10 VALUES DEFINE BORDERS EU membership is a realistic and valuable goal for Serbia & Montenegro, and will certainly be worth the effort required. EU membership means better rights for citizens, better economic prospects and living standards and better neighbourly relations and regional co-operation.
interviews | opinions | news | comments | events No13 - February 2005
Director: Ana Novcic ana.novcic@cma.co.yu Editor in Chief: Dragan Bisenic d.bisenic@cma.co.yu
Olli Rehn
Deputy Editor: Mark Pullen m.pullen@cma.co.yu
EU Commissioner for Enlargement
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 Š CMA 2004/2005
www.cordmagazine.com
28 PROSPERITY AHEAD The good news is that we were put under the EU General Directorate for Expansion: previously we were under the EU Foreign Affairs Directorate. We expect the Feasibility Study to be completed in the first quarter of 2005.
Dr. Milan Parivodic Serbian Minister for International Economic Affairs
40 US AIDS TRANSITION Corruption is something that every society needs to address. We still need to address it back home in the U.S. So we have to make sure we provide built-in systems that safeguard against these sorts of pitfalls; and ensure that people are publicly punished if caught.
Keith E. Simmons Director of USAID Mission to SCG
52 BRAZIL: LATIN LEADER We don't think of any leadership roles because this always provokes reactions that are very natural. Of course, everything that happens in Brazil impacts on our neighbours.
H.E. Rubem Amaral Junior Brazilian Ambassador to SCG
4
CorD | February 2005
contents
16 POSITIVE "B PLUS" After many years, Serbia (as part of the State Union) has earned its first credit rating. Famous independent company Standard and Poor's gave Serbia a rating of B+/Stable/B in its report published last December.
22 RETURNEES REQUIRED
32
Wolfgang Petritsch UN Ambassador in Geneva
"‌the EU is the largest contributor of financial and technical assistance in the Balkans. In this way the EU is, I must say, playing an extraordinarily positive role."
GLOBAL TRAGEDY Homeless people are now a very important issue and we have to find ways of taking care of them and relocating them to other areas. The only possibility for Indonesia to solve a situation of this magnitude is with international assistance.
H.E. Ladjuris Ambassador of the Republic of Indonesia to SCG
INVESTMENT CONDUIT
U.S. POLICY FOR SCG Americans believe they do not have to talk with Serbia as equals‌It is considered that they should not be respected as negotiators, or be party to discussions, but America should simply put its foot down and say "you have to fulfil this and that."
48
President of Raiffeisenbank a.d. Belgrade
I believe that Serbian politicians will behave in accordance with the mood of the majority of the population, who think that international community obligations have to be fulfilled regardless of how difficult they are.
36
Obrad Kesic U.S. Democratic Party member, former IREX Foundation expert
Budimir Kostic
90
FASHION: ROKSANDA ILINCIC
84 TECHNO TALK
CorD | February 2005
5
Comment
Juggler on a tightrope T
he proverbial noose is inexorably tightening around Serbia's neck as the country attempts to navigate its way along the mine-laden road to integration. The Hague Tribunal, Kosovo, internal State Union relations and Republika Srpska are the issues that immediately spring to mind, though they are by no means the only issues. Inconsistency and the faltering reform process, the troubling economic situation, growing poverty levels and social tension are all problems. Moreover, the country is seemingly lagging behind all other countries of the region in the process of EU and Euro-Atlantic integration, as well as restructuring the military and achieving political stability. With such a concentrated abundance of serious problems, Serbia undoubtedly requires significant political capacity and solid international allies. The question to be asked is whether or not the Serbian political elite are capable of examining the unambiguous 'road signs' instead of looking only at their own faces in the mirror. It appears that Serbia's splintered political practitioners are more ready and willing to turn the country into an international protectorate (which has all but happened already), than to assume their responsibility through democratic procedures and discourse, and take on the guiding role gifted to them by the electorate to re-establish the power and reputation of the defeated and long-suffering country inherited from the haughty, unskilled, imperialistic rulers of the '90s. Is the post-2000 crew capable of providing answers to the following questions: what is Serbia's long term interest regarding the previously identified problems, rather than daily political profiteering? What is the right way to achieve that objective? Do we have the necessary domestic and international resources to achieve that end? Who are the contributors, allies and enemies? Is there any alternative and, if so, how much would it cost and what would Serbia gain? Which overall strategy would incur the lowest costs? How can we set up a matrix of consensus when forces are dispersing energy in all directions and punches are being dealt from unexpected angles at unexpected times? It seems as though the political collective are playing the cruel and unpredictable game of Serbian Roulette - where, as opposed to the Russian version, all but one of the chambers are loaded. Thus, the result, as always, is that Serbian heads will roll first, but they won't be the only ones to roll. Serbia is clumsily traversing a political tightrope whilst juggling three burning balls and looking skywards. Then, with a giggle and a friendly smile, someone on the sidelines throws a fourth ball towards the clumsy high wire dancer to enjoy Serbia's sorrow all the more. The tightrope journey begins with the collective burden of the '90s and will only end with the safety of full EU and Euro-Atlantic integration. Underneath is the burning chasm of isolation and the despairing pit of insignificance. The long, perilous walk has begun and every tremor of failure causes the nation to shudder in expectation of a fall into oblivion. This walk of death is by no means occurring behind closed doors. The whole of the Balkans, the European Union and Washington sit collectively engrossed and enraptured in the auditorium of international politics, watching this untrained high wire dancer stumble along her
6
CorD | February 2005
path. Their nail-biting fascination is not merely a macabre enjoyment to watch others struggle, but rather because the very real dangers are there for all to see and the price of Serbia's failure could be high for everyone. As they sit and watch, they yell advice to the confused performer. The EU's messages are crystal clear: "we have transferred you to the General Directorate for expansion and we are ready to do everything we have done for others in order for you to become a future member. We are opening up pre-accession instruments for you with budget coverage until 2007. Until then, we have already fast-tracked signing of the European Partnership, which was only supposed to come after the signing of the Stabilisation and Association Agreement. Every year, in fact, we compile reports on the fulfilment of the obligations for accession and membership, even though that should come later. We have opened 25 EU internal programmes for you, which you can enter immediately if you have capacities (you are already using four, and it
Serbia is clumsily traversing a political tightrope, whilst juggling three burning balls and looking skywards. Then, with a giggle and a friendly smile, someone on the sidelines throws a fourth ball towards the clumsy high wire dancer to enjoy Serbia's sorrow all the more. is possible to enter three to five per year if there is the administrative capacity, necessary resources and an idea of what is wanted and what is the priority). We have already given you the free approach to the EU market for the majority of products, and recently for textiles too. You are not capable of using many of those privileges. We have accepted you into the mutual European development and research space, etc, etc‌ So, what more do you want, you who are so unsettled, disorganised, unreliable and risky?" The reply is: mistrust, disappointment, impatience; the fear of external participants; a lack of self confidence. Like in the other countries of the so-called Western Balkans, what lies in front of Serbia is the challenge of simultaneous stabilisation, transition and integration. ("The Western Balkans: carries on", Caillot Paper, No.70). Co-operation with The Hague is the first, "non-postponeable" issue. Then comes Kosovo, the final status of which has found its way onto the announced agenda. The EU cannot integrate weak, unfinished states and protectorates, nor negotiate with them successfully, which we have already experienced. That means that the EU will have to get even more involved in the development and preparing of states in this region than it has to date. Its first interest is security, and an important instrument is regional co-operation between the countries of the Western Balkans. Commencing the mechanism of international support, co-operation, and even a mutual negotiating front towards the EU, would crucially speed up the process of integration. That is certainly the way towards abolishing visas for the region’s countries, which is one of the burning issues of the new quality relationships with the EU. Europe cannot allow an enclave in ruins to be its future centre (with Bulgaria and Romania as members and Turkey in some next round). Let's help our neighbours and the EU in order to help ourselves. Regardless of how absurd that sounds, that is the hierarchy of alliance and the hierarchy of solution: the only empty space in the cylinder.• Dr. Jelica Minic , Secretary-General of the European Movement in Serbia
Interview
VALUES DEFINE Last year will be remembered historically as the year of the European Union's largest single enlargement, with ten countries joining and two others completing their accession talks. However, this is by no means a one-off occurrence. The Union has expanded five times throughout the half-century that it has existed and this process will continue - so said EU Commissioner for Enlargement, Olli Rehn, speaking to CorD this month.
Olli Rehn, EU Commissioner for Enlargement By Dragan Bisenic
Exclusively for CorD
S
peaking exclusively to our magazine during his recent visit to Belgrade, the former Finnish Foreign Minister said that the decisions taken in late 2004 to commence accession talks with Turkey and Croatia provided clear evidence that the EU expansion process was far from completed. Addressing the broader prospects of EU accession for wouldbe members and his specific role as Enlargement Commissioner, Rehn said: "I hope that by the end of my term as Enlargement Commissioner, in 2009, many other countries in this region will have moved closer to the European Union. My goal is that in 2009 the EU will have about 27 members, with the Western Balkan countries, including Serbia & Montenegro, of course, well on their way to the European Union; and with Turkey on track through rigorous reforms. "Enlargement is one of the EU's most successful policies.
10
CorD | February 2005
The Union has progressively extended its zone of peace and democracy across the European continent. Following the entry of 10 new members last May, the EU stretches from the Atlantic to the Carpathian Mountains and from Northern Lapland to the coast of the Levant in the Eastern Mediterranean" said Rehn. What does this mean in the sense of the new European borders? I am often asked where Europe's ultimate borders lie. My answer is that the map of Europe is defined in the mind, not just on the ground. Geography sets the frame but, fundamentally, it is values that make the borders of Europe. Enlargement is a matter of extending the zone of European values, the most fundamental of which are liberty and solidarity, tolerance and human rights, democracy and the rule of law. According to the EU's treaties, which are its legal basis, the Union's doors are open "to all European states, which respect its values and are committed to promoting them together". However, the established conditions for accession go beyond the treaty provisions. There are four prime criteria that a country must meet in order to win the acceptance of the European public
Interview
BORDERS and governments: First, a country must have a European vocation, as measured by the will of its own people to join - the Turkish people seem to have this vocation while the Norwegians seem to lack it, even though Norway could meet most of the other criteria today. Accession requires a concerted effort over many years, so political leaders must ensure their population broadly backs the enterprise. Joining the EU changes a country. It becomes part of a larger community, which affects its domestic laws and institutions. Elites alone cannot ensure the legitima-
Accession requires a concerted effort over many years, so political leaders must ensure their population broadly backs the enterprise. Joining the EU changes a country. It becomes part of a larger community, which affects its domestic laws and institutions. cy of this decision: it must be backed by the citizens. For this reason, civil society is an essential part of the process of joining the EU. You have a big task ahead, which is to explain to your fellow-citizens what EU accession is really about. It is not just a matter of politicians signing a deal, or technocrats deciding on a few legal changes; joining the EU is about changing the whole political system and legal order, which affects the whole society. This process of transformation has to work from the bottom up, as well as the top down. The Union is not a military alliance like NATO, nor is it an international talking-shop. Instead, it is a community of common policies, a community of law and a community of values. The second pre-condition is that any prospective member must respect European values and, most importantly, be able to live up to them. This particularly concerns the rule of law in all
Olli Rehn talking to CorD’s Editor
THE BALKANS
SPACE OF INTEGRATION The European Commission has the tradition of being unbiased and professional. I intend to maintain those principals in my relationships with all countries from the region of the Western Balkans. I hope that I can bring in something from the best tradition of my country concerning that, as well as the building of bridges with South-Eastern Europe. The Directorate for the Western Balkans has passed from the Commission for Foreign Affairs to a new commission. That clearly says something about the prospects of the Western Balkans, when they fulfil certain conditions. The EU's financial programmes will also be integrated into this extension process. In the future, therefore, we will have a better integrated process of extension, from the designing of policies to individual projects. That will eliminate the previous system's defects. Regarding regional co-operation, on the basis of my recent meetings with the leaders from this region, I can say that this idea is increasingly dominating. Now is the time, from the obligatory to those tasks, to become dedicated to concrete jobs. This job is up to the countries themselves. We do what is in our power in the process of stabilisation and association. All countries have signed contracts of free trade and my impression is that there is something missing there, because we cannot see any significant increase in trade in the countries in region. It may be a matter of a lack of stability or legal insecurity, but I think that the countries from this region, together with the EU, should think about how to improve multilateral trade. Judging by statistical figures on direct investment, it is clear that the scope of those investments is very small in comparison with Bulgaria, Rumania, central European countries or Turkey. That means that there is lots of space for attracting foreign investments, as well as improving enterprise and innovation in the region. Of course, what is needed is to have political stability and a regional trade network. The EU would like to achieve that together with you. Regarding visas, I have to reiterate that we are now working very intensively with the Commission's Vice President, Franco Fratini, on easing the visa regime. This applies to the progress in the field of the border crossing regime too. There are two communities that are making decisions and they do not always follow the borders of the country members. You have the Ministries of Foreign Affairs, which always works on how to improve the process of co-operation. The policies led by ministries of internal affairs see this issue from a different angle: from the angle of security and internal reasoning, and not with regard to the income from tourism or cultural exchange. CorD | February 2005
11
Interview
Serbian President Boris Tadic and Olli Rehn know what the EU is really about. You also have to keep your country's politicians up to the mark, so that everybody in Serbia & Montenegro knows what the politicians have to do in order to achieve EU membership. Fundamentally, they have to choose between a nationalist past and a European future". "Becoming a member of the EU is not only of great benefit, it is also a great duty", explained Rehn. When Jean Monnet and other visionaries originally "This is the third pre-condition. All worked out the idea of European integration, they pur- members must be able to carryout the duties of membership, not just reap sued to voluntarily integrate the economies of Europe its benefits. Potential members have so tightly that war between them became unthinkable. to show that they have the administrative capacity to apply EU rules properly, and the political will to do so. They also need to have a funcEuropean integration, which concerns several countries in the tioning market economy and the capacity to cope with competiWestern Balkans. This means that Croatia must fully co-operate tive pressures within the EU's internal market. with the Tribunal before we can start accession negotiations. "EU membership is a realistic and valuable goal for Serbia & Bosnia & Herzegovina must continue to improve its track-record Montenegro, and will certainly be worth the effort required. EU before making further progress on pre-accession. And Serbia & Montenegro must deliver on their international obligations. According to Commissioner Rehn, European values are a REALISM very important part of the European Union: "The EU is a comWITHOUT CYNICISM munity of law, not power. Large and small states live side by side in the EU, and all peoples should be respected. Instead of balIn terms of our next steps with SCG regarding the ance-of-power politics, the rule of law governs the internal and Feasibility Study, which we are writing, the preexternal business of the European Union. It is a community of condition is that the general mark is positive in states that have agreed to pool their sovereignties and obey comorder to be able to commence Stabilisation and mon laws in order to increase their global impact. This principle Association negotiations. We have adopted the of the rule of law also has to be adopted by any state seeking to "twin track" approach in the way that we are join the EU. negotiating with the State Union about its author"Accession is about taking European values into the fabric of ities, and with the country members about the daily life. 'Values' sound rather vague, but they are spelled out authority they have. In December we signed the clearly in the EU's new Constitutional Treaty. They include contract for textiles in that way and, in that sense, democracy, the rule of law, respect for human rights, and the we were flexible. protection of minorities. These are fundamental pre-conditions We are working hard on the Feasibility Study for closer relations with the EU. To implement them, candidate under the management of Renhardt Pribe. We are countries have to ensure these values are respected throughout prepared to present the Study before the end of society. Thus, police officers must respect human rights during March. One of the key criteria will be co-operation every arrest, judges have to be impartial, teachers cannot diswith The Hague Tribunal. I expect SCG to really criminate against children of different ethnic origin and soldiers take important steps in order to improve its comust obey the rule of law." operation with ICTY. We can say that we are led He continued, turning specifically to our country: "In Serbia by idealism without illusions, and realism without & Montenegro it is the academics, the activists, the intellectuals cynicism. I believe that this is a good approach. and the religious associations who need to lead the debate on European values, to ensure that the people in your country spheres of life. Key issues here are rooting out corruption and organised crime, as well as respecting and protecting minorities. Countries that are to join the EU have to live up to their international obligations, including locating and transferring war criminals and fully co-operating with the Tribunal in The Hague. This is an essential condition for progress on the road towards
12
CorD | February 2005
Interview
EU membership is a realistic and valuable goal for Serbia & Montenegro, and will certainly be worth the effort required. EU membership means better rights for citizens, better economic prospects and living standards and better neighbourly relations and regional co-operation.
boost economic development. The European Union is financially assisting countries on their road to Europe. However, best use of this assistance depends on actors on the ground being ready to play their part and take the initiative to start productive and useful projects. The creation of wealth and jobs is ultimately dependent on entrepreneurship and innovation, which can be facilitated by the EU, but not dictated by the Union", added Rehn. "A lot of citizens of SCG, primarily students, are faced with a lot of complications in communication with the EU, starting from the visa regime. This is not good start for any approach to EU". However, the EU official is optimistic: "In my view, it is very important to improve the procedures faced by Serbians and Montenegrins when they apply for visas to visit the European Union. This is a citizens' Europe. I have talked with my colleague Franco Frattini, a Vice-President of the Commission, and we are working together on concrete proposals to pave the way for better visa procedures. Of course, visas are issued by the embassies of individual Member States and they are the ones who ultimately decide how to interpret the rules. But we will do our best to improve the rules on our side. "However, remember that their willingness to do this - and the pace of progress on visas - depends on the pace of reforms that this country makes in improving its border control systems and fighting against organised crime and corruption," said Rehn. Explaining how he sees the future regional integration of the Balkans, Rehn noted: "Regional co-operation, or regional integration, is not something new: it is the founding principle of the EU. When Jean Monnet and other visionaries originally worked out the idea of European integration, they pursued to voluntarily integrate the economies of Europe so tightly that war between them became unthinkable. "The economies of Europe at that time were also rather small, like the economies of this region. Thus, Monnet and his fellow founders of the EU worked on linking energy markets and liberalising trade to foster regional integration and build it in practical terms. That is the germ of the EU's success: that people work together on concrete projects in which they all have a clear interest and then they find that they rely on each other and trust each other more." In conclusion, Commissioner Rehn explained: "Jean Monnet called it "la solidaritÊ de faits" ('solidarity of facts on the ground'). That kind of solidarity, which starts off as physical but becomes mental and intellectual, is what I want the EU to help you build in this region and in this country."•
MORE membership means better rights for citizens, better economic prospects and living standards and better neighbourly relations and regional co-operation. The next step will be to open negotiations on the Stabilisation and Association Agreement, which paves the way for accession negotiations proper. It is now up to Serbians and Montenegrins to clear the hurdles of the past and move on to realise their future in Europe." Considering the complicated nature and complex history of the Balkans, Rehn said that the legacy of the past should, nevertheless, be overcome and the process of EU integration should be achieved. "An essential part of the Stabilisation and Association Process is regional co-operation. The economies of the Western Balkans are small, so regional co-operation is essential for economic development. This can be best achieved in the European framework, with the legal certainty provided by EU rules. Regional co-operation is vital to attract foreign investment. "The creation of common energy networks, for example, would
14
CorD | February 2005
FREQUENT MEETINGS My visit was planned and it does not have anything in common with the cancellation of Javier Solana's visit, i.e. it is out of the question that this is some substitute because he did not come. As for the reasons for his cancellation, you will have to ask him. But he decided to go to Kiev, which is also very important for us and is one of the priorities in EU foreign policy. The EU has a strong influence there. The Council and the EU do have their authority regarding the Commission and it needs to be clarified that the closer a country gets to the official status of "candidate", the higher that country will be on the list of the European Commissioner's priorities. That makes me happy, because it means that I will be coming here more often.
First Serbian credit rating by "Standard and Poor's"
After many years, Serbia (as part of the State Union) has earned its first credit rating. Famous independent Company Standard and Poor's gave Serbia a rating of B+/Stable/B in its report published last December. With a population of around 9.9 million and an average per capita income of $2,217, SCG's ratio isn't spectacularly high, but prospects are good - so said Standard and Poor's analysts.
Serbia & Montenegro's strengths include: • Macroeconomic stability and a growing track record of economic reforms. • Prudent fiscal policies. • The prospects of gradual integration to the EU's economic institutions and an ongoing programme under IMF guidance. Serbia & Montenegro's weaknesses include: • An unstable and unpredictable political environment. • A vulnerable external position • The challenges of further restructuring the economy and developing export capacity.
POSITIVE "B PLUS" S
CG's balance rating has been made with consideration given to the significant political risks and a vulnerable external position, with expectations of continued prudent economic policies and further progress in structural reforms. Foreign and local currency ratings are the same, due to very low levels of financial intermediation and shallow domestic debt markets. Despite recent short-lived and weak coalition governments, progress with institutional and legal reforms aimed towards macroeconomic stability have been fairly steady. Growth has resumed and is projected to reach about 6% in 2004 and 5% in
ADVANTAGES Overall, Serbia's privileged geographical location, its large domestic market, and a skilled labour force, are positive factors to attract FDI. This is especially true for green-field investment, as the most attractive state-owned companies have already been sold, when FDI achieved a record high of $1.4 billion in 2003. In the near future, privatisation-related inflows are likely to be lower, as the remaining companies targeted for sale are less attractive and the sale of state-owned monopolies (such as gas, oil, and telecoms) will take time to materialise.
16
CorD | February 2005
2005, while inflation should fall to less than 10% of GDP in 2005. The general government deficit was reduced to less than 3% of GDP in 2004 and the government's commitment to fiscal austerity should keep deficits well below that level in the medium term. With regard to structural reforms, Serbia's current government is committed to accelerating privatisation in the year ahead (particularly in the banking sector), and speeding up the restructuring of the remaining large, state-owned enterprises. Political risks are Serbia's principal rating constraint. Although recent governments have been reform-oriented, personality-driven politics and infighting among coalition partners has frequently undermined government stability and resulted in early elections. Politics in Serbia remains very polarized, with the antireformist and extreme nationalist parties consistently winning more than a third of the electorate's vote. In addition, unresolved issues - such as the future of the Union with Montenegro, the status of Kosovo, and co-operation with the International Criminal Tribunal for the former Yugoslavia (based in The Hague) - also heighten political risk and limit policy predictability. Serbia's general government debt-to-GDP ratio was forecast to drop to about 65% by year's end 2004, from 74% in 2003, largely reflecting the debt write-off in the October 2004 London Club rescheduling agreement. Although on a downward trend, Serbia's external indebtedness as a percentage of current account receipts (CARs) remains high. Total external debt was estimated at 145% of CARs for year's end 2004, and public sector
First Serbian credit rating by "Standard and Poor's" external debt at 112% of CARs. A wide current account deficit, which is expected to decline only slightly in 2005 to about 12% of GDP (from 14% of GDP in 2004), heightens Serbia's external vulnerability. The stable outlook reflects the expectation that, despite the fragility of the current governing coalition, the government will adhere to its prudent policy programme and the agreement with the IMF will remain on track. The possibility of early elections during 2005, which seem increasingly likely, could temporarily disrupt reform implementation. It is expected, however, that any slippage would be addressed successfully by a new reformist government. That said, any lasting setback to the fiscal performance or reform would endanger macroeconomic stability, international financial support, and Serbia's debt sustainability, thus exerting downward pressure on the ratings. In contrast, Serbia's creditworthiness would benefit from improvements in the political environment, which could facilitate the implementation of Serbia's challenging reform programme, while supporting high growth and foreign investment. Comparative Analysis • Similarly to many 'B' rated nations, unstable coalition governments, evolving but still weak political institutions, and very polarized politics limit policy predictability. • Compared with most peers, Serbia's external position is more vulnerable given the country's large current account deficit and its comparatively high debt burden. • Serbia's reform agenda shares many challenges with its peer countries. With a relatively more prosperous and diversified economy, however, an improved political environment and advancing towards EU integration could underpin faster rating improvements. Similarly to other 'B' rated countries, Serbia's high political risk is a major rating constraint. Unlike The Ukraine, Venezuela and Pakistan, which are all rated B+/Stable/B and where political risks stem from the unpredictability of regimes that are not pluralistic, Serbia's political risk largely reflects the evolving, but still short-lived and weak democratic institutions, together with the latent, albeit declining, threat of regional conflicts. Similarly to most peers within the 'B' category, Serbia's highly polarized political environment and the instability of its reformist coalition government limits political predictability and poses the risk of disrupting the economic reform agenda. Serbia's political risks are more acute than in the more highly rated Federative Republic of Brazil and Turkey (both rated BB/Stable/B), and Former Yugoslav Republic of Macedonia (BB/Positive/B), or Uruguay (B/Stable/B) and Republic of Senegal (B+/Stable/B). With a longer tradition of democratic institutions, all these countries show more stable and liberal political and economic institutions to varying degrees. In line with many peers, and as a direct consequence of the weak institutional environment and the legacy of Serbia's previous regime, the country is highly perceived as suffering from corruption. The 2004 Transparency International corruption perceptions index ranks Serbia 97th of 145 countries (jointly with Macedonia). In comparison, Uruguay and Brazil have much better standings, at 28th and 59th respectively, while Turkey, at 77th, and Senegal, at 85th, also hold better rankings. Venezuela, The Ukraine, and Pakistan, meanwhile, have worse rankings, at 114th, 122nd, and 129th, respectively. Compared with others in South East Europe, Serbia's political risks are the highest among rated neighbours, which are more advanced in their reform agendas. In addition, these states have more stable and entrenched political institutions, reflected in their higher ratings. As shown by the improving rating trajectories in the past few years in these countries, particularly the Republics of Bulgaria (BBB-/Stable/A-3), Romania
(BB+/Stable/B), and more recently Croatia (BBB-/Positive/A-3), progress towards EU membership has provided an invaluable anchor for advancing with economic reforms. In addition, it has helped to stabilise political systems in these countries. For the time being, however, political issues continue to hold back Serbia's prospects of faster integration with the EU's economic and political institutions. Serbia's GDP per capita is relatively healthy for the 'B' category. At an estimated $2,217 in 2004, it is more than double the 'B' medium of $1,116, and is well above GDP per capita levels in Pakistan, Senegal, and The Ukraine. Serbia's growth prospects are in line with most of its peers, with GDP projected to grow by four to five per cent annually. Though in need of much investment and restructuring, Serbia's manufacturing sector is varied and its economic base is well diversified, particularly when compared with the more narrow economies of Senegal or Venezuela. Nevertheless, Serbia shares a challenging reform agenda with most peers, including the need to restructure state-owned companies, develop a modern and competitive banking sector, and rebuild the country's infrastructure, particularly the energy and transport sectors. Despite the uncertain political environment, Serbia's prospects of attracting foreign direct investment (FDI) compare favourably with peers, due to the country's skilled labour force, a sizable and relatively sophisticated domestic market and a good geographical location. Serbia's FDI has been the highest as a percentage of GDP in its peer category in recent years, and this is projected to continue, with FDI of about three to four per cent of GDP annually. In 2004, Serbia's external vulnerability, as measured by gross external financing requirements (current account balance plus amortization of long and short-term debt) as a percentage of
CorD | February 2005
17
First Serbian credit rating by "Standard and Poor's" reserves, was estimated at 105%. This is slightly lower than the 'B' mean of 102%. Serbia also faces lower debt service requirements than Turkey and Brazil, despite the lower net external debt burdens of those two countries. This difference reflects the larger share of Serbian debt that is owed to multilateral financial institutions at concession or low interest rates. Serbia's external vulnerabilities, however, are heightened by its large current account deficit, an external debt burden that is high for the peer
group, and the expected increase in debt servicing costs in the medium term. Political Environment • Although Serbia's recent governments have been reformoriented and progress with reforms has been steady, the political environment remains unstable, limiting policy predictability. • The current weak coalition government is unlikely to fulfil its term, which expires in 2007, and early elections could disrupt the reform agenda, even if only temporarily. • Further EU convergence could underpin progress with economic reforms and a more stable political environment, but faster integration continues to be held back by unresolved political issues. On a positive note, the technical prerequisites that were obstructing progress on integration, in particular the EU demand that the Republics of Serbia and Montenegro should create a single trade system and market, have been partially resolved by the EU's introduction of its "twin track" approach.
18
CorD | February 2005
According to this, trade and economic issues will be discussed separately with the two Republics, while other matters will be dealt with between the EU and the State Union. It is increasingly likely, however, that the Union between the Republic of Serbia and the Republic of Montenegro will eventually dissolve and both Republics will negotiate with the EU totally independently. As per the 2003 Union Charter, both republics have the option of declaring independence after an initial three-year period. Montenegro is expected to hold its independence referendum in 2005-2006, although talks between the two Republics to reach a common agreement to dissolve the Union could take place at an earlier date. The Union of Serbia & Montenegro (commonly referred to as a "loose" union) replaced the Federal Republic of Yugoslavia (FRY) in February 2003. The Union's institutional set-up includes a Federal Assembly and a five-member Council of Ministers headed by the president of the Union. On policy issues, the Republics co-ordinate on little more than foreign affairs and defence. Both Republics have their own independent governments and are fully sovereign on economic matters, with each Republic having its own fiscal and monetary policies, its own central bank, different currencies, and distinct reform and economic policy agendas. Although the Union of Serbia & Montenegro is the official interlocutor with most multilateral institutions, the role of the Union's assembly is largely limited to ratifying decisions taken unilaterally by each Republic. • Reforms including privatisation, bank restructuring, and the approval of crucial economic laws, continue to make good progress. • The institutional and economic reform agenda, however, still remains challenging, and it is vital to support foreign investments and the development of a dynamic and competitive private sector. • Economic prospects are good, with annual GDP growth of four to five per cent expected in the medium term, provided that reforms continue to advance at a steady pace and the political environment improves gradually. Privileged geographical location Serbia's official GDP per capita was estimated at $2,217 in 2004. Official GDP figures, however, underestimate output, as they started to account for private companies only in 2004. Until then, only the output of large socially-owned companies and state-owned firms was included. Nevertheless, the private sector share is still minor, with small and mid-sized enterprises (SMEs) with less than 20 employees accounting for about 11% of total production. The share of the grey or black economy is large, with estimates ranging between 30% and 50% of GDP. Economic activity continues to shift gradually from agriculture and industry toward services. In 2003, industry accounted for about 32% of GDP, primary sectors for almost 28%, and services for the rest. Unlike its more advanced neighbours in the Balkans region, Serbia has only just started economic restructuring and the transition process toward a market economy. The tasks of continuing to build the institutional and legal framework, to reform the economy and upgrade infrastructure and the stock of capital, remain daunting. Nevertheless, they are essential to support high growth, to attract FDI, and to boost Serbia's weak export capacity. Serbia had a relatively diversified and competitive industrial sector as a Yugoslav Republic, but this is now obsolete and in need of the technology and expertise transfer that comes with foreign investment. Sectors with good prospects include food processing, furniture, wood-processing, textiles, and pharmaceuticals among others. Wages are rising rapidly, however, and unit labour costs are relatively high by regional standards, particularly taking into account Serbia's still-low productivity levels, which
First Serbian credit rating by "Standard and Poor's" could eventually hinder FDI. Real GDP growth rebounded to more than six per cent in 2000-2001 following the end of the war in Kosovo, but has since edged lower, reflecting Serbia's uncompetitive economy, the impact of economic restructuring, restricted access to credit, and competition from external markets. Republic of Serbia Selected Indicators
Republic of Serbia Economic Indicators
The economy performed better than expected In 2004, with GDP growth estimated to have hit almost six per cent, reflecting the positive effects of 2003's privatisations, manufacturing and agricultural output, which recovered strongly from a disappointing growth rate of three per cent in 2003. High growth also reflects the strong performance in the services sector, which continues to expand rapidly. Real GDP growth is forecast at five per cent in 2005 and 2006, assuming political developments do not significantly disrupt the economic reform agenda. Sustaining this GDP growth rate in the medium term, however, will require unwavering commitment to structural reforms and a more stable political environment. In this regard, Serbia's faster progress towards EU economic integration would provide the optimal anchor to hasten progress with reforms and improve the country's perception among foreign investors, underpinning Serbia's long-term growth prospects. • Fiscal measures to date have reformed the tax system and improved transparency and accountability, but the high share of fixed expenditures needs to be reduced. • Serbia's government debt was estimated at 66% of GDP in 2004 and projected to decline gradually in the medium term. • In contrast, the low interest burden is expected to increase moderately as a share of concessional financing declines.
