CorD Magazine No.12 by CorD Magazine

10 TRADITIONAL ADVANCE In Serbia there is space for the progress of companies, but it is necessary to discipline the economic policy, create an indispensable legal framework and involve young people who know how to achieve success in the new business surroundings…

interviews | opinions | news | comments | events No12 - January 2005

Director: Ana Novcic ana.novcic@cma.co.yu Editor in Chief: Dragan Bisenic d.bisenic@cma.co.yu

Olafur Ragnar Grimsson President of the Republic of Iceland

Deputy Editor: Mark Pullen m.pullen@cma.co.yu Art & PrePRESS Director: Branislav Ninkovic b.ninkovic@cma.co.yu Editorial: Milan Culibrk, Dragan Bisenic, Nina Nicovic, Nebojsa Kotlajic, Jelena Grujic, Maja Vukadinovic,Vesna Musulin, Zoran Milosavljevic, Slobodan Kostic, Dragan Novakovic, Jelica Putnikovic, Lela Sakovic Photo: Danka Ninkovic, Andy Dall, Stanislav Milojkovic FoNet, Tanjug and Beta Translators: Milos Milosavljevic, Dejan Zubac Office Manager: Sonja Rados sonja.rados@cma.co.yu Subscription: Ivana Petkovic i.petkovic@cma.co.yu Advertising Sales: Milos Maksimovic m.maksimovic@cma.co.yu Project Manager: Nikola Jurisic, n.jurisic@cma.co.yu Dragana Indjic, d.indjic@cma.co.yu Anica Divac, a.divac@cma.co.yu General Manager: Ivan Novcic i.novcic@cma.co.yu Printing: Politika AD CorD is published by CMA (Consulting & Marketing Agency), Kneginje Zorke 11a, 11000 Belgrade, Serbia & Montenegro. Phone: +(381 11) 30 87 335 +(381 11) 30 87 066 +(381 11) 444 72 70 Facsimile: +(381 11) 456 564 E-mail: office@cma.co.yu ISSN no.: 1451-7833 All rights reserved © CMA 2004/2005

26 EBRD "TRANSITION REPORT 2004" “The new value added tax - to be introduced from the start of the new year is a good move aimed at reducing smuggling levels and returning circulation to legal flows.“ - Miroljub Labus

56 DIFFICULT YEAR AHEAD The most likely solution for Kosovo is independence, which will be achieved with the condition that Kosovo becomes democratic and European in its internal structure.

Vladimir Gligorov Economist of the Viennese Institute of World Economy

74 SPANISH STORY In Spain a journalist is respected on the basis of his ability to provide exclusive news.

Vladimir Stankovic

www.cordmagazine.com

CorD | Januar 2005

PR Manager of the Euro Basketball League (ULEB)

contents

16 PROGRESS STUNTED There's a lot of criticism of the apparent unwillingness of Serbia & Montenegro to co-operate with The Hague Tribunal and I think this is damaging the international reputation of Serbia & Montenegro.

Terry Davis Secretary General of the Council of Europe

22 NO 'SRPSKA' MELTDOWN

Mladen Ivanic recently resigned BiH Foreign Minister

The Latest measures of Mr. Ashdown harm every progressive achievement made in recent months in cooperation between Belgrade and Zagreb, as well as positive steps from the side of president of Serbia Boris Tadic.

NEW LOOK BELGRADE I think Belgrade is the only major city in Europe that doesn't have its own gallery. We also plan to build a Belgrade Opera house within four yearsâ&#x20AC;Ś

Nenad Bogdanovic Belgrade Mayor

DIPLOMACY AT WORK

H.E. Anna-Maija Korpi Finnish ambassador to SCG

STAR REBORN All of a sudden I started looking at myself in the mirror as if I was more beautiful and that was when it dawned on me that something was wrong.

Sloboda Micalovic actress

Whenever the countries from the Balkans are joining the European Union, one of the real problems is the environment. It's really one of the most difficult because it touches the society so deeply, affecting everything

52 88

DOUBLE CELEBRATIONS

FASHION: DRAGANA OGNJENOVIC

Serbs who know what faith means still celebrate the Orthodox New Year as a liturgy, while others see it simply as a national holiday that forms a constituent part of the too-longendangered Serbian national identity.

A well known figure in the fashion world, Ms. Ognjenovic's designs have been presented at fashion shows in Italy, France, Hungary, Austria, Mexico, Cyprus, Romania, and Bulgaria.

CorD | Januar 2005

Comment

Unrepeatable year The past year will certainly remain the best memory for minor shareholders of mineral water company Knjaz Milos, which hit the headlines as a test case for the stock exchange match, with many manoeuvres from all the players, but not very clear game rules and not very strict and impartial participants - in this case the Commission for Securities.

ays go by slowly, and years pass quickly Serbian villagers have a habit of saying. And really, when we look back, 2004 has flown by, even if it did have some extremely long, uncertain days. What did it leave us, what will the year be remembered for, and what would we like to forget about it?

As the end of the Knjaz sale played out, minor shareholders who received shares during the old socialist system, were rubbing their hands in glee as they exchanged their share options for thousands of euros and became genuinely rich - according to local standards. The new major factory owner is also probably satisfied, while others (principally the state and its institutions) have failed that test and learnt some very bitter lessons: the most significant being that the game rules must not be ambiguous and everybody should respect them.

Settling accounts at the end of December, economists looked backwards with more optimism than they looked forwards. According to key figures, growth of the gross national product of eight per cent (expected) in 2004 was fantastic: it marks the biggest annual growth of the Serbian economy in the last 25 years. Why then such pessimism? Perhaps because that accomplishment could not even come close to being repeated in 2005. The reason it cannot be repeated is because last year, as well as in the previous three years, much less than necessary was done

If economic growth is lower in 2005, unemployment will, naturally, be higher. The country's debt will continue to spiral, controlling inflation will be harder than in 2004 and there will be more than enough temptations. Will politics help us to cope with them more easily?

The political balance of 2004 includes pluses and minuses. Serbia received a new coalitional Government and, finally, gained a President. Thus these two key institutions were placed on the track of stabilisation. But frequent elections seem like an indispensaIf economic growth is lower in 2005, unemployment ble practice for gaining the required conwill, naturally, be higher. The country's debt will contin- ditions for democracy: it has already been mentioned that new elections are ue to spiral, controlling inflation will be harder than in awaiting us in 2005. The State Union is 2004 and there will be more than enough temptations. still hunting its reason for, and sense of, existence; and the weighty rock that is in this country, which is locked in the period of transition: The Hague Tribunal will remain around the nation's neck a period that has had its beginning and will last until it has in the New Year. This "Sisyphus" issue was never far from been completed. The truth is that too much of the old eco- the front pages in 2004, with Belgrade repeatedly calling nomic system still exists, and not enough of the new sys- for the pendulum-like obelisk of the ICTY to swing both tem has been introduced. ways. The flammable language of Kosovo is also being transferred from the past to the New Year in the hope that Hardly any Serbian citizens will say that they lived bet- the socially explosive pogrom of March 2004 will not proter in 2004 than in the previous year, but some can be voke bigger explosions in 2005, when the "final status" found. Some might remember 2004 for the return of con- hits the agendaâ&#x20AC;Ś sumer credit, which looked like salvation for replacing old furniture or electrical goods and, in some cases, purchasAnd the New Year wish for 2005? For the year not to be ing cars. However, in 2005 they will face the sour reality worse than 2004, but also not better than 2006!â&#x20AC;˘ that the banks that issued those loans did not do so out of mercy, but rather with profit margins in mind. Still, a Milan Misic, Editor in chief of Belgrade daily Politika drowning man does not ask how much a life belt costs.

CorD | January 2005

Relations

TRADITIONAL ADVANCE Joining the European Union does not guarantee that a country will achieve economic growth and success. Membership can help, of course, but the fact that Serbia is not in the EU cannot be used as an excuse for failure. So said President of Iceland Olafur Ragnar Grimsson in his lecture entitled "Tradition Towards the Future - How to Succeed in the Global Economy", which he gave at Belgrade University in December.

Olafur Ragnar Grimsson, President of the Republic of Iceland Exclusively for CorD By Ivan Radak, Photo Stanislav Milojkovic

n addition to Switzerland and Norway, Iceland is not an EU member and, thus, does not participate in the European agricultural, foreign and defence policy programmes. However, the island nation has signed agreements with the EU, which allow Icelandic companies a free approach to all markets. Grimsson thinks that the global economy of the 21st century presents companies of small countries with the possibility of becoming world leaders in their specific fields. The positive sides of globalisation have brought such success to Iceland's companies. Examples of this trend are provided by companies from the telecommunications, informatics, prosthetics, financial and banking sectors; as well as pharmaceuticals and the aero industry, which are among the greatest in the world. Iceland's software was accepted by companies such as IBM, Intel, Motorola,

CorD | January 2005

Vodaphone and Ericsson. The Russian administration is also interested in software to connect the state institutions, police, fire brigades and emergency services in one network. Pharmaceutical company Aktavis has business all around the world and its exports to Germany are bigger than Iceland's entire fish exports to Germany. Aero company, Air Atlanta Icelandic, holds the number one position in the world in the field of special services and has more flights to USA than Oslo, Stockholm and Helsinki combined. Only thirty years ago they had only one plane - said Grimsson. Iceland's President pointed out the example of one of the world's largest companies producing artificial limbs, which started business with only two offices and soon became a world giant. The increasing number of diabetics will make the production of prosthetics very profitable. We export goods all over the world, but we have come to understand that we can also achieve similar success in other sectors. When we saw that Iceland's market was too small for compa-

Relations nies that have great potential we encouraged them to go out into Several decades ago it was unimaginable for Icelanders to the world. But without globalisation and the information revoluachieve success in anything apart from fishing and agriculture. It tion we would not have succeeded. In Serbia too there is space for was unimaginable to plant the business spirit into the fishermen the progress of companies, but it is necessary to discipline the and farmers, but their governments managed to do so thanks to economic policy, create an indispensable legal framework and the Icelanders' willingness to work all day along. That characterinvolve young people who know how to achieve success in the istic is positively valued by their business partners, who knew new business surroundings in that business. In the 21st century that at any time of the day they could get whatever they wanted economy, companies from small countries will rely on human from an Icelandic company. Creativity has always been greatly resources and that is the key to success. A small countryâ&#x20AC;&#x2122;s advanvalued in Iceland too. Grimsson thinks that there isn't a suffitage can be the small market they have, which can be a suitable ciently large financial resource to replace creativity and that withfield for training before competing in the global game with comout including the university in the economic development there panies from Germany, the USA, Japan, France, etc. Examples of is no creativity and no positive results either. Instead of competisuccesses according to this recipe are Ericsson and Nokia. The 21st tions for the best poet, among Icelanders there is currently a great century opens up economic potential to small countries, which competition for the title of the "poet of enterprising". did not exist before - thinks Grimsson. According to the Icelandic president, the dom- Different nations are trained differently to solve probination of the car industry, mining and other lems. Quick solutions to problems provide a big industrial branches is in decline, while new advantages are in telecommunications and infor- advantage these days. Because of the modest size of mation technologies. However, that does not Iceland's companies, management teams often meet mean that for the sake of success in business it is necessary to renounce the culture and tradition of people from different economic branches, which is the nations the companies hail from. Grimsson not the case in big multinational companiesâ&#x20AC;Ś thinks that traditional values can be transformed and can offer competitive advantages on the world market. Among the numerous traditional ideas that have brought sucRelying on those values brought strength and success to Iceland. cess to Iceland, Grimsson emphasised the comprehension of A strong position on the market enables uniqueness and does results and the way they should be achieved. The story about the not encourage attempts to be similar to the Germans or Icelander and the Swede who had a puncture during a trip Americans. If you compare the big American companies with through the desert is famous. The Icelander pulled up his shirt Icelandic ones, we can see that they are like a big boat that turns sleeves to replace the tyre, while the Swede decided to write a around very slowly. But we are a nation of fishermen with rowreport on the problem first. ing boats, which gives us the advantage on that sea - stated Different nations are trained differently to solve problems. Grimsson. Quick solutions to problems provide a big advantage these days. Due to its small population (approximately 300,000 citizens) Because of the modest size of Iceland's companies, management Iceland is free from the bulky administration that characterizes, and teams often meet people from different economic branches, hinders, the competition. Complicated bureaucracy decreases busiwhich is not the case in big multinational companies where there ness spirit and deals done through long bureaucratic procedures are are separate sectors for communication with certain partners. not the Icelanders' cup of tea. On this Atlantic island the advantage Apart from facilitating a greater insight into the economic sitis given to personal trust and reputations act as deposits. uation, the knowledge of a bigger number of activities brings

President Grimsson addresses participants at Belgrade University

CorD | January 2005

Relations greater flexibility during the penetration of foreign markets. Important decision-making is carried out on the spot, while representatives of big companies do not have such freedom and they have to go through the drawn-out process of contacting the headquarters, which then resolve the issues. All this speaks in favour of respecting culture and the customs of your nation, while being

success and tradition, emphasised Grimsson. The President of Iceland emphasised that, thanks to relying on traditional values, his country has, in a short time, transformed from one of the poorest countries to the fourth richest country in the world, according to GNP per capita. From the middle of the 1960s until the end of the 1980s inflation was around 50 percent, but in the period between 1988 and 1991, when Grimsson was In Serbia there is space for the progress of compa- Finance Minister of the Icelandic Government, inflanies, but it is necessary to discipline the economic tion was reduced to around two per cent. people come to my country they see policy, create an indispensable legal framework greatWhen success, a high standard of living, a GNP of and involve young people who know how to 8.5 billion dollars, a high level of technology, a mobile telephone system and a high perachieve success in the new business surroundingsâ&#x20AC;Ś developed centage of computer usage. Because of the hard very successful at the same time. If we have the desire to use the economic measures I implemented during my mandate as positive elements of our inheritance, and with their help create Finance Minister, I was the most unpopular politician in my competitive advantages, we can be successful in the global econcountry, but today I am the best example that the most unpopular politicians can become state presidents - joked Grimsson.â&#x20AC;˘ omy. That is not a conflict and we do not have to choose between

ICELAND AND SERBIA The first time we spoke with President of Iceland, Olafur Ragnar Grimsson, was during the annual celebration of the Nordic Council in Reykjavik. The Nordic Council is an association of the Scandinavian states, represented by deputies of the parliaments of the respective nations. Their goal is to promote co-operation among Northern European countries. By Dragan Bisenic

urprisingly, Iceland has a large Serbian population, which grew during the Yugoslav wars of the 1990s. President Grimsson said: "we are very proud that we have such a large group of Serbs among us. They are very well integrated in our society. They are a bridge between Serbia and Iceland and we will use that opportunity to strengthen our relations. "The first permanent settlers in Iceland were Norsemen from Scandinavia, arriving in the late 9th century, and Celts from the British Isles. The language of Iceland was Old Norse from the outset, but there are traces of Celtic influence in some of the Eddaic poems, in personal and place names; and even in the appearance of present-day Icelanders", explained the Icelandic President. Leskovac-based medicine company "Zdravlje" now belongs to an Icelandic company. During his stay in Belgrade, Mr. Grimsson talked about the Icelandic "way" because the most impressive fact is the unprecedented economic success of Iceland, from which Serbia could learn much. Iceland achieved an impressive economic record for most of the 1990s, with one of the highest consistent growth rates in the world, coupled with low inflation and unemployment rates. Iceland's Scandinavian-type economy is basically capitalistic, yet with an extensive welfare system (including generous housing subsidies), low unemployment and, remarkably, even distribution of income. In the absence of other natural resources (except for abundant geothermal power), the economy depends heavily

CorD | January 2005

Olafur Ragnar Grimsson on the fishing industry, which provides 70% of export earnings and employs 12% of the work force. The economy remains sensitive to declining fish stocks, as well as to fluctuations in world prices for its main exports: fish and fish products, aluminium and ferrosilicon. Government policies include reducing the budget and current account deficits, limiting foreign borrowing, containing inflation, revising agricultural and fishing policies, diversifying the economy and privatising state-owned industries. The government remains opposed to EU membership, primarily because of Icelanders' concerns about losing control over their fishing resources. Iceland's economy has been diversifying into manufac-

Relations turing and service industries in the last decade, and new developments in software production, biotechnology, and financial services are taking place. The tourism sector is also expanding, with recent trends boosting ecotourism and whale watching. Growth was remarkably consistent between 1996 and 2001, at 3%-5%, but could not be sustained in 2002 in an environment of global recession. Growth resumed in 2003 and inflation dropped back from 5% to 2%. Among the factors contributing to economic growth have been successful resource management in the mainstay fisheries sector, price stability, diversification of industry, privatisation, liberalisation and deregulation; development of the Iceland Stock Exchange, growth in foreign investments and business-friendly

election the President gives one of the parliamentary leaders of the political parties the authority to form a cabinet, usually beginning with the leader of the largest party. If he is unsuccessful, the President will ask another political party leader to form a government. "This place is a natural border between the European and American landmasses. The 'gap' is visible even during very snowing winters. The spot where two continents are divided has a very symbolic meaning for modern history. Soviet President Gorbachev and American President Reagan decided to meet and end the Cold War in Iceland. "Iceland doesn't have an Army. Instead, Iceland played a very strategic role during the Cold War by way of the tactically important NATO air and monitoring base at Keflavik.” Icelandic, the national language, has changed Power-intensive industrial production, mainly little from the original tongue spoken by the focusing on metals, has led the foreign investment very Norse settlers. Icelandic has two letters of its own, field to date, but a growing number of investors Þ/þ and Ð/ð, which were used in old English. "Þ" is are taking stakes in dynamic hi-tech enterprises or pronounced "th", as in "thing", and "Ð" is proas the "th" in "them". A large percentage making strategic purchases in production and ser- nounced of English words derive from Icelandic. English and vices related to their own international activities. Danish are widely spoken. All branches of the arts have flourished during the past century in Iceland. tax reforms. The living standard is among the highest in the In the last few decades, the Icelandic film industry has had great world, with per capita income of US$ 30,575. successes. Literature has a tradition going back to the middle Marine products constitute more than 60% of Iceland's ages. Novelist Halldór Laxness won the Nobel prize for literature exports, according to statistics from the year 2000. The continenin 1955. Painting started in earnest about 100 years ago and many tal shelf around Iceland, where the warm Gulf Stream and cold Icelandic works are exhibited in galleries around the world. The currents from the Arctic meet, offers very favourable conditions National Theatre, the National Symphony Orchestra, the Icelandic for various kinds of marine life, and are extremely rich fishing Dance Company and the Opera House all contribute to a rich culgrounds. The fishing grounds, which are Iceland's main natural tural life. In popular music, singer Björk has achieved great interresource, require strict conservation and fish catches are tightly national success. controlled. The main species of fish are cod, haddock, red mulIceland has a range of traditional foods, called "thorramatur", let, herring and capelin. which are enjoyed especially in the period from January to March. Iceland has a very favourable business climate for foreign These preserved foods include smoked and salted lamb, singed investors. Some firms have located new plants in Iceland, others sheep heads, dried fish, smoked and pickled salmon, cured shark have bought into established ventures. Power-intensive industriand various other delicacies. Breads include laufabrauđ (deepal production, mainly focusing on metals, has led the foreign fried, wafer-thin bread), kleinur (similar to doughnuts) and rye investment field to date, but a growing number of investors are pancakes. Icelandic crepes are popular year around.• taking stakes in dynamic hi-tech enterprises or making strategic purchases in production and services related to their own international activities. They have found an investor-friendly environment with high professional standards in all the support services that a business launch needs to rely on. Iceland is richer in hot springs and high-temperature activity than any other country in the world. In 1998 the exploited capacity of geothermal power had reached the equivalent of 15,500 Gwhpa, bringing 85% of the population geothermal heating for their homes. Electrical production from geothermal sources amounted to 1,323 Gwh in 2000. It is estimated that the potential total exploitable hydro-electric power in Iceland amounts to 64,000 Gwhpa, of which 45,000 is considered to be economically viable. However, only 6,352 was being generated in 2000. Per capita energy consumption in Iceland is second only to Norway worldwide. Iceland is the most sparsely populated country in Europe, with an average of about three inhabitants per square kilometre. Almost four-fifths of the country is uninhabited, the population being limited to a narrow coastal belt, valleys and the lowland plains in the South and Southwest. President Grimsson explained: "For us, it is very important to maintain continuity of our democracy. It is very young, but at the same time very old. Established in 930ad, Althingi is the oldest functioning parliament in the world, with 63 members elected by popular vote for a term of four years. With the exception of the President and the judges of the Supreme Court, anyone who is eligible to vote can stand for a parliamentary seat. There is uniDemocratic continuity important versal suffrage for all citizens of 18 years or older. After every

CorD | January 2005

Interview

PROGRESS STUNTED The Council of Europe recently published its sixth report on the state union, entitled "Serbia & Montenegro: Compliance with obligations and commitments and implementation of the postaccession co-operation programme." The critical report addresses, among other things, the issue of direct elections of the State Union Parliament, democracy and institution-building, cooperation with the ICTY, the rule of law, human rights and education.

Terry Davis, Secretary General of the Council of Europe Exclusively for CorD By Dragan Bisenic

his month CorD speaks exclusively to Council of Europe Secretary General Terry Davis about reactions to the report and the overall situation in Serbia & Montenegro.

Taking into account this latest report, it seems that progress over the recent period was not as great, or as fast, as expected. What is your view on that? Well, it is certainly correct that the Serbian and Montenegrin authorities did not work as well as was expectedâ&#x20AC;Ś.However, in the new year I should expect to see this situation improved upon, with efforts made to catch up.

CorD | January 2005

How do you merit the achievements made in democracy and institution-building in Serbia & Montenegro, taking into account that the state union is in a very specific state at this moment in Europe and is bound to stage elections at a federal level in February? Well, Serbia & Montenegro is a very important member of the Council of Europe. We do expect all our members to make sure that all elections are free and fair and that every party has a fair chance to put their point of view to the electorate. I can't anticipate the merits of those elections until they take place. The new constitutional charter requires that federal elections be held two years after adoption of the constitutional charter, which is now in February. However, Montenegro has

Interview opposed this requirement, while the European Union and Javier Solana are arguing strongly in favour of these elections. There is an existing commitment for these elections to be held. Naturally, everyone in the international community expects the elections to be held, both in Serbia and in Montenegro. Another point that was very important in this report is cooperation with The Hague Tribunal. How do you see that issue progressing? There's a lot of criticism of the apparent unwillingness of Serbia & Montenegro to co-operate with The Hague Tribunal and I think this is damaging the international reputation of Serbia & Montenegro. I would urge all the authorities in SCG to not only co-operate with The Hague Tribunal, but to be seen to be co-operating with the Tribunal. In the same light, how would you comment on the situation in Bosnia & Herzegovina, considering that there is also some turbulence regarding co-operation with The Hague Tribunal? There is indeed a lot of criticism about Bosnia & Herzegovina as well, but of course this is no defence, or argument, for Serbia & Montenegro to fail to co-operate. Everybody should co-operate with the international tribunal in The Hague. Would it be fair to say that everything is not quite as dark as it seems? There has been a significant improvement in relations between Serbia and Croatia: the Croatian Prime Minister made a very positive visit to Belgrade and senior Serbian and SCG officials reciprocated with a visit to Croatia. How do you feel the improvement of bi-lateral relations between Serbia and Croatia can help stabilise South-Eastern Europe? I think an improvement in relations between Croatia and Serbia & Montenegro is very important. I think everyone, especially myself, is pleased to see that there has been a marked

Importance of Federal elections At the level of the State Union, the recent period was marked by a stalemate. The State Union Court has now been established, but it still has no functional premises in Podgorica and there is little evidence of its activities. Furthermore, there is still a lack of clarity around the competences of this Court and this is certainly linked to the debate over the future of the State Union. The most debated issue is the question of the direct election of the State Union Parliament. According to the Constitutional Charter, the State Union Parliament should be directly elected 2 years after the adoption of the Charter, i.e. by February 2005. The Republic of Serbia has adopted the necessary legislative provisions for the organisation of these elections, in spite of a lack of enthusiasm at the idea to have another round of elections. The problem resides with the Republic of Montenegro where there is reluctance by the authorities to organise elections to a Parliament which could possibly disappear a few months later in case of a successful referendum on independence which could be organised at the end of the 3-year period in March 2006. Clearly, the incapacity to organise direct elections to the State Union Parliament would constitute a breach of the Constitutional Charter and would further weaken the State Union institutions.

Kosovo a part of Serbia improvement in recent months; the more contact that takes place, the better. In your view, does South-East Europe have a clear European perspective? Or rather, is the EU completely decided that all countries of South-East Europe will achieve membership of the European Union? I cannot really comment on the European Union. The Council of Europe and the European Union are two different organisa-

I'm very disappointed that the authorities in the Serbian Orthodox Church will not allow us to repair their churches in Kosovo. We have the money. We have the will. But they refuse to let us help them. tions. Serbia & Montenegro is already a full member of the Council of Europe. I understand, of course, that many people in Serbia & Montenegro want their country to join the European Union, but that is a matter for Serbia & Montenegro and the European Union. It is not a matter on which the Council of Europe can comment. Addressing the issue of democracy in this region more broadly, the situation of national minorities is a very important factor of democracy. The very issue of inter-ethnic relations was the biggest problem of this region in the last decade. How do you see the current position of Kosovo in that regard? Kosovo is a very important factor in the Balkans. However, we regard Kosovo as part of Serbia & Montenegro that is, of course, CorD | January 2005

Interview being run by the United Nations Mission in Kosovo at present. Inter-ethnic relations in Kosovo are poor, compared to what we would like to see. The events in March were a terrible happening to take place. Everybody internationally is very concerned about what happened in March because it showed how bad relations are between Serbs and Albanians in Kosovo. So, it was a great disappointment to the international community. It greatly damaged Kosovo's reputation and people internationally were very upset about what happenedâ&#x20AC;Ś The Council of Europe was involved in the reconstructions of Orthodox churches in Kosovo, but officials of the Serbian Orthodox Church decided to withdraw from the restoration commission. Why do you think they did this?

The position of the Council of Europe is that we do not encourage any separatist movements in any of our member states. That applies to Cyprus, Moldova, Georgia, Azerbaijan and Russia. The same principle must apply to Serbia & Montenegro. I'm very disappointed that the authorities in the Serbian Orthodox Church will not allow us to repair their churches in Kosovo. We have the money. We have the will. But they refuse to let us help them. I think you'll have to ask them as to the reasons why they pulled out, but when I talked with Bishop Artemije I asked him why he had withdrawn his signature because he'd agreed in June, then cancelled his agreement in September; and I must tell you that all conditions applied before he signed the agreement in June. Frankly, it's very difficult to understand how he can justify cancelling an agreement, which he had previously made. But the result of that cancellation is, very unfortunately and tragically for the heritage of the Serbian people, that the repair work cannot be undertaken. A lot of experts are beginning to talk about the final status of Kosovo. Do you have any opinion about that? I think that is a matter that the international community will certainly be discussing in 2005. I'm not going to make any comment at present. We in the Council of Europe recognise the existing borders of Serbia & Montenegro because these are the borders recognised internationally, and they are the borders on the basis of which Serbia & Montenegro was admitted to the Council of Europe.

Progress lacking in Serbia results of that election will be accepted by whichever candidate loses the election. The Council of Europe will not support one or other of the candidates. It is for the people of the Ukraine to decide who should be their president. The Council of Europe will work with whoever's elected to be president by the Ukrainian people. I've been a candidate myself in many elections. Sometimes I've won and sometimes I've lost. When I lost elections I always consoled myself by reminding myself that there's always another election coming. So I would encourage whichever candidate

No progress in Serbia I saw in the Kosovo-Albanian press a report of your discussion with a group of Kosovo-Albanians in Strasbourg, in which you are quoted as saying that same thing - that Kosovo is a part of Serbia. How did they react to your statements? You'll have to ask them. I understand that some of them were very unhappy, but I stand by what I said. The position of the Council of Europe is that we do not encourage any separatist movements in any of our member states. That applies to Cyprus, Moldova, Georgia, Azerbaijan and Russia. The same principle must apply to Serbia & Montenegro. Moving away from South-East Europe, the Ukraine is at a very important crossroads and a lot of international observers are to be in place for the upcoming election re-run. Do you think these elections could bring stabilisation to this large country that's very important to Europe, or do you think it could lead to division and further conflict? I expect much to be seen from the re-run of the second round of the election. We'll see a president elected and the

CorD | January 2005

In Serbia, no real progress has been achieved in the drafting of a new Constitution. The work in the Parliament is still not finalised and the Secretariat delegation was informed that the President had set-up, on his side, a group of experts which was preparing an alternative draft Constitution. Three main issues dominate the constitutional debate in Serbia: the definition of the statehood of the Republic of Serbia, the question of the autonomous status of Vojvodina and the mode of election of the President (direct election or indirect election by the Parliament). The issue of Kosovo and the absence of any majority in Parliament to adopt a draft Constitution appear to be additional factors which influence the constitutional debate. In the meantime, the Constitution adopted during the Milosevic regime remains in force.

loses this election to accept the decision of the people of the Ukraine and work hard for the next election. One the recommendations of a recent legal committee report, submitted to the Council of Europe by Mr. Tony Lloyd, was to establish some kind of European Court for Human

There's a lot of criticism of the apparent unwillingness of Serbia & Montenegro to co-operate with The Hague Tribunal and I think this is damaging the international reputation of Serbia & Montenegro. Rights in Kosovo. What do you think of that initiative? That is Mr. Lloyd's personal initiative and I think it will be discussed at the meeting of the parliamentary assembly, which is to happen in January. I can't really comment on this issue before then, but clearly there are human rights issues in Kosovo, affecting the human rights of both Albanians and Serbs.

