CorD Magazine No.58 by CorD Magazine

CorD, MARCH 2009

18 POLITICS & DIPLOMACY

DEEP PARTNERSHIP

Comment By Jennifer Brush, U.S. Deputy Chief of Mission to Serbia

MINISTER OF FIVE OATHS

Interview: Dr. Tomica Milosavljević, Serbian Health Minister

ECONOMY IS PRIORITY

Intreview: H.E. Željko Kuprešak, newly appointed Croatian Ambassador to Serbia

BUSINESS & CURRENT AFFAIRS

GLOBAL LEADERS URGE COLLABORATION AND SWIFT ACTION

14 WHERE’S THE CRISIS Annual Meeting in Davos

HEADING?

Boško Živković, Member of the Serbian Government’s Economic Council

TOBACCO SWORD

INVESTMENTS IN TECHNOLOGY

CORPORATE MAN

Intreview: H.E. Jean-François Terral, Ambassador of the Republic of France to Serbia

NATO AND SERBIA: COLD FLIRTING

Comment By Ljubodrag Stojadinović

MANAGING DIRECTOR Tatjana Ostojić, t.ostojic@cma.rs EDITOR IN CHIEF Vladan Alimpijević, v.alimpijevic@cma.rs EXECUTIVE EDITOR Mark R. Pullen ASSOCIATE EDITOR Richard Wordsworth, r.wordsworth@cma.rs Miroslava Cvejić-Kovačević, m.cvejic@cma.rs ART DIRECTOR Tamara Ivljanin, t.ivljanin@cma.rs DESIGN ASSISTANT Tatjana Radojičić EDITORIAL CONTRIBUTORS Jelena Jovanović, Ljubodrag Stojadinović, Sonja Ćirić, Jelena Mickić, Irina Marković, Vanja Mekterović, Dejan Jeremić PHOTO Marko Rupena, Slobodan Jotić, CorD Archive, Fonet TRANSLATORS Snežana Bjelotomić, Milenko Pećanac, Milica Kuburu, Momčilo Drakulić, Jelena Gledić EDITORIAL MANAGER Tanja Banković, t.bankovic@cma.rs PROJECT MANAGER Janja Gnjatović, j.gnjatovic@cma.rs SALES EXECUTIVE Marija Urošević, m.urosevic@cma.rs,

4 CorD 58 / March 2009

A look at the State’s broken promises

Slobodan Mihajlović, Executive Director of Blok 67 Associates

SOCIETY

OPPORTUNITIES IN ADVERSITY

Ernst & Young research into 350 global companies

FACES & PLACES

Four newly appointed ambassadors in Serbia & much more besides

A BRAND CAN’T BE CONTROLLED

Scott Bedbury, world-famous branding expert

CULTURE & ART

BEAUTIFUL SOUNDSCAPES

LEADERS

DIONYSUS & THE LABYRINTH

Vladimir Đukanović, Partner at Crisio Capital, London-based investment ﬁrm

Biljana Jocović, b.jocovic@cma.rs SALES MANAGER Ivana Paripović i.paripovic@cma.rs GENERAL MANAGER Ivan Novčić, i.novcic@cma.rs FINANCIAL DIRECTOR Ana Besedić, a.besedic@cma.rs PRINTING Rotografika d.o.o DISTRIBUTION / Futura Plus CorD is published by: alliance intrenational media Knjeginje Zorke 11b, 11000 Belgrade, Serbia Phone: +(381 11) 308 99 77, 308 99 88 Fascimile: +(381 11) 244 81 27 E-mail: cordeditorial@cma.rs www.cordmagazine.com ISSN no: 1451-7833 All rights reserved alliance international media 2009

This issue is audited by

ABC Serbia

Igor Gostuški, composer

The Mosaics of the Gamzigrad exhibition

HAPPY UNION

Festival of Mobile Phone Film

LEISURE & LIFESTYLE

TOP 10

2009 Life Experience Resolutions

DANUBE: FASCINATING RIVER

CorD and TOS recommend the majestic Danube

REKA ON A RIVER

Restaurant review: Zemun’s Reka

comment

Deep Partnership The U.S.–Serbian partnership is not just defined by our assistance relationship, but our shared ties of the Serbian diaspora experience in the U.S. and the role played by the Serbian Orthodox Church in creating America’s melting pot came to Serbia for the first time as a high school exchange student in Kraljevo in 1973 and returned to study political science in Zagreb and Sarajevo from 1978-81, before taking my first diplomatic assignment to Belgrade from 198789. Serbia and the former Yugoslavia now occupy a great part of my life. I’ve also brought my son with me this time and he’s become enamoured with Serbian girls, so I even see Serbian grandchildren in my future. There are so many positives that influenced my decision to come back: my memories of Belgrade as a great city, my experiences of Serbia’s hospitable and gorgeous countryside and the friends and colleagues who have stayed in touch over the years. However, there were perhaps an equal number of factors that made me reluctant to return. I served in Bosnia in 1992 and Priština in 1993; I collected war crimes testimony from Bosnian refugees in Turkey in 1993 and opened the U.S. Embassy in Sarajevo in 1994, during the war. I have been tear-gassed, shot at and suffered a rocket attack by Serbian security forces, both in Priština and Sarajevo. Throughout these experiences, I have maintained that Serbia was likely to sustain the most long-term damage, as it would take years to erase these images from the international consciousness. Imagine, then, my despair at having the image of a burning U.S. Embassy from the 21st February 2008 attack added to that photo album. Yet, I am certain that Serbia can, and must, create a new track record of neighbourly co-operation, prosperity and democracy. The U.S. – Serbia relationship has been complicated by our differences over Kosovo. We consider Kosovo’s status resolved; talk of reopening the issue is not realistic, practical, or in any way helpful to the region. U.S. foreign policy towards Serbia is no great secret or conspiracy. Our goal is help see Serbia become a prosperous member of the EU, at peace with its neighbours, secure and fully engaged in bilateral and multilateral partnerships. The U.S. put this policy into action by continuing to fund an expansive assistance programme of over $50 million annually to promote job creation, economic development, foreign investment, judicial reform, military partnership and cultural and educational exchanges – programmes which benefit hundreds of thousands of people in this country. The U.S. has offered significant assistance to Serbia since 2001. In total, the American people have provided almost $670 million for programmes that contribute to Serbian prosperity. We are strengthening Serbia’s small and medium-sized businesses

6 CorD 58 / March 2009

in areas with high potential. We help entrepreneurs obtain financing, increase sales, investment and exports. We are working with agro businesses to help farmers improve their products and access markets. We are working with municipal governments to help cities across Serbia attract new businesses and investments. All these programmes have one thing in common: they help create much needed jobs in Serbia. In terms of our security partnership, the Republic of Serbia and the United States enjoy robust military co-operation, including a successful State Partnership Programme with the Ohio National Guard and professional training, both bilaterally and through NATO’s Partnership for Peace programme. The United States has invested over $4 million annually to fund scholarships for Serbia’s students and teachers to study in the United States, and vice versa. We are comto expanding cultural ties By Jennifer Brush, mitted between our two nations and conU.S. Deputy Chief of tributing to a number of festivals all across Serbia so that U.S. artists can Mission to Serbia participate and share experiences with Serbian counterparts. I’m even hoping we will have a participant in the Guča Trubači festival this year. The foundations of the U.S.–Serbian partnership are strong and are not just defined by our assistance relationship, but our shared ties of the Serbian diaspora experience in the United States and the role played by the Serbian Orthodox Church in creating America’s melting pot, our Američki lonac. We are, therefore, dismayed by the continued focus on Kosovo as the defining issue in our relationship. Yes, this is a difficult issue, but we sincerely believe that the efforts of the Serbian leadership would now be better spent abandoning the rhetoric and engaging with the leadership of the Republic of Kosovo to work together on issues that matter to the daily lives of the people on both sides of the border. Serbia cannot be the regional force for stability, prosperity and leadership that it rightfully deserves to be unless we can move in this direction.

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POLITICS |

INTERVIEW: DR. TOMICA MILOSAVLJEVIĆ, SERBIAN HEALTH MINISTER

Minister of Serbian politics is riddled with discontinuity. Political parties and politicians are always governing with an imminent election in mind By Dejan ST. JEREMIĆ erbia’s ‘temporary politician’ speaks to CorD magazine, a year after his last interview. Tomica Milosavljević (G17) claims that one day he is going to go back to being just a professor and a doctor.

What is the current state of the health system in Serbia; how far along are you with the reforms and where are we in relation to the period prior to your appointment as a government minister? This is a question for the citizens of Serbia. I have to talk about the current state of the health system, but I can’t grade my own work. Serbia’s health system was in serious trouble in 2002, when I was appointed health minister. Health insurance institutions and hospitals owed each other over €100,000, both citizens and health workers were unhappy with the situation, as was the Government. The Ministry of Health was the only ministry that didn’t have its own website, which is not that important but perfectly illustrates the state of affairs back then. It was really important to carry out an

honest, objective analysis of the situation and put out the fires raging in the system, with the lack of awareness that non-infectious diseases are the country’s biggest health problem. There was also a shortage of certain medicines and medical materials, while the quality of services in different health institutions was unbalanced. Years of neglecting the infrastructure and equipment resulted in the substantial pessimism shown by health workers who were not happy with their salaries. This is the situation that I came to. Where are we now? We are half way through a reform process which will change relations within the system, introduce new institutions and pay more attention to the dignity of the patient and health worker – of which there are close to 100,000. We have made some urgent moves in over 20 hospitals and used a US$20 million loan from the World Bank to restructure hospital capacities, which is a continuation of the information process and an introduction to a new project that will start this year with the end result being the installing of IT systems in over 130 health clinics. Around €100 million from donations was spent on purchas-

A I D

C R I S I S

M I N I S T E R

Around €100 million from donations was spent on medicine, medical materials and equipment.

The ﬁrst months of this year have shown something ﬁnancially and economically that I haven’t seen.

I accepted the position of minister because of my belief that I can do something good

8 CorD 58 / March 2009

ямБve oaths

POLITICS |

HEALTHY LIFESTYLE Do you live a healthy life; do you smoke? I try to live as healthily as possible and have never smoked. Twice a week I am physically active, I run, I walk and I am very happy to see that I am not giving up. Once a week I play football and I try to go to the countryside with my wife, where we walk for miles. Every morning I climb six floors to get to my office and this is a real test for me. Unfortunately, I don’t eat regularly – I am used to having breakfast, but I tend to skip lunch and have dinner at home. Believe it or not, I have never had lunch in the ministry’s canteen. This is a highly charged job and whoever accepts it has to consider that fact.

compulsory health insurance system which implies solidarity between the rich and poor, healthy and ill, young and old. Everybody can have health insurance in Serbia, on some grounds or other, and it is this universal feature of insurance and the systematic approach that has helped preserve solidarity, regardless of one’s workplace. What is not good, however, is that we lost 10 to 15 years of progress; while others were setting up chambers earlier, like the Croatians and Hungarians, we only did that in the period from 2005 to 2008. While others were issuing individual licences at the beginning of the 1990s, we only did so at the beginning of the 21 century. We have to compensate this loss of 10 to 15 years. We need to reduce the number of smokers by the year 2015, in order to reduce the number of people who suffer from coronary diseases. Despite all the ups and downs and the level of our dissatisfaction, Serbia’s health system is considered to be one of the better ones.

ing medicine, medical materials and a lot of to reach an ideal, since a clean and safe hospital was considered an ideal even 200 years ago. medical equipment. Money was also spent on supporting the adoption of laws pertaining to the use of medicines. We have also set What is the state of the health of the naup a new institution – the Medicines Agency tion, generally speaking? – and everything that has to do with the reg- Just like in the rest of Europe, two-thirds of istration of medicines and quality control has people are dying of diseases that could be prebeen transferred from the minister’s cabinet to vented. These are diseases that are the result the medical specialists. Health insurance and of risky behavioural factors, i.e. heart disease health protection laws have been passed, as and cancer. What we need to do – and this is well as laws that regulate the activities of the something most of the EU has already done – Health Workers Chamber. We have also set is to stop the growing cancer rate and reduce up the Accreditation Did you find Agency that start- Corruption is a disease that, unfortunately, afflicts transition the comments ed to issue licencabout Americans countries, i.e. countries were the basic system of values is es for health workers. wanting health Furthermore, year-onlike disrupted and where idealistic promises that used to yield protection year the Serbian budgours amusing? et has been making inrealistic results have now fallen apart This was a vestments in all parts provocation that I of Serbia – €60 million from the National the associated mortality rate. This is what was very well aware of, but the media didn’t Investment Plan was spent on 161 health clin- awaits us. In the last decade there has been a report my statement truthfully, nor did I say ics to bring them up to speed which, in turn, reduction in the mortality rate only in the case that Obama was copying Serbia’s health sysled to a higher level of patient satisfaction. of stomach cancer, just like in other European tem. I said that when you looked at his preMost importantly, we have established a sus- countries. Very little has been done about pri- election programme you could see some tainable system, both in financial and institu- mary prevention, changing lifestyles, avoiding principles of compulsory health insurance tional terms. All of this was done despite the tobacco, alcohol and being more physically and universal coverage, as well as an idea to fact that we have one of the lowest budgets active. Nothing has been done about second- install IT systems to reduce costs and increase in Europe. I am not saying that everything is ary prevention, i.e. organised screenings for efficiency. This is what I said and, of course, peachy, but different winds are now blowing. breast cancer, uterine cancer and colon cancer that we have a lot to learn from the Americans It is not gone for good, nor will it ever be – which are all curable if detected on time. and vice versa. Some 40 million Americans gone because there’s no such thing as an ideal don’t have health insurance and four million system. Even the wealthiest and best regulated If we compare Serbia to Europe and the children in the U.S. are uninsured. I didn’t say systems, like that of Denmark, are experienc- rest of the world, what is our strength and anything wrong. I just compared their princiing this problem. This is a process where we where are we lagging behind? ples and said that they were similar to ours. are constantly striving to improve. It is difficult We are good because our society has a

Politician This job is a professional challenge for me and I don’t see myself as a politician. I am ﬁrst and foremost a doctor and professor. 10 CorD 58 / March 2009

Prediction Economically speaking, we will be equivalent to the Netherlands – again, provided that our annual economic growth stays at 6%.

Ðinđić I didn’t come to the Government on my own accord. I was invited by Prime Minister Đinđić to work in the Government as a doctor.

Serbia wants to join the EU, but in order to do that we need to adhere to certain laws and harmonise certain regulations. There is a great misconception here. There isn’t a single law about health systems that we need to pass to join the EU. Every country adopts health laws to suit its needs. There are principles that need to be adhered to when it comes to systematic laws, like the Law on Medicines, in order to be able to export pharmaceutical products to the EU. In order for Serbia to be included on the White Schengen List, the Health Ministry needs to have a strategy on narcotics control – ours is going to be completed in May. Of course, there are lots of principles that we need to embed in our legal system. One of the most important areas is food safety and our ministry, together with the Ministry of Agriculture, has been working on that. We have also included the protection of patient rights in the legal system and co-ordinated it all with Minister Milosavljević: “Nobody is irreplaceable” EU principles. In the meantime, the European Commission has formed some new institutions, just confirms what many people say – that my doctor duties, although I try to see my old so we have one very important public health you are irreplaceable, bearing in mind that patients at least once a month before I go to the Ministry. I accepted the position of minister service. I have to say, without being too modest, this is your fifth consecutive term? that our co-operation with Europe on matters of Nobody is irreplaceable. There is always an because of my profession and belief that I can health has been very good since 2002 and I was alternative and I never thought of myself as be- do something good, both for my profession privileged to have been elected a member of the ing irreplaceable. My political work happened and Serbia’s citizens. This will be clear once World Health Organisation’s Regional Com- purely by chance. I was invited to become a I return to my work. Then everybody will be mittee for Europe in 2005. For the first time in minister; I didn’t come to the Government on clear that I am not talking in vain. So, I am not the history of the W.H.O., we organised a Re- my own accord. I was invited by Prime Min- staying in this position of my own free will, but rather because of the gional Committee conferIt is not good that the prime minister has a lower circumstances in a transience in Belgrade in 2007, which was one of the bigsalary than the CEO of a public enterprise, nor that tion country like Serbia. We haven’t had a govgest diplomatic gatherings the health minister has a lower salary than many ernment stay in power for our capital city has ever a full term since 2000. It hosted. Starting May this doctors in health clinics is no coincidence that a year until 2012, I am going to work in the W.H.O.’s Executive Board in Ge- ister Zoran Đinđić to work in the Government government term lasts four years, since there neva. This is very important because only eight as a doctor and professor of internal medicine isn’t much you can do in the space of a year. of the 34 board members come from Europe – in the way he envisaged. Unfortunately, I If you read my statements from the very beand Serbia is going to have its representative. worked with him for a very short period, less ginning of my term, you can see that in 2002 The Foreign Ministry told us that this is the than a year. I would like to remind you that I said many things pertaining to the faster and highest function Serbia holds in any UN organi- circumstances have changed and the fact that more efficient work of the Ministry. sation. We have good bilateral relations with I took an oath five times in a row without havour neighbours and actively participate in the ing a single four-year-term in office is a sign of Do you believe that Serbia’s political elite implementation of regional projects. I would the continuity of the work done by the Minis- is not corrupt and is competent enough? dare to say that Serbia’s role in the EU integra- try of Health. True, this is unusual and not so Corruption is a disease that, unfortunately, tion process was recognised as being positive common in Europe. For example, in the Czech afflicts transition countries, i.e. countries were and welcome. This imposes additional respon- Republic 10 health ministers came and went the basic system of values is disrupted and sibility on us. in a period of 15 years. This job is a profes- where idealistic promises that used to yield sional challenge for me and I don’t see myself realistic results have now fallen apart. During With everything that you’ve said and the as a politician. I am first and foremost a doc- transition corruption eats up the very fabric of fact that our health system is undergoing tor and professor of the Faculty of Medicine. a society that should thrive in parliamentary consolidation, wouldn’t you say that this I try not to neglect my teaching duties, unlike democracy and market economy, while mainCorD 58 / March 2009 11

POLITICS |

NATIONWIDE VIEW

ow do you feel in a government whose members are mostly citizens of Belgrade? I was born in Kruševac, grew up in Paraćin and live in Belgrade. This is all Serbia, just like Leskovac, Subotica, Šabac and Kladovo are also Serbia. I feel very good in the role of government minister, since I don’t make a distinction between different parts of Serbia.

taining the optimal level of social justice. The health system is not exempt from this plague, nor is politics. However, there is a lot of prejudice when we talk about politics and politicians in this context. The easiest thing to do is to attack a civil servant and the most difficult thing is to actually get involved. I think that everybody should ask himself what he can contribute from his workplace. This prejudice is the main element of creating awareness. Society has to possess a certain maturity. I would like to remind you of an ancient dictum that goes “the people get the government they deserve. Not better, not worse.”

do for your country. The ‘nanny state’ is ancient history. The state needs to set the same rules for everybody and we are going to get there if we all participate, everybody according to their own capacities.

Do you believe in the government that you are a member of? How can I not believe in something that I am a part of?! I believe that there is minimum consensus and the lowest common denominator that is called ‘Serbia with European values in the European family’. This is a strategic interest and something that ties this government together. This is what gives the government stability, overriding the differences between the political parties that make up the Government. In a transitional country like Serbia, having several governments in a short period of time is inevitable. This is what the voters wanted. They say it could be better. It can always be better. Sometimes they say – “this is just not good enough” or it is never good enough. Some say: “I could do that better”. Well, go ahead, roll up your sleeves and dig in. Try to clean your yard first and ask not what your country can do for you, but what you can

We are quite a small country that cannot avoid the global crisis

12 CorD 58 / March 2009

It seems that you have a very responsible, albeit underpaid, job. How do you cope with that, bearing in mind that the salaries ministers receive are much lower than those of certain managing board members? That’s a good question. I think that that is a sort of demagogy that we fell in and that is not good. It is not good that the prime minister has

a lower salary than the CEO of a public enterprise, nor that the health minister has a lower salary than many doctors in health clinics. We have tried to change something in that direction, but it wasn’t enough. As for how I cope: I earned much more money when I was a doctor, as I did a lot of private practice. Luckily for me, I resolved some existential issues way back. My family lives off what the two families and three generations generated. My parents are retired. They sold their house in Paraćin and bought an apartment in Belgrade. I cannot say that I am unhappy or too happy. I am a politician with a limited term in office. I am not going to be a minister forever. I can live a normal life, have a summer and winter

holiday and provide for my children without being too frugal. I am almost 54 years old and I have less and less time until I retire. I would be deeply unhappy with myself and my life if I had to think about existential problems having a working wife, retired parents and children who are studying. What is your overall forecast for this year? It will be difficult in every sense of the word and more complicated than it looks now. The first months of this year have shown something financially and economically that I, as a minister, haven’t seen in these past six years. We have been swept by the wave of crisis, but we have somehow managed to avoid the impact on our banking system. I guess that we have learned some lessons in the past. We are quite a small and impoverished country that cannot avoid the global crisis. Everybody will try to overcome it in their own way and we are probably going to suffer less than most, since we are not that involved in global financial transactions. According to analysis carried out by the World Bank – and provided that Serbia’s economic growth continues at the rate of six per cent a year – in 2025 our medicinal consumption will be just like those in the EU. Economically speaking, we will be equivalent to the Netherlands – again, provided that our annual economic growth stays at six per cent. We do know that we are not going to achieve that this year. I hope that there won’t be a recession, since most economists are saying that we are going to continue growing, just not at such a high rate. That is a problem economically, but if we are talking about our health system I think recovery will continue because we have secured the biggest investments. If there are no huge economic and financial quakes, this system will withstand the crisis..

WORLD ECONOMIC FORUM: ANNUAL MEETING IN DAVOS

GLOBAL LEADERS URGE SWIFT ACTION 2020 vision: four scenarios set out by the WEF and Oliver Wyman before the conference 14 CorD 58 / March 2009

ECONOMICS |

rious global recession since the 1930s: global challenges demand global solutions. Founder and Executive Chairman of the World Economic Forum, Klaus Schwab said: “We have to address all the issues simultaneously and not forget any of them, like climate change. We have to involve all the stakeholders of global society in this process so that they feel responsible. Above all we need to restore confidence in our systems.”

GROWTH AND ORIGINS A joint report by the World Economic Forum and Oliver Wyman posed four financial futures and formed the basis for crystal ball gazing on the financial system.

power and geopolitical primacy have shifted firmly east, with China acting as the leader in Asia.

OTHER DEVELOPMENTS Regulation is co-ordinated at a regional level and varies between economic jurisdictions. Separate capital and regulatory requirements in each bloc increase costs for global players. Nationalised champions in the EU and Asia distort markets, particularly in insurance. Companies look to the east for both stability and yield.

FN COMMENT

There are ominous signs that the world could head in this direction. Speaking in Davos, China’s and Russia’s Prime Ministers, Wen Jiabao and Vladimir Putin, made withering Three competing trade territories dominate remarks about the western model of bankthe global economy, split regionally being. Putin said Wall Street’s investment tween a United States-led trade alliance, a banks had virtually ceased to exist, while larger European Union and a Chinese-led Putin’s spokesman claimed: “This is Davos bloc. International talks to rebuild the fi- under the Russian flag.” Wen called for a nancial system in the years following the new system. Europe has clamped down on financial incrisis descend Energy security concerns are stitutions and into acrimony to be and emerging paramount; trade slows except in appears taking a more market econinterventionomies turn tourism and energy materials ist approach their back on to regulation, whereas the U.S., partly bewestern ideals to forge their own system of “controlled openness”. The EU regu- cause of the paralysis of waiting for a new lates the financial markets most heavily, administration to bed down in the White while the U.S. sticks to a lighter-touch re- House, has been slower to act. In the short gime. Energy security concerns are para- term, global trade flows, which rose 9.4% in 2006 and 7.2% in 2007 re forecast to mount; trade slows except in tourism and energy materials. Asian financial institu- grow just 2.1% this year, the slowest rate tions are top of the pile and all large compa- of growth since 2001, according to the nies are forced to adopt tripartite strategies. Institute of International Finance. The reRegulatory and policy co-ordination exists engineering of western-centrism. within the three regions but is a non-starter internationally. Regulatory arbitrage opporWORLD ECONOMIC FORUM tunities abound.

SCENARIO 1

By Dominic ELLIOTT he world’s business and government leaders only have a short time to develop effective solutions to the current economic crisis, participants at this year’s World Economic Forum Annual Meeting were told. In the closing plenary, participants joined members of the Forum’s Global Agenda Councils to formulate a message to key international decision-makers, such as the heads of government and ministers who will gather in April for the G20 summit. The message from the Annual Meeting is that leaders must continue to develop a swift and co-ordinated policy response to the most se-

ECONOMIC INDICATORS Global growth is moderate but highly skewed, with emerging economies posting results of 9% while the U.S. and EU remain at only 1.2%. Average global growth is 3.2%. The U.S. dollar and the euro are no longer the sole reserve currencies, thanks to the advent of a trade and currency regime within the newly created Eastern International Economic Community. Global economic

he World Economic Forum is an independent international organization committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas. Incorporated as a foundation in 1971, and based in Geneva, Switzerland, the World Economic Forum is impartial and not-for-profit; it is tied to no political, partisan or national interests (http:// www.weforum.org). CorD 58 / March 2009 15

ECONOMICS |

Capital controls and severe restrictions on the movement of people exacerbate the economic malaise

Executive Chairman of the World Economic Forum, Klaus Schwab and Prime Minister of Russia, Vladimir Putin

SCENARIO 2 After Bretton Woods II in 2010, Bretton Woods III is on the negotiating table. Action taken in the wake of the financial crisis this year and next has merely delayed some serious imbalances in the global financial system and the world has yet to recognise the reality of power shifting east. The west takes the lead in restructuring economies through stimulus packages and maintaining free trade but systemic risk remains and a crisis to dwarf that of 2007/8 is a danger. However, the world shrugs off an intense few years of intervention by politicians and regulators to grow at something like its former pace.

OLIVER WYMAN

liver Wyman is the leading management consulting firm that combines deep industry knowledge with specialized expertise in strategy, operations, risk management, organizational transformation, and leadership development. 16 CorD 58 / March 2009

last week. Investor George Soros said at Davos that emerging countries, especially those in eastern Europe, should receive funds or donations from affluent economies such as Japan or western Europe to move the global economy faster out of recession. Soros has warned previously that â&#x20AC;&#x153;peripheryâ&#x20AC;? countries are disadvantaged by the financial system. However, this reading of the world dismisses the growth and rising influence of the largest emerging markets, particularly China. Wen told World Economic Forum delegates that China was aiming for 8% growth in GDP this year. However, as the report acknowledges, the perils of financial homogenisation and herding behavior could yet destabilise attempts to reform the system. Protectionism becomes fragmented across the globe.

SCENARIO 3 ECONOMIC INDICATORS Global growth is 3.6% overall for the decade, with growth in the advanced economies surging to 3.1% and the emerging nations averaging just over 6%. Global imbalances unwind slightly.

OTHER DEVELOPMENTS Significant consolidation occurs thanks to a global level playing field and the after-effects of the 2008-2009 recession. Western companies still dominate financial markets. Investors are disappointed by returns in emerging markets and seek gains in hightechnology companies.

FN COMMENT In some ways, this seems to be the most plausible of the scenarios. Net private sector capital flows to emerging markets are predicted to be less than $165bn this year, less than half the amount recorded last year and down from a peak of $898bn in 2007, the Institute of International Finance warned

Gridlock hits global trade as rampant protectionism becomes the norm in the years to 2020. International regulation fails. Tighter rules evolve on capital adequacy and risk management, giving rise to arbitrage opportunities. Conflicts break out in developing countries and a serious war is no longer an impossibility as a lack of market information snarls diplomatic efforts. Volatility surges. Capital controls and severe restrictions on the movement of people exacerbate the economic malaise. Country debt defaults proliferate and occur regularly. Cross-border investment is clamped down on and the banking sector is nationalised in many jurisdictions. Economic indicators Global growth averages only 2.3% as debt unwinds in developed markets and almost all markets are negatively affected by economic stagnation and a series of natural disasters. The eurozone disintegrates in 2014 under the pressure of public debt defaults and fundamental disagreements among members.

OTHER DEVELOPMENTS Regulation is extremely fragmented by country and often extremely intrusive. Restricted capital flows, the low-trust geopolitical environment and widespread trade protectionism mean very little financial policy co-operation among countries. Global service providers are forced to hold capital locally, reducing capital efficiency and forcing many to reduce their geographic footprint. Severe restrictions on capital and liquidity make banking far less profitable.