20
CorD | February 2005
Overall, fiscal reforms in Serbia in recent years have been implemented fast and transparently and fiscal accountability has markedly improved. Fiscal performance has been also robust, as reflected in the continuing decline of the fiscal deficit, in accordance with the targets agreed with the IMF.• D.B.
ELECTIONS THIS YEAR? Serbia's recent governments have always been reform-oriented, but infighting among coalition partners, largely reflecting personality-driven partisan politics, have frequently undermined government stability and resulted in early elections. Politics in Serbia remains very polarized. The possibility that antireformist and extreme nationalist parties, particularly the Serbian Radical Party (SRS) (which consistently wins more than a third of the electorate's vote) could eventually take office heightens political and economic risks. In addition, unresolved issues, such as the future of the Union with Montenegro, the status of Kosovo, and co-operation with the International Criminal Tribunal for the former Yugoslavia, based in The Hague, also increase political risks while limiting policy predictability. Serbia's current government is a pro-reform minority coalition comprising the moderate nationalist Democratic Party of Serbia (DSS), the economic liberal G17 Plus, and an alliance between the Serbian Renewal Movement (SPO) and New Serbia (NS). Since it took office in March 2004, the government has approved a number of economic reform laws, has kept the IMF current extended agreement on track and has agreed debt rescheduling with the London Club of commercial creditors. Despite these achievements, the government's popularity has declined rapidly, while the opposition reformist Democratic Party (DS) has strengthened its position since its leader, Boris Tadic, was elected as President of the Republic in June 2004. Parliamentary elections are due in 2007, but they could take place as early as 2005, reflecting both the difficult relationship between Tadic and Kostunica and the increasing fragility of the current coalition. The smaller coalition partners, G17 Plus and SPO-NS, are becoming increasingly uncomfortable with the government's reliance on the implicit support of former president Slobodan Milosevic's Socialist Party of Serbia (SPS) and with the lack of co-operation with The Hague tribunal, which they see as preventing faster economic integration with the EU. The next elections are likely to result in DS and SRS becoming the largest parties in parliament, with a reform-oriented coalition government being the most plausible scenario. Although the forming of a coalition government could temporarily disrupt the reform agenda, expectations are that any slippage would be addressed successfully by a new reformist administration. On the international front, further economic integration with the EU is likely to continue to be held back by unresolved political issues, such as a lack of cooperation with The Hague, and (to a lesser extent) the status of Kosovo and the future of the Union with Montenegro. Though the Serbian parliament adopted a resolution in October 2004 setting membership of both the EU and NATO as strategic national goals, Kostunica's government continues to refuse to cooperate actively with The Hague, which is an EU prerequisite to progress on economic integration.
Interview Wolfgang Petritsch, former Austrian Ambassador to FRY, former Bosnian High Representative, current UN Ambassador in Geneva Few European Union practitioners have more experience in the Balkans than Austria's Wolfgang Petritsch. Having served as Austrian Ambassador to the Federal Republic of Yugoslavia from 1997 to 1999, including a stint as EU Special Envoy for Kosovo between 1998 and 1999, the longtime servant of the Austrian MFA went on to act as EU Chief Negotiator at the Kosovo peace talks in Rambouillet and Paris in 1999, before beginning his tenure as High Representative for Bosnia & Herzegovina, where he remained until 2002.
Exclusively for CorD
T
his month we spoke to Mr. Petritsch, currently UN Ambassador in Geneva, about the future of the region of the Western Balkans, looking specifically at the scheduled commencement of final status talks for Kosovo and the EU aspirations of the region's countries.
By Mark Pullen
How would you assess the current situation in the West Balkans, particularly regarding the situation in Bosnia & Herzegovina and Kosovo? First and foremost, 2005 to 2006 is a crucial period for the eventual settlement of the whole region of the Western Balkans. On a positive side, Croatia is the first country of the Western Balkans that is to formally commence negotiations with the European Union. Of course, I hasten to add, under the precondition that the Ante Gotovina case is resolved. Gotovina [indicted Croatian Army General] has to be in The Hague and in the hands of the ICTY in order for Croatia to get the go-ahead. These negotiations will be of historic importance to the whole region. The second case is the scheduled start of status talks for Kosovo in mid-2005, of course, provided the review of the standards proves satisfactory. Only then are status negotiations supposed to commence. The third challenge for the whole region is how the union of Serbia & Montenegro will develop. The issue of state union elections is unfortunately still pending. The possibility of referendums on the continued existence of the union in 2006 already
Interview foreshadows the development of the region as a whole. leader Zeljko Raznatovic] as PM? Next is Bosnia & Herzegovina. 2005 marks the tenth The Haradinay case is being handled in The Hague and at anniversary of the Dayton Accords and I believe this provides this time we do not know what the outcome will be. However, an appropriate occasion to thoroughly review the results and whatever happens, the ruling of The Hague will have to be look towards the future for Bosnia and the role of the internaaccepted by everybody, including Mr. Haradinay and Belgrade. tional community in Bosnia & Herzegovina. During my tenure Also, Belgrade needs to reflect on the fact that it was the violent in Sarajevo I started what I then called "the process of ownerperiod in the 1990s, after the abolition of Kosovo's autonomy, ship", or "samoodgovornost" (self responsibility): more and the establishment of a "parallel society", the upsurge of viomore of the public tasks need to be taken over by the local lence and the subsequent foundation of the KLA which characauthorities and, in extension, by the citizens, the stakeholders terises the recent history of Kosovo. Now there is a new situaof any democratic country. I also promoted the so-called "Europeanization" process, which means that more and "‌the EU is the largest contributor of finanmore of the international responsibilities have to be cial and technical assistance in the taken on by Europe. Balkans. In this way the EU is, I must say, One important step was set in April 2002 when Bosnia joined the Council of Europe. I mediated the playing an extraordinarily positive role." transfer of the UN police mission into European responsibility. Only recently SFOR has turned its task over to EUFOR, tion and those people who have committed war crimes have to which marks yet another important development on Bosnia's be sent to The Hague. This is something that the political leadroad to Europe. ership, both Belgrade and Pristina, have to accept. There is no Also, we must not forget the OSCE chairmanship of way out of this. However, if suspected war criminals are cleared Slovenia. This is of significance for the whole neighbourhood. by the ICTY, then one needs to tolerate them in the political Slovenia is an important regional partner and its chairmanship, process. I believe, should have a positive impact on the region, including Macedonia. Long debates have been held on the final solution for Kosovo and some plans have already been devised. Which What is your prediction for the outcome of those processpossible scenario do you see as the most likely to be acceptes? ed by the EU, the UN Security Council and, of course, the Before we talk about a possible outcome, we need to talk actors - Serbs and Kosovo-Albanians? about the necessary input and there, clearly, the European It's not really for me to speculate about the eventual outUnion is the most important actor in the Western Balkans. The come. This is up to the UN-Security council. But I think it is very EU will be crucial in achieving positive results on all the issues clear that since Rambouillet, where autonomy was offered, I mentioned. The Union has to be ready to tackle these challenges in a proactive, pending way. I do have to add that the status decision for Kosovo cannot be expected overnight: mid-2005 can only be the beginning of the negotiation process and it is, of course, in the hands of the United Nations to reach a viable solution. Is it realistic to expect status talks to start in the middle of this year after a review of the standards, considering the situation of Kosovo-Serbs and last March's events? Well, it's very difficult to tell and it's going to be difficult indeed to meet the basic standards in due course. However, I'm still confident that the return of Serbs in particular, freedom of movement and the basic provisions of human rights for Serbs and other minorities will be secured by UNMIK, together with the Provisional Institutions of Kosovo. Naturally, return is a long process: we know from experience in Bosnia that it cannot happen overnight. But now, five years after UNMIK took over, it is high time for greater numbers of returnees. Primarily though, this depends on the political will of the Kosovo-Albanian leadership, but also on a constructive approach in Belgrade. It's very important that the leadership in Belgrade realises that it needs to support the return without any tactical thoughts. Moreover, a meaningful dialogue between Belgrade and Pristina is of utmost importance. What do you see as being the major obstacles to that process in terms of, for instance, personnel: considering that Mr. Haradinay equates to Serbia appointing Seselj [Radical Party founder Vojislav Seselj] or Arkan [late paramilitary
Wolfgang Petritsch CorD | February 2005
23
Interview things have changed quite dramatically because of the NATO intervention and the ensuing ethnic cleansing by Milosevic's security forces. We are, thus, confronted with a whole new situation. On the other hand, I think that Europe will not accept a model of the 19th century for Kosovo, which means it cannot be an ethnically defined entity. But the final decision needs to be taken soon, ideally with the consensus of all sides. Realistically speaking, we know that this is going to be difficult. But we need to maintain the vision that, at the beginning of the 21st century, such a difficult political question can be resolved in the spirit of compromise, even in the Balkans. What is important is that there have to be very clear ingredients in this compromise and that is the provision of human rights, strong rights for minorities, full religious freedom, the rule of law, democracy and all the other basic European principles that apply.
"‌the basic human right to return home is something that cannot be taken away in a democratic Europe‌as long as there is no breakthrough in the return of Serbs to their original homes in Kosovo, we cannot talk of having achieved European standards in Kosovo."
How would you assess the prospects of the countries of the Western Balkans to join the European Union, with the exception of Croatia, which is likely to join after Romania and Bulgaria? This should be of great concern, both to the leaderships of these countries and in Brussels or in the European capitals. We cannot indefinitely accept a black hole in such a volatile part of Europe. So, both sides - Europeans as well as the leaderships of these countries - need to contribute to an early success. There is not going to be full membership soon, but many forms of a much closer relationship with the EU are possible. However, before we talk about this, there need to be clear signals and a commitment on the part of the governments in the region to fully abide by European standards, be that in Kosovo, Serbia & Montenegro, Albania or Bosnia & Herzegovina. It is imperative for people to realise that this is not about waiting passively long enough in order to be automatically accepted. The governments and citizens of all these countries can contribute very actively and constructively to the EU accessions of their countries, provided one abides by the basic European rules of democracy and human rights. The key ingredient is full co-operation with The Hague. There is no way around it and I'm convinced that future generations will be extremely critical of their past leaderships, who have not seriously co-operated with The Hague. Europe can only be united if the same standards apply throughout Europe. If war crimes were committed, perpetrators need to be brought to justice. You said a few times that the EU has to be more active
24
CorD | February 2005
and take a lead in Kosovo and the entire Western Balkans. Which measures does the EU have to take to help put these countries on the right track? I think, fundamentally, it's up to the governments of those countries to put themselves on the right track. The European Union can assist and there is indeed a huge programme already in place in the region: we must not forget that the EU is the largest contributor in terms of financial and technical assistance in the Balkans. In this respect the EU is, I must say, playing an extraordinarily positive role. However, we also need political leadership and there the European Union is still somehow lagging behind. This is due to the fact that the EU does not yet have a fullyfledged "government". Nevertheless, the 25 member states providing "European Governance" need to agree on a comprehensive strategy for the Western Balkans before the European vision loses its attraction with the people of the Western Balkans. There is an imminent danger that if people feel they will have to wait endlessly, they will turn away from the ideals of this "New Europe".
Bringing these abstract notions down to the cold reality of life on the ground in Kosovo, some Serb villages in the province have been without electricity for more than a month. Even the Serbian Government has begun to ignore the situation and UNMIK Chief, Mr. Petersen, failed to answer this question sufficiently when in Belgrade recently. I agree that the situation for Serbs in Kosovo is particularly tragic and I think more attention has to be paid to those who have weathered the storm of the past years and remained there, or have returned in spite of these dismal circumstances. We should do our best to help those unfortunates, because otherwise there's not going to be more returns. Why will people want to return if there isn't even going to be electricity? On the other hand, we need to find ways and means for the public services providing electricity to be paid. For once, Serbs and Albanians should sit down and resolve this problem together. It's a typical example of the need to co-operate in order to achieve positive results. Political non-cooperation means continued suffering for the people of Kosovo, regardless of their ethnicity. Regarding the return of refugees, due to your work in Bosnia you are an excellent example of how good work can achieve fruition in terms of the return of refugees. Nothing tangible has happened in Kosovo as yet. When I came to Bosnia five years after Dayton, the return of
Interview refugees had practically come to a standstill. I had to considerably change the return-policy in Bosnia and only then did people start to move back to minority areas. Looking back on the year 2000, Human Rights Watch termed it a "breakthrough" for returns in Bosnia. I think we are yet to experience this kind of success in Kosovo. We must never give up and the internation-
al community must demonstrate the determination that this basic human right is something that cannot be taken away from the people in a democratic Europe. This principle is clearly nonnegotiable. As long as there is no breakthrough in the return of Serbs to their homes in Kosovo, we cannot talk of having achieved European standards in Kosovo.•
INTERVENTION ERRONEOUS
A
ccording to UN resolution 1244, from June 1999, the international-law basis for the UN's operational readiness level in Kosovo, only the UN Security Council can decide on the secession of Pristina from Belgrade.
indeed the entire region, should achieve a European status. Status cannot be centred on 19th century concepts. Instead, we should ask how Kosovo and Serbia will look in ten years.
Considering the current situation in Kosovo, would you agree that the NATO war of 1999 was the right move? I am still convinced that the intervention was neither correct nor necessary. I would have personally preferred a negotiated solution to the problem. The recent tragic events in Kosovo: the deaths in Kosovska Mitrovica; the destruction and plundering of churches and Serb homes, certainly spell a heavy setback for a pacification of the province. Half of the world intervened in the interests of the human rights in Kosovo and the decent KosovoAlbanians should now display a spirit of reconciliation and finally facilitate the return of refugee Serbs and Roma into their common homeland. The European Union reacted after last March's riots by sending a delegation of the special envoy. Should the special envoy be granted similar powers to the High Representative in Bosnia & Herzegovina? In principle, resolution 1244 applies in Kosovo and must be fully implemented. Moreover, UNMIK remains in charge until the final status question is clarified. In addition, I do not believe that Europe can solve Kosovo's problems alone. Here the U.S., Russia and worldwide organisations must remain united. Regarding the time thereafter, the "Europeanization" of Kosovo should be strongly urged by the UN Mission. As with Serbia or Bosnia, once a final solution is found the European Union should make tangible efforts to offer EU entry to the province. Former UNMIK chief Michael Steiner devised the "standards before status" formula, with which democratic, free market, human rights and legal standards must be reached before a decision on final status is made. Do you feel this is still the correct formula? The status question, in terms of purely reducing legal authority, is not enough. One should begin through the DEK line, which would diminish the possibility of conflict during the deciding of a final status and ensure control of the expected dynamic shift is not lost. Therefore, the "standards before status" formula is crucial for Kosovo. In the end, Kosovo, and
26
CorD | February 2005
Former U.S. special envoy, Richard Holbrook, demanded that Kosovo be granted independence at the beginning of 2004. If this becomes the official position of the U.S. we would have a major problem: Kosovo lies in Europe and cannot simply become a U.S. State. As such, American advisors cannot simply come out with such statements… Do Europe and the U.S. still have the Balkans genuinely on a string? During the Cold War, Western Europe was junior partner to the U.S. That has now changed. This tectonic shift leads to smaller quakes in such a sensitive region as the Balkans. I would not overrate that because the development of the European Union has really taken over here and provides political guidance to give pace to the changes. The EU took over supreme command from NATOled SFOR military forces in Bosnia in 2004. Should the withdrawal of NATO forces in Kosovo also be urged? I believe, in military terms, we must recognise and utilise the dominance of the U.S. Nevertheless, it should be just as clear as it was in Bosnia that once the status question has been resolved in Kosovo then Europe should be the guiding force militarily. The discussion was led by Markus Bickel (German Weekly “Friday”)
Interview
PROSPERITY AHEAD Dr. Milan Parivodic, Serbian Minister for International Economic Affairs Speaking exclusively to CorD magazine this month, Serbian International Economic Affairs Minister Milan Parivodic said that he maintains daily contacts with representatives of foreign countries in Belgrade. "Ambassadors are coming, but businessmen too. And this is not only representatives of foreign companies, but also domestic managers who are trying to establish contacts and work with foreign partners. I think that my job is to be the ambassador of the foreign economic interest in our country and the bridge for our economy to the outside world". You are the president of the Serbian Government's international commission for foreign investments. What does that role entail? Our main task is to remove obstacles to investment. In order to achieve our aim we have to solve several basic problems. At the very beginning is the big problem of the status of the city's construction land. That land has to be commercialised; it has to be put up for sale, not only by the state, but by the owners too. It has to be privatised, i.e. it has to be denationalised. In order for investors to take us seriously we need transparent methods in city planning regulations and transparency in the efficient mechanisms for obtaining construction permits. Once that is done, we will establish the function of supplying for demand through mortgages.
By Katarina Murar, Photo Andy Dall
M
inister Parivodic explained that his primary aim in the area of bilateral co-operation was to "intensify co-operation with the countries that are the most important Serbian partners: Germany, the USA, France, Russia, Britain and Austria; as well as partners from our region, of which the most important are Greece, then Slovenia, Croatia, BiH, Romania and Hungary. Regarding multilateral initiatives, the primary task is accession to the EU and the World Trade Organisation. We have to improve our reputation and, as such, I am attempting to establish personal contacts with important political players from abroad."
28
CorD | February 2005
Why is foreign money so expensive in Serbia? I am aware that money is expensive here. The rates are high. Part of my job is to create conditions to ensure banks feel more secure and are, thus, able to lower credit rates. My Ministry is working to create the legal framework and ensure investments are secure and interest rates can be lowered. A great deal has already been done through the new regulation: the Legal Procedure Law and the new Execute Procedure Law. The legal procedure should now take much less time than previously. Regarding the Execute Procedure Law, I personally brought in the elements that will significantly reduce the period of time required to fulfil demands. This will be reduced from 1000 days to between 30 and 40. We have a new set of company laws too. From 1st January a new company registry will start. We also have the new Company Law and the new Insolvency Law, which should divide the fresh fruit from the rotten. This law was a particularly big avenue for corrupt privatisations. To what extent is the issue of harmonisation of the economic systems of Serbia and Montenegro an obstacle to the EU integration aspirations of our country? That has been an obstacle for a long time because we were obliged to harmonise our economic systems in order to receive the Feasibility Study. When the ministers in the EU realised that there was no realistic chance for such a harmonisation they decided at a Ministries Conference that Serbia and Montenegro, as members of the State Union, could separately approach the EU
Interview and the World Trade Organisation (WTO) in the domain of economy and trade. This served to de-block the process after two years of stalemate. Deputy Serbian Prime Minister Miroljub Labus visited Brussels regarding this issue and I will also go to talk about that integration. The good news is that we were put under the EU General Directorate for Expansion: previously we were under the EU Foreign Affairs Directorate. We expect the Feasibility Study to be completed in the first quarter of 2005. In that way we would be able to sign the stabilisation and accession agreement with the EU before the end of the year. As regards the WTO, we have prepared requests for separate accessions of both Serbia and Montenegro. Following a short wait, we received a positive response from both the EU and the USA. At the February session of the WTO's General Secretariat, two separate groups should be established and we should begin intense negotiations. The idea is for Serbia to become a WTO member in 2007. It is saddening that Serbia has not yet managed to become a WTO member, considering that some many less developed countries have managed to do so. However, that is as a direct consequence of the political process, which did not help the country's integration-targeted political and economic development. For the EU, the assassination of Prime Minister Zoran Djindjic was a major shock. After that crisis hit, the process of stabilisation did not move very quickly.
nism, which will work as a good engine, and the judges, the police and those who are in charge of that should deal with the details of this particular case. In order to successfully bring privatisation to an end, and become attractive to foreign investors we must use the experiences of foreign countries without any local improvisations. In economic life, as well as in the human psychology, there is no speciality. The economic behaviour of tradesmen and enterprisers is the same worldwide. It is based on the same principles and the phenomena are, thus, the same. Therefore, what is important in the transition of a country is the determination to get to grips with the basic problems and solve them, but not to cheat and to follow the accustomed paths because there are clear mechanisms and we should follow the instructions provided by the EU. We should not do that in a servile way, but should rather be aware of our interests. Those from the EU are setting the conditions for us and we should accept them if we want to join that club. The good news is that we were Moreover, the credibility of a company depends greatly on the company put under the EU General director, even more than on the counDirectorate for Expansion: pre- try itself. If our managers have credibility in the eyes of foreigners - potenviously we were under the EU tial partners - companies will do well. Foreign Affairs Directorate. Those companies whose directors are We expect the Feasibility Study real leaders have already found their partners. It is a different thing that we to be completed in the first have a large number of "composite organisations of associated labour", quarter of 2005. mammoths from the past, which were created to meet the needs of the forHave the numerous scandals, such as the Knjaz Milos and C mer socialistic, self-managing, independent Yugoslavia, which Market debacles, contributed to the non-arrival of foreign was oriented towards the third world's markets. That market has investors in Serbia? been lost and those big systems have to be restructured. What I did not participate in those processes. I did not see the docwas healthy in them should be sold and what is not should be umentation and, as a lawyer, I do not like to comment on details closed down. The restructuring processes are going slowly. A of things I do not know very well; nor do I like to place blame on large part of our economy is socially-owned property. The quickanybody. However, I can say that such transactions, which receive est possible privatisation is of crucial importance. the proportion of scandals and still last, are definitely, and critically, harming our reputation. Such situations do occur. They are not Germany is traditionally one of the most important Serbian something unusual, but it is sad that we will only learn from our partners. But German companies have not participated in the own mistakes, rather than learning from the experiences of other privatisation of our companies and there was a lack of larger countries that suffered the same childhood diseases. We are not investments too. Is there any indication of improvements in now in 1989, in the sense of Eastern Europe, or in 1937, in the that area? sense of Western Europe. But this is the end of 2004. Therefore we Germany was the biggest partner of the Serbian economy, but are lagging behind everybody else and we could overcome those the biggest investments made in Serbia so far have come from the childhood diseases by using the experiences of other nations. USA with the arrival of USS, Philip Morris. On the other side, all those who know our economy well claim that Germany is our How do you think we should improve this situation? main partner and until we animate them well we will not stand on The Ministry of Economy has already prepared amendments our feet. The reason that the German economy is not as active as to the Privatisation and Equity Market Laws. In that sense we it could be is that German businessmen are cautious. The Israeli should use not only foreign experiences, but also foreign experts businessmen, for instance, come first. They are, conditionally too. What happened with Knjaz Milos was shocking. The fact speaking, braver and take more risks. The Germans go for a thorthat someone offers a present after the final bids directly disrupts ough analysis of the market and when they estimate that they the economic system of a country. I do not put myself on the side should get in with big investments they do so and they do not of any one bidder. I am interested in creating an efficient mechawithdraw quickly. When they come, they stay. Now the German
CorD | February 2005
29
Interview economy does have an interest in us and that fire should be stoked. When I was in Germany I talked with representatives of the German Chambers of Commerce Association. It is interesting that they relied on the contacts they had through the Serbian Prime Minister, Zoran Djindjic. After the assassination of Zoran
sibility of our wine producers closely co-operating with French counterparts.
It seems that Slovenia is very interested in co-operation with Serbian companies. Their companies are announcing their participation in the privatisation of Serbian companies in the fields of agriculture, tourism and energy production; and Gorenje is building a factory in Valjevo. Why is there a lack of such initiatives from Western European countries? Apart from the Slovenes, we also have big investments from Greek and Austrian companies. It is not at all as big as the Slovenians, but they are aware of the Serbian market and that they have a good image. The Slovenes already have a developed market here. People here were purchasing a lot of Gorenje's products in the '70s and '80s, therefore they have goodwill here. Gorenje is coming to a solid market with substantial investments and that is good. They are very present in the retail trade. Apart from Merkator, there is also Mura. The Croats are increasingly present here, but the Greeks are coming with their banks. In February we are planDr. Milan Parivodic ning a conference in Greece, where our businessmen will have the opportunity to talk with their fight against the Chinese. We colleagues about different potenof certain final products. We tial projects.
On the textile field we cannot should try with the provision already have certain brands that have proved themselves: Legend, Jager, etc. Our designers do have taste and can compete. Djindjic there were visits from German politicians and businessmen, but with no deeper effects. In November I performed a presentation in front of German businessmen in Berlin. There were contacts and visits of our delegations to Germany and now we are expecting to activate the Serbian - Bavarian Economic Committee, which was established as far back as the 1970s, but has been forgotten in the meantime. In March we are planning to make a presentation of the Serbian economy in Bavaria. Germany does not have enough information about us and we have to find a way of informing German businessmen about the possibilities of co-operation with our economy: through the media, economy delegations, branches, etc. There are some particular interests. "DaimlerChrylser" representatives come because they were interested in the slag from Kolubara for the production of copper. After the recent visit of the Serbian & Montenegrin state delegation to France, of which you were member, new French investments in SCG were announced. What are those projects? If the Germans were the number one Serbian trade partner, France is number six. French companies expressed their interest in infrastructural objects and in some green-field and brownfield operations, as well as in the production of car parts. They are also interested in agriculture. In total, their interest in investments in Serbia is not big and because of that we have to work on the affirmation of our economy in France. There is also the pos-
30
CorD | February 2005
The European Union is increasingly giving up the policy of subsidies, which SCG felt when Brussels set the quota of 150,000 tonnes for sugar exports to their market. How far did the negotiations with the EU go regarding the increase of that and the quota for textiles? Currently, we have the right to export 150,000 tonnes of sugar to the EU market. I spoke to the European Commission's Ambassador to Serbia & Montenegro, Josep Lloveras, and requested export limits of at least 220 - 250 thousand tonnes per year. Considering that our sugar refineries are mostly owned by companies from the EU, I expect that this quota will be increased to at least 250,000 tonnes. That will be decided in the first half of 2005. We are counting on the fact that the textile contract will be initialled by the New Year and signed by February or March at the latest.
Will that enable our textile companies to return to their previous positions? Yes, if they have the strength to be competitive with foreign companies. From 1st January the general liberalisation of the textile industry is starting and there is a great fear in the EU of the flood from the textile industries of Eastern and Central Asia. If our companies have the potential to export they will have the opportunity to do so. On the textile field we cannot fight against the Chinese. We should try with the provision of certain final products. We already have certain brands that have proved themselves: Legend, Jager, etc. Our designers do have taste and can compete. There we should use the possibilities of the Free Trade Zone of South-Eastern Europe.•
Interview
GLOBAL TRAGEDY In the early hours of 26th December 2004, the lives of millions of the people of the Indian Ocean basin were changed forever when an earthquake measuring a massive 9.0 on the Richter scale shook South-East Asia and sent a series of Tsunami tidal waves crashing into the coastlines of more than 12 countries. To date, more than 140,000 people have lost their lives and countless millions have found themselves homeless and fighting for their very survival. Of all the countries affected by the disaster, Indonesia was undoubtedly the hardest hit. Aceh province, on the western tip of the Indonesian island of Sumatra, was the closest inhabited area to the epicentre of the quake. The provincial capital of Banda Aceh was obliterated by the tidal waves that hit the island without warning and the current death toll of 104,000 is expected to rise. All infrastructure has been wiped out in the worst-affected areas, leaving survivors without water, food or shelter.
By Nina Nicovic, Photo Andy Dall
I
n order to offer our condolences and discuss the multitude of problems now facing the country, we spoke to H.E. Ladjuris, Ambassador of the Republic of Indonesia to the State Union.
How many countries are directly participating in the global humanitarian effort that has been launched following the disaster? More than 30 countries are involved. We had a donor conference in Jakarta and, as well as America, every major donor country that is a part of the UN participated in this conference.
Also, there are 14 International Organisations and NGOs that have pledged or initiated humanitarian assistance. According to media sources, the U.S. has provided significant help on the ground. Is that information correct? Yes. They sent marines and logistical support in terms of helicopters. Now we already have flight clearance for humanitarian aid that has been given to 197 flights from 27 countries. Countries like Australia, Malaysia, Japan, China, Singapore, Tunisia, New Zealand, the UK, Norway...and many others. There has been a lot of international assistance because something like this has never happened before.