No support for separatist movements

Finally, do you have any specific message to give to the people of Serbia & Montenegro? My specific message to the people of Serbia & Montenegro at this time of year would be 'Happy Christmas'.â&#x20AC;˘

COUNCIL OF EUROPE

MAIN CONCLUSIONS AND RECOMMENDATIONS 1. Although some progress has so far been achieved in a number of fields, strong expectations remain on Serbia and Montenegro to fulfil a number of its commitments by the end of the second year of membership: 2.In this context, and by the deadline of 3 April 2005, political and legislative measures: - to comply with the Constitutional Charter as concerns the holding of direct elections to the State Union Parliament two years after the adoption of the Constitutional Charter, i.e. by February 2005; - to show concrete evidence of improved co-operation with the ICTY, especially with respect to the arrest and transfer of the ICTY indicted fugitives and to continue improving access to documents requested by the Prosecutor; - to promote activities related to reconciliation with the past, notably through public awarenessraising and information campaigns; - to ensure effective implementation of the Law on the transfer of competence of the military justice to the civilian judicial authorities of member states by transferring the cases by 31 December 2004; - to further develop civilian control of armed forces, in the context of the newly adopted National Defence Strategy; - to overcome administrative and financial problems and effectively establish the State Union Court in Podgorica; - to urgently establish a Government Agent Office before the European Court of Human Rights; At the level of member states of the State Union Republic of Serbia: Democracy and institution-building: - to draft and adopt a new Serbian Constitution harmonised with the Constitutional Charter and in compliance with Council of Europe standards (in co-operation with the Venice Commission); - to ensure adequate implementation of the Law on Local Self-Government and the Law on Local Elections; - to show concrete evidence of improved co-operation with the ICTY - to enact legislation on the transfer of competence of the military justice to

CorD | January 2005

the civilian judicial authorities with Council of Europe assistance and to effectively transfer cases from military courts to civilian courts; - to undertake in-depth reforms to secure the impartiality of the judiciary and prosecuting bodies in compliance with Council of Europe standards; - to enact relevant legislation as regards the reform of police and security forces in compliance with Council of Europe standards; - to undertake proper police investigation, training of police and law enforcement forces, in particular as regards ethnically motivated events in Vojvodina; - to enact adequate legislation to protect witnesses; - to undertake adequate measures to fight against corruption and organised crime and ensure that they take into account Council of Europe recommendations; - to ensure the adequate protection of national minorities' rights and to seek to avoid the occurrence of ethnically-motivated incidents by undertaking proper legal and educational measures; - to ensure that an effective Broadcasting Council is finally set up and to ensure that it fulfils its regulatory role, in particular with respect to the allocation of broadcasting licences; - to ensure that the new Criminal Code does not contain provisions broadly restricting freedom of expression and freedom of the media, in particular as regards libel; - to ensure the adequate application of the Law on Free Access to Public Information and the appointment of the regulatory bodies required; - to adopt legislation on and subsequently establish the institution of Ombudsman in compliance with international standards; - to complete the compatibility study between domestic legislation and the Revised European Social Charter in time before 3 April 2005; - to enact legislation on the status of NGOs, which had to be done by April 2004, and encourage public participation of NGOs inter alia in drafting legislation; Education: - undertake necessary legislative reforms in close co-operation with the Council of Europe, including the curriculum for civic education and history teaching;

Interview

NO 'SRPSKA'

MELTDOWN Mladen Ivanic, recently resigned BiH Foreign Minister Exclusively for CorD By Dragan Bisenic, Photo Stanislav Milojkovic

Mladen Ivanic is not the biggest fan of Bosnia & Herzegovina "Governor" Paddy Ashdown. In fact, Ivanic was so outraged by the latest moves of the British politician that he felt compelled to tender his resignation as Bosnia & Herzegovina foreign minister. According to Ivanic, the way Paddy Ashdown treats Repubika Srpska, and its very existence, is directly in breach of the Dayton Agreement. Moreover, Ivanic insists, Ashdown's claim that Republika Srpska didn't deliver any indicted war crimes suspects is not true. "My resignation is a battle for democracy and for politicians here to be treated as normal people, not prisoners who have to be punished by guards", says Ivanic.

his month CorD speaks exclusively to the Bosnian politician about relations within the BiH Federation, the ongoing issue of The Hague Tribunal and, of course, Paddy Ashdown's role as High Representative of the former Yugoslav republic. "Co-operation with The Hague Tribunal is the last major obstacle facing Republika Srpska. Considering Carla del Ponte's latest report delivered to the UN Security Council, through which she assessed that co-operation was insufficient, it was realistic to expect conditions clearing the way for Bosnia & Herzegovina's membership of NATO's Partnership for Peace (PfP) would not be metâ&#x20AC;Ś BiH is facing strong demands for better co-operation and that pressure is mostly being directed towards the institutions of Republika Srpska. However, I believe this co-operation will be improved in the coming months and certain changes will take place. That is because 2004 saw the establishment of a state-level police force that has a specialised squad tasked with arresting those indicted on suspicion of committing war crimes. Thus, this issue is no longer the sole right and responsibility of Republika Srpska, but rather the responsibility of all state institutions. "I think it will prove very difficult for state institutions to say that they are not interested in arrests and, as such, the number of channels through which BiH is supposed to co-operate with The Hague Tribunal will increase."

Mladen Ivanic

CorD | January 2005

Republika Srpska recently ratified the report on Srebrenica war crimes. How was that report received, and what are its basic conclusions? That was an important event because the Government's Commission showed that those crimes really were committed there. The murders and disappearances of several thousand was noted, thus there is no doubt that there were crimes. For the Republika Srpska Government, and for the Serb nation in BiH, that was an important moment when they expressed the maturity and readiness to face the truth about what happened. Such a commission should be established in other areas of BiH too. We are now expecting the establishment of a commission that will investigate the suffering of Serbs, Bosnjaks, Croats and Jews in Sarajevo. If this commission has the same kind of success as the Commission for Srebrenica did, that would establish the suppositions required to approach the investigation and observation of the number of dead with much more objectivity by gathering genuine facts about what really happened here.

Interview Where is Radovan Karadzic? There were several attempts to arrest him and then the Main Prosecutor said NATO does not have the will to arrest Karadzic. I do not have any specific knowledge of that, nor was any such information made available to any politicians. Therefore, I could hardly have any special knowledge regarding that matter. Co-operation between international and domestic institutions is very poor because of mutual distrust. If anybody at all knows anything regarding that matter he is keeping it to himself, which makes the general level of co-operation much more difficult. Is there any pressure on the Republika Srpska institutions to take the lead and actually arrest Radovan Karadzic? It has become obvious recently. It is being insisted that the key responsibility should be borne by the institutions of Republika Srpska. I personally think that the biggest responsibility is on those institutions, but I do not think that it is the only one. The State Border Institution, which is a BiH institution, controls the border. Thus it is the responsibility of that institution. New state intelligence services, such as the BiH intelligence service, have appeared, though they have not yet started to function in any real way. There was the presence of SFOR, which also had the mandate to arrest those indicted for war crimes, and NATO's Headquarters, which is staying in Bosnia, will also have the same mandate. How significant would you assess the departure of NATO's SFOR and the arrival of the European Union's EUFOR? There are several messages here. The first one is that the circumstances in Bosnia have stabilised to the extent that there is no longer any need for the existence of SFOR troops as some kind of combat forces and that EUFOR is here as a symbol that BiH is continuing its approach to the EU. Secondly, it shows that domestic institutions have

We wanted the USA to remain present and we have achieved that. But the fact is that the stress is slowly moving towards the EU because the Balkan area is not a priority in USA foreign policy. already assumed responsibility for stability and security in BiH and there is no need for somebody from outside to do that any more. Thirdly, EUFOR is present here much more to train domestic institutions, rather than take care of security. There is probably a fourth element, which is that all countries in the region will come closer to NATO. Do you think that the deploying of EU troops in Bosnia is evidence that Bosnia has become the EU's experimental testing ground for the creation of foreign security policy? This is the biggest, longest, most complex military mission that the EU has jointly carried out in its history. I could hardly say that this is an experiment, but this is a challenge for the EU, which will show the EU's capability in this area to be in co-operation with NATO, and to exist independently as a factor of stabilisation in Europe. For us, it is very important that European troops are here. I think a solid solution was found through the establishing of NATO's Headquarter with 300 soldiers; with the presence of soldiers and officers from the United States. We found a balance with both and this arrangement will be beneficial to everybody. What are BiH's obligations in this arrangement? Not very big ones. We mostly have to just ensure normal conditions for the troops' operations and co-operate with them. In fact, all this is based on the UN resolutions when IFOR was first established, then EFOR and now EUFOR. But the legal basis is the UN Security Council's resolutions. The U.S. has had a dominating influence over BiH to date. Is the replacing of SFOR with EUFOR, in fact, a turnaround in the situation that is seeing the EU become the leading power? For us, it is very important that the USA stays here. They will stay

Mladen Ivanic with Serbian President Boris Tadic through the NATO Headquarters and its soldiers, and this headquarters will have responsibility for the political connections between BiH and NATO, co-operation with The Hague Tribunal and the political issues involved in the reform of BiH's armed forces. We wanted the USA to remain present and we have achieved that. But the fact is that the stress is slowly moving towards the EU because the Balkan area is not a priority of USA foreign policy. What about the military bases? EUFOR will now use them for Finnish soldiers, in a smaller scope, and it is possible they still have not made a decision. They have a small number of soldiers who could use that base with a smaller unit of a hundred people - they still have not decided - which could be quickly enlarged if needed. What about the airport in Bihac? Nothing. It is still in ruins and is not being used for anything. How do you estimate the general trends in the Balkans and the combining of the destinies of BiH and the status of Kosovo? I do not think that there is any direct connection. The solution to the Kosovo issue will have certain consequences not only for BiH, but for the whole region. That is the option that means the further fragmentation of the whole Balkan area has been announced. It would be best for everybody, especially international institutions, if Belgrade

BiH in crises Members of the State Presidency of Bosnia & Herzegovina met EU Commesar for Enlargement, Oli Ren. They stated that new crises have to be overcome before the Christmas Holidays. Bosnia faces deep political crises after the last decisions of HR Paddy Ashdown. Several high officials resigned and the president of RS announced the possibility of a Referendum for separation of RS from Bosnia in the case that, the Dayton agreement will be continusly under violation. Commessar Ren said that after the meetings with BiH representatives he is sure of a consensus for the BiH road to Euro-atlantic integrations. Former Prime Minister of RS, Milorad Dodik, accused "anti Hague" lobby from Serbia of obstructing Bosnia.

CorD | January 2005

Interview and Pristina could make an agreement. Whatever they agree, that would certainly be accepted by others and would not provoke any problems. The biggest problem will be if Belgrade and Pristina do not agree and if some exceptions are eventually going to be made. Then it could lead to the question of whether that exception, whatever it is, is possible in some places but not in others. Did the recent "normalisation" of relations between Belgrade and Zagreb have a resounding effect in Bosnia? It was very positive. The agreement is being welcomed with many positive expectations. BiH is leading the policy of establishing better co-operation with neighbours. As the co-operation is better, problems lessen. The more our borders are open to flows of people, food and capital, the less problems there are in BiH. A large number of fears are being eliminated in such a way and the feeling of isolation and division is disappearing â&#x20AC;Ś It is clear to us that if Belgrade and Zagreb are co-operating well, then the picture of the whole

How was that apology interpreted? That depends from person to person, from political party to political party. Some accepted it, some criticized it, but regardless of whether this is considered only as words or some kind of courtesy move which does not cost anything, it was a very important step. Every apology of that kind shows the elimination of complexes of any kind. President Tadic, from that point of view, made a significant step forward, and those who criticized that, especially those in Bosnia & Herzegovina, are not really sincere. Some of them would even like to return to the subjects from 10 - 15 years ago in order to feed their political power, authority and importance. I personally think that has absolutely no sense and I think that Mr. Tadic provided a motive for others to show themselves.â&#x20AC;˘

Untenable Threats Do you see a threat to the existence of the Republic of Srpska because of a lack of co-operation with The Hague Tribunal? The internal organisation of BiH is defined by the Constitution. The Constitution can be changed only in a constitutional way - through the normal procedure which considers the agreement of all three nations. Without that concord there is no change to the Constitution. There cannot be changes to the Constitution under any other process other than a purely constitutional way. That means through parliamentary procedures (a two thirds majority, and a full consensus. For me, threats of that kind - that insufficient co-operation will be used to remodel the internal organisation of BiH - is absolutely unacceptable, legally untenable and I think that it is simply impossible.

"Dayton" versus "Brussels"

Mladen Ivanic with Serbian President Boris Tadic region will be changed and we will, as BiH, benefit from that. It is very important for the country to co-operate because that will change, in a positive direction, the picture of the whole region, and then every country will benefit from that. The Latest measures of Mr. Ashdown harm every progressive achievement made in recent months in co-operation between Belgrade and Zagreb, as well as positive steps from the side of president of Serbia Boris Tadic. Instead of finishing 2004 on a successful note, we are going into the deepest political crisis. I ask myself "did Mr. Ashdown make his moves while ignoring positive developments achieved with great effort by people in Bosnia & Hezegovina, Serbia & Montenegro and Croatia?" Serbian President Boris Tadic recently visited Bosnia. What was the importance of that visit? I think it is very important that Mr. Tadic spent three days here. He visited Sarajevo, Banjaluka and Mostar. He expressed lots of consideration and made time for a wider understanding of the political circumstances in BiH. He also held talks in three important towns in BiH. Mr. Tadic also apologized. In that way he opened the way for others to apologize. Everybody should apologize to the other side for the crimes committed. Crimes were committed by all sides. In general, I think that this was a step forward in the improvement of political relations and in bringing the two countries closer.

CorD | January 2005

How do you evaluate the establishment of BiH as an international factor; and is there a border between the "Dayton" and the "Brussels" Bosnia? Bosnia & Herzegovina has not been provoking attention with problems for a long time. For a country which was at war nine years ago that is enormous progress. I do not know if anywhere in the crisis regions all around the world the stabilization of the situation happened as quickly as it has in Bosnia & Herzegovina. That is a big credit to the Dayton Treaty. If that treaty did not have such a character, that would not have happened for sure. Confronting the socalled Dayton and Brussels phase represents a dangerous and fastidious thesis without any solid foundation. This thesis, in some way, says that the Brussels' Bosnia & Herzegovina will be different from the Dayton one. That could immediately provoke fears in BiH and there is no need for that. For me, the Brussels' Bosnia & Herzegovina, let me use this term, can be based only on the basic principals of the functioning of the Dayton BiH: decentralised with two entities. If somebody thinks they can use the approach to the EU as an excuse to create such circumstances to return to the previous state of BiH, then that is a dangerous political naivetĂŠ. Nothing would come of that and it would only stop the current positive trend. All this does not mean that some parts of the Constitutional structure cannot be adapted to European Union regulations. Objectively, if around 50 per cent of the budget considers agriculture, deals with agriculture, and in this moment we do not have a ministry that deals with agriculture, then we will have to have that ministry in BiH. But that does not mean that there will not be two entities. And I am in favour of adapting our structure to the needs of cooperation and the approach to the EU, but I am strictly against all changes to the Dayton Treaty aimed at dismantling Republika Srpska.

SCG & The Balkans - Macroeconomic forecoast

DELAYED REFORMS,

LACK OF COMPETITION

According to the recently published 2004 Transition Report of the European Bank for Reconstruction and Development, Serbia & Montenegro remains the only country in SouthEast Europe that has yet to begin the second phase of the transition process.

CG is also the only country in the region that has yet to increase of private share of GDP and development of financial receive positive approval from the European institutions; Croatia was commended for corporate management Community - in the form of the Feasibility Study achievements and its restructuring of companies, corporate manwhich should provide the basis for the signing of the agement, banking sector reforms and infrastructural reforms, Stabilisation and Association Agreement leading to According to the bank's "transition indicaeventual EU accession. Of the 27 countries of transition in Europe, whose eco- tor", SCG achieved the highest score - four nomic development is being monitored by the European Bank for Reconstruction and Development (EBRD), SCG is current- for price liberalisation and the lowest score ly ranked behind the eight new EU member states and EU can- - one - for lack of competition related policy. didates Romania, Bulgaria and Croatia, and ahead of countries of the Association of Independent States. while Albania was praised for increasing competitiveness and According to the EBRD's latest report, the only progress improving the banking system. made in the state union during the last year - on a scale of basic According to the bank's "transition indicator", SCG achieved reform indicators - was in the field of auctioned privatisations. the highest score - four - for price liberalisation and the lowest Neighbouring states, in contrast, proved much more diligent: score - one - for lack of competition related policy. The country Macedonia received an improved mark for tender privatisation, has not fared well with regard to the financial sector, infrastruc-

CorD | January 2005

SCG & The Balkans - Macroeconomic forecoast ture or company management and did only slightly better in the areas of "small" privatisations and the opening of the market. Despite the lack of progress in SCG, the Feasibility Study is expected to be forthcoming this spring and the Stabilisation and Association Agreement should be signed by year's end 2005 or early 2006, though this is dependent on the continuation of reforms, the remedying of shortcomings identified by EBRD analysts and European Committee experts. Both organisations have concluded that after several decades of stagnation and the swift progress (then the fastest in the region)that followed the 5th October 2000 uprising in Serbia, SCG has been at a virtual standstill for the past year. However, leading EBRD economist for South-East Europe, Peter Sunfay, has assessed that SCG institutions have again sparked into action over the past few months and, he noted, if the current pace is maintained SCG could exceed growth of six per cent - significantly greater than 2003 and slightly higher than expectations for 2004. Nevertheless, Sunfay warned, this growth will not result in the country catching up with neighbouring transitional countries that have left SCG in their wake, due to the massive burden of SCG's foreign-trade deficit and the balance of payments deficit, which stands at some 10% of GDP.

CLOSER TO THE EU - SUCCESSFUL REFORMS Following their studies of year-on-year transitional progress in the former communist states of Eastern, Central and SouthEast Europe (including the former USSR), EBRD experts have concluded that reforms have been most successful and most quickly implemented in those countries short listed for EU membership; and that EU accession results in an idling of the process: partly because the main objective has been achieved and partly because of "transitional fatigue". They also conclude

Romania, Bulgaria and Croatia have made significant progress and, as a result, have been short listed for membership; while the remaining nations, including SCG, are only achieving limited progress and making slight reform-orientated moves that are not always proving successful. that those countries which are still taking their first steps towards the EU are finding the necessary changes the most difficult to implement and are working slower and with higher costs because they are further away from the Union. As such, it is of little surprise that the former communist states of Europe celebrated the 15th anniversary of the fall of the Berlin Wall and the end of "red terror" from varying stages of transition: the most progressive eight nations - Slovenia, Slovakia, the Czech Republic, Hungary, Poland, Latvia, Lithuania and Estonia - proved their ability to fulfil virtually all reform requirements and made their accessions to the EU in May 2004; Romania, Bulgaria and Croatia have made significant progress in the adapting of their economies, institutions and state administration and, as a result, have been short listed for membership; while the remaining nations, including SCG, are only achieving limited progress and making slight reform-orientated moves that are not always proving successful. It remains hard to imagine that some of the countries included in this latter group will ever achieve the reforms necessary for EU integration, though Willem Buiter, Chief EBRD Economist and Special Advisor to the EBRD Chairman, insists that the majority of these countries have achieved specific progress with regard to the establishing of open markets, increasing develop-

Harald Hirschhofer, Head of IMF Mission to SCG Exclusively for CorD

A year of investment Serbia & Montenegro's external environment is favourable. The global recovery has become well established and regional growth in Central and Eastern Europe is expected to reach around 5 per cent in 2005. The European integration process and improved membership prospects for candidate countries have triggered a strong momentum of investment and structural change in the region. That said, developments in Euro - US dollar exchange rate and the international oil price need to be watched carefully. In 2005, the favourable external environment creates an opportunity to speed up the pace of reforms. 2005 will hopefully become a year of investment. Investment will need to happen at all levels of society and will take different forms. On the political level, reformists need to stand together and decide on difficult reform measures for the long-term good of the country - let's call this an investment of political capital in the future. The productivity of state-owned firms needs to be strengthened, preferably by transferring ownership to private investors who are better equipped and willing to improve the long-term prospects and operations of these important firms. Investment momentum in the private sector needs to grow as well. Foreign direct investment and technology will undoubtedly be attracted by the government's stepped up privatisation programme and improvements in the investment climate. But I hope that households will invest as well - especially in their human capital - and that they will resist the social pressure towards more consumption, which the Americans describe as "the need to keep up with the Joneses'". I am frankly concerned for families that incur high debts to raise consumption without having the stable and adequate income to support it. The 2005 budgets in both republics have been a good step in the medium-term agenda towards redefining the role and size of the state. I have no doubt that Ministers Dinkic and Luksic will effectively implement their budgets. Fiscal constraints, both in the budget and in the state-owned enterprises, will be crucial to quickly reducing the country's external vulnerabilities as symbolized most clearly by the high trade deficit and debt. Reducing the size of the state will also create further room for the private sector to grow and create sustainable employment. The governments' economic programmes for 2005 are strong and are supported by the IMF. Success will depend on whether reform oriented parties will work together and the fears of the people affected by reforms will be addressed.

CorD | January 2005

SCG & The Balkans - Macroeconomic forecoast ment rates and attracting foreign investments. Moreover, progress is more difficult for these countries because they are suffering from high, lasting financial misbalances, budgetary deficits, huge unemployment rates, poverty (decreasing, but still inordinately high), unfavourable business conditions, weak legal systems, poor infrastructure and corruption.

state union as a means of hastening stabilisation and achieving "European partnership" objectives and eventual EU accession, would eliminate delays caused by failure to complete the harmonisation process. Much remains to be changed. Perhaps most urgent are infrastructural requirements, efficiency in the administration of public services and firms, accounting reliability, In addition to other elements, this would include a clearer support and incentives for entrepreCompanies Act and an Anti-Corruption Law. In the next neurship - particularly in small and midcompanies - and the establishing of a phase, banks would need the ability to support acceler- sized banking system able to provide credit to ated growth of small and mid-sized companies by facili- such operations. The aforementioned elements are all tating long-terms loans at decreased rates of interest... "prescribed" by the EBRD to transitional Buiter warned that economic reforms would only prove suc- countries. The base requirement is to provide the legal framecessful if they were coupled with the determined commitment to work specifically to stimulate infrastructural development and adhere to democratic principles and political liberties. competitiveness, which forms a prerequisite for further economOliver Dechamps, EBRD Business Group Manager for South- ic development East Europe and the Caucasus region, insists that the most imporThis is, in fact, the same recipe that the EBRD "prescribes" to tant question is whether there is the political will to undertake other transitional countries: they must provide the legal framereforms and establish strong, responsible leadership able to imple- work that would especially stimulate development and competiment those reforms, regardless of the cost and the inevitability of tiveness in the filed of infrastructure because it forms a prerequilosing public popularity. Regarding SCG, Deschamps noted that a site for further economic development, induction of foreign capnew model of the so-called "twin-track", which the EU offered the ital, further employment and improvement of the general living

Miroljub Labus, Deputy Serbian Prime Minister

How to achieve growth

Addressing representatives of Serbia's economic sector, Deputy Serbian Prime Minister Miroljub Labus emphasised that all macroeconomic instruments are being tuned in order to achieve the growth of domestic product by at least four to five per cent, as well as a significant decrease in the foreign trade deficit in the next year. The focus will also be on privatisation, added Labus, noting that change in the economic structure is unavoidable. He remarked that, to date, privatisation has not had the

CorD | January 2005

expected effects. He emphasized that the 50 biggest companies so far privatised import more than they export which, in the long-term, does not produce good results. Talking about the 13 per cent deficit in the balance of payments, which is planned to be reduced to one per cent of GDP in the next year, Labus added that this was created mainly by the import of oil - the price of which has been constantly increasing on the world market - but also because of the import of equipment, which he appraised as being a positive move. Serbia will have money for that expenditure without devaluation, but such a situation should not last for long. Explaining that the much-criticised interference of the Government to control inflation was justifiable, Labus said that if that had not been the case then inflation would have exploded and would now be over 20 per cent. As one of the main reasons for the increase of inflation, Labus cited the constant increase of oil prices and domestic energy inefficiency. Namely, Serveans use twice as much energy per unit produced than indeveloped countries, thus the consumption of oil was 450 million dollars higher than it was in countries that have more rational production.

According to Labus, the new value added tax - to be introduced from the start of this year - is a good move aimed at reducing smuggling levels and returning circulation to legal flows. The fear of a debtor crisis, according to the deputy PM, does not exist because the country has enough money to pay off the debts created both in this period and 20 to 30 years ago. Foreign currency reserves of four billion dollars cover the value of the four months import, thus there is no reason to fall into depression as a result. Labus announced two groups of measures that should contribute to realisation of the country's macroeconomic policy. Firstly, he counts on implementation of VAT, which will have an effect in March since industrial production results are usually lower in the first two months of the year. Money from VAT will not only go towards budgetary needs but, because of the widening of the tax base, will also create a drop in tax burdens. Public expenditure on domestic production will be reduced by one per cent and the state will not interfere with wage policies, other than by stimulating higher employment. With the stability of the domestic currency, better results in exports will be enabled with one billion dinars to stimulate companies in a linear way.

SCG & The Balkans - Macroeconomic forecoast

standard of citizens. Power grids, roads, railways and telecommunications also link the country with neighbours and the rest of Europe, enabling states to more easily join the global market. However, these areas tend to result in monopolisation, against which one should fight.

A NEW STRATEGY FOR SCG The EBRD has recently adopted a new, ambitious, stimulative strategy for SCG, compiled jointly under consultations with all stakeholders and taking into consideration not just the needs of the country, but also the expectations of its clients and shareholders. The strategy covers four areas that would form the basis of future EBRD engagement in Serbia & Montenegro. Initially, a beneficial climate for investments is necessary. This would

include a comprehensive legal framework that would lay down identifiable "rules of the game". In addition to other elements, this would include a Companies Act and an Anti-Corruption Law. In the next phase, banks would need the ability to support accelerated growth of small and mid-sized companies by facilitating long-term loans at decreased rates of interest, coupled with a wide range of services, including mortgages, small business loans, etc; corporate administration and competitiveness must be developed successfully. Next on the list of priorities is infrastructural development: foreign partners and investors will not come if the country lacks developed, genuine competition and quality infrastructural requirements (roads, airports, railways, telecommunications, gas pipelines, etc.). Finally, the realisation of infrastructural projects that will see the state union join the regional and European markets.

Miodrag Babic - president of Vrsac-based Hemofarm Concern

Key conditions In the forthcoming year I expect the entire Serbian Government, not only the economic section, to pay more attention to the economy, which was initially oppressed by a long embargo and sanctions from the international community, and then by competition from non-essential imports. It is necessary to form long-term plans for the development of the economy, especially in those segments that, it is estimated, could form the backbone of the country's further economic development.

The country should establish conditions whereby the identified objective can be realised. One of the key conditions of this is to pay more attention to young people. We are not under sanctions any longer, thus this cannot be given as an excuse for why our young, educated experts are leaving the country. It is an illusion that we have too many experts and young business people. We are lacking them if we want our companies to successfully compete with foreign firms. In order to keep this young positive energy here we have to create conditions for their employment and satisfactory existence.

CorD | January 2005

SCG & The Balkans - Macroeconomic forecoast ECONOMIC EFFECT OF EUROIZATION using three different coefficient of the impact of common currency on trade and income (2002 trade data for Albania, Macedonia and Serbia)

Abowe is calculated the potential economic effects of Euroization on bilateral trade with the EU using three parameters: the Poisson PMLE, the parameter of a meta study of 30 different OLS studies, and the parameter of the original study by Andrew Rose in 2000. Calculations with the Poisson PMLE estimate show that trade between Albania and the Eurozone would increase by about 11 per cent in the event that Euro becomes legal tender in Albania. Over seven percent of that would be due to an increase in her bilateral trade with Italy and Greece. For Serbia and Macedonia, total trade is expected to increase by 5 per cent and 5.5 per cent respectively. In US dollar terms, Euroization is expected to increase trade by over 175 million for Albania, about 330 million for Serbia, and about 140 million for Macedonia. With respect to real GDP, results are very conservative. For Albania and Macedonia real GDP is expected to increase by about 1.5 per cent following Euroization, while for Serbia the effect is estimated to be below one per cent.

The country can count on the support of the EBRD for every step of this process, as well as the support of other financial institutions: every Euro the EBRD invests is matched by other financial institutions or private investors. To date, the EBRD has invested 23 billion Euros in Europe's transitional countries, which includes 615 million in SCG. Of that total,

60 per cent has been utilised for the development of public infrastructure; more than 150 million Euros has been provided to assist development of some 30,000 small and mid-sized enterprises and 15 million has been used to technically assist the Government in passing laws and improving administration. Banking reform and developmental projects in other fields have also been financed.â&#x20AC;˘D.B.

Spiros Pyrgidis - CEO Delyug

Big step forward Looking over the year 2004, the economic policy of the government has produced many positive results. With the IMF having resumed funding ($147 million) to Serbia back in June after a delay of almost a year, the London Club's debt-rescheduling agreement for Serbia and, quite recently, Serbia's upgraded Credit rating of B+ for long term debt and B for short term debt from the International Credit rating agency Standard and Poors (S&P) it is evident that international institutions consider that Serbia is making a big step forward on the road to economic and political stability. It must be made clear with the above mentioned credit rating that Serbia has gained access to the international capi-

CorD | January 2005

tal markets to finance its budget or its financial needs. It also gives access to prominent Serbian companies to get credit from these markets. Looking ahead to the year 2005, the government is determined to pursue the same economic policy as in 2004, based on a restrictive monetary policy and rigid budget control. In order to achieve this the government may have to cut subsidies to loss-making firms, and resist demands for higher public-sector wages and social transfers. This could be a point of concern. My second point of concern is the trade deficit. It is increasing dangerously year on year, partly reflecting the lack of international competitiveness of Serbia's exporters and the weakness of import demand across much of the EU with which Serbia conducts about half of its foreign trade. Higher oil prices and increasing demand for imported consumer goods have also been major contributing factors to the increase of the trade deficit. It is, therefore imperative on one hand to advance structural reform laws

to attract more foreign direct investment and privatise some public lossmaking industries and on the other hand in order to compete in the export markets the local Serbian companies need to set-up EU equality standards and create operational cost efficiencies that can generate competitive prices. The need for international management experts may accelerate this process since international top management know-how is limited in the country. Finally, considering Serbia's international debt of 13 billion Euro, it is imperative that the country has to sustain a 5 per cent, or higher, GDP growth, generate exports, control inflation (single digit) and run a disciplined budget in the following years. In order to achieve these tough tasks the government has to be cooperative and have the will to make the tough decisions needed in the future. The country's prosperity is the sole priority of all political parties and a five year strategic plan is needed in order for Serbia to become a flourishing European economy.

Forecast

2005: EUROPE in Figures

Source: The World in 2005

Comment Thus the real subject for the parliamentary discussion would be - why will Serbia end up, at the end of the year, with inflation uncomfortably higher than was planned? Minister Dinkic and Deputy Prime Minister Miroljub Labus are prepared to point the finger of blame for the increase in inflation solely at the rise in the price of oil on the world market, and, by so doing, brush the biggest and most important domestic causes under the proverbial carpet. There is no doubt that the world oil market crisis is directly to blame, to a certain extent, for the rise in prices, and thus living expenses, in Serbia. However, both laymen and experts alike are now quite rightly asking: Why now, when oil prices are falling on the world market, is inflation in Serbia not doing likewise? The root problems and causes of Serbian inflation are hidden Despite claims to the contrary, this year's growth in in the answer to that very question. Nobody is denying that the retail prices in Serbia cannot be blamed solely on Serbian Government is not responsible for the element of inflation provoked by the growth in oil prices on the world market the international oil crisis. At least an equal degree until the beginning of November. However, what shall we do of culpability must be accepted by the Serbian about the other causes of inflation? Who provoked that and why Government, which simply wasn't prepared to treat did that happen to us? Inflation is, in essence, a high temperature which shows in the economic 'illness' with strong remedies. percentages how sick the economy of a country is, and how many prescribed medicines and therapies (unavoidable radical he Serbian budget for 2005 reforms) have been implemented and if they were effective, and was summarily adopted in if doctors (the Prime Minister, Ministers and the National Bank record time - just two days. Governor) are skilful, ready and determined to treat that disease. Not even in much more stable counOnly a frivolous, and many economists would say 'bad', govtries with healthy economies are ernment will not admit that the cause of inflation is that the annual state finances discussed in Serbian economy is in such a poor state; that large companies only 48 hours. Rather, every item is have still not being restructured; that efficiency, productivity thoroughly measured in terms of and exports are at a very low level and that there is a surplus of both income and expenditure. The employees and many unemployed. Instead of speeding up the Serbian Government, sadly, did not "treatment" of the economy with strong and strict economic have a good enough understanding policy measures and the amputation of the diseased tissue, the of the situation and MPs were not Government has often prescribed "sedatives" to relieve the pain responsible enough to make the and drug the patient. Those sedatives have most often taken the simple adoption of the budget into a form of subsidies, i.e. donations from the budget to bad compaMisa Brkic, nies for the payment of wages. Regardless of the fact that they Editor Weekly â&#x20AC;&#x153;Vremeâ&#x20AC;? public debate, in which economic policy for the next year would be were not increasing productivity and efficiency, the Government discussed in a more serious and considered way. was without real coverage in the newly created securities Such a discussion within the expert public and in Parliament increasing the wages in state companies, such as was needed, not in order to shame or humiliate the Government Elektroprivreda (the Electric Industry), Naftna Privreda (the and ministers, but to seriously discuss the root causes of bad ecoPetrol Industry) and also in the public sector (health services, nomic trends this year, in order to avoid similar tendencies and education and the home office). Moreover, just before the preswrong moves in the forthcoming year. This is simply because idential elections in May, in order to make an impression of Serbia is not a country in which "the roses are blooming". being concerned about the people, the Government allowed one As such, the way in which the budget for 2005 was adopted state company (Kolubara mine), which was suffering with a surplus of employees, to suddenly employ Minister Dinkic and Deputy Prime Minister Miroljub Labus 2,000 new people. In that way they creare prepared to point the figure of blame for the increase in ated the false impression that, in the and its economy, everything was inflation solely at the rise in the price of petrol on the world state OK. In reality they were buying social market, and, by so doing, brush the biggest and most peace, postponing the recovery of the economy and sadly, the temperature as important domestic causes under the proverbial carpet. an expression of the disease (inflation) creates a bad impression that only the 'form' was satisfied and was growing. As a result, instead of the promised figure of 7.5 that this form was politically stirred up in order to avoid a vote per cent, inflation has hit 12 per cent. of no confidence in the Government. With this in mind, it should be said openly that the rise of In his address before Parliament, Serbian Finance Minister petrol prices on the world market, to a lesser extent, and the Mladjan Dinkic stated that the budget for 2005 was planned on the populist and anti-reformist policy of the Serbian Government, to basis of estimations that economic growth will be between four a greater extent, have contributed to the growth of inflation in and five per cent and end-of-year inflation would remain in single Serbia. After all, the International Monetary Fund's Mission, as figures, i.e. 9.1 percent. This statement reminded many people of its main objection to the Serbian Government, pointed out the the same promises made by the same minister at the beginning of high growth in public sector salaries and large subsidies given to this year: that inflation would be in single figures, i.e. 7.5 percent. unsuccessful companies. Furthermore, the European Bank for Sadly, Serbia will end 2004 with inflation of at least 12 per cent and Reconstruction and Development, in its annual report, stated that bill will have to be paid by all citizens because inflation is in that Vojislav Kostunica's Government had not carried out ecofact a tax apportioned equally to everybody. nomic reforms.

