CorD magazine 73

DE-EUROIZATION - THE GREATEST CHALLENGE Draginja Djurić, President of executive Board of Banca intesa

AN OpEN DEBATE ON CONTROVERSY H.e. ion Macovei, romanian Ambassador to Belgrade

JUl/AUg ‘10 / ISSUE NO. 73

www.cordmagazine.com

UNNECESSARY BUREAUCRACY Goran Pitić, Vice President of the Foreign investors Council

interviews opinions news comments events

REFORMS KEY TO THE EU

PrIcE 190 rSd

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2 CorD 73 / July - August 2010

CorD, JULY - AUGUST 2010

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SEVEN MILE BOOTS

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REALISTIC OPTIMISM

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Vera Didanović, Editor

A MUTUAL GOAL: SERBIA IN THE EU

H.E. Mary Burce Warlick, Ambassador of the United States of America to Serbia

Dimitrije Boarov, Journalist

Aleksandra Joksimović, member of the International Relations Forum

WHAT INVESTORS NEED TO KNOW

Zoran Skopljak, Senior Associate at Karanovic & Nikolic Law Office

TIME FOR RECONCILIATION

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Ambassadors’ opinions Leaders’ opinions

DE-EUROIZATION - THE GREATEST CHALLENGE

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Draginja Djurić, President of the Executive Board of Banca Intesa

EdITOrIAl dIrEcTOr: Tatjana ostojić, tostojic@cma.rs EdITOr: vera Didanović, v.didanovic@cma.rs ASSISTANT EdITOr: Philomena o’Brien, p.obrien@aim.rs ArT dIrEcTOr: Tamara Ivljanin, t.ivljanin@cma.rs ArT dIrEcTOr ASSISTANT: Ilija Petrović, i.petrovic@aim.rs cONTrIBUTOrS: Jelena Mickić, Ilija Despotović, vojislava vignjević,

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STABLE BUSINESS CONDITIONS ARE NECESSARY Nebojša Divljan, President of the Board of Directors and GM of Delta Generali Osiguranje

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Shipyard Begej

REFORMS - THE KEY TO JOINING EUROPE

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Bosnia and Herzegovina

REGION

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Croatia, Montenegro, Albania

SEVENTY YEARS YOUNG

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British Council Anniversary

CULTURE NEWS & CALENDAR

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By Jelena Jovanović

A STEAK-LOVERS DELIGHT

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Leisure

AN UNFORGETTABLE AFTERNOON

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Cruise to Bela Stena on the Sirona

WORLD CUP SOUTH AFRICA 2010

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ON THE EUROPEAN ROAD OF CULTURE

BUSSINES NEWS

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MEASURES FOR EXITING THE CRISIS

WE CREATE OUR OWN REALITY

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IMAGE MAKEOVER

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The ‘IBS in Serbia 2010’ Business Conference

HUMAN RESOURCE STRATEGY DRIVING SUCCESS

THE ROAD TO EUROPE DEPENDS ON US

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NERVOUSNESS IN THE EURO-ZONE

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Gordana Dostanić, Director of the Belgrade Stock Exchange

DIALOGUE IS NECESSARY

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Businessmen Advise the State

Jovana gligorijević, Dunja Ilić, katarina Milosavljević, Davor Stipić, Marica vuković, Jelena Jovanović PhOTOS: Slobodan Jotić, Darko Cvetanović, Časlav vukojičić TrANSlATION: Tibor Strak, goga Purić, Snežana Bjelotomić EdITOrIAl MANAgEr Tanja Banković, t.bankovic@cma.rs PrOJEcT MANAgEr: vesna vukajlović, v.vukajlovic@aim.rs; Marija Savić, m.savic@ aim.rs; Snežana Terzić, s.terzic@aim.rs

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FINANcIAl dIrEcTOr Ana Besedic, a.besedic@cma.rs gENErAl MANAgEr Ivan novcic, i.novcic@cma.rs PrINTINg rotografika d.o.o., Segedinski put 72, Subotica CorD is published by: alliance international media kneginje zorke 11b, 11000 Belgrade, Serbia Phone: +(381 11) 308 99 77, 308 99 88

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Seven Mile Boots Is ‘The Hague condition’ the only problem that Serbia has not solved in its effort to finally become a normal and prosperous European country?

O

n June 14th in Luxembourg, the Foreign Minister of the European Union decided to propose the ratification of the Stabilization and Association Agreement (SAA) between the EU and Serbia to the parliaments of their respective countries.

However, the discussion about Serbia’s candidacy for EU membership was postponed for an indefinite period, and the ministers reminded Serbia once again about its obligation to fully cooperate with The Hague Tribunal.

instance, state officials admitted that the expenses for getting construction work and other permits for investors in Serbia were three times higher than in other European countries, while the time it takes is three times longer. Senior Commercial Officer at the US Embassy in Belgrade, Cameron Werker emphasised the unexpected problems investors meet when they start looking at what is involved in making the investment.

In the last two years, during which - precisely due to the problems with The Hague – the implementation of the SAA has been blocked, significant political changes have occurred in Serbia.

The majority of relevant political parties are now oriented toward European integration. Long-term and close associates of the leader of Serbian Radical Party (SRS), Vojislav Seselj, who was indicted by The Hague, formed a new party - the Serbian Progressive Party (SNS). A substantial effort and funds have been expended in order to create a completely different, proEuropean image and they have managed to win over the majority of voters from the extremist SRS. Based on the orientation of the political elite, we can thus conclude that Serbia is ready to complete the remaining 147 steps toward Europe at the speed of light, once the search for the two people indicted by The Hague - Ratko Mladic and Goran Hadzic finally gives the desired results. Dutch Foreign Minister Maxime Verhagen made a tally and warned Serbia that there were exactly 147 points that could be vetoed as part of its progress toward Europe if the two generals should fail to get to The Hague.

The political elite brag about their proEuropean orientation, but fail to show the implementation of European regulations in everyday practice Is ‘The Hague condition’ really the only problem that Serbia has not solved in its effort to finally become a normal and prosperous European country? It does not seem so.

At the International Business Sector in Serbia 2010 conference, organised by Business Dialogue and CorD magazine, for 6 CorD 73 / July - August 2010

By Vera Didanović,

“They must visit four to five ministries and often receive different messages and even conflicting messages,” he commented.

In addition to this example that demonstrates the bulkiness and inefficiency of Serbian bureaucracy, almost all speakers used the opportunity to emphasise the catastrophic condition of infrastructure in the country. A decade after the fall of Slobodan Milosevic’s regime, different governments have failed to finish the highway that should, mostly through plains, connect Belgrade with Novi Sad.

editor

In June, the media also reported that the state of Serbia was paying 44 officials that advocated the interests of Kosovo Serbs in municipalities in which there were no Serbs at all. Citizens found out that Serbia still did not have records of its own property and that, for example, the budget did not record the income to Serbia through donations… as well as many other issues.

Instead of finding solutions to these specific problems, the government spends time, funds and energy spreading optimism and the opposition uses it to encourage pessimism - in order to win the votes needed for the elections that are still not on the agenda. They brag about their pro-European orientation, but fail to show the implementation of European regulations in everyday practice with the above mentioned or other examples.

The worn out and often repeated pro-European ‘story’ will then become truly plausible, and those 147 steps will perhaps not be the seven miles long, that they seem today. 

INTERVIEW |

A Mutual Goal: S

H.E. Mary Burce Warlick, Ambassador of the United States of Ame

Although the EU and its member states will ultimately decide whether Serbia is ready for EU accession, the United States will – as Vice President Biden promised – use its influence, energy, and resources to assist Serbia toward this goal

By Vera Didanović Photo: Darko Cvetanović

A

t the end of January, when she took over the position of the Ambassador of the United States of America to Serbia, Mary Burce Warlick announced the strengthening of the two countries’ bilateral relations. In the meantime, some positive movement has certainly been observed: the US Senate has adopted a resolution in which it congratulated Serbia on submitting its application for EU membership, and the duration of the US visa for Serbian citizens has been extended.

As the global market is very competitive, Serbia will need to compete to meet the expectations of potential investors However, there are no indications of assimilation in regards to the Kosovo issue, which has been the cause of speculation regarding the intentions and plans of Washington related to the solution of this difficult problem. The decision of Serbia to maintain its military neutrality is also one of the reasons for various interpretations and speculations about future relations with the United States.

Ambassador Warlick discusses these, and other important issues in her interview with CorD magazine. n In your opinion, what should the priorities in relations be between the USA and Serbia?

8 CorD 73 / July - August 2010

erbia in the EU

America to Serbia

r The United States and Serbia are very much working toward the same goal: Serbia’s European integration. Progress toward this goal is important, as the EU and Euro-Atlantic institutions have been the most valuable sources of stability and prosperity in Europe over the past several decades. We see Serbia as a critical partner in the region, a partner that contributes to the solution of not only regional, but global issues. Serbia’s increased attention to environmental issues and international peacekeeping operations are just two examples of its efforts to make important contributions to serious global security challenges.

n The US Senate has adopted a resolution in which it congratulated Serbia on submitting its application for EU membership, and it invited the European Council to take a clear stand on the qualifications of Serbia as a candidate country. What outcomes do you expect from the adoption of the Resolution? r The Senate resolution sends a clear message that the United States strongly supports Serbia’s EU integration. Although the EU and its member states will ultimately decide whether Serbia is ready for EU accession, the United States will – as Vice President Biden promised – use its influence, energy, and resources to assist Serbia toward this goal. n There have been assessments in Serbia that the Resolution will mark the end of the conditioning policy which has characterized the relationship between Washington and Belgrade for years. There have

REFORMS We want to support Serbia’s own efforts to complete reforms and market the opportunities available in Serbia.

The Senate resolution sends a clear message that the United States strongly supports Serbia’s EU integration also been claims that Serbia had to “pay” in some way in order to get the Resolution enacted. Is there any truth in this? r The Senate resolution recognizes the tangible progress that Serbia has made in recent years toward reforming its systems and dealing with the difficult legacy of the 1990s.

tune time: Vice President Biden visited Serbia in May 2009 – before my arrival -- with a message of renewal and a desire to turn the page to a new chapter in U.S. – Serbia relations. Since my arrival, I have worked to reinforce these messages by making clear that my goal is to deepen and broaden U.S.-

The United States’ position on Kosovo remains unchanged: Kosovo’s independence is irreversible and we strongly oppose any discussion of partition The recent U.S. government decision to extend the validity of business and tourist visas for Serbian citizens to 10 years also reflects a growing recognition of these positive developments in Serbia. n Your coming has marked a change in the politics of the USA towards Serbia. If you concur with this observation, what are the changes? r I think that I arrived in Serbia at an oppor-

NATO The door to NATO is and will remain open to Serbia, but the decision is Serbia’s to make on Serbia’s timetable.

Serbia bilateral cooperation wherever possible, including the defense and security, economic, cultural, and other areas. At the same time, we continue to have a significant and active assistance program that is designed to support Serbia’s accession to the EU and its full integration into global institutions. n Are the speculations that Washington wants the abolition of Resolution 1244 SB UN true?

investors U.S. firms are among the leading foreign investors in Serbia and we are working with the Serbian government to find additional opportunities CorD 73 / July - August 2010 9

INTERVIEW | n US officials are investing a lot of energy into organizing talks between Belgrade and Priština in regards to solving issues.

How should those talks be lead? Directly or via representatives of the EU and UN? r Ideally, Serbia and Kosovo should strive to work together to resolve outstanding issues. Let’s take relations between Serbia and Croatia, for instance. President Tadic and President Josipovic have shown a real desire to resolve their problems without an international mediator; they are even talking of settling their ICJ lawsuits out of court. It is this kind of responsible approach to good neighborly relations that will ultimately convince EU member states that Serbia and Croatia are ready to be contributing members of the European Union.

“We believe that Serbia will benefit by becoming a member of the WTO and I will continue to work with the government to support efforts to achieve this goal as soon as possible” r You hit the nail on the head with the word “speculation.” Washington is not seeking the abolition of UNSC Resolution 1244. n Is the division of Kosovo acceptable to Washington? r The United States’ position on Kosovo remains unchanged: Kosovo’s independence is irreversible and we strongly oppose any discussion of partition. The partition of Kosovo would create significant problems throughout the region.

10 CorD 73 / July - August 2010

n Do you feel that the idea of reopening talks about Kosovo’s status is conceivable? r Talks between Serbia and Kosovo should be aimed at resolving practical issues – such as customs, electricity, telecommunications, education, and courts – that affect the daily life of all people who live in Kosovo. We encourage contacts between Pristina and Belgrade to resolve outstanding issues in a sustainable manner, in the spirit of good neighborly relations.

n How do you perceive the role of Serbia in the region? r Serbia must determine the role it should play in the region. Because of its size, location, and history, it has the potential to be very influential; in order to achieve influence it will need to resolve outstanding regional issues, however. We view Serbia as a critical partner for the United States in the region and want to see Serbia play an active role in promoting the integration of the entire Western Balkans region into Europe. In recent months, Serbia has taken significant steps – for example, through its engagement with Croatia and Albania and the March 31 passage of the Srebrenica resolution - to demonstrate its desire to contribute constructively to regional reconciliation, peace, and prosperity. n You have offered help during the process of integration of Serbia into the WTO. When do you think the process will be finalized? r The United States supports Serbia’s membership in the World Trade Organization and our trade negotiators are working hard to complete outstanding negotiations on issues related to this accession process. It is ultimately up to the Government of Serbia, however, to decide if WTO accession is a priority and to take the necessary steps to bring its legislation and practice in line with WTO requirements. Nevertheless, we believe that Serbia will benefit by becoming a member of the WTO and I will continue to work with

tries’ relations? r In our view, there are two institutions that have n Do you see any possibility for serious unified and brought unimprovement in economic cooperation be- precedented peace and prosperity to Europe: the tween the USA and Serbia? r U.S. firms are among the leading foreign EU and NATO. Decades investors in Serbia and we are working with ago these institutions the Serbian government to find additional were limited to Western opportunities to attract U.S. firms to invest Europe, and now they ofin Serbia and to find ways for Serbian firms fer security and prosperity to develop business relationships with the to much of the continent.

United States. With the U.S. economy be- We and most European ginning to emerge from the financial crisis, countries think of these companies are starting to look again at new two institutions as being The government of Serbia should business opportunities. Serbia could be a interwoven. In the same beneficiary of this renewed business activity, way that EU membership continue to press forward on an agenda brings benefits, membership in NATO also brings of cutting regulations and improving the In our view, there are many benefits, including business climate a voice in consensus decitwo institutions that sion making, stability for have unified and brought potential business investors, the protection you were first informed you would be the of the collective security pledge, and help US ambassador in Serbia? unprecedented peace and in dealing with humanitarian disasters. That r I was profoundly honored to have been prosperity to Europe: the said, we understand Serbia’s feelings about nominated by President Obama and delightNATO and are not lobbying Serbian leader- ed to have the unexpected opportunity to EU and NATO ship to join NATO. The door to NATO is and represent my country in the Republic of Serbut to achieve this goal it will be important will remain open to Serbia, but the decision bia. I had heard so much about the warmth for the Government of Serbia to continue to is Serbia’s to make on Serbia’s timetable. and hospitality of the Serbian people and press forward on an agenda of cutting reguknew I would be coming here at a critically lations and improving the business climate. n Are you satisfied with the cooperation important time both in terms of our bilateral As the global market is very competitive, from the Serbian authorities so far? relationship and Serbia’s European future.

