CorD Magazine No.18 by CorD Magazine

12 ROAD TO INDEPENDENCE interviews | opinions | news | comments | events My position is clear: if only one voice tips in favour of union and against independence, I should give the reins of government to people who sincerely campaigned for union. These are the democratic rules of the game that I respect unconditionally.

No18 - July 2005

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

Milo Djukanovic,

Deputy Editor: Mark Pullen m.pullen@cma.co.yu Art & PrePRESS Director: Branislav Ninkovic b.ninkovic@cma.co.yu Assistant Designer: Marija Popovic m.popovic@cma.co.yu Editorial: Milan Culibrk, Dragan Bisenic, Nina Nicovic, Rajka Sinik, Vojislav Stevanovic, Zeljko Jovanovic, Slobodan Vucicevic, Zoran Knezevic, Aleksandra SekulicStojanovic, Maja Vukadinovic, Jelica Putnikovic Photo: Andy Dall, Stanislav Milojkovic FoNet, Tanjug and Beta Translators: Milos Milosavljevic, Dejan Zubac, Dusan Jelic, Milica Kuburu-Jovanovic, Marija Petrovic

Montenegrin Prime Minister

30 STABILITY & TRUST Relations between Serbia & Montenegro and Poland have a long tradition and the Polish nation has a lot of sympathy for the peoples of Serbia and Montenegro.

H.E. Tadeusz Diem, Ambassador of Poland to SCG

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I did not feel like God, nor did I feel that I held the destiny of civilisation in my hands. I am a scientist who is trying to implement one technique in treating illnesses in modern medicine.

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CorD | July 2005

Miodrag Stojkovic Europe's Leading Geneticist

SUPERLATIVE DRIVING

70 "The Chysler 300 is an extremely compelling combination of power, responsiveness, room and refinement. A home run on significance and a slam dunk on value; clearly superior to its rivals in every way."

contents

18 VIABLE SOLUTION REQUIRED Kosovo on its own is not a viable entity. We will have to find a balance between their [Kosovo Albanian] wish for independence which demands multiplicity and protection for minority rights - and the need for integration in the region as a whole.

Carl Bildt, former Swedish PM, former EU Special Representative to Yugoslavia, former Bosnian High Representative, current Chairman of the Kreab Group

22 SECURE STATE

Mladjan Dinkic, Serbian Finance Minister

The influence of tycoons on the Government does not exist because Kostunica is the Prime Minister and I am the Finance Minister.

LATIN POWER I don't blame the creditors, but they were a little bit incautious when continuing to lend to countries that were already beyond their financial repayment capacity.

H.E. Carlos A Martese, Argentine Ambassador in SCG

POLITICAL CONTINUITY I have to be fair to PM Vojislav Kostunica and admit that he showed great respect for the moves of the previous governmentâ&#x20AC;Śincluding the vision of late PM Zoran Djindjic

LATERAL EXPANSION We are not afraid of competition. On the contrary, we feel that as a company we are ready to face leading western companies head on.

Goran Pitic Former Serbian International Economic Relations Minister, Economics Professor, Freelance Investment Consultant

Milka Forcan Vice President of Delta Holding

SHOPPING

76 ARTS & ENTERTAINMENT No doubt about it, this year's Exit Festival in Novi Sad promises to be the pre-eminent rock and electronic music festival in the Balkans CorD | July 2005

Comment

Shock Power Milos Vasic: Journalist, Vreme Magazine

are being written, 6th June); Messrs. Krestic, Ekmedzic, Djuretic, he "home video" made by the Cosic (Dobrica; you guessed right), Nikola Milosevic, MP, too, like paramilitary scum of the unit other distinguished historians and academics. Their silence is codename Scorpions remains deafening, like the close-quarter discharge of a Kalashnikov rifle. the ultimate political event in Serbia Is there anybody in the Serb public and academic life that is until something even worse appears. honest and courageous enough to come out and say that those Not that we didn't know; oh, yes, we Srebrenica men and boys deserved to die at the murderous hands did, and some among us hollered in of Milosevic's State Security Service-hired thugs? Where are our outrage years ago, since the wars in honoured "nationally responsible intellectuals"? (Don' ask me the former Yugoslavia started. But the what it means; it's Kostunica's favourite utterance.) Pray come Silent Majority chose to keep its eyes out, gentlemen, doctors, MPs, generals, ministers! closed and ears plugged. No. Such admonishments are in vain; they will not come out But, lo and behold, one moment of and say what they think very softly and what Scorpions, Red Berets, laxity was enough, one blink and the Tigers and other scum do very loudly. Nor will Their Graces Amfihorror was there. Our heroes, "defenders of 'Serbdom'", duly lohije, Atanasije, Irinej, Filaret and other princes of the Church. blessed by priests who should have known better, were seen murMaybe His Holiness will mutter something; with a "but", I'm afraid. dering unarmed, bound civilians - most of them youngsters - in For the time being, the furthest anybody has gone verbally was cold blood. Yes, and even having some fun out of it; otherwise the Most Honourable Speaker of the Serbian National Assembly, His they wouldn't bring a cameraman to document the events. Excellency Predrag Markovic, who said that the outrageous event According to the word on the streets of Sid (their border-town took place "outside Serbian territory" and that, consequently, we're home base) the videotapes were circulated around; not exactly not exactly concerned in our official capacity. So, let's ignore the available in the local video club, but almost. proposed motion of MPs Zarko Korac and Natasa Micic; their very The reaction in Serbia was utterly expectable: politically cornames are enough for dismissal, by the way, as some MPs said. A rect, that is. Everybody made some proper sounds, even the few days later, though, the idea of a resolution - or declaration - on Radicals: "Oh, it's terrible! The criminals should be punished!" Srebrenica was back in the corridors of power. Poor Serbian MPs: it What else was there to be said? A lot, I'm afraid. will take weeks to fine-tune the wording of such a document and Hypocrisy, for a start. Each and every time a crime committed make everybody happy and serene. If such a piece of paper is ever by "our boys" is exposed, there is always that same story: yes, written, one is afraid it will look like that shameless Declaration of but… The "but" is interesting here: yes, but they committed even Dignity of the Motherland War voted by the Croatian Parliament worse crimes; yes, but we were provoked; yes, but remember (Sabor) a year ago. There must be a reason why all the nationalists what the Turks did to us over five centuries; yes, but we didn't kill eight thousand war prisoners, only two thousand; yes, but why don't you investigate the Let's not fool ourselves: our nationalisms are murcrimes against Serbs? derous by definition...Slogans such as "All Serbs This little word "but" is what enlightens us: yes, said young Mr. Aleksandar Vucic of in one State" are readily and instantly translated the Serbian Radical Party; but, he added hasti- into their real meaning: "Only Serbs in one State" ly, why was this video only shown now? It in the Balkans are so similar; hypocrisy perhaps? must be another conspiracy against Serbs. Yes, said Djordje Let's not fool ourselves: our nationalisms are murderous by defMamula, MP of Kostunica's DSS; but we shouldn't rely on "some inition; crime against humanity is a built-in device for them. Slogans video shots and some comments" (Mr. Mamula just happens to such as "All Serbs in one State" are readily and instantly translated be a lawyer defending one of most unsavoury war criminals, Sasa into their real meaning: "Only Serbs in one State". Milosevic's Cvijetan, formerly of the same Scorpions). Mr. Mamula is a "legalaxiomatic statement "We don't know how to work, but we know ist", of course, a loyal acolyte of his guru, PM Kostunica. how to fight" (15th March, 1991) was also readily and instantly transThere are so few really candid people among Serb nationallated into its real meaning: "Let's loot and plunder, why work?" ists...One is almost tempted to pay some respect to that toothless Now Serbian public opinion can learn that those same character, "Captain Joe", formerly of the Red Berets, who at least Scorpions were formed to guard some oil wells in Eastern Slavonia; said what he honestly feels - that Zoran Djindjic should have been that they started very soon to steal the best oak timber and began killed and deserved it. Is there a candid and honest Radical to say trafficking in stolen cars, liquid fuel, cigarettes etc. Who were their that those Srebrenica boys should have been murdered? I hoped business partners? JUL businessmen, State Security barons like Mr. Tomislav Nikolic would come out and say it; he once said that Arkan, heroin dealers in Novi Sad, vehicle traffickers in Zemun, he isn't "sorry for Slavko Curuvija's death"; Curuvija, a journaletc. We saw them in Western Bosnia as Fikret Abdic's mercenaries ist, was brutally murdered in April 1999 by State Security thugs. protecting the big-time smuggling operations contracted by So, Mr. Nikolic, MP, disappointed us this time; the shock must Milosevic and Tudjman. We know they were in Kosovo, killing have been really too strong - even for him. whole families and looting like Vikings - once and forever. The rest of them remain silent. One would have expected, for That is the real ugly face of our "heroes and defenders of Serbdom": instance, Mr. Brana Crncevic to say his "but": yes, it's terrible, but murderers and thieves who understood so early and so quickly that "when Serbs kill, it has to do with God and not the Devil”, as "patriotism is the first refuge of scoundrels" (Ambrose Bierce). when others kill. At least that; it's already on the record. Mr. Kosta Cavoski remains silent too (at least until the moment these words Is there anybody to stand up and say so?•

CorD | July 2005

Interview

ROAD TO

CorD Exclusive By Dragan Bisenic

Milo Djukanovic, Montenegrin Prime Minister

In the course of the next few months, Montenegro will make an historical declaration regarding its independence - so said Montenegrin Prime Minister Milo Djukanovic, speaking exclusively to CorD magazine for this month's issue. ing disproportions to satisfy the needs of Serbia and Montenegro as states with a European perspective. We ought to have learned from the experience of the three-year transitional arrangement defined by the Belgrade Agreement to strive towards those models of state organisation that will speed up the process of attaining a functional democracy and market economy in the two states and lengthen our strides on the path towards our strategic national goals membership in the EU and NATO. "This is why we have proposed to our partners in Serbia, ahead of what is scheduled to take place in February 2006, to consider transforming the existing community into a union of two independent states recognised by the international community, so that both governments can take full and undivided responsibility over the European perspectives of their respective societies," the Montenegrin Prime Minister explained. To what extent is 2006 a turning point for the Balkans, bearing in mind that you are planning to stage a referen-

INDEPENDENCE A

ccording to the Montenegrin Premier: "There are two options: Serbia and Montenegro can agree to transform the State Union into a Union of Independent States, or Montenegro can opt for independence at a popular referendum next February." He continued: "If we consider relations between Serbia and Montenegro, I am convinced of the superiority of the model of independence for both states. This transitional period, defined by the Belgrade Agreement, has shown there is a host of serious structural problems that prevent this atypical model of a two-member community with outstand-

CorD | July 2005

dum and the authorities in Kosovo are heralding the declaration of final status? It is time to resolve these two issues - the future of the State Union and the status of Kosovo. I see these two as essentially different issues. Solving the problem of the State Union would solve the lack of functionality of the existing institutional arrangement. We already have increased democratic maturity of the societies in Serbia and Montenegro. However, it is very good that there is determination in Belgrade, Pristina and within the International Community to resolve the issue of Kosovo as well. I believe that only after

that will we be able to claim with certainty that the Western Balkan region has reached a level of stability requisite to unhindered development of our European and Euro-Atlantic prospects. These two processes are not tightly connected. But both have their autonomy and both need to be dealt with responsibly. I am convinced, therefore, that the issue of Serbian and Montenegrin relations will proceed according to one of two possible scenarios. If the authorities in Serbia accept our initiative, we could transform the existing community into a union of two independent states that recognise each other's sovereignty and legal status. On the other hand, if they

My position is clear: if only one voice tips in favour of union and against independence, I should give the reins of government to people who sincerely campaigned for union. These are the democratic rules of the game that I respect unconditionally remain adamant not to accept our proposal, then events will unfold according to the second scenario - a democratic referendum in Montenegro from the beginning of February to the end of April 2006. Why then? Because conditions for holding the referendum, stipulated by the Belgrade Agreement, mature in February and the end of April is the last moment to round off the whole process, since local elections are scheduled for May 2006 and regular parliamentary elections follow in September the same year. At what stage are the negotiations with Belgrade? There has not been a constructive dialogue over this proposal because, in my opinion, it has been met with an a priori negative bias by Serbian Prime Minister Kostunica and, accordingly I suppose, by governmental structures in Serbia. Other actors within the Serbian state milieu, namely President Tadic, gave some signals that sustained hope for the feasibility of this dialogue. What I would like to point out is that, regardless of the amount of reserve towards our proposal from one source or the other, time continues to pass by and once again we are failing to use it rationally. The basic idea behind the initiative that Filip Vujanovic and I put forward was to try to analyse the regularity and inevitability of the processes that lie ahead, that is, the attainment of full independence of Montenegro's international legal status. If our estimation is correct, we are willing

Milo Djukanovic to negotiate. In that case we can have two kinds of relationships with our partners in the State Union. One is the kind of relationship that the Serbian Government is currently opting for, which is to wait for the referendum in Montenegro to find out what kind of future lies ahead for Serbia by observing our own decisions over our future. We think this is a passive and politically uninsightful manner to treat an issue of such importance. After all, if the Serbian Government adopts this line of policy, it will confirm that it has remained consistent with the attitude it had towards similar initiatives coming from former Yugoslav territories during Milosevic's reign. Instead, we offer an alternative approach. That is, if our assumptions about the way things are unfolding in Montenegro are correct, then we believe it wiser if Serbia took part in this process in a creative way and managed it

"BELGRADE" MONTENEGRINS "It is not a good alibi for the Serbian or any other state elite to permit this level of irresponsibility. I really think this is the work of irresponsible people, regardless of their origin. I mentioned recently that the phrase "Belgrade" Montenegrins has taken root in Montenegro. This, of course, is not a pejorative remark directed generally against Montenegrins in Belgrade. Montenegrins have been received well in Belgrade for decades and were compensated in full for their contribution to the development of Serbian society as a whole. The truth is that there is a distinguishable political milieu dominated by people whose origins are in Montenegro that has spawned some of the most backward ideas in the last decade and a half, which have cost Serbia and the Serbs very dearly. Let us only remind ourselves of their warmongering cries over Krajina, Bosnia, Kosovo and now their detrimental attitude towards Montenegro…Well, has there not been enough negative experience for Serbia to say to these people, wherever they come from, even if it is brotherly Montenegro: "We've had enough of your advice. Go on and enjoy the years you have left and let the new generations in Serbia create their European future?!"" CorD | July 2005

Interview with us towards an outcome that is, in our minds, the only one possible and that will bear the fruit of ideas invested by both parties. Hence, our idea is that Montenegro should have an internationally accepted and legal sovereign status. Why? Because we want to secure adequate representation of authentic and typically Montenegrin interests through direct membership in international organisations: interests that we believe cannot be adequately pursued through joint representation, bearing in mind the disproportion within the State Union. Serbia and a minority in Montenegro feel that the two states need more proximity in their relations than the kind of relationship that awaits us in the EU. We agree on that point. We want and respect this notion and, thus, believe that both ideas are optimally expressed through the formula of an alliance of two independent and internationally recognised states. Our mission was to make such a proposal, but it now depends on the depth of the Serbian leadership's political estimation on whether we will go on to make this proposal our reality. There have been comments that Montenegrin independence opens the road for the separation and independent status of Kosovo, which creates an impression that Montenegro is more or less indifferent towards the issue of Kosovo and has left this hot potato for Serbia to handle? I would characterise this is a traditionally shallow approach to this particular issue and one that is not very hard to refute. We should first have in mind that the issue of Kosovo and demands for its independence existed way before Montenegro even considered that the former Yugoslav state could disintegrate, before the failure of the state union with Serbia and the subsequent idea to fully restore the independent legal status of Montenegro as a sovereign state. Let us analyse the present situation without treading back into history. Can we really expect that a Kosovo-Albanian's view of the province's future depends on whether Montenegro stays in or departs from the state union

The basic idea behind the initiative that Filip Vujanovic and I put forward was to try to analyse the regularity and inevitability of the processes that lie ahead, that is, the attainment of full independence of Montenegro's international legal status with Serbia? Or will a Serb in Kosovo change his opinion over Kosovo's future if Montenegro opts for independence? I think that associating these two issues in this particular way is influenced by the momentum of previous unsuccessful policies in dealing with the Kosovo problem, when various excuses were conjured to justify the lack of progress in treating the issue. A lot of time has been lost with theories about how Kosovo should have the status of a protectorate under the jurisdiction of the international community or the European Union for the next few decades. Only recently have we started to hear new strands of reasoning arguing that there cannot be regional stability without resolving the issue of Kosovo's status. Regional instability, on the other hand, obscures European and Euro-Atlantic perspectives for the whole region. I think this practice of making up excuses is not a useful strategy, even if the justification is that Montenegrin independence spoils it for Serbia. This simply

CorD | July 2005

FATHERS AND SONS Ljuba Tadic is the father of President Boris Tadic, who is presently engaged in a press debate with the Mayor of Belgrade, while Matija Beckovic is very close to the Serbian Prime Minister. "This is just confirmation, not just of a political deviation, but also some kind of psychological deviation. I naturally respect Boris Tadic a lot as the President of the Democratic Party and the President of Serbia. We have maintained a high level of co-operation with his party for many years and I truly think that Boris Tadic deserved

Milo Djukanovic talking to our editor a presidential mandate for his professional competences. I am absolutely certain that he does not need mentorship, just as I didn't need any when I became the President of Montenegro at an unusually young age. I think this deviation is to some extent typical of Montenegrins. "There is this custom, unfamiliar to other regions, where parents try to assert opinions and solutions on younger generations longer than it is natural and desirable. Wise people in Montenegro will tell you that if there is a conflict between generations over certain visions, they will choose the one that is championed by their children, because this is the vision they will experience as a generation. However, in Montenegro there is, unfortunately, a strongly rooted belief that people who are even up to 40 or 50 years of age should have to accept directions from some older generations about plans and visions that will not affect the latter in their lifetime. Regardless of the extent this custom is embedded in society and of personal authority, because I have much respect for some of these people who are very successful in their professions, we should allow everyone to do their job. "The government in Serbia was elected democratically by the will of the people. We should leave these people, then, to perform their duties in the interests of Serbia. I am confident that if we relieved them from this past that is still a hindrance to Serbia, an iron ball chained to its feet, and if we freed them from the ugly scenes of the past ten to fifteen years, Serbia would gain the democratic capacity to quickly attain its European goals and find it much easier to understand Montenegro."

Interview is not the case. Both problems phase of community with Serbia. should be dealt with responsibly and We have guided Montenegro to the I am absolutely certain that they are door of a referendum that will not interlinked and they both have resolve in a democratic way a dilemtheir own developmental paths. ma that has been hounding it for In relations between Serbia and almost a century - since 1918 to be Montenegro, it is quite clear what the precise. outcome of the present dysfunctional Everything that is about to hapinstitutional arrangement will be. I pen within the following year am confident that regional interests should end a natural cycle burdened and the European perspective of both with history - with frequent events Serbia and Montenegro command the of historical magnitude. The condisolution we are championing. tions are there for Montenegro to I completely agree with those peacefully devote its time and enerwho say that Serbia is a key factor for gy to a European future with people the stability of the Western Balkans, who are not burdened by the historbut not any kind of Serbia. The ical period that is now behind us region needs a democratic Serbia and who will have the energy of a with a European orientation. In addinew generation to accomplish a tion to that, I will chip in my own European future with greater speed. definition, which is that Serbia will The region needs a be positively democratic and will The referendum is by all means democratic Serbia with face Europe once it becomes devoted an historical turning point. What a European orientato itself; when it manages to supdoes it mean to you personally, tionâ&#x20AC;Ś Serbia will be press the political notion that is still since your political career is on the positively democratic present on its political scene and line? If you win, you could stay in which has heavily burdened its power longer than King Nicholas and will face Europe immediate past and its present: the did and, if not, what kind of conseonce it becomes devotnotion to resolve the problems of its quences could lie in store for you? ed to itself; when it neighbours instead of focusing on its I will partially corroborate your manages to suppress own issues. This notion cost Serbia assumption, since I was personally the political notionâ&#x20AC;Ś and the Serbs dearly in the times motivated and could have gone for that are now behind us and it has more comfortable options. to resolve the problems cost others in the region dearly as By opting for independence, I lost of its neighbours well. It is in Serbia's best interest to the support of certain democratic instead of focusing on refrain from pursuing this kind of forces in Serbia that I had good relaits own issues policy any further and open up a tionships with up to that point. new chapter in its history. I believe However, this confirms that my prothis will happen once Serbia is indeposal was not rash and does not pendent and devoted to a democratic transformation from contain personal bias. It is the outcome of my belief that within, which is the fastest way to begin taking steps draws on 15 years of experience, that a two-member commutowards a European future. nity, regardless of its form (the Federative Republic of Yugoslavia in its various phases and the present decenYou mentioned that you had become a prominent polit- tralised union), is not a good choice for Montenegro or ical figure in the Yugoslav Federation and after that the Serbia, and even less for their mutual relations. This is why leader of Montenegro at a young age. You still hold the I believe our feeling of historical responsibility towards this most important political position and stand out as a leader proximity should sprout institutional solutions that will be with considerable political longevity, even on a European superior to the ones we have experienced so far. scale, along with good prospects to remain there. What is I agree with what you have said, however, and every your reflection on your political engagement during these politician puts his authority on the line. My position is clear: times that are very complicated, to say the least? if only one voice tips in favour of union and against indeThe fact that I have been in politics for such a long time pendence, I should give the reins of government to people owes much to circumstance. Politics is not my primary and who sincerely campaigned for union. These are the demoeven less my permanent vocational choice. I have other cratic rules of the game that I respect unconditionally. I just affinities and I can freely say that my enthusiasm for politics need to make a small correction of your forecast on whether is somewhat saturated. However, the course of events in the a victory of our political option opens up a perspective for last 15 years brought numerous challenges that each had to another mandate. Honestly, this is not in my thoughts. I be faced with the wealth of previous experience. I think we think this was a difficult time and 15 years in politics have have weathered the most difficult of these challenges. consumed 30 years of my life. I can use the years I have left Montenegro has faced the challenges of war and successful- for more pleasant activities and purposes, to give more time ly preserved peace and a multiethnic society. It has pre- and dedication to my family and private life. This will be my served property as a valuable starting capital for panning out preoccupation after I responsibly finish giving my contributhe future. We have opened up a clear European perspective tion to overcoming the challenges that Montenegro must for Montenegro by receiving the Feasibility Study in this face in the year ahead.â&#x20AC;˘

CorD | July 2005

Interview

VIABLE SOLUTION Carl Bildt, former Swedish PM, former EU Special Representative to Yugoslavia, former Bosnian High Representative, current Chairman of the Kreab Group

REQUIRED By Dragan Bisenic & M. Pullen

aving followed in the footsteps of his grandfather, Gillis Bildt, by serving as the Prime Minister of Sweden from 1991 to '94, Carl Bildt embarked upon a career of international mediation and diplomacy, which has seen him hold no less than three posts in the Balkans to date. In 1995 he became the EU's Special Representative to the then Yugoslavia, before becoming the international community's first High Representative for Bosnia (1996 - '97) and then Special Envoy of the UN Secretary-General to Yugoslavia (1999 - 2001). Now Bildt could be returning to the region as UN Special Envoy for Kosovo in time for the 'Final Status' talks, scheduled to commence in 2006. This month we spoke exclusively to Carl Bildt about regional affairs and the progress achieved in the Western Balkans. How would you assess the Kosovo situation? It is one of the most difficult problems, but it needs to be solved. We need to liberate Serbia from the eternal problems associated with Kosovo by having an irreversible solution. And we need to create the conditions for Kosovo to develop somewhat better with somewhat more stable structures. Exactly how this should be done remains to be seen. The Albanian side envisages the only solution as being an independent Kosovo. Is this feasible? Well, it depends what you mean by independent. There will have to be a very big effort of integration as well, because Kosovo on its own is not a viable entity. We will have to find a balance between their wish for independence - which demands multiplicity and protection for

CorD | July 2005

With talk of a new UN Envoy for Kosovo in the air, a prime candidate has arisen in the form of Carl Bildt, perhaps one of the most experienced international practitioners in Balkan affairs.

minority rights - and the need for integration in the region as a whole. How would you comment on the latest developments within the EU; can the French and Dutch referendum results affect the special solution of Kosovo and will the EU take the leading role in the province? Well, it's going to be between the Europeans, the Americans and the Russians. Everyone is going to be part of this. But, of course, the key policy of the region is the perspective of integration with the European Union. Now with the setback caused by the French and the Dutch there's a risk of that being affected. We don't know yetâ&#x20AC;Śit should be rescued, but it will require some leadership in the next few months. I think next year it will be finally decided in a number of ways. We'll have the redefinition of the European perspective for the Balkans, I'm quite certain; we'll have Kosovo on the table; we'll have the State Union of SCG on the table. So I hope that 2006 can be the year when we really sort things out and start to move forward in the region. Just recently it was reported that enlargement protests are gathering pace, especially for the Balkans. This means that the European prospects of Kosovo are also under threat. Well, and for everyone else in that particular case. But, that said, I think it's in danger; I think there's uncertainty, but I don't think it's beyond repair and I think it can be rescued, but it will require leadership by the politicians of Western Europe who have interests in this region. Next year we will have both the Austrian and the Finnish presidencies [of the EU] and both, I think, are fairly good on these issues. Regarding Srebrenica, just recently video footage of killings was made public. As the then High Representative of Bosnia, were

Interview you aware of the events in Srebrenica? Afterwards, yes, of course. We didn't know it when it happened, but we got to know what had gone on gradually later. I think the fact that the videos were shown is extremely good, because it proves the case beyond doubt for those that have, perhaps, doubted before. So I think it's extremely good for Serbia and Republika Srpska that the reality of what happened has now been brought home in such a vivid

Reflecting on the Conflicts As a key international player in the Balkan region during the 1990s, Carl Bildt was heavily involved in the international community's activities throughout the wars that marked the collapse of Yugoslavia. Ten years after the signing of the Dayton Agreement that secured peace in Bosnia, Bildt reflects on the plans and counterplans, successes and failures of the various international missions to

Bildt pictured alongside British politician Robin Cook and horrible way. It could have a cleansing effect. You mean that it could provoke discussion and acceptance in Serbia? Yes. My impression, and you know better than me, is that a lot of people have been going around saying "yes, perhaps it happened, but it's being exaggerated by the international community and it was probably the Muslims that did it anyhow". I mean, you know that sort of sentiment. So they're suspecting it happened, but they don't really want to believe it. There are a lot of people who really have doubts that it happened. Yes, quite. They've not really been denying it, but they've doubted it and they didn't really want to accept the idea. That fairly widespread sentiment has now disappeared. A decade after Dayton, how would you assess the present situation in Bosnia and the Balkans as a whole? I think Bosnia is moving forward, too slowly in my opinion, but it is moving forward. I would like them to go faster in a number of different ways. I think it's time to close the office of the High Representative and empower all of the Bosnians to really take care of their own country and see what happens. Unlike a lot of people, I'm not pessimistic about Bosnia. I do see a lot of problems, but I do see progress as well.

Bildt pictured talking to Javier Solana the then Yugoslavia. Noting that many avoidable mistakes were made by all parties during the climax of the conflict in Bosnia, Bildt insisted that "the exodus of Serbs from Sarajevo could have been avoided with a different policy. That was a catastropheâ&#x20AC;Ś" With war raging on all sides and diplomatic ties strained, a new line of communication was opened when current ICTY fugitive Radovan Karadzic wrote to former U.S. President Jimmy Carter. Where did that line of communication originate? That came from Carter's efforts to secure a ceasefire in December 1994. Carter tried to explain to Karadzic the necessity of accepting political terms, and Karadzic replied that he was ready to accept one part, but not the other. However, his letter demonstrated his readiness to accept the leadership of Belgrade, which had not been the case prior to that. We then witnessed negotiations lasting several days between Belgrade and Pale [Pale = the town that housed the HQ of the Republika Srpska leadership], which led to the forming of a joint

Kosovo on its own is not a viable entity. We will have to find a balance between their [Kosovo Albanian] wish for independ ence - which demands multiplicity and protection for minority rights - and the need for integration in the region as a whole.

In a political sense it seems that things are going quite well, but in an economic sense development is stunted. Well, it's differentâ&#x20AC;ŚIt [Sarajevo] is a booming city. God knows how, but it is. But in the rural areas you're right. However, that's a dilemma shared by all of these countries. I mean, go down to the countryside in Krajina [Croatia] and you will see wasteland everywhere. It's the same in Bosnia, in Serbia, in Albania. We have this divergence between some areas that are doing well and other areas that are not.

negotiating delegation. Whose idea was it that the Serbian Patriarch officially witness the signing of the agreement between Belgrade and Pale to create a unique delegation? I wasn't there, but Holbrook [Richard] said that it was his idea. Mladic actually led the Republika Srpska delegation. When RSK [the Croatian Republika Serb Krajina] fell you were in Washington. Did you speak with somebody there about that? I reacted very sharply against that, particularly against methods of bombing Knin, which was identical to the bombing of Sarajevo. I stated that very clearly and Tudjman didn't like that. He announced CorD | July 2005

Interview me, almost, as persona non grata in Croatia, even trying to prevent me from entering Croatia to continue my work. After some time he gave up.

were killed there and it's astounding that nobody raised the question of that investigation in The Hague Tribunal.

You wrote that you were disappointed by the apparent double standards of the international community in this regard. Some actors, without a doubt, had double standards. Some of them said that the Serbs deserved it because they had committed the massacre in Srebrenica. I couldn't accept that poor villagers from Krajina could be held responsible for that massacre, because they didn't do it. Those who didn't confront Tudjman in that business were actually condoning ethnic cleansing. What Tudjman did there was real ethnic cleansing with the help of a modern army. I asked that The Hague Tribunal deal with that. In the book I quote reports of some agencies about what was going on in Krajina following operations "Spark" and "Storm". It is still not known how many people

It seems that you were personally shaken? Yes, I was. I have seen a lot of refugees before, but this time I was really touched. They were poor people who were moving away with their entire belongings on their shoulders, leaving an area where their ancestries had lived for centuries. I was touched by these individual sufferers. Never before had I seen so many refugees in one place. What is your experience with president Milosevic? I spent a significant part of my life with president Milosevic (laughter), but a lot of time was indeed required for the talks we had. He is a very skilled, very stubborn negotiator. It was very hard to get an approval from him. But when you achieve agreement with Milosevic he sticks to it. He is an excellent tactician, but terrible at strategising. The last time we met was in June 1997, when I was leaving. Did you resume your meeting back then? At the farewell lunch we were left with several outstanding problems to solve. Then I told him that he was very interesting for co-operation. I also told him that I was sorry that Serbia, in my opinion, was experiencing a tragedy purely because of bad policies. The things that happened in RSK were tragic for 200,000 people. I told him that some of the things in Bosnia could have been avoided. I was repeatedly trying to redirect attention to the social and economic problems of Serbia itself, because I could see that it was getting worse and worse. A few times I redirected his attention to the problems of Kosovo, but

CARL BILDT - BIOGRAPHICAL With a background in politics in Sweden and Europe, Carl Bildt is today focused mainly on different aspects of international policy and business. Bildt served as a Member of the Swedish Parliament from 1979 to 2001 and was Chairman of the Swedish Moderate Party from 1986 to 1999. He served as Prime Minister between 1991 and 1994, and was also Chairman of the International Democrat Union from 1992 to 1999. His government negotiated and signed the 1995 accession of Sweden to the European Union, and undertook far-reaching liberalisation and structural reforms to improve the competitiveness of Sweden and modernise its oldstyle welfare system. After his term in government, he became the EU's Special Representative to the Former Yugoslavia in 1995 and served as CoChairman of the Dayton Peace Talks later the same year. He then served as the first High Representative of the international community in Bosnia during 1996 and 1997. In 1999, he was asked to re-engage on the Balkan issues as Special Envoy of the UN Secretary-General, and served in that capacity until 2001. Presently, he is Chairman of the Kreab Group of public affairs and strategic communication companies of the Nordic Venture Network and of Teleoptimering AB. He also serves as non-executive Director of Vostok Nafta, Lundin Petroleum, HiQ and Ă&#x2013;hmans, and also advises the investment firm East Capital. In the United States he serves on the Board of Trustees of the RAND Corporation, is non-executive Director of the global asset management company Legg Mason, as well as a member of the International Advisory Board of the Council on Foreign Relations in New York. In the field of international public policy, he serves on the Board of the Centre for European Reform, as well as the Council of the International Institute for Strategic Studies in London, the Board of the European Policy Institute in Brussels and the Aspen Institute Italia in Rome. In Moscow, he is on the Editorial Board of the magazine Russia in Global Affairs, as well as the Board of the New Eurasia Foundation. Apart from different national awards, he has an honorary degree from the University of St Andrews in Scotland, where he is a Fellow at its renowned Institute for the Study of Terrorism and Political Violence.

