished and varied culture scene. Don’t just think about Grieg, Munch, or Ibsen, but rather also about the country’s great jazz scene, rock and pop scene, as well as popular novelists including Jon Fosse, Jostein Gaarder and Lars Saabye Christensen.

There are many world-renowned Norwegian artists and one of them is certainly Edvard Grieg, Norway’s greatest composer, whose music relies on Norwegian folk music to create beautiful, modern impressionistic pieces. Norway also has some internationally renowned classical performers, such as pianist Leif Ove Andsnes and cellist Truls Mørk, both well-known international performers of Grieg’s music.

Norway has one of Europe’s most interesting jazz scenes, with each successive generation of musicians reinventing and creating their own musical language, from the world-influenced, almost-ambient “mountain jazz” of the ‘80s and early ‘90s, through to the electronica-based period of the late ‘90s and into the hard-bop and free improv-influenced styles of the younger generation.

The previous years have also been good to Norwegian popular music. The so-called “Bergen Wave”, in particular, brought great popularity both at home and abroad for a number of bands from the city of Bergen in Western Norway. Other parts

Norway has one of the most interesting jazz scenes in Europe, with each successive generation of musicians reinventing and creating their own musical language of the country have also produced a lot of popular rock and pop bands and artists in the past. The Norwegian heavy metal and death metal scene, meanwhile, is universally acknowledged as superior to all other such scenes worldwide.

Norway has produced more than its fair share of great poets, playwrights and novelists, such as Henrik Ibsen, Sigrid Undset, Knut Hamsun and Bjørnstjerne Bjørnson, but also very good contemporary writers, such as Jon Fosse, Jostein Gaarder and Lars Saabye Christensen.

Leif Ove Andsnes

For Norwegians, volunteering is not a thing of the past. The Norwegian word “dugnadsånd”, translatable as the spirit of will to work together for a greater cause, has always been strong in Norwegian communities and is translated into a strong, vibrant civil society sector

T OURISM

Lifelong

WELLBEING

E

urope's northernmost country, the Kingdom of Norway, enjoys one of the world's highest standards of living, thanks largely to the discovery of offshore oil and gas in the late 1960s.

There is broad agreement in Norway that the state should contribute actively to ensuring the wellbeing of its inhabitants from cradle to grave, and that the public sector is partly responsible for compensating for inequities.

With this in mind, the Norwegian state is constantly searching for better models for healthcare, education, pensions and social security systems, which are continuously subjected to reform. Developments within the Norwegian welfare system are undertaken jointly by state

and local authorities, in collaboration with research communities, business groups and other organisations. New programme ideas are studied continuously and all key welfare mechanisms have been subjected to to some degree of reform in recent years. The state also uses legislation and other instruments to stimulate change. One example is a law specifying that 40 per cent of the board members of Norway’s largest companies must be women. Another is a set of rules that reserves a substantial portion of the period of parental leave for fathers after a child is born.

In 2012, Norway was also ranked by the World Economic Forum's Global Gender Gap Report as the country with the third highest level of gender equality.

www.diplomacyandcommerce.rs

37

DENTAL CENTER NORDENT

T OU R I S M

Norwegian Smiles

MADE IN SERBIA

Dental center NorDent from Subotica celebrating 10 successful years as founder and leader of “dental tourism” in Serbia

Svalbard – Only

FOR THE BRAVE Unique natural surroundings have resulted in Svalbard becoming a popular tourist destination. The climate is tough, and tourists are advised to participate in organised groups with qualified guides, to ensure their own safety while they explore one of Europe's last remaining wilderness areas

T

he Svalbard islands are located in the Arctic Ocean, halfway between Norway and the North Pole, and this archipelago has fascinated travellers for a long time. Unique wildlife, arctic nature and old mining towns are all found on the islands, which have a stark and eerie beauty that’s all their own.

D

uring its development the founders and the staff have succeeded in applying all relevant experiences and information affecting our high quality and efficient service for the purpose of meeting the needs of every potential patient from any part of the world.

The standards in providing the highest quality of dental service were set by the most contemporary technological and technical dental equipment, dental devices and materials, hygienic procedures, constant doctors educational and professional improvements. NorDent has empathic approach to every patient, beginning with the initial contact with the agent, travel and transfer from the airport, hotel and clinic reception, ending with the precise diagnosis, therapy plan and recovery.

A vast net of trained and highly educated agents in the largest countries in EU and Scandinavia, provide a high quality communication in the native language between the potential patients and the doctor. The patient can get fully familiarized with all the details of the potential health treatment by the team of our doctors, amount of time optimally spent in Subotica, means of travel, health insurance, accommodation and stay in Subotica and most importantly, the prices, before the planed trip to NorDent.

Today, with 11 dental offices for mobile and fixed prosthetics, dental technical “cad-cam“ laboratory, central sterilization and digital x-ray diagnostic unit, Nordent was intended for the most demanding medical interventions in the field of dentistry and maxillofacial and plastic (aesthetic) surgery.

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Diplomacy&Commerce

Nearly two thirds of Svalbard is protected and consists of several nature reserves, national parks, bird sanctuaries and even a geo-topical protected area Ever since Willem Barents discovered Spitsbergen in 1596, the archipelago of Svalbard has been known for its rich whaling, trapping and fishing resources. The islands were

considered a no man's land and activities in the area centred primarily on the exploitation of natural resources. However, today there are ever more tourists interested in this northernmost region of Norway and the northernmost society in the world.

Svalbard is an incredibly fascinating and interesting archipelago and it attracted 60,000 tourist visitors last year, up from 41,000 in 2008. However, not every tourist is fit to visit Svalbard. The climate is harsh and tourists must bear in mind that there is risk associated with touring the harsh Arctic nature of one of Europe's last remaining wilderness areas. As such, most visits are organised and have qualified guides, for the sake of their own safety.

Svalbard is also an important international research station, with the village of NewAalesund representing the centre of focus on Arctic research. Climate research has been conducted in Svalbard for generations, while Norway pays special attention to preserving the natural environment – not just for current scientists, but also for future researchers.

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39

I N SEARCH O F THE DIGITAL WORLD

WHAT REALLY TINGLES OUR EXCITEMENT? Consumers are no longer exposed to new products or services merely when they enter a shop or browse the internet. Multiple new devices, platforms and social media channels surround them daily, or, if I must be 100 per cent accurate, hourly; even every minute. We are exposed to a digital world filled with

exciting new products, services and digital innovations.

Looking at the 2016 trends, it takes creativity and an analytical approach to determine these trends, but doing so is totally worthwhile. There are still a few questions surrounding some trends, but we see this as an opportunity to provide answers and build up our own knowledge.

NARCIS SELIMIĆ Co-founder of agency Partner

WE ASKED: 01 The rise in the use of digital tools and technology among consumers is having a major impact on advertising. What will be the main challenges and tools for interacting with customers in 2016??

02 The omni-channel experience, Search and e-commerce, Instagram, Pinterest, Snapchat, Facebook, Google, YouTube, Meerkat & Periscope – all place the consumer as the marketer of a brand. If you had to choose, which one would you pick up and why?

IGOR BOŽOVIĆ EXECUTIVE GROUP digital account director

Advertising is transforming rapidly, with 01 every new technology like Virtual Reality or Programmatic ads, so making a prediction is very tricky – given that the evolution of communication is perpetual. How to reach consumers when they are moving away from television and print – when linear information flow is interrupted – is something in which we at Executive Group really invest our expertise. If the goal is to expose the audience to our brands and their stories, we have to be present where

40

Diplomacy&Commerce

What particularly excites me when we talk about the digital environment – as a man occupied by the media, marketing and research – is the fact that advertising on the internet is developing constantly and rapidly, and is being transformed instantly. Without advertisements there is no “free content”. “If you're not paying for the product, you are the product.” – If you read or watch without paying, then you need to click, or at least watch, adverts.

While Google and Facebook “skim the cream”, news portals are struggling to find solutions for how to operate positively. The model of “free” placing of information in return for visits and clicks that are paid by advertisers has proved to be unprofitable. This year there are various experiments going on: some publishers brazenly condition their consumers to deactivate AdBlocker and bombard them with banners, pop-ups and floating ads, while others separate quality content from the “free” part and try to sell it through subscription.

The initial enthusiasm of advertisers for having revealed the spectacular possibilities of advertising on the internet has long gone, and

01

consumers spend most of their time, news and entertainment. Publishers are no longer only media outlets, and so-called native advertising is being ignored. Publishers are consumers themselves, which leads to the emergence of YouTube/Instagram stars, who interact with customers and brands in a totally different way.

Some advertisers have recognised this new model and are in pursuit of the next big star, but finding the balance between their own content and branded content is what advertisers have to still practice. Just simply making them use your products and talk about them can easily render them irrelevant and perceived as paid advertising. The harder, but more honest way of capturing this wave of “advertising” is by creating content tailored for the consumers. But that content has to be good and relevant to the audience. The moment it feels like an advertisement, consumers will see through it. And that is the main challenge, since there is an

now they are seeking something more effective for their money. At their request, the world responds quickly – in addition to the usual verified accurate measurements of impressions and clicks, internet media increasingly came together and engaged market research agencies to give customers complete, transparent information, the right demographics and fine segmentation of the audience, because digital automatic measurements cannot measure everything. At my agency we advance handin-hand with the world. For the Serbian market we have already completed the first phase of research on the so-called Millennials, a target group that is almost naturally linked to the internet. We are currently drafting a unified tool for measuring the efficiency of internet advertising called MEIn.Web, which, combined with “hard” digital data, provides advertisers and the media with the possibility to more easily select the optimal media they want for specific campaigns.

In the end, in response to your second question, my recommendation is, and has always been, to have a media mix. And that was the case when there was no internet and now that there is. Therefore, I would prefer to choose, if I am able, to run a campaign though multiple channels. Which ones? Well, that depends on the needs of the campaign and of the target groups...

02

explosion of content, so consumers can, and will, choose which content they want to consume. We have to embrace the fact that we have to make something remarkable. It is evolving every day, and we can see the expanding possibilities of Virtual Reality unravelling just as you read this. Entertainment will change soon, and that will affect everything once again.

Snapchat became huge last year and we captured the wave with the first Snapchat campaign in the region, but If I had to choose one I would say that I choose the internet itself, since there is no one solution that fits all brands. If you are selling your product or service online, you have to pay attention to reviews from your customers on Youtube for example, but if your brand is talking to teens, and you want them to live your brand story, then talk to them via Snapchat or Instagram, something that is hardwired into their life.