H.E. Ladjuris, Ambassador of the Republic of Indonesia to SCG
Interview What things does your country need most in order to recover? We have identified three stages to solve the problems of the Tsunami. The first step is Emergency Measures that will last from December 2004 - December 2005. This will involve trying to help the survivors by providing them with food, sanitary equipment, generator sets, clean water, etc. We need to provide all of the public utilities to the people as these are the things that are most needed now. The second step is Rehabilitation Measures that will be implemented from February 2005-February 2006 and the last step, which will be the most important in the long term, is the Reconstruction Measures that will last from 2005-2009. During the one year emergency period the Government is to allocate Rp.900 billion for food, 50 billion for clothing, 150 billion for med-
Homeless people are now a very important issue and we have to find ways of taking care of them and relocating them to other areas. The only possibility for Indonesia to solve a situation of this magnitude is with international assistance. icine, 150 billion for temporary shelters and 100 billion for the provision of clean water and electricity. All of those steps are needed when you have a tragedy like this one, where around 94,000 people have died, more than 100,000 houses have been damaged or totally destroyed and almost 500,000 people have been left homeless. Homeless people are now a very important issue and we have to find ways of taking care of them and relocating them to other areas. The only possibility for Indonesia to solve a situation of this magnitude is with international assistance. Do you have enough manpower to cover the affected areas? Indonesia has 33 provinces and after the Banda Aceh province was directly hit by the Tsunami at least 100 volunteers came from neighbouring provinces to help. So the local community is active at this point, and will be even more active in the future. They are coming from all over Indonesia and are willing to help, providing the materials and manpower that are needed at the accident areas. And they are doing this without being paid. How are you transporting people from other parts of Indonesia that want to help? Help to the accident areas can only be given through aeroplanes or helicopters because the infrastructure has been destroyed in some places. In my opinion, it is not so difficult for people to help because the Tsunami hit the west coast of northern Sumatra at Banda Aceh, which is a very big province and a city of 4.5 million people. Help can also be brought through eastern parts of the province that were less affected by the Tsunami and where all of the survivors are placed right now. Before the Tsunami hit Banda Aceh the city was closed and not open to tourism. Not every foreigner could go to Banda Aceh because the situation there was quite difficult but now, after the disaster, we have made the process easier and shorter. All humanitarian volunteers and workers from abroad can obtain free one-month visas upon arrival.
HOW YOU CAN HELP
Please find herein the relevant contact and account details if you would like to help the people of Indonesia recover from this horrific disaster: • The National Coordinating Agency for National
Disaster and Refugee Relief - Badan Koordinasi Nasional Penanggulangan Bencana dan Penanganan Pengungsi (Bakorans PBP). Address: Jl. Ir. H. Juanda No. 36, Jakarta Pusat, 10110; Telephone: (62 - 21) 3458400; Fax: (62 - 21) 3505075 / 3458500. Contacts: Mr. Adik Bantarso (mobile: 62 - 816 1910619), Mr. Sugeng (mobile: 62 - 816 4850361). a/c: 070.003125566.001 Bantuan Kemanusiaan Bencana Aceh, Bakornas PBP. BNI 46, Harmoni Branch, Jakarta. Or Kantor Menko Kesra. a/c: 070.003112717.911 - I Nyoman Meweh. BNI 46, Harmoni Branch, Jakarta. • Indonesian Red Cross. a/c: 070.0002027089
Bank Mandiri, Wisma Baja Branch - Jakarta (US$) - Palang Merah Indonesia. For transfer: Chase Manhattan New York / Bank of New York. Swift code: BEIIIDJA. Further information pertaining to humanitarian aid can be obtained via Indonesia's special working group: Secretary of Special Working Group: Head of Legal Bureau, Department of Foreign Affairs, 7th Fl. Address: Jl. Taman Pejambon No.6, Jakarta Pusat, 10110. Telephone: (62 - 21) 384663; Fax: (62 - 21) 3858044.
How are people managing to find supplies of clean water? It isn't too difficult to supply water in Indonesia because our country has lots of water from wells and the country is naturally rich with water. At the beginning of the disaster the problem was how to purify it, but now we have a system to clean the water.
a lack of space became apparent at one point and so tents and portable hospitals were provided. Most of the paramedic help is coming from the Java Island, western and northern Sumatra and also from humanitarian aid of countries like India and other countries that will provide floating hospitals.
Do hospitals have enough room to accommodate all the victims? We have 1000 hospitals in Indonesia for tsunami relief and the injured people are taken care of at these facilities. Of course,
There are still a very large number of bodies still to be identified, but with the DNA system of matching the dead relatives it has been brought up to speed. Is help from forensic experts getting through in that area? CorD | February 2005
33
Interview Oh yes, of course. We have received a lot of help from forensic experts from Great Britain, Germany and neighbouring countries. In this sort of situation it is very important for people to stay connected via mobile phones or the Internet. How is your country coping in that sense; have connections been restored? Mobile phones are starting to function normally. Problems with the phone lines only occurred during the initial hit of the Tsunami and were fully restored afterwards by several Indonesian mobile providers.
or money. I noticed that the way to provide assistance was shown on TV channels RTS 1, RTS 2, BK, B92 and Pink. I think that's very nice. During the condolence day on 5th January, several high-ranking officials of Serbia & Montenegro, including the President of Serbia & Montenegro, the Serbian prime minister and the SCG minister of foreign affairs offered their condolences to the embassy. We discussed the idea of Serbia & Montenegro offering aid with the organisation CRFC for the provision of clothes and so on. We support that idea and it is up to them to decide how they are going to organise that. What was discussed and decided at the meeting in Jakarta and who participated? UN Secretary-General, Kofi Anan, donor countries from Europe, the U.S. and Asia participated in the summit. One of the reasons for holding the Special Asian Leaders Meeting on the Aftermath of the Earthquake and Tsunami on 6th January was to enhance regional disaster preparedness through consolidated information sharing and the establishing of an early warning system. Around 26 countries and international organisations came to this one-day summit, which was proposed by Singapore's Prime Minister Lee Hsien Loong. Summit attendees also discussed the best way to speed aid to victims, as nearly $4billion (around â‚Ź3billion) has been pledged worldwide.
Are you providing psychological support to survivors of the disaster? Of course. We have comprehensive action for that. We are not only moving people to other areas, but are also giving psychological assistance to people that went through the trauma. We are also providing special attention for the children. Do you have enough psychologists on the ground to help the victims? In my thinking, there are enough psychologists in my country for the amount of people and children affected by trauma, but help is also coming from neighbouring countries through humanitarian aid organisations, like the Red Cross, and from the international community. You have to remember that this is not only a problem for Indonesia, but also for all other countries hit by the Tsunami. That's why we are cooperating and giving assistance to each other so much. This is a world scale disaster.
The last tragedy that hit Indonesia was in 1883, when 20,000 people died following the eruption of a volcano on the island of Java. But a disaster like this is unprecedented.
Do you think this tragedy is going to affect tourism in your country? The area most affected by the Tsunami is Banda Aceh, where foreigners seldom visit. It is not a very tourist place. Bali, Jakarta and Jogjakarta are the most popular tourist resorts in Indonesia and they were not affected by the disaster at all. It is enough when I say that it is a three-hour flight from Bali to Aceh. We also have a well developed domestic flight schedule and 13 international airports in my country, so I think this will also help tourism to continue as normal. We had 5-6 million tourists last year and we are planning to develop more tourist resorts on Bali, Jakarta, Jogjakarta and in other areas. How can citizens, or anybody else in SCG, apply to help your country? I received several letters from Serbian and Montenegrin government officials and have already given them the necessary address and account number if they want give assistance
34
CorD | February 2005
How is the emergency meeting of world leaders in Paris going to help your country? There are several points. First is to establish for the future what we call the early warning system, and second is emergency financing of â‚Ź1billion that the donor countries, along with the UN SecretaryGeneral, are going to raise to help Tsunami-hit countries. Besides that meeting in Paris, there is to be a meeting in Tokyo that will be significant for further assistance.
How are people getting by every day; are they trying to get back on their feet as much as possible? Yes. Some shops have already reopened and everything is going step by step. People are moving from the west coast to the eastern part of Sumatra. Electricity is just starting to get restored. It isn't fully operational yet, but we are getting there. The airport is working and this is very important. It is getting better day-byday, but it takes time for that and the government is doing what it can to improve the situation. The government declared mourning days from 27th to 29th December. On those days the flags of our countries will fly at half-mast around the world. Something like this has never happened to us before. The last tragedy that hit Indonesia was in 1883, when 20,000 people died following the eruption of a volcano on the island of Java. But a disaster like this is unprecedented.•
Interview
A full four years has not yet passed since Raiffeisenbank a.d. Beograd was established as the first bank with a 100% foreign capital in Serbia. However, since its formation in March 2001, Raiffeisenbank has, according to most parameters, become the biggest bank in the SCG State Union.
Budimir Kostic, By Milan Culibrk, Photo Stanislav Milojkovic
President of Raiffeisenbank a.d. Belgrade
I
n 2004, with experienced banker Budimir Kostic at the head of the bank, Raiffeisen generated profits of €15.2million, of which €11.2million was net profit. Moreover, the bank's balance assets increased by 89% - from €462.3million to €873.6million. Speaking exclusively to CorD Magazine this month, Kostic insisted that, contrary to the general notion that Raiffeisenbank's success on the Serbian market was due to its linkage to the sister chain of Austria's Raiffeisen Group and subsequent access to considerable financial support, the successful growth of the bank was the result of numerous other factors, the most important of which, he stressed, was people power. "To my positive surprise, we were capable of offering jobs in Serbia and acquiring staff that approached their jobs with enthusiasm. More importantly, these were young people who knew their jobs and needed only a bit of extra training. That is the power we all should pay more attention to, because those young people, if offered the chance, are willing and able to work. The second reason was, of course, that we could rely on a big system for money experience, knowledge and procedures." Honestly, did you expect that your bank would become the biggest in Serbia in such a short time? Naturally, I always expect to be better and, if possible, the best, but it was really not to be expected that, as a bank that received the licence from the former NBJ (Yugoslav National Bank) in March
The majority of foreign banks have contributed to the revival of the financial market in Serbia and significantly increased credits offered to the economy and the citizens. 2001, and only started operating in July 2001, we would finish the last year, according to all figures, as the biggest bank in Serbia. Of course, success is pleasing because when we were established we set ourselves the aim of being among the top three banks in this time. One of the reasons is that our bank always had sufficient financial means at its disposal, therefore we could extend our activities and, in 2004, Raiffeisenbank approved the most credits: €373million to the economy, €116million to citizens, and €49million
36
CorD | February 2005
Interview to small companies and enterprisers. We could do that because we had long term financial resources, while banks with domestic capital do not have those resources. If we had to work only with deposits collected within the country we could not have achieved such results. However, we took advantage of such a chance and, with support from the bank headquarters in Vienna, we managed to get long-term funds that we could invest in Serbia. That is contrary to the cliché that banks with foreign capital come to Serbia to collect deposits and then place that money abroad? That is a great injustice done to banks with foreign capital because, firstly, our deposits are too expensive for the world. Together with that we placed over €500million in Serbia in 2004 and collected €286million in deposits from citizens, of which one half is isolated in the NBS (Serbian National Bank) because we must keep 47% of foreign currency deposits in the NBS and we cannot use them. Therefore, we approved many more credits than we collected deposits from citizens. Of course, we do have deposits from the economy, but they are being changed on a daily basis. Besides, foreign investments often come through our bank too and we have mediated in many pay outs in the sales of companies in the process of privatisation. Can you say, on the basis of previous experience, how big the significance of banks with foreign capital is in the attraction of new foreign strategic partners? Banks are a very important factor for the attraction of foreign investments. Every investor who comes to the country initially looks for a bank through which they will organise their finances. From the first day we insisted on being the conduit for the arrival of foreign investments in Serbia and that is one of our most important characteristics. Every foreign investor worries a great deal about where his money is going to be kept. In the end, the fact that more than half of foreign companies operating in Serbia work through us is the best proof that they have chosen the best bank. Apart from foreign investors, you have also won the trust of local citizens, whose savings in Raiffeisenbank have reached €286million. What was the decisive factor there? The safety of deposits. We do not hide that we do not offer the highest interest rates. There are banks offering their clients higher interest rates, but we are among the safest banks. Moreover, we offer our clients a wide range of products, including retail credit, mortgages and bank and credit cards, and clients also appreciate the relationship towards them, because if there are any problems I do not hesitate to call them and apologise if it was our mistake. You admitted that you do not pay the highest interest rates on deposits. What are your conditions for approving credits? Those credits are the most favourable on the market and, as such, we have approved the most because citizens and companies go where conditions are the best. I do know that there is a tendency to attack banks: they have been accused that their services are overpriced, but prices, from the point of the estimation of risk, are justifiable. Interest rates and other compensations, which banks pay, cannot be determined administratively, but are led by the market and we always intend to be the most favourable on the market. Do you have any problems with the payment of credits? No. We are still not worrying about the repayments of any credits. At the beginning of our work in Serbia we had problems getting people to accept the fact that before the approval of interest rates we have to observe the previous three year's balances; that we want to get to know the company management and to see the production or stock in the shops. Now our clients have got used to that and their balances are more and more realistic. In 2001 and 2002 we were looking at balances from 1999 and 2000 and they were completely unrealistic, but that was some sort of indicator too. There were some cases where the real financial situation and the state and balance sheets in some companies differed so much that I had the
Budimir Kostic impression that I had visited the wrong company. How much does political risk in Serbia influence the banks operating and their interest rates? That risk is one of the important factors of the credit rate. When we debit abroad we are first charged compensation for the political risk and, after that, for the commercial risk. Our bank receives credits with very small commercial risk, but the fact that we operate in Serbia has an influence whereby we have to pay significant margins for the political risk. The International Financial Cooperation (IFC), which is our founder, still thinks that we have to pay a margin of 3 - 3.5% and because of that we do not take credits from them, expecting that they will change their estimation of political risk.
The purchasing of a bank is a process that takes a very long time and I do not expect that privatisation in 2005 will crucially change the conditions on the banking market. Conditions for the lowering of that risk are slowly being gained because Serbia has received the credit rating and the market will slowly start to accept us. Could the decision of the U.S. administration to revoke financial support of 10 million dollars to the Serbian Government have a negative influence on such a development and what could be the economic effects of such a measure? That is certainly a negative signal to everybody, not only for American investors. However, I do not think they will withdraw from Serbia merely because of those measures. But it is very important that we do not reach the situation where those measures get sharper and they should be accepted as a warning. I believe that Serbian politicians will behave in accordance with the mood of the majority of the population, who think that international community obligations have to be fulfilled regardless of how difficult they are. For politicians, co-operation with The Hague Tribunal is a sensitive issue, but I think the mood among the majority of the population, who understand that this has to be done, will create the possibility for politicians to make this final difficult move. CorD | February 2005
37
Interview To what extent has Raiffeisenbank, with its credit expansion in 2004, contributed to the NBS's measures for sharpening conditions for consumer credits? Even though they say in the NBS that this measure was co-ordinated with that of the IMF, I think that it is very contradictory. For 12 years people in Serbia have not been in a position to buy household appliances. However, the market has opened and foreign producers have started to offer those goods and banks have begun to offer credits. I do not say that this has not influenced the growth of the foreign trade deficit, but it has not crucially jeopardised it. Thus, I think, this measure was too sharp because they should have left one valve for the increase in the standard of living. The problem of the large foreign trade deficit cannot be cured with devaluation, but with an increase in exports and competition. Foreign direct investments can play the most positive role there, and the example for that is U.S. Steel, which transformed the Smederevo Forge from the biggest unprofitable company into the country's biggest exporter.
domestic banks? I do not think so. That was realistic for us in 2001 when we were ready to commence negotiations with the Serbian Government regarding direct agreements on some banks, but the Government chose the tenders sale and meanwhile we significantly grew and I do not see that we would gain a significant part of the market by purchasing some of the domestic banks. Because of that our orientation is growth. This year we will open at least 12 - 15 new branches and cover another six or seven towns. Which bank were you interested in? In 2001 we negotiated with one big private bank, but did not find a common language because the other side was seeking too high a price. We also offered to negotiate with the state regarding the purchases of Jubanka and Vojvodjanska Banka, but the Government was not ready for that at that time.
Are you also planning expansion to Montenegro? After receiving a licence in March 2001, when the Yugoslav National Bank was still in operation, we I believe that Serbian politithought that that licence was related to the market of Montenegro too and that cians will behave in accorWill the position of Raiffeisewe had the right to open one big dance with the mood of the nbank be aggravated by the NBS's regional branch in Podgorica and sevmajority of the population, who eral smaller branches in other decision whereby you will also have to earmark obligatory reseMontenegrin towns. Therefore, we think that international rves on resources received from to operate in Montenegro, but community obligations have to want the central Bank in Vienna from 1st there is the belief there that their be fulfilled regardless of how January. banking system is completely separate That will jeopardise our profand, according to that, we have to difficult they are. itability because of every ₏100 we open the bank as a separate legal entiborrow from abroad, 21 euros will go ty. Our estimation is that this is too to the obligatory NBS reserves. As such, we will not be able to use expensive and we do not have an economic interest in that. If the them and we will receive only 20% of the referent interest rates on position of the Montenegrin Central Bank does not change; if they do that from the European Central Bank (ECB), and those funds cost not allow banks from Serbia to operate there we will not open a bank us 2- 2.1% above the ECB's referent interest rates. In spite of that, there in the foreseeable future. On several occasions we have pointwe will try to accept that move on our own and not increase intered out to the CBCG (Central Bank of Montenegro) and the est rates on the credits we approve in Serbia. Montenegrin Ministry of Finance that we would fully respect all their regulations and that we would be subject to control of CBCG in every How will privatisation of the Serbian banks with major state respect. We pointed out that we would certainly be in a position to capital influence the position of your bank? provide significant resources to Montenegrin companies and citiI will not say that among everything else we like to see compezens. They did express an interest in that, but I think that regulations tition, but we welcome its arrival through the privatisation of local are preventing them from allowing us to do so. banks, because that will also contribute to the creation of better conditions for our financial market. The purchasing of a bank is a What is your comment on NBS Governor Radovan Jelasic's process that takes a very long time and I do not expect that privatiestimation that banks with foreign capital, instead of having an sation in 2005 will crucially change the conditions on the banking influence on domestic ones to introduce European rules, have market. I expect that some banks from Italy will appear on this mar"Balkanised" themselves very quickly? ket, since they have been very active in Eastern Europe with large The majority of foreign banks have contributed to the revival of resources of late. In this year, another four-five banks from the EU the financial market in Serbia and significantly increased credits will appear in Serbia. I would not be surprised if Erste from Austria offered to the economy and the citizens. It seems to me that expecand KBC from Belgium appear because, together with the privatisatations were bigger than was realistic in some cases. We must start tion of state-owned banks, some domestic private banks are lookfrom the fact that everybody on the market tries to secure the most ing for strategic partners. I am convinced that the merging of banks favourable conditions for themselves and that banks, for instance, will take place because some of them will have to integrate and it is will not lower interest rates because of demands made by any instirealistic to expect that in a few years the number of banks in Serbia tution or person, but only when the market imposes such a thing. will decease from the current figure of 43 to just above 20. The arrival of foreign banks has increased competition and, because of that, claims about "Balkanisation" are a bit immoderate.• Will Raiffeisenbank participate in the purchasing of some
38
CorD | February 2005
Interview Keith E. Simmons, Director of USAID Mission to SCG
The U.S. Agency for International Development (USAID) is an independent agency of the American federal government that was established to help transitional countries tackle the main tasks required to spur on and consolidate economic growth, democracy and governance. To date, USAID has invested more than $600million in Serbia & Montenegro to support and assist the governments, private enterprise, the media and the NGO sector, in their continuing efforts to strengthen capacities and overcome the obstacles confronting the fledgling market and the State Union's transitional society.
By Nina Nicovic, Photo Andy Dall
US AIDS TRANSITION I
In an effort to gauge USAID's successes and shortcomings, and to get the inside story on what has yet to be done in SCG, we spoke exclusively to Keith E. Simmons, Director of the USAID Mission to SCG.
What projects and development programmes is USAID currently focusing on in Serbia & Montenegro? Back in 2001, when we reopened our office here, USAID developed strategic activities in SCG in consultation with the government, other donors and civil society. Those activities were designed to focus on helping the government carryout reforms, transition to a free market economy, and develop multiparty democracy. Our programmes work in the area of macroeconomic reform at a governmental level, in such matters as changes in the legal and regulatory framework and the drafting of laws. We also have programmes in the economic sphere at a local level, where we work directly with companies.
40
CorD | February 2005
In the area of democracy and governance, USAID works with institutions in the government's executive, judiciary and parliamentary branches. Simultaneously, we have programmes in municipalities throughout Serbia, as well as a parallel project in Montenegro on the municipal level. USAID's community development projects involve citizens in local decision-making and prioritizing and allow them to contribute directly to improving their own lives. Which developing sectors do you consider the most encouraging to potential U.S. investors in SCG? USAID has identified several areas where we feel the economy has the potential to gain a competitive advantage. For example, in the area of fruit production, we feel there is real potential for export growth and value-added products, such as jams or juices, as well as meeting the domestic demand. Wood processing and furniture manufacturing is another area of potential
Interview growth, as well as the IT sector, where we feel there is potential to develop niche markets, tourism, and perhaps pharmaceuticals. Serbia & Montenegro has a strong, well trained human resource base. We want to minimize the brain drain and keep those smart people here.
10' route to identify "ten perfect places" for travellers to stop on their way through. We gave ten $10,000 awards to ten proposals across the country, from Lake Palic in the north, to a wireless Internet cafĂŠ in Vranje. These places were spaced out so they could cover the entire length of the highway, and were seen as one effort to improve local economies. The initiative was a small example of the range of possibilities. In Montenegro, where USAID also supports community projects, one of the big constraints is the infrastructure for water and
What is USAID doing to promote competitiveness in SCG? We are identifying companies that work within the areas I have mentioned. For example, the Fresh & Co company in Subotica has developed a juice product called NEXT, which recently received an internation- Corruption is something that every society needs to al award as the world's best new juice and a address. We still need to address it back home in the domestic award for the best export product. This success was partly achieved through U.S. So we have to make sure we provide built-in syssome of our joint efforts with them. USAID is tems that safeguard against these sorts of pitfalls; and working with such companies to help them ensure that people are publicly punished if caught. shift focus from supply to demand: to concentrate on what is offered on the market place, how to adapt their wastewater. We have a major project right now, worth over products and satisfy the certification requirements necessary for $12million, that's designed to double the amount of water availmeeting international standards. able at the height of the tourist season in places like Budva, for example, which has a real problem. No tourist wants to have Considering that USAID has always given help to private water only 4 hours a day; and only in the middle of the night. initiatives of small enterprises in transitional countries, how USAID thus has a project designed to repair all the leaks along are you going to help the development of firms in Serbia & the system, from the source of the water in Cetinje to Budva, Montenegro that produce furniture or deal with fruits (canwhich will actually double the amount of water available. There ning of fruits, production of juices, etc.)? is also a problem with wastewater outflow, which USAID is also Once the areas are identified, we look for ways to help these addressing through the repair of broken pipes and pumps, so enterprises determine what their market is, learn what the marthat pumps can function even when there is no electricity, so that ket requirements are, and prepare their products for world marwastewater does backwash to the Kotor Bay. We are working kets. Then we focus on helping them look at how they can with communities and municipalities all along the coast, doing improve their production, whether an assembly-line process or small activities that generate interest in tourism there. packaging, as well as help with design and identifying suppliers. With our contacts in the financial sector, we also provide assistance in developing business plans and taking other strategic steps so they can receive the required finances to purchase equipment for their businesses. Do you think the modernisation of tourist resorts in Serbia & Montenegro can be achieved in a relatively short period of time and, if so, how? There are a number of issues related to tourism development. Some of the problems for any potential investor here include making sure that the legal and regulatory framework is in place, that taxation, customs and judicial systems are going to be fair and impartial, and that the capacity exists to implement them. Once you've attracted the investors the focus has to be shifted to basic items, such as providing signs in English and placing public toilets throughout Serbia & Montenegro. People want to know that such services are available because they want to bring their families here. The government has to be open to foreign ownership, so the bidding process to privatise properties along the coastline has to be fair and open to competition, as opposed to selling to friends and relatives or through other special arrangements. The government has to show that it is open to foreign investments if it wants to attract the kind of capital that can make these places sufficiently comfortable to appeal to your average tourist. Otherwise you are only going to get the adventure travellers: backpackers, or single individuals, or consultants that come on short-term projects and then visit the seaside only for the weekend. You want to attract a much broader audience than that. In a similar vein, I would like to give an example of something from Serbia. Before the Olympics we knew that people would be driving down through Serbia on their way to Greece. So USAID sponsored a competition along the so-called 'Corridor
Keith E. Simmons CorD | February 2005
41
Interview How can we make local government more efficient and accountable? USAID government projects both in Serbia and in Montenegro are linked with our community development projects. At first, the municipalities were not very receptive to working with the community action groups that USAID helped establish. However, after three years and 3,500 activities in over 500 communities in Serbia and over 800 activities in over 100 communities in Montenegro, the mayors are working very closely with the citizens' groups and now appreciate the value of citizen involvement. Many municipal officials now conduct open budget hearings, where citizens are able to voice their own priorities in the process. That is beneficial to mayors who are directly elected, for whom it is very important to be more responsive to citizens. I think mayors, local assemblies and citizens have gone through an evolution over the last few years and moved towards a much more open, transparent and responsive system of local government. In one sign of such results, our community development projects - which initially required a 25% matching contribution - now receive contributions of 47%, on average. The municipalities, the citizens, local businesses and even the federal government are investing in these projects. Because they themselves have defined these projects as their own priorities, they have a much greater sense of ownership.
judges can get a sense of how these courts function and how they address similar challenges. Is corruption one of the major issues that scares off foreign investors who would otherwise consider investing here? Corruption is always present, especially in transitional economies. Opportunities arise and people simply take advantage of them. And, yes, investors are concerned about that. They are concerned that a judge can be bought to rule against the interests of their investments. USAID's work with ministries and with the courts includes, for example, efforts to clean up case management by installing computer software that randomly assigns cases to judges and cannot be manipulated. We help design systems that reduce opportunities for corruption. Corruption is something that every society needs to address. We still need to address it back home in the U.S. So we have to make sure we provide built-in systems that safeguard against these sorts of pitfalls; and ensure that people are publicly punished if caught. How did USAID help the SCG Government focus on establishing the Financial Intelligence Unit that can help uncover money-laundering networks in SCG? In the past we focused on the Financial Intelligence Unit (FIU). Treasury advisors provided direct technical assistance and training. Through one of our contractors, we provided all of the FIU's computer hardware and software systems, helped establish the whole network and linkage, which enables the tracking of financial transactions and systems between the banks. With USAID assistance and that of the U.S. treasury department, the FIU has joined what is called the Egmont group, an international group of anti-money laundering agencies, whose standards are now being met here. From our perspective, we feel that we have done our job and that people in place here are competent. Thus we are prepared to declare success and move on.
How would you rate the situation in the area of commercial laws and their implementation by the domestic courts? First of all, the overall legal framework that's required for transition to a free market economy is not yet in place. There are ‌there are 16 commerstill a number of laws that need to be adopted. Simple things like arbitration and cial courts in Serbia. mediation, as opposed to having to go to The judges aren't familcourts to resolve certain issues. Security laws for capital market development also iar with all of the laws need amending and updating. and don't fully underThe other part of the problem is the stand their intent. Most courts. For example, there are 16 commercial courts in Serbia. The judges aren't How would you rate the potential for of them were brought familiar with all of the laws and don't fully Serbia & Montenegro to achieve consisup under a system of tent political stability? understand their intent. Most of them were brought up under a system of socialism, so Transitional countries have a lot of issues socialism, so they don't they don't fully appreciate what the laws to deal with, from the past to the present to fully appreciate what the future. 2004 began with parliamentary really mean from the perspective of a capithe laws really mean elections, the formation of a new coalition talist society. Remedying that is going to take some time. Last year we adopted a from the perspective of government, and the related set of issues. $13million commercial court strengthenSerbia finally had a successful presidential a capitalist society. ing project, where we are working directly election and then the direct election of maywith judges to provide training on the laws, ors. This year there is not only the potential as well as helping them with issues of case management. There for another parliamentary election in Serbia, but also the State is such a tremendous backlog, due to the fact that they don't Union parliamentary election and constitutional referendum are have the necessary administrative support. In October the US coming up as well. I don't consider that instability, but rather government signed an agreement with the Ministry of Justice part of the democratic process, which has its ups and downs. regarding this project, which is now underway. The biggest problem, from our perspective, was the backlog resulting from inaction and the stalled passage of laws that we How are judges to be trained in the future? worked with the government to draft. That slows down the reform There will be training on the laws themselves: how to better process. However, I have to give the government credit because, understand and better apply them. USAID will also support over the last three to six months, they have moved ahead and study tours to other commercial courts throughout the world caught up with a number of these laws. We hope that we can connot only in the US, but also in other transition countries - so tinue on the path of reform despite these political hiccups.•
42
CorD | February 2005
Economics
2005 POLICY MOST DIFFICULT PHASE AHEAD The first phase of Serbia's transition process has almost been completed, while the second phase, which is to last several years, has just begun. As such, structural reforms and the privatisation process should be sped up. By Milan Culibrk
S
peaking at the recent conference 'Economic Policy for 2005', deputy Serbian PM Miroljub Labus and Serbian Finance Minister Mladjan Dinkic said that amendments to privatisation legislation, the Equity Fund and the Privatisation Agency would contribute to the speeding up of the transition process and, thus, enable large debt-laden companies to discard their deadwood and become attractive to strategic partners. During previous talks with enterprisers, Labus emphasised that the target of Serbia's economic policy for 2005 was to achieve maintainable development marked by a four-five per cent increase in GDP and the dropping of inflation rates to 9.1%.