Inflation scapegoats

CorD | January 2005

Is it possible to maintain the planned inflation of 9.1 percent last two months of 2004, SNB Governor Radovan Jelasic has perfor the next year? According to research carried out by the sonally led a "Crusade" against the executive authorities, trying Economic Institute, one quarter of businessmen questioned to fill the holes the Government created with their irresponsible expect an increase of inflation, but the fact that the Serbian "pie in the sky" promises. Namely, the central monetary authorbudget was made under pressure from the International ities warned the Government that maintaining all of Serbia's forMonetary Fund gives the hope that some of the causes of this eign debts (12.6 billion dollars) would require a five per cent year's growth in inflation will be eliminated. Firstly, there will rate of economic growth until 2010, coupled with a significant be less money for the increase of wages in the public sector and the "drugging" of bad According to research carried out by the Economic companies. The fall in personal consumpInstitute, one quarter of businessmen questioned expect tion is already visible from the attempts made by the Serbian National Bank to tame an increase of inflation, but the fact that the Serbian heated appetites for retail credits and aban- budget was made under pressure from the International don payment by cheques on grace periods. However, provoking fear is the possibil- Monetary Fund gives the hope that some of the causes ity of early parliamentary elections and the of this year's growth in inflation will be eliminated. readiness of the parties comprising the Government coalition to finance their own pre-electoral camfall in public expenditure. However, Economist Intelligence paigns with budget money. That model is a throwback from past United area director, Laza Kekic, said at the opening of the 4th Regional Conference of Investors and the Serbian Government times, when bridges and roads were built, unearned wages were that the rate of 4.5 per cent economic growth in Serbia, as much given and non existent working places were created with budgas the Government planned for the next year, is not maintainet money. able. As a result, the Serbian National Bank is demanding the The other reason to be apprehensive is the already apparent continuation of structural and institutional reforms in order to lack of readiness of this Government to continue economic increase investments from the current figure of 16.5% of GDP to reforms, while priorities for 2005 will be the restructuring and 25% by 2009. privatisation of state-owned companies. If this Government is The only comforting news for 2005, if there is comforting not prepared to deal with that, it will face the well known news regarding the inflation, is that Serbian citizens will never national saying "whoever does not pay at this end of the bridge again face levels of inflation that struck them in 1993. That, howwill pay at the other end". ever, is not an excuse for the Government not to listen to the wise The third, and perhaps most important, reason to be fearful advice of the Serbian National Bank.â&#x20AC;˘ is the warning coming from the Serbian National Bank. In the

CorD | January 2005

Interview

New look

Belgrade

After four years working to normalise Belgrade, the city council has developed new plans for the years ahead.

Nenad Bogdanovic, Belgrade Mayor By Aleksandra Sekulic-Stojanovic, Photo Stanislav Milojkovic,

his month CorD speaks exclusively to the first man of the Serbian capital, Mayor Nenad Bogdanovic, about infrastructural shortcomings, new projects, challenges facing the city government and the ongoing war against crime and corruption. What are the main problems that the city government has faced during the past four years? The most important element over the past four years has been reconstruction of the city's infrastructure because Belgrade had many infrastructural problems before the year 2000. Large-scale destructions in the period [prior to 2000] needed to be repaired and a lot of money was needed for that. Moreover, we had a problem with low communal prices that had decimated public services, such as the city's sanitation department. Belgrade's many parks were in a terrible situation because the sanitation department simply wasn't technically

CorD | January 2005

equipped to cope with its job. There was also a major problem with parking in the city centre and we had to do a lot to make life easier for citizens with cars. Moreover, the city government invested a lot of money in cultural and sporting institutions to deal with their many problems. It was certain from the get go that the city government would be responsible for restoring a normal situation in Belgrade. What have you done specifically to remedy the city's infrastructural problems? We have invested a lot in Belgrade schools and many of them are now completely repaired. They hadn't been touched for twenty years so it was an important issue to deal with. Some 60% of all school properties have been renovated in the city. The idea of the city government is to elevate our schools to European levels within a couple of years and I am certain this will happen. We only need time and money to achieve European standards. We have a special policy for pre-school institutions because the city has been financing almost 90% of all children in nurseries. Of course, we have invested a lot of money in sporting facilities, particularly Tasmajden sports centre, Banjica and the Belgrade Arena. These important complexes have been a financial burden over the past four years, but we had to renovate them.

Interview Ada Ciganlija has alos changed its physiognomy since 2000 and has become the most beautiful part of Belgrade. Culture is also an important field that required investment. What were the biggest challenges in this field and what are you planning for 2005? Apart from investing in the Yugoslav Drama Theatre, Terazija Theatre and many other theatres in town, we had to deal with a number of problems in other cultural institutions. We have managed to ensure that our theatres are functioning normally and have achieved excellent levels of communication with those involved in different aspects of Belgrade's culture. We are now working in unison to find new sources of finance for the further development of numerous cultural programmes. There is also the Historical Archive, which has become a serious institution. Many people didn't even know it existed and I believe the Archive is one of the most important institutions in the city because it holds the history of Belgrade and tells the story of who we are. In addition to the usual annual cultural events, such as

and I think it is very profitable. We had to show everybody that it could be done and now you can park even in those parts of the city where it was formerly impossible during working hours. People should understand that if they want to be in the city with their cars at a specific time of the day they need to pay for that comfort. If you take a look at modern European cities, you cannot see cars parked in the street because they are hidden in underground garages. The trend in Vienna or Milan is to remove garages from the streets and build parks instead, so we are trying to do the same. When we talk about what Belgrade needs to become more

What is really important for us at this moment is the fact that we are building one million square metres of business and housing units and many people don't know this. The effort we are making in this sector is a natural consequence of what we have been doing over the past four years, especially when we speak about the changing of infrastructure and land. Bemus, Bitef and Fest, we are planning some special projects in the theatrical domain, film and many other fields of interest. These projects will provide the opportunity for some private initiatives in this sector. This is set to be the next phase in the development of cultural life in Belgrade and we will support it as much as we can. There are some very important institutions that Belgrade does not yet have, but we plan to build them in the next four years. This includes a city gallery: I think Belgrade is the only major city in Europe that doesn't have its own gallery. We also plan to build a Belgrade Opera house within four years, as this is considered an important cultural institution that Belgrade needs to have as a metropolis. What infrastructural projects are you currently working on and how is Belgrade going to look in 2005? Two major projects are currently being discussed. One is the Belgrade inner ring road, starting with the Cukarica-New Belgrade Bridge. The ring road will be completed in ten years with the bridge over the Danube. I think this project will help organisation of traffic in the city and we will not have traffic jams like other major cities. People here think that what we have now are real traffic jams, but they should take a look at other big cities in Europe where traffic sometimes does not function for hours. We are also looking into parking facilities and there are many ideas on how to solve parking problems. There are those who think Belgrade should function differently to the European and global civilisation and their idea is to build some parking garages 15 kilometres from the centre and provide buses to the central zone [park & ride], but I am sure that it is not the right solution. Unfortunately you can only hear these ideas in Belgrade. No, Belgrade will be developed as any other European city, which means that parking systems will be built either from concessions or from the budget, but it is a natural development

Nenad Bogdanovic like other capital cities, we have to mention the metro system. Of course, the metro has been one of the central issues of our discussions. I think that, technically, everything is clear in Belgrade. Nowadays there is new technology available and we will build a metro that will be partly surface rail and partly underground. Building of the first metro line is scheduled to commence two years from now, but this is dependent on many factors - such as money and types of projects. I am hoping Belgrade will have its first metro line by 2010, while other lines are to be built over the course of the next 20 to 25 years. There are many tourists visiting Belgrade these days. How are your planning to make the city more attractive? I think our town needs to be more beautiful, not only because of foreigners coming here, but also because of ourselves. We have to invest a lot in taking care of our parks. I wish every park in the city could look like the one between City Hall and the State Union Parliament. Some people were hesitant about whether we should invest in renovating facades and providing up-lighting for building, but we decided to do that because it is very important for Belgrade. It makes the city more beautiful for us and for all those CorD | January 2005

Interview

Gentrification atracts tourists visiting the city. Our wish is to attract as many tourists as possible because Belgrade deserves that. We don't have to be Budapest, we could be half as popular as Budapest and that would be enough for Belgrade. So we are trying to motivate many people to come here and see that this city is a real metropolis. How are plans progressing for the 2005 European Basketball Championships, which will see Belgrade become the central focus of the basketball world? This sporting event is very important for our city because some 3000-4000 people will arrive here at one moment and they will see that we are normal people; that Belgrade is a European city and that we don't hate foreigners. There are some scars from our recent past, but we really want to be a part of Europe because we are geographically already in the centre of this continent. The impressions others have when they leave Belgrade

fact that we are building one million square metres of business and housing units and many people don't know this. The effort we are making in this sector is a natural consequence of what we have been doing over the past four years, especially when we speak about the changing of infrastructure and land. I wish to double the space for housing and business in the years to come. We will continue to do this intensively, though we have surpassed the income plan for developing the city's land. It is certain that Belgrade is very interesting as a city to invest in. We only have a problem when Parliament punishes us by reducing the budget, but it doesn't matter because we will endure that.

Before you were elected mayor, you said that one of your priorities would be the fight against corruption. Of course, I will continue to fight against corruption as much as I can. I keep telling everybody who comes to me that I don't need anything else. That's why I There are some very important institutions that Belgrade expect my colleagues to behave in the does not yet have, but we plan to build them in the next four same way. They have to understand if they are suspected of just one years. This includes a city gallery: I think Belgrade is the only that little thing they will not be able to major city in Europe that doesn't have its own gallery. We work here anymore. There is also a of public and the media whose also plan to build a Belgrade Opera house within four yearsâ&#x20AC;Ś part way of fighting corruption is comare really positive because our city is very hospitable. There are pletely wrong. You can't fight corruption with lies. Many citizens so many places where they can have a good time. Of course, don't understand that without their help we cannot succeed in information like this is always welcome because the positive this battle. I think there are two ways of fighting corruption: first, experiences and impressions these people had in Belgrade are when the system is preventing people from being corrupted at all spreading all over the world. - and I think that is the most efficient way - and second, when everybody who is working with us helps us to remove those indiDoes the city's mayor need to be a good manager in order viduals who are corrupted. Generally, I think that the situation is to attract potential investors to Belgrade? much better nowadays, though we still need to improve the Some people think that I should be a manager of foreign mechanisms for fighting corruption. companies, which would like to invest in this town and that is supposed to be the real purpose of a mayor. I don't think so What are the challenges for Belgrade's mayor? because I think that a mayor, together with the city's adminisThe challenge is to do your job in the best way. I have to tration, should provide the opportunity for domestic and foreign admit that it is a great honour to be mayor of a city like Belgrade, investors to invest in Belgrade, and then to make this procedure but it doesn't mean anything if you are not trying to do it in the possible only through a legal system in order to settle this cobest way you can. I do this job as any other job in my life, in the operation. What is really important for us at this moment is the best possible way.â&#x20AC;˘

CorD | January 2005

Interview

Developing communication

Drasko Petrovic, Director General, Telekom Srbija

Telekom Srbija a.d. has performed successfully over the past four years, marking increasingly better economic indicators. 2003 was a turning point in terms of the company's financial performance, with generated profit finally covering accumulated losses from the period between 1997 and 2000. In addition, the good results will enable shareholders to share dividends for the first time - so said Telekom Srbija Director General, Drasko Petrovic, speaking exclusively to CorD magazine. By Milan Culibrk

r. Petrovic stressed that the company is certain to have generated a significant profit in 2004, saying: "business results of Telekom may be assessed by different criteria, but whatever criterion is applied it is evident that the Company significantly increased the value of its assets, investments and other balance sheet positions. "We were left with losses of around â&#x201A;Ź200million, which we managed to cover with profits generated over the past four years. We have also invested around â&#x201A;Ź800million in the development of the telecommunications infrastructure, digitalization of fixed telephony and the development of mobile telephony and the Internet. Moreover, we paid the State - as owner of PTT Srbija - around â&#x201A;Ź50million for the dividend only against the final 2003 statement of accounts. Furthermore, we employed a major part of domestic industry, which consisted of around 65% of those investments.

CorD | January 2005

"The fact that the prices of our services have not been changed since 31st July 2001 makes our success all the more impressive and that is probably the only service in Serbia that has not been subjected to a price increase for three and a half years, particularly given that average retail prices have increased by more than 50%. While the fuel prices in Serbia are 10-15% lower than global equivalents, and electricity prices 20% lower, prices of our services are by 10-25 times lower than in neighbouring countries with GDPs 3-4 times higher. For example, a local call in Budapest is 46 times more expensive than a call made in Belgrade, while local calls account for as much as 60% of all calls made via Serbia's landline network. "All this contributes to our further success, particularly because we do not have a monopoly over the mobile telephone and Internet networks, but only landline networks. As a matter of fact, according to digitalization levels, balance sheet positions and number of connections compared to number of inhabitants, we have already caught up with, or left behind, similar companies from Romania and Bulgaria, which will join the EU in 2007.

Interview Do you plan to increase the prices soon; and how will they be affected by the introduction of VAT? Our budget was prepared so as to avoid the increase of our service prices due to VAT. The issue of prices is within the competence of the Serbian Government, but it cannot be addressed separately since it is related to the tariff system rebalance, which must be adjusted to the solutions applicable in EU accession countries. If we want to have deregulation, which is indeed the case, and if we want to have a de-monopolization (expiry of the fixed-phone monopoly is due in June 2005), then the tariffs must be adjusted. That was the case in other countries and the regularities in the field of telecommunications simply have to be observed. However, it is not only a matter of prices. The key to any success is people, accurate budget planning and a good business plan relying on the investments to yield a return in a relatively short period. Along with the legal operation, according to international standards, without the overflow of revenues to related companies, these are the patterns for success and today there is no reputable telecommunications company in the world that does not pay out the profit or dividend. However, as in any other business activity, success is impossible in this business activity if the companies found daughter companies and transfer the entire earnings to them, while the parent company serves only as a "rapid water-heater". That is why our competition has no success.

I think that the law should be amended in that respect, since the market trends show that the incumbent operators apply the opposite solutions. What are the plans for Telekom's modernisation and participation in the development of IT technologies and communications in Serbia? The project of the ADSL service sale will be a major novelty for users in Serbia next year. It will meet the needs of a number of business and residential customers. The introduction of the said solution, providing so-called "triple play" service, as well as virtual networks being a very popular service in the countries with developed telecommunications, will be a huge step forward from as early as the following year. We already have a business customers' data network, which is available in more than 150 towns in Serbia, and we also have a trained staff capable of implementing such technologies. And, of course, to avoid the impression that we are only taking care of the business customers and the commercial aspect of our operations, Telekom Srbija secured, in cooperation with the Ministry of Education and Sport, and the Ministry of Science and Environmental Protection, to donate a number of computers and computer equipment to primary schools in Serbia, across all of its regions. We would like to provide the opportunity to young people, as soon as possible, to study and work in the information society environment.

What is a Telekom's share in the mobile telephone market What investments are planned for 2005; is the fixed netin Serbia? work going to be fully digitalized, with two-party lines split in Four years ago we had less than 20% of the market, only the near future? 400,000 customers, poor territorial and population coverage, The most important goal is to enhance the existing services, whereas today we have 2.3 million customers and control over 60% which implies a continued digitalization of our fixed network (the of the market. That exceeds my expectations, since the plan at the current level is around 65%) with a special focus on the areas end of 2000, when I came to the company, envisaged a 50% share ensuring a prompt return on investments, as is the case with major to be reached in the next four years. Now we face the great interest towns in Serbia. We plan to have 80% of our network digitalized by of customers and are forced to make new investments, introduce the end of 2005, which means that certain areas, such as Novi Sad, new services and expand radio-network and switching. At this will get close to 100% digitalization. We make intensive efforts to moment, we have a very low congestion percentage, which meets remove two-party numbers from the network. It is a complex task European standards. In 2002, we had no post-paid customers, and requiring new telephone exchanges and the reconstruction of the today we have 130,000; although the first operator had already access network. Since 2001, we have replaced around 100,000 twoattracted customers with greater economic power. Our mobile netparty lines with direct telephone lines. By the end of 2007 we will work share, in total revenues, for 1999 was only 2%. Now it is close have approximately three million subscribers, while the number of to 27%. Thus current monthly revenues exceed the entire revenues two-party lines will drop below 3%. for 2000. Therefore, from a hopeless position we managed to become a leader. "The fact that the prices of our services have not been Though the prices have not been changed changed since 31st July 2001 makes our success all the for a long time, those revenues will continue to grow because the investments in the previous more impressive and that is probably the only service in period were well projected. Serbia that has not been subjected to a price increase The Serbian Government announced that for three and a half years, particularly given that averit will sell its share in one of the two mobile age retail prices have increased by more than 50%." operators in the near future. Since the dispute regarding ownership of Mobtel is underway, is it possible that We would like to prepare for the next year with a portfolio of the State could sell its Telekom shares first? state-of-the-art solutions, ranging from wireless fixed phones and It depends on the owner: the Government, which decided in advanced solutions for the purpose of better utilization of the mid-2004 to appoint a consultant to recommend the methodoloaccess network, to the ADSL service and networking, by means of gy and different possible solutions for privatization in the field of the VPN technology, of the domestic and multinational companies telecommunications, considering the experiences of other counoperating in the country, as well as worldwide. We also plan to tries. These experiences differ because in some countries the introduce new IP services, as well as the integration of the voice state is a 100% owner, while in some it is merely a minority and data transmission with the TV (triple play). owner. Therefore, there is a wide range of different solutions and We would also like to continue mobile network development, it is necessary to adopt a strategy at this point, considering the where we managed to cover, after four years of painstaking efforts, fact that in some countries the fixed and mobile telephone net60% of the market, 92% of the population and 82% of the territory. works tend to merge in a single company to prevent the erosion We can also be proud of the quality of the network providing most of of the fixed telephone network - since traffic tends to redirect the advanced services, such as VPN (virtual private network) with towards the mobile network. affordable tariffs, SMS and MMS, WAP, GPRS and also some sophisticated services such as the EDGE and 3G pilot projects, which are The law here envisages quite the opposite: a separation of expected to be commercially launched in 2006. The level of developthe fixed, mobile and Internet networks. ment can be illustrated by the fact that we had 800,000 applications CorD | January 2005

Interview for telephone lines four years ago. We have now reduced this number to 250,000 - 300,000, owing to investments. That is why I believe that in 2007 it will be possible for everyone in Serbia to get a telephone connection, while the entire Serbia, particularly major towns, will be fully digitalized. The network was not systematically developed until 2000, which resulted in 19% digitalization in Novi Sad, 27% in Belgrade, between 12% - 19% in the central city municipalities and around 20% in Nis. That is why we had to digitalize the network and increase the number of exchanges, i.e. connections, at the same time. Today, the digitalization level in Belgrade and Nis is 60%, over 70% in Novi Sad, while the number of connections in those three cities was increased by 15%.

holders have been precisely defined, where we ensured the protection of minority shareholder's rights in compliance with the European corporate practice standards. In addition, better efficiency of corporate governance bodies has been secured. The existing mechanism facilitates decision-making, which is in the best interest of both Telekom Srbija and its shareholders. This agreement settles all disputes arising as a consequence of 1997 agreements, which is an important prerequisite for further development of Telekom Srbija and the telecommunications market as a whole.

According to new regulations, Telekom's monopoly over the fixed telephone network expires in June 2005. How will that affect the Company's position? Telekom is preparing for this eventuality, with regard to business customers as well as customers' services. Our plan is to rebalance international tariffs and reduce the prices of international traffic. In my opinion, no significant event, in a negative context, will occur in June, since we are well prepared. On the other hand, the Serbian Government and the Ministry for Capital Investments must appoint the Telecommunications Agency and plan and organise the liberalisation, which is not rigid; as well as carrying out what was done in Slovenia, Croatia, France or Germany. Liberalization in these countries was a process closely connected with tariff rebalance of national traffic. That process should span over the following four years, offering the customers new services and operators. If the strategy applied in other countries is observed, I am rather optimistic and I do not expect a major decrease in the number of customers and revenues. Why did Telekom Srbija bid at the tender for the purchase of Telekom Crne Gore (Montenegro)? Telekom Srbija intends to act regionally, just as other regional operators do. This business represents a valuable experience and we consider it to be the beginning of our regional role and competition with the largest European companies, such as Deutsche Telecom, for the purpose of entering neighbouring markets either through the acquisition of companies or through the establishing of affiliates in the region. I would like to point out another fact: Telekom Srbija proved, by participating at this tender, that it is capable of meeting the challenging requirements, but also of submitting a bid in the rank of the major global operators' bids, such as Matav with majority stake of Deutsche Telecom.

After a blockade of the Company's Managing Board operations for a few years, the agreement was made by the shareholders, while the Shareholders' Agreement was redefined by the Serbian and Greek partners. What are the principal modifications to this Agreement? A new modification of this Agreement is a clear definition of relations between the Company shareholders, the Public Enterprise of PTT and OTE, so that all issues related to Telecom Italia's withdrawal from the Company have been resolved in new corporate governance documents. The rights of two current share-

CorD | January 2005

It is true that Shareholders of Telekom Srbija, PE PTT "Srbija" and Greek company OTE have reached agreement on the final allocation of dividends. What is the amount of the funds that could belong to the state as the owner of PTT? As a company we are very satisfied, since we proved that we are able to reach noticeable financial indicators in addition to improved quality of services and significant development in all segments of business operation. This resulted in the decision of the Telekom Srbija a.d. Managing Board on the allocation of funds to Shareholders in the form of dividends. The state, that is its representative in the Telekom's Managing Board, may share the dividend funds with the other Shareholder. However, they must do so whilst trying to facilitate the normal flow of the company's investments to be made in the forthcoming period. It is important here to underline that the last session of the Managing Board announced a new start in the company's operations because the dividends were allocated to the company's shareholders for the first time since its incorporation and all indicators show that this trend will be maintained in the next year.

Telekom Srbija intends to act regionally, just as other regional operators do. This business represents a valuable experience and we consider it to be the beginning of our regional role and competition with the largest European companies…

Does this mean that the repurchase of shares from Telekom Italia was a good business move? Telekom Srbija is a subject of purchase and the shareholders will decide whether it was a good transaction. Anyway, I would just like to remind you that the Italians paid over €400million to enter the Serbian market, but they left with €195 million, whereas this price is further reduced to around €100million if we take into account Telekom's liabilities towards the former partner. In that respect, it is a good transaction, especially because the value of the Company has been increased in the meantime, so that the State will later be able to sell those shares at a higher price. The majority shareholder has been burdened with the repurchase so far, but now its share in the dividend is 80%, instead of 51%. Is the development of Telekom politicized and, if so, to what extent? Anything may be subject to politicization in a modern society undergoing transition. We are trying to be business-oriented and satisfy our customers, thereby justifying the purpose that a telecommunications operator should pursue in any region. The telecommunications industry has a large potential for social integration and that influence will be even more evident in the following years, overcoming the daily and local impacts. ??lekom Srbija will maintain that policy in the future. I wish a Happy New Year to you and your readers and I hope that in 2005 they will have the opportunity to get familiar with the versatile offers of our Company.•

bulletin...bulletin...bulletin... Solid Czech links

r. Tomas Hart, Second Secretary of the Trade & Economic department of the Embassy of the Czech Republic, addressed participants and gathered media at a highlevel meeting in Belgrade on Friday 26th November. Hart spoke with regard to current economic and trade relations between SCG and the Czech Republic, as well as relaying details of the transitional experiences of the new EU member state. Today the Czech Republic, which joined the European Union in May 2004, has the highest international rating of all countries of the former Eastern Bloc - according to international credit rating provider Standard and Poors. The country also boasts low inflation rates and a stable macroeconomic environment, which decreases potential investment risk in the Czech Republic. Mr. Hart assessed economic and trade relations between SCG and the Czech Republic as "good". Total trade exchange was in excess of 156 million dollars in 2003. Czech exports to SCG increased by 42 per cent in the first half of 2004, compared to the same period in 2003. The greatest percentage of Czech exports to SCG are in the automotive industry: SKODA (15-20%). Additionally, SCG imports Czech buses, household cleaners and textile. Meanwhile, SCG exports iron, steel, synthetic rubber, aluminium and copper plates to the Czech Republic. Previously, economic relations were defined through the Trade Agreement between the Government of the Czech Republic and the Government of the Federal Republic of Yugoslavia, signed on 23rd January 1997. There is currently no Trade Agreement between the Czech Republic and SCG. According to the EU, a new bilateral agreement between the Czech Republic and SCG could be signed very soon. In conclusion, Mr. Hart insisted that there were a lot of possibilities for economic and trade co-operation between the Czech Republic and SCG. However, he stressed that the country's membership of the EU ensured that the Czech Republic's main trade partners were the EU and individual EU member states. •

Cooperation for Global Competitiveness

he "Prospects of the CanadianSerbian collaboration in the field of Information Technologies" presentation was held at the Canadian embassy on the

16th of December. The initiative, led by Independent Expert Group (IEG), a joint Canadian-Serbian firm, was assessed as a "good news story" by H.E. Donald McLennan, Canadian ambassador to SCG. Danimir Ljepava, Chairman of IEG, noted that Canada is the, or one of the, most competitive economies in most information and communication technologies (ICT) sub-sectors. He outlined how the "virtual return of the Diaspora" (of whom Serbia boasts around 500,000, most of whom work in ICT-related industries) could help Serbian firms become even more competitive than many EU counterparts. To that end, the IEG will organize bilateral business delegations, inducing a large group of top Canadian executives and investors due in Serbia for the May 2005 EBRD conference in Belgrade. The presentation marked the opening of CASIBA (Canadian Serbian IT Business Association), which will unite

Serbian Treasury as required by law. In its announcement today the ministry said that the fact that the fund had now

opened the account justified its freeze on funds and said it would not endanger members of the armed forces. Military analysts have commented that reform of the army has scarcely begun and that this is one of the consequences of problems in military funding. Minister of Defence and Fund for reform of the Army were under attack because of non-transparent arrangement for exchange of Army property to certain companies and persons. Managers of the Fund and in same time leaders of Atlantic Council refused to open an account with Serbian treasury. "I don't know id Minister Davinic had right to open an account, said Vladan Zivulovic, a lawyer and president of Atlantic Council.•

Pilot project for small business development

S Serbian and Canadian ICT experts with the goal of seeking out business opportunities, building bridges, and then crossing them. Expect activity to boom in the medium-term.•

Finance ministry releases army cash

he Finance Minister has released payments to the federal army after holding them up for several days. The ministry had refused to release funds except for army salaries until the Army Reform Fund opened an account with the

erbia's Trade Ministry and the Sintef Institute have begun a project for the development of small and medium-sized business. The project is aimed at contributing to the establishment and development of new small enterprises in Serbia, said the ministry in a statement. The Norwegian Government has pledged support of 1.3 million euros for the scheme. It will begin with the establishment of a business incubating unit in the south Serbian city of Nis. This will be the first organisation of its kind in the country and will provide legal and financial advice as well as training to the proprietors of new businesses. The project will be implemented by the Small Business Development Agency in collaboration with the regional agency in Nis and local government.•

CorD | January 2005

Faces & Places CORD'S BIRTHDAY RECEPTION Ana Novcic. pictured at CorD's 1st birthday celebratory reception, held at Belgrade City Hall on 14th December. The event was attended by members of the diplomatic core, the international investment community and many friends and associates of CorD magazine and parent company CMA.

Aljona Kudrjacova (left), Andrey Hripunov and H.E. Aleksandar Aleksejev, Russian Ambassador to SCG

Svetlana Blagojevic of Fresh&Co, (left) and Milka Forcan, Delta Holding Mark Pullen CorD Deputy Editor, and Chris Gibson of The British Councilâ&#x20AC;&#x2122;s

Douglas Wake of OSCE and CorD Editor Dragan Bisenic Goran Draganic with his wife Norwegian Ambassador Hans Ola Urstad and advisor of Serbian Prime Minister Aleksandar Simic Spyros Pyrgidis, of Delyug, Dragan Sakan CEO of NewMoment, Miroslava Bikic, from Atlas Group and Jelisaveta Bjelic, from Mosaic

CorD staff celebrating the first anniversary

CorD | January 2005

Faces & Places H.E. Ambassador Maurizio Massari, head of the OSCE Mission to SCG, with SCG Foreign Minister Vuk Draskovic at the OSCE's Christmas reception, held in Belgrade City Hall on 16th December.

Spanish Crown Prince Felipe de Borb贸n y Grecia and wife, Princess Letizia Ortiz of Asturias, officially open Belgrade's Cervantes Institute with SCG President Svetozar Marovic on 20th December.

H.E. Stefan Glavan, Ambassador of Romania to SCG, addresses guests at 30th November reception to mark Romanian National day. Guests at the Belgrade City Hall event were entertained by the children's national orchestra, which performed national songs.

H.E. Anna-Maija Korpi, Ambassador of Finland to SCG, welcomes guests to the Finnish ambassadorial residence for the 6th December reception marking Finnish Independence Day.

H.E. Ruslan Demchenko, Ukrainian Ambassador to SCG, pictured with the Russian and Cuban Ambassadors at a Villa Jelena reception held on the 7th December to mark the National Day of the Ukraine.

H.E. Ryiuchi Tanabe, Japanese Ambassador to SCG, welcoming H.E. Michael Polt and Mrs. Polt at the 2nd December reception held in Belgrade City Hall to mark Japanese National Day.

Faces & Places Ms. Radmila Hrustanovic, deputy Mayor of Belgrade, at the charity Christmas Bazaar held in the Hotel Jugoslavija on Sunday 28th November. All money raised by this festive event, organised by the International Women's Club - Belgrade, has been donated to humanitarian actions.

Serbian PM Vojislav Kostunica with Swiss Ambassador to SCG, H.E. Wilhelm Meier, pictured at the official opening of a new specialised residential complex in Pancevo on 17th December. The building project, part of a strategy for the integration of the refugees was funded by donation of the Swiss government.

H.E. Yaffa Ben-Ari, Ambassador of Israel to SCG, pictured lighting candles on 8th December in Bitef Art CafĂŠ at a celebration to mark traditional Jewish holiday Hanukkah. The event also saw presentations of traditional Jewish food, music and dances; while attendants also had the chance to sample sweets prepared specifically for Hanukkah.