CorD | July 005

I think it's time to close the office of the High Representative and empower all of the Bosnians to really take care of their own country and see what happens. Unlike a lot of peo ple, I'm not pessimistic about Bosnia. he was very difficult to communicate with on that issue and it was impossible to lead him into any rational discussion. How would you describe your experiences with Tudjman? He was the total opposite of Milosevic. Tudjman was not a man with whom I would have liked to spend a free evening. He was a dedicated nationalist and, because of that, he was often in conflict with the international community. However, he always managed to find a way out. You could hardly say that Milosevic was a rank nationalist, but Tudjman insisted that the root causes of the Yugoslav conflicts lay in a clash of civilisations: with Croatia, in his opinion, always belonging in Europe, while the others were simply part of the 'Balkan mass', with which he did not want to be associated. Moreover, he wanted to intervene in the Bosnia business. I tried to explain to him that our task was not to create smaller and smaller communities. We wanted integration of South-East Europe, but he was strongly against that. How would you comment on the theory that opposing factions secretly conspired to allow the fall of Krajina, Srebrenica, Bihac and Zepa? I'm not quite sure about that. Despite there being various theories, I am not aware of any evidence that would confirm that. The awareness existed in Sarajevo that problematic enclaves existed. Zepa and Srebrenica were major burdens in that regard, but I cannot draw further conclusions from that. Did the Yugoslav conflicts provide the catalyst for the establishing of a new relationship between the various forces of the international community? Most certainly. The importance of unity between the U.S., the EU and Russia, in the context of the Contact Group, was demonstrated clearly. We also saw the creation of a new necessary role for NATO in the development of European policies, as well as witnessing the stark limitations of the UN in such matters.â&#x20AC;˘

Interview Milan Culibrk, Photo: Stansilav Milojkovic

ccording to Dinkic's estimation, the Government's survival chances have been boosted thanks to the fact that many difficult tasks within the economic sphere are, slowly but surely, being put behind the Government one by one and, thus, allowing funds to be released for public investment; to support the export industry and boost standards of living. "To date there have been no such funds available for these purposes and I expect that an increase in the number of successful companies, coupled with a fall in the number of unviable companies, will afford the Government an increasingly wider scope for action," said Dinkic, speaking exclusively to CorD this month. Providing specifics, Dinkic explained that the Government has begun reforming public services. The reform of state administration has already commenced and reform of the health department is due to get underway in September - the main principle of which will be to eliminate irrational expenditure, stimulate working quality and established a new value system. "The reform of the pension system will follow and an improved position of budgetary funding will be ensured because

â&#x20AC;Śthis Government has not made a single decision under the pressure of this or that businessman, or in order to fulfil someone's personal interests. the minimum age limit for pensions will be gradually moved to 65 for men and 60 for women by 2009. The aim of this is to improve the current very poor ratio between the numbers of employed persons and the numbers of pensioners. No other viable measure can better improve the situation in the pension fund."

Mladjan Dinkic, Serbian Finance Minister

SECURE

STATE

When the minority government was formed 16 months ago, most analysts didn't rate the coalition's chances of survival very highly. Indeed, many expected it to fall within six months. However, the Government has managed to cling to power and now Serbian Finance Minister Mladjan Dinkic claims that the chances of PM Kostunica's administration surviving its full four-year term have increased by some 60 per cent. 22

CorD | July 2005

The print media are reporting on cases of corruption with increased frequency and Zoran Drakulic has also made certain allegations. With this in mind, could corruption contribute to the collapse of the current government, as was the case with the previous administration? At the present time there is certainly no corruption in this Government. Drakulic could prove his seriousness quite simply by submitting the evidence he claims to have in his possession to the public prosecutor or the media. He has not, however, done this and his claims are obviously a matter of internal clashes within DSS. Drakulic has tried to win favour and position within the party by alluding to some papers which, it seems, he himself does not believe to contain any proof of corruption. He has brought a great deal of trouble upon himself with this, but that is a DSS problem. I didn't react to Drakulic's statements until he involved G17 Plus. At that point I urged him to make public everything he knows. Afterwards he was quiet for a month and, in the end, it turned out that Kostunica did not have any trust in him - as shown by the fact that he didn't nominate him for the position of party vice-president. I knew that was the case all along, and the PM's decision speaks for itself. Moreover, in terms of the coalition's work, this Government is modest in its achievements and teamwork is much better than was the case with the previous government. We may not have as many good individuals as the previous government, which boasted several exceptional ministers, but we act more homogeneously as a team; there is no petty slander and we help each other out. For instance, I perform many tasks for other ministers and, in turn, they do things for the Finance Ministry from time to time. Who would you personally single out from the previous administration that could have a place in this government? I would be glad to see ex-ministers from the former govern-

Interview ment Alexandar Vlahovic and Gordana Matkovic. Current Labour Minister, Slobodan Lalovic, is much better than his predecessor Dragan Milovanovic, but I would like to see Gordana Matkovic in the social policy field, while there are several positions that Vlahovic could assume well. There are a few classic politicians in this Government and in the sphere of public services we are much less interested in politics than professional expertise. That relates to all line ministers from G17 Plus and is probably what has caused the drop in the party ratings. However, I am convinced that the ratings will improve when citizens see that we are doing what is good for Serbia. But for that we need time. It was the same with me while I was the NBS Governor, the ratings dropped while Bogoljub Karic was attacking me through his BK TV for three months and later we raised public support to 11.5% during one electoral campaignâ&#x20AC;Ś With the likes of Bogoljub Karic in mind, how great is the influence of business tycoons on the Government and the general situation in Serbia? There is no such influence, or at least it has never been smaller than it is now. That is one of the reasons why this Government is often attacked through the media. The logic of the previous government was that tycoons will, if the government works for them, use their media influence to minimise press attacks. We do the exact opposite. We work according to our conscience and behind all of the fabricated scandals and attacks, except the criticisms made by objective economic analysts who motivate us to work better, stand those tycoons who finance all of that because they are dissatisfied that they cannot push their personal financial interests through the Government. The influence of tycoons on the Government does not exist because Kostunica is the Prime Minister and I am the Finance Minister. That is crucial, and I also cannot imagine that anyone in agriculture can have any influence on Ivana Dulic-Markovic or any other ministers. However, the key levers of every government are in the hands of the prime minister and the finance minister, and if you cannot influence those two people, and nobody can do that to Kostunica or myself, then it is logical that certain tycoons are discontented. Along with that, hardly any of them dare to attack Kostunica, therefore all of the attacks are directed at me. We will see whether it will be the same after Kostunica's decision not to nominate Drakulic for the post of DSS vice president. In any case, I would like the Prime Minister to remain sheltered, and I

am here to protect him from such attacks. Some people have noted that you were not present at the signing of the contract between the French Credit Agricole

The influence of tycoons on the Government does not exist because Kostunica is the Prime Minister and I am the Finance Minister. and Novi Sad-based Meridian Bank, in which the former Finance Minister, Bozidar Djelic, was appointed as the president of the Managing Board. The only reason I was not present at the signing of that contract was that at the same time I had lunch with the prime ministers of regional countries, all within the framework of the EBRD Annual Assembly in Belgrade. Otherwise I planned to go there and

KARIC & CO.

ven after 5th October 2000 Karic tried to take money out of the country, to put it in off-shore accounts in Cyprus, so because of a minus of 40million dinars his Astra Banka was closed. On the other side, Miskovic made Delta Banka and sold it to the biggest Italian bank for almost â&#x201A;Ź300million. That could not have happened if Miskovic had not obeyed NBS regulations. Therefore, the difference between Miskovic and Karic is enormous. But Miskovic is not the only one. The same could be said for the owners of Meridian Bank, which was firstly called Yuko Bank. That bank also respected the NBS regulations, thus they got one of the biggest world banks, French Credit Agricole, as their partner. That tells you about the wisdom of Delta and Meridian banks' owners and the dilettantism of those who thought that they would never lose the privileges from Milosevic's times. It is obvious that some of them came to their senses at the right time, some in the meantime and some will probably never come to their senses. In Russia too, there are tycoons who are currently leading businessmen, but there are also those who ended up in prison. In the U.S. too many wealthy people gained their fortune under irregular conditions, maybe during prohibition, but later observed the regulated game rules. Let's look at the other aspect of this story. There are also in the world those businessmen who like to appear in public, which I think is wrong, while others engage top PR companies and managers, and they are only owners. Serbia is not the exception, apart from the fact that some individuals got used to earning big money in a short time and they want to keep those positions. But that has changed significantly and discontented individuals publicly criticise the Government and certain ministers. The same applies to Drakulic, who packed his discontent in the claim that the Finance Minister does not do his job properly, that the economy does not have any assets while his factory in Sevojno, because of our economic policy, makes constant growth in exports and, thanks to our good relationship with the EBRD, he received 15 million euros of credit from that bank. Well, Drakulic would not invest in Serbia if he thought that the situation here was bad and an incorrect economic policy was led. A good minister must not care about anybody's personal interests, but exclusively about the general interest, even at the cost of his ratings dropping because of that and I am a living example of this. CorD | July 2005

Interview in future I will be present on such lic revenue is not the consequence occasions, because that is a good of an increased economic burden, opportunity to promote our econobut rather the efficient collection of my. those duties. As such, we still stick We should not underestimate to that estimation, with which the the influence of rich people on the IMF agrees, that this year we will government's work, neither in the achieve an economic growth of four world nor in Serbia, but this to five per cent. Government has not made a single decision under the pressure of this On what do you base that estior that businessman, or in order to mation, considering that industrifulfil someone's personal interests. al production is falling? I think that there are two kinds of This optimism has a cover, because people who built their empires durthere is no full correlation between ing the '90s: The first are wise and economic growth and trends in understood that the rules of the industrial production. From 2001 game changed on 5th October 2000 until 2004 the average GDP growth so they continued to play according rate was 5.1%, while in 2001 and to new, European rules and transi2002 industrial production increased tional laws; the second group are by 0.1 and 0.7%, and in 2003 those who thought that they would dropped by as much as three per be able to use the privileges they cent. In industry only the physical enjoyed during Milosevic's times volume of production is measured, with any other regime. Those while the export results show how belonging to this second category much we have managed to sell to the are the ones who are now appearing world and that is a much more in the media and having clashes important, more qualitative index. with the Government, because they We are also encouraged by the do not understand that the time of fact that this year we will receive â&#x20AC;Śthe growth in public revenue monopolistic behaviour and privitwo billion dollars in foreign direct is not the consequence of an leges has gone, or at least that it is investments, and it has been shown increased economic burden, the aspiration of the Government, that those investments from the prethis and the previous one, to comvious period were directly meritorib u t r a t h e r t h e e f f i c i e n t c o l l e c pletely eliminate such a phenomeous for the dynamic growth of this tion of those duties. non. Those who understood that year's exports, because our main times changed on 5th October I conexporters are multinational compasider to be wise businessmen, and nies such as U.S. Steel or Tarkettâ&#x20AC;Ś we have them in all transitional countries, even in Western European ones. But, there are also those who have not yet Do you expect greater resistance in the restructuring of realised where they are now. public companies, since there were problems with JAT, and many people wonder what will happen when NIS and EPS's Why does the Government refuse to correct the projection turn comes? that inflation this year will be in single figures since the With NIS things are heading in the right direction, we do majority of economists think that it is not possible after the have a strategy, a clear aim and we can already see the end. NIS price growth of 7.1% in the first five months? will soon be divided into four parts, then we will call for an interWe do not want to give any wrong signals in advance to anynational tender for the election of the economic advisor. It is realone, and together with that inflation is not the basic problem for istic to expect that in the first half of 2006 Serbia will call tenders the realisation of the key targets of the economic policy. I am also for the privatisation of parts of NIS and the decision as to convinced that after tightening the fiscal and monetary policy at whether we will sell just the refineries in Pancevo and Novi Sad the end of the year the deviation from the projected level will be or the petrol stations too will be made after considering the minimal and that inflation will start to drop. Together with that report compiled by the privatisation advisor. Telekom Srbije is our priority this year is to increase exports and decrease the very profitable and for now we are not planning its privatisation, deficit in the balance of payments. but we are planning its de-regulation because the monopoly on mobiles and fixed telephones expires in June, thus providing for Could the faster growth of prices than the euro exchange the penetration of other operators. That would be good for our rate jeopardize that aim? citizens, because stronger competition can lead to a fall in prices. I do not think so, because the euro is falling in comparison As regards ZTP (the Railway Company), we also have a clear with the dollar too, and that suits exporters. plan. We have secured a loan of 120 million euros from the European Investment Bank and the EBRD for the modernisation Experts warn that public expenditure is a third higher of railway tracks, the procurement of new goods freight wagons than last year, and that in such a way money is being sucked and locomotives. 5,000 people have already left the company volout of the country. Could the additional monetary and fiscal untarily, the same number is employed in companies which were tension jeopardize economic growth? separated by the division of secondary activities and the basic Not only did we not increase any tax this year, but we also one will be divided into infrastructure and transport. All this is proposed a reduction of VAT from 18 to 8 per cent for a whole taking place at a realistic pace, not slow but no too fast, though range of goods and services. Because of that the growth in pubfaster than has been the case so far.â&#x20AC;˘

CorD | July 2005

EU POLITICS

'NO' VOTE Belgrade peacefully and, it could be said, with courage and a degree of self-confidence, welcomed The French people's resounding "no" vote to ratification of the EU Constitution. Meanwhile, the EU member states have yet to decide how to react to this, the strongest blow to the Union's aspirations in the past three decades. Media houses have responded with their accustomed dramatics, while officials remain reticent and cautious. 26

CorD | July 2005

By Dragan Bisenic

resident of the European Commission, JosĂŠ Manuel Barosso, has encouraged European leaders not to spread nationalism in their backyards - in a blatant reference to the Italian ministers who are blaming the Euro for the country's unpredicted recession and have been publicly calling for the reinstatement of the Lira. EU leaders later met and unsuccessfully discussed the possibility of cancelling the British 'rebate', negotiated by Margaret Thatcher in the 1980s, and farming subsidies - French farmers receive some 21% of the common agricultural policy budget. Talks broke down with the French blaming the British and the British blaming the French and the Germans. The constitution, as one BBC analyst put it "is certainly dead, but the EU members are refusing to bury it". Perhaps the cause of the cool, self-confident attitude in Serbia lies in the fact that Serbia is so far away from joining the EU that any rumblings within the Union are of no consequence to Serbia

EU POLITICS whatsoever. Indeed, the question of the EU Constitution does not the final obstacle hindering the country's accession. even figure in the countryâ&#x20AC;&#x2122;s top 300 political priorities. Moreover, Just a day after the ominous referendum result in the Serbia's political leaders want to protect their citizens from undue Netherlands, Zagreb played host to a major conference of the worry in the next 15 years. And, besides, political leaders vying Bertelsmann Foundation, under the title "South-East Europe on for the EU accession of SCG do not believe that the French result the Road to the European Union". will effect the country's prospects, as proven by the Serbian The conference was attended by officials from across the Government statement immediately after the vote, which includregion, as well as Croatia's leadership. The new post-referendum ed the evaluation that "the French 'no' will not influence our situation was discussed in detail and the discouraging atmosphere country's membership in the EU". was summed up by Croatian President Stjepan Mesic, who said According to the Serbian Government's EU Accession Office, "the European Union is tired of expansions and we are all exhaust"the failed outcome of the referendum in France does not signal ed by transition". the end of notions of a joint continent and certainly will not repMesic warned that "this result should not be allowed to resent the beginning of the collapse of the EU. This is not the become a new line dividing the continentâ&#x20AC;Śthe problem could be first time that the EU has faced a crisis. It has successfully overeasily resolved: the process of European integration should be come all difficulties faced to date and has proven itself to be a brought to a final conclusion without too much hesitation". forum within which the European nations, through continuous Despite Mesic's encouragement, EU hesitation and opposition co-operation and permanent dialogue, can build and protect to the expansion of the Union towards the West Balkans has, it their own values - the most important of which is undoubtedly seems, never been greater. If it were not so then Erhard Busek, peace on the continent". Special Coordinator of the Stability Pact for South-East Europe, Through the announcement, the Office reminded citizens that would not have insisted that "it's not fair" that the expansion of the EU Contract of the early '90s caused a similar crisis because Denmark and Gerhard Schroeder: "Any form of refusal to react to Ireland did not ratify the document. the Constitution is a mistake at this moment. All 25 However, that problem was overcome by the re-running of referendums in both countries have to speak about the Constitution". countries. Deputy Serbian PM, Miroljub Labus - who also heads the the Union could be halted for West Balkan countries. Serbian Government's EU Stabilisation and Association negotiCristina Galjak, spokesperson for EU Foreign Policy and ating team - appeared more apprehensive, warning that Security Chief Javier Solana, said that the Union will sharpen crialthough the French 'no' on the EU Constitution referendum teria for the further expansion of the EU. Solana himself stated would not influence SCG's European Union Stabilisation and that the West Balakan countries "need to impose themselves on Association process, it could influence the "2012 Agenda", the EU". which concerns the date by which the country hopes to have German Demo-Christian parliamentarian Elmar Brok, Head of achieved EU membership. the European Parliament's Foreign Policy Board, has claimed that "Our task is to be technically well prepared for direct negotiathe expansion of the Union has been carried out amid great diffitions regarding stabilisation and our eventual joining, which are culties for the past two decades. Brok said: "It has come to some to commence in October this year. Simultaneously, we have to kind of revolution in the Union. We can't go on as usual and carefully follow developments within the EU", said Labus. behave like nothing has happened. The message that the expanAccording to the deputy PM's office, Labus said that the sion of the EU is over and done with would have catastrophic ramstandpoints of the heads of individual EU members would ifications. become clear in mid June, after which the planned summit in "On the other side," Brok noted, "we could lose the support of Brussels would be held to continue consultations regarding techour citizens and that would also be a catastrophe. Now it is necesnical issues. sary to find our way between two potential disasters". Lying behind these apparently encouraging statements is an Brok suggested that "a break in the tempo of expansion is acknowledgement that until Serbia achieves EU candidacy status needed in order to give the opportunity to our citizens to catch and establishes stronger relations with the EU many things will their collective breath and gradually change their mood". remain uncertain and unclear where Serbia is concerned. In an attempt to encourage candidate nations not to be too disThe decisions of voters in France and the Netherlands have far heartened by his proposal, Brok suggested the creation of an intergreater ramifications for the people of neighbouring Croatia, mediate solution which would give candidate nations a kind of where leaders expect the former Yugoslav republic to soon com'something in between' status: "instead of negotiating for 12-15 mence final EU accession negotiations - with ICTY co-operation years, it would be possible for the EU to assume something like 70

F. van Eekelen, Former Secretary-General of the Western EU

"The referendum in the Netherlands was their first referendum in history. It didn't end famously, but I think that the main reason is the feeling of insecurity and the loss of faith in politics; It's about a lack of trust in Europe. "It was also wrong that the Document was called 'The Constitution' because that created the impression that it was something eternal and people received it very seriously. The most important problem is that Europe didn't set the goal of an end location. It is also a mistake that the expansion process has been commenced without first making relations within the existing Union deeper.

Ljuba Popovic, Paris-based artisit "The European Constitution is practically a globalising slave driver's chain around the throats of workers, villagers and the lower middle-class and poorest people, to the benefit of major capital. When the Euro was introduced prices leapt and everything became more expensive, except paintings which, in contrast, became cheaper. "Ordinary people didn't need to study the Constitution - they simply realised what was in store for them. "Serbia, after this 'no', has to realize that the 'carrot & stick' for EU accession is becoming ridiculous.

CorD | July 2005

EU POLITICS remains a clear consensus on the continuation of extension of the Union, though the question remains as to how this will be explained [and justified] to "This result should not be allowed to the EU's citizens". The first to be struck by the crisis in become a new line dividing the continentâ&#x20AC;Ś Brussels will be Romania and Bulgaria, the problem could be easily resolved: the who have already signed the Accession Agreement and are scheduled to join process of European integration should be the Union in 2007. Next will come brought to a final conclusion without too Turkey, with negotiations on accession expected to start in October. Next in much hesitation". line is Croatia - negotiations are to start forthwith following the arrest and extradition of fugitive General Ante Gotovina, while SCG, Macedonia, B&H and Albania are awaiting the commencement of negotiations. per cent of the legal status of these countries for such a status". Of particular importance to SCG, Croatia and the other coun- Propping up the queue are the Ukraine, Moldova and Georgia, who tries of the region is Brok's suggestion that the countries of South- have demonstrated a strong desire to become EU members. EU Commissioner for Expansion, Ollie Rehn, has insisted that East Europe create a unique single market that could eventually join the European Common Market. The same suggestion was expansion plans will continue according to schedule. However, also made in the Bundestag by Brok's Demo-Christian Party, but he emphasised, the so-called Old Europe firstly wants to could become the cause of political opposition because it is not strengthen and deepen connections between the six founding members of the Union. supported by Germany's governing Social Democrats. Rehn stressed that the first four states waiting to join the EU Next September will see general elections in Germany, and it is widely expected that the Demo-Christian Party will overthrow (Romania, Bulgaria, Croatia and Turkey) must rigidly adhere to the the Social Democrats and completely change the dynamic of Germany's powerbase. Such a result would provide the oppor-

Stjepan Mesic, Croatian President

Benita Ferror-Waldner: "the EU should slowdown expansion in order to give time to its citizens to breath after the failure to adopt the EU Constitution at the referendum polls in France and the Netherlands". tunity for Brok's suggestion to achieve political fruition. However, the question remains as to how the countries involved would react. Even those who are unwavering optimists on EU accession for the West Balkans, such as Werner Weidenfeld, are talking about the "catastrophe" and the completely new face of the European Union. Johannes Heindl, Special Envoy of the German Foreign Ministry for South-East Europe and Turkey, has spoken about the "hangover in Europe". Claiming that "Europe won't end up in a dark abyss" (because of the Nice Agreement that ensures that the EU can function undisturbed), Heindl said "it's remarkable that this sad mood is spreading beyond the EU as well. However, there

requirements needed for accession, and that they would now be even more closely observed by Brussels. Rehn has already announced that Romania and Bulgaria will each receive formal warnings that their accession will be delayed until 2008 if they fail to redouble efforts at reforming their legal systems and fighting corruption. "Bulgaria still has a lot of homework to do. They could have left Romania in their wake with greater focus, but now Bulgaria has to realise that the hook has not been removed and there is still a lot of work to be done". The EU Commissioner admitted Miroljub Labus, Deputy Prime Minister that there had been far-reaching calls for EU politicians to reconsider expansion. However, he insisted, "it is an "Our task is to be technically well prepared important European interest to have stable and modern democracies in for direct negotiations regarding stabilisa- Turkey and on the Balkan Peninsula". EU Expansion opponents have tion and our eventual joining, which are to noted the great fear of a new wave of commence in October this year. Simul- immigrants and the growth of unemin 'Old Europe', as well as taneously, we have to carefully follow devel- ployment the withering of their influence over opments within the EU." the Union's affairs. According to the latest information, last year's 1st May accessions of the 10 new member

CorD | July 2005

EU POLITICS states from the former Eastern Bloc led to a total of 150,000 new immigrants relocating to Great Britain, Germany and France. The major problem for Turkey, in terms of EU accession, could be the unresolved issue of the divided Mediterranean island of Cyprus, where Turkey has 30,000 soldiers stationed in the Ankaraadministered north. Nevertheless, Turkey and the 10 newest EU members are to have signed a co-operation protocol document at the end of June as a pre-condition of the commencement of negotiations with Brussels on 3rd October. It looks increasingly likely that the autumn negotiations will not go at all smoothly, with Austria threatening to block talks between Ankara and Brussels if negotiations between Brussels and Croatia commence at the same time, as has been envisaged. Meanwhile, the UK is insisting that Zagreb must firstly satisfy all ICTY requirements - namely the arrest and extradition of Gotovina - before any negotiations can commence. The recent meeting of senior European ministers in Luxembourg saw confirmation of an unhappy prognosis. At the meeting, foreign ministers of the 25 EU member states decided to withdraw Union Expansion plans from the agenda of the EU Summit held in Brussels shortly afterwards. Instead of discussing expansion, the meeting was dominated by the question of the EU's budget allocations from 2007 to 2013. "As a delay in finalising the EU budget will lead to a subsequent delay in the financing of all projects, including those regarding future EU members, it has been decided that expansion will be

EU citizens are not ready to even consider the idea of Turkey's membership. Meanwhile, EU foreign ministers have agreed to re-evaluate Croatia's progress once more during July. Mirroring Brok's earlier statements, EU Foreign Affairs Commissar, Benita Ferror-Waldner, said "the EU should slowdown expansion in order to give time to its citizens to breath after the failure to adopt the EU Constitution at the referendum polls in France and the Netherlands". Ollie Rehn claimed that "Each EU candidate country has to fulfil special conditions and there is no single rule that is valid for everybody". Despite the refusal of French and Dutch citizens to ratify the Constitution, German Chancellor Gerhard Schroeder has invited other member states to continue with the ratification process. "Any form of refusal to react to the Constitution is a mistake at this moment. All 25 countries have to speak about the Constitution", said Schroeder. Caution is spreading even with regard to the major achievements of the Union, even the Euro, which makrs a major benchmark towards the foundation of a truly united Europe. Roberto Maroni, Italian Employment Minister, has suggested that a referendum should be held in Italy to assess whether or not Italians would like to temporarily reinstate the Lira, bearing in mind that many Italians blame the Euro for price rises in the country. Speaking to Rome daily Republic, Maroni suggested that "perhaps it would be better to temporarily return to a dual currency system, with the Euro and the Lira circulating side-by-side". Maroni leads the North League, which enjoys strong support among Italy's SME community and is a key coalition party in

Elmar Brok: "We can't go on as usual and behave like nothing has happened. The message that the expansion of the EU is over and done with would have catastrophic ramifications."

removed from the agenda", said Eldar Subasic, spokesman for the Luxemburg MFA. The adopted agreement that will see the formation of a custom union between Turkey and the 10 new EU members, in order to improve EU accession negotiations for Ankara, could also prove a public relations nightmare, with opinion polls in France and the Netherlands having shown that opposition to the notion of Turkey joining the EU was one of the main reasons why voters chose to oppose the Constitution. It is widely perceived that the majority of

Silvio Berlusconi's administration. Speaking publicly, Maroni insisted that he was not expressing any nostalgic sentiment regarding the Italian currency, but rather was simply trying to provide alternatives for dissatisfied citizens. The rejection of the Constitution in two major EU countries has prompted leading economists to insist that the potential collapse of the Euro could become a reality. Professor Paul de Grove, a lecturer at Leuven University and former candidate for the governorship of the European Central Bank, said that "it's very possible that some members, one day, could step out of the European Monetary Union because of national interests".â&#x20AC;˘ Predrag Simic, SCG Ambassador in Paris

"The approach of Western Balkans countries to the Union is not considered controversial in a geographical or a civilization sense, nor in a financial sense (their gross national income barely matches that of Luxemburg - the smallest member of the Union). However, that is not the case with Turkey, whose request to join the EU caused major polemics. "The newly formed circumstances in the Union, however, require the much stronger engagement of SCG and other Western Balkan states regarding the structural reforms that will bring them closer to EU standards and further co-ordinate action towards Brussels and individual EU members. This is of utmost importance because it is possible that decisions regarding the expansion of the EU will not be made by parliamentarians, but rather by the voting public through referendums. "This can also help to influence public debate. During the run-up to the French referendum a new phenomenon occurred with the Serbian & Montenegrin diaspora joining discussions regarding the question of the accessions of Western Balkan states to the Union".

CorD | July 2005

many goings-on. A sharp and exact professional observer, Diem said of SCG: "it seems to me that since the beginning of my posting here progress has been enormousâ&#x20AC;Śnobody can say the process is reversible anymore." Talking of the democratic transition process in SCG and the country's EU-accession aspirations, Ambassador Diem noted that Poland had been a pioneer of this process in the former Eastern Bloc. However, he insisted that it was impossible to merely duplicate the experiences of other countries, particularly as the Balkan region had an entirely different history than the rest of Europe and, thus, different associated problems. Still, he stressed "I think your experience should be compared with what we were doing and thought should be given to what is a feasible process". How would you evaluate the current level of bilateral cooperation between Poland and SCG? Relations between SCG and Poland have a long tradition and the Polish nation has a lot of sympathy for the peoples of Serbia and Montenegro. From this point of view, there are no problems associated with bilateral relations between the Republic of Poland and the SCG State Union, or with the individual republics of SCG. We expect to strengthen our economic relations and also bring the societies closer together, especially concerning the younger generations. Our respective politicians have already got together, as proven during the last official visit of President Svetozar Marovic to Poland, when the president confirmed the longstanding and good relations between our countries.

H.E. Tadeusz Diem, Ambassador of Poland to SCG

In your capacity as ambassador here, are you satisfied with the current levels of economic co-operation between Poland and SCG? We are always claiming that our relations in the area of economic trade are booming, with the volume increasing by almost

STABILITY & TRUST Speaking exclusively to CorD for this month's issue, H.E. Tadeusz Diem, Polish Ambassador to SCG, confessed that he is not a career diplomat, but diplomacy uses him when it needs him. By Milovan Jaukovic, Photo Stanislav Milojkovic

n his younger days, while working as a professor of mathematics, physics and chemistry at Warsaw Technical University, Diem had never imagined that he would one day become a diplomat. But his engagement with Solidarity - the Polish political opposition movement that this year celebrates its 25th birthday - propelled him into the world of politics. Politically specialising in security issues, Ambassador Diem's first ambassadorial posting saw him travel to Canada, after which he was nominated for the post of Polish Deputy Defence Minister, responsible for defence policy. It was his specialisation in security and defence that saw him posted to "this difficult part of Europe". Ambassador Diem has just completed the third year of his official mandate in Belgrade, during which time he has witnessed

CorD | July 2005

50 per cent in recent years. However, trade is far below the expectations of both countries and is not yet satisfactory. The potential is enormous. Our current bilateral trade equates to roughly â&#x201A;Ź300million, while - as an example of the possible capacity - Poland's trade with Lithuania totals almost â&#x201A;Ź1.8billion. We have traditional collaboration in certain areas, such as the energy sector and mining in general, while trade with the pharmaceutical and chemical industries is present and worth continuing. This has been the cornerstone of our recent co-operation and we wish to further develop these areas. Both Serbia and Montenegro are interested in agricultural cooperation, initially with regard to investment in the food process-

Relations between SCG and Poland have a long tradition and the Polish nation has a lot of sympathy for the peoples of SCG ing industry, which is of key importance because we are more or less oriented towards agriculture. It is in this are that the credit lines of the Government of Poland have been extended in recent years, and that will continue. Moreover, Poland's business community is closely observing the privatisation process here, particularly the privatisation of the banking sector and infrastructure.

Interview What, then, should be done firstly in order to extend bilateral economic co-operation? This very issue was analysed at the recent EBRD Annual Conference - the biggest financial-community gathering in Belgrade for three decades, which is a good indicator. The key elements for further growth are: political stability and good legislation which, of course, are necessary for any assurances and to stimulate the interest of the business community. We have seen a lot of progress in this area, especially last year when the bankruptcy law and other pieces of legislation were adopted by the Serbian Parliament. However, a number of ongoing obstacles are continuing to discourage the business community, which sometimes seems to be reluctantly searching for better sectors and more reliable locations. Much is ahead of us, but I believe that right now we are close to a kind of turning point in the economic transition phase and recent developments are very promising.

in Belgrade. He provided a more or less comprehensive prescription: first of all political stability and trust must be built to strengthen democratic institutions. If you provide this quickly and do not delay the constructing of a legislative framework it will bring a safe and economically efficient market-oriented state. If this is done, the invisible hand of the free market and democracy will ensure the system functions. Positive results would be visible sooner rather than later. Could the results of the recent EU Constitution referendums in France and Holland slowdown, or even halt, the process of associating the Balkan countries with the EU? The negative results of the referendums in France and the Netherlands have brought fresh concerns to the EU, while the positions of the UK and the Czech Republic are pushing the ratification process towards an indefinite timeframe. Poland, as you know, was not in favour of the constitution in the beginning, but we signed the document in the name of EU solidarity…in the current situation we will, at least, take all measures either to ratify or, perhaps, revise this very, very important act. European solidarity is a crucial element to preserve and, from this point of view, I think the EU countries should reconsider the way we are going. We are convinced that the current situation requires the European Union to provide new instruments for enlargement, and the Riga Initiative of President Kwasniewski provides the confirmation of Poland's will to continue the expansion process… Timetables basically depend on individual applicant countries and when a state is ready we welcome new members. Each wave of enlargement is different and new instruments are employed. The EU is a dynamic and vital organisation.