Miroljub Labus 44
CorD | February 2005
According to the G17 Plus leader, all envisaged measures are "tuned" to the realising of these objectives. Estimating that per capita GDP has grown to some $2,900, Dinkic insisted that 2004 had been "the first year of transition in which positive effects were seen because production was increased in privatised and restructured companies". The finance minister and G17 Plus vice-president also noted that 2004's GDP growth of eight per cent was the highest growth in the last 25 years and was of extreme importance because it had not merely come as a consequence of pumping uncovered
The deputy PM remarked that the introduction of VAT is the right moment to draw the line and legalise the grey economy. He said that VAT will contribute to an increase in public revenue, "but the Government will not go for the creation of a surplus in the Budget‌ resources into the economy. Dinkic promised businessmen that macroeconomic stability would be maintained and the Government would prioritise the task of speeding up structural changes. This, he explained, would be aided by the achieving of a significantly lower budget deficit than previously envisaged: in 2004 the deficit halted at 22.3 billion dinars, while the initially planned 45 billion was rebalanced and decreased to 32.7 billion under pressure from the IMF. According to Dinkic, of even greater importance is the fact that eight billion dinars of budget reserves has been transferred to the 2005 budget, which can be used to cover 40% of this year's planned state treasury deficit of 20.5 billion dinars. Moreover, these reserves will provide a "safety valve" for maintaining budget solvency, considering that the first significant income from newly introduced VAT will not reach the state treasury until 10th February. In addition to the aforementioned reserves, minister Dinkic is also relying on income to be yielded from the sale of the state's package of shares in mineral water company Knjaz Milos, as well as the privatisations of Yubanka and Subotica-based firm Sever. "The implementation of the 2004 budget exceeded even the most optimistic estimations because, through saving measures, the deficit was brought down to 1.7% of GDP and will be decreased to 1.3% this year. In contrast, it was 3.9% of GDP in 2003," said Dinkic. "The budget deficit is certainly no longer a reason for the instability of prices and I am convinced that, with a strong budget, a restrictive monetary policy and the policy of wage control in the public sector, this year's inflation will not go above the planned 9.2%. This is because we pumped out all sources of potential price growth this year in the second part of 2004. Together with this, we enter 2005 with two reductions in the cost of petrol, despite the fact that hikes in the price of crude oil and ferrous metals on the world market were the main reason that inflation reached 13.7% in 2004. Without those external factors, prices would not have increased more than the planned 8.5 - 9%." In contrast to state officials, the opinions of economists are divided. Miroslav Prokopijevic, director of the Centre for Free
Economics Market, claims that inflation in 2005 will be between 13 and 21 per cent and this is dependent on the value of the dinar not significantly dropping, which cannot be ruled out because of the large foreign trade deficit. Prokopijevic predicts that one euro will be worth between 93 and 105 dinars by the end of 2005. "Without more serious reforms, which have not even started, the dinar cannot have realistic coverage and the state cannot achieve a positive current account and trade balance, higher employment figures or faster growth," insisted Prokopijevic. He continued: "On a scale of 0 to 100, the assessment of reforms between 2000 and 2003 is between 7 and 10, and the current Government even manages to decrease such a bad mark, mainly due to the privatisation slowdown and its increased involvement in the economy. The announced restructuring of public companies is a very positive sign, but I am sceptical as to whether this will be carried out successfully because it is necessary to preliminary create a positive atmosphere for attracting foreign investments that will engage a number of unemployed people." According to Labus, the Government is paying particular attention to EPS (the Serbian Electricity Industry), NIS (the Serbian Petrol Industry), ZTP (the Railway), JAT (Yugoslav Airlines), PTT (Post and Telecommunications), Telecom, Belgrade Airport and Srbijasume (Serbian Forestry commission), because those five public companies employ a total of 130,000 workers. That part of the market will be gradually liberalised, in parallel with privatisation, since public companies have to be seriously restructured before anything. Labus explained: "That means a break of main activities from secondary activities, but also financial consolidation: i.e. the writing off and reprogramming of debts. Furthermore, those companies will have to increase their productivity, which is considerably lower than in similar companies in the region". The deputy PM added that the rationalisation of costs and employment, followed by bolstering of the social programme, were also key to the restructuring process. "The rapid trend of industrial production from 2004 cannot be stopped. But, so far, this growth was mainly based on domestic demands, which created a high balance of payment's deficit that is not maintainable in the long term. As such, in the forthcoming period the growth of prices will have to be based on bigger domestic saving and investment, to which the measures implemented by the Serbian National Bank will contribute.� Prokopijevic, however, thinks that it is distasteful to talk about how much GDP really increased in 2004 because that is partly only a statistical growth, as one part of the grey economy was returned to legal flows. He thinks that the current Government is not meritorious even for the achieved growth. One part of the growth is a consequence of world market conditions and the effects of privatisations from the previous period, which contributed to the recuperation of production in the privatised companies. According to Prokopijevic, Serbia cannot expect a higher GDP growth than 3% this year if the current climate is maintained. He accuses the Government of unproductively wasting the inherited privatisation income and thus creating increased demands and enabling specific, non-maintainable growth of economic activity. Economist Petar Djukic noted that wages grew faster than production in 2004, partly as a result of the decision to postpone structural reforms in favour of high growth rates. This, he claimed, was probably due to the political desire to gain electoral support. Assessing that "nothing spectacular" happened last year, Djukic said that life had, nevertheless, been better than expected. Of positive macroeconomic trends, Djukic noted the higher than expected growth of industrial production, significant increases in domestic production, a 10% real-term increase in wages and an "officially insignificant" fall in unemployment. Of the negative trends in this domain, he noted inflation, grow-
ing trade deficits, expensive state costs, enormous losses in the non-restructured public sector and problematic state sector, as well as the privatisation slowdown. "The political crisis, and uncertainty with which the implementation of the economic policy in 2004 began, conditioned certain hesitations in the implementation of certain measures, especially in the configuration of the Budget, plans for public expenditure, investments, privatisation and macroeconomic stability", said Djukic.
Mladjan Dinkic He continued: "The official rationale that the exception from the planned aims for 2004 happened because of external shocks are not very convincing and the economic policy in 2005 will have to be more co-ordinated with the reform demands and structural changes because now is the critical period to ensure lasting growth and prosperity. The key challenges on that path
The finance minister noted that 2004's GDP growth of eight per cent was the highest growth in the last 25 years and was of extreme importance because it had not merely come as a consequence of pumping uncovered resources into the economy are the strengthening of the private sector, faster privatisation, reform of the state management, a curbing of corruption, higher financial discipline and the restructuring of the public sector and the privatisation of state owned banks." It is crucially important that the Government is determined to speed up privatisation because, as Labus said, the government has learned its lessons from the Jugoremedija, Knjaz Milos and C Market cases. In future, state shares will be voting shares and, in addition to the stock market, the Share Fund will also be able to sell its shares on tender, which will enable the state to sell them only to strategic partners from the same field, according to previously set criteria. Company managements will be obliged to sign the plan for trading on the stock market within a certain period and, if not, CorD | February 2005
45
Economics the Shares Fund or minor stock holders who possess 10% of stocks will be able to request so. "In order to become attractive to potential purchasers, companies that are being restructured will have their debts to the state temporarily written off and those debts will be additionally compensated to the creditors from the privatisation income", explained Labus, adding that accumulated taxation and ameni-
importance of stability only when they start losing it. Madzar is, therefore, convinced that the re-establishing of stability requires the sacrificing of something else. Labus insisted that inflation had not been too bad in 2004, considering all external shocks and the subsequent increases in prices of many goods on the domestic market. "Everybody expected that inflation would explode, but the Government reacted and if it had not taken all the measures at "In order to become attractive to potential pur- its disposal inflation would certainly be over 20 said Labus. chasers, companies that are being restructured will per cent," Dinkic emphasised that the biggest problem have their debts to the state temporarily written off for Serbia was not inflation, but rather the foreign and those debts will be additionally compensated trade deficit, which stood at around seven billion dollars in 2004. Dinkic believes that the main reato the creditors from the privatisation income" son for this is that a large part of the economy has not yet been restructured and privatised, thus the ties debts, as well as the paying of credits to banks, ensure that domestic offer cannot cover the demands and this problem can those companies have a negative capital and, therefore, could be solved only by combining measures to limit demands and not be privatised. stimulate exports, i.e. increasing the competitiveness of the Slobodan Milosavljevic, president of the Serbian Chamber of Serbian economy. Commerce, concluded that 2004 had been successful and busi"Part of the goods deficit of five billion dollars will be covered nessmen were hoping such a trend can be maintained in 2005. by remittances from abroad and foreign currencies, which export According to Milosavljevic, it is necessary to maintain stability companies do not bring into the country but use for paying and security on the road to EU accession. imports, while the rest of the 1.5 billion dollars will be new debProfessor Ljubomir Madzar, of Belgrade's Economics iting, not only state ones but those of companies and banks too", Faculty, thinks that the economic situation has been contradicsaid Dinkic. The problem, however, is that long term maintaintory for the last four years. According to him, the acceleration of able economic growth cannot be based on the increase of debitinflation occurred in 2004 and some people understand the ing. Because of that, the only remedy is in accelerated restructur-
A BROKEN
PROMISES By Milan Culibrk
Minority shareholders of Paracin-based Buducnost DMP recently accused the consortium that has bought the firm of creating a critical situation in which company employees have paid the highest price. According to a press release issued by the shareholder collective, the new owners had taken a company with a solid business reputation and dragged it to the brink of bankruptcy. The new owners were also accused of dodging obligatory investment commitments outlined in the purchasing contract, and of inconsistent bookkeeping: the example given was that they had allocated some â‚Ź250,000 for gardening expenses. This is just the latest of more than a hundred privatisation contracts that have been publicly queried over the past 18 months. 46
CorD | February 2005
ccording to Snezana Dabovic, Head of the Serbian Privatisation Agency's Support Centre, cases of buyers ruining well-standing companies were a rare occurrence that, nevertheless, happened from time to time. However, the Agency claimed that in this case the buyers of Buducnost DMP have honoured their commitment to invest. Auditors determined that the new owners invested in construction works and interior refurbishment, as well as providing equipment for the company cafeteria through a contract with Velika Plana's Udarnik Komerc. RESCINDING CONTRACTS: A LAST RESORT Privatisation Agency auditors have made more than 1,200 visits to companies sold through government tender or at auction. Monitoring is carried out in two ways: new company owners are requested by the Agency to send documentation for inspection, or Agency auditors visit company headquarters to carry out onthe-spot checks. Since January 2003, 82 privatisation contracts have been rescinded because buyers failed to honour commitments detailed in sales contracts. A lack of sufficient investment was the most common reason for cancelling contracts, followed by a lack of production, overdue instalments and neglecting the safety net programme. Dabovic noted that there has been a lot of press coverage of the complaints of employees working in newly privatised companies. According to the Support Centre chief, around 90% of these complaints pertain to overdue salary payments and unpaid bonuses, which actually come under the jurisdiction of taxation authorities. She also explained that complaints regarding violations of employment regulations had been received by the Agency, instead of the appropriate Labour Inspectorate. Dabovic said the Agency was putting maximum effort into avoiding rescinding contracts of sale by extending deadlines for buyers to meet their commitments and by mediating negotiations between new owners and employees.
Economics ing and privatisation, for which the political will already exists, not only in the Serbian Government but also in some opposition political parties. Businessmen and economists are waiting impatiently to see whether state officials will announce that this year may see a repeated cut in taxes. With a further cut in public consumption and the budget deficit, the conditions for tax cuts lie in the achievement of Dinkic's estimation of 25 billion dinars income from privatisation. In that case, the Government will decide what to do with those resources by mid-2005: either to increase state expenditure; pay off some debts or lower some taxes and, thus, make Serbia more attractive for private investment. Dinkic considers that the Government is likely to combine all three measures, as does Labus. The deputy PM remarked that the introduction of VAT is the right moment to draw the line and legalise the grey economy. He said that VAT will contribute to an increase in public revenue, "but the Government will not go for the creation of a surplus in the Budget, thus already half way through 2005 we will be able to consider the lowering of some taxes". Regardless, some economists think that 2005 will be more difficult than 2004.•
STRIKE THREATS Employees of privatised firms often accuse the Agency of siding with the buyers, while Agency officials insist that their main concern is to ensure that the companies continue to work effectively. "Both the Agency and investors suffer most from strikes by disgruntled employees whose expectations have not been satisfied by the new owners. They are unhappy with their salaries and they want the contract with the investor rescinded because of overdue salary payments and bonuses; although in many cases they were long overdue before the company was sold," explained Dabovic. "They cannot come to terms with the rule that salaries are set in accordance with the efficiency of the company. Investors most often complain about incorrect data regarding the balance of the company, most of all debts. This is because legal procedures are launched against such companies soon after they are privatised. The investors also have to face other difficulties, such as a reduced market for their products. Fortunately, we are criticised by employees and buyers alike, which means we are doing a good job." When the Privatisation Agency decides to break a contract with the buyer of a company it files a law suit with the Commercial Court and the investor remains the legal owner of the company until a legally-binding verdict is made by the court. However, the company usually suspends activities during this time, since the buyer has no interest in running the company until the outcome of the trial has been ascertained. After the court's ruling is put into effect and the contract is rescinded, the company re-enters the privatisation process. Investors also have to waive their investments and capital in the company. The difficult situation of the companies with contested privatisation contracts is the drawn-out commercial court procedure, which is why there have been proposals to speed up the legal procedure in such cases and make certain amendments to the Law on Privatisation.
Privatisation is a difficult process and success depends on the good will of everyone involved. Luck is often an important factor. Merkur, from Backa Palanka, was a good company that produced leather bags, gloves and other products. The company had bad luck with the investor. The new owner could not obtain a bank guarantee to invest in the company, despite making such a commitment in the contract. The contract was rescinded, but the employees paid the price. Employees of Kosjeric filed a legal complaint because of 15 overdue salary instalments owed to them prior to privatisation. The court ruled in favour of the employees and they were paid after the company sold its equipment to secure funds. The survival of the company is now at stake. Part of the workforce is on strike, while others are working. The investors lack the means to organise production, although there are several orders waiting in line. The Agency continues to mediate negotiations between the investor and the employees in an effort to save the company from ruin.•
1,235 companies sold A total of 1,235 companies have been privatised in Serbia for close to 88.9 billion dinars, says the Privatisation Agency's report to the Privatisation Board of the Serbian Parliament. 1,560 companies were offered for sale, which means that 79% were sold. 37 companies were sold at tenders (53% of the total number tendered for sale), 1017 were sold at auction (86%) and 181 changed ownership at the stock exchange (58%). Privatisation Board president Nikola Novakovic said the number of contested privatisation contracts was still below the 10% mark, adding that he was pleased with the fact that privatisation was gaining momentum in Serbia.
CorD | February 2005
47
Interview
U.S. POLICY FOR SCG
Last year's U.S. presidential elections saw the Serbian Diaspora offer strong support to incumbent Republican president George W Bush. Indeed, in the state of Ohio the significant votes of Serbian expatriates contributed to Bush's narrow victory.
By Dragan Bisenic, Photo Stanislav Milojkovic
KOSOVO INDEPENDENCE REQUIRES BELGRADE'S AGREEMENT
T
his month we spoke to Obrad Kesic, prominent member of America's Democratic Party and a former expert of the IREX Foundation who has long since dealt with events on the territory of the former Yugoslavia, about the political role of America's Serbian community and the relationship between the U.S. and SCG. There is an old saying: "Victory has a thousand fathers and defeat only one". Well, according to Kesic, "in American politics both victory and defeat have a thousand fathers and, therefore, every ethnic group hopes to be the crucial, defining factor. The
Obrad Kesic, U.S. Democratic Party member, former IREX Foundation expert
story about the role of the Serbian community in the last U.S. elections was widespread throughout the American media. "At a meeting of the Democratic Party's National Committee, we discussed the causes of the defeat of our candidate. Representatives of numerous ethnic groups participated in the meeting. The Poles and other Catholics attended as a compact group and said that abortion and other moral issues had been the key reasons for Kerry's defeat. However, I joined the discussion and said I would bet that, in terms of percentages, no single community voted like the Serbian community and at least 95% of them voted for Bush." He continued: "I went on to explain that this was because of a bad foreign policy and that those who devised that policy had completely destroyed the possibility for any Serbs in America - except the handful involved in the work of the party - to support Kerry. "Much to my surprise, representatives of other communities supported and agreed with my stance. First of all the representative of the Ukrainian community, from Ohio, told us the story of the newspaper the Cleveland Plain Dealer. One of the publishers of this daily is a conservative of Serbian origin who is close to Senator George Vojinovic. Those writing the publication's editorial initially opted to support Kerry, but their decision was changed because of the publisher. That was immediately linked to the policy of the Democrats towards Serbia, though it may not have been correct. "There were others who claimed that the majority of Orthodox Christians voted against Kerry. My Ukrainian colleague concluded that Richard Holbrook cost Kerry a great number of votes in Ohio. "Two positive things happened immediately after this meeting: for the first time, famous pollsters John and Jim decided to create a new category of respondent for their opinion polls, whom they defined as "Orthodox" - persons belonging to the Christian Orthodox religion; ‌representative communities in America decided to use the moment to create a political society that would be a centre of co-operation and where influence of Orthodox voters in America would be strengthened." How important is that really; how good is it and does placing the co-operation between Serbia & Montenegro on such a confessional base have any effect, as it represents a new step in the development of Serbian - American relations? In America there is a specific situation that is very important for the entire society and whole policy. That is that everybody accepted that religion played a great role in this election. Both Democrats and Republicans claim the same: that George Bush won this election because people voted for him because his values and his beliefs were closer to what they feel than what John Kerry presented them with. That is a very important fact in America and it will be very interesting to follow. There are positive and negative consequences of that. For our community, it is good that people have started asking questions about the Orthodox community. Previously, the Orthodox community was not present in American politics in a great way. Nobody ever asked for them in opinion polls, nor considered them as an important political factor. Now that has
48
CorD | February 2005
Interview changed. Now people understand that the Orthodox community can have quite a serious effect on any election. Will that strengthen the clerical factor in Serbia? I do not know if there is any correlation between strengthening that in America and the situation in Serbia. In America there are some negative things now being expressed in society. The concept of religion and moral values are now key concepts in American society. Things are being punished now, which were not punishable before. There is ultra conservatism with regard to what it is moral for people to watch and what is not. For instance, there was a great deal of panic about Janet Jackson. I have never seen such a thing in America. Her breast was accidentally shown at a concert on television, after which an incredible campaign took place. It even prompted a hearing in the Senate and Congress. The law regulating the media in America was completely changed all because of one breast. I am religious, but what worries me is the existence of the danger of manipulating religious, personal and intimate values and feelings. American society is extremely divided. All the time there is talk about red and blue states, Democrats blue and Republicans red. That is true to a great extent. The division between the Democrats and the Republicans is widening. There are no common points because the values are so different. You were one of the rare public figures who explicitly claimed that all those who thought Kerry would win were wrong and that they should bet on Bush, even though you are a Democrat? I have been involved in politics in America for a long time and I can feel when a campaign is good and when it is bad. I knew that Kerry's campaign was set up in completely the wrong way. In order to have a chance of winning he had to play on different subjects: the economy, social issues, values and religion. He understood that too late. He wasted time trying to show that he would be a bigger Catholic than the Pope with regard to foreign policy. The differences between his programme and Bush's foreign policy were negligible. There was a slightly greater difference with regard to the Balkans because the people around him thought that had been a great success from Clinton's time that should be used. They directly or indirectly pushed him into supporting an independent Kosovo, and that closed the possibility of Serbs voting for him to a great extent. Do we know how to re-establish the relationship with America that has complicated our relations, particularly as we know that there is probably nowhere else in our region with a richer history of relations with America than Serbia and Belgrade? After the fall of Milosevic, the relationship between America and Serbia was established in completely the wrong way. That was because of internal reasons in Serbia, not because of any tangible issues between America and Serbia. The crucial mistake was DOS's approach to The Hague issue. At the instant Milosevic fell, the situation in America suddenly changed. Serbs become heroes overnight because they brought Milosevic down. The mood among Serbs was very positive and on a high level. Clinton's administration was full of itself, thinking: we managed with the Serbs to bring Milosevic down. They were prepared to make great concessions to the new authorities. One of those big concessions, emphasised by Clinton's administration and accepted by the most influential media in America, was to try Slobodan Milosevic in Serbia. There was no pressure at all for his extradition. Slobodan Milosevic was sent to The Hague not because of The Hague, per say, or his responsibility for war crimes, but because of the internal political situation in Serbia. Who expressed a readiness to make that concession and in what way? Assistant Secretary of State Jim O'Brien came to Belgrade for the first time with one message. He had several things, and one of them was that he expected co-operation with The Hague Tribunal, but that the USA was prepared for this process to start in Belgrade. Those were his instructions and he told Vojislav Kostunica and
Obrad Kesic talking to our Editor Zoran Djindjic that when he met them. The American administration was no longer saying "they must be indicted", but rather "we will see what the best mechanism to achieve justice as regards war crimes is". That came so far that the leading article in the New York Times in the March prior to Milosevic's arrest ran with the headline "Milosevic Trial in Belgrade". This lead article was dedicated to the subject that Serbia should have the chance to regain the citizens' trust in its own institutions and to show that it is ready to join the normal world. The question is why this message was not accepted here? If they already wanted to arrest him, why did they wait until the evening before expiry of the deadline, which Congress had voted would result in the breaking of international aid? That was damaging because it returned the game to the segment of America's political elite who claimed that Serbs only understand the language of violence, threats, power and conditioning. They gained credibility again. They did not understand that Milosevic was arrested because of the internal policy in
Americans believe they do not have to talk with Serbia as equals‌It is considered that they should not be respected as negotiators, or be party to discussions, but America should simply put its foot down and say "you have to fulfil this and that." Serbia, to show who had the power, but they understood that they voted for the ultimatum to Serbia and the Serbs succumbed. That was a Congress issue, not the condition of the President's administration. After that there were no arguments from the Serbian side in which no co-operation could be defended, especially one under an ultimatum. Now we have a situation that is a direct consequence of such erroneous politics. What situation do we really have at the moment and how will it develop? Currently, our relationship with America is based on the fact that Americans believe they do not have to talk with Serbia as equals, regardless of whether they have a positive, negative or indifferent opinion of Serbia. It is considered that they should not be respected as negotiators, or be party to discussions, but America should simply put its foot down and say "you have to fulfil this and that." That is the main problem. It is not America's fault for such a state. It is the fault of Serbian politicians. Now, after the events in Bosnia, they have the chance to change that. If Serbia draws a line and says that the U.S. can no longer talk to them under pressure and blackmail - for which Serbia has the full right under the conditions of the Dayton Treaty - it will open up a new phase of co-operation with both Europe and America. This would not be out of spite or obstruction from the Serbian side, but the basic matCorD | February 2005
49
Interview ter of the behaviour, role and place of the High Representative in Bosnia. This is a much easier battle for Serbia than Kosovo because it is not on Serbian territory. The question is will it succeed? I am not saying it will succeed. I am aware of the real situation here, but I think that this might be the last chance to turn the relationship between Serbia and America, and the rest of the world, around. If they do not use this I am not sure that they will get another chance. These events will have a direct effect on the position of Serbia in negotiations regarding Kosovo. Then we enter that process with the old frame that Serbs only understand the policy of violence, ultimatums and pressure, or we enter under the new frame, whereby we are considered as serious partners and negotiators. If things in Bosnia succeed, the opinion will be strengthened in America and the international community that it is not at all important if Serbs like something or not, if something is acceptable or not, because you can easily impose your will upon them.
reacted so that it remained present. Their interest is that America remains present. Their interest for America to remain here is not honest, nor is it because they like America, but rather because of their awareness that the Americans want a quick solution. And they think that independence is the only quick, acceptable solution.
The withdrawal of troops from Kosovo is a very crucial motivating factor for the Americans when it comes to deciding on final status‌They have to pull their troops out because they do not want to deal with this issue any more. That is a negative and unhealthy foundation for a policy.
Can Kosovo be independent if we take into consideration the withdrawal of America from the Balkans? There is no independent Kosovo without Belgrade's concord. That is clear to the international community too, but I think that there are some in the international community who believe that they will receive agreement from Belgrade for that. They believe that they can achieve that through pressure, blackmail, rewards or competition‌ There is inertia regarding this issue that this is something which cannot be solved. By that, the excuse is provided that no politician will be responsible for the loss of Kosovo. And that means that we might end up with the worst possible situation. And that is that, formally, Kosovo remains part of Serbia & Montenegro, is recognized as part of Serbia & Montenegro, but that Serbia has no influence or control over Kosovo whatsoever.
From the American side too there are some new options. The Foreign Affairs magazine published a big article considering the canonization of Kosovo and the special relationships of those cantons with Serbia; the integration of the northern part of Kosovo with Serbia, etc.? Everything is on the table. Neither the Americans nor Europe have some final status solution that they support unequivocally. From the American side there is the idea that what is easiest to achieve is acceptable, and that is independence. If Kosovo is independent, the peacekeeping forces are placed on international borders and there are no problems. The withdrawal of troops from Kosovo is a very crucial motivating factor for the Americans when it comes to deciding on final status. On the other side, they are aware that it is possible that the Albanians may start with violence again and they are afraid of some new or wider clashes with the Albanians. Not because they are afraid of the Albanians, but because that could make their strategy more complicated. They have to pull their troops out because they do not want to deal with this issue any more. That is a negative and unhealthy foundation for a policy. In a certain way, that guarantees that there will be violence because Albanian extremists are aware of that. Every time they took up arms and began violence America
50
CorD | February 2005
What are the chances of establishing a military partnership between the U.S. and SCG? Since the fall of Milosevic I have been one of the supporters of the idea that Serbia & Montenegro's Army should be used in a positive sense; to get involved in world flows and become a factor that will enhance the importance of Serbia. I think that we were able to do so. Now I am not so convinced because the financial situation in the Army is worse than it was a year ago. That choice was presented in a bad way. Everybody was saying "we have to participate in Afghanistan and Iraq in order to draw the Americans over to our side and after that everything will be easy". Prime Minister Zivkovic had a plan to send troops to Afghanistan. I think that was a bad idea. The Americans do not demand such a transparent, flattering thing. They demand something substantial. There is no need to go to Iraq, but participation in peacekeeping forces is considerable. We now have a very weak presence in such operations. We should send our troops to Haiti, for instance, where the situation is not so chaotic and not so dangerous. The Americans could withdraw a large number of their troops from that area and participate in some other operations. That would indirectly mean the same as sending troops to Iraq and Afghanistan. I think that the participation of Serbian & Montenegrin soldiers in such operations should be seriously considered. That would be an important strategic issue, not only for America but for Europe too. I think that we have to be much more aggressive, more active and be prepared to participate in such peacekeeping operations around the world. If we are not, we have to think up something different that gives us value in this world. Is there still a chance? The financial situation is much worse. Moral has dropped and there have been several scandals that have jeopardized the Army's reputation. I don't think this was accidental. I think somebody really wanted to hit the army and destroy its reputation. Everything is not brilliant in the Army. They have thousands of problems and reform is needed, but the state does not have many valuable things to offer the international community. The Army could be one of those things. Destroying that is a great mistake. Those who do that: who claim that the army is anti-reformist, demand its full disbandment or that we join NATO, are not aware how much joining NATO costs. My opinion is that we do not have to join NATO because we cannot afford to pay the cost of entering NATO, which is at least one billion, 200 million dollars. Joining Partnership for Peace would be sufficient. However, somebody has to think about those things and has to think well about how to increase our value through the army. Greater participation in peacekeeping operations is the key to the whole thing. But for that to happen we have to invest in the army. We cannot simply turn our back on the army and tell them to find the solution for themselves.•
bulletin...bulletin...bulletin... Church defaced
Radicals rally against Hague
T
T
he cross from the main dome of Pristina's Sveti Nikola Orthodox Church has been stolen. Sveti Nikola was one of 37 churches set ablaze during last year's March pogrom in the province.•
No Power
S
everal Serb villages in Kosovo have been without electricity for more than a month. Representatives of the Serb villages of Batus and Lipljan met UNMIK officials regarding the matter, but no deals were forthcoming and the communities remain without power. According to Borivoje Vignjevic, local municipality vice president, nothing fresh was said at the meeting: "A representative of Mr. Petersen simply wanted to better acquaint himself with the current situation in the Serbian community of Lipljan, with which he is dealing. However, it is incredibly unrealistic and inhumane not to give these people electricity for more than 30 days, and they are just now sending people to report on how the Serbian people are coping with these conditions." Vignjevic added that the UNMIK representatives avoided directly answering questions: "We said that if something was malfunctioning they should let us fix it; if we must pay for the electricity, tell us how much; If you insist on something else, under the jurisdiction of the Co-ordination Centre and the Serbian government, you must be aware that we cannot sign or accept anything."•
he Serbian Radical Party held a rally in New Belgrade's Sava Centre last month in honour of party founder and leader Vojislav Seselj, who currently resides in a cell at The Hague tribunal's holding facility. The rally, which was attended by members of Hague fugitive Radovan Karadzic's family, was formally opened by academic Kosta Cavoski. Addressing the Radical mass, Cavoski said: "We must not forget our other patriots who have already been, or will soon be, extradited to The Hague. To those patriots, we wish happiness and that they will soon have their freedom, while we wish eternal damnation to their persecutors, extraditers and jailers". The day-long meeting saw speeches by more than 50 pro-Radical figures.
Davinic open to U.S. Bases
S
CG Defence Minister, Prvoslav Davinic, said in January that SCG could play a key role in developing NATO's security network in Europe. Speaking during a trip to London, Davinic expressed his hope that the State Union would soon join NATO's Partnership for Peace programme, which is seen as a steppingstone towards full NATO membership. PfP membership, he noted, would see SCG join the Western Alliance's European security network and State Union authorities would then be open to the idea of U.S. bases being opened on SCG territory. Davinic explained: "We see this as a regional thing. If you have bases in
Bulgaria or Romania, then a few bases in SCG will complete the network".•
Enemies surround PM
G
overnment coalition party G17 Plus has once again threatened to pull out of the minority Serbian Government if indicted war crimes suspects are not extradited to The Hague forthwith. According to Miloljub Albijanic, chief parliamentary whip of G17 Plus, "The Government must show greater courage and decisiveness by co-operating with The Hague Tribunal in order to remove all obstacles preventing a positive assessment in the [EU] Feasibility Study." Albijanic said that the G17 Plus senior board would make a final decision regarding the party's future in the tottering coalition government, though he noted that a number of possibilities were still on the proverbial table: the government must fully implement The Hague Tribunal Cooperation Act or the cabinet must meet and reach a decision regarding the arrests of indicted suspects. PM Kostunica's government is also being threatened by Slobodan Milosevic's Socialist Party of Serbia and the Serbian Radical Party. Both of the nationalist parties are threatening to bring the government down.
Karic & Co. threatened
B
ogoljub Karic, Serbian media mogul and Force of Serbia leader, told Serbian daily Glas Javnosti he has received threats that his family and company will be systematically destroyed if he does not move away from the domestic political scene. According to Karic, he was told that dirty media campaigns accusing him of being a traitorous criminal and his children of being drug dealers would continue until he dropped his political ambitions.• CorD | February 2005
51
Interview
LATIN LEADER As the largest country in South America, bordering 10 other countries, Brazil has always sat at the heart of political and economic life in Latin America. The South American giant employs a wise foreign policy towards all neighbouring states and, as the state spearheading a bold initiative to unify the economic systems of Latin America, Brazil aspires to grow into the engine room leading a newly unified South America.