H.E. Carlos Rodriguez y Quezada, Ambassador of Mexico to SCG, pictured with author Pepe Maya at the opening of the exhibition 'From the sea to Serbia and Montenegro'. The exhibition, held at 'Djura Jaksic House' on 30th November, was organised in co-operation with the Embassy of Mexico. H.E. Hans Ola Urstad, Norwegian Ambassador to SCG, pictured at a Christmas Party held at the Norwegian ambassadorial residence on 17th December.

Journalists and over representatives of all domestic and domestically-based media firms enjoy the Franco-German Christmas media party held in the Lava Bar on 8th December.

CorD | January 2005

H.E. Donald McLennan, Canadian Ambassador to SCG, addresses attendees at a meeting held in the Canadian Embassy on 16th December. The event was held in recognition of the development of SerboCanadian co-operation in the field of international technologies.

Faces & Places Crown-Prince Aleksandar Karadjordjevic, princess Katarina, and Icelandic President Olafur Ragnar Grimsson, pictured at reception held at the royal residence on 13th December. The event marked the Karadjordjevic 'slava' (saint day): St. Andrej Prvozvani.

Members of the public attending the opening day of an exhibition of comic artistry at the Italian Cultural Centre on 8th December. The exhibition, which is to run until 8th January, includes the works of Aleksandar Zograf and his wife and coauthor of Zograf comic, Gordana Basta.

Performers of the Slobodan Trkulja and Balkanopolis Band with the Belgrade Philharmonic Orchestra at the 3rd December concert organised by the Royal Netherlands Embassy in Belgrade to mark the end of the Netherlands' chairmanship of the EU in SCG.

Young musicians who performed at the chamber music concert held at the French ambassadorial residence on 2nd December. The concert, which included recitals of Ivan Jeftic's compositions, was organised in co-operation with the French Cultural Centre.

H.E. David Gowen, Ambassador of Great Britain to SCG, during the ceremony to award pre-qualification certificates to those who attended classes in the Educational Centre of the Faculty of Organisational Sciences for civil professions.

OSCE Mission Chief, H.E. Maurizio Massari, Jovan Krstic and Serbian Justice Minister Zoran Stojkovic pictured at a meeting of the Advisory Group of Prosecutors of South-East European countries, held in Belgrade on 14th December.

CorD | January 2005

Finance

Marriageable

Banks Privatisations of the 16 banks owned in part by the state since 2002 commenced between the end of 2004 and the start of this year. The first such bank to be privatised is Jubanka, followed by Novosadska and Kontinental Banka. In an effort to facilitate these privatisations, the BNP Paribas privatisation advisor was empowered in October 2003.

accurately defined because conversions of all liabilities have yet to be completed; while the debts principals of others was only converted to state deposits - and not interest rates - following ccording to Serbian Finance Minister Mladjan Dinkic, the temporary bank "nationalisation". banks already earmarked for privatisation could be All in all and according to some estimates, the state controls joined by Niska Bank, which was recently merged with half of the balancing sum of the Serbian banking sector. Prokupacka and Vranjska banks and has already seen its balDomestic financial experts claim that some of the smaller ance "cleaned". banks, of which the state is not the majority owner, have already Following liabilities discussions with foreign currency been sorted out and now represent a good "bride in waiting". clients and creditors of the Paris and London Clubs, the Serbian These banks should not pose any significant problems. The same state became majority owner of seven more banks: cannot be said of some banks of which the state is the majority Vojvodjanska, Panonska, Srpska regionalna, Borska, Pirotska, owner. Worryingly, the state cannot spare the necessary funds to Credy and Privredna banka Pancevo. Moreover, the state boasts remedy the situation within these banks and, as such, they minority share packages in Komercijalna banka, Agrobanka, should be privatised quickly. In addition to the privatisations of stateExperts claim that, apart from Novosadska, Niska, owned banks and the sales of minority packages Kontinental and Jubanka, there is nothing in others, takeovers of a number of private obstructing sales of minor packages in small Serbian banks is expected to happen in the period. It would come as little surbanks. The crucial idea of privatisation, economists forthcoming prise if some of the country's more successful said, is to establish a relatively cheap and efficient banks begin seeking strategic partners in the banking system in a relatively short period of time. coming months because their crediting potential, from deposit funds, is still very low in the global sense, despite the fact that several billion euros have Cacanska banka, Privredna banka Beograd and Kapital bank, passed through their coffers since the commencement of the and the Serbian National Bank (SNB) has revoked the operating reform process. licences of these five banks. The state is also co-owner of Srpska With this in mind, a growing number of foreign banks that banka (formerly Ju Garant), Jugoslovenska bank (formerly are looking to expand into Serbia should withdraw capital from JUBMES), Postanska stedionica and Nacionalna stedionica. offices abroad to bolster Serbia's banking sector portfolio. Correct ownership structures of many of these banks is not yet

By Vojislav Stevanovic

CorD | January 2005

Finance current state - without additional state investments or exposure to new fiscal charges. Such a strategy would see banks sold forthwith, with their public company claims transferred from their balances and later solved through the process of restructuring and privatising public companies. It could even be possible for banks to partially recover funds from their debtors, though that would place great pressure on the companies in question and imperil their very survival. Some experts have expressed the opinion that "cancerous tissues" should be surgically removed from ailing banks. They insist that connections between such banks and large companies

Former finance minister Djelic is convinced that the first wave of domestic banks can be privatised relatively quickly, thanks to the established privatisation programme and the obvious interest of foreign banks, coupled with the awareness of domestic private banks that foreign banks are strengthening their positions and need strategic partners.

Bozidar Djelic Considering that domestic banks are not in a position to compete with foreign banks, in terms of funding sources, it is logical to assume that enterprising domestic bank managers will make timely decisions to merge their businesses or completely sell out to large foreign banks. Otherwise, with privatisations having commenced and foreign takeovers assured, these smaller banks will struggle to keep up with the future competition. According to the Law of Conversion of Claims to Ownership Deposit, adopted in 2002 during Zoran Zivkovic's short-lived reign as Serbian PM, sales of state-owned share packages should have started within a time limit of six months. Bozidar Djelic, former Serbian finance minister, intended to use this time restriction to find private bosses for these banks as soon as possible, in order for the new management, which would be less conservative than the state, to develop those banks and maintain their competitiveness. However, nothing came of that idea. Experts claim that, apart from Novosadska, Niska, Kontinental and Jubanka, there is nothing obstructing sales of minor packages in small banks. The crucial idea of privatisation, economists said, is to establish a relatively cheap and efficient banking system in a relatively short period of time. Within this system efficiency would be measured by the ratio of approved credits and the gross domestic product, its price and purpose. The other effect of privatisation should be a fall in the general level of interest rates because of the increased offer of capital, which should be introduced to Serbia by new bank owners - as was the case in Croatia. It remains difficult to predict how much income the state will generate from sales of banking shares. However, due to the general state of disarray within the Serbian banking sector, PM Kostunica's cabinet do not expect income to be exceptionally high. Nor do they feel that the maximising of profit should be their priority. Rather, according to state sources, the aim of banking privatisations should be to minimize fiscal expenditure. Thus, some of the relatively small banks should be sold in their

earmarked for reconstruction by the Government should be severed. Then banks and creditors should be harmonised in order for "the air to be taken out of the debt balloon" through the setting of non-astronomical interest rates on original debts. However, these same experts insist, none of this advice is likely to be taken. One such expert, who asked to remain anonymous, drew upon a string of examples that have seen initial credits of â&#x201A;Ź100,000 grow into debts of â&#x201A;Ź100million. The expert asked what purpose such a "fatal embrace" would serve. All significant players agree that a way must be found for

CorD | January 2005

Finance those claims to be remedied without banks being "slaughtered" in the process. The state, many say, must loosen its purse strings through bonds instead of cash, which will be due in several years. Such claims cannot be left up to the banks because new owners of the quasi-state banks could obtain mortgages on all property belonging to EPS and/or NIS (the State's electrical and petrol industries). Former finance minister Djelic is convinced that the first wave of domestic banks can be privatised relatively quickly, thanks to the established privatisation programme and the obvious interest of foreign banks, coupled with the awareness of domestic private banks that foreign banks are strengthening their positions and need strategic partners. Dejlic said: "the entire situation in the country will depend on whether we get the strong banks or the second or third banking league". He added that the leading banking players know that the growth of the banking sector in Serbia will be a two fig-

ure one. Also, big European banks already have ten years experience in this region. "Those banks now know how to estimate the difference between genuine risk and its perception". According to Djelic, in three years time there will be half as many banks in Serbia as there are now. "The World Bank study shows that after the privatisation of the banking sector in transitional countries there are four banks for every million citizens." The final decision regarding the concept of privatisation will depend on the owner: the State. Whilst forming its decision, the government will be guided by the balance of offers and demands. A decision will also depend on whether credible strategic partners are interested in purchasing Serbian banks. It remains to be seen if Mladjan Dinkic, as Minister of Finance, will remain committed to the idea he launched while he was Governor of the SNB. At that time he was in favour of the concept by which no more than 20% of the two biggest domestic banks, the Vojvodjanska and Komercijalna, should be sold to foreigners.â&#x20AC;˘

Controlling ownership I

n addition to controlling the process of changing bank ownership structures, the National Bank of Serbia also controls current ownership of financial institutions in Serbia. Knowing who and how business is done in Serbia in the last fifteen years seems a bit like a Sisyphean task. Namely, as early as the beginning of the '90s banks were transformed into stock companies. Around that time they ceased their approach to the market economy: people

Radovan Jelasic close to the former regime became stockholders of banks and public companies which dealt with banks, often on the basis of debtorcreditor relations. Many of the current problematic credits, i.e. bank investments in big public companies, which burden both banks and companies, were created in the way that the company itself is a bank owner. As such, by pouring from an empty grail into a hollow grail the tangled ownership web was created and unravelling that will be a very unenviable task. However, Serbian National Bank Governor, Radovan Jelasic, is convinced that the ownership structure of Serbian banks will be completely clear in the next few years.

CorD | January 2005

The Governor has already announced measures to achieve this end. In the first half of May the national bank was supposed to publish a comprehensive report of Serbian banks' business figures and ownership structures. The majority of banks gave their consent and delivered those figures. But some banks did not do so and, according to the Governor, that was a "sign". Those citizens interested in such figures should be able to find them on the Serbian National Bank's web site. The reports should be issued every three months. According to Governor Jelasic, "there are some cases where domestic operators are, in fact, behind some of the foreign banks with apparent foreign capital. And they are connected. The Serbian National Bank is carefully working on identifying the complete ownership structure of all domestic banks and in that sense we will soon make certain data public". The problem of bank ownership is reflected in whether the Serbian National Bank can rely on a bank whose owner is unknown. That was the question: can the national bank allow such an institution to gain the trust, and money, of citizens in what is already a loose financial system lacking trust? At first sight it is a paradox that the national bank is mostly worried by foreign owners. But how can we really know who is behind the banks with registered owners from certain famous tax haven islands? Jelasic insisted: "We could ask what kind of foreigners they are; what kind of capital they have and how come some company established with only a couple of thousand euros managed, seemingly overnight, to acquire the necessary financial resources to increase the capital stock. For the National Bank, the quality of that money, and the experience of the bank owner in the financial sector, is of utmost importance. It is less important whether the capital is foreign or domestic. If someone has one or two million euros and would like to invest in the banking sector, he can practice banking in other countries. The deponents in Serbian banks are fed up of amateurs and I am convinced that, for them, the security of their investments is of the utmost importance, because they and the tax payers will bear the consequences. In many banks it was impossible, even after the additional investigation, to find out who really stands behind the owners. Those are mostly companies established with the minimum of capital. However, we are too mature and serious for stories about investors who want to invest several million dollars in smaller banks in Serbia. The companies mentioned come from all around the world, and maybe the exact same people from those stories know that behind some of those foreign banks are hiding people whose surnames end with 'ic'". â&#x20AC;˘

bulletin...bulletin...bulletin... President Tadic meets Tomislav Nikolic

Blackout cripples Serb villages

erbian President and leader of the Democratic Party, Boris Tadic, met with Serbian Radical Party leader Tomislav Nikolic. Tadic and Nikolic discussed the political situation in Serbia with special

osovo District Chief Srdjan Vasic said that the situation in Serbian villages that have been without electricity for the last ten days is catastrophic. The Serbian villages of Priluzje, Donja Brnjica, Gornja Brnjica, Lebane, Caglavica, Preoce, Laplje Selo, Gusterica, Livadje, Dobrotin and Staro Gradsko have been without electricity for well over a week. Citizens of Caglavica, Preoce and Lapjle Selo have organized a Crisis Group. Group member Stojan Jovanovic said that a decision is expected on a possible blockade of the Pristina - Urosevac - Skoplje Highway, stating that it may be the only method of solving the problem of the electricity crisis. In response to the energy crisis, European Union representative Matilda Heneke said that an extraordinary conference has been scheduled for tomorrow between EU representatives and Kosovo electric company Elektroprivreda representatives. Until the last week of December, people in these villages haven’t received electrical supply. •

attention given to the security situation in Kosovo and the adoption of a new constitution, according to the president's press people. Nikolic met Prime minister Kostunica, too. They discussed problems regarding the new constitution. "Albanians have to be included among Serbian citizens during the process of Constitutional changes, says Nikolic. It will make obstacle to the process, but it will enforce political parties in Serbia to strengthen political unity in adoption of a new constitution, added the Radical Party leader.•

many hardships, as are the rest of the nations of the former Yugoslavia. Dramatic occurrences from the past and human tragedy that hit this beautiful country remind us that the European Union itself needs to take responsibility and offer help to Serbia." said Santer. Our magazine published Interview with former President of European Commission in previous issue (No.11).•

Curuvija killer "known for a year"

erbian police have known for a year who murdered publisher Slavko Curuvija in 1999, according to local media. According to these findings Montenegrin organised crime figure Luka Pejovic was identified as the killer during 2003 when New Serbia leader Dusan Mihajlovic was minister for internal affairs. Pejovic had already been murdered himself near his Belgrade home at the time he was identified as the killer. •

Buseck warns EU on serious approach to Balkans

Integration timetable depends on Serbia

Federal election in February 2005

he European Union has already accepted Serbia-Montenegro. When the nation will join is now up to the federal government, said Deputy Serbian Prime Minister Miroljub Labus. As proof of Serbia's progress towards the EU, Labus pointed to the fact that the EU no longer looks at the situation in Serbia as international affairs and is now talking seriously about integration. Labus mentioned these things at the annual Serbian Employers Union Convention held today. EU representative Jacques Santer, who was present at the meeting, confirmed the EU's readiness to help. "We are aware of the fact that Serbia is facing

ccording to Serbian Prime Minister Vojislav Kostunica, extraordinary elections for the Serbia-Montenegro parliament need to be held in February of next year. However, he expects some delay while the law regarding the election of national representatives is waiting to be adopted by Montenegro. “With the adoption of this law regarding the election of national representatives for the Serbia-Montenegro parliament, Serbia has fulfilled its obligations towards the union and Europe. Now we must wait for Montenegro to do the same and for SerbiaMontenegro President Svetozar Marovic to announce the elections." Kostunica said.•

he European Union needs to take a more serious approach to the Balkans, the coordinator of the Stability Pact for South-Eastern Europe, Erhard Buseck, said in London. "If the EU does not deal more seriously with the region, it could become a never-ending source of problems of illegal immigration, prostitution and organised crime," said Buseck. Buseck warned that Euroscepticism and the serious business of EU expansion had put the Balkans on the top of the union's priorities. "Seriously, I think that no one in the EU today has any idea of the real European future of the Western Balkans countries," he added. •

CorD | January 2005

Diplomacy at work

H.E. Anna-Maija Korpi,

Finnish Ambassador to SCG

Finnish ambassador, Anna-Maija Korpi, has spent a career in politics and diplomacy. Having spent ten years in the employ of the Finnish Parliament, Ms. Korpi entered the diplomatic corp late. Still, her late start did not hold her back. By M. Pullen, Photo Mirjana Kotlaja

rior to her arrival in Belgrade two-and-a-half years ago, Anna-Maija served her country's diplomatic corp in such prime locations as Paris, Stockholm, Washington DC, Tel Aviv and New York. This month, CorD speaks exclusively to the Finnish Ambassador to SCG about the reform process, the potential for Finnish investment in SCG, the Kosovo situation and much more. In the two and a half years that you've been here, have you seen changes in the way that the domestic government are communicating and co-operating with you? It was very open in the beginning, but of course that was still the federal government of Yugoslavia. Now it is this State Union Council of Ministers; not the Serbian Government, but rather the Council of Ministers of both Serbia and Montenegro. This is still a union in the making, which means that they are still trying to find the best ways of doing things. Thus the old traditions and the new demands and all kinds of other things come into the equation.

CorD | January 2005

Two programmes you've been supporting - Teacher Education Development and Development of Environmental Legislation - were both scheduled to be completed this month. How have those projects been realised; have they proved successful? The laws on the environment issue passed through the Serbian Parliament last Tuesday [14th Dec. '04]. So, basically, that was achieved. Now we have the same thing to do in Montenegro, which is still ahead. Then, of course, implementation is the key. You can always pass laws, but how then do the bylaws develop and how does the implementation work? It takes the government, the companies, the municipalities, private people and so on. It goes really deep. Whenever the countries from this region, the Balkans, are joining the European Union, one of the real problems is the environment. It's really one of the most difficult because it touches the society so deeply, affecting everything - industry, waste disposal, fuel fumes; how to protect the country, save the water both drinking water and water basins, etcâ&#x20AC;Ś Then, of course, there's biological diversity and protection of different species. It's really an enormous area. What we wanted was, actually, just to have the legislation exactly at the level of European Union standards.

Interview So, once the legislation is approved does your role end or ing in mind some focused areas and interests. This is because do you monitor and assist with the process all the way to full we've clearly got an increasing number of interested parties. Of implementation? course, the macroeconomic situation of the country is stable and We have to see, in less than a year from now, that we have that makes a big difference. Now the laws and their implementadone our share in that way and implementation is well on track. tion will catch up and, of course, further investment will come The teachers' education programme is much more convoluted. when the EU candidacy status becomes a bit clearer in the future. With environment we work directly with the government. So it's a joint project between the Serbia & Montenegro Government Do you think the "green light" provided by the short-listand Finland. But with this education programme we've been ing candidacy status will lead to a flood of investments? working with the Ministry of Education of Serbia & Montenegro, No. At least not where Finnish companies are concerned…I but also with the universities directly. Here we wanted to have a do think that completion of the stabilisation and association willing partner; someone who's really enthusiastic about that. agreement will have a snowballing effect on international direct Otherwise it's no go. Now we have Sombor faculty of Novi Sad and Jagodina - faculty of Whenever the countries from the Balkans are joining Kragujevac. But with the Belgrade University the European Union, one of the real problems is the we've got some problems.

environment. It's really one of the most difficult because the society so deeply, affecting everything

What sorts of problems? it touches It would be good, actually, to have reform not in the most established institutions because they have the most to save. It's all embedded and they feel they have the most to protect. The new ones are more eager to try things the new ways. Basically, we are not force-feeding them. The only thing is that, again, this country needs to be very competent at all levels and education is one of the key areas that everything springs from, enabling the country to survive in the modern world. In this project we have not spread ourselves too widely; we are really selecting carefully with our other partners. How would you compare the current administration to the previous government? When I came, DOS were in power and they were, I could say, almost like the favourites because they were the first wave of reformers after Milosevic. So the change was pretty dramatic after last year, but we'll go with it. Things can't just go one way because you have to have the whole population behind you. That's the reason for these pendulum type changes. What's most important is to realise that nothing will be sustainable if it's not embedded into the minds of the people who vote for politicians. You might say that there are many people who have very good ideas, but to have enough such politicians voted into power requires a realisation in the minds of the people, in general terms; the nation as a whole. It's been announced that Finland's foreign trade and development minister, Ms. Paula Lehtomäki, is to visit both Serbia and Montenegro in March. Does this mean that tangible areas of investment have been identified, or is it more of a reconnaissance mission? I think we are still in the phase of reconnaissance. We had big delegations two or three years ago, but then of course the reality caught up. The climate has not really been the best because of the changes and the laws that are not yet ready. But also Djindjic's murder certainly had an impact, especially on the people who did not know the country yet. It's easier for those companies and countries that had already established relations here, or had had a presence here in the '80s. However, there were very few Finns here at that time and there are still very few now. There is clearly, however, a growing interest and that's really what we are banking on; that's the reason for the visit of the minister of trade and development…and also Europe - she now has that third responsibility, which involves mostly EU enlargement and all which that entails. When she comes she will really have a good delegation, not merely study the climate and opportunities, but also already hav-

investment. Moreover, the money channels will open up, which is very important because the donor money is only a drop. It is really the private investments that are the most important. Once the big private investors are here the demands for European standards will clearly be there, because otherwise these producers can't really export… Do you think Serbia and Montenegro is on the right track? I am absolutely convinced of that. The only thing is that the EU is impatient. We'd like to wrap this up once and for all and move on to the real challenge: Turkey; as well as concentrating on other issues like development and security within the Union. So we'd like to sort out things in Serbia & Montenegro, then Kosovo, and move on. You mentioned that you were in Pristina recently. Do individual countries like Finland ever develop unilateral standpoints on issues such as Kosovo and The Hague Tribunal, or do you take the lead from Brussels? When it comes to the Kosovo issue there are many factors and actorsin Brussels. There's the committee comprising members coming from each EU capital for each meeting. Then there's another committee that only convenes through our representatives in Brussels. Then there's Solana and his staff. Then there's the commission and their staff. So, basically, whatever Brussels or EU foreign ministries say is the same as our capitals are saying. But when Solana says something that's his opinion and the opinion of his office, presumably based on the feeling he's getting from state leaders, etc…

H.E. Anna-Maija Korpi talking to our Editor CorD | January 2005

Interview So is there point in Serbia lobbying individual European Union nations for support on Kosovo or will EU members always band together and say 'this is our collective standpoint'? Lobbying of individual nations in every capital is clearly possible. Send an emissary to heads of state or foreign ministers and argue your point. The only thing is that, when lobbying in this sense, you need to be ready to listen to the arguments, counter arguments and counter proposals and amend your position accordingly or propose alternatives. Then go out again and lobby again, and again, and again. Yugoslavs, and thus Serbs, know that so well. The country was so central to the non-aligned movement and that was exactly the way it worked. This fact scares Pristina because Belgrade has always been so strong in diplomacy… Of course, the Kosovo is an interim institution Government is not an acknowledged government. UNMIK is actually the power. Kosovo is not recognised as a national government because Kosovo is not a country; not a state.

just politicians.

Moving on to a lighter subject, Finland has a very rich culture and well-developed artistic scene. Is there much in the way of cross-cultural co-operation between Finland and Serbia & Montenegro? We had pretty close relations on an individual basis, up to the Milosevic era. Now I see clearly that when the time has come for these ties to be re-established there are a lot more links than I had realised. It is easy for Finns to travel here…Finnish diplomats based in Eastern Europe Romania, Bulgaria, etc. - always came to Belgrade to experience life and enjoy the city. I haven't been working on this area and, as I say, there is much more co-operation than I had previously H.E. Anna-Maija Korpi realised. In the '90s things didn't stop, but rather worked the other way because of all the people What's most important is to realise moving to Finland from here: not that nothing will be sustainable if it's only refugees and displaced people, but also professionals and not embedded into the minds of the artists. people who vote for politicians. You Almost two years ago the Nordic countries established spemight say that there are many peoco-operation with the Balkan ple who have very good ideas, but to cial states in order to gain good cohave enough such politicians voted operative relations between all Perhaps granting independfive Nordic countries and the into power requires a realisation in ence to Kosovo would set an Balkan countries, to work on difthe minds of the people… international precedent that ferent things. This has been might strengthen the independextremely active in the last six ence calls of the Basque sepamonths. So many artists - modratists or other similar breakaway provinces. ern, alternative and traditional - architects, musicians, graphics That is an argument. But at the same time, if there's really exhibitionists etc., have been here. It's been pretty extensive. As a deep-rooted will for independence amongst people nothing for Serbian and Montenegrin cultural activity in Finland, there can stop it. The condition is that it happens peacefully and is was an Icon exhibition staged because relations were established accepted by both sides. between the Finnish Orthodox Church and the Serbian Orthodox Church, though this was done outside of official channels. Now I think the most deep-rooted will is for money in pockets, we are planning to stage a very big Serbian exhibition in Finland rather than independence at any cost. in 2006, which will include works, icons and treasures from the That's right. It's not only independence. So you have to realAtos Mountain. ly ask the questions to find out why there is this deep-rooted need for independence: to do what? Is it threatening? And, if so, You mentioned earlier that you started your diplomatic whom is it threatening? Will independence really, in the longcareer at a time when it was particularly difficult for women term, be of financial benefit to the people of Kosovo? Would in the corp. Has the climate significantly changed over the they actually fair better as a part of the state union? But none of years? that can be addressed without face-to-face discussions. And Yes, remarkably so. I have really always been a feminist in while there are no face-to-face negotiations it is easier for both our service: none of our administrative officers, or departmental sides to stand fast to their respective opinions and not give anyheads, has managed to avoid me. They've certainly tried, but I've thing away. always managed to get my point across. They always said to me "don't worry. Time will take care of this." But I never felt like I Knowing the cyclical history of this region, it seems hasty had time to wait for this. However, it is true that time has taken to rush on to the issue of final status without some kind of care of this issue. Today, in most of the services of European effective truth and reconciliation process. Union countries close to 50% of those entering the career are now You're right. It will fester again here. The problems will women. Much less actually end up as ambassadors because withresurface. That's what happens. There are very good examples in every service there are certain barriers; the glass ceiling is globally of how long these kinds of things can go on if they are clearly still there. To pass a certain stage you still have to push not really tackled. But again, it has to come from the people, not and push in a professional way.•

CorD | January 2005

Interview Vladimir Gligorov, Economist of the Viennese Institute of World Economy Vladimir Gligorov, senior economist of the Viennese Institute of World Economy, says "Governments are the most responsible bearers of the project of European integration. However, what is of even greater importance is that there is a consensus within society regarding political targets. Once such a consensus is established it is transferred to the Parliament, which is extremely important because everything that happens with the goal of EU accession is about legislative activity".

Difficult year ahead By Dragan Bisenic, Photo S. Milojkovic

peaking exclusively to CorD this month, Mr. Gligorov said of the integration process: "The essence of the whole process is bringing a country that wants to become an EU member into accordance with EU regulations. The main campaigners for, and bearers of, that job are the administration and the Government. Within the Government, or in some cases even independently of the Government, and with a mandate approved by the Government, the negotiation team is created. "There is the main negotiator for the negotiation process and the whole process of the approach to the Union is contractible and negotiated, even when it does not concern the negotiation of membership, but rather the negotiation of candidature or any other contract. The existence of someone who negotiates on behalf of the country is always necessary. On behalf of the EU, the negotiator is, of course, the European Commission. To this end, some countries were farsighted when they established unalterable negotiating teams - the make-up of which does not change regardless of any governmental changes. That is a politi-

How do you appraise the latest moves in Serbia, where the Parliament has adopted the declaration of accession to the EU; and the proactive attempts of the Council for European Integration? Those are specific circumstances. It is the same in the Turkish case and it was the same in the cases of Slovakia and Bosnia & Herzegovina (BiH). Sadly, those are situations in which certain suppositions have to be fulfilled in order for the process to even start. In the case of Serbia & Montenegro, certain conditions have, firstly, to be fulfilled - those which precede any talks and any contracted relationship. Two conditions are of greatest importance: the first is the relationship between Serbia and Montenegro, i.e. who is the one who approaches the negotiations? The second is co-operation with internaThe most likely solution for Kosovo is independence, which will be tional organisations. Here, Hague Tribunal is the achieved with the condition that Kosovo becomes democratic and The crucial issue. European in its internal structure. That considers local self-man- This is not, per say, becaagement for Serbs and others, therefore for Albanians themselves. use of The Hague in itself, but, rather, it is a test of the cal body, or political organ, but it is important that it be indecountry's readiness to fulfil international contractual agreements pendent of the administration and that governmental changes do that have been signed. The contract with the EU will be of that not influence the structure of negotiations with the EU. same type. "In the cases where there is no consensus (that was not the Regarding The Hague specifically, there is nothing much to case in Eastern European countries that have joined to date, but talk about. It is clear what it's all about and what has to be done. it was in some previous cases), the whole thing is of a slightly difNo declarations will help in that. Specifically regarding the relaferent nature. In such instances it becomes a political matter and tionship between Serbia and Montenegro, this is very difficult and that depends on the majority's desire and, thus, those political it could prove impossible to go forward together because it parties representing that majority." remains unclear who negotiates on behalf of whom and who com-

CorD | January 2005

Interview prises the negotiating team. At present, Serbia and Montenegro are negotiating with the EU separately, though they will receive a mutual contract at the end. Regional issues remain unresolved. It has been announced that the Dayton Treaty will not survive until 2006 and the make-up of SCG, inclusive of Kosovo, has been brought into question. How do you think things stand there? The process in Kosovo will probably start next year, and that is the key issue in the region. At least in principal, the so-called decision on final status of Kosovo will have to be made and that will mark the route to the final status. In a year or two something will have to be done with the constitutional structure of BiH, mainly because BiH has to approach negotiations with the Union regarding stabilisation and association. BiH has to have one negotiating team, which means that it has to have the state's authorisation to do that. Then, according to the Constitutional Charter and, as I can see, according to the political mood too, the issue of Serbia & Montenegro comes next. All this has to be finished, approximately, before 1st January 2007, when Bulgaria and Romania will be accepted into the European Union and a date for the acceptance of Croatia will be set. This will probably be a time when the Union would like to close the issue of the Balkans; forever if possible. How do you think this issue of the Balkans - including Macedonia, Kosovo, Serbia & Montenegro and Bosnia - will be closed; what are the most likely solutions? The most likely solution for Kosovo is independence, which will be achieved with the condition that Kosovo becomes democratic and European in its internal structure. That considers local self-management for Serbs and others, therefore for Albanians themselves. That eventually requires a special agreement between Kosovo and Serbia regarding the special rights enjoyed by Serbs and others who live in Kosovo, specifically regarding religious objects and everything that is of interest to both sides. It considers that the Kosovo administration assume the obligation of responsible behaviour in international affairs, which means that, with the independence of Kosovo, practically all issues of further disintegration of the Balkans will close - at least those connected to Kosovo. With regard to BiH and changes to the Dayton Treaty or, we could say, the 'polishing' of the treaty: changes would be facilitated through the new Constitution or amendments to the current Constitution, which will go towards ensuring that Bosnia & Herzegovina harmonizes its institutions with the EU and sets off on the process of EU integration in the frame of the current borders. I would like to say that it is crucial that all European solutions for this region are without any changes to borders. How can Kosovo become independent without changes to the borders of Serbia? The borders will not change, only the status. What will that look like? The borders Kosovo had during the former Yugoslavia will now become the borders of Kosovo. The entities in Bosnia will disappear, will they not? No, that is the issue of the internal structure. There can be any kind of decentralisation. From the EU's point of view, it is completely irrelevant if entities are going to survive or not. I personally think that it would be better if they were suspended, but that is just my opinion. Does the independent status of Kosovo imply an eventual independent Montenegro? No.

