CorD magazine No. 4 by CorD Magazine

interviews | opinions | news | comments | events April 2004

Editor in Chief: Biljana Stepanovic editorial@cma.co.yu Assistant Editor: Rob Dugdale r.dugdale@cma.co.yu Editorial: Danica Vien, Dragan Novakovic, Ron Davies, Milan Culibrk, Katarina Murar, Ana Filipovic, Slobodan Kostic, Nebojsa Grabez, Nebojsa Bugarinovic, Dragan Bisenic, Nina Nicovic, Vesna Musulin, Petar Mickovic, Maja Vukadinovic, Sijka Pistolova, Sonja Lukic, Misa Brkic, Srdjan Jankovic, Tatjana Solunac Editorial Assistance: Mary Gibson, Clare Zubac

08 MIRACLES DO NOT HAPPEN Mr. Radovan Jelasic Governor of the Serbian National Bank

Translators: Dejan Zubac, Milos Milosavljevic, Igor Adzic Photo: Danka Ninkovic, Dragan Milosevic, Djordje Popovic, Zoran Sinko, Branko Jovanovic, Sasa Mircic, Dragan Jevremovic Photo Agencies: FoNet, Tanjug and Beta Special Thanks to: Miroslav Prokopijevic, Zoran Stanojevic, Dubravka Zverzhanovski, Nikola Nikolic, Tourist Organization of Belgrade, Russian Cultural Centre, Embassy of Mexico, PR Agency Luna Art & PrePRESS Director: Branislav Ninkovic b.ninkovic@cma.co.yu Marketing Director: Jasmina Kamidzorac j.kamidzorac@cma.co.yu Advertising: Milos Krstic m.krstic@cma.co.yu Office Manager: Sonja Rados sonja.rados@cma.co.yu Publisher: Zoran Cadez z.cadez@cma.co.yu General Manager: Ivan Novcic i.novcic@cma.co.yu Director: Ana Novcic ana.novcic@cma.co.yu Printing: Politika AD CorD is published by CMA (Consulting & Marketing Agency), Krunska 24a, 11000 Belgrade, Serbia & Montenegro. Phone: +(381 11) 30 33 020 Facsimile: +(381 11) 30 33 535 E-mail: office@cma.co.yu ISSN no.: 1451-7833 All rights reserved ÂŠ CMA 2003/2004

16 EDUCATION AGAINST POVERTY Mr. Rory O'Sullivan World Bank Country Manager for Serbia and Montenegro

74 DO YOU SPEAK PERSIAN? Mr. Gholam Vafaei The Iranian Cultural AttachĂŠ

54 COURAGE TO INVEST Mr. Patrice Dierick The General Manager of Efes Weifert Brewery

CorD | April 2004

contents CENTURIES OF CLOSE RELATIONS H.E. Mr. Hannes Porias Ambassador of the Republic of Austria

GERMAN INVESTORS REMAIN CAUTIOUS Mr. Martin Knapp Director of the German Chamber of Industry and Commerce in Belgrade

MOVE ON SECURITY ISSUES Mr. Oliver McTernan Club of Madrid

SELF-CONFIDENCE KEY TO TRANSITION H.E. Mrs. Yaffa Ben Ari The Ambassador of the State of Israel

62 BESET BY RESTRICTIONS Mr. Danilo Burzan Montenegrin Minister of Foreign Affaires

"CRYSTAL NIGHT" Fierce Ethnic Conflict in Kosovo

OUT OF BELGRADE Blossom farm CorD | April 2004

Comment

Resisting the Computer The citizens of Serbia want a fast and efficient administration, but only one which will be accompanied by immediate benefits. An efficient administration forces the population to follow regulations and leaves little space for bargaining, the very type of bargaining that underlies every success story in Serbia, which is why there are so few successful people here.

Comment

firmly believe that Serbia will be ready for an ordered system the initial expenses are levelled out membership of the European Union only once fairly rapidly and, in the long run, the budget can only her citizens have been provided with online benefit from information technology. If there is anyone administrative and financial services. I am prepared to out there who still fails to understand why computers back up this claim with practical arguments, since I am are so popular and in such high demand, the answer is neither a visionary, nor a great enthusiast of advanced simple - it is because they are so practical. technology. If it sounds that way, then it is only However, all this does not apply to an inefficient because I have begun at the very end - a side effect that society, where labour is cheap and, consequently, I have taken to be the basic criterion of feasibility. information technology expensive. A desk clerk is No one has ever explained to Serbian society what cheaper than a bank automat, not to mention more membership of the European Union actually means. complex administrative operations that still require The majority believe that prosperity is infectious and adequate databases. People do not resist computers would vote for European Union membership without here because they are afraid they might in some way thinking twice. You only have to spend some time in break or disable the complicated equipment, on the the company of the affluent and things automatically contrary, they are afraid of its capabilities. To be more start happening. If only precise, their concern is No one has ever explained to Serbian society with what will be left for someone would take the time to elaborate on the what membership of the European Union actually them to do once the comamount of sacrifices and means. The majority believe that prosperity is puter has taken over their compromises they would assignments. It is not only infectious and would vote for European Union anxiety about the prospect have to make, not to mention all the work that has membership without thinking twice. of being unemployed, but to be done only to begin also whether the individpaving the way towards accession, the chances are ual can respond and adapt to the changes and new they would retract their votes in an instant. demands posed by changes in technology. Only, what has all this got to do with the internet? Consequently, computers are in most cases used as Let us just say that in a modern society faced with advanced typewriters and are adapted to the current fierce competition, such as the European Union, you system rather than used to make it more efficient. have to take advantage of every opportunity to gain a Information technology cannot jump start a sociecompetitive edge. That includes the use of information ty into motion. It is only when change takes place that technology to optimize your own production and marit turns out to be a crucial component in maintaining ket sales. That, however, is just the beginning. Using the momentum. Everything starts clicking into place information technology to upgrade the economy can bring advanceat this stage. Companies develop their own IT systems ment in some areas of social activity only. In order to make the whole to boost efficiency, the administration has to keep up society more prosperous and efficient, it has to change gear in all and the result is a system where the ordinary citizen areas of activity, state administration being the number one priority. can carry out most administrative operations and No economy can stay on track with a slow and inefficient administransactions online. tration. Now we are back at the beginning. To create this Computers will not make a difference by themselves, but they do kind of system in a stagnant society is an unaffordable encourage the population to take advantage of their potential and luxury. In a successful society the system is a consereformulate existing processes and procedures, given, of course, that quence of perpetual motion and is generated from the people want to move in that direction. within; while it remains the government's task to This is where we stumble upon the first obstacle. The citizens of make sure it does not become chaotic. Serbia want a fast and efficient administration, but only one which will The best indicator of change and motion is when be accompanied by immediate benefits. An efficient administration the average citizen starts using online services and forces the population to follow regulations and leaves little space for this experience is no more peculiar that talking into a bargaining, the very type of bargaining that underlies every success mobile phone. story in Serbia, which is why there are so few successful people here. Zoran Stanojevic The other problem is money. Computerising a society costs, but in BBC correspondent from Belgrade

CorD | April 2004

Interview Mr. Radovan Jelasic, Governor of the Serbian National Bank

Miracles do not happen Despite an inflation rate of 7.8 percent, last year saw a devaluation of the dinar of approximately 1 per cent, and that level of stability was achieved in part thanks to privatisation revenue of 1.3 billion US dollars. In spite of the fact that such an influx of foreign capital from privatisation is not expected in 2004, the Governor of the Serbian National Bank, Radovan Jelasic is convinced that a significant change in the dinar rate should not be expected. By Milan Culibrk, Photo Dragan Milosevic

s a reason for this optimism, in his interview for CorD, Jelasic cites the previously agreed financial support from the World Bank and the International Monetary Fund which has not yet materialised, stating that if the new government and parliament fulfil the obligations set out, several millions of US dollars of fresh capital could flow into Serbia relatively quickly. Jelasic also reminds us that during the recent electoral campaign some of the new ministers pointed to the sale of state shares in Mobtel, the issuing of a licence for a third mobile telecommunications operator and the possible sale of some NIS shares, so combined with the support of the World Bank, the International Monetary Fund and the European Union CARDS programme, around one billion dollars could flow into Serbia before the end of the year. With foreign currency reserves of over 3.4 billion dollars and a projected inflation rate of seven percent, the Serbian National Bank does not intend to change its regime of a controlled fluctuating exchange rate, says Jelasic, adding that what remains to be seen now is what sort of budget the new government will propose. A delegation from the International Monetary Fund is expected to arrive in Belgrade soon. What will you discuss and do you expect any problems in view of the delayed payment of two instalments from the three-year agreement reached with the foundation in May 2002? The basic aim of the International Monetary Fund delegation will be to become acquainted, first hand, with the new Serbian Government's econom-

CorD | April 2004

Interview

ic policy, which will be partly reflected in this year's budget. One of the subjects open to discussion will certainly be the continuation of the restructuring of the banking system and solving the problem of the huge foreign trade deficit, which reached record levels of almost five billion dollars last year. That problem cannot be solved through monetary policy and a change in the exchange rate alone since it does not play a key role in the Serbian economy's lack of ability to compete on the market. Before approving new financial support, the International Monetary Fund needs assurance that the new Serbian Government has everything under control, and the key issue will be the budget, not only its scope, but also its internal restructuring, because "miracles" in the sense of additional money, do not happen. The "overheating" of prices and greater inflation than the predicted seven per cent can only be prevented by means of a controlled budget deficit, financed from real sources, and both the Government and the Serbian National bank have taken on obligations towards the International Monetary Fund and the World Bank which must be fulfilled. There is simply no bottomless barrel and the Serbian National Bank cannot, at the Government's demand, print money to compensate for shortages in the budget. I am convinced that Finance Minister Mladjan Dinkic knows what that would mean since he used to be the governor.

nomic atmosphere in Serbia is to the advantage of those who thought they would be able to get even more money from Serbia. When we sit down at the same table gain with the negotiators from the London Club I hope they will realise that they should seriously reconsider our first offer. Bearing in mind the current economic and political situation in Serbia, if I were in their shoes, I would demand the speeding up of negotiations.

There is simply no bottomless barrel and the Serbian National Bank cannot, at the Government's demand, print money to compensate for shortages in the budget. Does this mean that Serbia will continue to insist that the London Club sign off 66 per cent of its demands as was agreed with the Paris Club?

I would demand the speeding up with London Club

Is there a danger this year of jeopardising the country's ability to pay off foreign debts because of the forthcoming payment of former foreign currency savings and obligations towards foreign creditors? Bearing in mind the foreign currency reserves, the possible influx of capital I referred to earlier and revenue from privitisation which will come through in March and April from last year and on the basis of pre-existing trade agreements, I am convinced that there will be no problems this year in meeting those obligations. Whether this remains the case in the forthcoming period depends for the most part on economic growth because in 2009 and 2010 these obligations will no longer be around 400 million dollars as they are now, but will have more than doubled and they will still have to be met. Serbia will not be able to apply for additional foreign credit until she has regulated her obligations towards the London Club. Will the fact that as deputy governor you worked for a long time in the same team with new Minister of Finance Mladan Dinkic contribute to a more rapid regulation of those debts? Minister Dinkic and I will firstly have to inform ourselves about how far those negotiations have reached and what the last offers from each side were. However, neither the political nor the ecoCorD | April 2004

Interview

Serbian National Bank

New economic policy will be partly reflected in this year's budget

That is not just an obligation which we agreed to with our creditors from the Paris Club, but also a reflection of our economic reality.

When does the Serbian National Bank intend to abandon the policy of a controlled fluctuating exchange rate and withdraw from the foreign exchange market leaving it to the banks to deal with? The mid term interests of the Serbian National Bank are to withdraw as soon as possible from the foreign exchange market, but before that can happen a large amount of work needs to be done, the development of the market mechanism, a reduction in the widely spread grey economy, changes to the way the banks function and the penetration of the dinar into all the pores of our economy. There is still no room for the Serbian National Bank to manoeuvre, to lead a real monetary policy and to manage cash flow through finely tuned market instruments and we must admit openly that mandatory reserves are still the only remedy which acts rapidly and effectively and monetary policy is mainly implemented through the buying and selling of foreign currency. At the present level of development of our financial market, any increase or decrease in discounts or interest rates on Serbian National Bank bonds has a minimal effect. Demands for money still far exceed offers and I hope that this will change after the arrival of some new banks in Serbia. Only after all this has been achieved, will the Serbian National Bank slowly start to withdraw from the foreign currency market and it will indeed tip the scale and at the very last moment jump in with its own offer if no other bank shows an interest in selling foreign currency.

What is the Serbian National Bank's current level of participation on the foreign exchange market? According to preliminary data, the Serbian National Bank par-

CorD | April 2004

ticipates at around 15 per cent on the inter banking foreign exchange market, while 35 percent goes to commercial banks. However, the greatest part is still held by exchange offices. Why do companies, not only citizens, buy and sell foreign currency though currency exchange offices, and not on the official foreign exchange market? That is not the fault of the foreign exchange offices. The essence of this problem lies in the large

I hope that the announced measures for cuts in taxation and the simplification of business procedures will contribute to a more rapid legalisation of businesses which have so far been run within the grey zone. scope of the grey economy, and the fact that the gap between the grey and the legal economy is breeched through foreign exchange offices. Finding a solution to this problem will be one of the greatest challenges facing the new Finance Minister and the Tax administration. We must discover who trades foreign currency in such a way, who keeps double accounts and why there is such a great interest in illegal trade and tax evasion. I hope that the announced measures for cuts in taxation and the simplification of business procedures will contribute to a more rapid legalisation of businesses which have so far been run within the grey zone. What is, in your opinion, the basic reason for the existence of around three billion euros outside banking channels? From the moment the money enters the legal financing system, it is impossible to transfer the same funds to the "illegal" system in a short time. On the other hand, some transactions cannot be car-

Interview

ried out legally if all participants in the business do not want that to happen. That is why some do not want to place their money in the bank, thus "laundering" it, until such time as they can be sure that their partner will agree to pay through the bank. However, the entire foreign exchange reserves are still on the increase and I hope that after January 1st 2005, when we plan to sat up a new insurance system for deposits which will contribute to the further strengthening of savings. What is the likelihood of payment operations between Serbia and Montenegro becoming easier? It is obvious that Montenegro does not intend to give up the euro as a means of payment, while Serbia is determined to keep the dinar as its own currency, and as long as the situation remains such, payment operations between Serbia and Montenegro will have to be carried out in the same way as with other countries which use the euro as their currency. However, what is important is that those who send and receive money do not experience any problems because the payment operations between Belgrade and Podgorica are carried out through corresponding banks abroad. This is the unavoidable consequence of two different currencies. The Serbian National Bank will fully respect the Constitutional Charter, but life has to go on. After all, apart from the forthcoming talks with the Montenegrin Central Bank about payment operations, we will also continue talks about the division of financial assets and liabilities of the former Yugoslav National Bank, the distribution of capital from the Bank for International Settlements in Basel and many other matters.

The State has until the end of May to withdraw all deposits from other banks and transfer them to the Serbian National Bank. Will the Serbian National Bank, as has been suggested, in return reduce mandatory reserves thus neutralizing the fall in liquidity caused by the withdrawal of State deposits? The greatest part of that money has already been returned and there is no need to reduce the rate of mandatory reserves. The last time this rate was reduced was almost a year ago when it was cut to 18 per cent in response to rumours that without such a measure banks would not be able to return state funds. Miraculously, almost all deposits were meanwhile returned, and the rate of mandatory reserves was not reduced. So it is obvious that it can be done. Mandatory reserves are, sadly, still the most effective instrument at our disposal and any decision to cut them can be considered only in the case where it is coordinated with the fiscal policy. However, there are many other mechanisms which can support economic growth i.e. an increase in the gross national product. Some time ago, as vice governor, you were in charge of banking control. Can we expect any changes in that field? Every day, as deposits grow, the responsibility of the control

CorD | March 2004

As deposits grow, the responsibility of the control sector becomes greater sector becomes greater and I will be able to say more about the implementation of new measures when we have completed personnel issues and appointed the new vice governors, because according to new the National Bank Law the governor does not appoint his closest associates by himself, but with the approval of the Serbian National Bank Council. I sincerely hope that establishing the facts about the ownership structure of domestic banks will bear fruit.

When we sit down at the same table again with the negotiators from the London Club I hope they will realise that they should seriously reconsider our first offer. Did the all banks provide the necessary data about their stockholders, including who is behind the off shore companies before the March 1st dead line? That is currently underway and I hope that by the beginning of April we will be able to take some concrete steps on the basis of this data. However, the stories that investors from abroad, having nothing else to do, came to Serbia and invested 10 to 15 million euros have no bearing in reality. Any bank in any country has a vested interest in who owns two or three per cent of its stock. The actual level of transparency here is well known and I am a hundred per cent sure that every general director of every bank knows the exact name, address, not to mention the record book of every single share holder in his bank. â&#x20AC;˘

Fierce Ethnic Conflict in Kosovo

"Crystal Night" There were no Serbs left in Kosovo Polje, the largest Serb settlement in the region prior to the war, their homes burned to the ground. More than 30 people were killed during the three-day violence in Kosovo, while another 600 civilians and 100 policemen were injured. Several hundred homes have been razed and 25 churches and monasteries destroyed, among them cultural monuments protected by UNESCO.

Kosovo

he fuse that set of an explosion of ethnic conflict in Kosovo was lit after the bodies of two children were found in the Ibar River, by local authorities and UNMIK police. Albanian media claimed that the children drowned after being driven into the water by young Serbs from the neighbouring village of Zubce. News that a third child was still missing only added further fuel to the flames. Several thousand ethnic Albanians clashed with UNMIK police in Kosovska Mitrovica on March 17th, at 11:00. Armed Albanians from Mitrovica and neighbouring settlements managed to break through the blockade set by international police forces and cross the bridge towards the northern part of the town inhabited by Serbs. Several hundred armed Serbs were waiting on the other side. After several hours of gunfire exchange, the Albanians retreated to southern Mitrovica and UNMIK took control of the bridge once more. However, what followed was a synchronised assault by Kosovar Albanians on the remaining Serb enclaves in the region. Italian members of KFOR prevented the attackers from storming into several villages inhabited by Serbs. In Prizren - a town where the Serb population of several thousand has been reduced to 60 old men, since the war in Kosovo ended - ethnic Albanians burned down six Orthodox churches. These included: the Seminary, the Episcopate, the Congregation Church, the Bogorodica Ljeviska Church, the Church of Holy Salvation and the Monastery of Holy Archangels, all part of Serbia's cultural heritage from the 14th century.

CorD | April 2004

By Nebojsa Bugarinovic

Thousands of Albanian youths charged through an international police blockade at the Serb village of Caglavica, clashing with local inhabitants blocking the road to Skopje in protest against the recent wounding of a Serb. Several houses on the outskirts of the village were torched, with the attackers only withdrawing in the evening hours, after decisive intervention by US military forces armed with 30 armoured vehicles. The following night was dubbed "the Kosovar Crystal Night", and international forces had no con-

The violent fervour in Kosovo did not subside despite appeals by local politicians and representatives of the international community. Nor in the light of the statement, by KFOR spokesman Jim Moran, that a surviving child from the Ibar tragedy did not in any way indicate that Serbs might have been the cause of what happened trol over the events, with a large number of units retreating to their barracks to seek protection. Attacks on Serbs and destruction of their property were reported in Pristina, Orahovac, Gnjilane, Vitina, Obilic, Strpce and a large number of other villages Kosovo-wide. More than 4000 people have been expelled from more that 30 Kosovo settle-

Fierce Ethnic Conflict in Kosovo

Bajrakli Mosque was burnt East Europe, Erhard Busek, said ethnic-Albanian politicians triggered the latest crisis in Kosovo, adding that the violence could not be described as spontaneous attacks on the minority Serbs. Busek said the violence was part of an election campaign strategy on the part of certain political parties, try-

Street riots and conflicts between hundreds of hooligans and police in Belgrade culminated in front of the Bajrakli Mosque, that was set abalze in the late hours of the night.

Kosovo

ments, with 1,500 being accommodated in KFOR and UNMIK bases. Assaults, expulsions, beatings and killings of local Serbs continued through Thursday and Friday, alongside escalating conflicts with international forces. In Serbia, reactions to this latest escalation of violence in Kosovo ensued in the hours following news of the first victims reaching the public. Several thousand people gathered in the streets of Belgrade and other Serbian towns, demanding that the government dispatch armed forces to Kosovo. Street riots and conflict between hundreds of hooligans and police in Belgrade culminated in front of the Bajrakli Mosque, which was set abalze in the late hours of the night. Firemen managed to extinguish this fire in Belgrade, but another mosque was burnt to the ground in Nis. The Government focused on putting diplomatic pressure on the international community, and calming down the rising tensions throughout Serbia. Serbian Prime Minister Vojislav Kostunica called on citizens to peacefully support their countrymen, and emphasised that ethnic groups in Kosovo would have to be physically separated in order to prevent a pogrom of Kosovo Serbs. A motion to include military units of Serbia and Montenegro in the process of restoring and maintaining peace in Kosovo was attached to demands for the protection of the local Serb population. Although the proposal was rejected by NATO Secretary General Jupp de Hof Schefer, who assured that a new contingent of 2000 soldiers from the USA, Great Britain, France, Germany and Italy would guarantee the safety of all Kosovars, Defence Minister Boris Tadic stuck to his earlier statement that: "Serbia and Montenegro reserve the right to send their security forces to protect the nonAlbanian citizens of Kosovo, in the event that KFOR and UNMIK missions fail in this task." The violent fervour in Kosovo did not subside despite appeals by local politicians and representatives of the international community. Nor, in the light of the statement by KFOR spokesman Jim Moran, that a surviving child from the Ibar tragedy had not in any way indicated Serbs might have been the cause of what happened. This child had returned home and told his parents that he and three more children had stepped into the river on Tuesday, around 15:30, near the village of Zubce, and had been immediately dragged in by the current. The boy managed to reach the opposite bank of the river, but his friends, also trying to reach the safety of the riverside, had been swept away by the river, Moran told a press conference. UNMIK spokesman Derek Chappell told Austrian state television ORF that the escalation of conflicts in Kosovo was obviously planned in advance. Chappell said these were co-ordinated assaults, synchronised to begin at several locations simultaneously, proof that they were premeditated. Special Co-ordinator of the Stability Pact for South

ing to gain a competitive edge before the upcoming local elections in October 2004. The Italian Commander of the Multinational Brigade Southwest, General Alberto Primiseri, shares a similar view on the crisis. He told Italian daily Corriere della Sera there was obviously a plan to ravage Kosovo with fire and sword for some time. Early on, international media referred to the crisis as "interethnic conflicts in Kosovo". However, after an urgent UN Security Council meeting and strong statements by Western officials, the media tone of reporting shifted towards observations claiming the violence was an attempt to ethnically cleanse the province of its Serb population, already more than halved by the war in 1999. News summaries of the latest crisis in Kosovo say that more than 30 people were killed during the three-day violence, while another 600 civilians and 100 policemen were injured. Several hundred homes have been razed and 25 churches and monasteries destroyed; among them monuments protected by UNESCO, as part of their world cultural heritage programme.â&#x20AC;˘ CorD | April 2004

Interview

Education against Poverty Mr. Rory O'Sullivan, hitherto World Bank Country Manager for Serbia and Montenegro

By Milan Culibrk, Photo Dragan Milosevic

Economic growth must continue at an annual rate of 4-5% in Serbia, otherwise, the economy could face serious problems. Exports will have to keep growing at much higher rates than is presently the case. Hence, it is very important that the government continues with the reforms. There are two scenarios for Serbia: the country will either continue to implement the reforms or return to the period of economic decline

he World Bank approved a new USD 21-million grant on March 16th, 2003. This was the first donation Serbia had received from an international institution after the election of the new government headed by Prime Minister Vojislav Kostunica. This latest package of financial assistance is also proof that the World Bank has contin-

The Strategy means less money for the defence budget and more spending on education. All of the studies that have been carried out so far have shown that education is the key to poverty reduction. ued to co-operate with the new Serbian government unabated, said hitherto World Bank Country Manager for Serbia and Montenegro Rory O'Sullivan. O'Sullivan added that the World Bank's Board of Directors has yet to decide how much longer Serbia and Montenegro can count on financial assistance in the shape of soft credits under IDA propositions reserved for the world's poorest countries. The World Bank is still discussing how Serbia and Montenegro should be treated in the threeyear period following June 30th 2004. Serbia and Montenegro have gained enough wealth to stop receiving soft credits, but, at the

CorD | April 2004

Interview same time, are not wealthy enough to start borrowing money under regular market interest rates. Most probably, we will ask the Board of Directors to approve a midway solution. This would allow Serbia and Montenegro to partly borrow from the World Bank in the form of soft credits under IDA propositions, while the rest would be granted under conditions that are close to the crediting policy of the European Bank for Reconstruction and Development (EBRD). The decision will be made by June 30th and the decision-makers will certainly have in mind that Serbia and Montenegro do not have full access to the financial market, a fact that will go in favour of a decision to grant Serbia and Montenegro partial access to cheap credits. However, I don't expect all future credits to be granted under IDA propositions. The World Bank Office in Serbia and Montenegro is not authorized to make this decision, but we will push for these conditions before the Board of Directors.

