CorD Magazine No.61 by CorD Magazine

CorD, JUNE 2009

22 POLITICS & DIPLOMACY

BUSINESS & CURRENT AFFAIRS

FOREIGN POLICY SERVING NATIONAL ECONOMY

HOW TO SAY ‘NO’ TO THE STATE

Comment By Aleksandar Vučić, Deputy President of the Serbian Progressive Party

Goran Pitić, Chairman of the Managing Board of Société Générale Banka Srbija

FAVOURING VISA ABOLITION

OPTIMISTIC FUTURE

Interview: Dr. Danilo Türk, President of Slovenia

Interview: Michael Ringier, CEO of Ringier AG

VOJVODINA’S STATUTE MUST BE ADOPTED

BEST TIME TO INVEST IN YOUR BRAND

Interview: Dr Bojan Pajtic, President of the Executive Council of Vojvodina

TWO DECADE OF FRIENDSHIP

Interview: Korea’s H.E. Shin, DooByong, and H.E. KIM Jonghae

Žaklina Nikolić Kušić, CEO of the national branch of Publicis Group

SURVIVAL STRATEGIES Interview: Rich McClear, Serbian Media Assistance Programme (IREX/USAID)

REALISTIC ACCOUNTABILITY

EXTENSIVE PRIVILEGES, MINOR INFLUENCE

THE WORLD’S BIGGEST COMPANIES

27 EU members compete for places in the European Parliament

Richard Foan, Managing Director of ABC Electronic (UK)

QUESTIONING THE RUSSIAN RELIANCE

CORD-LEADERS

REGION: MONTENEGRO

EDITOR IN CHIEF Vladan Alimpijević, v.alimpijevic@cma.rs EXECUTIVE EDITOR Mark R. Pullen ART DIRECTOR Tamara Ivljanin, t.ivljanin@cma.rs EDITORIAL CONTRIBUTORS Andrej Klemenčič, Jelena Jovanović, Slobodan Aleksendrić, Ljubodrag Stojadinović, Sonja Ćirić, Jelena Mickić, Dejan Jeremić PHOTO Slobodan Jotić, CorD Archive,

4 CorD 61 / June 2009

According to the Forbes Global 2000

“The impact of Government measures on your companies’ operations”.

Fonet TRANSLATORS Snežana Bjelotomić, Milenko Pećanac, Milica Kuburu, Momčilo Drakulić, Jelena Gledić EDITORIAL MANAGER Tanja Banković, t.bankovic@cma.rs PROJECT MANAGER Marija Urošević, m.urosevic@cma.rs, GENERAL MANAGER Ivan Novčić, i.novcic@cma.rs FINANCIAL DIRECTOR Ana Besedić, a.besedic@cma.rs

SOCIETY

FACES & PLACES

54 BELGRADE’S

Europe Day on 11th May

POSTCARD TO THE WORLD

CULTURE & ART

ARTISTS SHOULD ALWAYS PLAY

Milčo Mančevski, Film Director / Screenwriter

ASTONISHMENT AND FASCINATION

Contemporary Serbian Art in Washington

LEISURE & LIFESTYLE

FASHION

n-sport.net

TECHNO TALK

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The 25th Summer Universiade will take place in the Serbian capital from 1st to 12th July

Timepieces for ladies

This issue is audited by

ABC Serbia

comment

Foreign policy serving national economy In order to successfully live up to the expectations that an avid reader has of a columnist in a prestigious magazine, while giving my own view of the current situation in Serbia as a citizen of this country, I had to face facts that are actually quite disconcerted

s a politician, I try to see beyond the obvious and what I can observe is that there is serious energy, will and strength to move things forward The way that Serbia functions today is predominantly determined by two political planes – a galloping economic crisis, on the one hand, and an inadequately profiled foreign policy, on the other. Although the crisis has gripped the whole world, its intensity and effects in Serbia are more pronounced because the very economic essence has been lost and devastated; a perennially high unemployment rate has been growing, there is a diminished economic activity and, of course, corruption has become an integral part of the economic system and state administration. On the other hand, the position that Serbian foreign policy has is essentially foggy and unclear, although I’ve been constantly hearing praises about the successes of our diplomatic offensives. This shadiness and elusiveness of the Serbian foreign policy platform is mostly explained by pragmatism and the complex international position, as far as I can see. Pragmatism is an acceptable argument to a certain extent, but only as a foreign policy mechanism and a form of tactics used in trying to accomplish clear state and national interests. This government is doing quite the opposite – due to its lack of a united stance on the most important issues for the country’s survival, the disunited ‘feudal lords’ (see ministers) are only serving their own interests, while the goal is getting ever more distant.

“…there is no advanced economy that leads to a stable and sustainable economic system without a clear and driven foreign policy.” So, the government justifies this complete collapse in its work, which results in a lack of clear state interests, by its pragmatic approach. These are empty words, which are used to conceal a deep seated incompetence and even more dangerous irresponsibility. Whoever wants to learn, will learn – this has always been my, albeit improvised, motto. And I have learned both in practice and theory that the success of a national economy is directly related to, and influenced by, a country’s foreign policy. A successful 6 CorD 61 / June 2009

economic and foreign policy should go hand in hand. Let me explain: there is no advanced economy that leads to a stable and sustainable economic system without a clear and driven foreign policy, which uses sustainability and advancement to become part of an established international order. Foreign policy opens up avenues that are sometimes not detected by frequently rigid economic logic. I cannot think of anything more important that Serbia needs today. In my opinion, this goal should be attained By Aleksandar through step-by-step implementation of the three crucial foreign policy aims. Vučić, The first aim of Serbian foreign policy Deputy President should be straightforward implementaof the Serbian tion of two goals without which Serbia Progressive Party cannot count on surviving as a state or advance in all areas – that is, of course, keeping Kosovo in Serbia, but also an explicit and unambiguous desire to join the EU, which guarantees a certain and stable future for Serbia and its citizens. Serbia can have at its disposal the most extensive financial means, which are needed for the country’s investment development and creation of new jobs, from EU funds. This could really fortify the Serbian economy. The second aim concerns strengthening economic diplomacy, mainly pertaining to expanding the market in which Serbian products can become more competitive – these are primarily eastern markets like those of the Russian Federation, China and India. Last, but not least, is the goal of the Serbian state and citizens, who are actively participating in political life, to eliminate corruption as the system’s malevolence and change the collective conscience. I believe that we need help in this area from competent structures in other countries, which could give us a helping hand in turning Serbia into a so-called one stop agency, i.e. in having an integrated approach to attracting more investments. This means that the investment convergence in Serbia would be much faster, more energetic, efficient, transparent and, by that, broader.

EXCLUSIVE INTERVIEW |

DR. DANILO TÜRK, PRESIDENT OF SLOVENIA

Favouring vi

“Freedom of movement is one of the key human rights and should be enabled internationally within Europe” Exclusively for CorD by Andrej KLEMENČIČ

r Danilo Türk, incumbent Slovenian president, is one of the region’s foremost experts on international law and human rights. Having obtained a PhD in 1982 on the principle of non-inter8 CorD 61 / June 2009

vention in international law, Türk’s professional path has led him from the Institute for International Law in Ljubljana, to the United Nations, where he enjoyed a successful career including serving as Assistant SecretaryGeneral for Political Affairs – one of the highest positions in the UN - between 2000 and 2005. He returned to Slovenia to take up

a position at the university, but was soon persuaded to run for president by left-wing parties. He won the run-off against the centreright candidate Lojze Peterle by a landslide, capturing some 68.2% of the vote. Transferring from one of the highest positions in the United Nations to the func-

sa abolition tion of the president of a country entails switching focus from global issues to local and national problems. Do you agree? The transfer between the United Nations and Slovenian politics was very interesting. Of course, the issues Slovenia faces are smaller and much less dramatic than those tackled by the United Nations, but they are interesting in their own right. So, I would say that the dynamics of politicking in Slovenia are among the more interesting ones. What experiences gained at the UN can you draw upon the most to help you with your current work? Working at the United Nations teaches you to be patient when talking to any of a colourful palette of personality types. That comes in handy in any job in politics in any nation, including Slovenia. Your work as Assistant UN SecretaryGeneral for Political Affairs also included dealing with Southeast Europe. How did the United Nations, as an independent political body, view the situation in the region during your post between 2000 and 2005? There were two prevailing questions at that time â&#x20AC;&#x201C; the question of Kosovoâ&#x20AC;&#x2122;s future and the question of the stability of the region as a whole. Regarding the first question, the UN mission to Kosovo contributed to stability and that mission is slowly being replaced by that of the European Union. Less has been done regarding regional stability, but the path towards the EU is also the path towards greater stability of the region. That opens the possibility for some regional issues, such as trafficking or even some of the political issues, to be tackled collectively. But it is too soon to assume what those questions could be.

did they rate the political development of the country between 2000 and 2005? The UN expressed great satisfaction over the developments of October 2000. It was then that the Federal Republic of Yugoslavia requested UN membership and, as a new member country, opened the path to regulating its relationship with this global organisation. That membership request, coupled with all of the later practices, enabled all statutory and other matters between Serbia and the UN to be settled peacefully and to mutual satisfaction.

How did the United Nations see the revolution in Serbia nine years ago and how

How do you personally see the democratic changes in Serbia? Did they happen

I feel that there is a lot of genuine warmth and sympathy between Slovenes and Serbs and those sentiments have been like that for a very long time soon enough or too soon; in a deliberate or inexpedient way? What were the key mistakes? Democratic processes are always complicated and conflicting. Serbia has to deal with a heavy legacy of history and national mythology. I think the current democratic devel-

BOSNIA & HERZEGOVINA

osnia & Herzegovina is probably one of the greatest challenges in the region. It is my wish that there be an agreement between the two entities that exist within the country and between its political forces. CorD 61 / June 2009 9

EXCLUSIVE INTERVIEW |

The idea of the “Iron Boot” has no future in the Balkans of UN members. On the other hand, most Serbian politicians are united in saying that Kosovo is still Serbia, although this claim is not supported even by some of those nations who haven’t recognised Kosovo but plan to do so. This is a dispute and, therefore, there are different opinions. We must consider that a substantial number of UN member states has recognised Kosovo and this process seems to be irreversible. Of course, one must understand all the sensitivities surrounding this issue and it is those sensible questions that will take a lot of effort to be resolved. I would like to wait before offering any detailed comments, until the competent court in The Hague submits its opinion on the status of Kosovo. I think asking for the court’s opinion was a good initiative, as it will enable a more comprehensive and legally detailed perusal of the problem. What does the issue of Kosovo mean for the stability of the region? Is it possible that Kosovo is still a trigger, waiting to be pressed so a new war could be started, or is the decade of wars behind us assurance enough that its status will be determined via legal channels? I believe that the changes that took place in Kosovo already created the basic conditions for peaceful development. I also believe this is irreversible. In my opinion, the nations of Southeast Europe have grown weary of warfare, as the wars in the ‘90s created a general state of weariness, making it clear that the solution to every problem must be sought through peaceful initiatives.

BORIS TADIĆ

hat is your opinion of President Tadić? Very positive, of course. President Tadić is appreciated in Europe and around the world as a very reasonable and experienced political leader who has contributed greatly to the development of Serbia.

10 CorD 61 / June 2009

opment is promising. Mistakes are something I wish not to talk about, as every democracy has the right to make a mistake or two. You are an expert on international law, held in high regard both domestically and internationally. How do you view the legal status of Serbia following Kosovo’s secession? Kosovo claims to be independent, yet it has only been recognised by a minority

Kosovo was one of the reasons for the democratic changes at the end of the 1980s and the beginning of the ‘90s. Have those changes realised their full potential? How do you see the political image of the Balkans today; what could be better and what are the greatest challenges? The democratic changes that took place in the ‘80s had a lot of sources. That process is still ongoing and is far from completed. The political image of the Balkans today is that of a region in transition. The region has gone through part of transition, but that is

likely just a smaller part of the path towards full democracy and free market economy. I believe more could be done to resolve some concrete political issues, such as the constitutional regulation of the status of Bosnia & Herzegovina. That country is probably one of the greatest challenges in the region. It is my wish that there be an agreement between the two entities that exist within the country and between its political forces. I also wish the international community help that process to become stronger than it has been.

with them, politically and particularly in the economic domain. I believe our experiences can help all of those countries in their preparations to enter the EU. Slovenia is known in the European Union as one of the loudest voices in support of that process. In that sense, I can say the Slovenia used the potential it has well. On the other hand, I was never one of those who thought that Slovenia was especially well-qualified to solve the problems of Southeast Europe. We do have a certain amount of knowledge of the situation, but we never had the appropriate means to do more. We should also not underestimate the role of other countries that were very active when it comes to problem solving in the Balkans.

ruled by an “Iron Boot”. Would you agree with that? Not at all. I think that the nations of the Balkans have had periods of peaceful unity throughout history and such a way of life will prevail in the future. The idea of the “Iron Boot” has no future in the Balkans. Many observers suggest that progress in Serbia is happening too slowly or isn’t really happening at all. It seems as though the people in Serbia find the idea of a more oppressive regime – not so different to the pressure between 1945 and the 1990 – acceptable. Do you believe that dictatorship is sometimes necessary to build foundations of long-term stability and democracy? Dictatorships never bring anything good. I believe that in the case of Serbia as well, political pluralism and debate are the only way towards progress. Serbia has that today, but it would be good if it sent its historical myths to the museum more quickly.

What is the most significant advantage of Southeast Europe when compared to other, developed regions? It is hard to talk about advantages, but I believe this region has rich experience which can contribute to different ethnic groups and Serbia has a different system than Slovcultures living in greater harmony. I also be- enia, functioning as a presidential republic lieve that the tragic experience of the ‘90s as opposed to a parliamentary republic helped to consign nationalism to the rubbish like Slovenia. Which option is closer to dump of history. There have, after all, been you: Would Slovenia, perhaps, be better times of good cohabitation of the nations in suited to a presidential and Serbia a parthe Balkans. We must remember Serbia has to deal with a heavy legacy those times and layout a space for common life in the future. of history and national mythology.

I How would you define the role of Slovenia among the countries formed during the collapse of the former Yugoslavia? Did Slovenia, during the wars of the ‘90s and immediately after that time, use all the political and economic potential at its disposal as a result of its historic connections with the five republics? If we look at the overall picture, Slovenia behaved wisely and rationally. It helped as much as it could have, but it is necessary to understand that the political problems caused by the wars in former Yugoslavia were of such a nature that engaging the superpowers was necessary. Slovenia, after the wars, made connections to all of the former Yugoslav republics and is collaborating well KOSOVO The changes that took place in Kosovo already created the basic conditions for peaceful development.

think the current democratic development is promising liamentary republic? Every country chooses the political structure that it finds most suitable. In the case of Slovenia, the parliamentary republic is surely the most suitable. The role of the president is limited in such a system and it should be. However, I would not like to offer any suggestions as to how Serbia should arrange its political system. I believe that the Serbian nation, given its long historic and political experience, knows how to find the best solution. It seems that many different players at numerous different levels are suggesting once again that the Balkans can only be

SERBIA Slovenia is most certainly among those EU members that want to see Serbia progress as quickly as possible.

How do you see bilateral relations between Slovenia and Serbia? They are very good.

Do you believe Serbia and Slovenia have forgiven each other for the “sins” of the early ‘90s? Did Serbia forgive Slovenia for its secession from Yugoslavia and has Slovenia forgiven Serbia for its territorial ambitions, which most of Slovenian historians see as one of the key reasons for the wars of the former Yugoslavia? I think we have largely moved beyond those issues when it comes to practical politics. We can safely say those issues belong to history. It is good that historians explore all the aspects of that era, but I do not believe there is any burden on our current political relations. Belgrade is extremely popular among

CULTURE We in Slovenia could do more to broaden cultural connections with the countries of Southeast Europe. CorD 61 / June 2009 11

EXCLUSIVE INTERVIEW |

young Slovenes. Even when members of older generations of both nations are in contact, much warmth can be felt. Is that due to the fact both countries have less than brilliant relations with Croatia or because Slovenia is aware that Belgrade is the capital of the region that Slovenia itself is, to an extent, a part of, and because Serbia is aware that Slovenia is its kindest, most familiar “window to the West”? I feel that there is a lot of genuine warmth and sympathy between Slovenes and Serbs and those sentiments have been like that for a very long time. That is a positive historical heritage, which exists today and has a great future. Please take into account that I took part of my studies in Belgrade many years ago and I have the finest of memories from that time. I also had many friends in Belgrade’s intellectual circles. Most people from Slovenia have their own story to tell in connection with Serbia, particularly from the time of more intense communication between the republics. I believe there are many people who have beautiful memories of that co-operation. Today’s generations also have good experiences and there is no reason to have any prejudice, grudge or ill will to burden our relationship. Serbia extradited Radovan Karadžić to The Hague Tribunal for the former Yugoslavia, but that didn’t earn it a place among the Schengen white list countries. Do you believe it is necessary for Serbia to extradite Ratko Mladić before it can have a non-visa regime with EU member states, or do you feel that Serbia, due to the visa regime, has been isolated for too long and that the EU is sending the wrong message? I stand for abolition of the visa regime and free travel. That is also the way to ensure the best possible conditions for democratic debate and development, since freedom of movement is one of the key human rights and should be enabled internationally within Europe. I do not wish to take this point too far, as we know that it is necessary to fulfil certain conditions in order to have a visa-waiver regime. The failure to locate Ratko Mladić is most certainly not an advantage to removing obstacles hindering co-operation between Serbia and Europe. 12 CorD 61 / June 2009

President Türk with Slovenia’s First Lady, Barbara Miklič

A lot more could be done in Slovenia when it comes to assuring minority languages are taught, while more could be done in the media domain and some other arenas Is Slovenia’s vision of Serbia’s future consistent with that of the European Union? There are more than 10,000 Slovenes living in Serbia and more than 600 Slovenian companies are doing business here. It is, therefore, difficult to imagine that Slovenia would want Serbia to stand outside the doors of the EU, which sometimes makes the public feel as though it is not best prepared for Serbia. What is your opinion? Slovenia is most certainly among those EU members that want to see Serbia progress as quickly as possible. Included in that are our efforts to abolish visas and have the Trade Agreement function. We want this to happen as soon as possible and will continue with our endeavours towards that goal within the European Union.

There are tens of thousands of Serbs living in Slovenia. Together with members of other nations that have origins in the former Yugoslav republics, that number well exceeds 100,000. You are an expert on minority issues, as they were the focus of your early work. How do you see the position of the minorities from the five republics of the former Yugoslavia that now live in Slovenia? It is necessary to take into account real differences that separate the autochthonous minorities from those who are a consequence of recent migration. There are very real differences in the needs and inclusion of different minorities into society. A lot more could be done in Slovenia when it comes to assuring minority languages are taught, while more could be done in the media domain and some other arenas. I believe those are the priorities. I also believe that success in seeing those priorities through would give us grounds to think about the necessary statutory solutions of the position of groups from all the former Yugoslav nations. I also suggest that we could have, as soon as possible, an advisory body between organisations representing those communities and the Slovenian government. I think such a mechanism would bring about conditions for resolving practical issues and, later, resolving other matters. During your work, have you witnessed Slovenian nationals discriminating against nationals of other former Yugoslav republics, or have you ever, as a Slovene, been discriminated against in such a fashion? As a Slovene, I have never felt discriminated against. Not in Europe, nor in the U.S., where I lived. I think every individual can do a lot for him or herself not to be discriminated against. Regarding nationals from the former Yugoslav republics, I think that if discriminatory practices appear it is not based on ethnic factors, but more on social standing and the nature of their employment. I know many workers experience injustice and I am opposed to that, but I do not believe that injustice in that case is connected to ethnical background, but rather to a lack of understanding about what free market economy is and the perception of capitalism as it was in the recent past.

QUOTATIONS Vice President Biden and I have agreed that now is the opportunity to establish a completely new level of communication between our two countries. I am convinced that a lot can be achieved via a dialogue based on mutual appreciation.” Boris Tadic, Serbian President, speaking during the visit of United States Vice-President, Joseph Biden

The United States does not, I emphasise, does not expect Serbia to recognise the independence of Kosovo. This is not a prerequisite for our support to Serbia becoming an EU member. We think that we can agree that we disagree (on Kosovo), providing that we have reasonable expectations from each other.“ Joseph Biden, U.S. Vice President

The American VicePresident is coming to visit Kosovo as an independent country, to confirm the violent secession of a part of the territory of the state of Serbia and its transfer into the hands of terrorists, who, unpunished, committed countless crimes against Serbian people, property and religious and cultural heritage.“ Raško-Prizrenski Bishop, Artemije, commenting on the visit of U.S. Vice President, Joseph Biden, to the Dečani Monastery

The time has come to do everything to bring down the borders that separate the Balkan countries from the EU. That’s why I believe that abolishment of the visa regime for Serbian citizens is

feasible by the end of this year.“ Franco Frattini, Italian Foreign Minister

We agreed that although we don’t see eye to eye with regard to the unilateral declaration of Kosovo’s independence, we have to be pragmatic and open up other venues where we can cooperate together.“ Serbian PM, Mirko Cvetković, speaking during the official visit of Montenegrin President, Filip Vujanović

We should be the two closest countries in the international community“ Montenegrin President, Filip Vujanović, speaking during his official visit to Serbia

New elections are inevitable, but it is difficult to anticipate when they are going to be scheduled. The opposition needs to be united in bringing down the government.“ Velimir Ilić, President of New Serbia political party

If we are talking about tourism, the Serbian Radical Party (SRS) views Montenegro’s sea as a Serbian sea and, of course, Serbian citizens should go there“ Nataša Jovanović, SRS official

The people that are well off will be able to buy Merix or Duel instead of Ariel, while the majority of ordinary people will have to cut back on every day things, like toiletries, food, fuel... In short, people will be hungry.“ Jorgovanka Tabaković, Serbian Progressive Party official

I know a lot about Serbia and I’ve heard that people there meditate a lot“ David Lynch, U.S. film director

The way we have functioned so far was – take out a loan, privatise, take out another loan (here or abroad) and build a social country at any cost. This will no longer be acceptable“ Radovan Jelašić, Governor of the National Bank of Serbia

Although the law was passed last year, Serbia is seriously lagging behind Europe when it comes to protection of personal information“ Rodoljub Šabić, Comissioner for Information of Public Importance

Serbia will be in grave danger if it goes through another brain drain, maybe even more ’lethal’ than the one from the 1990s“ Božidar Đelić, Deputy Prime Minister

It is unthinkable that in 21st century Europe there are still regions that do not have control over their property. The worst example of this fettered independence is the sale of NIS, a company which has 90 per cent of its property located in Vojvodina. If the provincial authorities had been consulted about this sale, we would certainly never agree to a price of 400 million euros for something estimated to be worth to at least two billion euros“

money, which is quite possible because the state’s financial obligations towards them are regulated to a lower level, due to the financial situation. Still, some of the universities do not even care about future costs, which is not the way to behave.” Žarko Obradović, Eduction Minister

A few days ago a man called me saying that if we don’t pay his electricity bill he will go on strike in front of the Ministry. There is another man who said that he would cut off his ear and send it to me if I didn’t give him 2,000 euros.“ Rasim Ljajić, Labour and Social Policy Minister

I told the Australians that I would kill their ambassador to Serbia if they don’t locate and punish the man who is spreading lies about me and Jelena. I’m a veteran of the war with the Ustashas and I have weapons“ Damir Dokić, father of former World No. 4 tennis player, Jelena Dokić

In my office I have a photograph of the former president and leader of the Socialist Party of Serbia, Slobodan Milošević, and I will not take it down, no matter what“ Aleksandar Antić, Chairman of the Belgrade Assembly

Laszlo Varga, Alliance of Vojvodina Hungarians

I think that it is not really important how much something costs, but it is important to spend a nice evening“

The question is whether universities really do not have the

Radmila Hrustanović, Deputy Belgrade Mayor CorD 61 / June 2009 13

Dr Bojan Pajtić, President of the Executive Council of Vojvodina

Vojvodina’s Statute

must be adopted Adopting the Province’s Statute is by no means associated with the regionalisation process, which could be stipulated in a new Republic of Serbia Constitution By: Jelena PETKOVIĆ

he media have been buzzing for months about the conflicting views of Belgrade and Novi Sad. The Vojvodina Statute, also formerly known as

14 CorD 61 / June 2009

the Principle Law, has been on hold in the Republic’s Parliament for months now. The dispute over the decentralisation of power wouldn’t be that interesting if the President of the Executive Council of Vojvodina, Dr Bojan Pajtić, wasn’t also one of the leading

figures in the Democratic Party. In an exclusive interview for CorD magazine, Dr Pajtić refutes claims that there is a row, but insists that Vojvodina needs to have a statute, as adopted by the Vojvodina Parliament. The only question that hasn’t

INTERVIEW |

OPPOSITION

ith regard to the statement made by SNS and some other opposition parties, bear in mind that these are the parties that have completely lost support in Vojvodina and their political thesis is just an attempt to regain the voters’ trust in Vojvodina. been answered is that relating to the views of the Democratic Party’s coalition partner – the Socialist Party of Serbia (SPS), which claims that the Statute, in its current shape and form, contradicts the Constitution. When is Vojvodina’s Statute going to be debated in the Serbian Parliament and is it true that the adoption of the Statute is going to be postponed until a new Serbian Constitution is adopted? Adopting the Province’s Statute is by no means associated with the regionalisation process, which could be stipulated in a new Republic of Serbia Constitution, since the existing Constitution clearly defines that both Provincial and Republic Parliament are legally obliged to adopt Vojvodina’s Statute. It is also up to the Serbian Parliament to fulfil this obligation and facilitate the harmonisation of legal regulations at both the provincial and republic level with the new Serbian Constitution. The Provincial Parliament adopted the Statute seven months ago, while the Republic Parliament was obliged to validate it by the end of last year. Could this delay be interpreted as the Statute’s debacle, as claimed by the Serbian Progressive Party (SNS)? The timeline for adoption of the Statute at the provincial level is clearly defined by the Constitutional Law. Unfortunately, this law does not stipulate the same for the Republic

EXTREMISM

MANAGEMENT

EMPLOYMENT

We should certainly ﬁght against any form of extremism, since every extremist movement is a menace to society.

