CorD Magazine No.59 by CorD Magazine

CorD, APRIL 2009

35 POLITICS & DIPLOMACY

INDIA – SERBIA RELATIONS ON A SOLID BASE

Comment By H.E. Ajay Swarup, Ambassador of India to Serbia

WORK IN PROGRESS

H.E. Ambassador Josep Lloveras, Head of the European Commission’s Delegation to Serbia

RATIONAL RESPONSE

Interview: Aleksandar Vlahović, MP, Partner and Co-Chairman of EKI Investment

THE EU KNOWS US WELL

Interview: Milka Forcan, Delta Holding Vice President

NUCLEAR THREAT

India and Pakistan: brotherly animosity

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 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, Biljana Jocović, b.jocovic@cma.rs

4 CorD 59 / April 2009

MONTENEGRO IN TIMES OF CRISIS

State put to the Test

WATER IN A CHANGING WORLD

Fifth World Water Forum in Istanbul

BUSINESS & CURRENT AFFAIRS

SECURING THE FUNDS

Western Europeans to help Eastern neighbours

ECONOMIC OPPORTUNITY & PROSPERITY

COMPANY AS AN OPERA HOUSE

EPTISA: Municipal Infrastructure Support Programme

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

Managerial mission in times of crisis

FACES & PLACES

Promotion of the photo monograph of the Belgrade anti-war demonstrations of 9th March 1991.

HUGE RACE OF 40,000 RUNNERS

Belgrade Banca Intesa Marathon

CULTURE & ART

The 2009 Index of Economic Freedom

FIRST GREEN LANDFILL IN SERBIA

SOCIETY

LAND OF EMIGRANTS

BITEF Theatre’s 20th birthday

LIFE IN VOODOO LAND

Miloš Lončarević, cameraman and screenwriter

MIND IN MOTION

6th Belgrade Dance Festival

LEISURE & LIFESTYLE

SPEND A WEEK IN PARADISE

Top 10: Luxury Islands

TOB AND CorD RECOMMEND

The Spirit of Belgrade

RESTAURANT: BALZAC

International cuisine with a French brand

comment INDIA - SERBIA

Relations on a Solid Base

It is common to ascribe the strong bonds of friendship and cooperation between India and Serbia to the joint founding of the Non-Aligned Movement and the leadership provided in the initial years after its inception by the towering personalities of Jawaharlal Nehru and Josip Broz Tito, but the cultural afﬁnity between the people of the two countries goes back further.

any scholars have found astounding similarities between the classical Indian language Sanskrit and the Serbian language, as well as some Indian and Serbian customs and traditions like Slava, which pre-date the arrival of Christianity in this part of the world. The deep and widespread interest of the Serbian people in the Indian culture continues to this day, and it is also a tribute to the reading habits of the Serbian people that the Serbian versions of latest books by Indian authors are available in Belgrade soon after their publication in India. Several Yoga centres running in Belgrade, Novi Sad, Sombor and some other cities in Serbia and study groups formed to learn astrology from ancient Indian texts – Vedas – are also a testimony, if any required, to the Serbian peoples’ attraction towards India. The time-tested friendship between India and Serbia has been built on strong foundations. In the early years after its independence, following a fiercely-independent foreign policy transcending the Cold War politics when few were ready to come to India’s assistance, SFRY supplied military equipment to India. India has steadfastly stood by Serbia in difficult times, when many others chose to close their Embassies and ran away from Belgrade in the decade of the 90s. In recent years, India has taken a principled stand in defence of Serbia’s sovereignty and territorial integrity. On many global issues, the views of the two countries are quite close, if not exactly the same, and the two have worked together very well in multilateral fora. Bilateral ties have developed quite well with several agreements signed in the last few years, covering culture, education, sports, tourism, civil aviation, science & technology, trade & economic cooperation, promotion and protection of investments, avoidance of double taxation, cooperation between diplomatic academies, and the latest one on agriculture and allied sectors signed in March 2009. Economic and technical cooperation between the two countries, at its peak in the 1980s, suffered a setback for obvious reasons in the closing decade of the last millennium. Efforts have been afoot in recent years to revive old business connections, but the trade and economic cooperation remains much below its potential. More sustained and determined efforts are required to understand each other’s current capabilities and to derive maximum benefit from the new opportunities emerging in both the countries. India offers a huge market to Serbian companies in infrastructure development, including engineering design and consultancy, food-processing and cold-chain lo6 CorD 59 / April 2009

gistics, seed production metals and related industries, etc., both for trade and joint ventures. Serbia can also act as a gateway for Indian companies wishing to access CEFTA and Russian markets, taking advantage of the favourable trade arrangements Serbia has with these countries. The national government and several municipal authorities in Serbia are willing to offer infrastructure facilities and other incentives on favourable terms. Serbia can derive benefits from India’s experience in the ICT, pharmaceuticals and biotechnology, agriculture machinery and equipment meant for small farmers, micro, small and medium enterprises development and a range of services in financial and hospitality sectors. The Joint Economic Committee set up at the government level and the Joint Business Council for facilitating interaction between private businesses are required to play a more active role in expanding and intenH.E. Ajay Swarup, sifying economic and commercial Ambassador of India partnership, especially in the current global scenario of a shrinking to Serbia demand in the Western markets. A Business Centre has been opened in the Embassy of India, Belgrade, which provides free services to Serbian and Indian businessmen on trade and investment policies, importers and exporters, trade fairs and other commercial events, and can also facilitate contacts with prospective partners for setting up joint ventures and other mutually-beneficial cooperative activities. Besides printed directories, product brochures and business magazines, facilities are also available for web-based databases and information in digital format. For promoting people-to-people contacts and travel to India for business or leisure, visa are issued without delay, and all information required is provided to the visitors. A Programme of Cooperation in the field of culture for 2009 – 2011 has also been signed in January 2009 to encourage cultural contacts. With so much going and enormous mutual goodwill, I have no doubt that the future of India-Serbia ties is indeed bright.

DIPLOMACY |

THE VIEW FROM THE EUROPEAN COMMISSION

Work in prog

H.E. Ambassador Josep Lloveras, Head of the European Commissionâ&#x20AC;&#x2122;s Delegation to Serbia

ress

“Serbia is moving ahead towards meeting the conditions for visa liberalisation, but we are not fully there yet; there is still work in progress.” By Mark R. PULLEN Photo Slobodan JOTIĆ

vinced that the EU will seriously study any request that comes from Serbia.

uring this period of contraction and economic prudence, the European Commission’s Delegation to Serbia has actually transferred to a brand new building and expanded to include more than one hundred staff, making it the third biggest EU delegation anywhere in the world. In order to get the lowdown on the work of the Commission and Serbia’s EU accession progress, we spoke exclusively to H.E. Ambassador Josep Lloveras, Head of the European Commission’s Delegation to Serbia.

Local media have reported that the Serbian Government is awaiting the second wave of the World economic crisis without an adequate response. In such a situation, how realistic is it for Serbia to expect to receive additional financial aid from Europe? I do not know if we can speak of waves, but the world economic crisis is certainly already hitting Serbia and it will do so for quite a while. And Serbia has its own economic problems in addition to those that come from abroad. I refer to fiscal profligacy over the past few years, an excessive current account deficit and insufficient structural reform. So, Serbia needs to address its own economic problems in the first place. The IMF can help in this respect and the EU as well, but to a more limited extent and once an IMF programme is in place. However, I am con-

The unilateral implementation of the EU Stabilisation & Association Agreement (SAA) has forced Serbia to reduce customs tariffs and, thus, led to lost revenue of around €300 million this year. With this in mind, do you think that applying the SAA was a wise move? One of the key problems of the Serbian economy is to increase its export potential. This requires increased competitiveness. The selective and phased reduction of customs tariffs will provide the right incentive for Serbian producers to become more competitive, but the tariff reduction will also lead to cheaper products, thus benefiting Serbian economic operators and consumers in difficult times. Last but not least, through the voluntary implementation of the SAA, Serbia is sending a strong political signal on the importance of EU integration. Furthermore, it is building a track record that should allow the time needed to open accession negotiations to be shortened, as soon as the conditions are met and Serbia applies for EU membership. Serbia’s EU accession process has slowed down markedly of late. Would you still insist that the pace of Serbia’s accession depends solely on Serbia and the country’s policies? The conditions are clearly spelled out in the so-called Copenhagen criteria. They are equally applied to all countries aspiring to

KO S O V O

S A A

V I S A

I don’t think the situation will ever go back to the way it was, but Kosovo is still an issue

by implementing the SAA, Serbia is sending a strong political signal on the importance of EU integration

Serbia is moving ahead towards meeting the conditions for visa liberalisation, but we are not fully there yet CorD 59 / April 2009 9

DIPLOMACY |

COUNTDOWN TO THE WHITE LIST

“I

“The pace of Serbia’s accession to the EU essentially depends on Serbia. I say ‘essentially’ because, at the end of the road, Member States will need to decide unanimously and this is a political decision.” join the EU. The pace of Serbia’s accession to the EU essentially depends on Serbia. I say ‘essentially’ because, at the end of the road, Member States will need to decide unanimously and this is a political decision. But the EU has also stuck to its promises and I believe it will continue to do so. Serbia has now fulfilled all criteria required for admission to the White Schengen List. Does Serbia’s ‘White Schengen’ status now only depend on upcoming elections in the EU? Serbia is moving ahead towards meeting the conditions for visa liberalisation, but we are not fully there yet; there is still work in progress. The European Commission has conducted serial missions to technically assess the compliance with the various conditions involved, which fall into four groups: security of documents, security of borders and illegal migration, public order and security and external relations. One of these missions is still in town as we speak, so the assessment is still ongoing and if the efforts to meet the conditions continue I am confident that the Commission may be in a position to recommend to our Member States, in a matter 10 CorD 59 / April 2009

of months, the lifting of the visa requirement. Let me finally stress that this is a technical process and not a political one, in spite of its political significance. How is the EU changing in terms of expansion; following the EU’s experiences with Romania and Bulgaria, can we now expect stricter criteria to be introduced or for new members to be limited in terms of membership rights until they have developed to the average EU level? As I said before, the conditions are known and maintained. However, the EU is a living organisation and the world moves on. We, therefore, learn from experience. In this sense it is logical that key issues like fighting organised crime and corruption are gaining importance. It is also known that access to some rights may be subject to transition periods, like free circulation of workers, to give an example. This will depend on negotiations. Do you have understanding for Euroscepticism, both in Serbia and within some existing EU Member States? Coming from Spain and having directly experienced the benefits that EU integration has

n Serbia at the moment is the socalled ‘Block Two’ Mission, which handles issues of borders, migration and asylum. Its members are currently travelling across the country and visiting all of Serbia’s major border crossings and some of the minor ones, as well as liaising with the Interior Ministry, the Commissariat for Refugees, the Asylum Centre, etc. This is now the last of these missions: since February three missions have come here, while Serbia’s responsible team has moved to Brussels. Now the reports of those missions have to be prepared and then the Commission has to assess the situation, discuss it with the member states and then a decision on this process will have to be taken for the various countries, including Serbia, based on the merits of each individual country. I hope that we will be in a position to make a positive recommendation in the coming months, but obviously conclusions still have to be drawn and outstanding elements still need to be fulfilled, such as the anti-discrimination law or a strategy for migration management, which are both pending adoption here in Serbia. What is most important on this issue of visa liberalisation in Serbia is that we’ve seen an enormous degree of consensus amongst the various ministries and even political parties. Indeed, it’s noteworthy that the main package of laws that’s passed through parliament in the past few months is the one relating to visa liberalisation. This proves that when there’s political consensus in Serbia on a particular topic, things move quickly. It’s quite remarkable how differences can be put aside in Serbia when there’s a common goal and how the key actors can co-operate, supported by civil society, backed by the parliament and encouraged by the press and public alike. I’d just like to see this same degree of consensus and dynamism around all of the other key aspects of the European integration agenda.”

CorD 59 / April 2009 11

DIPLOMACY |

separate processes. Some of our Member States are not NATO members. However, at some stage Serbia will need to seriously consider the advantages of joining NATO. My own country, with a strong neutralist tradition, went through the process and decided, in a referendum, to join NATO even before joining the EU. Do you think that Kosovo is now irreversibly on its way to becoming a fullyfledged nation state? I do not think that the situation will ever go back to where it was, but Kosovo is still an issue. I hope that pragmatism and creative thinking will prevail. Above all, I hope that any temptation to put the Kosovo issue and EU integration agenda onto a collision course will be avoided. Leading analysts are suggesting that Croatia could realistically join the EU by 2011/12, Turkey is a specific case and all of the Western Balkan countries can expect to become EU members by 2018/2020. Messrs Rehn, Tadić and Lloveras formally open the Commission’s new Belgrade How realistic is this scenario and does that offices on 12th February mean that Kosovo and Serbia would join brought to my own and many other countries, Europe that euro-optimism is stronger when the EU simultaneously? I can only be a euro-enthusiast. But I have economic prospects are brighter. We are now It is reasonable to assume that Serbia will some euro-sceptic friends and I try to under- heading towards difficult times everywhere in join the EU during the next decade. Whether stand their arguments. Frankly, most often Europe and it will be important to look to the this will happen in the first or in the second half will mainly depend on what happens in these seem to me mostly ideological, but this future and not to lose direction. Serbia and, to some does not mean that there “EU accession and NATO accession are separate extent, in Europe and are no improvements to be brought to the EU and processes. Some of our Member States are not NATO the rest of the world. I wouldn’t want to specits functioning. That is members. However, at some stage Serbia will need to ulate beyond that. why sound euro-criticism should be welcome and seriously consider the advantages of joining NATO.” During the recent listened to. However, if I were Serbian I would be a euro-enthusiast, To what extent could Serbia’s stance on visit of President Tadic, leaders of your because I think the potential benefits of EU not joining NATO affect the country’s EU homeland of Spain again confirmed that they would continue their principled posiintegration far exceed the potential costs. My accession process? concern, however, is that we have seen in EU accession and NATO accession are tion not to recognise Kosovo’s independ-

ALL-ENCOMPASSING MISSION

“I

t should be noted that Serbia now has the third largest delegation of the European Union anywhere in the world. Only Moscow and Ankara have larger delegations. This highlights the importance of Serbia for the European Union and shows that the European Commission is providing the means at the level of its ambitions in order to really support the European integration of this country. “We moved into this new building because our task has grown to include the management of a huge technical assistance package covering all aspects of life – from border management to health, education, justice reform, refugees, export promotion, etc. Indeed, it would be difficult to find an area where we are not active.”

12 CorD 59 / April 2009

PACE OF REFORM

ommenting on how Serbia has managed to maintain the reform process despite regular changes of government in the post-2000 period, Ambassador Lloveras says: “there have been ups and downs in terms of pace, but the agenda has continued. The speed has varied depending on the areas in question, political momentum, the electoral agenda, etc. Still, there is a constantly progressing stream of movement towards European integration. I think there’s more political consensus now than there’s been at any time since I arrived in Serbia, though I’d still like to see this consensus converted into more energy and more speed in the preparation, adoption and implementation of legislation.”

ence. How do contrasting attitudes within the EU (some members orchestrated Kosovo’s independence, while other members don’t recognise the independence) affect your role as EU Ambassador? I would like to stress that the EU as such does not recognise states. But we have to work on the basis of the reality that most of our Member States have recognised Kosovo, while others have not. In these circumstances, we can only build on the common denominator. Our common objective is to bring Serbia and the whole region into the EU, which implies, amongst other things, good regional cooperation. There is agreement on this amongst all our Member States, as there is on the need to stabilise Kosovo. Javier Solana’s Special Resident Envoy, Peter Sorensen, is now responsible for relations with the EULEX mission in Kosovo. Do your missions overlap or complement one another? As Head of Delegation of the European Commission to Serbia, I am accredited as Ambassador to the Head of State and, offi-

STICK AND CARROT I do not think that there is a stick and carrot tactic, but rather a natural balance between incentives and obligations.

“Above all, I hope that any temptation to put the Kosovo issue and EU integration agenda onto a collision course will be avoided.” cially speaking, I represent the Commission only. However, I obviously maintain very close relations and co-operation with all EU institutions, and notably the Council and the Parliament, not to mention all our Member States. My friend Peter Sorensen has been appointed by the Council and in particular as the personal representative to HRSG Solana, with special responsibility to liaise with Eulex. We are therefore complementary and will work as closely as we have in the past, as illustrated by the fact that even his office is located within our own premises. Once the Lisbon Treaty is ratified, the EU will create a new External Service, which will be common to the European Commission and to the Council. Diplomatic circles often describe Serbian Foreign Minister, Vuk Jeremic, as a “tough counterpart”. What are your personal experiences of the man? I have known Minister Jeremic for nearly

NATO EU accession and NATO accession are separate processes. Some of our Member States are not NATO members.

five years and I respect his energy, determination and competence. I do not have as frequent a contact with him as I have with other ministers. This is normal, as I view the EU integration process, which is my main job, more as a domestic policy issue rather than one of foreign policy. How do the special political and economic relations between Belgrade and Moscow affect relations between Belgrade and Brussels? I think that good relations between Belgrade and Brussels are compatible with good relations between Serbia and third countries, particularly those geographically and culturally closer. What will you miss the most when your time in Serbia comes to an end? I will mostly miss the warmth, the friendliness and the hospitality of the people. I will also miss the Danube, the green countryside and lively and cosmopolitan Belgrade.

EU The pace of Serbia’s accession to the EU essentially depends on Serbia. Member States will need to decide unanimously and this is a political decision.” CorD 59 / April 2009 13

INTERVIEW |

Aleksandar Vlahović Partner and Co-Chairman of EKI Investment, Serbian MP

RATIONAL

“The crisis periods we faced during the 1990s can surely not be compared to the world economic crisis and, consequently, we have a different approach to dealing with problems” By Vladan ALIMPIJEVIĆ Photo Slobodan JOTIĆ

resentative position, though that didn’t diminish his credibility.

ost former Serbian ministers have turned to business after ending their political careers. However, Aleksandar Vlahović – one of the most influential businessmen and politicians in the republic – was in private business even before his political career began. When his party, DS, returned to power, he retained his rep-

In the midst of the world financial crisis, we are faced with a dilemma which is by no means peculiar to Serbia. That is deciding whether to decrease or increase public spending. You recently stated that the government must increase public spending, while Prime Minister Cvetković speaks of the need to increase savings.

14 CorD 59 / April 2009

It seems to me that the answer to that question is equally positive in both directions. We need to decrease public spending while simultaneously increasing it. Hence, we need to recompose the structure of public spending. It is necessary to decrease public personal spending and increase investment spending. In view of the fall in private investments, the state has to be the key generator of economic growth this year. That is why it is necessary to increase the amount of public investments and

RESPONSE it is a good thing that the state has plans for Corridor 10, investing in road infrastructure and infrastructure in general. That will have a positive effect on economic activities by way of multiplication. To date, economic activities were mostly financed from external savings, as opposed to savings from within the country. Considering the fact that we are not expecting an influx of direct foreign investments, as was the case last year, and that the planned total amount of foreign investments is only €1.7 billion, which might not even be reached considering the increase in cross-border loans, it is logical to look for incentives somewhere else. State investments, i.e. public investments in the infrastructure sector, are precisely that needed generator of growth. The state must concurrently decrease the segment of spending related to personal spending, which concerns collective expenditure.

When you say ‘public investments’, populists hear public works. Unfortunately, considering the fact that the crisis has created an enormous fear of what might happen to us, it is necessary at this point for the state to increase its general activity in the field of public investments. That might seem like a “New Deal” policy, but if we look at what others are doing then we see that developed countries are also trying to stimulate economic activity. Considering statistical data confirming the drop of industrial production, can we say that Serbia has entered a recession? In order to state that Serbia has entered a

recession, one must record negative economic growth over two quarters. So, Serbia has still not entered a recession. We must wait for the statistical indicators for the first quarter of this year. I think that a drop in industrial production does not have to have such a dramatic effect, considering that the contribution of industry to GDP is proportionally smaller in comparison to the service industry and agriculture, which are not facing drastic drops. It is still too early to conclude that Serbia is in a recession. Serbia is threatened with a recession, that is true. The government must take all measures to fight a recession, that is also true, and that doesn’t only include the measures presented so far, but also new, more radical steps.

New government measures were announced when the government and the business sector met at Kopaonik to hear each other out, but many people left Kopaonik dissatisfied. What did you think of the event, considering that in many ways you are a representative of both major capital and the government. We did not hear anything new at Kopaonik. All the government measures had already been publicly presented. The quality of this meeting was the opportunity to hear different opinions in one place. And not just the views of political executives, but also of businessmen or, as you say, representatives of major capital. One could hear very critical observations

CRISIS

LIQUIDITY

REFORMS

The crisis is a consequence of insufﬁcient regulation in the ﬁnancial sector.The role of the state must primarily be regulatory.

IMF loans are important in many ways: that money will not end up in the real sector but will be used for maintaining external liquidity.

The Serbian economy faced the crisis unprepared, at least in terms of its competitiveness and structural reforms. CorD 59 / April 2009 15

INTERVIEW | of certain economists, who shed light on the situation we will be faced with in the following period from a different angle. There was also a discussion on how much the central bank should digress from its usual position – taking care of macro economic stability and rate stability – and to what extent it can contribute to the fight against recession, that is the fight against the crisis. This is specifically related to the necessary revolving of loans that need to be redeemed, concerning cross-border loans. What is your opinion on the current fiscal policy? Is there room for a drastic decrease in taxes on the economy? I believe it’s unlikely that there will be a drastic decrease of pensions and salaries at this time, but I still think that there is room for the reduction of total expenditure in personal spending, especially when it comes to personal spending in public companies. It would be wrong to burden the economy with new taxes at this point, as it would additionally increase the otherwise widespread illiquidity. It seems to me that in the following period government measures should be aimed at the real sector, by additionally stimulating the banking sector and the reprogramming of financial obligations to be redeemed in 2009. The drain of foreign currency could significantly disturb the balance of liquid payment, although it is projected on a somewhat lower level thanks to the drastic drop of imports. However, decreased imports are causing a decrease in public expenditure and, thus, creating additional fiscal problems. Is it normal for the state to be the best employer in a nation? State officials have the most regular income, while the real sector is decreasing both salaries and the number of employees under the pressure of the crisis. We must not forget that Serbia has not entered the crisis like other developed countries. We still have big structural problems. The Serbian economy is still not competitive and the crisis should not be used as an excuse to postpone the implementation of structural reforms in the following period. In the long run, the state cannot become the main economic player. It is necessary to continue the structural changes and increase our competitiveness. It is necessary for Serbia to promote its image to attract direct foreign investments. It is wrong to look for solutions in the possibilities of nationalisation or the expansion of the economic role of the state. 16 CorD 59 / April 2009

other public companies. Unfortunately, this was not finished on time. The Serbian economy faced the crisis unprepared, at least in terms of its competitiveness and structural reforms. Right now it is impossible to successfully privatise these companies. Therefore, the investment of state capital in these companies can only be a short-term solution, without any long-term ambitions of the state to become a permanent owner. Does that mean that you still support the idea of liberal capitalism? That means that we must never forget that the world economic crisis did not originate in the real sector. The crisis is a consequence of insufficient regulation in the financial sector. The role of the state must primarily be regulatory, in the establishment of strong regulatory bodies. I still support the idea that private-owned property is far more efficient than state-owned, and I will not even discuss public ownership.

Workers in the U.S. know very well how a crisis affects things: the consolidation of companies leads to you losing your job. People in Serbia are yet to learn this lesson Are we not already facing nationalisation, with the investment of state capital in Zastava, Bor, Petrohemija… and delays in the privatisation of Jat, Telekom and Elektroprivreda? At this point, Serbia is paying the price of the populist policies led in the previous years. It was obviously a big mistake to leave the privatisation processes of several business giants unfinished. We should have used the positive economic situation in the world market in the past few years and finished the privatisation of RTB Bor, Zastava, Jat, as well as the status and organisational consolidation and even the partial privatisation of some

Developed countries have resorted to nationalisation as a solution for the crisis. In such conditions, the key question is what can Serbia offer the world? Apart from trade and part of our agricultural production, can we offer industrial products to the international market? It is true that there has been a decrease of industrial production in the total gross domestic product (GDP) in previous years. Surely we must define a clear industrial policy and strategy for industrial development. We must not kid ourselves into relying on the state to be the main executor of industrial production and the strategy for industrial development; that should be left to private initiatives, while the state should regulate the framework and give appropriate incentives. We should not forget that Serbia has been lacking an active policy of regional development for a long time. Serbia is increasingly developing in a mono-centric manner. Of course, some believe that polycentric development, like in Ireland, is a good strategy, but I think that it is better to insist on encouraging the expansion of individual regions. Serbia needs a set of measures that would enable the faster progress of underdeveloped regions. However, I must repeat that the state cannot be the major, let alone the only, investor. We are still looking for renowned foreign investors even in companies with invested state capital. We found one for Zastava [Fiat] and they will manage business operations. Considering the missed dead-

CorD 59 / April 2009 17

INTERVIEW |

FOR THE RECORD

leksandar Vlahović has more than twenty years of experience in financial advisory, privatisation and corporate and bank restructuring in Central and Eastern Europe. Mr. Vlahovic was the Minister of Economy and Privatisation of the Republic of Serbia from 2001 to 2004. President of Sports Association Red Star, since 2006 MB Member, Erste Bank, Novi Sad, since 2006 MB Member, Economics Institute, since 2008 MB Member, Belgrade Chamber of Commerce, since 2005 MB Member, Association of Serbian Economists, since 2000 MB Member, Film Centre of Serbia, since 2007 Member of the Parliament of Serbia, since 2004 Member of Serbian Business Club Privrednik, since 2005

lines, the role of the state in Zastava can only be seen as encouraging. Serbia is paying for its past oversights through new agreements with the IMF and other international financial institutions. Our loans will amount to several billion Euros. What portion of this amount will be used outside of production? IMF loans are important in many ways: that money will surely not end up in the real sector. These loans are used for maintaining external liquidity, namely as a backup plan for defending the exchange rate. Right now it is very important to maintain a stable exchange rate. This does not mean that it has to remain on the same level for a longer period of time, but it does mean that the Central Bank should take measures to prevent daily fluctuations. What happened in January and February is not good. The exchange rate must not go wild. Whenever you have large weekly fluctuations, you should not expect businessmen to calculate the lowest, but rather the highest rate. That is why it is important to keep the exchange rate stable for a longer period of time, of course with minor adjustments depending on supply and demand on the foreign exchange market. Thus, the money we receive from the IMF will be used for maintaining macro economic stability and 18 CorD 59 / April 2009

financing external liquidity. On the other hand, the European Investment Bank, EBRD and other, commercial bank loans will be used to finance measures defined by the government to eliminate the negative affects of the crisis. One of these measures is investing in infrastructure. The state plans to continue investing in the expansion of the banking sector, while the liquidity currently present in the banking sector should be moved to the real sector, that is to say part of

Serbia can afford to take out more loans, but the point is to use the money in the right way the funds should be used to redeem the private loan from foreign banks, which is a result of an active banking policy of cross-border loans. It seems that banks and the vital parts of the economy are insisting on taking out additional loans, which we will all have to repay. The question is where that money will be invested. Each loan is a burden for some future generation. If the loan is used primarily for investing in infrastructure, than it is not a waste of money – it is an increase in capacities that will be used by generations in the future. If the loan

is used for short-term survival, which is not what the government intends to do, that is an erroneous choice. It is clear from the statements of the heads of government, ministers and the president of the republic that these loans are not intended for burdening future generations with debt without any benefit. In America, where the crisis started, they are predicting that the recovery will not start until the end of this year, while Serbia will soon be faced with the second wave of the crisis. Is it possible to predict when Serbia will recover? The first wave of the crisis started in Serbia in October, with what I believe was a completely unjustified panic – it was said that the banking sector is in a crisis and that citizens’ bank saving deposits cannot be redeemed. It turned out that our banking sector is very stable, in part thanks to the rigorous measures of the creditmonetary policies implemented by the central bank. The bank responded well to the increased demands of citizens to withdraw their savings deposits. Citizens were reassured that the banks are liquid and part of the withdrawn foreign currency savings returned to the banks, though a significant part certainly remained outside the banking sector. So, the world economic crisis had a different affect on Serbia. None of the

banks was ruined and none of them will be, because the banking sector is stable. Then economists warned that the greatest effects will be seen in the real sector. And that is what happened in November, when active credit financing from foreign banks stopped, firstly from the sources that domestic banks had in their mother banks abroad. Then we entered a liquidity crisis which is now threatening to boomerang back into the financial sector, because a large number of companies are not liquid. And that is precisely where I see the main role of the state, apart from its involvement in the realisation of public investments. The state must find appropriate measures to enable the reprogramming of loans, but the banks should not make extra profit from these business operations supported by the state by estimating additional risks. If the number of illiquid businesses increases, the level of public income will decrease and that will reflect on the realisation of the general economic policy. But the state will not go bankrupt; the state will not be forced to ask for loan write-offs which are currently at an extremely acceptable level of 28 to 30 per cent of total GDP. The state can afford to take out more loans, but the point is to use the money obtained through additional loans in the right way.

Aleksandar Vlahović talking to our Editor You are also president of the Red Star Sports Association. The football club has been in a serious crisis for many years. One should comprehend how a sporting association works. It is an association of all the teams that compete under the single logo and name of Red Star. The clubs are completely independent when it comes to management and operations and, therefore, the sporting association has no statutory rights in the matter of solving the problems that certain clubs are faced with. Of course, that does not mean that we sit idly by while someone is having difficulties – as we proved when we helped the consolidation of the basketball club and some other minor clubs.