02

MARIJA JOKSIMOVIĆ Digital Account Director Universal Media

We are using over ten different tools on a daily basis in order to discover the right path that connects brands and consumers. Data is the key, but it is important how you can translate that data when it comes to consumers.

We are constantly investing in research, tools, as well as education, in order to understand consumers. For example, in order to understand the behaviour of users on social networks we

01

have the annual Wave study that shows us how they want to interact with brands or how they are using social networks. We are also using the AD-tribution modelling tool that show us what the attribution is of each channel in the consumer journey, meaning to get to the right person, with the right message at the right moment.

Social listening is also an important part of our process, since we can see how brands and consumers are living in day to day interaction.

All channels are equally important and have different goals. The idea is not to choose one, but to find ideal combination of channels for creating the best interaction with

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MILOJE SEKULIĆ Homepage

The marketing industry is facing a “millennial challenge”. We are dealing with the Millennials, the first generation that grew up connected to the internet, networking orientated and used to being active, exploring, asking questions and providing their own opinions. Generation Z is also at the door, knocking.

As absurd as it may sound, given the state of the economy, we here in Serbia also live in an “economy of abundance”…

There are too many of the same products and with similar prices around us. It is followed by the “economy of attention”, we are inundated with information, our senses are over stimulated and it is a huge challenge to penetrate the market and gain the consumers’ attention even for a

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A newsletter with a mailing list made according to the “opt in-opt out” principle is the most effective sales channel. In order to build it, all of the aforementioned can, should and must be used most often.

MILAN KOVAČEVIĆ Country Manager at Gemius Serbia

In 2016 a milestone will be set for one of the key future marketing trends on developing digital markets like Serbia’s – real time, fully personalised marketing. Using tools for omni-channel marketing automation, such as SalesManago, brands will do their best to target clients with the right message at the right time and in the right place.

The main idea is to keep consumers en-

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VLADIMIR ARANDJELOVIĆ Media Manager, Digital Department, Direct Media

moment. The marketing industry is resorting to “heavy guns”. Ads are becoming more and more aggressive and frequent, which suffocates the senses of those they should be reaching. The paradigm has to change! There must be a transition from a push to pull method, to substitute the aggressive marketing with content marketing and for us to start developing our own media, instead of just using those that overcharge us for useless ads.

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consumers. If we need to choose one, we will use our proprietary tools and our research Wave to find out which channel is the most appropriate for our specific target audience. For instance, Snapchat is rating big among young audiences and we predict that it will grow very fast, with the potential to increase the number of users very quickly. On our markets brands are still a bit shy, but those that are connecting with the younger audience started using Snapchat as a one of the channels. On the other hand, Facebook is still the biggest social network on the market, with great potential and fantastic targeting options. At the end of the day, it all depends on which brands we are talking about and to whom we are talking.

Data, data, data. The winners in this industry will be determined by the capability of the companies to gather, process and secure data, i.e. user privacy.

U.S. companies have long understood that the winning combination for the modern economy is artificial intelligence controlled by man. This is a symbiosis proven to be working great in programmatic advertising and that is the main reason this type of automation is gaining primacy in mass channels of communication with consumers. Both tools and challenges of 2016 will be focusing primarily on data mining, processing and privacy, but also on people trained for these “special ops.

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One of the main characteristics of digital media

gaged, presenting them with content they are thinking about at that moment, using their momentary interest to guide their actions into sales conversion.

The growth of video and mobile advertising will continue, increasing not only investment, but also the production quality of advertising materials.

Display will continue to be an important part of the media mix, making available its unrivalled power to build and support brand awareness. More attention will be paid to introducing advanced methodologies to measure the effectiveness of display campaigns.

Social media will be used more and more wisely by advertisers. Content is king, and prop-

consumption is explicit and ever-growing fragmentation. This is why any answer is wrong if it is not an Omni-channel experience.

Anything else would be equivalent to going to a golf tournament with only one club. The basis for any strategy and key campaign message need to be essentially versatile and compatible with communication channels, otherwise they will not qualify for a presence on the consumer’s screen. If we’re not ready now, the future will not be kind to us - fragmentation is a progressive process. This year you’ve presented us with 10 options, but come next year that number will have doubled. We will have to find a way to simplify advertising on smart home devices, smart watches, glasses and cars

er content targeting and retargeting will be a prerequisites for success. Making the target audience the best marketers of a brand by sharing their customer experience as content on social media will become an important part of every digital marketing strategy.

The importance of Facebook as a communications channel is expected to grow in future, especially after the launch of Bot Engine and Facebook Instant Articles. Both the high-quality content and advertising material volume of Facebook will increase rapidly, positioning it firmly as one of the best places for communicating with current and potential customers.

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CORPORATE

Offering Excellent Service to Our Clients LUKOIL SERBIA is planning to increase its stakes in the Serbian oil market by expanding the coverage area of its petrol stations in the country and selling high-quality motor ANDREI M. CUCU fuels, as well as offering excellent service to our clients CEO of Lukoil Serbia Ltd. What are your views on the business climate in Serbia?

— I would say that Serbia deserves a more attractive and more transparent business environment. The stability and predictability of the environment, tax system, and economic regulation are of utmost importance to investors.

Labour laws and laws concerning privatisation, planning and construction contributed considerably to enhancing Serbia’s business climate. These laws have to be in compliance with the EU legislative system, as well as implemented measures towards fiscal consolidation.

Based on the ease of doing business, the World Bank ranks Serbia 56th of 198 countries.

Although reforms, especially of the judiciary, have had a positive outcome on the economy, there is still a lot to be done.

In a nutshell, based on our experience with foreign investment companies, it is possible to achieve excellent results in Serbia, but obviously this is not enough. The Association of Foreign Investors, together with non-governmental organisations, local authorities and local companies, have to join together in order to improve the business environment as a whole. Our motto reads – ‘Stop criticising, be proactive’.

LUKOIL is a Russian company. Does this affect your business endeavours?

— Two sayings explain everything – ‘Nobody loves Russians as much as Serbs do’ and ‘Serbs love everything Russian’. This means that we certainly have a good opportunity for business ventures in Serbia.

Looking at the international standards set by multinational corporations like LUKOIL, to what extent are those standards applicable to the four countries of the region, considering difficult market conditions?

LUKOIL TENDS TO MEET EUROPEAN STANDARDS IN EACH OF ITS STAGES OF DEVELOPMENT. WE ARE ACTIVELY IMPROVING; OUR NEW MANAGING AND MANUFACTURING TECHNOLOGIES — We need to respect both local legislative laws, and corporate demands of the company itself. Thus, apart from differences stemming from tax and labour legislation, working conditions are the same in all four of these countries.

Our information technologies include up-todate corporate programmes that enable us to ef-

ficiently manage companies that are part of the LUKOIL Group in the Balkans. Meeting corporate demands is fairly simple, since they match European standards. One of the company’s biggest strengths is relevant experience in various European, American and Asian countries.

In your opinion, what are the chances for business expansion in Serbia and the region?

— To provide convenience, we are planning to expand our retail trade market in Belgrade, Pančevo, Kruševac, Vršac, Lazarevac, Kikinda, Užice, and Mladenovac. According to our research, the Serbian motor fuel market is still lively, which means that consumers need contemporary, economical, customer-orientated petrol stations.

In the region we estimate our economic efficiency based on synergy with the company’s refineries. For instance, Serbia gets its fuel from refineries in Romania and Bulgaria, whereas Croatia’s supplies come from the ISAB refinery in Italy. So, we believe that the Serbian, Croatian, Macedonian and Montenegrin markets are prosperous.

What issues could regional investors possibly encounter? To what extent does good communication with the authorities facilitate fast problem solving?

— We are convinced that good effective communication with the authorities is essential in Eastern European counties with a transit economy. Bearing that in mind, our business ventures are based on mutually acceptable conditions.

One of the biggest issues is the urbanisation of locations and obtaining building permits.

Could you name some of the key factors for conquering markets and winning over customers’ trust? What measures does LUKOIL SERBIA Ltd. have to implement to achieve this?

— LUKOIL tends to meet European standards in each of its stages of development. We are actively improving; our new managing and manufacturing technologies enable us to maintain good quality fuels and services, hence our

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motto ‘Always on the Move’. Good quality products and services are an indicator that you have conquered the market. We have to meet all of our customers’ demands; our high-tech equipment ensures successful business pursuits.

None of this would have been possible though without our employees’ sacrifice and dedication. A growing demand for our fuel confirms its quality – we are very grateful to our customers.

Since 2012, LUKOIL SERBIA has been distributing branded motor fuels like ECTODiesel and ECTOPlus, based on Euro 5 quality.

The properties of ECTO fuel ensure an improved performance – reduced noise, vibrations and fuel consumption, greater engine strength, easier cleaning and better protection against rust. We claim that with our fuel your car will be as good as new. With the use of ECTO fuel, the emission of cancerous material will be reduced by 8 to 10 times. LUKOIL’s business endeavours entail environmental protection as one of the most important factors for success.

Experimental research carried out by the Faculty of Mechanical Engineering in Belgrade in October 2013, and in various laboratories in England and Russia, showed that the use of our fuels significantly improves your car’s engine performance. Sports car fans will be happy to hear about the release of ECTO Sport, the fuel that additionally increases engine power and maximum acceleration. In conclusion, I would say that the main prerequisite for market development is the creation of a competitive business environment.

What are the prospects for the oil industry, given that oil prices have remained low for a long time?

— As we have already seen at the international meeting of OPEC on 17th April, member countries failed to reach a consensus over limiting the production of oil. We are hopeful of reaching agreement on a decision at the next meeting in June 2016.

With the oil price drop, investment in the oil market has fallen significantly. For instance, 400 billion dollars were withdrawn from the oil market in 2015, which consequently lead to production cuts and a rise in price.

At the moment, the price of oil is around 40 dollars per barrel, whereas in the second half of

2016 it should be around 50 dollars per barrel, LUKOIL estimates.

We feel that history is repeating itself – the oil price in the 1990s was around nine dollars per barrel, so oil companies had to mobilise themselves and adjust their costs in order to survive. The oil market has started doing the same again, and we believe this period could last anywhere from two to five years.

Naturally, the price drop has negative

LUKOIL LTD. HAS REACHED ITS JUBILEE. WE HAVE MANAGED TO BECOME ONE OF THE LEADERS OF THE OIL INDUSTRY IN LESS THAN A QUARTER OF A CENTURY. TODAY IT IS THE RENOWNED OIL AND GAS SUPPLIER ON THE INTERNATIONAL ENERGY MARKET effects on our company’s finances. However, neither our company nor its subsidiaries have seen any loss in terms of income, shares or other social expenditure.

All LUKOIL petrol stations have been refurbished. How much money was invested in this venture?