Serbia will need to compete to meet the ex- r As I indicated, Serbia and the U.S. very pectations of potential investors. We want to much share the same goals for Serbia and the n Your husband is the US ambassador support Serbia’s own efforts to complete re- region; we are both working to help Serbia in Bulgaria. Does life in two neighboring forms and market the opportunities available advance toward European integration and countries cause difficulties for your famin Serbia. The deployment of new economic EU accession. I have been warmly received ily? How helpful is it when it comes to attaches in Serbian diplomatic missions in all of my meetings with Serbian officials gaining a better view of the situation in around the world, including in Chicago, will and I am deeply grateful for their receptivity, the entire region? provide additional resources for marketing interest, and support in advancing our coop- r My husband and I are both very appreinvestment opportunities in Serbia. eration and exploring ways in which we can ciative of the opportunity to serve as U.S. further develop our bilateral relationship. ambassadors in two such vitally important neighboring countries and have already benn Does the rejection by Serbia for membership to NATO influence the two coun- n What were your initial thoughts when efited from exchanges regarding our respective experiences. While Bulgaria is already a member of the European Union and NATO, pa r tn e r ko s o v o g o a l s its leadership has demonstrated a strong interest in actively supporting the Euro-AtlanWe view Serbia as a Ideally, Serbia and Serbia and the U.S. tic aspirations of Serbia and the entire Westcritical partner for Kosovo should strive very much share the ern Balkans region. I look forward to meeting more of my husband’s new colleagues the United States in to work together to same goals for Serbia and introducing him to mine when we soon the region resolve outstanding and the region. co-host our respective U.S. Independence issues.

Day celebrations in Sofia and Belgrade. n the government to support efforts to achieve this goal as soon as possible.

12 CorD 73 / July - August 2010

ECONOMY |

Nervousness in the Euro-zone Euro-crisis

The European Union is searching for new game-rules that will help halt the crisis of a common currency.

Simply put the solution could be this: those who seek aid to resolve their insolvency will have to listen to those who pay more in order to maintain stability in the euro-zone

T

By Dimitrije BOArOV

duced from inflation redistribution, and that American state debts. The announcement that China will also convert one part of its huge his example from proverbially was the case until Yugoslavia fell apart.

The ‘European Federation’ is, hopeful- foreign currency reserves from euros to dolstable Slovenia perfectly illuslars was denied with a courteous statement trates the political consequenc- ly, different, but it is in the phase of a cones of the current crisis in the tinuous drop in parity between the euro and which failed to calm down the frightened inEuro-zone, which has shaken the the American dollar at the moment - from vestors of European currency. Meanwhile, European Union itself. When Ljubljana re- a former ratio of 1:1.5 to less than 1:1.2 at Iran has denied nothing, but on the contrathe beginning of June - with the tendency ry has announced that they will change back ceived news that the Slovenian contribution to the May package of financial aid to Greece to ‘equalise’ the values of two currencies by their state reserves from euro to the ‘devilish consisting of 110 billion euro in total, would the end of year. The fact that the parity of eu- dollar’, which will increase the already huge be 500 million euro, some Slovenian busi- ro toward the dollar dropped by about seven volume of euro on the world’s market by another 45 billion euro. Of course, there is alnessmen wept. Not even the former feder- percent in May initiated ‘euro nervousness’, so the Greek financial al Yugoslavia took that This entity known as the ‘greek crisis’ is in fact the vacuum, which will demuch for its undevelcrease the value of state oped republics. debt crisis of the larger eU countries, who have stocks of all countries in One could have said that the Yugoslavian di- received their bill for supporting the battle against the the euro-zone by almost 2000 billion euro in the nar was not a convertible recession in the last two years of the world economic next two years, if speccurrency and it did not ulation expectations are float around the world’s crisis before their own economies have recovered not restrained. financial markets in the To make it even simpler, all this forces the company of a pack of ‘speculating sharks’. which also happened to be the same month The Yugoslavian Central Bank practiced in which, on May 19th, an aid plan to Greece European Union to save the euro-zone with monetary emission by political blackmailing, was approved, as well as a project involving great state-run interventions (which they must not through the competitiveness of its feder- the long-term safety for the euro for the fu- cover with savings in public consumption) and to save the competitiveness of the whole al units. No one in the federation was wor- ture period.

Simply put, China blew wind into the sails zone on the world market - by devaluating ried about the huge budget deficits, and everythe euro more than the leading and competione was motivated to take more than they pro- of conjuncture with the USA, by buying off 14 CorD 73 / July - August 2010

tive economies of the zone really need, mostly Germany. Simply put, countries that are not competitive enough such as Greece, Portugal, Ireland, Italy and Spain, cannot increase their competitiveness by decreasing the solvency strength of their national currencies (i.e. by decreasing the prices of their goods and services on the world market), on the basis their currency is the euro, and the Germans, French and other members of the ‘euro-boat’ will have to pay for the problems of the public finances of these countries - by devaluing their common currency, and direct monetary interventions (to calm down and pay off the Greek creditors, mostly residents of other euro zones).

The ‘euro federation’ therefore is searching for new game rules, which would, as the EU President Herman van Rompuy puts it, activate “informal structures for preventing a crisis” or more clearly, to establish a ‘clear hierarchy’ among the institutions and member countries. In simple terms it would look like this: those who seek aid to resolve their insolvency problems will have to listen more to those who pay more to maintain the stability in the euro-zone.

In fact, this is how we should view the demand of the German Chancellor Angela Merkel that euro-zone penalty law, ‘Stability and Growth Pact’ enacted back in 1997 before the euro was introduced in 2002, needs revision. According to the proposal, countries that cannot fulfil five criteria for the eurozone, especially one in particular concerning the permitted level of the budget deficit (minus three percent), can lose their right to vote in European institutions (within the ‘reform’ of the Lisbon Agreement).

These are probably precautionary threats (perhaps mostly directed toward German public opinion) that should open up the space for stricter monitoring of budgetary discipline within the EU. These threats should also make the joint project of the EU and IMF (creation

Jean-Claude Trichet of the ‘preventive fund’ with the intervention capacity of 750 billion euro), more serious, and to cool down expectations of speculators to do well on Greek state stocks that this small country is now forced to emit under very difficult conditions (interest rates on two-year loans increased to 25 percent, up from 4.6 percent not so long ago, and to over 10 per-

Not everything is in deficit and debt, but something is lacking in the competitiveness of the Serbian economy cent for long-term loans, which is three times higher than the rate of German state stocks).

The fact that Greece urgently needs 53 billion euro to pay its creditors this year is not the problem, but the fact that the other members of the euro-zone will be forced to cover their budget deficits with loans is. France will

iran

prevention

BEST POLICY

Iran announced that they will change back their state reserves from euro to the ‘devilish dollar’

The ‘euro federation’ therefore is searching for new game rules in order to prevent a crisis

The best policy also has its price, and it is worth it for everyone to pay that price

need 454 billion euro; Italy will need 393 billion euro.

When you look at these figures it becomes clear that this entity known as the ‘Greek crisis’ is in fact the debt crisis of the larger EU countries, who have received their bill for supporting the battle against the recession in the last two years of the world economic crisis before their own economies have recovered. These countries are at the moment are experiencing different situations in their state treasuries and have different views on fiscal problems and public spending. All they have in common are their deficits.

In fact, the whole euro-zone, which now consists of 16 countries, has a forecasted average budget deficit of 6.6 percent for this year (according to Eurostat), which of course is two times that provided for in its rules, because ‘breaking’ the limit is allowed only when the expected decline in GDP is greater than two percent (the euro-zone is expecting a drop in GDP of just 0.1 percent in 2010, and according to IMF estimates in April, the GDP in the EU could even go up by one percent).

The largest breach of the budget deficit is in Ireland (minus13.3 percent) and Spain (minus12.5 percent), but it is also a problem in the strongest European economies - in France (minus 7.1 percent), Belgium (minus 6.3 percent), the Netherlands (minus 5.7 percent), Italy (minus 5.6 percent), while the lowest is in Germany (minus 4.6 percent) which is still higher than the permitted deficit.

CorD 73 / July - August 2010 15

ECONOMY |

Miroslav Prokopijević Although theses breaches of the budget deficit limits can be understood during a financial crisis, they certainly give cause for considerable concern about the worrisome growth of public debt in the whole euro-zone, which increased from about 70 percent of the GDPs of all countries in 2008, to about 80 percent by the end of 2009, and it threatens to reach about 85 percent in 2010. According to the Maastricht Agreement, public debt in the countries of the euro-zone should never exceed 60 percent of GDP (it is currently about 120 percent of GDP in Greece). All these facts certainly contribute to the crisis of the euro.

In a statement made to the BBC at beginning of June, the worldwide famous economist Nouriel Roubini emphasised the fact that the budget deficit and public debt of the euro-zone members was higher than that of the U.S., which of course is reflected in the parity of the two currencies. Roubini also ominously envisages that some members of euro-zone will be forced to leave the common currency, which imposes a pace of reforms and efficien-

German Chancellor Angela Merkel cy that these countries simply cannot follow.

They are not able to tax their poor citizens and stagnant economy that much in order to cover even lower public spending.

In all this European monetary confusion, the Serbian dinar is one of the rare European currencies that has been relatively quickly, but continuously, getting weaker against the euro during 2010.

Governor of the European Central Bank, Jean-Claude Trichet, is certainly aware of all these facts and he stated his opinion at the beginning of June in Seoul and in interviews for French newspaper Le Monde and the German Spiegel, that Europe also needed a fiscal un-

Herman Van Rompuy ion, and without it would be very difficult to even imagine any kind of monetary union.

Trichet commented “We are a monetary union. Now we need the equivalent of a fiscal union in order to supervise how the countries manage their public finances.”

Yes, that would be simple, if the political and economic situations in the euro-zone countries were similar, but they are very different.

Serbian liberal economist Miroslav Prokopijevic emphasised that the economic problems in the euro-zone and the sliding of euro on the world market were occurring because the currency was politicised from the beginning, because the decision to introduce the euro was a political one, because the negotiations about the criteria for joining the euro-zone had political connotations, because avoiding penalties for those who breached the rules was politically motivated, and because the decision to aid those who have problems is also political. And of course it is, but the best policy also has its price, and it is worth it for everyone to pay that price. n

dinar crisis

I

n all this European monetary confusion, the Serbian dinar is one of the rare European currencies that has been relatively quickly, but continuously, getting weaker against the euro during 2010, although Serbia allegedly has only about four percent of its budget deficit and its public debt is only about 30 percent of its GDP. So, not everything is in deficit and debt, but something is lacking in the competitiveness of the Serbian economy. That lack of competitiveness is strengthened by the fact that the Serbian dinar was fixed to the euro for too long. ‘Euroization’ has been widespread in Serbia over the last decade, in order to return confidence to the monetary and banking system of the country after the financial catastrophes during the regime of Slobodan Milosevic from the end of the last century. Due to a lack of competitiveness, Serbia has been burdened by a high foreign trade

16 CorD 73 / July - August 2010

deficit over the last decade, followed by a significant balance of payments deficit (which has reached more than 15 percent of GDP), and which has been levelled by income from privatisation and foreign investments. Just at a time when privatisation revenues from selling state-owned companies were depleted (in 2009), the world crisis started and there was a large decrease in foreign investments - and the dinar found itself in the gap, even by comparison to the weakened euro. Serbian citizens, who have managed to even slightly recover economically after the misery and poverty of Milosevic years, must now face saving, and the stable democratically political elite must now must undertake many unpopular restrictions (especially toward pension funds).

The problem is that Serbia and its citizens must learn how much their country depends on Europe, and that Europe itself is not the land of milk and honey.

| | INTERVIEW

Aleksandra Joksimović, member of the International Relations Forum and of the main board of the Centre for Democracy and Reconciliation in South-eastern Europe (CDR SEE)

THE ROAD TO EUROPE DEPENDS ON US

It is not only the EU which is potentially slowing down the integration process.

The candidate-countries are also doing this, with their slow fulfilment of requirements, or by emphasising problems which are not related to the strategic interest of joining the EU

By Davor STIPIĆ Photo: Darko CVETANOVIĆ

S

erbia has found itself in a paradoxical situation. On one hand, after the political split in the Serbian Radical Party of Vojislav Šešelj and the foundation of the Serbian Progressive Party of Tomislav Nikolić, most of the relevant political parties swear to their European orientation. On the other hand is the EU dealing with its internal problems and frequent assessments on the relationship between Kosovo and the European integration of Serbia, giving enough cause to assess that Serbia’s joining the EU has become rather dubious. CorD seeks answers to the numerous questions which have appeared in the public arena regarding this matter from Aleksandra Joksimović, a member of the International Relations Forum and of the main board of the Centre for Democracy and Reconciliation in South-eastern Europe (CDR SEE), and who

18 CorD 73 / July - August 2010

was the assistant to the Minister of Foreign Affairs during Đinđić’s presidency.

EU foreign ministers have approved the commencement of the ratification of the Stabilization and Association Agreement (SAA) with Serbia; however Serbia’s candidacy was not discussed in Luxembourg.

The SAA has waited almost two years to be ratified. We are aware that cooperation with The Hague Tribunal was the main obstacle. The arrest of General Mladic and Hadzic were demands that existed two years ago and that these conditions have not yet been met. Obviously, Europe has decided to progress things step by step. Serbia has been offered another opportunity to fulfil all the necessary conditions in order to make the next step toward joining the EU. Europe has opened the door for us a bit, but has also reminded us that the conditions that we have failed to fulfil still exist. It is hard to say at the moment when the Serbian candidacy will be on the agenda.  How do you assess the scope of the Sarajevo Summit held on June 2nd, bearing in mind that no major decisions were made?  Those who expected that the EU and Western Balkans Summit would result in a date when all the countries would join the EU were rather unrealistic - especially today, when Europe is facing numerous problems. First of all, the EU is overwhelmed by the economic crisis which is present all over the world. Secondly the Lisbon Treaty has not become active to such an extent that one could claim with absolute certainty that the institutional transformation of the EU has given adequate and expected results. Thirdly, every single country has its own unresolved internal issues. There is a certain fatigue when it comes to the enlargement of the EU. These are the objective circumstances in the light of which we must perceive the realistic image of the EU’s ability.

So I feel that this was the maximum result that could have been obtained from the EU at this

Europe has opened the door for us a bit, but has also reminded us that the conditions that we have failed to fulfil still exist point. The doors can absolutely be opened, but when - that is the question which primarily depends on the countries of the Western Balkans and when they will be able to solve all the problems they are facing. If we look at the different stages of the countries in the region, all the countries except for Croatia, which is the closest to becoming a member of the EU, have a substantial number of years before them in which it will be necessary for them to fulfil a large number of requirements so that they can become full members of the EU. Assessments on the association between the Kosovo issue and Serbia’s joining the EU are frequent.

I do not think that a single EU membercountry would ever place the condition on Serbia to recognize Kosovo. Cooperation is what is requested from each country enter-

ing the EU. Serbia and Priština have to find a way to start communicating, especially in those areas which are vital. Belgrade is expected to solve these problems with active participation.

The public arena often discusses Cypress as an example of how Serbia could resolve the Kosovo issue. I feel that the Cypress example is exactly what the EU will try to avoid, as it has no desire to import such unresolved problems. On the contrary, I think it will insist on finding the right module which will guarantee that the EU will not have such unresolved issues upon the admittance of certain members.

There has been speculation regarding the date that the International Court of Justice will present its findings, as well as what their content will be. I am presuming that nobody would be fully satisfied with the outcome. It is a gate that must be passed through, and after that the stance of the participants will be known.

No matter what the findings of the International Court of Justice are, one should not expect that a single country will retract its recognition. It is very significant for Serbia to try, if possible, to stop playing the card of the division within the EU, because five members of the EU have not recognised Kosovo yet. We should not even need the UN to insist on positions that are contrary to the stances of our key partners, nor should we do so when it comes to the members of the EU. I hope that Serbia will find a clever way to position itself after the findings of the International Court of Justice. I sincerely hope that in all the areas that will decide on this matter, from the international community to local leaders, there will be a desire to find a solution acceptable for all.  Russia said that, together with Serbia, it is lobbying to organise new talks in regards to Kosovo’s status. Do you think it is realistic for such talks to occur?