H.E. Rubem Amaral Junior, Brazilian Ambassador to SCG because there are many differences in industrial development among the members and all the countries have weak economies. As we have economic balance of trade problems, when one of the countries has a problem the internal policy for solving a problem becomes more important than the global economy of the group. This is something that will, one day, be different: like in the EU, where they have common policies for every sector. We have not yet reached the point where one country can consider the
There is no justification for the situation that sees people live from an income of 1 dollar in many parts of the world, while in other parts of the world you have an excess of food and everything.
By Nina Nicovic, Photo Andy Dall
D
espite the ever-present financial, economic and social problems that have dogged the state, Brazil has shown its will and ability to overcome all obstacles on the road to prosperity. This month we spoke to Brazilian Ambassador to SCG, H.E. Rubem Amaral Junior, about the ongoing reforms of President Lula's Government and Brazil's role as the leading force in Latin America. How does Brazil use the fact that it borders practically every major country in Latin America to strengthen its economy? I think that the most important priority of our policy towards neighbouring countries is integration group Mercosur; although it is still very small, with only five member countries. Our hope for the future is that the whole of South America will join us. Mercosur had some difficulties from a commercial point of view
52
CorD | February 2005
problems of the entire group when making decisions. When there is a problem in one country it affects the entire Mercosur market and many say we shouldn't be in this system. However, we must not forget that Mercosur is not only there to deal with economic or commercial integration, but also, in the future, we hope it will have wider powers, like the EU does. We are far from this goal, but this is the political decision that the governments of Mercosur countries need to make in order to realise that we should insist not only on trade and economic harmonization, but also on other aspects of integration that include cultural affairs, freedom of movement, investments, etc. Have recent alliances with Argentina, Venezuela and the Mercosur trade bloc states (Uruguay, Paraguay, Bolivia, Peru and Chile) made substantial differences to Brazil's trade agreements? Yes, of course. We initiated our integration with Latin American countries, especially with South American countries and Mexico, during the '60s, through the Latin American Free Trade Association. This association was not so successful. Not only because of the big differences in development that existed between the countries of South America, but also because trade was the only concern. This could never have advanced too far. Then it was transformed into the Latin American Association for Integration. This was the seed of Mercosur. The idea was to begin only with
Interview Argentina and Brazil, but Paraguay immediately joined because its economy is very closely connected to Brazil and Argentina. This put our trade agreements in a much more integrated and better perspective with the member countries.
the president would like to have done much more then he was able. Not only because they made promises, but because this is a part of the philosophy of his party. You know that the origins of President Lula's party are from the trade unions. He was a great leader of the metallurgic trade union. When they were in opposition they were always criticizing the government for not paying sufficient attention to social areas. Our government was forced to choose between investing excessively in the social area or spend-
What is your country's largest focus in direct investments at this time? Our economy is so diversified that I could not single out a sector that investments are concentrating most on right now. We have already had a very Last year was one of our most successful years for foreign successful privatisation policy and many public services were funded by private trade. We have never before had such a great surplus on companies, even international companies - our trade balance. This is allowing us to pay our debts to especially in the field of communications, international financial agencies and create a climate of where we have big companies. At the moment we also have steel and mining trust for foreign investors that want to come to Brazil. companies, railways and many other sectors within which there was much participation of the Brazilian ing more than was possible in order to maintain the health of the state prior to the process of privatisation. economy. Our government has just gained a law, via congress, that President Lula was heavily criticized for this kind of policy, but includes a very important programme, which will have a major he was only being realistic because it was not possible to adopt a impact on our economy and development. It is called the Public different policy, as we could not have gauged the consequences it Private Partnership Law. This will allow us to associate the state would have on our country. It is a very responsible economic polthrough financing with private companies, in order to build pubicy and proves our president is not a populist president thinking lic infrastructure facilities like parks, railways, roads...The govonly about his popularity. He wants to create a healthy economy ernment has already initiated 20 or 30 projects for this profor us, in order to do what is necessary in the social life. gramme. There are some programmes of that sort in every region of the country. These are the most important sectors. Besides priHas a consensus been achieved with the largest social vate companies that can build the roads, similar programmes can organisation in Brazil the "Landless Workers Movement"? be adopted by the state or at a municipal level. These are the soluThey are never satisfied with what is done. However, it is tions we believe will be good for further development of the healthy to put pressure on the government and, of course, the govBrazilian economy. We need good transportation because we ernment wishes to progress with reforms. These reforms are not have such a large territory. Our roads are currently in very bad made up by the government of President Lula, they have been in shape because our government has adopted this oyster type ecothe works for a very long time. However, it was expected that these nomic policy and hasn't got much to invest. Thus we are lacking kinds of reforms would increase much more than has occurred the necessary public funds to invest in these matters. during his mandate. What financial mechanisms are needed to overcome a potential economic standstill that is sometimes caused by high interest rates from the Central Bank and IMF guidelines for the budgetary surplus rate? Interest rates in Brazil are among the highest in the world, if not first or second globally. Our main concern is to ensure the high inflation we experienced in the past does not return. Because of that concern, the government wishes to control the internal demands of growth so it doesn't go up very fast, as this could put pressure on prices and provoke inflation. Presently, we are keeping inflation at an acceptable level, below 6%, and, when compared with prior inflation levels, it is plain that this is a very successful policy. Of course, we have to adopt mechanisms to compensate for this. We have lines of credit for small and mid-sized businesses. In fact, we are not trying to push internal demand. On the contrary, we wish to create a tolerable level to avoid placing great pressure on available production and, also, to avoid encouraging imports. Last year was one of our most successful years for foreign trade. We have never before had such a great surplus on our trade balance. This is allowing us to pay our debts to international financial agencies and create a climate of trust for foreign investors that want to come to Brazil. How are the initially announced agrarian reforms of the current government of Brazil developing? The government is doing what it can, considering that we have this 'oyster' economic policy. The government of President Lula is greatly concerned with the social aspect of our life. In fact,
Brazil: The natural leader of South America CorD | February 2005
53
Interview There is no consensus between Lula and the workers and I have to say that the workers' movement is still invading private property. Still, an agrarian reform is something that is not easy to do because there are many legal and judicial problems. We have a right of property in Brazil, which has to be respected. The government cannot support invasions of parts of the country because this is illegal.
Finance and the state assembly. This is the basic method of controlling public expenses in Brazil. As for the participation of civil society in this process, we have particular control, at municipal levels of funding received by the municipalities from the federal government. Because our constitution disposes of taxes collected by the federal government, these funds have to be transferred to the municipalities for things like schools. At this level the population and civil society can exercise more awareness and control over the implementing of these funds. If municipalities don't implement it, as they should have done initially, then they don't get funds at the end of the year.
How is your government achieving the always necessary consensus between such social organisations such and the domestic economic elite? I have to say that President Lula is greatly in favour of the participation of the representative sectors of this country in the govHow is your country fighting corruption? ernment's decision-making process. This is one of our greatest concerns. When we have to prepare reforms in But, as I said before, our basic instrusome sector, we always try to gain an ment to control corruption is the finanopinion from the NGOs and representacial court that controls all government tive classes of the population. However, expenses. We have very strict laws on this is not an easy task in a country like public tenders but, even within the legBrazil that is so big and has so many islation it is always possible for someproblems. thing to go wrong. However, it is the job The basic problem of our economy of our attorneys to ensure that these is the huge concentration of income. I kind of problems are examined by the think that we had possibly the most judiciary. unjust distribution of wealth of any country on the planet. The fact is that Are good relations with neighboureverybody recognizes that this is the ing states helping to counter money most crucial problem we must try to laundering networks and crime and, if solve, but this is only possible if we take so, in what way? some measures immediately. We have I'm not well aware of how much coto do this within the capitalist economy, operation with neighbouring countries in accordance with our laws and our is happening in this field. There is much constitution. There are many problems concern in Brazil with this issue and our hindering the inclusion of poor people attorneys are always trying to tackle this in the economy. problem. There are mechanisms of coWe have a very important prooperation between police forces of the gramme created for the children of poor region, and also with Interpol. We even families, within which we give a certain have an agreement with Switzerland, to amount of money every month if parwhence much of the laundered money ents send their children to school. This heads. Basically, this problem is hanWe don't think of any leadprogramme comes from the previous dled by the justice department and the government, but the idea was to improjudiciary. ership roles because this ve this programme during President As concerns other forms of crime, always provokes reactions Lula's government. There are also many there are problems with deforestation, other programmes for the unemployed. illegal mining and drug trafficking. We that are very natural. Of have invested around 2 billion dollars in course, everything that hap- the satellite system that monitors illegal Your country's government has announced some very positive proactivities in the Amazon region. pens in Brazil impacts on grammes to tackle hunger issues. How our neighbours. are they currently developing? Do you think that your country, President Lula has even tried to with its current foreign policy, can transfer this to an international level. Together with the UN become a very important stabilising and unification factor of Secretary-General, he sponsored a meeting of world leaders at the Latin America? beginning of September 2004, before the last general assembly of This is something I think will come naturally. We don't think of the UN, to try to identify mechanisms to finance the fight against any leadership roles because this always provokes reactions that are hunger and poverty worldwide. This is something that is not only very natural. Of course, everything that happens in Brazil impacts an issue in Brazil. There is no justification for the situation that on our neighbours. If our economy is healthy our neighbours will be sees people live from an income of 1 dollar in many parts of the positively affected because we will buy more from them and will world, while in other parts of the world you have an excess of food have money to invest in roads and tourists to send to other regions. and everything. This is a very important programme for the distriOf course, there are some aspects where we have really taken the inibution of income but, as I said before, in a year when you have so tiative. For example, the creation of the union of South America that many important economic problems to cope with, investment in has been one of our foreign policy projects for this region. The other this area was not as high as the government would have liked. is the fight against hunger that has been created for implementation worldwide. Something that will be very much discussed in the near How is public control and the inclusion of civil society repfuture is our wish to be a permanent member of the Security resentatives in state services implemented in Brazil? Council, as a direct result of the reform mechanisms that are taking Basically, we have a federal-level administrative clerk in the place in Brazil and in the region. There are lots of different views states and in municipalities who controls the accounts of all about that, but Brazil has received support from almost every counpublics funds. This is something that is subject to the Law of try in our neighbourhood.•
54
CorD | February 2005
Faces & Places Ambassadors and diplomatic representatives of European Union countries, meeting Serbian Finance Minister Mladjan Dinkic on 17th January. The EU representatives were presented with results of the Serbian Government's 2004 progress in the economic field, as well as this year's plans in this domain.
H.E. Dr Juan Sanchez Monroe, Ambassador of Cuba to SCG, pictured with guests at the 19th January Cuban Ambassadorial Residence reception marking Cuban National Day. The event was attended, amongst others, by ambassadors of Australia, Turkey, Argentina and Brazil, as well as Belgrade socialites and political figures.
H.E. Hannes Porias, Austrian ambassador to SCG, with City Manager Bojan Stanojevic and Director of Belgrade Waterworks Company, Vladimir Tausanovic, pictured on 21st December at the signing of an agreement on the second phase of financial aid to Belgrade Waterworks Company. The assistance is worth â‚Ź210,000.
TURKISH PERFORMERS A group of singers, musicians and dancers from Istanbul's 'Mevlevi Galata' temple perform under the title 'Dancing dervishes' in Belgrade on 17th January. They performed the complete ceremony of traditional dances of monks with traditional instruments. This dance is usually not performed outside of the temples of the dervish, so this was a chance for the public to see dances with a little mysticism inside the movement.
Faces & Places Patriarch Pavle, SCG Foreign Minister Vuk Draskovic, Serbian President Boris Tadic and Serbian PM Vojislav Kostunica, pictured on 10th January at 'Dom Garde' during a charity event, organised under the patronage of Patriarch Pavle. The event, organised to raise money for Serbs in Kosovo, was attended by representatives of major companies, diplomats and others.
Andrej Jandric, assistant at Belgrade's Philosophy Faculty, pictured alongside Ruzica Djindjic, receiving the 'Dr Zoran Djindjic prize'. The annual award is presented to the individual adjudged to have completed the best Graduate or Postgraduate Work in the fields of philosophy or social sciences. Predrag Teodorovic, the best student of the University of Novi Sad, was also awarded with prize money of 60,000 dinars.
Deputy Serbian PM, Miroljub Labus, Serbian Parliament Speaker, Predrag Markovic and President of the European Movement in Serbia, Zivorad Kovacevic, pictured with OSCE Mission Chief, H.E. Maurizio Massari at a roundtable entitled 'National Consensus on the European future of Serbia'. The event, held at New Belgrade's Sava Centre on 15th January, was organised by the Republic of Serbia's National Assembly Committee for European Integration and the European Movement in Serbia.
H.E. Michael Polt, U.S. Ambassador to SCG, pictured with Belgrade orphans at the 10th January ceremony marking completion of the renovation of the "Mosa Pijade" children's home. The U.S. Embassy in Belgrade and U.S. European Command, (EUCOM), donated $285,000 for the renovation of this orphanage. The institution is one of six facilities belonging to the Centre for the Welfare of Infants, Children and Adolescents.
Stefan Milenkovic, famous local violinist, performing at the 10th traditional concert in New Belgrade's Sava Centre on 14th January. Milenkovic performed alongside the St. Petersburg Symphonic Orchestra. CorD | February 2005
57
Faces & Places
H.E. Yaffa Ben -Ari, Israeli Ambassador to SCG, pictured with Milan Parivodic, Serbian Minister for International Economical Affairs, at the 11th annual Israeli Business Forum, which was held in the Intercontinental Hotel on 11th January. The detachment of U.S. marines assigned to Belgrade's U.S. embassy present toys collected by the Embassy to orphans of Belgrade's "Mose Pijade" orphanage. U.S. Marine detachments at American Embassies worldwide traditionally collect toys from the embassies' communities during the holiday season and present them to local needy or less fortunate children.
Serbian Trade Minister, Predrag Bubalo, with Dragisa Okolisanov, director of the Trade Registration Agency (TRA), pictured at the opening ceremony of the TRA on 18th January. The agency is tasked with registering all trade subjects to EU standards, in order to create a unique electronic database of all trade companies in Serbia. Speaking at the ceremony were Swedish Ambassador to SCG, H.E. Lars-Goran Engfeldt, U.S. Ambassador, H.E. Michael Polt, and World Bank Representative, Carolyn Jungr.
H.E. Rujichi Tanabe, Ambassador of Japan to SCG, pictured on 19th January at the signing of a Contract for nonreturnable financial aid gifted by the Japanese Government. The funds, totalling â‚Ź17,000, have been earmarked for the renovation of schools in Serbia & Montenegro.
58
CorD | February 2005
H.E. Barend Van Der Heiden, Royal Netherlands Ambassador to SCG, pictured with Zoran Boricic, Dean of the University of Nis's Faculty of Mechanical Engineering, at the signing of an agreement for implementation of the "Programme for Resettlement of Redundant Military Personnel - PRISMA". The project was developed by the SCG Ministry of Defence in order to address the problem of redundant military personnel. The Netherlands' Ministry of Foreign Affairs is to finance the establishing of a Training Centre in Nis. It will also fund the training of Centre staff, as well as the retraining of redundant military officers for jobs demanded by the labour market. The value of the project is â‚Ź700,000.
DRAW FOR “ERUOBASKET 2005” The groups for the European Basketball Champioship “Eurobasket 2005”, which will take place between the 15th and 25th September in Belgrade, Podgorica, Novi Sad and Vrsac, being drawn in New Belgrade's Sava Centre. Serbia & Montenegro will meet European runners-up Spain in the first round of the long-awaited tournament. The groups are as follows: GROUP "A" (VRSAC) Italy, Germany, Russia, the Ukraine. GROUP "B" (PODGORICA) Lithuania, Turkey, Croatia, Bulgaria. GROUP "C" (BELGRADE) Greece, France, Slovenia, BiH. GROUP "D" (NOVI SAD) Spain, SCG, Latvia and winner of the pre-Eurobasket qualifying tournament.
Gholam Vafai, Director of the Iranian Cultural Centre, pictured at the literary evening held in the International Press Centre on 18th January. The evening was dedicated to the works of poet, scientist and philosopher Omar Hajam. Attendees were addressed by new Iranian Ambassador to SCG, H.E. Seyed Morteza Mir Heydari. The event was spiced up with traditional Iranian music, while the walls of the Press Centre were adorned with Persian rugs.
The 16th participant in the championship will be known two days prior to the tournament's opening. Nine countries are competing for the final spot in three groups: "A" - Estonia, the Czech Republic, Poland; "B" - Belgium, Israel, Holland; "C" - Portugal, Hungary, Sweden. Group winners will meet at the final tournament in Belgrade (11th - 13th September) and the overall winner will join tournament Group D. The Sava Centre draw was led by FIBA-Europe's executive director, Nar Zanolin, who had help from FIBA - Europe's sporting director, Kosta Iliev, SCG team manager, Zarko Paspalj, Partizan Belgrade star Kosta Perovic and former Greek national team player Teofanis Christodulu. Opening speeches were made by the FIBA - Europe President, George Vassilakopoulos, Serbian Minister of Sport and Education, Slobodan Vuksanovic, and president of the KSSCG (SCG Basketball Federation), Miodrag Babic. Representatives of all the national squads and many former basketball stars were also present. Honorary FIBA Secretary - General, Borislav Stankovic, emphasised that the draw was the first step in the organisation of this championship, from which SCG expects a great deal. He also thinks that the results of the draw are unimportant to the host team, since it has the ambition of winning the gold medal. Therefore, he said, it is all the same who they are going to play along the way.
Milan Parivodic, Serbian Minister for Foreign Economic Relations, pictured with other participants at a press conference in the Intercontinental Hotel. The press conference was used to discuss the 'Neighbour Programme', which pertains to co-operation with neighbouring Hungary, Romania and Bulgaria. Other guests and speakers included Adriano Martins - Chief of the Belgrade Office of the European Agency for Reconstruction, and delegates from Brussels. CorD | February 2005
59
Legalisation
Law required P
rofessor Tom Rajicevic PhD, The domestic market will be proSpecial Advisor to the Serbia needs a new Law on Foreign Trade. The tected to a wider extent by regulaSerbian Ministry for Foreign current law was passed in 1992 and has a very tions that were previously either Economic Relations and one of non-existent or were left undevelrestrictive nature that was, nevertheless, miti- oped. Quicker accession of the state the authors of the Bill on Foreign gated to a certain extent after 5th October union to the WTO and accepting Trade, insists that the current law 2000. The law contains loopholes that allow the rules and principles of this fails to protect the national economy to a way that is common in the different kinds of machinations and disrupt the organisation will allow domestic circle of WTO members. liberties and the principle of equal opportunity companies to conduct business According to Rajicevic, the latfor those participating in foreign trade. It is a with some 150 countries, including est Bill introduces radical changes the EU, under a most favourable great burden on the economy and state gover- nation status. to the current situation and seeks nance. Moreover, the law fails to provide some to establish a foreign trade regime A certain number of mechanisms important instruments for leading a foreign will continue to be implemented in line with the current economic trends of the global economy. The trade policy and does not create an environ- during transition and economic Bill guarantees freedom for forment for their implementation. Most important- accommodation, along with clear eign trade and plans to simplify ly, it is an obstacle to gaining membership in the signals to the EU that the State conditions for facilitation. It plans of Serbia & Montenegro World Trade Organisation and progressing on Union to introduce comprehensive meintends to join this organisation. the road to EU integration. chanisms to secure trade and Primarily, these are special regimes determine transparent procedures and measures that allow trade with for applying restrictive measures. certain kinds of merchandise and By defining an intelligible and proscribe special conditions for concomprehensive legal framework, ducting certain foreign trade transunderstandable to foreign legal actions. Foreign trade regulations practitioners, the Bill fits well into will be simpler and more transparlegislative reforms that aim to ent, complete and more efficient, by boost foreign investment. Special virtue of contemporary solutions forms of foreign trade are not coined in the language of WTO foreseen by the new law. Namely, agreements and contemporary ecoit does not contain provisions that nomic practice, while preserving deal with long-term productive the spirit and tradition of the co-operation, compensation tranSerbian language and legal system. sactions, re-export, consignments Rajicevic said that the Bill on and other institutional solutions Foreign Trade will set a balance inherent to the socialist legal system. between freedom and security in trade, placing special empha"These solutions have been overrun by time in an era dom- sis on protecting the country's most vulnerable sectors and new inated by private property in all domains of the economy and industries. The authors said they had taken into account the the global market", said Rajicevic. "Some operations that need views of major domestic and foreign institutions and expect the to be regulated are covered by the new Customs Bill. However, Bill to be considered by the Parliament soon. the current needs of the national economy require special The Bill sets a legal framework for non-customs security as an regimes and temporary measures that will be implemented in instrument of foreign trade policy, which includes anti-dumping the period of transition. measures and those intended to protect the balance of payments. "The Bill does not regulate long-term productive co-opera- Dumping is the act of importing goods at prices that are lower tion, but allows these kinds of operations under specific circum- than their normal value, which could cause considerable damage stances," Rajicevic explained. "It also doesn't cover the issue of to the Serbian market. To protect the market, the government is barter trade, but, nevertheless, foresees exceptions during tran- to introduce an anti-dumping customs tax, which will either sition. Likewise, the Bill does not regulate business operations equal, or be set below, the dumping margin. abroad, although they cannot be restricted. In the transitional Compensation duty is introduced to protect the national period, the government can keep records of certain operations economy from the consequences of subsidising production and that include investments abroad." export. Subsidies are defined in accordance with the WTO Re-export and consignments have been entirely regulated by Agreement on Subsidies and Compensational Measures, while the new Customs Law and, thus, there was no need to include the protective customs rate must not exceed the value sufficient provisions for these operations in the Foreign Trade Bill, the to compensate for the damage suffered by the economy. The Bill authors said. The Bill also guarantees the right to charge-free also regulates measures against excessive import of specific transactions in certain cases. products for which there is a domestically produced alternative. The new law will provide equal terms for participants on the Measures to protect the balance of payments are also foreSerbian market, as well as domestic participants on the world seen by the Bill. Their purpose is to stabilise monetary reserves, market, by guaranteeing freedom of action and equal opportuni- i.e. increase them in case they drop below a certain level.• ties for all participants. D.B.
60
CorD | February 2005
Red tape cut apply to emigrants, though a crus an important prerequisite cial step forward is the abandonfor acquiring Serbian citiBy Jasmina Polak ment of the "criterion of residential zenship, the Law proscribes status", which had been a mandathat the applicant must state in The Serbian Government's new Law on tory condition up to this point. writing that he/she accepts the One of the abatements refers to Republic of Serbia as their home Citizenship will make it easier for forforeigners who are legal residents state. On the other hand, the eigners, members of the Serbian of Serbia & Montenegro. When Serbian authorities still expect Diaspora and refugees to acquire applying for citizenship, foreign applicants to forego all other citiSerbian citizenship. According to the citizens must have resided in zenships. Nevertheless, the law provides applicants with the possilegislation, refugees from Croatia and Serbia for at least three years. The Serbian Government is authorized bility of not waiving their prior citBosnia-Herzegovina, who have resided to bypass these provisions when izenship. This is in case it is imposin Serbia for at least nine years, will the granting of citizenship to cersible or unrealistic to expect this from the applicant, although it is acquire citizenship if they apply at the tain foreign citizens is of national Special effort has been still quite vague what the provision Ministry of Internal Affairs within the interest. invested to maintain the continuity exactly refers to. next three years. A child born abroad, of citizenship in Serbia and curb This article of the law most likely refers to foreigners who who has a parent that is a Serbian citi- the numbers of stateless citizens. The Law will also standardize want to acquire Serbian citizenzens, can acquire citizenship if his or record keeping. Citizens currently ship, or to families of Serbian oriher parents apply for it, or give their apply for citizenship at three differgin who have been living abroad consent if the child is 14 years of age or ent locations and with several govfor several generations. The Serbian Renewal Movement, inimore. The most important novelty, how- ernmental bodies. The new regularequire the Ministry of tiator of the new law, requested ever, is that the Law provides the possi- tions Internal Affairs to register and that citizenship should be granted bility for dual or multiple citizenship. keep citizenship records. The to all applicants who were born problem with record keeping arose abroad, if they have even one due to the concurrent implementaancestor who is of Serbian origin. tion of two laws - The Law on However, the Government rejected Yugoslav Citizenship and the Law this proposal. on FRY Citizenship. The law says The Law puts emphasis on the that "citizenship consists of memissue of granting citizenship to emiber-state citizenship and SCG citigrants with at least one parent who zenship, which are united as one. still boasts citizenship of Serbia or Citizenship in the member-state the former Yugoslav states (SFRY, has precedence over the latter, FRY), as well as to families who since by acquiring citizenship of have been living in the Diaspora for one of the member states, an applia longer period of time. cant is automatically granted SCG The applicant has to meet the citizenship". following conditions in order to The Law also defines proceindependently apply for citizendures for people who want to disship: they are 18 years of age or avow their citizenship, which is older, they are capable of work and possible if the individual is 25 they have given written consent years of age or younger, or when accepting the Republic of Serbia as they apply for termination of their their home state. citizenship. The Law will also make it easiThe Ministry of Internal Affairs er for individuals with refugee stadrafted the Law on Citizenship, tus to acquire "Serbian papers". which is similar to corresponding This mostly refers to refugees from laws that are in effect in most Bosnia-Herzegovina and Croatia, European states. who could acquire Serbian citizenThe FRY Citizenship Law came ship because they were citizens of into effect in 2001, after which the new states that emerged after around 120,000 people acquired the break up of the former Serbian citizenship. However, among them only 56,000 were Yugoslavia. The law provides that citizenship can be granted not refugees. It is noteworthy that Kosovo and Metohija is not menonly to refugees who are currently residing in Serbia & tioned in any segment of the Law, exclusive of its status in the Montenegro, but to everyone who lived in the former socialist wider legal framework.• Yugoslav state. The conditions are no different from those which
A
CorD | February 2005
61
Regional affairs
Czech co-operation Co-operation between the State Union and the Czech Republic formally began in 2002 under the auspices of the Stability Pact for South-East Europe and with the aim of improving public administration in SCG. Between 26th and 31st October 2003 a seminar was held for ten Serbian experts in Prague, covering topics suggested by the Serbian contingent. A year later, between 29th and 30th November 2004, a Czech delegation visited Belgrade to discuss organisation of a second seminar to be held in Prague during the first quarter of 2005. The contact partner for implementation of this project is the Ministry for Public Administration and Local Self-government. By Zuzana Bradacova, Photo Stanislav Milojkovic
Zuzana Bradacova, Ph.D. - Modernisation of Public Administration Department, Interior Ministry of the Czech Republic
I
n November 2004 the Czech Interior Ministry hosted a seminar for experts of the Montenegrin Justice Ministry tasked with handling public administration. The roundtable had been planned during the visit to Prague of Montenegrin Justice Minister Zeljko Sturanovic in August 2004. The focus of the meeting was distribution of competences between the state and territorial self-government, and topics covered included public administration information systems, the modernisation of public administration, the status, education and specialist training of territorial self-government officials, as well as compatibility with European Community law. The Czech Republic's Interior Ministry project, "Transfer of know-how and exchange of experience with public administration reform between Central and South-East European countries", operates under the umbrella of the Stability Pact for South-East Europe. The project was submitted in 2000 and belongs to Working Table I for Democratisation and Human Rights (WT I). The aim of the project is to contribute to the political, economic and social stabilisation of South-East European countries by facilitating the consolidation of democratic structures and the development of administrative and institutional resources.