— We carried out major modernisation works on our retail network in Serbia in 2014 and 2015. We bought brand new equipment and IT programmes, and we still have not reached our goals. Over the past two years we have invested over 12 million dollars. We are convinced that our customers appreciate our efforts.

LUKOIL will celebrate its 25th birthday in 2016. Could you tell us more about the

company’s perilous journey from Gorbachev’s USSR via Yeltsin’s Russia to the European brand that Russia is proud of today?

— LUKOIL Ltd. has reached its jubilee. We have managed to become one of the leaders of the oil industry in less than a quarter of a century.

Today it is the renowned oil and gas supplier on the international energy market.

From the very beginning, it has been clear that the company will last. We knew that we are going to be around for a long time. LUKOIL has been through several stages so far: voluntary nationalisation, privatisation, redemption of shares from the government, and strategic partnership with ConocoPhillips, which was finally concluded in 2010. This brought us valuable experience.

Today, LUKOIL is a Russian transnational corporation that owns unique technologies and professional staff, with outlets in more than 40 countries worldwide. This is what we believe to be our greatest achievement in 25 years of our existence.

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B USINESS NEWS FOUR AGREEMENTS OF 9.5 MILLION EUROS Mr Aleksandar Vučić and H. E. Mr Christer Asp Swedish Ambassador talked about the four agreements amount to approximately €9.5m and will be implemented by the Serbian Ministry of Agriculture and Environment during the coming 4 years. “These projects will help to pave the way for the EU negotiations on environment issues, and will contribute to the quality of life for the citizens of Serbia” said the Swedish ambassador. They will provide better services in handling waste water and solid waste. It also helps making Serbia a cleaner place that can better attract foreign investment and tourism. The four agreements are: Support within the Environmental Accession Programme (ENVAP), Support to the environmental infrastructure programme (EISP) through which Sweden is supporting Serbia’s strategic investment planning in the environmental sector, including capacity building of Green Fund, Support to a new project preparation facility (PEID), for developing technical documentation and permits for environmental infrastructure projects enabling them to be financed by EC and others, and Support to the Ministry’s chemicals management department.

Slovenian and Croatian business clubs

TRILATERAL MEETING OF BUSINESS COMMUNITIES

The American Chamber of Commerce in Serbia, Hellenic Business Association of Serbia and the Swiss-Serbian Chamber of Commerce organized the S " peed Business Meeting" for its member companies. The meeting was attended by 41 companies, among which 16 were American, 14 Greek and 12 Swiss companies operating in Serbia.

Representatives of companies from different sectors of commerce and business, through short business meetings, effectively had the opportunity to connect with one another and present their activities for the purpose of business development and acquisition of new potential customers.

Upon completion of the 8-minutes’ 'one on one'-meetings (determined by the drawing of lots) the networking cocktail was organized for all participants during which the companies had informal meetings thus having the opportunity to share more information with all interlocutors present.

Diplomacy&Commerce

INTERNET OF THINGS

Schneider Electric Serbia presented the results of a global survey of how companies are using or planning to use the Internet of Things (IoT) as a serious business tool by 2020. The research results of this new technology based on connecting devices and sensors to the internet network, show that by 2020 there will be at least 50 billion connected devices, and this technology will lead to a real revolution and will function as a source of innovation. Schneider Electric Research on this topic was conducted in 12 countries and 2,500 users were interviewed, and the results indicate that awaits the next wave of digital transformation in which the workforce will be increasingly digital, mobile and active. In this way, the Internet of things technology will be of assistance to countries and their economies to respond to the major challenges facing our planet, including global warming, water shortages and pollution. 63% of surveyed companies plan to use the IoT to analyse data that will help them to respond better to their demands.

Association of Business Women in Serbia in cooperation with the Slovenian and Croatian business clubs in Belgrade, organised Speed Business Meetings in order to establish new contacts, present products or services, the exchange of information on current business needs and opportunities to establish cooperation. We believe that they will result in the establishment of business cooperation. Today’s event confirms that the member companies of the Association and business clubs think that the most important thing is networking, and for ABW Serbia it is an

SPEED REGIONAL BUSINESS MEETINGS

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Schneider Electric Serbia

indication that such meetings should be organised more frequently – said Dr. Sanja Popović Pantić, President of the Association of Business Women in Serbia. Croatian Business Club took part in the gathering of this kind for the first time, which, I think, is extremely useful for all participants, not only to present their offers and meeting new potential customers but also in order to continue communication in the future and exchange of good business practices - said Marija Radulović, President of the Croatian Business Club.

Philip Morris

„ACADEMIC TO BUSINESS“

The ongoing competition named A " cademic To Business" (A2B), implemented by the Centre for Leadership Development with the support of Philip Morris in Serbia is a great opportunity for students of final year of undergraduate studies, master and doctoral studies of faculties in Belgrade, and entrepreneurs who started their business less than three years ago. As a result, selected five-member teams of students will be associated with the selected entrepreneurs, whose business they will try to improve with their ideas. The winning student teams will receive valuable scholarships, and the entrepreneurs will get 100,000 dinars to be used for the implementation of the best student solutions. The competition is open until 8th May 2016 and conditions and application forms for students and entrepreneurs are available at www.pokrenisezabuducnost.rs in the section Competitions.

Carlsberg Serbia

NEW LAV BEER MADE OF ONLY 4 GIFTS OF NATURE

The company Carlsberg Serbia presented the new LAV beer with 100% barley content, which is a true taste of beer that has just got better. The most famous Carlsberg beer on the Serbian market from now produces only four gifts of nature: barley, water, hops and yeast, without the addition of corn meal, which makes it unique in its segment. The important things can always be better, but when it comes to beer, there is nothing better than natural ingredients that make the new LAV and give it a slightly different taste, with outstanding quality standard. “We’re back to the original beer recipe with 100% barley content. Barley beer gives fullness of taste, pleasant bitterness and richer foam. Our new LAV with 4 gifts of nature will remain with 11% extract and 5% alcohol and we are sure that the different taste will be well received by consumers, “said Nataša Šarčević, Marketing Manager for the domestic brands of Carlsberg Serbia. New LAV is available on the market in recognisable packaging with modified design that communicates a new liquid.

US OFFICIALS VISIT COCA-COLA SYSTEM

Etihad Airways

CRYSTAL CABIN AWARD

Etihad Airways has won the coveted 2016 Crystal Cabin Award in the new ‘Cabin Concepts’ category for its Boeing 787 First Class cabin, featuring the airline’s new First Suites, unique to its Dreamliner fleet.

The award is the second consecutive win for the airline’s innovative new cabins. In 2015, it won the prestigious award for its Airbus A380 upper deck cabin designs and products.

Peter Baumgartner, Chief Commercial Officer of Etihad Airways, said: “Yet again, the sheer depth of innovation which went into the creation of the revolutionary First Class cabin on our new fleet of Boeing 787s is being recognised by the industry’s most respected experts and professionals, as it was for our A380 in 2015. This vision has been driven by a co-creation approach with consumers and magnificently brought to reality by the many Etihad Airways employees involved in the project, together with the Etihad Design Consortium.

Italian Chamber of Commerce in Serbia

BALKAN WINE EXPO HELD IN BELGRADE

The third Balkan Wine Expo was held in Belgrade on the 1st April. It was organised by the Pilota Green company and supported by the Italian Chamber of Commerce in Serbia. At the fair, which was primarily itended for the professionals, more than 250 labels of Italian wines were presented, and once again the quality in which permeate the culture, experience, tradition, and innovative technologies and the pursuit of excellent taste and sophistication was confirmed. The products were presented by 32 producers of the regions: Piedmont, Lombardy, Trentino Alto Adige, Veneto, Friuli, Marche, Tuscany, Abruzzo, Basilicata, Puglia and Sardinia. Wine tasting was led by the journalist and Master Sommelier Class A.I.S Mr. Bartolomeo Roberto Lepori. At the end of this event there was held the gala dinner, provided by the perspective Chef Giovanni Merlo who was preparing typical dishes of the region of Treviso in honor of the country of Prosecco.

During the official visit to Serbia, Mr Skip Jones and Ryan Barnes, senior officials of the US Department of Commerce, visited the Coca-Cola system in Serbia. Representatives of the American delegation visited recently opened Regional Centre for juices in the construction and expansion of the capacity of the factory invested more than $7 million. W " e are proud to have hosted high-ranking officials of the Ministry of Commerce and presented investments in markets where we have been

dedicated for nearly half a century.

Our success is obtained through excellent cooperation with our 37,000 partners in Serbia", said Aleksandar Ružević, general manager of Coca-Cola Hellenic Serbia. The results of companies in the field of sustainable business were presented. Thanks to them the company recently received another Golden EWS certificate, a badge of quality and compliance standards in the field of responsible management of water resources and environmental protection.

UniCredit Bank Serbia

2015: A YEAR OF SUCCESS

UniCredit Bank has continued to make excellent business results even in 2015, making it one of the most successful business year. Thanks to improved processes, products and services complying with the requirements of customers and the market, the bank has confirmed the strength and efficiency of its business model. The bank confirmed the number three position on the market in terms of total assets, and for the first time it recorded a double digit market share, above 10%.

Commenting on the results achieved in 2015, Claudio Cesario, CEO of UniCredit Bank Serbia stated: “I am very pleased to say that through financing of projects of public interest, we once again confirmed that we are the right partner for the Serbian economy. We successfully started the digitalisation process, and we continue to provide support to the most vulnerable categories of the population, the development of social entrepreneurship and initiatives of local importance.“

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B USINESS NEWS Erste Bank

DSW

The new competition of the National Forum for green ideas, organised for the fourth consecutive year Trag Foundation in partnership with the Rockefeller Brothers Fund (RBF) and Erste Bank was launched in April. The contest was launched with the idea to recognise and support innovative projects based on the principles of sustainable development that can achieve significant social, environmental and economic impact in local communities, protecting the environment. The competition lasted until 2nd of May. The three ideas with the greatest potential for improving the quality of life of the community will receive $ 5,000 intended realisation of the ideas will be further supported by consultation and mentoring with the aim to become competitive and sustainable in the long run. In the name of organisers, the director Biljana Dakić of the Trag Foundation said.

Biomass has a share of 64% of the total technical potential of renewable energy sources in Serbia, amounted to 3.4 million tons of oil equivalent. Utilisation of wooden biomass is high with 66.7%, while the potential of agricultural biomass marginal to about 2%, said the director of the Delegation of German Economy in Serbia Martin Knapp at the opening of the conference B " iomass and biogas in Serbia." The most promising uses of biomass heating buildings and homes through the use of pellets and briquettes from biomass, replacement of fuel oil or coal with biomass as a fuel in power plants and electricity generation and cogeneration through the use of agricultural residues and wood residues. Head of the Group for the sustainable use of natural resources in the Ministry of Agriculture and Environment Slobodan Cvetković said that Serbia needed to increase the use of renewable energy to 27% by 2020.