Management bears responsibility for business results and the state is accountable only if it has irrationally burdened a company

During the ﬁrst month of the implementation of the employment programme, close to 2,800 young people found jobs CorD 61 / June 2009 15

INTERVIEW |

Parliament. In that respect, the Republic Parliament is not required, formally and legally, to validate it by the end of the year, nor is it limited to do so by any deadlines. Regardless, it is extremely important to conclude this process as soon as possible. With regard to the statement made by SNS and some other opposition parties, one must bear in mind that these parties have completely lost support in Vojvodina and their political thesis is just an attempt to regain voters’ trust in Vojvodina. What is your view of relations between Belgrade and Novi Sad and have you been given any guarantees that PM Cvetković’s government is going to reimburse Vojvodina with money promised following the budget review? I reached an agreement with Mr. Cvetković for half of the amount paid for NIS to be transferred to the provincial budget and this has been honoured. With regard to the funds from the budget review, they are also going to be paid to the provincial budget. Of course, the provincial budget, as well as that of the republic and those of local self-governments, is not immune to the global economic crisis, but we have to maintain our priorities. We are certainly not going to give up on creating new jobs, since we’ve been pioneers so far in fighting unemployment and have achieved the best results in this area not only in Serbia, but the region too. We are also not giving up on our second priority of continuing to make significant construction investments via the Capital Investments Fund of Vojvodina, since infrastructure is the main prerequisite for further development and because investing in infrastructure means engaging 27 different economic branches. When is Vojvodina going to open an economic mission in Brussels? I have repeatedly said that, at this time, Vojvodina’s needs are not at the level that would require an economic mission to be set

Vojvodina’s needs are not yet at the level that would require an economic mission to be set up in Brussels. up abroad, though this will certainly become a necessity once Serbia is granted EU candidacy status. There are currently 317 regional offices in Brussels and practically every single region in the EU or among EU candidate countries has a representative office in the European Union’s capital city. Is the global crisis being felt less in Vojvodina, due to the virtually unaffected demand for food? The global crisis is being felt everywhere, but at this moment the unemployment level is not above usual figures for the province. Statistics shows that our economy is proving to be quite resilient. It seems as though current activities be-

BUDGET

ith regard to the funds from the budget review, they are also going to be paid to the provincial budget. Of course, the provincial budget, as well as republic one and the budgets of local self-governments, are not immune to the global economic crisis, but we have to maintain our priorities. 16 CorD 61 / June 2009

ing carried out by the authorities regarding employment, primarily that of young people, are no more than a marketing move, since there aren’t enough jobs to go around. When do you expect the first signs of recovery to become visible? I am not in a position to comment on the activities carried out by others, but I can say that our activities, as in the provincial government, are certainly not just a marketing move. During the first month of the implementation of the employment programme, close to 2,800 young people found jobs. This is a good number and if we continue in this way we could create around 20,000 new jobs via the various support programmes for job creation, assistance programmes for trainees and programmes to support the establishment of new individual agricultural estates. We are also continuing to implement programmes that have proved to be quite successful so far when it comes to employment, like the new technologies and materials’ programme, which led to over 16,000 people in Vojvodina finding work in only two years. I would like to outline that we have seen a substantial decrease in the unemployment rate in Vojvodina in the last few years, with the province’s unemployment rate in 2007 and 2008 much lower than in the rest of Serbia and other countries in the region. What is your view of demands that extreme political movements be banned – the likes of which are particularly prominent in Vojvodina and Belgrade? We should certainly fight against any form of extremism, since every extremist movement, regardless of how large or small, is a menace to society. We have seen what such organisations are capable of in the past. Nevertheless, they should not be underestimated. Even Hitler’s National Socialist Party seemed, at the beginning, like a small bunch of grotesque extremists, but we all know what that resulted in. To this day, German society is trying to tackle this problem, because it has been ignored for such a long time and they did not react to it on time. This is why we should be very cautious and react strongly to any form of extremism. Could you envisage Vojvodina becoming an EU member before Serbia? Vojvodina is a part of Serbia, so, no, I can-

not envisage such a situation. In your opinion, what are the first positive results to come out of NIS after the company’s sale, primarily in terms of Vojvodina’s economy? It is too early to talk about evaluations and the effects of NIS’s privatisation, since Gazprom acquired a majority stake in the company only recently. The following months, i.e. the period ahead of us, will yield a response to that question. In certain industrial centres, such as Pančevo and Zrenjanin, the situation has reached boiling point. Petrohemija is on the verge of shutting down its production,

STATUTE The timeline for the adoption of the Statute at the provincial level is clearly deﬁned by Constitutional Law

while certain investors have been withdrawing. Is the inept local government to blame for this? We should not blame the local authorities for a bad situation that certain companies found themselves in. We should never excuse the management by blaming local or some other authorities for a company’s demise. The management bears the biggest responsibility for a company’s business results and the state can be held accountable only if it has irrationally burdened the company’s production process through its actions. Foreign diplomats often visit Novi Sad. Does this mark the beginning of decentralisation in Serbia, even before the institu-

DIPLOMATS I ﬁnd it perfectly logical that foreign diplomats are coming to Novi Sad, which is the second largest city in Serbia

tional regulation? I find it perfectly logical that foreign diplomats are coming to Novi Sad, which is the second biggest city in Serbia. With regard to decentralisation, this is certainly a process that will have to be regulated in the future, since a state cannot function properly as a strictly centralised entity. Decentralisation is a prerequisite for state development, for balanced regional growth and a more efficient state administration. Are you going to visit Exit or Guča? I plan to go to Exit, since Exit is taking place in my town, so that is quite convenient for me. It gives me great pleasure to watch the festival grow year-on-year.

VOJVODINA The global crisis is felt everywhere, but statistics show that the economy in Vojvodina is proving to be quite resilient. CorD 61 / June 2009 17

INTERVIEW |

Goran Pitić, Chairman of the Managing Board of Société Générale Banka Srbija

HOW TO SAY ‘N

“I don’t believe that interest rates will be reduced in the next period, as there are still no tangible signs of a global ﬁnancial recovery.” By Vladan ALIMPIJEVIĆ Photo Slobodan JOTIĆ

his month we are talking to Goran Pitić, a former government minister who is also one of Serbia’s most distinguished economic experts and the senior executive at one of France’s largest banks. In the last few months, Pitić has been questioning the credibility of the Serbian Government and his objections have been

18 CorD 61 / June 2009

carefully noted, due to the simple fact that he is close to the authorities and is a very good friend of most government ministers. Do you think that the state authorities know what they are doing in response to this economic crisis? I think that the government has evolved in the last few months. With the latest set of technical measures, the government has exhausted most of the “ammunition” it could have used

to fight the crisis, i.e. to use budget funds to subsidise the economy and develop co-operation programmes with the banks, thus increasing the overall solvency of the system. Some confidence in the system has been regained through measures related to the increase in deposits and things have been moving on from the standstill. When you look at each individual bank and how much money was spent on these solvency and consumer loans, we can see that the amount runs into several hundred mil-

O’ TO THE STATE lion Euros. In the context of technical measures, the government proved to be both fast and responsible in the last few weeks. The bad thing is that the crisis was treated rather lightly at the end of last year, which brought the very credibility of the government into question. Last year, signs were everywhere that the crisis was emerging. Most countries were faced with diminished growth, unlike us: we were operating under assumptions that proved detrimental. The primary budget was reviewed rather fast, which just showed that Cvetković’s government was neither adequately nor timely prepared to respond to the crisis. Cynics could suggest that the latest government measures had the least hold on banks’ profits; they left you plenty of room, so to speak? But this “room” had been properly regulated much earlier, since there are no cartels in the banking system. There is another French bank in Serbia, aside from ours, and we don’t make any coalition agreements with them, or anybody else for that matter. If we are talking about monopolisation on augmenting profits, we are not searching for an oligopolistic position in order to generate extra profit. There is competition that ensures that profit margins are reduced. We should not forget that a year ago there was a tendency to lower interest rates, following the central bank’s implementation of its primary policy on maintaining the inflation rate, which alleviated this reduction.

Today, interest rate growth is chiefly linked to the investment risk of the country and higher expenses associated with borrowing money from abroad. And I don’t mean EURIBOR when I say this, but the inter-banking market and more expensive funds. Including cross-border loans? Yes, and not only cross-border loans, since they are now less appealing than before because

Your bank is one of the very few that still grants loans in dinars. Yes, that’s true. We grant loans in dinars, but we have a policy I am very proud of that

It is important that the state authorities promised to clear out all debt.This could eliminate a bottleneck that the state itself created of the central bank’s policy. The central bank is giving priority either to local loans or cross border ones, depending on the required reserves policy. When you analyse the infamous story about huge banking profits, we can see that Serbia is far removed from that – at least compared to other countries in the region. When you take a look at the overall banking sector, the return on capital has averaged eight per cent. In countries such as Romania and the Czech Republic, profit was up to 20 to 30 per cent. This means that we are still in the zone that sees the banking sector operating well. Of course, we are generating profit, but not in amounts that are inappropriate and outrageous for normal standards. I would be more interested in making sure that the bank policy is such that it deals with the client longterm, assisting him when he needs assistance. I

OFFSHORE COMPANIES

O I

would like to see less unpleasant surprises for the client in the small print of documents relating to a bank’s policy and more assurance for the client that once he signs a contract with the bank he knows what is in store for him.

ne of the topics discussed at the London G20 meeting was offshore companies. Do you know more about these companies than the state? t depends. If a client wants to do business with us, it is mandatory that he shows us the original data about his business. The fact that a company’s head office is located in the Cayman Islands does not mean that the company is bad. When we work with companies that are considered ‘special purpose vehicles’ (usually construction or real estate companies), we insist on knowing who the real owner is. If someone wants to keep his portfolio masked, then he is not a client for us. So, it is possible that we know more than the state authorities, but if they want to find out more about these companies, they are absolutely free to do so.

has the client at the centre of it. We are now seeing many corporate and retail clients coming to us, because we do not change loan conditions after the contract is signed. If you come to our bank and sign a contract on a mortgage loan, the bank’s business policy has no bearing on it: the interest rate is stipulated in the contract and we are not going to increase your interest rate just because market conditions have changed in the meantime. Although we might have the lowest costs of all banks in Serbia, we have the most competitive interest rates, since we do not want to misuse this crisis. So, we haven’t raised our margins – they remain the same as before the crisis emerged. This is a policy that is profitable in the long run. Maybe some could suggest that we should catch up with the competition or our margins should be lower than the competition’s, so we could have a return on capital of 50 per cent, but we see things from our own perspective, which we had before the crisis, and we believe that because of that we are going to retain our clients even after the crisis abates. You say that you have easy access to funds. In which way does the loss that your mother bank posted in the first quarter of this year reflect on your operations? This should not be viewed as our mother bank’s operations being negative. Société CorD 61 / June 2009 19

INTERVIEW |

down by the end of the year? I don’t believe that interest rates will be reduced in the next period, since there are still no tangible signs of a global financial recovery. President of the Central European Bank, JeanClaude Trichet, recently told the Financial Times that certain countries have been showing signs of recovery and by that he meant Italy and France. Germany and Great Britain, whose banking systems were hardest hit along with the U.S., are still nowhere near recovery. This tells us that our country depends on the rest of the world, foreign capital and exports. This is an exogenous category which rests on global demand. We cannot influence it and, hence, I don’t think that our recovery will be a swift one.

Société Générale is a very conservative bank and the results that were shown as negative in the first quarter primarily relate to funds reserved for something that actually never happened Générale is a very conservative bank and the results that were shown as negative in the first quarter primarily relate to funds reserved for something that actually never happened. What we had were very conservative reserves for certain balance positions that were not perfectuated, but were conservatively included in the balance sheet to be compiled at the end of the year. We made a very rigid assumption as to the bank’s operations, while aspiring for better results in the future. Does that mean that you haven’t take funds out of Serbia? Of course we haven’t. We are one of the few banks that is counting on net borrowing this year independently from the crisis. The Vienna Initiative arrangement, which includes 10 banks, was a plea for the banks to maintain their portfolio from the end of 2008, but this was not a special request for us in any way. We have already made plans to set aside over 200 million for fresh borrowing. When you look at our bank’s capital and realise that we have had placements of over a billion Euros; when you see that we have approved hundreds of millions of Euros worth of cross border loans, you will see that we are among the top five banks on the market in terms of placements. Notwithstand20 CorD 61 / June 2009

ing the records that the National Bank of Serbia keeps with regard to cross-border loans, you can clearly see that the Paris head office has complete trust in Serbia when it comes to the mother bank investing its capital here. It is a well-known fact that loans in Serbia are two per cent more expensive than in the region, due to the country’s risk rating. Croatia is an EU candidate and this improves its position. The agencies that are in the business of ascertaining a country’s risk, which is the most important thing in determining the capital costs and in ranking the countries in the region in line with certain principles, always do that mindful of just how far along a country is on the path to joining the EU. If you are closer, that means that your system more closely resembles that of Europe, where the capital originates, and this will have a bearing on costs. When it comes to this, we are still lagging behind, hence our costs, i.e. the risk associated with the capital, is much higher. If we observed the structure of our economy and other economic parameters, then our risk would certainly be similar to that of Croatia. Bearing in mind what you have just said, does that mean that interest rates will go

Since the crisis emerged, Serbia has frequently employed administrative management measures and it seems the country is reverting to a centralised state-run economy. Such companies, which have the features of both market and state-ownership, are also your clients. Yes, it is a strange situation but it’s not unique to us alone. This is happening everywhere in the world, but the question is just how temporary we believe the state’s influence is or how long the state plans to remain as a permanent owner. The second question is how effective the state is in the area of governance and what its actual intentions are. Today, when you view the U.S. economy and see that the state participates with both preferential and ordinary shares, the question is just how much the state is allowed to meddle. Finally, one of the topics of last month’s G20 meeting in London was how to say ‘no’ to the state. This is not a question of liberalism or the state, of regulation or deregulation. We saw that the whole system failed due to a lack of regulation, not so much as a result of liberal economies. It is normal when the state feels that it can enter the economic mainstream more, but it is difficult to stop the state, especially in underdeveloped countries like ours. The State is used to being present in the economic sector; it likes to interfere and makes decisions, it likes to solve problems and if the state is the main cause of the problem then this, of course, is reflected in relations with the banks. I know that some banks like to have the state present, because risk is perceived differently in that case. The overall belief is that

the state is the last one to raise the white flag. Some banks prefer the private sector. We have received instructions from Paris to limit our co-operation with the state and we are not going find ourselves in a situation when the state issues bonds and we jump for joy because of it: the state gives us a good interest rate and why would I assess the risk in the private sector which, by very definition, cannot be better than the state? The state should be the benchmark of credit rating. So, I could say well done for the state issuing bonds and providing guarantees. The state, for example, provides guarantees for Serbian Roads, i.e. for the money it borrows from the budget. It seems that we could all live very nicely from the money generated through these state bonds. So, why are you withdrawing or limiting such activities? We are a commercial bank. Our bank’s policy is not to operate without risk. Our policy is to fund and service the private sector. It is not our aim to profit from the state. As a universal bank, we work with corporations, citizens and the state. So, our logic is

the standard logic of any bank, i.e. to have the right balance of everything that exists on the market. There are banks that like to deal with risky companies backed by the state, but we always concentrate on the risks related to the primary business. Regardless of the state’s involvement, our standpoint is purely commercial. So far, the state has been promoting all kind of subsidised loans. What is your take on that? For us, this is a loan just like any other. The subsidies are just a form of financial incentive provided by the state, but when we consider the risk we apply the same criteria as in the case of other kinds of loans. It is completely irrelevant to us whether the interest rate is five or ten per cent, since the key elements are the client’s quality and the commercial risk carried. The state will stop the subsidies at a certain point and we will be left with a client. Société Générale advocates long-term partnerships. The assessment of a client’s solvency relates solely to commercial risks and not the opinion that the state has of it.

When you walk around that impressive building of yours in New Belgrade, do you ever stop, look at your employees and wonder if any of them could gamble on suspicious transactions with the bank’s money? No, because the development of the financial system here does not allow for these types of transactions. We are not exposed to extensive financial scams. Following the arrangement with the IMF, it is important that the state authorities promised to clear out all debt. This could eliminate a bottleneck that the state itself created. When you see in our portfolio just how much we are engaged in stock exchange trading, then you see that custody is a minor in this portfolio. We have good news following bad: we are underdeveloped, but due to this insufficient development we cannot be exposed to such havoc that, let’s say, Kerviel caused, since you are probably thinking about him. This wasn’t an isolated case, but it did prove that the financial system based on derivatives derivate; one that is not in tune with the real sector will eventually burst like a bubble. The future of the global financial system will be different once the system gets new architecture.

REGULATION

OFFSHORE

CLIENT

We saw that the whole system failed due to a lack of regulation, not so much as a result of liberal economies.

The fact that a company’s head ofﬁce is located in the Cayman Islands does not mean that the company is bad.

The assessment of a client’s solvency relates solely to commercial risks and not the opinion that the state has of it. CorD 61 / June 2009 21

INTERVIEW |

Michael Ringier, CEO of Ringier AG, Serbia’s top foreign media investor, talks to

WE NEED FREEDO Michael Ringier cites three reasons for his optimism: his company’s 176-year tradition, an unwavering belief in journalism and conﬁdence in the By Vladan ALIMPIJEVIĆ MRP compilation & edit Photo Časlav VUKOJČIĆ

One certainty is that we’re going to invest much more into the Internet.

peaking to CorD this month, Michael Ringier, CEO of international media enterprise Ringier AG, discusses the state of the print media industry globally, his personal optimism and media freedoms.Swiss media company Ringier AG is a truly international player, with around 8,000 employees spread over a dozen countries on two continents. It boasts more than 100 print publications worldwide and also has considerable interests in the broadcast media industry. Here in Serbia, Ringier owns Blic, one of the country’s top dailies, and its subsidiary publications, as well as popular weekly NIN, which Ringier recently acquired. After acquiring weekly NIN, Ringier has become the biggest foreign investor in the Serbian media. Do you think you are still lacking anything in Serbia? We are always missing something, and on the Serbian market there are definitely other things we would like to acquire or launch. However, I hope you understand that I cannot tell you exactly what we have in mind. But would you consider expanding into online or TV media in Serbia?

In terms of short and long-term prognoses, is there a major difference between your operations here in Europe and over in Asia? Yes, there are big differences. Overall the markets are not good, but in China, for instance, there is much more optimism. Indeed, it’s probably the only place I’ve been to in the past couple of months where I’ve found at least some degree of optimism. All of the other countries are more or less depressed. The Czech Republic and Slovakia are doing quite well, while Romania and Hungary are not doing well at all, with Hungary’s economy having nearly collapsed altogether recently. You said at a recent press conference that we should expect the first signs of economic recovery in mid 2010. What do you think of the long-term prospects of the print industry in Europe? I see them improving from very difficult to just difficult, but it will remain difficult. Even on the U.S. market, which you’re not present on? Every market is different. There are countries with a very strong tradition of reading newspapers and others without much of a print media

tradition. This always makes a difference. Furthermore, there are countries that are highly advanced on the Internet and others that are not. So, every market will be different, though

INTERNET

JOURNALISTS

FREEDOM

I love the Internet and

No one talks more about

We need rules to ensure

this is precisely why I

newspapers’ fate than

freedom of the press,

understand its limits.

the newspapers them-

but we also need rules

Indeed, it is limited by its

selves. Journalists cel-

ensuring the personal

absolute boundlessness.

ebrate their own demise.

freedom of people too.

22 CorD 61 / June 2009

o CorD

OM OF THE PRESS

in the very long-term I think that development will end up being more or less the same all over. We’re seeing a certain switch from print to the Internet, but print will remain. There is no question mark over the future of print media? No, I can’t see that. As long as the technology offers advantages, I don’t see any reason to be too pessimistic; print offers its own advantages. What impresses when looking at a com-

pany like Ringier is the apparent process of making strategic decisions and the fact that it has almost two centuries of development behind it. Does decision-making differ in your company compared to others? There is definitely a big difference between being a public or private company. A private company can go for long term decisions. For example, we have invested ten years in Eastern Europe without making any money. This would be extremely difficult, if not impossible, for a public company; if Ringier were public, they’d probably have

thrown me out as the CEO by now. There were many reasons against our moves to invest in Romania in the early ‘90s, or even in Serbia, but we believed in those investments and that’s probably sometimes a reason why we’re successful. There are two prominent theories about media control in Serbia. One recommends self-regulation of the market, while the over calls for the government to set rules and increase the possibilities of profiting on the market. CorD 61 / June 2009 23

INTERVIEW |

There isn’t a single truly self-regulating market in the world; not one! The press market, like every other market, needs its own rules. Just as the textiles market has regulations, so we need some. We need rules to ensure freedom of the press, but we also need rules ensuring the personal freedom of people. The press should be able to write many things, but not anything. I’m totally opposed to the notion of direct government financial support for media. Any government in the world would like to be involved in media, but that’s not a good thing. Do you think there should be greater regulation of the law on advertisements or the text law? Of course there is always some room for new ideas, but the most important thing is that

we have good infrastructure. Distribution is absolutely key. What the government can do, for example, is to lower VAT. We have very positive experiences with little or no VAT for books, newspapers or magazines. That could be a means of supporting the press industry. Do you have this kind of support in Switzerland? We have very little support, just on the distribution side. This is because the printed press has always made good money and there has never been a need. Switzerland is a very efficient country, which helps the press a lot: we have great infrastructure. You mentioned freedom and journalistic freedom. Having a background as a journalist yourself, how would you compare

press freedom in the regional countries where you’ve invested: Hungary, Romania and Serbia? The legal situation is not very different from that of many countries and the great advantage that we found when we started doing business in Eastern Europe back in 1990 was that freedom of the press existed. In some countries there was even too much freedom of the press. The work of journalists has to be conducted within a legal framework and most of the legal frameworks are okay. The problem is more that there is a tradition in many eastern European countries, perhaps more so than in the west, of politicians being actively involved in the media: having media power, calling the editor-in-chief or the publisher, etc. That’s something we have to be vigilant about. We must keep politicians out of the media. And finally, what are your annual sales percentages? We have overall between 55 and 60 per cent advertising and 40 to 45 per cent distribution revenues. This is a little bit volatile and I expect there will be less advertising revenue this year. That said, this is a healthy ratio of income. Are you generally expecting the average ratio to be the same? I guess it will be somewhere between 50 and 60 per cent, yes.