SCENARIO 4

Emerging markets show western countries the way after natural disasters and further financial turmoil. The financial system is globally integrated, but dominated by Brazil, Russia, India and China. After devastating climate-related events of 2017, particularly in the hurricane-hit U.S., western markets plummet. Asia, with China

ECONOMIC INDICATORS Global growth is initially depressed to approximately 2.5%, but recovers to average 3.6% for the decade as emerging economies post strong results. The U.S. and EU continue to struggle with restructuring and deflationary pressures, with average growth around 1.8%. Severe weather events in 2017 induce a second big financial crisis in the U.S., creating renewed incentives for international financial co-operation and risk management.

FN COMMENT

DEVELOPMENTS

Gloom and pessimism reach fresh heights in this apocalyptic version of the world. The spread of the internet and communications is often cited as a reason why globalisation is an unstoppable force. However, other eras of globalisation have ended, sometimes with periods of hardship and war. The prospect of a modern-day version of the Smoot-Hawley legislation of the Great Depression era, which imposed tariffs on hundreds of imports into the U.S. and, in effect, paralysed global trade, is worryingly plausible. Despite pledges not to introduce protectionist measures by all nations at the inaugural G20 summit in November, India and Russia passed new tariffs within days of returning home. In financial markets, international leaders have made the right noises about creating a legal framework to govern all jurisdictions, but there are some proposals at a national level that look to be introducing regulatory protectionism by the back door. A shift of economic power rebalances multilateralism

CHINA & RUSSIA I This is a world in which China dominates. However, Russia’s place at the top table is more questionable, in spite of its self-conﬁdent assertions at Davos last week.

The Bank for International Settlements becomes lender of last resort. Increasing global competition drives consolidation and specialisation in asset management, leading to strategies like scale-driven distribution & specialised fund management.

FN COMMENT

at the helm, takes the lead in driving regulatory change and harmonisation. The new regulatory regime is characterised by a greater focus on systemic risk management through links to macroeconomic policy, confidence-building measures and contingency plans. The Bretton Woods system has been fundamentally reformed.

This scenario tackles the emergence of risks like conflict and natural disasters, arguing optimistically that the world will pull together when the going gets tough. Given the preponderance of financial crises in the last century, it is likely there will be at least one more disruptive market event in the next 11 years. However, reform of the Bretton Woods institutions may take longer and is hardly guaranteed in and of itself to help mitigate future chaos. This is a world in which People Republic of China dominates. However, Russia’s place at the top table is more questionable, in spite of its self-confident assertions at Davos last week.

CAPITAL FLOWS Restricted capital ﬂows, the low-trust geopolitical environment and widespread trade protectionism mean very little ﬁnancial policy cooperation among countries.

CHINA & RUSSIA II Speaking in Davos, China’s and Russia’s Prime Ministers, Wen Jiabao and Vladimir Putin, made withering remarks about the western model of banking. John Drzik, CEO of Oliver Wyman CorD 58 / March 2009 17

ECONOMICS |

Boško Živković, Member of the Serbian Government’s Economic Council

WHERE’S THE C

18 CorD 58 / March 2009

RISIS HEADING?

“Is there such a thing as an optimistic and cheerful economic expert today? I must say that I don’t know any” By Aleksandra RANKOVIĆ Photo FONET

t’s true to say that there weren’t any cheerfully optimistic economists even in the good old times, but Boško Živković is a real breath of fresh air in that respect. No, he doesn’t believe in a bright future – far from it – but his economic analyses are realistic and based on fact. However, despite

that way. If I notice any of that, I will withdraw my membership. However, we do need some form of public responsibility at this time. None of us want to become politically active, i.e. become a minister or an MP, but my personal reason for doing this is that I believe in my colleagues, the Council members. My biggest dilemma is how useful we’re going to be.” says Živković.

The budget can undergo a crisis.These are no minor expenses. It is not wise to raise expectations, i.e. to assume that the state has unlimited funds and can invest wherever the crisis erupts the current situation, he is in a good mood, oddly enough, and I find myself wondering why. Živković says it’s because of his work with students at the faculty, where this conversation is taking place. Several renowned Serbian economic experts, Boško Živković included, got together at the beginning of 2009 to form the Serbian Government’s Economic Council. We all knew in advance that 2009 would be a difficult financial year, but we knew nothing about the set of measures that the Government of Serbia was about to prepare. Is the Economic Council going to be used as an economic excuse for possibly unsuccessful moves by the Government? “I don’t think we’re going to be used in

According to him, there isn’t a single economic expert, either in Serbia or abroad, who could realistically predict when the crisis will end. “This crisis has a trajectory just like any other crisis in the 20th century, but the brunt is much bigger. It reminds me of 1929 and we all know what a catastrophe engulfed the world after that crisis,” Živković said. Serbia is small and its exposure to the crisis is relatively low in terms of the international trade exchange. In relation to domestic GDP, Serbia’s export levels are relatively low, i.e. lower than is the case in Slovenia or Hungary. In the context of foreign trade channels, we can say that Serbia has been hit by the crisis. However, small countries that are highly de-

PREDICTION

IMF

MARKET

There isn’t a single economic expert, either in Serbia or abroad, who could realistically predict when the crisis will end.

A new arrangement with the IMF will provide the National Bank of Serbia with new tools to regulate the monetary market.

A state without an economy and market norms is simply reduced to politics alone. No, actually, it is simply doomed.

CorD 58 / March 2009 19

ECONOMICS |

The key directions of the Serbian government should be aimed at maintaining production and preserving the market

pendent on international trade exchanges have been hit much harder. In Hungary or Thailand, for example, production fell by 50%. “Unlike these countries, Serbia has been exposed to the crisis via financial channels. Minor disturbances on the European market have led to some form of panic evolving on the domestic market. A billion dinars worth of savings were withdrawn from banks, but they have been returned now,” Živković outlines, noting that in the long-term Serbia will suffer serious consequences due to its faltering production, reduced export levels and higher deficit. In the situation like this, Serbia certainly shouldn’t start nationalising privately-owned companies or investing in any commercial deals, whether that means investing funds or 20 CorD 58 / March 2009

writing off debts, Živković warns. “The opinion across the board is that we should not allow the state to take part in commercial activities, under any circumstances. This could destroy the market and set us back a decade. Write-offs are also quite dangerous. Serbia has suffered from general illiquidity due to a lack of financial discipline. If a big debtor is defaulting then a long chain of illiquidity will be formed. We shouldn’t do anything that could bring a contract into jeop-

ardy,” says Živković, highlighting the bad example of the Paraćin Glass Factory, which is set to be nationalised in exchange for the state writing off the company’s debt. According to Živković, the little money that the state has at its disposal, or is able to borrow, should be directed towards infrastructure projects, as only such investments could bring beneficial anti-crisis effects to the budget. In other words, Serbia should withdraw funds from the credit lines granted by the World Bank and the European Bank for Reconstruction and Development in the amount of US$300 to 400 million. This hasn’t been done yet, because Serbia still needs to complete the project documentation, carry out the land expropriation and perform technical activities required before works can start. Last December saw Serbia register zero growth in retail activities. This means that citizens finally started to behave rationally by cutting back on personal spending due to their fears over the uncertain future of the economic crisis. Nevertheless, Serbia’s consumer spending has been exuberant, if not huge, in the last few years. Some harsh economists claim that almost all the funds generated through the privatisation process or gained though loans has gone on consumer spending. Retail activities have grown steadily in recent years, making it possible to generate huge tax revenues. Everybody was feeling good, except the producers who were unable to keep pace with such expenditure. Has the time come to collect; are we going to face the consequences of cruel capitalism in 2009? “No, we are not. This year we are going to be faced with poverty, misery and the loss of jobs. Once this crisis passes Serbia could step into real capitalism,” Živković adds. According to our interlocutor, the fact that citizens are behaving in a rational manner and

CUTTING PERSONAL SPENDING

ecember last year saw Serbia register zero growth in terms of retail activities. This means that citizens finally started to behave rationally in terms of cutting back on personal spending due to their fears over the uncertain future of the economic crisis.

NEIGHBORS We are neighbours and business partners who know each other well; our communication is good and we have no language barriers

BILATERAL Croatia is of the opinion that all open bilateral issues should be resolved with the aim of bettering good neighbourly relations

cutting back on spending is a natural reaction to uncertainty. “Aside from reduced spending, there has been a drop in loan activities – more so in the retail than the corporate sector: citizens are seeking fewer loans due to fears over their ability to repay”. It is widely speculated that the measures devised by the Serbian government have encouraged spending, in stark contrast to the need to save. However, Živković insists, “this is a mistaken impression that the public has” - the government is well aware of excessive spending patterns in Serbia. “The Government is focused on boosting production, which, in my opinion, is the thing to do. The first thing that needs to be done is for loan activities to pick up. However, banks have stopped granting new loans as a result of credit risks. This has led to a whole series of economic disturbances in an economy that has enjoyed a good and ample loan offer in the last three years. The second government measure is to encourage investments in infrastructure,” Živković points out. The member of the Serbian Government’s Economic Council notes that the main problem in Serbia is the unbalanced real sector, coupled with the 2.5% drop in industrial production in November and the following 10% decline in December. “Nobody can say what January, February and March will bring, thus I advise caution,” Živković says. The Government should not cause havoc to the budget on the pretence of fighting the global crisis, while the arrangement with the IMF should be redefined. “We should talk to the IMF and review the arrangement, since the circumstances have changed. We should ask for more money from the IMF and we ought to change the set of measures stipulated in the current arrangement. Conceptually speaking, the IMF will not allow budget distress and this is something that Serbian Government agrees with,” Živković warns. Commenting on the State’s ability to invest in RTB Bor, finance JAT Airways or provide subsidies for domestic purchases, Živković says that there aren’t enough funds for all of that and promises shouldn’t be made lightly. “As I’ve already said, the budget can undergo a crisis. These are no minor expenses. It is not wise to raise expectations, i.e. to assume that the state has unlimited funds and can invest wherever the crisis erupts. The state doesn’t have enough money and will have even less. The available capital should be geared towards investments and we should let others invest in activities that might have a positive anti-crisis effect,” says Živković. Commenting on the measures implemented by Serbia’s central bank, the National bank of Serbia, NBS, Živković said that the NBS should have been more cautious when using foreign currency reserves on the foreign currency market. “I think that this new arrangement with the IMF will provide the National Bank of Serbia with new tools to regulate the monetary market, since it seems that the tools used so far – such as repo operations – are no longer efficient,” insists Živković He reminds us that the EU reacted to the initial onset of the crisis

CRISIS We don’t know how far this crisis will extend, what segments it will affect and how the various state interventions will inﬂuence it in two ways: by raising the insurance deposit to €50,000 and providing state guarantees on interbank loans. “This first measure has been carried out here, but the second still hasn’t. We still don’t have a safe system to absorb growing credit risks. There is a good idea for the European Central Bank to make guarantees more general for the placements of European banks in Serbia. This would benefit us, since the channels used to transfer capital to Serbia would be a bit more permeable and the quantity of new capital would be higher than expected.” In conclusion, Živković says that the key directions of the Serbian government should be aimed at maintaining production and preserving the market. “We have had a lot of difficulties with production start-ups, but failing to implement this would set us back a decade. The costs associated with maintaining production are lower than those for launching it. However, none of this should cause a new fiscal crisis. In other words, the ‘evil sister’, i.e. the global economic crisis, should not be used as an excuse to destroy financial order, market norms and contracts. If this is missing, the economy will fail. And a state without an economy is simply reduced to politics alone. No, actually, such a state is simply doomed,” Živković concludes.

CorD 58 / March 2009 21

By Tatjana OSTOJIĆ Photo: Slobodan JOTIĆ eljko Kuprešak was accredited as the new Croatian Ambassador in Belgrade in mid-February. In his new capacity, H.E. Kuprešak gives an exclusive interview for CorD magazine in which he talks about his views of Croatian-Serbian relations and their effect on the region in general.

How would you define levels of economic co-operation between Croatia and Serbia? As of 2000, our economic co-operation has been constantly improving. While statistical data from 2000 showed that the trade exchange between the Republic of Croatia and the State 22 CorD 58 / March 2009

Union of Serbia & Montenegro was a symbolic US$137 million, at the end of 2008 this exchange had grown to over US$1.2 billion, according to the Croatian Statistical Office. This represents growth of almost nine fold. Although the trade surplus is still in Croatia’s favour, it is good to see that this is balancing out. However, we are nowhere near fully utilising the trade possibilities. The tendency in the last few years has been more towards ‘getting warmed up for what lies ahead’, economically speaking, because the two countries are the key factors and generators of this region and their markets are more complementary than competitive. We are also next-door neighbours and business partners who know each other well; our communication is relatively good and we have no language barriers. On the other hand, every step forward in

economic co-operation is also a step forward in improving relations in all other areas, such as politics, culture and sport. Last but not least, we share the joint end goal of EU membership, which implies constant progress in bilateral and regional economic relations. How is the Croatian Embassy planning to improve bilateral co-operation and what do you expect from the Serbian authorities? As before, our Embassy will try to connect and encourage economic players on both sides to improve the economic co-operation. Taking part in many business events, representing the potential and achievements of the Croatian economy, fairs and similar events, as well as organising visits by businessmen and representatives of the business community are just

INTREVIEW |

H.E. Željko Kuprešak, newly appointed Croatian Ambassador to Serbia

ECONOMY IS OUR PRIORITY “There are no legal or lawful obstacles for foreign companies on the Croatian market, including those coming from Serbia” some of the activities I would like to mention. This is what we call today ‘economic diplomacy’, which actually means that more and more attention is given to the economy within the scope of general diplomatic activities. We are going to do our utmost to encourage further economic co-operation and advance the implementations of the CEFTA agreement, which has huge importance for our region and its EU integration. In that respect, we are going to initiate and support each dialogue that leads to complete liberalisation at a bilateral regional level. If we are really keen to improve the trade exchange, then total market liberalisation is the key to better Croatian-Serbian relations, as well as those in the wider region. Aside from the direct benefits linked to the implementation of CEFTA, which is seen through a higher trade exchange and the uninterrupted fluctuation of capital and investments, we are going to try to initiate and encourage all kinds of institutional and economic co-operation. If we can manage to achieve better results in bilateral and regional co-operation, then we will see tangible benefits for the citizens and businesses of both countries, as well as proving the political maturity and our shared understanding of just how impor-

tant our co-operation is. This is not only a prerequisite for achieving full EU membership, but is also a modus vivendi of the contemporary world. Joint access to third markets, i.e. those outside the EU, is also an important cooperation channel which has seen some really successful joint projects implemented in the

What will be your special area of economic development focus in your capacity as Croatia’s new Ambassador to Serbia? My focal point will be to continue what has already been done, initiated and planned by my predecessor. Along with my team and an increasingly expanding Croatian busi-

We are part of the globalised world and, therefore, are not immune to the global crisis; the lack of foreign capital that we both need will hit us hard last two or three years. We are paying particular attention to all plans, decisions and activities of the Serbian Government with regard to the infrastructure sector. The Republic of Croatia has made, and is still making, huge progress in infrastructure projects. We have the know-how, technology, personnel, companies and capital to be a good partner to Serbian companies implementing infrastructure projects. The energy sector is also an important field of co-operation. We have certain commitments within the region’s joint energy market and the global economic crisis will push us towards even tighter co-operation.

ECONOMY

PERCEPTION

PARTNERS

The success of the diplomatic activities of any country is measured by the efforts made to represent its economic interests

If there is a perception in Serbia that Croatian buyers don’t want to buy products with the ‘made in Serbia’ label, then it is up to Serbian companies to deﬁne why

We have the know-how, technology, personnel, companies and capital to be a good partner to Serbian companies implementing infrastructure projects

ness community here, as well as the representative office of the Croatian Chamber of Commerce, the Croatian Business Club and representatives of the state and economic institutions in Serbia, we will try to bring economic co-operation to an even higher level. We we particularly concentrate on advancing so-called higher forms of economic co-operation, such as mutual investments, joint appearances on third markets, regional co-operation and collaboration in the I.T., infrastructure and energy. We will improve economic co-operation through the establishing of better contacts in all scientific areas, as well as in culture, media, environmental protection, sport and whereever else our interests meet and we can raise the quality of life through joint efforts. Moreover, we will try to establish better communication on a daily basis, advance the dialogue and, thus, contribute to overall bilateral relations and the stability of the whole region. This is what is implied and expected of us. CorD 58 / March 2009 23

INTREVIEW |

The Croatian market, though smaller, is very demanding. Aside from domestic companies, we have global ‘players’ who set the pace of a ruthless market game To what extent and how do you expect the global downturn to affect economic relations between Croatia and Serbia? Even today’s top economic experts and leading economic and political powers cannot give you a precise answer to the question of how deep the crisis will go and how long it will last. The only things we do know are how this crisis originated and that it is now truly global. It is really difficult to anticipate how the crisis will affect bilateral relations and the so-called transition countries which have managed ‘to catch their economic breath’, so to speak, in the last few years. What we see and feel at the moment is that we are part of the globalised world and, therefore, are not immune to the global crisis; the lack of foreign capital will hit us both hard. Monitoring the flow and consequences of the crisis in our respective countries, while exchanging information about its economic and social affects and devising measures to combat the crisis, are of great importance and will

help us at a bilateral level. Bearing in mind that we have been hit by the same wave of crisis, our bilateral economic co-operation should become even more important and we shouldn’t allow this crisis to jeopardise this co-operation. If the ‘big players’ do temporarily withdraw or postpone their investments, at least a chance will be created for better co-operation between us, the ‘small players’. Croatia is experiencing a lull in its EU accession progress. How could this relate to the processes of the region’s other countries? Regardless of the current problems with opening or closing certain negotiation chapters, and an evident halt in negotiations between the Republic of Croatia and the EU, Croatia is continuing its internal reforms and the harmonisation of its laws with EU standards. Croatian state authorities have compiled their negotiation standpoints pertaining to 31 chapters and sent it to Brussels. The negotiation structure within Croatian

NEXT ROUND

roatia has made huge steps forward and received a positive mark from the relevant EU institutions. Now Croatia is due to discuss issues relating to the legal system during the next round of negotiations with the EU, which is the best indicator of the Croatian position and the progress the country has made in eliminating corruption. 24 CorD 58 / March 2009

state bodies is led by the State Delegation for Negotiations on the Accession of the Republic of Croatia to the European Union, headed by Croatia’s Minister for Foreign Affairs and EU Integrations. This delegation is in charge of holding direct political negotiations with EU members and institutions. Then there is the Coordination Body for Negotiations on the Accession of the Republic of Croatia to the EU, which is an interdepartmental working group set up by the Croatian Government to take charge of discussing all issues pertaining to the negotiations and reviewing the drafts of proposals relating to Croatia’s negotiation stances. This body is in charge of maintaining the expert and technical level of negotiations with EU states and institutions when it comes to all chapters. Last but not least, there are working groups that are preparing negotiation platforms for each chapter and compiling an analytical review of the level of harmonisation of Croatian laws with those of the EU. When it comes to the European perspectives of the region’s countries, the Republic of Croatia is of the opinion that all open bilateral issues should be resolved with the aim of bettering good neighbourly relations. Croatia also thinks that no such issue should be viewed as an obstacle to the progress that each regional country makes on its way towards the EU, i.e. such issues should not be tied to negotiations about joining the EU - as Croatia’s leading officials have said on several occasions. Considering that Croatia’s strategic interest is for all regional countries to become EU members, our country has no intention of slowing down this process for any country. We haven’t heard announcements regarding major Serbian investments in Croatia, though Delta plans to open its shopping centres in Osijek and Zagreb. Is there political will for the trade exchange between the two countries to grow? The success of the diplomatic activities of any country is measured by the efforts made to represent its economic interests, i.e. strengthening bilateral economic co-operation and enhancing its dynamism. As I said before, one of the priorities of my term in Serbia will be to focus on the economy. Bearing in mind that both our countries sell a good chunk of their export products to the EU market, it is quite possible to expect that this export will falter as a result of the global financial crisis. I think

Croatia’s strategic interest is for all regional countries to become EU members. We have no intention of slowing this process that we can efficiently compensate for these losses if we grow even stronger and encourage the development of economic and trade relations between Croatia and Serbia. We are living in times that only recognise and accept the principles of market economy, i.e. establishing co-operation where companies are able to generate profit together. There are no legal or lawful obstacles for foreign companies on the Croatian market, including those coming from Serbia. The prerequisites for setting up a company and doing business on the Croatian market are the same for all. We should bear in mind that the Croatian market, although being smaller, is very demanding and, aside from domestic companies, we have global ‘players’ who set the pace of a ruthless market game, primarily on the retail market. The second part of my answer lies in the competitive potential of a company to appear on foreign markets. Simultaneously, and due to these competitive potentials, there have been few concrete attempts made by Serbian companies to try to work on the Croatian market. However, those who have done so have had solid success. I would like to mention a Serbian I.T. company as a good example of this, since this company has been quite successful in selling its know-how and technology, while positioning itself within the growing I.T. industry in Croatia. Furthermore, many Croatian shops stock recognisable Serbian brands and Serbian companies are actually standing behind some Croatian products. Every new market appearance is financially straining for a company, hence it is unrealistic to expect that this burden would be taken on by state regulatory bodies or any other institu-

NEIGHBORS We are neighbours and business partners who know each other well; our communication is good and we have no language barriers.

tion. In other words, if there is a certain perception in Serbia that Croatian buyers don’t want to buy products with the ‘made in Serbia’ label, then it is up to Serbian companies to precisely define the reason for this and then find a way to make their products more acceptable to that market. So, the first thing that needs to be done is to ascertain precisely what a Croatian consumer wants to buy, what this product should look like and what the quality should be. Then such a product should be created and offered. Serbia has a completely mistaken view that there are ‘strong entry obstacles’ for Serbian products. Very few people have actually tried to research why this is so or use their findings as a foundation for coming to the Croatian market with their competitive products. Still, the aforementioned examples speak volumes about the thesis that a competitive product will overcome the mistaken view that there are obstacles to Serbian goods being sold on the Croatian market. A recent editorial in the Washington Post described Croatia as “the biggest disappointment in the Balkans”, due to the coun-

BILATERAL Croatia is of the opinion that all open bilateral issues should be resolved with the aim of bettering good neighbourly relations.

try failing to fight corruption – despite the fact that all the countries of the region are facing this problem. Do you have an exit strategy for dealing with this problem and do you think that the countries of the region should work in unity against corruption? What is relevant and should actually serve as the basis for making conclusions and giving commentaries about how well the Croatian Government is fighting corruption is certainly the report compiled by the European Commission. If you read through this report carefully and pay additional attention to the section which pertains to the measures that the Croatian Government has undertaken to fight corruption and reform its judicial system, you will see that the comments do not concur with what was written by the Washington Post. Croatia has made huge steps forward in this area and received a positive mark from the relevant EU institutions. After all, the Republic of Croatia is due to discuss issues relating to the legal system during the next round of negotiations with the EU, which is the best indicator of the Croatian position and the progress the country has made in eliminating corruption.

CRISIS We don’t know how far this crisis will extend, what segments it will affect and how the various state interventions will inﬂuence it. CorD 58 / March 2009 25

H.E. Jean-François Terral, Ambassador of the Republic of France to Serbia

INVESTMENTS IN

TECHNOLOGY W Following French investors, prestigious French technologies are also due to arrive in Serbia this year hen it comes to total investments in Serbia, France takes 6th place on the list of countries whose companies have invested over €500 million. Economic co-operation with one of the EU’s biggest and most significant economies is constantly growing. However, the existing trade exchange and investment levels are far from optimal. This month we speak to French Ambassador in Belgrade, H.E. Jean-François

26 CorD 58 / March 2009

Terral, about the affects the global economic crisis has already had on Serbia and France, as well as further plans for furthering the two countries’ already good economic collaboration. This time around we aren’t discussing political issues.

How would you evaluate Serbia’s current business climate? Just like any other country, Serbia has been hit by the global economic crisis. This could translate into a noticeable decline of economic

growth and hard times for companies. There is nothing original about it in today’s context. Two factors will be decisive: maintaining credit liquidity and Serbia’s capability of drawing in foreign investors, at least to compensate for the foreign trade deficit. Also, maintaining the dinar exchange rate is crucial. I would like to add that after several years when the Serbian authorities have dealt mostly with political issues, what needs to be done now is to eliminate the backlog when it comes to public infrastructure – transport, the energy sector, environmental

INTERVIEW |

protection, etc. The tender that has been invited for selection of a strategic partner in developing thermo-electric power plants seems to me like a good move in that direction. How would you describe the state of economic co-operation between France and Serbia at present? The Serbian authorities often complain that French companies are not that interested in this country. Of course, things can always be better, but I would like to mention that half of the companies from the CAC 40 list (i.e. the 40 biggest companies floated on the Paris Stock Exchange) are already present in Serbia through quite important production investments – Michelin-Tigar, Lafarge, Bongrain-Mlekoprodukt, Tarkett, Société Générale etc. If we take a look at Serbia’s needs in the following 10 years, we can see that quite a few French companies, especially those in the utility sector, can play a significant role. The Serbian authorities should define precise projects, as those are the ones that can determine what Serbia actually needs. Which of Serbia’s economic sectors are the most appealing to French companies? Practically all branches, with following companies already being present: from Bongrain, Maltinex Soufflet, Lactalis, Intermarché Intérexa, all the way through to companies that produce wine or those that process and distribute fruit; from Lafarge, Tarkett-Sintelon, Vossloh Cogifer, Intermost Vinci, Alcatel, through to Tigar-Michelin in the industrial and public works sector; then there are also French banks. How much did French companies directly invest in Serbia in 2008 and have there been any announcements of French investments in 2009? According to statistical data, France takes 6th place when it comes to those making investments in Serbia that are over €500 million. Still, it is difficult to talk about precise amounts – firstly, since the specified amounts don’t always reflect the real investments made, and secondly, because many countries, including France, have been investing through their branches abroad. To be more precise, in 2008 French companies mostly invested in the expansion of their existing business operations and the opening of new branches. We should

CRISIS AFFECTS

ow much will the global crisis slow down economic co-operation between our two countries? Although there is no doubt that the global crisis is appearing, I don’t think it will gravely affect the arrival of French companies in Serbia. What matters is that French companies have development strategies and Serbia can implement a more attractive policy when it comes to attracting investments. also bear in mind that Lactalis acquired Somboled. I can also give you another example and you can decide which category to place it in: mixed French–Finnish company, Consolis, which is owned by French investment fund, LBO, with head offices in Belgium, took the number one spot when it comes to the production of prefabricated concrete elements after its merger with French company Bonna Sabla in 2005. In 2008, this company bought Hungarian company ASA, which in turn owns a production facility in Serbia. I would also like to underline the arrival of Veolia Transport, a company that provides transport services in Belgrade and other parts of Serbia. As you can see for yourself, the answer to your question is quite complex .