The gathering, organised by the Delegation of German Economy in Serbia in partnership with the Federal Ministry of Economy and Energy Republic of Germany, the leading experts from Germany and Serbia.

GREEN IDEAS ON THE RISE

Naled

VOJVODINA NEEDS MORE EXPERTS TO ATTRACT INVESTMENT

BIOMASS AND BIOGAS IN SERBIA

Vojvodina municipalities have attracted an average of 4,5 foreign direct investments in the past 10 years but the most successful were those that have established and developed the Offices for Local Economic Development (OLED), as a special department to support the existing businesses and attraction of investors. Those employing at least 4 specialists had an average of 6 FDI while those with 3 employees or less had the result half the weaker, shows the study NALED conducted within the project A " nalysis of the capacity of local governments in AP Vojvodina management activities of local economic development", which was supported

”BIS” CHARITY EVENT The British International School is delighted to invite you to our “Medieval Fantasy Fair” charity event!

Come join us and bring your children along to our Primary Campus at Uzicka 7a on 21 May, from 10:30 until 16:00 for a day of fun activities, international cuisine, face painting, an interesting programme and valuable raffle prizes! This year all proceeds will go to the “Life Values” Project to support their 2016 summer camp.

The British International School was opened in Belgrade in 1997 and caters for the needs of diplomatic and foreign business families, as well as local families seeking education in the English language for their children.

BIS was the first school in Serbia to be registered by the British Department for Education (DfE) and the University of Cambridge. BIS is a regular member of the European Council of International Schools (ECIS), an associate member of the Council of British International Schools (COBIS) and is recognised by the Serbian Ministry of Education.

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by the Provincial Secretariat for Interregional Cooperation and local Government. It is an undeniable positive correlation between capacity and OLED while local governments that have decided to further improve the quality of service by joining NALED's certification programme of municipalities with favourable business environment have a better effect. Eleven municipalities that have successfully undergone certification attracted almost three times as many investment compared to others - said a member of NALED Managing Board and CEO of Gomex Goran Kovačević while presenting the research at the City Administration of Pančevo.

SPEED BUSINESS MEETING The next regional speed business meeting organized by French-Serbian Chamber of Commerce in cooperation with the French-Croatian Chamber of Commerce and Industry (FHTIK) in Croatia, will be held on Thursday 12th May, from 3 to 7 AM in Belgrade. This event is intended for all companies that want to expand their business in the region and meet potential partners from Croatia.

Each company will have a maximum of 10 random meetings. Companies from all sectors can sign up, with the number of service companies limited to three. The meetings will be followed by networking cocktail. For more information about the event as well as on sponsorship opportunities, please contact us: office@ccfs.rs, 011 334 8 351/353.

CCIFS Embassy of France, the French-Serbian Chamber of Commerce (CCIFS) and the Crédit Agricole bank will jointly organize a seminar dedicated to cooperatives for the joint use of agricultural equipment on 18th May at 10 am, at the International Agricultural Fair in Novi Sad. The event will be opened by French Ambassador to Serbia, HE Christine Moro and Dragan Mirković, Assistant Minister of Agriculture. Seminar will be animated by Mr Vermeulen, President of the French Federation of cooperatives for the joint use of agricultural equipment.

I NFRASTRUCTURE

By: BOJANA ŠEVIĆ

Danube Strategy – Step Closer to EU Integration

Your packages in safe hands

A roundtable entitled “The Danube - Serbia’s inclusion in trans-European transport and energy networks” has been held in Novi Sad! Under the organisation of the European Movement in Serbia, the Forum for International Relations, the Belgrade forum for political security and the Faculty of European Legal and Political studies, the Gallery of Matica Srpska in Novi Sad hosted a conference that brought together people from both the governmental and civil sectors, as well as visitors from the region with which we are connected as Danube border zones.

The roundtable was aimed at familiarising a wider audience with the Berlin Process and the European strategy for the region of countries traversed by the Danube, followed by the presenting of an analytical report on the integration of Serbia into the trans-European transport and energy networks.

the functional levers for faster integration into the EU, thanks to which Serbia can gain a lot with minimal investment. Apart from Professor Miroslav Jovanović, guests were also addressed by István Pásztor, Speaker of the Assembly of Vojvodina, who said: - I would like for us to receive more generous funding in the future, so that the Danube identity could come to the fore and we would thus realise many development projects. The Vojvodina Assembly has an important role to play in that, and we will continue with this work.

The first panel discussion dealt with the Berlin Process and the European strategy for the Danube region, in which Imre Kan, Secretary of State at the Serbian Ministry of Transportation and Infrastructure, said that this strategy involves all areas of navigation

THE DANUBE REPRESENTS ONE OF THE MOST IMPORTANT RESOURCES THAT SERBIA HAS, IN TERMS OF TRANSPORT, ENERGY AND THE ENVIRONMENT, AS WELL AS THE FUNCTIONAL LEVERS FOR FASTER INTEGRATION INTO THE EUROPEAN UNION These were also the themes of three panel discussions, and at the very beginning guests were welcomed by Aleksandar Simurdić, representing the Novi Sad office of the European Movement in Serbia, and Jelica Minić, President of the Forum for International Relations of the European Movement in Serbia, who pointed out that the Danube represents one of the most important resources that Serbia has, in terms of transport, energy and the environment, as well as

on the rivers and that the government has adopted an action plan that will be implemented.

- The Ministry is obliged to submit a report on its work after two years. A lot has been done to improve the overall system and the goal of the strategic plan is to establish total control of the waterways in the country. Ana Ilić, representing the Serbian Government’s Office for European Integration, noted that greater emphasis should be placed on funding projects.

The second panel discussion included talk of the inclusion of Serbia in the trans-European transport and energy network research.

Aleksandar Kovacević from the Oxford Institute presented a research and analytical overview: - There is a big difference between Western Europe and the countries of the Danube region. Unfortunately, we have a disturbed water regime, which exposes us to the danger of flooding due to barren land near river flows.

Mirjana Kranjac said that the provincial government does not have a single specialist who could deal with transport by water, adding that it was only at the request of the Chinese Embassy that a map was compiled to include all centres and ports along the Danube.

The final panel discussion brought together guests from the region with which the provincial government has collaborated in recent years, implementing many important projects through the IPA programme, noted Branislav Bugarski, Provincial Secretary for Interregional Cooperation and Local Government.

- We came to the conclusion that the Begej Canal will be the most interesting project and that it will have a budget of €13.8 million, said Romanian representative Adrian Luput.

Representatives of the Hungarian Danube area, Bela Kakas and Sandor Rausch, agreed that the Danube connects us and that we will sail the Baja-Bezdan Canal for a long time to come!

Zrinka Čobanković, on behalf of Vukovar-Srem County, said that there is great potential in cross-border cooperation.

One call: 0 800 30 93 000

www.cityexpress.rs

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WHERE ARE WOMEN IN SERBIAN SOCIET Y I N 2 0 1 6?

EQUALITY IS STILL AN OBJECTIVE TO BE REACHED

This April’s Pro Femina 2016 conference in Belgrade saw famous journalist and TV presenter Olja Bećković moderate a panel discussion in which eminent women discussed what is really important for women in Serbia today ALEKSANDRA JERKOV

Spokesperson of Democratic Party

The whole dependence of women is basically formed upon their economic dependence on men. That is the basic reason why they don't care about their health, why they stop their schooling, slow down their careers and stay in violent relationships. The greatest thing we can do for women is to make them financially independent. The women I met during my campaign, when they lose their jobs, have very little opportunity to start their own jobs, to launch their own businesses. More than 80 per cent of jointly-owned property in Serbia is registered as the husband’s property. A wife cannot get any loan, because she has no property to guarantee. We in Vojvodina started the action to give women non-refundable loans to start their own businesses, but basically what is most important is to create a safe environment for women, so that they should not fear for their safety and existence. We have to make and build institutions that enable that. There is a story that illustrates the inequality. In our traditional literature there is a story “Silent language”, in which a man gains the ability to understand the language of animals. A mare tells him that his wife is pregnant,

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and he enters the house smiling. His wife keeps asking him why he is smiling, but he refuses to answer. However, in his yard the rooster tells him to beat his wife so she won't ask him stupid questions anymore, and the husband does it.

The moral is that she never asked him again about his smiles. It is folklore and tradition, but the problem of the treatment of this story is terrible. The correct answer to the question of why she deserved to be beaten although she is pregnant is because she was curious. It is terrible. It lasted for 10 years and nobody noticed. It has now been removed, but the problem is that nobody really took care of that!

THE WHOLE DEPENDENCE OF WOMEN IS BASICALLY FORMED UPON THEIR ECONOMIC DEPENDENCE ON MEN It is fascinating that women can negotiate to settlement some crucial things even if they are from entirely different parties. Sanda and I see eye to eye. We, women, have this capability to overcome differences of such type. And sometimes we note that we could not imagine men reaching accord over any question. Men usually choose women as assistants, and that means something. But there are very few presidents of parties, with Sanda being a notable exception, but there is much discrimination against unmarried couples, unmarried women. For instance, when it comes to artificial

insemination and in vitro pregnancy, the first in line were married women, then those who lived with partners, but with enormous hardships, and finally it was decided that women with no partner could not be inseminated at all. It was ridiculous in the 21st century, so we proposed an amendment to that. Now a woman with no partner can undergo the procedure with the special permission of the minister. And it turned out that to work too when it comes to single women adopting. They usually get kids of Roma origin, or sick kids refused by everyone.

There was just a terrible fear of lesbian couples being artificially inseminated.

Any scientist should be able to live in Serbia before they get the opportunity to practice science. Many people leave this country because they cannot live here at all. And we have to prevent family violence by removing violent people from the home, and not the victim. And our judges always take everything as extenuating circumstances. If someone was drunk, it was extenuating. That is horrible. And the situation with Filip Kapisoda and Ksenija Pajčin is terrible: they were depicted as the Romeo and Juliet of our times, but he was violent all the time, threatening, slamming doors. The policemen let him go before he committed the crime.

And it is not romantic; this man threatened her, then finally killed her and killed himself.

The picture of this crime is completely wrong.

Unfortunately, if you see many women in any board and discussion, it means that it is an irrelevant issue, so the men allow the women to own these discussions.