SORE POINTS

WISDOM

ELECTIONS

Kosovo and Bosnia and Herzegovina, in the international community, and also in the USA, are seen as sore points.

I hope that Serbia will find a clever way to position itself after the findings of the International Court of Justice.

The political elite since 2000 until now have won all the elections exclusively on the matter of European integrations.

CorD 73 / July - August 2010 19

|  I would prefer to wait for the findings of the International Court of Justice. It seems to me that the participants who will decide upon the development of the situation are not in Moscow. The USA has a direct interest in how this topic is handled, as they did in the previous decade. Just as they handled the process of the unilateral independence declaration, the USA will during this phase, and in the same manner, definitely request some space to finally resolve this issue. I am not certain that the US, along with their EU partners, is ready to reopen the process of negotiations on the status.  Do you agree with recent assessments that the USA is ‘pushing’ for the inclusion of the Western Balkans countries into the EU?  In all of the official appearances of USA officials - from both administration and congress - we have seen that the USA has a strong interest in the countries of the Western Balkans becoming full members of the EU as soon as possible. There is a pragmatic reason for this. This is what the USA sees as the final solution to all the rudimentary conflicts from the previous decade and the final solution of the problem. Kosovo and Bosnia and Herzegovina, in the international community, and also in the USA, are seen as sore points. Considering the fact that the USA provided the means for the crisis solution in both cases, it is in their best interest to close those crisis areas once and for all, so they could turn to some far more important matters in foreign politics and world conflicts.  Can Serbia fulfil the strict criteria for joining the EU which were outlined at the Summit?  It is evident that there is a set path which each candidate-country must follow. What we call requirements are nothing but steps forward in the country’s development. Therefore we should perceive these conditions not only as requirements for the EU, but also as a way to develop our own society. I feel that that kind of so-called ‘conditioning’ should never be a burden to us.  |In your opinion, how big is the danger that the prolonging admittance of the countries of the Western Balkans into the EU could warm up the old intolerances 20 CorD 73 / July - August 2010

and deepen regional problems?  We cannot expect the impossible from the EU. It is not only the EU which is potentially slowing down the integration process. The candidate-countries are also doing this, with their slow fulfilment of requirements, or by emphasising problems which are not related to the strategic interest of joining the EU. The responsibility should always be primarily locally observed.

Serbia and Priština have to find a way to start communicating, especially in those areas which are vital  What is your stand on the current emphasis of Serbian officials that, should Serbia have to choose between Europe and Kosovo, it would choose the latter?  I am not sure that this is the common stance of the majority of citizens. This predicament has never been presented to the people in such a manner. The political elite since 2000 until now have won all the elections exclusively on the matter of European integrations. I am afraid of such exclusive positions. When someone steps forward with such an exclusive stance, he could one day find himself in front of a wall which marks the end of the road. I am afraid that Serbia will find itself in a tight and

inflexible position with such declarations.  You were the assistant to the Minister of Foreign Affairs when Zoran Đinđić was the Prime Minister. Were foreign politics then different to now, and if so, in what respect?  The period from 2000 to 2003 was very complicated; because we did not have a single foreign policy which was conducted at all levels of power. On the one side, there was the president of the country as a representative of foreign politics, which at that time was Vojislav Koštunica. On the other side, there were two republic governments – the Serbian and Montenegrin. Different levels of authorities often supported different steps in foreign policy when it came to burning issues. What I can say is that Zoran Đinđić recognised international relations well; he could read between the lines of the messages directed at him, and he had clear and precise goals and he never stepped back from them. He used all accessible diplomatic means to bring us as quickly as possible to the goal which we had set for ourselves. The extent to which he was disturbed in this mission by the other political factors is now a part of history. There were many internal factors which prevented Zoran Đinđić from speeding up certain steps in our foreign policy. In any case, the period between 2000 and 2003 was without a doubt the period of the greatest growth in our relationships in the region and in the entire international community. 

comment

What Investors Need to Know Changes to the Corporate Income Tax (CIT) Law in Serbia will have a significant effect on doing business here in the future

A

fter almost six years since the last changes, the long awaited amendments to the Corporate Income Tax (CIT) Law became effective as of March 27th, 2010.

It could be said that these amendments do not represent a fundamental change in the CIT structure, as most of the changes are aimed at providing more detailed elaboration on existing rules.

Changes to the law are numerous and they can be put into three main categories. Firstly, some provisions of the CIT law were amended in order to make them compatible with internationavl financial reporting standards or to further regulate conditions for the recognition of certain expenses.

For example, long term reservations for severance payments are now recognisable as expenses for tax purposes in the year in which they were actually paid, and they are not permanently nondeductible as was the case prior to the changes. It was generally expected that the limit for the recognition of advertising expenses would be abolished; however the new changes to the CIT law only increased the threshold from 3% to 5% of the total revenue, and introduced another threshold (0.5% of the total revenue) for business entertainment expenses. As a result this rule will continue to affect the fast moving consumer goods industry and other industries that have significant advertising expenses, and in some cases will increase the effective tax rate significantly.

Another change that will have a significant effect in the future is

Changes can be put into three main categories: some have been amended in order to be compatible with international financial reporting standards; the second set of changes are related to tax incentives and are aimed at increasing requirements for their utilisation and the third set relate to the taxation of non-resident companies in Serbia the change of the thin capitalisation rule. Under the previous law, interest paid on inter-company loans was deductable only up to certain limit, and the remaining amount could be deducted the

following year. The new rules have changed the threshold calculation and made interest expenses above the threshold permanently non-deductable. This change will influence the way in which Serbian subsidiaries are financed by their parent companies. The second set of changes are related to tax incentives, and are aimed at increasing the requirements for their utilisation. For example, it is now explicitly stated that investment tax credits would not survive mergers. Furthermore, accumulated losses can be carried forward for five years instead of 10 years.

The third set of changes relates to the taxation of non-resident companies in Serbia. Probably one of the most important changes to the CIT law relates to the taxation of capital gains earned by a non-resident legal entity.

By Zoran Skopljak, Previously transactions Senior Associate at Karanovic between non-residents & Nikolic Law Office were not subject to capital gains tax. For example, if a Dutch company sold shares in a Serbian company to a Swiss company, such sale would have not triggered capital gains in Serbia.

New rules are now extending the taxation of capital gains when both the seller and the buyer are non-residents. In addition, in the case of capital gains, a non-resident seller of an asset subject to capital gains tax (such as real estate or shares) will be required to file a tax return within 15 days of the sale, regardless of who the buyer is.

Under the previous rules, as transactions between non-residents were not taxed, capital gains tax earned by a non-resident was taxed by withholding (the Serbian company was obliged to calculate and pay capital gains tax) and there was no obligation of the non-resident to file any tax return.  CorD 73 / July - August 2010 21

DIPLOMACY |

XXX

Time for Reconciliation The establishment of good relationships between countries in the region was one of the conditions for the continuation of European integration, which were reached at the summit of the ‘EU-Western Balkans’ held on 2nd June in Sarajevo. With this in mind CorD magazine asked several ambassadors who are currently based in Belgrade: Are the countries of the region now ready to share responsibility for the conflicts of the past, and achieve true reconciliation in the future?

H.E. Mr Ljubisa Georgievski, The Macedonian Ambassador to Serbia

LESSONS TO BE LEARNED Conciliation is, of course, the main requirement for the co-existence of neighbouring countries. Governments change, geography stays the same. As far as the Republic of Macedonia is concerned, we’ve never been at war with anyone, and so there is no need for reconciliation.

Instead of choosing war we withdrew from the Socialist Federative Republic of Yugoslavia (SFRJ) in perfect peace, in contrast to the more or less bloody wars between other members of the Yugo-federation.

The fact that these EU requirements are consistent with our own assessments of what our duties are, fills us with pride Today we are at the stage of investing diplomatic efforts in order to sign contracts on good-neighbourly relationships with all of our neighbours. We are not doing this just because of EU requirements but in order to create better working practices and to fulfil the most important interests of our own citizens and the citizens of our neighbours.

The fact that these EU requirements are consistent with our own assessments of what our duties are, fills us with pride. Our breaking away from SFRJ testifies to our European capacity to solve difficult 22 CorD 73 / July - August 2010

situations peacefully. If only half the countries created by the dissolution of the SFRJ acted like we did, we would not have this ugly and geographically absurd term (Western Balkans), and we would all be much closer to the EU than we are now. Lessons are either learned, or repeated until they are learned. 

H.E. Mr. Ahmet Süha UMAR, AmbassadorExtraordinary and Plenipotentiary of Turkey to Serbia

HOPE FOR THE FUTURE Conflicts of the past, especially if they are related to “matters of sovereignty” and “psychological traumas”, are difficult to face and reconcile.

This is even truer for those who in one way or another have lived

H.E. Ion Macovei, the Romanian Ambassador to Belgrade

AN OPEN DEBATE ON CONTROVERSY Firstly, I would like to point out that the question you asked is an indicator that signs of readiness exist at different levels: either political class or of public opinion. Because I am in Serbia, I will remind us of the Srebrenica Declaration and I congratulate Belgrade on this gesture.

There are gestures in other countries, too. I would also remind us of

The road is not short or simple but I firmly believe that European values have a strong foothold in this region, and that they just need to be revalued the RECOM Initiative launched by civil society all over the Western Balkans region. These are important steps which should be encouraged and continued.

Secondly, I would stress that one of the major benchmarks on the road towards recognising the past and accepting the shared responsibility implies getting together and discussing controversies, opening debates about the past, and about the events leading to what happened the final decade of the last century.

The role of the civil society is extremely significant in this process as it has to make clear that coming to terms with the past does

not mean forgetfulness. It means forgiveness following the just and legal punishment of the individuals (not collectivities) responsible for the wrongdoings, and it means consensus about all of these issues at the level of both society and the political class.

The Western Balkans region does have a simple history and we all agree on that.

But these elements that I have highlighted above provide the conditions necessary to foster reconciliation, uniting the countries in the region and shaping a European future for them.

At a more general level, we should look toward Europe and how it developed and built itself through reconciliation. The last years have shown a definite determination in this direction at the highest level.

The road is not short or simple but I firmly believe that European values have a strong foothold in this region, and that they just need to be revalued. ď Ž

together for comparatively long periods of time. What may make it even harder is if one group has been the dominant power or established hegemony over the others. Religion and even different expressions and ways of interpreting the same religion make it all the more complicated.

The Western Balkans has all this and more dominating, or at least influencing relations among the nations and states of the region.

Moreover, due to great disturbances – such as those the region experienced and went through in the course of the last decade - people are inclined to settle their accumulated accounts, in other words to get arevenge on each other.

Still there seems to be more hope for the future of the region following the steps that have recently been taken by the leaders of the

Still there seems to be more hope for the future of the region following the steps that have recently been taken by the leaders of the regional countriesa regional countries. The Srebrenica Declaration was one of the most important. Newly born states may find it more difficult to follow suit but they too will find reconciliation and cooperation more to their benefit than confrontation and account settling. ď Ž

CorD 73 / July - August 2010 23

LEADERS

Image Makeover After the last decade of the twentieth century, Serbia has been tagged with an image that for the last ten years and with varied success, it has been trying to improve and become a desirable economic and political partner. With this in mind CorD magazine asked several marketing experts:

What are the three key priorities for improving Serbia’s image in the world?

Nebojsa Spaić, Director Partner at Farmer & Spaić Business and Media Consulting A Country That Lacks Image The image of Serbia in the world sphere could be improved, if it had one. Recently while I was travelling through six Asian countries over a month and a half, only the owner of a hotel in India knew what I was talking about when I told him where I came from. Some had heard of Djokovic, but they had no idea where he came from; and if they recognised the name of the country, they thought we were in Africa or South America, and a few of them were closer with “near Russia, right?” I think that things are not too different in the USA. I remember being there when Sarajevo was organising the Olympic Games and I saw the poll in which all answers to the question “What is Sarajevo?” were wrong. I still remember the lit-up faces of those who thought they had it right by saying “a new detergent brand” or “a new virus”. Maybe they know more about Belgrade now, because of the wars, but they are not really sure who was at war with whom, why and how, and where it was anyway.

Knowledge of Serbia must be much better in Europe. I am certain that almost more than one third of European citizens have heard of Serbia and know something about the country. Of course, the general population is not the most important thing and image is what counts to the elite – the business, cultural, political and all other elite areas. Even then, only those who are connected in some way with us know about us, although our country is of third-rate significance. We are simply not important anymore in political, economic, or in any other way, and thus those who deal with us are most often equally important in their surroundings.

Our image in the world should be realistically assessed, defined and created first.

So, our image in the world should be realistically assessed, defined and created first. It is going to be difficult and long - xenophobic and self-indulgent as we are - as we see Western Europe and our closest surroundings, with the USA and tourist destinations in the Mediterranean as the world. Until we comprehend that the BRIC countries (Brazil, Russia, India, China) are also the world, that Asia is flourishing and that South America is also getting closer, we will then have some chance, as they do not know us, and so we can present ourselves more easily to them.

24 CorD 73 / July - August 2010

Nadežda Milenković, creative director A Job for Professionals The first, and probably the only priority is to entrust work to the professionals in this area; to those who have already done some successful marketing campaigns, and not, as it is usually the case, to friends from your political party, school, band, kindergarten, to singers and sportsmen whose successes at competitions allegedly improve Serbia’s image, to enthusiasts from abroad who, also allegedly, can contribute with a single action, to tourists who will ‘definitely’ promote Serbia all around the world after Guča festival, and similar stupidities we are being fed with. If the branding of Kosovo for example is done by the Israeli Saatchi&Saatchi, while Serbia is presented at CNN with some amateur videos of nothing but bare landscapes (not to mention a Romanian church and Azerbaijan or whose-ever national tune), then a lot is said about the comprehension of the significance of image.

The change of image must start from us, from the change of the product Step two, or the second priority if you like, is that those professionals should set up the exact image we want to change, so we would not have to deal with platitudes such as ‘the whole world has seen’ and ‘the whole world knows’. So, who has even heard of us, how are we really perceived by others, who sees us like that, what image do we have in the eyes of those who create public opinion?

Third, and maybe the most important step – is how do we see ourselves? What is the image of Serbia with its own citizens and what do the citizens think about themselves? The Slovenians for example had done such research just before they left Yugoslavia. It was determined that the majority of citizens had a very low opinion about their fellow citizens, which was by no means favourable for the intentions of the officials. The ‘Slovenia, my country’ marketing campaign successfully changed the mood and boosted the enthusiasm.

The change of image must start from us, from the change of the product.

EACH MONTH, CORD KEEPS YOU UP TO DATE WITH THE MOST IMPORTANT CHANGES AT THE TOP OF BUSINESS, POLITICS AND DIPLOMACY IN SERBIA

Serbia has been burdened for years by the conclusion that its image within the world is bad 3. To communicate with the world in accordance with points 1 and 2, by using modern models and means of communication, by respecting cultural and communication differences between us and those we address, with the most frequent communication being with the ‘markets’ that are strategically most important for Serbia. This communication, considering the size and financial capability of our country, must be planned and coordinated by a single centre, with leadership responsible to a politically independent and expert team for evaluation. To educate skilled personnel for this purpose, as soon as possible.

H.e. Mr. abolghasem Delfi, New Ambassador extraordinary and Plenipotentiary of the Islamic republic of Iran to the republic of Serbia Mr. Abolghasem Delfi has been appointed as the new Ambassador Extraordinary and Plenipotentiary of the Islamic Republic of Iran to the Republic of Serbia. Mr. Delfi was born 1954 in Tehran. He graduated with a sociology degree from the Tehran University. His previous positions and postings include the Assistant in the Directorate General for the Western Europe in Iranian Foreign Ministry (2004-2010), Ambassador of the Islamic Republic of Iran in Belgium and Chief of the Iranian Mission in European Union (1999-2004) and Director of 1st Directorate of General Directorate for Western Europe in Iranian Foreign Ministry (1993-1999). He was Ambassador of the Islamic Republic of Iran in Chile (19911993) and Colombia (1989-1991). Mr Delfi is married and is a father to two children. He speaks French, Spanish and English.