Does that mean that Serbia and Montenegro could miss out on the 140 million USD? Serbia and Montenegro could lose this money if the state union fails to meet requirements that are needed for the World Bank to finance concrete projects, and we have discussed these issues with the representatives of both member states and the state union. So, if the financial aid is not linked to concrete projects, the money could remain unused and subsequently re-directed by the World Bank to another country, such as Albania for instance. I have the impression that we are on the right path to avoid such an outcome. Unlike World Bank claims that Serbia is wealthy enough to stop receiving soft credits,

I donâ&#x20AC;&#x2122;t expect all future credits to be granted under IDA propositions many local analysts say that Serbia is very close to a debt crisis. What is your comment this? These claims are correct if they refer to the state of matters three years ago, when the foreign debt posed a serious problem. Several things have happened in the meantime though. A large portion of the Paris Club debt has been written off. The London Club debt is currently under consideration and, as a result of these discussions, another chunk of the foreign debt could end up written off as well. The fact that interest rates have almost halved

Serbia and Montenegro have gained enough wealth to stop receiving soft credits, but at the same time are not wealthy enough to start borrowing money under regular market interest rates. We will push for a midway solution in front of the Board of Directors

Interview

How much financial aid has the World Bank directed to Serbia and Montenegro so far? The World Bank has designated 540 million USD under IDA propositions for Serbia and Montenegro in the three-year period following normalisation of our relations, from 2001 to 2004 - 90% of these funds being directed to Serbia and 10% to Montenegro. 400 million dollars have been granted through various projects so far, and the remaining 140 million will support the reconstruction of the road network (55 million USD) and completing the land registry (30 million USD). The World Bank's Board of Directors has just recently approved a 21million USD credit to support the project of energy efficiency. All of these projects are being implemented in Serbia. In Montenegro, the World Bank plans to support structural adjustment and the health care system. Although a credit for structural adjustment was planned for Serbia as well, we have agreed with the new Serbian government to put it on hold for the time being, since there is not enough time to justify the credit with concrete projects before the deadline expires on June 30th 2004.

means that Serbia will need less financial assets to service the debt. The government has also been very active in restructuring the debt and has managed to prolong the deadlines considerably. Moreover, the value of the US dollar has dropped, which automatically decreased the state union's debt. Serbia has recorded an average 4% annual increase in GDP for the past three years. Economic growth also helps servicing the foreign debt. All this CorD | April 2004

Interview

Interview ure as well, only they were never paid on time. Everyone was keeping clear of Serbia and an economic catastrophe was looming. Today we have a different story: The budget is under control; the local currency is stable; wages have increased several-fold; pensions are delivered on time; European business people are looking for opportunities to invest; and Serbia is not the economic black hole of Europe anymore. There are a lot more problems to solve, but the situation is much better than three years ago. People don't see this however, because they are not comparing the current situation with what it was like three years ago, but with their living standard 20 years ago, when they all lead a much better life.

There are a lot more does not mean that the problems have gone away. Although the situation is much better than in 2000, it is still not good enough. Two things have to happen if Serbia is to climb out of the debt hole. Economic growth must continue at an annual rate of 4-5%, otherwise the economy could face serious problems, and export will have to keep growing at much higher rates than are presently the case. Hence, it is very important that the government continues with the reforms. There are two scenarios for Serbia: the country will either continue to implement the reforms or return to the period of economic decline.

Some analysts say that Montenegro is also on the edge of bankruptcy? Data on Montenegrin debts indicate that it is in a slightly better position in the short-term, but in a position similar to Serbia in the mid-term. If we thought that Montenegro was over-indebted, we would not be fuelling it with financial aid. Why do you think Serbian citizens do not share the positive opinions of international financial institutions on the effects of the reforms implemented so far? The economic situation was very difficult two years ago and the Serbian state budget was totally out of control. The average monthly salary was 45 euros and pensions were around that fig-

CorD | April 2004

In your view, what are the greatest problems? The major problem is unemployment, followed by problems to solve a lack of investment in companies and industry, a high deficit in foreign trade, and the fourth potential problem is the state union's substantial foreign debt. In addition to this, the general political climate is insecure and political stability has yet to be

The economy was in a terrible state until recently in Serbia and we cannot expect miracles to happen. If you ask me whether we are going in the right direction, the answer is yes. Have we reached a satisfactory level of reforms? No. established. One could also ask what we have accomplished so far. The government, donors and their partners have managed to stabilise a situation that was totally out of control. Inflation has been reduced from 120% to 8%, and the budget has been put into balance. Now that a certain level of stability has been upheld, the focus can shift to developing industry, companies and creating job opportunities. This cannot happen at once and the process needs time. In post-war Germany it took 20 years. The economy in Serbia was in a terrible state until recently and we cannot expect miracles to happen. If you ask me whether we are going in the right direction, the answer is yes. Have we reached a satisfactory level of reforms? No.

Interview

tion than other layers in society and appeals to donors to prioritise poverty reduction programmes. It seems there are no changes at the microeconomic level in companies and banks, compared to the reforms underway at the macroeconomic level? That is a concrete description of the current situation, because macroeconomic reforms are easier to implement. It is why we have to say that the reforms are not complete. Some sectors have been reformed, in others the reforms are in progress and in some sectors still they haven't even begun. It is a question of time. Can they go any faster? Of course they can. A stable political climate would speed up the reforms, because when politicians talk about their personal agendas they cannot focus on economic reforms. Furthermore, there are certain weaknesses in implementation. It is nice to have a reformed legislature, but you also have to implement it and here is where we notice faults in public governance.

In which sectors are the reforms the slowest in Serbia? I have already mentioned public governance, which has not reached a level where Then how do you break out of the circle of one could call it modern, efficient, European and poverty? On the one hand, you have to create job focused on helping the citizens instead of the state opportunities, but on the other, there is not apparatus. There has been limited progress in the enough money to achieve this. reform of the legislature and the judicial system, This is a crucial matter and the Serbian but little has been done to decentralise governGovernment has recently adopted the Poverty ment. I think that local governments should be Reduction Strategy, where it has identified which given more authority over certain matters, such as segments of the population are poor, where they water supply and other services. The problems are located and what can be done to alleviate their with the railway system situation. When the issue of poverty is Can the reforms go any faster? Of course they have not been tackled in analysed, both their can. A stable political climate would speed up the right way. There is a meagre wages and their the reforms, because when politicians talk about huge redundancy of staff in the railway sechuman rights have to be their personal agendas they cannot focus on tor, and the budget is put taken into consideration. economic reforms. under a lot of strain in The Strategy contains order to keep all of these many interesting propopeople employed and the whole system operasitions and one of the basic suggestions is to tional. Serbian citizens could ask why billions of change the way the state budget is being spent. In dinars are fed into keeping all those people where a nutshell, the strategy suggests that the poor they are, while the system continues to generate should not receive money from the budget so that they can eat, financial losses. Serbia is not the exception in this but rather finance programs that will qualify them for various case, since all European countries are facing probthings, allow better health care and finally employment. lems with the railway system. Because the infraConsequently, they would be equipped to tackle poverty on their structure was built at the beginning of the 20th own. Again, this means less money for the defence budget and century, and today, when cars are a cheaper and more spending on education. All of the studies that have been more rational mode of transport, the railway has to carried out so far have shown that education is the key to poverbe rationalised as well.â&#x20AC;˘ ty reduction. The Strategy also plans to give the poor more atten-

CorD | April 2004

A stable political climate would speed up the reforms

Interview H.E. Mr. Hannes Porias Ambassador of the Republic of Austria

Centuries of Close Relations By Dragan Bisenic, Photo Danka Ninkovic

Interview

is Excellency has a very interesting background, which has strong links with the former Yugoslavia. "I am very closely linked to Serbia and Montenegro. My Grandfather was a judge in the "old" Yugoslavia and as a child I spent a lot of time in your country. My mother is originally from Slovenia. The history of Yugoslavia is part of the history of my family", sais Mr. Hannes Porias. How did your diplomatic career develop? I am a Doctor of Law, but I completed my postdoctoral studies in foreign affairs in Great Britain. My studies focused on European Union energy policy. I then went on to work for five years in Vienna's Institute for Contemporary Systematic Analysis... In addition to that, I also worked for Austrian radio analysing subjects concerned with energy policies. Since we have already brought up the subject of energy, let us talk more about this potential area of cooperation. The dialogue between Belgrade and Pristina began on the very subject of energy. To what extent can joint energy projects improve the shattered relations in southeast Europe? Cooperation in the field of energy is of vital importance to the entire Balkan region. It is clear that energy is not something that can be closed off with-

The quality of our relations are such that we are really like neighbouring countries. The history of relations between Austria and Serbia and Montenegro is not such a simple one, but we do have centuries of close relations with many similarities in our development. in a national framework. It is always a matter of a large network - particularly in the field of electrical energy. What is needed is greater coordination and adaptation in order to able to supply the users of electrical energy and that can only be achieved by combining inter-dependent networks. International coop-

What is of crucial importance is to solve the matter of land ownership. It is indeed a serious problem if you buy land which does not belong to those who are selling it. eration is the key to electrical energy. The projects designed by Mr. Busek for the Pact for Stability are very important. This also applies to the transport question â&#x20AC;Ś What do you expect from the dialogue between Belgrade and Pristina which we referred to earlier? Cooperation between Belgrade and Pristina is essential to both sides. Neither side can ignore geography and their inter-dependency. This can only be achieved if both sides talk to each other and that is the reason why dialogue is one of the standards set out by the UN. This is vital since the economy is an important question for the future. You cannot have a stable civil system if you do not have a successful economy. The Albanian leaders have confirmed that all standards have already been met and that all that remains is for independence to be declared. Is that not so? I would like us to cast our minds back to what UN General Secretary Kofi Annan and Javier Solana stat-

ed recently. They said that the entire process would be evaluated in 2005 if the standards were met. Several Austrian diplomats including Minister Benita Fererro -Waldner have reiterated that there can be no talk of the final status without the return of refugees to Kosovo. That is completely clear. The return of refugees is one of the standards and the fulfilment of all standards is the solution to the question of security and safety as well as freedom of movement for all in Kosovo. Vienna was always important to the Balkans. Serbia and Austria do not have an adjoining border but Chancellor Wolfgang Sch端ssel says that we are "second neighbours". How would you describe those relations? The Austrian idea for the region is very clear: we want a stable and universal development of the whole area, an area to which we also to a certain extent belong. Metternich once said: "The Balkans begin at the Rennweg" (Remark: Street in the 3rd district of Vienna). Some see this simply as a very good joke, but there is indeed a great deal of truth to it. It is not just a matter of us being practically neighbours - the only thing we do not have in common is an adjoining border. The quality of our relations are such that we are really like neighbouring countries. The history of relations between Austria and Serbia

is not such a simple one, but we do have centuries of close relations with many similarities in our development. Austrian companies are very active in Serbia. There are around 150 of them, ranging from banks and industrial companies to law offices.

Serbia's potential for a rapid transition is very great and Serbia could move towards a very speedy and successful transition. The question which remains, however, is as to where the focus of that transition lies.

Interview

Cooperation between Belgrade and Pristina is essential to both sides

What are their experiences and what are the most common difficulties have they encountered working here? Austria is one of the most active countries in the Serbian economy. If you look at her relative size within the European frame, Austria is probably among those countries with the highest investment. What is very positive is that these are not only unilateral investments, but bilateral partnerships with Serbian companies, in which all kinds of companies, from the largest Austrian company through to the very smallest take part. Over the past few years we have done everything possible to help people to transform their genuine interests into concrete actions. This has been successful but there is a great deal more that still needs to be done. There has been talk recently about several CorD | April 2004

Interview important laws which need to be changed in order to encourage foreign investment, but that already forms part of the Serbian Government's plans. As long as we persist with our joint efforts we will continue with development in all these areas.

Interview

Do Austrian investors feel that their investments are safe and secure here? Investment security is something which should definitely be improved upon and your authorities are aware of the need for change in this area. What is of crucial importance is to solve the matter of land ownership. It is indeed a serious problem if you buy land which does not belong to those who are selling it. Apart from that, the great majority of our companies are satisfied and very happy to work here. After the initial teething problems they are working very well. Within the European Union Austria is responsible for the development of Corridor VII through the former Yugoslavia while Greece is responsible for Corridor X. How do you see the Austrian role in connecting the Balkans? Because of her position, Austria is interested in a well thought out, ecological and intact transport system throughout Europe. We share our joint interests with Serbia. Numerous contacts have been made and we will definitely cooperate within the field of transport, regardless if whether that is by river, air, rail or road. JAT and Austrian Airlines recently signed a contract to increase the number of daily flights between Belgrade and Vienna.

Straight after the bombing plans were made to clean up the Danube, but this has not yet been completed. What are the reasons for this delay, which causes problems for many countries from the Danube basin? The Danube is a very important question. In the year 2000 Austria held the presidency of the Danube Commission. During that time I was also the Austrian Ambassador in Budapest. In 2000 we adopted a joint declaration stipulating the cleaning up of the Danube as soon as possible after the bombing. Today, this work has almost reached completion - the river is almost totally clean and bridges are now being built so the last obstacles will be removed. You have served as Ambassador in other transitional countries. Can you compare their experiences with those of Serbia? Making comparisons is always dangerous. The transitional processes in Serbia and Hungary are different because the starting positions were different. The experiences of other countries could be of help to Serbia, but there is no way that they can be implemented automatically. How do you assess Serbia's potential for transition? Serbia's potential for a rapid transition is very great and Serbia could move towards a very speedy and successful transition. The question which remains, however, is as to where the focus of that transition lies. We are very well aware that the past few years have not been at all easy for your country. When the political situation stabilises, it will be possible to concentrate all

CorD | April 2004

forces in the joint aim of working together on the problems of transition. That also means transition towards European integration. Is there any truth to the rumours in the western press that the European Union has taken on special responsibility for Serbia and Montenegro

Cooperation between Belgrade and Pristina is essential to both sides. Neither side can ignore geography and their inter-dependency. as some sort of European protectorate? The responsibility for any country is held by the country itself. No foreign force can be responsible for that. What it can do is to help and offer support. A protectorate is a word belonging to the last century. This is a matter of European solidarity and is in the interests of all those who live in the interdependent word. If the European continent wishes to be successful, it must be capable of implementing peace and stability. That is what the entire project of European integration means. This is more like a European offer to the whole region and a way of expressing our willingness to help. Whether or not that offer is accepted depends on you. We expect the new government to continue with the implementation of reforms and to carry on along the path towards European Union integration.â&#x20AC;˘

The Serbian Government's Economic Policy

Serbia in need of investments By Biljana Stepanovic, Photo Dragan Milosevic

The government plans to significantly decrease the interest rates on treasury bonds that are used to bridge over budgetary deficit, as well as to indirectly bring about the decrease of interest rates on bank loans

n his presentation of the Serbian Government's economic strategy the new Finance Minister Mladjan Dinkic stated that the biggest advantage for the new government could be the fact that nobody expects anything from it. Up until now, the main purpose of the public finances had been macro economic stability, which will remain the case, however, Dinkic also said that macro economic stability and relatively low inflation are not enough, and economic growth is needed. Consequently, the main objective of the economic policy of the new government is to use public finances for economic growth. The new policy of public finances, in his view, could be the driving power for the development of Serbia and its economy, which at the moment is in

Among the key laws that will be submitted to parliament for adoption is the Law on Value Added Tax (VAT), which will be adopted immediately, and its implementation will start early next year

Mr. Mladjan Dinkic 26

CorD | April 2004

recession. So what does this involve? First of all, it involves the adoption of a new set of tax laws; the abolition of certain laws; as well as a reduction in the number of laws, which at the moment amount to some 130; and the simplification of taxation procedures. The second objective is to develop the capital market and, to begin with, reduce interest rates. For example, at the moment the monthly interest rate on Republic of Serbia treasury bonds is 23%, which is much too high for secure state bonds. Therefore, the government plans to significantly reduce the interest rates paid on treasury bonds, used to bridge over budgetary deficit, and indirectly trigger a reduction in the interest rates payable on bank loans. Then, having in mind the legacy of legal insecurity in Serbia, which it is not possible to eliminate overnight, the mechanisms for insuring bank loans must also be developed. In particular, this relates to the loans for small and medium size enterprises, housing loans, insurance for export businesses, loans for the develop-

It may seem illogical, but at this moment our best chance derives from the fact that Serbia is not a candidate for the EU, as production costs in these countries, those joining the Union this May, will grow significantly, due to the harmonization with the EU standards required that obligation and we should exploit this chance by reducing production costs and duties on the one side, and introducing general rationalization on the other. Serbia needs "green field" investments, since experiences show that privatization alone is not enough to start economic growth," stated Dinkic. Furthermore, the Serbian Government is planning to abolish certain taxes. Prior to the beginning of next year, the tax on financial transactions

The Government is planning to modernize the work of all inspection boards will be abolished in several stages, each encompassing different industries, with investors able to acquaint themselves in advance of the changes. Income tax for the agricultural industry will be abolished immediately, together with the excise tax on fuel oil, motor oil, lubricants and non-alcoholic beverages. In addition, the tax on capital gains, as well as the tax on boats and hunting weapons, will be abolished immediately. The Serbian Government is also planning to propose a new Law on Insurance, and create a special Insurance Companies Supervision Agency, based on the example of modern European countries. This would address the need for regulation, as "The situation in the sphere of insurance companies is ", according to Dinkic," the same as it had been in the banking sector in October 2000 - complete chaos and disorder reign everywhere". Consequently, two laws are be tabled. First, the Law on the National Corporation for the Insurance of Housing Loans, and secondly, the Law on the Amendment to the Law on the Guarantee Fund, with the latter being more aggressive in providing insurance for bank loans. Though at the moment, its resources are rather modest, more money should be transferred from the budget, and apart from the loans for small and medium sized enterprises, the fund will also be used to insure the loans for agriculture and underdeveloped areas. In order to kick start production and export, it is thought that the expenses and risks of conducting business in Serbia must be reduced. One of the anticipated ways of achieving this will be to provide cheaper bank loans with a longer return period. Therefore, in a short period of time, the state will provide insurance on loans for small and medium sized companies of up to 50%, and for agriculture of up to 80%. All in all, Mladjan Dinkic claims that the interest rates will be considerably decreased by the end of the year.â&#x20AC;˘

Economy

ment of underdeveloped areas, and loans for the agricultural industry. The government is also planning to modernize and improve the work of all inspection boards, including the Tax Department, Customs Department, Money Laundering Prevention Department and Currency Inspectorate. Although one of the objectives of the former government had been to decrease the grey economy, Dinkic believes that for something like this to happen then changes in taxation law must take place first, followed by rigorous control on the part of the inspection boards. Among the key laws that will be submitted to Parliament for adoption is the Law on Value Added Tax (VAT). The government intends to pass this first and then secure the conditions for its consistent implementation. The experiences of the countries that implemented this law show that it takes at least six months for the economy and tax administration to be prepared. Therefore, the law will be adopted quickly, but its implementation will only start on January 1st 2005. Concerning this, Dinkic has said that the time limit set by his predecessor Bozidar Djelic had been unrealistic and politically motivated. Similarly, the tax rate would not be 20%, as previously announced, but 18% at the most. Furthermore, the second very significant change to the taxation system and the most radical move this year, would relate to the contributions on salaries, which its proposed to reduce by one third. "Serbia will have the opportunity to attract investors from South-East European countries soon to join the European Union, only if it is able to compete with other non-EU candidate countries. It may seem illogical, but at this moment our best chance derives from the fact that Serbia is not a candidate for the EU, as production costs in these countries, those joining the Union this May, will grow significantly, due to the harmonization with the EU standards required. We do not have

CorD | April 2004

Interview

German Investors Remain Cautious Initially, the German economy invested in almost all transitional countries but the wish to invest in new regions has somewhat abated. Investors are still affected by the lingering image of Serbia from the nineties and the German economy reduced its interest in investments in Serbia following Djindjic's assassination

By Dragan Bisenic, Photo Dragan Milosevic

ur goal is to strengthen bilateral economic ties between the German and Serbian economies. This means the presence of the German economy on the Serbian market and vice versa. Serbia is a country whose imports far exceed its exports and the bilateral balance of trade with Germany is no different in that respect. That's why Serbia has to take steps to boost exports, says the representative of the German Chamber of Industry and Commerce in Belgrade, Martin Knapp. Which sectors of the German economy and industry have the strongest presence in Serbia? There are more than 160 German companies currently present in Serbia. The problem is that a number of them are represented by sister-compa-

Recently new customs regulations where implemented that prevented foreigners from entering the country with basic items deemed necessary for a longer stay in Serbia. The TV and several newspapers mentioned picked up the issue. Now the problem has been solved but nobody noticed it. Since nobody can change the habits of the media, everybody has to pay attention not to give reason for negative reporting nies from other countries and for various reasons, a large number of German firms formally operate as Austrian enterprises. Well known names such as Siemens and Henkel belong to this category. What are the expectations of the Serbian partners? The spectre is rather wide. Many firms are looking for the opportunity to export their products to Germany, or to forge partnerships with German firms. The prevailing desire in Serbia is to see greater German investment in the national economy. Are German companies willing to invest in the Serbian economy?

CorD | April 2004

Mr. Martin Knapp Director of the German Chamber of Industry and Commerce in Belgrade German investors are cautious when it comes to making any kind of investment in the Serbian economy. Initially, the German economy invested in almost all transitional countries but the wish to invest in new regions has somewhat abated. Investors are still affected by the lingering image of Serbia from the nineties and the German economy reduced its interest in investments in Serbia following Djindjic's assassination. We do hope, however, that these are only temporary setbacks. What are the main symptoms of this stagnation? We recognize them in our daily activities. The interest to invest here has dropped significantly, but on the other hand the interest to find suppliers or subcontractors in Serbia has grown recently.

Serbia currently imports "intelligent products", and exports "foolish" products such as agricultural goods and raw materials What are your memories of Djindjic? I met him on several occasions. He directed all of his energy towards the future and his presence on the political scene was inspirational. Djindjic gave the political process in Serbia a strong thrust towards the future. What is your opinion of the Sartid case and what effect did it have on co-operation between the two economies? We are carefully monitoring the ongoing events related to this case and we are particularly interested in the conclusions of the Serbian AntiCorruption Council. German Chancellor Gerhardt Schroeder visited Serbia last year. What, in your view, was the impact of such a visit on economic relations? Schroeder's visit is proof that we are prepared to rebuild our relations on a vision of the future and not on individual cases of disagreement or the past. The areas of co-operation are clearly defined and they are being tended to by the newly established bilateral economic council: Infrastructure, traffic, energy and tourism are all at the forefront.

Investors are still affected by the lingering image of Serbia What can Serbia export to Germany? I have already mentioned the imbalance between imports and exports. Serbia currently imports "intelligent products", and exports "foolish" products such as agricultural goods and raw materials. This, however, is not the true potential of your country, since we know it is capable of attaining a higher level of technology. The goal should be to return to the level that was achieved in the late 1980's. We were expecting a visit by German Minister of Economy Wolfgang Klement, is that not so?

Interview

It has been exactly a year since Djindjic's assassination. What was his role in relations between Serbia and Germany? Djindjic was well known and respected in Germany but this does not mean that co-operation was always smooth back then. Let me remind you of the Sartid case in 2002.

Biography Martin Knapp was born in Munster (Germany). After his studies in philology and history he worked for the press office of the Greek government in Athens. Subsequently he joint the bilateral Hellenic-German Chamber of Industry and Commerce as the head of its Thessaloniki branch office. He continued to represent the German chambers network in Macedonia and, for the last few years, in Belgrade. His wife is Greek. CorD | April 2004

Interview

Economy has as much to do with psychology as it does with money

Interview

The visit had been planned for this month during his visit to the Balkans. However, the new government has only recently taken over office and should be given more time to settle in. You mentioned earlier that the German economy was cautious. Does the reason for such caution lie in the economic recession in Germany? No, because a recession would have the opposite effect, resulting in the shifting of capital to locations where production costs are lower. If that were the only parameter, we would be witnessing a great deal more German investment in Serbia. You mentioned that Serbia had previously attained a higher level of industrialisation than is presently the case. We are currently, however, witnessing a trend to de-industrialise, a trend that is changing the economic base of the country?