62
CorD | February 2005
With this in mind, the Czech Republic relays experiences and know-how gained during the country's transition from the system of centrally planned economy and highly centralised public administration to a market-led economy and an open and democratic public administration. The fact that South-East European countries now face a very similar challenge creates a great opportunity to exchange experience and learn from each other´s successes and mistakes, thus avoiding the waste of time caused when seeking solutions that have already been found by others. Amongst areas for the exchange of experience and know-how are: methods of decentralisation, techniques of institution building in public administration, methods of training and education of officials in public administration, effective organisation of public control, management in public administration and EU integration, modernisation of public administration and e-government. The uniqueness of the project lies, particularly, in the flexibility that enables topics to be adapted and contents of the expert seminars to the requirements of each individual beneficiary country. The project was initially launched in 2001 for selected countries of the South Eastern Europe: Albania, Bulgaria, Montenegro and Romania. To ensure the project is fully implemetable, the Czech Republic's Interior Ministry applies annually for financial contributions allocated by the Ministry of Foreign Affairs on the basis of the Resolution for financing of humanitarian actions and projects contributing to reconstruction of the territory of the South-East Europe (Resolution No. 765 adopted by the Government of the Czech Republic on 21th July 1999). Annual plans for the programme are dependent on activities negotiated between the Czech Republic's Interior Ministry and the relevant South-East European country, based on the requests of the beneficiary state. The project is realised by the Department of Modernisation of Public Administration of the Interior Ministry of the Czech Republic.•
Stability Pact formation The Stability Pact for South-East Europe was formed at the initiative of the EU in Cologne on 10th June 1999. As detailed in the founding document, more than 40 partner countries and organisations undertook to strengthen the countries of South-East Europe "in their efforts to foster peace, democracy, respect for human rights and economic prosperity, in order to achieve stability in the whole region". (http://www.stabilitypact.org)
bulletin...bulletin...bulletin... Ministers fly solo
SCG taxpayers. Minister Draskovic hired a Leer Jet, popular with Hollywood stars, at a total cost of $11,000. Minister Davinic, however, showed his pragmatism and that he is beyond such frivolous gestures by travelling on a regular British Airways flight.•
Strike frozen
T
he striking JAT Airways Union has temporarily ended its strike as a token of goodwill. According to Union spokesman Miomir Prodanovic, the strike was halted "in the
membership remains high, with 42.4% of respondents against joining the Western Alliance. However, 75% of those questioned said that the country should seek membership of NATO's Partnership for Peace programme and try to join the EU. Martern Board questioned 1,200 citizens from across Serbia, excluding Kosovo, during mid-January.•
Tadic trip to Tripoli
S
erbian President Boris Tadic paid an official visit to Libya in late January, meeting controversial Arab leader Colonel Gadhafi, top Libyan officials and business representatives. Speaking to officials of several dozen Libyan and Serbian firms at a meeting in a
T
hree senior SCG ministers headed off to London as part of an SCG delegation last month, though they travelled on separate flights, costing the country a total that was in excess of $26,000! The officials in question, SCG President Svetozar Marovic, SCG Foreign
interest of our dear travellers and as a sign of goodwill towards the Serbian government. JAT aircraft will now fly again…and a meeting between several government officials and JAT pilots and administrators has been scheduled." He continued: "At the suggestion of the Serbian government, we decided to work together to try to find a solution to our various demands in co-operation with ministers and our team of negotiators. If we do not come to an agreement that both sides are satisfied with, the strikers' council has announced that the strikes will begin again."•
Sanctions not Troubling
A
Minister Vuk Draskovic and SCG Defence Minister Prvoslav Davinic, were heavily criticised by the domestic press for their choice of travel arrangements, though Davinic was praised for his ego-free choice. President Marovic rented a Falcon 2000 jet for himself and his entourage, incurring a total travel cost of $14,000 one-way, which will hit the pockets of
ccording to a recent Marten Board survey, the Serbian public is not at all bothered that the U.S. has imposed sanctions on the country yet again, though public opinion suggests that the country's politicians failed to do enough to prevent the imposing of the new sanctions. Around 40% of respondents were opposed to extraditing Serbian citizens to The Hague tribunal, though another 40% believed the imposing of sanctions was not directly linked to failure to co-operate with the ICTY. Regarding the troubled Serbian province of Kosovo, a high percentage of those questioned said the best solution would be to divide the province between Serbs and Albanians. Opposition to the notion of NATO
Tripoli hotel, Tadic called for increased cooperation with the North African state. "It is now an absolute necessity to maximise capacities for co-operation with Libya", said President Tadic.•
Elections may be postponed
M
ontenegrin press have speculated that the Serbian Government is proposing the postponement of State Union parliamentary elections. Podgorica media reported recently that EU representative, Stefan Lehne, was told by an advisor of Serbian President Tadic that the required federal elections could be delayed until 2006, contrary to provisions laid down in the Constitutional Charter. Responding to the news, Miodrag Vukovic, representative of Montenegro's DPS, said that the referendum on the continued existence of the State Union could not be postponed and must be held by February 2006 at the very latest.• CorD | February 2005
63
Leisure
WINTER HOLIDAYS The benefits of living in a relatively warm climate are that one need not cope with a dreaded winter freeze. However, snow-bound winters provide excellent opportunities for skiing holidays and Serbia's mountains and winter spas are excellent destinations for winter leisure breaks. Even when the winters are fairly mild, as this year has been, one can still enjoy a holiday in the mountains of Serbia. By Jelica Putnikovic
S
outhern Serbia's idyllic Kopaonik Mountain can be snowbound from as early as October until as late as May and it is not uncommon for snow blizzards to cover the mountain locally referred to as "the roof of Serbia" when spring has already arrived in other parts of the country; the clear, crisp mountain air resounds with the relaxing sounds of winter holidaymakers, while the rest of the country shelters from the spring storms. Despite this year's remarkably mild winter, ski lanes on Kopaonik and other mountains in Serbia have been powdery white and ready for skiing fun. However, the blanket of snow has not been as thick as is the norm and many sun-drenched slopes have been clear of snow. Still, they have provided the chance for visitors to the mountains to enjoy winter hikes without the need
64
CorD | February 2005
for snow boots. Indeed, the mild winter has widened the variety of holiday possibilities on Kopaonik, as well as the country's many spas that offer swimming in natural heated pools or healing mineral waters. Of Serbia's many holiday resorts, the northern Vojvodina lake-side resort of Palic holds a special place in the hearts of local people. Despite the lake not yet freezing this year and, thus, the usual skating holidays not being an option, Palic provides the option of sleighing adventures, winter hiking and exploring the Vojvodina countryside. Nowadays, Palic's original facilities have been renovated and new hotel capacities and leisure facilities have been constructed to ensure the Vojvodina resort is attractive to both longstay holidaymakers, weekend visitors and day trippers. Strolling the grounds of the "Great Park", modelled on English gardens, or visiting the zoo - complete with a "swan house" built to resemble a medieval castle, are just two of the many attractions that Palic boasts. Visitors to Palic can also take advantage of the resort’s location by touring the nearby border town of Subotica, with its attractive architecture, Ludas Lake, the natural botanical garden at Selevenj, or by visiting nearby Zobnatica and Kelebia stud farms. A visit to the Hajdukovo ostrich farm, or Backa farms, is also an adventure in itself. When the Vojvodina wind blows, and the winter chill sets in, one can warm up by sampling local mulled wine by one of the traditional farm furnaces. Elsewhere in Serbia, locals prefer to fight off the cold by drinking so-called "Sumadija tea" (hot, sweetened rakija) and nibbling a meze of Zlatibor smoked ham, kulen (a salami-style sausage), cured meat aspic, local soft cheeses and kajmak (cheese curd).
Meanwhile, back on Kopaonik foreign and local skiers enjoy the mountain's more than 60 kilometres of Alpine and Nordic ski lanes. Kopaonik has a total capacity of 15,000 skiers per hour and, with its system of 21 cable rails, ski lifts and baby ski lifts, the Kopaonik ski centre offers winter fun to all categories of skiers. The mountain also boasts an illuminated night-skiing lane for the more adventurous skier. Should the weather take a turn for the better (or the worse, from a skiers point of view), the Kopaonik ski centre boasts artificial snow facilities. Work on Kopaonik is by no means complete and, in co-operation with Austrian company Doppelmayr Seilbahnen and numerous domestic partners, construction of the first four-seat cable railway in Serbia has marked the commencement of a new modernisation cycle for Kopaonik's Tourist Centre. The "Karaman greben" (Karaman crest) cable railway was officially opened on 12th December 2004 by Austrian Ambassador to SCG, H.E. Hannes Porias, and domestic company Genex, a co-investor in Kopaonik's winter sports facilities, has announced the upcoming construction of four more cable railways, which will bring the mountain's facilities up to European standards. As well as being referred to as "the roof of Serbia", Kopaonik is also known as "the sunny mountain", due to the fact that it enjoys an average of 200 days of sunshine per year. The Kopaonik Tourist Centre is located 1,770m above sea level and is surrounded by peaks and ridges. On clear days intrepid hikers can enjoy vistas up to a range of 300km. From the Pancicev peak one can see as far as the Sara Mountain, Komovi and even the distant Stara planina. More leisurely amblers can ramble through the mountain's woods. The popular Zlatibor Mountain is also lacking in snow cover this year, though the fact that it is a natural "air spa" ensures that its popularity has not waned. The exceptional climate conditions on the central Serbian mountain are beneficial to the respiratory system and, for city dwellers in particular, a visit to Zlatibor is sure to clear the lungs. Zlatibor peaks at 1,500m above sea level and has a mix of highland scenery, including woodland, grassland and riverside areas. No wonder then that Zlatibor is a popular tourist destination year-round and has the longest tradition as a holiday destination of any Serbian mountain: the visit of King Aleksandar Obrenovic in 1893 is considered to be the birth of Zlatibor as a outrist destination, when the area was given the name Kraljeve vode (King's waters). Zlatibor is intersected by the Crni Rzav, Veliki Rzav and Susica rivers, as well as numerous fish-rich streams and brooks. With many nature walks along the riverbanks and through the forests, Zlatibor is popular with ramblers throughout the year. The mountain also boasts a manmade lake, which is popular with anglers and, when frozen, with those who enjoy ice skating. However, in winter, as in summer, Zlatibor is dominated by hikers, who spend their days walking towards Cigota, Rzav canyon, Gradina, Oko, Crni vrh, Ribnica Lake. Zlatibor is an ideal destination for therapeutic holidaymakers. Medical research has proven that the Zlatibor climate is not only beneficial for respiratory problems, but also circulatory disorders and problems of the thyroid gland. Medical professionals offer expert advice and assistance at the mountain's "Cigota" Institute. The Zlatibor village of Sirogojno boasts a unique ethnologic park. Authentic Zlatibor houses and rural buildings, complete with original household items, provide a window to Serbia's past. There is even a traditional inn and several facilities have been allocated to lodge tourists, meaning that one can stay a little bit longer in this museum under the open sky. Guests can sample traditional dishes that Serbian cuisine has almost forgotten and Sirogojno is also famous for its knitters, who have employed their authentic skills of spinning and knitting for tra-
ditional production of unique models of sweaters, shawls, caps and mittens for many generations. Those souvenirs are almost indispensable for cold mountain air, but are also cosy and warming even when you return to the city. The Sargan curve lies at the three-way crossing of Zlatibor with the mountains of Tara and Zlatar. Here one can embark upon a nostalgic journey aboard a steam-train all year round. The narrow gauge route slowly climbs through some twenty tunnels, across numerous viaducts and bridges, over the region
The Kopaonik Tourist Centre is located 1,770m above sea level and is surrounded by peaks and ridges. On clear days intrepid hikers can enjoy vistas up to a range of 300km. From the Pancicev peak, one can see as far as the Sara Mountain, Komovi and even the distant Stara planina. under the symbolic name of Mokra gora (Wet Peak). One of the most beautiful mountains in Serbia, Tara, is covered by thick woods decorated by clearings and meadows with rocky cliffs, ravines and caves. At an altitude of 1,000 to 1,200 metres, given mild Tara climate, one can ski during winter, but, like nearby Zlatar, this mountain is predominantly convenient for recreation and walking. Regardless of whether or not they are snowbound, visitors would surely enjoy a few days spent on some lower mountains in Serbia: Divcibare, Goc, Jastrebac or Rudnik. On Kosmaj they can, even without snow, spend their vacation in an active way at the newly opened tourist complex "Babe" (Grandmothers). There are even winter sporting spots for those remaining in Belgrade. These include the skating grounds at "Pionir" sportshall and also in old DIF in Deligradska Street.•
Heavenly lodgings The Nebeske Stolice (Heavenly Chairs) apartment project represents the highest quality lodgings available on Kopaonik. This newly completed block of 65 apartments, ranging from two to eight rooms per unit, have been adorned with oak interiors and the kitchens and bathrooms include all mod cons, allowing guests to enjoy all the comforts of home. Nebeske Stolice, which will welcome its first guests this season, has been given a four-star rating. The accommodation block is located adjacent to the Masinac slope and holidaymakers residing in the facility can enjoy the sky store rooms located in every apartment. For those who want to avoid cooking for themselves while holidaying on Kopaonik, Nebeske Stolice residents can book a half board stay and enjoy their meals in the extremely pleasant atmosphere of the Krcma u planini (Tavern on the mountain) restaurant, which has a wide variety of Serbian specialities on the menu.
Interview
Water, Water
everywhere! With over 300 mineral and geothermal springs, Serbia is among the world's most water-rich countries. Ancient Romans were well aware of the rich reserves of water under Serbia and, during the Byzantine Empire, those reserves were well tapped. During the time of the Ottoman occupation, the Turks constructed their now famous baths over Serbia's springs and by the late 19th and early 20th centuries spas became increasingly popular in Serbia as both health and tourist resorts.
Dr. Mihajlo Milivojevic, PhD - Professor of the Institute of Hydro-geo-technology
By Katarina Murar
T
hroughout history Serbia's mineral spas have been prized for their therapeutic and tourism value. However, in today's new capitalist Serbia - and with some world analysts estimating that wars will be waged over water this century - these waters have become a resource of strategic commercial value. "Within Serbia's territory there are several deposits of high quality groundwater, cold and tepid water. In addition to "enriched" waters, there are many pure water springs and research shows that Serbia is actually floating over a series of vast lakes. "These springs and reserves can be utilised to produce bottled mineral water, as well as housing health and tourist spas and being used to enhance agricultural production and much more," said Dr. Mihajlo Milivojevic of the Belgrade Mining Faculty's Institute of Hydro-geo-technology. "The basic factor for the utilisation of groundwater is quality; as in their mineral content," said professor Milivojevic,
In Serbia, the privatisation of existing factories and the opening of the new bottling plants for ordinary and mineral water is under way. Local banks, private companies and private individuals returning from abroad are trying to join this business adding that his team at the Institute handles research of groundwater reserves in Serbia and possesses complete geo-technical data, which is necessary for the utilisation of water for various purposes. Utilisation and bottling of drinking water is becoming an increasingly profitable operation worldwide. What is the situation here? In the EU alone, there are more than 500 industrial plants for the processing and bottling of "ordinary", or low mineral content, potable water. Demand for packed or bottled potable water
66
CorD | February 2005
is high and, practically speaking, is an unquenchable everyday necessity both in the EU and the U.S. Arabian countries also represent a huge market for bottled water at present. Clear, clean, ecologically tested drinking water is in extremely high demand, even locally. However, our market is still not in a position to consume great quantities, nor even the amount currently produced by domestic drinks companies. The main reason bottled drinking water has not yet become more popular than tap water is the low standard of living. Our water can, however, be an invaluable export product. Still, the battle for profit derived from bottling and sales of drinking water has started even in Serbia. In Serbia, the privatisation of existing factories and the opening of the new bottling plants for ordinary and mineral water is under way. Local banks, private companies and private individuals returning from abroad are trying to join this business; trying to utilise something that nature has given them: to gather water from the well in their backyard (which has, in most cases, become overgrown with weeds) and construct a filling unit for potable water. Besides that, many multinational companies are making enquiries, independently or within some international funds, into the possibilities of breaking in to the drinking water business in Serbia. Their strategists have evaluated that the price of water will very soon exceed the price of oil. Pessimism prone analysts say it may even exceed the price of gold. This very fact is what prompted French giant Danone to bid for the majority package of shares in Arandjelovac-based "Knjaz Milos". Does local groundwater satisfy global quality criteria? According to chemical content, we can discriminate between several groups of ground-waters in Serbia. Of particular importance is the fact that we know the quality of all groups satisfy global standards of bottled water and, thus, can be placed on the world market. The quality of "ordinary" water is determined according to the amount of sodium (Na). The less sodium the water contains the better its quality, and vice versa. Water containing Na in quantities lower than 20 milligrams per litre is 1st class water, which falls into the "Evian" type category. The quality of all still drinking waters is compared with Evian because the French, who have been bottling and drinking that water for over
a century, managed to establish its quality as the standard. Low mineral level waters, with less than 300 milligrams of minerals per litre, fall into the group of oligo-mineral waters; while waters with mineral contents exceeding 300 milligrams have been classified as mineral waters. Serbia is also rich in geo-thermal mineral waters. What are the possibilities for utilization of those hot springs? Water temperature of geo-thermal springs can reach as high as 150 degrees Celsius, and those wells can be successfully utilised. Geo-thermal waters can be profitably utilised for growing vegetables, fruits and flowers in hot-houses and greenhouses. They are still insufficiently utilised for spa tourism, sport and recreation; for production of aqua-cultures‌Production of fruits and vegetables in greenhouses and hot-houses heated by geothermal waters are purely symbolic in our country. Interest in such production possibilities is growing because imported fruits and vegetables are often expensive and of dubious quality. Any individual who successfully instigates this modern agricultural method will also motivate other people. Production of flowers is much more profitable than food production. What are the possibilities for utilising the country's wealth of water for the development of tourism? Tourism based on utilisation of the wealth of differing geothermal waters represents a great chance for Serbia to generate a profit. This field is completely unexploited in our country and we should draw upon global experiences to develop this area. We don't have to go far. The best and the closest example for us is Hungary: a country that annually reaps revenue of around three billion dollars from its 120 spas. According to our research, Zlatibor is one of the most attractive areas for utilisation of geothermal waters. We could build a "geo-thermal water centre" in line with standards of European tourism on this mountain which, by the way, is also an air-spa because of its climate-related peculiarities. Just some 12 kilometres away from the existing tourist centre at Zlatibor, one can exploit geo-thermal waters with a temperature ranging from 40 to 50 degrees. This water can, after "heat draining", be utilised for bottling because it belongs to the top quality "Evian" group of waters.
Ranking alongside Evian Researchers have counted six groups of mineral waters in Serbia. The first group comprises waters from karsts terrains. Their main characteristic is high water hardness resulting from high contents of calcium (Ca) and magnesium (Mg), hydro-carbonates (HCO3) and oxygen (O2), with a very small content of sodium (Na). Average mineral content (total quantity of dissolved minerals) in this type of water is less than 500 milligrams per litre. According to the research of Japanese scientists, the significance of waters with such chemical content is such that hard waters are one of the prerequisites for longevity. Opposing them are waters of low hardness (so-called "soft waters"), which lead to cardio-vascular diseases. This fact has already been confirmed by American scientists. Serbia covers a vast area of karsts terrains with hard water. However, the greatest problem with them is maintenance of micro-biological quality, so that sites for their exploitation must be very carefully selected. Due to their low sodium content, this group of water belongs to the "Evian" type. "Evian" waters contain nine milligrams of sodium per litre, while Serbia's karsts waters generally contain less than five milligrams of sodium per litre. Waters from volcanic and lava rocks fall into the second group. Those waters have low mineral contents and, therefore, have diuretic characteristics. They are suitable for certain groups of consumers, such as those having problems with
Has Serbia legally regulated the possibility of exploiting groundwater for drinking or some other purposes? In Serbia, via the Mining-Geological Faculty, potential investors can order specific research on the potential of certain water well-fields. In order to bottle certain water, it is necessary to determine reserves and "time projection of water quality regime" before commencing exploitation. This means that one has to precisely define in which future time period that well will provide adequate drinking water quality. All this has been defined legally in our country, including regulations upon which permission for exploitation or concessions is granted. This ensures that there is no danger to consumers.• obesity and those who would like to decrease cellulite. They are also beneficial to people suffering from heart and bloodvessel related diseases. Waters from neogenous sediments belong to the third group. Those waters are light on the body, due to their very low sulphate content. Their hardness is low. The best protection for them is within their natural underground reservoirs. Thus their sustainability is certain. The only shortfall is their content of sodium, which is between 20 and 50 milligrams per litre. Hyper-alkaline waters belong to the fourth group of mineral waters in Serbia, having specific, globally rare chemical content. Hyper-alkaline waters have a pH value of around 12. They are used for efficient elimination of kurtosis: that is of psoriasis and various forms of eczema and other dermatological ailments. They are also successful in healing gastritis, eye infections, etc. Globally, only 25 wells with such waters have been found. Serbia boasts 15 of those rare wells. Of particular convenience is the fact that their pH values are of the highest quality. One of those wells is in the area of Sargan eight. "Sour" waters fall into the fifth group of ground-waters. They belong to the line of mineral waters and their well-fields have, in most cases, already been taken by producers of bottled water. Waters of specific chemical content fall into the sixth group of waters and they are also, depending on their characteristics, interesting to certain types of consumers.
CorD | February 2005
67
Gifts for firstborns
Competition winners announced Winners of the two-month-long competition jointly organised by Continental Bank and Visa International have been announced. The two top prizes of a four-day trip for two to London, inclusive of 4-star accommodation and €500 of pocket money, were won by Marica Djalus and Milica Stankovic, both from Novi Sad. The lucky winners will travel to London in February. Another 50 minor prizes and promotional gifts were won by other holders of Visa Cards, issued by Continental Bank, who had paid for goods or services with their Visa Cards while the competition was running.•
An action with a difference was EFG Eurobank's generous 'Christmas presents' gifted to the first three babies born in Belgrade on Christmas day, between 6th and 7th January 2005. George E. Lychnos, director of the bank, presented the babies with a savings account complete with a long-term deposit of €1,000, which they can access when they turn 18. Parents of the three newborns were also given ERS EFG Eurobank cards with a deposit of €300 each. The gifts were presented by Dr. Lychnos and several EFG Eurobank representatives, who visited the mothers and babies at Belgrade's maternity hospital on the morning of 7th January. The first baby to be born on Christmas day was Milan Milovanovic, who was born at one minute past midnight at Belgrade's City Hospital. Next came Luka Visicki, born at 1:30am at Visegradska Street's GAK. The third baby, also born at the city hospital, was Masa Jakovljevic, born at 1:45am. Speaking to press, Director Lychnos said that the presenting of gifts to Christmas firstborns would become an EFG Eurobank tradition, as would the practice of supporting and carrying out humanitarian actions. He added that the bank has made donations to many humanitarian actions, most recently donating €15,000 for a children's playground in New Belgrade and to boost Belgrade's Clinical Centre.•
Lower Taxes, cheaper flights Thanks to the short, competitive transfer time of only 25 minutes between flights, Austrian Airlines occupies the leading position in European transfer traffic, with more than 60% of its passenger transferring through Vienna airport. In an effort to maintain this position, Austrian Airlines lowered its fuel surcharges and transfer taxes by up to 50% as of 17th January. This resulted in passengers paying less for their flights when flying with Austrian Airlines via Vienna Airport.•
68
CorD | February 2005
Fifteen Years of Atlas Systems Atlas System (formerly Jupex) marked 15 years of successful operations with a party held on 23rd December last year. As well as business partners and friends of the company, the Belgrade Intercontinental event was attended by many eminent operators from the worlds of busi-
ness, culture and sport. Addressing guests, Atlas System president, Dusko Knezevic, stressed that the past years of growth and development are proof that the vision, courage, sporting spirit, hard work and, above all, carefully selected team, have been key ingredients to the company's success. Atlas's activities have become recognisable in many businesses. Everything started in 1989 with the establishing of the Jupex company. Positive results led to expansion and growth into the Atlas System. After the establishment of the Atlas Bank in Serbia and Atlas Mont Bank in Montenegro, the System today includes many successful companies from this area: Kopaonik Osiguranje (insurance), Jadran's Sajam (Adriatic Fair), Montenegro Express and management company the Atlasmont AD from Podgorica; the Valjevo brewery, the Milan Toplica mineral water factory from Tular, the Rad factory of metal products from Belgrade, Kozara Pancevo (tannery) and the Yugoslavian Gallery. The party also included the premiere screening of a cooperative film about the establishment and work of the Atlas System.•
Tariffs lowered From 1st January 2005, Hypo Alpe-AdriaBank has retroactively decreased all tariffs covering domestic financial transactions by 16.67%, which was also the recalculated sales tax rate prior to introduction of VAT. Due to the fact that banks have been exempt from paying tax under the VAT law when doing business with deposits, current accounts, payment orders, financial transactions and remittances, Hypo AlpeAdria Bank has decided to go one step further to satisfy its clients by decreasing the relevant tariffs, which means that lower tariffs will be applied to the first statements this year. Hypo Alpe-Adria-Bank a.d. Beograd has 12 branch offices in Belgrade, Novi Sad, Subotica, Cacak and Sabac; and an additional 17 are scheduled to open this year. The Bank is part of Hypo Alpe-AdriaGroup, with headquarters in Klagenfurt, Austria. It has more than 650,000 clients in eight countries covering the AlpineAdriatic region (Austria, Italy, Germany, Lichtenstein, Slovenia, Croatia, Bosnia & Herzegovina and Serbia & Montenegro).•
Hourly rate agreed for 2005 U.S. Steel Serbia has announced that the mutual negotiation council, comprising trade union representatives and the negotiating employer council, reached agreement on 29th December 2004 regarding the hourly rate that will provide the basis of basic earnings in 2005. The agreement was reached after almost two months of negotiation.
FIC White Book 2005
The agreed average hourly rate is 60.5 dinars, which will be 59.9 dinars for the period January - June 2005, and 61.5 dinars for the period July - December 2005.
The third White Book of the Foreign Investors Council will be launched on 1st March, 2005 at the Hyatt Regency Hotel Crystal Ballroom (from 8:30 until 11:00). This third issue will primarily contain the FIC's recommendations for the improvement of the investment climate in Serbia for 2005, as well as reflections on progress achieved during 2004.•
The new average hourly rate of 60.5 dinars is 28.7% higher (26.6% in the first half of the year and 30.9% in the second) than the current rate of 47 dinars. The annex to the individual collective contract, by means of which the new hourly rate was established, was signed on 30th December 2004 and it will be applied from the income calculation for January 2005. •
CorD | February 2005
69
Oil found in Iran OMV, Central Europe's leading oil and gas group, has made its first oil discovery in Iran's western region of Zagros. OMV (IRAN) onshore Exploration GmbH, a wholly owned subsidiary of OMV, has completed its first exploration well. This encouraging well is the first drilled by OMV in the "Mehr" exploration block, reaching a depth of 4,148 metres. The "Mehr Block", covering an area of 2.500 km, is located in the Khuzestan province. Subsequent testing of the reservoir yielded an average flow rate of 1,040 bbl/day of 22 deg API oil. In 2005 OMV plans to drill two more exploration wells on the same block in order to define the size of the oil field. Helmut Langanger, OMV board member responsible for exploration and production, said: "This discovery provides the
basis for further OMV exploration in this oil-rich region. This is an encouraging find, underlining the excellent work of our people active in Iran and our use of leading edge exploration technology." Two more exploration wells planned OMV, which has a 34% stake in the Mehr Block, acts as the operator of an international Joint Venture including Repsol YPF and Sipetrol (both 33%), and is looking forward to evaluating the commerciality of the field. International E&P activities OMV owns a balanced international E&P portfolio in 18 countries organised around five core regions: the Danube and Adriatic, Northern Africa, the British North Sea, the Middle East and Australia/New Zealand. Due to the acquisition of 51% of Romania's largest oil company, Petrom, OMV's daily production volume is approximately 340,000 boe/d, and the company's reserves are approximately 1.4 bn boe.•
Best sales in Europe Toyota has reached its eighth-time European record in 2004 car sales. With 915,966 delivered vehicles - 24,913 Lexus and 891,053 Toyota - the third largest car producer in the world has achieved a sales growth of 10% compared to last year. This growth is estimated at two per cent on the world market. As a result, Toyota's market share in Europe has hit five per cent, which is the highest ever. Toyota produced 582,695 vehicles, 494,635 engines and 195,163 gear boxes in its factories in Great Britain, France, Turkey and Poland. The 2005 goal is for 980,000 Toyota and Lexus vehicles to be sold in Europe.•
Newly Accredited H. E. Dr. Andreas Zobel, Ambassador Extraordinary and Plenipotentiary Federal Republic of Germany (11th January 2005)
Born 1953, Dr. Zobel worked as a journalist and graduated History and Political Science before joining the diplomatic service. Prior to assuming his new position, he was seconded, amongst others, to the UN in Geneva for the International Conference on the Former Yugoslavia in 1992 and served as Secretary-General of the European Agency for Reconstruction from 2000 until 2002. Since July 2002, Dr. Zobel headed the EU Co-ordination unit at the Foreign Office in Berlin.•
H.E. Seyed Morteza Mir Heydari Ambassador Extraordinary and Plenipotentiary Islamic Republic of Iran (11th January 2005)
Born 1949 in Varamin, Mr. Heydari was president of the Varamin region from 1979-1982; Assistant Governor of Teheran for political issues from 1982-1985; Assistant in the Ninght Directorate of the Iranian Ministry of Foreign Affairs from 1985-1987; Chargé d'Affaires of the Embassy of the Islamic Republic of Iran in Nigeria from 1987-1990; Assistant in the Political Main Office of the Iranian Ministry of Foreign Affairs for South and East Asia from 1990-1994; Ambassador of the Islamic Republic of Iran in North Korea from 1994-1997; Director of Administration for Properties of the Iranian Ministry of Foreign Affairs from 19972004. He is a married father of four.•
70
CorD | February 2005
History Last month a senior delegation of the Pentagon and the U.S. Ministry of Defence paid a visit to Belgrade at the request of U.S. President George Walker Bush. The delegation, which was led by Admiral Loren, met privately with the political leaders of both the Republic of Serbia and the SCG State Union.