H.e. Boriša arnaut, new ambassador of Bosnia and herzegovina to Serbia Mr. Boriša Arnaut has become the new Ambassador of Bosnia and Herzegovina to Serbia. He was born in 1948 in Sarajevo, where he graduated from law school. Before coming to Belgrade, he was the consul of Bosnia and Herzegovina in Munich. From 2003 to 2009 he was the ombudsman at the Ministry of Foreign Affairs of Bosnia and Herzegovina. He was also the head of the department for visas and legal affairs of the Ministry of Foreign Affairs of Bosnia and Herzegovina in Munich, and from 1993 to 1996 he was the assistant to the Minister of the Home Office of Bosnia and Herzegovina. Prior to this, he was a judge at the criminal department of the First Primary Court in Sarajevo and a jurist in the Property and People Insurance Community in Sarajevo.

H.e. Milica Čubrilo-Filipović, new ambassador of Serbia to Tunisia Milica Čubrilo-Filipović, who was Minister for the Diaspora in the Government of Serbia from 2007 to 2008, has been elected as the new Ambassador of Serbia to Tunisia. She was born in Carthage, Tunisia. She graduated in 1992 at the Law School of Pantheon-Assas Paris II University. In 1993, she received her MA degree in Anthropology and Law from the Sorbonne. From 1996 to 2000, she worked in the field of tourism and the organisation of cultural and sports events worldwide. From 2001 to 2003, she worked as a correspondent for Le Figaro, La Croix, and Radio France Internationale.

From 2003 to 2006, she was the director of the Tourist Organization of Serbia (TOS). In 2006, she was a consultant for CorD 73 / July - August 2010 25

AppOINTMENTS

VOJA ŽANETIĆ, CREATIVE DIRECTOR OF MOSAIC AGENCY germAn moDeL AnD moDern CommunICAtIon 1. To improve this image, namely that Serbia has been burdened for years by the conclusion that its image within the world is bad.

Because of this it will do no harm to remind Serbian citizens, for the sake of internal propaganda and all other requirements, about the following facts: a. The last armed conflict that Serbia was involved in ended 11 years ago. b. If we compare ourselves with, let us say, Germany, a country that had the same need to ‘improve its image’ after World War II, we are currently in somewhat similar situation as they were in 1956. We should mention that our ‘moral mortgage’ today is far lower than theirs in that period. c. During the 11 years of the twenty-first century, the amount of information of the average ‘image recipient’ is much greater than it used to be after World War II. If the amount of information is doubled, we are currently, laically speaking, in a somewhat similar situation as the Germans were in 1967. Their image, considering the ‘moral mortgage’ they had, was not bad at all. Of course, we are referring to the West Germans. The East Germans had different problems… d. The good image that the Germans had at the end of 1970s was based on huge economic growth and a strong economy, decisively distancing them from the policy that put them in the position of the country with the bad image and nurturing all the great positive achievements of German culture.

2. To insist on a high level of economic, agricultural, military and cultural independence, together with respect and an approach to all integrative processes that do not include any form of colonisation. Growth in the all above mentioned areas, especially the growth of exports and the improvement of working habits is implicit. To follow the German (or Japanese) model after World War II as much as possible.

AppOINTMENTS

EACH MONTH, CORD KEEPS YOU UP TO DATE WITH THE MOST IMPORTANT CHANGES AT THE TOP OF BUSINESS, POLITICS AND DIPLOMACY IN SERBIA the USAID Regional Competitiveness Initiative, on the strategy and promotion of tourism in the Balkans. vasilios ntertilis, President of the Board of Directors of the Hellenic Business association of Serbia Vasilios Ntertilis was elected for the second time for the president of the Board of Directors of Hellenic Business Association of Serbia. Since 2001, Ntertilis was general director and member of Boards of Directors of this company, member of Viohalco Group on the territories of Serbia, Montenegro and Bosnia and Herzegovina.

He finished Navy Academy, Faculty of Political Sciences and Military College in Greece, and from 1971 to 1998 he was an officer in the Greek Navy, which he left as an admiral. He has been living in the territory of former Yugoslavia for 19 years, for 11 years in Serbia. He is married with four children. Ntertilis has been a member of the Board of Directors of Hellenic Business Association since its foundation.

H.e. neda Maletić, new ambassador of Serbia to australia Neda Maletić has been appointed as the new Ambassador of Serbia to Australia.

She was Deputy Minister of the Diaspora for the Serbian Government from 2007 to 2008, when Milica Čubrilo was the minister. Prior to that, she was the media adviser of Vojislav Vukčević, the Minister of the Diaspora.

Maletić has worked in the Ministry of the Diaspora since November 2005. Prior to this she was an adviser for the diaspora and the first secretary of the FRY Embassy to London, when Vladeta Janković was the ambassador. She has also played an active role in Serbian society and the Serbian informational centre in London.

Neda Maletić completed her studies of the English language in Belgrade, and she earned her Master’s degree in theatrical arts abroad. She lived in London during the decade of the 1990s.

Božidar laganin, new director of SIEPa Božidar Laganin, who until now was state secretary of the Ministry of Telecommunications and Informational Society, was elected as the new Director of the Serbian Investment and Export Promotion Agency (SIEPA).

Laganin started his professional career in 2004 as the adviser for foreign investments at SIEPA. From 2007 to 2008 he was a special adviser to the SIEPA director. He negotiated the terms of agreement of large investment projects and coordinated activities at all levels of state management.

From 2008 he was an adviser to the minister at the Ministry of Telecommunications and Informational Society, where he was in charge of the strategic projects of the Government of the Republic 26 CorD 73 / July - August 2010

LEADERS Rade Pribićevič, Corporate and Regulatory Affairs Director, Danube Foods Group A rePutAtIon Is hArD to get, but very eAsILy Lost When we talk about Serbia’s image, we are really talking about its reputation. The term ‘reputation’ is being used a lot lately and it relates mainly to the corporate social responsibility of companies. The same things that can be applied to individual subjects or companies can be applied to Serbia as well.

So, what is a reputation? The simplest and, in my opinion, the best definition is that Reputation = Certain Behaviour + Communication. It is necessary, therefore, to behave in a certain way to deserve a certain reputation, but it is also necessary to acquire adequate information about it. The problem with a reputation is that it is hard to get, but it is very easily lost. In order to understand this, we must be aware of our starting position. I would say that, several years ago, when we started talking about ‘branding Serbia’, we were below zero, considering what we had done ourselves in order to completely ruin the image of our country. In my opinion, in addition to the wars we lost on the battlefield, we suffered even worse defeats in the area of image and reputation up to the level where, at one point, Serbia was turned into a synonym for crime, savagery and inhumanity. All this occurred together with the very targeted and specific use of instruments that created public opinion. Many things have changed since then, for the better. Regardless of our mistakes, the average citizen of the world has a somewhat better picture of Serbia than he used to. The basic instruments for creating the political image of Serbia are the Serbian President and diplomacy. I think that these two institutions are doing an excellent job, sometimes even creating a better picture of us than we actually deserve. There are also many individuals who, through their field of interest, starting with the arts, and then culture and sports, are achieving internationally recognised results and are having a positive influence on the image of our country, in their own way. Furthermore, there are events that occur here, which are very important for the reputation of our country - Exit, Guca, Belgrade Design Week, the Belgrade Philharmonic Orchestra…

The Serbian economy could have a more significant role in the creation of a positive image of the country by launching its products to the markets of other countries. Still, there are many things that can be and must be done here.

The Serbian economy could have a more significant role in the creation of a positive image of the country by launching its products to the markets of other countries

AppoiNtments of Serbia in the sector of telecommunications, which were carried out by the ministry. In October 2008 he was appointed as the state secretary of the Ministry of Telecommunications and Informational Society.

Slobodan Šoškić, New President of the Law Chamber of Belgrade Lawyer Slobodan Šoškić has been elected as the new president of the Law Chamber of Belgrade. Šoškić has been a lawyer since 1968. He is the author of dozens of expert works published in professional and theoretical journals and publications.

He has worked on some of the most significant civil and penal cases which marked the after-war period of the Yugoslav and Serbian legal systems. Šoškić was the Secretary and Vice-President of the Law Chamber of Serbia, and has also been a member of the Board of Directors of the Law Chambers of Serbia and Belgrade. From 1980 to 1992, in two one-year mandates, he was the President of the Law Chamber of Belgrade. In 1985, Slobodan Šoškić was elected as the Vice-President of the Association of Criminal Justice and the Criminology of Serbia.

Gabor Bekefi, new CEO at Carlsberg South-East Europe Gabor Bekefi has been appointed as the new CEO at Carlsberg South-East Europe.

Bekefi took over from Aleksandar Radosavljevic, who was the interim CEO following Dr Isaac Sheps’ move to Carlsberg UK in January 2009.

Aleksandar Radosavljevic will remain in the position of CEO at Carlsberg Serbia. Prior to being employed by Carlsberg, Gabor Bekefi was the Business Unit President of South-East Europe at Coca-Cola. Bekefi was employed at Coca-Cola as the regional manager for strategic planning, the country manager and business unit president for 11 years.

Bekefi also worked for United Biscuits/McVitie’s Company as their group brand manager and sales and marketing manager, following his engagement as sales manager for the Central Europe region at Nabisco International. Bekefi is Hungarian and holds an MBA from Gouizeta Business School of Emory University in Atlanta, Georgia (USA).

Mr Steve Efstathios Froustis Advisor for Large Corporate and Structured Finance and member of the Executive Board, Piraeus Bank Mr Steve Efstathios Froustis joined the Piraeus Bank Belgrade team on May 25th, from his previous position as the Director of the International Corporate Division at HQ in Athens.

Mr Froustis has been appointed as the Advisor for Large Corporate and Structured Finance and is a member of the Executive Board.

CorD 73 / July 2010 27

INTERVIEW |

Draginja Djurić, President of THE Executive Board of Banca Intesa

De-Euroization

- The Greatest Challenge Foreign currency risk is the most significant system risk, considering the fact that 75% of loans have foreign currency indexes and successful management of that risk would also decrease the loan risk for the banks

T

By Katarina Milosavljević he Serbian banking sector has not only managed to maintain its stability during the whole period of the economic turmoil, but it also actively contributed to lessen-

28 CorD 73 / July - August 2010

ing the effects of the crisis, and will continue to do the same in the future, Draginja Djuric, President of Executive Board of Banca Intesa says. In an interview given to CorD magazine, Mrs. Djuric speaks about the difficulties of the banking sector in the recent period, crucial

challenges ahead of it, and also the work that state needs to do in order to overcome the crisis more efficiently. n According to your assessment, 2009 was one of the most difficult business years, but it

seems that the banking sector relatively successfully overcame the majority of challenges.

The IMF, however, warned that the next two years will also be full of challenges. What are your predictions regarding Banca Intesa, and also the whole banking sector in Serbia? r Without any doubt, 2009 was a difficult year for the economy and the population, and this also had an influence on banking business.

Many positive moves have been noticed lately, but the threat from new waves of the recession is still present, and it is certain that this year will not be less complex than 2009. In accordance with IMF recommendations, the largest challenges for the banking industry in the following period would be the de-Euroization and the preservation of the quality of the loan portfolio.

The currency risk is the most significant system risk considering that 75% of loans are foreign currency denominated and the successful management of that risk could decrease the credit risk of the banks. Also, implementation of the latest Basel regulation should contribute to the preservation of the quality of the loan portfolio, which is especially important during the period of crisis. Further development of the banking sector is tightly connected with the pace with which our companies can overcome the crisis, renew their production and regain the markets.

The state also plays a significant role in this and its legal solutions should contribute to more efficient debts collection and thus, higher liquidity in economy. It is necessary that public companies and other users of state funds regularly pay their obligations towards suppliers, in order to avoid being the greatest generators of illiquidity. Also, the state should encourage investment activity in order to increase the growth of the economy and decrease unemployment. The crucial role of the banking sector is to maintain credit activities and find adequate solutions in the restructuring debt processes. n Can we expect a drop of loan interest rates in the near future? r The loan interest rates in foreign currency

will probably not change in the near future since we do not expect significant changes in the key policy rate (EURIBOR) by the end of the year. As far as dinar loans are concerned, after the cycle of aggressive decrease of repo rate, due to recent development such as depression of the dinar, the regional debtor crisis in Greece, Hungary and even the euro-zone crisis, this trend will probably be slower and may even be stopped so we do not expect significant changes in this segment of the market in the near future.

in general. Thus banks must once again assess economic and financial sustainability of the projects they finance and reach a decision on the validity of the financial support of the bank. The problems with debt collection has always existed and that is the integral part of the crediting process. As long as the bank manages well the credit risks and correctly assesses the level of the credit that is delayed, and as far as that risk is included in the price of the product that is competitive on the market, the bank has no real problems. Also, the banks

Further development of the banking sector is tightly connected with the pace with which our companies can overcome the crisis, renew their production and regain the markets n Globally, what is the risk trend in giving credits to projects in Serbia today? Do banks have any problems in charging loans and how do banks deal with the problems of the existing laws? r Regarding project financing, we must keep in mind that since the beginning of the financial and economic crisis the volume of financing projects and investment lending in general, has decreased a lot. Companies have been primarily focused on stability and maintaining existing business operations, sale volumes and relations with their clients and suppliers.

Investments in business expansion and market shares increase were put on hold, which is a normal reaction in such circumstances. From the point of view of risk management, project financing is specific because the credit risk is directly connected with successful realisation of the business in question and not primarily to the creditworthiness of the company which is a project bearer. In the time of crisis there are problems regarding the longer deadlines necessary to finish the project and putting it in the economic exploitation due to decreased demand and volume of economic activities

in Serbia implement a very conservative policy of valuing debts and form significant reserves to cover the credit risks. These reserves are formed from allocating acquired profit or from the capital of the bank. The ongoing crisis in some measure increased the percentage of clients unable to regularly pay their debts.

However, in spite of the increased level of problematic loans, we cannot say that this has been happening often. The majority of clients still pay their obligations very arduously. The percentage of non- performing loans at the banking sector level is lower than in the countries of the region, and Banca Intesa is more successful in that aspect than the competition, as well as in other qualitative and quantitative indicators. n In your opinion, was the decision of the state to transfer to dinar credits in order to enhance the liquidity of the economy and the dinar consumer’s credit justified, and in what measure will these credits be represented in Banca Intesa? r That measure is primarily significant in order to decrease negative effects of changes

The crucial role

Reaction

IMF

The crucial role of the banking sector is to maintain credit activities and find adequate solutions in the restructuring of debt processes.

Investments in business expansion and market shares increase were put on hold, which is a normal reaction in such circumstances.

The state should continue with fulfilment of the agreement with the IMF as the main precondition of a stable macroeconomic policy.

CorD 73 / July - August 2010 29

| | INTERVIEW

In accordance with IMF recommendations, the largest challenges for the banking industry in the following period will be the de-Euroization and the preservation of the quality of the loan portfolio of the exchange rate on the stability of the finance sector. However, it is necessary to increase interest in saving in dinars simultaneously with transferring to dinar credits, in order to provide enough assets for the banks to finance such investments. On the topic of participation in the subsidised loans program, it should be known that Banca Intesa was at the top of the list in 2009 and the first half of 2010, and we plan to stay there. n In your opinion, are there dangers that the Greek crisis could overflow into Serbian market, especially now when the EU has definitively taken over the responsibility for stabilisation of the euro? r The Balkans region is very connected economically, and all the surrounding countries, including Serbia, must feel the Greek crisis.