You cannot, unfortunately, just copy strategies or solutions that have been implemented elsewhere

The base is still there. It has not been lost. It is made up of people who have been trained to work in a certain level of industry. The economy needs more liquid capital to bridge this gap of the socalled "lost decade". De-industrialisation is a trend that hits all transitional countries where industrial giants are downsized so as to meet market demands. This is always a painful process. Unemployment rates rise and social unrest breaks out within the labour community, but this is not symptomatic of the Serbian economy alone. It is the government's difficult role to manage this process and transform it into dynamic development.

CorD | April 2004

What strategies can be applied to prevent this process of de-industrialisation? You cannot, unfortunately, just copy strategies or solutions that have been implemented elsewhere. Nevertheless, one should analyse why the Czech Republic, Hungary and Slovenia achieved successful transitions and how they succeeded in building stable economies. It was not all rosy in these cases either. Hungary had serious problems right through to the mid-nineties. They did receive a great deal of investment, but they also managed to implement reforms. Does our heavy industry - the metal or mechanical industry and mining provoke any interest in Germany? As I said before, there is a certain interest in potential suppliers and sub-contractors from Serbia. The cataloguing of Serbian companies capable to play the role of suppliers of the German industry is going on. We place our hope in this project. The resources come from the German development aid. Germany has also experienced the transitional process in the former German Democratic Republic. Economy has as much to do with psychology as it does with money. Firstly, capital has to feel safe and the criterion for safety is political stability. Investors will also base their judgement on the image a country shows to the world. If the media focuses on sensationalist news that calls certain conditions in the economic environment into question, you can count on investors remaining cautious. When you add to this news of conflicts in the region, then the result is a negative atmosphere for investment.â&#x20AC;˘

Bank Privatisation in Serbia

First Tenders This Summer The new Serbian Minister of Finance Mr. Mladjan Dinkic, says he will speed up the privatisation of banks under majority state ownership. The Central Bank of Serbia expects the state to take over debt claims from public enterprises and facilitate the sale of banks

By Sofija Boskov, Photo Dragan Milosevic

ontrary to promises made by the authorities and the expectations of international institutions, such as the IMF and the World Bank, the state has retained majority ownership, or a large chunk of shares, in almost a third of Serbian banks. In these banks, the accounts payable to foreign currency depositors and creditors from the Paris and London Club were transformed into state-owned shares in autumn 2002. However, the state did not deliver on its legal obligations to offer these shares for sale in the ensuing 6-month period. The state justified this transfer of ownership as a temporary measure, aimed at clearing the balance sheets and making the banks more attractive to foreign investors, and also pledged to pay back the debt to foreign currency depositors and foreign creditors. Since then, deadlines have been broken and the whole process has not budged a square inch. The only concrete measure taken was the decision by former Central Bank Governor, Kori Udovicki to declare bankruptcy at the Bank of Bor, after attempts by the state to rehabilitate it proved futile. Instead of being privatised, the bank will be liquidated, which confirms the forecasts of some economists who

Since the Central Bank stopped issuing green-field licences in autumn 2002, the purchase of local banks has been the only entry ticket for foreign banks into the Serbian financial market claimed that the failure to meet deadlines was not surprising, and that the banks taken over by the state would never be privatised. The banks listed for sale by the previous Serbian government through international tenders were, in the first instance, Jubanka (Belgrade), The Bank of Novi Sad (Novosadska Banka) and Kontinental Bank (Novi Sad). The Bank of Nis (Niska Banka), previously amalgamated with the Bank of Prokuplje and the Bank of Vranje, was added to the list later on. And by virtue of debt conversion, the state also acquired majority ownership of: the Serbian Regional Bank (Belgrade); the

CorD | April 2004

Bank of Vojvodina and Panonska Bank (Novi Sad); the Commercial Bank of Pancevo; the Bank of Bor, the Bank of Pirot, Credy Bank (Kragujevac); and a large minority package in the Bank of Cacak, the Commercial Bank (Belgrade), Agrobank and Capital Bank (Belgrade). The Central Bank later revoked the licence of Capital Bank. Prior to these transfers of ownership, the state also had shares in the Serbian Bank (former Ju garant Bank), the Yugoslav Bank (former JUBMES), the Postal Savings Bank and the National Savings Bank. Although state-ownership has been reduced in the Commercial Bank and the National Savings Bank after recapitalisation, the state still controls over half of the banking sector. If everything had gone according to plan, the state would have offered its shares to private investors a year ago. However, since the Central Bank stopped issuing green-field licences in autumn 2002, the purchase of local banks has been the only entry ticket for foreign banks into the Serbian financial market. Accordingly, the German LHB bank acquired Prva Preduzetnicka Banka, while Volks Bank bought the majority ownership package in Trust Bank from Vuk Hamovic and several other shareholders. Mladjan Dinkic, the new Serbian Minister of Finance, believes that green-field investments are pointless in the banking sector and has argued that the potential in banks under majority state ownership should be used to attract foreign investment. Right after being appointed Minister of Finance Dinkic told CorD magazine he would definitely speed up the privatization of banks under majority state ownership. He stated: "We plan to appoint the new Council of the Agency for Bank Recovery as soon as possible, and

make an assessment of how much has been done so far to prepare the first group of banks for privatization. I think it would be realistic to say that the first tenders for privatization will be called this summer. They are a top priority in the domain of finance." Dinkic advocated faster privatization of the banking sector during his mandate as Central Bank Governor and will now be directly in charge of the process. He will most certainly be able to count on

Halfway through 2003, potential buyers included Uni Kredito (Italy), OTP (Hungary), Nova Ljubljanska (Slovenia), HVB (Austria-Germany) and several other European banks

Privatisation

The key items in the balance sheets will have to be checked again

the support of the newly appointed management team at the Central Bank, since they are also keen to speed up the process. In this respect, Central Bank experts feel they should privatise the quasi-state owned banks immediately and sell everything that can be sold instead of trying to restructure them first. The proposed strategy would tackle the issue of receivables from public and state-owned companies by restructuring and privatizing them after the banks are sold. The top management of the Central Bank also believes that ridding the banking sector of these financial burdens will make it more attractive for foreign investment. Experts from BNP Parisbas, entrusted with an advisory role in the reforms of the Serbian banking sector and financed by the World Bank, recently informed the Ministry of Finance that certain foreign banks have shown interest in acquiring Novosadska Banka, Kontinental Banka and Jubanka, despite the political instability in Serbia. Halfway through 2003, they included Uni Kredito (Italy), OTP (Hungary), Nova Ljubljanska (Slovenia), HVB (Austria-Germany) and several other European banks. However, CorD | April 2004

Privatisation

Foreign investors should not be allowed to purchase more than 20% of shares

no one has yet shown interest in the Bank of Nis (Niska Banka), since the decision to privatise it came later and there was no time to inquire about potential investors. Whether they will actually apply after the tenders are called remains to be seen. Economist Milan Kovacevic has warned that preparing banks for privatization is a very complicated procedure, as it includes resolving numerous financial problems and obstacles. Other financial experts also point out that the key items in the balance sheets will have to be checked again, since precise data on the balance of assets has yet to be determined, and until then potential investors cannot know what exactly has been put up for sale. However, everyone agrees that the success of the privatization largely depends on the selection of banks and the price tag. Financial experts highlight the case of Montenegrobanka, sold by the Montenegrin government to Nova Ljubljanska Bank for 40 million euros, although allegedly the original balance of assets prior to clearance was fifteen to twenty times greater than this. These experts expect a similar pattern of proceedings in Serbia accompanied by heated public debates. It is not easy to explain to the public why a bank was sold for tens of millions when the nominal balance of assets on paper was 200-300 million. This is why the balance sheets have to be recalculated to provide a realistic value, or there will always be doubts that the privatization was carried out illegally, and that some one got away with a fat commission. Prime Minister Vojislav Kostunica's Cabinet will have to decide before starting the privatisation process whether the smaller, mainly regional banks, will merge with each other, or be offered for sale to the bigger banks awaiting foreign investment. Aside from failing to meet the census of 10 million euros in cash, the minor banks have slim hopes of attracting the interest of potential buyers. In terms of this, the most serious contenders for merger are Pirotska Banka, The Serbian Regional Bank and Credy Banka, since, on the list of asset value, they were respectively ranked 39th, 40th and 48th (last) in 2003.

CorD | April 2004

The privatisation of banks was pushed out of the limelight midway through 2003, after the political crisis. In the same period, the new Central Bank Law was passed, and, in co-operation with the Ministry of Finance, the Agency for Deposit Insurance, Recovery, Bankruptcy and Liquidation of Banks was tasked with facilitating bank privatisation. However, a political clash between the Democratic Party and G17 Plus ended with the expulsion of "Dinkic's people" headed by Executive Director, Vesna Dzinic; Head of the Agency Council, Miroljub Labus; and Council Member, Radovan Jelasic. The Director's post was then filled by Nemanja Kolesar, who was the chief of Prime Minister Zoran

Prime Minister Vojislav Kostunica's Cabinet will have to decide before starting the privatisation process whether the smaller, mainly regional banks, will merge with each other, or be offered for sale to the bigger banks awaiting foreign investment Zivkovic's Cabinet, but the Council convened only once during his mandate. Kolesar was later removed from the post after allegations by G17 Plus that he was involved in money laundering. As Lidija Perovic has filled the post of Acting Director since the summer of 2003, there is no doubt that the government and the Central Bank will re-elect the Council and appoint a new director to the Agency. During his mandate as Central Bank Governor, Dinkic advocated the idea that foreign investors should not be allowed to purchase more than 20% of shares in the Bank of Vojvodina and the Commercial Bank while the rest would be made available to local private capital. With Dinkic and Jelasic's return to key positions in the Serbian banking system, the chances are that after restructuring the Bank of Vojvodina (Vojvodjanska Banka) will be sold off last. â&#x20AC;˘

Henkel Merima

Displeased with the Government Henkel has already invested 30 million euros into Krusevac-based Merima, but profit is still nowhere in sight. Last year ended with serious losses. The new management blames the Serbian government, the local authorities and the previous company leadership for not investing enough in marketing activities By Sijka Pistolova

ienna-based Henkel CEE acquired Merima from Krusevac in 2002 and became the owner of facilities for producing soaps, cosmetics, homecare products and industrial detergents. Merima is the leading producer of hygiene products and cosmetics in Serbia. The company plans to expand the production capacities of Merima to serve 55 million consumers in the region. However, the management warns that Merima continues to spend more than it makes. Henkel-Merima's net sales in 2003 reached 36.9 million euros, while investment in the company totalled 13 million euros. A sum of 7.5 million euros was invested in production capacities and 5.5 million into a safety net program for redundant staff. The total output in all production facilities in 2003 was 38,854, falling short of the 40,760 tons produced in 2002. "Sales are keeping up with production output. Major investments were made in those facilities producing toiletries, homecare products and detergents. In 2003, we decided to change the function of the fatty acids factory, since it had been working at only 30% of its production capacity. The factory was opened in 1965 and it was high time the entire facili-

The government succeeded in attracting foreign competitors to the domestic market by reducing customs taxes to zero, while countries from the region have set steep customs rates for our chemical products ty was overhauled. Due to current trends in Europe regarding the production and application of fatty acids, we have decided to put this production facility to a different use. We have removed all existing equipment from the factory and have completed the adaptation of the building. Production is due to start around May 15th, 2003", Henkel-Merima's Managing Director Gradimir Milosevic told us.

CorD | April 2004

Mr. Peter Simon Chairman of the Managing Board and Deputy Managing Director Peter Simon explained that the management's activities have thus far focused on creating a company that will be strong in the future. The process, however, requires a great number of changes, such as creating successful trademarks, a better sales network and improving marketing activities. "We have to overcome certain obstacles in order to play a leading role in the market", says Simon. "We have powerful brands at local level, but they are virtually unknown to international consumers". "Our rivals have done a tremendous job in raising their profile during the past two years but we have failed to follow suit. We also had a weak sales

A training program for the work force is also underway

The idea was to turn Merima into the main producer of chemical products. Unfortunately, the stipulations of the free trade agreement with Bulgaria and Romania are not in our favour producer of chemical goods in the region, primarily in reducing production costs, opening new production lines and expanding production capacities", Peter Simon explained. The new management blames the Serbian government and local authorities for negative results in 2003. "The government succeeded in attracting foreign competitors to the domestic market by reducing customs taxes to zero, while countries from the region have set steep customs rates for our chemical products. We have managed to procure negotiations aimed at improve trading terms with Romania regarding export and I am appealing to the government to assist the only domestic producer of detergents", Peter Simon said. He also made a public appeal to local authorities to show more understanding of the company's needs and refrain from slowing down its activities with too much bureaucratic red tape when issuing permits for constructing new buildings or refitting the infrastructure in the production complexes. "We avoid commenting on political issues, but we must draw attention to the fact that Henkel was the second company to take the risk of investing in Serbia. Today we are being penalized with taxes and insurance fees, while the smaller investors have been let off the hook. I do not think these are good conditions for further investment', said Chairman of Henkel-Merima's Managing Board Peter Simon.

The company also plans to modernize their facilities by opening new production lines and retraining the work force, as well as launching a new bottleproducing plant. After recently purchasing additional Merima shares from the company's employees, Henkel now owns 86.43% of the capital. Henkel representatives said that the company had incurred losses after providing severance pay for redundant staff leaving the company. These are investments in the future of the company and a stipulation in the sales contract, they explained. Henkel has also invested in a new information system. The entire factory complex has been dug over and a new system of optical cables has been installed. Furthermore, the company has organized a number of presentations featuring old and new products in order to maintain pace and retain its position on the market. "We are working on environmental safety as well, with emphasis on reducing air pollution", the management said. A training program for the work force is also underway. "We are currently bringing company organisation into line with with Henkel's and have, accordingly, introduced new business sectors. Special attention will be paid to safety at work, which also includes training employees in that area", stressed Gradimir Milosevic. President of Henkel for Central Eastern Europe Friedrich Stara puts the company's one billion euro net profit in 2003 down to the integration of Russia into the region. "Our strategy in acquiring Merima was to attain a dominant position in the local market by employing the existing infrastructure and work force. Another pillar of our strategy is export to foreign markets. Merima is the only production location in the region with a market that serves 55 million people. From the very start, the idea was to turn Merima into the main producer of chemical products. Unfortunately, the stipulations of the free trade agreement with Bulgaria and Romania are not in our favour", concluded Stara.â&#x20AC;˘

Opinions

network compared to the competition. What have we achieved? We have started to advertise and found reliable sales partners. There is still a lot to be done for Henkel-Merima to become the leading

CorD | April 2004

Interview H.E. Mrs. Yaffa Ben-Ari, Ambassador of the State of Israel

Self-confidence key to transition The 56th anniversary of the re-establishment of the State of Israel is in April this year. The anniversary will be marked in Belgrade by a number of events, including, on April 21st, a gala concert by the famous Israeli singer David d'Or, together with the Belgrade Philharmonic Orchestra at the Sava Centre. Summing up, on the anniversary of the State of Israel, the Ambassador of Israel Mrs. Yaffa Ben-Ari stated that the 56 years of modern Israel's existence could be divided into two stages. By Dragan Bisenic, Photo Danka Ninkovic

come in the rest of the world and it was almost completely isolated. In such a situation, one has to be capable of finding innovative solutions for creating industry, agriculture, infrastructure, electrical system, water etc. After two decades and the war in 1973, the fight for peace began. This year, on March 26th, we will celebrate the 25th anniversary of the peace agreement with Egypt. This period was characterized by a permanent struggle for lasting peace. We have become conscious of the advantages of friendly relations with our neighbours. Today, we are struggling to preserve the values of our society and our way of life. Terrorism is not

Terrorism is a global threat. Very often, hundreds or thousands of people are killed because of this or that political goal only the killing of innocent people; it is a psychological war that aims to make you accept something that you cannot accept, by means of arms or violence. It is contrary to all the values of democracy.

he first stage was the fight for survival and the consolidation of the state and the second included development and progress, while struggling for peace. The creation of the state was necessary for the Jewish people to survive as a nation and to articulate their political identity. That state had to fulfill the needs of peoples who came from all over the world as refugees. People from 72 different cultures came to live in Israel. In order to build a solid society out of that `melting pot` we needed a spirit of survival, innovation and creativity. In order to survive that small and weak community had to be spiritually strong, and had to find original solutions, because it lacked land and resources. At one time, the country was not wel-

CorD | April 2004

Terrorism is a burning issue with which Israel has had long experience? Terrorism is multi-dimensional. There is no reliable formula for fighting against it. If you have milk, sugar and coffee you will make coffee; that is the formula for successful coffee. There is no such formula when terrorism is in question. Struggling against terrorism is a necessity in the fight for the survival of Western civilization. Terrorism is a global threat. Hundreds or thousands of people are killed because of this or that political goal. Terrorism cannot be accepted as the instrument to realize any goal. In the first place, terrorism is the premeditated murder of innocent people.

Nobody has the right to endanger the lives of others. The multi-dimensional struggle with terrorism starts with the operational methods of prevention, and, the next phase, arresting terrorists and putting them on trial. The goal of punishment is not punishment itself but education, by which people are averted from terrorism. The main principle of the codex of behavior should be "Thou shall not kill". Nobody has the right to endanger the lives of others. The third dimension of the struggle is cutting off the influx of money to terrorists. The political dimension comprises the notion that all of us are joined

State of mind is very important for countries in transition; you have to believe in your goals and be convinced that you can do what it takes. You cannot sleep and wait for someone else to do the job together in the fight against terrorism, which involves concentrated diplomatic efforts to identify the countries that support peace, as opposed to those countries that support terrorism. The latter must be isolated and sanctioned. These countries should not be accepted in the club of nations. If you respect democratic values then you can't support terrorism. In other words, you can't be in the `club` and work against its values. The possibility of terrorists, at some point, obtaining weapons of mass destruction cannot be disregarded. That would have a mega influence on the safety of the entire world, not only the world order. The last dimension of struggle is the most important; it is conscience. People have to be educated to be tolerant instead of hateful, and accept their fellow man whose values

Interview

are different, but who also has the right to exist. Palestinians are being taught to hate Israelis. The Palestinian "culture of hatred" has been using media, schools and mosques. Religious preaching is being outrageously abused to incite hatred and violence. When you hate others, at the end you will have the others hate you; that is the most tragic for those who are taught to hate.

Among the controversial issues related to the fight against terrorism is Israel's construction of the fence that divides certain territories. For the past ten years we have been hoping for peace and we got war. It was not an intifada, it was an organized Palestinian terror campaign, the goal of which was the eradication of Israel, the spreading of hatred against Jews or, as has been stated by the leaders of Hamas, the expulsion of Jews back to Europe. In 1993 in Oslo, we believed that we were about to achieve a peaceful agreement on co-existence, but we have been faced with more terror ever since. It is contrary to the interests of the Palestinians hoping to achieve Palestinian autonomy and independent statehood. Unfortunately, we have no partners for reaching peace at the moment, but Israel is ready and willing to compromise. In the meantime, we cannot rely on empty promises. As a state, we have an obligation to protect the lives of our citizens and we will do everything we can in our fight against terror. One of the operational measures is the anti-terrorist fence. If my neighbour keeps attacking me, I will build a barrier between us to protect myself. Most of the suicide bombers come from the region where the fence has not been built, and almost none of them are from the Gaza strip. Nobody has the moral right to tell us that we do not have the right to protect ourselves and stay alive. More than 900 innocent Israelis were murdered in attacks carried out by Palestinian terrorists since late December 2000. However, as a cautious optimist, I still believe that peace and peaceful co-existence between Israelis and Palestinians is possible. CorD | April 2004

Interview

Interview How do you evaluate the relationship between Israel and Serbia and Montenegro? I was deeply honoured and happy when I was chosen to come here. I did not have much knowledge about this region. I have been a diplomat for 23 years and had been in almost every part of the world. This is a truly beautiful country with very exciting people. This is the first country where I have discovered so many thrilling similarities with my own country, one that officially belongs to a different region and different culture. The recent history of both countries contains the experience of isolation and condemnation by the outside world, with the feeling that that was not justified. I have discovered numerous similarities with respect to culture and mentality. Sometimes, I say that in Serbia there are "7 million Israelis who speak Serbian", or if you will in Israel "7 million Serbs who speak Hebrew". I was lucky to come to your country when changes took place and to try to make my modest contribution to them. Israel and Serbia were separated for a long time after the break in diplomatic relations in 1967. Although diplomatic relations were re-established in 1992, the Israeli Embassy reopened only in 1997 and full ambassadorial level reached in 2000. I came here at the beginning of the new era between our countries.

You mention your contribution to change, in which fields is that demonstrated? The friendship between Serbs and Jews was established from the beginning of Jewish presence in the region. The special bond was created during World War II. We Jews have a clear memory of who was on our side in the dark times of the Holocaust. Now, that friendship between our two peoples has to be consolidated in good economic contacts and interests that benefit both communities. When I came to Belgrade in the beginning of 2003, I found 16 companies operating here, and now there are at least 67 Israeli companies that are active in your country. They have invested in construction, agriculture, hi-tech and telecommunications, and thefood industry. A particularly important issue, related to the relationship between Serbia and Israel, is the subject of a direct flight from Belgrade to Tel Aviv. The increase in commercial relations has directly increased the number of passengers who have to travel via a third country. And, with a proper direct link, there is also the potential for tourism to have a great impact. That is only the beginning though, I believe that much will depend on the course of development in your country, and I base that belief on the experience of Israel. What is that experience? Israel itself has managed to become a modern, highly developed country out of a country of new immigrants. From a small country without roads which imported food, it has developed into a country exporting food, and the GDP increased some 10% annually in the second decade of its existence. It had a socialist beginning, similar to your development, that turned into a liberal economy through an extensive privatization process. Due to lack of resources, we had to encourage foreign investors to come to our country. The government supported foreign investments. The

CorD | April 2004

process of Israel's prosperity was based on different things, but it would not have been possible without the creation of an appropriate atmosphere, that encouraged foreign investors to come to Israel, and supported new ideas and discoveries. Do not forget

People have to be educated to be tolerant instead of hateful and accept their fellow man whose values are different, but who also has the right to exist that inflation in Israel in the early eighties amounted to 400% and in the early nineties less than 4%. That was a fantastic achievement! Early in the nineties we had to absorb 1.5 million new immigrants from the former Soviet Union. That was an incredible influx of people who needed jobs and houses, but many of them were very talented and capable. The arrival of that many people resulted in a population increase of almost 25 %, and considerably affected the devel-

I have discovered so many thrilling similarities with my own country opment of our society. Looking back at the nineties, we can refer to that period as the Israeli Miracle. How can your experience be applied in Serbia? State of mind is very important for countries in transition; you have to believe in your goals and be convinced that you can do what it takes. You cannot sleep and wait for someone else to do the job. Your country is at a turning point in its history. The relations between politics and the economy are very important; political stability and a democratic system, an efficient judiciary and a market-based economy have to be established. Furthermore, the economy needs to have a middle class base. Foreign investments are needed in infrastructure, roads, up-to-date communication equipment etc. We succeeded because we had faith in ourselves - we had no other choice. One has to remember that if you do not do it, nobody will do it for you. If you believe in yourself, people will believe in you and follow you.â&#x20AC;˘

Club of Madrid Mr. Oliver McTernan, Club of Madrid

Move on security issues I would say a priority is to get Serbia and Montenegro into the Partnership for Peace and into NATO, because then you can look at the Kosovo issue in a more secure way. If Serbia were sitting at the same side of the table and you were looking at a common problem and how to solve it, I think the situation would be much better than if you were sitting on the opposite side and felt that we held differing points of view. By Nina Nicovic, Photo Danka Ninkovic

liver McTernan is the senior advisor of the Club of Madrid, an organization that has been gathering the experiences of former heads of state, in order to promote and help democratic reforms in transitional countries. In October 2002, at the formal request of Foreign Minister Mr. Goran Svilanovic, the club organized several conferences and workshops to help create civilian control over the police, army and intelligence services in Serbia and Montenegro. As someone who has been involved in East-West dialogue for over twenty years, and is in charge of the Club's branch in Belgrade, we talked to him about the greatest obstacles to faster reform in key government institutions, and those concerning the reintegration of Serbia and Montenegro into the international community.