The biggest obstacles are those pertaining to the price of real estate, especially in Belgrade What do you think Serbia could do to help boost French investments here? French companies are ready to come to Serbia. We differentiate between the companies that participate in tenders for construction works from those that participate in tenders for the provision of services (like concessions, for example) that are financed from domestic or foreign sources. For the first ones, the crucial thing is the beginning of projects that have been delayed for too long in areas where French companies have achieved globally recognised results (transport, energy, environmental protection). These are companies like Suez or Veolia in the environmental protection field, or Alstom in the energy and transport sectors. Sometimes, Serbian authorities complain about a lack of French companies in Serbia, but that is only the case when these companies haven’t been assigned an appropri-

ate market. I could mention Danone, which failed to become the proprietor of Knjaz Miloš and it was subsequently bought by an investment fund. When it comes to the Horgoš-Požega concession, the Serbian authorities chose a company that was incapable of carrying out the job, rather than choosing Vinci or Bouygues. In short, French companies will get involved in these sectors if professional references become a relevant criterion for assigning a portion of the market, while excluding everything else. The issue of Greenfield investments depends more on individual decisions which, in turn, depend on the assessment of a general context. The biggest obstacles are those pertaining to the price of real estate, especially in Belgrade; respecting competition and intellectual property, with many projects still to be implemented on a market that has shrunk because of the crisis. However, I do still think that some French companies, engaged in catering, event organisation, tool production and many franchises, can develop their activities in Serbia. What steps is the French Embassy taking to improve co-operation between French and Serbian companies and to encourage French investors to come here? I am counting on the visit of the MEDEF delegation (the association of large French companies) in June this year, which will comprise companies that have expressed special interest for doing business in Serbia. I also hope that our co-operation in the food industry will grow. It seems to me that that there’s a lot of room for improvement in this sector. Hence, the Embassy and Crédit Agricole Meridian Bank will take part in the Novi Sad fair, thus encouraging other French companies to come here. By year’s end or the beginning of next, we are going to organise ‘The French Technology Days’, to give French technology a chance to show what it can offer. CorD 58 / March 2009 27

QUOTATIONS This is just the beginning. Laws will be obeyed in Kosovo. Serbia should forget about Kosovo. The same measures, i.e. stop and arrest, could be applied to Serbian President Boris Tadić if he tried to enter Kosovo.” Kosovo Prime Minister, Hashim Taqi, on banning Serbian Minister for Kosovo Goran Bogdanović from entering the “country”

I felt sick after the Parliament session. Everything came at once – the stress and the tiredness; the campaign against me which made no sense whatsoever. I fell and hit the back of my head. I’m in recovery. I feel good now. Everybody who reads the transcript of my speech in the Parliament will see that I never mentioned Ljajić’s religious background or insulted the Bosniaks.” Velimir Ilić, MP and President of the Nova Srbija party, speaking in the wake of the affair related to his protest against Minister Rasim Ljaljić’s organising of a celebration to mark the anniversary of the First Serbian Uprising against Ottoman rule

We should have police in the Parliament and give them batons so they can immediately react in case that someone breaches order and discipline, as instructed by the Parliament’s President.” Borislav Pelević, MP from the Serbian National Party

Let’s see whether we have 126 MPs (the majority) in the Parliament that will support the 28 CorD 58 / March 2009

idea of Serbian citizens having to pay a million U.S. dollars because of the problems caused by a thug and a criminal.” Čedomir Jovanović, MP and President of the Liberal Democratic Party, speaking with regard to the government’s decision to pay a million dollars in damages to American student Bryan Steinhauer for the beating he took from Miladin Kovačević

The Prosecution wishes to inform the public that the focus of our interest is not the journalists who released the classified information, but those responsible for giving such information to the journalists and, thus, committing the criminal offence of revealing confidential information.” Republic Prosecutor, Slobodan Radovanović, following a police announcement that journalists from Borba daily would be brought in for questioning on suspicion of releasing information regarding the payment of damages in the case of Miladin Kovačević

Nobody has the right to pass sentence except a court. I think that this statement has no public support. I don’t know the reason behind it, but there are no court proceedings against General Ćirković and nobody has the right to arbitrate.” Serbian Defence Minister, Dragan Šutanovac, following accusations made by certain NGOs against newly appointed Deputy Chief of Staff in the Serbian Army, Mladen Ćirković, who is allegedly banned from entering EU countries

The current oil processing capacities of NIS are 7.3 mil-

lion tonnes, while the processing level is between 3.8 and 4.3 million tonnes a year. This is due to the low quality of production. Everything will change for the better after the reconstruction.” Dmitrij Mališev, Chairman of the NIS Managing Board

Look at the faces of those who over 16 years old and you will see prominent activists of a clerical-fascist organisation called ‘Obraz’ and an extremist organisation called ‘1389’. These are extended channels, the cavalry men, if you like, of Amfilohije Radović, known in his part of the world as Risto the Satan, who is taking people out onto the streets through his clerical-fascist activities. This implies that we can expect physical attacks on anybody who thinks differently.” Nenad Čanak, President of the League of Social Democrats, speaking after last month’s nationalist protest rallies in Novi Sad

On 17th February we need to declare to the whole world once more the truth about Kosovo being and staying in Serbia. This is the indisputable and unbeatable truth, which is stronger than any lie upon which the false state of Kosovo is built.” Vojislav Koštunica, President of the Democratic Party of Serbia (DSS) and former Serbian PM, in a letter addressing the first anniversary of Kosovo’s secession

In his first interview for a Croatian newspaper from Priština, Kramarić said that he was missing the Osijek air, adding that it was nice being a Croat

in Kosovo because everybody was so welcoming. He also says that he registered his four-wheel-drive in Skopje, since Serbia doesn’t recognise licence plates from Kosovo, so that he didn’t have to take them off and replace them with temporary Serbian licence plates every single time he entered Serbia. What a crook!” Miljenko Jergović, Croatian publicist and writer, comments on the statement made by the former Mayor of Osijek, Zlatko Kramarić, who is now the Croatian Ambassador in Kosovo.

When the euro exchange rate jumps from 75 dinars to 95 dinars in only 45 days, then everything is turned upside down in this country. Can somebody explain to me how it’s possible that everybody is saying that the demand for euros is high when it isn’t? The responsibility of the Governor and the state is to prevent such things from happening, since it is impossible to sell tens of millions of euros each day without printing fresh banknotes. This is what is happening. Somebody is taking the money out of the country.” Dragan Đilas, Belgrade Mayor, speaking on the depreciation of dinar

There is no decision to privatise Telekom at this moment. This talk about privatisation is as old as Telekom itself, since a 49% stake in the company was sold immediately after the company was founded. This company is extremely important for our economy, so the decision to privatise it should not be made in haste, i.e. without carefully analysing it first.” Branko Radujko, CEO of Telekom Serbia, comments on the rumours that Telekom will be privatised this year to bolster the state budget

CorD 58 / March 2009 29

SOCIETY |

“TOBACCO SMOKE: SERIAL KILLER”

TOBACCO

SWORD Serbia was a bit late joining the world campaign to ﬁght against smoking as a phenomenon that seriously affects non-smokers too By Milovan MILIČKOVIĆ Photo Marko RUPENA hen a campaign entitled “Tobacco smoke: serial killer” gets underway, then recommendations come for tobacco production to be halted, and later a law is brought that causes the biggest companies in the industry to consider giving up their business in Serbia – all in the space of a month – it becomes possible to speak about premeditated actions wth only one objective. However, when we consider that an aggressive campaign to ban smoking indoors was launched by others because they do not have enough money in the budget of the ministry

or some who wanted to fill the budget, then we can speak about an accidental, in no way provoked, uncoordinated action. However, the way it ended up could have led to the same result: destryoing an industry, which means not only that the country would lose a profitable sector in the time of the global financial crisis, but it would also ruin the lives of three towns that live on the tobacco industry: Niš, Vranje and Senta. This January saw the Serbian Parliament adopt amendments to the law on excises, proposed by the Socialistic Party of Serbia. These amendments contravene the agreement that the Government of Serbia made with tobacco companies, whilst also opposiing the Action Plan for CEFTA, according to which the goverment is obliged to

C E F TA

J T I

M O N U S

The union estimated that tobacco production is in expansion and abolition of the premium would affect imports

Cristian Cring, CEO of JTI Adriatica, said that this, the only Japanese investment in Serbia, has been brought into question

A mysterious representative of company Monus reportedly lobbied certain MPs for the amendment to be adopted

30 CorD 58 / March 2009

increase excises gradually, under moto of “care for the poorest smokers in Serbia”. Actually, the tobacco industry and the Government of Serbia agreed that excise, which is formed on the basis of the price of a packet of cigarettes, will not be higher than 35 percent, while the fixed excise fot tobacco should be nine dinars, according to that proposition. However, the parliament’s decison means that the excise for the retail sale price of a packet shifts to 38 per cent, while the fixed part of the excise changes to 8.92 dinars per a packet. Following the introduction of the amendment, economists announced significant decreases to budget incomes, as well as the possibility of a sudden growth of inflation due to the increase in the price of cigarettes. What

they emphasise is the fact that excises have been increased above the level agreed when the privatisations took place. That amendment was voted for by the minorities in conjunction with the Democratic Party, DS, who explained it as follows: “you have to cooperate with coalition partners even when you disagree” (Srđan Milivojević, DS). Of course, this decision prompted a reaction from tobacco companies. At a joint press conference, the representatives of DIN Philip Morris, British American Tobacco, BAT, and Japan Tobacco International, JTI, who control a combined total of 90 per cent of the cigarette market in Serbia, warned that if the adopted amendments remained in place there would be a serious reduction of investments in Serbia this year.

Alliance Van Tobacco, the only foreign investor in primary tobacco production in Serbia and one of the world’s biggest sellers of tobacco leaves, has announced its withdrawal from the market Christian Cring, representing JTI, said that this, the only Japanese investment in Serbia, has been brought into question. Meanwhile, Skip Bornhuetter, of DIN Phillip Morris, warned that “favouring cigarette producers who have unknown brands in Serbia, to the disadvantage of those producers who have international brands, would destroy thousands of jobs, prompt lower investments and create a situation where the blackmarket for cigarettes would blossom in Serbia”.

Somehow simultaneously, the media revealed information suggesting that voting on the amendment in question happened to coincide with a visit to the parliament of a representative of the Monus company, which covers seven percent of the tobacco market and is made the winner of the story, as the amendment favours producers of cheaper cigaretes. A story later appeared suggesting that a mysterious representative of the Monus CorD 58 / March 2009 31

SOCIETY |

Tobacco executives: Skip Bornhuetter (Phillip Morris), Luiz Augusto Heeren (BAT) and Christan Cring (JTI) company, acting on behalf of owner Predrag Ranković Peconi, had lobbied certain MPs for the amendment to be adopted. None of the parliamentary parties, nor Monus itself, has confirmed this story. However, the warning of the three companies, coupled with this event in the parliament, led to suggestions from within senior government circles that the introduction of the new amendment should perhaps be examined. Obviously, the amendment will be returned to the parliament for another round of voting.Serbian Finance Minister, Dr. Diana Dragutinović, reacted the most drastically to the amendments, saying that the state violated the agreement with the producers of cigarettes. She added that she is “embarrassed by the fact that the state did not keep its promise”. The possible consequences of the lack of professionalism in the parliament became apparent when speculation broke in the media suggesting that DIN Phillip Morris would withdraw its production to some other country. Though the speculation proved false, all three of DIN’s trade unions reacted. Fearing that thousands of employees could lose their jobs, they announced that

SERBIA

erbian Finance Minister, Dr. Diana Dragutinović, reacted the most drastically to the amendments, saying that the state violated the agreement with the producers of cigarettes. She added that she is “embarrassed by the fact that the state did not keep its promise”. 32 CorD 58 / March 2009

they would launch protests if the parliament didn’t overtturn the amendments. In their statement, the DIN unions noted one more important element of the whole story: by introducing the amendment to the law on excises, coupled with announcements of the agriculture ministry regarding the abolition of premiums on tobacco production, the very existence of a million people involved

be used for planting any other crops. Only three months later it has been announced that premiums are abolished and the agriculturalists were recommended to chose something else unless tobacco production pays off. As a result of this decision, Alliance Van Tobacco, the only foreign investor in primary tobacco production in Serbia and one of the world’s biggest sellers of tobacco leaves, announced its withdrawal from the market. In the end, it appears that these rushed decisions of the parliament will meet revision soon. “I will – I won`t” politics has been typical of all segments of Serbia’s leadership over the last few years. It has led to the return of the debatable amendment to the parliamnet as an urgent action, whereas the Ministry of Agriculture, reacting to the protests of tobacco producers, said that by the end of 2012 tobacco producers will have the right to recourse of 12000 per hectare. And those who wish to start growing other plants instead will have the advantage of getting loans from the state that they do not have to pay back. Without commenting on whether the lobbying of politicians for certain economic inter-

The possible consequences of the lack of professionalism in parliament became apparent when speculation broke that DIN Phillip Morris would withdraw production in the production and distribution of tobacco was being endangared. The workers union estimated that tobacco production is in expansion and that the abolition of the premium would also affect imports within the CEFTA region. Contradictons that accompany the state’s attitude to this field can be found in last year’s actions, when the National office started the action “Let’s wake Serbia up – Let’s build life”. In March 2008, then Minister without portfolio in the Serbian Government, current Belgrade Mayor Dragan Djilas, announced that the government would provide houses and sustainable income for 30 of the most socially affected families. Company DIN Philip Morris gave land for the building of the houses and financed five houses in the first phase. The only condition of the company was that tobacco should be planted on one out of three hectares of land that the families received, while the other two hectares could

ests is allowed, or whether there are deals between foreign companies and certain political structures, health care and investing in the production of something that the whole of Europe wants to get rid of, excise policies “here and there”, cigarette prices “here and there”, European Union politics and the global financial crisis, the fact reamins that the attitude of the Serbian authorities towards the whole situation is worrying. Making it yet more worrying is the fact that these same authorities very much want more investments, just like those that came in the cases of DIN Phillip Morris, BAT and JTI. Not only do existing and future investors know this, but the Serbian public is also aware. As renowned Serbian economist Dr. Danica Popović said recently: “if I abolish premiums in two years, then I am going to abolish them in two or three years, as I said. But I cannot tell that today without them knowing it yesterday. That is not serious.”.

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CURRENT AFFAIRS |

NATO AND SERBIA

COLD FLIRTING When it comes to the Western militaryalliance, Serbia is still ﬂirting on the fringe of an archaic “peaceful coexistence” By Ljubodrag STOJADINOVIĆ he theory of “peaceful coexistence”, developed locally by a close associate of Josip Broz ‘Tito’, could be loosely interpreted as co-existing despite a lack of love – or any other emotion for that matter, including a lack of properly defined interests. There are still signs and traces testifying that the old fox called Broz was a man of The West, who even pulled some weight in NATO. If it hadn’t been so, the likelihood is that in 1948 Stalin’s division would have wiped out both him and his perfect idea of a comfortable

Army The Army will have to (and God knows whether it will be able to) consistently follow the State’s policy on Kosovo. 34 CorD 58 / March 2009

life on the fringes of the Cold War. Some 18 months ago, the then PM Koštunica’s establishment declared Serbia a militarily neutral country. This decision was the result of two interconnected and indisputable factors determining Serbia’s position: the loss of Kosovo; the absence of any notion of how vital a good ally is. Vojislav Koštunica was known more for his super national autism than his cold political reasoning. This was clearly visible in his foreign policy, which could have been perceived as logical if it weren’t for its total ignorance of reality. Serbia could not accept or admit what had happened, determined on-

Minister Defence Minister Šutanovac, prior to assuming his current position, said: “NATO standards are the best in the world!”

ly to contemplate what hadn’t. The decision never to recognise Kosovo’s independence was made. If we hadn’t done that, the whole system of values that Serbia is based upon would have collapsed. However, this political-diplomatic-axiomatic-emotional-ethical stance did succeed in painting the picture of where Serbia stands in reality. The various estimations and forecasts made became unrealistic simply because they were founded on abstract and even utopian parameters. Serbia firmly tied itself to Moscow and its potential power. Political failure could always be justified by imprudence of force, while the indifference shown

Kosovo If Kosovo is a part of Serbia but there are no marks of Serbia in Kosovo no Serbian troops or police; or any state symbols.

Relations with NATO, which had ima time when not a single Serbian ‘boot’ has by the “Great Orthodox Brother” could be explained by “priorities”. Once Brother stepped there? Of course not. The first pre- proved markedly following Serbia’s adRussia resolves all other problems, he will requisite for military neutrality is the pow- mission into the Partnership for Peace prosurely get round to remedying the Serbian is- er that guarantees it. If there is no such pow- gramme, have now gone cold again. Zdravko sue with easy superiority, causing everything er in us, then ‘the power that guarantees it’ Ponoš, the recently replaced Serbian Army to go back to the way it was – a long lost could be an ally with sufficient power to Chief of Staff, tried hard to maintain military relations with the Alliance’s generals compensate for our lack thereof. ‘was’ when Kosovo was an integral part of We could say that Moscow, despite its pro- stationed in Kosovo. We could say that he Serbia (though, of course, it still is today). was even good at this job, although It became apparent that Koštunica’s logic of neutrality Ponoš has been advocating a dynamic he was often branded as a traitor by the über-patriotic centres. wasn’t based on reality and would, idea of fast inclusion into the Ponoš reasoned that the safety of thus, be ineffective. The idea of neutrality is as imPartnership for Peace programmes for Serbs in Kosovo, in its reality, depended on collaboration with KFOR portant as the perpetual Serbian years and many Serbian officers have and not some far reaching Russian quest for allies. Neutrality was policy and its declarative reactions. found in the collapse of the logic of been sent to U.S. military academies An idea to revise the Kumanovo the man who declared it. If Kosovo is a part of Serbia but there are no marks of Serbian principles regarding Kosovo, has re- Agreement, signed on 9th June 1999, was Serbia in Kosovo (no Serbian troops or po- mained absolutely indifferent to Koštunica’s launched. The Kumanovo Agreement could lice; no courts, borders or any state symbols) neutral excess. Nevertheless, the new gov- best be described as a long since outdated docthen where’s the neutrality; neutrality in re- ernment hasn’t revised the decisions made by ument whose many stipulations became obsolation to whom and what? Can a territory be Koštunica’s executive. Neutrality has some- lete as of 17th February 2008. However, two declared in a neutral context if it has been how managed to survive as part of Serbia’s revision-worthy paragraphs did survive – the first relates to the no-fly zone for Serbian avia protectorate for a full nine years, during political apathy. CorD 58 / March 2009 35

CURRENT AFFAIRS |

role that NATO played in separating Kosovo ation, while the second refers to the ‘adminis- sent to U.S. military academies. Of course they couldn’t have erased the from Serbia. Despite all of that, and despite trative boundary’ (see border) with Kosovo. President Tadić hesitantly accepted the memory of 1999 from their minds. Speaking a vague and increasingly colder atmosphere, first proposal, though it later emerged that on their behalf, Ponoš said: “We could never Serbian officers were building up close relahe hadn’t even dealt with it much and it was forget what happened. We are going to try to tions. Even Defence Minister Šutanovac, in an inspired speech prior to assuming his currather all part of the ultimately nonsensi- forgive, but we have to move on.” The Serbian army accepted NATO stand- rent position, said: “NATO standards are the cal ‘Balkan military games’. Nobody from Brussels had the time to think about revising ards in schooling, training and weapons. It best in the world!” He soon ‘swallowed’ that some archaic military documentation. From seemed that such orientation was the best pos- sentiment though, when he became Defence Minister in Koštunica’s governtheir point of view, all ‘adminisment. The relativism of his statetrative lines’ had become irreleRelations with NATO, which had ment was not only quite adept, but vant with regard to the relations improved markedly following Serbia’s also quite political. He even tried between ‘two independent neighbouring states’. admission into the Partnership for Peace to explain the shift in his attitude towards neutrality by saying: “If It was soon after this that programme, have now gone cold again we are neutral, then we are neuGeneral Ponoš was relieved of tral. In any case, we are going to duty, following a public and relatively spectacular bust-up with Defence sible option for a small nation and its army try to find our way around.” We should note that what ensued in the Minister Šutanovac. Ponoš has been advo- (you can only win the war if you don’t take cating a dynamic idea of fast inclusion in- part in it). However, Serbia was on very risky army could only be described as confusion. to the Partnership for Peace programmes for ground when it came to military policy and al- Were Serbian officers abroad going to conyears and many Serbian officers have been lies of the state. The state policy underlined the tinue with their schooling, or would they re-

36 CorD 58 / March 2009

He will have to reconcile the turn home? Was this a new U-turn, For now, the Serbian President is two opposite principles – never quite like the one that shattered thousands of Yugoslav officers in managing to walk the tight rope across a steering away from the European path, but never giving up on the period from 1948 to 1950? Or deep political abyss pretty successfully Kosovo, though one is a firm was this totally different? principle and the other is a firm We can conclude that the conflict between Ponoš and Šutanovac was very much a conflict between belief. Which one is which, we cannot tell. Serbia is no longer considconcepts, aside from being a personal clash. General Ponoš said on ered a military power and it cannot survive without allies. Serbia is not several occasions that the Defence Ministry was in the way of the dy- a Russian pendant and it cannot do without NATO. Brussels still hasn’t namics initiated by the army, even stopping the process entirely with provided proper guarantees to Belgrade that would allow Serbia to feel able to remove itself from the consolatory auspice of Moscow. Serbia its conservative obstruction. “Dynamics”, in Ponoš’s words, also meant the quality of the mili- is in Europe, but still displays many features of an Asian cult leader. Serbia is not the only country that needs to be friendly with the tary’s collaboration with NATO. All of this transpired after the euphoric opening of a NATO liaison countries that bombed it some 10 years ago, but maybe such closeoffice in the very building that houses the Army Headquarters, fol- ness is necessary to replace an old injustice with the new one. lowed by the toning down of good emotions and the taking steps of within the protocol framework. The Army will have to (and God knows whether it will be able to) consistently follow the State’s policy on Kosovo. The State’s authorities claim that problems will be dealt with through political and diplomatic means. President Tadić hasn’t missed an opportunity to mention that “the Serbian Army is an integral element of the country’s foreign policy”. This claim, generally speaking, could be true, but in the aforementioned case it was burdened by impossible conditions. There is very little support in Serbia for any notion of war with Kosovo again. The feeling of such infirmity – a result of the terrible mistakes made by Serbia’s political elite and the super powers that we had to defend ourselves against to the point of self-destruction – have become a reality. Still, we believe that this territory is not lost forever, just like Serbia’s power is not going to be controlled by its enemies forever. Some people say that in the distant future Serbia will get the chance to retrieve Kosovo, but by then such territorial and political acts would be irrelevant. Nobody will care about it any longer, or care about getting Kosovo back as some form of mythical ritual. This determines our attitude towards NATO. No valid survey exists regarding Serb views of NATO as friend or foe. Actually, there was a survey that showed that they were mostly indifferent, i.e. they couldn’t care less. For now, the Serbian President is managing to walk the tight rope across a deep political abyss pretty successfully. He is the very image of a contemporary Western statesman, the one who holds his political values and principles under the pillow, like the Bible. At the same time, he is a symbol of a new version of Serbian populism, a man who holds huge power in his hands. CorD 58 / March 2009 37

The Eﬀects of the Current Financial Crisis and Serbia’s Position in It

FINANCIAL

EARTHQUAKE Most of the ﬁnancial editions around the globe spend their resources researching the effects of the current ﬁnancial crisis that is affecting people worldwide 38 CorD 58 / March 2009

LEADERS |

ent segments: real estate prices, equity prices, unemployment, GDP drop and growth in public debt. Importantly, that they have researched only the so-called ‘banking crises’ caused by the lack of liquidity in the banking sector. The first effect, and probably the one that has the most immediate impact, is real estate prices. Currently, real estate prices around the globe are steadily going down. According to the Case-Schiller index, prices in the U.S. have fallen by about 28% from its peak. It’s worth noting that during the Great Depression real estate prices in the U.S. only fell by about 13%. So the severity of this affect is already very present in the U.S. economy. It is also noteworthy that the historical average for all of these crises is a drop of 35.5% and that they last about six years before prices recover. The price drop was very pronounced in the 1997 crisis in Hong Kong

to the rescue is long, gone as many of those Serbs expect to see real economic hardship in their host countries and will be more reluctant to buy real estate in Serbia. The second effect studied by ReinhartRogoff was the price of equity markets. The average drop in stock prices was about 56% and lasted an average of about 3.5 years. Interestingly, equity prices fall more sharply than those of real estate, which is something that one can deduce from the historical volatility of these two asset classes. The current crisis has shown that its first victim, the small country of Iceland, suffered a severe drop in equity prices of over 90%. It is also important to remember that during the Great Depression prices of stocks in the U.S. fell by over 60%. In 2008, the U.S. stock market lost 37.5%, as measured by the SP500 equity index which covers the 500 largest companies

Serbia is facing economic challenges like the rest of the world. The country is facing falling GDP growth, falling exports and lack of direct foreign investments

By Vladimir DJUKANOVIĆ espite all that has been written, very little research has been presented on what the position of the world economy and markets a will be fter the great winds of the current turmoil blow over. The most comprehensive piece of research comes from Professor Carmen M. Reinhart of the University of Maryland and Professor Kenneth S. Rogoff of Harvard University. They have covered about 20 financial earthquakes from the Great Depression in the U.S. in 1929 to Hungary’s financial troubles of 2008. They have measured the effects of the troubled financial times on five differ-

and the Philippines, when prices fell more than 50%. Prices of houses and offices have a profound impact on the way banks think. These assets are most commonly used as collateral for debt, so it’s clear how a sharp drop in prices causes banks to stiffen banking covenants. They often require a higher ratio of real estate price to debt, so businesses can underwrite less debt due to falling prices and the amount is even lower due to the higher ratio required. Real estate prices in Serbia have fallenby about 10%, according to the local office of King Sturge. I keep hearing arguments that prices in Serbia will not fall much further, mostly because the country ‘needs’ an additional 30,000 apartments, according to King Sturge, and up to 100,000 if we listen to some other real estate players in Belgrade. I believe that this is a naïve argument, as the market is currently seeing very low level of activity. The hope that the Serbian diaspora will come

in America. The index has lost another 7.5% so far this year. The European markets lost 43.6% in 2008 and another 8.1% this year. We can see that lost value in the equity markets is substantial. And if we take the start of 2008 as the beginning of this crisis, it is obvious that we are only half-way through the storm. Equity markets play a dual role during these difficult times: first, they have a negative impact on sentiment, as people see their wealth shrink, and, second, they take away the currency from public companies. I would here emphasise the second ef-

CorD 58 / March 2009 39

LEADERS |

Vladimir Djukanovic is an economist and partner at Crisio Capital, London-based investment ďŹ rm. He is also on the board of the BristishSerbian Chamber of Commerce. fect, as low equity prices hinder companies in undertaking new investments because the price of issuing new equity is high. Stock prices in Serbia plunged over 75% in 2008. They dropped another 5% this year. It is difficult to compare the equity market in Serbia with the rest of the world, because of one towering difference: liquidity. During its most active days, the Serbian market was miniscule in comparison to developed Western stock markets. The total market capitalisation of the Belgrade Stock Exchenge is about 760 billion dinars, or about eight billion euros. Today, only 1.4 million euros worth of stocks have changed hands on the exchange and there are 1,864 listed companies. I believe the Serbian equity market, due to its size and lack of liquidity, is an additional burden on the companies listed. It is unlikely that any professional investors will spend time and money investing in Serbian companies if they cannot quickly enter and exit their positions. Talk about putting all regional exchanges under one umbrella should be at the forefront of economic reforms in Serbia and the Balkans. The third effect is the rise in unemployment. Their research shows that, on average, unemployment rises by about 7% over a 40 CorD 58 / March 2009

five-year period. The rise in unemployment is often more pronounced in developed economies than in emerging ones. The reason for this is more flexible wages in the emerging markets, which help to absorb the shock of lower economic activity. For example, the crisis in Finland in 1991 added almost 14% to the unemployment level, mostly due to a very rigid wage policy. On the other hand, Malaysia and Indonesia experienced only a couple of percentage points of increase during the turmoil of 1997. During this crisis, U.S. unemployment has from 4.5% to 7.5%. If we stick to the averages offered by Reinhart-Rogoff research, the U.S. unemployment could go up to 11.5% or more. This could put additional pressure on the global economy, as American consumers are usually the ones helping the world overcome economic difficulties quickly. If more people in the U.S. lose their jobs and this process takes several years, the belief that the U.S. con-

sumer is always there to bailout the world economy could quickly become an illusion. Unemployment data in Serbia is very difficult to decipher and often there are several sources that produce different levels of this vital economic measure. According to Vladimir IliÄ&#x2021;, of the Ministry of Economy and Regional Development, unemployment was at about 19% in the summer of 2008. I must note that the total number of employed people has not risen, but that the total number of those looking for work has gone down. In other words, unemployment is only statistically going down when compared to 2007. The main issue now is that the government is not updating their unemployment numbers often enough. This should be done on a weekly basis, as this data is especially important during economic hardship. The only way for Serbia to avoid a large jump in unemployment is to be flexible in its wage policy. Putting any additional pressure on wages will inevitably result in higher unemployment. The fact that the collective agreement is put on the back burner is very encouraging, as its implementation would cause employers to severely cut their workforces. The fourth effect they examined is GDP growth. The good news is that the cycle needed for the GDP to recover is little less than two years. This is still much longer than a typical recession, which usually lasts 2-3 quarters. This still shows that recessions which are caused by a banking or liquidity crisis are more serious affairs than a typical cyclical recession. The average drop in GDP for these recessions is 9.3%. This data is skewed by a 28% GDP drop during the Great Depression and the Argentine crisis of 2001, when their GDP fell by 22%. Nevertheless, data shows

that banking crises often cause a sharp drop in GDP that takes about twice as long to get out of when compared to a typical recession. This measure is often most quoted by the public and experts, as it shows the realised potential of a given economy. A protracted recession will have a severe impact on wages and living standards around the world, also killing the dream of a new age of sustainable economic growth. It will show that a business cycle is still present and that severe recessions are still a concrete threat to our aspirations. GDP growth in Serbia is also under pressure. The most recent estimate of NBS Governor Jelašić is that Serbia will grow 1.52%. It is important to emphasise that this is the central bank’s ‘optimistic scenario’. So we can conclude that Serbia could easily slip into a recession. As insufficient data is provided about Serbia’s economy, I believe it’s only a guessing game trying to estimate GDP growth in Serbia for the current year. And the final effect researched is the rise in government debt. They have discovered that a defining characteristic of the aftermath of banking crises is the pile-up of sovereign debt. The average increase of debt after crisis is over 86%, i.e. governments almost double their debt burden after a crisis in order to meet their obligations. The curios conclusion is that most of the increase does not come from bailouts during the crisis, but from the fall in tax revenues after the crisis and increased government spending. The conclusion from the above data is that banking crises recessions are more prolonged, more severe and result in larger debt needed to overcome them. As the current crisis is still unfolding, we can’t make a full assessment of its aftermath, but we can get a feel