But why would Montenegrins want to be less independent than Kosovo? That is their business. If they would like to be less independent than France, or any other country, it is absolutely their own business. Regarding Macedonia, we now have American recognition of Macedonia as the Republic of Macedonia. Does that have any connection with some desire to preserve the territorial integrity of Macedonia? It influences many matters. It is a signal to Macedonia of how America sees that issue. It is also a signal to those outside Macedonia, for instance the people in Kosovo, of how America sees that issue. Moreover, it is a signal to others that America recompenses its collaborators. Macedonia is an American collabora-

The threat of crisis Next year we can forget the easy spending of what little we have and it has already been estimated that Serbia & Montenegro could develop debt servicing problems in 2007? Of course. This is because the main tasks of transition, such as restructuring the public sector, have been postponed. That is where there will be problems. Those are not small things. In this country, 60 - 70 per cent of ownership still belongs to the state, not to mention that around 50 per cent of domestic product is spent by the state. That is an enormous sector. Everybody will be hurt, in one way or another, and that will happen in the next two or three years. The pay off of debts will depend on the growth of the export sector. Can we already rest assured that export growth will be insufficient? That is right, especially with such a policy. It is already clear that this will be relatively hard because this monetary policy will, if we carry on stretching it, incline to a negative effect. If there are no exports, then there follows a drop in imports or we will have to plan the restructuring of debts through two, three of four years. Those are the alternatives. If we did not succeed on simpler issues, will it be even harder with more difficult tasks? There are two ways of adapting to equilibriums, let me express myself technically. One is if you are able to do so in some gradual economic policy, and the other one is through crises. One is to realise that such a thing is not maintainable and, thus, to work on it. The best thing would be to decrease imports and increase exports. That considers a different monetary and fiscal policy. If that does not work the second solution is the restriction of imports. We used to have that, even while we were a socialist country. That started in a similar way: you cannot import a car, then something else, then the increase of import taxes, which are already being announced. My opinion is that this is too bad, but those are also measures which could prevent a serious crisis. The third possibility is that all these measures can fail to succeed, which is very possible. Such an outcome results in enforced adaptation. Enforced adaptation means strong devaluation at a certain moment and serious restriction of consumption in order to pay off debts. That is no different to a situation when you have to pay off debts and you did not make enough income to do so.

CorD | January 2005

Interview tor in Iraq, in as much as its budget allows. That is relatively small, but nevertheless, for America it is obviously not insignificant in a political sense. How would you assess the latest IMF reports on Serbia? The IMF did not accept the economic policy of Serbia and, above all, the budget within that policy, i.e. the fiscal policy created by this Government. The new Government is adapting to the realisation that the IMF is not prepared to accept their initial idea of expanding fiscal policy in the form of a bigger role for the public sector, or public expenditure in the stimulation of production and consumption, etc.… The IMF did not want to accept that, principally because it was expecting, as did indeed happen, that this would cause a great problem and the collapse of the external account. Consumption increased and, among other things, that equates to an increase in imports - and increased importation in a country that exports very little is a problem. Increased foreign trade deficits imply debt and Serbia has just started to get out of one moratorium and started servicing its debts and, therefore, does not have a clear position on the financial market. As such, it was uncertain how that could be financed without provoking a new crisis. And that is simply the view of the IMF on Serbian politics. Are we facing a tightening of the belt next year? The tightening of the proverbial belt is the smallest problem in the whole story. We are facing fiscal restrictions. The deficit, in itself, is not the problem at all. The focus on the deficit exists because they want to say that we cannot delay the problem with the deficit or the strategy and process of restructuring the public sector. That cannot be done in such a way. If you want bigger public investments you have to have cuts in some other places. If you want to build roads, you cannot have big wages for administration and you cannot have such high pensions… So, you make a choice. Usually, those governments which cannot make the decision to restructure the public sector head into debt. From there comes deficit. Instead of restructuring public expenditure, the same is basically being increased in order to maintain the existing consumption. That is the essence of the problem and that is the key issue. The tightening of the belt is only one element of that. This is the pressure to restructure the public sector in which the particularly big problems are big public companies and their efficiency. Everything within public services and public companies must improve in terms of efficiency and only then can we talk about investments. That is only one part of the belt tightening. The other part is that we have to work on monetary policy because inflation has appeared. That now jeopardises stability.

Vladimir Gligorov: Deficit not a problem in itself it expansion. Serbia is a sub-monetary state. There is no money here. This country needs a responsible fiscal policy. We did not have one in the last three years, and especially in the last one. A clever monetary policy which allows the liberation of the financial sector is necessary. Because of the Government's fiscal ambitions they are now going for restrictions in both fields.

Does that mean that neither Djelic nor Dinkic have led a responsible monetary and financial policy? Regarding Djelic and the former Government's fiscal policy, it was more or less based on the same principals as the current government, though the possibilities for financing the deficit were greater. On the other side, the IMF tolerated that in the first several years, thinking that the social pressure The IMF did not accept the economic policy of Serbia should be amortised after the fall of Milosevic in order to avoid the shock at the very beginand, above all, the budget within that policy, i.e. the fiscal ning. They were expecting that in a couple of policy created by this Government. The new Gover- years something would go in a different directhat we would do something with the nment is adapting to the realisation that the IMF is not tion: public sector, public companies, all those prepared to accept their initial idea of expanding fiscal wages… This Government practically continpolicy in the form of a bigger role for the public sector… ued Djelic's policy, even with more enthusiasm, demanding an active fiscal policy, but the income which was One of the reasons is the increased loans and the expansion of supposed to cover that was increasingly smaller or exhausted. The credit accounts. That provokes unpopular measures, such as limitsame company cannot be sold 50 times. The income from privatiing the possibilities and increasing rates. The other possibility is to sation is smaller, donations are smaller because we are no longer literally rationalize the approach to credit; to limit banks' investa country recovering from a black dictatorship and there are no ments so they cannot give loans for cars and real estate. That is the credit possibilities abroad. The country does not have an investsecond part of the restriction, which is worse than, fiscal issue. ment rating at all, has a very bad reputation abroad and cannot borrow any more. Therefore, regarding the fiscal philosophy, Will citizens feel that? there is not such a difference between Djelic and Dinkic.• Not only will they feel that, but it is not good not to have cred-

CorD | January 2005

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$10.5million project completed

tiveness of this forge in the future. "The production bottleneck has been eliminated and the section which is of decisive importance in our strategy of the placement of the product with high added value was modernised and our company is becoming competitive on the market". The old fashioned system of electronic

Revolving VISA card

Employees of US Steel Serbia have completed a project to modernise the system of electronic controls in the cold rolling mill. The project is said to be worth 10.5 million dollars. This project ensures that the production of the cold rolled sheet iron - production with high additional values - will be increased by a total of 180,000 tonnes per year. According to US Steel Serbia's General Director, Thomas Kelly: "This project is of crucial importance because it will enable us to make a big step forward in the placement of a product with high added value, which is most important for the competi-

CorD | January 2005

Faculty opened

tlas Group is one of the founders of a new private faculty of Tourism, Hotel Management and Commerce, which has been established in the Montenegrin port city of Bar. Speaking at the official opening celebration of the faculty on 29th October 2004, Deputy Montenegrin PM Miodrag Ivanisevic said that although the three main goals of the Government of Montenegro were economic reforms, state reforms and public administration

controls, which was encircled with the process of modernisation, was causing control interruptions in operating and technological limitations in the cold mill. These intensive interruptions in production were preventing the fulfilment of the projected production capacities. Kelly stressed that the major part of the

reforms, reform of education was also a key target. The curriculum and educational programme of this, the first Private faculty in Montenegro, has been compiled in accordance with the rules of the Bologna Declaration. Speaking of the motivation of the founders to open the Faculty in Bar, Mr. Zarko Djurisic, Deputy Manager of the Atlasmont Bank, said that the Atlas group has a longterm interest in developing tourism and commerce in Montenegro as priority sectors. He added that the Faculty is "an embryo of a future private university". Djurisic said: "Bearing in mind the expected needs for highly qualified personnel in the area of tourism, hotel management and commerce in Montenegro, previous practice of the developed tourist countries and

of those who make most of their GNP in transactions with the world, as well as the current state of our country, we have recognized the realistic need for establishment of the Faculty for Tourism, Hotel Management and Commerce". Professor Stevan Popovic, of the Montenegro University, has been appointed Acting Dean of the Bar Faculty. Prof. Popovic is a former Dean of the Faculty of Tourism and Hotel Management in Kotor and has also lectured at faculties in Podgorica, Niksic and Banjaluka. Insisting that graduates of the faculty would become "leading managers," Dean Popovic noted that, according to the Master Plan for Development of Tourism in Montenegro 'til 2020, around one third of about 75,000 people should possess a university degree.•

additionally produced cold rolled sheet metals is intended for export. He also noted that US Steel Serbia became the leading Serbian exporter in 2004. "Cold rolled sheet metals are the type of product which we intend to sell in increasing amounts", said Kelly. "So far, we could not produce this kind of product reliably, consistently and in sufficient amounts to meet customer demands. The demand for this product is very high on foreign markets." Kelly said that foreign buyers use cold rolled sheet metals for the production of household goods and electrical appliances, radiators and steel pipes used in the furniture industry. The cold mill was built in 1974 and the existing equipment was built in 1985. The section consists of five powerful mill flats lined up in tandem. Rolls of steel of 2 to 7mm in thickness are being reduced to a thickness of even 0.19 mm. The projected speed of processing is 1.980 meters per minute ((33m/s) and the projected annual capaci-

ties is 550,000 tones. Production on those levels was not maintainable before now. Kelly added that this process took six months and was completed with a 12-day work interruption at the end of November and the beginning of December. Mainly Serbian engineers, technicians, operators and managers worked intensively on this project. Depending on the phase of the project, between 15 and 20 people were engaged in the team.•

FRESH & CO.

NEXT - Export king The Serbian Investments and Export Promotion Agency - SIEPA, have voted NEXT's extremely popular raspberry juice the best export product of 2004. The Company has also been awarded the World Juice Innovation Award 2004 - the world-wide ranking prize for officially the best juice in the world. For the first time during this year, SIEPA has handed over the prizes to our most successful exporters, which, according to SIEPA, would add "historical" significance to this year's laureates. According to SIEPA Expert Committee members SIEPA Manager Jasna Matic, Chairman of the Serbian Chamber of Commerce, Slobodan Milosavljevic, Deputy Economic Public Relations Minister, Ljubisa Jovanovic and other distinguished economic analysts - NEXT RASPBERRY is "an absolutely innovative and unique product from our country which has, in record time, achieved fantastic results on the Western European and American markets and been selected, against a

tough competition, as the best export product." After receiving a series of prizes and recognitions for quality juices and design of packaging, as well as the prize THE BEST EUROPEAN, awarded to Fresh&Co. this year for "the most European Project in 2004", declared "NEXT - the best juice in the world" by the European Movement in Serbia and the First European House of Belgrade, Fresh&Co. has once again proved to be the producers of "a product for the whole world!"•

CorD | January 2005

New branch EFG Eurobank has been operating on the domestic market for over a year and in that time has achieved significant results, opening 11 branch offices in Belgrade and furthering plans to expand to other cities in Serbia & Montenegro. The new branch office, opened on 16th December in Free Zone Belgrade (Slobodna Zona Beograd), represents a significant strategic move, as it is the only bank covering the most important industrial and economic centre of

E-banking Continental Bank has launched a new ebanking service for citizens and, despite the name, Conline is no con. Users can now access personal banking information to check their current balance, view details of transactions performed during a stated period, receive monthly bank statement, check controls, place payment orders and access many other services and reports.

The new Conline service enables Continental Bank customers to access their accounts via the internet, telephone landline or mobile network connection, 24-hours-a-day, 365-days-a-year. The new Continental offer includes four packages: Conline SMS, Conline mail, Conline lite and Conline full, leaving clients free to choose the package that best suits their individual needs. The service has been available to dinaraccount holding corporate clients of Continental Bank for the past two years, and has proved highly successful. The scope of electronic transactions is constantly on the rise, reaching 20% of all corporate clients dinar transactions by the end of 2004. Continental Bank plans to broaden e-banking services for corporate clients in 2005 to include foreign currency transactions.•

CorD | January 2005

Belgrade. In the surrounding Slobodna Zona Beograd area are over 50 of the biggest international and domestic companies. EFG General Director, Dr. George Lychnos, and Slobodna Zona Beograd General Director, Marko Stojanovic, formally opened the new EFG Eurobank branch. Speaking at the opening ceremony, Dr. Lychnos said: "This new branch is small, but our hopes are huge. It is perfectly positioned to serve the users of the free zone, as well as all employees in this area. EFG EUROBANK will continue efforts to establish a commanding presence in all financial and society sectors of Belgrade, with one goal: to become the number one Bank in Belgrade." By opening the EFG Eurobank ad Belgrade

Silver ticket Austrian Airlines launched their Silver Ticket programme on 15th December. According to the airline, the new Silver

New partner Institute for laboratory diagnostics, "Hexalab" Belgrade, has signed a partnership agreement with German laboratories "Inter-lab GmbH". To mark the signing of the co-operation contract, Hexalab staged a gala-reception, which was attended by representatives of the Serbian Chamber of Commerce and the German Embassy to SCG, as well as laboratory experts and media representatives. According to Hexalab, the signing of the Contract between represents the greatest investment in the health protection system in the country during 2004. Investments have been earmarked for the opening of the most modern laboratory in Serbia & Montenegro, which represents for "Hexalab" - in its eleventh year of existence - a guarantee of its future development. The Contract will enable "Hexalab" to collect samples and send them by a special transport to Germany and other international reference laboratories for prompt receipt of analysis results. Thus patients will no longer need to travel abroad for results of rare and expensive tests for diseases like leukaemia, malign diseases and

branch office, the bank took over the great responsibility of servicing all the companies from the surrounding area, offering them a wide spectrum of banking services, in accordance with world standards. •

Ticket fares enable "full economy" passengers to enjoy all the benefits of Business class, including better seating, charge-free re-bookings, access to exclusive lounge areas, business class mileage points, advanced seat reservation, accelerated check-ins and security services. Silver Ticket fares include: Brussels - 665, London - 685, Copenhagen - 685, Gothenberg - 750 and Helsinki - 860.• other analyses belonging to the field of specific laboratory tests. "Hexalab" is now able to offer the widest possible spectrum of analyses, ranging from clinical chemistry, microbiology, virusology and endocrinology, which will be processed using the most modern, globally accepted methods, utilizing top quality and the most reliable laboratory equipment of the best producers with reactive agents of the same origin.•

Belgrade Atrium Offices Belgrade Atrium Offices is a modern, economic business building based on the most modern European standards, aesthetic approaches and functional solutions. The basic suppositions of the project can be summed up in several key words: the quality of life and work premises, comfort and communications. The investor is DURST d.o.o. Real estate development. The company is 100% owned by Mr. Klaus Durst and Mr. Wolfgang Vask from Vienna. An investment of design and know-how from Austria guarantees the application of the highest level of drawing and implementation of quality. The building has 7,200 square metres of rental space. Martin Kohlbauer, famous, internationally renowned architect from Vienna, won on

the competition with his idea, designing the introverted working surrounding for the 'tenants' of the business building. The total value of the premises is €11million. Atrium Consulting is in charge of the rental and management. During a visit arranged for media representatives, together with Chief Marketing Consultant, Romano Klotto, project

progress was presented, as was the appearance of the building, which is scheduled to be completed by spring 2005. •

Sponsoring sport On 22nd December, Belgrade's Colonial Sun sports centre hosted the official ceremony marking the signing of a sponsorship deal for the upcoming European Basketball Championships. The agreement was signed between representatives of SI & SI Group, as sponsors of the 2005 tournament, and EP 2005 - organisers of the 2005 FIBA European Basketball Championships. This agreement means that VODA VODA will, for the first time, be given exclusive rights to incorporate its logo into the official logo of Eurobasket 2005. The official ceremony was held in the presence of senior officials of the Serbian Government, the Republic of Serbia, the Basketball Federation of Serbia & Montenegro, and a number of distinguished businessmen and media representatives. A long-standing, successful co-operation agreement between the Basketball Federation of Serbia & Montenegro and SI&SI Group will continue in 2005, when Serbia is to host Europe's most prestigious sports event of the year.•

Newly Accredited H.E. Paulo Tiago Fernandes Jeronimo da Silva (Portugal, December 2004): Ambassador Extraordinary and Plenipotentiary. Ambassador Da Silva was born on 26th August 1951 in Lisbon. After graduating Law from Lisbon University, he began his diplomatic career as attaché of the Portuguese Ministry of Foreign Affairs in the Portuguese Embassy in Brussels from 13th September 1977. He then served as Third Secretary of the Embassy from 5th January 1978, then Charge De'affaires, from 1st august 1981 until 19th January 1982, and First Secretary of the Embassy from 13th October 1982. Da Silva became General Consul in Montreal and ICAO representative from 26th June 1989, before serving as Embassy Advisor from 8th June 1993. He has also held the posts of Plenipotentiary Minister, from 5th February1997, Plenipotentiary Minister of First Class, from 5th February 2000, and from 9th September 2001 until his arrival in Belgrade he was Portugal's accredited Ambassador in Sofia.•

CorD | January 2005

Amazing feats By Tanja Nikolic Djakovic

ast month Guinness World Records placed Vulovic's unenviable feat of survival fourth on the list of the top ten greatest records of all time: right behind the oldest woman in the world, the man struck by lightning seven times and the largest pizza ever made. However, being a sole survivor has not been easy for Vesna and even 32 years later she is still troubled by her fall: "Everybody thinks I'm happy, but they're wrong. I was much happier before I experienced that tragedy in which all 27 passengers and crew died except me. If it was not for that accident my parents would still be alive today, because the whole thing destroyed their lives too. Still, that was just not the day marked for me to die". The 1972 crash was the first in the history of JAT, but it was no accident. Ustasha emigrants (Croatian nationalists) claimed responsibility for the aerial explosion that caused the plane to slowly break apart and crash: it is believed that a handmade bomb was planted in the cargo bay of the plane at Stockholm Airport by Ustasha terrorists. The perpetrators were never apprehended.

Vesna Vulovic with Paul McCartney

Sole Survivor Former JAT stewardess Vesna Vulovic became an overnight celebrity of circumstance in the former Yugoslavia when she was declared one of the luckiest people on the planet after surviving an airline disaster that saw her JAT DC-9 plummet 10,160 metres (33,330 ft) following the suspected detonation of a terrorist bomb. Vesna, the sole survivor of the crash, broke both her legs and was temporarily paralyzed from the waist down; though she eventually made a full recovery. That was the first case of such a terrorist act and it astounded the whole world. While the world's public was celebrating the great survivor, intelligence centres were slowly becoming aware that this was a threat that marked the creation of the newest and cruellest form of terrorism. Only a couple of days before the crash, Ustasha emigrants had killed the then Yugoslav Ambassador to Sweden, Vladimir Rolovic. "I was informed that the bomb on the plane had been planted by Ustasha emigrants loyal to Miro Baresic, but none of them ware ever caught. That was a signal to terrorist organisations all around the world that they could follow that loathsome example. But the one above us punishes. "I have heard that Miro Baresic and all those who took part in that terrorist act were killed during the last civil war in Croatia. According to my information, only one of them managed to survive and he is somewhere in Argentina now", said Vesna. Further adding to Vesna's misfortune is the fact that 32 years ago, the then twenty-year-old stewardess was not even scheduled to work

on Stockholm - Copenhagen - Belgrade flight 364, but her name was mixed with another stewardess, also called Vesna. "We were waiting for the plane in Copenhagen. That was my first visit to Denmark. I was very happy because I always dreamed about visiting that country and staying in such a luxurious hotel as the Sheraton, where the crew stayed the night before the accident". "Many strange things happened before the accident. The captain was locked in his room and did not want to come out for 24 hours. In the morning, after breakfast, the co-pilot was talking about his son and daughter like nobody else in the world had children." When they finally reached the airport, the plane from Stockholm was late, which was unusual. "The crew was standing in the terminal watching the passengers getting off the plane at a distance from the gate, which was also unusual. That was a transit aeroplane and everybody, except mothers with children, was disembarking. The crew saw one passenger who was in a total panic. I didn't see him myself, but others noticed that something was wrong with him and he was very nervous. We concluded that something terrible was happening to him. Maybe he was the one who left the luggage with the bomb in the cargo

Vesna Vulovic Vesna Vulovic was born in Belgrade in 1949. She was always of strong build. Her father was an economist and her mother a sportswoman. Vesna was dedicated to sport from an early age. She is grateful to her parents for her "good genes" and forgave them for forcing her to return from London, where she went after she completed her first year at the language faculty. "I loved the Beatles and the country they came from. I wanted to live there no matter what. But my parents wanted me to be next to them and to complete university." During a flight back from England she was watching the stewardess. She was imagining herself in the uniform and thought: "That would be a good way to be in England often, close to my friends". "That's how I started to fly. In fact, I only flew for seven or eight months and still had not signed a contract when the crash

CorD | January 2005

happened. Only one year later they invited me to the ceremony of issuing the Guinness gold medal, at which Paul McCartney was also present. I told him that he was the most wonderful person in England and that I had become a stewardess so that I could meet him." "When I heard about the destruction of the twin towers in America, I could not sleep for several days. I was shocked when I saw that innocent people had suffered again. I cannot understand that civilians are being killed for someone's political ideas. I cannot even talk about the latest tragedy in Beslan, when innocent children suffered in that school. Man really has to have nerves of steel to watch all that. I experience that much harder than other people. I am too sensitive in regard to such things. I simply cannot believe, and I am a believerâ&#x20AC;Ś How it's possible that God approves of something like that?"

and never returned to the plane," wondered Vesna. Vesna explained that all crew members agreed that something strange was in the air, but they carried out their duties. She remembers taking up her position by the rear door, while the rest of the crew headed for the front. She watched the cleaning ladies tidying the plane and saw a few female passengers standing in the aisle. She also recalls hearing children's voices, but doesn't remember seeing any youngsters. "I don't remember anything at all after that," Vesna admitted. At an altitude of 10,000 metres above sea level, high above the then Czechoslovakian village of Srbska Kamenica, on the Krusne Hori Mountain not far from the German border, the bomb suddenly and violently exploded, ripping apart all connections between the cockpit and the flight commands and engine commands. The JAT DC-9 plunged uncontrollably towards the earth. Captain Ludvig Razdrih and his crew were just silent witnesses to the catastrophe which carried them to their deaths, helpless to do anything. From the instant of the explosion, Captain Razdrih lost all control of the plane. They did not even have time to put breathing apparatus over their faces. All 23 passengers and four crew members died in this accident, except Vesna. Even though the hypothesis was that she was at the plane's tail and thus protected, Vesna thinks differently. "I was in the middle part and I think I was serving meals. I had my apron on and when they found me later they thought that it was a dress. I do not believe that I was in the plane's tail." Theoretical reconstructions and investigations of the crash have never managed to fully explain what really happened and to what phenomenon Vesna Vulovic owes her very life. "They said the plane's tail hooked onto a rock and broke off. Then the aeroplane's heavy engine flew out through the back hole first and I followed it. We were, apparently, stopped by bushes and trees. But I do not remember anything," said Vesna. Vesna's luck continued by way of the first aid she received from locals, village paramedics and the very skilled, salutary intervention of the doctors in Srbska Kamenica; though she still has no recollection: "I don't know anything about that. I don't remember anything. It's like I was not on the plane at all". It was late afternoon, five minutes past five pm, and the village was in silence. Then the explosion suddenly rang out, followed by dull thuds that shook the community. When the villagers ran out of their houses to see what was going on, they could see bodies falling all

I'm simply a meteoropathâ&#x20AC;Ś But that sort of thing happens to people who did not experience a fall from 10,000 metres." around. Parts of the plane were found scattered thirty kilometres from the village. Local Bruno Henke was the first to arrive on the scene. Luckily for Vesna, Henke had been a medical officer of the German army and it was his experience that saved her life. Later that year, when Vesna came to visit the scene of the crash, Henke told her how the dead bodies were lying all around her. Next to her was the body of her colleague Bobana, and the decapitated corpse of another colleague, Boban, was lying over her. Vesna was half out of the plane, but her lower half had been squashed by the refreshments trolley. Crash investigators said the trolley stopped her from falling out of plane, but it also broke her spine. "While Henke was telling me how he took off his jacket to warm

me up, and tore apart his shirt to stop the bleeding from my arms and legs, I was constantly crying. He showed me the scars on his arms, which were made by the metal tips from the container he was tearing apart with his bare hands," said Vesna. Returning to the scene badly affected her, but Henke had comforting news. Only two months after the accident Henke got a granddaughter whom he named Vesna in her honour. Sadly, our heroine visited Srbska Kamenica on the 20th anniversary of the crash and found that Henke had died. "I will never forget him. He is the one who gave me the first aid, took care of me and ran for help. If he'd have made just one wrong move I would have been dead." Vesna lay in hospital clinically dead for four or five hours. She does not remember waking, nor asking her mother if she had had an accident while skiing in Slovenia. She does not remember that straight after that she asked where her cat and dog were. She was transferred to Prague where she had a spine operation. "I was again lucky to end up in the right hands", said Vesna. Doctors in Prague performed an extremely complicated procedure on Vesna's contusions, brain concussions, internal cranial bleeding and spinal fractures in three places. Vesna only remembers that it was dark when she awoke in the unfamiliar surroundings of Prague Hospital's intensive care unit a month later. She realised she was in a hospital bed in plaster cast and she immediately called for assistance. When the doctor came, Vesna apologised for disturbing him and asked for a cigarette. A few days later the Yugoslav Consul in Prague brought Vesna some domestic newspapers and it was then that she first discovered she was the sole survivor of an horrific air disaster. "That was a new shock for me. I could not bare it. They added morphine to my medication because, in such a state, I could not cope with my guilty conscience. Even these days I hardly ever talk about the destinies of all those people who died. I think partial amnesia has protected me so I can still live with it all," said Vesna. Despite all the trauma of the crash and the circumstances, Vesna did not develop a fear of flying. Vesna recalls: "the plane was waiting for me and the doctors at Prague airport. Before we set off the doctor was insisting that I have a sedative injection, but I said "that's out of the question. I can hardly wait to get on a plane again". Upon arrival at Belgrade's Dragisa Misovic hospital, Vesna was given a private room and armed policemen stood guard 24-hours-aday. Entry was forbidden to all but medical staff with special permits and her immediate family. Security was so tight because of the fear that Ustasha emigrants would attempt to kill the only survivor and, thus only witness to their crime. Vesna did not appreciate the protection: "It was like being in prison for three months. My requests for my friends to be allowed in were futile". Just six months after the crash that broke her spine, Vesna was up, on her feet and planning a summer holiday in Budva. By September that same year she was back at work. Remarkably, she wanted to fly again. However, JAT management told her that, due to the publicity she had provoked, she could not work as an on-board stewardess. She accepted a position on the ground. Vesna lost her JAT privileges for being associated with the Serbian opposition during the '90s and Milosevic's JAT management repossessed her one-room apartment. This 70s survivor is now a pensioner living alone in Belgrade in a flat she inherited from her parents.â&#x20AC;˘ CorD | January 2005

International trade

Protecting quality By Zoran Panic

The Agency for Reconstruction and Development, with the support of the European Union - under the auspices of the support programme for Eastern Serbian municipalities - staged a promotion of a strategic action plan for the Serbian municipality of Pirot recently. At the closing of the successful event, it was suggested that Pirot's producers should seek patents for at least five of their original products. protection of geographical origins will also be carried out. For cheese the action is already under way. For rugs it has been completed, while for other trademarks it will start in the near future." Pirot's famous rugs are already protected. According to Radmila Vlatkovic, art historian and president of the commission for manufacturing control and production of Pirot's rugs, the report of geographical marks of the origin of Pirot's rugs also protects the special characteristics of the rugs, their material, production methods and quality specifications or, more precisely, certain standards that manufacturers have to meet. She said: "Those standards include the structure of the material, the fineness of the wool, warp and weaving, the stability of the colour and the stability of washing. The report also contains an album with supplements and the commission has found and propeaking at the event, trademark team consultant Davor tected 96 patterns and names for Pirot's rugs, as well as 125 details," Sekulski explained to Pirot's producers: "Rugs, local firm she continued: "The details are related to the borders, edges, intercheeses, pottery products, mineral water, lamb and local nal and external chenille and other parts of the rugs. Moreover, the sausages are all products that should be patented as trademarks. report contains a description of the patterns with all the specifics, as Such products originating from this area should be protected well as a colour card with those colours that are in use." and, in order to achieve this, a body should be formed to inform The mark of origin, "Pirotski cilim", relates to those rugs and assist people in the domain of original trademarks. These manufactured in this municipality. As such, Pirot's rugs are finaltrademarks would then form the backbone of the area's further ly protected from all misuse and copying because the patterns, development". shapes and handiwork methods are protected by the trademark. On the basis of Sekulski's comments and an initiative of the If only there were rug makers as there once were, in the old expert team of the support programme for Eastern Serbian munic"golden times", when the rug industry had Pirot's famous rugs are already protected. According 700 weavers who wove famous patterns for to Radmila Vlatkovic, art historian and president of western markets too. As regards the protection of cheese as a the commission for manufacturing control and pro- trademark, those interested are the Dr. Obren duction of Pirot's rugs, the report of geographical Pejic Milk School and the Pimlek Milkman which comprises several dairies marks of the origin of Pirot's rugs also protects the Association, manufacturing cheeses. Around ten private special characteristics of the rugs, their material, cheese makers work in the Pirot district, of which five - including the Dr. Obren Pejic Milk production methods and quality specifications School - are based in Pirot itself. All together they process around 15,000 litres of milk per day. ipalities, the committee for protection and development of Pirot's Milk School director, Milana Velickovic, explained that the trademarks was established. Local municipal leader, Vladan school's workshop processes around three tonnes of milk per Vasic, said the role of the committee would be to co-ordinate varday, 30 per cent of which is made into firm cheese, sheep's ious municipal commissions, the Patents Bureau, Intellectual cheese and mixed cheese. Students, teachers and six milkmen Ownership and interested producers. work in the school's workshop and their products are available Vasic announced: "In co-operation with this committee, the

CorD | January 2005

on the market. This educational institution is making serious this school fulfils all the conditions and is prepared to meet the preparations to protect Pirot's cheeses, for which Pirot is famous procedures for receiving the trademark. She reminded us of the both at home and abroad. gloomy fact regarding the fall in the number of sheep on the Stara According to Velickovic, "There is a strictly defined legislative Planina slopes. "Thirty years ago there were around 140,000. procedure and conditions, which have to be fulfilled in order to Today only around 30,000 sheep graze on the mountain." receive the trademark, such as your own production, manufacturing conditions and product quality". She For the time being only Pirot's rugs are protected added that some cheeses currently sold on the market as a trademark, though there is a genuine opporunder the label of Pirot's cheese are not even close to the original product, neither in terms of quality, nor meth- tunity for cheese to receive similar protection. ods of production. Mrs. Velickovic said the school co-operates with the Bureau for Denic said: "Firm sheep's cheese produced in the Pirot region Patents and Intellectual Ownership and is in possession of the was a real delicacy on dining tables around America, to where it was report detailing how to protect cheese as a brand. The cheese exported. Pirot's Mlekara, which is now closed, exported firm cheese made in their workshop is manufactured in a traditional way. In and white cheese for the last time in 1986 or '87. That was a high order to receive the trademark, a certain quality has to be met, quality cheese from the processing centres in Stara Planina. which is inspected by expert institutions - the Agricultural Faculty Americans especially requested the handmade firm cheese produced and the Veterinary Institute. in centres such as Dojkinci, Rosomac, Gostusa, Velika Lukanja and Zoran Tosic, owner of Visocica private dairy - a Pimlek Topli Do. There is nothing like that anymore. Those processing cenAssociation member - said that his dairy is also seeking to protect tres were closed and there is nobody to look after the sheep on Stara Pirot's firm cheeses as a trademark. He told CorD: "We have estab- Planina's pastures". She added that this cheese was exported lished a commission for the creation of a proposal. Our wish is to through Greece to America even before the Second World War. help all interested producers who would like to protect their For the time being, only Pirot's rugs are protected as a tradecheese as a trademark. A joint presence on the domestic and for- mark, though there is a genuine opportunity for cheese to receive eign market is our chance." similar protection. However, the chances that the area's lamb will Some time ago Pirot was a town of milk. Flocks of sheep grazed receive similar protection are slim, largely because there are fewer on the Stara Planina (Old Mountain) slopes, providing inexhaustible and fewer sheep and shepherds on the vast pastures of Stara sources of good quality milk for making firm cheese and other dairy Planina. The small numbers of people who remain in those vilproducts for which this area is famous. In every mountain village lages are elderly and struggling to care for themselves, never mind there was a milk station. In the last twenty years there has been a the sheep. Those identifying this as a possible area of commercial marked decrease of sheep flocks on Stara Planina; the villages have profit see this fact as both a positive and a negative: the lack of become deserted and the milk stations have closed down. potential workers is a disadvantage, but the sparse population Head of the milk school workshop, Andjelka Denic, said that lessens the pressures of competition.â&#x20AC;˘

Culture

U.S. CORNER IN BELGRADE

America does not actually own a street corner in Belgrade, but rather a library in downtown Belgrade called 'The Corner'. This American-style lending library was established with the aim of enhancing mutual understanding between the U.S. and SCG.