ZORICA MRŠEVIĆ

Human rights activist (visiting professor at the Faculty for Political Sciences Women’s Department)

The basic principle is to react to force with force. It is not a new concept; it is written in Roman Law. And, as we learned in the schoolyards, if we don't defend ourselves the first time, the aggressor will repeat their

SANDA RAŠKOVIĆ IVIĆ

President of Democratic Party of Serbia

My opinion is that health is most important, after which comes school, because without health there is no benefit of school. Health education should start from the very beginning. Women are generally very negligent when it comes to

I PROPOSE THAT MARITAL AND EXTRAMARITAL UNIONS BE MADE EQUAL IN THE EYE OF THE LAW IN EVERY ASPECT. FORM IS LESS IMPORTANT THAN THE ESSENCE their health, since they sacrifice to everyone else, usually. Firstly, women take their children to the doctors, then their mothers and so on, while they keep themselves until the end. When they finally visit their doctors, the third stage of cancer has nor-

agression over and over again. We will be a punching bag, not only in the physical sense. And we have the terror of the question “which boy do you like?” that all girls suffer. First of all, maybe we should ask “do you like any boy or a girl?” And why should I like someone at all? Maybe I like reading books, or staring at clouds.

We need more freedom in everything.

We need to connect women with

mally developed and it is too late. The Japanese implemented a slightly repressive measure which is not bad at all. Every three years a woman must be screened and control all the markers in order to continue receiving her regular health insurance. That is not bad at all, since I am the first to be negligent. Of course, school is important, as an educated nation and educated children are crucial. Mums are crucial and they make their children, so I am in favour of flexible working hours for mums, crèches in companies and in the countryside, in villages etc. Financial support for mothers is crucial. We are supporting marriage, but for us marriage is not strictly codified in city hall – whether in church or informally, it is the same. I married for the first time in the town hall, and my daughter lives out of wedlock, but she is extremely happy in her marriage.

I call it that way, although it is informal.

I propose that marital and extramarital unions be made equal in the eyes of the law in every aspect. We need to develop scientifically, but we need to have our own scientists who work in our institutes. We need to have means to support those institutes. I suffered violence in my campaign, and if young people see that insulting a female politician is easy they will beat their girlfriends if they are irritated. That is just following an example, and young people just copy role models from the media, while journalists are extremely responsible. Women should have absolute freedom to express themselves, maybe with quotas if necessary.

science, because it makes women more empowered. The women have to be ministers, “ministries of force”, of the police, defence. After that, in five years we will have a female prime minister. And we don't need the Higgs' boson, we need the social sciences. We need to understand society and societal roles, and this is the only way that we can make progress in relationships between the sexes.

SLAVICA ĐUKIĆ DEJANOVIĆ

Director of the psychiatric hospital "Laza Lazarević"

Special care should be given to those children whose mothers and fathers have no income.

I have met many women who don’t work and are not complaining about their alimony, but rather the fact that they can’t find work and their ex-husbands are jobless too. That is a category of women that is absolutely invisible, but which requires our utmost attention. On the other hand, what is really important is the education of children in the pre-school period, as well as the education of future parents. Women, especially when it comes to their social obligations, are more ready for dialogue, tending to form good teams and simply hating unfinished business. Unfinished work bothers them. I guess if the prime minister were a woman they would appoint

WOMEN, ESPECIALLY WHEN IT COMES TO THEIR SOCIAL OBLIGATIONS, ARE MORE READY FOR DIALOGUE, TENDING TO FORM GOOD TEAMS AND SIMPLY HATING UNFINISHED BUSINESS many female ministers in their cabinet. I also support the equalising of marital and extramarital relationships, so the form should not overshadow the essence. The essential thing is science, but I think we talk too much about industry, while agriculture is the most important element in Serbia. We need to employ young scientists in this area.

The identification with violence should be stopped very early, in nursery school.

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B I LINGUALISM

Of Two Minds

The advantages of working in your own language are obvious. Those of working in a foreign one are subtle More and more of the world is working in English. Multinational companies (even those based in places such as Switzerland or Japan) are making it their corporate language. And international bodies like the European Union and the United Nations are doing an ever-greater share of business in the world’s new default language. At the office, it’s English’s world, and every other language is just living in it.

Is this to the English-speaker’s advantage?

Working in a foreign language is certainly hard.

It is easier to argue fluently or to make a point subtly when not trying to call up rarely used vocabulary or construct sentences correctly.

English-speakers can try to bulldoze opposing arguments through sheer verbiage, hold the floor to prevent anyone else from getting a word in or lighten the mood with a joke. All of these things are far harder in a foreign language.

Non-natives have not one hand, but perhaps a bit of their brains, tied behind their backs. A recent column by Michael Skapinker in the Financial Times says that it’s important for native English-speakers to learn the skills of talking with non-natives successfully.

But, as Mr Skapinker notes, there are advantages to being a non-native, too. These are subtler—but far from trivial. Non-native speakers may not be able to show off their brilliance easily. It can be an advantage to have your cleverness highly rated, and this is the luck of verbally fluent people around the world. But it is quite often the other way round: it can be a boon to be thought a little dimmer than you really are, giving the element of surprise in a negotiation.

And, as an American professor in France tells Johnson, coming from another culture—not just another language—allows people to notice stumbling blocks and habits of thinking shared by the rest of the natives, and guide a meeting past

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them. Such heterodox thinking can be wrapped in a bit of disingenuous cluelessness: “I’m not sure how things work here, but I was thinking…”

People working in a language not their own report other perks. Asking for a clarification can buy valuable time or be a useful distraction, says a Russian working at The Economist.

Speaking slowly allows a non-native to choose just the right word—something most people don’t do when they are excited and emotional.

There is a lot to be said for thinking faster than you can speak, rather than the other way round.

Most intriguingly, there may be a feedback loop from speech back into thought. Ingenious researchers have found that sometimes decision-making in a foreign language is actually better. Researchers at the University of Chi-

PITY THOSE STRUGGLING IN A SECOND LANGUAGE—BUT ALSO SPARE A THOUGHT FOR THOSE MANY MONOGLOTS WHO HAVE NO WAY OF KNOWING WHAT THEY ARE MISSING cago gave subjects a test with certain traps— easy-looking “right” answers that turned out to be wrong. Those taking it in a second language

were more likely to avoid the trap and choose the right answer. Fluid thinking, in other words, has its down-side, and deliberateness an advantage.

And one of the same researchers found that even in moral decision-making—such as whether it would be acceptable to kill someone with your own hands to save a larger number of lives—people thought in a more utilitarian, less emotional way when tested in a foreign language. An American working in Denmark says he insisted on having salary negotiations in Danish—asking for more in English was excruciating to him.

All this applies regardless of the first language. But in the modern world it is English monoglots in particular who work in their own language, joined by non-native polyglots working in English too. Those non-native speakers can always go away and speak their languages privately before rejoining the English conversation. Hopping from language to language is a constant reminder of how others might see things differently, notes a Dutch official at the European Commission. (One study found that bilingual children were better at guessing what was in other people’s heads, perhaps because they were constantly monitoring who in their world spoke what language.) It was said that Ginger Rogers had to do every step Fred Astaire did, but “backwards, and in high heels”. This, unsurprisingly, made her an outstanding dancer.

Indeed, those working in foreign languages are keen to talk about these advantages and disadvantages. Alas, monoglots will never have that chance. Pity those struggling in a second language—but also spare a thought for those many monoglots who have no way of knowing what they are missing.

From The Economist, published under licence.

The original article, in English, can be found on www.economist.com

ART

AN INSIDERS LOOK AT THE ART COLLECTION The U.S. ambassadorial residence of H.E. Kyle Randolph Scott has been turned into a kind of art gallery. Some of the most beautiful pictures of contemporary Serbian art from The Pavle Beljanski Memorial Collection in Novi Sad will be exhibited there until 14th July this year Dr JASNA JOVANOV

Director of the Collection

PETAR DOBROVIĆ

(1890-1942)

Eighteen gems of Serbian paintings currently adorn the walls of the home of H.E. U.S. ambassador in Belgrade Kyle Randolph Scott.

The selection comes from the Memorial Collection of Pavle Beljanski (1892-1965), a famous Serbian diplomat who collected artworks with a huge passion, and the works were chosen for this occasion by Jasna Jovanov, director of the Collection. She had a difficult task selecting 18 works to be “relocated” to the ambassador’s residence in Belgrade. Together with art historian Jasmina Jakšić Subić, she opted for pictures painted during the time when the residence was constructed, back in 1931. The selected artists were in their creative prime at that time and, according to Jasna Jovanov, these pictures perfectly merge a specific epoch and the environment in which they were exposed. This beautiful exhibition best embodies the notion of famous French painter Delacroix from the nineteenth century that: “It is a painting's first merit to be a feast for the eyes”.

Diplomacy&Commerce presents eigth paintings and seven artists from the exhibition: Kosta Miličević, Petar Dobrović, Milan Konjović, Kosta Hakman, Marko Čelebanović, Petar Lubarda, Sava Šumanović.

began his studies in Budapest, while in Paris he was introduced to the painting of Paul Cézanne. In 1923 he became a professor at the Belgrade Art School and lived in Novi Sad, writing art criticism and participating in the work of the artistic association Form. He was one of the founders of the Academy of Arts in Belgrade in 1937.

His painting is also linked to Dubrovnik and the Adriatic coast, where he painted a large number of pictures and landscapes, but also a greater number of portraits of important personalities from the artistic and intellectual circles of Zagreb and Belgrade.

KOSTA MILIČEVIĆ

(1877-1920)

painted his most important works during World War I, on the island of Corfu and in Macedonia. After recovering from illness, on this island, under the glow of the Mediterranean sun, Miličević began to paint in bright colours, depicting the regions around the village of Potamos and themes of coastlines, harbours and endless open seas.

Figure (1927) Figure was created during the period when he was resident in France. This figural portrait belongs to one of the most numerous thematic areas in this artist's oeuvre, depicting his wife. He considered Olga Dobrović his “own masterpiece”, because he shaped her development from her earliest youth. Portraits of Mrs Dobrović illustrate the self-fascination constructed in the theme, which is very frequent in the history of art and which is associated with the great works of the past that confirms the artist's place and legitimacy in that history.

Motif from Corfu (1916) Motif from Corfu is probably the oldest preserved work from this period. The perspective is characterised by the gradual gasification of the forms of distant objects. There is also repetition of the theme of a tree in the foreground, which is there to use its arabesque branched trunk to bring to life and organise the space. The atmosphere is also coloured by the tone of the personal mood of the painter.