On the other hand, the banking sector in our country is very liquid and stable and I believe it will stay like that. aAlthough the claims that crisis in the region reflected on the amount of foreign investments to Serbia are true, I believe that foreign investors will guide themselves more by the positive assessment of

International Monetary Fund and international credit rating agencies than the current financial problems in Greece. Furthermore, Greece will receive the second rate of aid from the EU and IMF in September, which will, I believe, localise the crisis and prevent the possibility of it spreading to other EU members. n What is the influence of decreasing the

The Strategic Goals of Banca Intesa for Next Year

T

he leading position of the bank obliges us conduct ourselves in a socially sensitive and responsible manner, especially in challenging time like this. Banca Intesa prooved to be a stable and reliable partner to its clients, but also to the state in overcoming the negative effects of the crisis and achieving a development perspective for Serbia. A strong deposit base, as well as the support of Intesa Sanpaolo Group, will enable the bank to experience smooth lendng activity in the following period too. The bank will continue to support the economy and its citizens through the program of subsidised loans. We will also continue to look for cheaper financing sources for infrastructure projects, local self-governments, programs for improving energy efficiency, and economically vulnerable categories of population, through co-operation with supranational financial organisations. We will keep a strong focus on the continuous development and improvement of products and services adjusted to the changing needs of clients and the cultivation of excellence in all areas of work.

30 CorD 73 / July - August 2010

value of dinar to banking business? r Any instability, including the instability of the foreign currency exchange rate, is not helping the banks. It is obvious that debtors are having difficulties paying their increased debts due to decreased value of dinar. n What do you expect from the state, and what can be rationally expected from the Serbian banking sector in order to overcome the economic crisis? r The state should continue with fulfilment of the agreement with the IMF as the main precondition of a stable macro-economic policy.

Also, it is necessary to work on attracting foreign investments, increasing the competitiveness of the Serbian economy, and encouraging the export sector in order to overcome the crisis. The Serbian banking sector was, clearly, very stable throughout the period of the economic turmoil since it actively aided in lessening the effects of the crisis primarily through programs initiated by the state. It is certain that its support in overcoming the economic crisis will also be significant in the future. n

QUOTATIONS Serbia is a lucky country.

Everything that falls rises in it. For example – the euro. Žarko Jokanović, screenwriter and former politician

It is not easy to support Serbia.

Vuk Jeremić, the Minister of Foreign Affairs

He who does not grieve has no heart. He who grieves has no smarts.

Predrag Marković, Honorary President of G 17 Plus and member of the Presidency of the Union of the Region of Serbia

A maths assignment in the third grade of primary school: the 6A bus line has ten stops, and at the first stop 100 passengers enter the (double) bus. At each following stop ten passengers come off, while 20 new ones get on the bus. How many passengers curse the mayor at the fifth stop? The correct answer is 260! Those 140 passengers in the bus, including the 10 who would like to get off the bus but cannot reach the doors, plus those 20 who must wait for the next bus and the 100 people at the following stops who are walking on foot down the dusty boulevard!

Ivan Mrđen, the editor of the Belgrade section in Blic

Famous businessmen also use cocaine. They usually start consuming it on a Friday, and on Sunday evening they come to our hospital completely disguised.

They wear fake beards and moustaches, scarves and wigs, and they ask for an urgent body detox because it’s a working day tomor-

row. They even refuse to take off the fake moustaches and other props during the detox.

Dr Dušan Priklić, from the specialised clinic for addiction treatment ‘Rusmedic’

Twenty years after the rebellion against the regime of Slobodan Milošević and his criminal system, and the number of mafia in Serbia exceeds the per capita income.

tiation, of holiness and untouchable taboos.

more and more people do not expect any solutions from politics.

Siniša Kovačević, playwright

Ivica Dačić, President of the Socialist Party of Serbia

A while ago, we were getting ready for our trip to the Seychelles, when Nebojša’s arm stopped working. The doctor thought it was a stroke. I told him we had to go and that it would be very romantic if he died there. Luckily, it was only a lack of some vitamins.

Vuk Drašković, President of the Serbian Renewal Movement

Isidora Bjelica, writer

Here, when an institution does not function properly, a new institution is formed, while the old one continues to hardly work or it stops working (‘Roads of Serbia’ - ‘Corridor 10’‘Corridors of Serbia’)

At some point in the past, a candidate for a certain minister’s position was presented to the then prime minister. Of course, the candidate was not debated before the main, department board or the MPs club of some of the parties in power… A respected middleman presented the candidate and started to list his professional qualities, expert references, flawless career, important achievements… and then finally, with a smile, he mentioned as his flaw that the candidate was his best man.

Srećko Mihailović, sociologist

I mostly went there because they promised us that we, as volunteers, would have priority in employment when they come to power.

Milica Grujić, an activist of the Serbian Progressive Party

By suggesting that the army should be dismissed, a lobotomy of the mindset of the nation is being performed. Who did they ask in regards to whether the army should be dismissed? Do they know that in Serbia there are 2000 poems about the army, and that in our nation it is not only a defence mechanism, but also a mental and emotional phenomenon?

In Serbia, it is a certain kind of ini-

Čedomir Antić, historian and President of the Progressive Club

I am a link between Nikolić and Koštunica.

Toma says - go to Voja, tell him this.

Voja says - go to Toma…

Velimir Ilić, President of the New Serbia

The old politics of the Socialist Party of Serbia can no longer provide any solutions, and that is why

The suspense in which we are to work and nothing but to work is unsustainable, and the European Union does not know when, if ever, we will be admitted.

Milorad Dodik, Prime Minister of the Srpska Republic

Whenever there is a lot of fuss about a minister, it means that they are working the hardest. There was a lot of fuss about me while I was the head of Novi Sad. Maja Gojković, President of the National Party

Tadic is at the crossroads now - should continue to cooperate with the rich he created or to turn to the poor he created?

Tomislav Nikolic, leader of Serbian Progressive Party

Current leadership in Jagodina will remain in power for another 20 years thanks to good cooperation between the authorities and the opposition.”

Dragan Markovic Palma, Mayor of Jagodina and leader of United Serbia / July 2010 31 CorD 73CorD / July -73 August

| | INTERVIEW

Gordana Dostanić, Director of the Belgrade Stock Exchange

REALISTIC OPTIMISM “With regards to acquiring one or several stock exchanges, I don’t think that now is the right time for such endeavours. We ought to solidify our own position first and incite others to see us as their strategic partner”

By Tatjana OSTOJIĆ 2009 was an extremely difficult year for business and it has left a deep mark on the operational results accomplished by the Belgrade Stock Exchange. The negative effects were even felt in the first quarter (Q1) of 2010.

However, the director of the Belgrade Stock Exchange, Gordana Dostanić, believes that her optimism is realistic and that, in 2010 and 2011 we will see large enterprises like NIS , Nikola Tesla Airport, Telekom Serbia and EPS floating their shares which is definitely going to affect the Serbian capital market.  At the beginning of this year, you said that you expected the capital market to pick up in 2010 and large state-owned companies to float their shares. Do you still think that?  Yes, I do. And my optimism is relentless. I do believe that it is also justified, despite the bad results and the negative circumstances from Q1. I think that it is quite realistic to expect that NIS will float its shares on some of the stock exchange’s markets. NIS is a large company and has its every move carefully monitored by investors. It is also a company that now has a very uneven shareholder structure, and until it floats it shares on the stock exchange, it is quite sensible to expect that its shares will become very liquid financial 32 CorD 73 / July 2010 - August 2010

instruments and will attract new investors to our market. Due to this wide shareholder base, organising the trading of NIS’ shares will be a great challenge both for the relevant institutions and capital market participants. Also, the Law on Free Shares (which stipulates the compensation that citizens are entitled to on the account of free shares of privatised companies), has just been amended and supplemented which gives us reason to hope that the

until mid-2010. Another change we can expect on the stock exchange, (and we still don’t have enough organisational and technical details about it yet), is the role that the Shareholders Fund will play. The aforementioned Law stipulates establishment of such fund.  You have said that once these companies float their shares on the stock exchange, market capitalisation will grow and new

By applying various techniques, the Belgrade Stock Exchange will try to raise market liquidity as much as possible shares of Nikola Tesla Airport could be floated on the stock exchange by the end of this year.

This is also a very appealing investment offer.  Which large state-owned enterprises are expected to float their shares on the stock exchange next year?  With regards to next year, we certainly expect Telekom Serbia and EPS to float their shares. It is very difficult to discuss the particulars at present, especially keeping in mind that all the details have not been revealed as yet, and that the amendments to the Law on Free Shares don’t bind Telekom to float its shares

NIS It is quite realistic to expect that NIS will float its shares on some of the stock exchange’s markets.

investors will come. What investors did you have in mind when you said that?  Only institutional or so-called portfolio investors, whichever title you prefer. Strategic investors do not add to the market’s liquidity, especially not long-term, regardless of their participation on the stock exchange, which, again, is quite rare. Regardless of how important their role is in a company or a country, they are not as important to the market. If we are talking about companies with a high capitalisation, 15% to 20% of the capital distributed among institutional and individual investors will secure a required free-float and,

BELEX 15 The BELEX15 is envisaged as an investable index and we have already sold several licences for this index.

TELEKOM, EPS With regards to next year, we certainly expect Telekom Serbia and EPS to float their shares.

as such, it becomes a significant long-term market potential. This is especially true if we are talking about companies from sectors that are quite appealing for investing - companies that have advanced communication with the investor, good corporate management and provide permanent and high quality information. If we consider the abovementioned, the arrival of such companies on the stock exchange and the significant participation of institutional investors would have a very positive effect not only on the liquidity of a particular share, but also on the overall market too. I would not like to dwell on this too much, but we should consider the boost such a sequence of events would give to the development of alternative savings formats, domestic funds, voluntary pension funds and the pension insurance reform.  You have announced that, in 2010, the Belgrade Stock Exchange will focus on increasing market liquidity via the automation of the market making function. Could you be more specific?  By applying various techniques, the Belgrade Stock Exchange will try to raise market liquidity as much as possible. The stock exchange will continue to support the market making function, since it has proved to be fitting to our practice. We will provide our support by giving technical assistance to stock exchange members wishing to take on this role. So, what we are talking about here is automation of trading orders and the monitoring of whether they are committed to fulfilling their obligations as market makers.

Recently, one of the stock exchange members took on the market maker role with regards to a certain share. Also, in order to increase liquidity, the stock exchange will assist companies with establishing contacts with foreign investors in terms of organising investor conferences and raising the quality of relations among investors.

In order to increase liquidity, the stock exchange will assist companies with establishing contacts with foreign investors in terms of organising investor conferences and raising the quality of relations among investors  You think that last year was not successful or unsuccessful if we are talking about stock exchange turnover. Which year has been the most successful for the stock exchange so far, and which the least successful in terms of turnover?  In 2006, the market did pick up significantly, and 2007 was the most successful so far in terms of turnover and the number of executed transactions. True, it was not only our stock exchange that was successful, but many other regional markets were on the way up too. Since 2002, the lowest turnover was recorded last year, 2009. We do hope that 2010 will not be a record breaking year in a negative way. Our optimism is based on the fact that several renowned Serbian companies will float their shares, as I mentioned earlier.

INVESTORS’ EVALUATION

“I

nvestors have expressed their opinion by deciding to invest on this market. Judging by the overall turnover, the situation is somewhat less favourable than in past years.

If we take into consideration the foreign investors’ participation in overall trading, then, expressed in relative numbers, it is somewhat lower than in 2008. However, absolute values show that investors were not that keen to invest compared to the previous period.

So, we need to work more on diversification and the quality of our offer to investors, as well as on transparency, reporting and corporate management.”

 How did the stock exchange indices fair?  Last year, the indices recovered compared to late 2008. This year, we have also noticed a gradual recovery of indices in relation to the end of last year. The index value during past years is in correlation to the regional stock exchanges, as well as branded indices, which measure the public perception of consumer brands on a regional basis, and which also include certain Serbian shares.  Is there a plan to acquire one or several stock exchanges or to connect to regional stock exchanges?  Establishing regional connections between the stock exchanges (especially those from the former Yugoslavia) is being carried out in line with the Memorandum on Partnership, in accordance with the jurisdiction that each stock exchange has. We are very satisfied with the collaboration with other stock exchanges. With regards to acquiring one or several stock exchanges, I don’t think that now is the right time for such endeavour. We ought to solidify our own position first and incite others to see us as their strategic partner.  / July 2010 33 CorD 73CorD / July -73 August

| | REVIEW

The ‘International Business Sector in Serbia 2010’ Business Conference

Dialogue is Necessary What are the advantages and disadvantages of Serbia as an investment destination? Why are state officials optimistic? And why are the representatives of businesses and international institutions warning that a lot of work is yet to be done?

By Jovana Gligorijević

T

he ‘International Business Sector in Serbia 2010’ conference organised by ‘Business Dialogue’ and CorD magazine and held on 4th June, gathered together representatives of international businesses who work in Serbia and representatives of the highest institutions in Serbia and the European Union. The aim of this conference, which will be an annual event, was to set up a wider dialogue between the global business sector and decisionmakers in the highest state institutions, and to, via their discussion, acquaint the public with the economic and legislative movements in Serbia. The general conclusion of the conference was that the representatives of state in-

stitutions are mostly satisfied with the way in which Serbia is handling the consequences of the global economic crisis and that they are optimistic when it comes to the future of direct

Roma Klott, General Manager of NAI ATRIUM, suggested that the government should pay more attention to investments in production capacities, for this was an area with the potential for industry growth investments into Serbia. Conversely, the representatives of business and international institutions, while sharing the moderate optimism of the Serbian officials, deem that Serbia still has a lot of work to do.

Mlađan Dinkić, the Minister of the

Paolo Toschi, Head of Economic Affairs, Embassy of Italy to Belgrade The awareness of Serbia as a business partner in Italy is constantly growing. The indicators are showing that there are an increasing number of businessmen and companies who come from Italy to Serbia to learn something about the country, circumstances and the opportunities for business in Serbia.

On the other hand, Serbian institutions are very active in their efforts to connect the Serbian and Italian economies.

34 CorD 73 / July - August 2010

Economy and Regional Development and Deputy Prime Minister of the Serbian Government; Simon Gray, Head of the World Bank office in Serbia; Peter Burnie, Partner at

PricewaterhouseCoopers; Alberto Cammarata, Head of the European Integration Division of the EU Commission Delegation in Serbia; Nebojša Ćirić, State Secretary for Economy and Privatization of the Ministry of Economy and Regional Development; Nebojša Divljan, General Manager of Delta Generali; Goran Pitić, President of the Foreign Investors Council (FIC); and Slavko Carić, President of the Executive Board of Erste Bank, all participated in the first panel dedicated to discussing the advantages and disadvantages of Serbia as a desirable investment destination.

Neil MacDonald from the Financial Times was moderator of the panel.

The prevailing opinion of most of the

speakers was that for investors in Serbia the biggest problem was the overwhelming level of bureaucracy, but they agreed that the state was making efforts to solve this issue.

Peter Burnie from PricewaterhouseCoopers (PWC) deemed that Serbia, as a relatively small country and judging by latest trends, had a satisfactory investment potential.

Analyses done by PWC show that a large number of small destinations have fared better during the period of crisis, than the big countries in the region. Burnie thinks that the future of Serbia lies in small and medium

electronically now, which saves us around €15 million,” Dinkić said.