You live a nomadic life between Sopot, Belgrade and the U.S. Where have you found that people are being most affected by the crisis and where are they most afraid? People are most afraid in America, which is paradoxical because they have a far better living standard than we do. At the first sign of a crisis in America, the rational thing for How did this crisis affect the business opconsumers to do is to start saving. Workers in erations of EKI Investment, especially your the U.S. know very well how a crisis affects sector of construction? things: the consolidation of companies leads We are a company with multidisciplinary acto you losing your job. People in Serbia are tivities. Our investments are not only in the area yet to learn this lesson. Here the consumers of construction, while those that are in that filed are acting in a completely opposite way. Durare characteristically well-structured. We do not ing the crisis we have an increase in spending, have any short-term financing thanks to the incentives given for prosources and the rate collection moting the sales of capital consumer In view of the decline in private doesn’t start until 2010 and 2011. goods. I guess Serbs think that this is investments, the state has to be the key the ideal time to buy a car, because it Therefore, we expect the main wave of the crisis to pass this year generator of economic growth this year will never be cheaper than right now. without any major effects on our I think that citizens of both countries business and we expect to see the first signs of I am sure that the football club has the re- are acting rationally, in accordance with their recovery in the first quarter of 2010. Of course, sources and potential to overcome this crisis economic systems. Sopot is a peaceful place the crisis is affecting other sectors of EKI Invest- and I believe that the club will manage to es- where I live with my family. People are acting ment’s business, some principal investments, in tablish a stable organisational structure. As for the same way as the citizens of Belgrade. The the same way as in other companies – through the financial crisis, the Red Star football club crisis periods we faced during the 1990s can a decrease of activities, which only depends on needs to use certain mechanisms to hasten the surely not be compared to the world economic the amount of your reserves. We still do not have adoption of the law on sports and the privati- crisis and, consequently, we have a different any completed facilities for the market, so we are sation of football clubs. The privatisation of approach to dealing with problems. A such, not making any estimates of prices and we will the Red Star and Partizan football and basket- someone from America or Europe might think wait for the crisis to end to see how much it has ball clubs would enable stable business opera- that the citizens of Sopot or Belgrade are beactually affected our business. tions and the influx of new capital. having irrationally. CorD 59 / April 2009 19

PROFILE |

Milka Forcan, Delta Holding Vice President

THE EU KNOWS US “For Delta, as for Serbia, connecting with the world and presenting our potential is very important.That is why we must approach the EU and not the other way around” By CorD EDITORIAL Photo Slobodan JOTIĆ ilka Forcan’s career in business has been connected to Delta from the very beginning. Having worked her way up through the ranks, today she is Vice President of the Delta Holding Corporation, one of the most powerful companies in Serbia and the region. In 2005 she was awarded the “Manager of the Year” award by the Belgrade Chamber of Commerce and in 2006 she was a recipient of the “Order of St. Sava” for her personal contribution to the construction of Belgrade’s awesome Saint Sava Temple. She also received CorD magazine’s ranking as Business Woman of the year 2008. During the past year Forcan has been in charge of the international relations department at Delta, the first division of its kind to be formed within a Serbian company. That is why most of the conversation was devoted to economic diplomacy. Still, some questions remained without an answer, or with an off the record statement given by the charming Ms. Forcan. When asked whether the owner of Delta and other business leaders represent the real power holding political sway over Serbia, she gave a negative response. However, she points out that it is normal for leading investors to have direct contact with the authorities. “Maybe these contacts should be more public, but that does not depend only on us. There is no capitalism without capitalists or major capital,” stresses Ms. Forcan.

The public has been talking about Delta’s new project and the establishment of an international relations department, which you are in charge of, since April last year. 20 CorD 59 / April 2009

WELL This is not a development related to export but rather economic diplomacy. This field is well-known globally, but it is the first time that a private Serbian company has created space for global corporate connections and positioning. How did you decide to start this project and was it connected to Delta’s appearance on the London Stock Exchange? As you said in your question, this practice is well-known worldwide. Just as before, Delta is not inventing something new; we are only applying experiences from other companies. For Delta, as for Serbia, connecting with the world and presenting our potential is very important and it is certain that the plan to appear on the London Stock Exchange increased our need to create a contact network and a good position for the company. That is probably why you organised a meeting in Brussels last October between the heads of Delta, and other leading Serbian private companies, and Commissioner Olli Rehn and his economic team. On that occasion, Rehn thanked you personally for your efforts to arrange the meeting. How important was this conference? It was the first time that Brussels had hosted a talk on Serbia that was not connected to the Hague Tribunal, Kosovo or political conditions. It was the first time that businessmen from Serbia had been given a chance to talk directly with EU officials; to ask questions and receive answers. Our business community used the opportunity to send a clear message that it supports the political efforts of our

country’s authorities leading to European integration, as well as expressing a readiness to take a more active role. The goal of the meeting was to clarify what European integration means for Serbian commerce and how the business sector can adequately prepare in the coming period. The advantages and obstacles encountered by foreign investors in Serbia were also analysed. Another topic of the meeting was the standardisation of investment norms and conditions in the region. The Brussels conference highlighted the im-

portance of the CEFTA agreement, but it was also pointed out that the potential for regional co-operation is of far greater importance and that the agreement has not been implemented in full. One of the main conclusions was made by Mr. Rehn, who said that businessmen should play a leading role in the processes of their countries’ European integration. This is probably also connected with your “shuttle” diplomacy mission in the region, aimed at organising the first regional business forum; all your current activities require a well established strategy and lo-

SAA

COST-CUTTING

The greatest affect of the unilateral application of the agreement was the reduction of custom duty rates, and, in the case of Delta, this mostly affected car sales.

Some of our large investment projects will be extended for at least six months. Cost-cutting measures have also been implemented within the company,

It is clear that Serbia is not a priority when it comes to the European Union’s foreign policy, but in relation to the Western Balkans it is a priority CorD 59 / April 2009 21

PROFILE |

Meeting in Brussels last October: Heads of Delta, leading Serbian private companies and Commissioner Olli Rehn gistical support at Delta, but also elsewhere. How is everything organised and do you have sufficient support? The basic activities are planned and realised within the newly formed office for international relations at Delta, with a team of experts. The external associate network includes well-established contacts in the region, but also in Brussels. Support is, of course, necessary, but it mostly depends on the formulation of our goals and our ability and capacity to complete them.

other events. So, we are estimating that the event will be held this autumn. The public will be informed about all the details in advance.

your programme and does the world see us as serious players? The Economic Forum in Davos is an exceptional opportunity to hear analyses of the What do you think is the common de- current global situation and predictions of the nominator when it comes to the interests world’s business and political leaders, which of all the investors in the region, something is especially important in a period of economthat could be the starting point for regional ic crisis like this. Simultaneously, a number co-operation and market openings in the of bilateral meetings are organised at Davos upcoming conference? and important contacts are made for future Investors are always interested in stable business operations. For Serbia, this year’s business conditions. Adopting business regu- Davos was a step forward in comparison with previous years, because The date of the conference depends on the Brussels’ Who will be it was the first time that attending the rebusiness and political calendar and the European parliamentary elections. So, gional conference appeared we are estimating that the event will be held this autumn delegations and what is the together, with the aim lations, value systems and legal regulations of generate interest among the business world planned agenda? Considering the fact that this event is more that are required for candidacy and then mem- gathered in Davos. The three Serbian compacomplex than the previous conference in Brus- bership are the common denominators for all nies that participated in the Forum, including sels and requires co-ordination of participants the countries of the region. Western Balkan Delta, represent successful examples of dofrom a larger number of countries, we have a countries also share another common goal: ing business not only in Serbia but also in the more complicated task at hand. The date of the membership in the European Union. region and, as such, they send out a positive conference depends on the Brussels’ calendar message to potential investors. and the European parliamentary elections and You recently went to Davos as a member the arrival of the new administration, among of our official state delegation. What was Since then you’ve also made a trip to Washington. Are your travels between the region, Brussels and Washington an indicaMISKOVIC tion of your future involvement? Brussels and Washington are decisionhat is it like to work with Mr. Mišković? making centres and, as such, are significant From the very beginning, Delta Holding – headed by President Mr. Mišković – has been not only for states but also for companies that developing its company philosophy and business principles, which are somewhat different have the ambition to expand and operate in a from the usual practice in Serbia. I would say that we are close to Western European principles. larger number of countries. In addition to exThat is one of the basic reasons for the success and quick, dynamic development of Delta.

22 CorD 59 / April 2009

Delta’s plan to appear on the London Stock Exchange increased our need to create a contact network and a good position for the company panding business operations in the region, seeking strategic partners for developing certain businesses and planning to come out on the international stock exchange, Delta considers networking in Brussels and Washington as extremely important. You have also visited Brussels many times – a city which, like The Hague, generally causes suspicion among our public. You have held both formal and informal talks with EU officials. What are your impressions, based on the numerous contacts that you’ve made there? If we have opted to take the road to the European Union, which we have, then Brussels – as the headquarters of the Union – should cause the very opposite of suspicion. We must approach the Union and not the other way around. The speed of the process mostly depends on our own efforts. Opening new offices, branches and sending proficient personnel can significantly contribute to the acceleration of the process. It is clear that Serbia is not a priority when it comes to the EU’s foreign policy, but in relation to the Western Balkans it is a priority. The Brussels administration is much more informed about the situation in Serbia and has a much better understanding than it sometimes seems from our position. In spite of the slowness of the process, from what I saw I would not say that there is an overriding negative attitude towards our country. In contrast, do you have the impression that the citizens of Serbia are well informed about the real problems that stand between Serbia and its membership in the EU? Our public is still preoccupied with solving The Hague Tribunal issue and the report on co-operation with that court. We are still dealing with that, because it is a precondition of all conditions. Our society has still not completely raised the question of adopting concrete measures and laws with the aim of organising our society in accordance with EU standards, which is yet to come. You have just become a member of the Business Advisory Council (BAC). What is that? The Business Advisory Council for South East Europe is an advisory organisation that works under the auspices of the Regional Council for Co-operation (RCC), formerly the Stability Pact. It is a forum where international and local business can get together and promote solutions aimed at increasing economic performance and advancing social development. BAC members include about 35 representatives from international companies like Delta Holding, which have a great deal of experience in global markets and institutions. In May, after two years, BAC will hold a meeting in Belgrade. Participants will include representatives of member companies from 20 European companies. What is on the conference’s agenda? Among other topics, we will discuss regional co-operation in Belgrade. The BAC actively promotes the Central European Free CorD 59 / April 2009 23

PROFILE |

it is necessary to complete negotiations with our equity partners, primarily in the retail and real estate sector. However, the current financial crisis has postponed the realisation of this project to some extent. So, coming out on the stock exchange is still our goal, but it has been somewhat extended in comparison with our original plan. At the beginning of this year Serbia began to unilaterally apply its agreement with the EU. How is this affecting Delta’s business operations? The greatest affect of the unilateral application of the agreement was the reduction of custom duty rate, and, in the case of Delta, this mostly affected car sales. The agreement stipulates the reduction of duty rates, which passes from the importer to the buyer and results in a lower retail price. Still, the hurried announcement in September led to a significant drop in sales in expectation of lower duties, which did not come into effect until February.

The trade Agreement (CEFTA) will help the region to reduce trade barriers and create a wider market with greater opportunities for our enterprises and professionals Trade Agreement (CEFTA) that will help the region to reduce trade barriers and create a wider market with greater opportunities for our enterprises and professionals. Such measures are badly needed in the current economic crisis. Yet in order to achieve this public administrations need the private sector’s active engagement. Therefore, BAC is supporting a network of national expert

KOPAONIK

hat are the impressions of Delta after the Kopaonik Economic Conference? Did you get any new directions? We expected more.

24 CorD 59 / April 2009

committees to help the implementation of CEFTA. Besides CEFTA, topics on BAC’s agenda will be concrete ongoing projects and initiatives. It is important that our views are well communicated in Brussels, as well as in the national capitals. It has been more than two years since you began preparations for Delta’s inclusion on the London Stock Exchange. How far along are you and when do you expect to finish this complex process; how will it reflect on the internal structure of the Company? Appearing on the stock exchange was set as our Company’s mid-term goal and, with the help of consultants, preparations began in that manner. Surely before achieving this goal

In Serbia and the region, but also in some European countries, there have been fincreasing remarks about the return of “economic patriotism” – a kind of ‘buy domestic’ campaign of retail protectionism. Do you think that business can benefit from “economic patriotism” or is it just a form of political manipulation and populism? We have often been exposed to waves of economic patriotism in the past, which could be seen in the campaigns of certain ministries and almost never achieved the desired success. Still, during an economic crisis it is understandable that efforts be made to stimulate the domestic economy. How is Delta operating during the economic crisis? Were there any significant changes in your investment plans, are you reducing your business scope, are there any lay-offs? As is the case with other companies in Serbia and abroad, Delta is dealing with the crisis and its difficult business conditions. Due to this fact, some of our large investment projects will be extended for at least six months. Cost-cutting measures, by means of expenditure reduction, have also been implemented within the company, but there will be no significant changes to our daily business operations.

CorD 59 / April 2009 25

Robert B Zoellick, World Bank Group President

Western Europeans to help Eastern neighbours

SECURING THE FUNDS The EBRD, EIB and World Bank Group join forces to support Eastern Europe. Up to €24.5 billion has been committed for bank lending to enterprises hit by the global economic crisis he largest multilateral investors and lenders in Eastern Europe the EBRD, the EIB Group, and the World Bank Group - have pledged to provide up to €24.5 billion to support the banking sectors in the region and to fund lending to businesses hit by the global economic crisis. The initiative

26 CorD 59 / April 2009

complements national crisis responses and will deploy rapid, large-scale and co-ordinated financial assistance from international financial institutions to support lending to the real economy through private banking groups, in particular SMEs. The financial support will include equity and debt finance, credit lines and political risk insurance.

The response takes into account the different macroeconomic circumstances and financial pressures in the countries of eastern Europe, acknowledging the diversity of challenges stemming from the global downturn. According to EBRD President Thomas Mirow: “Institutions are working together to find practical, efficient and timely solutions

ECONOMICS |

to the crisis in eastern Europe. We are acting because we have a special responsibility for the region and because it makes economic sense. For many years the growing integration of Europe has been a source of prosperity and mutual benefit and we must not allow this process to be reversed.” Also explaining the move, EIB President Philippe Maystadt said: “This joint action plan will help speed up the delivery of vital finance through the banks to support the real economy of hardhit countries in central, eastern and southern Europe, and particularly to help small businesses survive in these turbulent times.” Meanwhile, World Bank Group President Robert B. Zoellick said: “This is a time for Europe to come together to ensure that the achievements of the last 20 years are not lost as the result of an economic crisis that is rapidly turning into a human crisis.” Zoellick continued: “I welcome the close co-operation between the EBRD, EIB and World Bank Group and am committed to making this partnership work as we move forward to address the risk of a crisis emerging in the banking sector of eastern Europe.”

TWO-YEAR PLAN: According to the joint two-year plan for 2009-10, the EBRD will provide up to €6 billion for the financial sector in the form of equity and debt finance - both to banks and directly to SMEs – and trade finance. The EIB will provide some €11 billion in SME lending facilities in central, eastern and southern Europe – €5.7 billion of which is already available for rapid disbursement, while a further €2.8 billion is set for approval by the end of April and further funding is expected to follow. The EIF, the EIB Group’s venture capital and SME guarantee arm, is also aiming to increase its activity in the region over the next two years. The response to Europe’s integrated financial markets requires fast and co-ordinated action from parent banks, which own a large part of the region’s financial sectors, as well as from systemically important local banks, home and host country authorities of cross-border banking groups and from European institutions and the international financial institutions. By jointly addressing urgent financing needs, the three institutions that have teamed up for this initiative are drawing on their own mandates and specific capabil-

Thomas Mirow, EBRD President

The question is what prompted this sudden interest in the problems of eastern Europe, including countries that are not EU members, such as Serbia and Ukraine? ities to provide financial support. The initiative goes beyond the pure provision of finance by engaging all parties concerned to seek appropriate solutions to the problems caused by the global economic crisis. The IFIs welcome the support that that has already been provided to some countries by IMF programmes that have had a clear stabilizing impact and have helped to raise confidence. The IFIs believe firmly that coordinated action among the IFIs, the bank groups, governments across Europe and the European institutions will help the financial sector in the region emerge robustly from the current crisis.

THE 400-BILLION-DEBT The latest World Bank initiative, by the, and its president Robert Zoellick, and EBRD and its president, Thomas Mirrow for the rich, larger countries to help the small ones, was instigated by the 400-billion-debt that East European

countries have towards West European banks. Only a few days ago, it seemed that Austria’a lobbying for urgent financial assistance to the East and Central European countries seemed like a shot in the dark. Since then, the situation got somewhat more complicated with the idea of setting up an East European fund coming to the forefront. There are certain differences in the way this issue is approached and this could pose a stumbling block in weeks to come. Robert Zoellick, president of the World Bank, urged European officials to join in supporting Eastern Europe which has been severely struck by the crisis and worsening financial situation. What prompted this sudden interest in the problems of East Europe, including the countries that are not EU members like Serbia and Ukraine? Simply put, quite a few banks from developed countries have been reaping huge profits on these markets, and now, when the crisis and bankruptcy are looming over, CorD 59 / April 2009 27

ECONOMICS |

were petitioned to pay up, would rather do things via the International Monetary Fund, a global institution with pretty obsolete business mechanisms and morally questionable philosophy which often leads countries to despair and regretting ever concluding an arrangement with the IMF. So, the difference is not only in technical issues, but in principle. Managing this money and reasons for lending would be much different in the case of IMF, than in the case of a special fund, run by those who provided the money in the first place.

The capital is running away from the region. Economies from the Balkans to the Baltic are expected to contract up to 15% of their GDPs what could happen is for significant funds being lost and liabilities not settled. The second problem is the possibility of exerting pressure on the common EU currency zone, that includes some of the aforementioned countries. Of course, nobody, not even Zoellick, verbalized the problem by using those exact words, but these sudden expressions of concern are concentrated around the goal of not jeopardizing European unity once more, now that everybody is on friendly terms. In order to make this look like not only East Europe being deserving of help, Zoellick said that it would be good to set up a global fund with each developed country contributing 0.7% of its GDP to the fund.

TECHNICAL AND PRINCIPLE DIFFERENCES Conservative estimates show that good 120 billion euros is needed to patch up impoverished East European economies which have been viewed as successful examples of transition, liberal economic concepts and an overall good pan-European idea for years. The recession has shown that these countries are high-

ly indebted, completely dependent on western markets, capital and their own, cheaper labour, are lacking in adequate laws and the reforms they’ve carried out were not as deep and successful as everybody thought. In the end, if the older and wealthier EU members do not provide generous help, these economies could face total bankruptcy, high unemployment rate, social unrest and return to certain political powers that were thought to be extinct. Like everything in the EU, the solution will not come easy or fast. Two different concepts emerged in the last two days. The countries that were stricken and Austria, as their single biggest creditor, are strongly in favour of setting up a special fund with benevolent funds, to be spent only in that region. Simply put, they want the money and they want it now. However, those who are supposed to provide the money are not that enthusiastic about the offered solution. Understandably so, when they take into consideration that, aside from their overinflated fiscal deficit, they need to find a billion or two euros surplus for their neighbours. Hence, the rich countries, that

SUPPORT OF €7.5 BILLION

he World Bank Group will provide support of about €7.5 billion: IFC, through its crisis response initiatives in sectors including banking, infrastructure and trade, as well as through its traditional investment and advisory services, is expected to contribute up to €2 billion; IBRD intends to increased lending in Europe and Central Asia up to €16 billion in 2009-10 – up to €3.5 billion of which is envisaged for addressing banking sector issues in emerging Europe; MIGA will provide political risk insurance capacity of up to €2 billion for bank lending, subject to Board approval.

28 CorD 59 / April 2009

WHERE DOES IMF GET THE MONEY FROM? In addition to the aforementioned, the question is whether the IMF has enough money at its disposal to cover the growing financial needs of eastern Europe, in addition to the global demand for funds. For example, Hungarian Prime Minister, Ferenc Gyurcany mentions “a wide circle of member countries” that would contribute some 100 billion euros to the special fund for the EU members and non-members stricken by the crisis. According to the recent claims made by the IMF’s director, Strauss-Kahn, the fund disposes of close to 200 billion US dollars for potential new debtors, after ‘squeezing out’ 100 billion from the crisis-stricken Japan. So, the calculation is tight. It is more than clear to the aforementioned rich countries, which stated at a recent minisummit, in preparation for the large G20 summit at the beginning of April, that EU members needed to increase the Fund’s resources to 500 billion US dollars, whilst not providing an answer how to do that and who can secure such money for the Fund. So far, the account of a newly-resuscitated IMF is in the four former communist countries, plus Iceland and Pakistan. The Baltic states, Hungary, Poland and the Czech countries could join this list soon. The capital is running away from the region, production in Poland fell by 15% in January, while the economies from the Balkans to the Baltic are expected to contract up to 15% of their GDPs, according to economic analysts. Lending is certainly a sore spot for the whole East Europe, so all of the aforementioned economies are facing a collapse without being able to settle their debts. In numbers, the region owes 400 billion US dollars to Western banks this year alone.

QUOTATIONS Elections would be a fresh burden for our economy to handle, since we would not be applying measures through which we would be able to defend the living standard of citizens. Serbia nowadays does not need that. Serbia nowadays needs unity” Boris Tadić, President of the Republic of Serbia, speaking about the “economic tsunami” that has hit the whole world

Elections would be the most economical and best solution to a situation where we have a bad, incapable government. I think the time has come and that is a need of this nation.” Aleksandar Vučić, deputy leader of the Serbian Progressive Party

We have realised that behind those so-called talks there is an attempt of the Democratic Party to cheat us, actually to create an impression of being democratic in public, whereas in practice those meetings were organised according to the motto ‘take it or leave it’”. Dragan Todorović, head of the ministerial group of SRS explaining why the Radicals will not be taking part in consultations in the Serbian Parliament

How is it possible for a photograph of Dragi Jovanović, Mayor of the City of Belgrade, and the head of the

Banjički camp, the killer, to hang in the Assembly of the City of Belgrade alongside other mayors?`` Dr. Branka Prpa, Director of Historic Archive of Belgrade

Many trials are processed in court so as to determine the obligations of employers with regard to salaries that have not yet been paid. There are 90,000 employees in the enterprises that have been privatised so far, so paying salaries that have not yet been paid could lead to a halt in production and losses of existing jobs in these enterprises.” Nebojša Ćirić, State Secretary of the Ministry of Economy and Regional Development in a letter demanding that courts put off employment claim trials

Ikodinović is a great sportsman, but what example does somebody who drinks and drives drunk at 200km per hour set to kids?” Lidija Vukićević, SRS MP, speaking in response to the decision of minister for youth & sports, Snežana Samardžić-Marković, to appoint water-polo player Danilo Ikodinović as a promoter of sports among children

Serbia has unused supplies of oil shale, which can be used for producing oil and, through correct investments, our country could become an oil exporter.” Petar Škundrić, Serbian Energy & Mining Minister

In court processes there are usually two sides and, as a rule, eventually one of them is not pleased with the court’s decision. The administration of justice is neither more nor less corrupted than other sectors.” Snežana Malović, Serbian Justice Minister

None of the former communistic countries of Eastern Europe have become members of the EU without previously becoming a member of NATO, which brought them safety and significant economic growth.” Vuk Drašković, President of the Serbian Renewal Movement

Religious groups did not give an ultimatum. The government could have acted differently and said that they were not interested in those attitudes. However, I have estimated that the week of postponement will not be a great problem.” Serbian Prime Minister, Mirko Cvetković, speaking after the adoption of the Law against Discrimination among religious groups

If Petar II Petrović Njegoš were alive he would be accused of promoting discrimination and intolerance, due to his life work, and perhaps he would end up as a Hague convict.” Irinej, Bishop of the Serbian Orthodox Church, speaking with regard to the law against discrimination

If after 5th October politicians had been allowed to find out who those who drove money in trucks for foreign currency smugglers were and who those who pumped the money that had been earned for decades by working and intelligence, instead of taking photos with them, the message from Kopaonik would be much more convincing.” Dr. Jagoda Jorga, nutritionist

I would never recommend that anybody gain popularity or money in the Big Brother house, as that is a certain ruin. This show would only make sense if politicians went into the house.” Nenad Čanak, President of the League of Social Democrats of Vojvodina, speaking on his departure from the Big Brother house

There is no military formation in Serbia that could free Milorad Ulemek Legija or that could attack the group tasked with transporting him.” Slobodan Homen, State Secretary of the Ministry of Justice

Serbia is currently living for tennis and now it’s the right moment for us to forge a system back home, in order to enable the kids to become true professionals one day.” Novak Djokovic, World No. 3. tennis player CorD 59 / April 2009 29

The 2009 Index of Economic Freedom

ECONOMIC OPPORTUNITY For over a decade,The Wall Street Journal and The Heritage Foundation, have tracked the march of economic freedom around the world with the inďŹ&#x201A;uential Index of Economic Freedom

conomic freedom is the fundamental right of every human to control his or her own labor and property. In an economically free society, individuals are free to work, produce, consume, and invest in any way they please, with that freedom both protected by the state and unconstrained by the state. In economically free societies, governments allow labor, capital and goods to move freely, and refrain from coercion or constraint of liberty beyond the extent necessary to protect and maintain liberty itself. SERBIA - Serbia scores above average in fiscal freedom and labor freedom. Both the income and corporate tax rates are competitively low. The labor market is relatively flexible but still has much room for reform to increase productivity an d employment growth. Trade

30 CorD 59 / April 2009

freedom is above the world average, but tariffs are significantly higher than in most other European countries. Business freedom, government size, monetary freedom, investment freedom, and freedom from corruption are weak. Government spending is high, reaching over 40 percent of GDP. Inconsistencies in rules and non-transparent regulations in the investment regime continue to stifle growth, impeding development of more dynamic entrepreneurial activity. Inflation is high and the government controls prices of basic goods and other services. BUSINESS FREEDOM 56.0 - Overall business freedom remains constrained by Serbiaâ&#x20AC;&#x2122;s burdensome regulatory environment. Starting a business takes an average of 23 days, compared to the world average of 38 days. Obtaining a business license takes more

TEN ECONOMIC FREEDOMS

SERBIA

AVERAGE

Business Freedom

56.0

64.3

Trade Freedom

78.0

73.2

Fiscal Freedom

85.9

74.9

Government Size

46.3

65.0

Monetary Freedom

65.8

74.0

Investment Freedom

40.0

48.8

Financial Freedom

50.0

49.1

Property Rights

40.0

44.0

Fdm. from Corruption

34.0

40.3

Labor Freedom

70.0

61.3

than the world average of 18 procedures and 225 days, and costs are high. TRADE FREEDOM 78.0 - Serbia’s weighted average tariff rate was 6 percent in 2005. Some high tariffs, some import restrictions and bans, some import licensing and permits, non-transparent regulations, and corruption add to the cost of trade. Ten points were deducted from Serbia’s trade freedom score to account for non-tariff barriers. FISCAL FREEDOM 85.9 Serbia has competitive tax rates for individual and corporate income. The individual income tax rate is 12% for salaries, to be reduced to 10%. Other personal income (royalties, investment, and rent) can be taxed at up to 20%. The corporate tax rate is a flat 10%. In the most recent year, overall tax revenue as a percentage of GDP was 34.1%. GOVERNMENT SIZE 46.3 - Total government expenditures, including consumption and transfer payments, are high. In the most recent year, government spending was estimated to equal about 42.3 percent of GDP. MONETARY FREEDOM 65.8 - Inflation is high, averaging 9.2 percent between 2005 and 2007. The government can control the prices of certain basic products, including milk, bread, flour, and cooking oil; controls the prices of utilities, public transit, telecommunications services, and petroleum; and influences prices through numerous state-owned enterprises. Fifteen points were deducted from Serbia’s monetary freedom score to account for policies that distort domestic prices. INVESTMENT FREEDOM 40.0 - Serbian law provides for national treatment of for-

eign capital, and investment is not screened. Most sectors are open to foreign investment. Residents and non-residents may hold foreign exchange accounts, subject to central bank permission or conditions. Payments and transfers are subject to restrictions, and most capital transactions are subject to controls. Both foreign and domestic entities may own real estate, and foreign investors may acquire concession rights on natural resources. FINANCIAL FREEDOM 50.0 - Serbia’s financial sector is not fully developed, but it has undergone transformation. Aggressive consolidation and privatization by the central bank since 2001 have helped to revive Serbia’s banking sector, which now accounts for about 90 percent of total financial-sector assets. The number of banks has plummeted in the past five years as a result of the restructuring and consolidation. As of 2007, there

Judges are poorly trained, underpaid and difficult to dismiss for incompetence were 37 banks: 18 foreign-owned, 12 stateowned, and seven private Serbian banks. A wide range of credit instruments is available to the private sector, but Serbia’s financial intermediation is relatively low. PROPERTY RIGHTS 40.0 - The Republic of Serbia’s constitution creates an independent judiciary, but the judicial system is corrupt and inefficient. Judges are poorly trained, underpaid, and difficult to dismiss for incompetence. Central registries of land titles are typ-

SERBIA

erbia’s economic freedom score is 56.6, making its economy the 109th freest in the 2009 Index. Serbia is ranked 37th out of the 43 countries in the Europe region, and its overall score is below the world average. ically not completely current, but the government is trying to modernize its survey system. The legal regime for protection of intellectual property rights has improved substantially as Serbia has revised laws to meet WTO’s Trade-Related Aspects of Intellectual Property Rights (TRIPS) standards, but IPR enforcement is still insufficient. FREEDOM FROM CORRUPTION 34.0 - Corruption is perceived as widespread. Serbia ranks 79th out of 179 countries in Transparency International’s Corruption Perceptions Index for 2007. The authorities are inconsistent in condemning official corruption, and investigations are often politically motivated. Demands for bribes are expected at all stages of a business transaction. A deeply rooted practice favors certain parties based on connections. Organized criminal groups engage in money laundering. LABOUR FREEDOM 70.0 - Serbia’s relatively flexible labor regulations support overall employment and productivity growth. The non-salary cost of employing a worker is moderate, and dismissing a redundant employee is not costly. Regulations related to the number of work hours are fairly flexible.