Serbia and Montenegro were given a clean bill of health by investors that said, "This is a secure situation. I'm going to invest more". Considering that your main mission here is to help the Government to focus on the reforms necessary to reintegrate Serbia and Montenegro into the international community, how much good will really exists between local leaders and the counsellors of the Club of Madrid? We only encountered openness and a genuine desire to work with us. I mean the Club would not of come to Serbia and Montenegro without having been invited. It didn't come here with it's own agenda. The agenda was really set by the people we consulted, and was seen at the time as the priorities of the Government here. Items included integra-

CorD | April 2004

Club of Madrid

tion into the PFP and eventually into the European Community, as the best way to help with military reformy and looking at civilian democratic control of the military. What is your view of the problem of Kosovo and Metohija, and how do you think that the counselling and experience of the members of Club of Madrid could help with this issue that has been undermining national security in Serbia and Montenegro? I would look at it another way. I would say the priority is getting Serbia and Montenegro into the Partnership for Peace and into NATO, because then you could look at the Kosovo issue in a more secure way. If Serbia were sitting at the same side of the table and you were looking at a common problem and how to solve it, I think the situation would be much better then if you were sitting on the opposite side of the table and felt that we held differing points of view. I really do think that the Kosovo problem is a complicated one, and the Club of Madrid does not have a policy on it, because its task is not to have particular policies on issues such as that. It is, I think, to facilitate the dialogue that can find an acceptable and durable solution for all sides involved in the Kosovo issue. And I have to say that that can only come through a dialogue, information and I think integration. Do you think that joining some EuroAtlantic organization such as NATO will really solve the problems in the whole region, and particularly those of Serbia and Montenegro? Acceptance into the Partnership for Peace and acceptance into NATO, and eventually into the European Union, is 'a bill of health', you might say. Serbia and Montenegro were given a clean bill of health by investors that said, "This is a secure situation. I'm going to invest more." I come from the background of someone, who because I was involved in East-West dialogue for many years, was very skeptical about NATO enlargement into central and eastern Europe. I did not see it at the time as the right move, and thought it would heighten East-West tensions. Looking back, I have to say, I think I was wrong, because now I would see this as being a framework in which European nations could help resolve issues. And a good example of that is that we have two countries of NATO - Turkey and Greece that have many unresolved issues, but in recent years we haven't had a war between them or open conflict, simply because they sit at the same table. And sometimes we can sit and look at issues together, and for me that would be an example of how in a particular situation integration can help to look at things more objectively and to seek solutions in a step-by-step way.

How can integration into NATO be implemented here, considering its really low popularity amongst the citizens of Serbia and Montenegro after the bombing in 1999, and how can the

We have two countries in NATO -Turkey and Greece that have many unresolved issues, but in recent times we haven't had war between them or open conflict, simply because they sit at the same table. Government explain that this has to happen eventually? I think that is a very real issue and I think that organisations here, like the Atlantic Council, I hear, are doing very good work, in going around the country and engaging people at different levels to help them understand the issue. There needs to be much more dialogue in the country, and I think, perhaps, and if one were slightly critical of the Governments in the last two or three years, maybe they haven't given enough attention to communicating the message to the people. Not to just sort of forget what happened, the conflict that is, or anything like that, but CorD | April 2004

Interview

Members of Club de Madrid addressing how do we progress economically and how do we progress in all sorts of ways. For exsample, socially, how do we open up the country and how do we give young people opportunities of travel and so forth. You know these are the issues, and that is not to say that you have to be part of the military alliance. But as I understand, certainly, the leadership of the army would welcome participation in the Partnership for Peace and NATO, because they see it as an opportunity for creating security and so forth. If that message could get across at every level it would help people to understand that this is an important step.

gration, part of all these issues and why are they so important is because they are not just problems in Serbia and Montenegro. If it isn't right here it has a knock on effect for the rest of Europe, because if you have a country that is outside the communication network, of course, it will attract drug and people traffickers. It's in Europe's interest, I think, to see reform going on here, and, of course, it is in the interest of the individual citizens to make sure that human and civil rights are protected in law, and that no organization can behave outside the law.

What do you think are the concrete actions the new Government needs to take, in order to Do you think that this society is ready for restore the faith of the people in the new political proper civilian control of the army? leadership? I think there are two parts to that question. The All these views are my own personal views and first part is, Is the army ready for, I would again in no way representative of any policy of the Club of stress, democratic civilian control? And that of Madrid, or anyone else, just someone that has been course needs changes. I think that the willingness interested in the region for many years. I think the is there, it's the know how and working through new Government has an enormous challenge. the implications of it that needs to be done. And the other thing What I see as a failure of past governments is the is politicians- are they ready to engage failure to communicate at that level? So that you don't get It is in the interest of individual citizens to make its message and achievesure that human and civil rights are protected ments. No country that I people thinking that civilian control is day-to-day management, but it's an know of was as tested in in law and that no organization can behave engagement with the military, where recent years as Serbia outside the law. the military see that they are essenand Montenegro with the tially responsible to the politicians. That they don't have the assassination of Mr.Djindjic.This country was testpower to act independently, that they are part of the state, and ed at that moment and I thought it was not found that there is accountability and responsibility and so forth. wanting. But the challenge I would see for the new government now is to try to communicate to the Do you think there should be a stronger criminal police as people that all of these things are interconnected. a counter balance to the intelligence service, as in other That you have got to move on security issues, and developed countries, for instance like the FBI and CIA, or you have got to move in order to create the sort of Scotland Yard and MI6? economic growth and prosperity that is desired. So, I think that in every country in transition you find the need to communication I think, engagement with people, reform the security sector in its entirety. That's the military, the the importance of face-to-face encounters with peosecurity services as you say intelligence - counter intelligence, ple, trying to understand what people want, trying and the civil police that look after day to day order and fight to respond to the ordinary needs of the people, crime and corruption. Now, naturally that needs spotlighting, these things are very important for every country. and my understanding so far is that little attention has been given When politicians lose touch with ordinary people to that, and there is little happening, so maybe that is an area you have serious problems, and I don't think that where the international community can help. For me part of intethis country is unique in that.â&#x20AC;˘

CorD | April 2004

MOBTEL COMPETITION The winners of Mobtel's Mercedes competition for users of the 063 mobile network were drawn on Monday, March 8th. The competition ran from 7th February until 7th March and participants were asked to send their reply to

The first prize, an A class silver Mercedes was won by eighteen-yearold Slavko Kosanic from Novi Banovci. When we tried to tell Slavko that he had won the Mercedes he did not believe us at all. "It was only when I saw my number on BK television that I realized what had happened", said Slavko, who by the way, still does not have a driving licence, and has never learned to drive. Now he will have an ideal reason to start learning! The winners of other awards were also drawn. Five people won a Siemens MC 60 mobile telephone, ten people were the winners of Comtrade computers, and 5,000 received Zdravko Colic's latest CD. We would like to congratulate all the winners and announce that Mobtel will soon be running more fun competitions with valuable prices.â&#x20AC;˘

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CorD | April 2004

Eurosalon

EVERYTHING FOR H OME A

t the end of February one more hypermarket opened in Belgrade, though in contrast to all the existing ones, Eurosalon's HOME MARKET became the first megamarket in Serbia not just selling food and clothing, but 20,000 items intended for the home. "Under the slogan 'Everything for the Home,' Eurosalon wanted to offer its customers the widest range of home supplies available in one place and at favourable prices," says Dr. Branislav Stojakovic, Eurosalon General Manager. In his view, "It is not unimportant that young married couples can find everything they need in one place, without having to waste time in different shops. Besides home furniture, built-in and non-built-in household appliances, Eurosalon also offers home textiles and carpets, porcelain, glassware, cutlery, decorative goods, toys, heating equipment, and air-conditioners. As well as electrical and lighting equipment, the hypermarket has tools and all the other items needed for household use."

CorD | April 2004

By Sonja Lukic, Photo Danka Ninkovic

Eurosalon enables its customers to choose furniture for their homes, from its extensive range of designs, in fabrics and colours of their choice, and especially kitchens. That way they believe its customers take part in defining the price they wish to pay, and those who know exactly what they want can simply use the self-service alternative. However, for those who are indecisive and anyone who would like to have a word with an expert, there is the option to meet with an architect or engineer, depending on the type of purchase being made.

Advertorial More than six million euros were invested in this business venture, and Eurosalon realized it in cooperation with the Italian "Home Market." Besides their own products, there are also the products of some 200 other producers on offer. The megamarket was modeled on similar world business centres, but adapted and built to meet local conditions by the Eurosalon project team. Thanks to this structure the approach to Belgrade Fair and the whole area between the Mostar Loop and Belgrade Fair has got a new, modern architectural appearance in keeping with the metropolis. The Eurosalon management team is convinced this enterprise will encourage other investors to invest in capital properties. "Adjusting to customer needs was our main idea and I think we have succeeded in achieving this; from the moment they enter our building to the final one when the purchase is being made. We have secured parking space in front of the business building, several cash registers in order to avoid queues and crowds, and most important, employees trained to help with advice and give precise information. We haven't forgotten our youngest clients either - we have constructed a play area where they can have fun while their parents can shop in the knowledge that their children are secure. On the ground floor there is a cafĂŠ, and I would say jokingly it's for men, so they can take a break, while their partners can stroll around and choose their purchases," explains Eurosalon General Manager. Instant credit is perhaps the most important new introduction in this venture - that is said to have everything from soup to nuts. Eurosalon and Home market have cooperated with two banks - Procredit Bank and Postanska Stedionica in order that customers will be able to secure credit on the spot. These banks have been asked to make the procedure as simple as possible and not to send purchasers away to return later with various certificates. The main document required will

Eurosalon has concluded agreements with several hundred firms to act as their exclusive representatives, authorized distributors or distributors and promote their products. Among these are Candy, Ariston, Phillips, LG, Whirlpool, Tefal, Rowenta, Moulinex, and many other well-known firms be the certificate of permanent employment, and that, together with an identity card, will enable customers to gain instant credit. Eurosalon has concluded agreements with several hundred firms to act as their exclusive representatives, authorized distributors or distributors to promote their products. Among these are Candy, Ariston, Phillips, LG, Whirlpool, Tefal, Rowenta, Moulinex, and many other well-known firms. The selling area is divided to grouped according to the purpose of the products and ensure that customers can easily find their way around and make their choices. On the ground floor there is an excellent selection of household wear - dishes, cutlery, porcelain, glassware, as well as toys. Next an area displaying electrical goods, including trademark TV sets, household appliances, HI-FI, PC equipment and various digital appliances. And finally on the same level there are textiles,

Eurosalon: Adjusting to the customersâ&#x20AC;&#x2122; needs carpets, and all manner of decorative goods. On the first floor, beside Eurosalon furniture, there is an extensive selection of imported furniture, mostly from Italy and Belgium. For its furniture, Eurosalon sources raw material from various Italian and German producers. The Eurosalon team assures their customers, regardless of whether the furniture is locally produced in co-operation, or imported, all items are subject to the highest stands of quality and design. Currently, there are some thirty different kitchens on display, as well as various bedroom combinations, sitting-room sets, and a gallery of chairs and armchairs. Eurosalon has also thought of the needs of the business community, and has a great choice of office furniture, cabinets, chest of drawers and chairs for office use. "Eurosalon enables its customers to choose furniture for their homes, from its extensive range of designs, in fabrics and colours of their choice, and especially kitchens. That way they believe its customers take part in defining the price they wish to pay, and those who know exactly what they want can simply use the selfservice alternative ", says Dr. Branislav Stojakovic. Adding, "however, for those who are indecisive and anyone who would like to have a word with an expert, there is the option to meet with an architect or engineer, depending on the type of purchase being made". It took the Eurosalon team a year and a half to complete the project, from the construction phase to the opening of such a large and well-stocked centre, with several local companies helping them. Despite their commitment, Eurosalon did not receive a positive response from all sectors, and are concerned at the lack of state support they received, with state institutions failing to understand the company's intentions. While banks complain good projects are lacking, they were unable to secure loans, and, in order to obtain the financing needed, the firm had to sell several exclusive business locations in the centre of Belgrade, and finally the department store in Kanarevo Brdo. Fortunately for the company everything has turned out as they wished and at this point for them that is the only thing that matters. They are confident the investment will be worthwhile, and more important that the city of Belgrade is worthy of such confidence.â&#x20AC;˘ CorD | April 2004

CII Group

Serbia is attractive Mrs Anna Nocon,

By Biljana Stepanovic

Executive Director CII Group

The first thing the new government should do is hire a world class branding agency that would help build Serbia's image abroad. Serbia must overcome the often negative perceptions that have been created by the foreign media.

nna Nocon is an executive director with the CII Group, an international top management consulting firm that specializes in operational restructuring and interim management. Do you think Serbia is attractive in terms of foreign investment or is it still thought of as a high-risk country? Serbia is attractive for foreign investors. A market with 11 million potential customers is simply too large for any investor to ignore, but aside from what they read in the press, foreign investors have little reliable data on which to base their expansion decisions. And, unfortunately for Serbia, the press coverage continues to focus on abnormalities, such as the recent series of failed elections or the incomplete legal framework. These events don't give the full

No wonder large (and usually conservative) foreign investors have stayed away from Serbia and prefer a wait-and-see approach to entering the market picture. The alternative source of independent information, international market research companies, doesn't exist yet. No wonder large (and usually conservative) foreign investors have stayed away from Serbia and prefer a wait-and-see approach to entering the market. CII Group doesn't agree with this approach, though. Our independent market research shows Serbia is much more attractive than the foreign press would have it. Which industries are the most interesting to foreign clients? We see five business areas worth targeting in countries, such as Serbia, which are restructuring and opening up. First, there are the products that are uneconomical to transport very far, such as beverages, glass or building materials. Local businesses will have a clear transport cost advantage over foreign ones in this respect. The second attractive area involves businesses that can quickly capture market share in globally consolidating market segments, such as retail banking or package tours. A third opportunity lies in communications and data, which generate high profits, but require extremely large upfront investments. Fourth, foreign investors should pay attention to industrial production where low cost feedstocks are available such as wood or clay. Finally, we recommend tak-

CorD | April 2004

The world's biggest consultancies still believe that investing in Serbia is risky and that a high level of corruption exists. Do you share this opinion? Entering Serbia is risky but such risk is inevitable in all newly liberalizing economies. Furthermore, it comes with payoffs that are much higher than those in stabilized economies. Again, much of the risk is inflated by foreign media. Looking at Serbia from a comfortable corporate office thousands of miles away is much more different than actually coming to this country and learning to live among the people. What should the new government do in order to attract foreign investors beside inacting new and necessary laws which the World Bank has already requested? The first thing the new government should do is hire a world class branding agency that would help build Serbia's image abroad. Serbia must overcome the often negative perceptions that have been created by the foreign media. The country must show its

new modern post-war face to the world. The second thing to do is build a strong government agency for attracting foreign investors. Such an agency should be authorized to deal with investors directly during each stage of the investment process, from initiating

Entering Serbia is risky but such risk is inevitable in all newly liberalizing economies. Furthermore, it comes with payoffs that are much higher than those in stabilized economies. Much of the risk is inflated by foreign media talks, to conducting negotiations, to signing contracts. In other words, it should be a one-stop-shoptype institution modeled on very successful agencies in the Czech Republic (Czechinvest) or Ireland (Industrial Development Agency Ireland).

CII Group

ing an in-depth look at service businesses, such as fast food, advertising agencies or local media. At present, services are underepresented in Serbia's economy, but they will drive its GDP growth in a few years, just as they did in all other emerging markets of Eastern and Central Europe.

What is CII Group's general standpoint when advising clients who are potentially interested in investing in Serbia? We encourage our clients to enter Serbia so they may benefit from the 'first mover' advantage. With the world's economy recovering from a recession, it is only a matter of one or two years before foreign investors stabilize their cash positions and start scanning unchartered terriories for new growth opportunities. Serbia will no doubt be on their radar screen by then. So while the window of opportunity for foreign investors is wide open now, it will close relatively quickly.â&#x20AC;˘

CorD | April 2004

The United States and Europe

Rivalries and Tensions USA and EU

Will they remain partners and allies or become bitter rivals?

Iraq; claiming that there was no clear cut proof that Saddam Hussein had weapons of mass destruction, or was, indeed, an imminent threat to anybody. he seeds of potential tension between the What ensued was an angry war of words among European Union and the US were planted with the Western partners. Secretary Rumsfeld issued his the fall of the Berlin wall in 1989. The security famous dictum on an old and new Europe, claiming mechanisms established through NATO structures that the positions of Paris and Berlin were out of date were dismantled, and questions were raised about the and irrelevant, and, Washington promised that while type of new system that would emerge. Prior to this, it would ignore Berlin's position, Paris would be the international system was founded on a fear of punished. Soviet expansionism, which fostered a great sense of The Iraq war, though a high point in the tensions solidarity in the West, and liberated from the fear of between the Western partners, was not the first examSoviet attack the countries of Western Europe started ple of differing opinions between the EU member work on forging a greater unity and a European idenstates and the US during the Administration of George tity. At Mastricht in 1992 the Common Foreign and W. Bush. Great rifts occurred when the US decided to Security Policy was established, with the clear aim of abandon the Kyoto protocol, combating climate making the European Union a more visible and change, on the premise that the norms of this internaimportant player on the international scene. Europe tional instrument would be detrimental to the US wanted to speak with one voice and desired that that economy. The Europeans were shocked by voice should be heard. Washington's position, convinced, as they were, that a The first challenge was the breakup of the former climate change convention was absolutely imperative Yugoslavia. The Europeans were divided and ineffecto prevent serious changes in global climate and their tive in meeting this challenge, and it was the US who, consequent grave reperin the end, came up with cussions. Soon after that, military solutions for the On the economic front there are tensions situations in Bosnia and between the euro and the dollar, with the dollar's the Bush administration decided to opt out of the Hercegovina and in Kosovo Metohija. Europe rapid fall in the last year creating a drastic decline treaty signed by President in the European economy's competitiveness. Clinton establishing the had no choice but to folInternational War Crimes low the American lead, Tribunal. The US then requested that non- NATO and became concerned that they were militarily and countries sign a special waiver exempting US troops politically inferior. from the possibility of being tried for war crimes out of The eruption of tensions in the Western camp US territory. On all these points the Europeans mainbetween Europe and the US culminated with the decitained a different position. sion of the US to intervene in Iraq. After the This, of course, put the countries of Eastern and September 11 terrorist attacks against the heart of Central Europe in a tight spot, as they were obliged American power and wealth, the US Administration to chose between Brussels and Washington, and developed a strategy of preemptive attack designed to knew that opting for one would incite the rancor of promote US power and security, and to prevent any the other. When a group of Eastern European states future terrorist tragedy. By declaring a war on terror, voiced support for Washington over the Iraq situathe US government declared the regime of Saddam tion, President Chiraq of France was quick to say Hussein in Iraq to be an imminent threat to global, that the leaders of these states had missed a wonderread US security, in particular, citing that Saddam was ful opportunity to shut up. When Romania decided developing weapons of mass destruction. to exempt US troops from the jurisdiction of the ICC, The US decision, supported especially by the Brussels stated that this would be detrimental to United Kingdom, to intervene in Iraq without the Romania's ambitions to join the EU by 2007. backing of the United Nations Security Council led to So how serious are the rivalries and tensions a serious crisis between Washington and its traditionbetween Europe and the US? The countries of Western al allies, France and Germany. Paris and Berlin, supEurope and the United States have, since the end of the ported by Moscow, and despite their approval for the Second World War, shared the same fundamental valUS war on terror, were stridently against the war with By Dragan Novakovic

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Welfare state is much more prevalent in Western Europe and healthcare is relatively inexpensive or free, while in the US many millions are without social security. Taxes in Europe are generally high, while in the US tax reduction is a perennial vote grabber. The Europeans are opponents of genetically modified foods, which are found increasingly in the US, and so on. All of these reasons lead to differing perspectives between Europe and America and produces different priorities and policies.

Opinions

ues. These include; a division between spiritual and temporal authority; the rule of law; pluralistic representative government and individual rights; as well as a shared Judeo-Christian culture, which make up the basic tenets of Western civilization. On that score nothing has changed. On the other hand, the big difference, after the end of the Cold War, explains American scholar Huntington, is that the US, as a global super power, has interests in every part of the world, and tends to promote these interests in every part of the world. Whereas regional powers like the EU, Russia and China have only regional interests. Huntington also believes that there is an ingrained difference in how Americans treat God and religion. He sees Americans as deeply religious, devoted to God and country, while the Europeans have a weak commitment to both. The US tends also to define issues in terms of good and evil, and this tendency has certainly reached a peak in the current administration. Consequently, the US administration speaks of the 'Axis of evil', while Europeans view such exclamations with a certain cynicism. On the economic front there are tensions between the euro and the dollar, with the dollar's rapid fall in the last year creating a drastic decline in the competitiveness of the European economy. Recently, the EU has introduced comprehensive sanctions against the US, due to the subsidies the US administration grants American companies. There are, of course, other important differences between the Europeans and the Americans. The

After a period of heightened tensions, the Western European powers, especially Germany and France, have found it in their interest to improve relations with Washington. The US faced with problems in Iraq has also decided to bury the hatchets. The recent meeting between Presidents Bush and Schroeder was quite amicable, and France has also cooperated with the US over the crisis in Haiti. Western European politicians tend to playdown the tensions with the US, saying that these are minor squabbles within the family, and that the Alliance remains firm and strong, as its shared fundamental values are indisputable. However, the seeds of tension between the two sides of the Atlantic have been planted and it will be interesting to follow their development.â&#x20AC;˘

Seeking a Competitive Edge

Market Wisdom Michael Fairbanks' theory of how to become more competitive has been put into practice in Serbia for the past twelve months with the help of the United States Agency for International Development. The leading international expert in this field asserts that producers, the state and civil society can boost national competitiveness and work on marketing solutions more easily when they work in clusters By Misa Brkic, By Dragan Milosevic

week spent at the Cologne International Furniture Fair (January 19th - 25th, 2003) was enough to secure lucrative deals for six Serbian companies in the furniture and carpentry business. Fifteen clients from Germany, South Korea, Belgium, Italy, Austria, Denmark, Ireland and other countries did not any waste time in ordering the first shipments from the Serbian companies exhibiting there - Eurosalon, KopaonikKursumlija, Modul, Trifunovic, Saga and Sava. Aside from purchasing their products, international clients are also offering other forms of co-operation such as shifting their own production to facili-

Trade in Serbia is currently based on exporting simple goods produced on the basis of cheap labour, fertile soil, state subsidies and the sun ties in Serbia and making investments which would upgrade current production capacities. The bouquet of business offers may not be a novelty, but the fact that the six Serbian companies made a joint appearance at the Furniture Fair in Cologne is indeed something new. The companies spent six months making detailed preparations for the fair. They pooled their financial and technical assets, designed and erected a joint presentation stand and provided information on a shared Internet site. The goal was to present and offer furniture at a renowned international event that would compete with international producers in price, quality and design. One might be forgiven for wondering what made these six companies team up for a joint presentation at the world's largest furniture fair. The presentation at the fair in Cologne was just part of a larger project designed by the leading expert on competition, Michael Fairbanks, and put into practice in Serbia under the auspices of the United States Agency for International Development (USAID). At the very beginning of the Serbian Enterprise Development Project, USAID assisted in the founding of the National Council for Increased Competition which brings together representatives from the government, the private sector and civil society. The Council aims to create the best possible

CorD | April 2004

Opinions

environment for economic growth and boosting national exports. In his theory, Michael Fairbanks asserts that companies with matching products, both in the state and the civil sector, should organise themselves into clusters to make the economy more competitive by working on marketing solutions together thereby improving their business both at home and abroad. The National Council has assisted in forming several clusters with the help of USAID in the fruit production, furniture, textile and tourist industries. The Serbian Enterprise Development Project also deals with other areas of the economy. The international project, Corridor 10, was discussed at a series of meetings with potential international investors held from January 23rd to 29th, 2003. A preliminary date for a meeting in Belgrade was set at the end of the conference in January and talks are expected to resume at a two-day gathering on April 27th, 2003. Michael Fairbanks visited Belgrade himself to see the effectiveness of his theoretical assumptions a year after his model was put into practice in Serbia. In response to the question as to what more USAID could do for the Serbian economy by supporting the cluster model for boosting competition, Fairbanks proposed that USAID continue their activities for the next 10 to 20 years. He explained Trade in Serbia is currently based on exporting that although slow moving, these kinds of changes simple goods always had a positive outcome and should be taken one step at a time. tive packaging, efficient distribution and market Addressing a group of business representatives focus, thus ending up with a higher profit margin", at the National Council for Increased Competition, observed Fairbanks. Michael Fairbanks advocated a radical shift from Commenting on the ability of the National inherited patterns of uncompetitive business poliCouncil to unite the private sector, civil society and cies to a new model which entails political leaders the state in an effort to give the Serbian economy a playing a different role, a change in business mencompetitive edge, Fairbanks said that the Council tality, organising companies into clusters, i.e. assowas neither vociferous nor bustling with activity. It ciations and target-oriented activity. is his view that the Council has missed out on a great Trade in Serbia is currently based on exporting opportunity for improvement and he sees the key to simple goods produced on the basis of cheap a successful economy in labour, fertile soil, subsiOne of the major problems in Serbia is an a more active and highdies and the sun. This underdeveloped private sector and the fact profile Council. model of business leaves the state is still a dominant shareholder in One of the major probthe international conthe Serbian economy lems in Serbia is an sumer with most of the underdeveloped private sector and the fact that the profit, the shareholder with marginal gain and the state is still a dominant shareholder in the Serbian labour force with a meagre income. However, if economy. It should be the role of the private sector your business slogan says "I will compete in the to generate wealth and Serbia is doomed to poverty world market with my wisdom, an efficient distriif the government insists on taking the leading role bution network, attractive packaging, a new brand in building the state's economic strategy. and a better policy toward the end-user", then the According to Fairbanks, Serbia has to focus on shareholder gets the same value as the consumer three areas of activity on the road to prosperity. and the labour force gets a fair share as well. Firstly, the companies and the state must be determined to The international expert has noticed several achieve their business goals. Secondly, the companies need to companies in Serbia that have started to operate find the cluster to which they belong and recognise which part along these policy lines. He singled out the fruit of their business needs support from the state. Then, finally, processing company, Fresh&Co. "Here is an examthey should focus their energy on matters within their control: ple of a company moving in the right direction. consumer education, an improvement in product quality and They took a simple product from the sun and soil, investment in human resources".â&#x20AC;˘ such as raspberries, and added value with attracCorD | April 2004

Interview

Courage to invest Once an investor has decided to invest in a country, this investment becomes strategic. Even if the business climate is not always optimal, strategic investors work with a long term agenda and necessary investments are made to make the venture become a success story. Efes has invested in Serbia and Montenegro; it is fully committed to the country and making its investment in the Weifert brewery successful.