Serbia’s stand-by arrangement with the IMF of $500 million is far from enough for how it might unfold. My conclusion is that we are about half way through the current turmoil, which puts recovery on track for mid2010. What could push this date further back is the fact that the current crisis is truly global, while the crises examined were mostly regional. One could make an argument that the Great Depression was a global event, but we must also note that the world was much less economically integrated in 1929. So where to place Serbia in this global environment? The biggest question for me is whether the Serbian government will default on its international obligations? Serbia is facing economic challenges, like the rest of the world. The country is facing falling GDP growth, falling exports and a lack of FDI. Currency reserves fell to 8.3 billion in January from 9.1 billion in December. This number includes 400 million euros received from Russian partners as a payment for NIS. At this pace, with spending about 1.3 billion euros to defend the dinar, Serbia has only about six months of reserves left if everything else stays the same. The stand-by ar-

rangement with the IMF of some $500 million is far from enough. This amount must be in the billions in order to provide another six months of security for the system to stabilise. So with more determined help from the IMF Serbia could avoid complete economic collapse in 2009. I would also like to emphasise the importance of our exchange system, which is fully liberalised. It is important to avoid the temptation of fixing dinar to a certain rate as that would cause the imbalance within the system to balloon quickly and the country would quickly default on its international obligations and the economy would collapse. From my private conversations with Serbian bankers, they are placing dinar anywhere between 100 and 125 for euro at the end of this year. This would be difficult for our population but the floating exchange system is the most efficient way of deflating wages, which is something Serbia must do in order to be more competitive in European marketplace. This is also a unique opportunity for the current government of Serbia to depress its size and especially local administrations. It is also an opportunity to be more pro-active in promoting Serbia’s special position as a free trade zone for producers seeking to sell their goods in Russia. These are trying times for all of us, but the good news from ReinhartRogoff research is that there is life after a banking crisis. CorD 58 / March 2009 41

CORPORATE MAN |

WORLD STUDENT GAMES, UNIVERSIADE 2009

BELVILLE IN

BLOCK 67

A whole new residential area of Belgrade, consisting of 1,600 apartments, has been built in just a year and a half – well in time for the upcoming World Student Games, to be hosted by Belgrade this summer By Vanja KALINIĆ Photo Slobodan JOTIĆ

It is worth noting that around a hundred Serbian companies and more than five and a half thousand people were involved in the construction of Belville? The main contractor is Delta Invest. We have eight subcontractors, 12 installation companies and more than a hundred suppliers. Only people from Serbia are involved in this project. The only foreigners are a company from Republika Srpska, which finished its work in the initial phase of construction.

in Belgrade are made by mounting ready-made parts onto a prepared construction, while this façade is made on the spot. Parts are brought from the factory, assembled and mounted as uilding a complex of sixteen higha complete façade. In order to show people rise buildings in just 18 months, what one of the 1,858 apartments looked like, signing 1,100 contracts and selling our basic idea was to build a life-sized model. 1,200 apartments in six months, Right now we are talking in our sales pavilion, 55 per cent of which were paid for a 6l m2 apartment, with first class oak floors, in cash, and all this before the deadline – you 2.45 m high doors and 2.75 m high ceilings. would think that achieving a feat like this in This apartment is fully equipped and furSerbia might be impossible. However, it hasn’t nished. The furniture is not included in proved a feat too far for Slobodan The financial crisis didn’t affect the the price, but the installations, air conMihajlović, executive director of Blok ditioner, heating, etc., are. 67 Associates – investor in the Belville actual rhythm of construction, but project being brought to life in New rather impacted on the most sensitive You also brought some modern Belgrade’s Block 67. “The complex consists of 14 resisolutions to the Serbian part of the chain – potential buyers technical dential and two office buildings. They construction market? are all named after flowers. We just needed We stepped out from the usual frame and The Belville complex has also made to mark them with numbers and they gave us unique innovations in the construction used materials that can usually be found only only three numbers for all the buildings. The process? in units sold in the high luxury category. The property register uses Cyrillic script, so we complex has 64 lifts of the latest technology, will have to add letters up to ‘њ’ to the num- Yes, we applied a completely new technol- generators that are automatically activated in bers, but that will be a nice footnote; a cherry ogy to make the façade of the first business case of a power failure, firefighting safety, unon top as it were” says Mihajlović. building. The façades on all the other buildings derground areas and garage ventilation that is

FROM MEADOW

UNIVERSIADE

TECHNOLOGY

We began the project on 17th July 2007 after an eight-month delay. At that time this place was just a meadow

Universiade 2009 will use the complex from May to August. After that it will be given back to us in the same condition

The complex has 64 lifts of the latest technology and generators that are automatically activated in case of a power failure

42 CorD 58 / March 2009

automatically activated if the concentration of carbon dioxide increases. It is a new quality of life that we’ve never seen on this market before now. The foundation of our business is the pleasure of the buyer. Following the pattern of positive experiences in Europe and the rest of the world, we want to bring back building superintendents, while the whole block will be supervised by the latest security system.

Beijing and London – the cities that hosted the last two Universiades before us. Universiade 2009 will use the complex from 1st May to 15th August. After that it will be given back to us in the same condition it was received by them. By 1st October we will refurbish the complex: the parquet will be re-varnished, the walls painted and all minor damage repaired.

You are obliged to hand the keys of all the buildings over to the Universiade 2009 Company by 1st May. Did you need to make any special adjustments to the apartments to cater for the needs of the athletes who will live there during the summer? We hope that we will hand over the keys for the first seven buildings by 1st March. The second phase includes the next seven buildings, plus two more, and we will finish the residential area by mid March. The apartments will be equipped with furniture bought by the Ministry of Education. Following the closing of Universiade, this furniture will be given to student dormitories and schools - the Universiade will be an endurance test for this furniture.

What is the profile of the buyers; are there any foreigners? Approximately 10 per cent of the apartments were bought by foreigners – Russians, Chinese, Canadians and Israelis – people who run their businesses in Serbia and need appropriate accommodation. Still, the majority of buyers are from Belgrade and we also have buyers from other parts of Serbia and our Diaspora.

How did you convince buyers to agree to have someone else living in their apartments before them?! There were some jokes: will they need to cook for the athletes, who will get which room, etc. However, these projects are being realised at the state level. It was the same in

What is the price per square metre? The price is €1,950 plus VAT. This price was determined by the costs of the project. For us that price seems very realistic at this moment. We did not build empty spaces with four empty walls without windows, just so we could have 1,850 different versions of the same apartment. We decided to hand over the keys of fully completed apartments; we wanted to show what we’d created. Did the world economic crisis have any affect on the finalisation of construction? We began the project on 17th July 2007

SPANISH KEEN TO CONSTRUCT IN SERBIA

t the beginning of the ‘90s, you left Belgrade to go to Spain, where you left a career in tourism in favour of the world of real estate. At the end of 2007 you came back to Belgrade. Who called you back? I came back to realise this project. My profession and knowledge comes from tourism. I had intense business contacts with Serbia. For the past seven years Serbia has been a market with very strong potential in the area of real estate. I had a lot of contacts between Spanish partners and Serbia. They have tried to find opportunities for co-operation, but none of those projects succeeded – either because of legal difficulties or because the situation was always somewhat worse than they had expected.

after an eight-month delay. At that time this place was just a meadow. Delta Real Estate and Hypo Alpe Adria bank, as the founding shareholders of Blok 67 Associates d.o.o., and Delta Invest, as the main construction company with clearly positioned goals and completion deadlines, began this battle with time. With great satisfaction and huge effort, everybody gave their all in the organisation and realisation of this massive project. The financial crisis didn’t affect the actual rhythm of construction, but rather impacted on the most sensitive part of the chain – potential buyers. Do you expect to struggle to sell the remaining 400 apartments? Our deadline is the end of this year. If we consider the pace at which we sold the first thousand, we have a good chance of selling the rest by the end of 2009. All the one-room and one-and-a-half-room apartments have already been sold, but there were fewest of these apartments in the total offer. Did you have any doubts about the project’s feasibility? It wasn’t easy to look at an empty meadow and imagine almost 250,000m2 of built property, with the clock ticking. However, a good plan, an extraordinary team of experts and a professional relationship led to a construction process that was stopped only for four days – two Christmases and two New Years. We worked in three shifts during the entire process. It was a real challenge. Sometimes it seemed as though floors were growing across the whole settlement through the night, as though the invisible magic wand of Professor Dragan Buđevac and his team was putting everything in its place. I even jokingly compared them to famous illusionist David Copperfield. When we completed the top floors of all the buildings, one of the buyers called us with concern, having noticed that no new floors had gone up in a whole week. CorD 58 / March 2009 43

ECONOMICS |

SCOTT BEDBURY, WORLDFAMOUS BRANDING EXPERT

A BRAND CA BE CONTROL “A brand used to be just a seal, but today a brand is everything we think and feel; it’s something we often can’t even describe. A brand is a country, a political party, a religion” By Miroslava CVEJIĆ-KOVAČEVIĆ hat do Nike, Disney, Mini Cooper, Virgin, Apple, Starbucks, George Bush, Barack Obama, Osama bin Laden and your mother have in common? This is the exact question that Scott Bedbury, one of the world’s most famous brand experts, posed at a forum in Belgrade’s Sava Centre, which was held as part of the fifth annual Brand Fair. This was Bedbury’s first visit to Belgrade, and Brand Fair’s organisers admit that they finally managed to secure Bedbury’s participation after two years of trying. Scott Bedbury, who entered the annals of branding history with his legendary campaigns for Starbucks and Nike, is one of the worlds most sought after speakers when it comes to the subject of marketing and brand development. Indeed, his famous “Just do it”

USA All of us who live in the U.S. have contributed to the bad American brand, because the American brand represents all of us. 44 CorD 58 / March 2009

concept saw him enter the Hall of Fame of the American Advertising Federation. When Bedbury first took up the post of Nike’s global advertising director, the company was placed a distant third behind Reebok and Adidas. Bedbury managed to reposition the Nike brand by launching the “Just do it” campaign, which led to the expansion of the brand range, the conquering of new markets and an increasing number of consumers. During a three-year period Nike repositioned itself as the world’s number one brand, becoming one of the world brand icons with annual revenue of $15 billion. After leaving Nike, Bedbury once again accepted a new challenge – this time at the small but ambitious Starbucks Coffee company. His Starbucks brand repositioning strategy led to major growth and expansion, with Starbucks growing from a few hundred outlets to several thousand cafes in a period of just three years. By reinventing the coffee category, introducing new hit products and redesigning the stores, Bedbury managed

Brand A brand used to be just a seal, but today a brand is everything we think and feel; it’s something we often can’t even describe.

to make Starbucks an indispensable daily port of call between home and work for millions of people. After working successfully for two big companies, Bedbury went on to establish Brandstream Inc., an independent consulting agency specialised in brand development strategy. Brandstream Inc.’s clients include the likes of Coca-cola, Procter & Gamble, Google, NASA, Microsoft, Visa, Starwood Hotels, AS Watson, Nokia, Volkswagen AG, Mars and many more. Bedbury has proved that his methods help companies achieve long-term success. He is the author of the book “A New Brand World: Eight Principles for Achieving Brand Leadership in the 21st Century”. Marketing experts from Serbia were present at the forum in Belgrade to hear the tale of how Bedbury managed to turn Nike and Starbucks into instantly recognisable brands and success stories in the world of marketing. “They all have a value system and a prom-

Trust A good brand has three characteristics: relevance, resonance and trust. Nobody really owns a brand: it is in the human mind.

N’T LED ise” is the answer to the question posed at the beginning of this text. “Those are the marks of a brand,” says Bedbury. “Just do it” is the campaign that made Nike famous, but it also brought fame to this American marketing expert who always starts by forbidding his clients from saying the ever-so-clichéd word “quality”. “I am currently working on the rebranding of America, which at present has a bad image in the world, as well as a huge foreign debt, and Americans are also major polluters. All of us who live in the U.S. have contributed to the bad American brand, because the American brand represents all of us who live there. The brand of a nation is something you build, just like a company brand,” explains Bedbury. According to this marketing legend, it is important to link two to three values with each brand, but certainly not seven or eight because, he insists, “less can be more”. “A brand used to be just a seal, but today a brand is everything we think and feel; it’s something we often can’t even describe. A brand is a country, a political party, a religion: like Christianity and Catholicism, which is a sub-brand of Christianity. Nobody really owns a brand: it is in the human mind. CEOs are often disappointed when I tell them that they can’t control a brand because it is something that everyone can see on the Internet, on the street, in stores, etc., but certainly everyone wants to have a strong brand.” Bedbury believes that a good brand has three characteristics: relevance, resonance and trust. “All brands are relevant. For instance, per-

The most successful and efficient people who work in marketing need at least six months to narrow the values of a brand into three words, which is how many words you need to describe a brand CorD 58 / March 2009 45

ECONOMICS |

the research you need to be haps I want to pay a lot of monIt doesn’t matter what you do, but why you able to describe the brand ey for a car, but maybe I do not do it. Many people would work at Nike for a on one page in 300 words. want to buy a Ferrari because you should shorten it some other brand is more relethird of the salary they’d get elsewhere simply Then to a single paragraph and vant to me. An example of resonance is the thousands of peobecause they feel it matters where they work then to one sentence. The most successful and efple who were completely addicted to their morning coffee at Starbucks. five years, if we all work well. And in the end ficient people who work in marketing need When one of the coffee shops was closed you should ask them how to close the circle at least six months to narrow the values of a people lined up to get their coffee, unable to by progressing from what the brand is today brand into three words, which is how many comprehend how it was possible that the ca- to what we want it to be? You need to dig words you need to describe a brand.” This marketing guru adds that a brand also fe could be closed. In the end there is trust in deep to find out how consumers feel about a certain product. All three elements are re- a brand. For example, Nike carried out sur- needs a mantra consisting of three to four words quired for a brand to be successful,” stress- veys of teenage consumers by asking them that can easily be remembered and repeated. “In what kind of music they like, how they spend the end it doesn’t matter what you do, but rathes Bedbury. According to Bedbury, one needs to know their time in school and outside of school, er why you do it. Many people would work at a brand well in order to successfully expand it who they are friends with and so on. I must Nike for a third of the salary they’d receive in or make it more desirable or profitable. “How admit that I have co-operated with 50 to 60 some other sports equipment companies simply can you raise a child if you do not know the research agencies, but I can count the one’s because they feel that it also matters where they I trust with the fingers of one hand. In 60 to work,” concludes Bedbury.. child well?” asks Bedbury. “You have to get to know the brands in 70 per cent of cases consumer research is not your companies. It is important what con- good. It is often performed hastily and the sumers think, but it is also important what conclusions are drawn from a very loose inthe company’s employees think. The way formation base,” says Bedbury. According to our interlocutor, psycholthe management perceives their brand is often different from the employees’ perception. ogy is important for researching consumer It is essential that these differing perceptions habits: discovering why people act in a cerare known because changing a brand starts tain way. “It is important to know that peofrom within the company”, says Bedbury. ple want to be safe and acknowledged; they Employees should be asked to first describe want to feel welcome, appreciated, a part of the brand in three or four words, not ten, something bigger, loved and loving, successeight or six. “Then you should ask them how ful. You should take all of that into account they would like the brand to be described in when you brand a product. When you finish 46 CorD 58 / March 2009

CorD 58 / March 2009 47

ECONOMICS CASH IS KING ACROSS THE GLOBE AS CORPORATES TIGHTEN THEIR BELTS

OPPORTUNITIES

IN ADVERSITY

Ernst & Young research into 350 global companies shows a challenging and rapidly changing business environment n Ernst & Young report released in February, “Opportunities in Adversity”, highlights how nearly 350 major global corporates are adapting their business strategies to a deep international recession and how their key priorities are evolving for the next 12 months. As stress rises and the slowdown intensifies how are leading international companies responding?

CUTTING COSTS INTERNALLY AND FREEING UP CASH The starting point for any business is cash and many corporates have already drastically tightened their belts. Nearly 40% of the companies surveyed felt that had been a significant deterioration in the business environment in their individual sectors with over a third noting competitors withdrawing and a rise in bankruptcies. More than two thirds have already implemented increased frequency of reporting risk to their boards. The drive to cut costs has already impacted internal business strategy. Over 80% of respondents have already undertaken a major costs saving analysis, nearly two thirds had instigated a headcount reduction programme and over half had rationalised their IT spend. European companies were more likely than their US counterparts to look to cut costs on Real Estate and IT rather than cutting direct or indirect employee costs. The credit crunch has forced companies to seek alternative ways of improving liquidity. Nearly half of all companies had disposed of or shut down parts of their business and 43% were looking at alternate short term finance facilities whilst 23% were considering options to renegotiate their debt covenants as well as proactively communicating with lenders, analysts and rating agencies and considering renegotiating debt covenants. Barely a quarter said the availability of cash was not an issue. Mark Otty, Area Managing Partner of Ernst & Young EMEIA, said, “This is an important snap shot of global corporates already facing up to a credit crunch and thinking how to respond to a recession. But the business world has experienced serious downturns before and there are opportunities to learn from past crises. There will inevitably be losers over 48 CorD 58 / March 2009

the next 12 months but equally there will be a significant minority of clear winners.”

HITTING CUSTOMERS AND SUPPLIERS EQUALLY HARD The companies surveyed have already been keeping a close eye on both their customers and their supply chain. And with good reason, as over half had seen a deterioration in creditworthiness of customers (nearly 60% in Europe) whilst over half said that some key customers are in distress, and

that there was an increase in the time lag between customer order and cash collection. Companies have adapted their strategies to fit with this new environment with nearly three quarters showing an increased focus on key accounts and over 40% developing new products. A third said that fears about existing customers meant they had broadened their customer basis and a third said they had terminated contracts with customers they perceived as high risk. In terms of suppliers, respondents were split equally between two very different strategies. Half the companies surveyed have narrowed their supplier base to obtain more favourable prices or terms whilst the other half have broadened the supplier base to reduce the impact of the failure of a key supplier. The majority of companies are already communicating more proactively with suppliers, half were negotiating payment terms with suppliers more frequently and over a quarter of companies said key suppliers were experiencing financial distress. Christian Mouillon, Markets leader, Ernst & Young EMEIA says, “Now is not the time to for companies to be conservative or inactive. Research from previous recessions has shown that the companies who will emerge the strongest will be those that clearly identified opportunities to sustain their development during the downturn and that took strategic decisions that distinguished them from their competitors. A period or crisis can provide an opportunity to drive change more rapidly and effectively than a period of prosperity.”

CORPORATES BATTENING DOWN THE HATCHES Companies were also asked about their top strategic priorities over the next 12 months. The vast majority highlighted protecting assets, performance improvement and restructuring their business. In terms of cash management two thirds of those surveyed were considering top down review of current cash management and of cash flows, half building working capital measures into performance objectives of management and 36% considering possible assets that can be turned into cash.

AND WHERE WILL THEY BE LOOKING TO SAVE CASH IN THE FUTURE? There were some fairly consistent messages around where companies will continue to look for savings. Corporates said they expected significant or reasonable savings in their supply chain operations (58%), their sales and marketing (42%),

ERNST & YOUNG EMEIA

he Economist Intelligence Unit on behalf of Ernst & Young surveyed in January 2009, 337 board members of international corporates, over half of which had turnover of $10billion plus, on how the downturn had impacted on their strategic objectives and the way they do business.

Operations (56%) and IT functions (43%). In strategic terms 40% of Global companies and 53% of European ones said they were actively considering selling non-core or non-performing business, an increased use of shared services centre (27%), increased use of outsourcing (31%), making strategic alliances (30%) and moving operations to lower cost locations (31%). Companies particularly saw an increased role for outsourcing for their IT, Logistics and Human Resources. However a reasonable proportion of corporates saw the recession as an opportunity to expand with 34% globally and 38% in Europe thinking of making strategic acquisitions. Dave Read, EMEIA Transaction Advisory Services Leader, “Whether companies are looking to sell parts of their businesses to raise cash to help through a difficult period or are they are actively looking to buy distressed assets from their competitors the same basic rules apply. Be prepared, be flexible, think the unthinkable and take decisive action.”

EMERGING MARKETS AND GROWTH Whilst most developed markets were either perceived as stagnant or in decline companies still saw major opportunities in emerging markets. China (59%), India (45%), South East Asia (26%) and Eastern Europe (31%) were the areas of the world that most global companies believed would have the best growth opportunities. US companies tended to favour South East Asia over India whilst for European companies the reverse was true. Some 18% of companies expect significant growth still in emerging markets in the near future; the majority (57%) expect growth to continue but a slower pace than over the last two years and 25% growth to slow significantly. Christos Glavanis, Managing Partner of Ernst & Young Central and Southeast Europe said “Having observed that the economic power has been moving from developed to emerging economies, from West to East and from North to South, a number of countries in Central and Southeast Europe have demonstrated the potential of driving growth and making their presence known in the global market. Regardless of the extent of the crisis, businesses will be keen to look for opportunities offering greater exposure to these markets, particularly as valuations are likely to be considerably below recent levels”. http://www.ey.com/GLOBAL/content.nsf/EYSEE/Locations_-_Serbia CorD 58 / March 2009 49

B2B |

BRITISHSERBIAN CHAMBER OF COMMERCE IN BELGRADE

“T

WINE CELLAR ALEKSANDROVIĆ:

RESPECT THE PAST, THE VISION OF THE FUTURE

especting the tradition of our family, winegrowers from Oplenac area (since Roman times), the old co-operative from Venčac (beginning of the 20th century) and the Serbian kings’ winegrowers Petar and Aleksandar Karađorđević (before World War II) we have built the wine cellar and modern winery. Respecting climate and tradition, we devotedly followed grape varieties with profound tradition in the Oplenac vineyard area, which was brought forward on the pedestal of great wines, up to The Second World War, by Royal cellars placed beneath Oplenac Hill. As a result of the old family friendship with Mr. Zivan Tadić, former leading royal cellarman, in 1992, from Canada we received the recipe for the brand structure of elite Serbian white wine “Triumph”, which vanished from Serbian viticulture with the destruction of Royal cellars. “Triumph” encouraged us to make these further steps: to produce the first Serbian oaked white wine - Triumph Barrique - to make the most popular Serbian rose wine - Variant, from underreted Black Muscat grapes, to initiate an elite collection of red wines “Aleksandar” (Triumph Noir, Vision and Rodoslov), which are aged in oak for at least for two years and, as mentioned above, to start production of high quality sparkling wines, with the co-operation of winemakers from Champagne, by the “méthode champenoise”. Triumph was recently declared as one of Serbia’s greatest brands. Receiving this award we understand one unusual thing: we never thought that one wine, our wine, could become a brand, but it happened. 50 CorD 58 / March 2009

H.E. Stephen Wordsworth and Sir David Roche

he British-Serbian chamber is a forum for business people andindividuals which will work to improve relations between the twocountries.” Stephen Wordsworth, His Majesty’s Ambassador to Belgrade, hosted a ceremony in his Residence to mark the launch of the Serbian branch of the recently established British-Serbian Chamber of Commerce (BSChC). The Chamber will work on promoting trade, investment and economic cooperation between the UK and Serbia. The Chamber’s 14 founding companies received certificates of membership at the ceremony, while Milan Parivodić, a member of the Chevening Society High Council, and a memorandum on co-operation between the

Chamber President Sir David Roche signed two organisations. “The British-Serbian chamber is a forum for business people and individuals which will work to improve relations between the two countries. The chamber is a non-political, non-governmental organisation and our primary aim is to help British companies find new opportunities in Serbia, but also help Serbian companies showcase their goods to British buyers,” said Vladimir Đukanović, a member of the Chamber’s Board of Directors. “I think that this decision is a step in the right direction, especially in the midst of the financial crisis. The Serbian government commends the formation of the British-Serbian Chamber of Commerce as a way to improve market relations between the two countries. Since 2000, British investment in Serbia has reached more than USD 300mn and that’s the greatest reason for founding this chamber,” said State Secretary in the Economy Ministry, Nebojša Ćirić. The launching event was attended by a number of high representatives of the local British and Serbian business community.

BIDDING DEADLINE FOR CO. KAMENKO GAGRCIN EXTENDED

he Serbian Privatisation Agency has extended the bidding deadline for 69% of river transport company Kamenko Gagrcin to 2nd March. Eligible bidders need to have been active in water transport for the past three years and boast operating revenue of at least €8 million (US$10.3 million) in 2007, the government’s Privatisation Agency said in a statement. Financial investors with total assets of at least €50 million each will

also be considered eligible. The initial bidding deadline expired on 16th February. Serbia failed to sell Kamenko Gagrcin last year after the tender commission decided to reject the candidate proposed by the Privatisation Agency and the ranking of the offers the asset selling body had made. The Serbian unit of cement producer Holcim, Bulgarian electricity producer Brikel and a consortium comprising Serbian companies GP Napred, Hidro-Baza and Karin Komerc MD, all filed bids, but the Privatisation Agency never announced how it had ranked them. Kamenko Gagrcin owns a river port located close to the city of Sombor, in the northern region of Bačka, and a fleet of 20 cargo ships with a combined capacity of 12,600 deadweight tonnes.

CENTROPROIZVOD: DOUBLE EXPORTS IN 2009

ood group Centroproizvod plans to raise production by 20% and double exports to €12 million (US$15 million) this year, in the hope that the food industry will be among the least affected by the global crisis, the group’s general director, Nemanja Popov, said. “The whole of 2009 will be under the sign of big investments, above all in raising production and exports,” Popov told SeeNews in an interview. The company will invest €3.0 million this year in new equipment and infrastructure, aiming to expand capacity. “Last year we produced 20,000 tonnes and had a turnover of €43 million, up 30% from 2007, which is a huge success. For this year we plan a 35% rise [in turnover] and doubling of exports, which were €6.0 million last year.” Popov said that Centroproizvod’s profit is expected to rise by 40% this year, though he quoted no figures for 2008 or 2009.

BMW DIPLOMATIC SALES. AT HOME THE WORLD OVER

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GOVERNMENT LENDS JAT €10 MILLION

DINAR FIRMS

erbia will support its flag carrier JAT Airways with a loan of €10 million (US$12.8 million), half of which the company will allocate to investments in 2009, confirmed Economy Minister Mlađan Dinkić. JAT will have to pay back the loan by the end of the year, Dinkić said in a statement posted on the government’s website on Thursday. The company will use the other half of the loan to back its social programmes. In December JAT asked the government for a €7.5 million (US$10.6 million) loan to pay debt. In December, local daily newspaper Blic quoted the company’s general manager, Sasa Vlasisavljević, as saying that JAT Airways owes some €20 million to Serbian petroluem monopoly NIS and is also legally bound to pay US$16 million annually to its aircraft maintenance company JAT Tehnika. Vlasisavljević also said that the company plans to consolidate its operations and cut the number of employees in the next six months in order to save about €22 million in 2009. A tender for the sale of 51% of JAT Airways at a call price of €51 million failed last year after no bidders turned up.

he Serbian Goverment expects its dinar currency to stabilise after losing nearly a quarter of its value over the last three months, said Prime Minister Mirko Cvetković. The government, in accordance with its €402.5 million (US$518 million) standby deal with the International Monetary Fund, IMF, has endorsed a policy of sliding exchange rate and, accordingly, the government must maintain a certain level of foreign exchange reserves, PM Cvetković said in a statement posted on the government’s site. Serbia’s dinar firmed against the euro this week in a psychological boost after Russia’s Gazprom paid €400 million (US$515 million) for a majority stake in the country’s oil monopoly, NIS, traders said. “These are purely psychological moments. Local media reported that the dinar was going to firm by three dinars and, as a result of the reports, demand for foreign currency has subsided,” a local trader said. CorD 58 / March 2009 51

B2B |

DELTA TO INVEST €360 MILLION IN ‘09

Igor Pavličić and Francois Xavier Mahot

UNITED SERBIAN BREWERIES GET ISO 14001 CERTIFICATE

t the beginning of February, United Serbian Breweries, a member of Heineken Group, was awarded with the highest international environmental certificate - ISO 14001. “Foreign investments, followed by raising production standards and quality, and environmental care have an exceptional meaning for Novi Sad and our city will always strive towards nurturing partnership relations with such companies,“ Mayor of Novi Sad, Igor Pavličić, said on the occasion. According to Director General of United Serbian Breweries, Francois Xavier Mahot, the environmental protection management certificate, ISO 14001, is a standard that is extremely important for companies that want to have an environmentally friendly production, raise customer satisfaction and attain solid quality standards, which is an imperative for the United Serbian Breweries as a member of Heineken Group. Mahot also pointed out that the process of acquiring other relevant standards was currently ongoing in Heineken’s other Serbian brewery, in Zaječar. Mahot also announced the long-term presence of United Serbian Breweries in Serbia and continuation of another €50million investment in the following three years.

elta Holding expects a 36% rise in its 2009 turnover to €3.4 billion (US$4.38 billion), and plans to invest €360 million euro this year. Delta Holding needs to make these investments in order to remain competitive, said company president Miroslav Mišković in a statement. Delta Holding has a business strategy to which it will stick irrespective of the global financial crisis. The company plans to hire 5,000 more employees this year in Serbia and the region. It currently employs 25,160 people. Delta Holding’s retail division, Delta Maxi, expects a turnover of €700 million outside Serbia

JANUARY PRICES RISE 3.0%

erbia’s retail prices rose by 3.0% month-onmonth after falling 1.0% in December, the country’s statistics office said. TOTAL Goods Farm products Industrial goods Drinks Tobacco Services Food

m/m +3.0 +2.2 +1.0 +2.3 +2.6 +14.9 +5.1 +0.7

y/y +8.9 +7.0 -2.1 +7.6 +15.3 +25.8 +14.2 +10.3

HEINEKEN  NEW BOTTLE WITH TRANSPARENT LABEL

he United Serbian Breweries, a member of Heineken Group, is proudly presenting Heineken – the supreme quality beer - in a newly designed bottle with a see through label. “Being so proud of our beer, we have decided to reveal it in all its glory! Instead of a paper label, Heineken bottle now only has a see through plastic label.” Since the very beginning in 1873, Heineken has maintained the quality of its beer. In order to satisfy consumer needs and make drinking beer even more pleasurable, the brewery decided to change the bottle, which they are now proudly presenting.