THREE REASONS FOR OPTIMISM

peaking at a press conference in Belgrade in mid-May, Michael Ringier said: “If you look at our last year’s annual report, with 800 pages and weighing almost five kilos, and compare it to the new one, you will find more or less mirrors of the economic reality of the past two years. For the next annual report we are still looking for an artist with the ability to condense figures and art onto a single piece of paper, in order to reflect the results we may have to expect this year. “The first reason for being optimistic is the long history of our company. In 176 years it has so far successfully lasted through five new generations, two world wars, countless recessions, the birth of television and any number of doom’s day scenarios that were predicted. Knowing this, the current ownership and management generation is unquestionably going through the most difficult time it has ever experienced at the helm of our company. “The second reason for my optimism is my unshakeable belief in journalism, though I should add that my idea of journalism and all the things I read these days do not always coincide. A perfect example of this is the newspaper crisis. Doom’s day scenarios

24 CorD 61 / June 2009

seem to have a fascination of their own, especially for those directly involved. No other medium talks more about newspapers’ fate than the newspapers themselves. Journalists celebrate their own demise in a way that could even teach Titanic movie director James Cameron a thing or two. “The third reason why I’m optimistic about print publishing is the Internet. I’m not saying this as somebody who is nostalgic for the days of before; somebody who uses Herma-3000 to demonstrate how open-minded he is to technology. I am speaking as a chairman of the board who, after finishing his day-to-day duties, spends two to three hours of every day emailing, surfing the net and exploring Youtube or Facebook. I love the Internet and this is precisely why I understand its limits. Indeed, it is limited by its absolute boundlessness. We don’t have to go as far as Andrew Keen, perhaps the Internet’s harshest critic, and his provocative statement that “the Internet is primitive and monkey-like”, but when he talks about millions and millions of Internet users creating an endless digital forest of mediocrity in his book The Cult of the Amateur, I find it difficult to disagree with him.

profile

Žaklina Nikolić Kušić, CEO of the national branch of Publicis Group

Best time to invest in your brand Publicis, Europe’s oldest marketing agency, was founded in 1926 and today is the world’s fourth largest communication network

hrough the acquisition of the world’s leading agencies, Saatchi&Saatchi and Leo Burnett, the Publicis group recently became one of the most influential and dynamic business groups. The Belgrade branch of Publicis was founded in 1997. Žaklina Kušić, a graduate of Arabic Language and Literature, built her reputation in the European market by working at the SMS Bates Saatchi & Saatchi agency as Managing Partner and Creative Director for leading international brands, government projects and cultural institutions. In 1996 she founded her own agencies in Skopje and Belgrade, which became part of the Publicis network and are the leading agencies in the region today. In your opinion, how much is economic crisis affecting the operations of advertising and PR agencies in Serbia? To a great extent. Unfortunately, when troubles arise in companies, advertising budgets are the first to be cut. The crisis in our industry started as early as June 2008, especially in agencies that work with big multinational systems. As a precaution, many of them started saving money even though they had no objective reasons, while others tried to resolve problems from other markets through savings on this market…. All in all, there were drastic budget cuts in the media budgets, as well as advertising and PR.

Agency people are very adaptable and the period that we all went through here, which was much worse, taught us to turn on a dime and land on our feet Are we likely to see the number of agencies reduce at this time? If the crisis continues and lasts for a long period of time, there is a possibility. However, for the moment both small and big

Žaklina Nikolić Kušić, PR Pioneer

agencies have managed to survive the first wave of the crisis by reducing costs and their number of employees. Agency people are very adaptable and the period that we all went through here, which was much worse, taught us to turn on a dime and land on our feet. So I am sure that the majority will manage to survive regardless of the circumstances. I think we were less scared of the recession than our colleagues abroad. What is positive is that in the last few weeks we have felt a growing level of activity among the majority of clients, which gives us hope that the year ahead will not be as horrible as it first seemed.

Do clients fathom the importance of advertising and PR at this moment, or do they consider it an expense as opposed to an investment? Even under normal circumstances, many companies treat these budgets as expenses, not investments, so it is quite normal that in a crisis situation these budgets are the first to be cut, as they are considered an absolute luxury. On the other hand, for many reasons, this is the best time to invest in your brand, through communication with consumers, and earn a prime position on the market. Media have been affected by the crisis as well, so opportunities have opened up for better financial terms; the media are less overcrowded and the message is more easily accepted by viewers… all in all, you achieve more with less and when the crisis is over those who were not active will have to spend much, much more to achieve results that will be uncertain. CorD 61 / June 2009 25

xxxv

Marking the 20th anniversary of direct diplomatic relations between Belgrade and Seoul

TWO DECADES OF FRIENDSHIP

This month we speak to H.E. Shin, Doo-Byong, South Korea’s ﬁrst ever ambassador to Belgrade, and H.E. Kim Jonghae, incumbent Ambassador of the Republic of Korea to Serbia By Mark R. PULLEN Photo Slobodan JOTIĆ

oking that it was a long time ago when he arrived in Belgrade and he’s forgotten almost everything, H.E. Shin, Doo-Byong explains the situation back in the late 1980s, when relations were first established. “At that time we had been knocking on the doors of the communist countries for

26 CorD 61 / June 2009

several years as part of our drive to expand our political and diplomatic horizons. “Back in the late 1980s, Eastern Europe’s communist bloc was the only bloc with which we didn’t have diplomatic relations, though they all had relations with North Korea. As such, we tried to open the doors to direct diplomatic relations. The turning point and something of a milestone was that we hosted the Olympic Games in 1988. This event facilitated a greater exchange with the

countries of Eastern Europe. “Following the collapse of the Berlin Wall and the subsequent democratic reorienting of those countries, the doors to Eastern Europe were opened to South Korea. Indeed, one of the first countries to open its doors to Seoul was Yugoslavia and we took the opportunity to open our embassy here. I remember that the then foreign minister of Yugoslavia, Mr Lončar, was very positive about the establishing of relations.”

DIPLOMACY |

“Since the year 2000, the Korean government has provided Serbia with a total of three million US dollars in aid with a view to contributing to social and economic development.” That didn’t lead to the arrival of Korean investments in the then Yugoslavia? We didn’t have any relations with Yugoslavia before that, but after the establishing of the office here we intensified our relationship, both culturally and economically. This was particularly evident in the field of painted art, as we invited famous Yugoslav painters to Korea and organised an exhibition with 100 paintings, then Korean artists came over here to display their works in Belgrade, Sarajevo, Zagreb and elsewhere. We started with cultural exchanges at first, then economic exchanges followed and we had around a thousand commercial representative offices and branches of major Korean companies across Yugoslavia, including the likes of Daewoo, Hyundai, Samsung, LG, etc. When did things start to go wrong? In March 1991, when all of the real estate here suddenly belonged to the government. I stayed at the Intercontinental Hotel for quite some time and then we left. So, I was the first Korean ambassador to the Socialist Federal Republic of Yugoslavia and the last. How do you find the city today? This is my first visit since those times and I can say that it almost feels like returning to my hometown; I feel very sentimental. My favourite element of the culture here is painted art. I was introduced to some very good painters through the foreign ministry and I bought some, though I’m not rich enough to buy them all.”

Also commenting on the development of relations, current ambassador, H.E. Kim Jonghae, says: “Biologically, twenty years has connotations of maturity. Likewise, relations between Korea and Serbia have continuously developed towards that stage, even if there was some unavoidable interruption. In our life, if there are ups there surely will be downs. Every history develops through ups and downs. “Once Korean–Serbian relations have been solidly rooted in mature soil, I think we have to expand our horizon to the far-reaching metaphysical area transcending just economic figures and political exchanges or co-operation. In this sense, cultural exchanges between our two countries have to be more focused than any other area. Co-operation in the economic and political area is just a basis for enhancing our relations towards a more elegant stage. How is your country coping with the global economic downturn and when are you predicting that recovery will begin? Hit by the global financial crisis, the growth rate of the Korean economy also dropped significantly, but it shows some signs of stability this year. The slower economic decline has mainly attributed to the partial buffering effects on rapid contraction in domestic demand, brought on by improved financial market conditions at home and abroad and an aggressive economic stability policy, along with some improvements in export demand. If we consider the continued weakness of domestic

SEEKING PEACE

.E. Shin, Doo-Byong is currently writing his memoirs and one of the sections deals with his time here in Belgrade. “Unfortunately, the memory that sticks in my mind from my time here is that of war and I feel compelled to ask myself why we kill each other. War is a tragedy for all of mankind and we have to concentrate our efforts on trying to find ways to avoid this tragic occurrence and achieve peace, which is most important. “There is no such thing as stability in life; life is always full of risk and danger and these are the challenges we face. We, in the civilised world, should know how to behave in a crisis. We cannot eliminate all of the dangers, but we have to endeavour to eliminate danger when it arises and find out how to educate and reach understanding when there is risk of conflict. “There are many animals that kill their own kind and, unfortunately, human beings are among them. So, it is my mission to try to find out how we can put an end to this tragic practice and I believe it is our obligation to try to find some solution.”

demand and employment, combined with contraction in export due to the global economic downturn, it is too early to say if the Korean economy is starting to pull out of recession. The Lee Myung-bak administration has been devoting itself to rejuvenating the nation’s sluggish economy and creating new growth engines. Throughout Lee’s second year of power, the government has been carrying out its task under the slogan ‘turning the crisis into an opportunity’. The government expects the Korean economy to recover and make a turnaround in 2010. It plans to leave no stone unturned to make that happen. The government will keep momentum in green growth, reform of public organisations, deregulation and corporate restructuring. It will also expand support for low earners, enhance protection for contingent workers, maintain current levels of employment and create new jobs opportunities. The needed financial resources for this purpose will be mobilised through a supplementary budget of 28.9 trillion won or US$23.1 billion. What prompted Seoul to recognise Kosovo’s declaration of independence and how has that affected relations with Belgrade? What I can say is that Korea regards relations with Serbia as being more important than ever, even if Korea recognised the independence of Kosovo. The fact that in February this year, Vice Minister of Foreign Affairs and Trade, Shin Kaksoo, made a visit to Serbia and conveyed Korea’s CorD 61 / June 2009 27

basic position on this matter to some Serbian leaders is a good indication of Korea’s friendly attitude towards Serbia. Korea has highly appreciated Serbia’s efforts to cope with the Kosovo question through diplomatic, legal and peaceful means. We strongly hope peace and security will permanently take root in the Balkans. Is your government backing any transitional development projects in Serbia or is such funding being considered? As the world’s 13th largest economy and a member of the OECD, Korea has sought to provide more, better development assistance, commensurate to its economic standing and significance in global affairs. Building upon its own historical experiences of overcoming poverty and attaining rapid economic growth, Korea has strived to expand development co-operation and help meet international development objectives. To this end, Korea has continued to scale up its ODA (Official Development Assistance) and expanded its partnership for development. However, Korea’s ODA size is not big enough to meet worldwide demand yet. Since 2000, the Korean

“If politics is the neural system and economy is the circulatory system, then culture can be compared to the soul. A man without soul is just flesh...” government has provided Serbia with a total of $3 million in aid, with a view to contributing US to social and economic development. Every year since 2006, Korea has invited some Serbian government officers and experts to Korea for technological studies, though I would be happier if Serbians could have more opportunities to share Korea’s technology and development experiences. Aside from these programmes, the Korean Government has been implementing its ‘Project for the Improvement of the Business Process of the Business Registers Agency’, together with the Serbian Business Registers Agency. This project, worth US$3.2 million, aims to simplify the process of registering new investments, including foreign direct investments. Korea was, is and will continue to focus more on development projects conducive to the Serbian economy. You have placed more importance on cul-

CULTURE ON TOP

s part of its continuing efforts to promote cultural exchanges between Serbia and the Republic of Korea, the Embassy is organising a concert of two celebrated classical musicians from the two countries. Pianist Eugene Choi, who already graced Belgrade with her presence for a solo performance at the Belgrade Philharmonic Hall this April to mark the 20th anniversary of bilateral relations, will return to play alongside renowned local violinist Jovan Kulundžija this November at the Serbian capital’s Kolarac Hall. 28 CorD 61 / June 2009

tural co-operation. On the occasion of the 20th anniversary of mutual relations, do you have any special cultural events planned? If politics is the neural system and economy is the circulatory system, then culture can be compared to the soul. A man without soul is just flesh. Likewise, it would be a mistake to judge a country only by its politics and economy. Without understanding the accumulated way of life (culture) of the people of a certain country, we would see only hollow meat. In commemoration of the 20th anniversary of relations, I have tried to bring as many Korean artists as possible to Belgrade to provide Serbians with more opportunities to contact them through art. To begin with, the concert of world renowned violinist Ms Sarah Chang and the Belgrade Philharmonic Orchestra took place in January, attracting a large audience and media attention. There was another concert in April, a great piano recital by Ms Eugene Choi. The Embassy is hosting a professional Taekwondo demonstration team in September, as well as a concert of a classic music ensemble in September and a special concert of Ms Eugene Choi once again, this time together with famous Serbian violinist Jovan Kolundžija, in November. I hope these events contribute to enhancing Serbians’ understanding of Koreans.

| ADVERTORIAL

Delta Agrar: One of the region’s agribusiness leaders By implementing the latest technological solutions, Delta Agrar aims to create a brand that will be immediately recognisable from Moscow to London

comparative advantage of the Serbian economy lies in its agriculture and food production, which are among the few branches that have recorded surpluses in the trade exchange with foreign countries. Many agree with this claim, but in practice very few Serbian companies, with contemporary and technologically advanced production, compete on the global market. The consistent implementation of new technological solutions constitutes the principle that Delta Agrar, the leading agri-system in Serbia, operates on. The company was declared the country’s leader in the fruit growing sector at the recent International Agricultural Fair in Novi Sad. The agribusiness leader laureate in fruit growing is awarded by the Business Journalists Club. This year the award went to the project implemented in Čelarevo’s Podunavlje orchard, which operates within Delta Agrar. This apple plantation is organised in line with the latest technological solutions in the area of fruit growing. The plantation is protected against frost and hail and uses a “drop by drop” irrigation, as well as a remote GPRS reading of relevant parameters. The orchard is modelled according to the world’s most renowned apple producers from the Italian province of South Tyrol. If we compare this orchard with its “role models”, the orchard is far ahead in terms of its surface area – it stretches across an area of about 100 hectares, while the apple rows are over 300 kilometres long. For example, the distance from the beginning to the end of the orchard is equal to the distance from Belgrade to Budapest. The orchard in Podunavlje is the corner stone of another great Delta Agrar project that is seeing the export of fruit and vegetables from Serbia to the vast Russian market. To this end, Delta Agrar established a logistics-distribution centre called Delta Food Moscow in the Russian capital at the beginning of the year, which has already started distributing food and foodstuffs to the largest retail chains in Russia and Belarus. Both projects accurately reflect the business strategy of Delta Agrar. Production organised

Awarded for its fruit growing project, Delta Agrar now plans to conquer the Russian fruit and vegetable market according to the highest international standards is the foundation of everything that the company does. During the second stage, Delta Agrar embraces small producers and provides training for them, because the company considers this to be a useful business activity, as well as a social obligation on the part of the this largest agri-system in the country. That is why Delta Agrar, in conjunction with national TV operator – RTS, organised a free training course for apple growers on the Podunavlje agricultural estate, while using other leading media in the country to invite manufacturers to join the apple production, whilst guaranteeing that the company will purchase their entire yield over the next 15 years. Delta Agrar insists on co-operating with global agribusiness leaders in other business activities as well. This includes practically the entire food chain: from field to table. About 2,000 employees are engaged in primary agricultural production, agricultural trading, distribution and food production. When it comes to primary production, Delta Agrar cultivates about 17,000 hectares of land on five farming estates: Napredak in Stara Pazova, Kozara in Banatsko Veliko Selo, Topola

in Kikinda, Jednistvo in Apatin and Podunavlje in Čelarevo. The company produces corn, wheat, barley, sunflower, soybean, sugar beet, oilseed rape and various types of vegetables. Vegetables are grown over a total area of 400 ha. The irrigation system and the GLOBAL GAP standard are both applied throughout the entire estate. Pig breeding is carried out on five farms with a total of 100,000 pigs, while the centre for breeding gilts is located on the Napredak farm in Stara Pazova. Pigs are bred in line with the latest DanBred technology at the Centre for the artificial insemination of animals. Delta Agrar also breeds first-class milking cows, has a fish farm pond stretching over 550 hectares and, in co-operation with Danish company Vitfoss, produces high quality fodder. Delta Agrar collaborates with the leading global manufacturers in all agribusiness segments: Pioneer and Saatcuht Donau when it comes to seed, Syngenta, BASF, Bayer CropScience and Nufarm in agrichemical products, and DeutzFahr, Amazon, Kverneland, Accord and others in the field of agricultural machinery. Delta Agrar also has a network of 35 agricultural pharmacies. When it comes to the food division, Delta Agrar produces meat and meat products, flour and pasta, coffee, basic nutritional items and bottled water. Meat producer Yuhor from Jagodina, Danubius factory in Novi Sad, the Miona water factory, the Florida Bel packing facility and coffee producer Calido Café all operate within the Delta Agrar system. Through the applying of global agriculture technologies, staff development and continuously expanding know-how, Delta Agrar has become one of the largest agri-systems in the region. The company aspires to become operational in the wider international market, i.e. for the Delta Agrar brand to become recognisable from Russia all the way to Western Europe.

www.deltaagrar.rs CorD 61 / June 2009 29

INTERIVEW |

Rich McClear, Serbian Media Assistance Programme (IREX/USAID)

SURVIVAL STRATEGIES “I think the economic crisis is going to be a huge challenge for all media, but I think media here have to learn about operating more efﬁciently.” By Mark R. PULLEN Photo Slobodan JOTIĆ

erbia has one of the world’s most oversaturated media sectors and the country’s local media face an uncertain future as the global economic downturn begins to bite. However, with the support of USAID, Rich McClear and his team at IREX are seeking to help local media companies negotiate commercial waters and maintain their viability in changing times. Speaking about the need for Serbian media companies to cut staff numbers in response to the global downturn, McClear tells CorD: “When I go to media stations here I see larger staffs than in other places, which 30 CorD 61 / June 2009

will have to change to ensure survival. This doesn’t have to affect the quality of news, because I think we’re at a point in Serbia where we can trim the excess without cutting into the meat. However, that’s going to be a huge challenge during this period when further job losses will just exacerbate the crisis.” You’ve been assessing and reporting on the media here since 1997. How would you comment on the sector’s overall development? I suppose I have a lot of interesting and conflicting thoughts about the way media has been developing here. I knew where we were in 2001, then I saw where we were later when I came back to do an assessment for USAID in

2003/4, now I’m back again to see how things are developing in 2009. Looking back at 1997 and the way the media has developed here since, how would you compare your expectations to the reality on the ground? I expected the privatisation process for radio to be finished, but it isn’t. I expected a more stable market to have developed, for instance, I expected all the pirate radio stations to have been shutdown and they’re not...yet. On the other hand, I didn’t expect that there would be so many national television channels: there are five national commercial channels and six licensees, which is a lot in commer-

cial terms. The market has grown in the way I expected, which is good; some of the stations have become more professional as I expected, which is also good; as expected, some of the stations have become more commercial, which is also ultimately good for the health of the system. Another big change is that RTS (national Radio Television Serbia) looks a whole lot better than it did when I left and it is now the number one rated TV station. It seems that Serbia has an endless supply of broadcast media companies of all shapes and sizes. How unique is the scene here? Serbia has far more media companies than other countries. For instance, I think Croatia has fewer than 170 radio stations, while there are something like 500 in Serbia. It’s a hugely oversaturated market and I think it’s very difficult for people to compete with so many voices asking for the advertising dollar. Further complicating the situation in Serbia are the five national commercial TV channels and two public channels. When I left, local media had a fairly hefty share of the audience in Serbia, but now local television only has around a seven per cent share of the audience, while the national stations have gone up because there’re so many of them and they’re good. One of my main concerns is the viability and survival of local media, because I think that democracy always starts at the grassroots; people see something they can do locally, they do it and they feel empowered. However, they have to be aware that they can do that. How can local media remain viable in such a climate? We have to find a way to create new sources of revenue for local media, as we see the national media swallowing more of the advertising revenue. One of your programme’s three goals is improving the legal and regulatory framework. How are you hoping to achieve this?

“One of my main concerns is the viability of local media, because I think democracy always starts at the grassroots” We’re working with ANEM (Association of Independent Electronic Media) and, hopefully, NUNS (Independent Serbian Journalists’ Union), UNS (Serbian Journalists’ Union), ABC (Auditing Bureau of Circulation), the Media Association and others to try to see how we can improve both the regulatory and business environments for the media in Serbia. I think that is crucial. Part of that is digitisation, because Serbia’s going to have to shutoff the analogue signal by June 2015. Right now Serbia has the framework of a plan for that, but the digitisation of other countries has shown that local TV is sometimes priced out of the market. Digitisation doesn’t happen overnight: you have to run expensive dual systems without any extra advertising revenue and you don’t know what the costs of capitalisation are going to be; if there’s a ‘multiplex’ you need to know what the cost of renting on that will be while you’re still running analogue, as well as the cost of promotion and, finally, the extent of competition. I think a lot of companies here haven’t really given much thought to the whole digitisation process. Another area your programme covers is

CRISIS

SERBIA

ENVIRONMENTS

The economic downturn is a terrible time for stations and newspapers, while the fall of the Dinar also makes newspaper costs higher.

Serbia is quite unique. It has a really different legacy coming out of Yugoslavia than, for instance, the Czech Republic or Slovakia.

We’re working with ANEM, NUNS, UNS, and ABC to see how we can improve business environments for the media in Serbia.

business and commercial viability, as we’ve discussed. Is that made more difficult in light of the global recession? The economic downturn is a terrible time for stations and newspapers, while the fall of the Dinar also makes newspaper costs higher. As such, the kind of training we’re doing now on local advertising sales is crucial. The third part of our programme covers the kind of training we’ve always done to improve the skills of young journalists; just recently we ran a training session on finding local angles for the global economic crisis, where a journalist from Novi Pazar looked at the chances of the town’s fair closing and how that is linked to the global economy and would effect the local economy. How would you assess media ownership transparency and accountability in Serbia? I have mixed feelings on the Act that’s currently up before parliament. I’m simply not sure, especially in the concentration area, how the circulation of newspapers can be accurately measured: do you use the Auditing Bureau of Circulation or AdEx? There are many questions that I don’t have answers to. I obviously think that the ownership of media should be transparent and we should know who’s controlling and who’s behind which stations, or which stations or media companies are linked by ownership. It is a problem, but it’s a problem evident across the whole region. Ultimately, this is remedied by strong transparency laws and, frankly, fewer media so it’s easier to police and keep track of the market. CorD 61 / June 2009 31

INTERIVEW |

Richard Foan, Managing Director of ABC Electronic (UK)

REALISTIC ACCOUNTABILITY “Digital sold itself as the perfectly accountable medium 15 years ago, but it only achieves that if you put inﬁnite resources into that accountability” By Mark R. PULLEN; Photo: Slobodan JOTIĆ

omprehensive print and electronic media auditing is still in the development stages here in Serbia and the Western Balkans, but over in the UK it

32 CorD 61 / June 2009

has become part and parcel of the industry. Telling CorD about the development of media auditing generally since he joined the industry some 25 year ago, Richard Foan says: “auditing has become more needed and more thorough, while independence is even more important than it was. “When I joined ABC in 1984, there were nine

staff verifying circulation for about 3,000 magazines and newspapers. Now we have 100 staff verifying circulation for about 3,000 magazines and newspapers. Yes, the number of print titles is the same, but the work we do is much more involved because the industry itself wants more rigour in that accountability. That’s definitely a noticeable difference over the years.”

Will the comprehensive audit system ever fully replace sample-based media ratings? I don’t think so, because the two are complimentary. Sample based research can give you an insight into the type of audience, whereas circulation auditing in print gives you an idea of the volume of transactions. So, your type of auditing doesn’t look at the demographics of readership? That’s correct, though in the UK we actually do through an ‘extended certificate’. That said, the basic principle is that ABC certifies the circulation numbers, then others research who the readers are that consume those copies. When you now look at the online scene, you’ll see global companies doing the sample-based panel approach, but they’re doing so with mobile devices and different channels – whether they belong to the mobile phone companies or the internet itself – through Wi-Fi. That means you’ve just got more and more fragmentation, which requires a bigger sample size in order to be measured. The challenge for the samplebased approach is simply paying for a bigger sample that yields ever smaller chunks of data. That’s why the work we’re doing on the census side is essential for the future, because that’s the bit that everybody can afford. Do you think that what you’re actually getting is essentially clearer with web-based media, simply because you can calculate the precise number of hits, visits, etc.? It is definitely more accountable, because there’s much more information, but the challenge is making sure people understand the basis of that information. And I think that’s the role of the ABCs around the world: to bring transparency and trust to that data. You can talk about ‘users’ or ‘unique users’, ‘registered us-

BEHAVIOURAL TARGETING s this like when you visit the wbesite of a certain sport or club and then receive associated offers in your inbox? Yes. The targeting of advertising based on behaviour, just as you described, is now available and is not going to go away. The challenge is to make sure that the measurement of a website’s audience over a given period somehow reﬂects the real audience that you actually want to reach with the adverts.