Mr. Patrice Dierick, The General Manager of Efes Weifert Brewery By Milan Culibrk, Photo Danka Ninkovic

Interview

he Pancevo Weifert Brewery was privatized in August 2003. At that point, we found decline in volume, a penultimate marketposition, high financial debt and a low level of motivation among management and employees, resulting mainly from a lack of investment. Management at the time realized the critical need for strategic partnership to ensure the future of the brewery. On the plus side, Weifert brewery is well located close to Belgrade, which is the largest market, and has a tradition of being the oldest brewery in Serbia, founded in 1722, said Mr. Patrice Dierick. What was the situation at the Pancevo Brewery when you arrived, and what has changed during the past eight months? The brewery was privatised on August 25th 2003. As I said before, at that point, we found

Once you invest in a country, it becomes strategic. After investing one dinar or one euro in a country, you should not be afraid to invest more. We are committed to Serbia and investments will be in line with the development potential of the brands

decline in volume, a penultimate market-position, a high financial debt of 3 million Euros, and a low level of motivation. This was all a result of lack of investment. In a nutshell, we found a situation in which everything needed doing; but the base was good and that was what we had to work on by making investments - investments in technical upgrading, marketing and sales, and people. Technical investments of already more than 5 million euros have been made into all aspects of the production process, in order to very rapidly reach a position of producing good quality beer. We also invested in new packaging with

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branded crates, and a new 50cl bottle and PET. Also we set up a national sales organization and developed a new sales and distribution policy. Since the re-launch of the brand on 15th December, we have succeeded in rapidly overturning the downward trend in company business. In January 2004, volumes were already 15% higher than in the previous year, and in February, volumes increased by 122%, more than double compared with 2003. March volumes will be more than double as well. Production works around the clock

and employees are highly motivated as they can see the first results of the partnership. Investments are key to the development of the company. Once you invest in a country and in a business, it becomes strategic, and one should not be reluctant to keep on investing to turn the venture into a success story. You have sometimes to be courageous to continue investing in a difficult business environment, but our shareholders are fully committed to Serbia and Montenegro, are determined, and have with a long term vision.

As a majority shareholder, how much has Efes invested in Weifert until now, and what is the initial effect of this investment? Efes increased the capital in the company by 6.5 million USD, acquiring a 63% shareholding. The acquisition of the remaining shares is an issue for the shareholders and corporate policy; Together with the management I deal with operational issues only. Since the start in August 2003, more than 5 million euros have been invested on the technical upgrading of the brewery and packaging, 1 million euros have been invested in the restructuring program, and 3 million euros have been paid on outstanding excise duties and taxes from the past. 2004 and 2005 will also be years of major technical investments, with more than 5 million euros per year, but marketing and sales will also be the centre of our attention. Recently you have said your aim is to make the Efes Weifert brewery one of the leading ones in Serbia and Montenegro. How do you plan to do this, and, is it possible given the competition? If you go into a country to compete on the beer market, in order to ensure the long term future of a company and be profitable, you have to become one of the three leading breweries with a sizeable market share. I moved to Efes Weifert with the objective of making this company one of the leading brewers. This goal can be achieved through organic growth and acquisitions. Organic growth will result from strong development of the Weifert brand. This brand has the potential to gain a good share of the market, but this alone may not be suf-

Brewery can start to expect profits in 2005. ficient for it to take a leading position. On the side of acquisitions in the brewing sector, if there are some good opportunities in the market, we will surely be looking at them. What was the Weifert share in the Serbian market before your arrival, and what is the Efes Weifert position now? Do you have any export ambitions? Last year, Weifert brewery was number 12 out of 13 breweries with a market share around 2.5%. In February, we were already number 7 with 5.7%,

It is sometimes difficult for people outside Serbia and Montenegro to appreciate things are not the same here as elsewhere; that the mentality, culture, and way of operating are different and that investors have to adapt to a certain extent to achieve success. which is more than double; we are aiming for a minimum 8-10% of market share. The turnaround happened very quickly and we are in line with our expectations; but I am not satisfied, because we must and can do more, and achieve this by always being one step ahead of the competition.

Interview

What are the first year preliminary financial results since Efes became the Pancevo brewery majority share holder, and what effect does this have on employees' salaries? Last year we incurred financial losses because of low volumes, major restructuring costs, and extra costs in starting the partnership. This year, the objective is to break-even at the level of operating profit. Depending on growth in volumes, we can start to expect profits in 2005. When you start to invest, you cannot expect financial results straight away, you have to be patient and work hard for 2-3 years in order to make a profit.

In your time with Interbrew you worked in the Niksic brewery. What was your experience in this brewery, and will your 'inside' knowledge of the competition be useful for you as Efes Weifert General Manager? The key advantage of my years in Niksic is not only a good understanding of the market structure and its competitors, but more so a knowledge of the way things work in this country. It is sometimes extremely difficult for people outside Serbia and Montenegro to realise that things here are not the same as elsewhere; the mentality, culture and way of operating here are different. It is part of my role to explain and convey this to corporate headquarters. But also, what I have realised over the last 5 years, is that innovation and product development is crucial in CorD | April 2004

Interview always better to be open and honest, especially when you talk about workers and jobs. Together with the trade unions we solved the problem and negotiated a strong financial package for the workers, but also we developed a system whereby in the vast majority of the cases it was the worker who choose to leave. The company invested over 1 million euros in the restructuring program. At the same time, we have started an extensive recruitment program in marketing and sales, finance, engineering and human resources, and we have already recruited over 35 young people.

Mr. Patrice Dierick: We are very strict on the issue of quality control

Interview

this market; and even more, when you are in our position and have the objective to play a key role in the industry. You have to be faster than the competition. The specific objective of developing Weifert into one of the leading breweries was based on the experience I gained of the market. I knew its structure and its way of doing business, and this was the key driver in my decision to take

Investments will continue in the years to come, but marketing and sales will also be the center of our attention. Depending on growth in volume, we can expect first profits in 2005 on this challenge. My family and I also wanted to stay in Serbia and Montenegro, and I think the country has a wealth of opportunities and there is always something happening here.

How many employees were there when you came and what is their number now? How have you solved the problem of technological surplus, such as that experienced at Niksic "Trebjesa" which was out of work for months, while beer was produced in neighbouring countries? When we privatized the company there were 370 employees, and today there are around 220. During the negotiations with the Efes Group, the management at the time realized there were too many people in the company and they agreed to a rationalization program, but not at the expense of the employees - it was agreed that the redundancy package would have to be fair and substantial for the workers who had spent a number of years working for the company. In October and November we openly discussed the issue with the trade unions, and agreed that it was up to the management to say how many people were required to work in the brewery. I advocate a transparent approach, that may sometimes shock people, but it is

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One of the Serbian brewing industry's problems, as well as one of Pancevo's, is a lack of quality control. Have you managed to solve this problem? We are very strict on the issue of quality control, and we have established a quality control programme with checks and measures at every step of the production process. Also, we are selecting high quality raw materials, for instance, the malt is imported while before malt supplies were domestic. The quality of domestic malt was not satisfactory, and although imports are more expensive, one should never compromise with quality. If you accept compromise and start reducing the quality of you beer, the success is over. You have only one chance to make a good impression. When you re-launch the brand, you have one chance to convince consumers that you produce good beer. We have established credibility today and now we have to maintain and improve it. In beer, quality is the key to success and no compromise is allowed. Does Efes plan to start production of its trademark products in Pancevo, or will it stick with the local Weifert beer brand? Weifert is our core brand and flagship. We will produce Efes in Serbia the day that we are able to do so since the production technologies for the two brands are different. Our main objective is the development of Weifert. For 63 % of Pancevo Brewery capital Efes paid 6.5 million dollars. Does this mean Interbrew and Carlsberg have overpaid for Apatin and Celarevo breweries ? The price you pay is based on the actual annual results and future cash flow predictions, i.e. the money that you are going to make in the years to come. There is also the strategic interest and finally, how much you are willing to pay. Only the future will tell whether the price paid was a good one. More important than the price is what you do with the company and how you develop it. The shareholders decided to invest, now it is up to the operations people and the management team to ensure long term growth and create shareholder value. The same should be true for Apatin and Celarevo.â&#x20AC;˘

AUTOMOBILE SHOW IN BELGRADE From March 26th - April 4th at the Belgrade Automobile Show DC SCG will exhibit Mercedes-Benz freight vehicles in a 750 square metre area in Hall 3. It is thought that considerable interest will be raised by the Actros truck - declared Truck of the Year 2004 at the Amsterdam

automobile show by the jury of journalists from 19 countries, as well as delivery trucks Vito and Viano - on show for the first time. With more besides, visitors to this indoor location will also have the opportunity of seeing the Axor and Atego trucks, Sprinter transporter, Vaneo mini-van and Unimog multifunctional vehicle. CO-OPERATION WITH THE NATIONAL MUSEUM The formal opening of an exhibition of 19th and early 20th century paintings, under the auspices of DaimlerChrysler Company, will take place at the National Museum Atrium on March 27th. Visitors will have the pleasure of enjoying works by Camus Coroa, creator of the modern European landscape, impressionists

Claude Monet, Camus Pisaro, Pierre Auguste Renoir, Alfred Sisley, and Edgar Degas. Undoubtedly, the works of postimpressionists Toulouse Lautrec and Van Gogh will receive equal acclaim, among the artistic expressions of Paul Gaugen, Henri Matisse and Pablo Picasso. Of the artwork on display, 17 of the masterpieces were chosen from the National Museum collection, and visitors will be able to view the exhibition from March 29th - April 4th. Thanks to DaimlerChrysler Company, the exhibition's patron, in addition to the paintings, visitors will have the opportunity of seeing for the first time in Belgrade an automobile model from the Stuttgart Museum, which, even today, captures more than a little attention. NEW - BIO NEXT ORGANIC Fresh&Co. was the first juice manufacturer in the country to start production of 100% fruit juices - with no sugar, preservatives, artificial colours or aroma added. Last year the European Centre for Marketing Research gave Fresh&Co. its prestigious "Euromarket 2003" Award, for being the most promising agricultur-

al company in South-East Europe, and producing the highest quality fruit juices in the region. NeXt juices are consumed in some 20 countries worldwide, and this year the company's focus is on strengthening its position in its established foreign markets, as well as launching itself in new ones. After its NeXt Premium brand 100% fruit juices, made from the best quality fruit, with the help of the most up-to-date technology and application of internationally certified production standards, Fresh&Co. has gone one step further and launched its organic range of BIO NeXt Organic juices. Manufactured organic food and drink products only use raw materials

that meet strict guidelines. From farm to supermarket, organic food producers meet strictly defined, certified standards, to ensure that the product has not been exposed to any inorganic materials, such as pesticides or mineral fertilizers at the growing stage, and later any chemical synthetic additives in production. Organically produced food has all the biologically rich ingredients needed for a healthy diet, rich in fibre, minerals, and vitamins; it contains the minimum of toxic materials. Fresh&Co. Company is the first industrial producer of organic food in the country - BIO NeXt Organic juices.

Comment

Quo Vadis, Serbia? In order to improve the business environment, the cadastral register needs to be functional, real estate available to foreigners, administrative procedures for the start up of some business to be simple, cheap and fast, taxes reduced, political interference in business abandoned, the judicial system fast, just and efficient, the transfer of earnings easy, etc.

Comment

be simple, cheap and fast, taxes reduced, political The job of this government may not interference in business abandoned, the judicial be much easier compared to that of system fast, just and efficient, the transfer of earnthe two governments after 2000. ings easy, etc. This cannot not be achieved withAlthough the 2001 government was out more serious, non-cosmetic reforms. A larger faced with a ruined economy, an number of start ups may partially wipe out the empty budget and shortages of some main goods, huge unemployment caused by the liquidation of foreign aid has provided the necessary support to bankrupted firms. Otherwise the several hundred achieve basic stabilization, while positive public thousands of people now working in bankrupted feeling has reduced the cost of reform. Reforms, firms might shake up the government. however, were modest, the basic rules of the game A sharp rise in start ups, including green-field did not change, and any real changes were related investment, is more important for GDP growth to those areas where reform could be brought and prosperity than the privatization of existing about with speed and ease. The opening up of forfirms. In transition "success stories", like Estonia eign trade, partial privatization via sales, macroor Hungary, the FDI is economic stabilization responsible for more and the opening of the Donations, soft loans and revenue from than 80% of the exports internal market were privatization have provided the means for a of these countries. FDI important yet insuffitemporary improvement in the standard of promotes export goods cient reform moves. living. Donations and loans also had a and provides attractive Donations, soft loans goods for the internal and revenue from privapredictable effect - the government lost the market, making it easier tization have provided incentive for serious reform. to balance foreign trade, the means for a tempocurrent accounts, etc. rary improvement in the However, the FDI will not rise until domestic standard of living. Donations and loans also had a investors test the business environment, and this predictable effect - the government lost the incenwill not happen until we see a greater rise in tive for serious reform. investment demand, which is again preceded by The new government has inherited a better sitmore attractive interest rate policies in order to uation (the supply of goods and public finance), attract savings into banks and so on. but it has also inherited a large number of probReforms in the real and banking sector should lems. Concentrated reforms are more costly than be the first move, followed by the opening of capthose which have been implemented to date, since ital markets, the stock exchange and the insurthe marginal cost of institutional change is rising. ance market, balanced by a concentrated reform Macroeconomic stability is not sustainable if not supported by of administration, the army, the police and the changes in the real sector. On the one hand, this requires a serijudiciary, which should in turn be backed up by ous improvement in the business environment, to encourage flanking reforms, such as fine tuning in business start ups and to attract FDI, and on the other, the liquidation of regulations, statistics and auditing. bankrupted firms and the privatization of larger state owned All this sounds very positive, but not even a enterprises, including utilities. Both are unlikely to happen. In small fraction of it is likely to become a reality. order to improve the business environment, the cadastral regNew ministers speak yet another language based ister needs to be functional, real estate available to foreigners, on a government-operated-economy, they proadministrative procedures for the start up of some business to

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Comment

mote public works and a "new deal" for Serbia which was a false move even at the time it was first implemented. Instead of focusing on market forces, the new government promises exactly the reverse. The revival of Zastava at the taxpayers' expense means a return to socialism. Instead of

The FDI will not rise until domestic investors test the business environment, and this will not happen until we see a greater rise in investment demand, which is again preceded by more attractive interest rate policies in order to attract savings into banks and so on. speeding up privatization, there is talk about a revision of the process. Instead of restitution, there is silence. Instead of further opening of the market and foreign trade, there is talk about "economic patriotism" and "economic nationalism" which is likely to create further obstacles for doing business and lead to a marked deterioration in the business climate. New riders forget that

Serbia has heavily protected its economy in the past, and that its state of near bankruptcy is precisely the result of that policy. The more protection any industry had the greater its decline. Newly dispatched ministers ignore the undisputed fact that the heavy hand of the state does not create wealth and prosperity. All in all, what has been said may be on the agenda of some government in ten years or so, but not this particular one. This government will be short-lived and the country is likely to face several elections in the forthcoming years. Uncertainty will dominate political life with the economy in stagnation and hardships on the rise. One day when voters realize that an economy operated by the state is a dead end, they may demand more pro-market policies, and parties will change in order to capture the votes. This will not happen automatically - for hungry voters this may be too sophisticated an idea. Miroslav Prokopijevic, Principal fellow of the Belgrade Institute for European Studies and professor of public choice.â&#x20AC;˘

New World Value Fund

A PASSPORT FOR SERBIAN BRANDS Here in Serbia, Salford is the representative of the New World Value Fund, and has recently shown investment interest in manufacturing plants which process mineral water, juice, candy and beer, said Mr. Slobodan Petrovic, director of Salfordâ&#x20AC;&#x2122;s office By Vesna Musulin, Photo Dragan Milosevic

eries, mineral water and juice factories, while information technologies attract most investment in the more developed countries of the European Union. Slobodan Petrovic, Director of Salford's office for the Balkans and New World Value Fund Manager, currently has 500 million US dollars at his disposal for profitable investments. However, his office is not authorised to make investment decisions, but only act as advisor, while the Investment Board headed by DaimlerCrysler Vice President Klaus Mangold has the final word. Serbia - A Key Balkan Country

Mr. Slobodan Petrovic, director of Salfordâ&#x20AC;&#x2122;s office

he founders and owners of The New World Value Fund, a Gibraltar based concern, are investors from across the globe (Europe, Russia and the USA). Currently, they are ready to lay out 150 million US dollars for restructuring Serbian companies, some 50 million more than they had initially planned. The main reason these investors have increased the amount of money they plan to infuse into the Serbian economy is the low price of capital in this country, and the potential this has for making investment very profitable. They anticipate that the price of capital will increase considerably over the course of the next 5 to 7 years, after the companies are restructured and sold on the world stock markets. In transitional countries, the Fund primarily invests in the food and beverage industry - brew-

CorD | April 2004

Investors believe that aside from having a central geo-political and geo-strategic position in the region, Serbia also offers the largest potential market. Accordingly, Salford has acquired majority ownership of Serbia's largest dairies - Imlek, Subotica mlekara, Zemunska mlekara, Novasadska mlekara and Zajecarska mlekara, with the aim of restructuring them and increasing their value by 2008. The strategic goal of the New World Value Fund is to build a holding of food and beverage producers,

Minor shareholders in the Serbian companies that Salford has bought or plans to buy into should not be in a hurry to sell their stocks. If they wait until the majority holder decides to offer the company for sale on the world market, these shareholders will have the opportunity to join in and achieve a much better price per share. and later sell them on one of the leading stock markets - London, Frankfurt of New York. So, as the representative of the New World Value Fund, Salford has shown interest in breweries and plants for pro-

Local Policy Petrovic is keen to point out that Salford has a local investment policy, meaning that they rely on the local work force and resources, with a goal to transform its trademarks into international brands. In this way the Fund does not intend to monopolise the domestic market, by killing off local companies , in order to open up room for foreign competitors. On the contrary, Salford is trying to boost their value, maintain the local trade marks and turn them into international brands, and, in fact, this strategy is currently being implemented in Serbian dairies both at the level of organisation and production. Consequently, Salford will invest a total of 80 million euros into Serbian dairy products, with the emphasis on raising the level of quality and productivity. If this branch of industry is to become competitive in the region, then the Serbian dairy industry will have to double the current production level of one million litres of milk per day. It will also have to improve the quality of dairy products to meet strict

Mr. Slobodan Petrovic: Salfort is interested in Knjaz Milos EU standards, and specialise companies to produce specific types of products. At present most investments are directed towards boosting primary production, and in this phase it believes the state has a crucial role. It should provide dairy farmers with favourable loans for purchasing dairy cows, milking equipment, crop fields, as well as building and maintaining milking sheds and milk silos. At this point, there is still a lot to do in advancing the organisation of labour and production in the leading Serbian dairy companies in which Salford has majority ownership. However, since the Fund has pledged not to lay off the existing labour force, the problem of redundancy has been solved within the companies by introducing three working shifts instead of one. This policy has resulted in better exploitation of technical and human resources, as well as boosting production.â&#x20AC;˘

Salford

cessing mineral water, juice, and candy. If their plan succeeds, they will link these companies, in which they have the controlling interest of shares, into one holding and then sell them on the world stock market as a single package. Currently, the majority shareholder is focussed on developing the companies it has invested in, and is not prepared to buy more shares or pay out dividends, since this would mean paying profit tax as well. In line with this, and because their aim is to increase company value and achieve capital gain after selling on the world stock market, Petrovic says that Salford will employ a more rational strategy and invest all profit into company development. Therefore, minor shareholders, in the Serbian companies that Salford has bought into or plans to, should not be in a hurry to sell their stocks. Particularly since their value is stable or falling due to much higher demand than supply. If they wait until the majority holder decides to offer the company for sale on the world market, the shareholders will have the opportunity to join in and achieve a much better price per share. Portfolio investors are also increasingly showing interest in buying smaller share packages in companies where the Fund is the majority shareholder. These smaller investors trust Salford as the Fund's investment manager, and are prepared to share the risk, by investing into the companies that have been targeted by the New World Value Fund. According to Petrovic, the economy can benefit more from long-term re-capitalisation than from selling stateowned capital to meet budgetary demands. When there is a conflict of interest between the state and company, Salford offers the option of re-capitalisation to boost development. The offer includes purchasing state-owned capital at the price per share that was set for investment into re-capitalisation.

Berezovski Capital

Among the Serbian public there has been considerable speculation that the Fund was in fact a faĂ§ade for the capital of Boris Berezovski, the controversial Russian businessman of Jewish origin. Concerning this issue, Salford management insists it does not have any insight into the ownership structure of the Fund and the only available information is that the owners are wealthy business people from a number of countries. However, unofficial sources suggest Berezovski did have capital in the Fund at one point, but withdrew it, and is no longer part of this investor community. CorD | April 2004

Interview

Beset by Restrictions By Srdjan Jankovic, Photo Sasa Mircic

ow do you rate the activities of the Montenegrin Foreign Ministry since the formation of the state union and the Ministry Council and to what extent has the formation of united institutions, in particular the joint Foreign Ministry, influenced the way Montenegrin diplomacy functions now compared to the previous period? It is my opinion that the Montenegrin Foreign Ministry has been working in an atmosphere beset by restrictions. Whether or not it has fulfilled

expectations is not for me to say. I do not see that any major errors have been made and we have achieved success with certain important initiatives. The Belgrade Agreement and Constitutional Charter have paved the way for great changes in the work of the Montenegrin Foreign Ministry. Unfortunately, these changes have not been achieved with complete success. This is primarily due to the fact that the joint ministry was not formed, but was instead taken over from the former state. However, that will change in time. As I stressed during my recent visit to the joint ministry, the Montenegrin Foreign Ministry is seeking an area where agreement can be reached on joint foreign strategy, the synthesis of important platforms, an increased presence in delegations and more energy for our initiatives. We want to represent the interests of the state unity in those sectors where the interests are primarily pertaining to Montenegro. I refer to this from the viewpoint of the Adriatic, wider Mediterranean foreign policy held by Montenegro.

We want to represent the interests of the State Unity in those sectors where the interests are primarily pertaining to Montenegro. I refer to this from the viewpoint of the Adriatic, wider Mediterranean foreign policy held by Montenegro. I also include here bilateral relations, which are not harmful to Serbia and which we do not negate. Such interests are understandable and best serve regional stability and Euro-Atlantic integration. To what extent, in your opinion, has the state union Foreign Ministry been effective and will this level of success be maintained in the forthcoming period, after the formation of the new government in Serbia? The Foreign Ministry is a powerful apparatus. The restrictions placed upon it are primarily to be found within the Serbian political scene, i.e. its elite. Metaphorically speaking, the engine is powerful, but the fuel inadequate. The journey towards the required destination is thus a slow one. This

CorD | April 2004

Mr. Danilo Burzan Montenegrian Minister of Foreign Affaires

The Ministry of Foreign Affaires is a powerful apparatus. The restrictions placed upon it are primarily to be found within the Serbian political scene, i.e. its elite. Metaphorically speaking, the engine is powerful, but the fuel inadequate. The journey towards the required destination is thus a slow one. also answers the second part of your question. The opening of the Foreign Ministry towards Montenegrin political influences will result in greater speed towards the EU and NATO.