THE TOP 10 RANK

Country

Overall

Change

Hong Kong

90.0

Singapore

87.1

-0.2

Australia

82.6

+0.4

Ireland

82.2

-0.3

New Zealand

82.0

+1.2

United States

80.7

-0.3

Canada

80.5

+0.3

Denmark

80.0

+0.4

Switzerland

79.4

-0.1

United Kingdom

79.0

-0.5

+0.3

CorD 59 / April 2009 31

INTERNATIONAL |

INDIA AND PAKISTAN: BROTHERLY ANIMOSITY

NUCLEAR THR When it comes to relations between India and Pakistan, the only concrete dispute is the Cashmir region, but relations are also strained by the heated situation in Afghanistan and the fact that both countries are nuclear powers

32 CorD 59 / April 2009

By Slobodan ALEKSANDRIĆ

REAT T

here are these crucial historical moments which are a shift towards the future. For Pakistan, the moment of truth has arrived. The decisions that the country makes today will determine whether terrorism and extremism can be suppressed and the country saved from collapsing internally. The issue here is not only the stability of Pakistan, but the stability of the entire civilised world. I am convinced that we can do this, since Pakistan is on the verge of an abyss… I am going to back to Pakistan in the autumn, well aware that difficult days are ahead of me. But I do believe in my people and my destiny is in God’s hands” – after sending out this political appeal from abroad, Benazir Bhutto was assassinated on 27th Cashmir is divided into three zones: the December 2007 in Rawalpindi. Pakistan managed to survive her western one is governed by Pakistan; the death, but the question remains central by India, the east by China what kind of destiny awaits this country. Bearing in mind the fact that Pakistan a row, could set fire to the whole planet and is the only Islamic country that has nuclear maybe even spark a Third World War. weapons, things have become more compliNumerous problems between India and cated for both Pakistan and its close/distant Pakistan make this situation almost unsolvaneighbours. India, a country that Pakistan has ble. Pakistan is going through huge trials and had perennial brotherly animosity towards, al- tribulations. The divisions created by British so has nuclear weapons, while there are al- politicians led to the fact that close to 150 milso two other nuclear powers nearby – Russia lion Muslims live in India today. Indeed, afand China. If we add to this Afghanistan and ter Indonesia and Pakistan, India has the third Cashmir, two of the world’s most volatile ‘hot largest Muslim population in the world, alspots’, we can come to the grim conclusion though the Muslim ethnic minority compristhat the whole region could explode soon and es only 13 per cent of the country’s total popsuffer the horrors of a nuclear apocalypse. ulation. Co-existence between Hindus and The whole planet fears this. Not just because Muslims if far from normalised and is often the world fears armed conflict between pow- marred by bloody conflicts. Publicly or beerful countries anyway, but rather because hind closed doors, Pakistan has been fuelthis would be unlike any other conflict in the ling the divscontent felt by the Muslims in world which can be controlled to some ex- India while Delhi has been regularly accusing tent from the outside. A possible armed con- Pakistan of encouraging Muslim extremists. A flict between Pakistan and India, the fourth in vicious circle indeed. Pakistan, or rather var-

AP FURY: Indians in Mumbai demonstrate against Pakistan, which they blame for the Mumbai terrorist attacks...

I N D I A

E C O N O M Y

PA K I S TA N

Despite its economic progress, India is still considered a Third World country in many respects

Regardless of the fact that it has many difﬁculties, the Indian economy is charging ahead

For years, Islamabad has been unable to control the territory of the whole country CorD 59 / April 2009 33

INTERNATIONAL |

DIVIDED CASHMIR

European Commissioner Benita Ferrero-Waldner and Pakistani Foreign Affairs Minister Makhdoom Shah Mahmood Qureshi ious extremist and terrorist organizations that are active in Pakistan, have been heavily influencing the situation in Afghanistan. This causes a great headache to the United States and its allies. Afghanistan, particularly its border region with Pakistan, is a breeding ground for terrorism. The Taliban and many other Pakistani extremists that have been warring against the U.S. and allied forces with silent and sometimes quite explicit support coming from certain factions in the Pakistani intelligence services. Many believe that the headquarters of Bin Laden, the U.S.’s No. 1 enemy of the state, is stationed somewhere in the border region between Afghanistan and Pakistan. On numerous occasions relations between India and Pakistan have grown so heated that Delhi has threatened to engage its army, but at those times Islamabad has simply informed the Americans that Pakistan would withdraw hundreds of thousands of its soldiers from the Afghanistan border and station them along the border with India in order to respond to India’s threats. Then Washington pressures India into retreating in order for the Pakistani Army to continue manning the border with Afghanistan. The worst thing that could befall the whole sub-continent and the world would be if the government of Pakistan were to collapse, which would probably happen if this country started a war with India. For years, Islamabad has been unable to

INDIA Some 40 per cent of Indians are illiterate, 60 per cent don’t have running water and around 310 million people live below the poverty. 34 CorD 59 / April 2009

control the whole country’s territory. The outlying Pakistani regions are held by integralists, i.e. religious fanatics or mobsters who have been working together with extremists and renegade groups from the military and civil secret services. This explains the fact that activities by Pakistani terrorists in their own country, as well as India, have been carefully planned and dauntingly efficient. Up to November 2008, when the heinous terrorist attack on hotels and other facilities in Bombay took place, the main strength of the Indian economy had been the trust in the country’s stability shown by domestic and foreign companies alike. For a long time, the Indian economy has been developing at an annual rate of nine per cent, which has helped

For years, Islamabad has been unable to control the whole country’s territory it to become one of the healthiest economies in the world today. India has 162 universities with admirable educational potential. When it comes to the IT sector, Indian engineers are unparallel in the world. IBM, for example, employs 70,000 Indian IT engineers. When it comes to the service sector, India has the number one place in the world – the country’s exports account for a total of 50 per cent

PAKISTANI Some Pakistani regions are held by religious fanatics who work with extremists and renegade groups from the military & civil secret services.

ashmir is divided into three zones: the western one is governed by Pakistan; the central and the biggest one by India; the east is administered by China. In 1948 and 1949, the UN General Assembly voted in favour of two resolutions calling for the staging of a referendum once conditions had been met. For India, this was possible only after the withdrawal of Pakistani troops, so suffice to say the referendum has never taken place.

of the global export. Despite this great, even euphoric economic development, India is still considered a Third World country in many respects. Some 40 per cent of the country’s population is illiterate, while 60 per cent don’t have running water. Around 310 million people live below the poverty line in India, getting by on only 1 or 2 dollars a day. There are telltale signs that the country’s economy is slowing down, primarily because domestic and foreign investors have been losing trust in the country’s peace and stability. There is too much violence, political and general, and the tension between Delhi and Islamabad is growing. This deters the business world and certain multinational companies have been thinking of relocating their branches from India. However, this is not the scariest thing – that would be if the country were to start a war with Pakistan. Both India and Pakistan are nuclear powers and there is no need to explain what this conflict could become. Nobody could anticipate whether nuclear weapons would be used only as a threat or be actually engaged. Islamabad used to say that in case of “dire need”, the country’s nuclear arsenal would be relocated to somewhere in Afghanistan. This alone is enough to cause panic. According to many Western military and civil intelligence services, several “reliable generals in Islamabad” are taking care of Pakistan’s nuclear weapons. What if they are not reliable enough?

WORLD WAR A possible armed conﬂict between Pakistan and India could set ﬁre to the whole planet and maybe even spark a Third World War.

LEADERS NEXT CLOSURE OF THE SERBIAN ECONOMY Zoran Drakulic, owner of East Point

he main problem of the Serbian economy is that it doesn’t have enough goods for export, since the state has not been dealt with the raising of export capacities. Last year we had a huge budget deficit of 11 billion dollars and we see that we are in a huge trouble. Fortunately, due to the falling value of raw materials, the deficit this year, in absolute figures, will be small. But the percentage continues to grow. We should address most seriously what we can export: we have Bor (mining), we have grain and food, and we should concentrate on that. The state has a grain surplus from last year’s crop and the export of grain should by subsidised by the state, which would help reduce the trade deficit and the pressure on the price of the new crop. A good part of the Serbian economy could be closed by the end of the first half of the year, due to the affects of the global and domestic economic crisis. The latest measures of the Serbian government will not produce significant results because there is no new money for investment. The country is giving banks peanuts to subvert interest rates. However, the question is how much money the banking system has. I’m afraid that the bank’s are cautious and the money we are talking about doesn’t actually exist. It could happen that banks release subsidised credit to allow the previous to be covered.

GOVERNMENT INVESTMENT BETTER THAN SALE Slobodna Adžić, General manager of Pančevo’s Petrohemija

f the state helped Pančevo’s Petrohemija with 95 million euros, instead of being illiquid the

company would quickly become a highly efficient facility. If the state doesn’t help now, Petrohemija – the second biggest exporter in Serbia – could suffer the same fate as neighboring Azotara. It’s true that last year we had a record loss of €90 million, however large petrochemical concerns have closed plants and everything shows that petrochemical prices will soon start to rise. Unlike the previous management team, I considers that an exit from the problem need not come only by selling or acquiring Oil Industry of Serbia, but rather investing because Petrohemija has a high quality product that is renowned in the world. Corporate analysis compiled for several ministries suggests one option calling for an investment of €65 million, while another calls for €95millio. The investment of €95 million, which includes the modernisation of four production lines and the installing of a new polypropylene plant, would see the invested capital recouped in less than two and a half years. The problem is that we are illiquid and cannot get credit from any bank without a government guarantee.

BLACK DAYS OF THE EXCHANGE Dragijana RadonjicPetrovic, director of MV Investments

he bad picture on the Belgrade stock exchange, BSE, is not only the result of the global financial crisis, but also a consequence of passivity of domestic players on our market, because of which we are all being punished. The average daily volume of traffic on the BSE has decreased almost six fold compared the same period last year. The global crisis has encouraged foreign funds to turn towards their own markets, as well as others where they have significantly higher investments. Domestic investors are refraining from investing further in shares, because the

value of initial investments has fallen significantly. There are no new minor investors. However, share prices on the stock market are very low and interesting for investment, so it’s necessary to restore the confidence of investors. Not much has been done to develop market capital and that’s why we’re paying a tribute. Even large, developed stock exchanges have a problem with falling prices and falling liquidity. Enormous effort will be required to rebuild trust in the share fund industry. Legal regulations certainly must be improved. Moreover, one should take into account the further privatisation of large companies, which must be carried out well to ensure that our market is not left without Blue chip companies.

WORKLESS AGAINST THE CRISIS Mirko Todorović, owner of clothing company Todor

he crisis is beyond work and not workless. Instead of the state encouraging workers in factories, its measures and recommendations are chasing them from the plant. If the reduction of working hours is the solution, then why are we not working only one day of the week? If the crisis will last four years, then let’s send employees on a nice, wellpaid four-year leave of absence and return them to work when the financial disasters passes. The socio-economic measures of the state are treating the healthy and letting the ill die. This is the same as if we filled a car with less petrol but expected it to go the same distance. Of course, that is crazy and impossible. And where would we find the money to pay wages if workers are working less? I don’t understand anything; I’m not interested and I wouldn’t implement something like that in my company. If I did implement something like that, I’d end up having to lay off 100 workers. If it wants to save

jobs, why doesn’t the State reduce taxes and contributions to 40 per cent? Then we’d renounce something. The problem is that the programmes are written by those who don’t have a single employee. I wonder how they would run a company with measures to reduce the working week that they propose.

CRUCIAL KOPAONIK MEETING Dragan Kopčalić, director of Monterra Ltd.

he meeting on Kopaonik was of crucial importance. This is a milestone in relations between the Serbian economy and politics. The participation of most of the political elite of Serbia, including the president, prime minister, ministers, Serbian macroeconomists and the leading figures of the domestic economy, ensured that for the first time they established their communication over a period of time, which, in my opinion, is of great importance for all actors. It is impossible for the state to be strong if its economy is not strong. It is impossible for politicians to formulate a strategy for the year ahead of us without communication with the most important businessmen and those who fill their budget. This co-operation is even more important, because we are all in crisis and we all have to give our maximum in order increase efficiency. This means that the joint plan is not an annual or monthly thing, but rather a daily activity. The event on Kopaonik was important for me, because it was an opportunity to communicate with other representatives of industry and understand the way they run their production. Talking to most bankers I have gained accurate knowledge of how they will monitor Monterra as a company during 2009. I can freely say that Monterra has a good standing and I think we will remain supportive of the development of Serbia. CorD 59 / April 2009 35

REGION |

MONTENEGRO IN TIMES OF CRISIS

State put to the test Montenegro has been facing the challenge of defending the state from the great strife caused by the global economic downturn By Ilija DESPOTOVIĆ in Podgorica

selves in significantly altered conditions. After Montenegro gained its independence back in 2006, the country experienced a real boom in terms of foreign investments. The inflation rate was brought down to the Eurozone level;

looming. Montenegrins look back fondly at the post-referendum period, when congratuhe idyllic times of the post-referlations poured in from other countries and the endum period are ancient histostate was welcomed to various international ry. Accordingly, the nation now organisations. Three years on, the message excepts Podgorica for Montenegro is that the This year the growth of Montenegro’s economy country must exercise pato show the skill and strength needed to keep tience when it comes to is likely to drop to just 2%. But, it is widely Montenegro’s economy alive, joining the EU and NATO save the population from poveraccepted that the country will avoid a recession – Montenegrin applicaty and prepare the country for the tions for both organisapost-crisis period, which, according to some unemployment fell to around 10 per cent; the tions have been put on hold for the time beestimates, will essentially see the emergence tourism industry flourished and the state budg- ing. For the new state, which has yet to prove of a “new world order” where countries and et recorded a surplus. Now, though, all of this itself in the eyes of its citizens, this is quite an their economies will have to reposition them- could be in jeopardy with negative tendencies unfavourable development. The Montenegrin

36 CorD 59 / April 2009

Government is in a difficult position, hence persists, a new election is possible in just a et itself. In this kind of situation, the social its decision to schedule extraordinary parlia- year. The Montenegrin Government has intro- and political environment will also become mentary elections for 29th March. The gov- duced strict savings measures. The state au- less stable. However, there is some hope in ernment explains that elections are necessary thorities are banned from hiring new staff or the shape of foreign investments. A lot is exin order to secure a full term of office for the buying new vehicles or new IT equipment. pected from the sale of the state-owned stake government, in addition to adding more dyna- Travelling has been reduced to a minimum, in the Electric Power Industry of Montenegro. mism to the Euro-Atlantic integration process. while telephone costs and fuel consumption If a 19 per cent stake is sold for around €300 The opposition, on the other hand, claims that are being supervised. In addition to these re- million – as predicted – this will mark an imby scheduling the election, the Government straints, the government has provided various portant financial injection for Montenegro’s wants simply to stay ahead of the ‘crisis tsu- incentives for companies. Taxes and contribu- economy. A tender for the recapitalisation of nami’ that is likely to hit Montenegro this au- tions have been reduced, though the loss to the country’s electric power industry is open tumn. Regardless of the whys, 16 election the budget will be in the region of around €54 until the end of April. There are hints that lists will take part in the elections, includ- million. That said, the lowering of income foreign investors are willing to finance othing seven coalitions and nine political parties. tax is something that employees are certain- er projects in Montenegro, like buying attracAccording to relevant estimates, the ruling co- ly looking forward to feeling. tive locations for the development of seaside alition – comprising the Democratic Socialist Montenegro’s economy has been grow- tourism. The main lure for tourism investors Party and the Social-Democratic Party is the Luštica Peninsula near Herceg – stands to win. Other pre-election coNovi, as well as the huge and aptly The opposition claims that by the alitions include less influential parnamed Great Beach in Ulcinj. Great election, the Government wants to Beach (Velika Plaža) was frequently ties, while stronger opposition parties are opting to take part in the elecmentioned at a recent Real Estate Fair stay ahead of the ‘crisis tsunami’ tions alone. These include the Socialist in Cannes. It stretches over a million National Party, New Serbian Democracy (a ing by up to 10 per cent annually in the last hectares and is deemed suitable for building transformed Serbian National Party) and the few years. This year, however, growth is like- hotels with a total of over 30,000 beds. This Movement for Change. Still, bearing in mind ly to drop to just two per cent. Nevertheless, is the biggest development project in the rethe current crisis situation, the question is it is widely accepted that the country will gion and one of the biggest global projects of whether electoral winners are going to rejoice avoid a recession. Much hinges on the gov- this kind, since it would take 20 to 30 years and whether losers will have enough reason to ernment’s plans for resolving problems in to implement it. This year, the Montenegrin mourn their loss. the Podgorica Aluminium Combine, KAP. In Government also plans to start constructing The new government won’t have it easy. 2008, this company, owned by the Russian ty- a motorway connecting Bar and the state borIt will have to do battle with the ‘crisis mon- coon Oleg Deripasca, exported goods that ac- der with Serbia. The motorway will be 170 sters’ and, regardless of its success in combat- counted for 50 per cent of Montenegro’s total kilometres long and current estimates predict ing the crisis, it will ultimately bear the brunt exports. This year, production in the Combine that it will cost around €2 billion. The section of all troubles that befall the economy and has been halved and the global aluminium from Podgorica to Mateševo, in the direction of population if it fails the confine them with- price has dropped from US$3,200 per tonne Kolašin, will be built first. Several foreign comin bearable limits. Nobody can guarantee that to US$1,200. If KAP goes bust, the whole panies have already expressed interest in taking election winners are going to stay in power Montenegrin economy will follow, including part in the construction of this first motorway in for the full four years anymore; if the crisis the railway, the port of Bar and the state budg- Montenegro.

POST-INDEPENDENCE After Montenegro gained its independence back in 2006, the country experienced a real boom in terms of foreign investments

ELECTIONS The Government is in a difﬁcult position, hence its decision to schedule extraordinary parliamentary elections for 29th March

GREAT BEACH Great Beach was frequently mentioned at a recent Real Estate Fair in Cannes. It’s deemed suitable for building hotels with 30,000 beds CorD 59 / April 2009 37

ECO ISSUES |

Fifth World Water Forum in Istanbul

WATER IN A

CHANGING WORLD The UN World Water Development Report warns that almost half the world’s population could be affected by drinking water shortages by 2030 By Jelena PETKOVIĆ f the previous reports on UNESCO drinking water offered negative prognoses, then the last report could only be described as a threat of disaster. The report, entitled “Water in a Changing World”, was jointly compiled by 24 UN agencies. Among other things, it concludes that if the current situation does not

38 CorD 59 / April 2009

change (drought, increasing population, climate change, poor waste management and existing sources of water) the world will certainly suffer a severe lack of the world’s most precious liquid. This report and other recently discovered problems in the world’s water supply were on the agenda of the largest international conference on water – the Fifth World Water Forum - which was held in Istanbul this

March. The UN is concerned that politically unstable parts of the world could be at risk of new conflicts if the issue of water shortages is not appropriately dealt with. Areas highlighted as being at risk of water-inspired conflict include Israel and the Palestinian territories, Haiti, Sri Lanka and Colombia. The problem of drought reflects on any economy and the report warns that the most exposed areas of

WORLD WATER COUNCIL

very third year the World Water Council (WWC) organises the World Water Forum in close collaboration with the authorities of the host country. The Forum is the largest international event in the field of water. The WWC’s mission is to “promote awereness, build political commitment and trigger action on critical water issues at all levels, including the highest decision-making level, to facilitate efficient conservation, protection, development, planning, management and use of water in all its dimensions on an environmentally sustainable basis for the benefit of all life on earth”.

the world facing this threat are parts of China, ernance is more essential than ever for wa- needs, but only if these quantities are rationalIndia and Indonesia, as well as trade centres in ter management,” stressed director-general of ly used and protected from accidental or delibAustralia and the western part of the United the UN’s Educational Scientific and Cultural erate pollution.” States. Population growth also has a signifi- Organisation (UNESCO), Koichiro Matsuura. The national strategy explains: “the comcant impact on the supply of water (each year It is these factors that gave even greater im- plex geological structure and hydro-geologithe world’s population increases by 80 mil- portance to the Fifth World Water Forum in cally favourable conditions on the territory of lion, which requires an additional 64 billion Istanbul. the Republic of Serbia ensure the provision of cubic metres of water). Moreover, a lack of “The ultimate goal of the 5th World Water significant mineral wealth and thermal-minerwater creates serious problems for agriculture Forum, Istanbul 2009, is to motivate action al water reserves. In terms of density of wabecause, as UN scientists confirm, around 70 to improve the world’s management of water and diversity in their physical and chemical per cent of the world’s fresh water is used for ter resources. This can only be done by rais- characteristics, Serbia can be counted among crop farming and livestock the richest areas on Serbia has sufficient quantities of water to meet domestic the European contibreeding. According to the report, needs, but only if these quantities are rationally used and nent.” factors influencing the availThe document ability of drinking water in also states that waprotected from accidental or deliberate pollution the world include changter supply is a priores to people’s diets. This section of the report ing awareness of the importance of water-re- ity, “which is supported by the fact that investstates that people are more and more living at lated issues. However, global awareness must ment in this area is the highest”. It also states a level of “standard middle class”, thus more be followed by actions, such as legislation that insufficient attention and resources to enand more people are drinking milk and eating and funding, which are promoted through the sure the purification of water were provided in eggs, chicken and beef “which,” the report ex- Forum,” says Prof. Dr. Oktay Tabasaran, the Serbia in the past, thus contributing to the agplains, “is much more water-intensive than the Forum’s secretary-general. The World Water gravation of quality. simpler diets they are replacing.” Forum is organised every three years and has The strategy also notes that Serbia runs a Another problem is the lack of safe wa- three basic branches: The thematic branch, risk of water pollution due to uncontrolled and ter and sewage disposal. The report estimates which includes 23 fundamental issues that are untreated waste water being released into lothat almost 10 per cent of the world’s diseas- addressed; the political branch, which sees cal streams and rivers, as well as inadequate es could be prevented with clean water. The leaders, ministers, MPs and regional adminis- septic tanks and the fact that water protection UN evaluates that the next 30 to 50 years will trators meet at the forum; the regional branch, measures are rarely applied. see massive increases in the numbers of so- which sees the focus given to water-sharing The strategy identifies the key problems in called “climate change refugees”, which will and other key co-operation issues. water management in Serbia, noting the fact see mass migrations as a result of the affects Serbia’s water supply problems are covered that existing legislation is not in harmony with of global warming. This people will also need by a national strategy of sustainable develop- modern European trends and standards, coufresh water to drink. ment. The strategy concludes that Serbia “has pled with insufficient institutional capacities “With increasing shortages, good gov- sufficient quantities of water to meet domestic and inadequate funding.

LACK OF WATER

DISEASES

CHILDREN

he UN World Water Development Report estimates that almost half the world’s population will be living in areas of high water stress by 2030, including up to 250 mil. people in Africa.

ater scarcity in some arid and semi-arid areas could displace up to 700 mil. people. Almost 80 per cent of diseases in developing countries are associated with water.

nfortunately, 5,000 children die every day from diarrhea and roughly 10% of all illnesses worldwide could be avoided by improving water supply and the management of water resources. CorD 59 / April 2009 39

BUSINESS |

MANAGERIAL MISSION IN TIMES OF CRISIS

COMPANY AS AN

OPERA HOUSE hat should be developed inside the company and what should be outsourced? At what pace should one amend and adapt existing business functions and capabilities? These are just some of the questions that a manager in crisis needs to provide a precise answer to.

40 CorD 59 / April 2009

Nobody can boss their business partners around. Working with a partner is basically a marketing job, carried out with the aim of mutual satisfaction

In the mid-1990s, the so-called ‘founding father of contemporary management’, Peter Drucker, said that he was confident that in fifteen years time managing companies would be completely different. Drucker passed away in 2005, but his prediction that management, particularly in large systems, would become the ‘most complex job in the world, requiring constant revision’ has come to pass, simply

because the nature of business and the world has been constantly changing. The problem of management systems is a common subject in Serbia. According to 2008 statistics, Serbia has 598 large companies (firms of 250 or more employees) employeeing a total of around 550,000 workers, or 45 per cent of the country’s workforce. Of these large companies, ten have more than 5,000 employees, while 27 have between 2,000 and 5,000 employees. European and other foreign companies in Serbia have their opera-

changed from tomorrow? This is a difficult question. Insufficient change means regression and the company becoming obsolete in terms of consumer needs and competition. Meanwhile, change that runs too deep or occurs too frequently is often exhausting. What should be developed inside the company and what should be outsourced? At what pace should one amend and adapt existing business functions and capabilities? A young company puts the sales first, followed by mature know-how and motivated staff (according to

Companies do not operate in vacuum and, according to one definition, a company is a social institution, just like a nursery, school or court tive extremities, i.e. branches managed from remote places, with varying levels of success. According to some estimates, there are close to 5,000 foreign senior and middle managers in Serbia. Due to bad management in business and politics, problems related to development, environment, and losses are growing.

NEW ETHICS The greatest demand on contemporary top managers is achieving a balance. First of all they need to optimise processes over both the long and short term, while a strong urge to generate profit and a quick return on an investment is often viewed as shortsighted and short-term. However, investment and pension funds often push new management structures into doing precisely that. What should be kept and what should be

the company life cycle in Isaak Adizes’ book ‘Managing the Company Lifecycle’). The most important thing is achieving a fresh balance in relation to other companies and the society at large. Companies do not operate in vacuum and, according to one definition, a company is a social institution, just like a nursery, school or court. And it should be a responsible part of the society. If top management in a company doesn’t care much about its natural surroundings, the welfare of its employees, social situations and processes, then said company is bound for trouble long-term. Care for the overall welfare of society is a line that will divide successful from unsuccessful managers. Corporate social responsibility (CSR) is not only a phrase – it has become a serious and powerful global movement. Institutionally, the search for standards has been built around the ISO 26000, SA 8000 standard, which is part of an annual report. The understanding of the ethics of top management is constantly changing. Huge salaries and bonuses that allow executives to get rich quick (in just two to three years at the top) are set to become impossible - firstly because of ethical norms and secondly (perhaps) because of new legal constraints.

BAD MOVES

worst managers in 2008 (according to Business Week)

t Daniel Bouton, former president of Société Générale, France Prone to taking risks, weak internal control t +FSPNF ,FSWJFM GPSNFS FNQMPZFF of Société Générale, who embezzled seven million US dollars from the bank. t +BNFT $BZOF GPSNFS $&0 PG #FBS Stearns, USA Apparently, amidst the biggest crisis in the company, spent most of his time playing golf and bridge. t 3JDIBSE 'VME GPSNFS $&0 PG -FINBO Brothers, USA Ignored the warning signals that led to the collapse, awarded high risk takers and business greed. Believed that ‘the Great Lehman’ was unsinkable. t 'SFE (PPEXJO GPSNFS $&0 PG 3PZBM Bank of Scotland, Scotland Orchestrated mega-takeovers, took out huge loans, went into arrogant expansions that led to the debacle. t ,FSSZ ,JMMJOHFS GPSNFS $&0 PG Washington Mutual, USA Arrogant disrespect towards reasonable mortgage loans, getting rich from profit bonuses. t .BSDFM 0TQFM GPSNFS QSFTJEFOU PG UBS, Switzerland UBS was one of the biggest losers in 2008. In April 2008, Ospel said: “The storm is passing over”, only to refute himself later by saying: “Who could have ever predicted this?” t 1IJMJQ 4DIPPOPWFS GPSNFS $&0 PG Circuit City, USA Declared a war on prices, drop in services, laying off 3,400 experienced workers (“They were earning too much money!”) t .BSUJO 4VMMJWBO GPSNFS $&0 PG American International Group, USA By persistently claiming that AIG was a healthy company, he showed his ignorance of what was really going on. t 3JDIBSE 8BHPOFS $&0 PG (FOFSBM Motors, USA Aware of the situation, but refusing to make radical changes, not investing enough in economy cars. t +FSSZ :BOH $&0 PG :BIPP 64" Refused Microsoft’s offer of a takeover, failed negotiations with Google, the company is sinking on the stock exchange. CorD 59 / April 2009 41

BUSINESS |

GOOD MOVES

Should you join the profit and fast return on investments flow? What should you keep and what should you change as of tomorrow? TIME FOR ORDERS; TIME FOR CO-OPERATION â&#x20AC;&#x153;More and more, the position of a CEO will become the most complex job I know: managing an opera house. You have your star opera singers and there is no way you can order them around. You have a troupe and an orchestra, there are people who work backstage and there is the audience. Each group is different. However, the conductor has music scores and everybody else also has the same scores. In a company, you need to make sure that all of these different groups come together in order to produce a desired group result. This is not about who is more or less important, but who is important for which job. One should discern when to give orders and when to treat someone as a partner or coworker,â&#x20AC;? wrote P. Drucker in his book â&#x20AC;&#x2DC;The practice of managementâ&#x20AC;&#x2122;. Nobody can boss their business partners around. Working with a partner is basically a marketing job, carried out with the aim of mutual satisfaction. This implies that a CEO pose the following questions: What values, aims and expectations do my co-workers possess? What motivates them and whatâ&#x20AC;&#x2122;re their personal guiding principles? Of course, Drucker claims, there are times when it is necessary to issue commands in order to get things done. But one should know 42 CorD 59 / April 2009

when to give orders and when to behave like a partner. Druckerâ&#x20AC;&#x2122;s prediction regarding company hierarchy as a managing principle has survived to this day, albeit in a significantly altered form.