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MILAN KONJOVIĆ

My Studio (1930) Pavle Beljanski bought this painting from Konjović in the same year that it was created, in Paris. This canvas, which belongs to the artist’s “blue phase” (1930-1933), retains some features of his previous “transition period” (1927-1929).

The painting My Studio, which shows an unmistakable sense of colour, is signed using French spelling, which was how Konjović signed his works from 1929 to 1940, when he switched to a Cyrillic signature.

(1898-1993)

was one of the most prolific painters from Serbia and Vojvodina. Residing in Budapest, Prague, Vienna, Dresden and other cities in northern Europe, he was introduced the art of cubism, as well as expressionistic tendencies. He lived in Paris from 1924, when his ascent can be traced. After 1932 he returned to Sombor. During all phases, blue, red, grey, Byzantine, colours and strong painterly gestures represent the basis of his expression. His themes were mostly interiors, portraits, still life compositions and coastal landscapes, but also areas of the Bačka plain...

KOSTA HAKMAN

(1899-1961)

studied in Prague and Krakow, before moving to Paris in 1926 and joining the Yugoslav artists’ colony, when he created his most famous paintings. He exhibited at the Exhibition of Yugoslav artists in Rome, as well as at the World Exhibition in Paris, where he received a gold medal, but it is his appearances at the Belgrade salons that really mark artistic life in the fourth decade of the twentieth century.

Still-life in a Landscape (1924) Through the theme of this painting the artist combined his two favourite genres - still life and landscape painting. He painted a lavishly prepared table with a slightly shifted perspective, thus his content represents the most important segment of the composition. With harmoniously arranged dishes he overcame the meaning of ordinary, everyday objects and turned them into powerful artist’s tools: the artist used the cutlery and utensils on the table to predetermine their role as substitutes for absent members of the household.

PETAR LUBARDA

(1907-1974)

was a painter whose poetics developed in the museums and galleries of Paris. He followed contemporary art in Paris and Saint-Tropez and socialised with Yugoslav painters in the Paris suburb of Malakoff, where he lived. He was a frequent guest at the house of Marko Čelebonović in Saint-Tropez. His introduction to Serbian medieval painting after World War II changed his poetics and through association Lubarda entered into Art Informel/ Tachisme, often painting large formats and repeating cycles of individual themes.

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MARKO ČELEBONOVIĆ (1902-1986)

is equally important for both Yugoslav and French art. He mainly spent the time between the two world wars in Saint-Tropez, in a house which was built according to his own designs, and that over time became the meeting place of many significant Yugoslav and world artists. There stayed Marino Tartaglia, Milivoj Uzelac, Sreten Stojanović, Milo Milunovic, Petar Lubarda et al.

Interior (1935) A festive atmosphere is common in Čelebonović’s paintings. The figure in the Interior resembles a sculpture due to its stillness, no more or less alive than the figure on the bureau. Mixing human figures in interiors and a gypsum bust gives a de Chirico-esque dimension. The painting was owned by Marko’s uncle, but was stolen from his apartment in Belgrade along with fifteen others during World War II. Although Beljanski did not reveal from whom he purchased the work, Čelebonović was glad that the painting ended up in his collection.

Blue Store Window (1930) The art of Paris in the 1920s and 30s was interlaced with the international spirit: Picasso, Soutine, Modigliani, Kisling, Foujita; artists from all over the world created the art of the “Paris school”. They were joined by young painters and sculptors from our region, among them Petar Lubarda, who in 1930 was spending his fourth year in the artistic capital.

He learned by watching. In Blue Store Window his tone becomes smoother, with the artist no longer painting colours over colours, but rather clearly painted surfaces with borderlines. He thereby achieves a specific emotional tension in expression that he would express more fully sometime later, when he returned to his homeland and used intense colour to paint the landscapes of Montenegro.

H.E. KYLE RANDOLPH SCOTT

Text:

IVANA PATAKOVIĆ

U.S. Ambassador

MESMERISING SNOW OF ŠID

SAVA ŠUMANOVIĆ

(1896-1942)

was educated at the School of Arts and Crafts in Zagreb and resided in Paris three times during the third decade of the twentieth century. The most significant period for the Pavle Beljanski collection is from 1927 onwards, when his painting became richer in terms of the palette of colours, with themes related to nature, the female figure and, in a special way, still life. The collection contains several of his most important paintings from this period Luncheon on the Grass, Apples and Grapes as well as the specific interpretation of the landscape of France in Autumn.

From his later period in Šid, Beljanski selected the works House in the Alley, Šid under Snow and Winter in Srem.

Apples and Grapes (1927) Šumanović returned to Paris in 1925, which was real inspiration for him. The following year, the French government purchased his Nude from the Autumn Salon, and in 1927 he created his masterpieces - Luncheon on the Grass, Drunken Ship and Apples and Grapes, which reveal the colourific splendour of his talent. Apples and Grapes shows elements of inspiration from Cézanne and Matisse.

As the most beautiful frame of an interior, the painting Apples and Grapes attracted the attention of a Dutch collector in 1932, who, at the Exhibition of Contemporary Yugoslav Art in Amsterdam, offered Beljanski in vain a huge amount of money for this picture that was sufficient to purchase a decent-sized estate in the then Yugoslavia.

U.S. Ambassador in Belgrade, H.E. Kyle Randolph Scott, does not hide his satisfaction with the fact that the residence has been decorated with selected paintings from The Pavle Beljanski Memorial Collection. And this exhibition of sorts provided an opportunity to talk with him in this unique artistic ambient This exhibition presents a selection of the works of important Serbian painters. Is this the beginning of artistic settings in your residence?

— That would be nice. The U.S. government usually provides artworks to exhibit in the residences of its ambassadors, under the auspices of its artistic programme. That takes a long time because it needs to be organised, to identify artworks and to send and transport them from the United States to Belgrade. I am very happy that these masterpieces were temporarily made available to us from The Pavle Beljanski Memorial Collection. And even when exhibits arrive from America there will always be a place for the presenting of Serbian art.

Is there any exhibition space or gallery in the United States where you would like to see these paintings?

— In the United States there are small and large galleries, but also old private house that could be used to present art of this kind. My favourite gallery in Washington is “The Phillips Collection”. It has an excellent exhibition space in which this kind of display would look very nice.

Which kind of art do you like best: classic, modern, abstract?

Šid under Snow (1935) is one of two winter landscape paintings made by Sava Šumanović, from the Pavle Beljanski collection. The paintings were made in the two years’ period (1933-1935). However, the similar emotion and quiet could be observed there, i.e. we can see completely non-visual categories, which could be only displayed by Šumanović by his depiction of landscape covered with snow. The painter conjured a havoc in his own soul by the path that disappears into the horizon, as well as by the absence of any human presence. The atmosphere of the image, showing the white balance and unusual shadows point out that it is the work of a great artist.

— I think there is space for every kind of art, but I would highlight the time of Impressionism and the Post-Impressionist era, because that’s when art reached its peak. And that’s why this exhibition is fantastic. Pavle Beljanski had a true eye for art, so his collection includes some of the most important works of the great Serbian authors of that time and that is beautiful art. It is indeed a great pleasure to live in this house and be surrounded by these beautiful paintings on the wall.

Do you go to cultural events in Serbia and what are your impressions?

— I am impressed by the vitality, and

the wide spectrum of culture and arts in Belgrade and throughout the whole of Serbia. The frequency of performance, affordability and the diversity of selections are commendable. We came to Serbia at a good juncture, during FEST and then the Dance Festival, and we also became familiar with the dynamic theatrical life. I look forward to the summer, because there will be new festivals in Serbia.

Which of these pictures attracted you the most at first sight?

— That's like asking a parent which child they love the most. All of the pictures are beautiful. However, I cannot hide the fact that I was immediately won over by Sava Šumanović’s painting “Šid under Snow”. It is really mesmerising. I also like Lubarda, but simply all the pictures are beautiful, so it’s hard to single out just one.

Who is your favourite American artist?

— As a lover of Impressionism, my favourites are Childe Hassam and John Singer Sargent. I generally like art that tells a story and invites you to think.

I would also mention illustrator and painter Norman Rockwell, who depicts basic life in America, with works that will make you laugh and which speak about ordinary, normal people. But I also like other forms of art. Photographer Ansel Adams creates divine black and white landscapes of America, while Steve McCurry, an exceptional photographer for National Geographic, creates great portraits. When it comes to sculpture, I would single out Fredric Remington, who deals with themes of the American West, which is also where I come from. There are also Louis Comfort Tiffany, a master of stained glass Dale Chihuly, who makes glass sculptures, and representatives of Modern Art like Mark Rothko, Jackson Pollock et al. There is a lot happening on the art scene in America.

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INTERVIEW

TAX INCENTIVES COULD FUEL SERBIA’S FILM INDUSTRY MARTIN KNAPP

German-Serbian Chamber of Commerce

The Government of Serbia recently adopted its Decree of Stimuli for the Film Industry, after several world-famous directors decided to shoot their films in Serbia, just as Ralph Fiennes did several years ago with his Coriolanus.

For this issue we spoke with Martin Knapp of the German-Serbian Chamber of Commerce about these tax incentives

The new tax incentives and new legislation returns 20 per cent of an investment to filmmakers.

Does that mean Serbia is now a better place for filmmaking?

— Back in the days of Yugoslavia, lots of films were shot here and there was plenty of cooperation.

Today there is close to none. Despite Serbia being very economical in terms of labour costs, it had no system of tax incentives and was not on the radar of international producers. That is why the government decided to introduce tax incentives. Unfortunately, it took a lot of time to write the necessary guidelines, but now that has been enacted and producers can submit projects. We lost some projects during that time of preparation and a number of

projects went to Germany and Belgium. Belgium may be quite expensive, but their tax incentives are equally attractive. You see, even an ‘expensive’ country can be interesting to filmmakers thanks to tax incentives.

How was the German Chamber involved in this business?

— For a long time film producers had been suggesting the introduction of incentives for international productions. Last year, there was a relevant inquiry from a German company and we spoke with the Minister of Culture, the Minister of Economic Affairs and the President of the Economic Chamber. They all understood that the Serbian economy could benefit a lot from such a system, which now has been introduced.

How exactly could the Serbian economy benefit?

— A typical European production has a budget of, let’s say, ten million euros. If five of this ten million was to be spent in Serbia, the government might contribute twenty per cent, i.e. one million.

Nevertheless, four million will still come from outside, thereby boosting employment in Serbia.

The amount will be spent on local staff, but also on accommodation, catering, equipment hire and locations, transport etc. By the way, the money from the state will be paid out at the very end, when all costs have been checked by an independent auditor.

What about infrastructure and hardware? Will producers be able to hire the equipment they need here in Serbia?