Which specific economic fields and what particular opportunities could be, and are being, appropriately exploited? Poland has approved a $50million line of credit to Serbia for the revitalisation of the energy sector, and we have done a lot of work in the thermo plants at Costillac, Obrenovac and Morava. There is great potential in modern mining machinery. We are experienced in that field and are keen for joint ventures. Also high on the agenda is the environment and environmental protection, as well as water treatment. Moreover, Poland combines experience and collaboration to offer modern bridge construction and technology. There are also other areas for developing the food production and processing industry that I think could be important for Serbia & Montenegro and in which Poland has been very successful on the European market. I am very optimistic that Serbia and Montenegro together After just a year in the EU, Poland has already will find a democratic way to coexist, and the kind of model increased our exports in this area by 26 per cent. adopted is up to the republics…if the process is democratic Enormous potential and know-how is avail- Europe would welcome any development in this capacity able in other industries too. For instance, Poland Could you predict what is gong to happen inside the EU? is one of the leading exporters of PCs and Information We think right now that the problem is not the European Technology. Collaboration could be developed in this area Constitution, but rather the coherence of the EU itself. To some because Serbia & Montenegro is well prepared for it with a skilled extent such development has signalled that Europe is entering a labour force, a young society and a relatively good education sysnew era when everything should be reconsidered from the very tem. I think the situation is very promising. beginning. I think the main factor is the shape of the European continent and what should be included in the European strategy. The Are there any specific experiences of Poland in the transicore is the process of enlargement, which should be continued. tion and EU accession processes which could be useful to SCG? Of course, the experience of Poland is unique and at the Regarding Kosovo: do you see any key to solving the probEBRD conference Leszek Balcerowicz, Governor of the National lems of the province? Bank of Poland, deputy Polish prime minister, minister of The province of Kosovo is the most important problem, not finance, father of "shock therapy" and architect of the Polish only for the region, but for the whole European continent. The transformation, held discussions with economists and politicians

BILATERAL TRADE

EU INTEGRATION

KOSOVO SOLUTION

We are always claiming that our relations in the area of economic trade are booming, with the volume increasing by almost 50 per cent in recent years. However, trade is far below the expectations of both countries and is not yet satisfactory. The potential is enormous. Our current bilateral trade equates to roughly €300million, while - as an example of the possible capacity Poland's trade with Lithuania totals almost €1.8billion.

First of all political stability and trust must be built to strengthen democratic institutions. If you provide this quickly and do not delay the constructing of a legislative framework it will bring a safe and economically efficient market-oriented state. If this is done, the invisible hand of the free market and democracy will ensure the system functions. Positive results would be visible sooner rather than later.

It is necessary to adopt a certain methodology to solve the Kosovo problem. Present developments suggest that future status will go through the "exclusion methodology": we are excluding partition; we are excluding new borders; we are excluding any internal ethnic separation of the province. We welcome the progress in confirming the demarcation border between Macedonia and the province, which provides clarity and confirms that the borders are not only on maps. CorD | July 2005

Interview wider international community is heavily involved in this issue, but one should remember that, to date, we have been dealing with the problem of this province for seven years. After anchoring the basic elements of democracy and forming the provisional authority, the time has arrived to commence broader discussions about the Kosovo problem; the future status of the province is the crucial element. Without stabilising the situation in Kosovo all the processes of integration could be hampered, which is why the Kosovo issue is both a regional and Europe-wide problem. We welcome the fact that this process has already started and that the Contact Group, during its recent visits to Belgrade and Pristina, stated that the road to final talks is open. This has been confirmed by the UN Security Council's decision to start the process. Of course, this process is going to be very long and at times it could be very difficult; perhaps some steps could be reversed, but there is a lot of good will and rationality to enter serious talks. The latest U.S. and Contact Group policies on Kosovo insist that there can be no changing of borders, no division of Kosovo and no annexing of the province to another state. How do you view this stance? According to the Constitutional Charter, Serbia is the successor of UN Resolution 1244 and, from this viewpoint, the standpoint of unchangeable borders should be understood in a wider sense: it means all of the borders that are mentioned in this resolution, including, of course, the borders between Serbia and Kosovo. I think it is necessary to adopt a certain methodology to solve the Kosovo problem. Present developments suggest that future status will go through the "exclusion methodology": we are excluding partition; we are excluding new borders; we are excluding any internal ethnic separation of the province. We welcome the progress in confirming the demarcation border between Macedonia and the province, which provides clarity and confirms that the borders are not only on maps. What about the administrative borders between Serbia and Kosovo? The future status should be agreed by all parties, probably in a long process. From this point of view I think the borders which are right now marked, as well as the borders already under demarcation, should be treated as the borders not in dispute, which is very clear. I have never used my passport on the Kosovo border when I am going to Pristina, because this is a visible continuation of our attitude towards the borders. I only use my ID card, which was issued by the Ministry of Foreign Affairs in Belgrade. PM Kostunica and President Tadic have called on the PM and President of Kosovo to join them in direct talks between Belgrade and Pristina. How do you assess this call? We, the ambassadors in Belgrade, have spoken many times to the Prime Minister and President of Serbia, as well as representatives of provisional institutions in Kosovo. And, of course, any kind of dialogue should be closer. At the same time, we understand the difficulties that exist between the respective parties, but direct discourse between Belgrade and Pristina is a fundamental base for the future agreement. Without direct, legally-binding dialogue it is impossible to reach a sustainable solution, which should be elaborated by Belgrade and Pristina. The International Community is only a facilitator. The relationship between SCG within the State Union is also a problem. The European Union favours joint entry in the

CorD | July 2005

SCG: KEY TO THE BALKANS

It is common knowledge in Europe that Serbia and Montenegro are key factors of Balkans stability. They have different histories and different problems than the rest of Europe. This could be verified by political, and I believe positive, facts. The Central European and Baltic countries which were under the domination of the Soviet Union for more than 50 years gained different experiences than the nations of the former SFRY. In 1989, when the Cold War was ending and Europe was dismantling the communist system, the region of the Balkans reinvented the war and went through specific and unexpected instability. The transformation of your system is difficult to compare with any other. In this capacity I think it should be absolutely clear that some special remnants of the past have been overcome, thus clearing the way for further progress. Let me mention that we welcome the significant progress in the widely understood co-operation with The Hague Tribunal, which could be crucial for the important moral assessment of the past, but also for trust in Europe. I believe this problem is more or less on the right track and the new expected development, hopefully, could remove one of these main obstacles. Of course we are giving you all our experience on the table: tell us what you want and we are eager to help and to be involved in to the process. Poland and Spain are going to launch two special programmes to develop modern systems and stabilise the area of public administration by building the capacity of new institutions, which are needed, and building other necessary institutions of democratic life. In this regard we are, and will be, with you.

Union, claiming it is a faster way. What is your opinion on this issue? In the process of transformation and integration, the dynamic of the process is mainly dependent on the individual country. There is no intention to slow down from outside the process which has already started. This is the key element of the modality and methodology of integration. Of course, in a moment it is difficult to predict how this process will conclude, though one can say that the separation could slow down the process. From this point of view each element is individual, but we understand that right now after the recent amendment of the Constitutional Charter, after continuity of the mandate State Union's Parliament you are in better position, let's say, than in February. I am very optimistic that SCG together will find a democratic way to coexist, and the kind of model adopted is up to the republics. Of course, if the process is democratic Europe would welcome any development in this capacity. Clarification of the situation is better than something which provides an indefinite result, because it always diminishes political stability, which is crucial for this region and for Europe as a whole.â&#x20AC;˘

Column

Exchange Rates Harald Hirschhofer, Head of the IMF Mission to SCG

ne of the hottest economic quesmore frustration on the part of the potential tions in Serbia is what to do to ininvestor, the less investment. crease exports and replace imports Fifth, the tax system needs to be transwith domestically produced goods. For parent, stable, and fair. Low tax rates are the population, this will mean higher certainly preferable from the side of the employment, more income and better livinvestors, but that is certainly not the only ing standards. More exports and fewer criterion they focus on. imports will also make the servicing of Labour market flexibility is important as the foreign debt easier and make access to it ensures that this important input can be foreign financing easier and cheaper. efficiently used. Especially start-up firms More exports and fewer imports can be and newly arrived investors are taking seen as two sides of the coin called commany risks. Rigid labour legislation may petitiveness. And competitiveness is unnecessarily burden them, without bringweak. Serbia's trade deficit amounted to ing a clear advantage to employees in 26 per cent of GDP last year and the counaggregate. Actually, I believe there seems to try's exports barely amounted to one be a trade-off: the more stringent the third of the value of its imports. Serbia's labour legislation is, the higher the unemcompetitiveness problem is mainly related ployment rate. to non-price factors rather than price facFinally, shrinking of current public Serbia's competitivetors, such as the exchange rate and wages. spending leaves space for more investness problem is mainly In other words, a depreciation of the ments for infrastructure modernisation. related to non-price facexchange rate is unlikely to reduce the There is, however, sufficient evidence torsâ&#x20AC;Ś In other words, a trade deficit, but may have noticeable negfrom international experience that certain ative implications for debt servicing. measures do not necessarily help to attract depreciation of the So what are the non-price factors that investment or promote exports, and their exchange rate is unlikeneed to be fixed to boost exports and economic impact is uncertain at best. ly to reduce the trade make domestic production more competUnfortunately, those very measures seem to deficit, but may have itive? Two stand out: investment environappeal to some politicians and lobbying noticeable negative ment, and labour market flexibility. groups. Actually for some economic actors, implications for A good investment environment is the benefits of such measures can be quite important because new resources and high, while they really do not contribute to debt servicing. skills are required to update the capital higher growth. stock, infrastructure, and human capital: From the side of taxation and tariff all those have suffered from neglect during the last two decades. structure, there is no need for too generous tax incentives (such International experience has taught us a few lessons about as permanent tax holidays or waiving all taxes). As mentioned how to increase investment activity, especially foreign direct before, moderate income and corporate tax rates, and efficient investment, which not only brings financial resources to the and fair tax enforcement will do the trick. Other often tried country, but also technology, management ideas, and, hopeful- "shortcuts" to strengthen competitiveness which do not necesly, strong international distribution channels. sarily work well include special institutions or agencies for First, macroeconomic stability needs to be sustained with export promotion and budget subsidised export lending and sound, predictable and stable monetary and fiscal policies. free tax and customs zones. The simple explanation is that Second, property rights and private contracts need to be pro- these operations create market distortions. Distortions are very tected by a well-crafted legal framework and an efficient judici- easy to create, but very hard to remove once these are in place. ary. The rules of the game need to be defined, in some cases by Distortions prevent the economy from achieving its potential specially created regulatory agencies, such as in the area of and thus reduce sustainable employment growth. The fiscal Telecommunications. impact of such schemes can also be very large, either in the Third, the transfer of state and social-owned assets to the pri- form of revenue losses in the case of export processing zones, vate sector ensures a clear alignment of incentives and thus or in the form of contingent liabilities from badly designed more efficient capital allocation, less corruption, and a higher guarantee schemes. return for the economy from the use of these assets. This can be The Serbian Government has outlined an economic reform done either through privatisation or, if this fails, through the and adjustment programme which recognises most of the bankruptcy process. above-mentioned international lessons. The challenge now is Fourth, red tape needs to be cut to reduce barriers to entry for to implement this programme as decisively as possible and new companies and entrepreneurs. The more licenses and avoid the siren calls of sometimes popular, but ultimately risky, approvals are needed, the more risk for petty corruption, the measures on the way. â&#x20AC;˘ CorD |July 2005

H.E. Carlos A Martese, Argentine Ambassador in SCG

founding nation of the Mercosur common market organisation, a current member of the UN Security Council (until December 2006) and one of the most culturally diverse countries on the planet, this month we spoke to H.E. Carlos A Martese, Argentine Ambassador to SCG, about the development, collapse and regeneration of this important global player. Firstly addressing relations with SCG, Ambassador Martese said: "We have close contact with Serbia & Montenegro, as we used to have with the old Yugoslavia. There have been, and still are, very close bilateral and multilateral relations between Belgrade and Buenos Aires. We share many points of view of the world's political and economic situations and there has been a tradition of close co-operation in many fields of reciprocal technical and scientific interest. "It must not be forgotten that big Yugoslavian communities were established in Argentina in the late 19th and early 20th centuries, as well as soon after World War II. Thus, we have many second, third and even fourth generation Argentineans with Yugoslavian backgrounds. That fact helps our two countries to work together in many areas."

By Mark Pullen, Photo Andy Dall

Argentina is the world's eighth largest country, with a total land area of three million km2, and has enjoyed independence for almost 190 years. Once one of the richest nations in the world, Argentina suffered economic collapse in 2000, when the state's inability to pay debts and maintain the fixed dollar-peso exchange rate caused investor and consumer confidence to plummet. The pesos peg to the dollar was abandoned in 2002 and real GDP fell by 10.2% in the same year. However, the country is now on the road to recovery. 34

CorD | July 2005

Do those communities consider themselves as Yugoslav Argentines, or are they fully integrated and simply Argentines of Yugoslav ancestry? Argentina received waves of immigrants from the late 19th century, which were welcomed for economic reasons. These people fled a Europe that was not in the best of conditions and was seemingly constantly on the verge of conflicts, while Argentina was developing well and was fairly richâ&#x20AC;ŚThe Argentine Constitution, in force since 1853, encouraged the promotion of European immigration, though the door was open to everyone. A lot of these immigrants were not Catholics. In fact, many of them were not even Christians. So, in 1894 and 1899 the congress passed two essential laws - primary lay education was made mandatory nationwide; Civil Marriages were introduced. Thus the Catholic Church, which was and is very strong in Argentina, lost its monopoly and all the waves of immigrants that came to Argentina at the turn of the 20th century - 11 million in all between 1880 and 1930 were legally integrated regardless of race, creed, religion or ethnic

Interview origin …Thus, in answer to your question, Argentine's of Yugoslav origin are Argentinean and feel themseles to be part of the Argentine nation, and are absolutely integrated. Does Argentina continue to encourage immigration? When my wife and I recently went back to Argentina I was surprised to learn that, even after the economic crisis, we are still receiving immigration from bordering countries…because income levels are the most attractive in the region…Even though the unemployment rate is particularly high for Argentine standards - 12% - there are still a lot of low-productivity jobs that Argentines do not want to do. Moreover, after the devaluation [of the Peso] and the economic crisis, when life in Argentina became reasonably cheap, waves of pensioners from countries with well-paid pensions began to choose to settle in Argentina. It's a good way to save money and Argentina is quite well developed, while Buenos Aires, I can say, is among the world's five most beautiful, modern, metropolitan cities; and today it is very affordable. I see this as a good sign... How would you say that Argentina was recovering from the economic crisis? From my personal point of view, I believed that the crisis was going to be very deep, in terms of inflation, employment and the value of our currency…Thank God, I can say that I was absolutely mistaken. It seems that Argentine society learned from past mistakes and turmoil and the country was not caught by panic. So, the political situation was manageable and once it had been managed the economy remained quite stable. There wasn't an extremely high rate of inflation: considering that the devaluation was from 1 dollar - 1 peso to 1 dollar - 3 pesos, the inflation didn't follow this path at all. The export community reacted very well: we set new records in exports in 2003 and 2004, with 2004 generating 34billion in exports - an outstanding figure for Argentina. In 2002, imports fell dramatically…But we were forced to declare default on the foreign debt, which was the worst experience and our main economic problem. In response, the Government wisely reduced and redistributed expenditure towards social problems and social projects in order to restructure the social situation for the future…This meant creating as many real job opportunities as possible, which was a major achievement, and establishing a temporary network of social assistance wherever needed. Last year imports grew more than exports. In principal, this may appear to be a dangerous sign, but it also means that the Argentine economy is catching up and economic activity is growing: most of these imports are industrial equipment, goods and spare parts, raw materials for manufacturing, etc. I am not claiming that we have solved all the problems, but things are improving. The other important achievement of the Government was the restructuring of the foreign debt. It wasn't easy at all because we are talking about $130billion: perhaps the biggest foreign debt in the world’s economic history. This was the result of economic mismanagement and irresponsible lending by international creditors. I don't blame the creditors, but they were a little bit incautious when continuing to lend to countries that were already beyond their financial repayment capacity. In any case, 76 per cent of this huge debt was restructured quite successfully a few months ago and, recently, the bonds started to be allocated. We have to find a way of handling the remaining 24 per cent by reaching some agreement. But Argentina is going to pay as much as capacities allow. President Kirchner made it very clear to the multilateral credit organisation that Argentina is eager to honour its financial obligations, but we must be allowed to grow first. We cannot pay by strangling our people...It would simply cause another crisis and cause another government to collapse…This has been the basis for negotiations and the IMF understands the position of Argentina. From a regional perspective, how important is it that Argentina recovers economically and maintains stability? It's very important, and I'll explain why. Since 1995 Argentina,

along with Brazil, Paraguay and Uruguay, has been a member of Mercosur, which is the South American free trade area and custom union that has been evolving a political orientation. There are also non-members associated with Mercosur. Two countries that are very closely associated with Mercosur are Chile and Bolivia…Just recently, in the last two or three years, Peru, Venezuela and Ecuador have become associated with Mercosur, thus enjoying the advantages of the free trade area. Mexico is also assessing the possibility of joining Mercosur as an associated member. So, Argentina's stability is very important for the region in the context of Mercosur…Moreover, Argentina has a regional projection that is as strong as Brazil's, because we are not talking only about trade or population, but rather also about productivity, technological advancement, scientific research and so forth. In these areas Argentina is undoubtedly a leading country in South America and, despite all the

H.E. Carlos A Martese: I don't blame the creditors, but they were a little bit incautious when continuing to lend to countries that were already beyond their financial repayment capacity. recent problems, Argentina maintains such a position. Do you think Mercosur has the genuine potential to be similar to the EU in terms of pan-continental political and economic unity? This is the aim, and we believe that using the EU's experiences will allow the building of our common market to be easier and quicker. However, there are obviously a lot of asymmetries between Brazil and Argentina that have to be taken one by one. It's not an easy task, but the most important thing is that both governments have decided that Mercosur is not only a trade and economic integration organisation, but is also a common political achievement. So we are going to exert whatever effort is required for as long as it takes and all the members have agreed that Mercosur must function as well and as completely as possible in the future… The ideal deadline to have Mercosur working fully as a common market was set at 31st December 2005. We are aware that this deadline will be impossible to reach, but it doesn't matter if it takes five or ten years longer. We are going to negotiate until Mercosur functions fully and without disputes, akin to other regional bodies like the EUnion. CorD | July 2005

Interview Do you think the interdependence of Mercosur, coupled with the democratic transition process that began in South America in the 1980s, has created more solidarity among the countries of South America? Most definitely. The installing of democratic systems over the past 25 years in all the countries of Latin America has made the creation of Mercosur and regional integration much more feasible. However, Latin America, from Mexico to Tierra del Fuego, is a unique region in the world because the whole area was colonised by only two countries: Spain and Portugal…This ensures that all the countries of Latin America have a lot in common. We have the same roots and are all, in some way, the heirs of Spain and Portugal, with their assets and attributes…Also, with the exception of Brazil, we all speak the same language, and even most Brazilians speak some Spanish or Portugnol (a Spanish-Portuguese hybrid language). So, Latin America is a unit of around 20 countries that are naturally linked and have traditional solidarity. We have the same social systems; we more or less all fought the war of independence against Spain together at the end and there is a brotherhood amongst us. There have been conflicts between us, but we have too much in common for any dispute to continue for very long…

The installing of democratic systems over the past 25 years in all the countries of Latin America has made the creation of Mercosur and regional integration much more feasible.

While we're talking about conflicts and disputes, Argentina still has unresolved international territorial disputes, namely with the UK regarding the Falkland Islands / Islas Malvinas, and other Southern Atlantic Islands. Has the Government defined strategies aimed at solving these disputes in the foreseeable future? First of all, I would like to talk about our relationship with the United Kingdom, which is very old, very deep and very wide. Of all the Latin American countries, Argentina has always been the most open to the cultural influence of the UK…former British colonies America and Canada are no match for us in football, rugby, polo or hockey. Thus, purely from a social point of view, Argentina has had a very active, very well received British community for a very long time, which is now completely integrated. Another noteworthy point is that a large number of our high ranking naval officers who fought in the Malvinas War had British surnames. Moreover, the United Kingdom was the first country in the world to recognise Argentinean independence in 1825 and a British bank was the first to grant Argentina a loan in that same year. The British also supplied Argentina with indirect assistance in our war of independence and over the years there has been very close economic co-operation between Argentina and Great Britain. British investments in Argentina have been huge and the UK has been our best market for meat and a large number of other commodities for a long, long while. These traditions still continue, with British companies today heavily invested in Argentina and Britain acting as an important ally of Argentina within the EU for negotiations on the access of our goods to the market. So, we definitely have lots in common with the UK and our relationship is extremely positive. The Malvinas and other islands are territories over which Argentina claims sovereignty for a number of reasons. Firstly, because these islands used to belong to Spain and there is a principle whereby the lands of the colonial powers should be directly handed over to the independent country formed after the departure

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of that colonial power. Secondly, because the islands were seized by the UK in 1833 and the Argentine garrison was expelled. And thirdly, the islands are 500 kilometres from Argentina and 12,000 kilometres from London. So, there has been a claim for the sovereign right of Argentina over these islands to be respected since 1833, which has been, and is, supported by the whole of Latin America, as well as the EU and the Rio Group...and the Mercosur countries made a special declaration encouraging and reasserting the sovereign right of Argentina to govern those islands…But the most important thing is that there were many international resolutions, before, during and even after the conflict, calling for both countries to sit down and peacefully negotiate an agreement. This is what is going on and, sooner or later, the issue will be solved. My perception is that these islands could have been important to NATO during the Cold War…but today I think that they are merely a colonial dependent for London…

A more regional and more contemporary, but presumably much more minor, difference of opinion has arisen between Argentina and Brazil with regard to the reform of the UN. Argentina is openly supporting Model B [which envisages the same number of permanent members, but 25 temporary members], while Brazil is supporting Model A [which calls for an increase in the number of permanent members]. Indeed, Brazil has even been suggested as a potential permanent member. Are these different stances causing problems? I don't want to say that we are against this or that country. We have good relations with all the members of the G4 [proposed new permanent members, Germany, Japan, Brazil and India]…Our relationship with Brazil is more than a brotherhood. In all aspects, except football, we are working together towards mutual integration. However, we support deep, comprehensive UN reforms. This organisation is 60-years-old and, as the world has changed, we believe that this organisation should change…But some things should be untouched: consensus, regional groups, rotation and the permanent members of the Security Council, among others. This is why we support Model B and the presence of more non-permanent members, which could bring about more accountability, transparency, legitimacy, credibility and, above all, strengthen democracy within the Security Council. You described Argentina's relationship with Brazil as more than a brotherhood. As such, has Brazil used brotherly diplomacy to encourage Argentina to change its stance? Yes, of course they have, because our presidents and foreign ministers are in daily contact. Regularly, and on very short notice, Minister Bielsa is going to Brasilia and Minister Amorim is coming to Buenos Aires. The relationship has become very, very close. And they addressed us with this issue, explaining their reasons and their position, but, without any harm to our bilateral relations, we are supporting the other model. I don't think they can be displeased about something like that, or be dissappointed with Argentina at the end if Model B is adopted. Still, I personally perceive that the present permanent members may not welcome new permanent members, not yet at least.•

Interview

CONTROLLING Dragan Bisenic, Photo: M. Milic

I first came to Yugoslavia 45 years ago as a tennis player. It was a difficult trip, almost an adventure. Today I arrived in comfort and I'll be in Berlin this same night where I have a meeting scheduled with my partners. We may take such things for granted, but this modern ability to travel freely is actually a great accomplishment. The opportunity to move around and communicate without hindrance makes our world so very free. These freedoms had to be fought out socially and technologically. Information technology is a sublimation of both of these aspects of freedom, but it is also a reminder that we constantly have to foster this world and develop it. I am sure that none of the younger generations would like to travel the way I did in Europe 45 years ago - so said Heinrich von Pierer, CEO of leading software development corporation Siemens, speaking to CorD magazine.

Heinrich von Pierer, CEO Siemens

einrich von Pierer took the helm of the Siemens Corporation 13 years ago. During that time he has managed to transform Siemens into a global giant that operates in almost every country in the world, thanks to a unique business philosophy based on human resources and education. "One must never neglect what people want. We need their support in everything we do. The outcome of the plebiscites in France and the Netherlands are to some extent the consequence of neglecting the desires of citizens", von Pierer said. "Sometime in 1992 Croatian President Franjo Tudjman came to me and, without wasting any time on chit-chat, said "I came to say that you should take over the Rade Koncar factory. It's yours anyway". I had to refuse the offer. We don't work that way. We find it hard to open new production facilities in

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the region, because we already have enough of them worldwide. There are possibilities to start production in existing facilities after adjusting them to meet certain needs and standards. These factories have to be furnished to compete on the world market and not just in the region. Siemens is the world's biggest software producer, employing over 30,000 software engineers in many countries of the world. We at Siemens feel that there is an excellent opportunity here to co-operate with experts in the field of software engineering. We can venture into restructuring existing factories, but only if they can justify the investments by attracting orders." What are the advantages of this region? What I find most important is that there are educated people who can work in areas of software development that are of interest to us. I discussed this issue with a number of Serbian politicians, including the Prime Minister, and another important issue is contracts. It is quite rewarding to work with software and engineering capacities because the situation with human resources here is good. The people are well trained, they work longer hours and are highly motivated. We perform well in the region, especially in Romania.

Interview

YOUR DESTINY What kind of results do you achieve and where do your priorities lie? We built our market position by creating new values. We operate in the region mainly through two centres - Austria and Greece, because we simply could not work in all directions. We have around 6,000 employees and are satisfied with the results. Our priorities are in Romania, Bulgaria, Slovenia and Croatia. Serbia is not among them. Is it because the countries you listed are closer to EU membership? We perform well in Serbia, but there is a connection with the fact that these countries are closer to EU membership, although this is not a parameter of some importance to us, nor should it be a prerequisite for you to move ahead. If I lay down our expectations, you will understand why Serbia is not among these countries. We are primarily concerned with physical security. Our policy is to work in stable environments worldwide. Legal security is also important, but as a big corporation we do not wait for someone else to come to our rescue. We help ourselves. For mid-sized and small companies,

and the German economy invested without knowing when or whether these countries would become members. We anticipated new values. The same can be done in other countries. You have to be the ones that control your destiny, or someone else will control it instead. You have invested in post-conflict states. How do you select your managers in these countries and what advice would you give to countries recovering from conflicts? These people are carefully chosen, after considering religious, ethnic and cultural factors - and they do not necessarily

"Sometime in 1992 Croatian President Franjo Tudjman came to me and, without wasting any time on chit-chat, said "I came to say that you should take over the Rade Koncar factory. It's yours anyway". I had to refuse the offer. We don't work that way however, the latter is crucial. They will not enter a market that lacks legal security. Three more issues are of value to us: advancing privatisation, a solid infrastructure and education. Education and knowledge are the pillars of your progress. They are beginning to acknowledge this in Germany as well. In Germany 40,000 engineers graduate every year, but in China ten times as many get their diplomas. In many countries there is a philosophy of IT idealism a belief that IT can salvage the economy. What is you opinion? IT is important for all countries. Modernisation can help them move forward in every aspect of social development and satisfy their needs. If we are talking about a useful piece of advice for the region, we have to begin by assessing the general situation. If we have interest in the region and unemployment is high, the situation is more complex. Despite all this, we do not have to wait for EU enlargement or financial privileges to make plans and start projects. What is your vision on the future of EU enlargement and the consequences of the French and Dutch plebiscites on this process? We should not focus all our attention on the enlargement issue and wait for it to happen, and if it fails to do so within expected deadlines just drop our heads in despair. Enlargement does not have to be the only vehicle for investments. In the Czech Republic, Slovenia and Hungary, Siemens

GLOBALISING GAINS In his 13 years at the helm of Siemens, CEO Heinrich von Pierer designed and directed a major transformation. Taking this German icon from a technically superb but slow-moving industrial giant to a disciplined yet nimble multinational has posed enormous challenges. Since 1992, Siemens has revamped its portfolio of businesses, expanded its reach into 192 countries, and created a more local-market-driven culture, gaining recognition as one of the best-managed and most competitive companies in the world. The Siemens CEO has made dramatic advances in portfolio restructuring and competing with GE, as well as conquering globalisation, which he said truly started after the fall of the Berlin Wall and required the company to dramatically change to counter the resulting pricing pressures across all of its businesses.

CorD | July 2005

Interview come from Germany. One central source of conflict is hopelessness, or the feeling or being excluded from growing prosperity and from the benefits of globalisation. Business cannot bear the financial burden, not even to a limited extent. As we all know, the process of securing financing can be complex and time-consuming, and sometimes frustrating as well. But in post-conflict situations, speedy financing is critical to reconstructing a viable society. Therefore, my message is that financing instruments, including guarantees and public/private partnerships, must be made available as quickly as possible. Nothing is more dangerous to the peace-building process than a lack of action. The next factor is post-conflict planning, above all, timely planning. If at all possible, post-conflict plans need to be devel-

If we have interest in the region and unemployment is high, the situation is more complex. Despite all this, we do not have to wait for EU enlargement or financial privileges to make plans and start projects oped at the same time as military or conflict-resolution strategies. There must be a seamless and fast transition. We have to be realistic. This means we cannot always expect all procedures to run in the standard forms that we know and are familiar with. For example, there is the bidding process. Extraordinary situations often demand extraordinary solutions, as well as fast and uncomplicated decisions. One must accept that this is sometimes more effective than following the usual game rules, because time is of the essence. So my fourth message is to plan as much as possible in advance, but not to waste critical time in unique situations by relying on overly complex, overly bureaucratic and time-consuming solutions. None of the factors I have mentioned are effective without the fifth: visible progress. People must personally see that progress is being made, that their own lives are improving, that they can begin to support their families again, not with extralegal activities, but as part of a new civil order. That is essential for regaining trust and long-term social stability. My final message, therefore, is that we have to give people a future, a future that must be quickly tangible.â&#x20AC;˘

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WORLD VISION The concept of "A Passion for Ideas: How Innovators Create the New and Shape Our World," edited by Heinrich von Pierer and Bolko von Oetinger, sounds interesting enough: According to the book jacket, it "gathers together a stunning list of today's thought leaders to shed light on how 'the new' is discovered. Via interviews and essays, an international group of innovators provides key insights into methods to move organisations forward in an ever-changing climate." It is definitely inspiring. A Passion for Ideas is divided into five major sections: The New and the Known - The focus of this opening section is on freeing yourself from what is known, "the old familiarities that required such energy, a motion and dedication when they were created but which now perversely represent the strongest obstacles to change."; Us and Them - Essays in this section discuss globalisation, and how we must adopt it as part of our corporate cultures. It also explores how relationships that thrive on research exchange and "osmosis" between ourselves, our industries and everything else "outside" our world and our comfort zone will become the norm in the years ahead; Freedom and Organisation - Essays in this section explore the natural tension that exists between creative individuals and the freedom they need to pursue their dreams, versus the organizational constraints imposed by the companies within which they work; The Individual and the Environment - Essays in this section explore how geniuses function within complex environments, and the factors that are necessary within organizations in order for innovation to emerge; More and Too Much - Organisations around the world share they believe that innovation and creativity are, for all intents and purposes, virtually unlimited. The essays in this section ask: What if the opposite was true? What if businesses and researchers have begun to reach the limits of what is theoretically possible regarding innovation and new product ideas? Each section of the book contains several essays, plus Q&A-style interviews with with innovative people from various professions and backgrounds. The essays in A Passion for Ideas vary from fairly good to excellent, but the interviews with key creative people sometimes left me scratching my head, asking "What does this have to do with helping organizations gain insights on how to transform themselves?" One of the highlights of A Passion for Ideas is an essay entitled, "The Virtues of Corporate Disorder" by John Kao, which is very insightful and thought-provoking. Kao is one of my favourite innovation authors, and this essay doesn't disappoint. Another fascinating article is "Learning Communities: Toward a Triadic Differentiation of Learning Networks," by Peter Senge and Claus Otto Scharmer. This article addresses the need for businesses to become learning organizations. In it, the authors summarize the findings of the MIT Centre for Organisational Learning, which formed a learning consortium in 1991 to develop best practices and recommendations for tackling this challenge.