PLEASANT WORKING ENVIRONMENT In terms of the human aspect of top managers in a large or medium-sized organisation, these company leaders are expected to be highly competent, dedicated to the companyâ&#x20AC;&#x2122;s mission statement, adept at working in unison and ready to be team players with complete trust in one anotherâ&#x20AC;Ś It takes at least three to six months to transform the group toward the programmed curve of team development. All in all, management within large systems is never going to be reduced to several types and styles, or a couple of Ăźber-mangers like Jack Walch and Andrea Groue. There will be many more good models and best practice cases, indigenous to surrounding situations, company features and personnel, but also the characteristics of a companyâ&#x20AC;&#x2122;s leading light. New age companies will be known for their innovations, visionary attitude, long-term thinking, flexibility, social responsibility and balance. There is also another special feature: they are going to become a pleasant workplace.

top managers in 2008 (according to Business Week)

t %BWJE "YFMSPE UIF NBJO TUSBUF gist in Barack Obamaâ&#x20AC;&#x2122;s presidential campaign, Axelrod was the architect responsible for successfully shaping Obamaâ&#x20AC;&#x2122;s mission of change. t 'SBOL #MBLF $&0 PG )PNF %FQPU 64" Managed to internally build up the company, simplify the organisation, raise company motivation. t +BNJF %JNPO $&0 PG + 1 .PSHBO USA Resisted the temptation of â&#x20AC;&#x2DC;exotic financial dealsâ&#x20AC;&#x2122;. Took over the fallen Bear Stearns and Washington Mutual. t -BSSZ &MMJTPO $&0 PG 0SBDMF 64" Managed to carry out 40 acquisitions worth 25 billion US dollars in three years. Operative profit = 46% of the total sales. t 5BLF 'VLVJ $&0 PG )POEB +BQBO Honda is far ahead in the small economical car section. Fukui has been cutting costs, but not saving on innovations. t .BSL )VSE $&0 PG )FXMFUU 1BDLBSE USA Hurd has a very simple business formula â&#x20AC;&#x201C; to reduce costs and increase efficiency by giving customers the innovations they want. HP has been withdrawing from the markets where the company is not No. 1 or 2 and has been carrying out a series of acquisitions. t 4BUPSV *XBUB $&0 PG /JOUFOEP +BQBO Nintendo DS managed to keep its market, whilst doubling the sales. Iwata says: â&#x20AC;&#x153;In crisis, the buyers are just pickier. So, there are buyers.â&#x20AC;? t 1FUFS -PFTDIFS $&0 PG 4JFNFOT Germany Restructured Siemens after the companyâ&#x20AC;&#x2122;s tarnished image following the corruption affair. t *SFOF 3PTFOGFME $&0 PG ,SBGU 'PPET USA â&#x20AC;?My job is to be the leader. I know the difference between managing and leading.â&#x20AC;? t +JN 4JOFHBM $&0 PG $PTUDP 64" Refrained from increasing the prices longer than his competition in order to maintain the companyâ&#x20AC;&#x2122;s market share. Kept 87% of the companyâ&#x20AC;&#x2122;s buyers.

APR 09. / ISSUE NO. 59

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SOCIETY |

Siemens - A Socially Responsible Company

Generation 21 company creating the future through its innovative technologies and solutions must contribute towards the common good of the society to which it belongs. Siemens has cherished this idea for more than 160 years, since the establishment of the company itself, says Slavica Radojevic, Corporate Communications Manager of Siemens d.o.o. Beograd According to Radojevic, Siemens is committed to universal values, society and environmental protection. The company’s treatment of associates, shareholders and business partners is based on integrity. Moreover, she claims, Siemens is an integral part of the local industry and society, but also actively participates in and sponsors important cultural, scientific, educational and sporting manifestations. Siemens Generation 21 is the name of the company’s educational programme aimed at promoting and stimulating the education and training of young people. Through this initiative, the company would like to show its commitment to society and the development of the youth – the future decision-makers.

44 CorD 59 / April 2009

The company has a vital interest in finding and cherishing talents worldwide. Within the programme Siemens Generation 21, the company has organised a competition to create multi-media presentations for primary and secondary school students throughout Serbia. Moreover, for the second consecutive year, Siemens has been successfully organising the competition ‘Create the Future’ in co-operation with the Serbian Education Ministry Under the auspices of the Siemens Generation21 programme, the company has nurtured long-term co-operation with the Faculty of Electrical Engineering and the Faculty of Mechanical Engineering in Belgrade, the Faculty of Technical Sciences in Novi Sad and the Faculty of Mechanical Engineering in Niš and Kragujevac, by supporting teaching and education staff, as well as the most successful students in their further education, and enabling their participation and insight into the latest developments and achievements of the Siemens concern. Within the programme Siemens Arts, the company is seeking to support national identity. By so doing, Radojevic insists, Siemens

Slavica Radojevic Corporate Communications Manager / Siemens d.o.o. Beograd doesn’t count on actual business success, but in the long run it counts on great success, since in this manner Siemens is able to confirm that it would like to remain active in these areas for a long time. Radojevic reveals that Siemens is a member of the association for the construction of the Temple of Saint Sava in Belgrade, as well as the Foundation of the National Theatre in Belgrade. It is also one of the donors of the project for the construction of the Avala Tower. Siemens has sponsored numerous theatre and ballet events, as well as the concert of the ensemble “Camerata Serbica”. The company assisted in the organisation of manifestations for the celebration of the 150th anniversary of the birth of Mihajlo Pupin and Nikola Tesla and, as Radojevic explains: “we have been sponsoring the Belgrade Dance Festival and the exhibition of the Serbian Academy of Sciences and Arts (SANU) “Molecules in secrets of life and the world around us”. Siemens cherishes a special relationship toward sports within its business policy and strategy. By means of corporate sponsorships and donations, Siemens aims to contribute to the development and improvement of sports in Serbia.

| ADVERTORIAL

AN EU-FUNDED PROJECT: MUNICIPAL INFRASTRUCTURE SUPPORT PROGRAMME

First Green Landfill in Serbia Nine municipalities in western Serbia have joined forces in order to tackle their urgent solid waste problems

heir initiatives are fully in line with the National Waste Management Strategy and the relevant EU Directives and therefore they succeeded to attract national and international funds to construct a new sanitary landfill. In the past decades, the EU has developed practical guidelines on how to take solid measures. Serbia joined this path in 2003 when the National Waste Strategy defining improved regional solid waste management was adopted as one of priorities of environmental policy. The NWM Strategy defines improved regional solid waste management as one of the priorities of environmental policy. THE REGIONAL SOLID WASTE MANAGEMENT SCHEME DUBOKO - Inter-municipal cooperation is one of the most important prerequisites for accessing EU funds. Therefore in 2005 the nine municipalities (Užice, Čajetina, Požega, Čačak, Kosjerić, Lučani, Arilje, Ivanjica and Bajina Bašta) agreed on construction of a regional sanitary landfill in line with EU standards and Serbian legislation. This project is one of the first in Serbia tackling solid waste management. As such, it serves as a demonstration project and replicable model for other regions in Serbia. Signing of the intermunicipal agreement has also led to creation of the Public Utility Company “Duboko” which has been staffed and operational since 2006. Once the new landfill located in Užice is completed, the 10 existing environmentally non-compliant “dumpsites” will be closed and potentially redeveloped, thus solving eco problems in the immediate surrounding. The sanitary landfill is designed for the storage of 1,100,000 m3 municipal communal waste with a lifetime of approximately 15 years. Duboko also acquired public support - the citizens in the region were consulted on several occasions, which contributed to strengthening and wide understanding of the project importance. FINANCING AND FUNDS - In 2007, the EIA has been approved by the Serbian authorities and accepted by the European Union and the European Bank for Reconstruction and Development (EBRD), both providing funding for the project. External funding for the landfill construction, the waste separation line and the transfer stations was solicited and obtained from the Environmental Protection Fund (EPF), MoNIP, The European Commission, SIDA and the EBRD which is giving a long-term loan to the Duboko Company - the bank’s first loan to a municipality-owned PUC in Serbia.Total project investment costs are 24, 9 million EUR. Project implementation started with preparatory works in 2007 and in June 2008 the works for the waste separation line have started under a FIDIC Design/Build contract. The works for the landfill body are planned to start in the first quarter of 2009. The solid waste management scheme Duboko, supported by MISP Programme, will have a long lasting positive effect to the

fragile mountainous environment in the region. Through their well prepared, consistent and endured approach, the municipalities have managed to attract Serbian and international finance for the realization of their plans. The ongoing construction of the Duboko landfill marks the start of a project that will influence the daily life of citizens in the region - they will achieve to protect direct environment from further negative impacts of uncontrolled waste disposal, by simply improving their waste disposal activities. MISP (Municipal Infrastructure Support Programme), financed by EU, assists municipalities in Serbia in preparation of Project documentation and implementation of the municipal infrastructure projects. MISP supports projects in water management, waste water management, solid waste management, district heating, homes and shelters, education facilities, facilities for disabled, tourist locations, reconstruction of the cities and industrial parks. The main goal of the Progamme is improvement of the infrastructure services management in municipalities and more intensive investment in the infrastructure in order to meet EU standards in relation to environmental protection, sustainable economic development and to provide funds for social needs. MISP is also assisting municipalities and PUC’s throughout the complete process of infrastructure projects realization - from application, Feasibility studies, budget management and advising on projects implementation. EPTISA, Spanish engineering company, which chairs the consortium of two more foreign companies: VNG and CES, is in charge of MISP project realisation.

CONTACT: Cok van Schooten, Team Leader, +381 11 744 32 60, cvanschooten@misp-serbia.rs, www.misp-serbia.rs

CorD 59 / April 2009 45

| B2B |

SAFEGUARDING PIRAEUS BANK GROUP

AND STRENGTHENING ITS BALANCE SHEET

THREEDAY WEEKEND FOR

SMEDEREVO WORKERS

iraeus Bank Group, despite the world financial crisis, has recorded excellent results in 2008. Pre-tax and provisions profit in 2008 amounted to €774 mn against €742 mn in 2007. Net Profit attributable to Shareholders for 2008, excluding €215mn additional provisions, reached €530 mn compared to €503 mn in 2007. When the additional provisions are deducted, net profit attributable to shareholders amounted to €315 mn. Cumulative provisions for 2008 were €388 mn compared to €116 mn in 2007. 0.Net interest income increased by 26% y-o-y and net commercial banking commissions are up by 30%. Net Interest Margin remained at 3%. Piraeus Bank Group in the past 12 months has recorded total assets increase of €8.5 bn, Piraeus bank amounting €55 bn. Deposits were increased branch office in 2, Umetnosti by 31%w (+€7.4 bn) and annual loans growth Blvd., Belgrade rate was 27% (+€8.0 bn). Adjusted for securitizations, “loans to deposits” ratio at 112% improved from 121% in 2007. Capital Adequacy ratio stood at 9.9% with Tier I at 8.0%. These ratios will increase to 10.9% and 8.9% respectively, after the completion of the planned share capital increase of €370 mn within the framework of government support program for providing enhanced liquidity to the Greek economy. “2008 turned out to be a difficult year for the economy and the banking industry internationally. The unprecedented conditions of the recent months called for the adjustment of our policies based on the new facts and aimed at protecting the Group and strengthening its balance sheet. For this reason we decided, in addition to the total provisions of €173 mn that we had estimated, to take further collective provisions of proactive nature of €215 mn in the last quarter. Implementing a conservative and prudent lending policy we have succeeded in maintaining a low NPL’s ratio with high collaterals. “ –pointed Michalis Sallas, Chairman of the Board of Directors.

four-day working week is to be introduced at U.S. Steel Serbia’s Smederevo steel works, the company has announced. According to U.S. Steel Serbia spokesman, Namanja Brkovic, the move will see working hours slashed from 40 to 32 hours per week and is aimed at cutting costs in light of the global economic downturn. Workers will receive 60 per cent of their daily wage for the extra day off. However, the company, which is one of Serbia’s top exporters, has no plans to make any redundancies as yet. “The measure will help the company cut costs and minimise the influence of the crisis on employees and their families,” Brkovic said. U.S. Steel Serbia’s decision to opt for a temporary four-day working week has prompted the Serbian government to consider doing likewise for state-run companies affected by the global downturn.

USDA PEST MANAGEMENT PROGRAMME

ITALIANSERBIANROMANIAN

he Foreign Agricultural Service (FAS) of the U.S. Embassy in Belgrade, in cooperation with the Serbian Ministry of Agriculture, organized a workshop on “Integrated Pest Management for Peppers and Carrots in Serbia”, March 1619, 2009 in Divcibare. This training is a part of USDA’s technical assistance project in Serbia and is designed to support the Serbian Plant Health and Seeds sector. During the workshop experts from the University of Wisconsin - Madison, Walter Stevenson, Jeffrey Wyman, Susan Ricemahr and Jed Colqhoun provided training on contemporary systems of production of peppers and carrots. EMportal

46 CorD 59 / April 2009

INDUSTRIAL DISTRICT

talian Minister for Economic Development, Claudio Scajola, has suggested that an Italian-Serbian-Romanian industrial district be established, with the three sides signing a trilateral agreement. Speaking during a visit to Belgrade on 9th March, Scajola also noted that Italy has already invested €800 million in Serbia and is therefore among the top five investors, adding that around 200 Italian companies are doing business in Serbia, providing approximately 18,000 jobs. Speaking exclusively to CorD, H.E. Ion Macovei, Romanian Ambassador to Serbia, said that he had personally forwarded Minister Scajola’s suggestion to Bucharest and was expecting a formal response by tomorrow. Addressing trilateral co-operation between the three states, Ambassador Macovei told “in February there was a three-way meeting in Rome between the foreign ministries of Italy, Romania and Serbia at the level of general directors. Soon there will be a second meeting at the level of ministers and by the coming autumn I expect a three-way meeting to be held at the prime ministerial level. This all relates to a Romanian suggestion to launch a joint project with Italy to support Serbia’s EU entry. The projects relating to this have already been agreed and will probably be implemented soon”. Balkans.com

B2B |

STRATEGIC PARTNER

FOR BOR BASIN

erbia is ready to finance the building of a new copper smelter, in accordance with best available technology, which should meet modern standards of environmental protection - the concourse reads. The Serbian Privatisation Agency has published the public concourse for the selection of a strategic partner for the Bor mining and smelting basin, for the additional capitalisation of 40% of the new company to emerge after the restructurion of the basin and with the possibility of acquisition of 67% of the capital. The minimum amount of capitalisation for 40% of the capital is $116 million, while the submission deadline is 21st April. Two previous attempts to privatise RTB Bor have failed. The first saw Romania’s Cuprom fail to secure payment guarantees for its bid of $400 Million, while the second collapsed when Austrian A-TEC failed to make its second instalment of $230 Million.

ALEKSANDAR RADOSAVLJEVIC BECOMES THE NEW FIC PRESIDENT

he FIC management has gone through significant changes. The Association has the new leader and has changed representation in the Board of Directors. At the same time, the FIC will continue to pursue the same policy of advocating for predictable business conditions. Carlsberg CEO Aleksandar Radosavljevic is the new head of the association, succeeding Stein-Erik Vellan who is leaving to manage Unitech Wireless, part of the Telenor Group in India. Under Vellan’s strategic guidance, the FIC deepened its dialogue with relevant stakeholders and consistently advocated for improvement of the business climate. Aleksandar Radosavljevic comes to the position of the FIC President ex officio, as he was previously elected to hold the post of Vice President. At the same time, the FIC Board of Directors has altered membership. The FIC Board member and the President of the Executive Board of Alpha

Bank Panagiotis Vlasiadis announced that he will be leaving Serbia. Vlasiadis played an instrumental role in developing the FIC’s plans and programmes. On the other side, new Telenor CEO Kjell-Morten Johnsen will take his seat in the FIC Board of Directors. In his first address as the FIC President, Aleksandar Radosavljevic announced that the FIC Board will continue to call for predictability, as the main precondition for doing business, and advocating for the cutting of red tape in the Serbian administrative framework.

“FIDELINKA” INCREASES CAPITAL

ajor share of the money from additional capitalization will be used for development of baking industry. Subotica-based “Fidelinka” has increased its capital by 505m RSD after the third issue of stocks, during which nearly two thirds of 200,000 offered stocks were sold, mainly to existing majority stockholders. In that way, the number of stocks was increased to nearly 1.5m. Major share of the money from additional capitalization will be used for development of baking industry. The largest stockholders of “Fidelinka” are “Mowbray Systems”, “Alysun marketing”, “Mineco” and Bank Austria Creditanstalt, which own three quarters of the company’s capital. Source: Glas Javnosti

THREE BROKERAGE

COMPANIES SHUT DOWN T

he Serbian capital market lost three brokerage companies in March - Jubmes Broker, Atlas Broker and Professional Stock Broker, which legally ceased to exist. Of the 88 brokerage and dealing companies which existed at the beginning of the year, the list has already lost five brokerage companies. It is estimated that the number of brokerage companies in Serbia will be halved by the end of 2009, due to the drop in trade on the Belgrade Stock Exchange. Source: VIP, ANSAmed

OTP PROVIDES

BROKERAGE SERVICES

TP becomes the ninth brokerage-dealer company licensed to operate on the Belgrade Stock Exchange. OTP bank Serbia acquired the status of Belgrade Stock Exchange (BSE) member licensed to provide brokerage-dealer services and market maker operations under conditions and terms set by the Operating Regulations and other BSE regulations. This makes OTP the ninth brokeragedealer company licensed to operate on the Belgrade Stock Exchange Source: EMportal CorD 59 / April 2009 47

B2B |

SERBIA IN THE WORLD

GREAT STUDENT INTEREST FOR COMPETITION

“CREATE THE FUTURE”

he enrolment of students throughout Serbia for participation in a new cycle of the Siemens competition “Create the Future” is closed. Some 418 teams of students of primary and secondary schools from Serbia entered the competition. Primary schools students showed a greater interest with 257 teams enrolling, while 161 teams of secondary school students submitted their applications. After enrolling for the competition, all teams will have a deadline of 1st May to prepare and submit their multimedia presentations, while the ceremony granting the award to the winner is scheduled to take place at the end of May. The competition “Create the Future” is part of the global educational programme Siemens Generation21, through which Siemens promotes and stimulates the education and training of young people. Wishing to arouse the interest of primary and secondary school students

OF LEXMARK

he Serbian ITC technology market has become extremely dynamic and its users increasingly demanding and Lexmark logically found its niche in this part of the world as well. After taking over Ceemark, which has to date represented Lexmark in these markets, this multinational company is entering the domestic field at full capacity. The major US IT company Lexmark is officially in Serbia. To mark the occasion, Lexmark organized a presentation at the Belgrade Hotel Hyatt on March 11 that was attended by over 120 representatives of the media and business partners. They were addressed by Lexmark Vice-President and CEMEA General Manager Antonello Cardone, Serbian Environment and Spatial Planning Minister Oliver Dulić. With 13,000 employees and production facilities across the world, this multinational company is above all guided by its commitment to manufacturing reliable printers and imaging solutions. Source: EMportal

ECOBUSES IN KRAGUJEVAC

in science and technology, to encourage them to choose their future vocations in the field of technology and providing them with key skills and qualifications, Siemens d.o.o. Belgrade organises a competition for the creation of multimedia presentations in cooperation with the Ministry of Education and the Belgrade’S Secretariat for Education. Students, aged between 12 and 19, in teams consisting of 3 to 5 students, create a multimedia presentation of information or entertainment content on a computer, which includes the idea, imagination, and research, and the creation of visual and audio elements. The aim of the project “Create the Future” is to acquire practical knowledge in new technologies in schools and developing characteristics such team spirit, creativity and taking responsibility. The topic of this year’s competition is: “My school – Intelligent Building “. Siemens has prepared valuable awards for both the teams and their schools, and the winning teams wait for an award trip to Vienna. 48 CorD 58 / Mart 2009

ragujevac is going to be the first Serbian city to introduce eco-friendly low-floor buses using natural gas into public transport. Vulovic Transport Company from Kragujevac, in cooperation with Byelorussian MAZ plant, started the production of eco-buses which are going to result in considerable savings compared to buses using diesel fuel. Eco buses do not emit sulphur and soot, which will reduce pollution by 50 percent. By using these buses, Kragujevac is going to

save all the money that was used for subsidising of the public transport. Source: B92

PREFABRICATED HOUSES FOR FRANCE

he Duborez Jevtic company in Krusevac which makes pre-fabricated houses signed a contract with the French company Quality Wooden Houses to export houses worth four to five million euro. The Duborez Jevtic company in Krusevac which makes pre-fabricated houses signed a contract with the French company Quality Wooden Houses to export houses worth four to five million euro. Duborez owner Radoslav Jevtic said that the contract calls for the export to France of at least one prefabricated house of 100 square meters a week at a price of 320 euro per square meter. Source: VIP, ANSAmed

EFG “ASK SAVINGS

CONSULTANT”

AND DRIVING PROPERTIES

triving to confirm its reputation of the bank of the leading choice for savings, Eurobank EFG has updated its Web presentation and offered to its retail clients a special “Ask Savings Consultant” option at the Website. Striving to confirm its reputation of the bank of the leading choice for savings, Eurobank EFG has updated its Web presentation and offered to its retail clients a special “Ask Savings Consultant” option at the EFG website. . Retail clients can now obtain advice and learn about the ongoing savings offer at www.eurobankefg.rs/savetnikzastednju By clicking at the “Ask Consultant” icon at the Website, retail clients of Eurobank EFG will open a new Web page which includes an option for asking questions, and you will receive a reply within 24 hours. Source: EMportal

INDUSTRIAL PRODUCTION DOWN IN JANUARY

FIRST CLASS EXCLUSIVENESS

he refreshed Volvo S80 is being unveiled for the very first time at the Geneva Motor Show in early March and sales will start in spring 2009. Building on great success in key markets, Volvo Cars’ large sedan model takes centre stage with far greater self-assurance than ever, the result of a more distinctive and elegant design, a more exclusive interior and a sharper chassis and upgraded engine range. Volvo S80 now have fresh front, with a new grille featuring the larger iron mark. There is also new bright work on the air intakes, lower part of the doors and under the tail lamps. Inside the car the spotlight is on increased exclusivity and comfort. The soft, sumptuous leather seats with their matching stitching are accompanied by door panels echoing the same trim. Super-slim floating centre stack is upgraded with a silk metal frame that emphasises its original design and enhances its exclusive feel. In the refreshed S80 instruments get exclusive aluminium dials and Volvo is also launching a new generation of steering wheels. Driving experience has been elevated with an entirely new twin-turbo five-cylinder 2.4-litre diesel, with 205 HP. Fuel consumption is only 6.2 l/100 km – a record-low figure for a car of this size and performance level. S80 is also available with an upgraded 2.4-litre diesel engine with 175 HP, fuel consumption at 5.8 l/100 km and CO2 emissions of 154 g/km. For S80, Volvo has developed two distinct chassis alternatives – one with the cosseting feeling of supreme comfort and one truly dynamic for the driving pleasure soul.

he Serbian Statistics Office stated that industrial production in January 2009, when compared to January 2008, fell by 17.1%, and by 25% in comparison to the 2008 average. The industrial production volume in January 2009, compared to January 2008, shows that there was a slow down in 22 areas, which make up 74% of overall industrial production, while production increased in 7 areas. Source: Tanjug

GREEK INVESTORS IN PRISTINA

Greek Investors Conference will take place in Priština on 7th April. The event will be supported by the Investment Promotion Agency under Kosovo’s Ministry of Trade and Industry. The Minister of Trade and Industry of the “Republic” of Kosovo, Lutfi Zharku, held a meeting with Mr Dimitris A. Moschopoulos, Chief Liaison Office of Greece in Kosovo-Metohija, and Secretary for Economic and Commercial Affairs within the Ministry of Foreign Affairs of Greece, Nikolas Thomopoulos, on 26th February. The meeting included discussions on the Greek Investors Conference in Priština, which is aimed at encouraging Greek investments in Kosovo-Metohija. Source: New Kosovo Report CorD 58 / Mart 2009 49

| B2B |

NIN SOLD TO RINGIER C

ompany Ringier Ltd, Serbia, became the owner of a magazine NIN on 13th March. Ringier is ready to engage their resources, in both Serbia and Europe, to improve NIN’s market position on the local, regional and European markets. When buying this weekly, Ringier pledged to unconditionally accept the minimum obligations from the social programme. Ringier was first on the list in the tender for the sale of 70% of Nin. As previously announced, Ringier will invest in effective marketing and activating potential for the

HENKEL TAKES

GERMAN TOP SPOT

A further popularisation of the weekly to ensure that the magazine become the leading reference and political weekly in Southeast Europe. Ringier’s portfolio includes political magazines such as Germany’s Cicero, Swissbased L’Hebdo and the Czech Republic’s Reflex. Ringier issues products and service of over 120 leading newspapers and magazines, 20 television programmes, 50 Internet portals and 12 printing houses.

NEW U.S. EMBASSY IN BELGRADE

he construction of a New Embassy Compound in Belgrade represents the long-term commitment of the United States to bilateral relations with Serbia. The U.S. Department of State’s Bureau of Overseas Buildings Operations and the Bureau of Administration has announced the award of a $117.1 million contract to build a New Embassy Compound (NEC) in Belgrade, Serbia. The NEC in Belgrade will be constructed by Framaco International, Inc. of Rye Brook, New York. The construction of a New Embassy Compound in Belgrade represents the long-term commitment of the United States to bilateral relations with Serbia. The project also represents a significant investment in Serbia’s economy and will create between 200 and 600 new jobs. The NEC will provide safe, secure and functional facility for 400 employees who will work at the embassy. The 10 acre site located at Bulevar Kneza Aleksandra Karadjordjevica 92 in Belgrade was purchased from the Serbian Government for $15 million in 2007. The proposed completion date for the Belgrade NEC is 2011.

ccording to the annual sur vey conducted by Fortune magazine, Henkel is Germany’s most admired company in 2009. The Fortune ranking of the “World’s Most Admired Companies” is one of the most renowned corporate rankings worldwide. On the international front, Henkel took second place behind Procter & Gamble in the “Soaps and Cosmetics” category. “We are delighted to have done so well. This result further demonstrates that we are on the right track, given that the assessment criteria of this ranking coincide very closely with our strategic priorities,” commented Henkel CEO Kasper Rorsted. Henkel made significant strides in both listings. In the German rankings, Henkel leaped from rank 16 to top of the list. Henkel also shot up the international rankings, moving into second place behind Procter & Gamble in the “Soaps and Cosmetics” category. Fortune’s “World’s Most Admired Companies” counts among the most important global barometers for assessing the reputation of a company.

KJELL MORTEN JOHNSEN NEW CEO OF TELENOR SERBIA

SOJA PROTEIN PROFIT

oja protein made a profit of RSD 1.25 million last year, which is 90 percent more than in 2006. Soja protein company from Becej made public that it would invest EUR 37.7 million in new technologies, the increase of capacity, quality and range of products by the end of 2009, the statement from that company reads. The biggest investment of EUR 30 million will be made in the construction of the new factory for the production of final soy products, which will be financed from the announced capital increase. Source: B92 50 CorD 59 / April 2009

jell Morten Johnsen has been appointed new CEO of Telenor Serbia, replacing Stein-Erik Vellan, who has been nominated head of Telenor’s Indian initiative. Mr. Johnsen takes his new position at March 16. Kjell Morten Johnsen (41) has headed Telenor Russia since 2006. Johnsen has broad experience from working in different industries internationally over the last 15 years. He has held several Senior Management and Board of Directors positions. “It is with respect and enthusiasm that I take on the challenge to develop this superb company further, seeing what impressing work my predecessor, Stein-Erik Vellan has done. I know the Serbian customers have been used to demanding and getting top quality network and innovative services from Telenor Serbia. This will be my top priority to maintain and improve further.” said Kjell Morten Johnsen.

TENDER FOR SALE OF JUGOTERM

he factory makes the biggest part of revenues on domestic Serbian market, while about 20 percent of the production is exported to markets of Greece, Macedonia, B-H and Austria. The Privatization Agency announced the tender for the sale of 70 percent of Jugoterm’s capital.The deadline for the submission of applications for the purchase of tender documentation is April 4, while the deadline for the submission of binding offers is April 24 of this year.Jugoterm produces heaters and its most important products are steel radiators, beside which they produce oil filled radiators and solar collectors. Source: Tanjug

TELEKOM SRBIJA REDUCES PROFIT

ast year Telekom Srbija posted profit of RSD 11.5 million, which marked a 22.6% loss on 2006 results. Telekom Srbija’s Profit reduced despite a massive 17 per cent increase in revenues to RSD 75 billion, stated general director Branko Radujko. He believes that the past year has been marked by a major price clash on the mobile telephone market, but he also points out that Telekom successfully fought off the competition. Radujko also stated that Telekom Srbije was ready to handle the complete liberalisation of the fixed telephony market. Source: B92

THE NEW ECLASS:

SAFE, COMFORTABLE, EFFICIENT

ABS WANTS MINEL TRANSFORMATORI

BS holdings company has announced its interest in the purchase of Minel transformatori company from Ripanj. Managing director of ABS holdings, Zoran Radosavljević, announced that his company would participate in the tender for the sale of Minel, which should soon be announced by the Privatisation Agency. According to Radosavljević, Minel has a very good production programme which excellently fits into the business concept of ABS holdings, which has already bought six companies from Minel’s composition. As such, ABS is extremely interested in purchasing the company and will seriously approach the tender, Radosavljevic said. Source: B92

ith ten million models since 60 years the world’s most successful business saloon The new E-Class saloon is the successor to a Mercedes model that has been successful throughout the world, and of which more than 1.3 million examples have been sold since 2002. In Germany more than 40 percent of all saloons in this market segment have an “E” in their model plate, and in many western European countries this Mercedes model series is the number one in the luxury class. Since 1947, when the Model 170 V was introduced as the direct ancestor to the E-Class, Mercedes-Benz has produced more than ten million saloons belonging to this series. This makes the E-Class easily the world’s most successful business saloon. In 1995 the E-Class was the first Mercedes model to appear with the highly acclaimed twin-headlamp face – a highly symbolic design feature that still characterises the identity of the E-Class. Nonetheless, the design idiom has remained fluent even for this characteristic styling feature, and has been adapted to suit the self-assured, masculine overall appearance of the saloon. The designers have now reinterpreted these four “eyes”as rectangles, with a direct reference to the interesting geometrical shapes found in cubism. They have the effect of precious gems that have been precisely set into the wings. In the same way, the radiator grille with its three-dimensional chromed surround, dynamic arrow-shape and more upright position underlines the status of the car as the epitome of a business saloon. With typical Mercedes attention to detail, the designers have also given great attention to the interior of the new E-Class, ensuring that every feature appeals in both emotional and functional terms with its form, colour or material. The result is a harmonious whole – an atmosphere in which the car’s occupants immediately feel safe and protected, and long journeys can be taken without any feeling of effort or stress. In short: Typically E-Class, welcome home.