FIRST COME, FIRST SERVED! We asked Boban Jevtić from Film Center Serbia, about the new governmental incentives in the film industry and Serbia's chances in this business BOBAN JEVTIĆ

CEO, Film Center Serbia

Just as many American movies are shot in Canada, especially British Columbia and Vancouver, due to better prices, do you think the U.S. and European film industries could find an interest in shooting films here, following this Decree?

— There is no doubt that American and European productions would be interested in shooting films in Serbia, especially given that Serbia has highly qualified and competitive film crews able to handle any task, even from

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the most demanding production. Another important factor is that Serbia can offer a really great variety of locations - just to mention that Ralph Fiennes’ Coriolanus, which you mentioned was shot in Serbia, used the National Assembly of Serbia as a shooting location.

What is the logistical background to this Decree and how can ‘Film Center Serbia’ contribute and benefit?

— Film Center Serbia will take care of the

logistics and administer the procedure. Representatives of three ministries (Culture and Information, Finance, and Economy) make up the Board, which will consider applications. The Ministry of the Economy has already secured adequate budget funding and a call for applications will be opened any day now. In order to ensure objectivity and avoid any possible conflicts of interest, the board will be guided by the “first come, first served” principle.

MILICA BOŽANIĆ

Business Development Manager at the Serbia Film Commission

— A large part of the equipment for shooting can be hired here, but some things cannot and will have to be leased in Hungary. The rental business, however, will mushroom, and as soon as entrepreneurs here detect some activity in the film industry supply will appear.

And the studios?

— There were a lot of films shot in the former Yugoslavia. Even some German films, in particular westerns, and one of the Indians was always a Serbian actor. Tito was quite a film-lover. He even had his own private cinema in his home and one person was in charge of finding a film to be screened for him every night. He personally contributed to the film business.

Back then there was Avala Film.

Now there is Pink Studios, for instance, and they are quite good.

Some German experts saw the studios and were impressed.

— The quality of post-production certainly does not depend on the level of the economy of the country and it would be great if one day some filmmakers from, say, Germany or Sweden chose Serbia as their country of choice for postproduction works. If enough productions come to Serbia, some companies will purchase the necessary equipment and more and more young people will start working in this line of business.

Another element is that film tends to popularise shooting locations and boost the development of the local tourist industry for years to follow.

German director Wim Wenders popularised Berlin with his Sky over Berlin, while Lisbon Story promoted Lisbon after

ALTHOUGH SERBIA IS VERY ECONOMICAL IN TERMS OF LABOUR COSTS, IT HAD NO SYSTEM OF TAX INCENTIVES AND WAS NOT ON THE RADAR OF INTERNATIONAL PRODUCERS. THAT IS WHY THE GOVERNMENT DECIDED TO INTRODUCE TAX INCENTIVES How much can the film industry contribute to the country’s economy in a secondary sense?

Say, from taxes for shooting in Dubrovnik Old City alone the local citizens got a lot of money, not to mention how much the crew members would spend in Serbia off the film set.

— It is quite true. Now you have the opportunity to “reload Tito’s dream”, but that depends greatly on the budget. It is not the same if you have a big budget, low budget or no budget. Regular budgets in Europe and the U.S. are very different. In Europe, a big budget is 10 to 25 million euros, while that is where American films start with their lower budgets. They usually have just one source there, but in Europe you have mixed and multiple sources, two or three states, from television companies, private sources, crowdfunding etc. Hey all combine to make up the budget. But so far, due to a lack of supply in those fields, the budget cannot be spent to 100 per cent in Serbia. A great part of the budget goes on so-called post production, i.e. the editing of pictures and the soundtrack, adding special effects and music, correcting colours and many other activities.

SERBIA IS A GREAT FILMING LOCATION THAT THE WORLD WILL SEE

Could Serbia also become a destination for postproduction services for richer countries?

that, and that continued with Buena Vista Social Club in Cuba and Havana. Many sets and cities where famous films were shot became popular for many years after the films were launched. Do you think investing in the film industry with these moves and decrees can be a “move for eternity” and that generations of tourists will visit famous film sets in Serbia in the near future?

— Well, that depends on whether Belgrade and Serbia “play” themselves or portray other cities in the world. For example, it is difficult to shoot scenes from old Berlin in Berlin, as the city has changed a lot. Many filmmakers use Leipzig for that instead, since parts of that city look like pre-war Berlin, without many ads etc. On the other hand, all interior scenes could be shot in Belgrade, even if the exterior shots cannot be done here. That is where Serbia is competitive and where the tax incentives will be applied successfully. But, of course, if we have such scripts where Serbia can play Serbia or Belgrade can play Belgrade, the location will definitely become famous.

Is it possible that one day we will recognise familiar Serbian streets and towns in major Hollywood and European films? Well, Milica Božanić from Serbia Film Commission certainly hopes so!

Just as many American movies are shot in Canada, especially British Columbia and Vancouver, due to better prices, do you think the U.S. and European film industries could find an interest in shooting films here, following this Decree?

— The Serbia Film Commission, under the ‘Film in Serbia’ brand, has been promoting Serbia all over the world since 2009. There is significant interest not only among feature film producers, but also popular high budget TV series, high end commercials and the vibrant animation and visual effects market. Serbia has excellent infrastructure and is already recognised internationally for the quality of its crews, accessible locations and competitive prices. Serbia’s competitive advantages are uniquely diverse locations within a radius of 10 kilometres, brand new sound stages just 20 minutes away from downtown Belgrade, experienced English-speaking crews and great production value for money. The whole world is highly competitive in the audio-visual sector and that is why this Decree makes all the difference for Serbian companies that provide production services and bring international projects to the country. Serbia is competing with the whole world in this sector, not just the countries of the region.

What is the logistical background to this Decree and

how can ‘Film in Serbia’ contribute and benefit?

— This programme, initiated and implemented by the Ministry of the Economy, will support investment, job creation and business growth.

Film Center Serbia will administer applications. There is a five-member committee that will be approve applications, comprising representatives of the ministries of economy, finance and culture, as well as the Serbian Chamber of Commerce and Film Center Serbia.

As an independent business association, ‘Film in Serbia’ will continue to promote its members (production companies, studios, hotels etc.), Serbian locations and crews, and to support interested producers in finding adequate partners for their projects among SFC members. So, our contribution to the process is facilitating B2B collaboration and international marketing, but we will also continue with educational programmes for our members and crews, as well as developing a favourable business environment for film and TV production through cooperation with the public sector at all levels. We will also monitor the implementation of the incentive programme, track data and results and always advocate its continuation and improvement in accordance with global trends and the needs of the industry and our members.

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CORPORATE

Ski Season Survived Thanks to Artificial Snow

Judging by the weather in Belgrade, it’s as though there was no winter, but then up on the mountains skiers and snowboarders revelled in DEJAN LJEVNAIĆ

Acting General Director of Ski Resorts of Serbia

It is precisely due to artificial snow that the economy of an entire region survived. The Kopaonik Ski Centre worked continuously from 30th November, and full slopes ensured work for hoteliers, restaurant owners, ski schools and ski rental services, as well as local government and tourism organisations, says Dejan Ljevnaić, Acting General Director of Ski Resorts of Serbia.

It seems that the ski season succeeded thanks to artificial snow, given that there was no natural snow in February. How did the season survive?

— The ski season on Kopaonik ended after

precisely 138 days of constant operations. This season was marked by the lowest amounts of natural snowfall, but the Kopaonik Ski Centre worked continuously thanks to artificial snow systems. It is actually thanks to Ski Resorts of Serbia managing to maintain the quality of slopes that the entire tourism industry worked smoothly. The economy of an entire region survived thanks to the more than justified decision to invest in artificial snow systems.

The Ski Centre, which operated without interruption, ensured there was work for hoteliers, restaurateurs, ski schools and rental services, as well as local governments and tourism organisations, thereby saving many thousands of jobs on the mountain. Just this knowing that we are not entirely dependent on natural snow prompted many investors to decide to invest in Kopaonik, and thus develop the local tourism offer.

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their favourite sports for more than 138 days, thanks to artificial snow systems. This has helped to save thousands of jobs on the mountains How satisfied are you with this year's season? Was significant financial progress made compared to previous years?

— We are extremely satisfied that we outdid last year, which had been by far the best season ever. When I say this, I’m actually thinking of the large number of visitors, the number of skiers, which is growing from year to year, but also the excellent business results. For the five months of the ski season at the Kopaonik Ski Centre, a 15 per cent higher turnover was achieved compared to the previous season, which is the best operating result to date. The increasing popularity of local ski resorts, as well as perfectly prepared slopes even in con-

thousand ski passes were sold, with more than five million cable car rides realised.

What’s the revenue like for Ski Resorts of Serbia and are austerity measures respected?

— The operating income of the company has increased by about 25 per cent in the last three years. February 2016, with a turnover of 285 million dinars, exceeded the same month last year, which had been the best month ever. In December alone net income was recorded that was 68 per cent higher than net income for the same period last year. We estimate that net profits for 2015 will have totalled around 54 million dinars, which is more than nine times higher than the planned net profit. Such an operating result was achieved thanks to numerous positive results in the previous period, as well as reduced costs, increased austerity measures and a reduced number of permanent staff. This

KNOWING THAT WE ARE NOT ENTIRELY DEPENDENT ON NATURAL SNOW PROMPTED MANY INVESTORS TO DECIDE TO INVEST IN KOPAONIK, AND THUS DEVELOP THE LOCAL TOURISM OFFER ditions where there is no natural snow, contributed to the fact that this year’s ski season exceeded last year’s. February 2016 exceeded the same month of 2015 by as much as 10 per cent. During the month of March 2016 turnover of over 160 million dinars was achieved, which is 20 per cent more than in March 2015. During this ski season on Kopaonik more than 160

was primarily a question of efficient operations and reducing all costs, thus in the past five years total savings of about 270 million dinars have been achieved. In July 2012, on its own initiative, the company reduced earnings by an average of about 18 per cent. In the period from January to December 2015 the number of permanent employees was reduced by five.

HOW TO ACCESS INNOVATIVE MEDICIN ES I N S ER BI A

A PATH TO MODERN MEDICINES WITH THE PVA SYSTEM

State authorities should resolve the problem of the lack of availability of modern medicines as soon as possible, and one of the possibilities is the use of the “Pragmatic value assessment system – the PVA system”, which would contribute to the greater availability of medicines and transparency in decision-making with regard to adding new medicines to the reimbursement list The implementation of the “Pragmatic value assessment system – the PVA system” would solve the problem of the long-term reimbursement list blockade and provide better access to modern therapies to patients in Serbia, it was concluded at the conference “HOW CLOSE ARE WE TO HAVING UP-TO-DATE HEALTHCARE IN SERBIA?,” which was organised on 8th of April by Diplomacy & Commerce Magazine, in syndication with London’s The Economist with the aim of addressing the improvement of the availability of innovative medicines for patients in Serbia.