Head of the World Bank office in Serbia Simon Gray pointed out that, on the road to improvement, Serbia must rely to a greater level on its internal resources instead of on external resources, as had been the case until now. In addition, Gray commented, Serbia must work on its competitiveness and export growth. He also mentioned that the regulations guillotine annulled about two thirds of all regulations, but still the time required to perform some procedures had been only

Goran Pitić, Vice President of the Foreign Investors Council (FIC) The biggest obstacle is still the large number of unnecessary bureaucratic procedures that are in existence. Members of the FIC have invested significant efforts into producing more than 120 specific proposals to amend legislation via the “guillotine” project, in the field of taxation, customs, labour laws and telecommunications. However, until now the government has adopted only a small number of recommendations given by the private sector, and there is still the problem in their implementation in practice due to the resistance of administration.. sized investments, and in the participation of regional investment projects.

The Minister of the Economy and Regional Development, Mlađan Dinkić pointed that the main advantages of Serbia as an investment destination were its favourable geo-strategic position, a quality labour force, a good tax system, the free trade contract and macro-economic and political stability. Serbia is currently working on the correction of its flaws, Dinkić said. As all investors want locations adjacent to the new Corridor 10, the minister announced that the northern route of the corridor would be completed by May 2011, and that funding for the southern and eastern route would be provided. He said that in June tenders for the construction of the highways of Pojate-Preljina, Paraćin-Bulgarian border, and Šabac-Corridor 10, as well for the ring road which would connect the highways around central Serbia with the Corridor 10 would be opened. Dinkić also mentioned that overwhelming bureaucratic procedures will be shortened by the implementation of the ‘guillotine’ regulations, and a set of recommendations given by businessmen was adopted - so a lot of procedures will be significantly eased and shortened.

“There is no longer any need for companies to register their new employee at three different places, because everything is done

shortened by a third.

Goran Pitić, President of the Foreign Investors Council (FIC) pointed to the need to work on the regulations guillotine and taxation policy. He said that for foreign investors significant predictability of operations, an improvement in infrastructure, education and the elimination of bureaucracy were all very important.

Nebojša Divljan, Manager of Delta Generali Osiguranje criticised both the state and foreign investors. According to him, the state is making the investors’ position difficult by changing the previously agreed terms of business, which is not good for Serbia’s image. Divljan also made a remark regarding foreign companies who do not apply the same business standards in Serbia as they do in their own countries.

For the second panel of the conference ‘Why did investment stop and what are the problems for foreign companies who are doing business in Serbia?’ - representatives from foreign companies and embassies of the countries that these companies came from, stated their opinions. Among the speakers were: Vesna Arsić, State Secretary for International Economic Relations, the Ministry of the Economy and Regional Development; Paolo Toschi, Head of Economic Affairs at the Embassy of Italy to Belgrade; Cameron

Boško Ničić, Mayor of Zaječar

City of Business Possibilities Around €15 million have been invested in Zaječar in the last five years

By Ana Stojanović

F

our underdeveloped cities - Niš, Zaječar, Kraljevo and Novi Pazar - are considered to be of strategic interest to Serbia by the government, which is why they will be given special incentives, the Minister Mlađan Dinkić has said. This is one of the reasons for this interview with Boško Ničić, the Mayor of Zaječar. n To what extent are foreign investors interested in investing in Zaječar? r Around €15 million has been invested in the city in the last five years. Several large companies are doing business in the area of Zaječar including ‘Strabag’ Austria, ‘Tele-fonikakable’ Poland, ‘United Serbian Breweries’ Holland, ‘PD Salas’ Italy, ‘Moravia-energo’ the Czech Republic, and ‘Salford’ Holland. n What is the biggest obstacle for the city’s development? r It has to be the bad trunk road from Paraćin which connects Zaječar to the Belgrade-Niš highway. We have lost several investors due to this problem. This year the Ministry for National Investment plan will begin construction of the road to Paraćin which should be finished in three years. We are expecting bilateral talks with Bulgarian, as they are planning on building a highway from Vidin to Vrška Čuka, which is only 10 km from Zaječar. n Are you undertaking any infrastructure developments in the area for the investors? r It is the decision of Zaječar not to invest into infrastructural development of undeveloped areas for unidentified investors. We are making great efforts to bring investors into our deserted production halls. We have excellent facilities, fully equipped in terms of infrastructure and are at some rather good locations. What the city is offering right now is a free hall where the textile industry ‘Timočanka’ used to be, for a five-year period, for investors who hire more than 50 workers, with the possibility of the extension of this period as long as all the conditions are met. We are ready to meet the needs of any investor who wishes to build his own production hall. The city will equip the area for free for those investments that are of great significant to the city.

CorD 73 / July - August 2010 35

| Nebojša Ćirić, State Secretary for the Economy and Privatisation Since 2000, privatisation has been the main source of growth and budget income. The Serbian government is expecting that in the next period the income from privatisation will decrease as that trend has been varying since 2006, and a larger income from greenfield and brownfield investments is expected.

Werker, Commercial Attaché at the USA Embassy to Belgrade; Eric Blanchetete, President of the French-Serbian Chamber of Commerce and CEO of Findomestic Bank in Serbia; Matthew B. Perkins, vice-president of AmCham in Serbia and General Manager of US STEEL; and Roman Klott, General Manager of NAI ATRIUM. Their overall impression was that, despite the panel’s title, investments in Serbia have not stopped, however due to the global economic crisis, there have been fewer than before.

Cameron Werker of the USA Embassy to Serbia compared the situation to a sink: “The flow of foreign direct investment in Serbia is like water coming from a water faucet. The faucet is open, but not all the way.”

In her opening speech, Vesna Arsić, the State Secretary for International Economic Relations of the Ministry for the Economy and Regional Development, recalled the current favourable OECD report concerning the index of investment reforms, which put Serbia above average compared to other Southeastern European countries.

“Some areas such as the protection of intellectual property, land property and administrative procedures need more work,” Arsić said and pointed out that some areas such as investment and export promotion got the highest grades. She added that Serbia is now expecting a drop in the income generated by privatisation and that is the reason that Serbia must work on increasing income from other sources – on increasing employment and at-

tracting investment in infrastructure.

“In the last couple of months, the Serbian government has been putting extra effort into supporting balanced regional development, by stimulating investments in the underdeveloped regions.” She added that foreign investors including NIS, US Steel, Henkel Merima, Apatin Brewery and others, are on the list of Serbia’s leading exporters.

Paolo Toschi, Head of Economic Affairs at the Embassy of Italy to Belgrade, stressed that Italy is first on the list of importers of goods and services that come from Serbia, and is

Mr Eric Blanchetete, President of the French-Serbian Chamber of Commerce, CEO of Findomestic Bank in Serbia The situation of foreign direct investment in Serbia is far from ideal. There has been a drop and this is not good for Serbia as investment is necessary for the development of the country. I would say the main problem that Serbia is facing in this crisis, is that Serbia is under the radar. its second most significant trading partner.

Toschi stated that Italy is growing its awareness of Serbia as economic partner. He added that Serbia must pay attention to the fact that legislation must keep up with technological development, which is quite rapid.

Cameron Werker, the Commercial Attaché, at the USA Embassy to Belgrade, warned about the need to make improvements in the protection of intellectual property rights and resolving development land and construction

Mr Cameron Werker, Commercial Attache, US Embassy In terms of problems that investors have with Serbia, foremost would be the perception of Serbia. People in a lot of the western countries outside of Europe are not familiar with Serbia; they don’t know the opportunities that exist here. Until Serbia starts promoting itself more actively in these markets, it will be very difficult to get investors.

36 CorD 73 / July - August 2010

issues. He estimated that the government of Serbia does not have a comprehensive investment strategy.

“The problems begin when investors actually start looking at what is involved in making the investment. They must visit four to five ministries and often receive different messages and even conflicting messages,” Werker commented, adding that “Until the government implements a comprehensive investment strategy and provides clear guidelines to foreign companies on how to invest (and provide adequate ‘aftercare’ once they do invest), the flow of investment will remain much less than what it otherwise could.”

President of the French-Serbian Chamber of Commerce and CEO of Findomestic Bank in Serbia, Eric Blanchetete, and Vice President of AmCham in Serbia and General Manager of US STEEL, Matthew B. Perkins, both agreed that the regulation guillotine in Serbia was not efficient enough because, although the percentage of the regulations had been lessened, the time required for issuing

the necessary permits had not been proportionally lessened, nor was the guillotine saving state money to a suitable extent.

Roma Klott, General Manager of NAI ATRIUM, suggested that the government should pay more attention to investments in production capacities, for this was an area with the potential for industry growth.

When asked panel by moderator, Neil Macdonald of the Financial Times, to comment on the complaints of the discussion participants about the complicated procedures needed to get permits and the fact that two, often contradictory solutions are offered for the same problem, Vesna Arsic from the Ministry of the Economy, advised investors to talk to the Foreign Investments and Export Promotion Agency (SIEPA) first about any problem they might have, and that it would pass on those complaints onto the relevant institutions. n

Nebojša Divljan, President of the Board of Directors and General Manager of Delta Generali Osiguranje

Stable Business Conditions are Necessary The state is showing a great deal of enthusiasm in its efforts to make Serbia a more appealing destination.

However, pressed by its short-term needs, it sometimes jeopardises the stability and safety of the rules under which foreign investors do business

By Marica Vuković Speaking from the point of view of an investor who is already doing business in Serbia at the conference of the ‘International Business Sector in Serbia 2010’, Nebojša Divljan, President of the Board of Directors and General Manager of Delta Generali Osiguranje, urged the state to take a balanced and principled stand toward investors when he stated, “He who invests in Serbia, buys the terms of doing business, and their change is a bad move for Serbia’s image.” How important is predictability is in business, and what are the possible ways of improving the business climate in Serbia are just few of the questions we asked our interlocutor. n How do you evaluate the business climate in Serbia? r The state shows a great deal of enthusiasm in its efforts to make Serbia a more appealing destination. When it comes to foreign-trade and the tax system, almost everything possible has been done. There is an ambition to simplify both administration and bureaucracy, and first steps have been taken to make this possible. Still I would say that, pressed by its short-term needs, the state sometimes jeop-

ardises the stability and safety of the rules under which the foreign investors do business.

The arrival of each major investment entails making concrete promises or at least fulfilling some of the expectations of the investors when it comes to the terms of business. Under no circumstances should it be permitted for one of these promises to be broken. We also need to avoid small interest groups, which are present in every country, denying fair market conditions to foreign investors.

The greatest obstacles are rigid regulations related to the selling of insurance n How did the economic crisis influence the insurance sector in Serbia? r From the beginning of the crisis, the extent to which business has been stagnating might give the impression that this industry could have done worse. It is true, but a year of stagnation means that yet another period in which rapid growth of the insurance market could have occurred, which is by the way at a serious standstill, has been lost. So, when

Plans of Delta Generali for 2010

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t is our plan to, regardless of the crisis and difficult business conditions, make an increase of at least 10% compared to last year results. We will open a polyclinic which will be primarily used by our clients of private medical insurance. We expect a stronger growth of the company in Montenegro, where in two years of business we have achieved remarkable growth. Overall, 2010 and 2011 should be the cornerstones for the new expansion of the insurance business which is bound to happen in the midterm future.

you look at things in that way, the industry of insurance has been severely affected by the crisis. The most direct effect of the crisis can be seen in the value of the shares which insurance companies, as institutional investors, have on their accounts, and whose value seriously dropped at the beginning of the crisis. n What are the legal obstacles for the more successful business of insurance companies? r The biggest obstacles are rigid regulations related to the selling of insurance. Wanting to make selling more personal, which we can completely justify, this area of business has become over-regulated, especially in the example of demanding that all agents be fulltime employees. Should more flexible models of hiring under contract be introduced, our industry could hire several thousand new people. Also, the maximum amount of provision for each sale has been regulated. You will agree that in the market economy it is rather difficult to regulate such matters using an ordinance, and that all participants on the market are tempted to cross the line of legal business. However, obstacles are one thing, and missed opportunities are something completely different. A lot of opportunities in Serbia are missed due to the lack of tax stimuli for investment and life insurance. We as an industry spend a lot of energy trying to persuade the lawgivers to allow for such stimuli, not to help the insurance industry but foremost to teach people to take care of their own future, and also to raise internal funds of highest quality for investments and infrastructural development. n CorD 73 / July - August 2010 37

FROM THE WORLD PRESS Charles and Diana. In Stockholm Cathedral, 1,200 royal guests and dignitaries watched the nuptials, along with 500,000 people who lined the streets, and an estimated 500 million TV viewers from around the world.

Yet the princess only had eyes for her groom, Daniel Westling - now Prince Daniel, as she calmly spoke her vows, tenderly wiped a tear from his eyes after exchanging rings, and at one point, even winked at him during the service.

MaGiC 4,450 aCCoUnt-HolDerS

(Source: By Zach Lowe, The Wall Street Journal) Perhaps feeling cheery after Switzerland’s monster World Cup upset of Spain, legislators from the two houses of the Swiss Parliament hammered out a law that allows UBS to hand over the names of 4,450 suspected tax cheats to U.S. authorities, according to The Wall Street Journal.

The deal, struck a day before the close of the Swiss legislative session, means UBS will be able to meet the August deadline by which it is required to turn over the 4,450 names. That deadline was included in the settlement the Swiss bank struck last year with U.S. prosecutors who accused the bank of helping taxpayers evade tax payments on as much as $20 billion in income, the WSJ says.

If UBS had failed to meet the deadline, federal prosecutors could have revived the original case, which sought the names of up to 52,000 UBS clients, according to our prior reporting. The bank obviously wanted to avoid the broader disclosure, but Switzerland’s highest court took If UBS had failed to meet the deadline, federal prosecutors could have revived the original case, which sought the names of up to 52,000 UBS clients

the matter out of the bank’s hands by ruling that the agreement with the U.S. violated Swiss laws related to bank secrecy. That left it to the Swiss Parliament to hammer out a law essentially overturning the high court’s ruling.

And for several weeks, it looked as if the legislature would be unable to pass such a law. The lower house voted against it, then reversed itself and voted for the measure while simultaneously approving language that called for a national referendum on the issue. The upper house approved the bill without any mention of a referendum.

At the middle of June the two houses reconciled their dueling bills and dropped any referendum requirement. And so the bank, at last, will turn over those 4,450 names to U.S. authorities.

John Savarese, the Wachtell, Lipton, Rosen & Katz partner who helped UBS strike the original deal with federal prosecutors, tells us the UBS side is “delighted that the Swiss Parliament’s action today will allow the settlement that we negotiated to go forward.” That’s not surprising, since tax experts told us UBS came out well in the deal. Savarese adds: “It has been a long road, but this is a big, important step in the right direction

ThE TrIUMPh OF STYlE IN SWEdEN

(Source:Yvonne Yorke, Journalist, Huffington Post) In regal and triumphant fanfare, Sweden’s next Queen, Crown Princess Victoria tied the knot on June 19 in the largest royal wedding since 38 CorD 73 / July - August 2010

VATIcAN BlESSES BlUES BrOThErS

(Source: Todd Venexia, Journalist, Huffington Post) They really were ‘on a mission from God.’ In a stunning move by the Vatican, the classic Dan Aykroyd-John Belushi comedy film “The Blues Brothers” was declared a ‘Catholic classic’ alongside more pious films such as ‘The Ten Commandments’ and ‘The Passion of the Christ.’ The announcement was made in the Vatican’s official newspaper L’Osservatore Romano, corresponding with 30th anniversary of the release of the film.

They really were ‘on a mission from God.’

“As a former altar boy from age 6 . . . but a somewhat lapsed Catholic, I was delighted with the endorsement,” Aykroyd said in a message to The Post yesterday.

chINA dONATES cUrrENcY TO g20

(Source: Stephanie Flanders, Journalist, BBC) The timing of China’s exchange rate move is hardly accidental. The Chinese have said they will ‘increase the flexibility’ of the exchange rate ‘to benefit the domestic economy’. But in the very short term, it is in Toronto where the benefits will most clearly be felt. A few months ago, the battle over the exchange rate threatened to blow up at the G20 Summit in Canada. The US Treasury Secretary, Tim Geithner, took the first step towards defusing the issue, with his decision in April to delay a politically charged report to Congress which would have labelled China a “currency manipulator”. With this statement just days before the Summit, China have now rewarded his patience. As usual, the wording is vague. It doesn’t even mention the dollar. But the assumption must be that China plans to move back to the policy of allowing its exchange rate to appreciate in real terms against the dollar.