Interview

Miodrag Stojkovic, Europe's Leading Geneticist

CLONES & CURES By Dejan Berkovic, Photo Stanislav Milojkovic

A team of British-based scientists at Newcastle's Genetic Institute, led by Miodrag Stojkovic, from Leskovac, southern Serbia, announced in June that they had successfully cloned three human embryos from ten rejected egg cells. The Newcastle team has become the first group of scientists in Europe to clone a human embryo and, thus, what was until recently considered to be science fiction has become science fact.

eanwhile, in South Korea, genetic experts have taken the process a step further by managing to separate stem cells from cloned human embryos, which will soon enable thus far incurable diseases - such as diabetes and Parkinson's disease - to be cured. As has become the norm with such scientific advancements, ethical debates have sparked and worries about possible abuses of the technology are again to the fore. Anti-cloning protestors have even

CorD | July 2005

gone so far as to ask what would have become of human civilisation had such methods of cloning been accessible to the likes of Adolph Hitler. Speaking of the significance of this historic scientific advancement, Doctor Stojkovic explained to CorD: "There are stem cells which are genetically unique to one patient, i.e. the genetic make-up of the stem cells is identical to the genetic make up of the patient. That means that if those stem cells are transplanted back into the patient they will not be rejected because of an immunological reaction, as the patient's body recognises those as its own. "We should also bear in mind that cloning produces stem cells which carry some genetic disorders. Thus one can transfer that disorder from the patient to a Petri dish and study the patho-genesis, the genesis of that illness, under controlled laboratory conditions. In that way we can find the cause of the illness and attempt to destroy it at the very beginning of its origin, and not just treat the symptoms of the illness." What was your initial thought when you saw the first cloned human embryo in the test tube? That it works. That we are on the way to improving the technique and to identifying which egg cells we need for future work. I thought that this was only the beginning, but a very promising beginning. While you hold the human clone in your hand, do you feel like God himself and do you think that the destiny of human civilisation is in your hands? No, neither one nor the other. I did not feel like God, nor did I feel

Interview that I held the destiny of civilisation in my hands. I am a scientist who is trying to implement one technique in treating illnesses in modern medicine. That does not have anything to do with playing God or playing with the destiny of civilisation. What is your next step? We have a licence from April this year to use the cells of diabetes patients to clone embryos in order to study that illness under laboratory conditions. It seems that research in this field is moving forward much faster than it was ever possible to imagine. It is only nine months since we received this permit. Nobody expected that it would be possible to obtain a human clone this quickly. On one hand, that is good because we will manage to bring stem cells from the laboratory to the patient as soon as possible. Concretely, that means that the path to the therapy of different illnesses has been significantly shortened. Instead of twenty years, as we were counting on, that will happen in five, perhaps a maximum of ten years. And we are talking about the most various illnesses, including, for instance, those affecting the spinal cord. That is what positively unsettled not only the public, but also the scientists around the world. That is that what they called spectacular.

These advances are only the initial steps. What would be the next ones? That is so-called tailor therapy, having the therapy tailor made. If the patient needs nerve cells, then you have to manipulate those stem cells to tranform into nerve cells. If the patient needs pancreas cells, you have to convince those cells to become pancreas cells. That is the problem we are currently working on - how to convince the stem cells to be those which are needed for a specific ailment. That is still the laboratory phase. When will the practice of implementation start? It is very difficult to answer that question. Last year I said in ten to fifteen years. I have to revise this statement because nobody in the world believed in such a quick penetration or such a rapid development in the science of stem cell biology. That means that within the next five to ten years we will probably be witnesses to the first clinical treatment of patients with human stem cell embryos." Those patients suffering from incurable illnesses are having their hopes lifted. Will a hundred per cent cure be possible? It depends on the illness and on how stem cell therapy will be implemented. You can very successfully treat some illness using the 'trump' stem cells which were not obtained from the embryo and, on the other side, the embryo's stem cells will be needed for curing those

When will the world get its first human clone that's older than 14 days? I hope never. There is no medical need for cloning human beings older than 14 days. That is, as far as I know, forbidden in Serbia, the

I did not feel like God, nor did I feel that I held the destiny of civilisation in my hands. I am a scientist who is trying to implement one tech nique in treating illnesses in modern medicine. same as here in Great Britain. No serious scientist wants to carry out reproductive cloning and that does not even enter my mind. What would that mean for civilisation? That would throw a negative light on all serious scientists who use this technique for curing illnesses and, on the other hand, would also be catastrophic for the human being who came into the world as a clone, if it ever survived. Reproductive cloning is connected with unwanted consequences, such as various deformations, and there is no reason to play with the cloning of human beings. You have said that your team is at the very beginning compared to the South Koreans. How far have they progressed? In the last two years they have shown applications in modern medicine and curing human illnesses. They have already isolated stem cells from cloned embryos which correspond to the patient's profile. They differentiate them into various types of cells. Do you believe that the future of the world will look like the scenes from the film Matrix and that it will be characterised by factories for growing human clones? I like that film, but those are ideas which come from Hollywood, not from scientific workshops. All that is fantasy; this is about treating illnesses and not creating a baby factory. Experts in Newcastle used the egg cells of women which were rejected after artificial fertilisation. Soon they will use the egg cells of patients who have diabetes, heart and liver problems, as well as various illnesses linked to the nervous system and the brain, such as Parkinson's or Alzheimer's, or in cases where the spinal cord has been damaged. Scientists from South Korea, led by Doctor Woo Suk Hwang, went a step further. They managed to clone the human embryo last year. In June they stated that they had managed to separate the stem cells which correspond to the cells of type one diabetes patients and patients with damage to the spinal cord.

LONG WAY FROM LESKOVAC "I was born in Leskovac 40 years ago, and I completed primary and secondary medical school in the district. After the army I went to Belgrade, where I graduated at the Veterinary Faculty in 1990. I worked for Leskovac-based company Zdravlje until February 1991 when I went to Hamburg. There I worked as a medical technician in the skin department where they treated people with aids, skin cancer and diseases of unknown origin. I moved to Munich in 1993, where I validated my veterinary degree and at the same time took my doctorial dissertation, which I completed in 1996. Since 1995 I worked as a science associate at the Munich University Veterinary Faculty. I stayed there until 2002 and I was working on animal embryos and cloning. In the same year I completed my MA and went to England for one year. After the successful isolation of stem cells from fertilised embryos I was offered an unlimited place, where I remain to this day", said Dr. Stojkovic.

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Interview illnesses. There is proof that human embryo cells can be used for curing heart diseases and Parkinson's, as well as injuries to nerves and the spinal cord. That has been proven on animals. However, the difference between humans and animals is enormous. How that will work with humans remains to be seen. We are still not able to do the first cell transplants because we first have to create the conditions to get stem cells which were not in contact with animal components.

I cannot imagine that somebody would be so irresponsible as to clone human babies and human beings. In places where you have regulations and where the law is clearly specified, that is not only science fiction, but it is also forbidden. In other places where there are no regulations, of course anything is possible. Serious scientists who deal with this subject have only one thing on their mind, and that is curing human diseases.â&#x20AC;˘

While these latest medical advances bring fresh hope to many afflicted people, there are many opposed to the entire notion of human embryo cloning, the most vocal being the world's religious leaders. Nancy Regan, wife of late U.S. President Ronald Regan, who died of Alzheimer's disease some months ago, has requested that the U.S. Congress approve stem cell research to ease the suffering of those suffering from Alzheimer's and other illnesses. Embryo research has been so controversial that it was even an issue raised during the U.S. election campaign last autumn. The ruling Republicans are opposed to the financing of the research, though many Republican members support stem cell research for therapeutic purposes. The issue was again debated in the U.S. Congress during June. Judy Norsigian, Executive Director of the Boston Women's Health Book Collective, has publicly stated that the cloning of human embryos represents a risk to female health because the egg cells are, of course, being taken from women. However, Dr. Stojkovic explained that experts from South Korea last year used the eggs of female volunteers who were included in this scientific project and who had previously received harmful hormonal treatment. According to the doctor, the team in Newcastle uses only those cells which would otherwise be discarded.

There is no medical need for cloning human beings older than 14 days. That is, as far as I know, forbidden in Serbia, the same as here in Great Britain. No serious scientist wants to carry out reproductive cloning and that does not even enter my mind. In addition to fears for female health, there is also an ethical dilemma, which is being championed by religious bodies. Church organisations are wholeheartedly opposed to cloning research, stressing that the embryo is a living human being. According to Dr. Stojkovic: "The question is whether you will keep that embryo which does not have any chance because nobody wants it, and use it to treat millions of patients around the world. For me the ethical dilemma stops there, because I know that this embryo can help people, that nobody wants that embryo and that if it is not used it will be thrown away. I am sure that one day when those stem cells are used for medical purposes, that ethical dilemma will no longer exist." How would you comment on the possible abuses of this scientific power; more precisely, how could the eventual cloning of human beings affect civilisation? Such speculation was stoked by the cloning of animals. The famous sheep Dolly was cloned in 1996. Seven years later it was euthanized, but the polemics did not stop. Brigitte Boisselier, the scientific director of Cloneaid, stated recently that the first cloned baby had been born, a girl called Eva, then the second one, the clone of a Dutch lesbian, then the third one, but nobody was able to confirm that. Italian doctor Antorini and American Panos Zavos announced that they would soon be cloning babies. Therefore, the scenes from Woody Allen's film the Sleeper from 1973 with attempts to clone Hitler from the cells of his preserved nose, or from the Boys from Brazil, could become a reality. Opponents of cloning ask what the world would be like if Hitler had managed to create an army of indestructible soldiers, or what will happen if this method becomes available to some future dictator.

CorD |July 2005

MOTHER'S JOY The news that Stojkovic managed to clone the first human embryo in Europe was accepted with delight in Leskovac, but also with a degree of sorrow because their countryman did not do that in his country. Leskovac local assembly president, Goran Cvetanovic, who recently awarded Stojkovic with the title of Honourable Citizen of Leskovac, said that the people of Leskovac are proud of their countryman and are expecting him to transfer part of his work to his home town. The local authorities granted Stojkovic one of the city houses in Hisar where he will, as he announced, open a clinic for artificial insemination. The family of the famous scientist, his mother Teodora, sister Mira Andjelkovic and her children, celebrated the success of their son, brother and uncle with their friends. "Here I am sitting and crying with happiness. I am ill, but I became even sicker with happiness when I heard that my son had achieved his aim. My neighbour told me a couple of hours ago, he did not phone, he was probably busy. They told me that he was on all the world television stations. I know that he will find medicine for all those serious illnesses. He is dedicated to that", said Teodora through tears of joy, hugging Miodrag's photograph. Several months ago Stojkovic announced that he will include Serbia in his projects: "I have already contacted some gynaecologists and obstetricians and realised that there are conditions here. All that is needed is the premises for such an institute and people who want to work. That would be the first institute for stem cell research in the Balkans. I would spend the majority of my time in Serbia and work with our people on that process and train them, but of course I would not neglect Newcastle. I would, of course, do everything without money, because I am already paid enough", explained Stojkovic, whose wife Petra also works in his team.

Interview

his month we spoke to Pitic about the changing political climate in Serbia & Montenegro, and the country's potential to hasten the Euro-Atlantic integration process. "It's positive that, finally, we are no longer the rarity of the area regarding the Feasibility Study, because Serbia & Montenegro was the only country left who hadn't received that confirmation. Pitic explained that the positive feasibility study equates to "the door to the EU opening, which was by no means simple. One slightly concerning fact is that the subject of the EU was nonexistent in Serbia during the last year. Thus, that represents a year lost. "The subject of the EU only came to light after the possibility of the Feasibility Study being positively received arose." "Moreover," noted Pitic regarding the praise for the positive Feasibility Study, "it is not fair that a great number of parliamentarians and government officials gave exclusive credit [for the positive Feasibility Study] to the current Government. It's not a question of vanity, but all of us who were, and are, in the zone of governance have to learn to accept the good things done by the preceding government. That is the only way we can ensure the continuity of positive political actions". The conditions of the Feasibility Study were more or less fulfilled two years ago, considering that ICTY co-operation was not a condition. So, why didn't we receive a positive evaluation back then? At that time the question of the Serbia & Montenegro Action Plan was to the fore, and the unresolved issue was the now infamous case

I have to be fair to PM Vojislav Kostunica and admit that he showed great respect for the moves of the previous governmentâ&#x20AC;Śincluding the vision of late PM Zoran Djindjic Goran Pitic,

Former Serbian International Economic Relations Minister, Economics Professor, Freelance Investment Consultant

By Jelica Putnikovic, Photo Andy Dall

Goran Pitic is a widely respected political economist in both local and international circles. Having served the former Serbian administration as Minister for International Economic Relations, he has since moved away from the front line of politics and returned to lecturing at Belgrade's private Economics, Finance and Administration Faculty, as well as acting as a freelance investment consultant. 46

CorD | July 2005

of harmonising those 56 agricultural products [with Montenegro]. We were requesting that the EU conditionally approve the Feasibility Study - as was done in other cases, such as Macedonia and Bosnia & Herzegovina - and allow us space and time to harmonise. We warned them [the EU's representatives] that Serbia and Montenegro's economic interests significantly differed on those issues. At that juncture the EU would not hear of such flexibility which was, luckily, demonstrated when this new government commenced their mandate. Everything else was ready for us - the previous government - to receive the positive Feasibility Study. I have to be fair to PM Vojislav Kostunica and admit that he showed great respect for the moves of the previous government regarding this issue, including the vision of late PM Zoran Djindjic. Do you think the current Government will utilise the chance provided by receiving the Feasibility Study? The European Union has already evaluated that two issues have advanced: co-operation with the ICTY and SCG relations - with the implementation of the 'twin-track' approach. What this Serbian Government is missing is the strong message that EU accession is the only integrative model for all Serbs. It is of utmost importance that we accept this notion as something that will guide and manage the transitional and reform processes. The previous administration left behind a strong organisational base around the ministries. Within the ministry for International Economic Relations, which I headed, was a sector devoted to European integrations. The current administration's negotiating team is showing that integrations are primarily perceived through the political zone [as opposed to trade and commerce]. Professionals should be negotiating; and here the ministry of trade is not included at all, despite it being one of the key ministries for details regarding the Stabilisation and Association Agreement. I hope that I will be proved wrong in the coming days, but according to what has been done so far I am not convinced that the continuation of this story will be better organised. And better organisation is needed for the government, but also for the parliament. We require serious improvement of not only economic processes, but also human rights, democracy, political life, etc.

Interview In order to benefit from what is offered by the Feasibility Study result, there must exist a boost in comparison with previous years regarding European integration relations, as well as work on the Stabilisation and Association Agreement. PM Djukanovic has once again announced a referendum on the continuance of the state union. Could the Montenegrin leadership's tactics delay the EU accession process? Unfortunately, we are constantly confronted by deadlines to which we are tied. Sometimes these are of a political context, as is the relationship between Serbia and Montenegro. To a great extent, Europe influenced the state union that we have today; a state union the definition and functioning of which we are still trying to define and establish. Even the possibilities offered by the creation of the state union were not properly utilised. Montenegro has been clear enough that it has no intention of participating in processes which can endanger any of its interests, and Serbia is always a step behind. It seems that even the Constitutional Charter itself was defined in such a way that space was not provided for Serbia to make any first steps in the name of its own interests. So, we shall see if Montenegro will stage that referendum and what will come of that. Their referendum is expected to take place early in 2006. Until that time, it is important that Serbia continues reforming its job market, education system, private sector, banking services, etc. These are all issues that are not related to Montenegro and Podgorica cannot be used as an excuse for a lack of speed in such reform steps toward the EU. The worst elements of the process are the unresolved relationships, the wait for 'D Day' and the hopes that someone else will clear up the situation. For Serbia, these key questions are Kosovo's status, the Constitution and relations with Montenegro. It is crucial that all political parties think about that, as well as about European integration and the necessary cross-political consensus. In your capacity as an investment consultant, how would you assess Serbia's attractiveness to potential foreign investors? Will the receiving of the Feasibility Study contribute to an influx in FDI? It would be beneficial if this government, and future administrations that will follow, thought as much as possible about Serbia's future and devised specific plans for things that need to happen. At the moment a lot of things are happening on an ad hoc basis, based upon the better (or worse) solutions of some ministries and ministers. My primary criticism of this government is that there is no united voice and, instead, we hear only from a few ministers talking about what is going on in their respective ministries. Exactly how certain policies will be realised in real terms is mostly dependent on the will of certain political parties. This is the biggest problem of the Government, because they are unable to force the 'package' of European integrations, which is the goal towards which we aim when developing policies and undertaking all activities.

Goran Pitic ing of direct 'green field' investments, though there is serious interest in the banking sector. The arrival of banks is very positive and will influence competition. However, I think domestic banks should have been afforded the time and space to merge or find strategic partners on their own, because certain capital has been invested in those banks. The National Bank of Serbia should offer the banks a dose of flexibility. There is also strategic interest in the telecommunications and energy sectors, but we still haven't reached the point at which we are convincing foreign investors that Serbia is more attractive when compared to other countries in the region. We are still far away from that. The reason for this is the character of the Government's function-

Imports are much higher than exports, which does not create enough foreign currency reserves to service the foreign debt.

Among the foreign companies that hire your consultancy services, are there those that have announced clear investments? I haven't noticed any interest that would equate to the announc-

ing and the fact that they depend on receiving support from SPS (Slobodan Milosevic's Socialist Party of Serbia), which means that they always have to make compromises. This is a big problem. Other big problems include the restructuring of public companies, such as JAT, which is in serious degradation. So, now newspapers are reporting that the threat to traveller safety during the aeromechanics' strike was genuine. There are also problems regarding the Labour Law, in the sphere of

GOVERNMENT CRITICISM

DEBT SERVICING

RISK ASSESSMENT

My primary criticism of this government is that there is no united voice…we hear only from a few ministers talking about what is going on in their respective ministries. Exactly how certain policies will be realised in real terms is mostly dependent on the will of certain political parties. This is the biggest problem of the Government, because they are unable to force the 'package' of European integrations…

Foreign currency reserves are over $3billion, and [between 2007 & 2009] Serbia will have to pay an average of a billion and something dollars…Serbia has one year left to adjust the economic sector sufficiently, and then the obligations will arise. We could cover those obligations directly, through export profits; or we will be forced to “eat into” our foreign currency reserves or negotiate the postponement of repayment once again...

…political risk places Serbia alongside countries in the zone of serious political risk, regardless of the fact that we have a type of political stability and definitely boast the dominance of the democratic political bloc. But there is too much turmoil…We lost the trend and tempo with which the late PM led the entire story. He had a visionary's view of where Serbia is going, and now the balloon of enthusiasm that was inflated on 5th October 2000 has burst. CorD | July 2005

Interview education, etc. As such, would-be investors don't see any serious potential and they lose trust. Somewhere along the way, the enthusiasm for reforms has been lost. There is no vision and more and more young people are interested in going abroad to live and work.

initely boast the dominance of the democratic political bloc. But there is too much turmoil and the assassination of PM Djindjic [just two years ago] didn't help. We lost the trend and tempo with which the late PM led the entire story. He had a visionary's view of where Serbia is going, and now the balloon of enthusiasm that was inflated on 5th October 2000 has burst.

Despite all of the newly-formed independent states of the former Yugoslavia emerging from the joint What is needed for the pace of state with a relatively low level of reforms to pick up again? debt, their national debts are conIt is difficult to expect some epochal stantly rising. All told, Bosnia & political changes in Serbia. We need a Herzegovina, Croatia, Macedonia clear turnaround and the clear definand SCG owe foreign trustees and ing of how reforms should look, as creditors around $50billion, which well as a clear focus on the private secis twice the total debt of the former tor and concurrently on the financial Yugoslavia during the period of the and economic sectors; on smaller ecoworst debt crisis in the '80s. Is there nomic subventions, etc. This needs to the threat of a new debt crisis? happen at both commercial and indiWith current national debt of vidual levels. around $14billion, Serbia cannot be The IMF has requested that acquired considered as an overly debt ridden social rights, the pension system, social country. However, though it is still not welfare and various similar extras be excessively in debt, Serbia does have amended in the coming years. 'serious' debts. There are two very Each calculation should have a genimportant indicators when examining uine base, because otherwise the the debt status of a country. According amendments could be counter producto one indicator, we are in a category tive. It would be disastrous to increase that means we are seriously in debt, pensions first - which pensioners but don't have unsolvable problems. The Government also has to would, of course gladly accept - only to That indicator is determined by the understand that decrease them again later. The model balance between total debt and total presented by the previous government GDP. It is usually considered that a the State is not the best investor should be respected. That model country is in the red when this ratio and, accordingly, should includes relatively decreasing the exceeds 80%, which is worrying. share of pensions in comparison with I would also warn about our export learn not to get too involved salaries. debt relations. Serbia's foreign debt in economic life problems could be considered as How would you comment on the alarming, looking long term, because IMF's requests; including suggesthe annual export debt ratio is 4:1 tions that exports should increase by 25 per cent and public conaccording to the export indicator, everything above a ratio of 2:1 is consumption decreased markedly? sidered as problematic. I expect that the IMF's requests have been greeted with varying A debt crisis in Serbia could come between 2007 and 2009, degrees of enthusiasm by the parties comprising the government. because that is when all the reprogrammed debts of the first few postThe majority of the IMF requests are in line with notions for Milosevic years are due to be repaid. reforming the public sector and state administration, though I think they will be of little significance to decreasing the budget deficit. Does that mean that the State's foreign currency reserves are I think it's more important that the Government take measures to insufficient? unburden the economy, for which there is indeed space. The Our foreign currency reserves are over $3billion, and over the Government also has to understand that the State is not the best course of those three consecutive years Serbia will have to pay an investor and, accordingly, should learn not to get too involved in ecoaverage of a billion and something dollars. The question is, are we nomic life. going to be able to do so with a trading balance deficit like this? Imports are much higher than exports, which does not create You have remarked on potential disunity among the enough foreign currency reserves to service the foreign debt. Serbia Government's coalition parties. How would you comment on has one year left to adjust the economic sector sufficiently, and then speculation that the Democratic Party could join the government? the obligations will arise. We could cover those obligations directly, It would be good if DS were in the government, but I don't think through export profits; or we will be forced to “eat into” our foreign that party belongs in this Government and that would not 'patch up' currency reserves or negotiate the postponement of repayment once the administration… again with the creditors. That final option wouldn't be good for the country, because it would indicate specific credit incompetence and Does that mean that fresh elections would be needed before affect our credit rating, which is an indicator for potential investors. DS could return to power? It is hard for me to suggest that, because new elections would What solution do you see? include the danger that the Radical Party of Serbia, which collects the In all the surrounding countries, including the Czech Republic, most votes in the country, could find a potential coalition partner Slovakia, Hungary and us, when talk turns to the arrival of foreign within the existing Government - perhaps the Serbian Renewal investors' capital, it is widely accepted that potential investors firstly Movement - and thus form their own government. I do not believe look at the perceived political risk. Unfortunately, that political risk that that would be good for Serbia and, as such, other solutions places Serbia alongside countries in the zone of serious political risk, regardless of the fact that we have a type of political stability and defshould be sought.•

CorD |July 005

bulletin...bulletin...bulletin... Electric at last

Slow, Stupid State

A recent survey by GfK, one of the five leading market research agencies in the world, reveals that the citizens of Serbia & Montenegro see their state primarily as unsuccessful, slow, aimless and messy, while young people also characterised it as stupid. The citizens were asked to describe their state as if it were a living person. 37.2% thought Serbia & Montenegro was old-fashioned, 27.7% said it was stupid, and almost half the population described it as unsuccessful, slow and aimless. Older generations were more lenient and only 24% said the state was old-fashioned, while almost double the percentage (43%) of young people assign the state with the same attribute. Most middle-aged citizens said the state was uneducated (30%), quarrelsome (37%), aimless (50%) and unsuccessful (55%). Citizens from the youngest age-group in the sample find SCG more fun compared to the rest, but still a third of them think the most appropriate description of their state is "dumb".•

n the village of Rzav, the last paraffin lamps are to be extinguished and replaced by electric lighting in six homes of the Perunicic family. The inhabitants of Rzav said they paid for electrification of their village back in 1978 and, although wooden posts were erected for this purpose (and rotted away in the meantime), electricity never came. The village has only six households left, clustered at 1,300 metres above sea level and 50 kilometres away from the district capital Pljevlje.•

Belgrade and Chicago: Sister Cities

elgrade Mayor Nenad Bogdanovic was beaming after Belgrade became a sister city to Chicago, one of America's top cities. A news release by the Belgrade City Council's Department of Information Services quoted Bogdanovic as saying ahead of the declaration-signing ceremony that Chicago takes sisterhood with other international cities very seriously. "When Chicago decides to enter

RS Army Recruits Dismissed

he March class of recruits of the Army of the Republika Srpska (VRS), who served at the Manjaca training base, was dismissed earlier than scheduled because of the incident that took place during the military th

this kind of relationship, they pledge to be a true friend and aide", the Mayor said.•

Solidarity and Affection…

he pupils of the "Dr. Dragan Hercog" Primary School for Handicapped Children were denied permission to use four classrooms of the "Marko Oreskovic" Primary School after parents of the school's pupils reacted negatively to the proposal. Donors were willing to furnish the classrooms with sophisticated teaching tools, but the initiative collapsed after a rowdy Parent's Council meeting saw parents threaten to withdraw their children from school. Belgrade is also missing a secondary school that would meet the needs of handicapped children. The city authorities planned to build one such school in Vracar District (Dubljanska Street), but a citizen's petition put a halt to the plan, arguing that "a school for handicapped children should not stand at a location that attracts large numbers of tourists".•

induction ceremony on 16 April 2005. The order to dismiss the class of VRS recruits was issued by EUFOR Commander in Bosnia & Herzegovina, General David Leaky, who was dissatisfied with measures taken by the RS Ministry of Defence regarding the incident at Manjaca on 16th April, when VRS recruits swore an oath to Republika Srpska, instead of Bosnia & Herzegovina, as the new Defence Law proscribes. General Leaky also ordered the removal of VRS Chief of Staff, General Novak Djukic.

Slaughtered Sarajevo Serbs A mass grave believed to contain the bodies of Bosnian-Serbs murdered during the conflicts of the 1990s has been found in the village of Darivo. Prosecutors have requested that an investigation be launched to determine the identities of those found. According to Milan Bogdanic, director of the Republika Srpska Missing Persons Bureau, various reliable sources of information have indicated the existence of a mass grave containing Serb civilians in the Benbas Basin at the confluence of the Moscanica and Miljacka rivers. Bogdanic was unable to confirm how many bodies had been found. However, the bureau is still officially seeking 232 Serbs who disappeared from Srajevo during the 1990s. Explaining that excavation of the site would take a few days, Bogdanic said "The work is proving difficult because the level of the

Miljacka is above the bodies which are deeply buried".•

The Pink Panther Gang

citizen of Serbia & Montenegro and member of the notorious Pink Panther Gang, suspected to have been behind a series

of spectacular robberies of jewellery shops worldwide, was caught in the act on 14th April in Copenhagen. The identity of three jewel thieves who took part in the robbery is being kept secret because of an investigation that aims to uncover the whole Pink Panther gang, the most organised gang specialised in stealing expensive jewellery. Their greatest heist was in Japan when they stole the famous Countess Vendome, a necklace with 116 smaller and one large diamond worth 27 million dollars. The necklace and accompanying earrings were the most precious items showcased in the shop's display

window, where they had stood for 13 years. The gang is also linked to spectacular diamond robberies in Paris’s Louvre, London and Frankfurt.•

SRS: 'Liberate Serbian Croatia!' The Serbian Radical Party has suggested that the Serbian Parliament adopt a declaration calling for an end to "ten years of occupation of the Republic of Serb Krajina" by the Republic of Croatia. The traditionally Serb province was 'cleansed' of Serbs during the Croatian Army's Operation Storm just prior to the signing of the Dayton Agreement, which brought an end to the war and saw borders in the region frozen. The Radicals have said that they want to see the question resolved for the Croatian-Serb refugees who fled and those who have remained in Croatia. This, they said, could only happen if the Croatian occupation is brought to an end. Radical MP Milorad Buha, described as the 'president-in-exile of the Republic of Serb Krajina', told journalists that adoption of such a declaration would mark a clear announcement by the Parliament that the only way to resolve the status of the persecuted Serbian nation and allow refugees to freely return to their homes would be the ending of the Croatian occupation. In their draft declaration, the Radicals describe the persecution of Serbs in Croatia and the destruction of their property as genocide. •

CorD | July 2005

Interview

By Milan Culibrk

Delta Holding is without a shadow of a doubt among the most successful domestic companies operating in SCG today. The company recently sold its major share in Delta Banka to Italian banking giant Banca Intesa, earning some â&#x201A;Ź340 million in the process, and also continues to expand its Maxi and Pekabeta retail chains, while investing in local companies through the continuing privatisation process.

Milka Forcan, Delta Holding Vice President

ith the upcoming launch of its low-cost airline, AirMaxi, and plans afoot to spread its business network into the other former Yugoslav republics, Delta continues to be a genuine multi-level, multinational business force in the region. This month we spoke to Milka Forcan, Vice President of Delta Holding, about the secrets of Delta's successes, the problems it is facing in terms of regional investment and the company's plans for a successful future. What is behind Delta Holding's increased efforts to expand its operations beyond the national market? Delta is the largest private company in Serbia & Montenegro and its business operations have reached the point where the domestic market is becoming too narrow and is stunting our growth. The company owns three retail chains and Delta's 'Maxi' is the leading retail chain in the country.

CorD | July 2005

The choice to expand further has also come as a consequence of our decision to leave the banking sector: the sale of Delta Banka has yielded major capital that allows us to invest in the wider region. Are the announcements of investments in Serbia by several global commercial chains - with Metro having already arrived and Kora very likely to follow suit - the reason why Delta is planning to invest abroad? We are not afraid of competition and welcome the arrival of foreign companies. Healthy competition is necessary for creating a free market and the biggest gain in the whole process will be experienced by the consumersâ&#x20AC;ŚWe feel that we are ready to face leading western companies head on. What are the plans of Delta in former Yugoslav countries

Interview and in the Balkans as a whole? We would have liked to have entered the Slovenian market, but the willingness to co-operate was lacking on their part. This was evident through drawn-out negotiations, inappropriate location offers and similar reactions… As for Croatia, their public is still very hostile regarding investments coming from Serbia. At the moment, Delta's investment plans have encountered more welcoming signals in other states of the former Yugoslavia and we will focus our attention on them. We are currently in the process of securing three locations in Montenegro and are about to enter the Macedonian market. Is Delta opting to invest in the wider region because of a general estimation that Serbia still poses a high risk for investments, or is there another reason? Delta has not only continued to invest in Serbia, but we also continue to give the local market top priority in our business strategies. We are, after all, a Serbian company and our principal assets are here. The analyses and official statistical records of relevant international institutions show that the Serbian market is somewhat riskier for investments but, nevertheless, we are planning major investments here in the next two years, primarily in the retail sector and agriculture. You have said on several occasions that Delta expects the same treatment in Slovenia and Croatia that Merkator and Agrokor get in Serbia. Can you be more precise? When Merkator commenced their operations in Serbia they received full institutional and political support in our country. They had no trouble in acquiring one of the most exclusive locations in our capital city. There are more than 250 Slovenian and 100 Croatian companies operating in Serbia and we praise this development as business people. However, it is telling that there are no investments by Delta or any other Serbian firms in the other direction. There is obviously a lack of will on their part to co-operate. We just want a fair relationship without hidden pressures, public demonstrations, or, for example, situations where the mere possibility that Delta could invest in Croatia sparks the public belittlement of the company. The Serbian public and its economic and political circles of influence have shown that they are absolutely open and do not resist the arrival of capital from other ex-Yugoslav republics. It is only natural that we expect this to be reciprocal. Early this year the domestic press announced that Delta was discussing the possibility of forming a partnership with Merkator (Slovenia) and Agrokor (Croatia), who own national companies Frikom and Idea. Delta reportedly

We are not afraid of competition. On the contrary, we feel that as a company we are ready to face leading western companies head on. argued that a retail chain of this size would have less trouble entering the national markets of Bulgaria, Romania, the Ukraine, Hungary and other countries. Is there any truth to these reports? It is too early to talk about the unification of these business corporations and concrete talks are not realistic at this juncture. However, I am confident that the region's major firms will have to merge at some point in the future, because this is the only feasible economic strategy. In the general framework of globalising trends, where leading global companies merge (Procter&Gamble bought Gillette, Unicredito took over HVB Bank), and also come to our markets, we have to consider these kinds of partnerships. Major capital is increasingly losing its national character. Capital will have to link up sooner or later here, and we can only hope that economic interests will prevail over political and individual interests sooner rather than later. What projects will Delta fund with the €340million they are to acquire following the sale of 75 per cent of Delta Banka shares to Italian Banca Intesa? Since the announcement of the sale we have reached an agreement with the Intesa banking group to sell 90 per cent of Delta Banka's shares, which will bring our company a grand total of €340million. These funds will be used to apply for loans that will approximately double our investment capital.