52 CorD 58 / March 2009

in 2009, Mišković said, adding that the company has frozen its operations in Ukraine due to the global crisis and local instability. Delta Maxi is present in Bulgaria, Albania, Montenegro and Bosnia&Herzegovina with plans to expand in Belarus, the statement also added. Delta Holding filed a bid in a tender for the sale of a 48% stake in Slovenia’s biggest food retailer, Mercator, Serbian media reported. The company plans to further expand across countries in south east europe and buying Mercator should significantly speed up the meeting of this target, it said in November.

Gustavo Navarro

HOLCIM NOT CHANGING ITS PLANS

olcim Serbia announced the production of 920,000 tonnes of cement last year and the achieving of income of €70 million, with clear profit of €10.5 million. The company also announced that the same level of production is planned for 2009. “The plan is to keep the level of production and sale and market position as in 2008,” said Holcim Serbia CEO Gustavo Navarro, further announcing an investment of four million euros during 2009, primarily to improve the company’s system for cleaning and treating waste water. Holcim has not intention of decreasing production capacities and is not planning to decrease the number of employees from the current level of 460 employees. According to Navarro, in spite of the global financial crisis - which has a direct impact on the building industry of Serbia and, thus, an impact on cement production too - Serbia remains one of most attractive markets for real estate in Europe, where demand is much higher than the current supply.

TENDER CALLED FOR MOTORWAY

erbian Infrastructure minister, Milutin Mrkonjić, has announced the start of the process of calling a tender for the construction of part of the northern motorway between Horgoš – Novi Sad. “The Horgoš – Novi Sad section is part of Corridor 10 and has been defined as a priority aim by the decision of the National Council for Infrastructure. The construction of 20 kilometres of the motorway has been planned and the tender call will soon be processed,” said Mrkonjić for ``Blic``. Mrkonjić said that the construction of the motorway Belgrade – South Jadran has been planned by the National Council for Infrastructure by 2012. Projects and negotiations with international financial institutions about loans for the construction of this part will be worked on.

JAFFA PLANNING TO INCREASE PRODUCTION

VOLVO SUCCESS

iscuit factory Jaffa from Crvenka is planning to produce 14,000 tones of products in 2009 - around 28 per cent more than last year - said representative of the company, Milica Ličina. Speaking to journalists at Belgrade’s Brand Fair, Ličina said that last year Jaffa produced one tonne more than the planned 11,000 tonnes of products. In 2008 Jaffa exported around 40 per cent of its products. Over the last five years, more than €30 million have been invested in the factory and the development of its newest production technology.

BEČEJBASED TRIVIT BOUGHT BAG&DEKO

ompany Trivit from Bečej has bought the enterprise Bag&Deko from Bačko Gradište at auction for 470 million dinars. The starting price at the auction, organised by the Serbian Privatisation Agency, was 148 million dinars. Representative of ``Trivit``, Vera Sćepanović, said that the enterprise already is in possession of a bakery in Bečej and flour-mill in Bačko Gradište and that, following the purchase of the company Bag&Deko, it is planning to complete the process and start dealing with the production of healthy and organic food.

“GENEX TOWER” SALE POSTPONED

ew Belgrade’s Genex tower sale, at a starting price of €20.8 million, has been postponed until 27th March, the Serbian Privatisation Agency has confirmed on its website. Genex tower, a garage and adapted penthouse in total, are currently owned by ``Generaleksport`` company, which is being restructured, and potential buyers are obliged to submit a deposit of €2.08 million. The total size of Genex tower is 15.879 square metres, while the garages occupy a space of 6.445 square metres and the adapted room for business in the tower’s penthouse covers an area of 216 square metres.

or the third consecutive year, Volvo Car Corporation succeeded in beating competition in the premium segment in Russia, when the total 2008 car sales were added up. Last year Volvo sold 21,041 cars in Russia. In January 2009 the Volvo XC60 crossover was awarded the Golden Klaxon by the Russian magazine Klaxon. Otherwise, XC60 has been awarded the What Car? SUV of the Year at the magazine’s prestigious 2009 Awards. This model following in the successful foot steps of the larger seven-seat XC90, which was awarded the same title at the magazine’s awards in 2003 and 2004. Up against fierce competition in the SUV class, the XC60 2.4D SE impressed the What Car? judges with its comfort, durability, safety and class-leading refinement. The judges commented “The ride is smooth, so you glide over bumps in the road as though they were never there, and it feels secure and composed in a set of bends thanks to strong grip and impressive body control. Refinement is class-leading, too; there’s barely any road noise, wind noise is well isolated, and although there’s a distant rumble from the 2.4-litre diesel engine as you accelerate, it’s not enough to spoil the calm.” Volvo XC60 is the safest and most stylish Volvo yet. It combines the SUV-like durability and practicality with a coupé profile and sporting driving dynamics. It also offers capacious levels of carrying space and its roomy cabin is designed to offer the highest level of comfort for five adults. New Volvo crossover also SUV of the Year 2009 in Belgium, Chile and in Singapore. City Safety program in XC60 has already won the technology category at the Fleet World Honours Award 2008 and the American Traffic Safety Achievement Award at the 2008 international traffic safety symposium in New York. In 2008 Volvo produced 15,404 units of XC60 and 350,845 units of other models.

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CorD 58 / March 2009 53

B2B |

KRAGUJEVAC ``PUNTO`` ON THE MARKET IN MARCH

GREEK BANKS WILL SUPPORT INVESTMENTS IN THE BALKANS

he Association of Greek Banks is determined to support investments in Balkans, stressing that the investments of member banks in foreign countries has nothing to do with Greek state protection of the local market package of €28 bn. Greek Banks assessed the possible abandoning of their Greek and domestic clients in South-Eastern Europe as “a big strategic mistake”. Concerning capital sources, the Association of Greek Banks point out that they have increased capital adequacy, as well as other sources of funding - such as local deposits, international markets and international organisations that are co-operating with the Central European Bank. In many countries of the Balkans area, such as Romania, Bulgaria, Serbia, Macedonia and Albania, the presence of Greek banks is particularly significant, whereas in some of those countries Greek banks’ market share exceeds 20% of the domestic financial system. Therefore, it is obvious that investments by Greek banks outside of Greece are more of a strategic, and not casual, nature. The presence of Greek Banks in this region is particularly important, not only for local economies but also for the Greek economy in general, since there are more then 8,000 Greek companies operating in the region.

rade Union of ``Zastava`` asked the Fiat board of directors not to transfer 1000 workers into the new enterprise, and they suggest that everybody to remain in ``Zastava Automobiles`` until the Italian company pays 200 million euros. The Fiat delegation together with the directors of ``Zastava`` considered plans on production of ``Punto`` in Kragujevac. The leading man of the Italian giant in Serbia, De Philips talked to the general manager of ``Zastava vehicles``, Mr Zoran Radojevich and the head of ``Zastava Auto``, Mr Zoran Bogdanovich, about the beginning of producing ``Punto``, while there was no mention of paying 200 million euros of the beginning capital of muual company ``Zastava Automobiles

Serbia``. Fitting pieces of ``Punto`` together begins at the middle of March. Up to then problems with customs service should be resolved since the parts for ``Punto`` will not be arriving in lotovi, but in bigger parcels individually.

“TELENOR” RECORDS GROWTH OF 8 PER CENT

BIP PUTS OFF INVESTING BECAUSE OF CRISIS

he new owner of Belgrade beer industry (BIP), a Lithuanian-Swedish consortium, is giving up its planned investments due to the financial crisis, but it is going to keep all employees of the factory - confirmed General manager of BIP, Vilmantas Peciura. The consortium of Alita from Lithuania and United Nordic Beverages, from Sweden, bought 51.9% of the capital of BIP for €21.4 million in October 2007. The buyers obliged themselves to invest €5.1 million into the factory during the first three years, but they announced that they are planning to invest €40 million. “So far we have been dealing well with the responsibilities and during the first year of business we invested half a million of euros, improved the production technology, applied new international standards and introduced new brands and packing,” said Peciura. However, he also confirmed the postponement of the construction of a brewery in Krnjača and closing down of a unit near the centre of Belgrade, as loans are less accessible due to the financial crisis. 54 CorD 58 / March 2009

ompany “Telenor” made an income of 7,96 billion dinars (€93.67 million) within the last quarter of 2008, which is eight per cent more than in the same period of 2007. The number of Telenor customers in Serbia also went up by 67,000 to 2.8 million, said the mobile phone operator. Globally, Telenor’s income in the fourth quarter of 2008 went up by 11.18% to €3.4 billion, in comparison to the same period of the previous year. “The stable organic income growth trend from the third quarter was carried on in the fourth too, in combination with high margins in several countries, especially in Serbia and Bangladesh, as well as in Pakistan, where we put on business on firm foundations,“ it was remarked in the announcement of the company. According to the number of customers, “Telenor” is placed second in Serbia after M:TS, which has 8.4 million customers.

TETRA PAK WILL NOT BE FIRING ITS EMPLOYEES

he head of Tetra Pak’s packing factory from Gornji Milanovac, Indira Petrović, said that there will be no laying off of employees due to the global financial crisis. Petrović said that 82 employees work on the production of food packing and nobody will lose their job. “We expect that this year’s plans in regard to production will be exceeded. The biggest export markets for Tetra Pak are Russia, Iran and Greece,” she added. Production at Tetra Pak Gornji Milanovac is organised in three shifts, while the salaries of employees is a professional secret, thought it is known that they are significantly higher than the average salary in Gornji Milanovac.

SEVERAL HUNDRED MILLION EURO LOAN FOR SERBIAN RAILWAYS

eneral manager of Serbian Railways, Milovan Marković, has announced that several hundred million euros from international loans should be invested in the reconstruction and supplying of trains in 2009. Guarantees for the loans for Serbian Railways will be provided by Serbia`s budget for 2009, the total of which is 342 million euros and US$80 million dollars for the reconstruction and modernisation of the railway and supplying carriages and locomotives. “We are going to do everything in co-operation with the Ministry of Finance and the Ministry of Infrastructure to make the procedures of the loans shorter, but the loans that have basically been approved,” said Marković, adding that procedures for obtaining loans sometimes last for a few years. According to the company’s general manager, Serbian Railways is lacking sufficient trains, which is why some regular routes have been cancelled, at least temporarily, while carriages are being repaired.

PTT MAKES PROFIT OF 2.7BLN DINARS IN ‘08

ast year’s profits of PTT (Post-Telegraph-Telephone) Serbia were 2.7 billion dinars (around €29 million ), said the public enterprise’s CEO Goran Ćirić. In an interview for Beta news agency, Ćirić said that the total income of PTT Serbia in 2008 reached 22 billion dinars, while outgoings totalled 19.3 billion dinars. Ćirić was precise, confirming that around 1.4 billion dinars of Telekom Serbia’s income was included in PTT’s profit.

Stavros Paraskevaides, Dr. Schmidt & Andreas Binder

ANDREAS BINDER  NEW CEO OF MERCEDESBENZ SERBIA AND MONTENEGRO

NEW TEAM LEADER A fter two years of successfully serving as the CEO of MercedesBenz Serbia and Montenegro, Mr. Stavros Paraskevaides is leaving the Serbian and Montenegrin markets to take up a new position as CEO and President of Mercedes-Benz Hellas in Greece. As of 1st March 2009, Mercedes-Benz Serbia and Montenegro will be led by Mr. Andreas Binder. Mercedes-Benz Serbia and Montenegro has achieved excellent results in the last two years, particularly in the truck and passenger vehicle sales sectors. During this period, special emphasis was placed on satisfying customer needs. To this end, €12 million worth of investments were made on various projects, including the opening of the most modern MercedesBenz Commercial Vehicle Centre in Krnješevci, refurbishing the Mercedes-Benz showroom and workshop in Belgrade, opening a new authorised dealership in Šabac - ISN Automotive - and introducing new Truck brand Mitsubishi Fuso Canter to the market. The considerable efforts and achievement of the Mercedes-Benz Serbia and Montenegro team have been recognised through various awards proffered by top industry experts. These include: best performance at the Beotruck Fair ’08; best campaign award for customer loyalty; recognition as the most loved brand in Serbia, and many others. Mr. Paraskevaides’ formal farewell party, held on 3rd February at the Mercedes-Benz showroom in Belgrade, was attended by Dr. Joachim Schmidt, President and CEO of Daimler for Central & Eastern Europe, Africa and Asia, as well as new Mercedes-Benz Serbia and Montenegro CEO, Mr. Andreas Binder, and the Belgrade team. “Mr. Paraskevaides has certainly made a considerable impression, which has been marked by the success of the Company in this highly competitive market. After two years, Mercedes-Benz Serbia and Montenegro has become one of the fastest developing and most recognised MPCs in the Daimler World. Following Mr. Paraskevaides’ accomplishments, one of the tasks for his successor will be to achieve an even higher level for Mercedes-Benz in Serbia and Montenegro,” said Dr. Schmidt Addressing the party, Dr. Schmidt also emphasised: “Our intention is for the following years to be filled with successful sales and a high quality service for all our clients and Mercedes-Benz brand admirers. Despite the difficult time ahead, I am convinced that we are going to fulfil all of the expectations of our customers and meet the demands of the Serbian market`. As of March 2009, the Mercedes-Benz representative office for Serbia and Montenegro is chaired by Mr. Andreas Binder.

CorD 58 / March 2009 55

FACES & PLACES |

The new Compressor Exhibition Hall for furniture and design is formally opened in Belgrade on 19th February. The event is marked by a party organised by companies Nitea, Haus, Kare & Micros Group. Pictured, left-to-right: Branko Matejić, CEO of Micros Group, Milka Tomić-Petrović, President of Micros Group, Slobodan Vučević, President of Droga Kolinska Group, Jelena Matejić, Božidar Đelić, Deputy Serbian PM, and Vesna Ječmeniča, Director of Nitea

Iranian Ambassador in Belgrade, H.E. Seyed Marteza Mir Heydari (right), welcomes Dragan Todorović, vice president of the Serbian Radical Party, to a reception marking the 30th anniversary of Iran’s Islamic Revolution at Belgrade City Hall on 10th February

H.E. Aleksandar Konuzin, Ambassador of Russian Federation to Serbia and Dmitrij Malyshev, Chairman of Board of Director NIS at presentation Guide to Russian Investment in Serbia witch took palace in Assosation of media

A scene from a reception held to coincide with Israel’s 10th February parliamentary elections, hosted by Ambassador of the State of Israel to Serbia, H.E. Arthur Koll (right), at the Israeli Ambassadorial Residence

Left-to-right: Božidar Đelić and Jovan Krkobabić, deputy Serbian Prime Ministers, Serbian Prime Minister, Mirko Cvetković, and Crown-Prince Alexander Karađorđević, pictured in the village of Orašac 250 years after the village witnessed the start of the First Serbian Uprising

56 CorD 58 / March 2009

Members of the newly-established British-Serbian Chamber of Commerce receive their certiﬁcates of membership at the Chamber’s ﬁrst public meeting, held at the British Ambassadorial Residence on 5th February

President Boris Tadić appoints General Miloje Miletić as the new Chief of the General Staff of the Serbian Army on Serbian Statehood Day - 15th February

Winners gather at the closing ceremony for the year-long project to select Serbia’s “number ones” in six categories, organised by publishing house Blic and company TMS Medium Gallup

Left-to-right: President of Local Press, Vlado Filipčev, President of the Independent Union of Journalists (NUNS), Nadežda Gaće, President of the Serbian Media Association, Manojlo Vukotić, and President of Serbia’s Union of Journalists (UNS), Nino Brajević – pictured signing an agreement to establish a joint association of media on 12th February at the Belgrade Media Centre

The fundraising Society for the Construction of St. Sava Temple held its annual general meeting on 19th February. Presiding over the meeting was Serbian President Boris Tadić. Pictured left-to-right: Radmila Hrustanović, Mlađan Đorđević, Milka Forcan and Miroslav Mišković CorD 58 / March 2009 57

FACES & PLACES |

Left-to-right: H.E. Cameron Munter, U.S. Ambassador to Serbia, Radovan Jelašić, Governor of the National Bank of Serbia, Nataša Lekić, H.E. Stephen Wordsworth, British Ambassador to Serbia, and Mrs Lekić’s husband, Serbian Foreign Minister Vuk Jeremic – pictured at Belgrade’s Hyatt Regency Hotel for the annual Robert Burns Charity Ball, organised by the British Embassy

The Svibor Union of Serbia stages its traditional Knights of Steel annual battle competition in 12 different medieval disciplines on Serbian Statehood Day - 15th February

Slovenia’s second largest bank, Nova KBM, opens its representative office in Belgrade on 19th February. On this occasion, Nova KBM President, Matiaž Kovačič, Member of the Nova KBM Executive Board, Manja Skemišak, and Director of the new Belgrade office, Alojz Kovše, present key business figures to the Belgrade media

The ﬁrst press conference marking preparations for this year’s Belgrade Banca Intesa Marathon took place at Belgrade City Hall on 12th February. This year’s race – to be held on 18th April – is expected to attract upwards of 40,000 runners. The occasions saw Director of Belgrade Marathon d.o.o., Dejan Nikolić, (pictured far right) sign a new three-year sponsorship contract with the President of the Executive Borad of Banca Intesa, Draginja Đurić, (pictured 2nd right).

Milorad Čavić, Olympic silver medallist swimmer, and basketball player Mlađan Šilobad, pictured at a Grand Motors party marking the launch of the new Ford Fiesta on the Serbian market

58 CorD 58 / March 2009

President Boris Tadic received the accreditations of four newly appointed ambassadors on 13th February at the Palace of the Federation. Clockwise from top: H.E. Erwin Hofer, Ambassador of the Swiss Confederation; H.E. Toshio Tsunozaki, Ambassador of Japan; H.E. Željko Kuprešak, Ambassador of the Republic of Croatia; H.E. Demosthenos Stoidis, Ambassador of the Hellenic Republic

The 3rd February saw Belgrade host European Perspective, a regional meeting of South-East European countries which included representatives of Albania, Bosnia & Herzegovina, Bulgaria, Croatia, Greece, FRY Macedonia, Romania and Serbia

CorD 58 / March 2009 59

BEAUTIFUL

CULTURE

SOUNDSCAPES

Anybody who is familiar with the tendencies of the Serbian music scene will tell you in no uncertain terms that it’s a scene that’s been going through a crisis for almost 20 years By Irina MARKOVIĆ

ecadence has infiltrated every pore of the Serbian music scene, whether we are talking about composing, interpreting or just being original. If we don’t count a handful of contemporary classical music composers and good rock and jazz fusion bands, there are virtually no authentic artistic creations. The exception to this uncongenial situation is certainly the musical works of Igor Gostuški, a composer who had his first creative impetus in mid-1980s and who is now on the threshold of his mature stage, regularly composing musical scores for plays authored by renowned global playwrights.. Gostuški recently composed music for the play ‘On Emotion’, written by famous British theatre director and drama playwright Mick Gordon in collaboration with actor James Wilby – famous for his roles in Howard’s End, Gosford Park and James Ivory’s awarding-winning 1987 film Maurice. The UK’s critics gave stunning reviews of Gostuški’s work, with the Daily Telegraph describing his contribution as “…a beautiful soundscape…it succeeds in moving you to thought,

Pop critique Technology has gone so far that a bunch of talentless individuals are now making huge proﬁts from very bad music 60 CorD 58 / March 2009

sometimes to intense feeling…” Finding himself in the company of top notch artists, Gostuški showed his artistic prowess from the very beginning of this career, when he collaborated with one of the most successful Serbian directors, Jagoš Marković. Gostuški continued working in the theatre, composing for famous Serbian theatre directors like Tanja Mandić-Rigonat, Ksenija Krnajski, Đorđe Marjanović, Miloš Lolić and current Serbian culture minister, Nebojša Bradić. Exploring his professional boundaries and experimenting with genres and styles, Gostuški continued co-operating with pop stars like Slađana Milošević and Đorđe Marjanović. However, he is most remembered for his classical work – a piano composition entitled Toccatta – for which he made one of the first videos of classical music, produced by Radio-Television Serbia. The video was screened at the tenth Fringe Film and Video Festival in Edinburgh.

The music you create cannot be easily categorised, which is something special. How would you characterise your own music? I often mix and combine various musical styles and genres, since I think that truly contemporary artistic expression should not be confined to existing styles, but rather should break boundaries. Whether we are talking about painting, architecture, design or music, the artist needs to aspire to define and perfect his own thought, language and poetics, which should not be tied down to any style. If you do that, what you get is a tailored suit. I would behave in the same manner if I were a photographer, video producer or fashion designer. My goal is to break out of the genre borders and, just like any other artist, I draw inspiration heavily from the history of my art, i.e. musical archives. I am always pleased to hear when people are perplexed as to which musical style they are hearing. In order for an artist to step out of the genre framework, he first needs to be well acquainted with the genre. If he wants to provide an ironic commentary about the genre, he needs to approach it very wisely and be surgically precise in taking out a piece that he wants to present to the public. The same thing applies when you want to give an ironic commentary about a person – you don’t point a finger at him or her and say “oh, you are funny”. You should approach it more delicately and get to know the person, as well as having a refined sense of humour. The process of creating a successful artistic piece has always been subjected to many aesthetic theories. What is that process like in your case? There is a moment in the composing process when a peculiar relationship between two notes sends me to a place where I lose my view of the real world and the passing of time; when I don’t know whether it’s day or night and am totally disconnected. There and then is where the nucleus of my music is born, when all doubts and hesitations evaporate. Maybe it’s at that point that I’m most connected to myself and the world I’m living in? By contemplating and improvising on the piano, I set aside a certain motif that has a shape, a character. Like, for example, when you see a shirt in a shop window that you really like. Then, you listen through this motif within yourself – you try the shirt on and look at yourself in the mirror. After that, you either speed up or slow down – do you have this in a bigger size, as

the sleeves are a bit short? You change tonalities in searching for the ideal place where this motif will sound the best – do you have this model in blue? You build a harmonious structure around the motif – what will this shirt go best with? You leave the material to spend the night and you don’t deal with it for a certain amount of time. Then, you come to the shop two days later and know exactly what you want to buy. The delete key is also very important, i.e. cleaning away and releasing everything that is unnecessary. When I compose, I deeply believe in the notion that less is more. This means that by having a series of creative procedures you throw away everything that is surplus to requirements and, come the next composing cycle, you will be more efficient and have fewer aesthetic dilemmas.

UK critics gave stunning reviews of Gostuški’s work, with the Daily Telegraph describing his contribution as “a beautiful soundscape”

LESS IS MORE

hen I compose, I deeply believe in the notion that less is more. This means that by having a series of creative procedures you throw away everything that is surplus to requirements and, come the next composing cycle, you will be more efficient and have fewer aesthetic dilemmas.

What is your opinion of modern electronica, on one side, and so-called turbofolk, on the other? This is like the latest trends in fashion or car industry. One day cars will run by themselves. You will be asleep and just by pressing a button the car will take you wherever you want. The technology has gone so far that a bunch of talentless individuals are now making huge profits by making very bad music. Our domestic music scene is a perfect example of that. Most of the stars and starlets in Serbia would only be suitable for pole dancing in night clubs if they lived abroad. I would call this musical prostitution. The fact remains that there is no special talent here. These people are very plain and completely lacking in spirituality. They are visually appealing, but imagine if only their music was played on the radio. All of these singers are convinced that they are special in some way, but they actually possess none of the features of true show business. Look at Britney Spears – perfect choreography, great videos.... It is Oriental sounds and shepherd’s melodies that people find appealing in turbo-folk music. At the beginning of the 1980s, you composed the music for a piece by Miroslav Krleža called “Učene žene” (Scholarly Women), which was a graduation play by Jagoš Marković. The play was very well received, both CorD 58 / March 2009 61

CULTURE by audiences and critics. This success made it possible for you to make it to the Central Stage of the National Theatre with Moliere’s play “The School for Wives“. You have continued working in theatre to this day... Music is an excellent vehicle for writing a theatre play, since it gives the director an opportunity to tell his story about the character, situation or era through only a few moments of music. Hence, it is very important for theatre people to be spiritually compatible and complimentary of one another in order to understand the delicate intricacy of the world, since theatre brings closure and sheds light on all of these complex situations. Laughter is also important – when you laugh at the same things, this shows a certain spiritual closeness. Laughter is like an impulse; it is out of your control. When you laugh at the same things it often means that you have the same viewpoint. This doesn’t necessarily mean that you share the same stances, but that you have a similar understanding of the world. Jagoš had this special talent to convey drama in a very exciting and convincing way, to relay his vision of the play. We were both 20 or so years old. I would be sitting at the piano and he would be walking back and forth, sometimes diagonally, sometimes backwards, reading a text aloud with pages flying all over the room. At the same time, he acted, directed, sang, constructed the set, etc.. I was under the impression that the room was buzzing with creative energy and enthusiasm. We were absolutely sure that we were creating some ingenious stuff. We had a similar artistic sensibility and understood the poetics of the world in the same way. You spent the 1990s working in Vienna, but you came back to Belgrade just prior to the bombing in 1999. Why? My Vienna period was full of contrasts. I went there thinking that I would be staying in Austria only for a month or so, but in the end I stayed for four years. I earned my first money by placing an ad in English newspapers which said that I was giving piano and solfeggio lessons. The first person that called about the ad was a young lady from Belgrade, who didn’t have a clue that I also came from Serbia. She wanted her daughter to have piano lessons. The daughter made very good progress, so more and more pupils came to me. I worked quite a lot and that was a really nice time. Then I started to play the piano in a restaurant – jazz standards, evergreen and similar stuff. In the end, I made it all the way to the famous Viennese hotel – the Imperial. Soon after that I got an offer to do some theatre music for m.b.H Theatre in Vienna. In 1994,

Igor Gostuški, composer Music is an excellent vehicle for writing a theatre play

62 CorD 58 / March 2009

Laughter is also important – when you laugh at the same things, this shows a certain spiritual closeness I did music for the Howard Barker play, Mina, which was a world premiere. In 1996 I met then very famous Croatian writer, Slobodan Šnajder, and I made music for the Austrian premiere of his drama ‘Zmijski svlak’ (‘The Snake Shed’), which was staged in the same theatre. I came back to Belgrade because my father became ill during the bombing. Working in London with Mick Gordon, I suppose you really came to understand what the notion of multicultural means? The more people talk about being multicultural, the less they actually are. You will never hear anybody in London saying the word ‘multicultural’, since that is something that’s just implied. This word has been mentioned year after year in the context of Kosovo and we all know what the situation is like over there. With regard to influences exerted by different cultures, here’s an example of how the Balkans and England permeate each other – the only time Mick Gordon was late for a rehearsal was because of me. He wanted to give me a tour of London nightlife. We started with a restaurant that served really good food and wine, then hit a club, then another one, then one more...We parted ways just before dawn. The rehearsal was supposed to start at 10am and everybody was there at quarter to ten, except for the director. Mick did not hear the alarm clock and turned up around noon. But what is great about this permeation of cultures and their mutual influence is the fact that I made it to the rehearsal at ten o’clock sharp.