CorD 59 / April 2009 51

| B2B |

“VINO FEST“ IN SARAJEVO O

n february 19.-20. 2009., the Second international wine festival „ SARAJEVO VINO FEST“, was held in the hotel Holiday Inn, in Sarajevo. Organized by the company „Max style“, wines from 70 wine cellars from the region were presented to the visitors. Wine cellar Aleksandrovic presented wines „Trijumf“ and „Varijanta“, vintage 2008., Harizma, vintage 2007., „Trijumf Noir“ and „Vizija“, vintage 2006. On the professional valuation, international jury awarded four gold medals for our wines „Trijumf“, „Trijumf barrique“, „Trijumf Noir“ and „Vizija“. That was reason for increasing already usual crowd on our stand.Our special guests were owners and managers from several Sarajevo restaurants . Wine cellar Aleksandrovic had a very successful promotion of its wines in the prestigious restaurant “Four rooms of Mrs. Safija” in Sarajevo. In a friendly atmosphere, prominent guests didn’t hide their suprise and enthusiasm for the wines which were new for them. And, slowly, Sarajevo goes in line with towns where you can enjoy, in the finest restaurants, in wines of Wine cellar Aleksandrovic.

WORLD BANK LOAN TO ENHANCE BUSINESS CLIMATE

he latest international loan to Serbia has been earmarked to support the Serbian government’s reform activities by luring new business and FDI. The €34.9 million IBRD loan, approved by the World Bank’s Board of Executive Directors in early March, is being implemented by the Serbian Finance Ministry and will be used to develop industry and trade (50% of the loan), banking (30%) and capital markets (20%). The loan, described as a ‘Programmatic Private &

Financial Development Policy Loan’ (PFDPL) will mature over 20 years and has an eightyear grace period. According to the World Bank’s project description: “The loan will support the Government of Serbia’s reform actions by enhancing the business environment to encourage new business and to attract foreign direct investments; strengthening financial discipline by enhancing hard budget constraints in the enterprise sector through continued reform of socially-owned enterprises and restructuring of public utilities; and building a more efficient and stable financial sector by strengthening prudential supervision of the banking sector and encouraging development of the capital markets.” Speaking to CorD, Belgrade-based M&A advisor, Ian Mihajlovic, wonders if this will lead to an introduction of the same stability mechanisms and measures that have destabilised the world’s banking systems. “There’s increased monitoring of banking systems globally at the moment, of course,” he says, “but Serbia’s own measures – such as capital adequacy ratios – have been far more prudent than those in developed countries.”

TELEKOM SRBIJA DEAL WITH ALCATEL  LUCENT

tate-owned fixed line operator Telekom Srbija signed an agreement on network upgrade with Alcatel-Lucent, the French telecommunications equipment maker. Serbia has announced plans to break the monopoly of the state-owned fixed line operator, with the tender for the introduction of several other operators in the market expected to be announced by end of June. At end of February, Telekom CEO Branko Radujko said that Serbia has no intention of Telekom Srbija for the time being, due to poor market conditions, caused by the international economic crisis. Deutsche Telekom has expressed interest in acquiring at least a 15% stake in Telekom Serbia, after the Serbian government unveiled plans for Telekom’s listing on London and Belgrade bourses. Deutsche Telekom already owns 5% of Telekom Serbia as a partner in Greece’s OTE, which owns 20% of Telkom Srbija. Deutsche Telekom holds a 20% stake in Greece’s main telecom operator.

BG BEER IN THE US AND THE EU

elgrade Beer Industry (BIP) manages to achieve, despite the world crisis and the difficult market conditions, business and organizational success. BIP starts with the export of beer in the United States and the European Union, which is possible thanks to newly implemented technology, which has increased competitiveness of beer and production capacity for most demanding markets. At the same time, a new collective agreement with Trade Unions is signed. It provides modern procedures, the highest measures of security and stimulation for workers, which is higher than obliged. BIP, Belgrade beer industry was privatized in November 2007..Consortium which has the highest bid in the tender, consists of Alita, well-known Litvanian manufacturer of alcoholic beverages and United Nordic Beverages AB, which is Sweden company. EMportal

52 CorD 59 / April 2009

JUHOR EKSPORT WITHOUT BUYERS

IRANIANS INTERESTED

IN ‘PETROHEMIJA’

‘P

etrohemija’, one of domestic largest exporters might get soon a long time wanted strategic partner. Iran expressed great interest in business cooperation with that factory as was confirmed by members of our delegation that visited Teheran on the first week of March. Such strategic partnership, a privatization model increasingly preferred by our country, would mean for ‘Petrohemija’ end of crisis and keeping of 3,000 jobs. Milos Bugarin, president of Serbian Chamber of Commerce who led Serbian economic delegation points out big interest expressed in Teheran by Iranian Ministry of naphtha for strategic partnership with ‘Petrohemija’ ‘having in mind the energy position of Serbia in Europe’. Serbian Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic and an Iranian delegation, headed by Iranian Foreign Minister Manouchehr Mottaki, stated week after in Belgrade, that the two countries have good and stable bilateral relations. Serbia has recorded a surplus in trade with Iran. Minister Dinkic stressed that Serbia is planning to sign a free-trade agreement with Iran. ‘Blic’

NEW MANAGEMENT

BOARD OF HELLENIC BA

asilios Ntertillis, General Manager of Globe Metals, is officially the new President of Hellenic Business Association (HBA)Management Board in Serbia. HBA represents 20 Greek companies which operate in Serbia, currently employing 20,000 people. Their investments equates to about half of the total Greek investment in the country, which stands at nearly a billion euros. HBA is an association of Greek companies operating in Serbia and Montenegro. It is not a lobby group, but is targeted towards bringing the markets of Greece, Serbia and Montenegro closer and to give Greek companies the chance to operate in a safe investment environment. Source: EMportal

he managements of Juhor and Delat company, who owns Juhor, are going to decide on the next steps reagarding the company’s future. Nobody delivered a bid for the purchase of Juhor Eksport, Jagodina-based company for production of meat products. This was the second attempt of selling Juhor that failed. Four objects with the surface area of 4,367 square meters and a construction site with the surface area of 89.88 ares on an attractive location were put up for sale. The reasons of a lack of buyers’ interest are the global crisis effects and a load of work on clearing the site, since certain buildings are more than hundred years old. The managements of Juhor and Delat company, who owns Juhor, are going to decide on the next steps reagarding the company’s future. Source: limun.hr

AUTHORITIES SILENT OVER ‘NIS’ BALANCE SHEET

‘N

IS’ forwarded to the Ministry of finance a positive balance sheet for 2008 at the end of February. Then the company requested some time more for ‘certain changes’ and submitted a new balance sheet which shows a loss of 3 billion Dinars mainly due to bad business results in the third and fourth quarter due to world economic crisis. Other mentioned reasons are drop of prices of naphtha derivatives and devaluation of Dinar in relation to EUR. The authorities are still waited for to explain the two balance sheets. There are speculations that the Russians are angry because the profit from previous years, 2006 and 2007 was used for outstanding debts. Experts believe that the new owner has calculated in the loss debts of Serbian public enterprises towards ‘NIS’. Also Russians found a debt of USD 1.14 billions although the inter-state agreement stipulates no taking of credits by ‘NIS’ after 2007.

ROBOTS ASSEMBLY 30 ‘PUNTO’ CARS

t a modern assembly line at ‘Zastava Car’ factory, the first 30 units of ‘Punto 188’

were assembled at 13. of March. That job was actually done by robots. These are trial series of the new model that shall be manufactured in Kragujevac for the Italian company. About 1,200 workers have been engaged and the first completed unit shall leave assembly line. It takes 52 hours for production of one car. The factory management believes this to mark a beginning of a new era in Serbian car industry. CorD 59 / April 2009 53

FACES & PLACES |

Agriculture ministers of India and Serbia, Saša Dragin and T’Nanda Kumar, signed an agreement on the countries’ cooperation in the ﬁeld of food production on 3rd March.

A mini-football tournament was organised on 22nd March to mark Francophonia Day in Belgrade. Pictured here is the team of the Embassy of Canada

The Hellenic Business Association (HBA) in Belgrade organised a festive dinner party at Grand Casino Belgrade on 12th March to mark the cutting of Greek Christmas cake. HBA President Ntertilis is pictured cutting the cake.

Serbian Defence Minister, Dragan Šutanovac, and Ambassador of the Algerian People’s Democratic Republic, H.E. Abdelkader Mesdoua, visit the Military Technical Institute (VTI) on 3rd March. Some 20 Algerian ofﬁcers are studying at the VTI.a 54 CorD 59 / April 2009

The Republic of Ghana has been independent since 6th March 1957. On the occasion of that anniversary the Ghanaian Embassy in Belgrade organised a reception. Pictured here are Mr. and Mrs. Wordsworth, with MS. Doris Brescia, Minister-Counsellor at the Ghanaian Embassy, and Ms. Constance Ampem-Danquah, Ghanaian Third Secretary.

Serbian Deputy PM, Božidar Đelić, and FISU President, George Kilijan, pictured at Belgrade’s Hotel Hyatt on 18th March for an ofﬁcial reception in honor of the heads of delegations of countries to participate in the World Student Games in Belgrade and top managers of International Student sporting federations. The crowded Dragon café in Belgrade hosted a promotion of the photo monograph “Spomenar” on Saturday 7th March. The occasion marked the 18th anniversary of the Belgrade anti-war demonstrations of 9th March 1991. The event was attended by SPO President, Vuk Draskovic, Serbian President, Boris Tadić, and MPs Srđan Milivojević and Vesna Pesić.

The Republic of Hungary opened an honorary consulate in Niš on 19th March. Pictured are Ambassador of Hungary, H.E. Jeno Faler, Consul Miloje Branković, and Mayor of Niš, Miloš Simonović.

The Belgium Ambassadorial residence in Belgrade, under the patronage of Belgian Ambassador, H.E. Denise de Hauwere, hosted a presentation of the future factory for the processing of animal waste, which is being built in the vicinity of Šabac. Pictured: Ecology Minister, Oliver Dulić, and the Serbian partner in the business, Tamara Drecun

In early March, the sunny peaks congress centre on Kopaonik Mountain hosted the Business Forum, organised by the Alliance of Serbian economists to address the impact of the global economic crisis on the economy of Serbia. Pictured are Serbian President Boris Tadić, Prime Minister Mirko Cvetkovic and Economy Minister Mlađan Dinkić.

CorD 59 / April 2009 55

FACES & PLACES |

A working breakfast of daily newspaper Borba at the Šumatovac restaurant. Pictured: Ivan Cvejić, Borba Director; Dragan Janjić, deputy editor of Politika, member of parliament Žarko Korač, and editor-in-chief of Politika, Dragan Bujošević.

As part of the celebrations of Francophonia in Serbia during March 2009, Ambassador of Canada in Belgrade, H.E. John Morrison, opened a collective exhibition “Langue de bois” by the Workshop Presse Papier from Trois-Rivières in the Graphical collective Gallery on 9th March

Head of Mission of the U.S. Agency for International Development (USAID), Michael Harvey, presents 35 certiﬁcates for experts of local economic development from 11 Serbian cities and municipalities in the Assembly of Belgrade on 18th March.

Ambassadors of Germany and the United States in Belgrade, Wolfram Maas and Cameron Munter, pictured at the concert of the Ćompi Quartet at the Hall of the Belgrade Philharmonic Orchestra, which was organised by the U.S. Embassy in Serbia on 14th March.

The French Embassy in Belgrade organised a reception in honor of the woman of Serbia on 9th March. Pictured are H.E. French Ambassador Jean-François Terral, Mrs. Marie-Pierre Terral, actress Katarina Radivojević and singer Ana Stanić

56 CorD 59 / April 2009

Banca Intesa and humanitarian organisation Naša Srbija (Our Serbia) signed a contract on cooperation which conﬁrms Bank Intesa as the ofﬁcial host of the ninth Schools Friendship “Our Serbia” event, which will be organised in the period from 15th July to 6th August 2009 on the River Tara.

Karen Lamont gives a lecture as part of an exhibition of the works of the American artist in the U.S. Ambassadorial residence on 13th March. Pictured is Karen Lamont alongside U.S. Ambassador, H.E. Cameron Munter.

Tunisia was the country partner at this year’s Tourism Fair in Belgrade. Pictured hosting the Tunisian ‘show of culture’ is the country’s ambassador to Serbia, H.E. Houria Ferchichi.

Serbian Minister of Culture, Nebojša Bradić, pictured at the opening of an exhibition in the Museum of Yugoslav History entitled “The effect of Tito, charisma as a political card”.

President of the European Football Association (UEFA), Michel Platini, is received during a visit to Belgrade by Serbian Deputy PM, Ivica Dačić. Platini also met president of the Serbian Football Association (FSS), Tomislav Karadzic. CorD 59 / April 2009 57

SPORT

HUGE RACE OF 40,000 RUNNERS BELGRADE BANCA INTESA MARATHON

The Belgrade marathon is the biggest mass sporting event in Serbia

he Belgrade Marathon gives the Serbian capital a chance to showcase its beauty and treasures to the world each year. And this year is no exception, with the traditional Belgrade Banca Intesa Marathon to be held on 18th April for the 22nd time. The Belgrade Marathon is far and away the biggest mass sporting event in Serbia and, thanks to a decision of the City Assembly, it has also been proclaimed as an event of special significance to the city. Continuity is also set to be maintained with the event’s main sponsor, as Dejan Nikolić, Director of the Belgrade marathon, and Draginja Đurić, president of the executive board of Banca Intesa, already signed a contract that confirms the continuation of successful co-operation between the marathon and makes Intesa the main sponsor of one of Serbia’s most significant sporting events for the fourth consecutive year. This year around 40,000 competitors are expected to take part in the main race, while Marathon director

58 CorD 59 / April 2009

Nikolić has announced that the five-kilometre Fun Run will also be organised again this year to coincide with the full marathon. Adding to the event, there will also be an official half-marathon event and seven days prior to the main event the traditional Belgrade Kids Marathon will be held at Kalamegdan Zoo. This year Belgrade will also be the host of World Military Marathon Championship, the biggest military sporting show to ever be held in Serbia. “At Banca Intesa we know how important it is to be on the world map, bearing in mind that we are part of one of the world’s biggest bank groups. This year too the marathon promotes solidarity, endurance, persistence and fairplay, which we support and nourish through business and our broader social activities. I believe that these values will be of priceless significance in this year of challenges that is ahead of all of us”, said Intesa president Đurić. Next year will mark the 2,500th anniversary of the first marathon that was run by Phidippides, who unfortunately didn’t survive.

BECOME A MASTER OF CHARITY! For the fifth consecutive year, CorD Magazine is organising the CorD Charity Masters – a race in which it is more important to be charitable than to be first. The Charity Masters race is to take place in the context of the upcoming 22nd Belgrade Banca Intesa Marathon, to be staged on Saturday 18th April 2009. This year we are inviting you to run (or stroll if you so desire) at least five kilometres to raise money for charity. Registering to participate in the CorD Charity Masters is simple and all money raised by racers will be donated to the organisation of your choice. HOW TO RAISE FUNDS Each participant should secure sponsorship of at least 400 dinars per each kilometre. HOW TO MAKE A PAYMENT Donations should be either paid into CorD’s special account or directly into the accounts of the organisations to receive donations. WHERE TO DONATE Race participants have full independence in choosing any humanitarian organization they wish to run for (ORCA, School without Violence, etc.). Every CorD Charity Master will receive a certificate and commemorative t-shirt as proof of their participation. The winners (most funds raised) will receive symbolic commemorative prizes. The results of the race and details of funds raised will be published in CorD’s May issue, on www.expat.rs, www.cordmagazine.com, while the formal handover of donations by the teams will feature in the June issue of CorD. APPLY TODAY AND MAKE A DIFFERENCE! CorD Team, Kneginje Zorke 11b, Belgrade tel. 011 308 99 77, fax. 011 308 99 88 e-mail charitymasters@cordmagazine.com

CORD CHARITY MASTERS – FAQS How can I apply to compete in the CorD Charity Masters race? Send an email or fax with a completed registration form (see attachment) to e-mail - charitymasters@cordmagazine.com; fax (+381 11) 3089988. The closing date for registration in the CorD Charity Masters is Monday 13th April. Who will check how many kilometres have been completed by the runners? This is charity race and each runner is expected to calculate the length of their own race. In addition, special referees will be tasked with assisting for half and full marathon runners. How does one either become a sponsor or obtain a sponsor? Sponsors can be any individual, company, organisation, association or mission which accepts to pay the runner. Sponsors could also include work colleagues willing to collect funds for your charity of choice. You can obtain sponsorship within your company or from family members, friends...whoever wants to join this charity race. How many participants will be accepted for the CorD Charity Masters? In agreement with the organisers of the 22nd Belgrade Banca Intesa Marathon, all participants who apply for the CorD Charity Masters will be accepted. Is there a minimum sponsorship level per kilometre? The amount of money individuals give for sponsoring charity efforts is not always the most important factor. Accordingly, there is no set minimum. What percentage of the money raised will go to charity? 100% of the money raised is to go to charity. Will CorD Charity Masters run alongside all other participants of the Belgrade Marathon? Yes. Members of the CorD Charity Masters team will start the race at the same time as all other runners competing in the 22nd Belgrade Banca Intesa Marathon.

42ND WORLD MILITARY MARATHON CHAMPIONSHIP MARATHON

ithin the organisation of this year marathon the 42nd World Military Marathon Championship (International Military Sports Council CISM – 140 countries members ) will be held and the host will be the Ministry of Defence together with the Headquarters of Serbian Army and Military Academy. CorD 59 / April 2009 59

ARTS

LAND OF E BITEF THEATRE’S 20TH BIRTHDAY

The 20th anniversary of BITEF Theatre was marked by a premiere performance of a Nikita Milivojević play called ‘Winter Gardens’ (“Zimske bašte”) By Jelena JOVANOVIĆ Photo Slobodan JOTIĆ he theatre located in the Evangelical Church that never was near Bajloni Market was founded by theatre festival BITEF in 1989, twenty years after the festival itself began. The Church, built during the Second World War, was never used as a place of worship. It was never completed, nor consecrated, so the city authorities decided to use this space as a theatre. BITEF theatre stages plays every October, but also puts

60 CorD 59 / April 2009

together its own repertoire, while continuously cultivating alternative theatre and diverse theatre expression. “The art starts where certain mysterious and unknown forces collide within a man and time. I am happy that Belgrade will become a place where artists and audiences are going to try to reach within the secret of human existence”, said Mira Trailović, the force behind the Belgrade Festival and its theatre, speaking at the opening of BITEF on 3rd March 1989. Threatre Director Nikita Milivojević has been BITEF’s art director since 2005. He says that a good alternative theatre

MIGRANTS NEW YORK - BELGRADE

ast year Nikita Milivojević had his debut as a film director. The novel “New York – Belgrade”, written by Dušan Miklja, was the backbone for the screenplay – a story about three young girls who leave life in Belgrade for New York. The film was mostly shot in New York and Milivojević says that, together with Miklja, he wrote a scenario that deals with the same issues as his last play. “The shooting was very exciting. I could see all the advantages of film over theatre. Others probably found it interesting to see that I was working like I was directing a theatre play (rehearsals with actors, mise-en-scène). In movies you can make the weakest of actors into good ones. We filmed a short, Belgrade part of the film a few days ago. The premiere is scheduled for May.”

is beneficial for the complete theatre environment. “We still prefer institutions and I am in favour of alternative theatre in terms of it being bold enough to try, to take risks. BITEF is such place for me – creative, different, fostering different opinions, challenging, etc. It’s a good thing that somebody remembered to create something like this.” Milivojević continues: “BITEF has gone through different phases during its development. If we observe it as an idea, then we can consider it a vision. You have to have a place where you are trying to establish a different way of thinking. We are opening another Bitef within BITEF. This is a new off scene that is going to be opened in May.” The 20th anniversary of BITEF Theatre was marked by a premiere performance of a Nikita Milivojević play called ‘Winter Gardens’ (“Zimske bašte”) on 3rd March. The play, which is co-produced by BITEF Theatre, the Venice Biennale and Berlin’s Festspiele, had its world premiere a week earlier – on 25th and 26th February at the Venice Biennale. “The idea behind BITEF is that the theatre takes part in various co-productions with different theatres and festivals. This is why BITEF exists and differs from other theatres in this city. My plan was to bring an international character to the theatre, while applying some new strategies and making new contacts. We should use this festival for such strategies. BITEF has excellent contacts all over the world that haven’t been used enough. The BITEF theatre has always been in the shadow of the Festival, instead of the Festival being a starting point for many co-productions, contacts and

“For me, the fact that people are still leaving the country is a really disturbing sign” guest appearances. On the other hand, I heavily drew on my own experience: in the last ten or so years I’ve worked quite a lot in the theatres around the world and seen that it isn’t that complicated to put together a co-production, to do a lit-

BITEF Theatre in Evangelical Church After the Second World War, the Church was never used as a place of worship CorD 59 / April 2009 61

ART

PREMIERE IN VENICE

“I

consider this a small personal victory – the fact that I presented a brand new generation of actors. They know nothing about our theatre (or almost nothing). They know about us what they’ve read and heard in the media, which was laden with prejudice. We have achieved a great success. The Italian newspapers were full of praise for the play. Compliments were coming from left and right, while the critics said that this was a first class event in the theatre section of the Biennale.”

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tle bit of theatre networking. That’s how I came upon the idea to make a workshop last autumn at the BITEF theatre with guests coming from all over the world. There were 15 of us in the workshop – my friends from a Stockholm theatre, from Italy, five actors from the Bitef Theatre and associates from Greece and England, a composer and a choreographer. The workshop was called “Nurtured Fruit”. We played to packed audiences two to three nights and then we decided to continue to work together, to put up a whole play. That’s how it all got started.” BITEF theatre became a part of the ENPARTSA (the European Network of Performing Arts) via this project. ENPARTSA is a five-year-programme that supports new artistic creations in the field of performing arts that can be seen at the Le Biennale di Venezia. Milivojević took bits and pieces from the BITEF workshop, put it all together and presented the further development of the play. The premiere at the Biennale followed soon after. The play “Winter Gardens” is an emotional, inventively directed, fragmented collection of personal stories about young people that left Serbia in the 1990s. The text, written by Milivojević, was based on emails that he had been receiving from his friends scattered all over the world. “This correspondence spans over 10 years. For a moment, you are surprised by the fact that you haven’t seen these people for ten years and, yet, you are under the impression that you’ve been in touch with them all that time. Some of them graduated, some gave birth, some... I don’t know what… some died. And you are constantly under the impression that they are somewhere around you. This process of collecting materials is much longer.” Milivojević also says that he came to the conclusion that emails can be turned into a theatre play in New York last year, when he was making his first feature film. “I was so far away from Belgrade and my family and I had all sorts of communication venues available. For the first time ever I realised just how incredible this medium is. By using a web camera at your home you can feel that you are with your family; it feels like you are almost having lunch with them. At the same time, there is a distance and the feeling that this contact is just one big pretense. Once you realise that this is just an illusion, the loneliness becomes even more pronounced. During this period I received a couple of emails that touched me deeply. Sometimes you just feel that people are actually very very lonely and that they have a need to tell you certain things that are quite intimate. Sometimes I came across very interesting deliberations – funny, ironic, very serious. It is very interesting to hear why they left in the first place, once they see the situation here and all changes that are happening around us on a daily basis.” The up-and-coming young actors starring in “Winter Gardens” are Vladimir Aleksić, Milan Prljeta, Danijela Ugrenović, Jelena Angelovski, Mariana Aranđelović, and Predrag Damjanović. During his long career as a direc-

tor, Nikita Milivojević has worked in Sweden, Slovenia, Macedonia, Turkey, the U.S. and Greece. “I was very lucky to have worked with a group of actors that I did workshops with before. This is a way of thinking – we were not approaching the text simply as words, but we came to improvise. The workshop entails that you keep on assigning specific tasks to actors, they ought to improvise and look for material that comes from the subconsciousness. These improvisations were a source for my material and after couple of days I came up with a scene which I processed in my own way. An then we moved on. This was a process – a very creative, exciting and unusual process. Neither I nor the actors were able to clearly see what direction we were heading in. It was really exciting that we didn’t exactly know that, but we were just foreseeing where it could take us. Every single actor brought something of their own. That was the most interesting part for me, for actors to bring a piece of themselves and to link that to the stories that I was familiar with. When a character called Vlada talks about his experiences, it seemed like I was listening to myself. I lived on two tracks for almost 15 years.” There is a harrowing piece of information given at the end of the play – during the wars in the 1990s, close to 700,000 young, educated people left Serbia. Today, Serbia is among the top five countries when it comes to the number of elderly citizens, with the mortaility rate higher than the birth rate. It is also the number one country in Europe when it comes to the number of emigrants. “When you lose 10% of your population, you need to see this as a national tragedy and not pretend that it didn’t happened. For me, the fact that people are still leaving the country is a really disturbing sign. In the 1990s, everybody knew why so many people were leaving. But after the 1990s, most people left in 2004. This is a warning sign. The wave of departures continued in 2004. In our play, I speak of something being essentially wrong with a country that everybody’s leaving. There is something wrong with that country. And this is continuing.” Milivojević says that in the next phase his play Winter Gardens is going to be modified and developed into something completely different. There is a plan for a little tour in the region, as well as a guest appearance in Berlin. Before this last premiere, in its twentieth season, BITEF Theatre came up with several other plays like The Vojcek – Hinkeman Case, directed by Ana Tomović, and The Lady of the Sea, directed by Stevan Bodroža. “The Vojcek – Hinkeman Case is an unusual play, very challenging. Instead of an ordinary press conference, we had a sort of roundtable discussion about everything that was touched upon in the play. This is tragic story of disabled war veterans that are forgotten by society. Before that we had The Lady of the Sea, which was actually Ibsen’s work that we never brought to the stage.” In May this year, BITEF Theatre plans to open a new off scene. This small scene will house a different, bolder,

“The art starts where certain mysterious and unknown forces collide within a man and time”, Mira Trailović new theatre expression. It will be opened by a play directed by Bojan Đorđev, which is a fusion of two texts by authors Ivana Sajko and Alfrida Jeling. The play is about what Jackie Kennedy and Medea have in common. “This is a provocative, almost philosophical contemplation. It is the beginning of something and we are yet to see what is it going to develop into”. Milivojević also announces a guest appearance by director Constanza Macras. “The idea is that each year we ‘steal’ somebody from the festival, so to speak, and invite him to come to work with us. Constanza Marcas had an excellent play in BITEF called ‘Big in Bombay’. We called her to come and work for us. The premiere of her play will take place in the second part of the season.” At the end of this conversation about the jubilee and directions that the BITEF theatre takes, Milivojević says: “This season has been very much an international one and I think that this is a new image of BITEF.”

BITEF Theatre Director Nikita Milivojević “You have to have a place where you are trying to establish a different way of thinking” CorD 59 / April 2009 63

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GOOD TIMES END IN DUBAI March 16 By Simeon Kerr Dubai’s Hot 100 party last month was a reminder of the city’s high-rolling times before the credit crunch. The annual celebration, laid on by a magazine profiling the United Arab Emirates’ smart set, drew a crowd of boldfaced names: Thaksin Shinawatra, former Thai prime minister, mingled with developer Sulaiman al-Fahim, who brokered the sale of Manchester City football club to an Abu Dhabi sheikh. But among the employees of ITP, the magazine’s publisher, the free drinks were going down with more than the usual gusto. That week ITP cut its staff by about 10 per cent. “People knew the sackings were coming, and sure enough it was rough,” says one of those axed. For thousands of expatriates lured to Dubai by the promise of yearround sunshine and a tax-free lifestyle, the party is over. Corporate restructurings have arrived hard on the heels of steep falls in property prices and plummeting consumer confidence; El Dorado is fading back into desert. As the cutbacks spread from finance and real estate to sectors such as tourism, media and retail, many are packing up and heading home.

Dubai’s roads and restaurants are noticeably quieter and onceexorbitant rents are becoming more reasonable by the month.

Dubai’s roads and restaurants are noticeably quieter and once-exorbitant rents are becoming more reasonable by the month. The government claims visa issuance is holding up and denies reports of mass cancellations. But a YouGov poll in the UAE found more than half of respondents knew a family member or close friend who had been made redundant, a figure that had risen sharply from the end of 2008. At Dubai’s highest-profile investment company, Dubai International Capital, for example, staff are in flux as its parent company, owned by the ruler Sheikh Mohammed bin Rashid Al Maktoum, merges backoffice functions with another of his investment vehicles. “It’s a nightmare,” says one. “We go into the office unsure if we will have a job at the end of the day.” The end of this month is expected to accelerate the departures among two of the largest white-collar expat communities, Britons and Indians, 64 CorD 59 / April 2009

as it signals the end of the Indian school year and British schools’ spring term. Many employers have aided sacked staff, especially those with children, by extending visas so they do not have to leave quickly. Britons have also been wary of tax liabilities caused by returning before April 1, the new UK tax year. In a labour market that remains underdeveloped by western standards, lawyers and recruiters are preparing for a rising volume of complaints as foreigners fight for severance pay while the government of the UAE reiterates its ban on private-sector employers making locals redundant. The job losses already announced and others still to come are seen as a big test of employment laws in a territory that has never known widespread hardship. In spite of assurances that as many as 1,000 new visas are being issued a day, the government is reviewing rules that force people to leave the country only 30 days after losing a residence visa and bans on some workers moving to competitors in the event of them losing their jobs.