REGIONAL RELATIONS

DOMESTIC INVESTMENTS

There are more than 250 Slovenian and 100 Croatian companies operating in Serbia and we praise this development as business people. However, it is telling that there are no investments by Delta or any other Serbian firms in the other direction. There is obviously a lack of will on their part to co-operate. We just want a fair relationship in which there are no hidden pressures...The Serbian public, economy and political circles have shown that they are absolutely open…

We have already reached the figure of 60 outlets in building our Maxi retail network. In 2004 we opened 12 supermarkets and in 2005 two more were added. A large number of Pekabeta outlets were refurbished last year and we opened the first cash and carry centre under the brand Tempo. We bought Yuhor, a meat processing company from Jagodina, as well as several farms in Vojvodina. In Sombor we built the first greenhouses for growing vegetables. CorD | July 2005

Interview Most of the assets will be invested in developing our retail network. Aside from spreading and modernising the Maxi, Pekabeta and Tempo retail chains, we plan to introduce sophisticated mega trade centres that have not yet appeared in our country. We have secured four exclusive locations in Belgrade for this purpose and are currently acquiring the necessary permits, after which Belgrade will get four shopping malls that will provide an entirely different level of service in terms of size and content, compared to trade centres that currently operate in Belgrade. The other strategic area of Delta's business is agriculture, which complements our retail operations. Delta is dramatically expanding its capacity to produce food.

were refurbished last year and we opened the first cash and carry centre under the brand Tempo. We bought Yuhor, a meat processing company from Jagodina, as well as several farms in Vojvodina. In Sombor we built the first greenhouses for growing vegetables. We plan to continue directing investments into our retail networks and agricultural assets during this year and next. Delta has become the owner of a number of companies privatised under the old law, by purchasing shares at the Belgrade Stock Exchange. Among them are Belgrade-based Pekabeta, but also retail chains in Novi Sad, Apatin and Subotica. How have these acquisitions fared since then? We have made a lot of changes in the organisational and personnel structure at Pekabeta. A large number of outlets have been refurbished, the chain's visual identity is now different and the retail network and personnel structure have been rationalised: previously, Pekabeta had 500 employees working in administration alone. The chain has been incorporated into the unified procurement system of the Delta M retail network and Pekabeta has become a functional and successful retail chain that lies on solid foundations. The other companies have also been adjusted to meet Delta's standards and are now successfully incorporated into our company.

Delta is reportedly interested In late June Milka Forcan in Slovenian Fruktal. Was this received the Belgrade Chamber one of the reasons behind Delta's of Commerce's Manager of the arrangement with Pivovarna Year Award. Speaking at the Lasko to sell their products in award ceremony, the Delta your retail outlets? Holding Vice President said: There has been no such arrangement with Pivovarna "this award given to me beloLasko. We approached their manngs, in fact, to Delta Holding agement and declared that we were and to Delta's standards and interested in purchasing Fruktal. procedures, which bring the This producer of juices has been whole company to the highest generating losses for several years. level, not only compared to Fruktal is a well-known brand regional competition, but comamong consumers in former Yugoslav republics - the largest petition Europe-wide". market of which is here in Serbia. As such, they have to find their In which phase is the joint venture of Delta and way out of their crisis here. They cannot market their products in EU countries without huge investments, and that is obvious- Aviogenex that aims to launch a low cost air transport company based on such models as Ireland's Ryan Air or ly the harder way out. Delta offered to buy a factory with losses, because it can Britain's Easy Jet. What made Delta decide to branch out secure the best possible market for its products in Serbia & into this line of business? Preparations for launching our air transport services are in Montenegro. Our offer was not appreciated by the management of Pivovarna Lasko, who, unfortunately, were not gov- their final stage and we expect this complicated and extensive procedure to end in July. The first AirMaxi planes should take erned by economic interests when they made their decision. to the skies at the end of July. Delta decided to join this venture to keep up with European trends, According to earlier stateAERO ADVANCEMENT where up to a dozen low cost airments, Delta M, as part of Delta lines successfully operate alongside Holding, planned to invest Delta decided to join this venture to keep up â&#x201A;Ź310million in development betnational air carriers. We came to the with European trends, where up to a dozen ween 2004 and 2006. How much conclusion that it was reasonable to low cost airlines successfully operate alongof this strategy has been realised launch this kind of service on our side national air carriers. We came to the conto date? market, because travellers' We have already increased the demands are much greater than the clusion that it was reasonable to launch this Maxi network to a total of 60 outlets. kind of service on our market, because trav- capacities of the national airline In 2004 we opened 12 supermarkets company. Hence, the decision has ellers' demands are much greater than the and in 2005 two more were added. A commercial justification and is capacities of the national airline company. large number of Pekabeta outlets entirely market-oriented.â&#x20AC;˘

CorD | July 2005

bulletin...bulletin...bulletin... Covic's Lost Luggage

pon his return from a UN Security Council meeting in New York, the Head of the Co-ordination Centre for Kosovo and Metohija, Nebojsa Covic, discovered that his luggage had got lost at London's Heathrow Airport. "I don't want the loss of my luggage mystified or brought into relation with my reply to Great Britain's Ambassador to the UN, Sir Emyr Jones Parry.

offering a stern reply, saying "the statement was in the tradition of the behaviour we witnessed during Milosevic's reign. Whoever fails to realise this and, at the same time, tries to assert themselves on the political scene, will have to consider whether they intend to achieve their goal by the same means that brought us to this position in the first place". The gathering took place ahead of the elections and the forces who support a common state accused the Mayor of Belgrade of backing a secessionist coalition contrary to the official stance of the party to which he belongs. The whole case sparked unpleasant reactions in Belgrade, while Montenegrin President Filip Vujanovic invited Ljuba Tadic to talks that would “clarify the situation and end the controversy”.•

Pink Candid Camera prank dupes B92

T "I think that JAT's office in London is to blame for the incident, since 20 other passengers also lost their luggage. The people responsible should pay more attention to the belongings of state delegations, because my bag could have carried a confidential document of some sort," Covic commented. At the Security Council meeting, Covic told Ambassador Sir Emyr Jones Parry that they should test their recommendations to Serbia regarding Kosovo and Metohija on themselves first. "When they determine how their recommendations sink in, they should lay them out, so that we can apply them as well".

Tadic Senior Vs Bogdanovic

he President of the Council of the Movement for a Common State of Serbia & Montenegro and Academy member, Ljuba Tadic (father of Serbian President Boris Tadic), has criticised Belgrade Mayor and Democratic Party Vice President Nenad Bogdanovic for "taking part in, and addressing, a secessionist gathering organised by DPS/SDP in Budva" and of doing so on behalf of the Democratic Party. Tadic senior reiterated the Democratic Party's position supporting the idea of a common Serbian and Montenegrin state and asked whether Bogdanovic advocated the same policy as Cedomir Jovanovic and the participants of the round table: Natasa Micic, Milo Djukanovic, Latinka Perovic, Nikola Samrardzic and others. The fact that Ljuba Tadic is the father of the Serbian President and Democratic Party leader did not discourage Bogdanovic from

he entire Serbian police, state security and army intelligence were roused to their feet and led to swarm all over the small town of Kucevo in Eastern Serbia after B92 tipped them off about an arranged interview with one of the two most wanted Hague indictees, Radovan Karadzic. The Ministry of Interior was told, however, at the point when the whole town was packed with agents of every imaginable secret service, that the whole thing was a candid camera hoax that the crew of "Mission (Im)possible" (TV Pink) tried to pull on B92's "Insider" crew. The whole thing began when someone who presented himself as Bugi, an associate of TV Pink's show that will air this autumn, phoned the author of Insider, Brankica Stankovic, and said: "Hello, this is Bugi. I have an exclusive piece of information for you, cream of the cake, but I can't talk about it over the phone." They agreed to meet at a Belgrade restaurant the same evening. At approximately 8 pm, the author and producer of Insider showed up at the meeting with "Bugi", who named his terms: "no one must know about the show, it mustn't be aired at least 48 hours after recording and the TV crew can't set up any lighting at the interview site. When asked who the mystery person was, Bugi said: "The most important person". "I would really like to meet him. No one will know about this aside from us and Veran Matic (Editor-in-Chief of B92)". She asked if she could call Matic immediately, but Bugi refused, saying that this was part of the deal.

That evening the Serbian Interior Ministry received a fax from B92 that mentioned threats, Karadzic, Kucevo, a meeting at 5 pm, and was signed by Veran Matic. The fax was forwarded to Interior Minister Jocic, the Security Information Agency and the Police Department of New Belgrade, while Prime Minister Kostunica was briefed on the issue. An urgent meeting between Interior Ministry staff, the Security Information Agency and Army executives followed and a response team and a special unit were formed to arrest Karadzic. The whole party moved to Kucevo. The Police Department of Pozarevac and the regional headquarters of the Security Information Agency were also put on alert. The Insider crew was on their way to the meeting place and TV Pink's Mission (Im)possible crew was already there with Bugi, sitting in a bar. Two secret agents occupied the adjacent table and kept an open eye. The crew ordered them drinks. One of the show's producers informed the Interior Ministry that the whole thing was a candid camera prank. At around 4

pm, with B92's crew having already passed Pozarevac and approaching the meeting place, a call came from Minister Jocic's cabinet: "It's candid camera! A meeting with Bugi in the café bar in Kucevo took place anyway. The police were there as well. The reaction of Insider's crew, according to first hand witnesses, was mercurial. However, the whole thing did not pass as a prank. The police were furious with the belligerents at the café bar in Kucevo and took both TV crews to the station where they had to give statements. They were kept there until midnight.•

CorD | July 2005

Diplomacy

Hans Hageman, Counsellor at the Royal Netherlands Embassy in Belgrade (left) and Karien van Gennip, the Netherlandsâ&#x20AC;&#x2122; Minister for Foreign Trade (right)

POSITIVE ASSESSMENT By Dragan Bisenic, Photo: Stanislav Milojkovic

At the Sava quayside on 9th June at 7pm, the visit to Belgrade of The Netherlands' Minister for Foreign Trade, Karien van Gennip, culminated in a luxurious water borne reception. CorD was there to get the insider's angle on the visit of the Dutch official.

land from the sea through the help of canals and embankments. And, of course, the inevitable wind mills, even though their number was reduced in the last century from 10,000 to 1,000 and most have been turned into houses and museums. To the art lover's mind the first thought of Holland will be of the Amsterdam school of painting, which produced one of the world's greatest painters: Rembrandt Harmenszoon van Rijn, whose deep humanistic approach to man and human destiny created masterpieces of eternal artistic value. Or Vincent van Gogh, one of the most original and most temperamental European painters, whose painting 'the Peasant woman', from his early Dutch days, is exhibited in the National Museum in Belgrade. For history lovers, the Netherlands is, above all, the oldest civil society in the world, the country which experienced

he luxurious Sirona Putnik cruise boat is intended for visitors to the capital city who would like to cruise on its rivers and feel the atmosphere of the ancient charm of the Serbian & Montenegrin capital. The boat bobbed restlessly on the waves formed following the lashing rain. That night the "The image of SCG in Holland is tainted by the past white boat was expecting special events in this region. Our visit and meeting has conVIP guests: the Dutch economic delegation, headed by Ms. Karien van tributed in a very positive way to the improvement of Gennip and comprising 30 business- that picture, because we have now seen a new Serbia". men representing the cream of Holland's companies, which had come to Belgrade for a visit the first bourgeois revolution in Europe, when Spain was organised by The Royal Netherlands Embassy in SCG and the forced in 1588 to recognise the independence of the Republic Dutch Agency for International Business and Co-operation. of the United (Northern) Provinces, which has since then, Just a mention of the name Holland, sets in motion a trail until these days, been called Holland. of associations. Those romantic souls among us immediately In the 17th century this small country became a first class think of tulips, clogs and the eternal fight between man and naval and colonial power with a concentration of capital nature in which the Dutch people have for centuries seized unseen until then. Banks in Amsterdam at that time had

CorD | July 2005

Diplomacy more cash than all of the banks in Europe combined. Holland had a fleet of 16,000 ships, which represented two thirds of all the sea bearing vessels in Europe at that time. Even though the first political murder in Holland's modern history (the assassination of the populist leader Pim Fortuyn, on 6th May 2002) spoiled the myth of the tradition of tolerance, fighters for human rights gathered in nongovernmental organisations cite Holland as a bright example of outstanding and unreserved acceptance of what is different and special, partially incarnated in the rights for official homosexual marriages, the legalisation of the sale and use of soft drugs and public brothels. These associations overtake each other while the guests are arriving in great numbers. Among them are Deputy Serbian Prime Minister, Miroljub Labus, the former Serbian Minister of Economy and Privatisation, Aleksandar Vlahovic, the former Finance Minister and the future French Credit Agricole director for South-East Europe, Bozidar Djelic. The guests are welcomed at the entrance by the reception hosts, H. E. Barend van der Heijden, The Royal Netherlands Ambassador to SCG, and advisor Hans Hageman. The members of the Dutch delegation are also there. The weather changes the protocol. It was planned that the guests

ed by the past events in this region. Our visit and meeting has contributed in a very positive way to the improvement of that picture, because we have now seen a new Serbia". According to Minister van Gennip, the roundtable talks between the members of the Dutch economic delegation, the company representatives and Serbian officials were the right chance for eyes to be opened wide to Serbia. "For business and Dutch investment this was a very important step, thus for the Serbian economy too. But Serbia has to improve its economic-business climate in order to

"we do not change the game rules in one day. All talks and signed agreements and contracts will continue to be implemented. Of course, SCG has to obey all the necessary criteria, standards and economic laws..." would view the city from the river, but at the request of the Dutch Minister the Sirona Putnik remains anchored by the Sava quay. As the members of the Dutch delegation said, even here in Belgrade the weather was not inclined to them. That comes from one saying which Dutch people often use when the rain pours down for days and weeks: "This is a perfect country, it just needs a roof". That saying fit this occasion perfectly. All of the irresistible beauty and charm of Kalemegdan and Vidin Gate, Nebojsa's Tower, War Island, Ada Ciganlija, the splavovi (floating restaurants), those ornaments of the river banks and the city's silhouette burst at the moment when the sunset refracts on its rivers, the Sava and the Danube and mixes with the capital city's lights. Welcoming all those present in the boat's main saloon, the Dutch Minister, among other things, stated that talks with Deputy PM Labus and other Serbian officials had been very interesting and showed that Serbia is again becoming a modern country. Van Gennip, whose full name is Chatarina Elisabet Godefrida (Karien) van Gennip, was born on 3rd October 1968 in Leidschendan. She graduated physics from Delft University of Technology and in 1995 she completed her PhD in business administration at the European Institute of Business Administration (INSEAD) in Fontainbleau, France. She has been a member of the Christian Democratic Alliance's (CDA) Main Committee since 2002, and in May 2003 was appointed to the position of State Secretary for Economic Affairs in the second Government of Prime Minister Jan Peter Balkenende. When she is abroad, she holds the title of Foreign Trade Minister. In a statement for CorD Magazine, Karien van Gennip said: "The image of Serbia & Montenegro in Holland is taint-

Karien van Gennip

Catharina Elisabeth Godefrida (Karien) van Gennip was born in Leidschendam on 3rd October 1968. After completing her secondary education, Ms. Van Gennip studied applied physics at Delft University of Technology, graduating in 1993. Her graduation project was commissioned by the Ministry of Health, Welfare and Culture and the National Institute for Public Health and the Environment. In 1995 she graduated as a Master of Business Administration (MBA) from the European Institute of Business Administration (INSEAD) in Fontainebleau, France. In 1994, and from 1996 to 2002, Ms. Van Gennip worked for McKinsey & Co. in Amsterdam and San Francisco. From September 2002 she led the reorganisation of the Financial Markets Authority, and was appointed its director in 2003. From 2002 to 2003, Ms. Van Gennip was a member of the board of the Christian Democratic Alliance (CDA) in Amsterdam. Ms Van Gennip was appointed Minister for Foreign Trade in the second Balkenende government on 27th May 2003.

CorD | July 2005

Diplomacy attract as many investments as one day. All talks and signed agreepossible, therefore to adopt all of ments and contracts will continue the necessary economic laws, for to be implemented. Of course, selling and purchasing land, for Serbia & Montenegro has to obey instance", thinks Van Gennip. all the necessary criteria, standards The recommendations of the and economic laws. If the State Dutch Minister are purely pragUnion fulfils all of its obligations by matic. The last report made by this autumn, the negotiations of the Foreign Investors Council in closing the Accession and StabilisaSCG shows, for instance, that tion Agreement could start as among the key reasons for the planned". unsatisfactory flow of foreign It is Van Gennip's view that what capital to our country are high happened in France and Holland is building costs, unregulated propmore the clear message of the erty relations and the state French and Dutch people that they monopoly over construction feel like they are a bit separated land, which does not suit the marfrom Europe; that they think that ket, but only the mediators, and Europe is something that is hapexcessively increases the price of pening only in Brussels, as well as services. Foreign investors can the fact that political leaders have simply not understand why they to be very clear regarding what cannot be the owners of the land new European agreements mean: on which they are planning to "Are we losing our identity in "we do not change the build their business premises, them? On the other hand, as politigame rules in one day. All factories and other objects. cians, we have to bridge the gap talks and signed agreeThe Dutch Minister said that which exists between us and our those companies which had sent citizens and those are the lessons ments and contracts will their representatives to Belgrade we learned from the referendum continue to be implementhad expressed their interest in results", said Van Gennip. investing in various fields and the With the arrival of the rich bufed. Of course, SCG has to establishment of brand new comfet, the atmosphere in the main obey all the necessary cripanies. She pointed out the fact boat saloon becomes more that the Dutch Government and relaxed and less conventional: teria, standards and ecobusinessmen want to improve grilled specialities, quality domesnomic laws..." trade relations between the two tic red and white wines and a gencountries, but thinks that at this uine palette of different kinds of moment the State Union mostly beers are served. Of course, needs to increase its export. Heineken too, the beer which "Bilateral trade in both direction amounts, lets say, to only 45 turned its father, Freddy Heineken, into perhaps the richest million euros, which is practically nothing when one considers Dutchman, responsible for the global success of beer. the possibilities this country has", said Van Gennip. Labus explained to his interlocutors that there is an interJust for the purposes of comparison and to illustrate est in the Dutch side to invest in telecommunications, the Karien van Gennip's words, statistical figures show that the energy sector, infrastructure and the food industry. Bozidar Gross Domestic Product (GDP) of the Dutch Kingdom, which Djelic, already accustomed to his new role, enquired about boasts 16.318 million citizens, amounts to $461.4billion, or which projects he could financeâ&#x20AC;Śnot without good reason. $28,600 per capita. Annual imports total $217.7billion, Holland is an industrial and agricultural country. Even though exports equate to $251billion, and income from tourism only around 300,000 people work in agriculture, with the full alone is $9.2 billion. The Serbian & Montenegrin GDP, with implementation of agro technical and agrochemical meas10.825 million citizens who live on 106,000 square kilome- ures, the yields per hectare are among the highest in Europe. tres of land, is $34billion, or $2,300 per capita. Imports total However, Aleksandar Vlahovic is advising one Dutch busi$7.1billion and exports $2.7billion dollars (data from 2003.) nessman what to invest in. The Dutch Minister emphasised that the new Serbia Hank van der Hoven, director of AZTEC Engineering BV could be seen on the political fields. What happened last from Kaatsheuvel, came to see what the possibilities of makweek when the video of crimes was broadcast [the murders ing some profitable deal were. According to the questions he of six Muslims in Bosnia by members of the Scorpion asked the author of this text, van der Hoven had obviously Paramilitary Unit] and the blitzkrieg arrest of the perpetra- heard odes about Belgrade's nightlife. He asked where in this tors, Karien van Gennip experienced as a very important sign rainy time he could feel that Belgrade atmosphere and did not and a clear message to Western countries that the Serbian hide his surprise at the city authorities' decision to limit the and State Union authorities are dealing seriously with the working hours of restaurants, cafĂŠs and 'splavs'. past and that they will not tolerate such crimes. The reception is coming to an end and the Sirona Putnik In response to CorD's question as to whether the results of is slowly emptying. It is still raining and the guests are leavthe referendums in Holland and France will influence the ing. Maybe they will return for some new meeting when the accession of Serbia & Montenegro to the European Union, the weather is nice and Serbia has seriously taken on board some Dutch Minister replied: "we do not change the game rules in healthy suggestions from Holland.â&#x20AC;˘

CorD | July 2005

Go-Carting Tournament By Bob Holt

The inaugural CorD & Autokomerc Carting Centre International Carting League culminated in a thrilling finale in late June.

CHAMPION VELJKO

ollowing the completion of all rounds of racing, the grand final weekend got underway in baking sunshine at the Carting Centre. With the field of competitors whittled down to just eight racers for the start of the semi-finals, it was a question of whether the Okpiro, U.S. Embassy, Coca-Cola or Informatika teams would lift the trophy and walk away with the mystery grand prize - donated courtesy of prize sponsor Moya Tours. The semi-final line-up included the Okpiro team's Veljko Vujic, the Informatika team's Nikola Lazarevic, Nenad Elezovic and Marko Mirovic, Coca-Cola's Darko Calasan and three members of the U.S. Embassy team: Kevin Crisp, Mihnea Moisescu and Zoran Sharinchic. When the dust settled and the two semi-finals, both close run contests, had been completed, both Informatika and Coca-Cola had been eliminated, while all three Team USA racers and Vujic would progress to the final. The racers reflected on the semi-finals and prepared for the final race, while the tarmac baked in the midday sun. After a refreshment break and some competitive banter, the finalists took to their motors and prepared for the off. A superb start by Veljko Vujic allowed the Okpiro racer to assert his authority over the US-dominated field and, despite a spirited effort by Mihnea Moisescu, Vujic managed to fend off his fellow finalists and secure the 2005 International Carting League title. For his considerable efforts, Vujic received an 11-day summer holiday in Greece, paid for by Moya Tours. Despite some organisational problems, the first CorD & Autokomerc International Carting League has proved to be a motor-roaring success. Keep your eyes peeled for more CorD sporting and leisure activities in the future.â&#x20AC;˘

GRAND FINAL RESULTS

1st 2nd 3rd 4th

Veljko Vujic Mihnea Moisescu Kevin Crisp Zoran Sharinchic

(Okpiro) (USA) (USA) (USA)

POLITICS

MP DEFECTIONS Speaking in February this year, Bogoljub Karic, Serbian media mogul and selfpoliticised leader of the Force of Serbia Movement (PSS), said: "If parliamentarians feel that the Force of Serbia Movement and myself are the most appropriate match with people's feelings, who can stop them from bringing their reputations and political interests and joining us?" Then, in spring this year, rumours began circulating that 14 members of the Serbian Parliament would join his party, despite the fact that PSS was not a part of elections. By Jasmina Lukac

tories relating to Karic's political power are by no means 'news' on the Serbian political scene. For many years it has been unofficially claimed that the tycoon from Pec, Kosovo, has had a bunch of politicians in his pocket - secretly paying off parliamentarians, ministers and other influential figures. It is widely speculated that Karic finances the SocialDemocratic Party of Nebojsa Covic, whose three parliamentarians are among those supporting the Kostunica administration. A scandal was caused by former SCG Foreign Minister

Party leaders who are opposed to the fact that MPs can do with their mandates as they see fit often note that the parties invested much time, effort and resources to campaign for these parliamentarians to fight for the ideals of the party. Goran Svilanovic after he told press that Karic's BK Group controls more Serbian parliamentarians than some parties. In mid May this year, the story of Karic's political influence and financial power took a peculiar turn when, after all the speculation, only one parliamentarian actually defected to PSS - the little known Zivadin Lekic, formerly of the Serbian Radical Party - one of the few parties not believed to be under Karic's influence. The defection caused a major media frenzy and, as is said in Serbia, was 'welcomed on a knife' in the Parliament. Asse-

CorD | July 2005

POLITICS ssments of the possible effect on Karic's approval ratings differ. According to one senior observer, who chose to remain unnamed, the defection of a parliamentarian from the strongest single party in the country has allowed Karic to demonstrate his power before Serbia's political leaders. The timing has proved crucial, with Karic's political power seemingly growing at the same time as his media empire is diminishing - as proven by the current sale of mobile telephone operator Mobtel to an Australian telecommunications company. As is common knowledge, Karic and the Serbian State are still in dispute over the ownership structure and assets of

CorD's PSS source is of the opinion that Lekic's defection was motivated by a political disagreement he had personally with the current Radical leadership. This dispute, according to the PSS official, is regarding internal SRS divisions between the 'old Radicals', who consider themselves as being loyal to ICTY defendant Vojislav Seselj, and the 'new Radicals', who are actively leading the party in Seselj's absence. The conflict between the two SRS factions has also been reported in the domestic media. Personally contributing to the internal SRS conflict, Lekic is most often quoted as saying that he only wanted to help Seslj

Milos Aligrudic, Chief Whip of the DSS Parliamentarian Club "First and foremost, we have not gained a new political party in the Serbian Parliament, but rather one miserable individual who has transferred to something called the Force of Serbia Movement after making a deal - obviously a financial one - with Bogoljub Karic. Mobtel and, according to our source, this sale represents a fall in Karic's business power and is a demonstration of weakness, which is countered by the fact that Lekic chose to join his party and not one of the ruling coalition parties. Another CorD interlocutor, from the PSS leadership, insisted that the party is not tactically luring parliamentarians. Our source explained that Lekic simply approached the PSS Board in the Belgrade satellite suburb of Mladenovac and signed the 'approach' document. The PSS senior official added that the party does not have the goal of destroying the Serbian Government or local council structures, but rather wishes merely to work constructively in the public interest. The way in which the defection was made supports the PSS version of events. Lekic made the transfer of his own accord and reported directly to parliamentary journalists, posing for photographers alongside Karic. Many parliamentarians continue to insist that Lekic was "bought" by PSS, and many are questioning how much money or property he received for his defection. However, evidence of any 'bribe' is conspicuous by its absence. CorD went to Mladenovac and was unable to find any discernible change to Lekic's financial standing since he joined PSS.

to defend himself against external forces. Regardless of the ramifications of Lekic's departure from Serbia's strongest single party and its potential effect on Karic's ratings, party political defections raise the question of the quality of parliamentarianism in Serbia. Political scientist Slobodan Antic explained that the structure of the parliament since December 2003 has provided Serbia with the chance to replace non-parliamentarian rule with parliamentarian power. According to Antic, throughout Milosevic's reign and during the previous DOS administration, the parliament was subject to the whims of the Government and the positions of parliamentarians lacked independence. He noted that the May 2003 reform of the Serbian Constitution, which stated that parliamentary seats belong to individual parliamentarians as opposed to political parties, represented the foundation of parliamentary independence and autonomy. However, it has been strongly argued that the rule allows MPs to trade with their mandates by transferring loyalties from one party to another for personal gain. Different parties in Serbia employ different methods for maintaining the numbers of their parliamentarian clubs and disciplining members. According to some sources, for

Vlajko Senic, vice president of SPO "Our suggestion is that parliamentarians remain the owners of their mandates, which allows them to think and act freely, and enables them to vote against the party line, but the seat an MP gains from the party should not be transferred to another parliamentarian or non-parliamentarian party." It is noteworthy that, according to Serbian Law, accepting money to transfer from one party to another is not defined as a corrupt or criminal act. However, an accusation of abusing an official position can be made. Lekic was serving his second term as an SRS parliamentarian and led the Radical branch in this leafy suburb for many years. Locally, he is known as a "negative personality". He used to own a local kafana and spent several years working in France. His criminal record, which has been suppressed, has also been mentioned publicly.

instance, it is impossible to join the SRS parliamentarian list without first making a donation to the party in the name of campaign expenses. This donation also represents an act of financial loyalty to the party. In Slobodan Milosevic's SPS, the custom was for parliamentarians to sign blank letters of resignation for parliamentary posts. The most famous example of such a resignation being used was the case of Miodrag Vucelic, whilst chief of the SPS parliamentarian club in the mid-90s. Party leaders who are opposed to the fact that MPs can do with their mandates as they see fit often note that the parties CorD | July 2005

POLITICS invested much time, effort and resources to campaign for these parliamentarians to fight for the ideals of the party. They also insist that those opting to change allegiance cannot be motivated by ethics alone. Nevertheless, MP defections often occurred during the Milosevic regime and the DOS rule. Indeed, defections of Socialists to DOS helped the coalition maintain its majority following the fall out between the Democratic Party (DS) and the Democratic Party of Serbia (DSS). During the current administration, in December 2004, relations between DSS and DS collapsed following the defection of MP Dragan Djokovic. This particular defection saw a parliamentarian, unusually, switch allegiance from one of the ruling parties to one of the opposition parties. Djokovic's

move triggered conflict between the two largest parties of the democratic bloc at a time when they had just negotiated closer co-operation due to the local elections. The possession of parliamentary seats by individual parliamentarians has also caused problems of late for the Serbian Renewal Movement (SPO), party of SCG Foreign Minister Vuk Draskovic. Of the 13 seats his party boasted following the general election, SPO has only four left, with the nine other MPs opting to abandon the party and form their own: the Serbian Democratic Movement for Renewal. Draskovic's party has suggested that the problem be solved by an amendment to election legislation in order to prevent parliamentarians who were voted into power because of the party to which they belonged from abandoning their voters by opting to join, or form, a rival party. Vlajko Senic, vice president of SPO and deputy Serbian Trade and Tourism Minister, announced that "SPO will soon present the Serbian parliament with a legal suggestion regarding an alteration to the Election Law, which represents a compromise between the fact that MPs own their mandates and the need to stabilise the political system. "Our suggestion is that parliamentarians remain the owners of their mandates, which allows them to think and act freely, and enables them to vote against the party line, but the seat an MP gains from the party should not be transferred to another parliamentarian or non-parliamentarian party, particularly not a party that was not involved in the elections. If MPs do not agree

It is noteworthy that, according to Serbian Law, accepting money to transfer from one party to another is not defined as a corrupt or criminal act. However, an accusation of abusing an official position can be made. with party politics they can act as independent parliamentarians and join other representatives of 'free people' within a joint parliamentarian club. According to this amendment, an MP would automatically lose his seat if he joins another party". At the close of this month's CorD, SPO's suggestion had yet to be delivered to the Parliament and there was no confirmation that SPO's suggestion had received the support of the partyâ&#x20AC;&#x2122;s governing coalition partners. In the meantime, with no such law yet implemented, Bogoljub Karic can announce the founding of his parliamentarian club without parliamentary elections. Karic himself has insisted: "I won't buy parliamentarians, but I will accept honest, dissatisfied patriots who cannot bear to watch how Serbia is collapsing. The political and economic situation in the country has obliged me to form a Parliamentarian Club as soon as possible to defend the interests of Serbia. This Club would not be silent about things, such as the fact that former foreign minister Goran Svilanovic is signing a document regarding Kosovo's independence". Perhaps the most interesting reaction to the Lekic defection came from Milos Aligrudic, Chief Whip of the DSS Parliamentarian Club. Aligrudic said: "First and foremost, we have not gained a new political party in the Serbian Parliament, but rather one miserable individual who has transferred to something called the Force of Serbia Movement after making a deal - obviously a financial one - with Bogoljub Karic. I don't even

CorD | July 2005

POLITICS wish to utter this parliamentarian's name, and with Bogoljub Karic it's obvious that he is the man who is leading one group of people in Serbia whose goal is to reintroduce mass corruption to Serbia's political system. As such, Bogoljub Karic is the greatest evil in Serbia at this moment." According to Serbian daily Glas Javnosti, Aligrudic was "furious because the PSS leader and Lekic have allegedly 'manhandled' two DSS MPs." However, Aligrudic said that this was not the case and that the two MPS were loyal, longstanding DSS members who had negotiated with Karic simply to discover how much money he was offering MPs for their loyalty. Regardless of the facts of the matter, the incident could well be linked to DSS' internal clashes, with the party potentially about to split into two: one faction supporting businessman Zoran Drakulic and the other supporting PM Vojislav Kostunica. Coincidentally, one of the two DSS MPs who negotiated with Karic just happens to be a childhood friend of Drakulic. The nervousness of DSS is understandable, considering that only one Parliamentarian Club comprising a minimum of five MPs is needed for the current Government, which they lead, to lose its parliamentary majority. Dejan Milenkovic, a spokesman for PSS, said: "if you ask me about the final number of parliamentarians who will join PSS, I honestly don't know. But I do know that the leader of our party, Bogoljub Karic, has invited all unsatisfied parliamentarians to switch allegiance to PSS. It's common knowledge that there are a lot of dissatisfied MPs in the Serbian Parliament. However, one thing is certain: we won't force or pay for anybody to join our party". Press speculation is rife that Karic is leading serious negotiations with nine New Serbia MPs, the three MPs of the SocialDemocratic Party (SDP), as well as the Vojvodina Hungarian politicians and Sandzak's Democratic Party. Karic has traditionally excellent relations with New Serbia

Bogoljub Karic and political defector Zivadin Lekic

leader and Capital Investments Minister, Velimir Ilic - he even began preparations for his presidential campaign from Ilic's family home in Cacak. As previously noted, Karic has close ties with Nebojsa Covic and his SDP - Covic held taks with Karic about becoming the PSS candidate for the post of Belgrade Mayor. The Vojvodina Hungarians and Sandzak's democrats, as ethnic minority parties, would bring a fresh wave of voters to the PSS ranks if they chose to join Karic's list. There have also been reports that Karic is negotiating with the 22 MPs of Milosevic's SPS and that he already has the unofficial support of several 'sleepers' within the Socialist party. Moreover, it is alleged that the nine breakaway MPs of Draskovic's SPO could align themselves with the media mogul's party.• Constitutional Court and mandates

The evident question is how much MPs are able to administer with their mandates and to what extent they are the owners of their seats as elected representatives of the will of the people. In Serbia's parliamentary system, there is no simple answer. According to Slobodan Vucetic, president of Serbia's Constitutional Court, "mandates belong to the parliamentarians who were elected by voters. Party election lists are merely a means to obtain candidates… The question of party discipline, changing team colours and joining another side is not a legal question, but rather a political and moral dilemma". According to Vucetic, “binding an MP to a party is rooted in the former single-party system and lacks the perspective of parliamentary development”. However, Vucetic's view ensures that the law governing parliamentary functions (which covers reimbursements of transport fees for attending parliamentary sessions and family absences, immunity from criminal proceedings and the use of MP registration cards) has absolutely nothing to do with an MP's choice of party; regardless of when, how and why such an MP decided to switch sides. Nor does it provide guidance for the formulation of Parliamentarian Clubs or the like. As has been noted, MP defections are commonplace in Serbia and have been since the time of Milosevic's regime. Slobodan Vucetic In April 2003 three New Serbia MPs and two MPs from the Serbian Unity Party formed their own Parliamentary Club, which was named "Serbia" and led by New Serbia's Marko Petrovic. SPO became a Parliamentary party in July 2003 after the defection of DSS MP Tomislav Kitanovic. In October 2003, G17 Plus entered the Parliament after Vojvodina Coalition MP Sredoje Mihajlov joined Miroljub Labus's party. At the same time two Serbian Unity Party MPs joined the DOS list, one becoming a member of DS, the other joining DHSS…another MP transferred from Goran Svilanovic's GSS to DHSS and yet another MP left the Vojodina Coalition to join DHSS. With several MPs citing the lack of freedom of thought as a reason for changing 'teams', the lack of democracy within parties must be considered as one of the main reasons why Serbia has so many party political defections: the majority of parties still require MPs to follow the orders of the party leadership without question… With all these facts in mind, it is perhaps not peculiar at all that parliamentary defections are the norm in Serbia. Whisperings in the parliament's lobby insist that an MP can earn up to 200,000 euros, receive a new car and secure business deals for private firms by defecting. However, with a single exception involving SRS members some 10 years ago, no such accepting of payment to transfer allegiance has been proven.