Interview

What are your comments on the statement that the feasibility study for the beginning of negotiations regarding the stabilization of Serbia and Montenegro and their membership of the European Union will not be completed before the USA is the partner with the greatest global end of March as previously promised? responsibility We informed everyone in good time that this would be the case. Unfortunately, our arguments both sides to have their own ministries with the were not heeded. This was bound to happen and I state union ministry playing the role of coordinado not believe that we are to blame. This approach tor. It is not possible for the interests of two combenefits nobody and we all lose out, Montenegro, pletely different systems, with different existing Serbia, the region and the EU. Some answers are and potential transitional processes and totally not as simple as we would like them to be although diverse developmental perspectives, in an atmosthe arguments to support them may appear so on phere of differing politics to be represented as if the surface. they were a unitary or federal state. This is more Not wishing to give offence to all those of harmful than we can imagine. opposing opinions, it is my view that the indented approach of Montenegrin The new parliamenstate politics is and will Conditions must be created within the country tary majority in Serbia remain superior in terms aimed at reaching a wider understanding of of providing solutions why the political ideas and actions during the is expected to elect a new Foreign Minister which function well. I am 90's on the territory of the former Yugoslavia and there will also be convinced that the recepare unacceptable. changes in the Ministry tiveness of our views is Council. What implicanot limited merely to the tions will this have on joint diplomacy and relasupporters of Montenegrin independence in tions with the Montenegrin Ministry? Montenegro, but extends, based on regionally recThe changes you refer to could have great reperognizable advantages, to a great number of politicussions in many areas. The attitudes and views of cians and analysts within the international comthe key political players in the electoral campaign munity. in Serbia are completely opposed to those held in Montenegro. Those attitudes have already been From the outside it appears strange that one recognized by the international community as failing to promise member state has its own ministry while the any improvement in basic foreign policy. Their regression is so other is represented through the ministry of the great that if we become part of state policy in Serbia I cannot see state unity. What is your view? a great deal of choice for us. I know that a large number of peoThe constitutional ties between Montenegro ple on the internal political scene will say that this is only a matand Serbia are such that it would be optimal for CorD | April 2004

Interview ered based on the fact that they have given the greatest support to the process of democratic transition and that they are the partner with the greatest global responsibility, the partner that has taken on the project of eradicating terrorism and organized crime, which should be supported.

Interview

Montenegrian diplomacy is still in the process of development ter of electoral rhetoric and that things will be done differently at state level with the aid of "cosmetics" which create an impression of consistence and dependability within the electorate. Such a thing never works, and what is more, is not ethical. That is not the way to society reforms. What is and should be the answer is a full and public break with the past.

How important do you feel cooperation with the Hague Tribunal is in the development of relations with countries in the region and EuroAtlantic institutions? Cooperation with the Hague Tribunal is of vital importance. It is the instrument required to establish regional stability and the catalyst in the process of reconciliation in the region and regional integration, which are both essential and inevitable. Of course, this means not only the full cooperation of all relevant states in the region with the Tribunal, but also the creation of conditions within the states aimed at reaching a wider understanding of why the political ideas and actions during the 90's on the territory of the former Yugoslavia are unacceptable. I dare to recognise this last point as the process of denazification. The distribution of Ambassador positions was agreed with the former Serbian authorities. Do you believe that this agreement will survive or will it be redefined after the formation of the new government in Serbia? Of course it goes without saying that what was agreed should be adhered to. Similarly, I think that the Constitutional Charter has not yet been not fully implemented. This was only the beginning of the adaptation process of foreign policy to its regulations.

What are the key obligations facing the state You are the future state union Ambassador to union as regards foreign policy in the forthcomGreat Britain. What would be your advice to your ing period? successor on the post of Montenegrin Foreign Joining the Partnership for Peace programme Minister? The Montenegrin media have annowould take first place. This does not only have unced that the main implications for the reform of the army Cooperation with the Hague Tribunal is of vital candidate for that position is Miodrag Vlaitself, but also our importance. It is the instrument required to hovic, the director of the approach to the concept establish regional stability and the catalyst in the Center for Regional and of security. I see endprocess of reconciliation in the region and Security Studies. less possibilities for regional integration, which are both essential Firstly, I would cooperation in the advise him to show region here, exerting a and inevitable. Of course, this means not only great patience. I think positive influence on the full cooperation of all relevant states in the that Montenegrin diploregional stability. The region with the Tribunal. macy is still in the positive psychological process of development effects of this process on other areas and is disproportionate to its duties. As I of reform are also great. Progress in our association with the explained earlier, I will insist on the need for furEU based on state members having reconciled their differther improvements to its function and role ences as well as regional cooperation, bilaterally and through through the union ministry. As regards the perregional initiatives are also major priorities. As regards sonal aspect, I have neither the jurisdiction nor Kosovo, the strategy I consider to be by far superior, is that of the responsibility to comment. That would be up standards before status, which would mean an internal politito the Prime Minister.â&#x20AC;˘ cal about-face. Our policy towards the USA should be consid-

CorD | April 2004

Faces & Places SEMINAR: "NEW EUROPEAN UNION BORDERS"

In co-operation with the London Centre for European Reform and the Belgrade Centre for Political Ex-ceptionalism, the British Embassy held a seminar at ACAS Lola on February 4th. The event marked the official European promotion of the "New European Union Borders" publication, by Ms. Judy Bat, Researcher at the Paris Institute for European Union Security Studies. Mr. Goran Svilanovic, Serbia and Montenegro Foreign Minister opened the proceedings attended by the author and other distinguished participants.• H.E. Mr. David Gowan British Ambassador at the Seminar

FRIDA KAHLO EXHIBITION The Embassy of Mexico and Djura Jaksic House organised an exhibition of Frida Kahlo poster work. The exhibition was opened on 17th February in the presence of H.E. Mr. Mariano Garcia Munoz, H.E. Mr. Rubem Amaral Jr. and other distinguished friends and guests.• H.E. Mr. Carlos Rodriguez Y Quezada and Mrs. Maite Revero Torres at the Exhibition

MASLENICA IN THE RUSSIAN CENTRE On February 19th one of the gayest and most popular Russian holidays was celebrated in the Russian Centre. Maslenica, or Carnival, is the holiday that precedes Easter Lent and a time when people want to have fun and make big straw doll decorated with ribbons and beads. All week long they eat traditional Russian pancakes - blini and drink vodka. Maslenica was celebrated in the Russian Centre with the "Rosici" folklore ensemble from Kaliningrad. After the concert, diplomatic corps representatives, and many public figures, all the Belgraders present, had fun and enjoyed the traditional Russian snacks and Russian songs and dances.• “Rosici” folklore ensemble in the Russian Centre

CorD | April 2004

Faces & Places

CANADIAN AMBASSADOR DONATES BOOKS TO ROMANCE LANGUAGE DEPARTMENT

On February 25th, the Ambassador of Canada to Serbia and Montenegro Mr. Donald McLennan donated 300 books to the Romance Languages Department Library of Belgrade University's Faculty of Philology. This donation, together with the existing Francophone literature books, will mark the "Canadiana" library foundation at the Faculty of Philology. Ambassador McLennan is very pleased with the connections that have been established at a cultural, educational and publishing level, especially evident during the Belgrade Book Fair last autumn, opened by Naim Katan and David Albahari, writers from Canada.• H.E. Mr. Donald McLennan and Mrs. Jelena Novakovic Head of Romance Language Department

CERVANTES' BOOK PRESENTATION

The Embassy of Spain and the Cervantes Institute organized the book presentation "Balkans: European Purgatory" on February 26th, in the Cervantes Institute Conference Hall. His Excellency the Ambassador of Spain, Mr. Mariano Garcia Munoz officiated at the event attended by the author, Mr. Amado Philip de Andres, the Legal Adviser of the Justice Administration Office, and the Chief of Staff at the United Nations Mission in Kosovo. Mr. Andres had dedicated his book to all the comrades who had been killed in peace operations all over the world fighting for freedom, democracy and the establishment of legal states.• H.E. Mr. Mariano Garcya Munoz with Mr. Amado Philip de Andres and Mr. Havijer Ergeta, Director of the Cervantes Institute

ST. DAVID'S DAY On March 1st, H.E. Mr. David Gowan and Mrs. Marna Gowan hosted a party on the occasion of St. David's Day, at their official residence in Dedinje. St. David is the patron saint of Wales, and both the Ambassador and his wife are of Welsh descent. Their celebration, of this important traditional holiday for the Welsh community was marked with a very rich and traditional table. The many guests invited had either national links or close ties with the principality, having either lived there or were pursuing cultural or business connections with Wales.• H.E. Mr. David Gowan in front of the traditional Welsh table

Faces & Places

Bulletin

REPUBLIC OF BULGARIA NATIONAL DAY On March 2nd, H.E the Ambassador of Bulgaria Mr. Yani Milchakov and his wife hosted a reception on the occasion of the Republic of Bulgaria National Day. Among the many guests were Mr. Amir Nurkovic, Serbia and Montenegro Minister for Internal Economic Relations; Lieutenant General Branko Krga, Ms. Jelica Minic, Serbia and Montenegro Assistant Foreign Minister; Mr. Vuk Draskovic, Serbian Resistance Movement Leader; Mr. Alkesandar Popovic, Republic of Serbia Minister for Science; Mr. Milorad Pavic, writer, and Ms. Radmila Hrustanovic, Mayor of Belgrade.•

TADIC INFORMS AMBASSADORS OF KOSOVO EVENTS On March 18th, Serbia and Montenegro Defence Minister Mr. Boris Tadic asked again for urgent, decisive and efficient UNMIK and KFOR action to curb terror against Kosovo Serbs. He informed the ambassadors from the Security Council member countries, the Contact Group, and the European Union, as well as UN representatives in Belgrade of "dramatic developments in Kosovo and Metohia." JAPANESE AID The Japanese Government will donate some 8.9 million euros in aid to Serbia and Montenegro for medical equipment needed in health centres, announced the Japanese Embassy in Belgrade on March 19th. OSCE SUPPORTS THE SERBIAN GOVERNMENT

H.E. Mr. Yani Milchakov and his wife greeting Mrs. Aleksandra Joksimovic

GHANA'S INDEPENDENCE DAY The 47th anniversary of Ghana's independence, which fell on 6 March 2004, was celebrated in Belgrade at the Inter Continental Hotel on the evening of Friday, 5 March 2004. The staff of the embassy and their families supported the anniversary celebration, hosted by the Ambassador, H.E. Mr. Patrick Amoah-Ntim and his wife and daughter. A number of high-ranking Serbia and Montenegro government officials were in attendance, as well as members of the diplomatic corps, businessmen, a cross section of the general public, and friends and well-wishers of Ghana.• H.E. Mr. Patrick Amoah - Ntim with his wife and daughter and officials from the Embassy

On March 8th, Mr. Mauricio Massari, the OSCE Chief of Mission in Serbia and Montenegro, delivered his organization's support to the new Serbian Government and its Prime Minister, Mr. Vojislav Kostunica, announced the government. S&M NAVY COMMANDER MEETS WITH US MILITARY ATTACHE On March 10th, Corps Commander of the Serbia and Montenegro Navy, Rear Admiral Jovan Grbavac met with Military Attaché, Colonel Gordon Drake and his deputy, Major Thomas Newcomb. Colonel Drake said that the American Military Mission had discussed future forms of cooperation at the meeting, and Admiral Grbavac announced that the mutual radar system in the Adriatic would start to function very soon. ITALIAN AMBASSADOR APPOINTED On March 13th, Serbia and Montenegro President Mr. Svetozar Marovic confirmed the appointment of the new Italian Ambassador to Serbia and Montenegro Mr. Antonio Zanardi Landi, announced the Marovic Cabinet. Before being appointed to Belgrade he was the Italian Foreign Ministry General Secretary Chief of Cabinet.

Bulletin CANADIAN FILM RECEPTION On 5th of March, during FEST04, H.E. Mr. D. McLennan and Mrs. McLennan gave a reception at the Sava Centre Art Club to celebrate the showing of a number of Canadian films at the festival. The reception was followed by the screening of "Les Invasions Barbares".•

“ELECTRIC EARTH” The British Council, in co-operation with the Contemporary Art Museum, sponsored the international Electric Earth exhibition, opened on March 10th, by Mr. Chris Gibson, the British Council Director. The exhibition, a collection of video works reexamining alternative life styles and belief systems, was extremely well received by art critics and the viewing public. •

KOSTUNICA SIGNED SPAIN'S BOOK OF CONDOLENCE On March 13th, Serbian Prime Minister Mr. Vojislav Kostunica signed the condolence book at the Spanish Embassy in Belgrade dedicated to the recent victims of the terrorist attack in Madrid. On the occasion Mr. Kostunica expressed his condolence to Mr. Mariano Garcia Munoz, the Ambassador of Spain. SVILANOVIC WITH CONTACT GROUP AMBASSADORS On the evening of March 17th, Serbia and Montenegro Foreign Minister Mr. Goran Svilanovic informed the ambassadors of the UN Security Council permanent members and Contact Group members of Serbia and Montenegro's request for an urgent meeting of the UN Security Council. He urged for decisive action on the part of the international community to curb the violence and tension in Kosovo and Metohia.

Mr. Chris Gibson with Mr. Mark Bizli at the exhibition

THE FIRST WINE CHALLENGE CUP On March 16th, the 1st Wine Challenge Cup was held at the Hyatt Regency Hotel in Belgrade. The event was organised by the French Embassy and the French Cultural Centre in cooperation with the Sommeliers' Society, and many wine producers from Serbia and Montenegro and the Republic of Macedonia took part. The jury at the day-long wine competition was made up of prominent French sommelier experts and wine culture connoisseurs who judged the host of wines for their quality.•

JOCIC WITH THE AMBASSADORS OF AUSTRIA AND GREECE On March 17th, Serbian Minister of Interinal Affairs Mr. Dragan Jocic had separate talks on the fight against organized criminal with the Ambassadors of Austria and Greece to Belgrade, Mr. Hannes Porias and Mr. Michael Spinellis, respectively. Mr. Jocic pointed out that countries could not fight alone against organized crime, drugs smuggling and terrorism, and therefore they had to cooperate closely, the cabinet announced.

Somelier experts judging wines MAROVIC WITH SWISS AMBASSADOR AND PERUVIAN REPRESENTATIVE

On March 17th, Serbia and Montenegro President Mr. Svetozar Marovic had separate farewell meetings with the Swiss Ambassador to Serbia and Montenegro Mr. Gaudenz Ruf and the Peruvian Chargé d'Affaires Mr. Hector Matallan Martinez. During the talks with Mr. Marovic, Mr. Ruf expressed his conviction that Serbia and Montenegro would be successful on the road to Europe, read a statement issued from the President's Cabinet. CorD | April 2004

Thailand at First Sight

The Land of Buddha

and Smiling Faces

Thailand

The Thai capital Bangkok (bang makok stands for "Place of the Olive Plums") or its popular local alias Krung Tep (City of Angels) is attributed to be "the most exciting city in Asia".

he weather is muggy most of the time with 90% humidity, an annual rainfall of 2,600 millimetres per square metre and temperatures that soar to 38 oC. Assertive umbrella and raincoat sellers are quick to welcome newcomers at every corner. The Thai capital Bangkok (bang makok stands for "Place of the Olive Plums"), or its popular local alias Krung Tep (City of Angels), is attributed to be "the most exciting city in Asia". Bangkok is an exotic circus with myriad scents and aromas saturating the air.

Thais like to point out that they are humble believers - 95% Buddhist in a population of 63 million. They follow Tervada Buddhism, which came to former Siam (changed its name to Thailand in 1939) from Sri Lanka.

Blocks of buildings, pedestrian tracks, reed houses and floating markets are set on a grid of water canals. The urban landscape that is intersected by canals has prompted tourists to dub the Thai capital Bangkok the Venice of Asia. In this south-east Asian metropolis with a population 7.2 million, one could spend ages and a wodge of cash in a tuk-tuk (a popular three-wheeled taxi) waiting for the traffic to clear. "A little patience, not much longer", assure the cunning drivers, while the taximeter ticks of the minutes in baht (1 US dollar = 43 baht).

CorD | April 2004

By Petar Mickovic

As soon as you exit the taxi and exhale a breath of climatised air, the nostrils and lungs fill up with a wave of warm and greasy air, saturated with the scent of fried coconut oil, Thai parsley, red onion and ginger. You can start a sightseeing tour of Bangkok on the Chao Phraya River that bustles with junks (long

A wide grin is what you will encounter on the face of a Thai most of the time. Hospitality is an unwritten law here and exceptions to the rule are rare.

Thailand

Thailand at First Sight

boats), khams (miniature ferryboats) and colourful floating markets. An array of exotic tropical fruit is available at every other market stand. A traveller would need more than a lifetime to explore the offerings of a floating Thai market: jungles in flower pots, gigantic aquariums, hummingbirds, salamanders, portable stoves, fish sauce, black piglets, cobras, Stevie Wonder cassettes, roast in honey, orchids in coconut shells, machetes, caviar etz. And while traders shout through megaphones praising the quality of their goods, the police make sure everything is in order from a comfortable distance. Lining the riverside are small restaurants where you can have a taste of the local cuisine: Ka pia (hot shrimp soup), Pria

Thailand at First Sight meat with lots of spices. Two tastes dominate their dishes: hot and sweet. A wide grin is what you will encounter on the face of a Thai most of the time. Hospitality is an unwritten law here and exceptions to the rule are rare. Thais like to point out they are humble believers - 95% are Buddhist in a population of 63 million. They follow Tervada, a form of Buddhism, which came to former Siam (changed its name to Thailand in 1939) from Sri Lanka. Teravada is much more than religion here - it is a

Thailand

Bangkok is a magnet for people of all kinds of tastes and preferences. Museums, galleries, temples and local restaurants are attractions that lure tourists from around the world

vana (sweet and sour fried fish) or Hu-chalama (stewed shark fin). In a recent survey of 1,450 tourist agencies from 46 countries Thai cuisine has been ranked fourth in the world in terms of diversity, behind French, Italian and Chinese cuisine. With so many different spicy dishes and a rich variety of tastes and aromas, Thai cuisine is one of the most diverse in the world. Thais are artists when it comes to decorating a meal. They are creative and use a lot of vegetables, fruit, delicacies from the sea and little pieces of

CorD | April 2004

way of life. Thais bless everything they create with the name of Buddha: a house, a boat or a plane bound for its first take off. There are at least 400 Buddhist temples in Thailand, dominated by the Temple of the Emerald Buddha, a monument to the long tradition of the Thai monarchy. The temple was dedicated in 1782, on the day King Rama I ascended to the throne. The reigning king, Bhumibol Aduliadei (Rama IX) has ruled since 1946 and is beloved by his countrymen. Bangkok is a magnet for people of all kinds of tastes and preferences. Museums, galleries, temples and local restaurants are attractions that lure tourists from around the world. Thailand is also the most popular destination for sex-tourism in the world. Large numbers of mostly middle-aged foreign tourists come to Thailand looking for Patpong, the red light district of Bangkok, and its numerous offshoots countrywide. Prostitution brings Thailand 25 billion US dollars every year, says an International Labour Organisation (ILO) report. ILO claims more than 1.5% of the female population is involved in prostitution. According to the results of a recent poll by the Bangkok Post, a leading Thai daily, many prostitutes would like to leave Patpong. In their dreams, they see themselves with the smiling face of the leading character in the Hollywood movie hit "Pretty Woman", played by Julia Roberts. They close their eyes, expecting a happy ending to their fantasy.â&#x20AC;˘

RENAULT TO PARTICIPATE IN THE CAR FAIR Renault will be participating in the international car fair due to take place in Belgrade from March 26th until April 4th. The staff at the Belgrade branch of this world renowned car producer have informed us that they will be exhibiting the entire Megan line including the attractive Megan Cabrio Coupe model. The latest models from Renault's "delivery" line will also be on display. Renault representatives cordially invite the readers of CorD magazine to visit their stand, where they will be provided with detailed information about the sales conditions for this exciting new range of cars. TEN MILLIONTH DIALYSER PRODUCED Hemomed is one of the oldest subordinate companies of the Hemofarm concern that has been producing dialysers and accompanying material for dialysis for 22 years. The Dialyser production technology that has been used by Hemomed is at the highest world level. In dialysers treatment only natural media (water, steam

and air) are used, so that there are no side products. On Monday, March 1st, 2004, Hemomed produced the ten millionth

dialyser. Half of this number has been placed on the foreign market. By obtaining the CE Mark in 1997, the European Union market became open for the Hemomed dialysers. Just a couple of days earlier, Hemomed reinspection was carried out by the SGS Yarsley of Britain, a highly renouned inspection institution, and the worldâ&#x20AC;&#x2122;s largest, with a presence in 140 countries. The CE Mark certificate was completely renewed ensuringcompatibility with the 93/42/EEC Order. EVERY DAY FROM BELGRADE TO FRANKFURT AND MUNICH From March 29,2004. Lufthansa will have a direct flight-LH 5313, between

Belgrade and Frankfurt. Lufthansa will have a morning flight from Belgrade at 06:40, returning from Frankfurt at 21:15 on flight LH 5312. Lufthansa will continue to fly twice a day from Belgrade to Munich at 12:55 -flight LH 3401, and at 17:05 with new LH 3403 flight. Return flights from Munich are every morning at 10:55 flight LH 3400 and in the afternoon at 15:00 flight-LH 3402. With these additional flights, the overall number of flights from Belgrade

to Frankfurt and Munich will rise to 21 per week, enabling passengers from Serbia and Montenegro to have better connections in one day, without having to obtain a transit visa for many European and worldwide destinations.

The Iranian Cultural Centre

Do You Speak Persian?

Culture

By Danica Vein Photo Djordje Popovic

The Iranian Cultural AttachĂŠ, Mr. Gholam Vafaei, talks about language courses, publications and other interesting events in the busy life of the Iranian Cultural Centre in Serbia and Montenegro. In today's world, distance is more a matter of communication than of spatial relations. The Iranian Cultural Centre in Belgrade confirms this in practice through their activities based on the principle - the importance of being present without being assertive.

n evening class in Persian, followed by the latest Iranian film at the Belgrade Film Festival topped by a taste of Iranian cuisine at the Intercontinental was an interesting way to spend an evening in Belgrade this winter. The fact that there is such a wide variety of cultural activities and opportunities to experience Iranian customs and traditions in Belgrade might be somewhat unusual and surprising, but it is certainly no coincidence. This is something Gholam Vafaei, the Director of the Iranian Cultural Centre in Belgrade and the Cultural AttachĂŠ of the Iranian Embassy to Serbia and Montenegro can tell us more about.