By Maja Vukadinovic, Photo Andy Dall

ccording to American Corner's manageress, Nada Arbutina, the library offers information, in various forms, about American culture, as well as boasting a wide selection of American books, videos and CDs; internet access, lectures and other programmes. If one is seeking a way to get to know America without leaving Serbia, a visit to the American Corner is the prefect answer.

A special Department of the Corner is dedicated to those thinking of continuing their education or specialisation in America, as well as those who would like to improve their knowledge of the English language (U.S.). One can leaf leisurely through American magazines, read encyclopaedias or books on various topics, surf the sites of prestigious U.S. universities and brush up on one's knowledge of U.S. English. After a visit to the Corner it will become clear that America is closer than you think. Belgrade's American Corner is located at 23-25 Svetozar Markovic Street, near the Yugoslav Drama Theatre. The inconspicuous looking office building that houses the library can easily be missed if one is not paying attention. The U.S. has established 25 similar 'Corners' in Russia and

CorD | January 2005

SCG now boasts four: the first was opened in Nis, then Belgrade, Podgorica and the latest was opened a few months ago in Novi Sad. The American Corner - Belgrade, which officially opened its doors in 2003, was established as a result of co-operation between the Belgrade City Library and the U.S. Embassy's Public Operations Department. The American Embassy financed the complete renovation of the premises, providing furniture, technical equipment, books, CDs and advertising material, as well as arranging staff training. More than $55,000 has been allocated for the entire project. Speaking at the opening ceremony for the Centre, previous U.S Ambassador to Belgrade, William D. Montgomery, said that the American Corner in Belgrade symbolises the re-establishing of relations between the democratic governments of Serbia & Montenegro and the USA. In order to start getting to know America, it is enough to bring along your ID card and one photo. There is no membership fee. The Corner is open weekdays from 10am to 4pm. A slight introduction can be performed by sorting through pages of American daily newspapers that are received with just one day lag (The Herald Tribune Intl.), and there are also general interest periodicals and specialized magazines, such as Time, Newsweek, Business Week, Readers Digest, Art in America, Rolling Stone, Scientific American, National Geographic, Foreign Affairs, PC World, Columbia Journalism Review, etc... For those who would like to learn something more, or expand their knowledge in a specific field, there are some 1,500 books and publications available from the library. Users can access the book-fund of the City Library, as well as the newest and most different publications of American publishers.

International Academic Centre opened A new International Academic Centre was opened in Belgrade in mid-December, thanks to the organisation of the Public Operations Department of the American Embassy in Belgrade. This educational Centre, sponsored by the American Embassy and the State Department, is located at 19 Palmoticeva street. The programme offers students and lecturers all information pertaining to studies on American Universities. According to Elizabeth Chung, manageress of the Centre: "a huge library is available for students and the Centre's staff will assist in acquiring information regarding various Universities, as well as assisting students in all phases of applying to American High School Institutions. Anyone interested throughout Serbia & Montenegro can receive answers to all questions that interest them and find appropriate information through the interactive web-site". The International Academic Centre is also set to organise preparatory courses for passing necessary entrance tests for studies where lectures are given in English.

An abundance of literature at “The Corner”

According to Ms. Arbutina, "Social sciences have been predominantly presented and most of the literature can be found for students and lecturers interested in Law, Economics, Diplomacy, American Literature and History. One can also read the Encyclopaedia Americana, as well as publications of the Library of America, featuring all significant American authors, reference books from pop-culture, encyclopaedias of fashion and jazz, as well as the famous Rolling Stone Encyclopaedia of Rock & Roll. There is a wide selection of publications on the topic of American theatre, dance and music, schooling and education, democracy, human rights, U.S. economy and trade, terrorism and its consequences, agriculture and technology...Literature books can be borrowed for a seven-day period. The American Corner possesses a rich fund of computer multimedia. Among other items available in this format are: Encyclopaedia Britannica 2003 Deluxe Edition, MS Encarta, American Presidents, Origin of the Constitution, American History Explorer and the U.S. Code...Serbian language software has been represented in smaller measure. Modern technology fans would be delighted by the fact that they can use the Internet here on two terminals, utilizing so-called hi-speed connections. A special Department of the Corner is dedicated to those thinking of continuing their education or specialisation in America, as well as those who would like to improve their knowledge of the English language (U.S.). Twice a month there is a

conversation course led by Charlotte Ozuna. According to Ms. Arbutina, there are also pre-programmed occasional lectures on American life and culture, held by American University professors. There are also photo exhibitions, like the one opened in mid-December - "Christmas homes: Photographs of Boston homes for Christmas", authored by Aleksandar Trbovic. If you still haven't discovered this unique Corner in the heart of Belgrade, do so in the New Year....You will find an abundance of useful information, expand your vision and gain new impressions of America that are much more verifiable than those gained by watching Hollywood movies.•

Arts

Book ahead By Tatjana Njezic, Photo Mirjana Kotlaja, S.Milojkovic, Andy Dall

The last literary-industry year in Serbia will be remembered for four significant happenings: the story of so-called "newspaper stand publishing"; the noteworthy hodgepodge regarding introduction of the notorious VAT; the case of renowned writer and NIN Award winner Radoslav Petkovic, who was arrested on suspicion of approving unfavourable contracts in his capacity as manager of the Institute for Text Books and Learning Kits; and the publishing of over 5,000 new titles.

ntroduction of the "newsstand book" action - led by Narodna knjiga (National book), publishing house Politika, News with a Spanish Co operant and Novi Sad daily Dnevnik - saw around a hundred titles, printed in hardcover format with stylishly decorated covers and set prices, go on sale at newsstands across Serbia. The large number of printed copies, sales and media interest generated by the action confirmed that that the Serbian public is still interested in the 'right book' and that the low standard of living and relatively high prices of rare book shops is hindering the majority of readers in their pursuit of literature.

Vasa Pavkovic

Radoslav Petkovic

According to Vasa Pavkovic, writer and literary critic, the "newsstand book" action is mutually beneficial. Pavkovic said: "Primarily, due to its renewal of interest in fiction and the total effect of providing Serbian readers with very valuable books for a little bit of money, this action was undoubtedly the most important project in 2004, regardless of the resistance and lack of understanding on the part of publishers". The truth is that the project has highlighted a dilemma with regard to the small percentage of contemporary domestic writers figuring in those titles. But, actually, that is a consequence of otherwise poor interest for domestic writers because only a few pub-

CorD | January 2005

lishers remain interested in their works. These publishing houses include, primarily, "Narodna knjiga" and, to a much lesser extent, "Rad", "Prosveta", "Stubovi kulture", "Stilos" and a couple of smaller publishers. Several publishers have continued to reshape their editions and, in our opinion, "Geopoetika" provides the best example of thoughtful policy. However, objections to the "newsstand book" project have been numerous. One such objector, literary critic Gojko Bozovic, argues that the entire notion is based on unrealistic expectations. He said: "Printing books in unrealistic circulations and basing their sales on unrealistic prices, besides inclusion of social game elements, directly endangers the publishers that are committed to their work and are trying to ensure the survival of certain endangered types of literature on the market. Look at the books published by the big media. Those are almost exclusively novels, the rights over which have not been taxed. Should publishing of poetry or stories, dramas or essays, be considered as not belonging to the cultural mission?" Another disputable point of Serbian publishing, as noted by Bozovic, is a lack of capital works, which is a logical result of overall conditions. This, according to Bozovic, is because to be a publisher in Serbia during the time of transition means constantly facing new obstacles and challenges, while the previous obstacles and challenges remain unresolved. According to the critic, "much has been expected from the Publishing Act. However, not only has it not been enacted, but public discussion on it has been cancelled and, thus, nothing has been done to eliminate disloyal and monopolistic behaviour on the market, let alone the repercussions on the publishing industry itself. "And so we have reached a situation whereby publishing in 2004 has not been, apart from other things, marked by regular publishing efforts, new books of domestic or foreign authors, but a few marketing-related actions that are school-examples of disloyal competition and monopolistic tendencies." Yet, notes Bozovic, a number of excellent domestic works of literature, as well as foreign translated works covering history and theoretical approaches, were published in Serbia during 2004. "If one makes a judgement based on the kind of country in which we live, then we would conclude that it is a pleasant one. Unfortunately, this would be incorrect", he concluded.

The seemingly endless hullabaloo regarding introduction of value added tax (VAT) is finally drawing to a close, with the tax to be introduced nationwide as of 1st January. Though the tax has proved a point of contention among many circles, it has actually served as a factor uniting otherwise disunited publishers. Namely, a group of publishing sector representatives jointly contacted Serbian PM Kostunica in an attempt to "direct water towards their watermill" and persuade the "hesitant and uninformed" Premier to approve zero VAT rates for them. This, according to the group, does not equate to avoiding VAT payments during the production process (18% on paper, graphic services, etc.), but rather avoiding circumstances by which they would "have to" increase the price of their final products. Thus, a book worth 100 dinars would cost 108 dinars. To this end, the International Association of Publishers sent letters on 7th December to Serbian PM Kostunica, the Serbian Culture Minister, President of the National Assembly and the Serbian Finance Minister, calling for approval and introduction of "zero VAT rates". Similar zero VAT rates for the book market are in operation in five EU member states and the introduction of VAT elsewhere - for instance in neighbouring Croatia - is believed to have almost completely ruined the publishing industry and has, as such, been amended to zero rates. Ensuing negotiations between Government representatives and the publishing collective resulted in the government offering two options: the acceptance of eight per cent taxation with the right of deduction from previously paid 18% tax; the right to apply for zero rate with no deduction rights. Considering that the agenda of the Assembly is fit to bursting, the odds that the issue will be addressed before April 2005 are slim. Thus, in all likelihood, the issue will languish unattended for some time to come. Writer Miroslav Josic Visnjic commented that the 'newsstand book' - VAT debacle was akin to a troubled marriage. "The Government will not survive, but I hope the book will survive to remarry", said Josic Visnjic, adding that a novelist is paid a mere â&#x201A;Ź1,000 for authoring a novel, while - according to his sources deputies of the SCG State Association receive the same amount as their monthly salary.

A group of publishing sector representatives jointly contacted Serbian PM Kostunica in an attempt to "direct water towards their watermill" and persuade the "hesitant and uninformed" Premier to approve zero VAT rates for them. The arrest of NIN Award winner Radoslav "Vava" Petkovic has also sent shockwaves through Serbia. Those who have familiarised themselves with the case have said that the tragedy of his incarceration is twofold: firstly because there exist certain questionable omissions from the legal procedure, and secondly - perhaps morally they note that this entire affair is taking place in a country where confirmed criminals and war crimes suspects walk the streets with heads held high or cruise the roads in luxury cars. After Petkovic's release on bail, following his decision to defend himself, the acclaimed writer said acridly that his days spent locked away would, in one way or another, be depicted in his future literary works. According to official statistics, 2004 was an extremely prosperous year for the print industry, with over 5,000 titles published nationwide. This fact is, in and of itself, evidence of the tenacity of the publishing sector and its ability to prosper even in troubled times. Of all the books published here in 2004, perhaps the translated version of Daniel Goleman's "Destructive Emotions", published by Geopoetika, is of the greatest need in Serbia. The work, based on Goleman's one-to-one discussions with the Dalai Lama, details revealing experiments showing the subtle, but ultimately ferocious, threads of destruction that begin with individual dislikes and lead to the waging of war, and how they can be transformed to have the opposite effect. It seems that, at least in this region, such a book is a 'must read'.â&#x20AC;˘

Interview

Star reborn Sloboda Micalovic, actress From the moment that director Milan Karadzic suggested that I perform in Stevan Koprivica's play "Three Sorellas" I have been quite excited. Since "Kostana", where I replaced my colleague Milena Raznatovic in the Yugoslav Drama Theatre, nobody has remembered me and offered me a role - so said young actress Sloboda Micalovic, speaking exclusively to CorD this month.

By Zeljko Jovanovic

n acclaimed young actress, the story of Micalovic's latest project began for her last summer in the Montenegrin resort town of Tivat, during filming of the television series "Mixed marriage". She explains: "At that time Milan Karadzic showed me a house which, according to a local legend that lives on to this day, used to be the home of three sisters. The three sisters all fell in love with the same sailor and would sit day after day beside their own windows awaiting his return." Alas, the mariner never returned to Tivat. "When the oldest sister died, her siblings bricked up the window in her room. When the second sister died her younger sister bricked up her window. So, today only the last window remains intact because nobody was left to brick it up when the youngest sister died". It is this legend that writer Stevan Koprivica adapted into the latest drama starring Sloboda, "Three Sorellas", which has been playing to sell-out audiences in Belgrade's Zvezdara Theatre since last month.

ly different. I am freer, more modest and patient and am much closer to the youngest sister, Bjanka, than to Rosa. However, this role gave me the chance to finally crush that barrier within and encouraged me to realize that it's not such a big deal to do something that you really want to do.

How much did your visit to the source of the legend influence you and alter your attitude towards the character you play? I had envisaged the whole situation differently; I thought it somehow more like a fairytale than it turned out to be. In my head it was more like a fable born from a fear of invoking ghosts, which is the method used in the play to conjure the sailor. I constantly felt as though I should eliminate some burden from myself, particularly because the relations in that house, between the three sisters and their brother, were extremely patriarchal.

What did it mean to you to play the role of Kostana, considering your southern ancestry? I always wanted to play that role. It was my greatest wish as an actress. That is probably to do with my roots: we see the works of Bora Stankovic and Stevan Sremac as 'our' literature; belonging to us more than others. Besides, I love to sing and I sing well, so the parts of the puzzle fell into place. The part of Kostana does not require an actress who sings or moves on stage or knows the principals of acting though, interestingly, one can show so many of one's abilities as a performer in such a role.

Was it your choice to play rebellious sister Rosa or were you assigned to the role? Rosa is a completely different character to me. We may be alike in terms of energy and temperament, but our attitudes are complete-

CorD | January 2005

Is it possible for actors to really feel the essence of a character they are playing inside out? Absolutely! I have genuinely succeeded in figuring out the way that woman thought, what her aims were and what she aspired to. Even my body was against it in the beginning, but then I finally managed to adopt to that state of being and I had the impression that my heart even began to beat in a different way. Something was released from within and that alleviated my inhibitions. However, this role will not change me even though I feel better in this skin as Rosa. I was like an exit-less room before and I think I succeeded in changing myself a little bit, even in my private life.

How did you did handle the sudden, massive popularity that struck you as a result of your role in the period drama Zona Zamfirova?

That was terrible really. It happened overnight and was hard for me to cope with; to stay sober. Luckily, I was surrounded by people who held me down and kept me from soaring off into the sky. For a young actor, great popularity is a dangerous precipice that's difficult to resist. All of a sudden I started looking at myself in the mirror as if I was more beautiful and that was when it dawned on me that something was wrong. Still, my work on that film was wonderful. It opened a completely new field for me and provided me with new possibilities and insights. At the end of the day, it was my first appearance on film because I hadn't worked on any student film during my studies. They seemed to think my face was more for theatre. Excluding Zdravko Sotra's "Pljacka Treceg rajha" (Robbing of the Third Reich), you were not approached to start any new projects after Zona Zamfirova, which was the most watched Serbian film ever. Everything is strange in Serbia, even that. After "Zona", neither myself nor Katarina Radivojevic were asked to star in another film. I don't know how to explain that. It seems that some people in the industry make divisions like 'this actress is for movies, this one for theatre' without making any insights into the personality of an individual and their potential. It is terrible that nobody has the courage to commit to a young actor, take a risk and believe in them. I don't know if that's going to change, but if it stays that way young actors will remain out of theatres. Most of our bigger theatres - the Yugoslav Drama Theatre, Atelier 212 and even, to an extent, the Belgrade Drama Theatre, are more or less closed to young actors. Managing to infiltrate there is a real accomplishment. I'm looking forward to the opening of the musical theatre, Theatre T, because I hope to secure a role in a musical there.

Regardless of calls from the theatre, your popularity recently increased thanks to your role in the television series Mixed Marriage. That kind of popularity bothers me purely because of the theatre. I'm afraid that my chances of working in theatre will slip away just because of my popularity and I actually prefer the theatre to television and film. When you shoot a film you're in it from one sequence to another and the moment filming ends it's all over. The theatre, on the other hand, is adrenalin and life and I really enjoy it. When I wake up knowing that a play will premiere that evening I am happy all day. How are you planning to secure more theatre work? I'm preparing a play for graduation with Katarina Radivojevic, which we should complete next spring. A year ago I tried to put together a play with some colleagues and we failed. Some older colleagues warned us that it is impossible here and they were right. However, we are motivated again because of the Academy and I believe we will succeed in preparing our graduation play and, if we are lucky, we will transfer it to one of the theatres. Can a young actress survive from acting work alone in Serbia today? If one is lucky enough to be constantly working and does not think about buying a flat or a car, then it is possible to survive in acting. If we compare domestic actors with the stars of the hit U.S. series "Friends", which, technically, is incomparably superior and has achieved global success, the picture becomes clear. They are paid one million dollars each per episode, while I receive miserable royalties. One can live from engagement in the theatre, but only if one works each and every evening. Still, that money will just cover the basic needs of clothing, food and going out.â&#x20AC;˘ CorD | January 2005

Interwiev

Spanish Story It is common knowledge that extra quality is required to enter the Spanish sporting market - Europe's top quality sports market. It is also widely accepted that every foreign sportsman must be much better than the domestic players. However, it is a hundred times harder to achieve fame as a foreign journalist in Spain.

Vladimir Stankovic, PR Manager of the Euro Basketball League (ULEB) By Milan Djordjevic

Stankovic interviewing Juan Antonio Samaranch

After completing his senior school education, Vladimir left Zajecar to seek his fortune in Belgrade. He explained: "I wanted to ladimir Stankovic is a glaring example that even a journalenrol in journalism at the Faculty of Political Sciences, but I failed ist can indeed achieve such recognition. For more than the entrance examinations. So I enrolled at the Philological three decades he has pried open almost every door in Spain Faculty. I studied and kept my eyes open for a chance to work. and elsewhere. It has been as though he was destined for such During the second year of my studies a chance arose to work for success because, somehow, he always managed to be on the track "Vjesnik", from Zagreb, as Belgrade reporter. I worked there for 10 of important news; one significant step ahead of all the others. His years, until 1979. That period means a lot to me because I watched exclusivity was his greatest pleasure, but now, as Manager of nothing but sport each and every day, building relationships and Public Relations for Euro-League and the European Basketball coming out of anonymity". Leagues' Association (ULEB), he is not authorized to have it. After that he moved to a magazine with a title apt to his life After a career of journalistic odyssey all over the world, with Borba (Struggle). During dark times for the Serbian people, many thought that Stankovic was on the "In Spain a journalist is respected on the basis of his ability to wrong side, while he was actually on the right side. But before provide exclusive news. I had a little bit of luck and a little bit of always that "struggle" goes the story of premonition in that respect. While I was still in Belgrade I found "Borba": "I was invited to work for out some important things, like the arrival of Bozidar Maljkovic "Borba" by the late Marko Lolic, in Barcelona in 1990, or the news that the President of Real, who was then the Editor in Chief. I Ramon Mendosa, would extend the contract with Radomir Antic... spent the next eight years as Sports Column Editor of Borba, before takhis wife Gordana he has anchored between Sardinia and Sicily ing a one-year sabbatical at "TIM", which belonged to "Sport" (those are the names of two streets in Barcelona, boundaries of magazine. During October 1989 I established "Kos" (Basket) magthe Deputasion Street in which he lives). At this "exotic" place he azine within "Borba", a project of which I'm very proud â&#x20AC;Ś Then agreed to tell "CorD" his life story. the political turmoil started and we had a Yugoslav concept: all the Vladimir said: "A saying of Mr. Miroslav "Miro" Radojcic should best basketball journalists used to write for us, from Triglav to be framed and put on the walls of all editorial offices: "Everything is Djevdjelija". easy in journalism, except writing". We all loved to read his writings. The key move followed: I'm happy and proud that he was my friend and that he accepted me "By mid-1991 I came upon the idea of moving to Spain. I have at the beginning of my career in the mid-seventies. We were joking to stress that my motive was strictly professional. The year 1992 on many travels and played cards. He was full of spirit and knew was approaching and I wanted to experience the Olympic Games how to make jokes of himself and others". Asked what lured them into journalist waters, Vladimir Medals replied: "Many wander into the profession. That is not my case because ever since I was at primary school I claimed that I would "Of the 14 gold medals won by Yugoslavia, I directly witbecome a sports journalist. I always trained for that eventuality. nessed 12 of them! I only missed the first gold in Barcelona Maybe that was the influence of my family tradition. in 1973 and in Manila in 1978, but as a consolation I "After the Second World War we lived in Zajecar. My father "observed" the Olympic bronze in Los Angeles from 1984 was Manager of Radio Zajecar and then Editor of local newspaper and the Atlanta silver in 1996. I also saw the abysmal 11th "Timok". I paid him occasional visits at work - more often than place in Athens and the 7th place finish in the European not we went to the printing shop, usually on Thursdays, because Championship in 1983 in Limonge and Nantesâ&#x20AC;Ś" on that day they set the newspaper's pages".

CorD | January 2005

in Barcelona and see if I could work there. I had arranged with "Borba" to go there as a reporter, but I sought additional work for myself because I was aware that I could not live from "Borba". I wouldn't dare to undertake that step if it wasn't for back up by a reserve option of "El Mundo Deportivo", for which I had been reporting for over ten years. That magazine accepted me more than cordially. Its Manager surprised me during the very first interview, saying: "You are our best reporter in Europe and you deserve our help". As a journalist who had already achieved envious glory in his own country and for whom many of his colleagues knew, even some trainers and sportsmen in Europe, he was ready to make a new breakthrough. "Simultaneously, thanks to Mr. Branislav Novcic, I was given another chance. He published monthly "FIBA Basketball" from London and wanted to expand it to a few more European countries, including Spain. I continued working for "El Mundo Deportivo", strengthening my position day after day by being the first to publish many stories or perform interviews, especially with our sportsmen that were coming to Spain in great numbers at that time. "In Spain a journalist is respected on the basis of his ability to provide exclusive news. I had a little bit of luck and a little bit of premonition in that respect. While I was still in Belgrade I found out some important things, like the arrival of Bozidar Maljkovic in Barcelona in 1990, or the news that the President of Real, Ramon Mendosa, would extend the contract with Radomir Antic...I sent three lines of news by fax, and here three pages were printed under my name. That's the way they work here. A good reporter, or a special reporter, is a "God". The whole team in the publishing office works for him because, in such a way, they raise his reputation, but also enhance their own reputations. I don't know what the current practice is in our newspapers, but earlier on it happened that, due to envy, those who were on a trip abroad were sabotaged in their own home office... I worked for a long time in "El Mundo Deportivo". I accepted a permanent contract in 1999, but then as soon as spring 2000 the offer came from ULEB (European Basketball League). I saw that as a great tribute because I was a foreigner. People from ULEB were looking for a man of my profile who knew international basketball well: journalists, trainers, players, sports officials... From the very first day I accepted the concept that the professional clubs should independently decide their destiny and manage their own competition. Our positive vision has been confirmed by the last agreement, arranged on the 3rd November 2004 in Geneva, by which FIBA (the World Basketball Association) has legalized the existing state of things. I have always claimed that the Agreement would be reached sooner or later, because it was the only reality". Many people in Serbia judged ULEB to be a negative entity in European basketball because it represents opposition to FIBA, for so long under the authority of Borislav Stankovic. Two Stankovics, two long-term friends, suddenly appeared to be in opposing camps. "I never doubted that I'm doing the right thing for several reasons. First and foremost I believed in that concept and I knew it was going to be good for the top basketball clubs. Secondly, I didn't have the slightest moral obligation towards Bora Stankovic or

Stankovic with Franz Beckanbauer...

FIBA. During almost three decades I never received an invitation from FIBA to do something similar for them. I have to admit that after so many years spent in Spain, with the positions I had built, I hoped for such an invitation. I completely understood Mr. Stankovic, who told a mutual friend of ours that he would gladly take me into FIBA, but could not do so for two reasons: we're both called Stankovic and are both Serbs. I understood that and never held it against him. When I received an invitation from ULEB, he was one of the first people I told. I'm really sorry because he became angry with me without any clear reason". During the hardest moments in Serbia, Stankovic's pen transformed itself into sword â&#x20AC;Ś "There were many opposition texts during the reign of Slobodan Milosevic. Two of my stories with Vlade Divac had a special resounding effect. The first was an interview with his picture on the front cover and the statement that the balance of Milosevic's rule speaks the best about him, and the second is the affair regarding Divac's application to MOK (International

"Savo Milosevic made a strong impression on meâ&#x20AC;Ś He was braver than many others because he played football in Belgrade's streets wearing an "Otpor" (Resistance) Tshirt at a time when nobody knew how the whole political turmoil would end." Basketball Organisation) membership. That application never reached MOK because the Serbian authorities stopped it". Many celebrities from all over the world have been "customers" of Vladimir. His photo album is akin to a "Hall of Fame". "I have spoken with many sporting legends so it is difficult to discriminate between them. On this occasion I will mention two meetings with Johan Cruyff during his time as trainer of great Barcelona, glowing with some special energy, just like in the field. It was also interesting to talk with Luis Figo while he was at Barcelona. I interviewed him for an English magazine after one training session. When I saw one guard in front of the "Nou Camp" I had the idea of picturing Figo handcuffed. I asked him if he agreed, explaining the idea that under the picture I wanted to write: "This is the only way you can keep Figo". He liked the idea and so the picture appeared in London with my hand "handcuffing" him also visible... I don't know who could "arrest" Figo today. "More recently, Savo Milosevic made a strong impression on me because I like his reasoning regarding politics, life and many other things. He enthralled me with his knowledge of history. I greatly appreciate that he, just like Divac, opted to be on the right side at an inconvenient time. He was braver than many others because he played football in Belgrade's streets wearing an "Otpor" (Resistance) T-shirt at a time when nobody knew how the whole political turmoil would end. Afterwards many sportsmen "changed" their jerseys and started talking like they were always against Milosevic, but really only a few of them were - like Divac and Savo Milosevic, who dared to show it publicly while the dictator was still in power".â&#x20AC;˘

... Eduardo Portela and Jordi

... and Michel Platini

U.S.A. & Yugoslavia:

Shoulder

American military delegation visit Marshal Josip Broz “Tito” in 1951.

The first meeting took place upon Koca Popovic's return from a five-week visit to Washington, where he had held numerous talks regarding concrete military co-operation between the U.S. and Yugoslavia. Eisenhower had himself just ended a visit to France, where The Cold War saw Yugoslavia take up a unique and interesting position as the only country on both sides the unpopularity of NATO saw the soon to be president welcomed by demonstrators chanting "Ike, go home". of the divided world; the go-between nation, as it According to then Chargé d'affairés Slavoljub Petrovic, the were. This month CorD can reveal the finer points of problem of where the military chief of a communist country and this relationship by exclusively publishing a transcript the NATO Commander could meet privately and secretly was "the biggest problem for our mission". Ultimately, the five-hour meetof the minutes of a key meeting between then Chief of ing was held at Belgrade's American Embassy on 19th July 1951. Staff of the Yugoslav Army, Koca Popovic, and then General Eisenhower opened the meeting by commenting on NATO Commander for Europe - famous war hero and the youthfulness of General Popovic, to which Popovic replied that the majority of the Yugoslav Army was rather young because future U.S. President Dwight Eisenhower. most of the older officers had spent the war in German POW camps and had either been retired or the flow of events had passed them by. alks between the respective parties in this cross-Iron Eisenhower and Popovic spoke of the Yugoslav Chief-ofCurtain-relationship are particularly enlightening when one Staff's visit to Washington and London, military aid to considers that the nations were, for all intents and purposYugoslavia and the transfer of arms, which had been partly comes, ideological enemies (Yugoslavia being a communist state and pleted. They also discussed an upcoming technical conference in the U.S. being the nation leading the fight against the communist Washington, which had been scheduled to study the list of world) that managed to co-operate for the following four decades. Yugoslavia's requests. Details of the talks originate from the personal archives of The NATO commander asked for the specific capacities at Dwight Eisenhower and include the statements of Vernon Yugoslavia's disposal and was told by General Popovic Popovic explained that he was often asked if there that the Yugoslav Army boasted around thirty incomplete were many Inform-Bureau (Soviet Communist Party divisions with a total of 450,000 staff. Popovic explained this was not a normal peacetime structure and that Association) supporters in Yugoslavia, to which he that the Yugoslavian economy would be unable to cope with replied that if there were, their number was much such a military burden in the long term. However, he smaller than in many Western European countries. noted, such large numbers of recruits were essential at that time because of the situation facing the country and Cold War tensions. Popovic highlighted the fact that plans for the Walters, then a senior official of the U.S. State Department who qualitative and quantitative strengthening of the Yugoslav Army had was to become deputy director of the CIA, and Slavoljub been facilitated in a great part by U.S. military aid. Petrovic-Djera, of the Yugoslav administration.

to shoulder

CorD | January 2005

History The senior U.S. officer asked if any specific date for the fulfillbelieve such an action would cause any problems. ing of requests had been identified, to which Popovic replied that General Eisenhower then asked if the delivery of arms to Yugoslavia's requests were rather modest and pertained to a list Yugoslavia, which would undoubtedly happen, could increase of minimum desired equipment to cater for the 450,000 staff and tensions between Yugoslavia and its neighbours. General an additional 500,000 troops, which could be immediately recruitPopovic said that he personally believed the provocation element ed. The chief-of-staff emphasized that the additional half-a-milof arms transfers had been overestimated. He explained that if lion soldiers had already completely military training and were Yugoslavia received sufficient equipment to ensure it had full awaiting transfer of required equipment. This, he noted, was evidefensive capacity then this would act as a deterrent, rather than dence of the stark contrast between Yugoslavia and many Western inciting attack. European countries, which were then down-sizing their forces. Next Eisenhower asked whether Yugoslavia's armed forces Eisenhower spoke next of desired flexibility in aid sources, would be capable of implementing an agreement with the West, stressing that the total defence of the 'West' required the further regardless of the details, if Premier Marshal Tito was prevented development of technical exchanges between countries of the from governing. He expressed his understanding that this quesfree world, which in turn required the easing of customs restriction could have political implications and he would personally tions and the lessening of problems faced at international border crossings. General Eisenhower asked if the delivery of arms to To this end, Eisenhower suggested that Yugoslavia, which would undoubtedly happen, could all customs taxes on military equipment increase tensions between Yugoslavia and its neighbours. could be revoked so as to ensure that production capacities of all countries of General Popovic said that he personally believed the provothe free world could be employed to pro- cation element of arms transfers had been overestimated. vide mutual exchanges with other countries. He asked if Yugoslavia would be prepared to participate in understand if Popovic did not wish to answer. Chief-of-Staff such exchanges, noting that, though Italians and Yugoslavs had Popovic insisted that Tito did not have private politics, but rather not always been the best of friends, Italy was producing good the Yugoslavian authorities had common politics and, as such, the trucks that could be used by Yugoslavia and Yugoslavia could be temporary ill health of Tito would not change or prevent anything. producing equipment that could make the exchange reciprocal. In order to form a clear picture of the Yugoslav mindset, General Popovic said that, in general, they were already Eisenhower asked: assuming that Yugoslavia receives all requested operating in a similar way with certain countries because it was equipment for the standing army and reservists, would the country in the country's interest to obtain equipment from any possible be prepared to accept some form of coordination in planning with source. As such, he did not envisage any major obstacle to western countries? He explained that he was asking because implementation of such a programme. Popovic agreed that this Yugoslavia was not a member of NATO and thus such coordination could prove extremely beneficial to the country's power, particcould prove problematic. He further explained by saying that it ularly in the case of war. would be imperative to maintain permanent mutual contacts in Changing tack, General Eisenhower said that he would like order for each side to know what the other sides were doing. When to ask an unusual question to which, as a military man, he needa solider depends on his wingman, said Eisenhower, he wants to ed an answer. The question was: how did General Popovic assess know about that wingman and if he can count on him. In response, the will of the Yugoslav Army - not in terms of combat ability, General Popovic admitted that he could hardly answer that question bravery or persistence - with regard to the idea of fighting alonghonestly. However, he said, while deliveries were coming he was side Western European countries? Eisenhower explained that almost totally convinced that ways would be found for such conhis question was asked on the basis of ideological differences tacts and exchanges of information to be maintained. Moreover, in because Yugoslavia was a communist country, like the USSR and Popovic's personal opinion, such contacts and avenues of commuits satellites, while the western allies were all capitalistic socinication should be developed at an appropriate time, i.e. just before Dragan Bisenic eties. As such, he asked, would the communist Yugoslavia be the outbreak of hostilities.â&#x20AC;˘ prepared to fight shoulder-to-shoulder with capitalist westerners against the Soviet Union? General Popovic said that, in his opinion, the factor of doctrines was unimportant. As far as he was concerned, the gap between Yugoslavia and the Inform-Bureau (Soviet Communist Party Association) had grown as a result of the imperialistic nature of Soviet "communism". Thus, he considered the position of Yugoslavia was strong. Popovic explained that he was often asked if there were many Inform-Bureau supporters in Yugoslavia, to which he replied that if there were, their number was much smaller than in many Western European countries. Therefore, he did not believe that the doctrinarian position would prevent the Yugoslav Army from offering resistance alongside soldiers from Western Europe in any way. As a military man, General Eisenhower wanted to ask several direct questions. Firstly, he asked if it was likely that any political problems would arise, internally or externally - particularly with regard to the Balkan satellites - if Yugoslavia sent, for instance, a hundred officers to military academies in West Germany or the U.S.? General Popovic said that he did not

Yugoslav & U.S. officials at ease

Cultural art

hough the literal translation of the word icon means painting, not every painting is an icon. For a simple painting to become an icon it must be subjected to a blessing ritual and thus consecrated. Only then does it become a recognised icon. Icons also have specific inscriptions and are strictly two-dimensional presentations, as opposed to ordinary paintings that saw the introduction of a third dimension, depth, during the Renaissance. According to icon artist Jugoslav Ocokoljic, the essential difference between the icon and the ordinary painting is that postRenaissance art incorporates an optical illusion. Employing linear or colour perspectives to create the illusion of space. "Those optical illusions are very important these days. Man has to be aware of them because we have started to see on the basis of those illusions. In icon painting, the imperative is the truth; the presentation of the truth. The icon painting does not use shadows without which the narrative painting cannot function. "In icon painting the shadow does not exist," he continued," because, regardless of how transparent it is, the shadow nevertheless hides. As the icon painting may only present the truth, no shadow must exist. "In icons, the illusion of space is resolved by the inverse perspective. Thus, the pointing of narrowing is not the point of infinity in the depth of the painting, as with Renaissance art, but is rather inside those who are observing the icon. All the lines are narrowing towards the observer, or more exactly towards the one who is pray-

In icon painting red is the sign of martyrdom and the physical, blue is the colour of the heavenly and the divine, while green is the colour of youth. In the time of its origin, the icon was the Bible for the illiterate passing on the gospels through pictures.