Liviu Burlacu member of the Board of the IAF ABC ers’ or ‘active users’, but the trick is determining which one’s which and what that means. Digital sold itself as the perfectly accountable medium 15 years ago, but it only achieves that if you put infinite resources into that accountability. The challenge now is to be realistic rather than idealistic and have a sensible amount of money invested in a sensible level of accountability. Part of that is having spot checks to test whether

Why is the importance of ‘behavioural targeting’ increasing globally? We did an event a few weeks ago called ‘Interaction’, were we had around 250 people from the industry in the UK. We asked them to each put a penny in one of two bottles marked ‘yes’ or ‘no’ in response to the question of whether behavioural targeting is the future for online advertising. Some 80 per cent said that it

When you now look at the online scene, you’ll see global companies doing the sample-based panel approach, but they’re doing so with mobile devices and different channels people are counting the way they say they are, hence the role of ABC in that area. Do you envisage greater consolidation of web media ownership in the future? I think there will be a perennial attempt of the bigger players to control and own, but there will always be an uncontrolled parallel because the barriers to entry are so low. Members of ABC range from media buyers and advertising houses to publishers and industry bodies. How difficult is it to get those contrasting players to see eye to eye? It is a challenge, but it’s one I enjoy. Two good descriptions exist: Charlie Dobry called it “trying to lasso the moon” and I’ve also heard it described as “like herding cats”. Both are good descriptions, but at the heart of what we do is a desire to ensure we go at the pace that the industry wants. We don’t try to tell the industry what to do. Rather, we listen and then suggest what we think the best solution that fits those parties is.

was. IAD in the UK have developed standards for behavioural targeting for the same reason. A number of companies have asked us what standards can be put in place in terms of accountability and whether or not ABCe would certify those standards. So, I think all of the industry’s key players recognise the importance of behavioural targeting and the importance of trust, both from the consumers’ point of view and the advertisers. Do you think then that non-transparent operators will be found out simply because they’ll stand out from everybody else? I don’t know if they’ll be found out, but they might not be trusted. And I think that’s the more important thing. As the whole world economy changes the way business is being done, so the need for trust in business partnerships will be even stronger. And a simple way of demonstrating trust is to say that you’re prepared to be independently accountable. If you’re not prepared to accept that, people will start to wonder why. CorD 61 / June 2009 33

ELECTIONS |

27 EU members compete for places in the European Parliament

Extensive privilege

34 CorD 61 / June 2009

es, minor inﬂuence Unlike the European Commission, the European Parliament has no legislative powers: it controls expenditure, but not EU budget revenues By Slobodan ALEKSENDRIĆ

n the eve of European Parliamentary elections, it seems that voters from the 27 EU member states are starting to become more alert, though many of them will intentionally or unintentionally sleep through the elections and some voters in the EU still don’t know the exact date of the elections (4th to 7th June this year). The world is in the grip of the economic downturn and EU governments have been applying unpopular measures across the spectrum, while the army of jobless EU citizens is rising drastically and the gap between rich and poor is widening by the day. Many believe that the collective wrath of ordinary citizens could lead to a higher number of abstaining voters, with many of them even staging an organised boycott of the elections. It is widely believed that a poor turnout at these European elections – something of a recurring event since the first elections were held some thirty years ago – could lead to a record abstinence. When the EU had just 25 members, back in 2004, only 45.7% of people voted. Now, when the EU has 27 members and 375 million voters eligible to vote for 736 Members of the European Parliament (MEPs), many fear that the situation from 2004 could be repeated or become even worse. Such fears

only serve to confirm the declining trust of Europeans in their democratic institutions, i.e. it confirms the fact that Euro-scepticism is not simply the figment of a crooked imagination. During the time when the continent had two military / political blocks, world peace was something that European citizens held in high regard and Europe was financially and economically sound, most citizens found Europe to be an almost perfect place to live - despite it being small and relatively inefficient. However, once the EU became a political power with a tendency to grow into an intra-national state entity, EU citizens began experiencing problems with institutions that have been constantly growing and look set to continue with no resolution in sight. This was best manifested when the proposed EU Constitution was rejected by France and The Netherlands. At the time of the common European market, i.e. the first incarnation of the EU known as the EC, economic growth and the living standards of citizens were quite solid, while today just the opposite is the case. Such a situation, from the standpoint of the European Parliament, is juxtaposed to everyone who believes in the EU and its institutions, hence it is quite understandable why the fear that voters will abstain is growing. According to a survey conducted at the end of last year, with the crisis still in its infancy,

JOBLESS

PA R L I A M E N T

PRIVILEGES

The army of jobless EU citizens is rising drastically and the gap between rich and poor is widening by the day.

The EP is the only parliamentary body of the EU where members are elected via direct general elections.

Members enjoy privileges, including a good salary that makes this plum job a magnet for would-be MEPs. CorD 61 / June 2009 35

ELECTIONS |

ELECTION DATE

rom 4th to 7th June this year, the European Parliamentary elections will be held across 27 EU countries. Each country is allowed to pick the election date in accordance with its own customs or as their respective governments decide. For example, elections in Italy will take place on 6th and 7th June (Saturday and Sunday), while in th UK they will take place on 4th June, a Thursday, as is customary there.

by the Eurobaromètre agency, the EU’s image is not to the liking of many of its citizens. The survey revealed that only 45 per cent of EU citizens have something positive to say about the EU, while the remaining 55 per cent dis-

play mistrust, a lack of interest or even repulsion towards the Union. Today, that percentage of naysayers is undoubtedly even higher. It is with this in mind that political parties across the Union have set out to reverse the

POWER(LESS) PARLIAMENT

he European Parliament is the only parliamentary body of the EU where members are elected via direct general elections. Along with the Council of the European Union (Council of Ministers, comprised of ministers from all EU countries) and the European Commission (The EU’s executive branch), the European Parliament is a legislative body, set up by European institutions. The Parliament comprises 736 MEPs representing 492 million citizens from 27 countries. The European Parliament is the second largest parliament in the world (after the Indian Parliament) and the first transnational assembly. As of 1979, MEPs are elected for five-year terms.

36 CorD 61 / June 2009

current trend and convince their voters that the EU is the only way out. However, judging by media reports of pre-election activities, the image of MEPs, and the EU in general, is taking a hit. The Italian press says that, thanks to its current PM Silvio Berlusconi, Italy is recruiting mostly young, pretty, charming women, some even starlets, to be MEPs. In Bulgaria, meanwhile, in line with the good old Balkan tradition, voters have been bribed with tens of Euros each. Romania is set to be represented in the new European Parliament by a top model, Elena Basescu, who just happens to be the daughter of the Romanian chief of state. As for the locals, certain Flemish communities around Brussels intend to simply ignore the elections all together. With the exception of France, which sees its participation in the EU as some sort of political exile from the national political life, other EU members – granted, mostly the poor ones and those on the geographic fringes of the EU – have expressed the greatest interest in winning seats in the European Parliament. This is quite understandable, given that life is general easier in Strasbourg or Brussels (The West) than in, let’s say, Sofia. The lucky practitioners hailing from the poorer parts of the EU who become MEPs will see their personal living standards grow significantly. Members enjoy numerous privileges, including a good salary that makes this plum job a magnet for would-be MEPs. However, it is these very perks and privileges that are causing huge discontent and anger among prospective voters. They are aware that the Brussels administration is a spendthrift, rife with scandal, corruption, nepotism and other disruptive practices. Regardless of whether the progno-

NONAGENARIAN MEP CANDIDATE

obody knows the precise number of political parties that will submit candidates at the upcoming elections for the European Parliament. In Italy there are ninety such parties, while in Bulgaria there are over four hundred! In the case of Belgium, especially the Flemish community, there is very little interest in the elections, while in France - thanks solely to former justice minister Rachida Datti some interest has been generated in the elections. Datti became well-known after returning to work just a few days after giving birth to a child outside of wedlock. Allegedly, French President Nicolas Sarkozy wants Datti removed from the French political scene and plans to send her away to be an MEP. MEP candidates are generally young, but there are several older deputies competing for seats. The oldest candidate is Boris Pahor, a Slovenian native from Trieste and an Italian citizen. He is candidate of the Slovenian ethnic minority party – Slovenska skupnost. Pahor, 95, is confident that he will make it to Strasbourg.

sis that more voters will abstain from voting comes to pass or not, a new parliament will be formed and, for now, the layout of political formations within the parliament remains unclear. Currently, the two dominant groups are left centre and right centre. Whether this will remain the case largely depends on how the ‘new’ EU voters from Central and Eastern Europe opt to vote. According to some surveys carried out by officials in Brussels, the political configuration of the new parliament could undergo certain changes. The right centre, gathered around the European People’s Party (EPP), could maintain its prevailing position even if the left centre improves its current standings. The right centre parties could win a total of 249 seats, while their opponents stand

SATISFACTION The survey revealed that only 45 per cent of EU citizens have something positive to say about the European Union.

Romania is set to be represented in the new European Parliament by a top model, Elena Basescu, who just happens to be the daughter of the Romanian chief of state to win 209, which would see the latter block potentially improve its position by a single percentage point, from 27 to 28 per cent. The composition of the future parliament could also be influenced by the UK Conservative Party’s decision to withdraw its membership of the EPP alliance – together with the Czech right centre party and other such parties from Eastern and Central Europe – and form a separate group. If this happens, the new political group would become the fourth largest in the parliament. This will also diminish the power currently enjoyed by German MEPs in the right centre block, with Italians and Polish becoming increasingly influential. German MEPs will remain dominant on the left centre though, ahead of French and Spanish members.

THE OLDEST The oldest candidate is Boris Pahor (95) from Trieste. He is candidate of the Slovenian ethnic minority party.

According to some projections, the Alliance of Liberals and Democrats for Europe (ALDE) could achieve positive election results thanks to German voters who see the EU elections as a chance for revenge against the domestic ‘black and red’ coalition of Christian democrats (CDU) and social democrats (SPD). The ALDE political grouping could become the third most powerful group in the parliament, followed by the potential alliance of British Tories and MEPs from some other states. The Green Party, which has so far managed to exercise a relatively strong influence, is probably set to fare poorly. Though environmental problems are still extremely relevant, today people are much more concerned with how to make ends meet during this colossal global economic crisis.

VOTERS The European Union has 27 members and 375 million voters eligible to vote for 736 Members of the European Parliament CorD 61 / June 2009 37

BUSINESS |

According to Forbes Global 2000

THE WORLD’S

BIGGEST

COMPANIES

This comprehensive report analyses the world’s biggest companies and the fastestgrowing of these titans

ven a depression is a place for opportunity if you have cash, scale and ambition. Many of the names on this year’s Forbes Global 2000 list of the world’s biggest companies will emerge on the other side of the trough far stronger when world economies snap back next year. For the strong corporations, there are rivals to buy, technologies to fund and new markets to enter - all at lower prices than we’ve seen in years. “Despite the economy, it’s important to think about what is possible,” says Microsoft Chief Executive Steven Ballmer. Forbes’ ranking of the world’s biggest companies departs from lopsided lists based on a single metric, like sales. Instead, Forbes use an equal weighting of sales, profits, assets and market value to rank companies according to size. This year’s list reveals the dynamism of global business. The rankings span 62 countries, with the U.S.

CRITERIA

Steven Ballmer, CEO of Microsoft Corporation 38 CorD 61 / June 2009

n order to identify these global superstar players, Forbes analysed 26 industries of the Global 2000 and gave each company respective scores for long-term and short-term sales and profit growth; return on capital; debtto-capital (the lower, the better); and total return over five years.

THE TOP 100 COMPANIES RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49

COMPANY General Electric Royal Dutch Shell Toyota Motor ExxonMobil BP HSBC Holdings AT&T Wal-Mart Stores Banco Santander Chevron Total ICBC Gazprom PetroChina Volkswagen Group JPMorgan Chase GDF Suez ENI Berkshire Hathaway Vodafone Mitsubishi UFJ Financial Procter & Gamble CCB-China Construction Bank Verizon Communications Petrobras-Petr贸leo Brasil Nippon Telegraph & Tel EDF Group IBM BNP Paribas Bank of China Telef贸nica Nestl茅 Sinopec-China Petroleum Cr茅dit Agricole Siemens Hewlett-Packard Intesa Sanpaolo Bank of America Honda Motor BBVA-Banco Bilbao Vizcaya ArcelorMittal Johnson & Johnson ENEL UniCredit Group Generali Group France Telecom Samsung Electronics Deutsche Bank Microsoft

COUNTRY United States Netherlands Japan United States United Kingdom United Kingdom United States United States Spain United States France China Russia China Germany United States France Italy United States United Kingdom Japan United States China United States Brazil Japan France United States France China Spain Switzerland China France Germany United States Italy United States Japan Spain Luxembourg United States Italy Italy Italy France South Korea Germany United States

(out of 2000 companies)

INDUSTRY Conglomerates Oil & Gas Operations Consumer Durables Oil & Gas Operations Oil & Gas Operations Banking Telecommunications Services Retailing Banking Oil & Gas Operations Oil & Gas Operations Banking Oil & Gas Operations Oil & Gas Operations Consumer Durables Banking Utilities Oil & Gas Operations Diversified Financials Telecommunications Services Banking Household & Personal Products Banking Telecommunications Services Oil & Gas Operations Telecommunications Services Utilities Software & Services Banking Banking Telecommunications Services Food, Drink & Tobacco Oil & Gas Operations Banking Conglomerates Technology Hardware & Equip Banking Banking Consumer Durables Banking Materials Drugs & Biotechnology Utilities Banking Insurance Telecommunications Services Semiconductors Diversified Financials Software & Services

Sales ($bil) 182.52 458.36 263.42 425.70 361.14 142.05 124.03 405.61 96.23 255.11 223.15 53.60 97.29 114.32 158.40 101.49 115.59 158.32 107.79 70.39 61.43 83.68 42.98 97.35 92.08 107.02 89.46 103.63 107.96 40.10 80.70 103.01 154.28 107.75 108.76 118.70 50.56 113.11 120.27 56.51 124.94 63.75 82.92 83.72 118.39 74.50 104.42 124.78 61.98

Profits ($bil) 17.41 26.28 17.21 45.22 21.16 5.73 12.87 13.40 13.25 23.93 14.74 11.16 26.78 19.94 6.52 3.70 9.05 12.91 4.99 13.30 6.38 14.08 9.45 6.43 14.12 6.36 4.73 12.34 4.20 7.70 10.57 16.91 7.43 5.90 8.05 8.05 10.58 4.01 6.01 6.99 9.40 12.95 7.37 8.70 4.26 5.67 7.87 9.47 17.23

Assets ($bil) 797.77 278.44 324.98 228.05 228.24 2,520.45 265.25 163.43 1,318.86 161.17 164.66 1,188.08 276.81 145.14 244.05 2,175.05 232.71 139.80 267.40 252.08 1,931.17 138.26 903.35 202.35 120.68 179.95 278.76 109.53 2,888.73 817.84 129.16 97.12 100.41 2,064.17 128.46 109.63 835.15 1,817.94 124.98 747.99 133.09 84.91 177.21 1,482.98 546.50 125.32 99.47 2,946.88 65.79

Market Val. ($bil) 89.87 135.10 102.35 335.54 119.70 85.04 140.08 193.15 49.75 121.70 112.90 170.83 74.55 270.56 75.18 85.87 70.46 80.68 122.11 93.66 53.63 141.18 119.03 81.04 110.97 59.07 71.53 123.47 29.98 105.04 85.56 118.99 93.50 21.91 44.18 69.57 31.43 25.29 44.32 27.56 26.80 138.29 31.00 18.37 21.35 58.92 45.82 14.40 143.58

CorD 61 / June 2009 39

BUSINESS |

still dominant at 551 members, but that is 200 fewer than in 2004, when they first published this global list. AN ATLAS OF THE WORLD’S BIGGEST COMPANIES This year, China has 91 members, Korea 61, and India 47. Even Kazakhstan is now a Global 2000 member. Also gaining a significant presence on our list are corporations from Arab countries: Kuwait, Saudi Arabia and the United Arab Emirates each have at least 10 entries on this year’s list. In total, Global 2000 companies now account for $32 trillion in revenues, $1.6 trillion in profits, $125 trillion in assets and $20 trillion in market value. The Global 2000 continues to amass revenue and assets, but lately that has not translated into wealth creation or profits. In the past year, combined profits were down 31% while market value was down 49%. The global economy this year will likely contract for the first time since World War II, according to the World Bank. The encouraging news is that the same pool of economists who are pessimistic about this year expect a slight recovery in 2010, albeit at sharply disparate levels, depending on where you live. The current forecast calls for 8.3% gross domestic product growth in China in 2010 compared with estimated growth in 2009; 1.7% in the U.S. and -0.1% in Spain. An analysis of the Global 2000 shows that despite the turmoil in the banking industry, banks still dominate, with 307 companies in the 2000 lineup, thanks in large measure to their asset totals. The oil and gas industry, with 126 companies, scores high in sales, profits and stock-market value, yet these sectors were not the leaders in growth over the past year. Drug and biotech companies (up 59%) led all sectors in sales growth, while the leaders in profit growth were telecom service firms (up 51%). The full list is rich with industry leaders who are making strategic moves to help navigate through these tough economic times. Read our profiles of Denmark’s Vestas Wind Systems, the world’s largest maker of wind turbines, German engineering giant Siemens, banking software seller Fiserv and Standard Chartered Group of the U.K.Vestas, for example, is making a 40 CorD 61 / June 2009

Gazprom’s Moscow future HQ. The Russian energy giant is ranked 13th big push in the U.S. market for green energy and is building three plants in Colorado. For the past few years, Forbes also identified an important subset of the Global 2000: big companies that also have exceptional growth rates. To qualify as a Global High Performer, a company must stand out

The rankings span 62 countries, with the U.S. still dominant at 551 members, but that is 200 fewer than in 2004, when they first published this global list from its industry peers in growth, return to investors and future prospects. Most of the 130 Global High Performers have been expanding their earnings at 28% a year or better - easy for a start-up, hard for a blue-chip. Both Vetas and Standard Chartered Group are on our Global High Performers, while

nearly half of the 130 companies on this select list have headquarters outside the U.S. Members include well-known foreign companies such as ABB and Nestlé (Switzerland); Honda Motor, Toyota Motor and Nintendo (Japan), as well as companies with lower profiles, such as French contractor Vinci. Among notable U.S. Global High Performers are McDonald’s, Google and Nike . To find these global superstars, Forbes analysed 26 industries of the Global 2000 and gave each company respective scores for long-term and short-term sales and profit growth; return on capital; debt-to-capital (the lower, the better); and total return over five years. Other requirements for the global high performers list include: shares traded in the U.S. or Depositary Receipts, a share price of at least $5, positive equity and sales of at least $1 billion. The composite performance score for the Global High Performers also includes earnings growth forecasts tabulated by Thomson IBES. Finally, candidates with good numbers but big problems have been dropped.

THE TOP 100 COMPANIES RANK 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94

COMPANY Pfizer Wells Fargo BHP Billiton StatoilHydro Sumitomo Mitsui Financial China Mobile Goldman Sachs Group RWE Group Roche Holding Commonwealth Bank Société Générale Group Novartis E.ON Deutsche Telekom Rosneft Mizuho Financial Sanofi-aventis National Australia Bank Royal Bank of Canada Cisco Systems Rio Tinto Tesco China Life Insurance Mitsubishi Corp Vale Munich Re Lukoil Barclays Banco Bradesco Unilever BASF Nokia Sony CVS Caremark Daimler United Technologies Saudi Basic Industries Iberdrola Nissan Motor Panasonic MetLife Westpac Banking Group GlaxoSmithKline Morgan Stanley Telecom Italia

95 Intel 96 97 98 99 100

Zurich Financial Services Mitsui & Co Comcast AXA Group Bayer Group

(out of 2000 companies)

COUNTRY

INDUSTRY

United States United States Australia/United Kingdom Norway Japan Hong Kong/China United States Germany Switzerland Australia France Switzerland Germany Germany Russia Japan France Australia Canada United States United Kingdom/Australia United Kingdom China Japan Brazil Germany Russia United Kingdom Brazil Netherlands/United Kingdom Germany Finland Japan United States Germany United States Saudi Arabia Spain Japan Japan United States Australia United Kingdom United States Italy

Drugs & Biotechnology Banking Materials Oil & Gas Operations Banking Telecommunications Services Diversified Financials Utilities Drugs & Biotechnology Banking Banking Drugs & Biotechnology Utilities Telecommunications Services Oil & Gas Operations Banking Drugs & Biotechnology Banking Banking Technology Hardware & Equip Materials Food Markets Insurance Trading Companies Materials Insurance Oil & Gas Operations Banking Banking Food, Drink & Tobacco Chemicals Technology Hardware & Equip Technology Hardware & Equip Retailing Consumer Durables Conglomerates Chemicals Utilities Consumer Durables Technology Hardware & Equip Insurance Banking Drugs & Biotechnology Diversified Financials Telecommunications Services

United States

Semiconductors

Switzerland Japan United States France Germany

Insurance Trading Companies Media Insurance Chemicals

Sales Profits ($bil) ($bil) 48.30 8.10 51.65 2.66 59.47 15.39 93.38 6.20 46.06 4.62 47.09 11.49 53.58 2.32 66.16 3.56 42.75 8.41 34.98 4.58 99.25 2.80 42.01 8.30 120.74 1.76 85.89 2.07 46.99 11.12 42.29 3.12 38.40 5.36 41.87 3.58 30.01 3.52 39.58 7.49 54.26 3.68 93.85 4.21 26.20 5.32 60.43 4.64 30.75 9.28 64.20 2.09 66.86 9.51 59.82 6.40 39.97 3.26 56.44 7.00 86.77 4.06 70.63 5.55 88.89 3.70 87.47 3.21 133.43 1.88 58.68 4.69 40.62 5.87 35.09 3.98 108.46 4.83 90.87 2.82 50.99 3.21 25.90 3.05 35.55 6.72 62.26 1.71 41.97 3.08

Assets Market ($bil) Val.($bil) 111.15 83.03 1,309.64 51.28 72.40 96.65 82.42 53.30 1,114.89 25.56 76.42 175.85 884.55 42.06 127.64 33.68 69.77 98.47 467.83 28.01 1,572.73 17.77 73.22 82.97 215.15 47.44 162.51 52.96 77.40 34.07 1,545.23 21.46 96.01 67.84 515.83 21.90 575.21 34.29 61.36 85.05 88.25 39.42 59.80 37.50 127.83 83.26 117.84 20.89 79.26 66.14 291.87 24.29 59.14 26.62 2,947.84 11.15 194.51 26.75 48.75 58.24 69.41 25.62 52.29 35.32 124.12 17.12 60.96 37.46 180.08 21.21 56.47 38.53 72.39 31.44 114.81 32.42 119.00 14.14 71.85 28.93 501.68 15.10 346.22 31.40 52.67 79.06 658.81 21.00 117.81 23.82

37.59

5.29

50.72

70.86

32.35 57.50 34.26 156.95 45.85

3.04 4.11 2.55 1.28 2.55

325.04 97.15 113.02 936.92 71.39

19.60 17.12 37.62 19.47 36.97

CorD 61 / June 2009 41

REGION |

MONTENEGRO

Questioning the

Guest of Milo Đukanović: Sergey Shoigu, Russian Minister of Emergency Situations

Erhard Busek, advisor to the Czech Republic during its presidency of the EU, told a Podgorica daily that “Russians are detrimental to Montenegro’s image” By Ilija DESPOTOVIĆ

hree years after Montenegro achieved full sovereignty, it seems as though the country’s foreign ambassadors have been presenting themselves publicly in quite contrasting ways. The most conspicuous ambassador is the U.S.’s Roderick Moore - and we are not talking only about media appearances. His Russian counterpart,

42 CorD 61 / June 2009

Ambassador Yakov Gerasimov, meanwhile, seldom makes public appearances. Ambassador Moore has visited almost all of the country’s municipalities; he meets regularly with business people and farmers; he talks to students, gives interviews and doesn’t hesitate to offer advice to the Montenegrins or lodge objections, for that matter. Moore recently criticised the Montenegrin authorities for not having the country’s authentic prod-

ucts, like honey and cheese, on the tables in government institutions and shops, i.e. the products that Moore obviously likes. On the other hand, Russian Ambassador Gerasimov has embarked on a spiritual mission. From time to time he visits a faculty or two and, true to the Russian tradition, he gives out books. Unlike the Russians, the U.S. often donates fire engines, equipment and similar things, but at the Podgorica Book Fair in