Defensive
Lines By Dragan Bisenic
T
hough details of the talks were not made public, one can assume that their scope was very wide and discussions were extremely detailed, considering that the delegation spent a full four days in the Serbian capital. Almost 55 years ago, another American military delegation visited Belgrade under the leadership of then U.S. Army Chief-of-Staff, General Collins. The visit was something of a peculiarity at that time, considering that Yugoslavia was a confirmed communist country and the Cold War was at its peak. However, that was only one of a series of meetings at which the potential for Yugoslavia to join the Western Alliance was considered. This month CorD Magazine is pleased to be able to publish details of those talks, which were recently made available to the public. The American delegation held two meetings during its visited, one with Josip Broz "Tito" and one with then Chief-of-Staff of the Yugoslav Army, General Popovic. Though the Popovic meeting was held first, we have
Visit to Belgrade During its visit to Belgrade, the American General Staff and Pentagon Delegation visited the Centre for American Studies at the Faculty of Political Science. On that occasion they held talks with students and faculty professors, with reminiscences on the talks which were held in Belgrade over half of a century ago. The guests were introduced to the existence and work of the Centre for American Studies at this faculty. Foto: S. Kovac
72
CorD | February 2005
chosen to publish the Tito meeting at this juncture because it provides a greater insight into the subjects discussed by the delegates. At this meeting, Yugoslavia was represented by Tito, General Popovic, General Dapcevic, Admiral Manola and Lea Mates. America was represented by Ambassador Allen, General Collins and General Partridge. Following formal introductions and welcoming speeches, talks began with the resumption of topics previously discussed at the office of General Popovic. Marshal Tito turned immediately to the problem of potential attacks against Yugoslavia by Russian "satellite" states Hungary, Romania and Bulgaria. According to Tito, this could be considered as a local problem, but the full military participation of the nations involved would ensure that it would become a general problem of war. Tito emphasised that considering the issue as a local problem would confirm Yugoslavia's strength and, thus, ensure that the Warsaw Pact trio considered a potential attack as being too risky to attempt. Furthermore, Tito noted, if Yugoslavia was strengthened it would be able to repel any such attack and crush the local war before it escalated. Considering the risks that the potential conflict could quickly draw other nations into the fray, Tito noted that the strengthening of Yugoslavia had obvious advantages. In response, General Collins said that highest priority should be given to the clear advantage of defending the Ljubljana region, thus safeguarding the Alliance's best line of communication to Yugoslavia. Collins added that the transfer of adequate military aid should be coupled with realisation of the increased demand for food, which would result from the predicted losses of some food-producing regions of Yugoslavia. Marshal Tito then noted that an erroneous estimation had arisen regarding the intentions of Yugoslavia to defend its territory. He explained that many took it for granted that the Yugoslavs would withdraw to the wild mountainous region of the Dinar Alps to pursue a guerrilla war. This, he insisted, was not at all the intention of Yugoslavia. On the contrary, Yugoslav forces intended to hold their front lines much further from those mountains in order to protect the lowland regions of the country as much as possible. General Collins said that he had no doubts of the country's intentions and that he had seen and agreed, in general, with the proposed lines of defence. However, he noted, demand for food could arise and the best communicational line for aid to Yugoslavia was via northern Italy. The second such line could be established along the valley basin of River Vardar, from Thessalonica to Skopje. Agreeing with the American Chief-of-Staff, Tito said that Yugoslavia intended to hold and defend both of these key supply routes. However, he noted, there were two or three points of disagreement regarding military aid to Yugoslavia, though they were not fundamental and he did not envisage them being too difficult to resolve. General Collins raised the point of personnel placement, explaining that the U.S. administration would like to initially send around thirty officials to Yugoslavia, who would be tasked with providing U.S. Congress with appropriate reports and ensuring everything would remain within the boundaries of American law governing military aid. He then provided a more detailed description of his duties and responsibilities to relevant Congress committees. However, he unambiguously insisted that the United States had no desire to tell the Yugoslavs how they should manage their army, nor did they have any intention of interfering with Yugoslavia's military plans and activities. All he requested was provision of a practical basis upon which he could be accurately informed about the military situation in Yugoslavia and its development, thus enabling him to fulfil his Congressional obligations. Marshal Tito insisted that this problem could be easily resolved. At this point Ambassador Allen said that he would wager that this conference would seem absurd in a year's time and that Marshal Tito would again state that General Collins would be able to send more officers to Yugoslavia if he so desired. Turning to the remaining point of contention, General Collins spoke of the appointment of a group of U.S. officers to Yugoslavia. He explained
that he was planning to send Brigadier General Harmony, a senior American officer. He listed General Harmony's qualifications and asked if the fact that Harmony was to come directly from his current posting in Italy would be a serious obstacle [relations between Italy and Yugoslavia were poor at that time]. Marshal Tito insisted that this was unimportant and would not be a problem. General Collins said that he intended to appoint General Harmony as a military attaché, on condition that the existing attachés would continue to perform their duties as normal. General Harmony's job would be to administrate the Mutual Defence Assistance Programme (MDAP) for Yugoslavia, for which he required direct access to the Chief-of-Staff and other different military sections and, therefore, could not be limited to the channels usually open for attachés. Marshal Tito replied: "we can name that whatever. Let's call it the Mission for American Aid". General Popovic joined the discussion, saying "General Collins' solution suits us better". Ambassador Allen said that exactly on that day there had been a new proposal to name General Harmony the Attaché of Military Forces, while other attachés would keep their existing titles, i.e. of the army, navy, air force. This suggestion received general support, but General Popovic pointed out the possible difficulties for the Yugoslavian General Staff, which could come from demands made by military attachés of other countries requesting the same treatment as was agreed for the American Military Forces Attaché. General Popovic said that this was a technicality, which could be resolved easily by responding to these nations, saying that when they provide aid for Yugoslavia in the same quantity as American, then they can expect the same treatment. Next on the agenda was the problem of co-ordinating Yugoslavia's strategic capacities with the plans and capacities of NATO forces. Tito pointed out that negotiations regarding such co-ordination would be held at the appropriate time. General Collins stated that neither General Eisenhower, nor the U.S. administration, had authorised him to discuss that subject and that what he said was only his personal opinion and that he thought that such a discussion would be desirable in the future. The discussion continued with discussion of the general position that there were, seemingly, no fundamental political disputes and there should not be any problems regarding agreement of the details if they simply continued with the implementation of the existing methods and procedures of negotiation.• Discussions ended and the record was signed by General Partridge
The arts
Islands of Free Thought The story of independent publishing in this region dates back to the former Socialist Federal Republic of Yugoslavi, and attempts to create spaces of free thought. Some books managed to make it to the stands, while others found themselves outlawed. However, the cultural scene began to change in the 1980s, following Tito's death, and in the 1990s a number of privatelyowned publishing houses sprang up with what were then regarded as bold editorial policies.
By Jelena Jovanovic, Photo Stanislav Milojkovic
T
he trailblazer of independent publishing in Serbia was Slobodan Masic, who entered the business in the 1960s at a time when the tradition of independent publishing already had its roots in the practices of post WWII poets who published their works independently of the state. Masic began his literary career as a contributor to the Student and Vidici (Vistas) newspapers, before turning to the publishing industry in 1963, following a fall out with the respective editors of Student and Vidici. "That is when my adventure with independent publishing began. I realised that I should publish books and surround myself with people who thought freely. I wanted to give them the possi-
74
CorD | February 2005
bility to publish the products of their free thinking in the realms of art and society. This is how Independent Editions came to be," explained Masic in a retrospective of his first steps as a publisher. He continued, speaking of the authors and titles he has supported, "They were not linked only to my name because many writers had gathered around this idea. After 40 years and 500 titles, from time to time it springs to my mind that around 500,000 copies have been printed under this label. I know that I helped to create a small island of human liberty and freedom of thought during those 40 years, when most of the cultural society gave full support to Independent Editions. There were conflicts with the state from time to time. A score of titles were prohibited, but we never capitulated to this kind of behaviour and took these cases to court. The state won most of those trials, but several went our way as well. "The first book we published was by Marija Cudina. A number of writers emerged and some of them grew into renowned authors, such as Bora Cosic and Dragos Kalajic. That is when we started a
There were conflicts with the state from time to time. A score of titles were prohibited, but we never capitulated to this kind of behaviour and took these cases to court. The state won most of those trials, but several went our way as well.
series of publications, among which were the works of writers such as Dragoslav Mihajlovic, Mirko Kovac and Miodrag Stanisavljevic. Some of the books that appeared during this time had a significant social impact. One of our publishing channels in Germany even published a book by great Russian author Aleksandr Solzhenitsyn. A book titled Crveni kralj (Red King) by Ivan Ivanovic was, on the other hand, a revelation. The publication was prohibited in court, but we received strong social support. The reason the authorities prohibited the book was because the author's father was a Chetnik (royalist supporter) and the title 'Red King' was linked to Tito; although the book was about football and there were no explicit ties to politics, the popular game was just a metaphor. We managed to republish a book by Dragoslav Mihajlovic titled "Kada su cvetale tikve" (When Pumpkins Flourished), after it was prohibited the first time around. There was also an exquisite book by Predrag Cudic about human weaknesses that was also forbidden, as well as a conflict around a dissertation by Nebojsa Popov. We published his doctorate dissertation under the title "Social Conflicts". The book talks of conflicts in Yugoslavia between 1945 and 1970, involving youth, students and the first workers' organisations. The book was prohibited, but we reprinted a couple of years later and waited to see whether the court would repeat the ban. It never happened, owing to the fact that the second edition was released after Tito's death. These are the bounds within which our publishing house worked. Today, we continue to support forms of social activity and literary expression that open up doors to freedom", said Masic, adding that the cultural scene started to change in the 1980s. A major debate was sparked with aesthetics and social issues as the central points. Magazine Praxis started circulating, while a group of philosophers and sociologists formed a circle at the Faculty of Philosophy in Belgrade and heated up the debates over social issues. Masic said that the time of democratisation in our society is devoid of taboo topics and non-literary limitations. "Today the
term 'independent publishing' is somewhat of a paradox. For decades, independent publications were such from the most significant perspective - financing. These publications were never supported financially, but rather depended on the financial capacities of the authors and myself. However, today there are institutions that want to see a democratised society and a higher level of cultural freedom. From time to time they support some of our publications and our authors, who lack funds to see their works in print and often receive financial support from these institutions. For a long time I thought about whether we should reject this kind of support. However, I concluded that we should accept it because it really entails the genuine contribution of these institutions in creating a free society. We have published a number of titles related to the development and culture of the Romany ethnic group in our country with the financial assistance of the Open Society Fund. The Ministry of Culture helped Dubravka Stajic's book "Tedious Transition". I think it does make sense. "Our publications do not have high circulations; they are not bestselling hits. These are serious and exciting books that speak of our time. They say that we are facing a cumbersome journey of transition and at the end of this road there isn't a time of joy and placidness waiting for us, but rather the only possible kind of life that we can live… Human thought explores the reasons and purpose of existence and freedom is a crucial spot in this process…" Masic explained. Writer Vladislav Bajac founded Publishing House Geopoetika in 1993. Bajac says that independent publishing continues to exist. "With the growth of democracy we had certain illusions, as did everyone else before us, but every right in that respect, since the tradition of independent publishing had a remarkable continuity on this soil. I warned society, when asked for my opinion, and voiced concern, drawing from the experience of western and other transitional societies that money and power would confront independent publishing in various perfidious ways. If we compared ourselves to former Eastern Bloc countries, we would notice that our publishing industry was more developed with experience from the western market economies ensuring that we did not have to go through the phases that the Soviets and Bulgarians experienced: they seriously degraded their publishing by importing a vast amount of trash literature from the west into their countries and cultures. "Here we have a different situation, since a certain distinction between publishers has taken place. Money has spoiled relationships - between the media and the publishers, the public and the publishers, the critics and the publication and between the entire society and the essence of what is being done in the publishing industry. Although there is a variety of publishers and a relatively abundant market, I am concerned when it comes to small pub-
Vladimir Bajac
Slobodan Masic
lishers, the truly independent publishers without external financial support, who are not big and rich, but are well-profiled in a narrow field of study. Their existence and survival is essential to the nation and our culture, as well as for the prevalence of democracy in publishing. Their number is likely to diminish after Value Added Tax (VAT) is introduced in January 2005. This is an additional blow to a publishing industry already on the ropes, because the sudden shock in tax policy will not be sustained by those who are small and do not have a significant accumulation of capital. I believe that many of the small publishers will disappear and those who are a little stronger will be seriously shaken," Vladislav Bajac said. Zoran Hamovic, director of Publishing Company Clio, also stressed the several-decade-long continuity of independent publishing and said the primary meaning of the attribute "independent" was the capacity of the publisher to maintain financial independence. "The big problem today is the quality of published titles and the meaning of the term independence. Independence
…the sudden shock in [VAT] tax policy will not be sustained by those who are small and do not have a significant accumulation of capital. I believe that many of the small publishers will disappear and those who are a little stronger will be seriously shaken.
here and now is not valued much for the simple reason that books with the power to develop the intellectual mind and provide writers with opportunities to change the world they live in. Books that alter the breadth of a wallet are to the fore today. Ideology has been replaced with a mercantile form of communication where value is expressed through a kind of market fundamentalism. Everything is on the market and everything is for sale. All this has resulted in books becoming nothing more than ordinary merchandise. In that context, the issue of independence in publishing revolves around one question only - who does our production depend on financially? What I would like is for us to be dependent on our profession - on professional standards, procedures and a relationship towards our profession and guild as a central concern."•
Zoran Hamovic CorD | February 2005
75
Culture
By Marija Krickovic
Belgrade's National Museum has steadily grown into one of the country's most crucial cultural institutions for the preservation of Serbia's artistic treasures since it was founded 160 years ago. The museum boasts more than 400,000 archaeological artefacts, works of art and other items of historical value that document the key artistic movements and styles that have come and gone throughout the history of Serbia and Europe.
Hidden Masterpieces N
ational identity is invariably created through language, tradition, history and culture. Serbia is no different. As one of the most important cultural institutions, the responsibility of the National Museum in Belgrade is to gather, preserve and present the nation's cultural treasures. The Serbian Museum (Muzeum Srpski), founded on 10th May 1844, was the predecessor of the National Museum. It was founded on the date that marked the establishing of an institutionalised policy to preserve items of cultural value to Serbia. In many ways the Serbian Museum, and later the National Museum, has shared the fate of the nation throughout the course of the past 160 years: frequently finding itself displaced and neglected, damaged by war and manipulated by political regimes. However, despite these numerous setbacks it has managed to forge an identity and a reputation as a crucial purveyor of Serbian culture through persistent efforts to
76
CorD | February 2005
bolster its collection, acquire an independent status, educate staff and present collections to the public in the best possible manner. By managing to gather artefacts and works of art that are genuine treasures of Serbia's history and culture, the National Museum has grown into a precious archive of information pertaining to the significance of Serbia's national heritage. Over the years, the museum has grown and matured with each new collection. Many museums across the nation have been formed and established their identities thanks to the National Museum's policy of gathering and distributing its own collections. Today, the National Museum's vast collection provides a window on the development of contemporary Serbian society, as well as the development of the surrounding region, from ancient history, through the Middle Ages, up to the present day. Last year marked the 160th anniversary of the National Museum in Belgrade and the birthday was celebrated with a number of themed exhibitions, activities and events. Tatjana Cvjeticanin, curator of the museum, said: "we rarely get the opportunity to talk about ourselves, show the diversity and significance of our activities that generally go unnoticed behind the scenes, or demonstrate the principles and methods we employ in our work. "One of our priorities is to present the museum's treasures through various printed editions, monographs, catalogues, magazines..." The vigour with which exhibitions and museum publications are organised is matched by the intensity of the institution's research, documentation and the vital work of the Centre for Preventative Care. Modern museums are characterised by their specific relationship with the public. Museums have to be easily accessible to everyone wishing to access them for their personal education, enlightenment and entertainment. The artefacts in the National Museum's collections are not only presented through permanent displays, but also through thematic exhibitions and a variety of
cultural activities that include international events, such as the Festival of Archaeological Film, and a number of educational programmes for children. Among a great many exhibitions at the National Museum in 2004, the ones that attracted most public attention will be best remembered. In January, after the recovery of fifteen priceless paintings by Paja Jovanovic, which had been stolen in 2001, there was a record-breaking audience that announced a fruitful year for the National Museum. This was also an exclusive opportunity to display a masterpiece of Serbian medieval sculpture: the 14th century Madonna from Sokolica, which had been commissioned as a
The National Museum, as an institution of great national value, requires complete reconstruction of its current facilities. The basic problem that has plagued the National Museum in Belgrade since it inception is the issue of space or, to be more precise, the distinct lack of it. memorial to King Stefan Uros II Milutin in Kosovo. More than 4,000 people saw the exhibition during the 10 days that it was open to the public. An exhibition of fresco reproduction, representing the peak of Serbian painting in the 14th century, was organised after the tragic March 2004 destruction of Kosovo's Bogorodica Ljeviska monastery in Prizren. The National Museum in Belgrade and the National Museum in Pozarevac organised an exhibition of portraits of the historical figures who took part in the First Serbian Uprising, thus contributing to the celebration of a jubilee of Serbian statehood. People and events that turned a new leaf in Serbian history have remained an eternal monument to heroism, faith and the highest national ideals. This year has also been fruitful in terms of co-operation with international cultural centres in Belgrade. A book show, entitled "New Patrons", was organised together with the Italian Cultural Centre. The National Museum co-operated with Germany's Goethe Institute to organise an international scientific gathering under the title "A Tourist Guide to South Eastern Europe", which aimed to explore how the Balkans are depicted in international tourist guides. The French Cultural Centre helped to organise on-site courses in archaeological conservation. The Mayor of The Hague opened an exhibition of drawings at the National Museum in Belgrade. The drawings were the works of renowned contemporary Dutch artist, Karel Apel, who received the UNESO Award at the 27th International Biennale in Venice.
RECONSTRUCTION REQUIRED The National Museum, as an institution of great national value, requires complete reconstruction of its current facilities. The basic problem that has plagued the National Museum in Belgrade since it inception is the issue of space or, to be more precise, the distinct lack of it. The Museum has changed locations several times throughout its history, but the exhibits were always placed in rooms that could not satisfy all of their complex demands. The lack of an adequate building for the Museum deprived it of the opportunity to fully develop its activities and an active relationship with the public. The true life of this institution has taken part in cabinets for conservation and examination, from which the knowledge of experts is transferred to exhibition halls, publications, books, lectures, reproductions, etc. Adequate space is absolutely essential for the Museum if it is to entirely fulfil its cultural mission. This is why a complete reconstruction of existing facilities and the allocating of additional space are priorities. All this is needed to make sure that the diverse and rich artistic collection owned by the Museum is preserved, protected and presented to the public in continuity. Reconstruction is expected to begin at the end of 2005. "There is a huge task ahead of us. The National Museum has to be allowed to run in full capacity and widen activities to fully satisfy the role that a museum, as an institution, has in modern society", Museum curator Tatjana Cvjeticanin said. The new visual identity of the Belgrade National Museum is modelled against the Gospel of Miroslav, the oldest Serbian illustrated manuscript in Cyrillic. This book has had a long and turbulent history, which is also a symbolic parallel of the entire Serbian history. The original illustrations from the pages of the Gospel have been integrated into a contemporary design of the Museum's new visual identity. Miroslav's Gospel is more than a priceless medieval book. It was written at the end of the 12th century, at the behest of Duke Miroslav, brother of then Serbian ruler Stefan Nemanja. Similar to numerous Serbian sanctities, the book has had a long and dramatic history that works as a kind of a metaphor linking medieval spirituality with the enlightenment and culture of the modern era. The design harmonically couples the idea of continuity with modern sensibility, implying that we are not looking at the making of a new institution, but rather the revived youth of a cultural and historical constant. The new visual identity is based on an exceptional part of our cultural heritage. Presenting the new visual identity is the first step and reconstructing the building represents a crucial step towards maintaining our goal: to provide the National Museum with adequate space in which the public will be presented with a treasure that reveals the true cultural identity of Serbia.
Biblical works of Miroslav CorD | February 2005
77
Culture
Museum curator Tatjana Cvjeticanin The National Museum also continued its tradition of organising the International Festival of Archaeological Film. Last year was the fifth such event and guests came from Germany, France, Belgium, Switzerland, the USA and Turkey. Pearls from the Collection of Foreign Art is one of the most significant collections of its kind in this part of Europe.
The National Museum in Belgrade and the National Museum in Pozarevac organised an exhibition of portraits of the historical figures who took part in the First Serbian Uprising, thus contributing to the celebration of a jubilee of Serbian statehood. The National Museum often hosts travelling exhibitions, thanks to intense co-operation with international museums. "Every month at least two items from our collection are exhibited in one or more foreign museums", Cvjeticanin said. More than 100 works by Serbian and French artists from the Collection of Foreign Art and the Graphics Cabinet of the National Museum in Belgrade were displayed at an exhibition entitled "ParisBelgrade, from Montmartre to Montparnasse" at The Hague
Performers at the National Museum
78
CorD | February 2005
Museum. The exhibition shows the links between Paris - as the source of revolutionary and modernist trends at the end of the 19th and the beginning of the 20th centuries - and Belgrade, where Parisian influence was crucial to the conception and evolution of fine arts. The Museum also played a notable role in setting up the exhibition entitled "Byzantium, Faith and Power" at the Metropolitan Museum in New York. After long and studious preparations, the Museum published a catalogue of some valuable works by Italian painters from the 14th to 18th centuries, thus continuing the Museum's long-term co-operation with Italian experts through an exhibition entitled "From Carpaccio to Canaletto: Italian art treasures from the Belgrade Museum". However, the exhibition that attracted most public attention and created block-busting queues of visitors in front of the Museum's doors took place in the atrium of the National Museum and was entitled - Impressive. The works of the greatest painters from the end of the 19th and the beginning of the 20th centuries were seen by more than 42,000 visitors between 29th March and 7th April last year. Impressive indeed! According to Cvjeticanin, "The extreme dedication and professionalism invested by the Museum's experts in organising the exhibition was rewarded by unprecedented public attention". For a little more than a week, the Museum truly came to life… Visitors were able to see the works of Monet, Degas, Corot, Renoir, Toulouse-Lautrec, Van Gogh, Gauguin, Matisse, Picasso… These and many other works of art are part of the Collection of Foreign Art that has been hidden away in the Museum's storage since 1996, due to insufficient resources to exhibit them. The Collection of Foreign Art is an extremely valuable set of paintings and sculptures produced by European schools of painting between the 14th and 20th centuries. It is one the most comprehensive and significant collections of its kind in this part of Europe and provides proof of the Museum's importance. Particularly standing out were the collection of Italian art from the 14th to 18th centuries, examples of Dutch and Flemish art and masterpieces of French art from the 19th and 20th centuries, created by the most renowned masters of that period. The most attractive and most valued items from the collection could reach millions of euros if they appeared on sale at major auction houses. Unfortunately, these works have been inaccessible to the public for quite some time. Cvjeticanin explained: "We were forced to remove the permanent exhibition in order to preserve these priceless collections. More adequate conditions in the Museum's storage facilities reduce the possibility of them being damaged".•
CITY VIEW - Krunska
Traversing Belgrade By Hanna Gadomski, Photo Andy Dall entral Belgrade's exclusive Krunska Street begins at the junction of Knez Milos Street and Andricev Venac. This one-way traffic system connects the busy area between the State Union Parliament and the office of the Serbian President. Some years ago Krunska boasted a royal residential palace surrounded by old-fashioned houses, the military staff building and a girls' school. Nowadays this end of the street is occupied by a mix of postwar "functional" buildings and stylish early 20th century edifices, both of which house a number of embassies and ambassadorial residences, a music school and the Catholic Church of Christ the King. Krunska also includes a number of apartment buildings with basement hair salons, tailors, boutiques, art galleries and bookshops. Many of these buildings surround hidden courtyards that can be accessed via darkened alleys. Some of these courtyards have been well maintained and even contain trees and flourishing climbing ivy: a lonely corner of nature in the asphalt jungle. At the stretch of Krunska that runs between Beogradska Street and the Kalenic grocery market, the street widens and becomes a two-way stream divided by a tree-lined central embankment. It is here that Krunska has kept some of its former shine. Once upon a time the street housed villas and townhouses only; their wellkept gardens and quiet yards hidden by dense, but well-trimmed
Completing the picture is the seemingly obligatory mysterious old house, neglected and covered in climbing weeds, with unusual ornaments on the peeling façade. From the garden covered with dry leaves, the dense treetop rises: its wild gnarled branches swallowing the iron fence and threatening the heads of incautious passers-by. At the end of Krunska Street, the sky is hidden by the high treetops. Under the big trees there is a small grassed area, lots of dogs and several benches. Some passers-by stop there for a rest, and some homeless person or market seller will come to have a little sleep or to eat his modest meal. Before New Year the paved space between those benches is packed with young fir trees, spruce and pine trees, the majority of which will decorate flats and make lots of children happy. The strong smell of barbecue roasts emanating from the nearby kiosks reaches this square. The nearby Kalenic grocery market is known as the most well stocked market in the town, with an excellent selection of fruits, vegetables, meat (even horse meat), fresh and salt water fish, seafood, all kinds of homemade cheeses and dairy products. And, for those interested in healthy food there is a shop specialising in macrobiotic and vegetarian specialities, beekeepers with honey, gatherers of herbs, as well as some stalls with organically grown fruit and vegetables. Apart from stalls with mixed goods and plastic products, there are also those with wooden kitchen utensils and basket-weaving shops.
vegetation. This street was home to Belgrade's wealthiest: bankers, senior state officials, foreign envoys and industrialists. Krunska was one of the most beautiful and noble parts of Belgrade, hidden between the royal palace and new residential areas that began to spring up in Vracar. One of the most well maintained building now houses the Nikola Tesla Museum, which is well worth a visit. The museum boasts a genuine treasure of examples of the inventions and innovations of the genius scientist, which are of interest to both young and old. The two-way stretch of Krunska also houses embassies, and the most elegant villas are occupied by central branches of successful companies and political buildings, including the Democratic Party headquarters. The smartness of this section is enhanced greatly by the well-tended lawns and abundance of ornamental trees, shrubs and flowers.
Of particular interest is the genuine little flee market, where, apart from useless junk, it is possible to find the rare pearls for lovers of small antiques: old fashioned coffee mills, old cutlery pieces, watches and ornaments picked up who knows how and where. The real oriental spirit of haggling lives on here and, with bit of patience, you can be lucky enough to purchase the desired object for a very symbolic price. After a walk and visiting the market, in the square where Krunska Street ends, the Kalenic restaurant always waits patiently for its guests. This eatery is one of the last remaining genuine Belgrade "kafanas". To this day some of the most famous names from Belgrade's cultural life come here to eat and mingle: writers, journalists, artists, but also doctors, professors and businessmen. Regular customers know each other, the tables are put together and patrons sit there until late at night.•
C
CorD | February 2005
79
Football
Uncertain future By Zoran Milosavljevic
O
nce upon a time, the SCG capital's big boys - Red Star and Partizan - counted themselves alongside the likes of Manchester United, Liverpool, Juventus, AC Milan, Real Madrid and Barcelona, as fully paid members of the European aristocracy of football. However, nowadays both teams struggle to draw crowds of over 5,000 (unless they play each other) and the collapse of the Yugoslavian league ensured that regular, quality competition became a thing of the past. To draw comparisons between the great European clubs and the Belgrade teams now would be nothing short of laughable. The recent derby between Red Star and Partizan drew a measly 15,000 spectators who, after enduring the lukewarm 0-0 draw, must have thought they could find something better to do on a sunny October afternoon: perhaps stay at home and watch the English Premiership on the television. This is hardly surprising when one considers that a player performing in the blockbusters of Old Trafford or the San Siro earns more than the combined squads of Red Star and Partizan. Belgrade's bitter rivals have once again turned the nation's football championship into an unsurprising two-horse race, with a third
Occasional glimpses of quality from Belgrade's big two clubs coupled with the SCG national team's very promising start to World Cup 2006 qualification, suggest that the future may be bright for soccer in Serbia. However, after years of mismanagement and a comprehensive collapse into obscurity, a full recovery for the country's number one sport is far from assured. fees for SCG internationals, who tend to go East rather than West, are closer to the price of David Beckham's socks than his outrageous price tag. However, make no mistake: Red Star and Partizan are vastly wealthy compared to the rest of the nation's clubs, which survive day to day with players barely able to pay their rent, let alone hobnob with the European elite. One such example is former national champions Vojvodina Novi Sad, which this season has had to hand out food vouchers instead of salary cheques. The chances of Serbia's top clubs ever renewing their memberships of the European Elite Club are slim to none. Competing with the multi-million euro empires of the old and newly emerging super clubs - personified by Roman Abranovich's Chelsea - is a tall order for most clubs in Europe, never mind those hailing from a country torn apart by political conflict and war, international isolation and gross economic mismanagement. The best SCG's clubs can hope for is to get off the bottom of the pile. Indeed, Red Star's aggregate 5-2 victory over Berne's Young Boys in the second round of the European Champion's League in August was a step in the right direction. Alas, a 7-3 drubbing at the hands of PSV Eindhoven shattered Dzajic's dreams and those of the nation hoping beyond hope that Red Star could march on. Speaking to press after the defeat, an upbeat Dzajic said: "We can't achieve anything overnight. It takes a lot of time and hard work to build a solid side capable of making an impact in Europe". However, his words of logic proved of little comfort to the army of angry fans whose disappointment made life uncomfortable for the long-serving Dzajic, as yet another Red Star dream of European success fell to pieces. Following the Dutch massacre, Red Star's boys found themselves relegated to the UEFA Cup, where a 6-1 first round trouncing from Zenit St. Petersburg led the North End faithful to call for the head of Dzajic. After a few tense days, Dzajic finally threw in the towel and walked away from the club to which he has devoted his
If it's true that football is often a good reflection of how well a country is doing in other areas, it is no coincidence that Serbia & Montenegro's political quest to take its place in Europe is virtually a carbon copy of the country's slow and painful football recovery, generating mixed opinions of when and if we will see the light at the end of the tunnel. dark horse making the only unpredictable moves in the league: last year it was OFK Belgrade, this year it is Zeta Golubovci. However, the fact that Red Star and Partizan (by far the nation's richest clubs) are paupers when compared to even average Western European teams only serves to underline the gaping abyss between SCG's soccer reality and the glamour that has enriched the dreams of locals since Red Star last lifted the European Cup in 1991. The days when the country proudly shipped coach loads of talent to foreign clubs are long gone. Today, SCG's best players are lucky if they catch the eyes of scouts from solid clubs owned by post-communist entrepreneurs in mediocre Eastern European leagues. Transfer
80
CorD | February 2005
life. However, the departure of the man who led Red Star to 1991 European glory from his position as club director is by no means a final farewell: the Executive Board offered him their full support and released a statement insisting that he would be welcomed back with open arms should he choose to return. Dzajic is just one of many devoted individuals who know that hard work and a lack of funds do not go hand-in-hand, particularly in such a money-spinning industry as professional football. Yet, that is the harsh reality of Serbian & Montenegrin football and is just one more piece of evidence supporting the notion that this country needs, more than anything, sheer enthusiasm to move forward. Partizan's relatively good start to the season has undoubtedly deepened the anger and frustration of the Red Star faithful, while giving the Black & White fans plenty to cheer about. Perhaps more importantly to the country, Partizan's progress in all three competitions has offered a fresh glimmer of hope that it is possible for SCG to regain some respectability as a soccer nation. Though Partizan have indulged in that all too common practice of selling top players to stay financially afloat, they have somehow managed to find adequate replacements to keep themselves alive and kicking on the European scene. Simon Vukcevic, versatile under-21 international midfielder, leads the pack of up-and-coming stars battling to stake their claim in the starting 11 and forcing regulars such as Sasa Ilic and Dragan Ciric to justify their positions performance after performance. Highly-rated Nigerian left back Ifeani Emeghara has added steel to the back four, while strikers Nikola Grubjesic, Srdjan Radonjic and Cameroon's Pierre Boya have all been hitting the target regularly. The combined efforts of the team have resulted in an ingredient so often sorely missed in Serbian football: consistency. Partizan's blend of youth, experience and foreign blood is a model that certainly can't hurt. However, a sole team succeeding will never be enough to lift the quality of the league out of the doldrums. Moving up the ladder on a wider scale requires a concerted effort and, quite possibly, personal sacrifice: this is easy to bear when you're not the one having to endure it. The all too obvious first step of trimming SCG's oversized first division from 16 to 12 clubs needs a general consensus and it would make the championship more competitive as surely as it would spark a two-way chain reaction: one benefiting clubs able to keep up with market economy demands and the other dooming their less fortunate rivals to complete obscurity and even extinction. The national team's transition from a hard nut to crack for even the most feared opposition to the laughing stock of Europe and its own fans, which it undoubtedly became after the shameful 2-1 defeat to Azerbaijan, was as rapid as it was agonizing. Ageing veterans were being replaced with inexperienced but promising alternatives far too cautiously and unwillingly and the national team paid the devastating price of missing out on both World Cup 2002 and Euro 2004. That kind of consistency is the last thing the Football Association and its chiefs want because failure to reach World Cup 2006 in
Germany would deal perhaps the final blow to our chances of avoiding a fatal collision with a full-scale football disaster. SCG, however, have made a very good start to the World Cup 2006 qualifying campaign, with two emphatic victories over San Marino, a hard-earned draw in a tense match away to neighbouring Bosnia & Herzegovina and a splendid 2-0 win against Belgium in Brussels. The national team produced its best away performance in years against the Belgians and rekindled hopes that it could even finish top of the group ahead of
The days when the country proudly shipped coach loads of talent to foreign clubs are long gone. Today, Serbia & Montenegro's best players are lucky if they catch the eyes of scouts from solid clubs owned by post-communist entrepreneurs in mediocre Eastern European leagues. seeded Spain and win direct qualification for the World Cup finals. Manager Ilija Petkovic has to make do with more or less the same lot that failed in the last two attempts, who seem to be playing for their country with more zest, commitment and passion than before. He also has the option of picking talented youngsters who guided Serbia & Montenegro to the runners-up podium finish at last summer's under21 European Championship in Germany. However, there is no indication yet he is prepared to risk taking a turn by putting his and the team's future in the hands of these youngsters, who may well have proved him right in a 4-0 drubbing at the hands of the Belgians the day before the first team showed them how it's done. The young starlets now face an uphill struggle to reach another European championship final, although they still have a fighting chance of getting there while Petkovic's men, written off by many after two fruitless qualifying campaigns, have done very well to be in the driving seat of a very tough group with a great opportunity to restore their pride by making it to the World Cup finals in Germany in two years' time. If it's true that football is often a good reflection of how well a country is doing in other areas, it is no coincidence that SCG's political quest to take its place in Europe is virtually a carbon copy of the country's slow and painful football recovery, generating mixed opinions of when and if we will see the light at the end of the tunnel. An operation as complex as getting this country and its football back on track can only be done one step at a time. The problem is that unpredictable circumstances have forced many an optimist to take two steps back after the initial step forward has forced even the bravest among them to admit that the road to salvation is littered with thorns rather than roses. The many World and European titles this country has won in just about every team sport except football in the past decade have provided the only sense of joy to many of its citizens. Putting Serbia's soccer back on the world map may turn out to be quite an ordeal and an arduous journey with an uncertain ending, but one that's worth every step of the way if the people in charge are prepared to go the extra mile for the sake of the game.•
CorD | February 2005
81
Reportage - Romania
Euro perspective Eastern vices
By Dragan Bisenic
R
omania's latest elections were, in many ways, a showcase of Romanian development since the ousting of Ceausescu; the array of candidates reflected the massive changes that have taken place since the public executions of Ceausescu and wife Elena on Christmas Day 1989. Among those running were New Generation Party leader Dzidzi Becali - a former livestock trader and now one of the wealthiest Romanians and owner of Steaua FC, former Romanian PM, Petre Roman, leader of he Great Romania (Rumania Mare) Party, Vadim Tudor, and several high officials of the country's former secret services. Over the course of the past 15 years, power in Romania has changed hands on numerous occasions, though satisfactory development has not been achieved. Romania is undoubtedly a poor country, though it represents a serious market for investors with a population of some 23 million. Despite the country being relatively poor, it manages to function and its citizens are both kind and attentive. The country is also moving ahead: this year it became a NATO member and is due to join the EU in 2007. More and more top-notch office buildings are being constructed in Bucharest - such as the offices of banks Societe General, Raiffeisen and Pro Credit - and the Romanian capital's suburbs are awash with commercial properties housing major firms. On 1st July 2001 the population of Romania stood at 22,408,400, of which 10,949,500 were men and 11,458,900 were women. Over the last decade the population has decreased at an average rate of 0.15% per year as a result of a natural decrease and external migration.