CorD 58 / March 2009 63

CULTURE

FEST 2009

MORRICONE CLOSES GUITAR FEST

elebrated Italian composer, Ennio Morricone, 80, held a spectacular concert at the Belgrade Arena on 14th February to close this year’s Belgrade Guitar Art Festival. The concert, attended by more than 6,000 music lovers, saw Morricone conduct Rome’s Symphony Orchestra Roma Sinfonietta. The orchestra, which was founded in 1993, has been co-operating with Morricone for the past 12 years. The Belgrade concerts also featured an appearance by the Belgrade Obilić Choir, while solos were performed by soprano Susanna Rigacci, recipient of the Maria Callas Award. The repertoire included works composed by Morricone for such films as Cinema Paradiso, The Good, the Bad and the Ugly, Once Upon a Time in the West, Once Upon a Time in America, The Untouchables, The Mission, etc. Compositions that Morricone composed for classical guitar were also performed. The three-hour concert at the Belgrade

composing back in 1961, Morricone has made music for more than 400 films and co-operated with many directors, including Sergio Leone, Bernardo Bertolucci, Brian De Palma, Roman Polanski, Oliver Stone, et al. He is the recipient of numerous major awards, among others an honorary Oscar. Morricone’s concert was the pinnacle of the successful and well visited tenth annual Guitar Art Festival. The Festival was opened at Sava Centre by Spanish flamenco guitarist Vincente Amigo, widely considered as the natural successor of legendary guitarist Paco de Lucia. A packed Sava Centre also saw a concert by British musician Sting, who presented a new segment of his musical interest in a performance with Bosnia & Herzegovinian lute players Edin Karamazov. The guitar-lute duo presented compositions with an aroma of renaissance Europe from the album “Songs from the Labyrinth” – a song written by 16th cen-

Arena included three encores and is being considered one of the most exciting music events of the capital at the beginning of 2009. Octogenarian Morricone has become an esteemed musical creator during his long and fruitful career, recognised as the author of musical scores for some of the best and most significant films of the twentieth century. Since he started

tury British composer John Dowland, as well as prearranged compositions from Sting’s opus. Another notable concert at this year’s Festival was held by guitarists Vlatko Stefanovski and Miroslav Tadić, who performed alongside Bulgarian composer Teodosi Spasov and presented the sounds of Macedonia and other parts of the Balkans.

64 CorD 58 / March 2009

he 37th annual Belgrade film festival, FEST, took place in the last ten days of February in Belgrade and attracted many visitors. This year’s FEST offered audiences interesting titles from the world of contemporary film, as well as staging roundtables and forums with numerous filmmakers and guests of the Festival.

FEST was opened on 20th February by top British actor Ralph Fiennes, star of The Reader – the first film scheduled in this year’s programme. The Reader, directed by Stephen Daldry and based on the novel by Bernhard Schlink, won the Chicago Film Critics Association Award, and Fiennes co-star, Kate Winslet, received a Golden Globe for her role. Fiennes was also one of the guest’s of honour at a reception organised by Belgrade Mayor Dragan Đilas. Fiennes took time out to speak to the press about his role in The Reader and his upcoming film, which he is to start shooting in Belgrade this month. This year’s FEST, launched under the slogan “Register yourself!”, included 80 films, among which were winners of major international film festivals – Cannes, Venice and Berlin. The main section of the programme, entitled HORIZONS, included films by Laurent Cantet (The Class), the Dardenne brothers (Lorna’s Silence), Emir Kusturica (Maradona), the Coen brothers (Burn After Reading), Ron Howard & Uli Edel (The Baader Meinhof Complex), Clint Eastwood (Changeling), Matteo Garrone (Gomorrah), José Padilha (The Elite Squad), Sam Mendes (Revolutionary Road), Gus Van Sant (Milk), and many more. Films presented in the competitive section Europe out of Europe, Lighthouse,

Facts & Puzzles and Fantasia. The Festival also included a section of new Argentinean cinema – Sin Limites. French actress Dominique Blanc also attended the Festival to present her new film The Other One, for which she received the Volpi Cup in Venice in 2008. The competitive section of FEST, Europe out of Europe, included eight films. Twelve new film projects, selected from 70 applications, were presented as part of the “B2B” (Belgrade to Business - Industry Meetings) programme, which is dedicated to promoting the national cinemas of 20 countries. The latest Serbian productions were also presented in this

meeting, as well as contemporary Georgian film. The best three projects were awarded with cash prizes of €5,000. As part of the ancillary programme, an exhibition of Polish director Jerzy Skolimowski’s paintings was opened at the Belgrade Heritage House. This author’s film Four Nights with Anna, which was presented at last year’s Cannes Festival, was also shown at this year’s FEST as part of the Horizons programme.

NORDIC PANORAMA 2009

he Nordic Panorama 2009 film series was held at the Cultural Centre of the Belgrade Movie Theatre (KCB) and the Studentski Grad Culture Hall in mid-February. The event, which was organised for the fifth time by BalkanKult Foundation in co-operation with KCB, saw the presentations of 34 films from Northern Europe’s contemporary production – short, documentary and feature-length films. On the first day of the Festival the Icelandic short Two Birds by Runar Runarsson was presented. This film al-

IRANIAN CULTURE WEEK IN BELGRADE

ranian Culture Week was held in Belgrade from 9th to 15th February, organised by the Serbian-Iranian Friendship Association and the IranianSerbian-Montenegrin Friendship Association. The event was opened on 9th February at Belgrade’s Progres Gallery

ready received many awards for best short film of 2008 at film festivals in Milan, Melbourne, Edinburgh, Valencia, Brest and Almeria, while it was also nominated for a Golden Palm at the Cannes festival. Also presented were Danish film Vesterbro, by Michael Noer, Norwegian film Cairn, Finnish documentary Home Away from Home, short film The Last Things and Danny’s Magical Potion – an animated Norwegian film that lasts only one minute. Belgrade audiences also had a chance to see the Finnish film The Butterfly from Ural, by Katariina Lillqvist, which won the award for best animation at the Tampere International Short Film Festival in Finland. This year’s Panorama also included Shadow of the Holy Book, directed by Arto Halonen, which won a special jury award at the international film festival in Georgia and was also nominated for a European Film Award.

by Iranian Ambassador in Belgrade, H.E. Seyed Morteza Mir Heydari. An exhibition of Iranian art was displayed at Progres and the opening ceremony included a performance by the Nasout music group, which plays traditional Iranian music. There was also an evening dedicated to traditional Iranian poetry, as well as numerous lectures on

CorD 58 / March 2009 65

CULTURE

174 YEARS OF THEATRE IN KRAGUJEVAC

he oldest Serbian theatre, Knjaževsko-srpski teatar in Kragujevac, marked its 174th anniversary on 15th February. The anniversary saw traditional awards presented. These included the Joakim Vujić Statuette, awarded to outstanding drama performer Mirko Babić, and the ring with the image of Joakim Vujić, which was awarded to Romanian actor Sebastian Tudor. Joakim Vujić was a fa-

Over the years it has persevered under different names, before regaining its original name in 2007. The theatre was founded during the time of Serbia’s fight for national independence, in a period when the foundations of cultural life in Serbia were established. During these turbulent times the theatre managed to preserve continuity through the performances of different troupes and theatre formations.

bian audiences for his performance at the Dance arena of the seventh Exit Festival. Woolford was followed by performances from Dejan Milićević and DJ Enemi, while the special guests of the second day of the Festival, which was held on Valentine’s Day, were popular musicians Ana Stanić, Skaj Vikler, Marčelo and Slobodan Trkulja. The Love Festival in Novi Sad had a humanitarian character and the idea was to use the money gathered from ticket sales to help buy necessary resources for maternity hospitals, in co-operation with the B92 Foundation and the People’s Office of the President of the Republic.

MOST POPULAR BOOKS

mous Serbian writer and translator who was the first director of the Knjaževskosrpski teatar. The Kragujevac-based theatre was established in 1835, not long after Serbia gained its autonomy under Ottoman rule and the right to establish cultural, educational and medical institutions by a special Sultan’s Charter. Since Kragujevac was the then capital of the reinstated Serbia, Prince Miloš Obrenović chose this town to establish his court with the governing and administrative bodies. Soon after the Knjaževsko-srpski teatar was founded. Iranian film and culture, the tourist offer of this country, as well as the possibilities of economic co-operation between Serbia and Iran.

HUMANITARIAN LOVE FEST IN NOVI SAD

he two-day Love Music Festival, which took place on 13th and 14th February at the Master Centre of the Novi Sad Fair, included performances by 66 CorD 58 / March 2009

It was restored after World War II and in 1965 the theatre initiated the Meetings of professional Theatres of Serbia “Joakim Vujić”, which were organised each year in one of ten towns in central Serbia until 2003. Since 2004, the theatre has hosted the prominent theatre festival Joakim Fest and since 2006 it has also hosted the Joakim Inter Fest. The traditional February ceremony that marks the Day of the Theatre also included the premiere of the play Pioneers in Ingolstadt, authored by Marieluise Fleisser and directed by Belgrade director Ivana Vujić. Belgrade drum & bass band Disciplin A Kitchme and pop bands Kristali, E – play and Mistake Mistake. The festival also included a visual, audio-visual and fashionmusical performance entitled “Zora i Sumrak civilizacije” (The Dawn and Dusk of Civilization) by drummer Dragoljub Đuričić with guests. The star of the second evening of the Festival was Paul Woolford, resident of Ibiza club Space, who is familiar to Ser-

ladimir Pištalo’s novel Tesla, portret među maskama (Tesla, a Portrait Among Masks), which was not even in the top 20 titles in the previous month, reached the top of the list of the most popular books in Serbia in January, reports the knjizara.com website. Interestingly, Pištalo’s novel hit the top spot even before he won the NIN award. After his victory in the NIN Award was announced, the publisher of Pištalo’s novel, Agora, immediately received orders for additional editions due to the increase of interest among readers.

The second place on the most popular books list is held by new novel by Marija Jovanović Dovoljan razlog (Sufficient Reason) – an individual publication by Jovanović, who has attracted a lot of attention since her first book was published in 2000. The third place is held by the book Lovac na zmajeve (The Kite Runner) by Khaled Hosseini. Hosseini’s second published novel is also very popular – Hiljadu

čudesnih sunaca (A Thousand Splendid Suns), which is fifth on the list of the most popular books in January. Fourth place is held by Paulo Coehlo’s Brida (Brida), while sixth spot belongs to Tajna (The Secret) by Rhonda Byrne. The novel Priči nikad kraja (Chatting Never Ends) – a collection of blog posts by Gorica Nešović and Jelica Greganović – attracted the attention of readers as soon as it was published in October last year, and in Januar y it holds the seventh place on the most popular list. The global success that Spanish writer Carlos Luis Zafon achieved with his first novel The Shadow of the Wind (the Serbian version of which was published three years ago) helped his new novel Angel’s Game reach the eighth place. Popular Serbian authors Mirjana Bobić Majsilović and Ljiljana Habjanović are joint ninth with their works Azbuka mog života (Alphabet of My Life) and Zapis duše (Record of the Soul).

OSCAR- THE BIGGEST MOVIE EVENT OF THE YEAR SLUMDOG MAKES IT TO TOP DOG

inally, Slumdog Millionaire got its fairytale ending. The rags-to-riches love story, about an orphan from the slums of Mumbai who hits the big-time on the Indian version of Who Wants to Be a Millionaire? completed a remarkable journey to global acclaim when it spearheaded a triumphant British invasion of last night’s Academy Awards in Los Angeles. The low-budget epic, which was thrust from obscurity to complete an extraordinary clean sweep of the film industry’s award

BELGRADE DESIGN WEEK COMPETITION

elgrade Design Week , to be organised for the fourth time this year from 25th to 31st May at over 50 locations in Belgrade, is intended for all those who want to keep up-to-date about the latest concepts and trends in design, fashion and art – so say Design Weeks’ organisers. According to the event’s organisers, any authors who are interested in participating in the accompanying exhibition programme can submit applications for their previously planned activities if they concur with the duration of this event. Selected authors will be able to promote their artistic work or exhibition space and, thus, become an integral part of the official Belgrade Design Week programme. The candidate programmes should reflect the theme of this year’s Belgrade Design Week – Speed – and the competition is open for all individuals and institutions, including museums, galleries, art schools and academies, art groups, independent artists, students of art schools and academies. Applications can be sent in electronic form marked “za beograd2” and e-mailed to beograd2@belgradedesignweek.com.

season, won eight of the ten prizes it was nominated for at Sunday’s 81st Oscars, including Best Picture and Best Director for its creator, Danny Boyle. It marked a fitting tribute to the infectiously-vibrant film, which mixes its feel-good storyline with a powerful social message that has captured the spirit of the age across several continents, making international stars of several members of its previously unknown cast. Slumdog’s victory was applauded from the streets of Mumbai to the Hollywood hills, but nowhere was the wave of goodwill more keenly felt than in the Kodak Theatre in Los Angeles, where Boyle bounded to the stage before jumping up and down excitedly on the spot. “My kids are too old to remember this now, but when they were much younger, I swore to them that if this miracle ever happened that I would receive it in the spirit of Tigger from Winnie-thePooh.” He explained. “So that’s what I’m going to do. I don’t know what this all looks like on television, everybody, but here in the room, where I’m standing, it feels bloody wonderful.” The success felt like a family affair. Boyle turned up at the event with several of the young stars from the film, who had been flown over from Mumbai for the occasion. The youngsters were a huge hit with both the enormous crowds and the hundreds of stars of stage and screen who were in the audience.

CorD 58 / March 2009 67

ART

HAPPY UNION

The merging of the oldest and youngest film festivals – the March Festival and the Festival of Mobile Phone Film – has ushered in a change that is expected to influence general attitudes towards film By Sonja ĆIRIĆ uring its 56th year, the Festival of Documentary, Animated and Short Film will be notably rejuvenated, thanks to its merger with Serbia’s youngest film festival, the twoyear-old festival of digital shorts “Nova svetlost na dlanu”. This union is expected to benefit both sides. The Belgrade Festival of Documentary Film, known as the March Festival because it has been organised at the end of

Miloš Đukelić, one of the festival’s founders Thanks to web presentations, the festival runs during the whole year. 68 CorD 58 / March 2009

March since its inception, is one of the oldest events of its kind in the world. It was celebrated by authors of the socalled Belgrade School during the 1960s and ‘70s, when filmmakers from different parts of the Ex-Yu region connected through this Festival. Film historians particularly stress a sort of endurance that the Festival possesses: it persisted in a space and time in which several countries fell apart – SFRJ, SRJ, SCG – it was held in a shelter under bomb attacks, during sanctions, under the emotional pressure that followed the assassination of Zoran Đinđić and, last year, the Kosovo problem. In the last few years the Festival has had an international character, but this year’s fusion with the Festival of digital short films is considered as the realisation of the idea to unite traditional and modern forms. The “Nova svetlost na dlanu” festival, popularly named the Festival for mobile phone films because of the basic resources and tools used to create the entries, is a pioneering project in this part of the world. The Festival was founded by Belgrade-based production house “Red Production” with the

aim of encouraging and popularising the mass use of the latest, widely available digital technologies – mobile phones, computers and the Internet, as the new basis for creative visual art. A film created with a mobile phone has a lot of advantages, for example it is accessible to amateurs, it suits strained financial circumstances, it promotes film as an art and as a phenomenon. In short, this Festival refutes all those who claim that the financial situation is suppressing their creativity, that they cannot make films because that pleasure is becoming more and more expensive: in the first year the response of filmmakers was surprisingly widespread – around 400 films were shown, which says enough about the quality of the Festival. The entries were screened on large plasma screens and after the Festival they were made available throughout the year at www.novasvetlost.com. Miloš Đukelić, director and one of the founders of the festival, explains that their festival, runs during the whole year, thanks to web presentations, and those who can’t submit their work in time for this year’s Festival can do so through the website at any time – their film will be in competition for next year. “Researching new media, the mobile phone as a medium for recording film and the Internet as the largest space for its distribution, means that the Internet has become a movie theatre and the mobile phone has become a camera! Film is no longer an art form exclusively reserved for those who went to elite schools and can get expensive cameras, lighting, film and budgets. Rather, film is an art form available to everyone. The mobile phone has democratised film. Anyone can express themselves creatively and, thanks to the Internet, distribute their film across the world. The Festival is an opportunity for us to point out something that essentially changes our attitude towards film. If we realise that in time we can use it in the right way. The Festival has an educational character, but also a populistic one: we motivate people to work like in a film club and we encourage everyone who has something to say through film to say it loudly!” says Miloš Đukelić. Commenting on the union of a festival created and established

as an alternative to official events with a festival that is in every sense official, Đukelić says “The fact that we are organising our event this year with a somewhat slow-paced and traditional festival like the Festival of Documentary and Short Film only shows we are attempting to help each other. They have a budget and a desire to move on from the traditional and the boring, while we feel comfortable with uniting audiences and receiving their media and financial aid. All in all, I think that Janko Baljak, art director and selector of the Festival whose idea it was to co-operate this year, has a vision of how the March Festival should look in the future. And that the vision is close to our idea: film should be a place that gathers the most creative and modern people, not a drain for unsuccessful and frustrated filmmakers who, apart from the idea to be filmmakers with a capital F, have nothing to say that will spark your interest. So, our co-operation is natural and I hope it will be successful.” The participants of last year’s Festival hoped to use their work to put the audience and the jury in a good mood; which topics interested this year’s authors? According to Đukelić, a wide variety of topics and forms. “If last year’s Festival was marked by some sort of video art, animation and experimentation, coupled with strong social elements such as strikes, suffering and poverty, but with a lot of humour, this year the topics are slightly more intimate and introspective. There are many recordings of events that happen in the authors’ homes, but also contemplations on the essence of film language. I can’t say that I see a trend in all this, or any prevailing topics. People are still exploring the equipment they use for shooting and they are thinking about what film is today, which was the initial idea for founding the Festival.” If you compare the box office statistics of movie theatres showing hit films and the visitor statistics on websites such as YouTube or “Nova svetlost”, it is clear who has a bigger audience! The organisers of both festivals expect their union to influence not only their events, but also the global attitude towards film as an artform.

If you compare cinema box ofﬁce statistics with visitor statistics on websites like YouTube it is clear who has the bigger audience!

CorD 58 / March 2009 69

LEISURE & LIFESTYLE

LIFE EXPERIENC

TOP 10 IN 2009

It’s time to once again look back on the year just gone by and reﬂect on what we could have done to ﬁll our days in a better way f you’re not happy with what you’ve achieved, fear not: 2009 awaits and it could very well be the year that you get off your posterior and do all those things that you’ve always dreamed of doing. We’re not talking about life’s little resolutions, like losing a few pounds or giving up smoking, we’re talking about life’s big experiences, like diving out of a plane and traveling around the world. Ring in the New Year with a new you by taking advantage of the top 10 2009 life experience resolutions.

NO.10 - SUNSET OVER AYERS ROCK Rising 863 meters out of Australia’s Kata Tjuta National Park, Ayers Rock (now referred to as “Uluru”) is one of the most remarkable natural wonders in the world. Changing color depending on the time of day, the imposing monolith looks its most incredible at dusk, when the sun sets behind it and transforms the brown face into a fiery red surface. Heighten this life experience resolution by staying at Longitude 131°, a luxurious eco-sensitive hotel on stilts. 70 CorD 58 / March 2009

NO.9 - GO TO ANTARCTICA As the coldest, driest continent on the planet, Antarctica may not be a destination for a lot of package tours, but that’s not to say such packages don’t exist. Well, you can’t say you’ve lived until you’ve traveled to the land of ice and snow, with winter temperatures as cold as -80 celsius and no cities, towns or villages to offer Western-style hospitality. Book an excursion aboard a ship during the Antarctic summer, when you’ll be able to set foot where others haven’t dared tread

E RESOLUTIONS and take in some of the local wildlife, including seals, penguins and reindeer.

NO.8 - RIDE THE VENICE SIMPLON ORIENT EXPRESS

down American classic. Hell, you could even rent a Harley and dust off your old leathers if you want to go all-out. Brimming with more style and soul than James Dean could ever muster, Route 66 covers a total of eight states, three time zones and 3.860 km of road, and is arguably the most famous stretch of cracked asphalt in the world. Prove that you were born to be wild by stopping for gas at run-down trucker stops and staying overnight at dodgy motels with half-lit neon signs.

NO.6 - CLIMB A MOUNTAIN FOR CHARITY Not everyone can do a Sylvester Stallone in Cliffhanger, which is why we’re more inclined to trek across a mountain than risk breaking our necks scaling it. The Kilimanjaro trek offered by Bmycharity is perfect for those who aren’t

Made famous by Agatha Christie’s Murder on the Orient Express, this famous train travels from London to Venice across some of the most spectacular scenery in Europe. Enjoyed by everyone from royals to rock stars, the opulence onboard the Orient-Express is undeniable. From its luxury sleeping cars reminiscent of some of the world’s best hotel suites to its restaurant cars worthy of Michelin stars, the Orient-Express is about as far away from a subway ride as you can get. Beginning at London Victoria, guests board the British Pullman train to enjoy a three-course lunch with wine and Champagne as they travel through the lush Kentish countryside. The train then crosses the channel before moving through the Swiss Alps and crossing through Italy toward the prestigious Santa Lucia station in Venice. With this trip, romance and adventure await.

NO.7 - DRIVE ALONG ROUTE 66 While the newer Interstate 40 will get you from Chicago to Santa Monica a hell of a lot faster, there’s nothing quite like meandering down Route 66 from the comfort of a roof-

natural-born climbers, providing the challenge of a lifetime without actually killing you in the process. Scaling a 5895 m summit is no easy feat and those who embark on the adventure should be prepared to sweat for their charity of choice. The rewards for conquering Kilimanjaro are aplenty, though, with a breathtaking view from the top of East Africa, lush rain forests to meander through and animals including zebras, rhinos and leopards to gaze upon. Choose a charity close to your heart and prove that you too can be a selfless soul. CorD 58 / March 2009 71

LEISURE & LIFESTYLE

NO.5 - JUMP OUT OF A PLANE

NO.3 - GO DEEP-SEA DIVING

If you’re going to fall from grace, you might as well do it in style, and we can’t think of any better way of falling than from thousands of feet up. While it’s a given that most of us are terrified of heights, it’s a fear that’s easily overcome by strapping a parachute to your back and taking a giant leap with a qualified instructor. Sure, things can go wrong, but how do you know you’re alive if you can’t stare death in the face? And if you’re going to do it, you may as well do it properly by going for the highest skydive in California, located in Monterey Bay in Santa Cruz. While you may not be able to fully appreciate the stunning views of the Pacific Ocean as you hurtle toward the ground at a mind-blowing speed, you will be able to put it in slow-mo when you watch the video after.

Like the majority of the world, you probably haven’t taken a dip in the sea since Jaws put the fear of God into you, but there’s a world waiting to be explored just beneath the surface of our oceans. Take the plunge in 2009 and go deepsea diving to see what the seabed has to offer, with awe-inspiring sea life and stunning scenery awaiting exploration. Highly recommended is Coco Island off the coast of Costa Rica, said by world-famous diver Jacques Cousteau to offer the best diving in the world. You could, of course, opt

NO.4 - SEE THE NEW SEVEN WONDERS OF THE WORLD There are many things that are wondrous about the world, but none so much as the New Seven Wonders of the World, announced by New7Wonders in 2006. Although there’s a lot to see - including Christ the Redeemer in Brazil, the Great Wall of China, the Colosseum in Italy, and India’s Taj Mahal - every culture vulture worth their stack of guide books will have taken in all seven by the time they die. Voted for their contribution to global heritage and history, each site was selected from hundreds of nominees around the world. 72 CorD 58 / March 2009

to dive in more renowned places, such as the Great Barrier Reef in Australia, but Coco Island isn’t crowded and is still very much undiscovered.

NO.2 - TAKE A WORLD TOUR

NO.1 - BOOK A TRIP TO SPACE You can’t call yourself a man unless you wanted to be an astronaut when you were young; after all, what red-blooded man doesn’t want to journey into space to explore planets and meet the bug-eyed aliens from The X-Files? Fortunately, entrepreneur Richard Branson and his multibillion-dollar company have come up with a way to turn the ultimate fantasy into a reality with Virgin Galactic. Offering ordinary civilians the chance to explore the galaxy via the comfort of a luxury Virgin spacecraft, Virgin Galactic will be the trip of a lifetime when its first craft blasts off in 2010. Flights certainly don’t come cheap, with the first 500 selling at $200,000 and $20,000 thereafter.

Most of us take the occasional holiday here and there, but few of us are brave enough to throw in the towel at work, break into the savings account, book a one-way ticket, and head off around the world. Yet, this is exactly what you should do if you’re looking to shake things up, exploring every continent along the way with the carefree spirit of a true vagabond. While you could backpack around the world like a student, our preferred method of seeing the world is from the comfort of a luxury cruise liner, such as Cunard’s Queen Mary 2. Lasting four months, the ship -- the tallest, largest and most expensive ship ever built -- makes its way from either Southampton or New York and takes in destinations such as India, Japan, South Africa, and Australia. If waking up in a new city every morning doesn’t inject some excitement into your life, we don’t know what will.

RESOURCES: www.Askmen.com; forum.Vidovdan.org; www.Longitude131.com.au; www.Panoramio.com; www.Orient-Express.com; www.Historic66.com; www.Bmycharity.com; www.SkydiveMontereyBay.com; www.New7Wonders.com; www.DiveGlobal.com; www.Cunard.com; www.VirginGalactic.com; www.antarcticabound.com CorD 58 / March 2009 73

CULTURE

DIONYSUS & THE MOSAICS OF THE GAMZIGRAD EXHIBITION

THE LABYRINTH

An exhibition of masterpieces of Roman culture uncovered at locations in eastern Serbia has opened at the National Museum of Belgrade thanks to a donation from the Italian Government By Jelena JOVANOVIĆ s a result of collaboration between Rome’s Higher Institute for Conservation and Restoration (ISCR), the National Museum of Belgrade and the National Museum of Zaječar, visitors to the Gamzigrad exhibition have been given an opportunity to see some of the most

Practical work The theoretical workshop sections included several lectures covering different mosaic techniques 74 CorD 58 / March 2009

valuable archaeological artefacts ever found on the territory of Serbia. The new Gamzigrad exhibition was formally opened by the Director of the National Museum, Tatjana Cvetičanin, Serbian Culture Minister, Nebojša Bradić, Italian Ambassador to Serbia, Alessandro Merola, Director of the Italian Co-operation, Anna Zombrano, the Head of the Department for Preventive Protection in the National Museum of Belgrade, Mila Popović-Živančević, Director of the National Museum of Zaječar, Bora Dimitrijević, and Alessandro Bianchi, project manager at ISCR. “The cooperation began in 2003. The idea was to provide assistance to conservationists and museums in Serbia,” explains Gordana Grabež, Spokeswoman of the National Museum. “During the first phase of the implementation of this international project we provided assistance to museums in Serbia and held lectures in museum studies. A technical donation was also made to the conservation laborato-

ries in the National Museum of Belgrade, the Museum of Applied Arts, the Ethnographic Museum and the Museum of Contemporary Art. During the second phase in 2006, the painting The Holy Family with St. Catherine, St. John and Donor by Venetian master, Jacopo Palma II, was restored and conserved. This painting, which now hangs in Belgrade’s Beli Dvor, was chosen for restoration because of its value and the condition it was in. The restoration was accompanied by a seminar about contemporary protection techniques for wood paintings. This phase was also marked by a continuation of co-operation and conservation work on the mosaic at the National Museum in Zaječar,” adds Grabež. Visitors of the National Museum in the period from 30th January to 1st March were able to see the results of work spanning over 12 weeks. Two exceptional mosaics found at the Romuliana site – entitled Dionysus and The Labyrinth – were also exhibited. The mosaics that were subsequently removed from the ancient location of Romuliana are now on display at the National Museum in Zaječar. The systematic archaeological research that began in Gamzigrad in 1953 led to a discovery of an imperial palace called the Felix Romuliana - built in 289AD in honour of the Roman victory over the Persians. The palace was built by Roman Emperor, Galerius, son-in-law of Emperor Diocletian. The mosaics are the best examples of the era. They are exceptionally well made, rich in colour and tell a special story summarising the ideological concept of Emperor Galerius and the memorial complex that he built in the period from 298 – 311AD. The mosaic depiction of Dionysus (the ancient Greek deity symbolising fertility, hedonism and sensory pleasures) represents a sublimation of the Emperor’s desire to become immortal by being declared a god. The Labyrinth shows Galerius’s triumph over the Persians. In the Felix Romuliana palace archaeologists found remains of a bathroom, various other mosaics, gates, portraits of Roman emperors, ancient Roman coins and other items. As of 29th June 2007 this site is protected by UNESCO. Aside from the restored mosaics, visitors were also able to see a portrait of Emperor Galerius made of purple porphyry and showing a fist holding a globe. Prior to its arrival in Belgrade, this portrait was displayed at an exhibition entitled The Romans and Barbarians, which was held in Bonn from August 2008 to January 2009. The exhibited mosaics were restored during practical workshop sessions that were held in Zaječar and Belgrade at the end of last year. The mosaics exhibited at the Zaječar museum were conserved and restored by the only known method at that time. The mosaics became very sensitive and unstable as a result of deterioration in material and the sheer weight of the old foundations and, thus, their regular maintenance and presentation was in jeopardy. “Both the Dionysus and The Labyrinth mosaics were restored by replacing the old and damaged foundations with new aluminium carriers,” Grabež explains.