Russian reliance mid-May, the Russian diplomat was awarded like to see as “bosses” in their own country, for his engagement in promoting international most of them would have probably answered collaboration between publishing companies. “the Russians”. German Ambassador, Peter Plate, and his In economic terms, Montenegrins used to British colleague, Kevin Lyne, are both po- form their opinions in line with their emolitically active in Podgorica, while the French tional stereotypes, rather than any rational asAmbassador is not so agile in this area. Plate sessment of their own interests. Following has become a real star of roundtable discus- the negative experience with the Nikšić Iron sions about corruption – organised by certain Foundry and now the Podgorica Aluminium media in Podgorica – and is known for fa- Combine, a new survey would yield very difvouring the opposition more than the parties ferent results that are quite unfavourable to in power. Although the Russian Ambassador Russians. Three years ago, Russians abanin Podgorica is more inclined towards so- doned the Nikšić foundry virtually overnight, Active Ambassador: called silent diplomacy, his fellow country- leaving a bitter taste in the mouth. The overU.S. Ambassador Roderick Moore is men – Montenegro’s Russian businessmen all feeling was that the “brother Russians” had – are still pretty active in Montenegro. Just let down the Montenegrins, who have called having fun in Montenegro when it seemed that the Russians were with- their country “Mother Russia” for years. drawing from Montenegro’s investment marMeanwhile, employees of the Russian- ing its presidency of the EU, told a Podgorica ket, Russian company, Metropol, bought the owned Podgorica Aluminium Combine daily that “Russians are detrimental to Montenegro’s image”. Later the Austrian St. Marko island near Tivat at the beginning have been quite critical of the Montenegrin of May with the intention of building a luxu- Government for selling the factory to a very ambassador and the Croatian Ambassador ry six-star hotel. The company paid €18 mil- flippant partner in the form of Russian billion- to Montenegro, Petar Turčinović, echoed Busek’s sentiments. According to media relion for the island, with another €500 million aire Oleg Deripasca. ports, Turčinović said at a planned to be spent on erectAccording to media reports, Croatian discussion platform in Ulcinj: ing a tourist town. Russians “you (Montenegro) cannot already have their own “vilAmbassador Turčinović said at a discussion join the EU with the Russians lages” on the Montenegrin platform in Ulcinj: “you (Montenegro) cannot and the Chinese”. coast, with one of the biggest believe that there located just above St. Stefan. join the EU with the Russians and the Chinese” areSome ulterior motives and calThey also own the Podgorica Due to the feeling that it’s closer to the culations in all of Russia’s economic moves Aluminium Combine and total Russian investments in Montenegro so far run into the Russian capital than the Russians themselves, in Montenegro, particularly when we think of Montenegro has been criticised by Western the situation with the Aluminium Combine, hundreds of millions of Euros. If somebody had taken a survey in countries. Erhard Busek, former co-ordinator which is a stumbling block between the Montenegro at the very beginning of the tran- of the Stability Pact for Southeast Europe and Montenegrin Government and the Russian sition period, asking the nation who they’d now an advisor to the Czech Republic dur- owner. The Podgorica factory is in deep trouble as a result of the low global price of aluminium, which is why workers find it odd C R I T I C I S M R U S S I A U . S . A . that the Russians haven’t left already. On the other hand, the statements of certain governDue to the feeling that Russian Ambassador U.S. Ambassador Moore ment representatives could be construed as a form of pressure for the Russian owner to it’s closer to the RusGerasimov has has visited almost leave the combine. Earlier, Gerasimov resian capital than the embarked on a spiritual all of the country’s sponded to critics who were complaining that Russians themselves, mission. He visits a municipalities; he meets his countrymen were buying too much real Montenegro has been University and gives regularly with business estate in Montenegro by saying: “We buy becriticised by West. out books. people and farmers. cause you sell.” CorD 61 / June 2009 43

LEADERS MARK HARRISON, Principal of Harrisons Solicitors PLAN AHEAD FOR THE GOOD TIMES he Serbian Government measures are, unfortunately, having to be aimed solely at keeping Serbia afloat, as best as possible, as the perfect economic storm envelopes Serbia, the surrounding region and all areas of the world. In the early to mid ‘90s, during the darkest economic times for Serbia, with unjust UN sanctions and hyperinflation, my Serbian friends would greet me by saying “I am surviving”; now, 15 years later, when I meet fellow businessmen in charge of some of the biggest companies in Serbia, both domestic and international, it is the same greeting, which to me, as someone who has become “pola-Srbin”, is a great shame. The main focus of our International Law Firm, the first to be established in Serbia, 10 years ago, is to attract and assist leading foreign companies establish business in, or commence trade with, Serbia. The Serbian Government has no real room to manoeuvre on its measures whilst the storm passes over Serbia, as its hands are tied by the economic reality of the situation and the IMF. However, where Serbia can look to gain the advantage over neighbouring countries and its competitors is to enact measures to make Serbia an attractive business destination once the storm has passed and companies start looking again at the emerging markets for business. One key to this is to rebrand Serbia and its international image so businesses see Serbia in a different light, visit the country and, hopefully, invest or commence trade. So,

44 CorD 61 / June 2009

Mr Prime Minister, plan ahead for the good times, not just to get you through the bad times. BLAGOJE SPASOVSKI, General manager of RTB Bor, NEW TENDER ONCE THE COPPER MARKET RECOVERS ix months ago, when I came to RTB Bor with my team, I promised there wouldn’t be any layoffs and that we would hire more workers. And that is exactly what has happened. New anti-crisis measures will help companies like RTB Bor overcome the crisis and increase production and exports in the foreseeable future, primarily through investments in mining. This will bring positive business results, since we expect global copper and precious metal prices to go up - says Spaskovski. The only company to register for participation in the tender to establish a strategic partnership with RTB Bor, Austrianbased A-Tec, submitted an abbreviated letter of intent without an appropriate bank guarantee instead of a valid bid. In this letter of intent, A-Tec expressed its wish to become a strategic partner to RTB by paying 116 million U.S. dollars to become the owner of a 40 per cent share in the company. The documents submitted by A-Tec also state that the company is ready to provide another 20 million U.S. dollars for the social programme and by that acquire an additional 27.7% share in RTB Bor. Minister Dinkić reiterated that the state will not give up on constructing a contemporary copper smelting plant, which will meet all economic and ecological parameters. Hence, management at

RTB Bor should continue with rational production while applying saving measures, as well as writing a feasibility study for launching mine production. MILOJE ERČEVIĆ, Proprietor of “IVA 28” Company MAKING MACHINES FOR EXPORT VA 28 produces tool making machines and machining centres that it exports to Germany, Austria and Switzerland. Not one machine has been sold in Serbia, because the metal processing industry here has died down. Our authorities haven’t even tried to help us to present what the rest of the world holds in high regard. Since we don’t have much to show, there was plenty of reason to go to the Hannover Technology Fair, which took place from 20th to 24th April. We should have gone to this fair much earlier to carefully observe what global companies have been doing and planning. This year, Serbia did not have its stand at this biggest energy, electronics, robotics, development and research fair. However, two Serbian companies – Eling from Loznica and Termometal from Ada – did exhibit their products at the stand of Swiss company, SIPPO. The excuse that a lack of money and the crisis is a good

enough reason for us not participate in such events is just flimsy. There were countries far poorer than Serbia exhibiting at the fair. People come here to learn and establish contacts which, tomorrow, could translate into concrete business arrangements and contracts. We are waiting for foreign investors to come to us, instead of vice versa. They won’t come if they don’t know anything about us and our production capabilities.

STANKO RADIĆ, Director General of Grand Motors INCREASING TAXES WILL LEAD TO A FUTHER DROP IN SALES e are quite certain that one of the government’s anticrisis measures – i.e. changes and amendments made to the Law on Taxes on Use, Possession and Handling of Goods – will be detrimental to the business operations of Grand Motors, as well as those of other importers of larger luxury cars. Sales figures have been down since last autumn, especially when it comes to the sale of cars with more CCs. Increasing taxes will lead to a further drop in sales, especially when it comes to cars like Land Rover and Volvo that we also sell. Almost all of these cars have engines of over 2.0 litres. According

to the new law, taxes on purchasing these cars will be much higher, i.e. they will range from 37,000 to 155,000 dinars. Also, there are certain cars in the Ford range that will bear higher taxes during registration. Still, most of the Ford range, as well as the Grand Motors’ range, are cars with engines below 2.0 litres. Last year, before this crisis emerged, we managed to offer these cars at quite competitive prices. Thanks to that decision, we succeeded in raising our market share this year, when most importers have been recording losses. In the first four months of this year, Ford was one of the most sought after cars in Serbia. Bearing in mind this fact, our extensive saving measures and business rationalisation programme are our response to economic turbulences.

CorD 61 / June 2009 45

B2B |

ALBANIA’S POSITIVE GROWTH FORECAST

DELTA CITY: EUROPE’S

BEST SHOPPING CENTRE

elta City was declared the best shopping centre in Europe in the category of new middle-sized shopping centres. This is the most important honour in the field of commercial real estate, which was awarded by the jury of the International Council of Shopping Centres – ICSC. The award was accepted in Barcelona by Slađana Lazić, Delta Real Estate marketing director. Some 41 candidates from 19 countries competed in the category of the best and most commercial shopping centre and in the finals Delta Real Estate, with its Delta City project, fended off competitors from Portugal, Germany and Italy. When making the selection, the international jury – composed of eminent experts in the field of real estate – considered criteria such as facility design, diversity of offer, number of visits, customer relations, achieved turnover and integration of the centre into the local infrastructure. Dejan Racić, Director of Delta Real Estate, said: “This award is very important not only for Delta Real Estate, but for Belgrade and Serbia as well, for it confirms that we follow world trends in the real estate sector. I must point out that we were particularly commended for the fact that Delta Real Estate’s young team managed to complete their first big project with success by applying world class state-of-the-art, know-how and standards in the area of shopping centres and made an impact with their positive example on the development of economic and general environment.” Thanks to this award, Delta Real Estate has qualified for selection of the best shopping centre in the world and the decision on the winner will be made at a conference to be held in Las Vegas from 17th to 20th May.

THIRTYONE BANKS INTERESTED IN USING NBS FACILITIES

f the 34 banks operating in Serbia, 31 have expressed a interest in using the facilities of Serbia’s central bank, the National Bank of Serbia (NBS). Once NBS has assessed their compliance with all prerequisites, it will post the final list of qualifying banks online. Following the successful Financial Sector Co-ordination Meeting on Serbia held in Vienna on 27th March this year and the arrangement with the IMF, the NBS adopted special facilities on 5th May aimed at supporting the country’s financial stability. The bank also defined conditions that banks should fulfil in order to qualify to use these facilities. Access to NBS facilities, designed to supply additional sources of dinar and foreign exchange liquidity, will be granted to those banks that, together with their majority shareholders, undertake special commitments as Source: EMportal defined by the NBS and provide relevant documentation. 46 CorD 61 / June 2009

lbania appears an unlikely bright spot on Europe’s gloomy economic map, with international financial institutions forecasting positive growth of 1.2%, Financial Times (FT) said. “While its cash-strapped Balkan neighbours seek emergency finance from the International Monetary Fund (IMF), Europe’s second poorest country, after Moldova, secured a €250 million medium-term commercial loan last month, arranged by Deutsche Bank and Alpha Bank of Greece,” FT said. The loan will allow the government of Sali Berisha to complete an upgrade of the main highway to Kosovo, a key infrastructure project. Source: FT

SERBIA’S “EGOVERNMENT”

TO HOLD ITS FIRST SESSION ON 11TH JUNE

erbian Minister for Telecommunications and Information Society, Jasna Matić, said that the Serbian government will hold its first electronic session on 11th June, adding that this will make public administration more efficient, transparent and cost effective. Speaking at a presentation of the project“e-government” on the fourth day of the Knowledge Factory Fair at ComTrade, Matić said that ministers are attending a short project training course and that on 11th June all material at the session will be in electronic format. Parallel to the introduction of e-government, the Telecommunications Ministry is working on a project to introduce e-administration throughout Serbia, said Matic, adding that the implementation of the project began in January this year and is proceeding without problems. Telekom Srbija and PTT Srbija are taking part in the project of e-administration and e-government sessions, while the project is being headed by company ComTrade. Source: Tanjug

RUSSIA MAY EXPAND LIST OF TAX FREE IMPORTS FROM SERBIA

ussia is considering the possibility of expanding the list of tax free imports from Serbia, Russian Ambassador to Belgrade Alexander Konuzin said during a meeting with members of Serbian business club Privrednik. The talk focused on the current economic situation, measures for alleviating the crisis and prospects for fostering bilateral co-operation. Konuzin spoke of Russian government measures for coping with the crisis and of sectors with the best prospects for co-operation, such as energy and transport infrastructure and facilities. Serbia is important for Russian companies thanks to the CEFTA status and its expected EU membership, it was notSource: Tanjug ed during the meeting.

TARKETT TAKES OVER 35.7% OF SINTELON

acka Palanka-based Tarkett plans to takeover a 35.7% stake in Sintelon. The takeover bid and the price will be revealed following the approval of the Serbian Securities Commission. Tarkett currently does not hold any Sintelon shares, but Tarkett France, the company’s coowner, holds a 64.3% stake in Sintelon. The owners of Backa Palanka-based Tarkett are Sintelon and Tarkett France, each with a 50 per cent stake. Source: limun.hr

VOLVO PRESENTS SEVEN NEW CARS WITH GREEN DRIVe

he DRIVe badge is attached to cars in the Volvo range that have the best environmental performance in their class. All today’s DRIVe models are equipped with a conventional diesel engine and manual gearbox optimised for extra-low fuel consumption. These cars are also tailored specifically for low rolling resistance and reduced air drag. As of spring 2009, the Volvo C30, S40 and V50 1.6D DRIVe will be offered with an advanced Start/Stop function (that allows the engine to switch off when the car is at a standstill, for instance while waiting at traffic lights or when stuck in traffic queues) his helps lower emissions to just 104g CO2/ km for all three models. If the driver puts the gear lever into neutral and releases the clutch while at a standstill, the engine switches off. This technology can reduce fuel consumption and thus carbon dioxide emissions by 4-5% in mixed driving conditions. Start/Stop technology is particularly effective in urban traffic, when the saving may be as much as 8%. For the first time ever, the Volvo V70 and S80 are now also being offered in DRIVe versions. The cars are equipped with the same powertrain - 1.6-litre diesel engine and manual gearbox - as the smaller models but with specially tailored engine software and different ratios in third, fourth and fifth gears. The optimised powertrain is a major aid in helping Volvo’s larger sedans significantly cut their fuel consumption and CO2 emissions: in S80 down to 4.9 l/100 km and 129g, an improvement of 15% compared with the two-litre diesel. Several other factors also contribute to the reduction in fuel consumption, for example the tyres that have been specially designed for low rolling resistance. For the first time the V70 and S80 DRIVe versions are also equipped with an electric power steering pump that delivers exactly the servo assistance the driver requires, in a precise and energy-efficient way.

SERBIA INDIA COOPERATION

ndia is interested in establishing co-operation with Serbian agricultural institutes, for seed production, and with companies that export frozen food and deal in food processing technologies, Indian Ambassador to Serbia Ajay Swarup said during a visit to the Agriculture Fair in Novi Sad. Ambassador Swarup said that following his visit to the Wine Festival in Sremski Karlovci there has been interest in his country for Serbian experts and wine production technologists to pass on their knowledge to counterparts in India. Source: Tanjug

CorD 61 / June 2009 47

B2B |

PIRAEUS BANK GROUP NET PROFIT

REACHED €530 MILLION IN 2008

uring its Regular Meeting of Shareholders, Piraeus Bank Group officially announced its positive business results for 2008. This occasion also saw key directions for the Group’s activities for 2009 defined – with the recession and difficult global economic juncture prompting them to prioritise preserving the high level of liquidity and drastic operative cost containment. Commenting on the Group’s financial results for 2008, Mr Sallas, Chairman of Piraeus Bank Group, said that the bank is focusing on offering superior customer services, as well as preserving the quality of its loan portfolio. “The market’s credit expansion will inevitably be restrained in comparison with previous years. However, this crisis is an opportunity for rationalisation, rearrangement of sources and emerging with even more dynamics. Piraeus Bank is working towards this direction with determination,” noted Mr Sallas. Piraeus Bank Group, the fourth largest in Greece, attained total assets of €54.9 billion at the end of 2008. Loans amounted to €39 billion, an increase of 27%, while deposits and retail bonds reached €31.3 billion, recording an increase of 31%. The number of customers in Greece amounted to 2.1 million, compared to 1.9 million at the end of 2007, while last year saw the group’s net profit reach €530 million, compared to €503 million in 2007. Loans in arrears above 90 days stood at 3.56% despite the deterioration of the economy, comprising the best ratio on the Greek market. The coverage ratio (accumulated provisions over loans in arrears) was significantly reinforced to 51%, versus 40% in 2007. The group’s capital adequacy was maintained at a very satisfactory level, with the total CAD ratio standing at 10% and Tier I at 8%. Despite the economic situation and stagnation of the global economy, Piraeus Bank opened 151 new branches in 2008. As a result of branch network expansion, 1,898 new job positions were created and the Group’s network reached 895 branches in nine countries.

MORGAN STANLEY BUYS SHARE OF KOMERCIJALNA

he second week of May saw American investment company Morgan Stanley purchase a parcel of 5,500 shares and become the owner of 0.63% of capital of Belgrade’s Komercijalna Banka, Serbia’s top domestic bank. The banking sectors of countries in transition are the sweetest “bites” for foreign investors. The underestimated price of shares, the share of the state and EBRD, coupled with the lack of a major owner, have attracted the American giant to start “flirting” with the largest Serbian bank. Daughter company, Morgan Stanley Asset Management, and investment fund Morgan Stanley Frontier Emerging Markets, founded last year, bought 2,900, i.e. 2,600 shares of Komercijalna Banka from Serbian company Invej at a price of 18,000 to 18,500 RSD.

SIX AMBASSADORS

VISIT CARLSBERG

H COM TRADE’S “KNOWLEDGE FACTORY”

“K

nowledge Factory” is a unique IT event in Serbia oriented towards positioning new technologies as key tools for expanding the boundaries of knowledge and competences, as well as for business improvement. Serbian Prime Minister, Mirko Cvetyković, opened the IT event “Knowledge Factory” at ComTrade Technology Centre in Belgrade. The event, which ran from 11th to 15th May, was a business and education oriented IT event. In its role as organiser, ComTrade Group used this five-day opportunity to present the local public with the full potential of new technologies and business solutions. “Knowledge Factory” brings together the most talented elementary and secondary school pupils, university students, business partners, entrepreneurs and the business elite, as well as a great number of guests from the world of science. Source: Beta

48 CorD 61 / June 2009

igh officials of the diplomatic corps, Ambassadors to Serbia from the U.S., UK, the Netherlands, Sweden, Bulgaria and the Kingdom of Denmark, amongst others, visited the production facilities of Carlsberg Srbija Group in Čelarevo for the first time recently. The aim of the visit was to tour the brewery and learn about the production process and beer production standards, which position Carlsberg Srbija as the leader among brewers in our country. Following their tour around the complex and tasting of the most diverse beers offered by Carlsberg on Serbia’s market, the diplomatic guests spent quality time with CEO of Carlsberg Srbija Group, Aleksandar Radosavljević, who presented in detail the business principles of the company and ongoing plans and projects. “We are exceptionally honoured to have at our brewery so many representatives of the countries where our holding company from Copenhagen operates,” noted Radosavljević. The company was visited by H.E. Ambassador Cameron Munter (U.S.), H.E. Ambassador Ron van Dartel (Holland), H.E. Ambassador Stephen Wordsworth (UK), H.E. Ambassador Krister Bringeus (Sweden), H.E. Ambassador Georgi Dimitrov (Bulgaria), H.E. Ambassador Mette Kjuel Nielsen (Denmark), and Mr Milan Pajević, President of the International Advisory Committee (ISAC). Source: EMportal

USDA: “GRADES AND STANDARDS OF AGRICULTURAL PRODUCTS IN SERBIA”

he Office of the Foreign Agriculture Service at the U.S. Embassy in Belgrade, in conjunction with the Ministry of Agriculture of Serbia, organised training workshops on “Grades and Standards of Agricultural Products in Serbia”, which were held in Belgrade’s Hotel “Balašević” from 14th to 15th May and at the Fruit Research Institute in Čačak from 18th to 19th May. U.S. experts are working with officials from the Serbian Ministry of Agriculture, Institute for Standardisation, Serbian Association for Fruits and Vegetables, as well as many Serbian fruit producers, processors and exporters to address issues related to product grading systems and standardisation in international trade, as well as corresponding legislation issues. As product quality is key to the successful penetration of international food markets, grades and standards are used as a common trading language and reference for quality Source: EMportal control, both for buyers and for sellers.

HOLCIM WINS TENDER FOR

KAMENKO GAGRCIN

he Serbian Privatisation Agency has confirmed that Holcim offered €1 million, as well as an investment programme worth a further €1 million and unconditional acceptance of the minimum social welfare programme. Popovac-based Holcim Srbija cement producer won the tender for the purchase of a 70 per cent stake in Sombor-based DTD Kamenko Gagrcin river-transportation company. Kamenko Gagrcin has a dock near Sombor and a fleet of 20 boats for shipping, unloading and transportation of dry bulk cargo. Source: limun.hr

HENKEL IN SERBIA PLAYS A CENTRAL ROLE IN SUPPLYING THE REGION

he Serbian branch of Henkel, with its head office in Belgrade, is a business centre of the region that supplies over 55 million consumers with a wide range of products. When Henkel came to the Serbian market in 2002, after acquiring Kruševac-based detergent company Merima, the company’s management made it clear that supplying the region was one of the aims of the privatisation. Acquiring Merima’s detergent factory was an important step in Henkel’s expansion. This privatisation is still heralded as one of the most successful in Serbia. In line with the aims specified before Henkel even came to the Serbian market, the company’s head office is located in Belgrade where all sales, marketing, financial and general services are provided. Powder and liquid detergents and soaps are produced in three factories based in Kruševac. The first greenfield investment carried out by Henkel in Serbia is a glue production facility called Henkel Ceresit, which was built in Inđija in 2007. Together with Henkel’s liquid mortar factory, opened in 2008 in the same location, these two factories have been operating in accordance with the latest technical, technological and environmental standards, while supplying all regional markets. “It gives us great pleasure to be able to welcome you to our new business facility in Belgrade, which is a testimony to our company’s longterm plans, as well as to the role that the regional centre Henkel Srbija plays,” said CEO of Henkel Srbija, Nenad Vuković, speaking at a press conference. Commenting on the business conditions in 2009, he outlined the following: “the unfavourable economic climate on the global market is a great challenge to any company, but thanks to Henkel adopting anti-crisis measures and our stable financial position, we believe that we are going to successfully deal with the consequences that the crisis brings. All our business units in Serbia have been recording an increase in their operations, especially if we are talking about the retail sectors.”