AS MARKETS FELL, PUNDITS CAME DOWN ON OBAMA President Gets Blame After Just 50 Days By Howard Kurtz As the Dow embarked on a long slide after Inauguration Day -- a nearly 2,000-point slide, to be precise -- the drumbeat seemed to grow louder. “There’s no confidence in Obama’s plan,” said Fox’s Sean Hannity. “The markets respond to data. They have no confidence.” “The stock market is also demonstrating a lack of confidence in the president’s big government agenda,” said CNN’s Lou Dobbs. And it’s not just those on the right. CNBC’s Jim Cramer -- an unabashed Democrat -complained that President Obama’s “radical agenda” was causing the “greatest wealth destruction I’ve seen by a president.” But is it fair to hurl such charges at a president who’s been in office for less than eight weeks? Isn’t Obama trying to dig out from the huge economic mess left by his predecessor? The chatter reflects a fast-forward culture that demands snap judgments. The cable news channels, not content to wait for the traditional 100-day benchmark -- itself an artificial media construct -- were grading Obama last week on his 50-day performance. “Fixing the economy is not a television-friendly story,” says Fortune Managing Editor Andy Serwer. “A plane crash in the Hudson where everyone survives is a television-friendly story. This is a slog.” The debate is also a barometer of the pain that millions of Americans are feeling as their nest eggs and retirement funds shrink dramatically. The Dow opened at 9625 on the day Obama was elected, at 7949 on the day he took office, and closed at 6547 last Monday. Former Business Week editor Steve Shepard dismisses the notion of attributing sharp declines in the Dow to a new president. “To pin the blame on him is just fundamentally unfair and wrong,” says Shepard, now dean of the City University of New York’s journalism school. “It’s the party line of the Wall Street Journal editorial page.” While there is “a germ of truth” in the criticism -- Shepard says that Treasury Secretary Tim Geithner unveiled a “half-baked” bank bailout plan -- “the decline of the market since Obama took office is largely related to the deepening of the economic disaster.”

RUSSIA-AMERICA: RESETTING RELATIONS WITH HILLARY CLINTON By: Andrei Fedyashin U.S. Secretary of State Hillary Clinton and her Russian counterpart Sergei Lavrov had a dinner in Geneva and then parted in a good mood. This was

Mr. Lavrov is a much more experienced diplomat than Condoleezza Rice or her successor, Mrs. Clinton.

a recent interview with The New York Times, Mr. Obama admitted that the United States is losing the war there. Normalization of relations with Russia could become one of many steps that could aid the situation. First, it is possible to transport cargoes to Afghanistan via Russian territory. For the time being, only civilian cargoes are being sent through Russia. Second, Moscow could help start talks with the Taliban. Experts have been talking about such talks for a long time, but the old administration did not even want to hear about them. Before talks with the Taliban, it would make sense to directly contact Iran, without which a settlement in Afghanistan is unlikely. Resetting relations would be a timely measure. Mr. Lavrov is a much more experienced diplomat than Condoleezza Rice or her successor Ms. Clinton. His reputation in the world is very high. After the meeting with Ms. Clinton, Mr. Lavrov said, in a rather diplomatic manner, that Russia welcomes the U.S. intention to “reset” relations but now would like to see what America means by this.

PAKISTAN DECLARES: ‘WE ARE AT WAR’ the first step in the serious preparations for the first meeting between President Dmitry Medvedev and his U.S. counterpart, Barack Obama, which will take place during the G20 summit in London on April 2. If every issue in Russian-U.S. relations were reduced to funny linguistic gaffes like “peregruzka” (overload) and “perezagruzka” (reset) on a souvenir button that Ms. Clinton presented to Mr. Lavrov, foreign ministers would have too easy of a job. There is the temptation to get consumed by euphoria because after the previous administration every meeting with the new secretary of state almost seems like a meeting between soul mates. However, a closer analysis of the U.S. media’s response to the Geneva meeting in the last two or three days shows that it is the legacy of the old administration that is pushing the new one to “reset.” It is Washington rather than Moscow that needs to change. Washington was unnaturally arrogant toward Moscow. It neither kept its promises, nor changed them beyond recognition and presented them as its concessions to Moscow. The puppet orange and other color regimes, set up with direct U.S. participation, brought their countries on the verge of almost complete economic collapse. And yet, Washington continued to support these “democratic” regimes, as if nothing happened. The situation in Afghanistan is extremely bad for Washington. In

By Kim Sengupta and Omar Waraich Pakistan declared that it was in a “state of war” after masked gunmen ambushed the Sri Lankan cricket team as they were on their way to play

This was one of the worst security failures in Pakistan.

a Test match, injuring six players and their English assistant coach as well as killing seven Pakistanis. The spectacular military-style raid in Lahore bore marked similarities to the assault in Mumbai last year, which left 172 people dead. Pakistani officials suggested the Islamist group, Lashkar-e-Taiba, responsible for the carnage in the Indian city, also carried out the attack in Lahore. What happened is certain to stop sports

CorD 59 / April 2009 65

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teams from abroad visiting Pakistan for the foreseeable future and deals a grave blow to the country’s plans to host the World Cup in 2011. It also highlights how security is disintegrating, with the civilian government seemingly unable to cope with the tide of violence unleashed by militants. Six policemen and the driver of a bus carrying the match umpires were killed during a firefight lasting more than 15 minutes. Players and match officials, some of them bleeding from bullet and shrapnel wounds, huddled on the floor of their vehicles. Pakistan’s President, Asif Ali Zardari, said he “strongly condemned” the attack and pledged that those responsible would be caught. Rehman Malik, the Interior Minister, said the country was in a “state of war... Be patient, we will flush all these terrorists out of the country”. Imran Khan, the Pakistani politician and former captain of the country’s cricket team, said the Sri Lankan team had been given inadequate protection. “This was one of the worst security failures in Pakistan,” he said.

GERMAN INTELLIGENCE WARNS OF HIGH TERROR THREAT IN ELECTION YEAR Germany faces an increased risk of Islamist terror attacks ahead of national elections in September, security chiefs warned Saturday. The head of the domestic intelligence agency, Heinz Fromm, said the probability of a terror attack is especially high, in an interview with the daily Hamburger Abendblatt. In Germany’s general election set for September 27, the country’s troop presence in Afghanistan, opposed by the majority of German citizens, is likely to be high on the agenda. German Chancellor Angela Merkel, presiding over a coalition government between her conservative CDU party and the SPD on the left, has been instrumental in committing troops to the NATO mission in Afghanistan. However the country’s foreign minister, Frank-Walter Steinmeier, who is

“They know the German infrastructure, are socially integrated and hardly stand out because of their appearance.”

the SPD’s election candidate, is critical of further troop deployment. President of the federal police agency (BKA) Joerg Ziercke warned that terrorists could attempt to influence the election outcome, similar to the Madrid train bomb-attacks ahead of the Spanish elections in 2004.”We are seeing clear parallels to the situation in Spain,” Zierke said in an interview with weekly news magazine Focus. BKA-chief Zierke said that radical converts to Islam of German origin were especially dangerous. “They know the German infrastructure, are socially integrated and hardly stand out because of their appearance.” 66 CorD 59 / April 2009

In the past weeks at least two videos have surfaced in which threats have been issued in German against countries with a military presence in Afghanistan. One video showed six masked men speaking in several languages, one of which was German, according to the German television channel ARD. “This year, we’ve got a few surprise parcels for the occupying powers, since the allies of the occupying powers must always expect our attacks,” the German speaker said.

WRONG TRANSLITERATION TURNS PUNISHABLE IN BULGARIA The Minister of State Administration, Nikolay Vasilev, and designated employees have the right to conduct checkups and issue fines for the use of wrong transliteration. The Transliteration Act of official rules of writing Bulgarian names with the Latin alphabet became effective Sunday. Municipalities are mandated by the Act to change all signs that don’t comply with the rules and would face fines between BGN 500 and 1,200 if they fail to do so. Businesses and non-governmental organThose in doubt of the rules can check the official Ministry of State Administration site “Razbiraema Bulgaria” (Understandable Bulgaria).

isations wishing to include in their names geographical locations or names of historic personalities would need to obey the transliteration rules as well. Fines are also set at BGN 500 to 1,200. The companies that already have such names and have been writing them with Latin letters will be exempt from the rules. The Act provides the strictest measures for publishers of manuals, school books, dictionaries, encyclopedia and reference books. Fines here range between BGN 2,000 and 5,000. Distributors of advertisements and books with wrongly transliterated names would be fined BGN 400 for individuals and BGN 800 for businesses. The rules apply to Internet content as well. wThe Minister of State Administration, Nikolay Vasilev, and designated employees have the right to conduct checkups and issue fines. Fines up to BGN 100 cannot be appealed. Those in doubt of the rules can check the official Ministry of State Administration site “Razbiraema Bulgaria” (Understandable Bulgaria).

U.K. AND GERMANY CALL FOR TOUGHER REGULATION OF BANKS March 19, 2009 By Alistair MacDonald And Marcus Walker Policy makers in the U.K. and Germany set out plans to place a much heavier regulatory burden on banks and other financial institutions in a sign of how rules throughout Europe are likely to change in the wake of the financial crisis. In the U.K., Lord Adair Turner, chairman of the country’s financial watchdog, laid out recommendations for what he called a “profound” overhaul of banking supervision that, if adopted, will mark the end of more than a decade of light regulation in one of the world’s financial centers. At

the same time, Germany’s finance ministry said it had drafted a bill that would give the country’s financial supervisor, Bafin, much greater power to control banks in Europe’s largest economy. Europe Cracks Down The changes in the U.K., said Lord Turner, will “inevitably impose some costs,” but “the economy will be served better as a result.” If the new rules go into effect, banks in both countries will need to set aside more capital during boom times to help them survive busts, while dealing with a more interventionist regulator probing everything from their books to the capability of their staffs. In the U.K., the Financial Services Authority also wants to extend supervision to all institutions that act like banks, including large hedge funds. For investors, the changes will mean less profitable but safer banks, the FSA said.

The changes in the U.K.will inevitably impose some costs,” but“ the economy will be served better as a result.

The moves come amid regulatory changes world-wide, with countries from the U.S. to Switzerland trying to retool supervisors found wanting during the credit crisis. At a meeting in London on April 2, leaders of the Group of 20 leading economies hope to coordinate what has so far been a patchwork of national plans into some form of international institutions and rules that will address the global nature of modernday finance. In the U.K., the FSA’s proposals would represent a big shift from the lighttouch style that helped to build London into Europe’s premier financial hub but left Britain’s banks exposed to the credit crisis. It also represents an about-face for the Labour government of Prime Minister Gordon Brown, who as Treasury chief in 1997 pioneered his party’s friendly approach to London’s financial center, known as the City. That policy has made the financial crisis particularly painful for the U.K., where one in five jobs is linked to the financial-services sector. On 18 March, the government reported that unemployment claims rose by 138,400 in February -- the largest increase since records began in 1971.

a much larger problem” he is confronting in trying to fix a broken financial system, revive an economy in deep recession and push through a $3.6 trillion budget.

“So we are going to do everything we can to deal with these specific bonuses“

“And that is the system and culture that made them possible -- a culture where people made enormous sums for taking irresponsible risks that have now put the whole economy at risk,” Obama said to cheers. “So we are going to do everything we can to deal with these specific bonuses,” he continued in 20-minute opening remarks striking for the stridency of their assault on the financial industry. “But what’s just as important is that we make sure we don’t find ourselves in this situation again, where taxpayers are on the hook for losses in bad times and all the wealth generated in good times goes to those at the very top.” The president’s trip here represents the beginning of a national campaign for his budget, which he has said demands new spending to change the health-care system, energy policy and public education that may not yield result for years.

OBAMA HOPES TO RETURN ‘BALANCE’ TO ECONOMY March 18, 2009 By Scott Wilson Striking a sharp populist tone, President Obama used a town hall meeting here Wednesday to argue that he is “trying to bring balance back to our economy” after years when only the wealthiest Americans benefited from government policy and lack of regulation. The president, at the first stop of a two-day visit to Southern California, said he took responsibility for the AIG scandal even though the contracts paying out the $165 million in bonuses were written before he became president. But he told an exuberant audience of teachers, community bankers, construction workers and others that the issue was only “a symptom of CorD 59 / April 2009 67

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RECONSTRUCTION OF THE DANUBE RIVERBANKS

aniel Libeskind, one of the world’s most significant contemporary architects, has presented his vision of the reconstruction of the Danube riverbanks. As leader of the Port of Belgrade project, Mr. Libeskind has incorporated his vision of the future appearance of the riverbanks of Belgrade into the existing structure of the city, as well as offering some new solutions, such as connecting and placing the heart of the old city in the context of new city planning implementations. Libeskind presented his vision whilst participating in a two-day working conference “Belgrade on the rivers”, which was held in the Serbian capital in early March. According to Libeskind, an expert who achieved global renown for his project to construct the memorial complex of the World Trade Centre in New York, the rhythm of Belgrade and its rivers in particular - is similar to that of other large European cities, but with space for new architectural and spatial solutions, such as the future reconstruction of the Port of Belgrade and relocation of the vital part of the capital to its rivers. “Belgrade has inspired me with its unused potential, the fact that its riverbanks can be turned into space which combines a modern office and residential complex and a green oasis with places which residents will really enjoy. The Serbian capital is exceptionally positioned, on two rivers, it has the rhythm of a large city, but traffic jams are frequent, as - so I hear - is pollution,. This has resulted in the rivers being completely unused. That needs to change. Thanks to initiatives of private and public enterprises, the necessary investments, support of local authorities and, above all, ideas and visions, the implementation of this project can result in the harmonisation of all elements and the establishment of an urban, lively city zone enjoyed by everyone, both residents and visitors,” said Libeskind, addressing the many guests at the Faculty of Architecture.

PORTRAIT OF NIKOLA TESLA FOUND After 85 years in ‘hiding’, the ‘Blue Portrait’ of Nikola Tesla (1916) was presented at an exhibition in Germany at the end of March. The sitting for the blue portrait was the only occasion that the renowned Serbian scientist ever sat still in a studio to have his portrait painted. He did so at the behest of his artistic friend from his time in the U.S. – Hungarian Princess Vilma Lwoff-Parlaghy. The title “Blue Portrait” was selected by Tesla himself, who didn’t enjoy the lights in the princess’s studio and instead created his own light arrangement and 68 CorD 59 / April 2009

decided to pose under a strong light Filtered through blue glass.

The portrait was sold at auction in 1924 after the princess’s death and then fell from public view. Its fate remained a

long-running mystery for a wide range of people interested in Tesla’s life and work. According to the exclusive reports of a number of media in early March, the portrait was ‘discovered’ by art historian Dr. Kornelijus Štekner, who recognised Tesla on a work entitled “Portrait of a man” in the collection of Ludwig Nisena. The image now resides in the Nordsi Museum in the German town of Husum on the border with Denmark.

CENTURY OF SERBIAN ART IN BUCHAREST The National art museum in Bucharest, Romania, is hosting an exhibition of masterpieces from the collection of the National Museum in Belgrade from 27th March to 14th June, under the title “Century of Serbian art: Art in Serbia 1850 1950 from the collection of the National Museum in Belgrade.” The exhibition presents 150 works of the most representative Serbian artists whose paintings, drawings and graphics marked one of the most important, stylish and diverse periods in the development of Serbian art. This is the first time that a comprehensive overview of Serbian art from the ‘new era’ has been exhibited abroad. For the purposes of the exhibition, Belgrade National Museum chose those artists from the collection of Yugoslav paintings of the 20th century who contributed to the formation of an authentic interpretation of the then current, universal artistic language. These artists, both on the local and the international scene, consistently engaged in contemporary European artistic trends. Artists from various periods belonged to different schools of art – from impressionism to expressionism, cubism, secession, symbolism and social interwar avant-garde art, as well as the post-war period of radical, modernism in the early 1950s. The exhibition includes the works of Katarina Ivanović, Konstantina Danila, Đura Jakšić, Đorđi Krstić, Steva Todorović, Uroš Predić, Paja Jovanović, Nadežda Petrović, Ivana Radović, Jovana Bijelić, Petra Dobrović, Sava Šumanović, Mihaila S. Petrova, as well as artists who

pioneered the early post-war years and marked the modernism scene, such as Milan Konjovic, Peter Lubarda, Ljubica Sokić and Mila Milunović.

CHANGELING (ZAMENA) Directed by: Clint Eastwood / Starring: Angelina Jolie, John Malkovich, Jeffrey Donovan, Michael Kelly, Colm Feore, Jason Butler Harner.

“THERE & HERE” AT NY’S TRIBECA FESTIVAL Serbian film director and screenwriter Darko Lungulov’s work Tamo i ovde [‘There and Here] is included in the prestigious international competition at the Tribeca festival, which will be held from 22nd April to 3rd May in New York. This film, which premiere in Belgrade at this year’s Fest, is the first Serbian film to be entered into competition at the New York festival. The film will be screened four times and will compete against another 11 films – from Australia, America, France, Germany, Iran, Israel, Norway and other countries. The Tribeca Festival was founded in 2002 by actor Robert De Niro, along with producer Jane Rosenthal. Director Darko Lungulov commented that it was a great honour that his film was invited to participate in this festival, especially because this year almost 3,000 films applied for inclusion in the programme and only 12 proved successful. “I hope that New York audience will respond at least approximately as well as Belgraders did – with a pure heart and a lot of emotion,” added Lungulov. There and here takes place between New York and Belgrade. Issue is the relationship and the fate of a New York saxophonist and Serbian emigrants, as well as the people from their surroundings. The main role in this American-Serbian co-production is played by American actor David Thornton, while strong supporting roles are provided by Mirjana Karanovic, Branislav Trifunovic, Fedja Stojanović, Goran Radaković and Jelena Mrđa.

ZUBIN MEHTA SEEKS SUPPORT FOR THE BELGRADE PHIL Conductor Zubin Mehta has invited Serbian President Boris Tadić to do everything he can to encourage competent state institutions to increase financial support for the Belgrade Philharmonic Orchestra as an “exceptional Orchestra”. “The people of Serbia really need this great group of musicians to stay at the highest level,” wrote Mehta in his letter to Tadić, which was penned as news broke about the resignation of director of the Belgrade Philharmonic Orchestra, Ivan Tasovac. (Director of the Belgrade Philharmonic Orchestra Ivan Tasovac resigned because the Government of Serbia and the Ministry of Culture failed to respond to

n this heart wrenching retelling of the Wineville child murders, Angelina Jolie stars in her Oscar nominated role of Christine Collins, a single mother living in late 1920’s Los Angeles who returns home from work at the telephone exchange to find that her only son, Walter, has gone missing. Riddled with corruption and plagued by endless negative press stories about its shoot-first-ask-questions-later style of policing, the LA police department set themselves to resolving the case as quickly as possible so as to have a positive story to present to the city’s press. However, in their haste they pick up the wrong child, presenting the titular changeling to the bewildered Collins in front of a gaggle of reporters and photographers. The horror of Collins’ situation quickly deepens as the officers in charge of the case, happy with the press response to their quick and efficient handling of the case, denounce Collins protestations as those of a hysterical woman so twisted by grief that she is unable to recognise her own son. In heart rending moments of female disempowerment, Collins rails against an uninterested police chief, a crooked police appointed psychiatrist and, eventually, the brutally abusive orderlies of a Los Angeles mental hospital as she desperately pursues every avenue available to find her son, while the seconds tick palpably away, along with the chances of finding the boy alive. The film may run a little long for some people at just under two and a half hours, but perversely the slow narrative only deepens the sense of dread as the time since Walter’s disappearance grows. Jolie shines as the 1920’s suburban single mother slowly coming unravelled, and John Malkovich is as impressive in playing her antithesis as the calm and collected Reverend who has no faith in the system to begin with. While it is emotionally high strung, Clint Eastwood’s directing veers shy of too-difficult-to-watch territory which the film could easily have strayed into, and Changeling ends as another high point in his string of late career directorial masterpieces. 4.5/5 Showing: Ster Cinemas, from 19th March By: Richard Wordsworth CorD 59 / April 2009 69

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his request to improve the institution’s financial situation). Mehta, who was among the first to perform in Serbia after the 5th October revolution in 2000, has repeatedly performed with the Belgrade Philharmonic Orchestra. In his letter to Tadic he highlighted that it was thanks to the great efforts of Ivan Tasovac that the orchestra had again reached a very high international level.

MINI FESTIVAL “HAYDN IN LONDON”

The Cultural Centre of Belgrade (KCB), in co-operation with the Austrian Cultural Forum, organised a mini-festival from 13th to 15th March entitled ‘Haydn in London’. The festival marked the 200th anniversary of the death of composer Joseph Haydn (31st March 1732 to 31st May 1809). The concert of chamber orchestra “Haydn

Trio Eisenstadt”, from the city in which Haydn spent most of the life, took place in the ceremonial chamber of Belgrade City Hall on Friday, 6th March and served as an introduction to the festival, which also included concerts, lectures, roundtables, exhibitions, films, etc. In the music programme of the Belgrade Festival, the audience had an opportunity to hear chamber compositions that Haydn composed during two periods of residency in London (1791-92 and 1794-95), which are rarely performed in Serbia. A concert was also held on the theme of women as the central figures of Chamber music. In Haydn’s time women were the artists of the musical evenings in private homes and men performed in public concerts, and most of Haydn’s piano sonatas and trios were dedicated to women as artists.

PRESS PHOTO SERBIA 2008 The exhibition “Press photo Serbia 2008” opened at the Cultural Centre of Belgrade’s Artget Gallery on Tuesday 17th March, where prizes were awarded for the best news photo of last year. Exhibition of the best news photos was held for the eleventh time this year – though

for the first time under the name “Press Photo Serbia”. Artget Gallery exhibited a hundred works that have competed in the categories - BBC News, News, Individuals in the news, Portrait, Sport, Everyday Life, Science, Art, Nature and illustration.

After Belgrade, it has been announced that the exhibition will be represented in Novi Sad, Subotica, Zrenjanin, Čačak, Jagodina, Gornji Milanovac, Kragujevac, Vranje and Paraćin. The exhibition will be included in the official programmes of film festivals in Nis and Palić. As the organisers stated, there are real chances that the best staff newspaper photographer in Serbia will be seen by audiences in Athens and Paris. The organiser of the competition is the Association of Serbian media photographers. This year, with the help of the French Cultural Centre, con-

“SIMPLY RED“ IN BELGRADE

opular British band “Simply Red” will perform at Belgrade’s Kalemegdan fortress on 26th June. This is a unique and probably the last opportunity to hear a live concert of these excellent musicians from Manchester, because singer Mick Hucknall has announced that this is his farewell tour, as the band will stop playing from summer 2010. The Kalemegdan concert is set to be a must-see event. Fans who attended the band’s concert held in a crowded Pionir Hall in August 2006 know the atmosphere of a Simply Red gig. The redheaded singer gave an excellent performance and the audience sang numerous hits with the band. This time we can expect an even greater show, because Simply Red are coming to Belgrade as part of a tour celebrating the 25th anniversary of their work and promoting their double album “Simply Red 25: The Greatest Hits”. 70 CorD 59 / April 2009

tact was established with the famous photo agency Magnum, which participated in the exhibition’s jury as well as in the conception and production of the exhibition.

PAUL BLART: MALL COP Directed by: Steve Carr / Starring: Kevin James, Keir O’Donnell, Jayma Mays.

FESTIVAL OF DOCUMENTARY FILM The 56th annual Belgrade Festival of Documentary and Short Film, being held between 30th March and 3rd April in the Serbian capital, will feature 33 films shown in foreign competition and 39 films in the domestic competition. Films competing in the competitive part of the programme will be displayed in the hall of the Cultural Centre of Belgrade and Balkan cinema, while the ancillary programme will be screened in the Museum of Yugoslav Film Archives. The festival will also include several follow-up programmes, including special programme “My Hero” which will see the screening of five films about people who have dedicated their lives to helping others. As part of the programme “Latino pot”, festival goers will have the opportunity to see films about Mexico, Argentina, Guatemala, Nicaragua, Venezuela and Costa Rica, while the best films from the International Documentary Film Festival in Marseilles will be screened under the programme, “Fid Marseille”. Within the programme, “Finnish animation” 18 short animated films from the latest Finnish production will be shown, while the programme “Prix uip Europe” will bring short feature and animated films, a recipient of the European Film Academy. In the festival programme, “New York six hours earlier” will be shown films of Serbian authors living in New York and American films director Arija Golda, who will be on the jury of this year’s festival. An innovation at this year’s festival is the programme “New Light”, which will see the screening of films shot on mobile phones of through the use of alternative means of filming. At this year’s festival director Mici Milošević will be awarded for his life’s work, while awards will be promoted and a monograph on his work and artistic methods will be aired. According to the festival’s director, Janko Baljak, on the 56th Belgrade Festival of Documentary and Short Film Festival will be held three special screenings: Nenad Krasavac’s film “Sister” on the case of journalists Dade Vujasinović, “Wood branches”, Branka Kresojevića on the reconstruction of monasteries and Hilandar film “All together now”, and Adriana Wils’ Group “Beatles” . CULTURE NEWS - By Jelena Jovanović

n a film which really should have been called “Kevin James is Fat”, Kevin James (TV’s King of Queens) plays Paul Blart, who is fat and also a security guard who spends his days keeping the already relative peace in his local shopping centre and his nights at home being fat and wondering why everyone he knows thinks he’s an enormous loser. The reason, which the screenwriters are rather keen you don’t miss, is that he is fat. The setup runs thus: after a day of cruising around the centre on his Segway (one of those motorised, two wheeled things you stand on when you’ve given up on walking, which Paul Blart has, because, don’t forget, he’s fat), Blart’s mundane life is turned upside down when his mall is attacked by a gang of obnoxiously good looking teenagers, who we know are antagonists because they dress in black and ride skateboards and BMX bikes. Apparently this gang of criminals, when they’re not grinding down handrails and practicing kick flips, are also crack bank robbers, although you can’t really be sure as only the most generation-X one of them ever speaks, the others presumably focusing all their energy on being totally rad, dude. Blart gets caught up in this and finds himself trapped in the mall with the bank robbers, who through a series of unlikely events have taken both Blart’s daughter and sexy love interest shop owner Amy (Jayma Mays, TV’s Ugly Betty) hostage. Sworn to defend his mall, Blart goes on a one man crusade to vanquish the baddies, save the day and prove to everyone in his life that he’s not a loser. With a premise like that you’d be forgiven for expecting Paul Blart: Mall Cop to run like a mix of Die Hard and Home Alone, which is exactly what it should have been, but Kevin James is wasted here on a script which never leaves the slapstick comfort zone of laughing at a fat, clumsy idiot. The beginning is so weak and flat that by the time we reach the midpoint every individually funny line is lost in a bottomless sea of “meh”. The situation is only worsened by the protagonist, Blart, who the scriptwriters spent so much effort turning into a sympathetic loser that in the end they overshoot and make him almost completely unlikable. Rating: 1/5; Showing: Dom Sindikata, from 19th March By: Richard Wordsworth CorD 59 / April 2009 71

CULTURE

LIFE IN VOO MILOŠ LONČAREVIĆ, CAMERAMAN AND SCREENWRITER

Only 15 minutes after entering the city and the hospital, everybody knew that two Caucasians had arrived. Five minutes later one of the local ‘bosses’, Billy, came to see them By Žarka RADOJA Photo Dragan KUJUNDŽIĆ

aiti, 2004. Jean-Bertrand Aristide, the first democratically-elected President of Haiti, has been overthrown. The civil war is raging in the streets of the capital, taking victims every single day. Two young people –

The Ghosts of Cite Soleil Beyond the documentary genre, and it went on to pick up awards around the world 72 CorD 59 / April 2009

Miloš from Serbia and Lelle from France – arrive in Haiti as representatives of Doctors Without Borders, embarking on an adventure that will change their lives beyond comprehension. Miloš and Lelle were tasked with making the Cite Soleil hospital operational and able to serve the half a million residents of the Cite Soleil district of the Haitian capital. Reopening the hospital in this poor area of the city – run by gangsters, awash with illegal weapons and inaccessible even to the police – became a real adventure. Still, as Miloš Lončarević says, this was what heading for Haiti was all about. Only 15 minutes after entering the city and the hospital, everybody knew that two Caucasians had arrived. Five minutes later one of the local ‘bosses’, Billy – Tupac’s brother and the leader of the gangster group Chimera – came to see them. This was the beginning of an adventure that

DOO LAND would result in the making of the excellent documentary The Ghosts of Cite Soleil. U.S. critics described the film as being “beyond the documentary genre”, and it went on to pick up numerous awards around the world, including first prize at the Belgrade Free Zone Festival. “Nobody is allowed to hurt our white brother and white sister – this was the rule in Cite Soleil,” Miloš reminisces. “If they didn’t accept us in that way, I would never have made this film. No media were ever allowed to Cite Soleil. I won Billy and Tupac’s trust easily. They offered us protection and allowed me to do something that was unheard of –photographing everyday life in Haiti without any limitations whatsoever,” Lončarević says. Miloš toured the city on a daily basis, taking photographs of the Haitian capital and its residents. When he showed the material to Haitian documentary maker David Bell, he suggested that they start filming everyday life in the ghetto together. “Bearing in mind that only I was allowed to spend time in Cite Soleil, Bell agreed to co-operate with me – despite the fact that I had no experience of working with a camera whatsoever,” Lončarević explains. Soon footage showing strong connections between the authorities and gangsters in a heated atmosphere just before the civil war in Haiti became a dangerous political record that Bell found too risky. “When I showed up after a while with material showing drugs and guns, and Billy and Tupac speaking openly about robberies, Haitian President Aristide, their dreams and desires, Bell told me that he couldn’t continue working with me any longer, since he lived in Haiti and could end up getting shot or having his house burnt down,” Lončarević says. Bell dropped out, only to be replaced by Danish documentary veteran, Jorgen Leth. Lončarević and Leth’s son, Asger, continued co-operating on the film. Lončarević filmed in the city, while Asger took care of the budget and provided