CorD | April 2004

"Very little was known about Iran and its people here some 10 to15 years ago", said Vafaei, at the beginning of his interview with CorD magazine in the new premises of the Iranian Cultural Centre in Solina Street, Dedinje. The White Palace is near by and even closer is the dilapidated building of what was once Tito's military headquarters, which has been in its present state since the bombings five years ago. Mr. Vafaei first came to Belgrade during the wartorn decade of the 1990's. He is now approaching the end of his second mandate, which makes him eligible to compare the extent of cultural links

The Iranian Cultural Centre

Culture

treasure chest to the world and allow other nations to experience at least part of what countless generations have created", explains Mr. Vafaei, who has specialised in philosophy and has the reputation of being an admirer and pundit of fine arts and literature. He sees culture as an important link between peoples and nations. "Cultural links are of vital importance", he says. "It is much easier to uphold a political dialogue when these links already exist. Culture holds within itself the same kind of universality contained in love and faith, which are both limitless categories. This is the reason why they serve to ease political tensions and pressure. CorD magazine and the Iranian Culture Centre act in that respect, each in their own way". The basic goal of the cultural Improved cultural relations do much to keep centre in any country is to help the positive political relations the two nations befriend each between the two countries both past and present. other. Over here, this means presenting Iran to "I came here at a most dire moment for this counthe Serbian public and introducing the Serbian try, when the war with Croatia had just broken out. culture to the people of Iran. Mr. Vafaei says that There were continual shortages of essential goods Iran and Serbia have had excellent political relaand the streets were full of people striking and tions during the past few years, making it much demonstrating. The activities of our newly estabeasier to strengthen ties within the domain of cullished cultural centre were limited under such contural exchange. On the other hand, improved culditions. The difference between then and now is tural relations do much to keep the positive politenormous. Serbia has embarked upon a reformist ical relations between the two countries on a stacourse and is taking great steps to open up to the ble footing. world, which was not the case back then", said Linguistic knowledge is the prerequisite for Vafaei, who has journeyed across the entire globe communication, which is why every Iranian culturbetween his two mandates in Belgrade as Head of al centre organises Persian language courses. Due the Office for Co-operation with Europe and to the rising popularity of Iranian cinematography America in Teheran. worldwide, the cultural centre also assists in proTwelve years of living and working in a foreign viding opportunities for Iranian films to be seen by country is not so very long, but long enough to take an international audience. Other activities are cusessential steps towards creating a firm foothold for tomised to the interests and tastes of the environcultural representation, establishing contacts with ment in which the culindividuals and institutions and making an assesstural centre operates. ment of the cultural needs, tastes and interests of Serbian too difficult the wider population in the host country. The Cultural Centre has succeeded in doing "Unfortunately, I have failed to master the Serbian lanthis, mostly owing to the agility of its management guage since it is a very difficult language to learn and I have team and the strategy of the Iranian state. The not had enough time to give it my full attention", says Mr. Islamic Republic of Iran has cultural centres in over Vafaei adding that, unlike Serbian, the Persian language is 60 countries throughout the world. not so complicated. "After 6 months of studying Persian, a "Iran is a big country with a population of 70 million and 10,000 years of civilisation behind it, person can comfortably engage in a simple conversation", one of the longest in the history of humankind. It is the Head of the Iranian Cultural Centre assured us. only natural that we want to open up this cultural

CorD | April 2004

The Iranian Cultural Centre

Mr Gloham Vafaei - Culture is an open link between peoples and nations

Culture

In some places there is an interest in calligraphy and hence courses are organised. In Serbia and Montenegro, the primary interest is in Iranian poetry and literature. "At present there are 150 students attending free courses in the Persian language, organised in regular cycles and at four levels of proficiency. The fact that there is not a high demand for the Persian language on the world market speaks volumes about the enthusiasm and genuine aspiration of the people here to acquaint themselves with Iranian culture", says Vafaei. The Persian language also forms part of the curriculum at the Faculty of Philology in Belgrade and the lecturer was provided by the Iranian Ministry of Culture. Publishing is yet another of the Iranian Cultural Centre's flourishing activities. The Centre publishes books within the fields of culture and the arts, as well as other thematic areas such as carpets, calligraphy and poetry, while the latest title will guide us through "The Secrets of Iranian Cuisine". A specialised quarterly magazine on culture and Islamic themes entitled NUR is also available to the public in Serbia and Montenegro. The Head of the Cultural Centre added that they also organised various kinds of public gatherings and conferences. Last year, pundits were attracted by the seminar on the similarities and differences between Orthodox Christianity and Islam. One could possibly conclude that an open dialogue was of greater importance than whether or not the discussion addressed the differences or similarities. A different environment, continent, civilisation, religion, country and people - so many differences and yet so close to hand. In today's world, distance is more a matter of communication than of spatial relations. The Iranian Cultural Centre in Belgrade confirms this in practice through their activities based on the principle of "the importance of being present without being assertive".â&#x20AC;˘

CorD | April 2004

Budva in my heart Mr. Gholam Vafaei is the Iranian Cultural Ambassador to the entire territory of Serbia and Montenegro, which is why his activities and duties often take him to various parts of our country. He singled out his trip to the sea as his favourite travelling experience in Serbia and Montenegro. "Our family trip to Budva is something I will never forget and the photographs we took during this vacation will be a precious memory in our photo album", said Mr. Vafaei. A stroll by the Danube Asked what he did in his free time, Mr. Vafaei said that books and bookshops were at the top of the list. "I dropped by the Plato bookstore the other day. I love the atmosphere there since it reminds me of the big bookstores in Teheran". Mr. Vafaei also enjoys going for walks along the promenade by the River Danube. Mr. Vafaei's younger son, a high school student, lives with his mother and father in Belgrade, while his older son is studying at the University of Teheran. The youngest member of the Vafaei family does not spend much of his leisure time like most of Belgrade's youth - in cafes and nightclubs. The reason for that may lie in the fact that he does not attend a regular school, but has special classes organised by the embassy.

Kalemegdan

Belgrade's historical treasury Strolling along at a leisurely pace, you will realise that each monument tells its own story about each area of the park, Uptown and Downtown and Little and Big Kalemegdan and the historical events that unfolded here. You can imagine the Celts and Romans building their forts, or Byzantine emperors renovating their fortresses after destruction by the Huns. By Maja Vukadinovic Photo Branko Jovanovic

ll Belgrade roads lead to Kalemegdan! Regardless of whether you are discovering our capital as a tourist or through the eyes of one who intends to spend a longer time in Belgrade, your first encounter with this milieu will take place in Kalemegdan. Your impressions of the city will take form only after having visited Belgrade's fortress, the place to which every visitor will always return time and time again, ever curious to peer into each of its elusive nooks and crannies. For Kalemegdan reminds us of Belgrade's historical treasury - an area of around 53 hectares where ancient times are interwoven with symbols of the present, monuments and summer gardens interlaced with gate-

You will recognise the Victor sculpture as one of the main motifs from the postcards of Belgrade you will see on sale throughout the city. This city symbol, the work of sculptor Ivan Mestrovic, was erected in 1928 to mark the tenth anniversary of breaching the Thessalonica front. ways from the Turkish era and sports grounds. So, let us set off at on leisurely stroll... As soon as you leave Knez Mihailova Street and step onto the Kalemegdan footpath, you will feel that you have entered a time machine which has taken you back to the time when the Turks named this area of strategic importance "the hill of contemplation". In their time, a deserted city field stood in the place the park now occupies, CorD | April 2004

Belgrade's treasury

Kalemegdan

CorD | April 2004

Kalemegdan fortress the field Kalemegdan was named after (kale-town, megdan-field). Moving slowly on, passing by benches where pensioners play chess and women sell embroidered tablecloths and souvenirs, you will come to the realisation that each monument tells its own story about each area of the park, Uptown and Downtown and Little and Big Kalemegdan and the historical events that unfolded here. You can imagine the Celts and Romans building their forts, or Byzantine emperors renovating

As soon as you leave Knez Mihailova Street and step onto the Kalemegdan footpath, you will feel that you have entered a time machine which has taken you back to the time when the Turks named this area of strategic importance "the hill of contemplation". their fortesses after destruction by the Huns or Despot Stefan Lazarevic who gave it form. On visiting and becoming better acquainted with Kalemegdan, it will no longer surprise you why this fortress, which has been reconstructed several times throughout history, was once one of the most important military fortresses in Europe. After such an abundance of information and historical facts you may wish to stop and catch your breath next to the Borba fountain, where parties were often held during the period between the two World Wars. On Sundays, on this very plateau, Belgrade's young ladies and gentlemen would dance to the sound of waltzes ... Not very far away monuments and statues of well-known personali-

ties line up to greet you and further on, the path leads to the symbol of Serbian and French friendship - the female statue in bronze represents France, who is rushing to the aid of Serbia, sword in hand. The monument expressing Serbia's gratitude to France is a work sculpted by Ivan Mestrovic and today it reminds us of the closeness between the two countries during the First World War. You may wish to spend an afternoon in the Military Museum, observing the extensive collection of weapons from all periods or exploring the exponents - the cannons and tanks which are exhibited outside. You might admire the octagonal Baroque building, built during the Austrian occupation - the Sahat (Watch) Tower named after the clock which adorns its very top. If you are tempted to delve deeper into times gone by, you should visit the museum exhibition dedicated to the history of Belgrade's Fortress. The curious eye will certainly not miss the Roman well, 62 meters deep, and if you are a lover of architecture you will notice the building from the 19th century, built in Balkan style, which houses the Institute for the Protection of Belgrade's Cultural Monuments. You will recognise the Victor sculpture as one of the main motifs from the postcards of Belgrade you will see on sale throughout the city. This city symbol, the work of sculptor Ivan Mestrovic, was erected in 1928 to mark the tenth anniversary of breaching the Thessalonica front. This vantage point offers a fascinating view of New Belgrade and Zemun and it comes as no surprise to hear that it is one of the most frequently visited spots in Kalemegdan, especially in spring and summer.

Today the tower houses the observatory Watch the merging of the Sava and Danube rivers and enjoy... You could also take a break on one of the benches next to the monument dedicated to Despot Stefan Lazatevic, the first Serbian ruler to make Belgrade its capital city. Despot's Gateway and Dizdar Tower will take you back to medieval times - the main entrance to the fortress was on this very spot. Today the tower houses the observatory, another challenge for the curious visitor. You should continue down the cobbled path towards the Zindan Gateway, recognisable by its towers, cross the wooden bridge and .... make the acquaintance of the modern part of Kalemegdan. You can pop into Kalemegdanska Terasa for lunch or dinner or spend a summer evening watching a theatre performance in the beautiful garden. The Oh, Cinema club is also to be found here, a place where guests enjoy live music late into the night. Many Belgraders will say, and rightly so, that one of the most beautiful areas in Kalemegdan is that around Ruzica Church, built on the same spot

The childrenâ&#x20AC;&#x2122;s favourite, the fun fare is also

which once housed a gunpowder warehouse in the 18th century. No matter what time of day you choose to visit, you will always find a large number of visitors outside St. Petka Chapel. The church was built in 1937 above a well which is still believed to possess magical powers and where, according to tradition, there used to be a small church which housed the relics of Saint Petka during the reign of the Serbian Despots. The hill beside the chapel leads to Downtown, famous for the medieval ramparts which have been well preserved. Here you will find the Charles VI gateway (in whose name the renowned Eugene of Savoy conquered Belgrade in 1717), the Vidim gateway, the Topolivnica (canon foundry) and the most important place within the ramparts, Nebojsa's Tower, which was converted to a prison in the 18th century, where the Greek poet, Rigas Pheraios was killed. Here you can stop and take some exercise in the same place where, two centuries ago, just like today, a wide variety of sporting and cultural activ-

You can pop into Kalemegdanska Terasa for lunch or dinner or spend a summer evening watching a theatre performance in the beautiful garden. The Oh, Cinema club is also to be found here, a place where guests enjoy live music late into the night

Belgrade's treasury

Kalemegdan

ities took place. This landscape has been revived during the past few years thanks to the Barutana club which has become a vital part of city night life and the place where many interesting club and cultural events are held. The fact that Kalemegdan is synonymous with the affirmation of culture is confirmed by the numerous exhibitions which have been held in the Cvijeta Zuzoric Art Pavilion since 1928. Just the place for art lovers nearby - a visit to some of the local and international exhibitions held there are a must. Alone, or in the company of your little ones, you could spend Sunday afternoon at the zoo which spreads over 6 hectares housing around 2,000 animals and 200 animal species! The children's favourite, the fun fare, is also nearby. You can spend your free time playing mini golf, tennis or watching a basketball game in little Kalemegdan. One of the interesting stories you will hear is the one about the legendary dances which took place right here on these courts during the 50's and 60's... If you still have any energy left, dive into the Kalemegdan night in popular clubs such as "Undergraund" and "Sargon" which borrowed the locations of former underground passages for their interiors...â&#x20AC;˘

CorD | April 2004

Out of Town

Blossom farm By Katarina Murar, Photo Dragan Milosevic

Tourists, our hosts Ivan and Goran Gabric assure us, are delighted with village tourism on the farm. When the Grubic family inherited this land between Palic and Hajdukovo in the nineties, they had no plans to get involved in the tourist trade. Their first guests were friends and business partners. There was talk of village tourism so they decided to give it a try. 80

CorD | April 2004

he tinkling bell announces the arrival of two proud horses, Tajson and Breza, confidently pulling a black shiny carriage up to the old sweep. We have arrived in Cvetni and Majkin salas (Blossom and Mother's farms), one of the latest tourist attractions in Serbia. We are in the north of Vojvodina, in the Backa region, close to the town of Subotica, very near Lake Palic. Life is slowly returning to these farms, the Balkan version of an American ranch, where the local farmers once grew corn and wheat, raising cattle and sheep and breeding thorough bred horses on the rambling Panonian fields. There are many farms in Vojvodina. Along the road that takes you from Novi Sad to the Hungarian border, they are like an oasis in the desert, but they are mostly deserted now. Gone are the idyllic houses and yards which were once swarming with people and bustling activity.

Out of Town

In order to reach those Subotica farms, transformed into a Mecca for modern nomads, you should leave the Belgrade-Subotica motorway at the exit for Palic, then from Palic turn off the main road onto the country road to Hajdukovo. A short drive down the village road will take you straight to Blossom and Mother's Farms. Tourists, our hosts Ivan and Goran Gabric assure us, are delighted with village tourism on the farm. Under the chilly March sun a flock of geese swagger over the cobbles, cackling as though in an attempt to draw our attention away from the idyllic picture before us: a pair of white swans, undaunted by the racket made by a group of curious children, bravely make their way towards the small lake. This becomes a fish farm during the summer where patient fishermen are able to catch their own lunch. The canal, designed to drain the moist land, meanders through the ranch. One part has been made into a fish farm, where the fish are fed all year round and the fishing season lasts from spring to autumn. In the summer, mosquitoes aside, this is a paradise for the avid angler. If the local fishermen are to be trusted, the greatest catch was a 9.8 kg carp. Blossom Farm is easily recognisable by its unique wooden terrace decorated with carved flowers. When the Grubic family inherited this land between Palic describes what is on offer, Backa's platter: two or and Hajdukovo in the nineties, they had no plans to three kinds of salami, thinly sliced ham, pancetta get involved in the tourist trade. To keep the luscious and black pudding. The sour cabbage spiced with soil fertile, they planted apple trees and then they paprika or pickles goes very well with the crusty renovated the old dilapidated house and farm, bread and cheese. And everything is washed down adding a tower and terrace in keeping with Palic with vine, which is again, homemade. This is only architectural style. Their first guests were friends to keep you going until the pork drops and doughand business partners. There was talk of village nuts are ready, to which the guests here help themtourism so they decided to give it a try. Today the selves from a wide metal pan, filling them with farm also has a selection of farm animals alongside their choice of home made apricot jam or sugar. the orchard and fish farm. The Gabric family have When there is snow on the ground, the tourists also built another, Mother's Farm, nearby. They are taken on a tour of the have guests throughout the year. This is an unfor- Tourists are delighted with village tourism on the surrounding area by horse-drawn sleigh, in farm. Under the chilly March sun a flock of gettable experience regardless of the season. geese swagger over the cobbles, while a pair of spring the same tour is made by horse and carWaiters, dressed in white swans bravely make their way towards riage. Riding through the local peasant costumes, the small lake. This becomes a fish farm during plains of Vojvodina is a welcome guests with home made apple the summer where patient fishermen are able to genuine thrill, but only for the experienced rider catch their own lunch. brandy, which can also or perhaps those who plan a longer be served warm and is stay and opt to enrol in the riding school. Apart from the big guaranteed to take the chill off and give you an horses, there are also a few ponies in the corals and stables. Our appetite for the local breakfast. While sausages are stay was marked by the arrival of a newcomer, a freckled foal being made on the massive wooden table, delicawho had not yet been christened. This farm has, over time, cies are served in the open shed. The menu CorD | April 2004

Out of Town ple, lawyers by profession, who have been coming to the farm for years on what is for them an active holiday. The first time they expressed an interest to work in the fields our host gave them some gloves as a gift. Now they come fully equipped and do not wait for instructions, but go off on their own to continue the weeding. This year the Gabric family will begin bio-planting. Their idea is to grow vegetables without the use of chemical aids so as to be able to offer their guests genuine organic food as well as the opportunity to make their own pickles while they are on holiday. On cold days the guests are offered mulled wine to warm them up after a brisk walk and by then it is already time for lunch. Sunday lunch starts with soup with home made noodles followed by the local speciality, soup meat with tomato sauce. The menu is flexible and can be adapted to suit individual tastes. Not to be missed are specialities such as lamb stew with pasta, cockerel stew with dumplings, chicken and potato casserole, beef served with home made cheese pasta, pork stew and home made sausages and the bean broth is full of surprises. Special requests are accepted and it is not unusual for guests to take some of their favourite dishes home. Lunch is rounded off by yet another Vojvodina speciality, poppy seed, walnut or apple strudel. Local tamburitza players will help you to relax after such a good meal with their extensive reper-

Guests seeking refuge from the city's hurly burly are offered accommodation at Blossom Farm and Hotel Lira. The guest rooms are all named after flowers: iris, rose, orchid and tulip.

become a real animal farm with rabbits, geese, ducks, hens, pigeons and, of course, dogs and cats. For those unwilling to experiment with the hazards of horse riding, a long walk will provide a pleasant substitute. Half of the twenty acres of land belonging to the farm is covered with apple and plum trees. Although not included in the tourist package as a compulsory activity, visitors are welcome to try their hand at farm work. Ivan Gabric has already made friends with a married cou-

CorD | April 2004

toire of regional folk songs. The main attraction, however, is the apple brandy which is homemade, produced from the abundance of apples in the nearby orchard. It is sold to the tourists as a reminder of their stay at the farm and the production of apple juice and homemade wine is also underway. The Gabric family also own the family hotel, Lira, in Palic. Guests seeking refuge from the city's hustle and bustle are offered accommodation at Blossom Farm and Hotel Lira. The farm was not initially meant for overnight stays, but has been converted into a guest house in response to the increasing demand. The guest rooms are all named after flowers: iris, rose, orchid and tulip. The rooms are individually decorated with different flower motifs including mosaics on the walls and floors in the bathrooms. All guests have access to the kitchen, dining room, TV room, football pitch and volleyball court as well as the open air pool in the summer. Lake Palic and Blossom Farm are only a two hour drive from Belgrade. You can just drop in at the farm for an hour or two or opt for a longer stay; however, one thing is for sure, you will always want to come back. â&#x20AC;˘

Belgrade Directory

Theatres, Music & Museums

THEATRES • ATELJE 212, Svetogorska 21, tel. 324-7342 • BEOGRADSKO DRAMSKO POZORISTE, 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 • JUGOSLOVENSKO DRAMSKO POZORISTE, 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 • KAMERNA OPERA MADLENIANUM, Zemun, Glavna 32, tel. 316-25-33 • POZORISTE NA TERAZIJAMA, 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 | April 2004

CULTURAL CENTRES • BRITISH COUNCIL, Terazije 8, tel. 3023-800 • CENTRE FOR CULTURAL DECONTAMINATION, Bircaninova 21, tel. 681-422 • STUDENTSKI GRAD CULTURAL CENTRE, Bulevar AVNOJ-a 179, tel. 2691-422 • BELGRADE YOUTH CENTRE, Makedonska 22, tel. 3220-127 • DOM VOJSKE JUGOSLAVIJE, Brace Jugovica 19, tel. 323-99-71 • FRENCH CULTURAL CENTRE, Zmaj Jovina 11, tel. 3023-600 • GERMAN CULTURAL CENTRE, Knez Mihailova 50, tel. 2622-823 • ITALIAN CULTURAL CENTRE, Njegoseva 47/III, tel. 244-23-12, 444-72-17 • KULTURNI CENTAR BEOGRADA, Knez Mihailova 6/1, tel. 621-469 • INTERNATIONAL CULTURAL CENTRE - JUBIN, Terazije 26, tel. 687-836, fax. 687-760 • RUSSIAN CULTURAL CENTRE, Narodnog fronta 33, tel. 642-178, 688-300 • REX, Jevrejska 16, tel. 3284-534 • STUDENTS CULTURAL CENTRE, Kralja Milana 48, tel. 659-277 • FOUNDATION OF ILIJA M. KOLARAC, Studentski trg 5, tel. 630-550 • GUARNERIUS, Dzordza Vasingtona 12, tel. 33-46-807 EXHIBITION GALLERIES • GALLERY OF 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 OMLDINE 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

Foreign books in Belgrade

Global bestsellers By Slobodan Kostic, Photo Dragan Milosevic

It is understandable that English is the dominant language, but depending on the interests of our readers we do purchase publications in French, Italian, German and Spanish. We have an excellent working relationship with French publishers and we sell their publications at twenty percent lower than the retail price in France.

CorD | April 2004

hose of you who live in Belgrade but do not speak Serbian usually spend hours rummaging through piles of books on street stalls or bookstore shelves before giving up and accepting the fact that there are no new foreign publications to be found. The same can be said of the majority of libraries, where instead of Julian Barnes, Paul Auster, Hanif Kureishi, Martin Amis, Nick Hornby, Maragaret Attwood and others from the pleiad of leading world writers whose works you would like to read, you will find the yellowing pages of Agatha Christie, D.H. Lawrence, Aldous Huxley, Christopher

Books in Belgrade

The bookstore stocks around seven thousand titles and that number varies

ion, sport, sociology, political science, astronomy, Isherwood, Robert Graves, Graham Greene and astrology, psychology, animals etcâ&#x20AC;Ś In addition to other authors you read a very long time ago. books intended for the wider reading public, we also Long years of isolation and war, resulting in forhave professional literature from different fields". eigners giving this city a wide berth, have had a devThe publishing house, Plato, have opened a new astating effect on the offerings of publishing houses bookstore in Knez Mihajlova Street, which deals dealing with the distribution of original publicaexclusively with foreign publications. They also tions. The slow establishment of links with the have a wide selection of titles from a variety of world which has begun over the past few years and fields ranging from art, through to geography and the subsequent return of international cultural coopdictionaries to fiction and professional literature. eration have only partially altered such a gloomy "We are trying to become the best book store in the picture. There are still only a couple of bookstores in region", Marko Srdanovic, head of foreign publicaour capital city where it is possible to buy new pubtions in Plato, described the company's ambitions. lications in English, German, French and other "At the moment, our bookstore stocks around world languages. seven thousand titles and One of the biggest is certainly the Mamut There are still only a couple of bookstores in our that number varies depending on orders and megastore bookstore in capital city where it is possible to buy new demand. It is underRajiceva Street, opened publications in English, German, French and standable that English is the dominant recently by IPS, the leadother world languages. language, but depending on the intering distributor of foreign ests of our readers we do purchase publications in the counpublications in French, Italian, German and Spanish. We have an try. You can find tens of thousands of titles in foreign excellent working relationship with French publishers and we languages here. "We are trying to follow and keep sell their publications at twenty percent lower than the retail up with everything of significance in world producprice in France", said Srdanovic. tion", explains Vesna Tomic, head of foreign publiPlato is trying to present the public with all genres and subcations at IPS. "Apart from fiction and global bestgroups. "In addition to the large number of new titles from popusellers, we also have reference books from different lar fiction and award-winning authors, we are also proud of our fields, dictionaries and language study books, cartospecialist offer of comic strips, historical literature (especially graphic publications and children books. The referregarding the Second World War) science fiction, horror, humanence section includes titles dealing with architecities and social science", said Srdanovic. More than a thousand ture, the arts, history, design, graphic design, cookpeople visit this bookstore every day thus providing them with ery, music, tourism, photography, film, geography, plenty of opportunity to carry our market research and form a gardening, archaeology, business, marketing, fashCorD | April 2004

Foreign books in Belgrade

Books in Belgrade

clearer picture of what is in demand. "Every book has its own buyer. The demand for foreign publications certainly exists and it is conditioned by the openness of society and a global desire for knowledge. Apart from foreigners who are, by the very nature of things, the main consumers of this literature, young clients, brought up on foreign music, films, comics and popular culture show the greatest interest", concluded Marko Srdanovic. So, thanks to these two bookstores it is now possible to find global bestsellers such as John Grisham's The Last Juror, Mel Gibson's The Passion: Photography from the Movie the Passion of Christ, Dan Brown's Angels & Demons, Sarah Dunant's The Birth of Venus and Tom Perrott's novel Little Children. For those who are not satisfied with what is available in store, both Mamut and Plato offer an ordering service. Mamut provides the possibility of ordering certain titles regardless of where the book was published since their database consists of over three million books published around the world during the last several years. In addition to ordering the book of your choice, IPS also offers help with select- It is now possible to find global bestsellers ing and searching by means of key words. To make an order, you need to Readers wishing to gain some insight into what provide as much information about the book as is happening in Serbian prose are left to search for possible such as the title, the author's name, the the anthology of contemporary fiction in English, publisher and the ISBN code since those details The Man Who Ate Death, written by Mihajlo Pantic will help to find the correct title. However, you will and published by Serbian PEN or the French publineed to arm yourself with a large dose of patience. cation, Une anthologie possible de la nouvelle The dead line for delivery is four to six weeks for serbe, 1950-2000 selected by the critic and essayist European publishers and it can be as long as three Milivoje Srebar, professor at the Department of months for American ones. There is a way of ensurSlovenian Studies at Bordeaux University. For those ing much faster delivery, of course, but in this case with greater ambitions towards the literature of the the transportation charges of companies such as country in which they are residing, all that is left is DHL sometimes exceed the cost of the book itself. to wait until the next time In contrast to the few foreign writers whose For those who are not satisfied with what is avail- they cross the border. It may be a paradox, but it works can be read in able in store, both Mamut and Plato offer an their original form, the ordering service. Mamut provides the possibility of is easier to find works by contemporary Serbian works of local authors ordering certain titles regardless of where the writers such as Danilo translated into world book was published since their database consists Kiš, Aleksandar Tišma, languages are indeed a of over three million books published around the David Albahari, Svetislav rarity. At the Stubovi kulture bookworld during the last several years. Basara, Dragan Velikic, store only two titles by the only Nobel Radoslav Petkovic and Prize winner for Literature from this Vladimir Arsenijevic in the cities of Western region, Ivo Andric, The Bridge on the Drina and The Damned Yard Europe than in Belgrade itself just as leading forare to be found. The rest of the books on sale amount to an inadeign writers can be found in Belgrade's bookstores vertent selection of writers such as Vida Ognjenovic or Zoran translated into Serbian before they have been pubŽivkovic. In Belgrade it is impossible to find one of the most lished in their original form and that in itself tells important Serbian writers from the twentieth century, Danilo Kiš, us something about the spiritual confusion which in translation, but what is possible is to find books which even betstill reigns in this milieu.• ter informed readers have never heard of.