SOCIÉTE GÉNÉRALE SRBIJA EXPANDS ITS NETWORK

espite altered market conditions, Société Générale Srbija is continuing its business activities in line with its ambitious plans, including expending its network of branches. On 12th May, the bank opened its branch in Leskovac, at 170 Boulevard Oslobodjenja. Local community officials and representatives of local media were present. Miroslav Rebić, Member of the Executive Board of Société Générale Srbija, said that seven new employees had joined the Société Générale team through the opening of this new branch. Société Générale has a tailor-made approach to its clients, with personal bankers taking care of clients’ accounts and providing all kinds of advice on loans and guarantees, whilst always being reachable for consultations. Source: EMportal CorD 61 / June 2009 49

B2B |

GREAT SUCCESS FOR WINE CELLAR ALEKSANDROVIĆ

FIVE MEDALS IN LONDON

ine cellar Aleksandrović has achieved a huge success in major world wine competitions held in the UK, a country that was not only the world’s most influential market for centuries, but also the market that reveals new regions and producers, as well as launching new directions and trends in world wine production. On the International wine and spirits competition, among more than 5,000 wines from 50 countries, three wines from wine cellar Aleksandrović won medals: Trijumf Barrique, vintage 2006, won the silver medal and great recognition “best in class”, while the judges marked it as “the wine of very different style”. In the red wine class, Trijumf Noir and Vizija, vintage 2006, won bronze medals, while at the world’s biggest competition, “International wine challenge”, Trijumf Barrique, vintage 2006, won bronze medal in the class of white wines. And finally, at the most prestige wine competition in the world, “Decanter World Wine Awards”, Trijumf Barique, vintage 2006, also won bronze in the class of white wines, as did the Trijumf Noir, vintage 2006, in the class of red wines. Bearing in mind the enormous importance of these competitions and that wines are judged by the world’s most reputable judges, as the number of medals too, it can be said with certainty that this is not only a historic success of the wine cellar Aleksandrović, but rather an historical success of Serbian wine in general. With these recognitions, Wine cellar Aleksandrović once again confirmed itself as the avantgarde operator of Serbian wine production. 50 CorD 61 / June 2009

NEW APEX LOAN FOR SMES

he Serbian government building hosted the signing of the latest agreement on the new (third) credit line from the European Investment Bank on 14th May. The agreement was signed by Vice-President of the European Investment Bank, Dario Scannapieco, on behalf of the European Investment Bank (lender), Serbian Finance Minister Diana Dragutinović, on behalf of the Republic of Serbia (borrower) and Vice-Governor Ana Gligorijević, on behalf of the National Bank of Serbia (agent). The newly approved European Investment Bank (EIB) Apex loan is worth €250 million under favourable terms to support the further development of the private sector in the Republic of Serbia. The third Apex Loan will be used to finance SMEs and entrepreneurs, including leasing arrangements, in the minimum amount of 70% of the total amount of the loan. Loans to SMEs and entrepreneurs financed from this credit line will have a repayment term of up to 12 years and a grace period of up to four years. Loans for infrastructure projects will have a repayment term of up to 15 years with a grace period of up to five years, while loans for leasing will have a repayment term of up to seven years and

a grace period of up to two years. The second credit line was implemented through UniCredit Bank, Komercijalna banka, Erste Bank, OTP banka, Privredna banka Beograd and Čačanska banka; it provided 61 loans and ensured the creation of 1,057 jobs. Source: B92

MPC ADOPTS SUPPLEMENTS

FOR COUNTRY’S FI NANCIAL STABILITY

anks are now be able to allocate 35 per cent of their foreign currency required reserves in dinars instead of the existing 40 per cent required by the Decision on Banks’ Required Reserves with the National Bank of Serbia. The new allocation level came into effect as of 18th May 2009. In an attempt to boost the dinar liquidity of the banking system, MPC adopted Supplements to the Decision on Special Facilities Supporting the Country’s Financial Stability at a recent extraordinary session. Pursuant to the Supplements, banks participating in the Financial Sector Stability Programme can lower the dinar share of their foreign currency required reserves. Source: Politika

KOSTIĆ TO GET 63 ACRES ON MT. KOPAONIK

iodrag Kostić’s MK Group, which bought two Kopaonik Mountain hotels, 102 apartments and a restaurant for €23 million at the end of the last year, now requires the urgent conclusion of the purchase agreement or cancellation, since the company is still paying the rent. According to the Serbian Privatisation Agency, Kostić’s company has not requested cancellation so far, but should it do so the Agency may collect the bank guarantee of €16.1 million. “According to tender, MK Group has to raise the level of the purchased hotels to a four-star category. That means that the company has to provide 60 per cent of parking spaces in relation to the number of rooms, which is a total of 360 parking places,” a company representative said. Source: Blic

SERBIA & IRAN TO PROMOTE ECONOMIC COOPERATION

erbian Economy & Regional Development Minister, Deputy PM Mlađen Dinkić, and Iranian Minister of Trade, Masud Mirkazemi, signed a protocol agreement on a joint Serbian-Iranian commission for economic co-operation. Dinkić said that the aim is to promote trade with Iran, considering that the Iranian market covers 82 million people and Belgrade used to export goods worth over $1 billion annually to Iran. The deputy PM confirmed that negotiations on a free trade agreement with Iran will start and noted that there is potential to export Serbian meat to Iran. We have opportunities to increase trade. The figures are rather humble presently, at only $50 million, but the Iranian Commerce Minister has expressed his hope that very soon it will be possible to increase trade with Serbia, so that it would be at least 1% of Iran’s overall foreign trade, or nearly $1.5 billion annually, said Dinkic. Source: Politika

PRIZE FOR DELTA AGRAR

elta Agrar Company is the laureate of the Agribusiness Leader in Fruit Growing award given out by the Business Journalists Club in collaboration with the Novi Sad Chamber of Commerce and the Association of Agriculture Journalist. The prize was awarded to the company on 10th May at the agriculture conference entitled “The role of knowhow and education in raising export competitiveness of domestic products and agricultural development”. The conference took place at the 76th International Agricultural Fair in Novi Sad. Delta Agrar was awarded for its orchard on the Podunavlje estate in Čelarevo which, according to the jury, is applying new technologies in apple production thus raising the export competitiveness of domestic production. Delta Agrar has a contemporary apple plantation in Čelarevo which stretches across

100 hectares. The orchard is modeled according to the world’s biggest apple producers from South Tyrol, it is protected against frost and hail, and uses a “drop by drop” irrigation. In growing six varieties of apple, which are in a high demand world-wise, the company is using the best quality apple scions. In 2009, Delta Agrar anticipates the apple yield of 2,000 tons, with the orchard reaching its maximum yield in 2001, when we expect up to 70 tons of apples per hectare.

SWISS FINANCIAL SUPPORT FOR POVERTY REDUCTION PROJECTS

erbia’s Deputy Prime Minister for EU integration, Božidar Ðelić, and Director-General of the Swiss Agency for Development and Co-operation, Martin Dahinden, have signed a joint statement concerning financial support to Serbia for social integration and poverty reduction projects. Speaking on the occasion of the signing, Ðelić said that the donation of €250,000 will make it possible for Serbia’s social inclusion and poverty reduction team to work on projects which will Source: Beta help stop social gaps from widening further during the current crisis.

CORRECTION

n the aim special edition ‘Guide to the Banking and Financial Sector in Serbia’, outdated information was erroneously published relating to Piraeus Bank. The actual members of the bank’s Executive Board are as follows: Dimitrios Frangetis, Chairman of the Executive Board, Konstantinos Vagiotis, Dimitris Kariotis and Dušan Milinković, members of the Executive Board. Piraeus Bank currently has 47 affiliates. aim would like to apologise for any inconvenience caused.

NEW ECLASS VOTED BESTLOOKING CAR IN THE WORLD

ome 100,000 readers of motoring magazine AUTO BILD have voted the new MercedesBenz E-Class the best-looking car in the world. As well as electing the Saloon as the overall winner among all the new models, AUTO BILD readers voted the new E-Class Coupé into top place in the “Coupé and Cabriolet” category. In making these choices, the readers have recognized two automotive personalities which deliberately seek to stand out with their individual character and bold, distinctive design. Personal taste is the decisive factor in the annual Design Award vote organized by AUTO BILD, Germany’s largest motoring magazine. In this year’s edition of the celebrated automotive beauty contest the competing vehicles – all of which made their debut in the market in the last year – were divided into five categories. In the particularly prestigious overall ranking it was the new E-Class that found favour with the readers of AUTO BILD. As a result, the world’s most successful business saloon can also claim to be the most attractive new car in the world. Mercedes-Benz Head of Design Gorden Wagener commented: “Our new E-Class stands for status, quality, highly advanced technology and driving pleasure – and it also reflects these attributes in its self-confident design. All these factors mean that the new E-Class promises to be a real trend-setter.” Of course, there is much more to the world’s bestlooking car than just its appearance. The special characteristics of the world’s top-selling luxury saloon include a unique combination of driving assistance systems. Other characteristics typical of the E-Class are the high level of long-distance comfort, the high-quality materials used in the interior, the painstaking workmanship and the perfect ergonomics. What’s more, independent analysts judge that the new E-Class offers the best value retention in its class. CorD 61 / June 2009 51

FACES & PLACES |

A traditional campaign “Five minutes of thundering silence”, organised by the Association of Journalists of Serbia and Serbian Union of Journalists (UNS), was held in Pionirski Park on 3rd May, World Press Freedom Day.

U.S. Ambassador to Serbia, H.E. Cameron Munter, (centre) and Serbian Minister of Agriculture, Saša Dragin, (left) visit the International Agricultural Fair in Novi Sad on 12th May.

Italian Ambassador to Serbia, Alessandro Merola presented the medal “Zvezda solidarnosti” (The Solidarity Star) for business merits to the CEO of Hemofarm Group and Deputy CEO of STADA Group, Miodrag Babić, on 15th May at a ceremony in Vršac hotel, Vila Breg.

Spanish Ambassador in Belgrade, H.E. Ignacio de Palacio Espana, held a reception on the occasion of 60th anniversary of the establishment of the Council of Europe. Pictured: Ambassador de Palacio Espana and Sonja Liht

Members of the diplomatic corps in Serbia, pictured after touring Belgrade’s facilities to be used at the upcoming 25th Summer Unviersiade World Student Games. 52 CorD 61 / June 2009

The now traditional Night of Museums event was held on 16th May at several dozen museums in Serbia. Pictured is a scene from the Night of Museums in Belgrade

H.E. Denise de Hauewere, Belgian Ambassador to Serbia, speaks to guests at the 13th May reception at the Royal Belgian Embassy marking the project “Database of 1,500 Serbian women professionals”.

The World Press Photo exhibition opened at Belgrade’s Dom Omladine on 16th May. The winners of the last year’s competition in journalistic photography presented their works at the exhibition. Pictured, left-toright: H.E. Hans Ola Urstad, head of the OSCE Mission to Serbia Femke van der Valk of World Press Photo, H.E. Ron J.P.M. van Dartel Dutch Ambassador to Serbia and Serbian Culture Minister Nebojša Bradić.

H.E. Hana Hubackova, Ambassador of the Czech Republic, chats with H.E. Cameron Munter, U.S. Ambassador to Serbia, at a 13th May reception marking the publication of the May/June issue of Czech Airlines’ in-ﬂight magazine “Review”, featuring Belgrade and Serbia.

H.E. Alessandro Merola, Italian Ambassador, and Alessandra Bertini Malgarini, Director of the Italian Cultural Institute in Belgrade (right and far right), pictured at the exhibition “Oltre lo specchio” (Behind the mirror) on 16th May. CorD 61 / June 2009 53

FACES & PLACES |

H.E. Erwin H. Hofer, Ambassador of Switzerland, hosts Ambassador Martin Dahinden, Director General of the Swiss Agency for Development and Cooperation, at a festive reception on 8th May.

To mark the 4th anniversary of its operations in Serbia, Piraeus Bank sponsored a National Theatre of Northern Greece performance of Shakespeare’s famous play “King Lear” at the National Theatre of Belgrade on 29th and 30th May. Pictured: Serbian Culture Minister, Nebojsa Bradic, Piraeus Marketing & PR director, Miroslava Nesic-Bikic, and H.E. Dimosthenis Stoidis, Greek Ambassador to Serbia.

H.E. Arthur Koll, Israeli Ambassador to Serbia, addresses guests at the opening of the exhibition “Fulﬁlling the dream” at the house of Ðura Jakšić on 5th May.

H.E. Abdelkader Mesdoua, Algerian Ambassador to Serbia, pictured beside a portrait of Algerian president Abdelaziz Bouteﬂika at elections to the Assembly of the Society of the Friends of Algeria on 5th May.

H.E. Maciej Szymanski, Polish Ambassador to Serbia, speaks to U.S. Ambassador Munter at the Polish Constitution Day reception on 6th May. 54 CorD 61 / June 2009

H.E. Ron J.P.M. van Dartel, Ambassador of the Kingdom of the Netherlands, and H.E. Alexander Konuzin, Ambassador of the Russian Federation, raise at toast at the Dutch Queen’s Day reception on 29th April.

Serbian President Boris Tadić talks to H.E. Josep M. Lloveras, the Head of the European Commission Delegation to Serbia, at a reception held to mark Europe Day on 11th May.

H.E. Maciej Szymanski, Ambassador of Poland to Serbia, pictured speaking at the 28th April signing ceremony for the Code Share Agreement between JAT Airways and LOT Polish Airlines.

Lt. Col. Terje Haaverstad, Norwegian Defence Attaché, welcomes British Ambassador Stephen Wordsworth to a 14th May reception marking the Constitution Day of the Kingdom of Norway.

H.E. Muhammed Abdulah Dalimuthe, Indonesian Ambassador, and Serbian director Goran Marković, pictured at the presentation of Indonesian Film Festival in Belgrade on 20th May

Serbian president Boris Tadić welcome U.S. Vice President Joseph Biden to Belgrade on 20th May. Biden is the most senior American ofﬁcial to visit Belgrade since President Jimmy Carter visited Yugoslavia in 1980.

CorD 61 / June 2009 55

SPORT

BELGRADE’S POSTCARD TO THE WORLD

THE 25TH SUMMER UNIVERSIADE WILL TAKE PLACE IN THE SERBIAN CAPITAL FROM 1ST TO 12TH JULY

The Serbian capital has been granted the honour of playing host to the 25th World Student Games, Summer Universiade; the biggest sporting event on the planet in 2009.

By Nenad RADOJEVIĆ

he July games will be the best opportunity to show the world that Belgrade can be a great sporting host – a fact proven in the recent past when Belgrade staged the European Basketball Championships and the European Volleyball Championships (2005), as well as the European Water Polo Championships (2006). During the games, the University Village will house about 9,500 athletes from 138 countries, though it is quite possible that these figures while go up by the time we see the opening ceremony at the Belgrade Arena. The sheer numbers of competitors and visitors ensure that the student games are a fresh chance for Belgrade to send the most 56 CorD 61 / June 2009

beautiful postcard to the rest of the world, one that will only bring good to Serbia in the fields of sports, tourism and politics. Zoran Jovanović, General Manager of the Universiade, is aware of this opportunity and is ready for the challenges ahead. “Universiade is the greatest collective sporting event after the Olympic Games and its importance to promoting the host country is unquestionable. The organisation of the Universiade is assigned in the same way as the Olympic Games and there are always many strong competitors vying to win the right to stage the games. This speaks volumes about the prestige that being an organiser of the student games brings,” Zoran Jovanović tells CorD. The Serbian capital is obliged to provide foreign tourists with a pleasant time. Over 10,000 foreigners will come to Belgrade and they will be the best promoters of our country elsewhere in the world. The impressions that they take away with them are more effective than any campaign. It is clear that this is an opportunity that should not be missed. We are preparing a memorable time for our guests. We are going to organise special programmes for the athletes accommodated in the University Village, while a working group set up solely for this occasion by the city authorities will oversee a number of events to be held on the streets of Belgrade. The global financial crisis has had an impact on funding and Universiade’s budget was reduced to about €50 million at the end of last year. However, a good investment return is, of course, expected.Universiade, just like the Olympic Games, is not an event where profit can be measured simply by looking at expenditure/revenue ratio. We are talking about investments, reconstruction and improving reputations here. For example, all the furniture currently adorning the University

Village apartments will be donated to student dorms immediately after the Universiade. This will probably be the most extensive furnishing of student accommodation ever. The tracks on the FC Red Star and Military Academy stadiums will be the best in the region; most Belgrade hotels will be fully booked, generating a guaranteed income for the city’s economy. Following budget cuts, reducing the number of sports at the Universiade was inevitable. Now there will be 15 instead of 21 sports - with handball, karate, archery, wrestling, rowing and canoe/kayak omitted - while the number of athletes was reduced by 3,500. On the eve of the Universiade, some media reported that certain facilities would not be ready on time, due to a lack of funds. This is the case with the sports hall in Inđija that was supposed to be the volleyball venue and certain problems with reconstructing a swimming pool in Obrenovac. Competitions will be held in 41 sporting facilities in Belgrade, Novi Sad, Vršac, Smederevo and Inđija. We always have backup facilities, so the delay in building the hall in Inđija will not cause a problem. Volleyball competitions will be held in Lazarevac. All facilities must meet the standards of FISU (the International University Sports Federation) and not a single facility can be approved without the FISU technical committee inspecting it first. Therefore, we should not fear that something will be below the standards required for an international sporting event. One facility that’s certainly always subjected to scrutiny is Red Star’s Marakana Stadium, where the opening ceremony should take place. Extensive construction works should have been carried out on the stadium, but the plans have been altered due to budget cuts. A new running track is being built on the Marakana by Mondo Company – the global leader in the production of sporting facilities. Along with the Military Academy’s stadium, Belgrade will now boast the two best tracks in the region. These top notch running tracks will certainly suit the athletes who are going to train and compete on them. There are conflicting opinions about the necessity of organising the Universiade in such a specific time for the global and national economies. Many claim that important infrastructure will not stay behind the Universiade, primarily that pertaining to sporting facilities.

Zoran Jovanović, General Manager of the Universiade

Following budget cuts, reducing the number of sports at the Universiade was inevitable. Now there will be 15 instead of 21 sports The financial crisis is global, as well as local. Initial plans had to be adjusted to the new situation, but it is not true that nothing of the infrastructure will remain. Sports halls have been built in several cities. They were built by local governments, with the Universiade being the initiator. Belgrade and other host cities will be additionally gentrified, with many utility works carried out. These are works that would not have been considered a priority if it weren’t for the Universiade. There is a saying that goes “whatever may be, may be”, but I like to look at the facts and try to reach the maximum under the given circumstances. I am sure that we are going to succeed in this and our goal is to make this Universiade the best ever, despite aggravating conditions – concludes Zoran Jovanović.

NO FEAR OF ‘MEXICAN FLU’

ust when the media frenzy about Mexican flu is starting to die down, here comes the Universiade. A competition as large as this one should be prepared for this kind of potential danger. There is no place for fear, but there is for caution and preparation. Both domestic and world health organisations know that a large number of people from all over the world will assemble in Belgrade in July and our specialists are continuously communicating with the World Health Organisation. The Military Medical Academy (VMA) will be in charge of the athletes’ health and the sports village medical facilities are prepared for any situation. It is hard to believe that national teams will jeopardise their health and the health of the other participants by taking part in the Universiade while suspecting bad health. We are ready to conduct specific checks and apply additional measures – Jovanović says. CorD 61 / June 2009 57

CULTURE

ARTISTS SHOULD

MILČO MANČEVSKI, FILM DIRECTOR / SCREENWRITER

ALWAYS PLAY

“ I am aware of the risks associated with changing genre and failing to meet the requirements demanded by both audiences and critics alike.” By Žarka RADOJA

“I

think artists need to be constantly alert, playing and always working a lot. When you work in differing genres you are staying awake; challenging yourself creatively. I find it quite sad when I see authors repeating themselves

World renown Mančevski achieved global acclaim in 1994 for directing the ﬁlm Before the Rain 58 CorD 61 / June 2009

all the time. How come they don’t get bored? It’s like working in administration!” Milčo Mančevski, the most successful director from FYRMacedonia and a long-time resident of the U.S., was recently embroiled in a media battle prompted by a tourism promotion film advertising the former Yugoslav republic. The controversy began when neighbouring Greece – which has been at odds with FYR Macedonia for years about the country’s name – lodged a formal complaint over the promo film, which shows ancient Greek heritage in a Macedonian setting. True to himself, Mančevski immediately branded the complaints as being “out of order”. Mančevski achieved global acclaim in 1994 for directing the film Before the Rain, which was awarded a Golden Lion at the Venice Film Festival and nominated for an Oscar in the best foreign film category. The 50-year-old director says that

FILM LOVERS

hat is the last film you watched that kept you in your seat until the very end? A few years ago I saw Keane, an independent American movie, and I really liked it. Recently I saw a Turkish film – Three Monkeys. And recently I saw, for the very first time, Federico Fellini’s Amarcord. You see, I don’t watch movies like some film lovers do.

he is tired of stereotypes, which is one of the reasons why he has only directed three feature films of three different genres: Before the Rain is a drama, Dust is a western, while The Shadows is a horror flick. Mančevski studied art history and archaeology at the Skopje Faculty of Philosophy before relocating to the U.S., where he graduated from Southern Illinois University’s Cinema and Photography School in 1983. Today he is a teacher at the same school, while he also continues to work as a screenwriter and director, though he often says that he would be happiest if he were a writer. Speaking exclusively to CorD, Mančevski discusses his views of contemporary film, the effects of the global economic crisis on Hollywood, the controversy surrounding the film promoting his home country and problems between FYRMacedonia and Greece. You directed a promotional video commissioned by the Tourist Organisation of Macedonia, which was seen all over the world and caused uproar in Greece. What happened? That’s nothing new. This is a problem that Greece has had with Macedonia for a long time now. I view this problem from two different perspectives: number one, this is outrageous – imagine somebody coming up to you and saying you cannot use your name! This is not mature behaviour! My father is Macedonian, my grandfather is Macedonian, I am Macedonian and that’s it. On the other hand, I understand that Greece is using politics to try to hide the historical truth that in 1912 (which is when Greece conquered Macedonia for the first time) it carried out ethnic cleansing in Aegean Macedonia. By behaving in such an aggressive and hysterical manner, Greece is trying to divert attention from the problem, as well as from the problem of the ethnic homogenisation of the whole state. To tell you the truth, I am not that astounded by the way Greece behaves, but by the European hypocrisy which is the sad fact of the whole situation. In your opinion, where can a resolution to the ‘name’ problem between Greece and Macedonia be found? I am really not that smart and I see no solution or a clever compromise being reached soon, considering the impudence of the Greeks. This is not only a “name” issue, but rather an issue of language, culture and dignity. Macedonia should not back down, since that could seriously harm the country’s collective conscious, while on the other hand the country cannot forsake its European future. Greece also has no reason to give

I am not that astounded by the way Greece behaves, but by the European hypocrisy which is the sad fact of the whole situation up on its demands. So, we are currently in a status quo situation and I see no chance that a decent compromise can be reached. What is the specific problem caused by the promo film? This is a tourism clip, designed to invite tourists to come to Macedonia. We don’t have beaches, pretty towns or a history of tourism, for that matter, so I decided to make a clip about this semi-mystical country that is reminiscent of the Aztec homeland, ancient Atlantis, Tibet; I chose to depict Macedonia through its cultural and historical heritage. And we do have a rich heritage. People have been living, working and creating here for as long as human history itself. We worked for a quite long time on the clip. Extensive research concerning the country’s archaeological treasure was carried out and everything that was shown in the clip was from archaeological digs on the territory of Macedonia. Hence, I don’t understand why Greece is so hysterical about the clip. If this is a country with an opulent history and past, why should it mind if somebody else takes pride in its own history and past, i.e. researched it and made it popular? What were the differing reactions to the film like? The rest of the world reacted in a positive manner. The Bradt tourist guides praised the clip and it had something like half a million hits on YouTube.

Milčo Mančevski, Film Director “We all like seeing movies that create their own worlds” CorD 61 / June 2009 59

CULTURE

to present a series of five photographs each. The emphasis is on the visual and formal and the exhibition is due to be opened in the Skopje Museum of Modern Art this autumn. What do you think of your home country’s film scene? I don’t know much about it. As far as I can see, there are good and bad movies, just like anywhere else. I don’t like watching films, so this is really not the right question for me. Why don’t you like watching films? They are predictable, boring, and in 99 per cent of cases the beginning of the movie already tells you the end. I am far more interested in reading a biography or short story, seeing an interesting exhibition or watching an NBA game, where you never know how it will end.

You spend some time in FYR Macedonia, but you are mostly residing in the U.S. Has the global financial crisis affected the film industry globally? I think that the crisis is yet to be felt in Europe, since European film is dependent on state assistance. In the U.S., though, the crisis is very much being felt, though I think that Hollywood could actually even profit from it. During these crisis times, people will need more entertainment and it’s cheaper to go the cinema than to go on holiday. Hollywood is a strange beast when it comes to films that are not purely commercial. Even if you do manage to find money for your movie, which is not that difficult since the technology is so cheap nowadays, you are faced with the other obstacle of distribution companies. This is an obstacle that mostly unimaginative movies jump across, at least in America. Very few films manage to get through in the U.S., and I don’t mean independent production, since that is mostly junior Hollywood movies. You are doing some new projects. What kind of work can we expect to see from you in the near future? I am mulling over an idea for a movie. You will find out more about it in the autumn. The working title is As a Baby and the film’s form is pretty unconventional. I am also preparing an exhibition of a few short forms. This is an exhibition of photographs entitled Five Drops of Dream, through which I’m going

Career choice “I really wanted to be a writer, but was working in a language that was unknown and ﬁlm came as a sort of extension” 60 CorD 61 / June 2009

You are making mostly short and experimental films, with only the occasional feature film. What inspires you and compels you to make film? There is this basic feeling – be it sadness, fear, brazenness or something totally different – then you have a story, which is actually the easiest part of making a movie. I am interested in people: things that happen to them; things they dream about. I am terribly attracted to working on a form or structure and playing with expectations. I love experimental art and am trying to fuse it with traditional narrative film. Some people like it, some don’t. We all like seeing movies that create their own worlds, their own reality or a dream, which is perhaps why movies are so appealing. I find it more creative to work with experimental art or to write. Why do you make film at all? I really wanted to be a writer. However, I was working in a language that was unknown and film came to me as some sort of extension. For me, both film and writing are actually storytelling. The means are somewhat different, but the essence is the same. Later I realised that lot of people are needed to make a film, in addition to good organisation, big money and several other factors that I don’t need for writing. Writing screenplays and editing are still the dearest parts of making a movie for me. Maybe I will concentrate more on writing in the future,. Was it the predictability of others that prompted you to do different film genres and, thus, surprise both your colleagues and audiences? For the most part, I would say yes. I think artists need to be constantly alert, playing and always working a lot. When you work in differing genres you are staying awake; challenging yourself creatively. I find it quite sad when I see authors repeating themselves all the time. How come they don’t get bored? It’s like working in administration! On the other hand, I am aware of the risks associated with changing genre and failing to meet the requirements demanded by both audiences and critics alike.