Haiti is a stunning, poor and neglected country. The people there don’t know how to live differently. There is no industry. All they have are coffee ﬁelds and little else. This is the country of Voodoo the equipment needed to shoot the film. During 2004, over 400 hours of material was shot and, subsequently, a twohour documentary about the fall of the first democraticallyelected President of Haiti, Jean-Bertrand Aristide, and his ties to the criminals of Cite Soleil was made. Miloš spent many days with Billy and Tupac, completely immersing himself in their lives and their problems related to attempts to leave behind the harsh gangster life. As Miloš says, he became their friend in the process. “The

GHOSTS OF CITE SOLEIL

f you want to get an idea of how much gangsta rap has influenced cultures elsewhere around the world, check out Ghosts of Cite Soleil, a revealing documentary about a bloody turf war inside a notorious Haitian slum. What makes this movie compelling is that the leaders of the competing posses, Tupac and Bily, are also blood brothers. And on top of that they are both in love with the same girl, Lele, a French missionary with an incurable case of Jungle Fever for bad boys. The film unfolds against the backdrop of the impending fall of the Jean-Bertrand Aristide regime, which is of considerable significance because the gangs are operating with the tacit approval of the outgoing president. In fact, these sadistic goons openly brag on camera that they’ve been armed by Aristide to intimidate and eliminate his political enemies, which might explain why the Marines later land to restore a little law and order. CorD 59 / April 2009 73

CULTURE

only light in Tupac’s life was his music – hip hop and free style. He would put together rhyme after rhyme as a way of expressing his unhappiness and depicting the social problems of his people, who had no choice in life,” Lončarević explains. According to the Serbian accidental cameraman, Tupac harboured strong hopes that he could save himself, leave Haiti and become a musician, especially after the film directors managed to get in touch with musician Wyclef Jean, a Haitian native who made it big on the U.S. music scene with the group Fugees [refugees], and promised to help Tupac. Nevertheless, Tupac and Billy’s desires were just wishful thinking. In 2004, President JeanBertrand Aristide fled the country after losing the long and arduous battle for Port-au-Prince to opposition leaders Bonifas Alexander and his comrade Buteur Metayer. Chimere were invited to turn in their weapons and, as the film shows, they did just so. However, Billy and Tupac kept some of their weapons for themselves. Many of their fellow gangsters died or were killed in shootings and during battles with the newly-formed Haitian army, led by Bonifas Alexander. The gangs didn’t see eye to eye or co-exist in

peace even during Aristide’s reign. “Although they were brothers, Billy and Tupac belonged to different gangs. They accused each other of all sorts of nonsense all the time, but they always watched each other’s backs. And what is most important, they watched mine and Lelle’s,” Miloš says. When it became glaringly obvious that Billy and Tupac would be killed by the new authorities, Miloš and Lelle decided to help them to escape to the Dominican Republic. “By that time we had already fallen three to four months behind on our filming schedule and no longer had the financial support from Asger and Jorgen Leth. According to the contract and copyright that I had signed, the material was the property of Nordisk Film. They already had all the material necessary to edit the film, thus they no longer needed Tupac and Billy. So, Lelle and I paid for their passports, bribed the authorities – an unavoidable necessity – and left for the Dominican Republic together with Billy and Tupac. Our mission was over. We had no money left from Doctors Without Borders and by meddling in the internal matters of the state of Haiti we had violated myriad international laws. We practically had nothing to fall back on,” Lončarević explains. Miloš and Lelle left some money for Tupac and Billy, just to get by and to try to start a new life in the Dominican Republic. However, they didn’t manage. They spent the money on silly things and when they realised that they had very little left they headed back to Cite Soleil where they bought guns and returned to their old ways. Tupac was murdered and Billy was arrested soon after their return to Haiti. Billy later died during an attempted prison break. Miloš Lončarević went back to Haiti in 2005, but he left the country for France very quickly. “Haiti is a stunning, poor and neglected country. The people there don’t know how to live differently. There is no industry. All they have are coffee fields and little else. This is the country of Voodoo; the country where some places have never seen a doctor. This is the 21st century and sick people are treated by witchcraft. This is a country that is run by a few wealthy families who hold on to power and are all but untouchable. This is the country of black magic, but I hope the people of Haiti will live to see the return of white magic,” says Miloš. Miloš feels fine after his first adventure in documentary making, but only because he has now returned home and is able to spend some time looking after himself and his health. However, he plans to pick up the camera and find another location soon, insisting that the world is full of Cite Soleils that need to be immortalised by the humble camera..

The only light in Tupac’s life was his music – hip hop and free style. He would put together rhyme after rhyme as a way of expressing his unhappiness

Life of fear for Haitian citizens In Haiti eight million inhabitants are living in a state of prolonged and profound horror 74 CorD 59 / April 2009

ARTS

MIND IN MOTION

6TH BELGRADE DANCE FESTIVAL

“There are so many thoughts that could be danced. Dance is an everlasting thought. An attempt akin to writing on water” By Jelena JOVANOVIĆ

he mission of the 6th annual Belgrade Dance Festival (BDF) was the idea of motion. In an attempt to breakdown the essence of the slogan, Belgrade ballerina Aja Jung, manager and selector of the Festival, said: “There are so many thoughts that could be danced. Dance is an everlasting thought. An attempt, that reminds of writing on water. Thoughts are visible, intellectual, topical and provocative and reflected in modern choreography.” BDF was founded with the aim of presenting modern dance and introducing the best ballet troupes from all over the world to the Belgrade public. This year the BDF presents 14 performances of dance companies from around the world and some of the most talented, intriguing and important contemporary choreographers. From 1st to 15th April the Dance Festival will present the performances of troupes from Brazil, France, Germany, Holland, Monaco, Sweden and the UK, at city venues including the Centre Sava, the Yugoslav Drama Theatre, the Belgrade Drama Theatre and Atelje 212. The festival will be opened by the Monte Carlo Ballet company (Les Ballets De Monte-Carlo), which operates under the patronage of H.R.H. Princess Caroline of Hanover. The company will perform to the music of Bertrand Maillot under the choreography of JeanChristophe Maillot, while their costumes are the creations of renowned fashion designer Karl Lagerfeld. As announced by BDF director Aja Jung, the troupe’s ‘Landscape’ and ‘Altro

Kanto’ confirm the demanding and ultimate standards of contemporary dance, displaying original dynamics and aesthetics of dance lexicon, or rather the presence of high technology with the beauty and ease of execution. Another interesting participant in the dance fest is the Random Dance troupe from London. Director and choreographer of the troupe, Wayne McGregor, is one of the most interesting dance creators of the 21st century and one of the major stars of world choreography. McGregor gained renown for his use of modern technology in dance and art when designing the movement for the Harry Potter films. Project ‘Entity’ is created in co-operation with five leading British psychiatrists that dealt with relations between commands in the brain and movement. A special event of the BDF this year will be a performance of “bounce”, an inventive dance project and a strong driving power and brilliant male-only dance created by famous Dutch choreographer Koni and performed by dance company Sociedad.

Aja Jung, selector of the Festival Thoughts are visible and reﬂected in modern choreography CorD 59 / April 2009 75

CULTURE CALENDAR ANNUAL EVENTS Belgrade Dance Festival April - 15. April Sava Center, Yugoslav Drama Theatre, Belgrade drama Theatre, Atelje 212

Andonis Foniadakis Entre o Corpo y o Azul music & voice: Alcione / music arrangement: Felipe Venâncio / choreography: Henrique Rodovalho BALÉ DA CIDADE DE SAO PAULO Sao Paulo, Brazil 09.04.2009. Sava center 20h

Stockholm, Sweden 15.04.2009. Sava center 20h Empty House music: Félix Lajkó / choreography, set design: Johan Inger Walking Mad music: Maurice Ravel / choreography, sets, costumes: Johan Inger

CLASSICAL MUSIC BELGRADE PHILHARMONIC ORCHESTRA IN APRIL All Concerts are in Kolarac Hall, at 20 00

PROGRAMME Les Ballets De Monte-Carlo Monte-Carlo, Monaco April 1st 2009. Sava center 20h Altro Canto II Music: Bertrand Maillot / choreography: Jean-Christophe Maillot Vers un Pays Sage music: John Adams / choreography: Jean-Christophe Maillot WAYNE MCGREGOR | RANDOM DANCE London, United Kingdom 03.04.2009. Sava center 20h

Entity Original music: Jon Hopkins, Joby Talbot / choreography: Wayne McGregor in collaboration with the dancers CONNY JANSSEN DANST Rotterdam, The Netherlands 05.04.2008. Yugoslav Drama Theatre, 20h Rebound music & video arrangements: Koen Keevel / dramaturgy: Carel Alphenaar choreography: Conny Janssen SOCIEDADE MASCULINA Sao Paolo, Brazil 07.04.2009. Atelje 212 20h Palpable music: Julien Tarride / choreography: 76 CorD 59 / April 2009

Lac music: P.I. Tschaikowsky / choreography: Sandro Borelli / dualidade@br music: Amália Rodrigues, Henry Tourge, Wim Mertens, Delirium... / choreography and concept: Gagik Ismailian Dichotomy music: Man Bap / choreography: Luiz Fernando Bongiovanni THEATERHAUS STTUTGART & STUTTGART BALLET Stuttgart, Germany 11.04.2009. Atelje 212 20h Don Q music: Franz Schubert, Alfred Schnittke, pop songs... and more / dramaturgy: Esther Dressen / choreography: Christian Spuck EMANUEL GAT DANCE Istres, France 13.04.2009. Belgrade Drama Theatre, 20h

Winter Voyage music: Franc Schubert / choreography, costumes, light design: Emanuel Gat Rite of Spring / music: Igor Stravinsky choreography, costumes, light design: Emanuel Gat CULLBERG BALLET

03. 04. 2009. Conductor: Frank Cramer / Lisa Smirnova, piano / Program: M. Mihajlovic: Memento, L. van Beethoven: Concerto for piano and orchestra No. 3, c-moll, A. fon Zemlinsky: Die Seejungfrau 10. 04. 2009. Conductor: Ronald Zollman / Soloist: Maxim Rysanov, viola / Program: M. I. Glinka: Kamarinskaya, P. I. Tchaikovsky: Rococco variations, I. Stravinsky:Petrouschka 24. 04. 2009. Conductor: Lior Shambadal / Soloists:PercaDu, percussion duo / Program: H. Berlioz: Romeo and Juliette, A. Dorman: Spices, Perfumes, Toxins / M. Ravel: Bolero BEIJING SYMPHONY ORCHESTRA Sava Center, Great Hall 25. April, 20 00 Conductor- TAN LIHUA / PercussionistLI BIAO / Program:Fang Keide, Bao Juankai, Guo Venđing, Musorgsky The Beijing Symphony Orchestra (BSO) was founded in October of 1977 by maestro Li Delun. The BSO is one of the most well known orchestras in China. Maestro Tan Lihua is the orchestra’s current Music Director and

Principal Conductor. Li Delun and Huang Feili built their reputation as the most sought after maestros in China and were invited to become the orchestra’s advisers. It is from their guidance that the BSO has made such rapid progress. Being the symphony orchestra of the nation’s capitol, the BSO has many musicians of great artistic attainments. The BSO has gained approval and praises from audience owing to its deep artistic accomplishment, wide range of performances, and unique Chinese style.

Jovic Trivic, Zeljka Zdjelar and Tamara Markovic; Fra Melitone – Aleksandar Stamatovic and Nebojsa Babic; Guardian – Ivan Tomasev, Dragoljub Bajic and Nenad Jakovljevic

POP, ROCK, ETHNO MUSIC Pasion de BUENA VISTA 03.04.2009. 20:00h Belgrade Arena

Esma Redžepova is a Romani Macedonian vocalist, songwriter, and humanitarian born in Skopje. In long and sucessfull carreer she has performed in more than 8000 concerts in 30 countries. She has fostered forty-seven children, together with husband, musician Stevo Teodosievski, and received numerous accolades for her humanitarian work. By her own account she has created more than 500 works of art- 108 singles, 20 albums, and 6 movies. Nina Badrić Sava Center, Great Hall 23. April, 20 30

Nina Badrić is a Croatian pop singer. She began performing in early 1990s, exploiting the sudden popularity of dance music, but her repertoire gradually became more mainstream. The BSO takes great responsibility in developing and promoting Chinese ethnic symphonic music. Every year it presents a great many works of domestic composers in its music season. Works of Wang Xilin, Bao Yuankai, Huang Anlun, and Xu Zhenmin have all been premiered by the BSO.

OPERA LA FORZA DEL DESTINO (Power of destiny) GIUSEPPE VERDI National Theatre, Belgrade

The premiere of Verdi’s La forza del destino is expected in April, in the National Theatre. The authors of this production are: conductor Aleksandar Markovic (guest from Austria), director Darijan Mihajlovic, set designer Aleksandar Denic and costume designer Ivana Vasic. Vuk Matic, Nenad Jakovljevic and Dragoljub Bajic will sing the role of Marquis of Calatrava, Jasmina Trumbetas Petrovic, Ana Rupcic, Svetlana Nestorov will sing the role of Leonora, Miodrag J.Jovanovic, Oliver Nego and Nikola Mijailovic – Don Carlos; Don Alvaro – Dusan Plazinic, Hon Li; Preziosilla – Jadranka Jovanovic, Aleksandra Angelov, Natasa

CLUBBING Cuban band Pasion DE BUENA VISTA consists of 8 dancers, 3 singers (Companeros de Buena Vista), 10 headcount live-band „ La Idea and 3 backround singers from „ La Idea „. „PASIÓN DE BUENA VISTA” will lead you to the streets of the caribean island, to make you take part of unspoiled, cuban joy of life. Unique and original cuban personalities, top of the pops cuban singers and extraordinary dancers as well as a unique stage-performance, stage-backdrop and breathtaking projections will infect you with the humour and temper of Cuba... Esma Redžepova and Teodosijevski Ensemble Sava Center, Great Hall 7. April, 20 00

James Zabiela Genex Impulse Hall 25. April at 22 00

James Zabiela is a DJ from Southampton in the United Kingdom. In his early years his signature style was a fusion of Breakbeat and House music. He is also regarded as a Tech House DJ although his use of Breakbeat music is still key to the more flashy parts of his sets. He is known for his turntable skills, extensive use of loops and effects, and the use of the Pioneer CDJ1000s, EFX1000 as well as more recently using Ableton Live.

ART Retrospective exhibition of Ljubica Cuca Sokić RTS GALLERY Takovska 10. Until 2. May CorD 59 / April 2009 77

CULTURE CALENDAR peoples. Depending on the context, the mwana hiti carried sacred, status, magical, or religious properties founded on the authority of the ancestors. The sculptural form and real life function of the mwana hiti motif reveals that it unites all male and female aspects, on a physical and spiritual level and that the varying meanings contained in the mwana hiti image are in accordance with its many functions.

LITERATURE BLOG- New Literature Genre Meeting with writer Lorenso Silva Institute Cervantes 15. April, 19 00

FILM PREMIERES IN APRIL Gran Torino Start: 02. April

31st SALON OF ARCHITECTURE 26 March – 30 April, 2009 MUSEUM OF APPLIED ART

Ljubica Cuca Sokić (1914- 2009) is one of the most significant Serbian painters in the XX century. She has studied arts in Belgrade and in Paris. Since 1968. she has been member of Serbian Academy of Scients and Arts (SANU). She died in Belgrade at the beginnig of this year. Retrospective exhibition in RTS Gallery, dedicated to the memory of Ljubica Sokic, presents paintings and drawings from various creative periods. Mwana hiti: More than just a doll (From the Guibert Hairson Collection) The Museum of African Art Belgrade, Until 30. April

Initiation trunk figures, staffs of highranking members of the community, a fly whisk, container for medicinal and magical substances, a memorial post and throne-stool, spoons for the ceremonial preparation and food consumption, as well as more than forty hairpins, combs and hair decorations are brought together by one image – the mwana hiti. The mwana hiti appeared as a freestanding figure or image incorporated in objects used in ceremonies and on other important occasions that marked the lives of the Zaramo and neighbouring 78 CorD 59 / April 2009

Traditional annual exhibition which presents contemporary architecture works. This year Salon will present 100 works by domestic and foreign architects of all generations.

FILM

Directed by : Clint Eastwood Starring: Clint Eastwood, Christopher Carley, Bee Vang, Ahney Her. Disgruntled Korean War vet Walt Kowalski sets out to reform his neighbor, a young Hmong teenager, who tried to steal Kowalski’s prized possession: his 1972 Gran Torino Belgrade phantom Start- 2. April

Belgrade documentary and short ﬁlm Festival 30. March- 3. April

Directed by: Jovan Todorovic and Bogdan Petkovic / Starring: Milutin Milosevic, Radoslav Milenkovic, Marko Zivic. Film is based on the true story from 1979- urban Belgrade legend about white porsche and its phantom driver. Race to Witch Mountain Start- 9. April

Belgrade cultural Center Movie Hall, Yugoslav Film Archive, Balkan Cinema

Directed by Andy Fickman / Starring: Dwayne Johnson, AnnaSophia Robb, Carla Gugino. A UFO expert enlists the help of a cabbie to protect two siblings with paranormal powers from the clutches of an rganization that wants to use the kids for their nefarious plans

Slamdog Millionaire Sava Center, 13. April,

spies who share a steamy past hook up to pull off the ultimate con job on their respective bosses

HOTEL FOR DOGS Start- 23. April

17 Again Start 23. April

Directed by: Danny Boyle Starring: Dev Patel, Anil Kapoor, Saurabh Shukla, Freida Pinto. Film won 8 Oscars this year, includingBest Achievement in Directing, and Best Motion Picture. Screenplay Based on Material Previously Produced or Published . It is a story about Mumbai teen who grew up in the slums, becomes a contestant on the Indian version of “Who Wants To Be A Millionaire?”

Directed by Thor Freudenthal Starring: Emma Roberts, Jake T. Austin, Kyla Pratt with Lisa Kudrow. Two kids secretly take in nine stray dogs at a vacant house

FASHION 25th BELGRADE FASHION WEEK 23-29. APRIL 2009, Belgrade

WATCHMEN Start- 16. April

Directed by Burr Steers Starring: Zac Efron, Leslie Mann, Thomas Lennon. Comedy about a guy whose life didn’t quite turn out how he wanted it to and wishes he could go back to high school and change it. He wakes up one day and is seventeen again and gets the chance to rewrite his life. X Men Origins: Wolverine Start: 30. April

Directed by : Zack Snyder Starring :Malin Akerman, Billy Crudup, Matthew Goode. When an ex-superhero is murdered, a vigilante named Rorschach begins an investigation into the murder, which begins to lead to a much more terrifying conclusion DUPLICITY Start- 23. April

Directed by: Tony Gilroy Starring: Julia Roberts, Clive Owen, Tom Wilkinson. A pair of corporate

Directed by Gavin Hood Starring-: Hugh Jackman, Liev Schreiber, Ryan Reynolds, Taylor Kitsch. Wolverine lives a mutant life, seeks revenge against Victor Creed (who will later become Sabertooth) for the death of his girlfriend, and ultimately ends up going through the mutant Weapon X program.

One of the premier city events - Belgrade Fashion Week - is o rganized twice a year: at the end of October and in the middle of April . With the most important domestic designers and fashion companies, attractive foreign brands from domestic market, talented young designers, students from Faculty of Applied Arts, interesting designers from abroad as well as numerous media at one place, Belgrade Fashion Week is a must attend event. Behind Belgrade Fashion Week organization stands Fashion Studio Click with its idea creator and author Mr. Radujevic Nenad. Fashion Studio Click covers several different business domains – model management, PR, event and fashion marketing, counsalting, organization of fashion shows, video and photo production. Click is made of around 80 models and photo models, designers, stylists, photographers, make up artists, hair stylists, team of scenographers and designers, choreographers, music assistants, PR team, marketing and management. CorD 59 / April 2009 79

LIFESTYLE & LEISURE |

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PARADISE The World’s ten best hot luxury beaches and islands for holidaying. Visit the most luxury beaches in the world. Wonderful islands and beaches loved by celebrities. While city breaks, country retreats and resort getaways are all well and good, nothing beats the decadence of an island escape. With tropical palms swaying in the breeze and turquoise waters lapping at crisp white sand, luxury islands are a favourite destination for the rich, famous and fabulous. Follow our lead and check out the world’s top 10 luxury islands; trust us, they’re out of this world. NO.10 - COUSINE ISLAND

SEYCHELLES

art luxury resort, part nature reserve, Cousine Island is one of the most visually stunning remote islands in the world, and it’s just 62 acres in size. One of the 115 islands that make up the Seychelles, this tropical isle is like something out of Robinson Crusoe and can only be reached by helicopter. The five-star Cousine Island Resort and Spa is the perfect place to stay on the island for travelers looking for highend creature comforts, while the stillness and natural beauty that surrounds it affords all-important peace and quiet so desperately sought by city slickers. Brimming with lush vegetation and all kinds of birds and turtles, Cousine Island is like the Garden of Eden of the modern-day world. 80 CorD 57 / February 2009

NO.8 - MNEMBA ISLAND

INDIAN OCEAN

NO.9 - MLJET

THE GREENEST OF THE ADRIATIC’S ISLANDS

n southern Croatia, close to world famous city of Dubrovnik, one of the most beautiful islands in the world is located – island of Mljet. Mljet is Croatia’s greenest island with its Mediterranean vegetation, clear and clean sea, gentle sandy shoreline and a wealth of underwater sea life. This island is well known for its white and red wine, olives and goat’s cheese. Mljet is indeed s unspoilt island that is covered by a dense Mediterranean forest . The sea round the island is rich in fish and marine life. Mljet is also well known for it’s two salted lakes - Veliko and Malo Jezero that are located at the north end of the island. On small island in the middle of Veliko Jezero lake, there is old Benedictine monastery. Beside beach Saplunara ( on the south of the island) , Veliko and Malo Jezero are favorite swimming spots for locals and visitors alike. Northern part of the island of Mljet is also National Park, and is therefore, one of the favorite destinations for travellers.

lthough it’s a mere 2.8 miles off the eastern tip of Zanzibar, Mnemba Island is about as far from civilization as you’re ever likely to feel. Every vista here looks like a shot from a honeymoon brochure, with 10 romantic beachside lodges each with their own verandas overlooking the sea, untouched white beaches, shimmering blue waters, and the type of glowing sunsets only ever seen in the movies. The island is just one mile in circumference, with a conservation barrier that protects the coral reefs, giant turtles, ghost crabs, and tropical fish that surround it. It’s no wonder it was voted one of the top three most romantic islands in the world by trusty Condé Nast. Walk barefoot along the shore in your linen trousers, indulge in fresh fruit for breakfast and fresh lobster for dinner, enjoy a spot of windsurfing, deep-sea fishing or kayaking, and sink into crisp linen sheets all in one day

NO.7 - COCOA ISLAND

MALDIVES

he perfectly named Cocoa Island has it all: silky white sand underfoot, a lagoon that couldn’t be bluer if it tried, and a specifically built five-star resort that, for once, matches the pictures in the travel brochure. Set over water, 33 villas are available for guests to check into, while facilities include beautifully manicured gardens, shimmering swimming pools, an on-site spa, yoga pavilion, water-sport center, and an elegant restaurant offering lip-smackingly good Thai food. The actual island itself is about as eco-friendly as it gets, with a strict green policy that ensures its pristine natural environment remains pristine. Think Castaway, but with romantic teak decking. CorD 57 / February 2009 81

LIFESTYLE & LEISURE |

NO.5 - ZAKYNTHOS

PARADISE IN THE IONIAN SEA

n Zakynthos you will find the mountain villages and those of the plains besides those by the sea-side. In between the sharp edged rocks, the white sand and the turquoise water bays the Caretta-Caretta sea-turtles find refuge to reproduce. The beaches of Lagana(8km) and Geraka(17km) are welcoming them every year when they come out at night to lay their eggs. The mountain villages (Keri, Lithakia, Maherado, Koiliomeno) are famous for their true Zakynthian hospitality and you will surely enjoy the local gastronomy and unsurpassed wine tradition. On this island everything is different, the musical stories sang at the tavernas, the historic wineries, the stalactite & the blue caves, the sight of the “ship wreck” sunk in the sand now, the cave of St. Damian... “Reparo” in the local dialect means either resting or relaxing, a meaning that on this island has another dimension.

NO.6 - BARBADOS

CARIBBEAN

hile it may be one of the most prominent luxury islands out there, Barbados still hasn’t lost its exclusive appeal. Hundreds of celebrities still flock there each and every January, hoping to catch a ray or two of glorious winter sunshine. The 166-square-mile island is completely flat, meaning luxury hotels and fine-dining restaurants are aplenty along its stunning, white-sand coastline. Highly recommended is the Sandy Lane Luxury Golf & Spa Resort at St James, the island’s most prestigious place to stay and much-publicized wedding venue to Tiger Woods a few years back.

NO.4 - PALM ISLAND

SAINT VINCENT AND THE GRENADINES

ade up of 32 jaw-droppingly beautiful islands, it would be easy to miss Palm Island in the cluttered archipelago that makes up Saint Vincent and the Grenadines. Nevertheless, once you’ve found it and taken the mile-long boat trip from Union Island, you’ll never want to leave; 135 acres of tropical paradise await you, with a private resort catering to your every whim no matter how frivolous. Casuarina Beach runs along the entire length of the western coastline, and is quite a sight to behold. Crystal clear waters swoosh against its sand beaches, coconut trees shimmy on its coast and general gorgeousness abounds. The resort itself is small but perfectly formed, with just 40 guest rooms to maintain exclusivity, a Michelin-star restaurant serving up the best international fare, and a bar in which you and your

82 CorD 59 / April 2009

NO.3 - TURTLE ISLAND

FIJI

lthough Lost is actually filmed in Hawaii, it’s supposed to be set in Fiji -- meaning that a real Fijian island is going to be even more beautiful than the sets on the TV show. Turtle Island lives up to that promise, with more than 500,000 trees planted over 30 years by its entrepreneurial owner, Richard Evanson, dozens of private beaches and a stunning resort comprising 14 eco-friendly villas -- it’s no wonder The Blue Lagoon, the 1970s film starring Brooke Shields, was filmed here. If this place doesn’t take your breath away, then we’re afraid nothing will. And this is the place to honeymoon if you’re serious about your marriage.

NO.2 - MUSTIQUE

WEST INDIES - THE ISLAND OF MUSTIQUE

here’s a very good reason rock stars and royal family members jet across the globe to vacation on the private island of Mustique. Spreading across 1,400 acres of tropical paradise, Mustique is located in the southern Caribbean and is owned and operated by the Mustique Company (made up of the island’s privileged homeowners). Upholding its exclusivity and protecting its natural beauty, the firm allows only a select group of people to stay on the island, with visitors ranging from Prince William to Mick Jagger. While there, designer-clad guests can frolic in the aquamarine surf, sprawl on its pristine white beaches or party the night away at Basil’s Bar, a favorite haunt of the jetset vacationers.

NO.1 - MUSHA CAY

EXUMA CAYS

ou’ll have to be friendly with famous magician and owner David Copperfield to pay a visit, but once you’ve touched down in Musha Cay with your Louis Vuitton bags in tow you’ll never want to leave. Comprising four private islands, 85 miles southeast of Nassau in the Bahamas, the mini-archipelago offers some of the best diving on the planet, with transparent waters and miles of jaw-dropping coral reef. There are five houses in which to hunker down for the night, with every conceivable luxury found inside, and more than 30 staff members to cater to your every whim. Copperfield also claims to have found the Fountain of Youth on the island, but even if you don’t find it while you’re here, you’ll still return home looking 20 years younger. CorD 59 / April 2009 83

LIFESTYLE & LEISURE

THE SPIRIT OF

TOB AND CORD RECOMMEND

BELGRADE

When you come to Belgrade you have the feeling that you know everybody and that the people there are closer to each other than anywhere else hat do the impressions that we take away from a city depend on? A city that we are visiting for the first time attracts us firstly through its inhabitants, then through its boulevards and promenades, river banks and gardens, its sunsets, cafĂŠs and restaurants, its museums, the rhythm of life, its entertainment. Every city, just like every man, has its own biography and character and its history chronicles its childhood

84 CorD 59 / April 2009

and youth, its celebrations and defeats, its dreams and errors, and the same is true for us. Belgrade is an ancient city with a rich history, in the best location in Europe, with the most interesting men and the most enigmatic women. We know it is not nice to boast, but one of the special qualities of Belgrade lies just in this mix. Everything is always on the boil in Belgrade, and one can feel the heartbeat of history, of the people, in every district of the city, each full of smell and colour. This is the life of a city on

BORING CITY

“I

know that amongst hurrying tourists Belgrade has the reputation of being a boring city. In my opinion, nothing very beautiful can be boring. But even if it were otherwise, it is in any case unjust to pass judgement on a town, just as it is to pass judgement on a person according to our first, fleeting impressions. In order to judge the good or bad traits of a place or person, we must first know them intimately, and anyone who knows Belgrade intimately must love it passionately” . Herbert Vivien, correspondent of the London Daily Express, 1896.

the border of two civilizations, at the confluence of two rivers, at the foot of Mt Avala. By night the music of gypsies, the songs of the tamburica players and the wine and the tables set out in front of the cafés show us that the East has not completely disappeared and that the West is not yet fully at home here in a city where people carry a crossroads inside of them. When you come to Belgrade you have the feeling that you know everybody, and that the people there are closer to each other than anywhere else. There is a good atmosphere everywhere you go, as if everyone has found the ideal place to feel at his best. Belgrade’s charm is just irresistible! The best thing about Belgrade is the people who live there and their spontaneity. This charm and hospitality on the part of the people of Belgrade is mentioned in all the travelogues and books of long-gone international travellers, and modern journalists and visitors to our city say the same. Its openness and readiness to welcome visitors will always be the most important feature of what Belgrade has to offer the tourist. Recently Len Belošević wrote in the Pittsburgh Post-Gazette: “Belgrade is a city of mystical contradictions. Belgrade... While I was walking along Knez Mihailova, the packed pedestrian street which leads from the centre of Belgrade to Kalamegdan, I did not see any evidence that Serbia was beset by economic and political problems. The cafés were full of cheerful Serbs drinking coffee, Serbian beer or something stronger like sljivovica. With no visible worries, these people idly discuss life, love and of course politics, or ambivalently observe passers-by, including the fashionably-dressed women, who have come out to perform an Old Slavic social ritual, that

Belgrade’s charm is just irresistible! The best thing about Belgrade is the people who live there and their spontaneity is, to be seen... One gets the impression that these people, as they drink or walk, are in better spirits and less concerned than the pedestrians of any American city street.” This is all backed up by the refrain of the popular song about Belgrade: “My Belgrade has a heart Full of love so pure, My city opens wide its arms And shows that love to all...”