CorD | July 2005

Faces & Places Scottish bagpipers perform at the traditional celebration of the Queen's birthday at the British Ambassadorial residence on 14th June.

Serbian PM Kostunica and Argentine football legend Diego Maradona pictured in Belgrade on 14th June. Maradona visited Belgrade to star in a documentary being shot by celebrated Balkan director Emir Kusturica.

State Union President, Svetozar Marovic, pictured in conversation with U.S. Under Secretary of State Nicholas Burns in Belgrade on 9th June. Serbian President, Boris Tadic, converses with the Czech Republic's Foreign Affairs Minister, Cyril Svoboda, during the Czech minister's visit to Belgrade on 8th June.

Serbian turbo-folk legend Svetlana 'Ceca' Raznatovic and Novi Sad Mayor, Maja Gojkovic, pictured in conversation at the celebration of the Russian Day of the Declaration of State Sovereignty in Belgrade's Russian Embassy on 10th June.

Swedish Ambassador in SCG, H.E. Lars Goran Engfeld, pictured on 14th June in Begrade's Media Centre awarding successful participants of the 8th and 9th generation anticorruption training programme, which was realised in two cycles by the Centre for Management and the Royal Swedish Agency for International Development.

CorD | July 2005

Faces & Places Italian Ambassador, H.E. Antonio Zanardi Landi (third from left) pictured in the Italian Embassy alongside Italian businessmen at the announcement of the opening of a new production line for the Golden Lady Factory on 24th May.

A diplomatic discussion at the Day of African Union reception held in Belgrade City Hall on 25th May. French Ambassador in SCG, H.E. Hugues Pernet, pictured at the opening reception of Belgrade's first Delifrance cafĂŠ in June.

Austrian Ambassador Gerhard Jandl pictured on 19th May at an Evening of Austrian Literature and Music at Belgrade's Austrian Cultural Forum. Attendants of the farewell reception for the outgoing director of Belgrade's Iranian Cultural Centre, Gholam Vafaei, at the Intercontinental Hotel on 14th June.

Performers of the Austrian Cultural Forum's Expressionist Dance Exhibition at Belgrade's Cvijeta Zuzuoric Art Pavilion on 13th June.

CorD | July 2005

Faces & Places Serbian President, Boris Tadic, pictured at the opening of a Serbian National Office in Vienna on 21st June.

Italian Ambassador, H.E. Antonio Zanardi Landi, and Mrs. Zanardi Landi, welcome Serbian PM Vojislav Kostunica to the 'Italian Fest' at the Italian Embassy in Belgrade on 2nd June.

Musicians of the Jewish Community - Belgrade, performing traditional Jewish wedding songs and resistance pieces on 26th May. The event was supported by the Austrian Cultural Forum and opened by Austrian Ambassador H.E. Gerhard Jandl. Canadian Ambassador, H.E. Donald P. McLennan, opens the Travelling Canadian Book Display in the Canadian Embassy's promotion centre on 26th May.

Hungarian Ambassador to SCG, H.E. J贸zsef Pandur, (left) and Serbian Trade and Tourism Minister, Bojan Dimitrijovic, pictured on 3rd June at a promotion of Hungarian wine in Belgrade's Diplomatic Club.

Serbian Crown-Prince Alexander Karadjordjevic awards Serbia's top 500 Senior School pupils at Belgrade's 'Beli Dvor' Royal Residence on 20th June.

CorD | July 2005

Faces & Places Keith Simmons, Head of the USAID Mission to SCG, pictured alongside Dragan Azdejkovic, president of the Krusevac Municipality, during an official visit of a USAID delegation to the central Serbian town on 22nd June.

Italian President, Carlo Azeglio Ciampi, and Serbian Prime Minister, Vojislav Kostunica, shake hands during their meeting at Rome's Quirinal Palace on Tuesday, 7th June.

An international video conference discussing the topic of an EU future for Belgrade, which took place simultaneously in Brussels, London and Belgrade's British Council on 27th May.

Newly Accredited H.E. Dr. Igor Furdik, Ambassador Extraordinary and Plenipotentiary of the Slovak Republic in Belgrade Born on 10th October 1947, the New Ambassador of the Slovak Republic in Belgrade began his further education in 1965 at the Faculty of Natural Sciences, Comenius University, Bratislava. From 1970 to '76 Dr. Furdik studied at the Institute of Physics in the Slovak Academy of Science, before beginning his career with the then Czechoslovakian Ministry of Foreign Affairs in Prague. From 1981 to '88 he served with the Czechoslovakian Embassy in Moscow. In 1991 he became Consul General and ChargĂŠ d'affaires of the Czech and Slovak Federal Republic in Zagreb, where he remained until 1993, before relocating to the Embassy of the Slovak Republic in Prague. Between 1999 and 2004 he served as Ambassador of The Slovak Republic to the Russian Federation, before becoming Director of the Personnel Department of the Slovak Ministry of Foreign Affairs in Bratislava. Ambassador Furdik speaks Russian, English, Serbian and Croatian and is a married father of three. â&#x20AC;˘

CorD | July 2005

YDA

INFORMAL DIPLOMACY Diplomatic events are typically formal gatherings requiring suits and ties, and involving polite, if a little staid, conversation. The music, if any, is classical, the d辿cor is stylish and the guests are always on their best behaviour. However, when the members and friends of the Young Diplomats' Association let their hair down, formalities are put on hold, the dress code is strictly casual and conversational topics are rather more varied than one would expect. All these elements combine to create an atmosphere which is thoroughly enjoyable in a venue which is never the same twice. By Mark Pullen, Photo Andy Dall

For this month's issue of CorD we met three members of the current organising committee of the YDA to get the low-down on this wholly informal organisa-

tion. In the pleasantly appropriate atmosphere of Belgrade's Lava Bar, we were met by The Austrian Embassy's J端rgenMichael Kleppich, the Turkish Embassy's Serpil Kocabas and the U.S. Embassy's Ryan Leong. Explaining the motivation for forming the YDA, J端rgen, who - along with Ayca Osafoglu, Andre Popov and Christian

J端rgen: "Being stationed here as part of the international community and mixing in those circles is fine, but we're living here in Serbia & Montenegro and so we all need to have contact with local people and international private companies as well."

CorD | July 2005

Wright - originally founded the YDA in SCG, said: "at my previous posting in Amman there was already a YDA existing and when I arrived here I saw that nothing like this was in existence. Then, at the reception of Turkish National Day on 29th October 2003, a few of us first discussed the need to form such an organisation". Officially, the general objective of the YDA is to provide the staff of all diplomatic and international organisations with the opportunity to meet with colleagues from other offices in a casual, relaxed atmosphere to exchange ideas, information and experiences. All personnel (diplomatic, technical, logistical, etc.) and their spouses are invited to join the meetings of the YDA. The YDA even has a web-group, which you can access at http://groups.msn.com/youngdiplomatsassociation-belgradeserbia The YDA is by no means unique to Belgrade, with other known Associations based in Guatemala, Tbilisi, Jakarta, Beijing, Sarajevo, Amman, Sydney and Budapest. The Serbia & Montenegro YDA organises informal drinks in Belgrade's various 'kafic's' at least once a month, but also organises outings and other informal diplomatic events. For instance, last month the members of the YDA took a day trip to Vojvodina's Salas 137 family farm to explore the grounds, enjoy a lunch of local produce and sample the domestic raki-

YDA ja. An important bonus of the YDA, as explained by Ryan Leong, is "we don't have membership fees or anything similar and our selling point to the management of the bars we frequent is that we're bringing extra business on an off night, like a Wednesday or a Thursday." Explaining the development of the YDA here in Belgrade, Jürgen said: "When we first asked around about who would be interested there were about 30 to 35 replies. However, we now have some 297 members, mostly based in Belgrade, but also coming from international missions based in Novi Sad and elsewhere." Despite the name, the Young Diplomats' Association is not necessarily exclusively for diplomats. As Ryan put it, "Members of the Young Diplomats' Association don't necessarily have to be young people or necessarily diplomats. But rather merely people who are interested in making international contacts, are involved in foreign affairs or multinational corporations or NGOs etc…this forum simply provides a launching pad for all sorts of other activities." Jürgen elaborated: "When we first started it was intended only for the diplomatic corps, but we figured out after a while that it provided a good way of making contacts with people. Being stationed here as part of the international community and mixing in those circles is fine, but we're living here in Serbia & Montenegro and so we all need to have contact with local people and international private companies as well. So we started including members of the local ministry of foreign affairs and the ministry of finance, people from the universities and local NGOs, etc. After a while a number of representatives of companies based around here began to join us." As well as being a fun way to relax and enjoy the diverse Belgrade nightlife, the YDA is also an extremely useful networking tool. "The idea is to provide junior diplomats, who do not have social contact with ambassadors and 1st secretaries, with a kind of social network. In other words, a third secretary or a secretary of the consul is not invited to National Day events or other official functions, but it's essential in the working career of any diplomat to have contact with other embassies. Now we have managed to extend this network beyond embassies to regional offices, NGOs and companies for the benefit of all of us involved," said Jürgen. "When the invitations come to the embassies they tend to hit the front office and the ambassador's office and rarely

Ryan: "Members of the Young Diplomats' Association don't necessarily have to be young people or necessarily diplomats. But rather merely people who are interested in making international contacts, are involved in foreign affairs or multi-national corporations or NGOs…" trickle down to the parts of the embassies where a lot of the work is really being down. The fact that the Young Diplomats have contacts within the ministries and the president's office, who aren't necessarily junior, but aren't ministers or deputy ministers, is mutually beneficial", Ryan explained. Jürgen continued: "If you're a junior diplomat and you have to organise something for the ambassador with one of

the local ministries, it can take a while waiting in line at the ministry of foreign affairs if you don't have a direct contact within the ministry. That's just one reason why such networking is crucial." As well as providing an important networking tool, the YDA meetings also provide respite from the formal lifestyle that is part and parcel of international diplomacy. "We're always at functions with hors d'oeuvres and waiters going around, so we really wanted something a bit more informal," said Serpil. Insisting, somewhat tongue in cheek, that YDA members don't get drunk, Jürgen said: "The informal nature of the YDA is because most of the members have to go to formal functions all the time and, of course, formally dress for work. So if you already spend 12 hours a day in a suit you're

Serpil: "It's a very hard job. You have to follow all the events going on, come up with new ideas and organise everything and I think that Jürgen really puts in a lot of effort and he will be difficult to replace."

absolutely not interested in doing so for another few hours with the YDA." After almost two years in existence, the Serbia & Montenegro YDA is diversifying its activities to include more excursions and trips. According to Jürgen "we've been inviting all of our members to come up with ideas for activities and events. Going out to a bar for a drink is nothing special…But if somebody's had a good experience somewhere a good trip or day out, go-carting or other leisure activity, etc. - they let us know and, if it's viable, we'll organise something similar for the YDA members to do together. For instance, the golf idea came from the wife of a friend of mine who recommended it after she'd been there. Now we'll run this event and, who knows? Maybe some people will take up golf afterwards." Jürgen has been leading the YDA's organising committee since the founding of the Association, but the burden is beginning to take its tool on the Austrian. Announcing that he is considering hanging up his beer glass, Jürgen said that it was perhaps time for somebody else to take over. "It's a very hard job. You have to follow all the events going on, come up with new ideas and organise everything and I think that Jürgen really puts in a lot of effort and he will be difficult to replace," said Serpil. The American Embassy's Christian Wright, who is the fourth member of the current organising committee, but was unable to make our meeting, told CorD: "It's just nice to be part of something that lasts longer than our tours of duty. By July I will be gone and only Jürgen will be left. Then energetic people like Ryan and Serpil will just keep running with it, which is the way it's supposed to be." The Young Diplomats' Association is always seeking to increase its membership, extend its network and diversify its activities. In the close-knit world of international diplomacy, the YDA provides a relaxing, informal opportunity to anyone seeking to broaden their horizons and make new contacts.• CorD | July 2005

Interview

5-STAR SUCCESS Aleksandra Sekulic-Stojanovic, photo: Andy Dall

Belgrade's Intercontinental Hotel recently recorded earnings of 100million dinars (â&#x201A;Ź1.2million), thus proving itself as a genuine "5-star" hotel in the heart of New Belgrade.

The main event and the main reason for this was the meeting of the European Bank in Belgrade. In order to organise that meeting in the best way, and when you have seven thousand sleeping nights, you have to do a lot in advance: to provide fully functioning internet connection; to secure sufficient telephone lines for the ease of our guests' communication; to reconstruct restaurants, etc. This is a chain of responsibilities. For example, if you have to install an internet or telephone system, the reception desk is involved as well, so you have to bring the hotel up to one level. Our efforts resulted in earnings of 100million dinars. Actually, that was just the number iced on the cake at the celebration. The actual figure was 104million dinars. Is it not a rarity for information, such as profit margins, to be made public? Hotel Intercontinental is owned by Intercontinental CG, which is a state-owned company. On the other hand, it now seems to be very difficult to hide anything from those tax-collectors, especially at a place like the Hotel Intercontinental. Numbers are public and we have nothing to hide. The question is if you want to say it publicly and we decided to do that as part

Belgrade could become the main city for stag ing important international meetings, as it is potentially the best regional hub for such events and gatherings. of our marketing. It is actually a kind of a message: you can do your best in any company, regardless of whether it's private or state-owned. We wanted to show that we were able to implement reforms. Our new slogan is: "When was the last time you experienced something new? If you can't remember, come to Intercontinental." Part of this campaign is that everyone should come to see why we have earned 100million dinars.

Miljan Vuksanovic, General Director of The Intercontinental Hotel

oreign visitors and jet-setters heading for Belgrade are increasingly choosing to stay at Belgrade's Intercontinental Hotel. This month Intercontinental general director, Miljan Vuksanovic, explains to CorD why the hotel is proving so successful and how he intends to remain competitive in an everchanging Belgrade. One of the most important pieces of commercial news of late was the success of Intercontinental, which set record earnings of 100million dinars. What contributed to this unprecedented success? Someone who makes an overnight success must have been doing a lot the day before. Our success is similar to this rule. This wasn't a jackpot on the lottery; we have done a lot in past six moths. Of course, we didn't plan to earn 100millions dinars, but we planned to realise one project started at the end of last year.

CorD | July 2005

How many guests choose to stay in the hotel annually, on average, and how would you describe the profile of your guests? During a year we expect around 90,000 guests, 95 per cent of which are foreign visitors. Moreover, we have various foreign partners who have been coming to stay with us for several years. Our marketing strategy is noteworthy in this regard because addressing those who live here is often akin to "shooting into an abyss". This is one element that makes our marketing strategy slightly more difficult. However, the hotel has now rejoined the international chain of hotels and we are undertaking projects to modify some parts of the hotel. It is necessary to reconstruct some elements of the hotel, because the Intercontinental chain has specialised, very high standards. We have nine months remaining to complete this task. We were lucky that the EBRD conference was held here in Belgrade because we have applied for a reconstruction loan from that very institution. Investing in Serbia's hotels is the best investment anybody could make. How are you preparing for the upcoming European Basketball Championships, when many foreign visitors are

Interview expected to head to Belgrade? and more money to be invested into the development of the city. One of the most important modifications is extending our One of the most important questions to ask ourselves, as beds. This is because basketball players, as well as many of the hotel managers, is why someone would want to come to fans who have been playing basketball their entire lives, have Belgrade. The answer is not the hotels themselves, but rather the legs that are longer than our beds. We have managed to com- economy, culture and tourism facilities. plete this task and I can say that our extended beds are among the best and most comfortable in the city. What development route is being taken by Serbia's hotel So, first of all you have to make people feel comfortable, to management and hotel industry in general? When we talk about hotel management in Belgrade, and parensure they get a good night's sleep. Secondly, security is a crucial issue because the Euro-Basket ticularly about the Intercontinental, it is common knowledge that Championships will be very attractive, particularly for the guests enjoy their stay and admire the way hotels are run. This is media. Events that are attractive to the media are open to abuse due to the atmosphere, the efficiency and the way the staff make and, thus, it is important that all hotels have efficient capacities guests feel special. This requires paying full attention to every and unique, well-organised structures. With this in mind, we have already facilitat- Hotels in and of themselves do not generate visits to the city. You ed a special 'Safety & Security' programme, would never hear anybody say "I would like to visit Belgrade, but which adheres to the highest global stanI don't want to go because there are no good hotels" dards. The EBRD attendees asked us if we had a procedure in the case of a bomb alert and when we single guest in order to make them feel well and make them feel showed them our system they were very satisfied. They then privileged. The Intercontinental Hotel is one of the first hotels in asked if we had a procedure in the case of a bomb alert beyond Belgrade that has managed to fulfil this obligation. Nowadays it the building of the hotel and when we showed them that we did is noticeable that other hotels in the country are attempting to indeed they almost fainted. copy this modern standard. Similar models were adopted in Thirdly, consistent communication lines are very significant, Budapest, as they had been earlier in Vienna, and the same trend including fast internet connections and efficient telephone lines, can also be seen in cities such as Bratislava, Bucharest and Sofia. which are a necessity of the modern world. Our guests include In a certain way we are trying to overcome the delay of modmany businessmen who are accustomed to carrying their laptop ernising facilities to conform to world trends, which have been computers all the time and they need to have online access all evident in our region.â&#x20AC;˘ the time. Finally, every good hotel needs to provide safety deposit FAMOUS GUESTS boxes for all its guests, because visitors want to feel safe, secure Every one of our guests is a special person and kind of and comfortable at all times. a unique story. A special challenge this hotel is facing One of the reasons for our extremely efficient preparedness and overcoming with much effort is the need to satisfy is my personal experience in the U.S. famous actors, musicians, sportsmen and politicians. It is sometimes very difficult to fulfil their needs, espeAs a success hotel director here in the city, what would cially regarding special diets, room requirements or you advise as being of utmost importance in order for even the clothing worn by our personnel. But we manBelgrade to make its hotels more attractive? age to make them feel comfortable in every way they Hotel management and the hotel industry in Belgrade are on deserve. the precipice of a great change. If the economic situation in I have to mention some of the most popular guests who Belgrade improves and the city becomes interesting economicalhave chosen to stay at Belgrade's Intercontinental ly and from a lifestyle perspective then, obviously, people will Hotel: There have been famous actors and actresses come. However, if Belgrade fails to become 'interesting' they such as Sofia Loren, Oliver Reed, Sophie Marseau, Z.L. won't come. Trentignan; there have been famous musicians such as Hotels in and of themselves do not generate visits to the city. Tina Turner, Eric Clapton, Elton John, B.B. King, Julio You would never hear anybody say "I would like to visit Iglesias, Goran Bregovic and the group Dire Straits. We Belgrade, but I don't want to go because there are no good have also had classical musicians like Arthur hotels". Hotel management is marginalised in comparison to the Rubinstein, Zubin Mehta, Nigel Kennedy and recently possibilities that Belgrade, as the capital city, has to offer. That Luciano Pavarotti. A lot of sportsmen have visited our said, Belgrade City can nurture a special hotel offer, principally hotel, among them Franz Beckenbauer, Boris Becker, to market itself as a centre for conventions: Belgrade could Monica Seles and Bobby Fisher. Among famous politicians are certainly Indira Gandhi, Swedish king Gustav, become the main city for staging important international meetWillie Brandt, Karl Karstens and many more. ings, as it is potentially the best regional hub for such events and The most important thing is to prepare everything in gatherings. advance of their visit, in order to ensure that they will In this district there is, in addition to the Intercontinental, the be secure and safe during their stay in Belgrade. Sava Centre, the Hyatt Regency Hotel, etc. Moreover, there is a direct transport route to the airport, without the hindrance of VAST EXPERIENCE traffic lights, and it is possible to transfer from Surcin to this district in just ten minutes. That is very important to the safety, Miljan Vuksanovic graduated from the Electro-technisecurity and comfort factor of our guests because it is secure, cal faculty and earned his Masters' in the field of manefficient and fast. Confirmation that the layout of the New agement and finances in the U.S. Over the course of his Belgrade centre is excellently organised for such events was procareer, Vuksanovic has led or been involved in various vided during by the EBRD AGM. projects worth in excess of a billion dollars in over An example of this type of strategic layout is provided by the twenty countries. Due to his vast experience, he was earlier example of Long Beach, California, which boomed in the given the responsibility of taking over the Intercon1920s, but later collapsed. It was built on the 'convention centre' tinental CG and revitalising the Hotel. principle and if Belgrade follows this example we can expect more CorD | July 2005

EXECUTIVE TRANSPORT

SUPERLATIVE DRIVING Along with deciding on a career, a partner and a home, choosing which car to drive is one of the most important choices one can make in life. A car, much like a suit, can define a man. As well as being an essential mode of transport, the car is also a status symbol, a provider of freedom, even a friend. By Bob Holt

Fuel economy may be outstanding when a gentle driving style is applied, encouraged by the character of this vehicle. At the touch of a button it can even run 'silently' as a pure electric vehicle, but the batteries alone won't take you very far. A family car of the highest order, the Toyota Prius is fast, reliable and, above all, ecologically friendly. On the other side of the pond, the 2005 North American Car of the Year - the 2005 Chrysler 300C - is much more of an executive model. The current 300C is a completely redesigned sport-sedan, which was first shown at the 2003 New York Auto Show as a concept car and first introduced in the spring of 2004 as an early 2005 model. The new 300C was built to bring a high performance, sporty sedan to compete with the likes of the BMW 5-Series,

his month we look at the most popular cars amongst executives in Serbia today, as well as detailing the North American and European Cars of the Year. The coveted Car of the Year award is the most prestigious title that can be bestowed upon a passenger vehicle, and is greatly sought after on both sides of the Atlantic. With manufacturers vying for the title of Top Car every year, it is rare that the same model can win the title twice. However, this year that was indeed the case when the Toyota Prius, last year's North American Car of the Year, became Europe's Car of the Year for 2005. Thirty-seven jurors from Italy's Auto Magazine, Great Britain's Autocar Magazine, Spain's Autopisto magazine, the Netherlands' Autovisie publication, Germany's Stern and Sweden's Vi The Toyota Prius, European Car of the Year 2005, has appealBilgare gave their points to the hybrid ing looks and good accommodation. Performance is relativeToyota, with the latest Citroen C4 ranked second. ly lively, with the availability of 110 hp when combining the The Toyota Prius is a front wheel t hrust of the Atkinson-cycle engine and the electric motor. drive 5-door hatchback, which boasts four cylinders 1.5 (57kW, 77hp). It has the Cadillac CTS, and the Mercedes-Benz E-Class. The 300C an AC electrical system and a Synchron (50kW) motor. According to the verdict of the jurors, the pioneer Prius of shares these cars' front engine, rear-wheel drive layout and 1997 set a new standard for clean emissions among petrol- offers comparable luxury at a lower price. The 300C is sold in Europe as both a sedan and a station powered cars, but Toyota's first hybrid lacked performance, handling and refinement. The European Car of the Year 2005 wagon. The station wagon, sold in Europe as the 300C-Touring is described as being everything the original was not. It has (not to be confused with the US sedan's "Touring" option appealing looks and good accommodation. Performance is rel- package), is based on the U.S. market Dodge Magnum (the atively lively, with the availability of 110 hp when combining Dodge nameplate is not used in Europe except on Germanthe thrust of the Atkinson-cycle engine and the electric motor. market Vipers). The 300C-Touring differs from the Magnum in

CorD | July 2005

EXECUTIVE TRANSPORT that its exterior styling and interior fitment are that of the 300/300C instead of the less-luxurious Magnum. The new 300C is offered in four versions: the basic entry level 300C, the "Touring" version, a more luxurious "Limited" model, and the top-of the line 300C. The basic 300C comes standard with 17 in (432 mm) alloy wheels, four-wheel disc brakes, traction control, and a fourspeed automatic transmission. It uses a 2.7 L LH V6 making 190 hp (142 kW). The Touring model uses a 3.5 L V6, producing 250 hp (186

Toyota Prius - European car of the year kW) and 250 ft.lbf (339 Nm) of torque. It also uses a 4-speed automatic transmission, but comes with fog lamps, yaw control, and other luxury appointments. The top of the line 300C version uses a 5.7 L Hemi V8. This engine can run on four cylinders when less power is needed, reducing fuel consumption. The EPA has rated the 300C as getting 17 miles-per-gallon in urban areas and 25 miles-per-gallon on the open road. When all 8 cylinders are needed, the 300C can make 340 hp (254 kW) and 390 lb ft (529 Nm) torque. Initial indications are that the car will be a genuine hit for Chrysler. It is priced below similar rear-drive, high-performance V8 sedans from other marks; and shrewd product placements in several hip-hop videos have helped establish it as a

2005 Chrysler 300C - North American car of the year cool and desirable vehicle. Media reports have indicated sales approaching 10,000 per month and shortages developing. In fact, one account had U.S. rap star Snoop Dogg leaving a message for Chrysler chairman Dieter Zetsche saying, "What I gotta do to get that brand-new C outta you?" The new 300C and Dodge Magnum both share the Chrysler LX platform, which is based on the previous-generation Mercedes-Benz E-Class. The 300C was the 2005 Motor Trend Car of the Year and was on Car and Driver's Ten Best list for 2005. It also won the

"The Chysler 300C is an extremely compelling combination of power, responsiveness, room and refinement. A home run on significance and a slam dunk on value; clearly superior to its rivals in every way." North American Car of the Year and Canadian Car of the Year Best New Luxury Car awards. The Chrysler 300C fended off strong challenges from the Ford Mustang and hybrid Honda Accord to win the 2005 title. According to Angus MacKenzie, editor-in-chief of America's Motor Trend magazine, "The Chysler 300 is an extremely compelling combination of power, responsiveness, room and refinement. A home run on significance and a slam dunk on value; clearly superior to its rivals in every way." Choosing the right car to drive is as important here in Serbia as it is in 'The West'. Arriving for a business meeting in a gleaming luxury car can leave an excellent first impression and stamp the status of the driver on the minds of those with whom he hopes to do business. Moreover, thanks to the recent introduction of leasing services by Serbiaâ&#x20AC;&#x2122;s banks, and with loans now also available at increasingly competitive rates, one need not be the wealthiest of entrepreneurs to drive a luxury model car around the streets of Belgrade. Following the establishing of a number of luxury car dealerships in Belgrade, a number of the world's top models are available to executives and diplomats resident in the SCG capital. DaimlerChrysler (Mercedes Benz) has an extremely strong presence in the country and dominates Serbia's luxury car market, along with Audi. However, BMW also boasts a major dealership on the city's Partizanski Put and the recently established Porsche SCG has established a dealership on the Belgrade-Zagreb motorway close to the Autokomerc Carting Centre. One may spot a number of Bentleys and Infinities on Belgrade's streets, but these have been privately imported from neighbouring countries. Managers and highfliers will soon be able to choose from a wider variety of luxury cars, beginning with the extremely popular Lexus brand, which is scheduled to hit the local market by the end of the year, via Toyota. CorD | July 2005

New Management The formation of the new management structure of Piraeus Atlas Bank got underway in June with the appointing of Yannis Nikolopoulos to the post of deputy general director. Following the successful takeover of Altas Bank, with the purchase of 80 per cent of the Serbian bank's shares by Greek strategic partner Piraeus Bank S.A., the forming of a new Executive Board for the renamed Piraeus Atlas Bank is expected to take place shortly. However, long Yannis Nikolopuolos, -time executive BraniDeputy General Manager mir Markovic will remain General Director of the bank, while the co-presidents of the board will be Michael Colakides and Dusko Knezevic. The takeover process of Atlas bank was finalised in late May, when the Greek Bank become the majority owner of the Serbian bank with 80 per cent. In the foreseeable future, Piraeus Atlas Bank's operations will be orientated towards extending credit services for corporate clients, particularly those from the SME sector. Piraeus Atlas will also prioritise the retail sector of their operations, with the existing offer to be extended to include long-term property mortgages and short to mid-term purchasing loans. To this end, Piraeus Atlas Bank has secured the necessary means to provide credits over longer terms and with more competitive interest rates than were previously available. The bank will also continue to expand its existing branch network across Serbia over the course of this and the coming years. Parent bank, Piraeus Bank, is one of the most successful banks operating in Greece and the region of Southeast Europe. It boasts its own network of 400 branch offices in seven countries and has total assets of €17.8 billion, employing 7,400 people. In addition to its presence in Greece, Romania, Albania and Bulgaria, Piraeus Bank also operates in the UK and the U.S. with assets of almost a billion euros and a credit portfolio of €580million. The unprecedented pace of the bank's development on the Balkan Peninsula is proven by the fact that its branch network increased during 2003 and 2004 from just 29 branches to more than 100. Piraeus Bank continues to broaden its horizons and expand its operations. In June 2005, via the Cyprus Stock Exchange, Piraeus bought 69 per cent of the capital of Egypt Commercial Bank of Cairo (ECB). EBC is a middle tier Egyptian bank with 18 branches (25 per year), it employs 560 people and has €437million in assets, and a BB Fitch credit rating.

CorD | July 2005

Unique Package Raiffeisenbank is offering a unique service package to any new client who opens a current account with the Bank. The package includes a cash loan from €1,000 to €3,000, a current account overdraft facility, a Visa Electron Card with one year subscription free - which allows payment of goods and servClient's salary EUR

Cash loan amount

Monthly annuity

150 - 300

EUR 1,000

EUR 21.49

301 - 600

EUR 1,500

EUR 32.24

601 - 1,000

EUR 2,000

EUR 42.99

1,000 - 1,500

EUR 2,500

EUR 53.73

1,501 - 2,000

EUR 3,000

EUR 64.48

Note: The above figures are indicative and serve only for information purposes; effective interest rate from 11.93% to 11.98%

ices above 2,000dinars in three equal monthly installments, even at those points of sales that normally do not provide deferred payment options; RaiffeisenOnLine E-banking services which allows you to check your accounts balance and execute financial transactions, without coming to the Bank; Standing order - which allows you to entrust your Bank to effect payments of all your regular monthly liabilities and utility bills. The opening and maintenance of current accounts with Raiffeisenbank is free and clients may use any services included in the offered service package. Raiffeisenbank's cash loan procedure is extremely simple and clients may be granted such loans without any down payment, deposit and/or guarantors immediately after opening a current account with Raiffeisenbank, even prior to any salary transfer. Cash loans may also be used for covering negative balances in clients' current accounts with other banks. Cash loan amounts are subject to the client's income level.