JUNE 09. / ISSUE NO. 61

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CULTURE

ASTONISHMENT & FASCINATION

The Katzen Art Centre in Washington’s American University Museum is hosting an exhibition of Serbian art entitled ‘On Normality’ By Jelena JOVANOVIĆ

he exhibition will run in Washington until 7th June. It shows the works of significant contemporary Serbian artists, like Milan Aleksić, the Apsolutno Association, Biljana Đurđević, Uroš Đurić, Zoran Marinković, Goranka Matić, Era Milivojević, Zoran Naskovski, Vladimir Nikolić, Tanja Ostojić, Neša Paripović, Vesna Pavlović, Balint Szombathi, Zoran Todorović, Milica Tomić and Raša Todosijević. 62 CorD 61 / June 2009

Speaking at the opening of the exhibition, Jack Rasmunssen, curator of Katzen centre, said that the works are excellent examples of how artists reacte to a totalitarian regime. “This is a story about survival and, hence, it is a very difficult one. This isn’t an exhibition that you just run through.” The exhibition On Normality premiered in Belgrade’s Museum of Contemporary Art in 2005, as a project envisaged by a creative team that included Branislava Anđelković, Branislav Dimitrijević, Dejan Sretenović and Borut Vild. Close to 100 works of 60 authors were exhibited at the premiere. The

intention was to present domestic audiences with a wider picture and an insight into the art and artistic practices that existed in the last decade of the 20th century. “The fact remains that during the 1990s, at the time of crises, wars and sanctions in Serbia, there was always inspiring art, but during that period galleries and museums were far removed from presenting this art in an adequate way. Back then, the Museum of Contemporary Art was showing only Serbian art that favoured some kind of national goals and desires. We were of the opinion that it was necessary to do a review of the most significant art as soon as possible, but with a timeline of four or five years. So, in 2005 we assembled this exhibition and showed a broader picture,” explains Branislava Anđelković, director of the Museum of Contemporary Art. Anđelković says that the catalogue accompanying the exhibition (available in both Serbian and English) is a real museum edition in the style of a monograph. It has over 400 pages and contains historical context in addition to texts on the artists and their works. The exhibition On Normality debuted in the Dutch port city of Rotterdam in 2006 as part of a video selection. For the purposes of the exhibition in Washington, Dejan Sretenović made a selection of artwork and chose 24 artists to present their work at the exhibition. These works of art are already part of the MSUB’s permanent collection, which the museum purchased from the 2005 exhibition. The Washington exhibition is, thus, a summarised version of the 2005 exhibition, representing the work carried out by the museum and the works of Serbian artists mainly of the middle generation. “This project creates co-operation between various museums in the field of contemporary visual art and was the first project jointly implemented by institutions from Serbia and the United States in the last few decades. The exhibition is organised following an initiative by the Katzen Art Centre, which has a current programme that’s mainly dedicated to presenting the contemporary art of countries (Hungary, the Czech Republic, Serbia) with cultures that are relatively unknown to the U.S., and particularly Washington, audiences.” Andjelkovic says that one interesting point about the exhibition On Normality was the way it was received in Washington: “at the opening of the exhibition in Washington, Jack Rasmunssen said that he was fascinated with the fact that the Serbian art scene resisted simply imitating western trends (something that many Eastern European countries failed to do during that period). This exhibition is of an authentic art scene. These are great authors who openly speak about their views of the world and the society in which they are living and are look-

This project creates co-operation between various museums and is the ﬁrst joint Serbian-U.S. project implemented in decades ing back at the abnormal way of life and work in the 1990s.” Slobodan Nakarada, Executive Director of MSUB, was at the opening of the exhibition. He brought back positive feedback from all relevant Washington media that were present at the exhibition, with a lot of visitors coming to see the exhibition in May and reacting to it positively. “I think Jack Rasmunsen was very brave, because most of the galleries in the States are now commercialised and are more or less showing just commercial art with specific artists and for a specific market. This is something new to them. The Katzen Centre is known for exhibiting art that is unfamiliar to America. And we are, unfortunately, due to our own fault, unknown to them. The exhibition opening was marked by amazing reactions from attendees, because they were not familiar with Serbia or its artists. When you are opening an exhibition in the U.S. there is a different system of organisation than in our country. They invited their experts, who had a critical approach to what we had done. We were very glad to have received very positive reviews. They were astonished that Serbia has the capacity to do something like this. They were also perplexed as to why we hadn’t shown our art abroad before this, especially in America, which has an extremely distorted picture of Serbia.” Anđelković says that the exhibition certainly lived up to expectations. “This is the biggest representation of Serbian art in the world for the last 30 years. Unfortunately, due to the poor image that Serbia has, there is a lack of interest for our artistic production... Political and other problems should not affect cultural exchanges, but this is exactly what happened and now we can turn around, make an inversion and say that, through cultural diplomacy and performances like these and this representation of our art, we can significantly effect the status of our country in America and Europe.”

Troubled times “...during the 1990s, at the time of crises, wars and sanctions in Serbia, there was always inspiring art,” CorD 61 / June 2009 63

FROM THE WORLD PRESS

TOP FRENCH CHEF ALAIN DUCASSE OPENS PARIS COOKERY SCHOOL by Jan van der Made 13th May Alain Ducasse has top-class restaurants in Paris, New York, London and Tokyo. Now ordinary citizens have a chance to learn some of his culinary secrets. A tender, mouth-watering, truffelled filet mignon, grilled, and pan-fried to perfection, served on a lush bed of greens, sits next to a tiny glass cup of gaspacho, crowned with basil leaves. These are the fruits of one morning of lessons at top French chef Alain

The school is aimed at a public eager to eat something a little more imaginative than a croque monsieur (cheese on toast) or steack frites (steak and chips).

Ducasse’s L’école de cuisine, which opened in Paris on Tuesday. The chefs and their new pupils clean up, and within minutes the kitchen is spotless: another group of students is waiting, eager to learn how to give that extra touch. The school is aimed at a public eager to eat something a little more imaginative than a croque monsieur (cheese on toast) or steack frites (steak and chips). Located in the chic 16th district of the capital, the 700m2 school is equipped with latest-technology, stainless steel cooking equipment. But the guiding philosophy behind making a top class meal is simple. “You look what ingredients you have in your kitchen,” says Ducasse. “You look at what’s for sale at the market. You look at what recipes you know. And you look at what kind of guests you’ve invited.” Would-be cooks can learn more recipes at the new school. Eight-hour courses cost up to 330 euros and include breakfast and a four-course meal, prepared under the guidance of a chef.

THE BANKING INDUSTRY: THREE TRILLION DOLLARS LATER... 14th May There is no single big remedy for the banks’ flaws. But better rules—and more capital—could help. Could there be a better time to be a bank? If

64 CorD 61 / June 2009

you have capital and courage, the markets are packed with opportunities—as they well understand at Goldman Sachs, which is once again filling its boots with risk. Governments are endorsing high leverage and guaranteeing huge parts of the financial system, so you get to keep the profits and palm off the losses on the taxpayer. The threat of nationalisation has receded, reinvigorating the banks’ share prices. Money is cheap, deposits plentiful and borrowers desperate, so new lending promises handsome margins. Back before the crash, banks’ profits just looked big; today they might even be real. It should be obvious by now that in banking and finance the twin evils of excessive risk and excessive reward can poison capitalism and ravage the economy. Yet the price of saving finance has been to create a system that is more vulnerable and more dangerous than ever before. Some argue that only draconian re-regulation can spare taxpayers from the next crisis. The structure must be changed. Governments should purge banks that are big enough to hold the system to ransom. Or they should seek to slice through the entanglements, cordoning off the dangerous bits. New “narrow” banks would be guaranteed a seat in the lifeboat by the state and heavily regulated for the privilege. The rest of the industry would be free to swim—and to sink. Nobody wants to have banks that are so big that they stifle competition (itself a source of stability), but breaking big banks up into tiny bits that pose no systemic risk would be a horribly complex and lengthy task. As for narrow banks, precisely which bit is too important to fail? People’s idea of a systemic risk can change quickly. Today’s rescues have included investment banks and insurers, neither of which used to be regarded as system-threatening. Regulators can also use markets. Banks’ solvency depends on a bedrock of capital. Regulators could monitor how this trades, or use markets that gauge the risk of insolvency, to help decide when banks must raise

It should be obvious by now that in banking and finance the twin evils of excessive risk and excessive reward can poison capitalism and ravage the economy

more capital. Regulators could get managers to watch for systemic risks by linking their bonuses to the bank’s bonds. If managers identify with shareholders, as they do now, then they worry only about shareholders’ losses. Catastrophic losses bigger than that are all the same to them. Smarter regulators and better rules would help. But sadly, as the crisis has brutally shown, regulators are fallible. In time, financiers tend to gain the advantage over their overseers. They are better paid, better qualified and more influential than the regulators. Legislators are easily seduced by booms and lobbies. Voters are ignorant of and bored by regulation. The more a financial system depends on the wisdom of regulators, the more likely it is to fail catastrophically.

Regulation cannot prevent financial crises altogether, but it can minimise the devastation. Loading banks with equity slows the creation of credit, but the reward for a healthy financial system is faster growth over the long term. There are three trillion reasons to think that the trade-off is worth it. Medvedev: “attempts to rewrite history are becoming more and more harsh, depraved and aggressive”

TURKEY:VILLAGE GUARD SYSTEM TO REMAIN 11th May Interior Minister Besir Atalay on Saturday (9th May) ruled out the possibil-

“The militia system was built based on Turkey’s needs, and it has played an important role in the protection of villages”

ity of abolishing state-supported village guard units, despite last week’s killing of 44 people at a wedding party in the southeastern province of Mardin. “It is not fair to blame the militia for the tragedy in Mardin. The militia system was built based on Turkey’s needs, and it has played an important role in the protection of villages,” he said. President Abdullah Gul and Deputy Prime Minister Cemil Cicek have suggested revising or abolishing the guard, as some of the attackers were members of the village guard units. The system was established in 1985 to protect villages from attacks by the terrorist Kurdistan Workers’ Party (PKK). Human rights groups have accused village guards of murders and drug trafficking. Meanwhile, Atalay said police have arrested one more suspect in the May 4th killings in Bilge. Police do not suspect him of being one of the attackers, but he allegedly had hand grenades and other ammunition. Eight suspects face charges in connection with the crime.

pensation for the Soviet ‘occupation’. In his May 8 video blog, President Medvedev said that attempts to rewrite history are becoming “more and more harsh, depraved and aggressive.”

CHANGES PLANNED FOR GUANTÁNAMO TRIALS MAY LEAD TO FAMILIAR CHALLENGES 19th May When he announced changes to the military commission system for prosecuting detainees at Guantánamo Bay on Friday, President Obama

RUSSIA SETS UP COMMISSION TO PREVENT FALSIFICATION OF HISTORY 19th May Russian President Dmitry Medvedev has ordered the establishment of a special commission to counter attempts to falsify history to the detriment of Russia’s interests. The commission will be led by the presidential administration chief of staff, Sergei Naryshkin. The president has repeatedly criticized attempts of foreign states to falsify history, in particular post-Soviet countries’ positions on World War II and the Stalinist repression. The most prominent cases have been Ukraine’s attempts to have the Stalin-era Holodomor famine internationally recognized as an act of genocide by the Soviet Union, and Baltic countries’ demands for comCorD 61 / June 2009 65

FROM THE WORLD PRESS remains much broader than in domestic courts” in the United States. One of the senior administration officials said that although federal courts bar many kinds of hearsay evidence, “the hearsay rule is not one of those things that is rooted in American values.” The official asked, “How do you translate that into a case that is even possible in a U.S. federal court?” And then he answered his own question: “Very difficult.”

said his reforms “will begin to restore the commissions as a legitimate forum.” Defense lawyers and human right groups described some of the specifics of the plan as cosmetic and said they would continue to challenge the commissions as a flawed system. “I don’t think it’s going to make much of a difference,” said Cmdr. Suzanne M. Lachelier of the Navy, the military lawyer for one of the detainees charged with coordinating the attacks of Sept. 11, 2001. “We’re going to end up with trials with evidence that is the product of coercion and secret hearings.” The filing showed that the Obama administration had not made a substantial change in the restriction. It said that a detainee would be permitted a lawyer “of the accused’s own choosing.” But it added that the requested lawyer must be assigned to the Pentagon’s office of military defense lawyers for Guantánamo. Maj. David J. R. Frakt of the Air Force, another defense lawyer for a Guantánamo detainee who is facing charges, said that change indicated that several of the Obama administration’s alterations to the Bush administration’s system were what he called “minor cosmetic changes.” Major Frakt said detainees had not necessarily complained about the specific military lawyers assigned to defend them. “The problem is they

hearsay is important to many cases at Guantánamo that are based on accusations of other detainees or foreign intelligence agents

don’t want military counsel at all,” he said, “and this does nothing to address that.” One proposed change dealt with limiting hearsay evidence against prisoners, a type of evidence that is often limited in American courts partly to ensure that defendants can confront witnesses against them. But officials say hearsay is important to many cases at Guantánamo that are based on accusations of other detainees or foreign intelligence agents who might not be able to appear to testify. Mr. Obama’s statement on Friday said that “the use of hearsay will be limited.” But the filing showed that military prosecutors would continue to rely extensively on hearsay evidence that might be barred in federal court. A memorandum describing the administration’s changes that was filed with the military judges said that such “hearsay admissibility 66 CorD 61 / June 2009

BRITISH ECONOMY SINKS FURTHER INTO DEFLATION 17th May The fall in the RPI measure for April, which is used for workers’ wage settlements and includes housing costs such as rent and mortgage payments, was larger than expected - down from -0.4 per cent in March and

Inflation is set to fall further in the near future with RPI remaining in deflationary territory

marks the steepest decline since records began in 1948. Today’s figure has raised fears that increasing numbers of workers could be in line for pay freezes or cuts in the coming months. The sharp fall in mortgage interest payments after the recent cuts in the interest rate, which currently stands at a record low of 05 per cent, and declining house price dragged down RPI inflation. Excluding mortgage payments, RPI inflation fell from 2.2% to 1.7%, figures from the Office for National Statistics show. The Bank of England’s target measure of inflation, the narrower Consumer Prices Index (CPI), fell more steeply than forecast from 2.9% in March to 2.3% due to declines in household energy bills and the cost of food, but analysts said it is being propped up to some extent by the weakness of sterling. CPI inflation, which excludes housing costs, is still above the central bank’s teo per cent target but is expected to decline in the coming months. The Bank’s own forecasts show that CPI will fall below one per cent where it will hover for the next two years, despite the massive £125 billion scheme of quantitative easing. David Kern, chief economist at the British Chambers of Commerce (BCC), said: “These figures show that whatever the longer-term inflationary risks may be, inflation is set to fall further in the near future with RPI remaining in deflationary territory. “The main policy priority must be to alleviate the severe downturn in the economy and to contain the sharp rise in unemployment. Talk of recovery is premature at this stage, so the Bank of England must execute its quantitative programme more forcefully.”

VICE PRESIDENT BIDEN OFFERS SERBIA ‘NEW’ RELATIONS 21st May Vice President Joe Biden offered Serbia “a strong, new relationship” with the U.S. on Wednesday, along with help in its European Union membership bid, despite deep differences over independence for Kosovo. Biden said after his talks with Serbia’s pro-Western president Boris Tadic that the U.S. wants to see the Balkan country take its place in Europe “as a strong, successful democratic state” playing a constructive role in the still-volatile region. “I came to Serbia on behalf of the Obama-Biden administration with a clear message: the United States wants to, likes to, deepen its relations with Serbia,” Biden said. “Serbia is central to the southeast European future,” he said. “The region cannot fully succeed without Serbia playing a constructively leading role.” Tadic said Biden’s visit “could set the stage for the formulation of a new American policy toward Serbia and the Balkans.” Unprecedented security measures were in place in the Serbian capital for the visit by the highest-ranking U.S. official since former President

“The United States does not, and I emphasize, does not expect Serbia to recognize the independence of Kosovo,”

Jimmy Carter was here in 1980. Police banned all anti-American protests planned by nationalists during the visit. In February 2008, angry protesters set fire to the U.S. embassy in Belgrade to protest U.S. support for Kosovo’s statehood. Many here still view America as anti-Serb. The mistrust stems from the 1999 U.S.-led NATO bombing of Serbia that ended the country’s rule in Kosovo, the southern province which declared independence last year with Washington’s backing. Nationalist parties have opposed Biden’s visit, saying it amounts to a “humiliation” of the country. They accuse Biden of being the chief advocate of the 1999 bombing over Kosovo. Biden conceded that Serbia and the U.S. disagree on Kosovo, the predominantly ethnic Albanian-populated region considered by Serbs the medieval cradle of their statehood and religion. Kosovo’s declaration of independence declaration has received strong backing from the United States and major European Union nations and 59 countries have so far recognized Kosovo’s statehood. “The United States does not, and I emphasize, does not expect Serbia to recognize the independence of Kosovo,” Biden said. “It is not a precondition for our relationship, or our support for Serbia becoming a part of the European Union.” He said, “In return, we expect Serbia to cooperate with the European Union and other key international actors” in Kosovo “and look for prag-

matic solutions that would improve lives of all the people in Kosovo, both Serbs and Albanians, and avoid making them the victims of political disagreement.” Tadic reiterated that Serbia would never recognize Kosovo’s statehood and that it would try to retain it by peaceful, diplomatic means. Serbia has the backing of Russia in the U.N. Security Council.

CHINA LOOKS TO BRITISH EXPERIENCE FOR AFRICAN EXPANSION China has embarked on a series of joint projects with Britain in Africa, with the aim of avoiding the abuses and mistakes committed by former colonial powers as it rapidly increases its economic role on the continent. China invested $4.5bn in infrastructure in Africa in 2007, more than the G8 countries combined, and much of the investment has been private. The number of Chinese companies operating in Africa has more than doubled in just two years to 2,000, with about 400 operating in Nigeria alone, according to new research. However, many of the business practices followed by those companies, such as a preference for using Chinese workers, coupled with Beijing’s belief that human rights are the preserve of host country governments, have led to claims that the rapid rise in Chinese influence in Africa has not helped its human rights. “The Chinese firms that are moving are building infrastructure, they are building roads, they are providing jobs for people, but at the same time: what they are not doing, neither the Chinese government nor the companies, is raising any issues about how the population are being treated,” Irene Khan, Amnesty International’s secretary general, said today. “Therefore we find that the Chinese presence is not helping the human rights situation. It might be aggravating it when revenues and resources are

Specific problems do arise because of the tendency of Chinese to behave quite ethno-centrically.

being paid into coffers of hugely corrupt and oppressive governments.” “These entrepreneurs have an agenda of their own, which they have been left free to pursue by the Chinese government. It is the usual one of the pursuit of profit and the exploitation of business and market opportunity,” said dr Jing Gu, a research fellow at Sussex University’s Institute of Development Studies, which carried out the research. According to official figures, only 4% of China’s foreign direct investment went to Africa in 2006, compared to 26% to Latin America and 64% to Asia. But Gu said the pace of growth has been rapid. “Specific problems do arise because of the tendency of Chinese to behave quite ethno-centrically. They prefer to employ their own people; not so much Chinese nationals, as people from the same regions or even extended families as themselves, whom they know and are used to,” she said. CorD 61 / June 2009 67

CULTURE NEWS

DAYS OF SARAJEVO IN BELGRADE

outh Initiative for Human Rights, YIHR, organised an event called Days of Sarajevo, which took place in Belgrade from 14th to 17th May. The event was coorganised by local authorities of the two cities and was dedicated to dealing with the problems shared by Bosnia & Herzegovina and Serbia, as well as their European future. Days of Sarajevo was opened with an exhibition of Anja Zarić called Urban Calendar, shown in the Yugoslav Drama Theatre. The Youth Theatre from Sarajevo staged a play in the same theatre called The Time Tunnel, directed by Admir Glamočak. Close to 250 artists presented their works in several locations across Belgrade, all within various theatre, music, film and art programmes. Audiences were given an opportunity to

see theatre plays by the Youth Theatre from Mostar, the Sarajevo National Theatre and Sarajevo war theatre – SARTR, as well as contemporary Bosnian films. An exhibition of photographs called Siege in 40 Photographs by author Rikardo Larma was opened in the Centre for Cultural Decontamination. Also, various panel discussions were held covering the topics of freedom of movement and visa-free regime, freedom of media and expression, and freedom of association and determination.

been awarding individuals that contributed most to the process of European integration and the promotion of European ideals and values in Serbia. Delević stated that Tasovac was awarded for “his exceptional success as a director of the Belgrade Philharmonic and huge progress the Philharmonic made under his leadership.“ Tasovac thanked his colleagues who were “instrumental in making the orchestra a truly European institution, art and business wise“.

BORIS ISAKOVIĆ WINS IN RIJEKA IVAN TASOVAC- CONTRIBUTION TO EUROPE

n 7th May, Direc tor of the Belgrade Philharmonic, Ivan Tasovac, received the award Contribution to Europe 2009. The award was presented by Director of the European Integrations Office and last year’s laureate, Milica Delević. In cooperation with the international European Movement, the European Movement in Serbia has

ctor Boris Isaković is a laureate of the Vejko Maričić award for the best male performance at the 16th International Small Theatres Festival in Rijeka, for his interpretation of Orgon in the Tartuffe, a play staged by the Yugoslav Drama Theatre. Isaković was not the only winner in this category – Lithuanian actor, Dainius Gavenonis from the Oskaras Korsunovas Theatre

SERBIAN FILM IN CANNES

he film Ordinary people, a Serbian-French-Swiss production by young Serbian director and screenwriter Vladimir Perišić, was shown at this year’s Cannes Film Festival in the programme selection entitled Critics Week. This is the first Serbian film to be shown during Critics Week following the success of White Suit with Laza Ristovski in 1999.

68 CorD 61 / June 2009

Ordinary People is also one of five films from Eastern Europe that premiered at Cannes this year, selected alongside nine other films out of a total of 900 pictures. The first feature film by the young filmmaker deals with the issues of execution and war crimes through perpetrators’ eyes. The film shows the moments before a crime is committed and the way in which the offendor’s mind works, while trying to make audiences feel something else aside from the usual feelings of guilt, rejection and loathing for such a criminal. Perišić said that his desire was not to give a historical reconstruction of crimes on the territory of the former Yugoslavia, but rather to tell a universal story. The film cost €800,000 euros to make and financial assistance was provided by the European Cinematography Fund – Eurimage, Arte France Cinema, the Serbian Culture Ministry and Vojvodina’s Secretariat of Culture. The 62nd Cannes Film Festival took place between 13th and 24th May and included premieres of films directed by Quentin Tarantino, Ken Loach, Ang Lee, Pedro Almodovar, Jane Campion, Lars Von Trier, Michael Haneke and others.

in Vilnius was also an award recipient for his role as Claudius in Hamlet. Boris Isaković was born in Novi Sad in 1966. He graduated from the Novi Sad Art Academy and is a former member of the Serbian National Theatre. As of 2000, he is a freelance actor and, as such, acted in many Belgrade theatres. The International Small Theatres Festival was held in Rijeka, from 3rd to 11th May.

EXHIBITION OF BRUKETA & ŽINIĆ AGENCY

ne of the most renowned creative agencies in Europe, Zagreb-based Bruketa & Žinić Agency, presented their design projects to the Belgrade public from 8th to 22nd May in the Geozavod building, a beautiful 19th century construction located on Karađorđeva Street. This is the first time that the agency has presented its work in Serbia. The exhibition had three parts – idea, vizualisation and overall projects. Bruketa & Žinić presented almost 200 projects, such as the invisible cooker that needs to be baked before use (made for Podravka), then a website at which unwanted gifts are sold entitled “Sretan BiŽić“, an event for sporstware company Puma that took place in a zoo, a packaging designed for MC, Chivalon, Pitroid and others. Bruketa & Žinić Agency was founded in 1995 and has been attracting attention from audiences and experts alike for years. This agency has perhaps the greatest number of international awards – over 300. Renowned U.S. magazine, ID, declared Bruketa & Žinić the best agency in 2004, while How magazine bestowed the same title on them in 2006.

JOSTEIN GAARDER – A BELGRADE GUEST

ollowing the Serbian language release of his latest novel, The Castle in the Pyrenees, Norwegian writer Jostein Gaarder, author of world famous novel Sophia’s World, came to Belgrade on 19th May as a guest of publishing house Geopoetika. Gaarder signed copies of his book in the Akademija bookshop in Knez Mihailova Street, while his new book was promoted at the Cvijeta Zuzorić Pavillion on Kalemegdan. Jostein Gaarder was born in Norway in 1952. His most famous novel about the history of philosophy – Sophia’s World – has been translated in over 40 languages and over 30 million copies have been sold around the world. Sophia’s World was the best selling book in the world in 1995. He and his wife, Siri Danevig, are founders of the annual Sophia Award, which was first presented in 1997.

lected around two tonnes of human hair - he collected hair from hairdressing salons and military barracks for months, i.e. from places where hair represents a form of discipline, control or social care. Katarina Zdjelar lives in Holland and is known for her video work through which she explores opposite processes of self-realisation, with all its paradoxes, promises and failures.

EXHIBITION ‘ON CERTAIN LONELINESS’ AT PROGRESS

he exhibition by sculptor Jelena Krstić, entitled On Certain Loneliness, was hosted at Progres Gallery this month. The author exhibited eight large sculptures, casted in bronze, as well as drawings on large canvass in the combined techique, which accompany the sculptures.