The old tale of the first icon tells of how Jesus Christ, unable to make the journey to personally help the sick Duke Avgar, sent an evangelist to visit the duke, carrying with him a towel imprinted with Jesus' face. The duke wiped his face with the towel and was healed. This fable is considered to describe one of the miracles of Jesus and, ever since, the face of Christ has been depicted through icons to pass on this story. By Dijana Ivanovic, Photo Andy Dall, D. Ninkovic

Iconic paintings 78

CorD | January 2005

ing in front of the icon. That imperative of the truth, within the icon, is the reason why the approach to the two dimensional surface was the two dimensional presentation. There is no optical illusion that exists in the painting". Ocokoljic insists that this ensures the icon can never reach the impasse the non-religious painting has found itself in today. Impressionism served to liberate the colour from the object, which resulted in the abstract painting, while icon painting did such at the very beginning by liberating the colour from the object. Cubism econometrically tried to liberate itself from three-dimensionality, from illusionist perspectives in the way that the point of perception is placed in several places. The object is not perceived only from one point. The icon painter, while painting, is entering the space he is presenting. He perceives it from there and paints the icon. Therefore, the icon painting achieved the aim of cubism twenty centuries before the modern style. As such, Ocokoljic recommends, those people to whom the icon is not intimate do not make the same mistakes in perceiving the icons which many encyclopaedists and aesthetics made, appraising them from the point of view that applies in the west. Because the basic principle of beauty does not exists in icons. There is only the viewpoint of the sublime. The principle of truth is shown in the meaning of colours in icons. They do not serve to create a certain ambient on the icon, but are functioning independently because the colours on the icon do not serve to colour the object but have their own independent interpretation. In icon painting red is the sign of martyrdom and the physical, blue is the colour of the heavenly and the divine, while green is the colour of youth. In the time of its origin, the icon was the Bible for the illiterate - passing on the gospels through pictures. What the gospels tell the icon also tells. The icon is copied because it hands down the story, because of that it has been painted in the same way for centuries, even though there is no canon governing how to paint an icon. "There are, however, canons that establish how the icon has to be respected. The icon painting does not bring anything new in itself with time, because it is not up to the icon painter to introduce some-

thing new, but to hand down the story", said Ocokoljic. front of armies in order to stop wars or to protect cities. In the He explained in which way shifts are happening within icon Serbian monastery of Hilandar there are eight miraculous icons painting. "An exceptional shift in icon paintings was made by more than in any other monastery in the world. How the icon Andrej Rubljov, who - thanks to the Saint Trinity icon - made a fanbecomes a miraculous one is again a metaphysical question. Vladika tastic jump in the compositional sense, which could justify research (bishop) Danilo Budimski has said that every icon is potentially within icons. miraculous, and that depends on the faith of those who pray in front "The real shift in icon painting could be made within that of the icon and the effect it has over them. domain, in which it would still remain within the framework of the Not a single history of the Byzantium arts can be written withgospels. But these days, when there are not so many illiterate peoout the Hilandar icons, claims art historian Dusan Milovanovic. To ple, the icon does not have to hand down only what happened. By support this statement he mentions the greatest, the most expensive painting the Crucifixion of Jesus what could be insisted on is the message carried. Whether or not Since the fall of communism, the Serbs have again bethe icon painter is on the right road depends only on gun to bring icons into their homes, and in many of whether the believer, when standing in front of his them the Saints have shone for the first time. Miloicon, has the desire to pray to God. If he does not, vanovic said that from the last decade of the 20th century the icon remains on the level of a painting, albeit a religious one". a renaissance of Serbian Orthodox art began taking place. Whether one can recognise the harmony and blessing that shines from an icon is a question that will certainly and, in his opinion, the most important exhibition ever organised remain without a rational answer because, according to Ocokoljic, it the Holy Mountain (The Atos) Treasury. The exhibition took place must remain so. This is due to the fact that regardless of how other in Thessalonica in 1997. A special museum was built in the town for paintings are classed as masterpieces they do not inspire the viewer the exhibition. In only three months four million people visited the to pray in front of them. "Florenski verbalised that very well when exhibition. The centrepiece painting and essence of the exhibition he said that Rafael's Madonna is splendid. That the baby in the was the Serbian icon, the three-handed Mother of God. mother's of God arms is beautiful, the mother of God too, but they Since the fall of communism, the Serbs have again begun to do not motivate him to pray in front of them. There is a special bring icons into their homes, and in many of them the Saints have prayer for the icon painter, and certain behaviour is considered durshone for the first time. Milovanovic said that from the last decade ing the icon painting. And, at the end, the prayer prayed as a result of the 20th century a renaissance of Serbian Orthodox art began takof the icon is directed towards Christ, for whom the icon was painting place. Such a turn around has not been witnessed for 500 years, ed. It hands him over. Only if there is such a relation between the since the renewal of the Pec Patriarchy. In only several years over icon painter and the icon is there the possibility for the icon to carry five hundred churches have been built in Serbia and Diaspora, and the blessing inside itself. many of them are already painted and decorated with icons. The In Orthodox Churches, and there are twelve in the world, icons renaissance is following its flow, without the channelling and influare equally valued. But there are special icons that are, in addition ence of those who might have their concerns. Everything is left to to the Church to which they belong, respected by all other churchthe will of local authors, priests and some bishops, until some future es. Those are the miraculous icons. They depict the special deeds of time when the icon painters will, as they used to, work under the the divine principles. In front of those icons, according to fables, surveillance of episcopes and priests. And the icon could already be people were cured and wars stopped. They were often carried in one of Serbia's leading brands.â&#x20AC;˘

Iconic painters Jugoslav Ocokoljic

CorD | January 2005

Reportage

Mr. George's museum Zimbabwe In a dark, secluded corner of a dusty old workshop, on a disused railroad siding in one of Africa's oldest railway museums, stands a locked and neglected luxury railroad carriage. Visitors are a rarity to this museum, which lacks sufficient signposts but contains some of the most fabulous items of railway memorabilia and exhibits of the diverse and contrasting history of this troubled country.

By Mirjana Nikolic

he Railway Museum in question is to be found in Zimbabwe's second city of Bulawayo: a large, sprawling city in the south-west corner of the former Rhodesia, some 423 kilometres from the capital Harare. The museum, which is twinned with similar museums in Johannesburg and Livingston, was built to reflect the all-encompassing power of the Railway Administration: when railway lines reached Bulawayo in 1897, the face of the area was changed forever, with expansion and growth stretching as far as Kisangani. The luxury train in question, illuminated only by a cobwebbed hanging lamp above a regally-set, spotlessly polished dining table, played its own part in the history of the country, as it was on this very train, travelling up from South Africa through the hallowed Matusadona Mountain Range, that Cecile J. Rhodes (1854 - 1902) - one of the most brutal and cunning British conquerors of Africa - made his trip to the area to create the state that took his name.

Custodian of the museum, old Mr. George, welcomes guests in the traditional garb of a Rhodesian scout: safari shorts and long, grey cotton socks, khaki shirt and leather hat. The bearded, intuitive looking Mr. George is a rare white man in the impoverished district around the old marshalling yard. Following the horror of the revolution, Mr. George left the white suburbs to live with his black wife in the railway quarter, which was once a powerful, affluent stronghold of British colonialists in southern Africa. Though he was accepted into the community by the former slaves and servants of his creed, Mr. George has, nevertheless, endeavoured to remember and remind of his roots. His father came to this then secluded part of Africa as one of many white pioneers who were enthralled by the dream of constructing a railway stretching from Cape Town to Cairo, to satisfy the ambitious needs of the British Victorian Empire. Suffice to say that George's family never made it beyond Bulawayo. George's grandson now takes care of the extravagant Rhodesian Railway carriage, upon which Rhodes himself made his final journey through the winding foothills of the Matobos in 1902.

Zimbabwe facts Area total: 390,580 sq km Climate: tropical: Capital: Harare Government type: parliamentary democracy Population: 11,342,521 Population growth rate: 0.26% Birth rate: 25 births/1,000 population Death rate: 22.43 deaths/1,000 population Life expectancy at birth: 37.78 years Total fertility rate: 3.34 children born/woman Ethnic groups: African 98%, white 1%, mixed and Asian 1%

CorD | January 2005

Terrain: mostly high plateau with higher central plateau (high veld); mountains in east Religions syncretic: (part Christian, part indigenous beliefs) 50%, Christian 25%, indigenous beliefs 24%, Muslim and other 1% Languages English: (official), Shona, Sindebele (the language of the Ndebele, sometimes called Ndebele), numerous but minor tribal dialects Literacy definition: age 15 and over can read and write English, total population:85%, male:90%, female:80% (1995 est.)

George explains that visitors to the museum are a predictable bunch: children on school excursions; methodical tourists who have carefully studied the West Zimbabwe travel guides; passers-through who have lost their way through the wide streets of Bulawayo - constructed to accommodate wagons hauled by teams of up to 12 oxen in the early 20th century - and have wandered into the museum to ask for directions. Regardless of their excuse for visiting the museum, Mr. George is sure to present his detailed story of how the Jack Tar steam locomotive arrived from Zambia and how much toil and trouble it took to build the railway bridge across the Zambezi River, close to the Victoria Falls, in 1904; he will show visitors a calligraphic menu from which British Queen Elizabeth II and her late sister Margaret ordered their meal in the Royal carriage during a 1953 tour of Africa. Captivated by the majestic African Dolly train on a separate siding, roofless wooden carriages and mismatched furniture from the nearby colonial station at Umtali, most visitors pass the Pullman carriage by without even noticing its polished dining table, set with cutlery personally polished by Mr. George. In fact, it's only on special occasions that George unlocks the Rhodes' railway car. His voice filled with excitement, the old custodian takes the time to give a detailed tour of the servants' compartment and the sleeping carriages reserved for women though women were rare companions of the great conqueror of Africa and his close associates - the business salon and, finally, the armoured door of Rhode's personal compartment. Our small group of visitors are left breathless when, at the end of the rare tour, we are invited to sit at the table that still holds a bottle of sherry from the cellar of Queen Victoria and an early 20th century bottle of white wine from the stocks of the railway bridge and up to Zambia, on to Namibia (formerly South once powerful imperial Anglo-American Mining Corporation. West Africa) and ending up on Valvis Bay's Atlantic pier, from These guests prove more inquisitive than most and George's which the view reaches Terra del Fuego. Still, it is difficult to knowledge is tested as he is bombarded with questions from the leave Bulawayo behind. visitors perched politely on the olive-hued leather chairs. "What A warm mountain wind whistles through the peaks of the are those pincers for?" asks one pointing guest. "For cutting Matabos hills and around the Matopos balancing rocks, close to grapes into edible sizes", replies George. "Why are those sherry which lie the final resting places of two great figures of the conglasses so small?" asks another. "Because you never drink the trasting worlds of Zimbabwe: glorious King Mzilikazi, of the sherry," explains George. "It is served merely to cheer the proud Ndbele tribe, and British conqueror Cecile John Rhodes. Queen". "How many different types of cheese would be served From Bulawayo's wide central city Robert Mugabe Avenue, at a royal dinner?" asks a third visitor. "Not one," replies George. the road turns sharply right in the direction of the far off Victoria "That is a French custom". "Who needs knowledge of such Falls. The interlaced, problematic problems of the peoples of this things nowadays?" Asks one impertinent visitor, to which George merely smiles silently. With the tour completed, Mr. George It takes only one minor mishap for this story of adventuraccompanies the group of visitors to the porch of the dusty old museum. He ous safari to become a battle for survival. But, after all, this gives away old badges, postcards and is wildest Africa and the Dark Continent offers nothing less. maps, but says no more of the rich hiscountry have shaped the nation and its cities. On the road to tory of the African railroad. With a wave he sends them on their Victoria Falls, one is lured by the glimpse caught of the thick way, before returning to his museum and the secrets of that lost African bush land enveloping the wide road along which refrigworld that he so jealously guards. erated trucks head for Namibia. Moving on is difficult. From one closed world that survives Occasional passengers head for the Lake Kariba ferry from on the strength of memories, enter the throng of a tough, indeMlibizi; while tourists preferring land travel to flight take the 439 cisive city that has reshaped its identity time and time again. kilometre road trip from Bulawayo to the Falls and the border. For Choosing a place to go next is a little tricky. Some of the most first-time visitors, the idyllic views are simply breathtaking. dangerous roads in Africa branch off from Bulawayo. To the And the road itself is a reminder that this world is far from that north, through Sangani towards Harare, the adventure is not for which we Europeans are accustomed to: drivers travelling at the faint hearted. To the south, one must pass the sparse scenery breakneck speed dodge the wild game that prefers to sleep on and arid plains heading towards Botswana and the heart of the warm tarmac, rather than dusty soil; petrol stations offer respite, Kalahari Desert. The Plumtree border crossing closes immediatebut often lack fuel; many navigation maps are incomplete as one ly after dusk and beyond it is only the small Franistown, surhurtles through the bush, mesmerised by the flickering tongues of rounded by mile upon mile of white sanded desert, lit only by the the forest fires that threaten to engulf the road, but unable to tell stars of the southern sky. Besides, one needs a specially-trained friends because mobile phones do not function in this wilderness. team of travel guides to make it through the desert at night. It takes only one minor mishap for this story of adventurous The decision is left to the luck of the spinning bottle, which safari to become a battle for survival. But, after all, this is wildest points to the north-western road leading through the gorges of Africa and the Dark Continent offers nothing less.â&#x20AC;˘ the Zambezi River, past the mesmerising Victoria Falls, over the CorD | January 2005

Traditions

Traditional mass service

Burning of the Yule

Serbs who know what faith means still celebrate the Orthodox New Year as a liturgy, while others see it simply as a national holiday that forms a constituent part of the too-long-endangered Serbian national identity. The Serbian people are not homogenous on any level, so why should they be homogenous on that one?

DOUBLE CELEBRATIONS By Dijana Ivanovic, Photo Mirjana Kotlaja Four years later, on 1st May 1923, the Ecumenical Synod of Orthodox Churches in Tzarigrad summoned members to meet and ust one more night and I won't go out anywhere for at least a discuss the calendar issue. The Serbian Orthodox Church asked month - is the sentence often uttered in Serbia on the evening of world-renowned Serbian mathematician Milutin Milankovic to pre13th January. Sometimes it is as though some mysterious power pare a proposal for the calendar. Milankovic's proposal was unaniis forcing us to take each and every available opportunity to celemously accepted at the Ecumenical Synod. However, the calendar brate and "eat and drink" until we are completely exhausted, as we plan was never implemented by the Serbian Orthodox Church, the say in Serbia. Russian Orthodox Church, or the patriarchies of Jerusalem Tzarigrad. Preparations for the most intensive period of celebrations last all According to Milankovic's calendar, to account for the time disyear long for many, though only a few persevere through autumn crepancies the 1st of October would be counted as the 14th of October and reach the end of that festive marathon without troubles. The for that year, and thus tally with the Gregorian calendar. But for reapinnacle of the festive period, which sees families heartily celebrate sons unknown the Serbian Orthodox Church failed to implement the Saints Days (Slava) from autumn to spring, begins with the change. Perhaps this was due to the fact that no amount of mathematical logic could alter deep-rooted tradition. In the period of communism, it was not quite socialCommenting on the Church's inaction, arch-bishop ly acceptable to celebrate the Serbian New Year, but Radovan Bigovic, professor of the Belgrade Faculty of said: "at that time the Church probably estimatmany still paid their respects to the tradition, though Theology, ed that acceptance of the new calendar could cause a spestrictly privately at home. Police often prevented cific schism in the Church and within its followers, which restaurant celebrations and arrested musicians and had been the case in Greece, when a division was created between believers of the old-calendar and new-calendar. guests of those who dared to defy prohibitions. This could produce a great commotion and confusion Gregorian New Year and ends with the celebration of the Julian New even today." Year. In between there is Orthodox Christmas and there are also Regardless of the Serbian Patriarchy's motivation, this fact is the those who even celebrate Chinese New Year. But why is Serbia one reason that Serbs celebrate two New Years to this day: one for laymen of the rare nations that celebrate New Year twice? on 1st January and one for clerics on 13th January. The Gregorian Calendar was not introduced until the full introPrior to the Second World War, the Orthodox New Year was celeduction of communism in 1945. Actually, this calendar was officialbrated as a liturgy - the date was always celebrated in churches and not ly introduced in 1919, though it was not accepted with much enthuin bars. Today, however, everything has changed and one can find a siasm by the people of Serbia, Montenegro and Macedonia, who had multitude of ways of celebrating the traditional Serbian New Year, been raised in accordance with Christian Orthodox traditions. though without the romanticism and gentle mysticism of the past. Back in 1919, the customs associated with the Gregorian calenPeople sing and dance in restaurants, floating bars, disco-bars and dar, such as the decorating of Christmas trees, were not easily clubs. Glamour or tradition, DJs or brass orchestras, techno or folk accepted by followers of the Serb Orthodox religion. Locals, on the music, it doesn't matter as long as the extravaganza is good. But the whole, continued to abide by their previous traditions people who know what faith means still experience the Orthodox

CorD | January 2005

Traditions

â&#x20AC;&#x153;Cesnicaâ&#x20AC;? - traditional Christmas loaf

The blessing of Yule logs

New Year as a liturgy, while others celebrate it as a national holiday, log, while the majority of citizens buy it on the market or in the street, or as something that forms a national identity and has, in their opinpre-arranged in a bunch made of little oak branches and reeds. ions, been threatened for decades. Serbian people have never been Christmas is surely the best chance for designing festive fancy homogenous regarding a single plan, so why should it be so regarddresses and observing the national elements of ritual and sacramenting this one? related attitudes, though it is not quite the case here because in the In the period of communism, it was not quite socially acceptable obvious celebrating procedure people in general enforce the taste to celebrate the Serbian New Year, but many still paid their respects pertaining to mass-culture. to the tradition, though strictly privately at home. Police often preBut the thing that today jointly bothers all Christians is: how to vented restaurant celebrations and arrested musicians and guests of "enter" the holiday symbolizing eternity from the feeling of restrictthose who dared to defy prohibitions. That is surely one of the reaed space and condensed time, resulting from fast communications in sons why we had, by the end of the 1980s, turned so abruptly which the spirit is formed by speed and change, to bring to the prestowards the tradition. During those years, on the streets and ent time the ritual birth of Christ, that is, to return oneself to the squares, at homes and in restaurants, it was more joyful on 13th Biblical time of Christ's birth? January than on the 1st. The people wanted to compensate for everyHow to stop the holidays of festivity and joy turning into the days thing that has been missed, suppressed, forgotten; everything they of tedium and idleness, overeating and spending? How to force onehad been deprived of. self not to "kill" time during the holidays, to prevent those days Christmas also shared the destiny of the Serbian New Year in the being just "non-working days"? "Holiday and festivity crises have Communist regime. It was celebrated in most Prof. Bigovic noted that until recently our people felt a harcases secretly and in hiding. Although it survived, it is difficult to define the religious or mony between the clerical holidays and general happencultural relationship of today's Serbs towards ings. Therefore, the clerical holidays were grandiose, decthe celebration of Christ's Birthday because our orative and animated. But modern man does not relate current return to tradition is followed by the process of desecration of one's everyday existhe holidays to the natural flow of events because he is tence. In any case, Christmas is the greatest alienated from nature and the clerical rhythm of time. Orthodox Christian holiday. The symbol of Orthodox Christmas is the Yule-log, representing a young Turkish or been endangered by another crisis: the crisis of identity. If we live Common oak tree that is burnt on Christmas Eve. The Yule-log contoday in one hyper-individual civilization, when a man mostly builds tains a myth of the deity that simultaneously dies and is reborn. one's identity on his own ego, or knowledge, looks, power, money, Many national traditions of the Serbian people have been tied to the in most cases on one's own characteristics, then it is normally diffiYule-log, many beliefs, rituals and ritual ceremonies. cult to celebrate because those holidays have been envisaged as days The Yule-log is brought into the home with great attention and of joint celebration and their beauty lies within that shared experisolemn air. People pour mixed grains of wheat and corn over it, ence. Most probably, the hyper-individualism is a specific kind of some wine or honey, decorate it with laurel leaves and greet it welpathology, as was collectivism. But it results in depriving the holiday come. Earlier on, while the Yule-log is burning, all of the household season of its traditional joy and festivity. That cannot be resolved by members had to be awake. Everybody watched the moment of coma certain decree. For that one needs a total change of one's existence bustion. That moment was the essential purpose of staying awake. or the forming of a new vision of living and the world as a whole, Many prophecies and predictions for the coming year are tied to the where the holidays form one aspect of life in its entirety. moment of total combustion of the Yule-log. On the Yule-day supper Prof. Bigovic noted that until recently our people felt a harmony one eats using fingers instead of cutlery. The food has to be fasting between the clerical holidays and general happenings. Therefore, the and the most common dishes are beans and fish. There are also walclerical holidays were grandiose, decorative and animated. But modern nuts, prunes, dried figs, apples and honey and wine is served. The man does not relate the holidays to the natural flow of events because table from the Yule-day supper should not be cleared up and the he is alienated from nature and the clerical rhythm of time. Joy of holhouse should not be cleaned until Christmas is over. idays is lost in that way, and it fades away, diminishing its transformThese and many other rituals pertaining to Christmas have been ing power. That experience of the religious holyday, in which everyretained even today in many, mostly rural areas. Life in the town thing "turns around" and new rules for living could be established, do imposes its own rules. Still, there are also people in towns that would not apply to everyday. This notion has been suppressed by modern go early in the morning to the nearby forest and cut their own Yulesociety, but it probably hasn't been destroyed.â&#x20AC;˘ CorD | January 2004

Techno Talk LG RZ-23LZ20

www.lge.co.uk Well crikey. It wasn't long ago that getting a resonable image off an LCD TV meant clamping your head in position for the length of your viewing experience-otherwise David Dickinson's face would become an even more impossible shade of red. Not now: LG's latest widescreen 23in set, with its IPS trickery, allows a 176 degrees viewing angle. An admirable 1280*768 resolution, 450 cd/m2 brightness and 400:1 contrast ratio practically guarantee your viewing pleasure (although PC users might want more for monitor use) while 7w Dolby Virtual Surround-equipped speakers will fill the lounge with sound.• Retail price : cca € 1950

HP iPaq hx 4700 www.hp.com Palmtops are plummeting in price, so it's going to take something special to justify extracting almost a monkey of anyone's money.Step up HP with the first Pocket PC to deliver a touch pad that features a 'mouse-like cursor'. Not convinced? How about a 4in VGA screen, magnesium alloy body and 62Mhz of processing crunch? We know, you need to finger the goods first to see if it's worth it.• Retail price : tba

LAND ROVER Defender Ultimate DSX 150

www.landrover.co.uk

So the Freelander is a machine more suited to the school run than hardcore 'let's offroad!' action. Hat doesn't mean Land Rover is giving up on the dirtier end of the market, such as those who might buy a Defender. In fact, its newest customers are likely to be the dirtiest yet, as they'll have to do without the windscreen and other automotive niceties that Land Rover tends to supply. The new Defender mountain bike has Shimano's irrepressible 27-sped Deore drive train, aircraft-grade aluminium frame, Suntour suspension forks amd some rather fetching braided cables.• Retail price : cca € 600

CorD | January 2005

Techno Talk AXIO FUSE Hardshell Backpack

www.comuta.co.uk Down at the track, freestyle BMX guru Bob Haro pulls off the rather impressiove backflip. Knowing that the founder of haro bikes is no spring chicken, you throw caution to the wind and follow him over the jump. Having spun just 180 degrees, you land flat on your back, knocking all the wind out your sails and flattening your rucksack. Really should have taken your laptop out of it,hmm? To add insult to substantial financial injury, Haro saunters over and passes you his latest designAxio's Fuse backpack, with fabric-covered hard plastic shell and lined interior space. Perfect for protecting all your favourite gadgeds.• Retail price : cca € 150

TOSHIBA QOSMIO E10

www.computers.toshiba.co.uk Gently shunting the notebook into the living room,Tosh's Qosmio offers the user a '4-in-1' dose of multimedia computing. The E10 runs Microsoft's Windows XP Media Center edition, meaning you can use its 80 GB hard drive to store all manner of televisual pap and timeshift with the best of them. Punchy Harman Kardon speakers deliver crisp sonics and Bluetooth and Wi-Fi come as standard.• Retail price : cca € 2250

JBL CREATURE II

www.jblcreature.com In the JBL factory a creature dies. Chained to a crucifix on the wall of a dark basement, its body decomposes, gelatinous lumps of glistening matter fall to the floor from its elbows and chin. Contact with the harsh concrete makes them harden instantly, before they are removed bu JBL goblins and carved out to make the enclosures for the Creature range of PC speakers. The driver technology is sound, but it is the resonant quality of the magical effluent that makes these speakers special. The last moans of the creature that created them are drowned out by the happy cries of consumers in the showroom above its head. Or something like that.• Retail price : cca € 105 CorD | January 2005

Techno Talk Notebook Expansion Base xb2000

www.lge.co.uk

Well crikey. It wasn't long ago that getting a resonable image off an LCD TV meant clamping your head in position for the length of your viewing experience-otherwise David Dickinson's face would become an even more impossible shade of red. Not now: LG's latest widescreen 23in set, with its IPS trickery, allows a 176 degrees viewing angle. An admirable 1280*768 resolution, 450 cd/m2 brightness and 400:1 contrast ratio practically guarantee your viewing pleasure (although PC users might want more for monitor use) while 7w Dolby Virtual Surround-equipped speakers will fill the lounge with sound.• Retail price : cca € 300

HP iPaq hx 4700

www.xbox.com Everything you need to get your Xbox online and start gaming. Well, nearly everything. A broadband router wouldn't go amiss. The starter kit includes the Xbox Communicator headset and a yeaar's subscription to Live! There are also a couple of online-enabled demos to get you kicking Johnny Foreigner's backside all over the web. A lot more fun than playing with yourself.• Retail price : cca € 60

NINTENDO Dual Screen Dream

www.nintendo.com All the build-up all the pictures and all them rumours culminate in this, a news story. This is how the revolutionary new handheld conole will look, and we're glad that it has a more grown up appearance then the early prototypes. The buttons have been reworked too. We imagine that the engineers at Nintendo will be nervously twiching their little Mario hats,worrying about the ergonomics of a device that has two screens, one of which is a touchscreen and needs a stylus to operate. Looks like a threehander to us but we trust the Big N to work it out. Games developers are definetely behind them. More than 60 titles are in progress, including Zelda, GoldenEye and Need for Speed. Guess what: we can't wait.• Retail price : tba

CorD | January 2005

Techno Talk GIZMONDO

www.gizmondo.com

We'we had an exclusive hands-on with an alpha version of what is now called Gizmondo-and we're are very impressed. Much of the original spec is unchanged, including the radical inclusion of a GPS receiver for location-based multiplayer gaming. The 400 MHz processor, 3D games engine and 320*240 pixel screen remain, too, although now nestled in a more sophisticated soft-touch casing. Throw in a VGA camera, MP3 player and Bluetooth and you have the most powwerful and functionalhandheld gaming device yet seen.• Retail price : cca € 345

The Bachelor Pad

www.lge.co.uk Set the scene…the Mimo 32 is modern and stylish, with an eye-catching optional rack 1 stand (€900) that offers extra storage space and can be rotated for new viewing angles. Can be configured with optional extras, such as Dolby Digital surround sound (€200) or net access with OnkinePlus upgrade (€750 including keyboard). Buy the screen…excellent contrast levels are a Loewe trait and the rich colour palette tingles the visual senses. It also punches above its weight in the audio department. •

Casio EX - Z40

www.casio.co.uk

You'll love it because…it's super slim and has a huge selection of scene modes; the controls are straightforward, the menus are clear and the LCDs are bigger than average. Best of all, you can stab the shutter and grab a shot with no discernible Auto Focus lag. You'll hate it because…it's not possible to go directly from the ordinary auto-everything Snapshot mode to any of the Best Shot modes without using the menus, which slows you down markedly. It only boasts a stingy 9.7MB internal memory and no SD card. It's a bit pricey.• Retail price : tba CorD | January 2005

Cuisine

Feasts of By Sonja Rados, Photo Mirjana Kotlaja

Serbia has a comprehensive religious and cultural calendar, developed over a millennium and marked by the special characteristics of several contrasting factors: Christian holidays, lunar phases, seasonal changes, etc. Thus, in Serbia and Serb communities, every single day of the year has its own proper name - either of a specific saint or traditional holiday - and can be marked by particular customary celebrations.

s with all Christian denominations, Easter is the most important annual holiday: the holyday of holydays. However, Christmas and the advent period are festively celebrated in a very formal manner in Serbia and all traditional customs are respected and adhered to. This makes Christmas and the yuletide holidays the most festive in the Serbian calendar. The whole community looks forward with glee to the Christmas holidays - young and old, men and women. Unlike the Gregorian calendar of modern catholic or protestant Christianity, Christmas in Serbia is celebrated according to the Julian calendar. The holiday officially begins on 19th December with St. Nicholas' Day and runs until St. Sava's Day on 28th January. Orthodox Christmas Eve (6th January) is called Yule Day in Serbia, as this is traditionally when the Oak Yule log is cut and brought into the home. It is at dawn on this day that the Christmas celebrations truly begin. As the sun rises, a fire is traditionally kindled and roast meat is prepared. Sweet Christmas biscuits, cakes, buns and other traditional fare are prepared. Of all the annual religious days, Yule Day stands out for its celebration methods and colourful ritual activities. Yule Day evening, with Christmas Day just hours away is, like Lent, a meatless time. Traditionally, bean dishes and fish are snacked at this time. However, this is only a respite from the meat-rich feasts of Christmas. According to tradition, Serbian Orthodox Christmas is preceded by six-weeks of fasting, during which meat is not eaten. Thus Christmas Day, on 7th January, marks the end of the meatless period and there is much catching up to be done. A traditional Christmas Day meal includes thick, chicken soup as a starter, followed by sarma (minced meat and rice rolled in pickled cabbage leaves and baked), assorted roast meats, accompanied by salads and followed by syrupy walnut pie. Though everybody in Serbia celebrates New Year's Eve on 31st December, this is not a traditional Serbian holiday and Serbs have their own New Year. According to the Julian calendar, New Year's Day falls on the Gregorian 14th January. This festive date used to be celebrated as 'Small Christmas', as it marks the final day of the Christmas holidays, as well as St. Vasil's Day. However, it is now more commonly celebrated as Serbian New Year. Serbian New Year is a time for families and close friends. The New Year's Eve feast is normally prepared well in advance, to ensure that everyone can relax and enjoy the company of those dearest to them. Food for the celebrations generally comprises a wide assortment of cold savoury and sweet dishes, which are laid out buffet-style on a long table. Eating commences at the stroke of midnight, in order to ensure that the new year begins with the abundance that it is hoped will continue. Dishes consumed at this time include gibanica - a famous Serbian cheese pie, veal soup, obligatory roast suckling piglet with Russian salad, various pâtés and other side dishes. New Year's Eve dessert is, generally, freshly fried doughnuts. It is customary for one doughnut to contain a coin and whoever is lucky enough to find the coin in their doughnut will have money all year long. All recipes provided by traditional Serbian restaurant “Daco”, which is located at Patrisa Lumumbe 49, Karaburma.