82
CorD | February 2005
The outcome of Romania's recent presidential and parliamentary elections were the most uncertain since the demise of Nicolae Ceaucescu in 1989. After the first round of voting, Social-Democratic Party candidate and incumbent Prime Minister, Adrian Natase, held a slender lead over opposition candidate, Bucharest Mayor Trajan Basesku. However, the second round saw Basesku turn the tables on Natase to become Romania's newest prime minister. Though such a turnaround may be unexpected elsewhere, this is characteristic of the dynamic political reality of Romania.
A continuous decrease in the nation's birth-rate, coupled with an increase in the number of deaths, turned the previous natural increase of +67,600 persons in 1990 into a natural decrease of -39,200 persons in 2001. From 1990-1991 the population decrease was exclusively determined by the level of external migration: its negative balance of almost 135,000 outweighed the natural increase of 91,000 persons. Since 1992 the country has experienced both a negative net migration and a natural decrease. The natural decrease during the period 1992-2001 was 291,500 persons and the negative net migration was twice as low. Compared to the previous year, the young population (under 15) has decreased by 112,500 persons, while the adult (15-59 years) and
elderly population (60 years and over) increased by 73,600 and 12,100 Canal contributed to the creation of a waterway of European imporrespectively. It was the first time in the last four decades that the share tance that connects the North Sea to the Black Sea. The Iron Gates I an of the elderly increased against the young population. II hydropower and navigation systems, which include a set of locks, The distribution of internal wealth is something of a thorn in the facilitate more intense traffic. Maritime navigation mostly involves large deadweight ships. side of the citizens: the average wage is around €100 per month, which is simply not good enough according to Katalin Docea, editor-in-chief Romania's fleet boasts 568 ships of all categories, up to 165,000of daily Vali Jlulul. "After Ceausescu was liquidated in 1989 we were 170,000 tdw. Sixty per cent of the country's imports and exports pass expecting a better life, but that better life has not arrived. We expected the port of Constanta. Romania also has a number of large shipyards. integration into the EU, but the majority of Romanians do not know Besides traditional partners (China, Greece, the Republic of South what the EU means. The biggest problems will be in the villages, Africa and Belgium), new major outlets have emerged (the because it will be very difficult for them to adapt to European stanNetherlands, Germany, Sweden, Norway and South Korea). dards. The average wage is very little for our needs", said Docea. Romania's new Museum of Contemporary Arts was opened in the The Romanian Government is trying, like Tom Sawyer, to turn what E4 wing of the deserted Houses of Parliament, popularly called is its biggest weakness into its biggest advantage. Foreign companies "Ceausescu's Palace". With a surface area of 270 x 244 metres, the that employ Romanians are paying the lowest hourly rates in comparbuilding - built at the behest of Ceausescu himself - is the second ison with all other countries in the region: one hour of Romanian largest building in the world (after the Pentagon). Construction comlabour costs $0.95. That is several times cheaper than in Hungary, menced in 1984, though the massive edifice was never completed. where the hourly rate is $4.75, or in Slovenia, where the same labour Head architect at that time was 28, and today, at 48-years-old, he is still costs $7.71. It is being estimated that this rate will grow in the next on the same job. It is not easy to equip a building with over 3,000 year to $1.08 dollars per hour, but that will still be a great deal behind rooms and a surface area of 64,000 square metres. In order to facilitate the Czech Republic ($4.83), Slovenia and Hungary. In the last six the building land, Ceausescu demolished 7,000 homes and 26 churchyears, foreign companies in Romania have increased their hourly rates es in Southern Bucharest, displacing over 70,000 citizens. Built in by only 30 cents, while the increase in Poland was $1.40 dollars, in kitsch and anachronous neo-baroque style, the palace was never used Hungary $2.34 and in Slovenia $2.42. Economists think that cheap either by Ceausescu or his followers. labour is the only saleable capital Romania can offer to the European After the fall of the dictatorship the building was deserted and talk market and that is the starter of the whole economy. abound of its possible demolition. However, the Palace became the According to London's The Economist: "An increasing number of house of the Romanian Parliament in 1994 and in 1998 it was decided companies are considering moving their production to Romania to place the new museum in this building. because investments in China, which also has low labour power costs, Photographer Mihail Orveanu, now curator of the museum, suphave negative compensations and increased prices because of the high ported this project from the beginning: "Even though politicians never transport costs". The popular British magazine based its research on thought that the museum was a priority, thanks to Prime Minister the opinions of 99 general directors, only half of which have interests Adrian Nastase, who is a collector himself, we received the funding for in Romania. this project." Romania has not had any single "creator" of economic change, The Museum occupies around four per cent of the gigantic buildthough the leading force has undoubtedly been the IMF's programme ing. The part of the palace due to house the museum is not finished yet, for the former communist state. Romania maintained a high rate of but the construction and décor, which is supposed to make the space employment until 2000, due to its exceedingly low wages. That policy neutral (if that is possible considering the bombastic exterior), has was abandoned with the arrival of the new Government and for the been finished. Young Romanian artists will be promoted in this musefirst time, in the last four year period, they enjoyed a GDP increase, um and guest exhibitions from foreign museums are also planned to be coupled with a fall in unemployment rates. In short, the increase was exhibited here. Current exhibitions encircle the works of Romanian achieved with the help of productivity growth. However, citizens have artists on the subject of the palace itself, as well as video works of yet to acknowledge those statistical facts. Chinese artists and the works of artists from South Africa and France. "We do not have real economic growth", emphasised Katalin The exhibition has been led by the French Embassy in Bucharest and Docea. "If you do not have growth you cannot increase wages. the whole project has been realised with strong French support. Romania's industry collapsed and some of it was sold in a corruptive way. This year we experienced Romanian's new Museum of Contemporary Arts was economic growth for the first time, though that did opened in the E4 wing of the deserted Houses of not help to increase wages. The Government is saying that when we join the EU our wages will be twice Parliament, popularly called "Ceausescu's Palace". With as high, but even €200 per month would be insuffia surface area of 270 x 244 metres, the building - built cient. However, it seems that even that is not possible in our situation" said Docea. at the behest of Ceausescu himself - is the second Lying in the centre of Europe, Romania conlargest building in the world (after the Pentagon). tributes to the achievement of international economic exchanges between the West and East, North and However, Orveanu does not have any illusions regarding the difficult South of the continent, between Europe and the Middle East. The position of the Museum. "The location inside the palace is a controverCarpathian Mountains are crossed by scores of railways. The general sial decision and I am very doubtful. But, considering the difficult ecoorientation of the lines is determined by the Capital, which lies in the nomic situation in Romania, it was not possible to build a new buildSouth-East of the country, as the main routes converge on Bucharest. ing: we would have to wait at least 20 years for that". The capital is Romania's foremost railway node, with 8 main lines One of the strongest critics of this decision is Romanian artist Dan leaving from here, most of which are connected to international routes. Perjovsi: "My generation is imbued with ideology. We survived the Romania manufactures all kinds of railway cars, as well as electric and system. I cannot forget that one quarter of Bucharest was destroyed in Diesel-electric engines. order for this palace to be built. That is the visualisation of the dictaThe length of roads that add to the railway and river transportation tor's disgusting fantasy. For me, it is bad enough that the palace is still routes exceeds 72,800 km, with an average density of 30.7 km per hunaccepted as a political icon these days. That is like a bad joke. Art is dred km2. As in the railway system, Romania's capital city is the number one road junction, with routes crossing the territory in every direcagain being used as propaganda. The most acceptable choice would tion. Some of these roads are connected to major European roads. have been to open a historical museum to present Ceausescu's twistSuch is the case of the E60, which runs from Hamburg to Constanta, ed ideas". via Oradea and Bucharest. The current exhibition, which opened the Museum, is named River navigation is practiced on most of the Danube. Ships with a "Romanian artists, and not only them, love Ceausescu's Palace". It is draught exceeding 7 metres can navigate on the maritime Danube, due to run until 25th March. The exhibition focuses on the controversial building and includes the works of Romanian artists, starting with downstream from Braila. Upstream from Braila ships navigate with a Ceausescu's portraits from the museum collections, of which there are smaller deadweight and a draught of up to 2-2.5 metres. The DanubeBlack Sea Canal and the commissioning of the Danube-Main-Rhine over 2,400.• CorD | February 2005
83
Techno Talk Contax U4R
name:
url:
www.contaxcameras.co.uk
desc.:
Contax has got its finger so firmly on the pulse that it's feeling a bit dizzy. It's successfully predicted that the compact digital camera market will get over its silly race for megapixels and concentrate instead on the form factor to attract buyers. Both of these cameras have an entirely sensibile 4megapixel sensor, mated to parent company Kyocera Yashica's excellent RTune processor. But is is the U4R's twisty lens section, and the i4R's tiny aluminium body and slidy lens cover that will make the headlines. As they have done here. Well done, Contax.•
price:
Retail price: cca € 450
Alienware Aurora City www.alienware.co.uk Nitendo has a mysterious talent for bundling a €30 game with a €150 console, yet somehow still making the package appealing. We're not sure that Alienware's attempt to do the same with a €3000 desktop will meet with similar success. That said, it does have a hulking, red-blooded spec. It comes in several alluring colours, including this 'look-at-me!' yellow, and the wee alien's eyes glow. Plus, there's little point playing a game if your system isn't optimised for it...OK, Alienware, we like it and we're sending you a big, fat, red-blooded farm-boy cheque.• Retail price: cca € 3500
Mission elegante
url:
desc.:
price:
84
CorD | February 2005
www.mission.co.uk In its natural state , the Mission elegante speaker is so black that only its high-gloss finish prevents it from sucking all light out of the universe and leaving deep sea amoeba as the master race. Fortunately, it justifies this barely restrained destructive power with the kind of sonic ability that draws your soul out through your tear glands, dances with it for 24 hours straight, then kills it with an icicle of frozen treble. What now, though? It's available in whatever colour you design to wave before Mission's eyes, including-the horror!-yellow.• Retail price: cca € 2535
Techno Talk
DM-Tech DML4117WD
www.dmtechnology.co.uk Let's spend a little time as a byte, neatly tucked away on a DVD disc. Before you make it to the big screen, you travel thousands of scale miles, are converted from digital to analogue, traverse a Scart cable, and are examined by image processing algorithms. You'll feel as tired as you look on screen. If the DVD player is integrated into the screen -as in this 17in LCD-you travel less far, have less to do on the way and arrive looking bright and colourful, to the delight of your audience. Makes for a neater set-up too.• Retail price: cca €750
Sony NW-E99
www.sony.co.uk Even the mighty occasionally have to learn the hard way. In this case, it's been sony trying to get its head around the whole digital music player malarkey. For years, the big Japanese one has donned horsey blinkers and pretended that MP3 doesn't exist, happily banging out Atrac-only players. Finally it's seen the light. In addition to playing Atrac tunes downloaded from Sony's Connect music store, this new 1GB player also plays ball with plain old MP3s. The fact that it tips the scales at a bantam-weight 40g doesn't do it any harm, either.• Retail price: tba
Urban surfer UM70
name:
url: desc.:
price:
www.urbanmover.com
Retail price: cca €750
As a rule of thumb, we like our wheeled gadgets extreme, dangerous and suicidally powerful. With a top speed of 20kph and a maximum range of around 25km, the Urban Surfer would suit short-range commuters, those with a pathological fear of bicycles and the clinicaly insane. Control is via handeled speed control and some skilled leaning. Not for the faint-hearted or those with an aversion to hospital food.
CorD | February 2005
85
Techno Talk AKG K 24 www.akg.com We tell you time and again, but do you listen? No. Do you have cloth ears? Actually,that's probably it. We're guessing that you can't tell the difference between the sounds a pair of AKG's new K 24P open-back or K 26P closed-back folding headphones are capable of producing and the tin-foil buzz that emanates from your iPod's headphones. If your hearing was up to scratch, thanks to the AKG's extended bandwidth reproduction ( 13-27000Hz with the 24s, 1228000Hz for the 26s), you'd be able to enjoy your iPod more than you previously thought possible. But all that concerns you is the way the colours would clash. Try Tip-Ex,sicko.• Retail price: cca €38
name: url:
desc.:
price:
Snowscooter www.snowscooter.co.uk There you are, scooting down the street on your fold-up aluminium steed. It's cold but all's well because the wheels are turning and you'll be home soon. But alas! It has started snowing. Behind you, a fellow scooter slips and grazes his knee as his mobile world comes crashing down around him. It's time to get off. But you have a trick up your sleeve. You detach your wheelsand bolt on your Snowscooter's supplied skis. Before you know it, you're on your way again.• Retail price: cca €75
Ducti Classic
www.ducti.co.yu The best ideas are always utterly ridiculous. The Classic wallet is hand-constructed entirely from duct tape: it looks ace in shiny silver, and is as tough as...well, duct tape. Why not pop down the hardware shop and make one yourself? Because you'd probably mess it up, and you can't buy the Super Duct tape that's guaranteed to never peel or stick to the inside of your pocket. Ducti also makes other wallets, a watch ( disappointingly, the mechanism is metal or some such) and a handbag for the ladies. Inspired.• Retail price: cca €23
86
CorD | February 2005
Techno Talk
Mustek DV5000 www.mustek.com There was a time , somewhere around 1986, when suffixing anything with the number '2000' instantly gave it an air of sophistication and futuristic mystique. By 1998, it was wearing a bit thin, so people started banging'3000' on the end of their products names instead. Far be it for us to question Mustek's wisdom but isn't 'the DV5000' a little far in the future for us to comprehend? How about 'the DV'? What's wrong with that? Provided it still had a 4.1 megapixel cam, 4x digital zoom, 32MB of internal memory, an SD/MMC card slot and still shot MP4 video clips in 640*480 resolution, there wouldn't be any problem would there? So that's settled, then. The Mustek DV5 it is.• Retail price: cca €150
Nintendo DS
url:
www.nintendo.com Although it's pitched at a younger audience than the thirtysomethingfriendly PSP, Nintendo's inventive dual Screen should give Sony's handheld a real run for its money. The DS is backwards-compatible with existing Game Boy Advance titles and will have a slot for new DS games that take advantage of the device's second display-a touch screen that can be operated with a stylus or finger. The unit's wireless capabilities work for short-range head-to-head gameplay as well as online gaming via Wi-Fi, for up to 16 players. Also, it boasts a 3D processor that's as formidable as the one on Nintendo's N64 console. The Nintendo DS is purely a gaming device.•
Numark PT01 www.numark.com
Retail price: tba
•
desc.:
price:
Retail price: cca €135
Stop! Put that box of records down and close the left door - there's hope for your vinyl collection yet. Just when everyone thought speaker accessories for MP3 players were the next big thing, along comes this portable party in a box. It's a turntable, see, with a mono speaker built into it. As well as mains power, it runs off batteries for impromptu block parties andwannabe DJ types take note-will fit in those shiny silver record cases that make you look hip. Time to start dusting off those LPs....•
CorD | February 2005
87
Reportage
B
elgrade's Kalemegdan Fortress, and indeed the entire old city, is built on top of a series of underground passages that, according to legend, predate the Ottoman occupation of the ancient Serb lands. Some of Belgrade's subterranean caverns and tunnels are geological phenomena, the human exploitation of which can be traced back as far as the time of Singidunum (the ancient Celtic city we now know as Belgrade). Others are manmade and it is believed that the Romans were the first to construct elaborate passages beneath Belgrade's streets. It is rumoured that Belgrade's warren of tunnels all lead from the depths of Kalemegdan's Roman Well. Some of the tunnels are even believed to stretch beneath the Danube and Sava rivers across to the Millennium Tower in Zemun. However, archaeologists dispute this theory, arguing that the route would have been too difficult for workers to dig, there would have been insufficient oxygen and the tunnels would quickly have grown waterlogged. Nevertheless, when tales are clouded in secrecy fantastical notions often prevail over reason and logic. Officially, the deepest, darkest tunnels beneath Kalimegdan have remained unexplored for centuries and many have been closed or have collapsed, thus depriving explorers of the ability to prove or disprove the myriad myths once and for all. A small section of the Serbian capital's underground maze has been explored by journalist Zoran Nikolic and expert Vidoje Golubovic - employed by the Public Shelter Company that is commissioned to preserve the city's ancient underground passages. Nikolic and Golubovic were joined on their expedition by various
By Jelica Putnikovic, Photo Mirjana Kotlaja
Tunnels
of Singidunum speleologists and other experts and the group's findings were published in a revealing book entitled "Belgrade under Belgrade". This must read publication, edited by Dragan Milovanovic, is enriched by a splendid collection of modern photographs and archive images. The exploration team did indeed find that subterranean Belgrade is densely riddled with passages, caverns and tunnels that are connected to Kalimegdan's Roman Well. They also found abandoned basements and cellars, long forgotten graveyards, secret tunnels beneath the streets of Tzar Dusan, Tadeusa Koscuska, Karadjordjeva and Kosancicev Venac; caves under Pariska Street, and an underground well below Ruzveltova Street, underground passages under the Cukarica district and sealed waterways beneath Autokomanda Square.
88
CorD | February 2005
Underground passages that held the ancient Roman aqueduct system more than 20 centuries ago are still intact and their remains still exist in passages near the Cvetkova green market and other parts of the city. The networks of passages connect various parts of the city, and were constructed throughout Belgrade's history. According to architect Aleksandar Ivanovic, the existence of these passages provide evidence of the city's continuity. Belgrade is one of the oldest and most peculiar settlements in Europe, and is also one of the oldest capital cities on the continent. "This kind of ambience has always delighted me", Alfred Hitchcock said when he saw the Roman Well at Kalemegdan Fortress in 1964, during a visit to Belgrade. At the entrance to the Roman Well there is a huge iron door. Behind the door, a 20-metre corridor leads to the well shaft, which is surrounded by a protective metal railing. The publication entitled 'Belgrade Waterworks' quotes experts as saying that the well shaft is 60.15 metres deep and 3.40 metres wide. After 53.15 metres, the diameter of the shaft narrows to 2 metres. A visit to the Roman Well is also an opportunity to feel the breath of cold winds circulating beneath the capital city. A flight of 212 steps leads to water level, several dozen meters below the shaft opening. The stairway consists of two spiral corridors, swirling and intertwining their way up and down the well shaft. One corridor leads down to the bottom of the shaft and the other will take the visitor back to the surface. Official records say the Austrians finished building the well during their rule over Belgrade between 1717 and 1739. Construction works were concluded in 1731 and, according to some interpreta-
tions, the prefix "Roman" supposedly reflected their desire to succeed the Roman Empire. Some historians insist that there was a Roman fortress (castrum) located on the site of today's Kalemegdan Fortress two thousand years ago, that drew water through a system of aqueducts from a spring in Mali Mokri Lug. The duct, which was 140 to 160cm high, was fitted with ceramic pipes that carried the necessary water. There were openings in the aqueduct that allowed repairmen to fix any damage that might have blocked the steady supply of fresh water. Since the ancient Romans were experienced tacticians and skilful masons, it only makes sense that they tried to dig a well within the fortress walls to supply the garrison with water in the event of a siege. Historians presume that the Romans started to dig the well for this purpose, but did not manage to find water, leaving a dry and dark cylinder instead. Throughout the course of history, the Roman Well served as storage space for wheat and was sometimes even used as a dungeon. Renowned Serbian film director Dusan Makavejev's film "Love Affair, or The Case of the Missing Switchboard Operator", was inspired by a crime that was linked to the well. In this story about Belgrade's depths, a special place belongs to Tasmajdan Park, one of the most mysterious locations in our capital. The park lies on unexplored chasms, natural caves and manmade tunnels. Ancient Romans quarried stone for their buildings in its mines. The caverns they left behind lead into unexplored corridors and passages. Vidoje Golubovic quotes the records of past travellers, who wrote that many armies had started through these passages only to end up in front of the walls of Kalemegdan Fortress, much to their surprise. Anti-Ottoman leader Karadjordje is also known to have organised his headquarters in the tunnels of Tasmajdan when he led the First Serbian Uprising against the Ottoman Empire. Today, the passages are accessible near the discotheque Bus, with the permission and
guidance of their keepers from the Public Shelter Company. During World War II, the Germans placed the command HQ of General Von Lehr in a cave beneath Tasmajdan Park. They installed electricity and a telephone switchboard and laid a concrete floor. One of the telephone lines is operational even today. At the end of the cave there is a metal door that leads to the labyrinth beneath the park through an array of corridors. The occupying Germans built concrete arches in a second cavern, followed by a series of corridors and chambers that could have housed up to 1,000 soldiers. Rumour has it that none of the people involved in the construction of this facility made it out alive. Explorers even found the bones and skeletons of people whose lives were taken in order to keep the location of the bunker secret. The third large cavern is also the most peculiar. At the top of the cavern there are remains of brick-lined graves. When the Tasmajdan sports centre was built, truckloads of litter were thrown into the cave filling it up to 15 metres in height. Other caves are filled in as well, while many of the passages have been walled off, Golubovic explained. The underground area stretching from Branko's Bridge up to the Kalemegdan Fortress holds passages that are accessible from Karadjordjeva Street. The passages lie beneath one of the most beautiful parts of the city, Kosancicev Venac, and they served as shelters during Allied and German air raids in World War II. After serving their purpose to protect human lives they were forgotten. In Karadjordjeva Street there are entrances to 13 such passages. They were located along the bank of the Sava River near the Djumurkana a customs facility that streamlined all merchandise bound for the capital city along this trade route. In order to store these goods, passages and caverns were made with ventilation shafts and a constant temperature. There is an inscription on the wall of the largest of these spaces
It is rumoured that Belgrade's warren of tunnels all lead from the depths of Kalemegdan's Roman Well. Some of the tunnels are even believed to stretch beneath the Danube and Sava rivers across to the Millennium Tower in Zemun. that says "M.O. 1809" and historians are in dispute whether they belong to Grand Duke Milos Obrenovic or his brother Milan, who was a merchant. The cave is also interesting because it contains 17 huge barrels that can hold 10 hectolitres each. One of these casks, which have laid here for decades, is engraved with the year 1921, which implies that the cave may have been a pre-war wine cellar. These caves remain unexploited, as does most of Belgrade's underground realm. A large cave (500 square metres) beneath Kalemegdan Fortress in Pariska Street houses the night club Underground. Famous local director Emir Kusturica shot a film of the same title in these quarters. Vidoje Golubovic observed with resignation that the Archive in Vienna has more comprehensive records on the Belgrade underground than Serbia's own institutions. He still hopes, however, that the citizens of Belgrade will not let their wondrous caves and passages slip into oblivion. The Underground could become a great tourist attraction.• CorD | February 2005
89
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
96
CorD | February 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 • BELGRADE CULTURAL CENTRE, 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
AMSJ road assistance Ambulance
94
Police
92
Fire Department
93
Belgrade Bus Station
636-299
Belgrade Airport
601-555
Wake-up calls
9811
Humanitarian phone
9862
JAT ticket reservations
901
Phone line Malfunction
977
Information Exact time Information - phone numbers Telegrams by telephone Medical Center Emergency Room Whether forecast
• 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
Central Train Station
• 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
311-2123
Long distance calls (international)
HISTORICAL MUSEUMS:
MEMORIAL MUSEUMS:
987
Chemists,"1. maj", Kralja Milana 9 Chemists, "Prima 1", "Sv. Sava"
9812 95 988 96 3618-444 9823 629-400 324-05-33 361-10-88, 361-09-99
Chemists, "Sv. Sava", Nemanjina 2
643-170
Chemists, "Zemun", Glavna 34
618-582
Alfa taxi
244-11-13
Alo taxi
3564-555, 063/252-002
Beogradski taxi Beotaxi
9801, 064-12-88-000 970
Ekonomik taxi
397-33-27
EURO TAXI (Lux taxi)
334-47-47
Gold taxi
329-18-18
Lux taxi
328-44-44
Maxiss taxi
581-111, 9804
Naxi taxi
215-76-68
NBA taxi
318-57-77
Pink taxi
9803, 488-99-77
Plavi taxi (Cukaricki) Taxi Bell Zeleni taxi Žuti taxi
3-555-999 9808 323-36-66, 324-25-55 9802
CorD | February 2005
97
Belgrade Directory ... rent English-language videos and DVDs? • Thanks to the Serbian practise of not dubbing foreign feature films or movies, it is possible to hire English-language videos or DVDs from any video rental shop in Belgrade.
... install broadband cable internet? • Is your Internet connection too slow? Help is at hand from
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.
Serbia Broadband, which is now providing fast and reliable cable internet connections. 24-hour phone-line free connections are available, as well as cable television with over 50 channels and extra pay-per-view options. A modern call centre, equipped with over 60 lines, is available anytime on 011/330-52-52
... become a member of the National Library of Serbia?
... recover your towed car? • As the parking regime has been altered and stricter rules for parking in Belgrade are now in force, your car could possibly be towed away if you park in the wrong place. In that case, you should telephone the city's 'Parking Service' department, where you will be informed as to whether your vehicle has been towed away and how you may reclaim it. You can reach them by telephone on: 303-17-07
• Foreign citizens who are residents of Serbia can access the selection available at the National Library of Serbia - located at 4 Skerliceva Street, close to the Temple of St.Sava. Identification cards or passports are sufficient to receive membership and gain access to a wide range of local and foreign books, and other publications. Information is available over the phone (444 73 81) or via the website at www.nbs.ac.yu
... send postal packages and mail? ... rent an apartment or relocate? • There are many agencies dealing in property rentals - houses, apartments and office spaces. One of Belgrade's most respected estate agents is 'Eurent' Agency. This agency works to high business standards and, if you decide to co-operate with them, you can rest assured that the properties on offer satisfy your needs and requirements. Contact Eurent through their premises at 34a General Zdanova Street, or over the phone on 3613-814. Alternatively, visit their website at www.eurent.co.yu
... partake of the Bonsai art? • The ancient art of Bonsai, popular in China and Japan and dating back some 1500 years, is a relaxing and rewarding horticultural hobby of growing and nurturing sculptured miniature trees. If you want to know more about this interesting pastime, pick-up some useful tips and learn new growing techniques, join the Bonsai section of the Serbian Cactus society. Tel: 304-68-49 or enquire online via www.bonsai.org.yu.
• If you wish to send larger quantities of packages and /or mail of all sorts and categories, the easiest way is to contact the Serbian post Express Service. This service provides the fastest and safest transfer and delivery of items. Tel: 360-76-07 or visit the website at www.postexpress.co.yu.
... get emergency car repairs or roadside assistance? •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
... visit winter ski centres in Serbia? ... buy tickets for public transport? • In Belgrade you have public transport (buses, trams, trolleybuses) and also taxies. If you decide to use public transport you can get your monthly ticket from the Public Transport Company, located at 41 Zmaj Jovina Street. The Public Transport Company can also be contacted over the phone (011/628-091) or via the website at www.gsp.co.yu. This site displays all the information you need, including nightly and daily transport schedules and timetables.
98
CorD | February 2005
• It is time for winter holidays, so if you decide to go somewhere wintry to enjoy the skiing, we recommend Serbia’s famous mountain resorts. For more detailed information contact the Tourist Organisation of Serbia, which will provide comprehensive details of where to go and how to get there; as well as accommodation information. You can access detailed information regarding ski holidays via the website at www.serbia-tourism.org.