The systematic archaeological research that began in Gamzigrad in 1953 led to the discovery of the Felix Romuliana imperial palace - built in 289AD The theoretical workshop sections included several lectures covering different mosaic techniques, their preservation and maintenance. The goal was to update and expand local know-how in the field of mosaic conservation, as well as to create a local network of different profile experts who possess various experiences and will be engaged to preserve the cultural heritage. “The interest show in the exhibition was surprisingly high. A phenomenal opening ceremony saw the hall buzzing with people. The exhibition was attended by experts, archaeologists and students, but also those who expressed an interest in our cultural heritage and its preservation,” adds Grabež. As part of the exhibition, the visitors could also see documentation covering all phases of this perennial project, which is set to continue this year too, with various experts giving tours and holding workshops for school children.

Portrait of Emperor Galerius Aside from the restored mosaics, visitors were also able to see some portrait CorD 58 / March 2009 75

CULTURE CALENDAR CLASSICAL MUSIC Orchestra 6. March

citalist. He regularly tours throughout Europe, North and Central America and performing at international recital series and festivals.

Kolarac Hall, 20 00

Belgrade philharmonic

Belgrade Philharmonic

Orchestra 13. March Kolarac Hall, 20 00 Concert dedicated to the memory of dr Zoran Dindic

Conductor: Asher Fisch Soloist: Hagai Shaham, violin Program: E. Bloch: Baal Shem Suite J. Hubay: Scenes de la Csarda No. 4 and no. 5 A. Bruckner: Symphony No. 6 Displaying a dazzling combination of technical brilliance and a uniquely profound musical personality, Hagai Shaham is internationally recognised as one of the astonishing young violinists who have emerged from Israel in recent years. Hagai Shaham began studying the violin at age of six and was the last student of the late renowned Professor Ilona Feher. He also studied with Elisha Kagan, Emanuel Borok, Arnold Steinhardt and the Guarneri Quartet. As a soloist he has performed with many of the world’s major orchestras, including the English Chamber Orchestra, BBC Philharmonic, Royal Liverpool Philharmonic, RTE National Symphony Orchestra of Ireland, Belgian National Orchestra, Orchestre Symphonique Francais, Taiwan National Symphony Orchestra, SWF Baden-Baden Symphony Orchestra, Slovakian Philharmonic, and the Israel Philharmonic Orchestra under Zubin Mehta. In 1985 he was invited to join Isaac Stern and Pinchas Zukerman in a gala concert at Carnegie Hall, following which Zubin Mehta invited him to perform Brahms’ Double Concerto at Carnegie Hall. Hagai Shaham is in great demand as re76 CorD 58 / March 2009

Conductor: Uros Lajovic Soloist: Zeljko Lucic, baritone Program: G. Rossini: William Tell, overture V. Belini: I Puritani (aria of Riccardo) G. Verdi: Don Carlos, overture + two arias of the count Posa, La forza del destino, overture + aria of Carlo, Un ballo di maschera, foreplay and aria of Renee Nabucco, overture and aria of Nabucco Kolarac Hall Music Centre FAZIL SAY, piano Kolarac, Great Hall, 15. March, 20 00

Pianiast Fazil Say will play Bach, Bethoven, Ravel and Musorgsky, as well as his own composition Black Earth. Say is one of the most significant toda`s world musicians. He was born in 1970, in Ankara, Turkey. He studied piano and composition at the Ankara State Conservatory. At the age of seventeen, he was awarded a German Academic Exchange Service scholarship that enabled him to study for five years with David Levine at the Robert Schumann Institute in Düsseldorf, Germany. From 1992 to 1995, he continued his studies at the Berlin Conservatory. In 1994, he was the winner of the Young Concert Artists International Auditions, which gave a rapid start to his international career.

BALLET, DANCE Svetlana Zaharova and friends Sava Centre, Great Hall 15. March

Svetlana Zakharova (born 1979), principal dancer with the Bolshoi Ballet and the Teatro alla Scala, is widely considered among the greatest living ballerinas today and reportedly commands among the highest fees[citation needed] of any ballet dancer, after Sylvie Guillem and Diana Vishneva. Zakharova was born in Lutsk, Ukraine, on 10 June 1979. In 1996-1997, she debuted with the Mariinsky Ballet, appearing as Maria with Ruben Bobovnikov, in Rostislav Zakharov’s The Fountain of Bakhchisarai. In 2003-2004, she accepted a long-standing open offer with the Bolshoi, reportedly due to discontent with the Mariinsky. Today, Zakharova tours and guests with the world’s great ballet companies. She is highly regarded for her technical expertise and for her exceptionally high extensions, which invite comparisons with gymnasts. Zakharova was awarded the State Prize of the Russian Federation . Performance in Sava Centre will be her first appearance in front of the Belgrade audience. She will perform parts of some of the most beautiful ballet plays, classical and modern ballet miniatures. The Russian Cossack State Song and Dance Ensemble Sava Centre, Great Hall 25. March, 20 00

It’s not hard to see why Stalin tried to stamp out the music and dance of the Cossacks. They had always been an unruly race, protecting their independence with their boisterous customs as well as

a keen appetite for war. They were traditionally farmers and horsemen, toughened by the blistering summers and frozen winters of the steppes, but the constant threat of invasion had made fearsome warriors of them too. All this is celebrated and endorsed in a surprising variety of musical forms, from swelling laments to acrobatic sword dances, and in the intricate filigree of balalaika music. The Russian Cossacks Ensemble has 50 dancers, musicians and singers. They will show exotic, inspiring dance full of energy and astonishing dancing skills and techiniques.

OPERA Madlenianum- opera and theatre

the classic Christmas opera Amahl and the Night Visitors among about two dozen other operas intended to appeal to popular taste. He won the Pulitzer Prize for two of them, The Consul (1950) and The Saint of Bleecker Street (1955). He founded the noted Festival dei Due Mondi (Festival of the Two Worlds) in 1958 and its American counterpart, Spoleto Festival USA, in 1977. In 1986 he commenced a Melbourne Spoleto Festival in Australia, but he withdrew after three years. The Medium is a short (one hour long) two-act dramatic opera. Commissioned by Columbia University, its first performance was there on 8 May 1946. The Telephone is an English-language comic opera written for production by the Ballet Society and was first presented on a double bill with Menotti’s The Medium at the Heckscher Theater, New York City, February 18-20, 1947.

12. March

Soulfly is a heavy metal band formed in 1997 in Arizona. Led by founder, frontman, songwriter and only constant member Brazilian Max Cavalera, who formed the band after he left influental Brazilian death/thrash band Sepultura in 1996. The band has released six studio albums, one tour EP, several singles, and one DVD video. Soulfly incorporates diverse heavy metal styles with Brazilian tribal and world music. Belgrade concert is part of the European tour , presentation of the newest album Conquer. (released on 29. July 2008) Il Divo Belgrade arena 26. March, 20 00

POP, ROCK BEOVIZIJA 2009 Sava Centar, Great Hall 7. and 8. March

G. K. Menotti- THE TELEPHONE / THE MEDIUM – Co-production with the Opera b.b. Zagreb In March Conductor Vladimir Kranjčević Directed (screenplay and video) by Nenad Glavan

Festival Beovizija is the Serbian song contest preceeding the Eurovision song contest which will be held in May, in Moscow. Serbian represenative will be chosen among 20 musicians who will participate in the contest. Some of them are Ana Nikolic, Andrej Ilic, Marko Kon, Ivana Ivana Selakov, Katarina Sotirovic.

Medium

Cast- Lidija Horvat Dunjko, Zoran Pribičević, Zlatomira Nikolova, Blanka Tkalčić–Breglec, Ronald Braus, Diana Hilje Orchestra of the Opera and theatre Madlenianum Telephone-

Cast - Lidija Horvat–Dunjko, Ronald Braus Menotti (July 7, 1911 – February 1, 2007) was an Italian composer and librettist. Although he often referred to himself as an American composer, he kept his Italian citizenship. He wrote

SOULFLY Student Cultural Centre

In 2004, four of the greatest voices in the world emerged to spearhead an entire musical genre by bringing the sound of opera to the world of popular music IL Divo is one of the most successful groups in the world with over 22 million albums sold. Il Divo announce their massive touring plans for 2009 at a special event in Barcelona today to launch their fifth album The Promise which will be available globally on November 10th and on November 18th in the U.S. and Canada. Il Divo’s past sold out world tours have seen them performing to over 1.5 million people in thirty countries. They appeared at the opening and closing ceremonies of the FIFA 2006 World Cup singing the official theme song with Toni Braxton and they were special guests of Barbra Streisand on her 2006 tour of North America. CorD 58 / March 2009 77

CULTURE CALENDAR THEATRE NEW PLAYS New Stradija, Svetislav Basara

Play by renowned Serbian writer Svetislav Basara “NEW STRADIJA”, will mark the 100th anniversary of death of Radoje Domanovic, significant Serbian writer. Play is directed by Kokan Mladenovic, set designer is Marija Kalabic, costume designer -Bojana Nikitovic, composer -Marko Grbic. Mojca Horvat is in charge of choreography and Radovan Knezevic is the dialect coach. Premiere – at the the beginning of March.

Graz in 1986. Ottinger’s films, with their preference for the Far Eastern formal language is visible, turned in the following decades, some unconventional documentaries about life in various Asian regions. Ulrike Ottinger, also works as a photographer. She has resided in Berlin since 1973.

Ulrike Ottinger (born June 6, 1942) is a German filmmaker, documentarian and photographer, daughter of artist-painter Ulrich Ottinger. Photographer and film author , Ulrike Otinger , has developed her own bizarre surrealist film-style, which among other things, was marked by widespread abandonment of a linear plot and instead linger long in individual scenes, which in turn make überstarke and extravagant costumes of the imagination mostly female cast artfully to own collages were designed. She directed and did stage design for Elfriede Jelinek’s Clara S. at the Württembergisches Staatstheater in Stuttgart in 1983, and did the same for Jelinek’s Begierde und Fahrerlaubnis in 78 CorD 58 / March 2009

Inkheart Start- 12. March

Exhibition prepared by Andrea Palazzi Italian Cultural Centre

Directed by Iain Softley Cast Brendan Fraser, Paul Bettany, Helen Mirren, Jim Broadbent, Andy Serkis, Eliza Hope Bennett Adventure and fantasy film about young girl who discovers that her father has an amazing talent to bring characters out of their books and must try to stop a freed villain from destroying them all, with the help of her father, her aunt, and a storybook’s hero.

Palazzo Italia, Belgrade Until 20. March

Seven Pounds Start: 12. March

ART ULRIKE OTTINGER – PHOTOGRAPHY EXHIBITION Belgrade Cultural Centre Until 11. March

Comedy about family that learns important life lessons from their adorable, but naughty and neurotic dog.

COMIC BOOK EXHIBITION Short History of the Italian comic books

Accompanying program includes meeting of publishers and authors of the Italian annd Serbian comic books , lectures,screening of documentary film about MAGNUS , workshops.... Participants- Andrea Placi, Fabio Gaducci, Diego Karieli, Paolo Parizi, Giovanni Eher, Zefirino Grasi, Zograf...

FILM FILM PREMIERES IN MARCH Marley & Me Start- 5. March

Directed by Gabriele Muccino Cast Will Smith, Rosario Dawson, Michael Ealy, Barry Pepper, Woody Harrelson Drama about IRS agent with a fateful secret embarks on an extraordinary journey of redemption by forever changing the lives of seven strangers. MONSTERS VS ALIENS

Directed by : David Frankel Cast : Owen Wilson, Jennifer Aniston, Alan Arkin, Eric Dane

Directed by Rob Letterman, Conrad Vernon Voices Reese Witherspoon, Hugh Laurie, Will Arnett, Seth Rogen, Rainn Wilson, Stephen Colbert, Kiefer

Sutherland, Paul Rudd Animated/ Comedy/ Adventure When a meteorite from outer space hits a young girl and turns her into a giant monster, she is taken to a secret government compound where she meets a ragtag group of monsters also rounded up over the years.

Hoffman, Amy Adams, Viola Davis Set in 1964, Doubt Centres on a nun who confronts a priest after suspecting him of abusing a black student. He denies the charges, and much of the play’s quick-fire dialogue tackles themes of religion, morality, and authority.

Hahn, David Harbour, Kathy Bates A young couple living in a Connecticut suburb during the mid-1950s struggle to come to terms with their personal problems while trying to raise their two children. Based on a novel by Richard Yates.

REVOLUTIONARY ROAD

CHANGELING

Directed by Sam Mendes Cast Leonardo DiCaprio, Kate Winslet, Michael Shannon, Kathryn

Directed by Clint Eastwood Cast Angelina Jolie, Jeffrey Donovan, Colm Feore, John Malkovich, Amy Ryan, Michael Kelly A mother’s prayer for her kidnapped son to return home is answered, though it doesn’t take long for her to suspect the boy who comes back is not hers.

FEST FILMS IN BELGRADE CINEMAS IN MARCH FROST/NIXON

Directed by Ron Howard Cast: Frank Langella, Michael Sheen, Kevin Bacon, Sam Rockwell, Toby Jones, Matthew Macfadyen, Oliver Platt, Kate Jennings Grant A dramatic retelling of the post-Watergate television interviews between British talk-show host David Frost and former president Richard Nixon DOUBT

Directed by John Patrick Shanley Cast : Meryl Streep, Philip Seymour

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FROM THE WORLD PRESS

FAILURE TO SAVE EAST EUROPE WILL LEAD TO WORLDWIDE MELTDOWN 15th February 2009 By Ambrose Evans-Pritchard If mishandled by the world policy establishment, this debacle is big enough to shatter the fragile banking systems of Western Europe and set off round two of our financial Götterdämmerung. Austria’s finance minister Josef Pröll made frantic efforts last week to put together a €150bn rescue for the ex-Soviet bloc. Well he might. His banks have lent €230bn to the region, equal to 70pc of Austria’s GDP. “A failure rate of 10pc would lead to the collapse of the Austrian financial sector,” reported Der Standard in Vienna. Unfortunately, that is about to happen. The European Bank for Reconstruction and Development (EBRD) says bad debts will top 10pc and may reach 20pc. The Vienna press said Bank Austria and its Italian owner Unicredit face a “monetary Stalingrad” in the East. Mr Pröll tried to drum up support for his rescue package from EU finance ministers in Brussels last week. The idea was scotched by Germany’s Peer Steinbrück. Not our problem, he said. We’ll see about that. Stephen Jen, currency chief at Morgan Stanley, said Eastern Europe has borrowed $1.7 trillion abroad, much on short-term maturities. It must repay – or roll over – $400bn this year, equal to a third of the region’s GDP. Good luck. The credit window has slammed shut. Not even Russia can easily cover the $500bn dollar debts of its oligarchs while oil remains near $33 a barrel. The budget is based on Urals crude at $95. Russia has bled 36pc of its foreign reserves since August defending the rouble. “This is the largest run on a currency in history,” said Mr Jen. In Poland, 60pc of mortgages are in Swiss francs. The zloty has just halved against the franc. Hungary, the Balkans, the Baltics, and Ukraine are all suffering variants of this story. As an act of collective folly – by lenders and borrowers – it matches America’s sub-prime debacle. There is a crucial difference, however. European banks are on the hook for both. US banks are not. Almost all East bloc debts are owed to West Europe, especially Austrian, Swedish, Greek, Italian, and Belgian banks. En plus, Europeans account for an astonishing 74pc of the entire $4.9 trillion portfolio of loans to emerging markets. They are five times more exposed to this latest bust than American or Japanese banks, and they are 50pc more leveraged (IMF data). Spain is up to its neck in Latin America, which has belatedly joined the slump (Mexico’s car output fell 51pc in January, and Brazil lost 650,000 jobs in one month). Britain and Switzerland are up to their necks in Asia. 80 CorD 58 / March 2009

Whether it takes months, or just weeks, the world is going to discover that Europe’s financial system is sunk, and that there is no EU Federal Reserve yet ready to act as a lender of last resort or to flood the markets with emergency stimulus. Under a “Taylor Rule” analysis, the European Central Bank already needs to cut rates to zero and then purchase bonds and Pfandbriefe on a huge scale. It is constrained by geopolitics – a German-Dutch veto – and the Maastricht Treaty. But I digress. It is East Europe that is blowing up right now. Erik Berglof, EBRD’s chief economist, told me the region may need €400bn in help to cover loans and prop up the credit system. Europe’s governments are making matters worse. Some are pressuring their banks to pull back, undercutting subsidiaries in East Europe. Athens has ordered Greek banks to pull out of the Balkans. The sums needed are beyond the limits of the IMF, which has already bailed out Hungary, Ukraine, Latvia, Belarus, Iceland, and Pakistan – and Turkey next – and is fast exhausting its own $200bn (€155bn) reserve. We are nearing the point where the IMF may have to print money for the

The unfolding debt drama in Russia, Ukraine, and the EU states of Eastern Europe has reached acute danger point.

world, using arcane powers to issue Special Drawing Rights. Its $16bn rescue of Ukraine has unravelled. The country – facing a 12pc contraction in GDP after the collapse of steel prices – is hurtling towards default, leaving Unicredit, Raffeisen and ING in the lurch. Pakistan wants another $7.6bn. Latvia’s central bank governor has declared his economy “clinically dead” after it shrank 10.5pc in the fourth quarter. Protesters have smashed the treasury and stormed parliament. “This is much worse than the East Asia crisis in the 1990s,” said Lars Christensen, at Danske Bank. “There are accidents waiting to happen across the region, but the EU institutions don’t have any framework for dealing with this. The day they decide not to save one of these one countries will be the trigger for a massive crisis with contagion spreading into the EU.” Europe is already in deeper trouble than the ECB or EU leaders ever expected. Germany contracted at an annual rate of 8.4pc in the fourth quarter. If Deutsche Bank is correct, the economy will have shrunk by nearly 9pc before the end of this year. This is the sort of level that stokes popular revolt. The implications are obvious. Berlin is not going to rescue Ireland, Spain, Greece and Portugal as the collapse of their credit bubbles leads to rising defaults, or rescue Italy by accepting plans for EU “union bonds” should the debt markets take fright at the rocketing trajectory of Italy’s public debt (hitting 112pc of GDP next year, just revised up from 101pc – big change), or rescue Austria from its Habsburg adventurism. So we watch and wait as the lethal brush fires move closer. If one spark jumps across the eurozone line, we will have global systemic crisis within days. Are the firemen ready?

RUSSIAN ORTHODOX CHURCH SUPPORTS THE SERBIAN 8th February 2009

he Russian Orthodox Church supports the Serbian Orthodox Church in its wish to keep its unity and integrity intact. This is what the Patriarch of Moscow and All Russia Kirill said, receiving Metropolitan Amfilohije of Montenegro and the Littoral. The Russian Patriarch confirmed that the Russian Orthodox Church defends Serbia’s territorial integrity. Russia’s opinion is based on international agreements and on its respect for centuries-old history of Serbia, which regards Kosovo as its spiritual centre – and this is the main thing. The Russian Patriarch wished the Patriarch of Serbia Pavel, who is now in the hospital, quick recovery.

“The most important issue is cost, and we fight cost day and night to make sure that we retain only the capacity which will be competitive in the long term. Applied to the current situation, by long-term I mean the next 18 months”. “It is not easy at all: in many businesses we must cut cost by 35-40%; some help comes from declining prices on materials we bring to Russia from abroad. In aluminium we must cut costs by 500 USD per the ton in the next 4 months, which we will do and which will require restructuring of a lot of capacity. The latter creates social problems, a problem of how to maintain social comfort and conduct relations with the regions and federal government. This is the most important exercise which every company in Russia will face”. “I believe that Russia now is much better equipped to deal with crisis than it was in 1998. A lot of people who are present here today remember how

POLL SHOWS SERBS IMPATIENT TO JOIN EUROPEAN UNION

Oleg Deripaska, Chairman of Supervisory Board of Basic Element Company, spoke at the 11th Russia Business Roundtable, organized by Economist Conferences in Moscow on Feb 11, 2009. Below are abstracts from his remarks:

1st February 2009

ost Serbs want to join the European Union, but are sick of what they consider European “blackmail,” according to a recent survey. The survey by Serbia’s European Integration Office showed that 61 percent of citizens wanted Serbia to join the EU, representing a six percent drop over seven months earlier. “In May 2008, citizens supported EU integration in greater numbers but, back then, expectations were higher as major investments had come to our country,” said Milica Delevic, director of Serbia’s European Integration Office. After the arrest of war-time Bosnian Serb leader Radovan Karadzic last July, Serbia was expecting a positive assessment from Brussels and ratification of the pre-accession Stabilization and Association Agreement (SAA) with the EU. Serbians unhappy with speed of EU integration The Netherlands however froze the SAA, demanding full cooperation with the war crimes tribunal in The Hague and the arrest of remaining fugitives Ratko Mladic and Goran Hadzic. In addition, the global financial crisis caused a drop in foreign investment that hit Serbia especially hard. The poll showed that the country’s citizens are unhappy with the speed of Serbia’s EU integration and that 49 percent believe that “constant political conditions and blackmail” of Serbia by the EU is the greatest obstacle to Serbia’s EU entry, while 20 percent blamed it on the “incompetence of the domestic government.” Europe has support among youth

RUSSIAN ECONOMY WILL BE IN GOOD SHAPE IN LESS THAN A YEAR 12th February 2009

difficult it was from July to November 1998. But today we have similar opportunities. Rouble devaluation is almost over. We have an opportunity to grow in infrastructure construction, import substitution, agriculture products, and retail. With a proper restructuring of our capacity we will continue to be very competitive in our exports. Of course it will be painful to go through the second quarter of 2009, when next round of drop will occur. But overall I believe that Russian economy in less than 1 year will be in quite good shape”. “We heard recently from our top authorities that it may take longer and we should prepare for the tough time, but I still believe that our situation this time is much better than it was in 1998. Today we have vertically integrated companies in many sectors: it gives us a lot of opportunities, a lot of flexibility with the cost. As I mentioned earlier, Rusal has been able to cut cost by almost 30% in such a short period of time, something that would have been impossible in 1998, because back then we were disintegrated and we didn’t have sufficient level of consolidation on the market. Today we have a great opportunity to bring out of the business a lot of capacity which is too marginal to exist, a good opportunity to clean the system and start it again”. “Today I am more optimistic than I was in September 1998. Although I would say that today we are in June of 1998, rather than in September”.

KOCANI ORCHESTRA GETS PARISIANS TO STAND UP AND DANCE 1st January 2009

“I

do not have to describe the situation, it is clear. We must deal with several problems - overcapacity, radical change in consumption patterns, and how consumers will make their decisions in the next 3 years based on their financial situation, their preferences, and on the future value of products. And, of course, we need to carry out measures on financial restructuring, and operate in a very difficult environment.

By Susan Owensby his past week at Paris’ Théâtre de la Ville, the Kocani Orkestar – an oriental gypsy brass band from Macedonia – played to a packed house. And they were tireless! Not only did they play non-stop for almost two hours, they then gave a performance AFTER their performance… after

CorD 58 / March 2009 81

FROM THE WORLD PRESS

they took their bows, they started up again – the three baritone tubas, the bass tuba, the two trumpeters, the drummer, sax , clarinettist and accordion player all weaved their way through the entire 1000 seat theatre, much to the delight of the audience. Then, like a brass version of the Pied Piper, they led the public out into the lobby to dance. And dance they did ….The Kocani Orkestar comes from the city of the same name in Macedonia. They’re arguably the most famous exponent of the style known in the region as Romska Orientalna Musika – or Oriental Gypsy Music – which is a speciality throughout the Balkan region, from Serbia to Macedonia. These brass bands were created in the 19th century, in imitation of the military brass bands of the Ottoman Empire. Dzeladin Demirov, the band’s clarinettist, says gypsy Macedonian music is drawn from traditional styles in Greece, Turkey, Bulgaria, Serbia, and Albania. It’s “get up and dance” music, and no gypsy family celebration – weddings, births, baptisms – is complete without a brass band as a send-off.

an oriental gypsy brass band from Macedonia – played to a packed house in Paris’s Théâtre de la Ville, where they employed Pied Piper techniques to encourage the crowd to dance with them in the lobby

The orchestras are family affairs. Demirov’s grandfather and father were also clarinettists in the Kocani Orkestar, his brother has played with them, and his uncle is the current saxophone player. He says he hopes his son will someday play with them, too. Each family orchestra has an individual style – the Kocani Orkestar has been interweaving western music into the band, focusing particularly on funk, jazz, and latin music. As critics have written, the Kocani Orkestar “rocks like a mutant Balkan funk band” – and the audience rocks with them!

But Kosovo is still a long way from securing its future. Although the EU has now deployed a law and justice team to work alongside the Kosovo government and the existing United Nations office, only 22 of the EU’s 27 members have recognised Kosovo. Around the world, just 54 have done so, far short of the numbers needed for a realistic push for UN recognition. The Security Council remains divided, with the US and its western allies supporting independence and Russia backing Serbia. All this leaves the Kosovo authorities struggling to deal with their urgent economic challenges, including high unemployment, poor infrastructure and rampant corruption.

Despite the tensions dividing the territory’s two million ethnic Albanians and 120,000 ethnic Serbs, in the past year there has not been serious violence or any flight of refugees.

In theory the effort of the new US administration to repair ties with Moscow should improve the climate over Kosovo. But with the global agenda dominated by the economic crisis and the greater Middle East, it would be rash to hope for an early breakthrough. The EU must focus on piecemeal progress. On the diplomatic front, this must include securing Kosovo’s oft-debated admission to the International Monetary Fund. On the ground in Kosovo, one priority should be establishing the EU mission’s authority. Another must be to push ahead with energy, water and road schemes that will improve living standards. Economic advances alone will not bring Kosovo political stability but they can help prepare for a day when this stability could be secured – perhaps in a future deal in which Kosovo and Serbia join the EU. Brussels still has much to do to bring the former Yugoslavia into the EU. As well as Kosovo, Bosnia demands attention with its inter-ethnic tensions. Croatia has a border dispute with Slovenia, Macedonia a row over its name with Greece and Serbia is allegedly foot-dragging over bringing war criminals to justice. With so much else on the global agenda, it would be tempting to forget about the western Balkans. But the EU must not. Without stability in the region, there cannot be complete stability in Europe. Copyright The Financial Times Limited 2009

KOSOVO AT ONE 16th February 2009

THE GLOBAL LISTENING TOUR

20th February 2009

osovo celebrates the first anniversary of its independence safe on Tuesday in the knowledge that its worst fears have not been realised. Despite the tensions dividing the territory’s two million ethnic Albanians and 120,000 ethnic Serbs, in the past year there has not been serious violence or any flight of refugees. While Serbia has not given an inch on its sovereignty claim over Kosovo, Belgrade’s liberal government, which took power last year, has avoided inflaming the dispute for fear of damaging its European Union accession hopes. 82 CorD 58 / March 2009

illary Rodham Clinton has a new campaign and message: The United States wants to listen. To that end, on her first overseas trip as secretary of state, Clinton is talking a lot. Her schedule is packed with so many town halls, ceremonial events, television shows and meetings with community leaders that it has the feel of a presidential visit -- or even a presidential campaign. Before departing tropical Indonesia on Thursday for snowbound Seoul,

Clinton carved out an hour to chat with the Muslim nation’s president. But she also appeared on a highly popular youth television show, “Dahsyat” (“Awesome”), met with a group of Indonesian journalists, answered questions on a radio program and went on a campaign-style walk through a lower-middle-class neighborhood, where she studied recycling efforts as hordes of Indonesians gathered around her. “I love your hat,” she called out to a man in a New York Yankees baseball cap. “There is a hunger for the United States to be present again,” Clinton told reporters as she flew to Seoul. “Showing up is not all of life -- but it counts for a lot.” To a large extent, this is Clinton’s new campaign -- repairing the U.S. image abroad. Her boss, President Obama, has helped ease the way simply by not being former president George W. Bush. But it is unclear whether all this public outreach will yield much beyond a few extra lines in the foreign news media, especially when America’s policies -- and how they are viewed around the world -- are largely responsible for its image. Everywhere she has gone in Asia, Clinton has tried to highlight some of the tangible ways that the Obama administration hopes to be different from its predecessor: a commitment to address climate change, the appointment of a Middle East peace envoy, a refocusing on Afghanistan and an effort to reach out to longtime U.S. antagonists such as Iran, North Korea and Burma. The administration is so new that many of these shifts are still wisps of ideas, not fully formed policies. In some areas, such as relegating human rights in China to a side issue, it is uncertain whether Obama’s team will do things much differently than Bush’s. But as every politician knows, the tone can make all the difference. Clinton has emphasized that she is looking for partnership -- or better yet, a “comprehensive partnership” -- on these issues. Her pitch is that the problems of the world -- the financial crisis, climate change and extremism -- are so overwhelming that no country can handle them alone, certainly not the United States. Remember, she’s saying, how the Bush administration went to war in Iraq virtually by itself

Secretary of State Hillary Clinton embarked on her maiden voyage as Madam Secretary to Asia. Clinton will travel to Japan, Indonesia, Korea and China

(with Clinton’s vote of approval)? That’s in the past. We need help. And we want to listen. “My trip here today is to hear your views, because I believe strongly that we learn from listening to one another,” Clinton told students at Tokyo University on Tuesday. “And that is, for me, part of what this first trip of mine as secretary of state is about.” Clinton has made a big deal of her choice to go to the Pacific rim of Asia for her first trip, rather the standard European or Middle Eastern tour. Yet in many ways that has made her job easier: The U.S. image is pretty good here. The Chicago Council on Global Affairs conducted a survey last year in the four countries Clinton is visiting this week -- China, Japan, South Korea and Indonesia -- and found that the United States outperformed

China in political, diplomatic, economic and human capital “soft power,” a favorite Clinton buzz phrase. Indeed, the survey concluded that the view of the United States in these countries, even majority Muslim Indonesia, is “largely positive.” Still, there are few better ambassadors for a listening tour than Clinton. And not because she has already conducted one -- the famous trip through New York state a decade ago when she contemplated a run for the U.S. Senate -- but because the world stage fits her like an old shoe. She may still be mastering the finer points of arcane foreign policy issues -- a question about U.S. base logistics in Japan stumped her -- but she has quickly demonstrated that her many years in the public glare have left her with a politician’s touch and a BlackBerry full of contacts. After landing in Tokyo, she went to see Hirofume Nakasone, whom she first met 18 years ago, when he was a parliamentarian, and who laughingly pulled out a photo of the two of them looking much younger. As it happens, Nakasone is now Japan’s foreign minister. And she had tea with her old friend Empress Michiko, who almost never meets mere diplomats at her residence nestled in a forest in the center of the city. Yet the empress rushed out to clasp Clinton’s hand and chat animatedly when the motorcade arrived. Clinton’s operating style differs significantly from those of her immediate predecessors. Colin L. Powell, a former general, surrounded himself with former military aides and spoke like he was giving a PowerPoint briefing. Condoleezza Rice, a wonky former professor, gathered around her a mix of deep foreign policy thinkers and savvy press aides, and delivered her messages in a blizzard of modifiers, caveats and subordinate clauses. Both Powell and Rice were very-early-to-office types who kept their schedules timed to military precision.