Back in business! U.S. Steel Serbia has announced the commencement of production on blast furnace No.1, which was out of order for almost two decades. The re-opening of the furnace was promoted at a 22nd June ceremony in Smederevo, which was attended by Serbian government officials and executive directors from U.S. Steel's Pittsburgh headquarters. This blast furnace is one of two in the steel facility that was last operational in 1987. The restart of the blast furnace, which was renewed within a capital project worth $33.1million, enables the Smederevo steel factory to reach full production capacity of 2.2 million tonnes per year. Prior to the 22nd June opening ceremony, Michael Fedorenko, general manager of the company, said that the reopening would "mark a new economic course, not only in U.S. Steel Serbia, but in the entire Smederevo region. "For Serbia, the restart of production on this blast furnace - after 18 years out of order - represents a model of economic rebirth and progress. Blast furnace No.1 has represented a symbol of negligence and failure and warning about previous financial loss and economic desperation." Fedorenko continued: "the production restart on 22nd June means that we will reach iron production levels necessary for production of raw steel with a projected capacity of 2.2 million tonnes per year. In its history, the Smederevo steel factory has never even come close to this production level…" Prior to the purchase of the former Sartid plant by the U.S. Steel Corporation in 2003, its maximum production was achieved in 1997 with 847,000 tonnes. Last year, U.S. Steel Serbia produced more than 1.1 million tonnes. A new record is expected to be set this year. Last year the company exported products worth more than $420 million.

U.S. Steel Serbia boasts more than 8,500 employees in its production lines in Smederevo, Sabac and Kucevo. The U.S. Steel delegation at the 22nd June ceremony was led by John Surma, chief executive director, and John Goodish, chief operations director, of the U.S. Steel Corporation.

Reopened blast furnace No.1

Deposits Fixed

E-Banking Growth

During the last year, foreign currency deposits in Delta Banka's branches increased by more than 80 per cent. This year, the amount is constantly increasing, with a current total of over 15billion dinars of citizen's savings. Of that total, foreign currency savings stand at €182million. Based on these facts, Delta Banka is one of most highly ranked of all the banks operating in Serbia. Making a further step in advancement, Delta Banka has widened its offer by providing its clients with the possibility to withdraw monthly interest from fixed deposits in foreign currency deposited over 12, 24 and 36-month terms. It is now also possible to withdraw deposits before the expiry of a client's fixed term. Effective interest rates for savings reach six per cent, based on the amount and period with a minimum of €1,000 (in dinar equivalent) for this type of deposit. This new saving option is aimed at anyone who deposits more than €1,000 as foreign currency savings, but can also prove very attractive for owners of frozen citizen's foreign currency savings, since payments of this years' instalment have just begun.

The E-banking services of Vojvodjanska banka a.d. Novi Sad enable clients to manage their accounts without leaving the office and save the maximum amount of time and effort, thus increasing productivity and cutting expenses. The costs of E-banking services are on average 35 per cent lower than the costs of the same transactions performed at the point of sale. Furthermore, instead of having to visit branches frequently, clients can employ computer technology to maintain constant control of their accounts with the option of issuing non-cash orders. E-banking allows clients to check account balances, cash flow, statements and alterations, as well as to issue non-cash orders on the spot or post-dated. E-banking also lets clients perform international transfers and transactions, make foreign payments, check inflow and statements, cash flows and balances of various currencies. Clients are able to employ the personal version of the E-banking package, designed specifically for small enterprises, as well as the corporate version for larger companies. The corporate version allows managers to maintain control of all payment systems and, thereby, create, sign, send and check orders. Vojvodjanska banka employs the most secure protection system for this type of service, with all data encrypted by an asymmetric key which is located in a smart card - the most

Educational Projects for 35,000 Children OMV, Central Europe's leading oil and gas Group, has decided to extend last year's Move & Help campaign in 2005. In its first year the project gave some 17,000 children and teenagers access to education. In 2005, international educational projects with Caritas, SOS Children's Village and UNICEF will reach out to over 35,000 children in Austria, Bulgaria, Pakistan, Romania and Slovakia. Once again the whole year will be shaped by the smiley :-) at OMV. In May over 380 OMV employees will enter the Vienna City Marathon in a show of support for the campaign. For each kilometre covered OMV will donate €1. There will be a treadmill in the OMV tent on Heldenplatz for friends and family to use. For every 10 meters covered OMV will also contribute €1. In June and August, OMV filling stations in 12 countries will be giving away postcards and pencils to raise awareness of illiteracy. E-cards can also be sent via the OMV portal www.omv.com/moveandhelp from June. One euro will be transferred to the OMV Move&Help fund for every ecard sent. In many countries schooling is substandard or entirely absent. The consequences include unemployment, alienation and poverty. OMV is confronted

with this situation in many of the countries in which it operates. "We want to give children an education and a future with OMV Move & Help", said OMV CEO Wolfgang Ruttenstorfer. "This year we will help over 35,000 children with our partners Caritas, SOS Children's Village and UNICEF." OMV Move & Help projects include: Caritas is helping Roma children in Bulgaria, Romania and Slovakia, where they are among the poorest of the poor. OMV Move & Help supports the children with school equipment, hygiene articles and warm meals; SOS Children's Village helps minors seeking asylum in Austria to spend their time in Austria more constructively while they wait for their asylum applications to be processed, for example, through opening up access to education and thus the labour market; UNICEF is running a major project in Pakistan to send girls to school and ensure that they have access to potable water and school and learning materials. The aim is to increase attendance to 15% among girls. OMV wants Move & Help to raise awareness of the fact that basic literacy skills should not be taken for granted. The whole of 2005 will be played out under the twin themes of education and the smiley :-).

reliable medium for this type of data. It is secured with a digital signature that guarantees validity and deniability of transferred data, as well as security and completeness of the sent messages. The extensive business network of Vojvodjanska banka ensures that E-banking can be used nationwide in Serbia. The solution also allows clients to access their accounts with other banks. All that clients need to use this service is a computer with a modem, while the Bank provides the smart card, card reader and installation CD, as well as the necessary training. The number of clients opting to use Vojvodjanska's E-banking services is constantly growing. Currently, the bank boasts some 4,000 E-banking users. Due to the constant increase in the number of clients, the Bank has extended its working hours to process electronic orders towards other banks.

Best Business Space The long awaited Grand Opening of USCE Tower took place on 1st July 2005, providing the first truly Class A business facility in the country, housed in this, the tallest and most superbly developed building anywhere in the Balkans. The building comprises 23,000m2 of office space and will boast an international quality restaurant on the 25th "Penthouse" floor, with spectacular vistas of the city of Belgrade. With initial parking facilities for 400 vehicles, the second phase of development will see this number increase to 2,000 parking lots upon construction of a 60,000m2 subterranean facility. USCE Tower features three conference halls and other meeting facilities, covering half of the 24th floor, and has been developed in accordance with global Class A specifications. Thus, every business unit is installed with the latest digital communication and fibre optic technology and the building's staff adhere to the highest facility management standards anywhere. According to Sinisa Brasanac, Chairman of the Board of E.C. d.o.o, "Usce Tower is the best and most modern business space anywhere in Serbia, and will remain so for at least the next five years". Explaining that the conference halls and restaurant will be available to tenants and clients, as well as external organisations choosing to hire the facilities, Mr. Brasanac said that the structure is located on a "very accessible site and perhaps the most interesting location in Belgrade; situated in the fastest growing and most rapidly developing area of Belgrade, with the Sava Centre, Mercator Mall, Hyatt Regency and Intercontinental hotels all nearby." When it comes to traffic and transport links, there is no better spot anywhere in the city of Belgrade. Located beside the confluence of the Danube and Sava rivers, USCE Tower also sits on the main crossroads of the old town and New Belgrade. It is just 500metres from the motorway and a mere 15-minute drive from Belgrade's Surcin Airport, making for extremely swift transfer times. The later phases of the development will see the provision of direct links: "Transport plans are precisely defined and there will be direct public transport links to the city", said Brasanac. The second and third phases of the development will see the construction of a huge retail and leisure park - the first of its type in the country. The development will include a three-storey shopping mall, restaurants, bars, a multiplex cinema, leisure centre, etc.

Coca-Cola Restores Parks Coca-Cola Serbia & Montenegro held a humanitarian action event, under the heading "Day of good will" and organised in conjunction with Belgrade City Hall on Sunday 29th May. Using funds raised during the CorD Charity Masters Race, in which staff of Coca-Cola HBC participated, May's charity event was organised to help the restoration of parks located in the Dr. Miroslav Zotovic and Dr. Olga Dedijer paediatric clinics. In addition to Coca-Cola HBC staff members, senior representatives of the Belgrade City Council and media representatives participated by mowing lawns, planting flowers, installing park benches, painting fences and fixing see-saws.

Galathea Symposium

Anyone who is concerned that such a massive development could imperil the lush, green surroundings of USCE Tower can rest easy, because, as Mr. Brasanac said, "the development will strictly adhere to the zoning requirements and the parkland surrounding the building and the greater complex will remain intact." European Construction Company has already begun renting its more than 20,000m2 of office space, with Hypo Alpe-Adria Bank the biggest confirmed tenant to date, having leased the first ten floors of the building. Brasanac specified that USCE Tower has innumerable advantages over other similar structures, and rental prices are extremely competitive, considering the high standards of the complex. Anyone interested in renting office space or organising conferences, gathering or other events in Usce Tower should contact European Construction d.o.o. address Bulevar Mihajla Pupina 85b, 11 070 New Belgrade on (+381 11) 30 10 856. For further information, visit the websites at www.euc.co.yu and www.usectower.com

Belgrade's Galathea Aesthetic Surgery played host to the fourth Recent Advances in Plastic Surgery (R.A.P.S) symposium between 25th and 26th June in Belgrade. The event was attended by the most prominent plastic surgeons from the U.S., France and Brazil, who gave lectures and performed demonstrative operations. Throughout the past few years Galathea has been among the organisers and hosts of international symposiums, held under the patronage of the Texas-based University of Lipoplastics, of which Dr Mico Djuricic is among the founders and professors. The essence of such constant and dynamic communications at an international level is the exchange of experiences and ideas, and their objective is the education of young specialists, as well as the constant perfection of specialists' skills and general development of plastic surgery and maintenance of the well-being of each particular patient.

ARTS & ENTERTAINMENT

POSITIVE FORCE:

No doubt about it, this year's Exit Festival in Novi Sad promises to be the pre-eminent rock and electronic music festival in the Balkans and, now in its fifth year, Exit also finds itself firmly entrenched in the cultural landscape of Serbia. With international acts such as the White Stripes, Underworld, Fatboy Slim, Garbage and Carl Cox booked to play at the imposing and stunning labyrinth of the Petrovaradin Fortress and crowds estimated to be well above 150,000 for the four day festival, Exit is certainly on the minds of most of the young people in Serbia, and is sneaking its way into the canon of European music festival giants like Glastonbury in England and Roskilde in Denmark.

Text & Photo Alex Papke

xit uses its setting to massive effect, placing 19 performance areas throughout the inside of a fortress that has been dubbed by some as the 'Gibraltar of the Danube', and, with over 600 performances scheduled for the duration of the festival's four day run from Thursday, 7th July to Sunday, 10th July, music lovers will have a variety of tastes to choose from. First time festival goers will be amazed at the magnitude of the event as they meander the sublimely lit fortress from stage to stage hearing an array of musical styles, while experienced 'Exit-ers' will clutch their programme and bee-line to the acts and stages they've chosen to hit in advance, both groups meeting at one of the several 'chill-out' areas set up to provide views over the Danube and enough rest so that the party can continue to sunrise in the massive DJ arena that can hold 30,000. The background to this musical festival is not limited to the fortress though, it extends to an idea borne out of a

CorD | July 2005

political movement and the organisers' desire to instil a sense of activism in a younger generation, one that can take many forms in a receptive and restless audience and one that can help Serbia be a force for positive as it enters a united Europe. Exit came about as a protest to the situation in Yugoslavia in the late â&#x20AC;&#x2DC;90s, using a model that employed entertainment as a means to deliver a political message to an increasingly disaffected youth that had seen their efforts to cause change in a worsening situation passed over by time and an oppressive regime. One of the founders of the movement, Bojan Boskovic, entered Novi Sad University in the autumn of 1996 and is not an extremely political soul. In the wake of the student protests that broke out in the autumn of that year as a result of reported fraud in local elections, Boskovic found himself becoming more aware and involved, and helped to start the Student Union at the university. This body was established as completely independent from the university and fought to secure rights and a voice to the student population. The university's administration, though, was filled with polit-

ARTS & ENTERTAINMENT ical operatives who saw this as a challenge to their power and threw the union out of the university. This action, designed to silence their movement, would only serve to drive the core elements closer together to create a coalition that would subsequently be a part of the engine that would bring about democratic changes in the country. "You can't say how bad the situation was at the time," Boskovic says as he sits down to describe the origins of Exit. In 1999, Yugoslavia was a remainder of its former self, having lived through civil wars that ripped the country apart, sanctions that crippled the economy and drove its citizens to the black market and isolation in Europe, protests that fell apart under the weight of the regime and a bombing campaign that put a crumbling nation in the crosshairs of the West. Boskovic describes a creeping apathy that was setting on the people of his generation, who had no money, who were doing anything to survive including selling gasoline and cigarettes on the black market and who had lived almost half their lives in the turmoil of a country that was becoming an island separated from the outside world. In turn, the apathy was compounded by disgust for, and distrust of, the system that acted to drive kids away and to not vote in elections that were seen as shams. The first project the team that would become Exit organised was the "Straight to the Head" multimedia protest in October 1999. The activists saw an opportunity in giving free concerts and rock 'n' roll music as a way to get young people together. Once there though, they were also shown video retrospectives of the wars, refugees and poverty. Emboldened by the response they received to this monthlong event - over 20,000 people showed up - the organisers set their sights on creating the largest student protest ever, a continuous 100 days of concerts leading up to the presidential election in 2000. Their aim was to drive all social groups, especially young people, to the polls and vote Milosevic out of power. Activism in the situation was built slowly throughout that summer, with concerts drawing in the critical mass that would be necessary to impact change and raise awareness. The final act, in which 500,000 people took to the streets to forcibly remove Milosevic, was greeted to a series of concerts put on by the Exit crew throughout the country, drawing people into town squares, giving them rock music and the power of a collective voice in a time of protest. From this, Exit solidified itself in a generation and at an age just above zero it had accomplished what it set out to do: involve youth in the political process and remove the oppressive regime from power. Revolution, though, can occur in a fever pitched night no one will forget, but the morning after, one hard and treacherous slog is replaced by another of unknown distance. In this transition, Exit has managed to stay ahead of the game by being true to itself through the striking of a careful balance between bringing high quality music along with a social activism message. To achieve this, many NGOs are given a forum for expression where they can reach the more than one hundred thousand people that attend. Last year 35 NGOs were present in the festival's NGO-zone, with MTV signing on to use Exit to promote their own campaign called Exit that seeks to bring awareness to the problem of human trafficking. The symbiosis achieved between Exit and MTV is natural in this light, and what could be a hollow promotional tie is substantiated and made better as a result. With about 15 pre cent of the crowd coming from abroad, Boskovic also sees Exit contributing to the country's tourism income and to the country's image abroad. "We want to be a

force for positive in the country. We want to show the world that Serbs are good people and that we know how to have fun." Combine the tourists with the 1,800 journalists that are expected to come and a major presence from BBC Radio at the festival and you begin to see that Exit has become one of the most powerful mouthpieces that Serbia has today in communicating a positive message to the world, not to mention the estimated $5 million economic impact it has made

Bojan Boskovic on Vojvodina in its history. This all stands in contrast to some of the political and legal hurdles that they've faced, including 2003's fight with Novi Sad officials to use Petrovaradin Fortress and 2004's arrest and jailing of Boskovic for giving out too many free tickets, one which he feels was politically motivated due to its proximity in time to the presidential elections. But the politicians are slowly beginning to see the power that Exit has and the danger of getting in its way and being 'the one who stops the party'. Though saddled with two criminal charges against him, each carrying a possible 3 to 11 year prison sentence, Boskovic is hopeful that he can continue to change the system and work with it to gain acceptance of this youth movement, as evidenced by the monetary support the city of Novi Sad is now giving to Exit. As he casually adds that he still hasn't finished the exams needed to earn his degree, the gravity of what this young man has done in driving change in his country and creating an internationally recognised music festival causes him to smile, almost as if he himself doesn't even believe it to be true. Typically, when asked which performance he will be sure not to miss this year, Boskovic singles out Edo Maajka, who carries the unique description of Bosnian Muslim rapper and who often addresses the social issues of the fractured former Yugoslav republics in his lyrics. The desire to see a multi-cultural and harmonious society in Serbia is never off Boskovic's radar, but neither is his intent to throw a good party and help awaken the country from a bad dream set to turbo-folk music. "In the future I see a global movement in Exit. Doing good for the world, and having a good time doing it," Boskovic says, smiling in anticipation of what is sure to be the best party of the year, then leaving to attend to the countless hours of work ahead of him in its creation. This year at Exit, enjoy the music, but take time to think where it all came from and what one can do to keep it going.â&#x20AC;˘ CorD | July 2005

TRAVEL & TOURISM

ADRIATIC PEARLS HERCEG NOVI & DUBROVNIK

Jelica Putnikovic

Despite the fact that they now belong to two separate states, the two most hallowed summer holiday destinations of the former Yugoslavia - Montenegro's Herceg Novi and Croatia's Dubrovnik - are once again enticing tourists in droves to the Southern Adriatic coast, and are doing so in close conjunction with one another.

ver the past few years, holidaymakers in greater and greater numbers are packing coaches travelling between Boka Kotorska (Kotor Fjord) and the Dubrovnik Riviera during the summer season. These sun seekers include masses of foreign tourists, but also domestic holidaymakers from SCG and Croatia, though, of course, even locals need passports to cross the borders nowadays. After a decade of post-conflict mistrust, the normalising of customs relations between the former Yugoslav republics has led to the establishing of fine bilateral relations regarding tourism movements on the Adriatic coast. Last year Croatian customs officers asked only that SCG tourists show that they had â&#x201A;Ź100 in their pockets, and now visas have been totally rescinded for citizens of the State Union choosing to holiday in Croatia. At the Debeli breg border crossing, which separates Boka Kotorska from the Dubrovnik region, waiting times are minimal and there is no seasonal throng of frustrated travellers. Co-operation between tourism professionals on both sides of the border has improved to such an extent that Dubrovnik's hoteliers are now recommending the Montenegrin coast to their foreign guests. The proud citizens of Herceg Novi readily remind visitors of the likes of Zuko Dzumhur - just one of the many artists who visited the town and "forgot to leave".

CorD | July 2005

Explaining why he chose to remain, Dzumhur is quoted as saying: "Under the blue cap of the heavens, here everything blossoms under the sun and ripens under the sun. The poet would say: Here one lives from the sun, because of the sun, for the sunâ&#x20AC;ŚTherefore I came and stayed in this town." Tourist brochures about Herceg Novi state that the town "is a stone picture and a masterpiece of civilisation, but also a luxurious botanical garden". Nestled between Mount Orjen - the highest mountain of the Dinaric Massif, standing at 1,895m - and the entrance to the Boka Kotorska Fjord - officially, since 1997, internationally recognised as one of the 28 most beautiful gulfs in the world. Apart from the Turkish, conflicts for control of this strategic town have been led by the Spanish, Venetians, French, English, Russians and Austro-Hungarians. Indeed, every empire that has passed through the resort has left the mark of its civilisation on the town. As such, today's Herceg Novi stands as a testament to time, with various styles of building, from Arabic architecture to Baroque. The town is dominated by the towers of Forte Mare, Spanjola, Kanli Tower, etc. Today these locations provide the settings for summer events, where now traditional cinema, music and theatre festivals take place. Other historical monuments include the towers located on the Mamula, Prevlaka and Arza islands at the entrance to Boka Kotorska, which stand as testament to the centu-

TRAVEL & TOURISM ry of Austro-Hungarian rule. Herceg Novi is a feast for the eyes and a veritable hub of artistic inspiration. Indeed, many artists call the Montenegrin town home, with writers and painters living among the ten private galleries in the town, which combine forces to organise various fine art events throughout the summer. Orjen Mountain is famous for its indigenous species of flora and fauna and, despite the Mediterranean climate, one can practice winter sports on the mountain's ornamental ski lanes during late spring and even early summer. Back in 1929 the Herceg Novi Municipality was declared to be a "sea bathing, beach and climate health resort", with the healing qualities of the "Igalo mud", found in the shallows, and the healing qualities of the waters of the "Igalo mineral spring" having been common knowledge in the region since ancient times. The testing of Igalo mud in the laboratories of world renowned French sanatorium 'Vichy', confirmed its extraordinary healing qualities. Herceg Novi does not boast golden, sandy beaches; although there is a nearby beach holiday area, Zanjice, to which boats sail all day long. One can also visit exotic locations on the outskirts of the Fjord: Rose, Miriste, Plave spilja and Mamula, amongst others. Zanjice itself is an attractive cove located just south of Rose. The wide white-pebbled beach is protected from winds by the Arza Cape and the cove is surrounded by olive groves. Rose lies on the north-west shore of the Lustica Peninsula on the ruins of the ancient Greek settlement of Punto Roza, which was devastated by Saracen attacks in the 9th century and subsequently 'finished off' by various earthquakes. Rose is a typically Mediterranean town, with houses built almost on top of each other along the length of the traditional boardwalk. Rose boasts tourist apartments and private rooms for hire. The charms of the Adriatic high seas towards Italy can be seen when one visits Mamula Island, "warden of the gulf". On nautical maps this island is recorded as Lastavica, but the name of Mamula was given to it after Austrian general Lazar Mamula, who fortified it during the mid-19th century. Those who decide to visit the neighbouring city of Dubrovnik will not regret their decision. This city, port and tourist centre on the southern Croatian coast is situated at the foot of Srdj hill (412 m), in a valley closed in the south-west by Lapad plateau and a smaller cape, including the oldest part of Dubrovnik city. Besides the rich tradition of tourism, people in Dubrovnik are aware that a modern guest asks for something new. They have acknowledged that they miss night entertainment and well planned amusements for visitors who are not satisfied with sitting, eating and drinking in restaurants. "If we do not use the extremely high interest of tourists in spending their holidays in Croatia, and if we do not do our best to keep them and make them come again, the whole flourishing of tourism which we are tending will burst like a soap bubble," admitted Dubrovnik's tourism professionals upon commencement of their official co-operation with the Herceg Novi tourist industry. Today Dubrovnik is buzzing with tourists: Germans, Italians, Greeks, Britishâ&#x20AC;Ś sightseeing the cultural and historical amenities of the city. This city of unique political and cultural history and beauty has been inscribed into UNESCO's Register of World Cultural Heritage sites. The citizens of Dubrovnik are proud because it is one of the most attractive and the most renowned cities on the Mediterranean. Together with exquisite natural beauties and preserved heritage, Dubrovnik is also a city of hotels, of beautiful surroundings and envious ecological standards. It is attractive to tourists during every season. For thorough sightseeing of Dubrovnik one needs several days. It is an experience to walk the Stradun, narrow city streets and squares, to sightsee the monumental walls and towers, where

tourists are confronted by architectural beauty built during centuries, with the urban core looking as though it has been pulled into a sea shell. The skills of masons, stonecutters and carvers can be seen even today at Duke's Court, and that is just the starting point for sightseeing. There are many museums and galleries with jewels of Croatian heritage. Dubrovnik Museum in Duke's Court has 15,500 exhibits in its culture and history section. Lovers of sport who visit Dubrovnik will find terrains and equipment for all sports on land and on water, from table tennis to

Herceg Novi is a feast for the eyes and a veritable hub of artistic inspiration. Indeed, many artists call the Montenegrin town home with writers and painters living among the ten private galleries in the town, which combine forces to organise various fine art events throughout the summer. sailing. There are also fitness centres with pools, saunas, massage parlours, aerobic facilities, solariums, etc. Most of the hotels in Dubrovnik are located along the Lapad Peninsula and in the area of Ploce, south-east of the Old Town. There is also the hotel complex Dubrava - Babin kuk in Lapad forms a small town of its own. It has a retail centre, bank, clinic, catering shops and new Stradun linking the hotels. According to the estimates of tourist workers, citizens of Dubrovnik would have to increase their total accommodation capacity by some 40 per cent in order to accommodate all the tourists wishing to visit the city. The lack of existing and non-renovated hotel buildings can be increasingly sensed in the area of Dubrovnik. The situation should be much better if hotels Libertas, Belvedere and Plat open their doors for tourists, and also facilities in Dubrovacka Zupa, Sun Gardens and the rest home in Kupari. Dubrovnik has rich cultural and artistic life. The Dubrovnik Summer Festival is a festival of theatre, music and folklore. Since 1956 it has been listed in the calendar of World Festivals and is one of the most renowned in the world. It is held on the city's open stages at Gundulic field, Drzic field, Lovrijenac and Revelin, as well as in the gorgeous surroundings of the Duke's Court, klaustras and churches. Besides national classics, world classics are also performed. Also internationally acclaimed is Dubrovnik's Carnival feast Dubrovnik karnevo - which has been held here since the early Middle Ages after being transferred to the Dubrovnik area from neighbouring Italy.â&#x20AC;˘ CorD | July 2005

Techno Talk Siemens (mobile phone) SL65 www.siemens.co.uk

url:

The successor to Siemens' delightful little SL55, the 65, slips a VGA camera into the original's oft-copied sliding cover design. It might have put on a little weight (99g compared to the 55's 79g) but it's altogether more rugged and manly looking now, too. • Retail price: tba

desc.

price:

Logitech Netplay www.logitech.com When a man wants to get more from his PS2, what does he do? He buys an Xbox, thet’s what. Alternatively, he nips out to his nearest Logitech dealer, hands over his 50 notes and walks away with the nature of console gaming in the form of the Netplay. Combining all the features of a fully fledged dual-shock controller with a hulking great QWERTY keyboard, the Netplay allows players of that perennial online favourite, err, Everquest, to hammer out communications without ever having to put down their controller. Perhaps not quite as useful when playing San Andreas, but we reckon it looks that nuts• Retail price: cca €75

Palm Tungsten T5 url:

desc. price:

www.palm.com

While undeniably smart-looking, the T5 isn't quite the HP and Dellbeater we had hoped for. There is plenty of good news, however: 256MB of flash memory for your precious data, a built-in video player and Bluetooth so you can go online via your phone. • Retail price: cca €370

Roku Soundbridge M1000

www.rokulabs.co.uk Compressed music has revolutionised music on-the-move, but CDs continue to rule in most homes. A host of wireless bridges, though, are professing to be the key to unlocking your home MP3 library; the Soundbridge is the best yet. Contenders don't win our Supertest by being one-trick chancers, and Roku's charming cylinder is an excellent all-rounder. It's extremely easy to set up and the sound quality trounces most of its opposition. Operation from a distance is made easier by the 280x16 fluorescent display and remote, while iTunes integration and MP3, AAC, WMA and WAV support cap off a super-friendly bridge.• Retail price: cca €450

CorD | July 2005

Techno Talk

Yamaha LPX-500 www.yamaha.co.uk This Yamaha has a number of distinct advantages over its rivals in the DLP playing field. First, it's more competitively priced than some. Second, it's from a more recognised and more widely sold brand than some. And last - it's really, really good. • Retail price: cca €230

Caterham CSR 260

www.caterham.co.uk

If you have most people's annual wage to spend and need a savagely powerful classic car, you could do worse than Caterham's new CSR. Part of the entry-level Classic Seven range, the 260 has F1-style front suspension, the new Cosworth developed 2.3-litre Ford Duratec engine and a top speed of 155mph. The cockpit has also been modernised, with storage space and alloy style dials. The CSR can do 0-60mph in 3.1 seconds, which should just about burn the chav at the traffic lights who is sitting next to you revving his Golf GTI provocatively.• Retail price: cca €54,500

Nikon Coolpix 5900 Sony Ericsson W800i

www.nikon.co.uk

www.sony.co.uk

A mobile tour de force from the SE boys. Not only a fine phone, but also the world's first Walkmanbranded handset. It sports an iPod-busting 30hour battery life with the phone features off and 15 hours when on. And it's orange. We like orange. • Retail price: cca €420

Straight in at number four this month is Nikon's marvellous 5MP cam. It's not the smallest, but it does take lovely pics, handle like a dream and shoot a good VGA movie. Heck, it even autofocuses on human faces - a gimmicky feature that sometimes works.• Retail price: cca €420 CorD | July 2005

Techno Talk Panasonic (mobile phone) X700 www.panasonic.co.uk

url:

Panasonic's first stab at a smartie is a tidy little Series 60 affair that's a little larger than a run-of-the-mill clamshell and yet crams in an embarassment of top-drawer organisational features. Bluetooth is included, as is a neat 65k-colour screen. Definitely worth a look.• Retail price: tba

desc.

price:

Pioneer PDP-434HDE url: www.pioneer.co.uk The Pioneer is revolutionary because it uses HDMI, a highspeed digital connection, to transfer video from DVD player to screen at 10 times the speed of FireWire. Well, it can if you invest in an HDMI-equipped DVD player. Picture quality is amazing, which is unsurprising because you see exactly what is on the DVD: sensational colour realism and accuracy with no image smearing or motion blurring. Although this tech makes it kinda pricey, the big players are all launching their HDMI products – most of them were involved in developing it, after all – and this should help the inevitable price drops.• Retail price: cca €6000

Denon D-M31 Sony MZ-NH1

www.sony.co.uk

Die-hard MiniDisc fans have a new player to prolong their addiction. The waif-like Hi-MD Walkman holds up to 16 hours of Atrac music on each 1GB disc and has a 17-hour battery life. A great player in the wrong era.• Retail price: cca €220

CorD | July 2005

www.pioneer.co.uk

The mighty D-M31 – one of the finest mini systems ever – is about to be replaced by the spanking new D-M33. The M33, a direct replacement for the M31, shares the same good looks as its predecessor, but a thorough facelift means improved build quality, upgraded electronics and better sound quality. Splendid. We’re even more excited by the potential of Denon’s new D-M35DAB system, a brand new model that adds – as the name cunningly hints – DAB (and FM) radio. Both models should be available to buy by the end of June. The D-M35 will cost €530 with speakers and a mere €420 for the CD/DAB unit alone.• cca €250

Techno Talk

Adidas Predator Pulse www.adidas.com Worn by elite-level players all over the globe, this is the most sophisticated and sought-after footy boot on the field today, refined to make it more powerful and maneuverable than ever before. In the forefoot for more power, swerve and control, great ball feel, asymmetrical loop lacing for better ball contact, lightweight, flexible split outsole, ultimate maneuverability on firm ground• Retail price: cca €200

Specialized Enduro Pro www.www.specialized.com Heavy duty bike for those who take their riding seriously: butted rear triangle, adjustable geometry, on-the-move adjustable rear travel, Fox ProPedal damping system and rebound adjust all included… This is no Sunday afternoon cruiser. Make the most of it. • Retail price: cca €3500

Tapwave Zodiac www.tapwave.com

The gadget gods have smiled upon us. This is a sensational 3D gaming device with the full power of Palm 5.2 OS lurking under the hood. Its 200MHz ARM processor and ATI graphics acceleration show off a sumptuous half-VGA screen. Order one on expenses now. • www.oakley.com

Oakley Blade

Retail price: cca €400

Looks like a sci-fi watch from some special effects-infested CGI movie, but actually blasts all that fantasy away with a very real 72-month battery and Swiss five-jewel movement. Looks the business, but might scare you when you check the time.• Retail price: cca €500

CorD | July 2005

RETAIL THERAPY Bob Holt

When one thinks of wine, one's mind automatically turns to the traditional French and Italian vineyards, fine chardonnays and champagnes, savoured with delicate food and pungent cheeses. However, beginning with the growth of the wine industries of Southern California and Australia, high quality wines are no longer confined to the undulating pastures of the French countryside. Indeed, nowadays supermarket shelves throughout the world are stocked with heady, high quality wines originating from such varied countries as Bolivia and New Zealand, Chile and Portugal, South Africa and Spain.