Serbia is among the countries with the most difficult situation in Europe, given that in the last five years virtually no new medications have entered the reimbursement list. The conference included the presentation of the results of a special case study on Serbia’s healthcare system and comparative analysis of the healthcare landscape in the Balkan region, conducted by the renowned international publication The Economist*.

The conference was opened by Ms Liselott Martynenko Agerlid, Counsellor, Deputy Head of Mission at the Embassy of Sweden in Serbia, who welcomed government officials, representatives of the diplomatic corps, international institutions, representatives of the medical profession and the pharmaceutical industry, academia and civil society, patients’ associations and many others present.

“The Ministry of Health is making every possible effort to provide the best possible

health protection for citizens, and innovative medicines that haven’t been introduced to the reimbursement list for a long time are particularly important," said Dr Zoran Mihailović, Assistant Minister of Health, in his opening statement.

Dávid Dankó from Corvinus University, an esteemed expert on reimbursement practice and the creator of the PVA system, presented the criteria and logic of the system. The PVA system is a straightforward, easily implementable HTA scoring system that covers all relevant aspects of the decision-mak-

A LOT OF MONEY IS SPENT WITHIN THE SERBIAN HEALTH SYSTEM, BUT THE OUTCOME OF TREATMENTS ARE NOT PROPORTIONATE TO SPENDING, WARNED MARTIN KOEHRING, SENIOR EDITOR AT THE ECONOMIST INTELLIGENCE UNIT ing process, that can be easily implemented in a short period of time, with no extra short-term resources and minimal regulative changes.

Professor John McDonough from Harvard University, a renowned expert on public health policy and practice who participated in the creation and adoption of ObamaCare, presented the results of an independent peer-review of the PVA system that was conducted by experts from

Harvard. “Our conclusions are that the system is efficient and good for a country like Serbia. Its introduction would increase the availability of medicines and transparency in decision-making, which is cost effective for the population of Serbia,” he said.

On behalf of the patients, the audience was addressed by Jelena Čugurović, representative of the “Initiative for innovative approach to improving access to new medicines in Serbia”, which urged the state authorities to solve the problem of the availability of modern medicines as soon as possible.

The presentations were followed by a panel discussion that was attended by professor McDonough, professor Dankó and his Corvinus University colleague – professor Márk Molnár, Health Economics expert, Martin Koehring from The Economist, as well as local experts from the Faculty of Pharmacy, Professor Nataša Bogavac Stanojević and Dr.Sc. Dragana Lakić. The panel concluded that it is necessary to have a transparent process for improving access to innovative therapies, while there was also a discussion of the possibilities of implementing the PVA system in the existing practice of adding medicines to the reimbursement list.

A survey conducted among participants of the conference showed that 74.1% of those present consider that an urgent systematic solution is needed, while as many as 90% believe that the PVA system is a credible and applicable solution in the present form, or with certain changes to criteria.

MORE EFFECTIVE TREATMENT Martin Koehring, Senior Editor at The Economist Intelligence Unit, a special department of the renowned publication The Economist, presented a special case study on Serbia's healthcare system and a comparative analysis of the healthcare landscape in 11 Balkan countries. “Serbia lacks a transparent and comprehensive system for assessing and financing health technologies. The high consumption per capita is noticeable in the health system, and the results are not proportional to spending,” said Koehring, adding that the complete results of the study will be published soon.

LISELOTT MARTYNENKO AGERLID, Counsellor,

Deputy Head of Mission at the Embassy of Sweden in Serbia

MARTIN KOEHRING

Senior Editor at the Economist Intelligence Unit

JOHN McDONOUGH

Harvard University, a renowned expert on public health policy and practice

www.diplomacyandcommerce.rs

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CALENDAR & NEWS For

MEGALOMANIACS 4

CONCERT PROGRAMME May 13, 2016 19:00 Grand Hall of the Kolarac Foundation

Conductor: Daniel Raiskin Soloist: Alexei Volodin, piano Program: Beethoven Marathon - Five Piano Concertos May’s concert of the series For Megalomaniacs is a real treat: five Ludwig van Beethoven’s piano concertos in the same evening! Almost three hours of music, with the same soloist and conductor. Take a deep breath!

May 2016

Wednesday, 4th at 18.00 Music Gallery

Cycle: Music Workshop Milica Milić, piano Programme: Beethoven, Liszt, Prokofiev, Bach Production: Music Centre Admission free

Saturday, 7th at 20.00 Concert Hall

Charity Concert RTS Symphony Orchestra Conductor: Bojan Sudjić Soloists: Katarina Aleksić, violin Ljubiša Jovanović, flute Slobodan Marković, piano Nikola Mijailović, trumpet Programme: Barber, Sibelius, Hristić Production: RTS Music Production

For

CONNOISSEURS 5

May 20, 2016 20:00 Grand Hall of the Kolarac Foundation

Symphony No. 6

The series For Connoisseurs will be concluded by experienced conductor Hans Graf, leading our orchestra in the performance of two significant works: Hummel’s complex and rarely played Grand concerto for bassoon and orchestra, this time performed by our principal bassoonist Nenad Janković, and Bruckner’s Symphony No. 6. Although this symphony was once considered the ugly duckling among the composer’s other works, on the listener it leaves an unambiguous impression of luscious and individual expression, with the most imaginative instrumentation he had hitherto conceived. The Symphony No. 6 is marked by masterfulness of the classical form, which, at the time it was created, managed to impress even the most critical connoisseur of all – the great symphonist Johannes Brahms, but also Gustav Mahler, who conducted the piece in its premiere in Graz, in 1899. This is more than enough reasons to get our connoisseurs interested.

Kolarac Podium of Chamber Music Robert Schumann Chamber Music Aneta Ilić, soprano Boris Brezovac, viola Aleksandar Latković, cello Igor Lazić, horn Jasna Tucović, piano Production: Music Centre Admission free

Tuesday, 10th at 20.00 Concert Hall

Author`s Concert - Miodrag Todorović Krnjevac RTS Folk Orchestra Production: RTS Music Production

May 27, 2016 20:00 Grand Hall of the Kolarac Foundation

Conductor: Gabriel Feltz Soloist: Francois Leleux, oboe Program: M. Ristić: Symphony No. 2, B. Martinů: Oboe Concerto, James Bond music The name of James Bond is a warranty of a genuine adventure. For the first time ever, the Belgrade Philharmonic Orchestra will play soundtrack music from the films about the secret agent 007, while the concert’s adventurous spirit will be complemented by Milan Ristić’s neoclassical Symphony No. 2, one of the best works of that genre in the history of Serbian music. Directed by Gabriel Feltz, we will also enjoy Bohuslav Martinu’s Oboe Concerto, featuring remarkable oboist Francois Leleux.

Diplomacy&Commerce

Concert of Music School Konjović Admission free

Sunday, 15th at 11.00 Concert Hall

Kolarac Podium of Chamber Music Piano duo Kseniya Dijačenko Antonio Morant Albelda Production: Music Centre Admission free

Sunday, 15th at 15.30 & 17.00 Music Gallery

Concert for Babies (until 3 years) Production: Artysh:Lab Ticket Price: 500

Sunday 22nd at 15.30 & 17.00 Music Gallery

Concert for Babies (until 3 years) Production: Artysh:Lab Ticket Price: 500

Concert Hall

Monday, 16th at 18.00 Music Gallery

Art Fantasy Public Show Recording Author: Marina Stefanović Production: Music Centre Admission Free

Monday, 16th at 20.00 Concert Hall

Wednesday, 11th at 20.00

Cycle: Music Workshop Sofia di Somma, violin Istra Pečvari, piano Production: Music Centre Admission free

Belgrade Philharmonic Conductor: Daniel Raiskin Alexei Volodin, piano Programme: Beethoven Marathon - Five Piano

Kolarac Podium of Chamber Music LIdija Pavlović, piano Marie Claudine Papadopoulos, violin Alexander We, cello Programme: Dvořák, Schubert, Shostakovich Production: Music Centre Admission free

Friday, 27th at 20.00

Music Gallery

Concert Hall

Concert Hall

Concert of Music School Kosta Manojlović Admission free

Cycle: Music Workshop Concert of the Interpretative Studio of Violin of Professor Dejan Mihailović Production: Music Centre Admission free

Friday, 13th at 19.00

Sunday, 22nd at 11.00

Concert Hall

Pop Group Garavi Sokak

Montenegro Symphony Orchestra Conductor: Grigori Krasko Goran Krivokapić, guitar Programme: Glinka, N. Perović, Villa Lobos Production: Embassy of Montenegro

Programme: J. N. Hummel, A. Bruckner Production: Belgrade Philharmonic 2630 – 744 BFO Ticket Office

Sunday, 22nd at 20.00

Wednesday, 11th at 18.00

Concert Hall

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Concert Hall

Concert Hall

Music Gallery

ADVENTURERS 5

Saturday, 14th at 11.00

Sunday, 8th at 11.00

Conductor: Hans Graff Soloist: Nenad Janković, bassoon Program: J. N. Hummel: Grand Concerto for Bassoon and Orchestra, A. Bruckner:

For

Concertos Production: Belgrade Philharmonic

Tuesday, 17th at 18.00 Guitar Duo Anonymous Production: Music Centre Admission free

Wednesday, 18th Music Gallery

Thursday, 19th at 20.00 Concert Hall

RTS Symphony Orchestra and Choir Production: RTS Music Production

Friday, 20th at 20.00 Concert Hall

Conductor: Hans Graff Soloist: Nenad Janković, bassoon

Conductor: Francois Leleux, oboe Program: M. Ristić, B. Martinů James Bond soundtrack Production: Belgrade Philharmonic 2630 – 744 BFO Ticket Office

Saturday, 28th at 11.00

Small School of Bonton

How to Listen to a Concert Host: Miloš Milovanović Programme: Disney Movies Soundtrack Production: Music Centre 100 Saturday, 28th at 20.00 Production: RTS Music Production

Sunday, 29th at 11th Concert Hall

Kolarac Podium of Chamber Music Memory to Professor Djula Tešenji Zemun Chamber Orchestra Conductor: Djordje Stanković Katarina Tešenji Kovačevski, violin Andrej Kurti, violin (SAD) Robert Bokor, violin (Swiss) Programme: Šepić, Radić, Williams, de Sarasate, Brahms Production: Music Centre Admission free

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