CorD | April 2004

Piracy

GREED AND AVARICE AMONG

PIRATE TRADERS

ommercial piracy in the film, video and music industries proliferated in the state union throughout the previous decade. Widely perceived to be a natural companion to the unorthodox practices that became the norm during the Balkan wars of the 1990s, public utterances of criticism were a rarity and claims that the practice was theft, quite simply, were equally unheard of. To add insult to the collective injuring of these industries, miscreants would often claim that they were providing an invaluable service to the public during difficult times - proclaiming themselves to be the Robin Hoods of the entertainment industry. Following the regime change of 2000 and the formation of Serbia-Montenegro, the state union began the process of integration into a world that frowned upon both unorthodox practices and their

By Nebojsa Grabez, Photo Stanislav Milojkovic

Piracy

With visibly fewer pirate traders on the streets of Belgrade and new laws being implemented to curb the trend even further, Nebojsa Grabez investigates commercial piracy in the new state union.

natural companions. Consequently, piracy was finally outlawed at a federal level and steps were taken to stamp out this once acceptable practice. According to Ms. Wendy MacCulham of the American company MPA - responsible for tackling commercial piracy in Europe, Asia and the Middle East - a great deal has been achieved in this area during the last year: This is my fourth time in Belgrade. I am very pleased that there are no longer kiosks in the city centre trading in pirated goods", she said. However, Ms. MacCulham's cursory observations do not reflect the sentiments shared by interested representatives of entertainment giants Warner Brothers, Columbia, Fox, Universal, Disney, MGM and Paramount, who insist that Serbia's new authorities must continue the fight against piracy by implementing a law CorD |April 2004

Piracy

to regulate the entertainment field as a whole. They suggest that companies in Serbia are still suffering. Retailers and distributors operating within the limits of the law and employing tax-paying citizens are seeing their profit margins imperilled by pirates contin-

Piracy

Warner Brothers, Columbia, Fox, Universal, Disney, MGM and Paramount, who insist that Serbia's new authorities must continue the fight against piracy by implementing a law to regulate the entertainment field as a whole. They suggest that companies in Serbia are still suffering

CorD | April 2004

uing to peddle their illegal trade.According to results presented by the Serbia-Montenegro Anti-Piracy Commission, local commercial pirates have left a trail of devastation across the state union. Domestic cinemas lost a projected seven million US dollars last year alone, with only half the predicted figure of patrons attending. . The video industry suffered losses of 12 million US dollars, while domestic music industry professionals estimate annual losses in excess of 20 million US dollars. From a consumer perspective, if one can buy the latest Nora Jones, Kylie Minogue or Sting release for between 120 and 150 dinars then it simply isn't logical to pay 1,200 dinars for a certified original; or even between 450 and 500 dinars for a domestically produced compact disc. These examples indeed illustrate the problems confronting music retailers, but MPA is also concerned about piracy in other areas of the entertain-

ment sector. One such field is domestic television, which has seen a widespread trend towards piracy as a direct result of Serbia's badly managed broadcast frequency system. However, according to Mr. Dejan Petricevic member of the Anti-Piracy Commission's senior board - success has been achieved in curbing this trend by employing â&#x20AC;&#x2DC;Big Brotherâ&#x20AC;&#x2122;-style tactics: "A monitoring system has been set up to watch all television stations in Serbia all of the time. Merely knowing that they are under observation and that video evidence of their broadcasts exists has been enough to decrease local television piracy by more than 50 per cent in just three months" For the moment, MPA has not signalled its intention to place Serbia on the "black list" of countries with piracy levels that harm major film companies. However, this does not equate to an increase in optimism amongst foreign partners. According to Mr. Milutin Randjelovic, head of the Anti-Piracy Commission, "there is no love in business". Importers have to pay and fight for the advancement of their industry. "Failure to do that will see the majority of distribution licenses issued to operators in neighbouring countries, which would see a shift in the entertainment business, leaving Serbia completely marginalised. Thus, the danger is that local culture will be led by somebody else," insists Randjelovic, adding that the solution lies in the adoption of federal Intellectual Property legislation that will provide officials with the power to function normally, try

cases and punish pirates. The commission president's message is reiterated by Ms. MacCulham, who believes that Serbia is at a crossroads and has to show whether it really wants to settle accounts with commercial piracy or concede defeat. Nevertheless, the MPA representative firmly believes that the final result will prove a positive one: "Serbia-Montenegro is a beautiful country. I have enjoyed my visits here; made friends, met colleagues

scene over the past twenty years, but the obvious popularity of the group has not been reflected in sales of their music. According to company HI-FI, a measly 2,500 registered copies of the band's latest album, aptly entitled Greed and Avidity, were sold last year, despite the fact that in excess of 40,000 fans attended concerts promoting the album across Serbia. "Purely by chance I was at St. Naum on the Albanian border, where I happened to see that they

and sampled the excellent cuisine. Yet, I hope there will be no need for me to visit anymore." Despite Ms. MacCulham's optimism that the problem of piracy will be remedied by legislation, after fifteen years of piracy that has robbed them of

were buying our cassettes," said Cane. "Had we been selling 2,500 cassettes that one would have never reached St. Naum. Adding to Partybreakers' woes, even registered firms have taken to abusing the legal loophole that fails to protect artists. A marketing agency hired by Serbian mobile phone company Mobtel recently opted to employ the distinctive phrase "One call changes everything" - a highly recognisable lyric from the popular Partybreakers song Thousand Years. Of course, this was done without the consent of the band. An obviously infuriated Cane says: "That was done by a kid who thinks he's smart and has proved his cleverness by exploiting our lyrics at a time when nobody can do anything to him. I have been persuaded to sue them, but how can I do that when I don't have that right?"â&#x20AC;˘

"At this moment Serbia is at a turning point. It has to show whether it really wants to settle accounts with piracy or concede defeat." the profits of their trade, there are those at the end of their proverbial tether. "I don't expect anything until I receive something," says Cane, Partybreakers' front man. Partybreakers have proved to be one of the most prolific rock bands on the Serbian music

Piracy

CorD | April 2004

Techno Talk Elonex eXentia www.elonex.co.uk A fine computer for modern sensibilities. It's not only good-looking enough to fit into the most chic of contemporary lifestyles. It's powerful enough to run a small country. At night, when your work is over, the fun really gets going, and its home entertainment abilities come to the front. Price: € 3000

Sony GigaPocket PCVA-HVP20 www.sony.co.uk With Archos screaming away into the video jukebox sunset with its 80GB AV380, Sony just couldn't resist having a pop at the Gallic jukebox with a video jukie of its own. The 20GB HVP20, with its 3.5in colour display, looks more like a portable TV than a cutting-edge video jukebox and, being a Sony, you can bet it won't have the Archos' ability to rip DVDs, either. It's a pretty nifty product but we don't reckon it's Sony's iPod killer. But don't worry, that'll come… Price: €tbc

BMW SlideCarver www.bmw.co.uk You've always wanted to travel to work in a BMW. After careful earnings examination, you've reluctantly struck the X5 off your list. Then the M3 and then, regrettably, one of BMW's fancy motorcycles. You've finally admitted that all you can afford is this three-wheeled scooter. Ultimately, you are the winner because this is a fine machine. An evolution of the StreetCarver slalom board, the SlideCarver is the finest piece of scooter engineering we have ever seen. From the sculpted aluminium deck to the suspended front wheel to the pivoting rear wheel arms with their tiny disc brakes, the SlideCarver is a vision. Slick tyres ensure that, like BMW drivers on the road, you'll demand every inch of the pavement for yourself. Price: €700

CorD | April 2004

Techno Talk Karma

www.rioaudio.com

After a short break, Rio is back on the MP3 player scene-but how will one of the original digital audio player manufacturers make an impact on what is now an incredibly crowded market? It has to take on the iPod, of course, and that is exactly what the Karma is gunning for. It's a 20GB jukebox that, like the 20GB iPod, can store approximately 5000 songs. The Karma is squarer and thicker than the iPod at 68x76x28mm, weight about the same, and is decked out in a tasteful if understated gray and black outfit. Rio's new signature styling cue - a bright red navigation nipple - features prominently in the top right hand corner. The ability to crate and modify playlists on the move, as well as an Ethernet-linkable docking station, make the Karma a product to look out for. Expect a full test very soon. Price: € 280

Parrot's DriveBlue www.expansys.com As of 1 December, using a Bluetooth headset at the wheel is likely to get you into bother with the fuzz - a Bluetooth handsfree kit like Parrot's DriveBlue will make your natterbox a law-abiding carphone. It plugs into your cigarette lighter socket, can be voice activated and pairs with up to six phones. Handy for those cars it takes six people to drive. Price: €180

HP Scanjet 4670 www.hp.com/uk Here's different. Scanners have rarely sent the blood coursing through anyone's veins; indeed their functional flatbed design has often been an aesthetic anesthetic. But this is one you won't mind showing off to the friends. It's vertical, for a start, so it doesn't take up so much desktop. Its verticality also lends it an alluring slimness. And, especially sexily, it's see-through. Hmmm…bit of a stunner-good in practice, too, since you can see exactly where you're putting whatever you put through it, be that paper, negative or slide. So that's sexy, slim, naked, easily read and open-minded. Price: €270

CorD | April 2004

Techno Talk Porsche Mocean www.porsche.com There appears to be some rivalry among German automotive engineers to create exotic versions of familiar products, and it goes beyond heavily overengineered pushbikes. BMW has just released details of a new scooter to go with its highdesign skateboard and the VW group has made a Lamborghini, of all things. At Porsche, the factory floor bin has been raided and propelling pencils have been clicked: the result is this convertible toboggan, to back up its existing, more traditional sledge. Yes, it's an extremely expensive version of those cheap plastic things toddlers clutter up every ski resort nursery slope with. But you can remove the brakes on the side to turn it into a bodyboard for surfing. Really useful, then. Price: €375

SMC Universal Wireless www.smc-europe.com If you've accrued a vast array of digital music and movie files on your computer and want to experience them in your lounge, you have two options. You can either connect a lengthy cable between your PC and home entertainment set-up or you can use your existing Wi-Fi network to stream files to the SMC Wireless Media Sender. Who needs a PC in the living Room? Price: €350

O2 Digital Music Player www.o2.co.uk You can fit about 10,000 songs on an iPod. You can only fit around 60 songs on O2's DMP. So what's the big fuss? Well, because the DMP downloads songs from a vast 100,000-song database, your options are close to limitless. Due to sound quality, strong limitations and the slow speeds of the GPRS network, this isn't the player that's going to change the world. But in years to come, it will have a venerable position in another gadget family tree, sitting directly about the 3G iPod, the ultimate jukebox that combines quick downloads and massive local storage. Price: €tbc \sda

CorD | April 2004

Techno Talk Samsung HomePAD Internet Fridge www.samsungelectronics.co.uk LG forged the path but Samsung was quick to follow and, with a fast wireless connection, its fridge-with-a-screen is a lot more credible than the first LG one, which limped along through an old 56K modem. The idea here is that the PAD (essentially a web table) sits on the fridge door with a camera, and you can leave video messages for flatemates instead of scrawled Post-its under the fridge magnets. The PAD can also be removed and used separately. Price: € 9000

Wewa Dolphin WMP-317e Plus www.intomusic.co.uk The market's awash with flash-memory MP3 player these days, so it takes something special tostand out from the crowd. Calling your company 'Wewa' is one way to do it. Another is to cram in every feature and function anyone could possibly need and charge just 170 for it. The 317e is a 256MB player that doubles as a USB memory key, hence the drag-and-drop Windows interface-but it's not content to leave it at that: it also features direct encoding, so even those lacking the grey matter to work out that the CD-ROM drive isn't a cup holder can easily transfer tracks onto it. It's got an FM radio as well. Price: € 170

Nike lgnite www.nikegolfeurope.com If, unlike us, your golf skills go further than pressing buttons on a PlayStation controller, then this new golf club could be for you. The Ignite driver, used by Tiger Woods apparently gives unequalled controle and workability. Thanks to a new kind of metal, NexTi, the driver is stronger and lighter and has a unique head design that expands the sweetspot. Price: € 480

CorD | April 2004

Easter

Joy in the Family By Tanja Solunac

Easter

he latest rumour that an egg from the Romanov dynasty collection, made by the famous Parisian jeweler FabergĂŠ, would be up for sale at Sotheby's recently was of considerable interest and excitement to collectors. Though not on the same international scale, Belgrade also has an auction of Easter eggs that is unique and rouses equal excitement among its participants. Unlike Sotheby's, this auction has the added flavour of local tradition and takes place every year, and while the famous auction house has a FabergĂŠ egg on offer, those auctioned in Belgrade are also masterpieces of creativity. The preparations for celebrating the Easter holidays in Orthodox Christian homes is an authentic ritual that starts with the dyeing of eggs and ends with a joyful feast. According to a Christian legend, the custom of colouring and decorating Easter eggs came about when the soldiers of Pontius Pilate handed out eggs to children, who were supposed to throw them at Jesus Christ as he approached the scaffold. However, when they swung to throw them at Christ, the eggs turned red in their hands, and they then chose to keep them for their beauty instead of throwing them at the martyr. From this the tradition of colouring eggs began in Christian homes. Over the centuries, however, this custom faded away among many Christian peoples, but the Serbs have maintained it to this day and colour their eggs on Big Thursday, three days ahead of Easter. The first egg is dyed red and placed beside the icon lamp to "guard the home" until Djurdjevdan (St. George's Day - May 6th), and then people usual-

CorD | April 2004

Preparations begin for the Orthodox Easter holiday with the seven weeks of lent, and, with body and soul purified, culminate in a joyful feast. Dyed eggs, a symbol of this holiday, are shared with friends and relatives or sold by auction and also feature in the EggKnocking World Championship. ly dye the other eggs naturally by boiling them with onion skin, walnut leaves and nettle. Traditionally, the eggs are decorated before the dying process by applying molten wax with a feather pen, and then because the dye is unable to permeate the eggshell through the wax, the egg is left with a clearly visible pattern on a coloured background.

The celebration of Easter in Orthodox Christian homes is an authentic ritual that starts with the dyeing of eggs and ends in a joyful feast. The celebration of Easter, however, begins much earlier, and the festivities commence with a sevenweek lent, or fasting period, that culminates at the dining table on Easter Sunday. During lent the rigorous rules of fasting forbid the consumption of spirits, or food of animal origin, and one also relinquishes other bodily pleasures and insincere thoughts. This leads to a purification of body and soul, and fuller cognition of the implications of the suffering endured by Jesus Christ for the sake of mankind. For Orthodox Christians, entering the day of Christ's resurrection with a pure body and

soul is a crucial part of celebrating Easter, and also represents the spiritual essence of the holiday. Among Serbs, the celebration of Easter is filled with joy and festivity and is shared with friends and relatives, unlike Christmas, which is more intimate and gathers the immediate family. The Easter meal traditionally consists of lamb broth, followed by meat rolls in vine leaves (sarma), roast lamb, salads and sweets, and the table is dotted with eggs dyed in a rainbow of colours. Eggs are also placed in a straw filled basket decorated with little toy hens and chickens, and handed out as gifts to guests, friends, relatives and neighbours. Aside from giving eggs as gifts, there is another well known custom - an egg-knocking competition, in which the victor manages to smash the eggs of his or her challengers, leaving his own intact. Tactics are often employed on the road to victory in this, so children are often given wooden eggs for an extra competitive edge. The excitement of this event appeals to adults as well, to the extent that they have organised a World Championship in Egg-Knocking in Mokrin, a small village in northern Serbia (Vojvodina). At this event hundreds of eggs of all colours get smashed, in order to determine the one with the hardest shell. The rules are strict - any challenger's egg has to be natural and carefully measured and weighed to meet competition standards. But to return to the beginning of our story, and Belgrade's Easter auction of decorated eggs. On first consideration, the fact that the symbol of a big religious holiday is for sale at auction might suggest an event wholly commercialised and reduced to the level of a profit-making opportunity. In fact it is the contrary, because the auction of artistic Easter eggs in Belgrade has a goal that embraces the love, sympathy and principles of the people involved, with all the funds raised being donated for humanitarian purposes. The auction is seen as a symbol of the popular celebration of Easter in Belgrade and organising it is a ritual in itself. The first preparations start as early as January with the extension of the invita-

tions to artists, and the collection of the materials, scant by comparison to those required for the FabergĂŠ masterpieces. In place of gold and diamonds come wood, various metals, stone, marble, ceramics, but despite their humbler composition, the finished results are the work of the most eminent Serbian and Montenegrin artists - painters, sculptors and ceramists.

The Easter meal traditionally consists of lamb broth, followed by meat rolls in vine leaves (sarma), roast lamb, salads and sweets, served on a table dotted with eggs dyed in a rainbow of colours.

Easter

The founder and coordinator of Belgrade's Easter Egg Auction is the Pero Gallery, owned by Mr. Vlada Paradinovic and its patron is the Karic Foundation. This year the ninth Easter Egg Auction will take place on April 8, 2004 at the National Gallery in Republic Square, and the profit will be donated to the Institute for Hematology of the Serbian Clinical Centre. The Pero Gallery, at 1 Milentija Popovica Street (New Belgrade, near the Hyatt Regency Hotel), will display all the eggs and later pass them on to the National Museum for the auction. Last year the most successful egg, in terms of profit raised, was 105,000 dinars. While Mr. Paradinovic did not reveal the author of the piece or who purchased it, he did stress that all the proceeds from the auction went to the Maternity Hospital in Bor and the Centre for Burns, Plastic and Reconstructive Surgery at the Serbian Clinical Centre. So far, over 200 artists have contributed their masterpieces to this event. The most prominent among them so far being Academy of Arts members Mica Popovic and Vladimir Velickovic, artists such as Milic of Macva, Dragan Mojovic, Mihailo Djokovic - Tikalo, Moma Antonovic, Slavoljub Cvorovic, Vladimir Dunjic, Milos Gvozdenovic, Branko Miljus, Kosta Bunusevac, Sava Stojkov, Janos Mesaros and others. At this year's auction, a number of well-known artists have accepted the invitation to contribute their work, and it will be interesting to observe the competition among these artistic pieces, with a value and price that considerably exceeds the actual size.â&#x20AC;˘

CorD | April 2004

Belgrade Directory 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 CITY MUSEUMS: • BELGRADE CITY MUSEUM, Zmaj Jovina 1, tel. 630-825 • ZEMUN CITY MUSEUM, Glavna 9, tel. 617-752

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

TEHNICAL MUSEUMS: • YUGOSLAV AERONAUTICS MUSEUM, Belgrade Airport, tel. 670-992 • RAILWAY MUSEUM, Nemanjina 6, tel. 361-0334 • MOTORCARS 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 NATURAL HISTORY MUSEUMS: • MUSEUM OF NATURAL HISTORY, Njegoseva 51, tel. 344-2149, 344-2568 • MUSEUM OF SERBIAN MEDICINE, Dzordza Vasingtona 19, tel. 3245-149 ART MUSEUMS • AFRICAN ART MUSEUM, Andre Nikolica 14, tel. 651-654 • THEATRE MUSEUM, Gospdar Jevremova 19, tel. 626-630 • CONTEMPORARY ART MUSEUM, Usce, tel. 311-5713 • DESIGN MUSEUM, Vuka Karadzica 18, tel. 626-494 • CINEMA MUSEUM, Kosovska 11, tel. 324-8250

Temples ADVENTIST CHURCHES Bozidara Adzije 4, tel. 453-842 Kumodraska 85a, tel. 493-235

BAPTIST CHURCH Slobodanke Danke Savic 33, tel. 410-964

Sv. Car Konstantin i carica Jelena, Jove Ilica 123, tel. 472-295 Sv. Georgije, Zrmanjska 1, tel. 555-942 Sv. Marka, Bulevar kralja Aleksandra 17, tel. 323-1940 Sveta Trojica, Zemun, Cara Dusana 83, tel. 100-301 Vaznesenjska crkva, Admirala Geprata 19, tel. 643-533

MOSQUE Bajrakli Mosque, Gospodar Jevremova 11, tel. 622-428

REFORMIST CHURCH Dobracina 33, tel. 631-398

ORTHODOX CHURCHES Crkva Ruzica i kapela Svete Petke, Kalemegdan 6, tel. 630-400 Hram Svetog Save, Krusedolska 2, tel. 432-585 Pokrov Presvete Bogorodice, Kajmakcalanska 55, tel. 424-431 Saborna crkva Sv. Arhangela Mihaila, Sime Markovica 3, tel. 635-832 Sv.Aleksandar Nevski, Cara Dusana 63, tel. 629-274 Sv. Apostoli Petar i Pavle, Bulevar vojvode Putnika 11, tel. 663-120

ROMAN CATHOLIC CHURCHES Crkva Krista Kralja, Krunska 23, tel. 323-2308 Svetog Petra, Makedonska 23, tel. 322-6919 Crkva sv.Ante, Zemun, Strosmajerova 6 Blazena Devica Marija, Hadzi Mlentijeva 75, tel. 435-712

CorD | April 2004

RUSSIAN ORTHODOX CHURCH Crkva Svete Trojice, Takovska 4, tel. 334-1894 SYNAGOGUE Synagogue, Marsala Birjuzova 19, tel. 622-634

Belgrade Directory

How to…

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.

... obtain medical treatment at VMA?

… organise a round of golf?

• You can receive first-class medical attention at one of the most prestigious clinical centres in Belgrade, the Military Medical Academy of VMA. Members of the Diplomatic Corps in Belgrade are able to use the facilities offered by this clinical centre and receive medical protection and assistance there. Further information about the conditions and procedures may be obtained by calling 36 72 464.

• The popular Ada river island is now home to a well equipped golf course. For reservations and further information call 063 896 38 16.

… purchase a car with special benefits? • Diplomats residing in our country wishing to purchase a car from Daimler-Chrysler enjoy special privileges and benefits. This renowned company also has a special department specialising in selling cars to diplomatic representatives, which deals with all the customs and tax benefits which apply to this type of buyer. Detailed information about this service can be obtained by calling 011 30 19 245 or 064 261 2612.

… obtain tickets for major sporting events? • To obtain tickets for football matches and other sporting events, call the appropriate stadiums on the following numbers: Red Star FC: 367 20 62 Partizan FC: 648 222 Belgrade FC: 750 195 Obilic FC: 417 221 Zemun FC: 612 949

… fill your garden or balcony with flowers? • To brighten up your home, garden or balcony with spring flowers and plants as well as for the delivery of flower arrangements call the experts at Cvet ekspres on 545 987. The experts at Cvet ekspres will offer you advice and quotes on any project large or small.

… find a Vet for you pets? • Should you require veterinary assistance for your pets, call the non-stop Vet clinic. Advice and assistance can be obtained on 011 346 02 32 or 064 128 86 21.

CorD | April 2004

… take advantage of the avio-taxi service? • For panoramic flights, sightseeing from the sky as well as the avio-taxi service, planes can be hired from the JAT Airways Pilot Academy. All information concerning these services as well as prices for domestic and international flights can be obtained by calling 013 821 120 or 013 821 185.

… go hunting? • For all those interested in hunting or to arrange visits to attractive hunting areas in our country, detailed information can be obtained from the Serbian Hunting Alliance at 19, Alekse Nenadovica Street. The Belgrade Hunting Society can also be found at the same address. For further information call 344 32 84.

… get your electrical appliances repaired? • For repairs to all your household electrical appliances call 063 3919 66.

… order a book from abroad? • To order professional publications and literature from abroad you will need the services of a specialist company. Global press is one such company. For further information on how to order books from abroad call Global press on 344 36 24 or visit their web site at http://www.globalpress.co.yu

… learn to ice skate? • To take advantage of the many indoor and outdoor ice rinks in Belgrade, you firstly need to master the art of skating and that is why you need the Skating School. For full details about the school and the courses it has to offer call 26 23 421 or alternatively call the ice rink at the Pionir sports centre at 39, Charley Chaplin Street on 766 566 - extension 116.