Thanks to the recession, China’s current account surplus has gone from 11.3% of GDP in 2007 to 5.8% in 2007. The country even had a trade deficit at the start of this year, for the first time since 2004. The question is what happens next.

FIghTINg BAcK AgAINST WEB ATTAcKS

(Source:BBC News) Hi-tech criminals are not very good at securing the tools they use to attack websites, suggests research. Security experts have found that many of the kits used by cyber criminals are riddled with bugs and vulnerabilities. Exploiting the bugs might mean that the attack tools can be turned against those using them. In a presentation at the SyScan 2010 security conference in Singapore, French computer security researcher

Security experts have found that many of the kits used by cyber criminals are riddled with bugs and vulnerabilities

Laurent Oudot released details of 13 separate unpatched vulnerabilities he found in some of the most popular malware kits used to attack websites. In many cases, said Mr Oudot in his presentation, exploiting these vulnerabilities would allow security researchers to ‘hack the web hackers’.

Mr Oudot acknowledged that using the loopholes might ‘lead to legal issues’ but said the research was done to ‘open new ways to think about IT security worldwide’.

A Big Hiring Spree

By Adam White, The Time Britain may still be groping its way out of recession, and figures show that overall unemployment continues to rise, but for London’s Square Mile — the capital’s financial district — this is no time for austerity. According to two recent reports, London’s banks are on a hiring spree. And where the jobs go, the rewards follow — despite lingering public outrage and the promise of a crackdown by politicians, big bonuses are back.

A pair of reports released by the London-based Centre for Economic and Business Research (CEBR) predict that the capital’s financial institutions will hire 14,000 more people this year, and another 8,000 the year after.

To sweeten the deal, they add, banks will grant £6.8 billion ($10 billion) in bonuses in this year — the highest level since the recession.

Many blame the bonus system, which rewards bankers for taking risky gambles with other people’s money, for leading markets to the edge of collapse. Ahead of Britain’s general election in May, politicians tried for easy votes as they lined up to denounce the excesses of the “bonus culture”.

Banks are moving away from the enormous cash bonuses of the past, offering instead a 30-50% higher base salary and a correspondingly smaller maximum bonus.

The idea is to dissuade employees from taking enormous risks in the

Banks are moving away from the enormous cash bonuses of the past, offering instead a 30-50% higher base salary and a correspondingly smaller maximum bonus

hopes of earning significant bonuses. On top of that, the big banks are switching to a model favored by the smaller institutions, in which a large proportion of each bonus is paid in the form of shares, which cannot be sold until a minimum amount of time — usually three to five years — has passed.

If the City cuts bonuses while raising salaries to make up the difference, the government will appear to have tackled the risk-taking behavior that sparked the crisis while not affecting the high pay levels that provide so much income tax. Additionally, base salaries are much harder to squirrel away through loopholes than bonuses, which again increases income tax revenue and makes the whole system more transparent. It seems that

the City is bringing itself into line before the government announces its plans for financial reform in June. Could it be banks have learned their lesson after all?

CO-OPTING BRANDS

By Sergio Solache, USA TODAY A new kind of Mexican immigrant is making it big in the USA: huge Mexican corporations that are snapping up U.S. brand names, opening U.S. factories and investing millions of pesos north of the border.

From Thomas’ English Muffins to Borden milk, Saks Fifth Avenue department stores to The New York Times newspaper, Mexican investors have taken advantage of low interest rates and depressed prices during the economic downturn to expand their holdings in “el norte”.

In some cases, Mexican companies have taken over U.S. brands. Others

New investment in the USA by Mexican companies rose from $3.6 billion in 2005 to nearly $8 billion in 2008

have expanded their U.S. operations or increased their investments in U.S. firms.

Newcomers include Grupo Lala, Mexico’s largest dairy company, based in Gómez Palacios in the northern state of Durango.

Lala bought a yogurt plant in Omaha in 2007. In 2009, it purchased Dallas-based National Dairy Holdings, which controls the Borden brand and 18 regional dairies selling milk under the names Flav-ORich, Dairy Fresh, Velda Farms, Sinton’s, Cream O’ Weber, Goldenrod and others.

Grupo Bimbo, Latin America’s largest baked-goods company, has also expanded its U.S. operations. In 2009, Mexico City-based Bimbo bought the U.S. baked-goods operations of Weston Foods for $2.4 billion, taking over 22 industrial bakeries and 4,000 distribution routes. In all, the Mexican company has 35 bakeries in the USA turning out national brands such as Entenmann’s pastries, Boboli pizza crusts and Thomas’ English Muffins to regional brands such as Brownberry bread and Mrs. Baird’s snack cakes.

About 43% of Bimbo’s 2009 sales were in the USA. New investment in the USA by Mexican companies rose from $3.6 billion in 2005 to nearly $8 billion in 2008, according to the latest statistics from the U.S. Department of Commerce. Mexican companies employ about 59,000 people in the USA. The Mexican investment in the USA is good news for both countries, says Lorraine Eden, a professor of management at Texas A&M University. The USA benefits with jobs and tax income, while the stream of foreign profits strengthens Mexico’s economy.

Mexican billionaire ahas expanded his empire into the USA. In March, Forbes magazine ranked him the world’s richest person, beating out Americans Bill Gates and Warren Buffett with a net worth of $53.5 billion.

In 2008, Slim bought a 6.9% share in The New York Times Co., making him the largest shareholder outside the Ochs-Sulzberger family. He increased his stake in the Saks Fifth Avenue department stores from 10.9% to 18%.

Recently Slim entered the Manhattan real estate market, buying an office building on Fifth Avenue for $140 million. n CorD 73 / July - August 2010 39

FACES & PLACES | HE Mary Warlick, U.S. Ambassador to Serbia, was the guest of honour in the VIP area of the Sport Café, when USA played England on 12th June. She is seen with Mark Harrison from Harrisons Solicitors who sponsored the evening. The respective football teams duly obliged by playing a diplomatic and entertaining draw!

From left: Serbian Prime Minister Mirko Cvetković; Minister of Culture Nebojša Bradić; Deputy Prime Minister Božidar Djelić; and HE Armando Varricchio, Italian Ambassador to Serbia celebrate the National Day of Italy, on 2nd June at the Italian Embassy in Belgrade.

From left: Director General of NIS, Kirill Kravchenko, and Ambassador of the Russian Federation HE Alexander Konuzin at the opening of the photo exhibition titled “Russia. A New Look” held at Kalemegdan on 11th June.

Miroslav Mišković, President of Delta Holdings and Ružica Djindjić, wife of ex-Prime Minister of Serbia Zoran Djindjić, celebrating the 50 year anniversary of Hemofarm on 29th May at the Sava Centre

The Africa Day celebration at the Museum of African Art in Belgrade on 25th May was attended by the Serbian President Boris Tadić, as well as members of the diplomatic corps and religious communities, and many other guests.

40 CorD 73 / July -2010 August 2010

British Ambassador, HE Stephen Wordsworth hosted a reception to celebrate the Queen’s Birthday on June 17th at his residence in Dedinje. The reception was attended by numerous members of the social, political, business and diplomatic scene in Belgrade.

HE Inigo de Palacio España, the Ambassador of Spain to Serbia, speaks at the promotion of journalist Vladimir Stanković’s (second from right) book “Espana”, on 28th May at the Assembly of Belgrade.

Hugo A.M. van Veghel, President of the Belgian Association Serbian Business; HE Denis de Hauver, Ambassador of Belgium to Serbia; and Nenad Milenković, the Municipal President of New Belgrade after a working lunch organised by the National Alliance for Local Economic Development (NALED) to which they presented opportunities for improved cooperation between the government of Serbia and Belgium

HE Dusan Bataković, Ambassador of Serbia to France, received the Medal of Academic Palms in the rank of Officer from the French Ambassador to Serbia HE Jean-Francois Terral, on 28th May at the French Embassy / July 2010 41 CorD 73CorD / July -73 August

FACES & PLACES | Serbian Prime Minister Mirko Cvetković; German Ambassador to Belgrade HE Wolfram Maas; Ruzica Djindjić; and Serbian President Boris Tadić at the cocktail party organised to honour the seventh generation of participants in the German scholarship programme on 27th May, at the Villa of the National Bank of Serbia at Topčider.

Dragan Skalušević, IKEA CEO and Chairman of the Board of Governors of the Nordic Business Alliance; HE Mette Kjuel Nielsen, Ambassador of Denmark to Serbia; and Sladjana Božović, Director of the Nordic Business Alliance at the presentation of Nordic Business Alliances on 28th May.

Mark Harrison of Harrisons Solicitors and the British Ambassador to Serbia HE Stephen Wordsworth, at the inaugural Serbian City Club event in Belgrade, held at the offices of Harrisons Solicitors on 27th May. 42 CorD 73 / July -2010 August 2010

Boris Spremo, a Canadian photographer of Serbian origin and HE John Morrison, Canadian Ambassador to Serbia, at the opening of the exhibition of Spremo’s photos at the Politika Gallery on 3rd June.

Tomislav Nikolić, President of the Opposition Serbian Progressive Party and Boris Tadić, President of Serbia at the reception on the occasion of the National Day of Russia, on 10th June at the Russian Embassy

Dutch Ambassador HE Ron JPM van Dartel and the Ambassador of Bulgaria HE Georgi Dmitrov, at the reception to mark the celebration Bulgarian culture on 25th May in Belgrade.

CASILLERO DEL DIABLO

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t the club Dobrila, Casillero del Diablo was promoted as the most awarded wine in its category. All fans of Chilean wine had a chance to discover the famous legend of Casillero del Diablo wines and to taste their long-hidden flavour.

Dmitar Polovina, Vice President of the Slovenian Business Club (SPK); Jadranka Sturm Kocijan, Charge d’Affairs of the Slovenian Embassy in Belgrade; and Vladimir Kravčuk, President of the SPK, at the promotional event of the SPK in Belgrade

FREY WILLE

F

REY WILLE, the renowned Austrian jewellers who create artistic pieces made from precious enamel, presented their collection of jewellery at the Hotel Hyatt in Belgrade. The combination of the finest enamelling with 24-carat gold, white and yellow gold and displaying the highest artistic quality ensure Frey Wille a unique position in the field of luxury products worldwide.

On Saturday, 22nd May the British International School held its traditional Spring Charity Bazaar. Visitors enjoyed sampling and buying international foods, wines and handicrafts, as well as various games, and performances. The proceeds of the Bazaar went to the Pancevo ‘Kremen’ horse riding club which specialises in hippo-therapy for children with special needs.

/ July 2010 43 CorD 73CorD / July -73 August

CORPORATE |

SHIPYARD BEGEJ

Human Resource Strategy Driving Success

S

By Dunja ILIĆ

Management at the shipyard believes that one of the more important developments in society and specifically in the workplace is the encouragement of equal opportunity 44 CorD 73 / July -2010 August 2010

hipyard Begej is owned by the Dutch company Mercurius Shipping Group.

Begej produces 1000-ton and over chemical tankers and container ships.

It is challenging, physical work as all of their ships are custom made from steel plates. The plates are cut and then mounted into sections before being welded together piece by piece. The next stage involves the outfitting where the ships engines, piping systems and living areas are fixed to the steel structure to create a fully functioning, working vessel.

Heavy equipment abounds at the shipyard including 100 ton auto cranes, trucks, cutting machinery and welding apparatus. Working outside, it’s hot in summer and freezing in winter. However, what Begej constructs is multi-million euro working ships that generate serious revenues for their customers.

One of the strengths of the company is its ability to perform steel construction and outfitting at the one location. On most occasions, new orders are placed because a ship captain wins a new transportation contract. Begej’s ability to perform both construction functions means that captains get their ships delivered faster and begin earning revenues. It’s only in the last two years that Begej could perform both steel construction and outfitting.

EQUAL OPPORTUNITY Serbia is quite a traditional society where men tend to lead, particularly in the work environment. Two years ago there were very few women employed at the shipyard; today there are many more, particularly in the engineering sector. Management at the shipyard believes that one of the more important developments in society and specifically in the workplace is the encouragement of equal opportunity.

Business manager Peter Thompson comes from a liberal society where discrimination of

any kind - from age, to skin colour and gender - is considered a serious legal and moral issue. At Begej he has implemented a rigorous human resources program for recruiting team members. Peter works on the premise that ‘a balanced team makes for a better team’, and as a result they have achieved a good combination of experienced, young, male and female employees. The team mostly consists of males however many of their newer employees are women.

“Whilst on average men are certainly physically stronger than women and better at production works, on average women have a greater attention to detail, are easier to communicate with and bring a calming influence to meetings that otherwise can become aggressive” “When recruiting our new employees, we simply look to hire the best people we possibly can,” says Thompson. “We look for young ambitious people who display self discipline, an eagerness to learn and have strong grades from university. We know that building a great company starts with providing the right environment - one that encourages people to be open, to be able to make mistakes and to challenge traditional thinking.”

Thompson comments that initially he was met with some resistance when employing women at the shipyard. “Some people were of the opinion that women would not be respected by the other workers, but their success has

been truly remarkable,” he says.

Some of the women employed at Shipyard Begej include: Ivana Marković – Educated in electrical engineering at Belgrade University, at 26 Ivana leads the electrical team responsible for the outfitting of Shipyard Begej’s ships. She manages a team of six electricians. “The most important element for me was the chance Begej gave me to use my education on site. One’s ability to execute the job is first and foremost and I am happy to work with colleagues who share the same view,” Ivana says.

Dragana Andjelković – Educated in industrial engineering at Novi Sad University, Dragana 27 is responsible for production processes development and investment projects for implementation of the machinery. Working with the entire production department, her job varies from the monitoring of ship launching equipment repair, working with equipment vendors, documenting new investments to project managing the installation of new cranes. “I love my job,” Dragana says, “being a female engineer brings another angle to the business. It’s a great opportunity to be part of the Begej team.” She adds with a smile, “On one occasion, I offered to bake a cake for the workers who helped to complete the installation of a new workshop. Now that’s something a man would never come up with.”

Nataša Govedarica Damljanović– Educated in architecture and interior design at Mcgill University in Canada, Nataša 29, is responsible for the interior design and full outfitting of the living areas of the ships. Day-to-day, Nataša works with the ships captains ensuring clients wishes are turned into vessels of personalized style, with furniture manufacturers ensuring the best quality of product and installation. During construction, she works daily with the shipyard’s experienced carpentry team on technical solutions. Nataša comments, “My work in design is creative but founded on fundamental engineering and construction principals and the shipyards carpentry team. Perhaps, as a woman I needed to work harder to gain respect but once I demonstrated abilities through actions, I felt fully accepted and overall a welcomed addition making a stronger team.”

Dragana Bojat – Educated in mechanical engineering at Zrenjanin University, Dragana 35 works in the ship design department. “It feels great to be part of a team where accu-

rate work, attention to detail and good concentration are respected. If someone makes a mistake, it makes no difference whether it as a man or it’s me. They are just not acceptable no matter which gender you are. Working at the design bureau means tight deadlines, fre-

lent female applicants. At first, I was surprised because women working in construction are not so common in the West. Whilst on average men are certainly physically stronger than women and better at production works, on average women have a greater attention to de-

“The strategies applied between average performing companies and those that are successful are quite small but the results are remarkably different.

The great companies are the ones that are committed to a long term view for their employees and continue to challenge their boundaries.” quent changes and as a woman I think I am coping with it in a much calmer way then my male colleagues,” she says.