VENI VIDI VIDIC

21st February 2009 Nemanja Vidic is the tough guy in Manchester United’s stonewall defence, just the sort of player Rafael Benitez would have liked to sign. Sam Wallace meets him. Nemanja Vidic is describing how he feels when an opposing striker scores. “To be honest, as a defender watching someone celebrate, it’s a bad thing. It’s horrible. Always before the game I put this in my mind, ‘Hey, I don’t want anyone to score today because it’s going to make me feel bad’. This is my job. First of all I need to be a defender. That’s the way I look at football. It’s how I look at myself.” The portcullis of Manchester United’s defence. The hardman from Serbia. The only United defender to have featured in every one of the 1,302 minutes the team have gone without conceding a Premier League goal in their last 14 games. As he talks me through this personal philosophy his eyes shine, his expression hardens and the intensity is evident. It is a glimpse into the tenacity that has made Vidic one of the best defenders in the world. From watching Vidic the player you might expect the man himself to have the brooding demeanour of an off-duty assassin. However, the man who presents himself for interview in the foyer of United’s Carrington training ground on Thursday, the day after United have swept aside Fulham, is friendly and open. Vidic is less thickset than he looks from the stand. He is lean and rangy, bounding up the stairs two at a time. Later, when we talk about the prospect of him being voted player of the year there is even the hint of an embarrassed blush. CorD 58 / March 2009 83

LEISURE & LIFESTYLE

DANUBE FASCINATING RIVER

TOS AND CORD RECOMMEND

The Danube is, from source to mouth, a river of fascinating diversity and opportunities. Its source is the object of controversies and its mouth expands year by year. By Daniela SCHILY he riverâ&#x20AC;&#x2122;s length is counted upstream not downstream. Throughout its history the river has played a major role both as a link and a border, a lifeline and a theatre of war, a source of challenge and inspiration.

84 CorD 58 / March 2009

Streams of migration and colonization have generated a diversity of cultures and traditions that the river itself communicates. Today the Danube is the longest East-West waterway and the second longest river on the Continent. Ten nations, four capitals, numerous regions and nationalities are linked by the Danube. This makes travelling on and along the Danube seem

BOAT CARNIVAL

he Boat Carnival in Belgrade every August is an unforgettable experience. Everything that can swim or float moves over the Danube and Save river towards the city. Fireworks and a diverse entertainment programme on the banks and on the water always are good for a new surprise. like a visit to a museum of European history, with European landscapes, lifestyles, festivals, celebrations and much more, offering a multicoloured, multi-faceted programme, encompassing not only the past and present but also much potential for the future. From the vast Pannonian Plain to the spectacular Djerdap Canyon, the Danube offers a large variety of landscapes and cultural impressions. Large tributary rivers like the Tisza, the Sava, the Morava and the Timok make it an opulent and cosy waterway to travel on for 588 km. The river’s landscape comprises extensive wetlands with river bays, sandbanks, islands and clear lakes, as well as thick, ancient forests, canyons and valleys. The rich bio-diversity of flora and fauna is well preserved by natural heritage protection status.

WHERE THE PAST MEETS THE PRESENT Cultural heritage from past and present is equally abundant with scenic castles and monasteries, Roman fortifications and prehistoric settlements on the one hand and villages with fertile vineyards and fields or modern cities offering a wide variety of sports, leisure and recreational activities on the other. River beaches under shady trees, grasslands, swamps and ancient forests are the Serbian contribution to the programme for those entering from Hungary by waterway. As a border with Croatia, the Danube crosses the flat and fertile Vojvodina countryside, interrupted by the Fruška gora chain of soft hills. Amidst affluent vegetation and extensive fields little villages, small, picturesque towns, ancient monasteries and historic sites are linked by roads and trails leading back to the river and its Čardas, typical Serbian fish restaurants displaying huge fish kettles and succulent fish dishes. The Fruška gora is the only „mountain range“ of the Vojvodina. Its highest summit is barely 500m high. The fertile slopes, excellent for the cultivation of grapes and wine, reach to the Danube’s shores. The wine regions of Nestin and Erdevik have made a name for themselves. As famous as the wines (but better hidden in the forests) are the 16 medieval monasteries of the Fruška gora, which have given the region the nickname „The Serbian Mount Athos“. The capital of Vojvodina, rich in traditions and featuring wellpreserved Gothic, Baroque, Neoclassical and Secession architecture, many museums, and an imposing fortress, has found a connection to modern rhythms. This has been

Lakes, islands, water labyrinths the Danube and Tisa have made a wild and romantic landscape in front of the gates of Belgrade achieved not only through the internationally-acclaimed music festival EXIT (which takes place every year in Petrovaradin Fortress and was named South-eastern Europe’s best music festival in 2007), but also through many other cultural, business and leisure opportunities in this dynamic city, presented through 13 institutions of higher education and many international fairs and exhibitions. The mixture makes it. Old and new, past and present come together in Belgrade. The capital on the Danube and the Sava was first settled by the Celts and has been destroyed and rebuilt 40 times. This is why today roman walls and modern hightech architecture ; concrete socialist apartment buildings, wonCorD 58 / March 2009 85

LEISURE & LIFESTYLE

derfully-restored villas and houses; richly-decorated churches; small, secluded neighbourhoods with courtyards and terraces flowing with grapevines and flowers and major traffic arteries are all found together here. But mostly it is the feeling of bustling, positive energy found in the streets, squares, restaurants and cafes during the long, warm summer months giving this multi-faceted city its character. The Danube Promenade, with its many barges and houseboats, is often still full of pedestrians till the wee hours of the morning.

NATURE’S WATER PLAYGROUND Lakes, sand banks, islands, water labyrinths - the Danube and Tisza have made a wild and romantic landscape in front of the gates of Belgrade. Many different species of bird nest on both sides of the Danube and its waters are rich with fish and other water animals. Many different types of rare water plants make up a diverse ecosystem, which is protected by UNESCO and the Serbian government. Green hills, fruit orchards, vineyards and vegetable fields

DJERDAP CANYON

illions of years ago, the river cut a path here through the high, sheer cliffs of the Carpathians, where a narrow, crooked reef in shallow water made the river nearly impassable until the 20th century. 86 CorD 58 / March 2009

Fruška gora is the only “mountain range” of Vojvodina. Its highest summit is barely 500m high surrounding small villages from the time of the Dual Monarchy of Austria-Hungary define this region. In the vicinity of the Danube, you can see sand dunes up to 15 km long, thick with vegetation. These are part of the nature preserve Deliblatska peščara, with many different animal and plant species. Medieval fortresses and many archaeological sights give interesting, yet artistic views into the history of the region. After the city of Ram, the Danube forms the border between Serbia and Romania. At one time, this giant natural gate only seemed open for the Danube itself. Millions of years ago, the river cut a path here through the high, sheer cliffs of the Carpathians, where a narrow, crooked reef in shallow water made the river nearly impassable until into the 20th century. Eddies, whirlpools, and shallow waters caused countless shipwrecks. Today the stream is tamed by the huge dam at Djerdap, but this almost 100km stretch of the river still flows through one of the most spectacular Danube landscapes. The river flows through two canyons and three gorges, in which the narrowest point is only 150m apart and 200 to 500 metre cliffs tower above the river’s surface.

FEB 09. / ISSUE NO. 57

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LEISURE & LIFESTYLE RESTAURANT REVIEW

REKA ON A RIVER

When you live in Belgrade you can’t help but sample the colourful local gastronomy and entertaining ﬂavours

By Jelena MICKIĆ ven if you prefer julienned vegetables, you have to unwind and let your hair dvown – even if only metaphorically speaking. Our city has been blessed with hideouts to suit everyone’s taste. And at least one night of frenzy involving good company, food and music can actually do you good. A number of these unique places can be found in Gardoš, the most authentic part of Zemun. One such eatery is Reka [River], which lies beside the Danube, at the end of a footpath, in a green wooden cottage garlanded with a high green hedge. It has been nurturing its reputation for over a decade.

The food in Reka Offers can be described as typical continental European home cooking 88 CorD 58 / March 2009

The moment you climb the stairs and step inside, you can sense that the whole place has been conceived with thanks to its owners’ intuitive sense of business and decorative style. The restaurant is actually an open-plan dining room with a bar in the corner. Numerous wooden tables are dotted around, each adorned with a checked tablecloth and a lamp with a wcrooked lamp shade. That this place is a shrine to women and their lively spirit becomes obvious if you pay attention to the wall decorations. Loud, strongly coloured pieces of art depicting portraits of female faces are everywhere. I had lunch in Reka one summer’s afternoon a couple of years ago. Sitting on the terrace, I enjoyed the view immensely, my eye resting on the waters of the Danube and the sprawling forestland of Banat across the river. What I enjoyed less was the food, which failed to impress me. This time I decided to go for dinner and check if there had been improvements to the food and enhancements to Reka’s novelties. We booked in advance and upon arrival were seated at a small table for two. Other tables were lined up, awaiting large groups of work colleagues on a night out. Reka is a popular spot for company get-togethers or any kind of celebration. We ordered an aperitif, an excellent domestic apri-

cot brandy, and made our choice from a safe and uninspiring menu. The starters include finger food, simple vegetable salads and only one type of risotto, while main courses include chicken in a cream sauce or fish (perch, trout, sea bass). Reka’s wine list consists of a decent selection of the most popular Serbian, Montenegrin and Macedonian tipples and privately produced wines. I had chicken breast in courgette and prosciutto in a sour cream sauce. The sauce was well cooked, thick enough but too salty. The chicken breast, accompanied with frilled vegetables, was slightly overcooked. The vegetable choice was better than the average Belgrade restaurant. I really enjoyed the grilled pumpkin slices that added a slightly sweet taste to the dish. Somewhere between my second and third bite I felt something furry running down my leg. To my surprise it was a well-fed domestic cat. She was lingering for a while around my legs and then moved on to the next table. My companion enjoyed his dish very much, but then he is not a fussy eater. He ordered chicken breast too, but his came with a gorgonzola and porcini mushroom sour cream sauce with the same choice of grilled vegetables. His sauce was less salty and had a creamy gentle richness of the cheese. The meat was carefully seasoned, tender and nicely cooked. The whole dish was a well-balanced creamy experience with a little twang of sweetness. As the portions were on the large side, we skipped salads and side dishes. To top our dinner off we treated ourselves to a portion of Markiza cake (a chocolate charlotte cake made with unbaked eggs). We ordered one slice to share, but a very big slice arrived, perfect for two people who had just had a big meal. The cake was delicious, creamy and sweet - just right. Other desserts on the list were apple pie, ice cream and pancakes. The food Reka offers can be described

as typical continental European home cooking. This is not gourmet chef’s food, but then this place is not known for its food and unique gastronomic experiences, but rather for its casual atmosphere and great location on the river. Out waiter was soft spoken and very polite. The waiting staff buzzed around in a relaxed manner. They were not uniformed, but their casual clothes were covered with a checked apron. Somewhere around the middle of our dinner the live music started. Reka has different bands playing every night from around about 10pm onwards. The pla a chocolate charlotte cake made with unbaked eggs ylist is a combination of domestic pop and rock and foreign chart hits. The quality of the music is reflected in the price of the meal. When the place is full and the music starts Reka can become quite a loud venue. The atmosphere becomes controllably bohemian in a way, unpretentious and intimate, but tables too close to each other make you lose your privacy. If you’d like to take your partner for a romantic dinner, this is not the right place, neither is it a family restaurant in the evening. You can bring children here during the day and they will definitely appreciate the cats, but in the evening this is a place for adults who don’t mind loud people and music. The restaurant is popular both with young folk and an elderly crowd, be they local or foreign. Reservations are advisable, especially for evening and weekend bookings.Prices are mid-range compared to other Belgrade restaurants. There is a newly built parking lot just along the foot path opposite the restaurant.

When the place is full and the music starts Reka can become quite a loud venue. The atmosphere becomes controllably bohemian

Visa card is not accepted so don’t forget to bring your cash.

Markiza cake Chocolate charlotte cake made with unbaked eggs. The cake is delicious CorD 58 / March 2009 89

TECHNO TALK |

GO-PED TRAIL RIPPER

XCITE BIKE – WHEELMAN

Price: $1,349.95

Price: $7850

his little Go-Ped Trail Ripper buggy is surely the offspring of an illicit affair between a go-cart and a quad bike, with a dash of lurid thrown in for good measure. It’s got a tiny 2–stroke engine all right, but still manages to scoot across rough ground at a bone jarringly brisk 30mph, which should be enough for anyone. The Trail Ripper Quad has an amazing 10 of suspension travel at all 4 of its knobby tires. By combining the popular Go-Quad 2 wheel drive / braking system, the TRQ46 is a never before seen product designed to provide the highest off-road fun, thrills and safety bang for the buck!

ith design inspired by the surf / skate / ski / scooter / motocross concepts. This is one of the most innovative products we have seen! No axles to be found? What is this Xcite Bike Wheelman thingy? A center mounted engine and frame, supported at each end by a spokeless wheel into which feet can be inserted while standing upright. The new Xcite Bike Wheelman is pack with performance! Xcite Bike sports a high performance 49cc 2 stroke engine with an oversized adjustable carburetor. The speed is controlled by a cable type controller held in your hand, both the thumb throttle and hand brake are easy to use.

VURTEGO V2 HIGHER PERFORMANCE POGO STICK

Price: $2490

T RIVERBOARD: EVOLUTION 51 - LT PACKAGE

Price: $3990

ow you can get into one of the newest watersports to make a splash - Riverboarding! Just hook up the bungee cord to a tree or rock, jump on the riverboard that is attached to the same bungee cord, let the river drag you down stream, when the cord is extended, the board releases and shoots you up stream up to 30 MPH!! Rinse and repeat. The bungee systems from Banshee are unlike anything on the river! Each bungee will stretch 200 feet in the current producing up-river speeds as high as 30 MPH! The Evolution 51 is the peak of performance in riverboarding.

90 CorD 58 / March 2009

he Vurtego V2 is the next step in the evolution of high performance pogo sticks. With a fully integrated one piece bottom bracket and stainless steel slider shaft rotated 45 degrees for added strength, the Vurtego V2 is the lightest and strongest pogo stick ever built. The larger pedal surface area provides a stable platform for beginning riders, and optional riser bars allow riders to choose less aggressive configurations for exercisefocused bouncing.

POWERISERS

Price: $320

ow introducing the all new Powerisers! What are they? Power stilts? Rocket shoes? Velocity stilts? Flying jumpers? Kangaroo Legs? Powerbocking? Powerisers are too much fun is the answer! First came the roller skates followed by the skateboard then roller blades, well now the next generation is here with the all inclusive Powerisers! Imagine, the ability to jump 6 feet in the air and leap in 9-foot strides! Powerisers are the next extreme sport and ultimate exercising product.

URBAN MOVER UM72

KITEWING RAGE 55

Price: $379

Price: $1,209

ust a little smaller than it’s big brother, the Urban Movers UM72 is packed full of fun! Steering is just like a normal skateboard, but you control the speed and acceleration by applying preasure to a footpad on the front of the board! With a top speed of just over 11 mph this is fast when your balancing on board that is just inches above the ground.

itewing is a wing shaped kite. Many people call it “the wing” for short, just because of its shape. You can use Kitewing with your skis, snowboard, mountainboard, ice skates or inline skates etc. Many say it is like a mix of kite surfing and wind surfing. Most riders learn to cruise with the wing in half an hour. Speeds up to 100 km/h (62 mp/h) and 5 m high, 40 m long jumps on flat surface are not unusual. Kitewing RAGE 55 offers that little extra beef for heavy weight riders and for the ones who live in areas with less wind. RAGE 55 is designed to work well in the lower wind registers and to boost airtime to the maximum.

KIKKER 5150 BONESAW XP - MINI CHOPPER

URBAN MOVER UM70SX

Price: $849

Price: $575

he Urban Mover UM70sx is not only powerful with it’s unrivaled 36 volt 800 watt motor, it’s super fast and ultra quiet! No longer do you have to rattle the whole neighbourhood up at night when you blaze to the store and back. No more kicking on that skateboard to get you around! Try the new environ-

mental and pocketbook friendly transportation. The Usurfer UM70sx is the best electric power board available with it’s wireless hand control you get full control of the throttle.

D THE HARDKNOCK

Price: $1,699

he Hardknock is a bobber in a traditional “old school” style featuring a springer front suspension, forward controls, jockey shift, electric start, solo seat, hydraulic disk brake, chrome plated TIG welded 4130 chrome-moly frame, and either a 49cc or 110cc 4-speed 4-stroke engine. It is significantly larger than our popular pocket bikes, sporting a 15” rear wheel and an 18” front. There is no plastic on the Hardknock. It is comprised of numerous polished billet aluminum components and chrome plated alloy steel. It requires assembly so you can teach the little one a thing or two along the way.

eluxe version of the famous Mini-Chopper! The Kikker Bonesaw XP is a new mini chopper that has everyone in the scooter industry taking notice. While other scooter companies across the USA continue to import low-end Chinese import scooters, the Kikker team continues to produce unbelievably high quality rides at affordable prices!

CorD 58 / March 2009 91

TECHNO TALK |

SAMSUNG TOBI

Price: $188

he Samsung Tobi is a fun phone aimed at “pre-teens and young adults”. It is a quite basic but attractive device that weighs only 85 grams. SOS sends a predetermined distress message to up to 4 emergency contacts when you click the volume key four times quickly. Fake Call simulates the phone ringing, allowing you to escape uncomfortable and potentially dangerous situations by pretending you need to take a call. There are three unique animated themes on the Samsung Tobi: Monster, Snowman and Ocean World.

SPEAKAL IBOO

CANON EOS 400D / REBEL XTI DIGITAL CAMERA WITH 1855MM LENS

Price: $89.99

ou know, that’s totally a recreation of Oikake up there holding that iPod, wouldn’t you agree? In the spirit of Pac-man, Speakal has delivered the iBoo sound station, an iPod-friendly device that’s cute enough for your kids and retro enough for you. For the low, low price of just $89.99, you too can join in the fun by grabbing one in red, blue or white. Specs wise, the device features an obligatory iPod dock, a 3.5 millimeter auxiliary input, touch volume control and music navigation.

Price: $550

anon proves again that they are the world leader in optics with the EOS 400D Rebel XTi. 10.1 megapixels of detail give you razor sharp, color-rich photographs. Easy to use features and interchangeable lenses provide entry level access for rookie photogra-

SONY ERICSSON’S HOT G705

Price: $438

here it is, Sony Ericsson just went live with its new G705 powerhouse, 3G slider. Just as we heard, it sports a 2.4-inch display with automatic screen rotation courtesy of an accelerometer, WiFi, aGPS with Google Maps for Mobile, 1GB included M2 memory, built-in FM radio, RSS reader, and full HTML browser. It also features a 3.2 megapixel cam that can capture video and then upload directly to YouTube under a new partnership with Google.

phers and flexible, powerful tools for discerning professionals. The EOS 400D’s Integrated Cleaning System guarantees crisp and clear images and a 2.5 inch LCD panel lets you review your work instantly while out in the field

LENOVO IDEAPAD Y650

Price: $1,129

t long last, Lenovo’s IdeaPad Y650 is now available for shipping. For those who need a quick memory jolt, the 16-inch laptop’s packing a 2.4GHz Intel Core 2 Duo P8600 processor and X4500 integrated graphics, 1366 x 768widescreen TFT LCD, up to 4GB DDR3 SDRAM, 320GB HDD, DVD burner, 6-cell battery, WiFi and Bluetooth. We suggest you shell out the extra Benjamin and upgrade to the 2.53GHz processor and NVIDIA GeForce G105M 256MB graphics card.

92 CorD 58 / March 2009

SP-7 DIGITAL PHOTO FRAME PRINTER

Price: $199

lthough Amex Digital’s SP-7 can’t claim to be the first digital photo frame with an inbuilt printer, it’s certainly among the first to ever pull it off for under two bills. The basic specs include a 7-inch 800 x 480 resolution display, a multicard reader, USB connectivity, integrated speakers, adjustable brightness, a mini remote and support for both audio and video files.

SR-7 RADIO & THERMOMETER DIGITAL PHOTO FRAME

Price: $99

MEX Digital is an ODM / OEM manufacturer specialized in AV, wireless and navigation devices. Their latest endeavor is the photo frame business: the model SR-7 features a Radio Controlled Clock and an Indoor Thermometer; the SW-7 has identical features but comes with a Weather Station.

SW-7 WEATHER STATION WITH DIGITAL PHOTO FRAME

Price: $139

MEX DIGITAL is back with another awesome photo frame, this time with a multi-function radio and color weather station. Available in sleek black, the 7-inch TFT LCD will make sure you’re on par with the current weather. It also takes most flash cards so you won’t ever run out of space, and USB for even more flexibility. Default icon weather forecast (sunny, cloudy, slightly cloudy, rainy, stormy, snowy) In / Out temperature and humidity historical date chart.

VAIO WI-FI PHOTO FRAME VGF-CP1

Price: $299

ome of the picture frames, such as the Sony VAIO Wi-Fi Photo Frame VGF-CP1 have fancy features like full Web browsers, streaming Internet radio, and text news feeds. WiFi photo frames often cost quite a bit more than those that display only local content. Those features also add complicated menu options that may be confusing to novice users. And people on your gift list may just want to see their photos and little else, so it may be best to stay away if you don’t think you or the person receiving the frame will take advantage of the wireless features.

CorD 58 / March 2009 93

DAMIANISSIMA Damiani presents the new collection: Damianissima. Stressing the stylistic motif inspired by the logo, produced in the three shades of gold – white, yellow and pink – and taken forward by the ever-present diamonds, the Damianissima collection surprises and seduces. Modern lines and spiral shapes, coupled with the feeling it urges in the person wearing it, make jewellery from the Damianissima collection irresistible. Rings, medallions, pendants and bracelets are cool accessories that are perfect for the modern woman who takes care of the way she looks and who likes to wear her jewellery every day.

ROSE The ROSE collection is inspired by the most beautiful ﬂower: the Rose. The most celebrated ﬂower in the world and in every era. It represents femininity and reinterprets tradition by suggesting romantic and precious jewellery made of white or pink gold encrusted with diamonds The collection includes a necklace, ring and earrings.

CRISTAL Ice crystals. Delicate gentle winter flowers. Magic light playing against the purity of the gently falling snow… The Cristal collection recreates all these impressions: brilliant cut diamonds encircling around a central diamond to form an elegant flower. The full effect of intensive light and refined craftsmanship creates a simple and clean style that catches the eye. The floral sample becomes the bases that, repeated and graded, form part of the collection: delicate bracelets, necklaces, linear pendants, earrings, rings; ..the possibilities are endless… Info: JOKIC Jewellery & Watches, Knez Mihajlova 32, Tel: 2623 862

HOW TO... |

OBEY THE LAW Find out about local laws and customs. Remember that the laws and procedures which apply are those of the country you are in. Do not overstay your visa. You can extend your visa, if you do not you can be imprisoned or fined. Do not work illegally. You can be deported, fined and imprisoned if you do. You may also be prevented from entering the country again in the future. DRUGS DO NOT get involved with drugs NEVER carry packages through Customs for other people. Do not sit in anyone else’s vehicle when going through Customs or crossing a border – always get out and walk. Always pack your own baggage and never leave it unattended. If driving do not lend your vehicle to anyone else. DRIVING DO NOT drink and drive. Make sure you know the driving laws, licence requirements and driving conditions specific to the country you are visiting. Make sure your driving licence is current and valid. Serbia require you to hold an International Driving Permit (IDP) with your local licence. Be aware that there are on-the-spot fines for traffic offences. Exceptions are not made for foreigners. SECURITY Be security conscious. Take sensible precautions. Avoid unlit streets at night. Carry only the minimum amount of cash that you need for the day. Leave your valuables and spare cash in the hotel or guesthouse safe. Never resist violent theft. TRAVEL DOCUMENTS MONEY & CREDIT CARDS Keep your passport in the hotel safe and carry a photocopy with you. Keep your travel tickets in a safe place. If your money, passport or anything else is stolen report it at once to the local police. Obtain a police statement about the loss: you will need one to claim against your insurance. Theft of money – phone your bank at home to transfer money or to cancel your credit card using the relevant 24-hour emergency number. Theft of traveller’s cheques – contact the issuing agent. Theft of tickets – see your tour representative or airline agent. 98 CorD 58 / March 2009

CROSSWORD

Solve this crossword puzzle and test your Serbian – the clues may be in English, but the answers should be entered in Serbian

1 2 3 4 5 6 7 8 9 10 11 12 13 ACROSS: 1. Small planet, asteroid, 2. Symbol for Radium – decorative plant, 3. Battle spear used by ancient Germans – Circus pit, 4. Body height and shape, figure – Dear, lovable, 5. First name of Gogol’s hero Bulba – Subsidiary of the Volga, 6. Skilled orator – Personal pronoun, 7. Mark for queen in chess – Metal – Symbol for Nitrogen, 8. Extremity – Radio locator (pl.), 9. Shock, quake – Accommodation, 10. Volcanic island in Indonesia – No person, 11. Sweet fern – Mud, sludge, 12. Ruins of a monastery on Jelica Mountain near Čačak – License plate symbol for Rimini, 13. Serbian painter, Ivan. DOWN: 1. Honesty, bluntness, 2. Grape vine sprout – Really, truly, 3. First letter of the alphabet – Songbird – Writer, first name of Vjekoslav, 4. Symbol for Nitro – Forest demon (Greek myth.) – River in Bosnia, subsidiary of the Una, 5. Long period of time – Small street – American male name, 6. French sociologist, Gabriel – Chemical element – Interrogative pronoun, 7. Spanish singer and dancer, Carolina – Type of plant, grows as weed in flax – Symbol for Volt, 8. Adverb: regardless of everything else – Undertakers, 9. Serbian film actor.

ANSWERS: planetoid, ra, trator, ost, arena, stas, drag, taras, oka, orator, on, d, nikal, n, ud, radari, šok, konak, nias, niko, oslad, kal, stenik, ri, tabaković

General tips for travellers The following general tips on laws and customs can help you stay out of trouble while you are in Serbia

Author: Branko Polić