SKADARLIJA Skadarlija is a vintage street, an urban neighborhood and generally considered the main bohemian quarter of Belgrade, styled as the Belgrade Montmartre. Skadarlija is located less than 300 metres (330 yd) north-west of Terazije, central Belgrade The history of Skadarlija began in the 1830s with the settlement of Gypsies in the abandoned trenches in front of the ramparts. The 1854 town plan of Belgrade reveals that the Gypsy hovels had been replaced by brick buildings into CorD 59 / April 2009 85

LIFESTYLE & LEISURE

which artisans, caterers, petty clerks and others moved. Skadarlija began to acquire its bohemian character in the last few decades of the 19th century. and particularly after 1901,when the well-known Dardaneli inn was demolished and its guests, prominent writers and actors, moved to the Skadarlija inns or kafanas. The best-known of these were Tri šešira (“Three hats”), Dva jelena (“Two deers”), Zlatni bokal (“Golden chalice”), Bandist, East, Guild, and Two Sergeants. The first three of these still survive today, accompanied by some new restaurants like Ima dana (“There will be days”), Skadarlija (demolished in 2006), Dva bela goluba (“Two white doves”). Well-known but mostly poor poets and writers became regular visitors of Skadarlija in the early 20th century, not just from Serbia but from the wider Yugoslav areas, even before the Yugoslav state was formed as such in 1918. Restaurants are proud of their lists of worldwide celebrities who visited them over the decades. Often, they post photographs of their visits on the walls. For example, over the years, Tri šešira welcomed numerous famous guests such as guitarist Jimi Hendrix, politicians George H.W. Bush, Josip Broz Tito, King Juan Carlos I of Spain, Sandro Pertini, and chess player Anatoly Karpov.

The present Skadarlija, a short and curved street, is a remarkable Belgrade tourist attraction. It includes well-known restaurants, hotels (e.g. Le Petit Piaf), art galleries, antique and souvenir shops, and the Sebilj fountain. Groups singing either Gypsy music or traditional city music and actors dressed in traditional Serb costumes perform freely down the street. Unlike other similar and popular places in Belgrade that are considered posh, Skadarlija is known as a place visited by entire families with children, and young couples. Restaurants offer the typical national cuisine, most notably the roštilj (grilled meat) with pivo (beer).

Tri šešira welcomed famous guests like Jimi Hendrix, George Bush, Tito, King Juan Carlos I, Sandro Pertini, or Karpov

Skadarlija Restaurants offer the typical national cuisine, most notably grilled meat with beer 86 CorD 59 / April 2009

AVALA

Mount Avala, just 511 m high, is 18 km from the centre of Belgrade The mountain is covered with deciduous and coniferous woods and the Avala nature reserve has been protected by law since 1859. During the middle ages the fortress of Žrnov stood on the top of Avala and controlled the approach to Belgrade. It was captured by the Turks in the 15th century and adapted to their needs. A mausoleum, Memorial to the Unknown Warrior, the work of Ivan Meštrović, consecrated to the Serbian heroes of the First World War, was erected in 1938 on the summit of the hill. On the road towards Belgrade in the village of Jajinci is a Memorial Park on the site where the Germans shot around 80,000 people in the Second World War. Avala used to be dominated by a 195 m TV tower, erected in 1965, which was destroyed in 1999 during the NATO bombing. The following catering facilities are available at the top of Avala: Hotel Avala, Mitrovićev dom mountain lodge and the Čarapićev brest student hostel: At the foot of Avala are: the 1000 Ruža Motel, the Pansion “Beograd” boarding-house and the Lipovica, and Lovački sastanak restaurants amongst others.

KOŠUTNJAK The Košutnjak woodland park and city picnic spot stretches over 330 hectares, 250 m above sea level. The deciduous and coniferous forest is criss-crossed by numerous paths. The name Košutnjak probably derives from the deer (Serbian, ‘košuta’) that used to live here. Up until 1903 the dense woodland was a restricted royal hunting ground, but was opened to the public after that date. There are two distinct built-up areas in Košutnjak: the Pionirski grad sports and recreation centre and Film City (Filmski grad) with its complex of studios and other facilities and its filmmaking equipment. The Košutnjak sports and recreation centre has football pitches, athletics fields, volleyball, basketball and handball courts and five open-air and one indoor swimming pool. For ski lovers there is an all-weather ski-slope. At the foot of the hill where the hunting ground of the Obrenović family once was, there is now a spring known as Highwayman’s Spring (Hajdučka česma). You will also find the Košutnjak camp, Hotel Trim, and the Košuta, Gol, Devetka, Filmski grad and Panorama restaurants at Košutnjak.

TOPČIDER The wooded and well-kept Topčider Park stretches over 111,336 m2, in the Topčider River valley, and for 150 years has been a favourite picnic spot of the people of Belgrade. The name Topčider is a Turkish word, originally coming from Persian and means the ‘cannon maker’s valley’. This was the place were the Turks cast their cannons for the attack on Belgrade in 1521. The landscaping of Topčider was begun by Miloš Obrenović in 1831, when he built his residence and a church, followed by a bar, barracks and the park. During the first decades of the 19th century this area was full of vineyards and country houses belonging to the wealthy. In this area of ponds, reeds and rushes, the first park in Belgrade emerged. Between 1831 and 1833 plane trees were planted in what were the old lime pits around Prince Miloš’s Residence,

and they still stand there today. The planting of Topčider was carried out by able Czech gardeners. The central section made up of flower beds is of symmetrical design and faces Miloš’s residence, finishing in front of a stone obelisk (erected in 1859) thereby emphasising the formal character of the area. Within the beautiful woodland surroundings are the Topčider Church (Topčiderska crkva), the Guard House (Dom garde), and a number of restaurants.

DANUBE AND SAVA The Belgrade river banks are 200km long. There are 16 river islands on the Belgrade waterways of which the most wellknown are: Ada Ciganlija, Veliko ratno ostrvo and Gročanska ada. The Danube flows for 60 km through the territory of Belgrade from Stari Banovci to Grocka. The river Sava flows for 30 km through Belgrade territory counting upstream from Obrenovac to the Ušće (confluence of the Sava and Danube). The Great War Island (Veliko ratno ostrvo) This is situated right at the confluence of the Sava and Danube and has from ancient times been a strategically important military position for the capture and defence of Belgrade. Today the Great War Island houses country chalets and gar-

TOURIST INFORMATION CENTRES: Tourist Organisation of Belgrade: www.tob.co.rs i www.belgradetourism.org.rs - Aerodrom “Nikola Tesla”, tel: 209-7638 - Makedonska 5, tel: 3343-460 - Terazije, in the subway, tel: 2635-622, 2635-343 - Main Railway Station, tel: 361-2732 - Sava Passenger Dock, Karađorđeva TOS Tourist Information Centre, Dečanska 8a, tel: 3230-566 Zemun Tourist Centre, Zmaj Jovina 14, tel: 2192-094 Association of Tourist Guides, Dečanska 8, tel: 334-3186 CorD 59 / April 2009 87

LIFESTYLE & LEISURE

CUISINE WITH A FRENCH BRAND

RESTAURANT REVIEW: BALZAC

The crowd-pleasing Strahinica Bana Street, famed for its nightlife, has become home to several restaurants, one of which is Balzac

By Jelena MICKIĆ Photo Slobodan JOTIĆ

pened some years ago, Balzac has already gone through some concept changes – perhaps to keep pace with the ever-changing street upon which it lies: although it’s named after famous French novelist and

City event venue Balzac often hosts various wine and food events that might be worth visiting 88 CorD 59 / April 2009

playwright Honoré de Balzac, it is no longer a French restaurant, having extended its offer to embrace more international flavours. Conceived as a café/restaurant, Balzac is a comfy spot to have a drink, coffee or cake, or tuck into a business lunch on the ground restaurant level, while the smaller upper gallery offers a more intimate atmosphere. The interior, designed to make it one entity, contains a subtle note of refinement. The dominant colour palate is warm, golden rust combined with beige and brown. If you, like me, enjoy soaking up the atmosphere, interior and people around, you may notice that certain decorative elements at Balzac belong to specific interior design styles, such as the Art Deco iron cast balustrade, balcony ornaments and wall lamps designed like flower buds. Firstly we chose a table on the empty gallery upstairs, but the air was hot and stuffy so we moved downstairs next to the door, where we experienced less privacy but more fresh air.

As we were seated our bread and butter arrived. The butter was very nicely enhanced with pepper, but it was too soft and lukewarm for my taste. I understand the chef’s intension to help the guest spread the butter easily, but for me the magic of butter on a crunchy chunk of bread is in its chilliness and firmness. That brings us to the second low point I need to address: the bread. Hmm, why does Balzac serve tasteless, industrial white flour burger buns, when a basket with a nice choice of artisan breads would make such a difference? We started our lunch off with an aperitif – excellent quince and pear brandies. My main course choice was Chicken Richelieu, two large pan fried chicken breasts, served with broccoli, carrots and crispy bacon, garnished with rocket and a creamy four-cheese sauce. The presentation was nice, the serving generous. I’d have preferred a slightly more generous serving of the sauce and softer, less cooked meat. Whichever Belgrade restaurant you go to, whether it is well renowned or your local diner, chicken and turkey are always a safe bet. So many restaurants do poultry, in a sauce, rolled in bacon, stuffed with cheese, basically numerous varieties of almost the same taste. My red-meat loving partner, on the other hand, went for pork cutlets: two nice, round pieces served with deep fried potato cut into disks, beaded on a thin and elegantly subtle wooden skewer which made a very nice presentation. The potatoes were crisp and nicely seasoned. The cutlets were topped with sweet and salty barbeque salsa. Nicely seasoned, mildly sweet and gently hot, the salsa matched the soft cutlets well. This time all compliments went to the pork cutlets.To balance off the strong meat flavour, my companion ordered a tomato salad. Although the presentation and seasoning were very

nice – big tomato slices topped with olive oil served on a medium-sized oval plate – the taste was bland. One of the common sense rules says that all vegetables taste so much better when in season and a sensible eater should remember it. As all the food servings in Balzac are on the larger side, we didn’t plan to have any desserts but were pleasantly surprised when two apple pie slices arrived at our table, courtesy of the house. All my restaurant reviews are independent and I never disclose the purpose of my visit to a restaurant, that’s why I understood this dessert treat to be a very nice gesture of the restaurant management to their new guests. The sensibly sized serving of apple pie was excellent and tasty. It came with custard and caramel topping, sweetened just right, with a hint of cinnamon and sprinkled with roasted walnuts, peanuts and hazelnuts. I simply could not find a flaw in this pie. In general, Balzac’s menu offers a nice selection of international cuisine dishes, rooted in French and Italian culinary traditions. The wine list is carefully compiled with a good selection of French, Italian, other European and some New World wines with a more modest choice from Serbian producers. All wines can be ordered by the glass and the restaurant sommelier will gladly help you make the right choice. The staff are polite and unobtrusive, while the music discretely played in the background during our lunch was a compilation of various jazz, bossa nova, pop and mellow sounds. Balzac can be a sensible lunch or dinner choice for a smaller party of friends or even business partners, but it doesn’t have an intimate or romantic feel to it and, therefore, I don’t see it as a couple’s eatery. Restaurant Balzac Strahinica Bana 13, tel: 011 328 59 06

Common sense rules says that all vegetables taste so much better when in season

The meal prices are at the higher medium end and all major credit cards are accepted

Wide selection of food & wine Balzac offers a selection of international cuisine dishes, rooted in French and Italian culinary traditions CorD 59 / April 2009 89

| TECHNO TALK |

SONY HDR-FX1000

Price: €2,999

ony announced the arrival of a new HDV camera (Tape Based in 1440×1080i60), the HDR-FX1000. Even if new FX1000 keep the “same” look as previous FX generation, Sony decided boost their camera with some nice improvement like for example a new G Lens which will give you better quality image also tuned by the Exmor image processor and the “3 Clear Bit CMOS sensor”, as well as a 20x optical zoom, and the possibility to have a 24p and 30p mode.

PANASONIC HDCHS300

Price: €1459

KODAK ZI6

reat architecture. Chock full of ports. Enhanced manual controls, but Mediocre video quality and poor photo quality. Terrible AC adapter and DC input setup. LCD screen is too small. What began as an ethereal tryst throughout the realms of innovative camcorder architecture and Manual controls had instantaneously crashed to a tragic halt when we discovered that the Panasonic HDCHS300’s video and photo quality just couldn’t hack it. It’s a darn shame too because the camcorder is equipped with a killer fleet of image controls, and we had a great experience with its hybrid touchscreen LCD.

Price: €149

CANON HF10

Price: €899

iny size. Great footage. Stays bright in low light, but, poor menus. No viewfinder. Manual controls are fiddly. Hard drive camcorders may pack oodles of recording space but their unsightly storage bulges make for gadget disharmony. Enter the Canon HF10, which opts instead for tiny flash memory to keep its HD footage safe, coincidentally making it one of the most pocketable camcorders around. It does mean there’s only 16GB of storage onboard.

SANYO XACTI VPC-HD2000

Price: TBC

uperb video and stills. Manual features. Connectivity, but, pistol-style grip. No SD card supplied. With every new generation, Sanyo’s Xacti camcorders have stocked up on new treats. The latest version is now equipped with Full HD recording, the very ‘now’ CMOS sensor, and a PAL friendly mode.The headline news remains the 1920x1080, 60fps Full HD shooting, which delivers utterly captivating movies. Spot-on for detail, colours and clarity, the results are mouth-wateringly good every time.

90 CorD 59 / April 2009

hoots hi-def. Easy to use, but, very chunky. Poor low light performance. While the Creative Vado, Flip Ultra and soon to be released Mino all have peerless YouTube credentials, they’re all missing one thing: hi-def recording. That hasn’t escaped the attention of Kodak photowizards – they’ve waved their wands and produced a competitor with, you guessed it, the ability to record 720p video. Shoot at 60fps and you can playback video in slo-mo, while fastforwarding and rewinding is available for all clips. Picture quality doesn’t really compare to standard HD camcorders. It still has that softness common to VGA cameras, but you’re able to play your videos fullscreen without losing detail.

EYETOP CENTRA / Price: €419

earable Video Screen (Glasses) with Audio: The ultimate wearable video screen for comfortable and private video viewing on the go. Eyetop Centra is the first wearable video screen with stereo sound, making it possible to enjoy multimedia content wherever you are. Just plug it into your mobile video device, put your glasses on, store your video device for hands-free operation, and benefit from having a TV set right in front of your eyes! Best of all, Eyetop Centra lets you stay in touch with your surroundings.

MARANTZ IS301

Price: €220

ood sound quality. Unique wireless functionality, but, some Bluetooth quirks. Pricey An add-on for your existing hi-fi system rather than a self-contained iPod speaker dock, the IS301 delivers something pretty unique: the ability to carry your iPod around your house and still listen to music through your ‘proper’ music setup. How’s it all done? Via A2DP stereo Bluetooth, of course – your iPod slips into a small, lightweight handset that communicates wirelessly with a receiver station. This receiver is, in turn, hooked up to a hi-fi with a pair of standard stereo phono cables.

LOGITECH HARMONY

Price: €399

mart design and a doddle to use. Constantly updated. Wide range of compatible kit. But not a big improvement over predecessor. There’s something undeniably satisfying about reclining on the sofa with a universal remote, safe in the knowledge that the five zappers it’s replaced are lying redundant in the loft. It’s a lightweight, slim device – almost too unassuming considering the price – with the key focus being the programming of ‘activities’ (for example, ‘watch TV’ or ‘play a game’), which are accessed using the 3.5in touchscreen. All the programming of your Harmony 1100 is done via your computer, and we’re happy to report it’s compatible with both PCs and Macs.

PORSCHE ETON P9120

Price: €499

eavyweight build. Classy remote. iPod dock. Gutsy, bassy sound, but expensive. Brightness to treble. Mid-range lacks subtlety. Now here’s an expensive radio. Eton has teamed up with Porsche Design to provide a DAB/FM radio complete with separate iPod dock, and called it the P9120. Naturally, with Porsche in the name – and Eton for that matter – ‘it’s gonna cost ya’. The P9120 is clearly going for the luxury market, we’re not convinced by this machine’s appearance. Beauty is in the eye of the beholder, but our eyes weren’t entirely convinced by the industrial looks. Back to the job in hand and the three full-range speakers and subwoofer just don’t deliver the goods sonically.

PIONEER BDP-LX91

Price: €1,899

stonishing picture quality. Fantastic sound. Spec and build are first class. Profile 2.0 spec. As you’d expect, it’s not cheap. As you’d hope given its price, the BDP-LX91 is quite beautifully made – its all-aluminium casing and heavily braced solid steel chassis contributing to its hefty 14kg weight. The disc tray is bolstered by metal shafts to make it more rigid, and even the supporting feet are made of carbon composite, all the better to resist vibration. In short, this is the best Blu-ray player we’ve seen – if you can afford it, buy one and invite us round for tea. CorD 59 / April 2009 91

TECHNO TALK |

FRANKLIN KID-1240

Price: €39

ranklin Children’s Talking Dictionary with Spell Corrector - This electronic dictionary is a great tool to enhance, and speed-up your child’s learning of vocabulary. One of it’s best features is that it speaks words and definitions to your child. Letting them hear how words are pronounced, for a much more natural learning experience. Word-by-Word Matching Easy-toUnderstand Definitions Personal Spelling Word List.

ECTACO EA800

Price: €429

he ECTACO Partner Dictionary and Travel Audio PhraseBook EA800 is the most popular and powerful bilingual travel companion available. With its sleek modern design, hi-res colour touchscreen and state-of-the-art language tools, it is truly in a class of its own. The exhaustive vocabulary features an extensive dictionary with more than 670,000 en-

ECTACO ITRAVL ALPINERU

Price: €399

T MERRIAM-WEBSTER -1840

Price: €99

command of the English language garners attention, respect, admiration and self-confidence, all accomplished with ease through learning exercises and funfilled games built into the Merriam-Webster Speaking Dictionary S Thesaurus. The right words are easy to find with Franklin’s talking thesaurus and renowned phonetic spell correction feature that allows you to enter words by how they sound, while the large 8-line display screen offers visibility with and without your reading glasses. Provides instant access to120,000 words, 300,000 definitions, 500,000 thesaurus entries.

he Russian Electronic Translator Ectaco iTravl AlpineRu provides twoway language translation plus printed text scanning/translation, and many other useful features. The customer return rate on this pocket translator is practically zero. The iTravl AlpineRu Electronic Russian Translator features full text translation (enter your own sentences), voice output, speech recognition, a Language Teacher, and an extensive travel guide. Over 986,000 words and 14,000 categorized phrases. Color touch screen and virtual keyboards.

SHARP PW-E550 tries. Yet the most remarkable feature of this sophisticated handheld is the inclusion of the most advanced voice facilities in the world. As you would expect from the industry leaders, this unique device features both an advanced speaker independent speech recognition system and highly advanced English and Arabic voice capabilities. 92 CorD 59 / April 2009

Price: €119

he Sharp PW-E550 electronic dictionary delivers comprehensive knowledge of the English language in a convenient and compact design. The over 250,000 definitions and 350,000 synonyms can be found in this 5 ounce (approx.) electronic reference tool that will fit in your pocket, briefcase, backpack, or purse. Instant access to more than 250,000 definitions and more than 9,000 biographical and geographical entries from The New Oxford American Dictionary. Use wildcard character “?” to search for words with ambiguous spellings. Place the appropriate number of “?” in the places for characters.

ROBOMOWER RL-1000

Price: €2,999

he RoboMower is the next step in mowing evolution. The RL1000 is a fully automatic lawn mower that is designed to autonomously mow your lawn simply by pressing a button. The RoboMower has a full 21-inch width of cut, and can handle mowing the same types, thickness and heights of grass that a traditional gas walk mower can handle. A single wire is pegged around the perimeter of the lawn. A low voltage signal is carried through the wire, establishing a ‘virtual fence’ for the RoboMower to operate within. The RoboMower uses an onboard navigation system using the magnetic field of the earth to determine the most efficient method of mowing any given lawn.

BERU’S FACTOR 001 BIKE

SCORPION GOLD STINGER

Price: €499

Price: €21,000

o other gold-hunting detector can match the three-mode versatility offered by the Garrett Gold Stinger. Just a flip of a switch is all it takes to change from Non-Motion All-Metal operation to Motion Discriminate and search for coins. The Stinger’s elliptical searchcoil can detect even the tiniest gold nuggets and flakes and can be switched for the larger 5x10” coil when searching for nuggets, veins, floater, and wet and dry placer at extreme depths.

his Is the World’s Most Advanced Bike and it Has an On-Board Computer. BERU’s Factor 001 is scheduled to be unveiled in april in the UK, and purportedly has GPS, motorsport-grade sensors and a radio transmitter, which all go back to an on-board computer. Factor 001 can collect various bits of info, such

ULTRACADE ARCADE LEGENDS

Price: €3,199

rcade Legends is unique, brand new multi-game system complete with 50 officially licensed classic arcade games, a new cabinet with full artwork, and a 25” monitor. The game’s control panel includes two joysticks, six buttons per player and a trackball for trackball games. You can also add many more games to the cabinet through 5 add-on game packs: Casino Pack, Dragon’s Lair Pack, Mega Pack, Midway Treasures I Pack, and Sports Pack. Real Arcade Controls Including Two Joysticks, 3” Trackball and Buttons.

as ergonometric, biometric, physical force and environmental data, then take all that and analyze it in ways to help the rider’s performance. The bike weighs under 7kg, and comes with other advanced features such as ceramic brakes. All the components and wiring are integrated into the composite carbon-fiber frame during manufacturing, which make the bike appear simple on the outside.

TAILGATOR - GAS POWERED BLENDER

Price: €319

he Godzilla of Gas Powered Blenders! At only 10 lbs., the Totally Portable TailGator® sports a 24cc 2-stroke engine which generates enough torque to whip up a pitcher of your favorite frozen beverage in just about 15 seconds. Its 48 oz. plastic pitcher is lightweight and detachable for easy pouring and cleanup. Tired of being tethered to electrical outlets everywhere you go? No problem. Leave the extension cords and generators at home. Take it to sporting events, on your next camping trip, on the boat, road trips, concerts, the beach, the backyard, the pool, even to the in-laws. CorD 59 / April 2009 93

SYMBOLS COLLECTION 2008 Giorgio Visconti’s new collection is a homage to the 80’s when elegance was represented by important and strongly matching pieces; in this case chain link bracelets decorated with pearls and deﬁned colour contrasts. Forms are big and bold with large angular shapes or softer ovals. Strings of pearls are presented with a contemporary twist, 94 CorD 59 / April 2009

adorned with chain details or with antique Roman coins covered with a saffron glaze, the same material being used for an anti scratch watch collection and rimmed in yellow, rose or white gold, smooth or embellished with white diamonds. In fact, gold is the dominating feature of the 2008 Col-

lection, rose or yellow hues are enhanced by the dazzling purity of diamonds, the fascinating opalescence or variety of shades of pearls up to inky black and the extraordinary new chocolate pearl with almost iridescent and golden nuances: all that conveys a unique vintage feel to the collection, which will surely be this season’s trend. The company, founded in 1946 and based in Valenza has once more created jewels of reﬁned elegance – true works

of art, inspiring those clients who wish to escape banality. A Giorgio Visconti piece combines the best of Italian goldsmith’s traditions with the most innovative designs and the result is exclusive jewelry highlighting the sinuosity and feminine style of the ‘80s. Giorgio Visconti plays with form and materials, art and modernity, wit and traditional charm to produce a magical and well balanced collection. CorD 59 / April 2009 95

96 CorD 59 / April 2009

EMPIRE

LIASON

This line is defined by the use of antique Roman coins, which appear on necklaces and pendants with fine gold chains linking one, two, three or more coins. The collection consists of bracelets, rings and cuff links.

Band rings in white, rose, or yellow gold and diamonds.

DESIRE

ROMANCE

PASSION

EMOTION

Necklaces in rose coloured gold with white and chocolate pearls. Rounded hearts encrusted with Pavé diamonds on a yellow gold chain.

ETERNITY

Large rings in onyx with round or flat stones, facet cut with Pavé diamonds set vertically. Necklaces, bracelets and pendants in white/rose gold, set with onyx and tiny diamonds.

TEMPTATION

Earrings and pendants have 3 or 5 chain links in a ring shape finished with a stylised serpent motif, a well known Giorgio Visconti design.

FEELING

Chain bracelets with dangling charms and earrings in white and rose gold with pavé diamonds or a smooth yellow gold finish.

A three strand chain adorned with white/yellow gold square pendants studded with diamonds.

MOSAIC

Rose or white gold pendants and earrings with white or chocolate pearls. White gold rings and pendants, white brilliant cut diamonds, black diamonds and black or white pearls.

ABYSS

White or rose gold necklaces and earrings with white or chocolate pearls.

CHARME

Smooth, rose gold, plaited chain with inlaid details in diamond pavé – also available in chain link.

DREAM

Band rings in white gold with white diamonds, yellow gold with white diamonds or in white gold with black diamonds.

STONES

Yellow gold necklaces or bracelets with white or chocolate pearls. CorD 59 / April 2009 97

HOW TO... |

...SOLVE ELECTRICITY BILL PROBLEMS Citizens and foreign residents can meet their ﬁnancial obligations to Elektrodistribucija Belgrade, or make a claim on the account or change the name of consumers, according to territorial catchment areas at the following locations: Sector 1: Masarikova 1-3, Tel: 011 2657-465. Municipality of Stari Grad, Palilula, Zvezdara, Vracar, part of Savski venac and Voždovac (left of the motorway) Sector 2: Požeška 71, Tel: 011 3554-387. Municipality: Savski Venac, Voždovac and the right side of the motorway, Čukarica and Rakovica Sector 3: Kej oslobođenja 15, Tel: 011 3161-625. Municipalities: New Belgrade, Zemun and Surčin Working hours: weekdays from 7.30am to 8pm and every Saturday from 7.30am to 2pm. ...ORDER FOOD FOR HOME DELIVERY At the Web Address www.donesi.com/beograd/en/ one can order food for home delivery. Site visitors can choose between any of several dozen restaurants, the best Serbian grill takeaways in town, offers of great gourmet dishes and different kinds of main courses, as well as traditional Italian specialties that will bring the charm of Italy into your home - foccacias, pizzas, lasagnas, pastas ... Donesis offers Asian food too, with the city’s great Chinese restaurants and one of the unique sushi bars in town - great food, fast delivery, the place you will love! All orders are carried out directly on the site, no phone contact required. ... REGISTER A VEHICLE All owners of motor vehicles who live in Serbia, both foreigners and citizens, are obliged to register their vehicles each year. Registration can be done in person at any police station or through a number of agencies. The list of relevant agencies can be found at the site www.portal-srbija.com/automobili/registracija-vozilaprenos-vlasnistva. All these agencies are ready to complete the technical review and provide insurance. The majority of agencies have Englishspeaking staff. Foreigners in Serbia can drive their car with foreign licence plates as a tourist. For temporary import there are special plates. Members of the representative ofﬁces of foreign companies are entitled to special licence plates. ...BE A GODFATHER AT A WEDDING To conclude a civil marriage, according to Serbian law, the witness can also be a foreigner. It’s necessary only to present a valid ID with a picture, usually a passport. For marriage in an Orthodox Church, there is no obstacle provided that the best man or maid of honour is Orthodox. If you are christened in another Christian denomination, in order to be a godfather/best man a special permit from local clergymen is needed, though this permit is easily obtained. Atheists and other confession Members cannot be a godparent for a church wedding. 98 CorD 59 / April 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. Russian composer, Modest Petrovich, 2. Macedonian male name – symbol for Radon, 3. Vagrant, rambler – bee product, 4. Country inAsia, Persia – classes or lectures, 5. Front car light – hero, 6. Swedish composer, Gunnar – Croatian opera singer Milka 7. Symbol for sulphur – Greek love poetry muse – symbol for neutron, 8. Dry granulated pasta – sound of being impatient 9. Peninsula in Greece – statue, 10. Nickname for Spasenija – harbour embankment, dam, 11. First name of Peruvian singer, Sumac – news announcer, drummer, 12. Personal pronoun – large tropical lizzards, 13. Greek island in the Cyclades. DOWN: 1. A public display, 2. A week day – the Kozak elder, 3. Wooden saddle – a poetess from ancient Greece – symbol for ton, 4. Juda’s son – ribbon, tape – personal pronoun, 5. A job – a dish - a river in Siberia, the Tobol confluent, 6. Fourth and twenty first letter of Serbian cyrillic alphabet – a town in Bačka County – standard size, 7. Sign for Siemens – first name of opera singer Del Monaco – a type of craftsman, 8. A fabric – a town in Italy, 9. The capital city of US state of Indiana ANSWERS: Musorgski,Atanas, rn, Nomad, med, Iran, sati, far, heroj, ek, trnina, s, erato, n, tarana, ma, atika, kip, Cana, molo, ima, telal, ja, varani, Antiparos.

How to...

Author: Branko Polić