Interview

Serbian Christmas

PITA OD SIRA (CHEESE PIE)

PROJA (CORN BREAD)

TURSIJA (PICKLED VEGETABLES)

1/2 kg full fat cottage cheese, 250g kajmak, 4 eggs, 10cl oil, salt, 1/2 kg filo pastry. Mix the cheese, kajmak and eggs into a creamy paste. Take three sheets of filo pastry, add the mix and roll lengthways into cylindrical pies. Repeat the process until all the mix has been used. Place on a greased baking tray and bake for 30 minutes at 200 deg.

5 teacups corn flour, 3 teacups flour, 3 whole eggs, 3 teacups oil, 1 packet of baking powder, 1 teacup yogurt,1 glass mineral water, 1 big slice cheese grated, salt Mix all ingredients together and bake in a greased pan (it should be 5 cm high) until golden. Serve with sour milk.

500gr. courgette, 500gr. cauliflower, 500gr. red peppers , 2 teaspoons of mustard seed, 2 teaspoons of pepper corns , 500ml malt vinegar, 50gr. sugar, · salt Wash the courgettes and cut into batons. Wash the cauliflower and cut into 'flowers'. Wash the peppers and cut into large pieces. Boil the vegetables for 3 minutes in salted water. Drain and cover in cold water. Boil the vinegar with ˝L of water, sugar, mustard seeds, pepper corns and salt. Add the vinegar mix to the vegetables and allow to stand overnight. Place the pickled vegetables in jars and seal. Put the jars in the oven and cook at 100 deg. for 50 minutes.

KAJMAK (HEAVY MILK CURD Kajmak is an authentic Serbian dairy speciality, which is obligatory for almost every formal meal. Today, as always, it is made only in domestic villages from fresh milk. Kajmak is usually served with hot bread or pastries. Bring three litres of cow's milk to the boil, before lowering the temperature and simmering for a further 15 minutes. Pour the milk into three pots, cover with muslin or gauze and allow to cool. During the cooling process the curd will rise to the top. Remove the Kajmak, add salt and serve.

KISELI KUPUS (SOUR CABBAGE) Sour cabbage is a traditional Serbian winter accompaniment, which is always prepared in early autumn. Remove the cores from several large heads of cabbage, fill with salt and place core-side-up in a large cooking pot. When the pot is full of cabbage heads, cover with large cabbage leaves, fill with water and weigh down with something heavy. Cover with a clean cloth and leave for 40 days. Froth, which will begin to form after 10 days, should be regularly removed.Sour cabbage is best served as a salad accompaniment with red peppers and a little oil.

AJVAR Ajvar, a cold accompaniment made of red peppers, is one of the most delicious specialties and greatest secrets of Balkan cuisine. According to legend, ajvar was a common dish on the table of the Ancient Greeks, enjoyed by heroes such as Plato, Aristotle and Alexander the Great. Ajvar is a Serbian speciality prepared by hand in a traditional manner, using large open pots on large wood-fuelled stoves. To make ajvar you need a kilo of red peppers, which are blackened over open coals. Once cooked and blackened, the skins are removed and the peppers are finely chopped. Place the pepper in a large pot with ˝ a litre of oil. Fry slowly until the ajvar thickens. Place the thickened ajvar in sterilised jars and cook in the oven - 100 deg - for 10 hours. Prior to serving, a little salt and chopped garlic is added to the ajvar. Ajvar is served as a side dish with various meats, usually barbecued or grilled. Ajvar is a seasonal dish, always prepared during the summer harvest months and used year-round. CorD | January 2005

Cuisine PACIJA SUPA (DUCK SOUP) 1 duck (1.5kg), 4 carrots, 4 parsnips, 1 small stick of celery, 150g soup dumplings, 2 teaspoons of salt, teaspoon of whole pepper corns, 2 spoons of chopped parsley Wash the duck thuroughly, place in a pan with 4 litres of water and boil over a low heat, occassionally removing the froth from the pan. Leave the duck to boil for two hours, before adding the carrots, parsnips, celery, salt and pepper corns. Boil for a further 1 hour, before straining the soup and adding the dumplings. Boil for a further five minutes, add the chopped parsley and serve.

SARMA (SOUR CABBAGE STUFFED WITH MINCE AND RICE) Two heads of pickled cabbage, 800g minced meat (mixed pork and beef), 1kg of smoked meat of your choice (ribs are perfect), 300g smoked back bacon, 1/2 cup of rice, 2 medium-sized red onions. Powdered paprika. Salt and pepper to season. Note: the quality and type of pickled cabbage to be used is extremely important. Leaves MUST be of medium size, soft to the touch and golden in colour. Separate the cabbage leaves and remove the hard stump. Select only those leaves which are large enough to be folded. Chop the smaller leaves and place on the bottom of a large cooking pot. Leave a few larger leaves to one side - these will be used to cover the surface of the pot. Taste the cabbage to ensure it is not too salty. If it is, rinse in cold water to remove some of the bitterness. Finely chop the onion, dice half of the bacon and wash the rice. Fry onion until golden, before adding the minced meat. When the meat is half cooked, add salt, pepper and the paprika powder. Just before the meat is cooked, add the diced bacon. Remove from the heat and allow to cool. Fill the cabbage leaves with the fried mix and make parcels. Place on the chopped cabbage leaves in the pan, one at a time. Intersperse the rolls with the remaining bacon. Fill the pan with cold water and cover with excess cabbage leaves. Place in a hot oven and bring to the boil. Then lower the temperature, place a lid on the pot and cook the Sarma for 2-3 hours.

ORASNICE (WALNUT CAKES) 2 egg whites, 200g icing sugar, 120g grated hazelnuts, 300g chopped hazelnuts Whip the egg whites into a meringue with the icing sugar. Fold in the 120g grated hazelnuts. Use the mix to make small horseshoe-shaped cakes, roll in chopped hazelnuts and place on a greased baking tray. Bake in the oven for two hours at 120 deg.

KITNIKEZ (QUINCE JELLY) 1kg quince, 800gr sugar, glass of raspberry juice, little lemon rind, cinnamon, walnuts and almonds. Peel the quince, remove the seeds and chop into small pieces. Boil in a little water to soften. Strain off excess water. Cook the sugar and raspberry juice until it attains a sticky consistency. Add the raspberry juice, lemon rind, chopped walnuts and almonds and a pinch of cinnamon to the quince. Pour into small pots and air-dry overnight.

CorD | January 2005

JAGNJECE PECENJE U MLEKU (ROAST LAMB IN MILK WITH POTATOES) 3kg lamb, 1l milk, 1/2 l white wine, salt, rosemary Salt the lamb and add rosemary. Place in a large cooking pot, cover with milk and wine, before sealing the pot. Bake slowly for three hours. Remove the lid and cook for a further 30 minutes, until the meat is crackling. Add peeled, chopped potatoes and continue to cook until potatoes soften. Prior to serving, it is advisable to cover the dish with kajmak.

Landmarks

Tasmajdan Park

Oasis of calm By Hana Gadomski

As it transverses Belgrade's streets on rickety old tracks, tram #2 circles five boroughs on a route known as "krug dvojke" (circle two). Many consider that this circle, which connects the districts of Stari Grad, Palilula, Zvezdara, Vracar and Savski Venac, is the natural inner city of Belgrade. And, slap-bang in the middle of this constantly bustling area, is a wide island of tranquillity known as Tasmajden Park.

uring the time of the Turkish Ottoman occupation of Serbia, Belgrade homes often included concealed backyard gardens, where families could gather and relax outdoors. When the city began to spread and grow quickly, these green areas were swallowed by the concrete sprawl and the only remaining havens of nature were the parks. Nowadays, strollers and families, ambling pensioners, dogwalkers, joggers and those seeking a break from the concrete jungle head to Tasmajden's green fields from every direction. If it weren't for the constant attention of the city's landscapers and gardeners, the grassed lawns of the central park would not cope with the thousands of city residents who wander the park all year round, gazing dreamily at the majestic Church of St. Marko, admiring the ornamental flowerbeds, resting on the many wooden benches or playing leisurely sports. The park's name is derived from the Turkish word "Tas-majden", which means quarry. And, though it is hard to imagine, the area upon which the park now stands was indeed a stone quarry. Evidence of the old quarry can still be seen today: if one walks down Aberdareva Street, the steep slope, recesses and cuts of the former quarry can be clearly seen. Tasmajden Park lies above a huge series of hidden tunnels, caverns and purpose built shelters, and there are several hidden access points to the labyrinthine subterranean caves. This mysterious underworld is below the various cafes and nightclubs of Tasmajden, as well as its sports facility, open-air swimming pool and leisure centre. Noteworthy buildings around Tasmajden include the Fifth Belgrade Secondary School (once the First Secondary Girls' School); Radio Television Serbia's building, perched on the hill above the park, the Children's Cultural Centre and Dusko Radovic Children's Theatre; as well as the Russian Orthodox Church of the Holy Trinity, which was erected in 1924 with a piece of Russian soil in the foundations instead of saintly relics, and St. Marko's Church, built to a classic design between 1931 and 1949. Once upon a time Tasmajden also included a cemetery, and rare remains of tombstones can still be found in the ground near the Seismology Institute, which was built near St. Marko's in 1909. It was in 1934 that Tasmajden first became a park. At that time construction of the Central Post Office building commenced and the decision was taken to organise the neglected wasteland nearby and transform the abandoned mine into a city park. Park-goers can enjoy excellent meals at Tasmajden's Madera restaurant, or light snacks and refreshments at the hilltop Sansa cafĂŠ. Sansa is popular among parents who wish to relax with a drink while keeping a watchful eye on their children playing in the playgrounds or larking on the hills. As well as the regular playground facilities, children are also entertained with electric go-carting, a miniature train, a carousel and an inflatable castle. Once boredom

sets in, children can play pirates on the large wooden boat or happy families in the wooden houses, which were both gifted by the people of Norway. During the summer, when the weather is fine, donkey rides are even available. Students of the nearby Law and Technology faculties often sit on the park's benches. Pensioners while away the long days by playing chess, while couples enjoy the sun and the serenity. Friends meet up and hunt for a free table at Sansa, while flocks of pigeons peck at spilled popcorn and flee from playful dogs. All this goes on just a stone's throw from the busy, bustle of downtown Belgrade. As the sun begins to set, St. Marko's is illuminated by modern

The park's name is derived from the Turkish word "Tas-majdan", which means quarry. And, though it is hard to imagine, the area upon which the park now stands was indeed a stone quarry. up-lighting - it's high brick and stone faĂ§ade rising elegantly over the sleepy treetops. At this time of dusk traffic on the nearby King Aleksandar Boulevard eases somewhat and the park becomes a subdued haven for young lovers. Looming stoutly and stylishly behind St. Marko's is the imposing edifice of the Central Post Office, which appears impregnable with its thick pillars and quarried block walls. As nightfall descends, Tasmajden is taken over by the Belgrade youth, who congregate around the benches or cut through the park en route to various bars and clubs. Even in the wee small hours of the night, random walkers can still be found wandering the gardens and lit-up paths of the park while the park dreams of tomorrow. Then the sun begins to rise, the cawing of the crows and cooing of the pigeons fill the air, the church doors open, Sanse waiters arrive as the church bells signal the start of a new day in Belgrade's downtown oasis of calm.â&#x20AC;˘ CorD | January 2005

Belgrade Directory

Theatres, Music & Museums

THEATRES • ATELJE 212, Svetogorska 21, tel. 324-7342 • BELGRADE DRAMA THEATRE, Milesevska 64a, tel. 2423-686 • BITEF THEATRE, Skver Mire Trailovic 1, tel. 3220-608 • DADOV, Djure Salaja 6/I, tel. 3243-643 • DAH THEATRE, Humska 12, tel. 2441-680 • ISTER THEATRE, Koste Glavinica 7A, tel. 650-757 • JUGOSLAV DRAMA THEATRE, Kralja Milana 50, tel. 644-447 • KPGT, Radnicka 3, tel. 3055-082, 3055-070 • NATIONAL THEATRE (Opera, Ballet, Theatre Plays), Francuska 3, tel. 620-946 • CHAMBER OPERA MADLENIANUM, Zemun, Glavna 32, tel. 316-25-33 • THEATRE ON TERAZIJA, Trg Nikole Pasica 3, tel. 3245-677, 410-099 • SCENA RADOVIC, Aberdareva 1, tel. 323-8817 • SLAVIJA THEATRE, Svetog Save 18, tel. 436-995 • THEATRE T, Bulevar kralja Aleksandra 77a, tel. 403-570 • THEATRE BOJAN STUPICA, Kralja Milana 50, tel. 644-447 • THEATRE KULT, Bulevar kralja Aleksandra, 77a, tel. 242-860 • ZVEZDARA THEATRE, Milana Rakica 38, tel. 2419-664 CHILDREN’S THEATRES • BOSKO BUHA, Trg Republike 3, tel. 632-855 • MALO POZORISTE DUSKO RADOVIC, Aberdareva 1, tel. 323-20-72 • POZORISTANCE PUZ, Bozidara Adzije 21, tel. 2449-464 • POZORISTE LUTAKA PINOKIO, Karadjordjeva 9, tel. 2691-715 • THEATRE RODA, Pozeska 83a, tel. 545-260 CINEMAS • AKADEMIJA 28, Nemanjina 28, tel. 3611-645 • BALKAN, Brace Jerkovica 16, tel. 3343-491 • DOM OMLADINE, Makedonska 22, tel. 324-8202 • DOM SINDIKATA, Trg Nikole Pasica 5, tel. 323-4849 • 20. OKTOBAR, Balkanska 2, tel. 687-182 • DVORANA KULTURNOG CENTRA, Kolarceva 6, tel. 2621-174 • FONTANA, Pariske komune 13, tel. 602-397 • JADRAN, Trg Nikole Pasica, tel. 624-057 • JUGOSLAVIJA, Bulevar Mihaila Pupina bb, tel. 2676-484 • KOZARA, Terazije 25, tel. 323-5648 • MALA MORAVA, Spasicev pasaz, tel. 623-198 • MALI ODEON, Kneza Milosa 14-16, tel. 643-280 • MILLENNIUM, Knez Mihailova 19, tel. 2623-365 • MUZEJ KINOTEKE, Kosovska 11, tel. 324-8250 • ODEON, Narodnog fronta 45, tel. 643-355 • PALAS SUMADIJA, Turgenjevljeva 5, tel. 555-465 • RODA, Pozeska 83a, tel. 545-260 • SAVA CENTAR, Milentija Popovica 9, tel. 311-4851 • TUCKWOOD CINEPLEX, Knez Milosa 7, tel. 3229-912 • VUK, Bul. Kralja Aleksandra 77a, tel. 2424-860 • ZVEZDA, Terazije 40, tel. 687-320

CorD | January 2005

CULTURAL CENTRES • BRITISH COUNCIL, Terazije 8, tel. 3023-800 • CENTRE FOR CULTURAL DECONTAMINATION, Bircaninova 21, tel. 681-422 • STUDENTSKI GRAD CULTURAL CENTRE, Bulevar AVNOJ-a 179, tel. 2691-422 • BELGRADE YOUTH CENTRE, Makedonska 22, tel. 3220-127 • DOM VOJSKE JUGOSLAVIJE, Brace Jugovica 19, tel. 323-99-71 • FRENCH CULTURAL CENTRE, Zmaj Jovina 11, tel. 3023-600 • GERMAN CULTURAL CENTRE, Knez Mihailova 50, tel. 2622-823 • ITALIAN CULTURAL CENTRE, Njegoseva 47/III, tel. 244-23-12, 444-72-17 • KULTURNI CENTAR BEOGRADA, Knez Mihailova 6/1, tel. 621-469 • INTERNATIONAL CULTURAL CENTRE - JUBIN, Terazije 26, tel. 687-836, fax. 687-760 • RUSSIAN CULTURAL CENTRE, Narodnog fronta 33, tel. 642-178, 688-300 • REX, Jevrejska 16, tel. 3284-534 • STUDENTS CULTURAL CENTRE, Kralja Milana 48, tel. 659-277 • FOUNDATION OF ILIJA M. KOLARAC, Studentski trg 5, tel. 630-550 • GUARNERIUS, Dzordza Vasingtona 12, tel. 33-46-807 EXHIBITION GALLERIES • GALLERY OF THE SERBIAN ACADEMY OF ARTS & SCIENCES, Knez Mihailova 35, tel. 334-2400 • BELGRADE GALLERY, Andricev Venac 12, tel. 323-8789 • BAZALT GALLERY, Lazarevacki drum 7, tel. 553-689 • PAVILJON CVIJETA ZUZORIC, Mali Kalemegdan, tel. 2621-585 • DOMA OMLADINE GALLERY, Makedonska 22, tel. 3248-202, ext. 25 • THE GREAT GALLERY OF STUDENTSKI GRAD, Bulevar AVNOJ-a 179, tel. 2691-442 • GALERIJA FAKULTETA LIKOVNIH UMETNOSTI, Knez Mihailova 53, tel. 635-952 • FRESCO GALLERY, Cara Urosa 20, tel. 2621-491 • GALERIJA GRAFICKOG KOLEKTIVA, Obilicev venac 27, tel. 627-785 • GALERIJA HAOS, Cara Lazara 12, tel. 627-497 • GALERIJA KULTURNOG CENTRA BEOGRADA, Knez Mihailova 6, tel. 2622-926 • JUGOSLOVENSKA GALERIJA UMETNICKIH DELA, Andricev venac 4, tel. 3238-789; Dositejeva 1, tel. 627-135 • GALERIJA-LEGAT MILICE ZORIC I RODOLJUBA COLAKOVICA, Rodoljuba Colakovica 13, tel. 663-173 • GALERIJA-LEGAT PAJE JOVANOVICA, Kralja Milana 21, tel. 3340-176 • GALERIJA-PETRA DOBROVICA, Kralja Petra 36, tel. 2622-163 • SANU GALLERY OF SCIENCE AND TECHNOLOGY, Djure Jaksica 2, tel. 3283-490 • GALERIJA PROGRES, Knez Mihailova 22, tel. 182-626 • GALERIJA PRIRODNJACKOG MUZEJA, Mali Kalemegdan 5, tel. 328-4317 • MUSEUM OF CONTEMPORARY ART, Pariska 14, tel. 630-940 • GALERIJA STARA KAPETANIJA, Zemun, Kej oslobodjenja 8, tel. 612-023 • GALERIJA SULUJ, Terazije 26/II, tel. 685-780 • GALERIJA 73, Pozeska 83a, tel. 557-142 • GALERIJA ULUS, Knez Mihailova 37, tel. 2621-954 • GALLERY OF THE YUGOSLAV ARMY, Brace Jugovica 19, tel. 323-47-12 • GALERIJA ZADUZBINE ILIJE M. KOLARCA, Studentski Trg 5, tel. 185-794 • ZEPTER GALLERY, Kralja Petra I no.32, tel. 328-1414

MUSEUMS CULTURAL&HISTORICAL MUSEUMS: • VUK AND DOSITEJ MUSEUM, Gospodar Jevremova 21, tel. 625-161 • ETHNOGRAPHIC MUSEUM- Studentski trg 13, tel. 328-1888 • SERBIAN ORTHODOX CHURCH, Kralja Petra 5, tel. 3282-595 • NATIONAL MUSEUM, Trg Republike 1a, tel. 624-322, 438-886 • MUSEUM OF PEDAGOGY, Uzun Mirkova 14, tel. 627-538 • THE MANSION OF DUCHESS LJUBICA, Kneza Sime Markovica 8, tel. 638-264 • THE MANSION OF DUKE MILOSH, Rakovicki put 2, tel. 660-422 • DJURA JAKSIC HOUSE, Skadarska 34, tel. 324-7334 • MANAK’S HOUSE, Gavrila Principa 5, tel. 633-335 CITY MUSEUMS: • BELGRADE CITY MUSEUM, Zmaj Jovina 1, tel. 630-825 • ZEMUN CITY MUSEUM, Glavna 9, tel. 617-752 TECHNICAL MUSEUMS: • YUGOSLAV AERONAUTICS MUSEUM, Belgrade Airport, tel. 670-992 • RAILWAY MUSEUM, Nemanjina 6, tel. 361-0334 • MOTORCAR MUSEUM, Majke Jevrosime 30, tel. 3241-566 • SCIENCE & TECHNOLOGY MUSEUM, Djure Jaksica 9, tel. 187-360, 3281-479 • ELECTRICAL INDUSTRY MUSEUM, Skenderbegova 51, tel. 630-285 • POSTAL MUSEUM, Majke Jevrosime 13, tel. 3210-325 • ARCHITECTURE MUSEUM, Djure Jaksica 9, tel. 187-360, 3281-479 HISTORICAL MUSEUMS: • MILITARY MUSEUM, Kalemegdan, tel. 3344-408 • BELGRADE FORTRESS MUSEUM, Kalemegdan bb, 631-766 • YUGOSLAV HISTORICAL MUSEUM, Trg Nikole Pasica 11,

• MUSEUM OF BANJICA’S CAMP, Veljka Lukica-Kurjaka 33, tel. 669-690 • JEWISH HISTORICAL MUSEUM, Kralja Petra 71, tel. 2622-634 • SERBIAN HISTORICAL MUSEUM, Nemanjina 24/VII, tel. 3674-057 MEMORIAL MUSEUMS: • MEMORIAL MUSEUM JOVAN CVIJIC, Jelene Cvetkovic 5, tel. 3223-126 • NIKOLA TESLA MUSEUM, Krunska 51, tel. 2433-886 • MEMORIAL MUSEUM TOMA ROSANDIC, Vasilija Gacese 3, tel. 651-434 • IVO ANDRIC MUSEUM, Andricev Venac 12, tel. 323-8397 NATURAL HISTORY MUSEUMS: • MUSEUM OF NATURAL HISTORY, Njegoseva 51, tel. 344-2149, 344-2568 • MUSEUM OF SERBIAN MEDICINE, Dzordza Vasingtona 19, tel. 3245-149 ART MUSEUMS • AFRICAN ART MUSEUM, Andre Nikolica 14, tel. 651-654 • THEATRE MUSEUM, Gospdar Jevremova 19, tel. 626-630 • CONTEMPORARY ART MUSEUM, Usce, tel. 311-5713 • DESIGN MUSEUM, Vuka Karadzica 18, tel. 626-494 • CINEMA MUSEUM, Kosovska 11, tel. 324-8250 CONCERT HALLS • ATRIJUM OF THE NATIONAL MUSEUM, Trg republike 1a, tel. 624-322 • BELGRADE PHILHARMONIC HALL, Studentski trg 11, tel. 635-518 • DVORANA DOMA SINDIKATA, Trg Nikole Pasica 5, tel. 323-4849 • SAVA CENTRE, Milentija Popovica 9, tel. 311-4322, 139-840 • KONAK KNJEGINJE LJUBICE, Kneza Sime Milosevica 8, tel. 638-264

Places of worship RUSSIAN ORTHODOX CHURCH Crkva Svete Trojice, Takovska 4, tel. 334-1894 SYNAGOGUE - Marsala Birjuzova 19, tel. 622-634 ORTHODOX CHURCHES Crkva Ruzica i kapela Svete Petke, Kalemegda 6, tel. 630-400 Hram Svetog Save, Krusedolska 2, tel. 432-585 Pokrov Presvete Bogorodice, Kajmakcalanska 55, tel. 424-431 Saborna crkva Sv. Arhangela Mihaila, Sime Markovica 3, tel. 635-832 Sv.Aleksandar Nevski, Cara Dusana 63, tel. 629-274 Sv. Apostoli Petar i Pavle, Bulevar vojvode Putnika 11, tel. 663-120 Sv. Car Konstantin i carica Jelena, Jove Ilica 123, tel. 472-295 Sv. Georgije, Zrmanjska 1, tel. 555-942

Sv. Marka, Bulevar kralja Aleksandra 17, tel. 323-1940 Sveta Trojica, Zemun, Cara Dusana 83, tel. 100-301 Vaznesenjska crkva, Admirala Geprata 19, tel. 643-533 ADVENTIST CHURCHES Bozidara Adzije 4, tel. 453-842 Kumodraska 85a, tel. 493-235 BAPTIST CHURCH Slobodanke Danke Savic 33, tel. 410-964 MOSQUE Bajrakli Mosque, Gospodar Jevremova 11, tel. 622-428 REFORMIST CHURCH - Dobracina 33, tel. 631-398 ROMAN CATHOLIC CHURCHES Crkva Krista Kralja, Krunska 23, tel. 323-2308 Svetog Petra, Makedonska 23, tel. 322-6919 Crkva sv.Ante, Zemun, Strosmajerova 6 Blazena Devica Marija, Hadzi Mlentijeva 75, tel. 435-712 CorD | January 2005

Belgrade Directory ... find out all about philately-numismatics? • Every month there is a fair for those interested in philately, numismatics, and other hobbies. Usually philatelists gather every Sunday and display their collections in the Slavija Theatre, 16 Svetog Save St. From 9am to 2pm. More details can be obtained from the Serbia Philatelists Association by calling 638-751.

... host a reception or party?

CorD's editorial staff will attempt to find and give answers to questions of current interest to our readers, so please send in your questions for future editions. In this issue, we reply to the most frequently asked questions amongst newcomers to Belgrade.

... install a satellite TV dish and antenna? • No special procedure is required for installing an antenna to receive TV programmes via satelitte. You can call one of many equipment and installation service providers and, provided conditions in your building are favourable, satellite signals can be received.

... get emergency car repairs or roadside assistance?

• If you want to host a reception, celebration, or any kind of party, in your flat, office, or anywhere else for that matter, you can leave the whole organisation and selection of refreshments to the highly professional PartyService. All information is available by calling Belgrade 3946-461, or via the website at www.partyservice.co.yu.

... visit Serbia's famous spas and tourist attractions? • Serbia boasts numerous spas with thermal and mineral water, as well as specialised health resorts. Among the most popular are Vrnjacka Spa, Bukovicka Spa and Soko Spa. All information regarding these tourist and recreation centres can be obtained via tourist agencies, as well as via the web site at: www.vrnjackabanja.org.yu, www.bukovickabanja.com, www.sokobanja.co.yu

... hire a limousine? • If your car breaks down while you are driving in the city, or even in the countryside, you are best advised to contact the 'International Touring and Information Centre of the Automobile Association of Serbia & Montenegro'. If you happen to be a member of this organisation, or similar affiliated foreign organisations, you can receive special terms. All relevant information can be obtained 24-hours-a-day by calling 9800 or 24 19 555, or via the website at www.amsj.co.yu

• Luxury transportation is available from Limousine Service. With their luxurious, stylish and glamorous vehicles, Limousine Service will ensure an unforgettable ride for those choosing to hire one of their cars. Reservations can be made via email, fax or phone. Subsequent trips can be booked 48-hours in advance over the phone or via email. Contact them on 063/125555 or visit them online at www.limoservis.co.yu

... see a video montage about Belgrade?

... buy indoor plants?

• Inform your friends and business partners about Serbia's capi-

• Belgrade's Horticultural Centre provides for all your horticultural needs under one roof, including indoor and outdoor plants, garden and window-box plants, seeds and seedlings, artificial flowers, all necessary equipment and much more. The Centre also offers specialist help, advice and assistance for any botanical problem. Visit the Garden Centre at 102 Partizanska Street, Vidikovac. For further information, call the Centre on Belgrade 2322 322 or visit the website at www.gardencentar.co.yu

tal through a short, informative video presentation of Belgrade. The two-minute plus video, available in English or Serbian, can be downloaded from the Belgrade Tourist Organisation's website (www.tob.co.yu). A longer VHS or CD-rom compatible version of the film can be ordered online. Details and further information are available via the website.

... observe the night sky through a telescope?

... get good quality dry cleaning? • At the 'Rudjer Boskovic' Astronomical Society, located at 16 Upper Town, Kalemegdan Park, you can observe the city and its surroundings through panoramic telescopes. Nighttime observations are also possible through astronomical telescopes that enable you to see all the planets of our solar system and their satellites; as well as other star clusters and constellations. The observatory is open for visitors on Tuesdays, Wednesdays and Thursdays from 9am to 4pm and on Fridays and Saturdays from 3pm to 10pm. Information is available by calling Belgrade 30-32-133.

CorD | January 2005

• If you need your clothes dry cleaning there is one very high quality service: Pop's service, which is now here for you with its chain of stores. They can even deliver your clean clothes directly to your door. All clothes are specially cleaned and ecologically protected from moths et cetera. Contact: Serdar Jola 1a; Phone: Belgrade 668 685, 367 16 42, Showroom: Milesevska street 42, Phone: Belgrade 439 420. Pop also has a dry cleaning centre in the New Mercator centre, where you can leave your clothes.