EXECUTIVE PROCUREMENT T

he exact date when our ancestors realised that wild vines could produce a drink is not known. Noah's activities on Mount Ararat in Armenia are sometimes cited as the first example of intentional wine making. There are claims of ancient wine makers in the Far East, and there is certainly evidence that the Egyptians were making wine more than 3,000 years ago. Around 1000 BC wine was first introduced to the two countries that now account for nearly half the world's total wine production: France and Italy. Along the expanding Greek empire, both the vine and the traditions of their god, Dionysus, spread, and the Romans in particular adopted Dionysus with relish, under the name of Bacchus. It is likely that the wine produced at this time was fairly crude and needed the addition of some preservative or flavouring to keep it drinkable until the next vintage. It may well have been at this time that the process of resinating wine began, still seen today in Greek retsina. While the Greeks kept their wine in open amphorae, the Romans managed to develop wine containers not unlike the barrels and bottles of today and so made great strides towards the development of wines that were built to last and mature. Vineyards were developed north and west of Marseilles, and by AD 400 vines were being cultivated to produce wine through-

CorD | July 2005

out the south of France, around Bordeaux, along the valleys of the Rhone and the Loire, in Burgundy and Champagne, and even along the two great German wine rivers, the Rhine and Moselle. The fact that wine was easily transported by river doubtless played a part in the locations of these ancient vineyards. By the turn of the first Millennium, wine was being made all over Europe, largely by the Church, which practically had a monopoly on vine-growing and wine making skills, not to mention land. In the Middle Ages there were even vineyards all over southern England, but the dissolution of monasteries under Henry VIII brought a four-hundred-year pause in the cultivation of the vine in Britain. The disappearance of vineyards in Britain did not stop the British drinking wine, however, and Britain continued to play an important part in shaping the world's wine industry. In the 12th century, when Bordeaux and Aquitaine were ruled by Henry II, the important trade in wine between western France and Britain began. The word 'claret' is a corruption of the light

The heady red Vranac is Montenegro's chief contribution to wine repertoire, whileâ&#x20AC;Śthe vine yards of the Fruska Gora Hills, north of Belgrade, produce Sauvignon and Traminer. red claret wines produced by the French and sent to Britain. More recently "clarets" have been made all over the world. Claret is still an established style of wine in Spain, for example. The one country in which the word claret is hardly ever used, ironically enough, is France. Globally, the wine producing industry has certainly diversified and the way wine is marketed has also grown in tandem with the industry itself. During June there were two diplomatic-level promotions of foreign wines in Belgrade. One was a promotion of Hungarian

RETAIL THERAPY wine in Belgrade's Diplomatic Club, the other a promotion of Tunisian wine. One might not associate Hungary with wine production, but the cultivation of grapes for wine dates back to the very beginning of the Hungarian tribe, in the 5th century AD. Contemporary records indicate that King Béla III (11731198) distributed large quantities of wine among the Crusaders as they were passing through Hungary. Evidence of the rapid development of Hungary's vineyards can be found in historic documents dating back to the twelve hundreds, and Hungary has exported wine, to Germany and Poland in particular, for almost a millennium. In the 18th and 19th centuries grape growing and wine production were present in nearly every corner of the country. The rapid growth in production had a favourable effect on Hungary's relationship with the Habsburgs and Austria. Hungary's modern reputation as a wine producer was made by one wine, the supposed 'essence of life', Tokay. Tokay is still made today under the auspices of Hungary's State Wine system but, rather like petrol, is now available in a number of different 'grades'. It is made from Furmint grapes grown around the town of Tokaj, in the far northeast of the country. 'Noble rot' is encouraged and concentrates the sugar already present in the grapes to a state of great richness. The best grapes are kept separate, crushed and retained as a luscious paste. Hungary's best-known red wine is Bull's Blood, Egri Bikaver in its native land, a full, aggressive wine with lots of character. While the native Kadarka is her most common red grape, its white counterpart is Olasz Riesling, similar to the Laski Riesling of Yugoslavia and sometimes exported carrying the name of Pecs, a town in the south towards the Serbian border. Hungary's most interesting whites come from the shores of the vast Lake Balaton, and are made from local grape varieties. In Tunisia, the art of vine growing and winemaking dates back to ancient times. The agronomist Magon, who lived in Carthage at the time of the Phoenicians, recorded in his Treatise of Agronomy viticulture wine-producing practices that are still in use today. Tunisian wine continues to boast the high repute that the sun, soil and time-honoured Tunisian traditions have conferred on it. Well situated on the most fertile lands, the vineyards extend over an area of some 10,000 hectares (for dessert grapes) and 15,000 hectares (for wine grapes.) They grow on hillsides blessed with an average annual temperature that never rises above 20° and with a rainfall ranging between 250 and 500mm a year. Tunisian wines are rich in alcohol content, without excess acidity. They are also soft, with the character of new wines and an alcohol percentage of 11 to 12° for both red and rosé, and a slightly lower percentage for white. Despite the growing popularity of wines imported to the State Union, both Serbia and Montenegro boast their own vineyard industries, as do the other former Yugoslav republics. Up in the northeast in Slovenia, the wines produced are obviously related to their counterparts across the border in Austria and Hungary: full-flavoured whites with a nice nip of acidity to keep them in balance. The wine consumed locally is often considerably drier than that exported, and most popular grape varieties, usually specified on the label of wines from any region, are Laski Riesling, a relative of Italian Riesling, Sauvignon and the full, 'spicy' Traminer. Vineyards in the northwest of the country produce the

same varieties as are grown so successfully in the northeast of Italy: Cabernet, Merlot, Pinot Bijeli (Bianco) and Tokaj (Tocai). Down the Dalmatian coast the grapes planted are usually local specialities and the wine is rarely exported, though the pungent white Zilavka, from around Mostar, has its followers abroad.

…the most expensive bottle of wine in the world - an 1875 bottle of Romanée-Conti - is nestling in the cellars of the exclusive Graycliff restaurant in Nassau, the Bahamas, with a $75,000 price tag round its neck. The heady red Vranac is Montenegro's chief contribution to wine repertoire, while further south in Macedonia the reds, and whites are even more robust, reminding the visitor of his proximity to Greece. Here, and in the great wine-producing republic of Serbia to the north, are planted a wide variety of grapes, with Prokupac being a vigorous red. The vineyards of the Fruska Gora Hills, north of Belgrade, produce Sauvignon and Traminer. With so many different wines produced in so many different parts of the world, it is not surprising that the price of wine varies massively. However, following a painstaking inspection of the world's fine-wine lists involving correspondents on three continents, it has been found that the most expensive bottle of wine in the world at the moment - an 1875 bottle of Romanée-Conti - is nestling in the cellars of the exclusive Graycliff restaurant in Nassau, the Bahamas, with a $75,000 price tag round its neck. The 125-year-old Burgundy easily beats what was until then regarded as the priciest bottle: a 1787 Chateau d'Yquem on sale at Marco Pierre White's Oak Room restaurant in the Piccadilly Meridian, London, which fetched $56,588.• CorD | July 2005

ENDLESS IMITATION - Part Two of

5th instalment

PIGS DO NOT EAT BANANA SKINS

Photo “Gloria” archive

Tim mothyy Byford for CorD The story so far : Having exchanged his secure job at the BBC for the unpredictability of life as a freelance director in Yugoslavia - as a result of his love for art student Masha Kostich, Andrew Beresford has settled into Belgrade life, married his love, recovered from his infatuation with his new bride's mother and fathered a daughter. After two years in Yugoslavia, Andrew is offered the chance to direct a 'real' drama, but soon finds the series cancelled after 'persons unknown' find resemblances between the main character and Tito. With the project permanently postponed, Andrew readies himself for some real-life drama instead.

hile I was waiting for a job to turn up, I decided to spend some time as a full-time father. Ana was beginning to crawl and I would spend hours on the carpet with her, sometimes in the active roles of tiger or lamb, horse or steam engine, sometimes in the passive ones of hill or mountain, life-sized doll or punch-bag. "No, Ana, flowers are pretty. They look better with all their petals on… "No, Ana, that's Mummy's book. She wouldn't like it if you scribbled on it…" "No, Ana, we don't put Granny's glasses in our mouth…" Why not? Because it's deviating from an established pattern; from accepted conduct. We never get a chance to be eccentric. We are programmed in acceptable behaviour from the word go. The homely nurse doth all she can to make her foster-child, her inmate man, forget the glories he hath known, and that imperial palace whence he came… And she makes a damned good job of it. We don't stand a chance. Well we do, but we have to make our own chances. Like scribbling in Mummy's book of Salvador Dali reproductions. I'm sure Dali himself would have more than approved of Ana's efforts. He had devoted his life to deviating from established patterns and accepted conduct. But I suppose when you paint like he does you can get away with anything. What could I get away with? I was just a mediocre television director. Masha was an artist - rather a good one - at least, people wanted to pay good money for her paintings. But her paintings were hardly deviant. She hadn't painted a picture called The Great Masturbator. She'd never painted a man in shit-stained underpants, like the man in Dali's The Dismal Sport. But what about Ana? Perhaps she would be a painter as well. And if she was allowed to develop naturally, she might turn out to be more like Dali than like Masha. "Here you are, Ana. You can draw on this…" I've still got it. The book I didn't finish reading while Ana was being born. Iris Murdoch's The Nice and the Good, surrealistically illustrated in pencil, crayon - and subsequently in water colour - by Ana Sylvia Beresford. On Thursday 1st February 1973, at quarter past three in the afternoon, Ana was joined by David Stefan Beresford, the youngest AngloYugoslav citizen in the world. His father Andrew was on location in Šumadija at the time, directing the first episode of a children's television drama series, Granny's Boy, about a village lad called Sava whose grandmother took him to Belgrade to become a gentleman. Things were looking up… Or were they? At the moment they came to tell me that Maria had phoned to say that David had safely arrived, I was deftly disguising a tame white mouse, borrowed from the laboratory of the Kragujevac General Hospital, as a house mouse, with the help of some brown powder paint. Although I didn't know it at the time, the mouse symbolizes the powers of darkness, the Devil; the mouse is depicted as gnawing at

CorD | July 2005

the roots of the Tree of Life. Today, nearly ten years later, I think I can trace the rot setting into my life to David's appearance on the scene. Of course, it wasn't David's fault in the least. Perhaps I was never meant to be a father. Don't get me wrong - I love kids. I adored my children when they were born and I still adore them; I think I have been a reasonable father to them and perhaps I even have the makings of being a good father to them. But I certainly haven't been a good husband - not even a reasonable one. I've been caring - in my way - and although I've had the odd fling, I haven't had anything that could be described as 'an affair'. But I don't think I understand women well enough to successfully spend my life with one of them. Or perhaps I simply required - and require - too much from Masha. Anyway, I felt that as soon as David came into our lives I began to lose her. It was as if two children all but monopolised her entire being. There was precious little room left for a third. On the face of it, though, everything in the garden was lovely. We didn't quarrel; we had our differences of course, but to keep the peace I would usually give way, allowing Masha to have the final word. I satisfied my need for being bossy by shouting at the props men and production assistants on location. Never at the actors - I soon discovered that I got the most out of them if I treated them like children. And especially never at the actresses - not that I had any evil intentions. Most of them were either considerably older than me or definitely not my type. The only one who turned me on - Marina, with her blond hair, come-hither blue eyes, pouting lips, tiny budding breasts and remarkably long legs was thirteen. I can understand paedophiles, but I could never, never harm a child. That's not quite true. I harmed my own children. Not intentionally, and I hope not permanently. Spare the rod and spoil the child was my mother's motto and, although it was not the rod but the flat of her hand on my bare thigh that she didn't spare, I reckoned she had made a pretty good job of not spoiling me and assumed that her method was perfectly valid. Young animals master the basic rules of existence by imitating their parents and I was no exception. "When I was your age…." "Do as I say…" "Why?" "Because I say so…" And so for my kids the ultimate penalty for disobedience was a smack on the bum. It didn't have any lasting effect of course, any more than the numerous smacks and canings I received as a boy had reduced the frequency of my misdemeanours. Unfortunately for Ana and David, it took me several years to realise that the real reason I was smacking them was that: a) it was the easiest and quickest way to assert my authority and get an immediate result, b) I was uptight and needed to lash out at something, and c) I was getting my own back for all the

smacks I'd had as a kid. Parenthood is a combination of instinct, imitation and experimentation - it's unfortunate that the guinea pigs are one's own offspring. "Not tonight…" "When, then?" "Soon, I promise…" It was more than a month after David's birth and we still hadn't made love. In fact the last time had been nearly three months before he was born. Four months without a fuck! I suppose other men in my position simply find a lover or go to a prostitute, but I couldn't face the hassle of either, so I became a fifteen-year-old again. In the bath, on the loo, at my desk - and in bed after lights out. This was the most exciting of all as I had to wait for Masha to go to sleep and then take great care not to shake the bed too much. My other consolation was plum brandy. I had been partial to it since being introduced to it on my first visit to Yugoslavia, but I now found myself drinking four or five 'tots' of it daily and would rarely go on location without a 'grandson' in my pocket. A 'grandson' was a small bottle containing a decilitre of brandy, and could very conveniently be bought at tobacco kiosks. I was in good company, as the sound recordist, the assistant cameraman and one of the electricians drank openly from 'grandsons'. None of us ever got drunk during shooting, but the words 'It's a wrap!" were a cue for letting our hair down and for the liquid to flow in the nearest bar. Few of us were our own masters, drinking gravely and wisely as Confucius had advised. Confucius had obviously never drunk plum brandy in a Belgrade bar ours was a speedy progression from a lighthearted Bibo ergo sum to being totally Securus et ebrius. "You're turning into an alcoholic." "Poppycock!" "What the hell does 'poppycock' mean?" "It means that I'm not turning into an alcoholic. I just need to relax after filming, that's all." "And before filming - I could smell rakija on your breath when you kissed me goodbye this morning." That reached me. Yes, I had taken a quick swig of Cacanka with my ham and egg breakfast. In the BBC I had never drunk until the Club opened at midday. Perhaps I was pushing it a bit. "OK. Criticism accepted. No more morning glutches. But don't begrudge me my drink with the crew after filming. Have I ever come home so drunk that I was incapable?" "Incapable of what?" She may well ask. But I decided that this wasn't the time to rub salt in the wound that had been smarting for the past few months. We always seemed to be having petty arguments. So I ate humble pie and promised to cut down on my drinking. "You need a good strong black coffee. And my coffees are the best, strongest and blackest in Belgrade." I was sitting with a sexually attractive woman 18 years older than myself - Katerina Mandic of the National Theatre - who played Anastasia, the simple-minded sister of Sava's landlord in Granny's Boy. I had drunk one CaCanka, a second Cacanka, and several thirds and followed these with the best part of a bottle of Tsar Lazar red wine while demolishing ten cevapcici on a bed of raw onion. If true meditation is totally emptying the mind of thought, I was in as deep a state as anyone could be. "Okay. Not a bad idea. Not much point in going home in this state." I don't think I could have got home, anyway. I hadn't been in this state since I'd got drunk on Guinness in Dublin with that gorgeous actress Susannah. I hoped to God I wouldn't throw up all over Katarina. After all, she was a lady. And I was supposed to be an English gentleman. And a responsible married man. No, I wasn't anything of the kind. My mind being emptied of all thought, I wasn't married, let alone responsible. I was just a man; a sexually-frustrated man. And Katarina had large breasts. When I passed my hand over them in the lift, she didn't seem to mind. When we got into her flat she seemed to forget about the coffee and suggested I lay down for a bit. For a bit. And what a bit she was. Breasts you could get lost in. I remembered them with affection a couple of years later when I watched Amacord. Just think - she was older than my mother-in-law; nearly as old as my moth-

er. It felt so nice to be a little boy again. Katarina undressed me. She took me to the bathroom and held my embarrassingly flaccid prick while I peed. A certain amount of alcohol enhances my horniness. Too much destroys it completely. Katarina washed the limp piece of tissue carefully with soap and water. Lovingly. That did the trick. A soapyhands job. Never fails. She whisked me into the bedroom, lay me gently on the bed and finished undressing herself. She was a bit fat, but when she lay down next to me it didn't seem to matter. On the contrary, she felt sort of homely. There was something to get hold of. And I couldn't talk - I was developing an ugly paunch myself. I buried my head in Katarina's breasts while she vigorously continued her maintenance work. She guided my right hand to her aging pussy. Aging, but tantalizingly damp. My head left the balmy haven of her breasts and wriggled down her deliciously rotund stomach towards the tempting aroma of her sex… The next thing I knew it was pitch dark and I had a splitting headache. Shit! I suddenly remembered where I was and what I'd done. But any feeling of shame I might have had was quickly superseded by the realisation that I'd been expected home by seven at the latest and who knows what the time was. There was no one in the bed beside me - which was a relief. I don't think I could have faced seeing Katarina at that moment. I leapt out of bed and felt my way around the room, trying to find the light switch. I found the door, but no light switch. Eventually I found a table lamp in the hall. And a clock. Christ, it was nearly eleven! Should I telephone them to say I was alive and well? And shagged out of my mind? Seriously though, what the hell was I going to tell them? I'd never been any good at lying - but I certainly couldn't tell them the truth. First I would get dressed, then I'd telephone. No, the best thing would be to get home as quickly as possible and dream up a convincing story on the way. Or be terribly macho and say it was none of their business where I'd been, that I was a fully-grown adult and entitled to a bit of freedom now and again. No, I could never pull that off. Maria, for one, would be sure to burst out laughing. Just as I was trying to find my second sock the doorbell rang. Now what was I supposed to do? Ignore it? No, I couldn't - they could see the hall light was on. I crept to the door and looked through the peephole. Good grief! There, in all her deformed, wide-angle glory was - Maria! "Andrew! Open the door. I know you're there!" Well, I suppose if she hadn't known I was there, she would hardly have come to get me. The question was, how did she know I was there? I had no option but to let her in - but what the hell was I going to say to her? I took a quick look in the hall mirror. I looked terrible. I whipped out my comb and did what I could to tidy up my receding mop. A tuft on the right side refused to sit down, even after applying a good dose of spit. And was that a white hair? "Andrew! Come on. I won't eat you!" I suppose not. Though being eaten by Maria wouldn't have been such a terrible thing. I opened the door, totally unprepared for what was waiting for me. Maria had a broad smile on her face that made the Cheshire Cat look like Mona Lisa. "Teško tebi, mladicu. Maša je van sebe!" Which, being interpreted, means: "You're in trouble, young man. Masha's going spare!" "Sorry…" was all I could manage. "Being sorry won't help you. You'd better think up a good story. Katarina phoned to say you were here. That you'd got blind drunk after filming and that she'd brought you here to sober up before you went home. She couldn't wake you up when she had to go to the theatre, so she phoned us to let us know where you were. Look, I won't ask any questions - what you did or didn't do here is your affair. I know Katarina only too well, but fortunately Masha doesn't. I hope you're as good an actor as you are a…" Maria half-turned away, but could I detect just a hint of a blush! Perhaps we really had - that evening after the Mendelssohn and plum brandy. Good God! Yes, we had! Maria was actually jealous! Anyway, I decided not to deny anything. "O.K. - I drank too much. Far too much. It happens." "Yes, I know it happens. But Masha is young and hasn't had much experience with men…" I slept on the sofa that night…•

To be continued… CorD | July 2005

Quotes...Quotes...Quotes... Javier Solana, EU High Representative for Common Foreign and Security Policy: "The hints of Kosovo-Albanians regarding the unilateral announcing of Kosovo's independence are unrealistic. Kai Eide [UN Special Envoy for Kosovo] is a man of proven decency and proven political capabilities. I do not doubt for an instant that he will consider what has been requested of him regarding the evaluation of Kosovo's internal reforms. He will do what he must, and will do it well. He is not a person who would fail to strictly undertake what he has been ordered to do."

Nebojsa Bakarec, DSS Senior Party Official: "If Drakulic [Zoran] has started a crusade against G17 Plus, that's fine. If he is basing his political programme on that war then that is a lousy programme! That man is a cold, unscrupulous trader who thinks it's possible to buy the DSS presidency with enough money. Well, it can't happen! ...He had totally the wrong approach from the get-go. By avoiding the statute and requesting positions he "raped" the party. Hello! 'Bre', bro', that cannot be done like that! His 'royal messenger' consistently promoted him as a replacement for Vojislav Kostunica. If we are to speak the truth, he gave so little that we barely managed to surviveâ&#x20AC;ŚThe story about the gallant, philanthropic Zoran Drakulic, "the big giver", thanks to whom DSS survived, is simply nonsense!"

Vuk Draskovic, SCG Foreign Minister: "The ones we saw in the video killing the unarmed young men of Srebrenica, the organisers and masterminds of similar and other crimes, also committed the greatest possible crime against the Serbian and Montenegrin people." - Belgrade, 3rd June.

Dr. Dragan Djuricin, President of the Serbian Association of Economists: "Banks in Serbia have the highest profitability in Europe, thanks to business with retail clients. As operations with citizens are dominant in the crediting activities of banks, one group of citizens which deposits savings is crediting the expenditure of another group of citizens. In that process, the first group of citizens [the savers] receive symbolic interest rates of 2.5 to three per cent, decreased by 20 per cent because of state taxes, while the other group [the borrowers] take out loans with high interest rates. "The banking evaluation is that our citizens are in very little debt. The potential is there for them to be more indebted."

Vladimir Mrvic, Executive Board President, Hypo AlpeAdria Consulting: "I guarantee that a clerk in Serbia goes

CorD | July 2005

on more exclusive holidays and drives a better quality car than his counterparts in America or England. Moreover, most of them don't have the burden of housing mortgages, as is the case in the West. Therefore, they should change their life philosophy and invest. There is never too little money for investing and it always has to start somewhere."

Professor Svetozar Stojanovic: "Wonderment never ends. How is it possible that so many communists in our public life do not, as a rule, speak about building capitalism? Rather, they refer only to unclassifiable abstracts like transition, private property, trading market, civil society, political pluralism, democracy, etc. "That kind of non-naming is becoming one of the essential characteristics of the new ideology. That is why there are no conference, memoirs or individual books entitled "Why and how I turned from a communist to become a proponent of capitalism".

Cedomir Jovanovic, Liberal Democratic faction of the Democratic Party: "I don't think that anybody has a monopoly on the Serbian approach regarding Kosovo. It is my political right to talk with whom I want when I want. I spoke with Milosevic, I spoke with Legijaâ&#x20AC;ŚI not comparing them, but why shouldn't I talk with Rugova or Kosumi? Besides, both Tadic and Kostunica requested talks with them, thus they also acknowledge that they are Kosovo's Government."

Radovan Vukadinovic, Director of the EU Law Centre: "The basic problem is not in the level of conformity of legislation, but rather in implementing these regulations in a way which satisfies EU criteria. The European community will not be satisfied by us showing that we have adopted legislation. We must show that we have implemented laws and, by so doing, reached the goals and completed the tasks which they have set. This can be achieved only in a favourable political and economic climate." - Belgrade, 22nd June.

Vojislav Kostunica, Serbian Prime Minister, during an official visit to the U.S. Steel - Serbia plant at Sartid: "By investing in the Smederevo steel plant, the U.S. Steel company showed that investing in Serbia does pay off, thus setting the best example to other international corporations." - Smederevo, 21st June

Quotes...Quotes...Quotes... Jonathan Clark, Foreign Policy Expert of the Washington Cato Institute: "The proposal for the broadest autonomy but not independence is a sensible political position… Some believe that Kosovo, with its small territory and lack of economic development, should stay with the larger and relatively prosperous Serbia. Apart from anything else, this is in line with European integration processes. The resolution of the final status to a large extent also depends on the process of Serbia's integration into the European Union." - Belgrade, 23rd June.

Miodrag Vlahovic, Montenegrin Foreign Affairs Minister: "Paying attention to Kosovo is all very well, but not in a way that marginalises Montenegro. The Montenegrin Government wants to hold a referendum in the spring of 2006, regardless of what is happening in Kosovo at the time. Whatever happens in Montenegro won't affect Kosovo." Podgorica, 22nd June.

Letters to the editor Embassy of the republic of Macedonia Belgrade, 2nd June 2005 Mr. Chief Editor, In the June issue of your magazine "CorD" you published an interview with the President of the Republic of Macedonia, Mr. Branko Crvenkovski, entitled "New Balkan Atmosphere". To my greatest surprise, quite opposed to the spirit of the title and previous written correspondences with you, wherever my country, the Republic of Macedonia, was named within the text, you did not use the constitutional name of the state. With expressions of my great unhappiness caused by this inconsiderate negligence, I expect an explanation of the reasons for such treatment, as well as an adequate correction from your side in the next issue of "CorD". With respect, Viktor Dimovski, H.E. Ambassador Extraordinary and Plenipotentiary of the Republic of Macedonia to Serbia & Montenegro CorD Says…

Nicholas Burns, U.S. UnderSecretary of State: "Kosovo Albanians must be willing to compromise…We are not going to impose a settlement, we're not even going to say what we support as a final compromise, but we will insist on compromise." - Pristina, 9th June.

Vojislav Kostunica, Serbian Prime Minister: "The state union is prepared for the Stabilisation and Association Agreement, but is faced with separatist ambitions which seriously threaten to endanger internal transition and the process of European integrations." - Rome, 7th June.

Aleksandar Karadjordjevic, Crown-Prince of Serbia: "Serbia has no clear national plan. We do not know what our common goal is, and we are not working on it; we are wasting energy by working against ourselves." - Belgrade, 1st June.

Soren Jessen-Petersen, UNMIK Chief: "Progress in establishing a fully multiethnic Kosovo and integrating all communities will remain limited as long as one ethnic group is pressured to stay outside the political, economic, and social processes. Belgrade would help the Kosovo-Serb community, and itself, by moving from reticence and delay to commitment and engagement." Pristina, 27th May.

Your Excellency Ambassador Dimovski, Due to the imprecise re-editing process of texts translated from Serbian into the English language, in all questions posed by our magazine we used the name "FYR Macedonia" instead of "Macedonia" throughout the text, even though it was never used during the actual interview. Being aware of the delicate nature of this issue and the present sensitivity between the interested parties, our intention was to develop co-operation and better understanding between Macedonia and SCG. We planned and interpreted the whole conversation in this sense, without intending to create an unpleasant situation or harm anyone. We, thereby, apologise to the President of Macedonia, Mr. Branko Crvenkovski, because of this unintended miscarriage. Yours Sincerely, Dragan Bisenic, CorD Editor in chief Dear CorD editorial team, Fully aware that most correspondences to publications of this sort tend to take the form of complaints and grumblings, I am simply writing to congratulate you on your fine work over the recent issues of CorD. The quality of the texts and the standards of the interviewees and columnists in the magazine are matched only by the outstanding quality of the presentation. Well done and keep up the good work. Yours Supportively, Matt Dass, Managing director, EON Media. CorD Says… Dear Mr. Dass, Thank you kindly for your words of support and encouragement. Our aim is always to please our readers. Should you or any of our other readers have any suggestions on how we could further improve the quality of CorD Magazine we would be only to happy to consider any ideas you may have. Your with thanks, CorD CorD | July 2005

Belgrade Directory

Theatres, Music & Museums

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

CorD | July 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 • ETNOGRAPHIC 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 HISTORICAL MUSEUMS: • MILITARY MUSEUM, Kalemegdan, tel. 3344-408 • BELGRADE FORTRESS MUSEUM, Kalemegdan bb, 631-766 • YUGOSLAV HISTORICAL MUSEUM, Trg Nikole Pasica 11, • MUSEUM OF BANJICA’S CAMP, Veljka Lukica-Kurjaka 33, tel. 669-690 • JEWISH HISTORICAL MUSEUM, Kralja Petra 71, tel. 2622-634 • SERBIAN HISTORICAL MUSEUM, Nemanjina 24/VII, tel. 3674-057

AMSJ road assistance

987

Ambulance

Police

Fire Department

Belgrade Bus Station

636-299

Belgrade Airport

601-555

Wake-up calls

9811

Humanitarian phone

9862

JAT ticket reservations

311-2123

Long distance calls (international)

901

Phone line Malfunction

977

Information Exact time Information - phone numbers

9812 95 988

MEMORIAL MUSEUMS: • MEMORIAL MUSEUM JOVAN CVIJIC, Jelene Cvetkovic 5, tel. 3223-126 • NIKOLA TESLA MUSEUM, Krunska 51, tel. 2433-886 • MEMORIAL MUSEUM TOMA ROSANDIC, Vasilija Gacese 3, tel. 651-434 • IVO ANDRIC MUSEUM, Andricev Venac 12, tel. 323-8397

Telegrams by telephone Medical Center Emergency Room Whether forecast Central Train Station Chemists,"1. maj", Kralja Milana 9

CITY MUSEUMS: • BELGRADE CITY MUSEUM, Zmaj Jovina 1, tel. 630-825 • ZEMUN CITY MUSEUM, Glavna 9, tel. 617-752 TEHNICAL 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 • POST MUSEUM, Majke Jevrosime 13, tel. 3210-325 • ARCHITECTURE MUSEUM, Djure Jaksica 9, tel. 187-360, 3281-479

Chemists, "Prima 1", "Sv. Sava"

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

NATURAL HISTORY MUSEUMS:

Maxiss taxi

• MUSEUM OF NATURAL HISTORY, Njegoseva 51, tel. 344-2149, 344-2568 • MUSEUM OF SERBIAN MEDICINE, Dzordza Vasingtona 19, tel. 3245-149

Naxi taxi

215-76-68

NBA taxi

318-57-77

Pink taxi

9803, 488-99-77

ART MUSEUMS

Plavi taxi (Cukaricki)

• 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

Taxi Bell Zeleni taxi Žuti taxi

581-111, 9804

3-555-999 9808 323-36-66, 324-25-55 9802

CorD | July 2005

Belgrade Directory ... Access transport information? •AMS SCG maintains a comprehensive network covering all major road directions throughout SCG, as well as all major towns and important border crossings. AMS SCG information on road and traffic in Serbia and Montenegro is sent to European automobile clubs daily. Also, traffic information and other information on touring for motorists can be obtained from AMS SCG International Alarm and Information Centre by phone, 24-hours-a-day, 7-days-a-week: +381 11 9800, or via the website at: www.amsj.co.yu

... Find a removal firm?

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.

•Moving can be one of the most stressful events in life. However, by being organised and by planning ahead, you can prepare yourself for a smooth move. When relocating within Belgrade or the surrounding areas, try one of the following companies. In just a few easy steps, they'll help you make your relocation a successful one! Allied Pickfords: 011 878-7744; Interdean: 011 380-8140; Move One: 011 311-4221

... Fly cheaply? ... Recover your towed car? •Finding low costs flights from Belgrade's Surcin airport is all but impossible these days. If you're looking to fly anywhere in the world and don't mind an extra few hours travel, why not fly out of Budapest with Central Europe's first budget airline, Sky Europe? This airline offers cut rate flights to a host of European and world destinations, with prices ranging from as little as €50. Contact the airline and book online at www.skyeurope.com.

... Keep up to date?

• 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. Contact Belgrade's Parking Service on 011 303-17-07

... make yourself understood?

• We all need to keep ourselves informed of the situation in Serbia and, for those of us who don't speak Serbian, it can prove difficult to keep abreast of the news on a daily basis. Thanks to the team at Executive Group, daily prioritised news is available in English and on your desk when you arrive in the morning, in the form of the Executive Newsletter. For more information and to subscribe to the newsletter. Check out the website at www.bizinfo.co.yu.

... Network with fellow foreigners? • Keeping in touch with other foreigners beyond the bounds of corporate circles can prove difficult here in Belgrade and one will often find oneself isolated or confined to mixing with one's work colleagues. For a relaxed networking opportunity and to meet other foreign residents of the city from the worlds of diplomacy, politics and private industry, why not 'hook up' with the members of the Young Diplomats Association? The YDA meet at least once a month in an informal atmosphere to drink at their leisure and mingle with like-minded people. For more information contact Jürgen Kleppich via email at juergen.kleppich@bmaa.gv.at or Ryan Leong at LeongRC@state.gov

... Rent or buy property?

Find yourself frustrated by your inability to say simple things in Serbian? Here at CorD we are endeavouring to make your stay in the State Union a tad less alien by providing a few simple phrases that will help you make yourself understood: Key: Z = as in the 's' in treasure. S = sh, as in shop. J = Y, as in yellow. C = ch, as in church. How much does this flat cost per cubic metre? Koliko kosta ovaj stan po kvadratnom metru? Does this property come with its own parking space? Da li ova nekretnina ima svoje parking mesto? Tell me, did the tow truck take my car? Recite mi, da li je pauk odneo moja kola? What's the latest news on that situation? Koje su najnovije vesti o toj situaciji? I need a truck to relocate to New Belgrade. Treba mi kamion da se preselim na Novi Beograd. How strong is this rakiya and which fruit is it made from? Koliko je jaka ova rakija i od kojeg je voca?

•According to legal regulations governing the property market in

What draft domestic beer do you have? Koje toceno, domace pivo imate?

Serbia, foreign residents have the full legal right to purchase real estate property on the territory of Serbia. If you're interested in renting or buying flats, houses, retail spaces or business premises, contact the expert estate agents of Sims Nekretnine via email at sims@infosky.net

What's the cheapest flight to London in August? Koji je najjeftiniji let do Londona u avgustu?

CorD | July 2005