EXHIBITIN OF DRAWINGS BY NIKOLA ŽIGON

SERBIA AT THE 53RD VENICE BIENNALE

his year’s Venice Biennale takes place between 7th June and 22nd November. Artists Zoran Todorović and Katarina Zdjelar will present their works in the Serbian Pavillion. Todorović will show his piece Heat, while Zdjelar will exhibit a piece called If you take away my voice, what are you going to leave me with. In order to complete his Heat project, Todorović systematically col-

ew Moment Gallery is hosting an exhibition of drawings by Nikola Žigon called Shitting. The author presented a series of different sized drawings with a fly as a central theme. By combining a realistic approach to drawing a fly and expressionist processing of the background and environment in which flies habitate, the author uses strong colours, letters and collages that won’t leave the observer indifferent. The fly warns that human life can be reduced to buzzing without direction. This is an invisible magnetic field, which is unmistakenly recognized by flies and which the arist draws attention to. CULTURE NEWS - By Jelena Jovanović CorD 61 / June 2009 69

CULTURE CALENDAR CLASSICAL MUSIC BELGRADE PHILHARMONIC ORCHESTRA Concerts in June All Concerts are in Kolarac Hall at 8pm 12. 06. 2009. Conductor: Uros Lajovic, Lucille Chung, piano/ Programme: Lj. Maric: Passacaglia / E. Grieg: Concerto for piano and orchestra a-moll / R. Strauss: Aus Italien Born in Montreal, Canadian pianist Lucille Chung has been acclaimed for her “stylish and refined performances” by Gramophone magazine, “combining vigor and suppleness with natural eloquence and elegance” (Le Soir). She made her debut at the age of ten with the Montreal Symphony Orchestra and Charles Dutoit subsequently invited her to be a featured soloist during the MSO Asian Tour in 1989. Lucille Chung has been hailed as “a considerable artist, admirable for her bold choice of music” by the Sunday Times for her recordings of the complete piano works by Gyorgy Ligeti on the Dynamic label. The first volume was released in 2001 to great critical acclaim, receiving the maximum R10 from Repertoire in France, 5 Stars from the BBC Music Magazine and 5 Stars on Fono Forum in Germany. 19. 06. 2009. Artistic leadership: Gordan Nikolic Soloist: Gordan Nikolic, violin Programme: J. Haydn: Symphony No. 96 F. Schubert: Polonaise F. Schubert: Konzertstuck F. Schubert: Symphony No. 5 26. 06. 2009. Conductor: Gabriel Feltz Programme: G. Mahler: Symphony No. 6

Gabriel Feltz, born 1971 in Berlin, was chief 74 CorD 61 / June 2009

conductor/ Generalmusikdirektor of the Stuttgarter Philharmoniker for the season 2004/2005. In addition, from September 2008 he assumed the position as Principal Guest Conductor at the Basel Theatre, Switzerland for two years. Gabriel Feltz has conducted leading orchestras, such as the Deutsches Symphonie, while numerous radio recordings of both opera and concert literature bear witness to his interest in new music. In February 2007 the Stuttgarter Philharmoniker under their chief conductor Gabriel Feltz were awarded the “Prix Rachmaninoff 2006” by the “Foundation Serge Rachmaninoff” in appreciation of the most comprehensive performance cycle by a German orchestra to date. 6. June, 20 00 St. George Stringers

21. June, 8pm Sara Marjanovic, piano On the ocassion of the 10th anniversary of the death of Joakin Rodrigo (1901-1999) Programme- Chopin

BORIS ĐUJIĆ, GUITAR Institute Cervantes 3. June, 8pm Concert / Programme / Spanish music / Albenis, Tarega...

WORLD MUSIC DAY Gala Concert Sava Centere, 21. May, 8pm

POP, ROCK SIMPLY RED Belgrade arena 26.06.2009, 9pm

9. June, 8pm Humanitarian Concert Organisation - Naša Srbija (Our Srbija) 11. June, 8pm Belgrade String Orchestra Dušan Skovran / Gerard Chose, viol Organisation- Jugokoncert 15. June, 8pm Chamber Orchestra Franz List Programme: Bartock, List 16. June, 8pm Ensemble KOLO

Simply Red’s classic pop and elegant ballads have provided an uplifting and emotional soundtrack to our turbulent times. Their phenomenal career has spanned three decades; they’ve released 10 studio albums, racking up over fifty million global sales, notched up over 30 top 40 UK singles, won countless awards, including 3 Brits, 2 Ivor Novellos and a Mobo Special Achievement. In February 2009 they embarked on a massive Greatest Hits World tour, coinciding with the 25th Anniversary of the band forming. They will play to over a million people by the end of the tour in 2010, starting out in Thailand, Australia, New Zealand, Mexico, Brazil, Chile and the U.S. before heading back to the UK and Europe. The tour was previewed at the sold out O2 Arena in London on 3rd December 2008.

SLIPKNOT Belgrade arena 17.06.2009. 9pm

Institute Cervantes / Until 14. June

This highly provocative, Des Moines, Iowa, U.S.-based alternative metal outfit, whose shock rock values are masked by their anonymous stage wear of matching jump suits and horror masks, was founded by Shawn Crahan (b. 24 September 1971, USA; percussion) and Paul Gray (b. 8 April 1972, USA; bass). The early line-up of Slipknot released the independently recorded and distributed Mate. Feed. Kill. Repeat in 1996. Although the band was struggling to make ends meet, their big break arrived when they were signed to leading metal label Roadrunner Records. Slipknot recorded their self-titled second album at Indigo Ranch Studios in Los Angeles, California.

PRONG Student Cultural Centre 21. June, 8pm Prong is an American heavy metal band formed in 1986. Prong had two independent releases, Primitive Origins and Force Fed. The albums attracted the attention of Epic Records, who signed the trio in 1989. The group disbanded in 1997 after the Rude Awakening tour, but re-formed in 2002. A pioneer of the urban metal scene, Prong is fronted by Tommy Victor. Members of bands such as Korn’s Jonathan Davis, Demon Hunter’s Ryan Clark and Nine Inch Nails’ Trent Reznor cite Prong as an influence to their musical style.

ART DALI AND THE MAGIC OF ILLUSTRATION

This exhibition presents 18 works of the great spanish artist. The curator of the exhibition is Maris Oropesa. Salvador Domingo Felipe Jacinto Dalí i Domènech, 1st Marquis of Púbol (1904 – 1989) was a Spanish Catalan surrealist painter born in Figueres. Dalí was a skilled draftsman, best known for the striking and bizarre images in his surrealist work. His painterly skills are often attributed to the influence of Renaissance masters. His best-known work, The Persistence of Memory, was completed in 1931. Dalí’s expansive artistic repertoire includes film, sculpture and photography, in collaboration with a range of artists in a variety of media.. Dalí was highly imaginative and also had an affinity for partaking in unusual and grandiose behaviour, in order to draw attention to himself. This sometimes irked those who loved his art as much as it annoyed his critics, since his eccentric manner sometimes drew more public attention than his artwork.

ART ZAMUR/GAMMA PHOTO EXHIBITION-DRAGOLJUB ZAMUROVIĆ Belgrade Fortress, Sava Promenade Until 30. November Dragoljub Zamurović was born in Niš in 1947. After graduating from the Faculty of Architecture at Belgrade University he went on to complete his postgraduate studies in photography at the Faculty of Applied Arts. He has won many awards for his photography both at home and

abroad. He is the author of several photographic monographs published in the United Kingdom, Germany,

Italy, the United States, Serbia, Montenegro, Bosnia, Japan... Since 1980 he has been a member of the Association of ULUPUDS (Association of Applied Artists and Designers of Serbia), which awarded him the title of Distinguished Artist in 1997. In 1988 he began co-operation with the French Gamma Agency under the pseudonym Art Zamur and his photographs have been published in many leading international magazines, such as Time, Newsweek, The New York Times Magazine, Stern, Paris-Match, Figaro Magazine, Geo, Europeo, National Geographic, etc. www.artzamur.com

THEATRE NEW PLAY AT THE YUGOSLAV DRAMA THEATRE Nebeski Odred (Himmelcommando/Sky Commando) By Đorđe Lebović and Aleksandar Obrenović, Directed By Marko Manojlović Nebeski odred (Himmelcommando) takes place in the lethal concentration camp Auschwitz, but this is not a play about the horrors of Auschwitz. It is a play about the power of life, about ways that life finds to triumph, against all odds, over evil and death. Life is simply always stronger. Starring: Miodrag Radovanović, Srđan Timarov, Aleksandar Đurić, Nikola Vujović, Goran Šušljik, Zoran Cvijanović, Petar Benčina, Nebojša Milovanović, Predrag Ejdus, Toni Laurenčić, Miloš Pjevač. The play Nebeski odred (Himmelcommando) is the first co-production between the Yugoslav Drama Theatre and the festival Sterijino pozorje. CorD 61 / June 2009 75

CULTURE CALENDAR FILM I LOVE YOU MAN From 28. May Directed by James Hamburg

Friendless Peter Klaven goes on a series of man-dates to find a Best Man for his wedding. But when his insta-bond with his new B.F.F. puts a strain on his relationship with his fiancée, can the trio learn to live happily ever after? Starring Paul Rudd, Jon Favreau, Jane Curtin, J.K. Simmons

GHOSTS OF GIRLFRIENDS PAST From 11. June

A bachelor is haunted by the ghosts of his past girlfriends at his younger brother’s wedding. Starring Matthew McConaughey, Jennifer Garner, Michael Douglas, Emma Stone, Breckin Meyer, Lacey Chabert

HANGOVER From 18. June

TERMINATOR SALVATION From 4. June

Directed by Todd Phillips A Las Vegas-set comedy centered around three groomsmen who lose their about-tobe-wed buddy during their drunken misadventures, then must retrace their steps in order to find him. Starring Bradley Cooper, Heather Graham, Zach Galifianakis, Ed Helms , Justin Bartha

Directed by McG / After Skynet has destroyed much of humanity in a nuclear holocaust, a group of survivors led by John Connor struggles to keep the machines from finishing the job. Starring Christian Bale, Sam Worthington, Moon Bloodgood, Helena Bonham Carter 76 CorD 61 / June 2009

FESTIVAL CINEMA CITY 6. - 14. June, Novi Sad Cinema City is an international film and media festival, organised by Exit Association. During the eight days of the festival, Novi Sad will be a city-festival, with a rich film, music, and academic programme. The festival’s programme concept encompasses film, music and an academic programme, as well as a new media festival. These events are to take place at more than 20 locations. Over the course of eight days, 135 films and more than 160 screenings are to be presented. The film programme will present 14 selections of domestic and foreign production, with three competition selections and numerous retrospectives. The movies are to be shown in four indoor and three outdoor cinemas with state-of-the-art cinematic equipment.

DRAGONBALL: EVOLUTION Start: 18. jun

FILM PROGRAMME

Directed by James Wong The young warrior Son Goku sets out on a quest, racing against time and the vengeful King Piccolo, to collect a set of seven magical orbs that will grant their wielder unlimited power. Starring Justin Chatwin, Yun-Fat Chow, Emmy Rossum, Jamie Chung, James Masters ...

The festival’s film Programme will present 14 selections of domestic and foreign production, with three competition selections and numerous retrospectives. The movies are to be shown in 5 indoor and 3 outdoor cinemas with most modern cinema equipment. Cinema City will also present a rich academic programme, with over 30 panels and participants from more than 10

countries. In the evening hours of the festival days, various music events are going to take place. Cinema City is going to accommodate a large number of film authors, both foreign and domestic, and the attractive film and academic Programme is intended for both film professionals and wider audience.

EXIT POINT One of the main competition selections in Cinema City Festival is the international film selection – Exit Point. From 6. to 14th of June, Exit Point is going to present a wide variety of projections of newest, foreign movies of independent character, which are going to compete for the main award – Grand Prix of the festival. Various topics, directors, and genres are united by bravery and uncompromising in the way they depict the contemporary world. The movies come from different areas, and they have been shown and awarded in many film festivals. All of the movies are going to have their premieres in Serbia. The Exit Point Programme is to take place in Serbian National Theater, with the reruns in Katolicka porta.

LATINO Through the selection of New LatinAmerican Film, Cinema City is going to present some of the best Latin-American accomplishments. Many movies made in the last several years have brought to distinguishing young authors who bring a completely new artistic expression. Numerous awards that Latin-American authors have won in recognized world festivals are the best proof of high-quality and diversity of Latino production.

UP TO $10,000 The third competition selection of Cinema City Festival is Up to 10.000 bucks. It encompasses movies made with the budget less than $10,000, which is the main condition for the participation in the selection. This part of the competition Programme is to encompass about thirty movies from around the world, with the projections in Youth Theatre.

RETROSPECTIVE OF A FOREIGN AUTHOR Within this selection, you will have a chance to see some movies that were of key significance to the development of world cinematography.

BALKAN BOX Balkan Box represents the collection of the newest production of the region. Balkan Booster Selection is an opportunity for domestic audience to see some of the most significant movies from Croatia, Slovenia, Albania, Bosnia and Herzegovina, Bulgaria, Turkey, etc.

ALEKSANDAR PETROVIĆ Within this selection, movies made by Aleksandar Petrović are going to be shown. You will have a chance to see some movies that were of key significance to the development of domestic cinematography.

BEST OF HORROR With The Best of Horror Selection, Cinema City will present, in terms of genre, strictly defined, horror movies, as well as the most important authors who work in this genre.

ANIMATRIX

NATIONAL CLASS National Class is the name of the second, of three, competition selections of Cinema City Festival. It is going to show domestic movies made in 2008 and 2009. Some of the movies are going to have their premieres, and some have already been shown. The festival is going to accommodate numerous domestic film authors. The movies in national selection are going to compete for the Grand Prix of the festival, together with the movies from Exit Point international selection, as well as for the following awards: best domestic movie, best acting, best direction…

Pedja Protic is going to share the content of his famous movie collection with the visitors of the festival. The audience is going to have a chance to see the classics of such authors as Chaplin, Tarkovski, Woody Allen, Vong Kar Vai…

PLANET ROCKT In Planet Rock Selection, movies inspired by music are going to be shown. Music film has experienced a great expansion in the past years, and renowned directors, actors, and photographers have made movies about music stars and legendry bands, whose exciting biographies and careers draw great attention of the public. On the big screen of the open cinema in Mileticeva Street, new movies, musical and film spectacles, are going to be shown.

PEDJA’S FILM SELECTION In Basics of World Film Selection, some of the most important accomplishments of the world cinematography are going to be shown. A known film expert from Novi Sad,

With Animatrix Selection, whose name was inspired by the anthological accomplishment of Wachovski brothers, creators of Matrix, Cinema City wants to present the most interesting works from the realm of animated film. Japanese animations, European and American animated movies of high production, often based on comics, are going to get you to the world of virtual reality, new technologies, and cyber punk.

THE COOL KIDS Matinee of the children film is dedicated to the youngest, who will have an opportunity to see some of the most beautiful movies for the kids.

DEMOCRACY / EXPORT-IMPORT On the example of American “exporters” and Iraqi “importers”, through authentic documentaries signed by American and Iraqi directors, this Programme clearly shows that in the 21st century, democracy has distanced itself from its essence and become an excuse for wars and a toy in the hands of the mighty. CorD 61 / June 2009 77

TECHNO TALK |

GIRARD PERREGAUX DIAMOND EMBELLISHED GIRARD PERREGAUX JEWELRY WATCH

Price: available in limited pieces only

f you are looking for a precious timepiece to collect, this Girard Perregaux should definitely be included on your list. With this watch on your wrist, expect to catch everybody’s attention. Wear this at night with your gown for a more glowing and glamorous look.

HARRY WINSTON DIAMOND EMBELLISHED DIANE MINUTE REPEATER

CHOPARD HAPPY DIAMONDS

Price: €5,680

or over 140 years, the “World of Chopard” has embraced elegance, originality and individuality. Renowned internationally for its award-winning “Happy Diamonds” creations, the Chopard collection also includes an array of designs that adorn celebrities around the world.

Price: €16,000

arry Winston has definitely created another masterpiece with their Diane Minute Repeater. Every watch that Harry Winston has created always has this special design that can be compared to an art work just like this watch that has a woman’s face like design on its dial.

CARL F. BUCHERER DIAMOND EMBELLISHED PATRAVI FOR WOMEN T-24

Price: unavailable

he Carl F. Bucherer Patrave T-24 ladies watch is created with luxury and sophistication just like any other Carl F. Bucherer. The watch is made with an 18 carat rose gold curved case which has a bezel that has a unique 12 bar separator which divides the diamonds embellishment into 4 for a total of 48 diamonds on the bezel alone.

BREGUET MARINE LADY CHRONOGRAPH WATCHES

Price: €1,880

his Breguet Marine Lady Chronograph is presented just the way women like it. This timepiece is displayed in a very luxurious way by using an 18 carat rose gold material on its case, pushers, and crowns. Aside from this gold material, this case is also embellished with diamonds covering the bezel. This diamond setting finishes the luxurious touch on this watch.

78 CorD 61 / June 2009

LONGINES 2009 LES ELEGANTES LUXURIOUS WATCH

Price: limited edition of only 20 pieces

ompared to the other timepieces that Longines has released for the past few years, there’s no doubt that this new Longines 2009 Les Elegantes is the most luxurious watch. This new timepiece from Longines is made of an 18 carat white gold material which composes its case and bezel.

PERRELET DIAMOND FLOWER WOMEN’S WATCH

Price: €6,000

BLANCPAIN CAMELIA FLYBACK CHRONOGRAPH FOR WOMEN

errelet is just a beginner when it comes to watch making but their timepieces show that they have lots of potentials that can make them successful in the coming years. One of these timepieces is called as Perrelet Diamond Flower Double Rotor Women’s Watch. This new Perrelet Diamond Flower Double Rotor Women’s Watch is an aesthetically appealing timepiece that many women would surely crave for.

Price: €12.500

his Blancpain Camelia Flyback chronograph is composed of a polished stainless steel material which makes this watch look elegant because of its glowing effect. This watch is also made with a crocodile leather strap highlighted in pink making this very womanly. The dial of this watch matches the case with its pink mother of the pearl dial.

CHANEL J12 HAUTE JOAILLERIE DIAMOND WATCH

Price: expect this to be available in a very limited edition.

ooking at this new Chanel J12 Haute Joaillerie will surely stun you because of its luxuriousness and beauty. This timepiece is basically made of an 18 carat white gold material composing the case, bezel and bracelet. Aside from these, the watch is also created with a diamond embellished dial but aside from the baguette diamonds, this dial is also designed and accented with black diamond setting.

CorD 61 / June 2009 79

TECHNO TALK |

CONCORD LA SCALA WOMENS SWISS CLASSY WATCH

Price: €700

ith more than 100 years of success, Concord watches enjoy the mark of world celebrated prestige. You can see a number of Presidents and dignitaries around the globe wearing a Concord watch.This timepiece from Concord, the Concord La Scala Women’s Swiss watch is presented to us in style and class. The elegant case and bracelet of this chic watch is made of polished stainless steel. The well-designed silver dial in round shape has silver index and Arabic numeral as hour markers.

WALTHAM A TIME WHERE DREAMS TURN TO REALITY

Price: available on demand

pdating its Lady Waltham wristwatch in 1912 is the Lady Waltham LW34 Lune. Adding sparkle to the watch is the 36 Top Wesselton diamonds set in the bezel of the 18k yellow gold case. It also features a blue cabaochon crown at the side that contrasts the color of the watch, but complements its dreamy theme.

CARTIER WOMEN’S TANKISSIME SOLID 18K GOLD

Price: €17,800

he Cartier timepiece is an accessory, a status symbol, a luxury, this watch defines the person you are. Cartier is a dream renewed to infinity.

GLASHUTTE LADY SERENADE DIAMON CHRONOGRAPH

Price: t.b.a This new timepiece is the Lady Serenade Chronograph by Glashutte. Though this new Lady Serenade Chronograph by Glashutte is a ladies’ luxurious watch, it is still crafted from the usual material that they use on most of their watches. This new ladies’ watch is made of a polished stainless steel material that gives it an irresistible glowing effect and this is found on the watch’s case, bezel, and bezel. 80 CorD 61 / June 2009

VACHERON CONSTANTINE FLAME CUT DIAMOND WATCHES

Price: available in limited pieces only

acheron Constantin is presenting not only one, but two jewelry timepieces that many women enthusiasts would definitely crave for. Both the Lady Kalla Flame and Kalla Haute Couture a Secret are presented with flame cut diamond embellishments that are found all over these watches. The only difference of the two would be the shape of the case and their bracelets.

GUCCI GUCCI WOMEN’S 6800 DIAMOND STAINLESS STEEL

Price: €2,099

esigned to always tell time with elegance, this Gucci diamond timepiece is a fashionable addition to any lady’s wardrobe.

BALMAIN ELYSÉES CHRONO LADY AT MISS SWITZERLAND

Price: €1,800

SAINT HONORE HAUSSMAN LADIES WATCH

nother Miss Switzerland is yet to be crowned and become ambassador for the St-Imier brand, and another Balmaine watch is to be presented along with her. Balmaine has been in partnership with the Miss Switzerland coronation for years to date. Since Balmaine features exclusive models in every pageant yearly, the Elysées Chrono Lady will be showcased this time. It is made of stainless steel case with 48 diamonds vertically set on each side, and a mother-of-pearl dial with magnificent arabesques design.

Price: €1,880

aint Honore may not be as famous as other watch makers but as far as their creations are concerned, we can say that they can definitely compete with the watches of the other brands. An example of their creations would be this Saint Honore Haussman Lady. Elegant timepieces are usually seen on certain occasions but if you would like to have something that you can wear even during the ordinary days, then you should check out this Saint Honore Haussman Ladies’ watch.

DE GRISOGONO DIAMOND EMBELLISHED INSTRUMENTO OCCHIO RIPETIZIONE MINUTI

Price: €11,000

his new de Grisogono Instrumento Occhio Ripetizione Minuti is undeniably more luxurious because of its materials. This timepiece is created with a case made of a combination of blackened and polished 18 carat white gold that is matched with a black alligator leather strap. Aside from these, this timepiece also includes baguette diamond embellishments found on the bezel and on the case itself.

CorD 61 / June 2009 81

HOW TO... |

... RENT A FLAT You can rent apartment for your short stay in Belgrade (Beograd). Prices published on web site (http://www.beorent.com) are the minimum daily prices based on 1 month stay. You can also choose between Center, Novi Beograd etc... Or, you could take a look at our hostels offer, if your budget is limited... ... RENT A CAR IN BELGRADE CompareCarRent.com makes it easy to compare rental cars and to ﬁnd & book the best car rent deal from all car rentals in Serbia. Our car rental brokers1) negotiate the best car rent deals in these cities in Serbia: Beograd, Novi Sad, Subotica, Niš. A car rental broker is an intermediary between car rental agencies and our customers. Because they handle a large number of reservations they are able to negotiate a much lower price and better rental conditions than a single customer. Our car rental brokers negotiate the lowest rates for rental cars in Serbia from international auto rental agencies (Alamo, Avis, Budget, Europcar, Hertz, National, Thrifty, etc) as well as high-quality local car rental companies. This saves you a lot of money, because as a consumer you get the same discount as big companies that rent many cars! ...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.

82 CorD 61 / June 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. Greek politician, Elefterios (1864-1936), 2. Turkish politician, Ismet – official document, 3. Narrow street in Dalmatia – symbol for pondus – first and fourth vowel, 4. One digit number – lonely – symbol for Iodine, 5. Fourth and second vowel – theatre curtain, 6. Short for reomir – first name of poet Ladik, 7. A mountain in Bosnia, 8. Citizen of Tatarstan – symbol for ruble , 9. Town in France – symbol for Natrium, 10. Symbol for radical – plant used in textile production – mud, 11. Letters on a number plate of a car from Čačak – symbol for Nitrogen – Italian port on the Adriatic, 12. Willow – a football club from Čačak, 13. Sweets originating from East. DOWN: 1. Famous Serbian actor 2. Lake in Finland – Slovenian truck maker – Ancient Roman salute, 3. First name of German poet Zax – executioner, murderer (Arabic word) – symbol for Astatine, 4. First name of actress Gogalova – Austrian conductor, Herbert von – Symbol for Electron, 5. Adjacent letters in cyrillic alphabet – section of the building below ground floor – Second and sixteenth letter of cyrillic alphabet, 6. Symbol for energy – Hill in Rome – Huge snake, constrictor, 7. Symbol of Lanthanum – Surname of a Serbian actor, Srba – First name of Marx, 8. Old measure of weight – Male descendent – Temper, character 9. Serbian painter. ANSWERS: Venizelos ineni, akt- kala, p, ao – tri, sam, j – oe, kulisa- r, katalin – staretina – tatarin, r-amijen, na – r , lan, kal –ča, n, bari – iva, borac – ćeten alva

How to...