THE DRIVE TOWARDS COMPETITIVE ADVANTAGE Begej strives to be a leading proponent of equal opportunity. The company encourages its people to voice their opinions, be open in communication and to progress their careers.

“We work hard on the premise of aligning the objectives of our employees with those of the company. This is something much easier said than done but our commitment is to this,” comments Thompson.

“One of the most interesting aspects about Serbia is that there are a lot of young women who study engineering and enjoy working in the field. When advertising for engineering roles I was impressed by the number of excel-

tail, are easier to communicate with and bring a calming influence to meetings that otherwise can become aggressive.”

Being a leading employer of choice is central to Begej Shipyards strategy, Thompson claims that hiring, training and taking care of the right people is not something that has a beginning and end point. Human resource management is a strategy and it’s a key component in Begej’s program to establish a superior competitive advantage.

Thompson finishes by saying that “The strategies applied between average performing companies and those that are successful are quite small but the results are remarkably different. The great companies are the ones that are committed to a long term view for their employees and continue to challenge their boundaries.”  / July 2010 45 CorD 73CorD / July -73 August

REGION |

Bosnia and Herzegovina

REFORMS - THE KEY TO JOINING EUROPE

The key message that came from the summit in Sarajevo is that the countries of the region must adjust their legislation in line with European legislation and that they are solely responsible for the speed of the integration progress

Miguel Angel Moratinos, Minister of Foreign Affairs of Spain and Catherine Ashton, High Representative of the Union for Foreign Affairs and Security Policy

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By Vojislava VIGNJEVIĆ lthough labelled as historic the ‘EU-Western Balkans’ conference, held on June 2nd in Sarajevo, failed to live up to expectations. Some thought the summit would speed up the integration process of the region to the EU. This did not happen. However Spain, as a presiding country of the EU and supported by Italy and the administration from Brussels, wants all member-countries of the Union to support the future of the region in a united Europe.

The announcement ratified at the summit also emphasised the fact that the process of enlargement to the Western Balkans would not be stopped, despite the crisis that has shaken the EU. The principal message sent to the countries of the region from the summit is that it will be necessary for them to fulfil their obligations and to cooperate. The fact that the new ascension dates were not emphasised, and that the demand from more than 400 nongovernmental organisations of the region that all countries should receive candidate status 46 CorD 73 / July -2010 August 2010

by 2011 received no reply, showed however that the EU is not ready to commit itself towards the Balkans with any great strength. It is no secret that EU members are divided over further enlargement. Germany, Great Britain, the Netherlands, Belgium and even France do not look favourably on enlargement to the Western Balkans – only Croatia is considered acceptable to them.

The announcement ratified at the summit also emphasised the fact that the process of enlargement to the Western Balkans would not be stopped, despite the crisis that has shaken the EU This is why the Serbian allies of Italy, Greece, Spain, Slovakia and the European Commission have strengthened their appeals for the continuation of enlargement. This strengthened appeal occurred in Sarajevo and this was the most important highlight of the summit. The outcome of the summit - where about fifty delegations from the EU, EUmember countries, countries of the region, the USA, Russia, Turkey and international institutions were present - was that after Sarajevo it would be impossible to make further delays in making decisions about the Western Balkans’ joining. This is regardless of whether the ratification of the Stabilization and Association Agreement (SAA) is in question or forwarding candidacy applications, by claiming that there is no regional cooperation.

It was also emphasized at the summit that the Western Balkans faces big challenges regarding current laws, administrative and ju-

dicial reforms, the battle against corruption and organised crime. These issues are crucial for a functional democracy and economy, and are also the key issues for joining the European Union.Seven years after a similar summit held in Thessalonica, the Sarajevo summit confirmed the European perspective of the Western Balkans. This is viewpoint was summarised by the European Commissioner for Enlargement, Stefan Fule, who commented on the “bright picture of new momentum, success and the commitment of the EU to further enlargement.” The fact that this message was sent from the summit in Sarajevo empha-

Bulgaria

BELENE STILL WI STRATEGIC PART

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ulgaria continues to look for a strategic partner to join in the construction of the country’s second nuclear power plant in the town of Belene.

Bulgarian Minister of the Economy, Energy and Tourism, Trajco Trajkov, emphasised that they were looking for a quality investor who would be prepared to meet with the

Bulgarian President Georgi Parvanov announced a referendum regarding the construction of Belene power plant

sized that the Western Balkans region is a priority in the Union’s policy. Fule commented the EU was worried about the crisis in the Euro-zone. Accordingly he emphasized the necessity of intensifying dialogue between the countries of the region, especially in the situation of economic issues and regional commercial and economic connections.

The countries of the region must speed up these processes, and with better quality. This was perfectly encapsulated by Spanish Foreign Minister Miguel Angel Moratinos in Sarajevo, when he emphasised “What the EU wants are reforms. The countries of the Western Balkans must adjust their legislation to European legislation, and only they are responsible for speed of the integration progress.”

The fact that the Foreign Ministers of Serbia and Kosovo, Vuk Jeremic and Skender Hyseni respectively, sat at the same table at the Sarajevo summit is certainly not without significance. It should be noted though that they sat without their signatures of office and state, which was also the rule for all other participants, and this was the main condition of attendance that Serbia requested of the organisers. From almost the very beginning of the summit everyone searched for a way to convince Serbia to take part in the conference, which also included a representative 

THOUT NER risks and gains of the project. The director of the Bulgarian electric energy system operator, Ivan Yotov, warned that there was a possibility that Bulgaria would be forced import electric energy after 2015, if the Belene nuclear power plant, with its huge energy capacity, was not built and operational. Bulgarian President Georgi Parvanov announced a referendum regarding the construction of Belene power plant. The Russian Trade Representative in Bulgaria, Alexander Tomilov, was deposed after the Bulgarian Prime Minister Borisov made the statement that Bulgaria would give up on gas pipelines and cancel the construction of the nuclear power plant.

Croatia

A HOUSE AT SEA FOR A GOOD PRICE The prices of real estate in Zagreb have dropped by 3.2 percent, and even on the Adriatic have dropped by almost 7.5 percent. A further drop is expected over summer Business.hr

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n the important market of Zagreb, real estate prices for May stayed the same as they were in April, but dropped by 3.2 percent for the year, the Real Estate Centre has announced.

Prices on the Adriatic in May compared with April were down 0.7 percent, while overall the annual level dropped by 7.5 percent.

The average price of real estate in Croatia in May 2010 decreased by 0.4 percent compared to the previous month, and prices were five percent lower than May 2009.

The average price of apartments in Zagreb in May 2010 was €1865 per square meter, which was 3.3 percent lower than in May 2009.

The average price by square metre for cottages and apartments at the Croatian seaside in May was €1946, which was almost the same price as in April (-0.2%). The price by square metre for houses at the seaside was €1584, which was 1.2 percent lower than the previous month and 2.4 percent lower than May 2009. The average price of apartments at the seaside was 1.2 percent lower than in April, and was €2030 per square metre.

The Real Estate Centre took into account more than 355.000 property sale prices to calculate this data.

Domenico Devescovi, director of the Real Estate Centre, says the volume of transactions in the real estate market has fallen by more than 50 percent compared to 2008, and that the situation in the market is similar to that of the first quarter of last year.

He is assessing that the credit activities and the trend of lowering prices will probably continue.

“Most people with a surplus of funds either put it in a bank or invest in real estate, and the interest they get from the banks is at the moment is safer and provides a much better opportunity to make money and maintain liquidity than buying a flat, for which they can expect a decrease in prices and a potentially difficult sale in the short term,” Devescovi says.

He emphasises that the fluctuations of key macro-economic indicators show the econom-

Bank interest is a safer investment than buying a flat ic situation in the country is getting worse. In this situation, buying a flat becomes an illiquid investment that citizens will avoid.

Over the summer, Devescovi expects a further decrease of prices for residential real estate and the continued diversification of real estate prices, depending on the location and condition of the property. He says the crisis in the real estate market has mostly favoured buyers who do not buy real estate of questionable quality at inferior locations and at unrealistic prices.

“Customers today are educated. They understand that location and quality of real estate are key factors in the evaluation of investments that will pay off over the next 20 or more years,” he says.  / July 2010 47 CorD 73CorD / July -73 August

REGION |

Montenegro

THE WANDERING FATE OF THE ICON OF PHILERMOSA Adventures have followed the Icon of Philermosa since the day of its creation. Montenegrin authorities now plan to move the icon, a most significant Christian relic, to outside the city, but two Orthodox churches are opposing this

T

By Ilija DESPOTOVIC he magnificent and miraculous icon of Our Lady of Philerme, originally from the Greek island of Rhodes, once again can find no peace. Several years ago she was finally placed in an especially arranged display area in Cetinje, but now it seems she will have to move again. Not far admittedly, but it seems that this icon is haunted by the fate of constant wandering. The icon known as ‘The Blue Icon’ due to the blue diamonds decorating it, is currently located in the Blue Chapel, a secure vault in which only the greatest treasures are housed, in the representative state building of Vladin Dom, in Cetinje. It was relocated here in 2002. The humidity and temperature of the Blue Chapel is maintained by computers, and the icon can be viewed only through bullet-proof glass. In addition to electronic security, the icon is also guarded by the Montenegrin Special Police Forces.

In May, the Cetinje municipality assembly enacted a declaration to move the Blue Icon to a cave outside the city, which would 48 CorD 73 / July -2010 August 2010

of course, be especially prepared for that purpose. The decision was reached with the consent of state leadership, as well as the Knights of Malta who are the protectors of the Blue Icon. The decision on the new home of Philermosa, it was emphasised, has no political or religious motives, but should aid the development of the city. It is expected that the Blue Icon will become a tourist attraction. It is hoped its permanent location in the cave will protect, or maybe even strengthen the religious and cultic significance of this most important Christian relic. The cave is situated between the Montenegrin National Museum and Biljarda, the residence of the Montenegrin bishop and ruler Petar II Petrovic Njegos. Two Orthodox churches however, the Metropolitanate of Montenegro and the Littoral as a section of

The icon known as ‘The Blue Icon’ due to the blue diamonds decorating it, is currently located in the Blue Chapel, a secure vault in which only the greatest treasures are housed, in the representative state building of Vladin Dom, in Cetinje Serbian Orthodox Church (SPC), as well as the Montenegrin Orthodox Church (CPC), are against moving the Blue Icon, Both churches have different motives. The Serbian Orthodox Church believes the Blue Icon is the property of the church and that the state ‘took away’ the relic, and refers to every action of the state regarding the icon as

‘non-Christian’ conduct. On the other hand the Montenegrin Orthodox Church feels that the adaptation of the cave near the monastery in Cetinje as a shrine, even with Blue Icon inside, is nothing more than attempt to ‘humiliate’ the monastery which Montenegrins regard as of utmost sanctity. CPC representative, Stevo Vucinic, commented to CorD that Cetinje Monastery was of the greatest sanctity for Montenegrins and that there would be no need, nor would it would be advisable, to place another relic near it. Vucinic is also afraid that Serbian Orthodox Church could also possibly become the owner of the icon after it is transferred to the cave.

The state and the SPC disputed the ownership of the icon when it was brought back ‘into the light of day’ and was put on display at the Montenegrin National Museum, after being lost in the museum depot for a long time.

A true drama involving the icon occurred in 1994, when the police were almost ready to snatch the icon from the National Museum in order to hand it over to the SPC. However employees from the museum and other cultural workers from Cetinje decisively defended the Blue Icon and it remained the property of the state.Adventure has followed the Blue Icon since the day it was created. According to legend, the icon was created by the evangelist Saint Luke in the ninth century A.D. A monk named Philermos brought the icon to Rhodes in the 13th century, and placed it on a hill which was named after him, and where Christian shrines had been built since the fifth century. On this hill the icon was given its name - Our Lady of Philerme. The Turks conquered Rhodes in 1523. The Blue Icon of course had to leave

before the Ottomans arrived. It was taken to Malta where it was guarded to the end of the 18th century, when French troops, under Napoleon’s command, conquered the island in the Mediterranean.

From this time the Military Order of Malta, who also settled there, became the Blue Icon’s protector. According to legend, Grand Master von Hompesch took the icon from Malta to Trieste, together with right hand of St John the Baptist and a piece of the holy cross on which Jesus Christ was crucified. An interesting fact to note is that these

two relics are also held at Cetinje today, in the Cetinje Monastery.

The Philermosa Icon continued its voyage and accidentally showed up at the Court of the Russian Romanov dynasty. The icon was placed in the Winter Palace in St Petersburg, however it was exiled after the October Revolution and was taken to Copenhagen.

Through family ties, in 1928 the Blue Icon was given to Jelena Karadjordjevic, the daughter of King Petar I and Queen Zorka of Montenegro, and the granddaughter of the Montenegrin King Nikola. World War Two

started, Belgrade was bombarded and the Karadjordjevic family left the country and took with them their treasures. The Blue Icon was among those treasures. The relic then found sanctuary in the Ostrog Monastery, where it stayed until the end of the war.

The post-war government took the icon from the monastery and kept it in a police depot. The Commission for Religious Issues of the Montenegrin Executive Committee (government) gave the icon to the National Museum in Cetinje in 1978, where it remained until it was displayed in the Blue Chapel. 

Albania

BARBS OVER FAILED TALKS Albania’s political leaders blamed each other on 17th June for the failure of EU-sponsored talks aimed at resolving the country’s political crisis

S

peaking during the parliamentary session Prime Minister Sali Berisha accused the opposition Socialist Party of having a covert plan to boycott the upcoming 2011 local elections, rather than seek transparency over parliamentary elections held last June.

“Since the request was filed that was against the verdicts of the court I have had the conviction that it has the goal to boycott the local elections and do anything to stop Albania’s integration into the EU,” said Berisha.

Reacting to Berisha’s accusations, the

head of the Socialist parliamentary group, Gramoz Ruci, said that the talks to resolve the crisis had failed because the ruling majority had not offered its consensus for a compromise.

Top members of the European Parliament, who sponsored the talks warned that the country risks stalling its EU bid if it does not find a solution.

Top members of the European Parliament, who sponsored the talks warned that the country risks stalling its EU bid if it does not find a solution “We sincerely regret that the Albanian Government and the opposition could not overcome their differences and have therefore not yet been able to take further necessary steps towards meeting the country’s European ambition,” MEPs Joseph Daul

and Martin Schulz said in a joint statement.

Daul is the president of the centre-right EPP grouping, and Schulz is the president of the centre-left S&D grouping in the European Parliament.

The two men, on behalf of their political groups, initiated talks between Berisha and opposition leader Edi Rama to help the country find a solution to the political dispute between the two main parties following the Albanian general elections on June 28, 2009.

Berisha, who heads the ruling Democratic Party, and Socialist Party leader Rama have been locked in a standoff over the results of the June 28, 2009 parliamentary elections, which Berisha’s party narrowly won.

The Socialists blame alleged electoral fraud by the government for their loss and have sought a recount of election ballots.

The government has stubbornly refused the recount as unconstitutional, arguing that it is a decision for the courts to take.

Balkan Insight CorD 73CorD / July -73 August / July 2010 49

LIVING, WORKING …

‘QROOZING’ Begej Shipyard has entered into close cooperation with Qrooz for the complete production of their innovative house - and office boats. At present two boats are being completely built and outfitted at the Begej shipyard of Mercurius, in Serbia.

The unique design of Qrooz won the Dutch Design Awards in 2007. Arno Schuurs, the creator of the Qrooz-concept, lived onboard the first Qrooz ship with his family for a year. The Qrooz01 has since been sold and is currently based in Stockholm.

Qrooz offers uniquely designed luxury river yachts with excellent sailing characteristics. The ability to move freely along European rivers, canals and coastlines makes it a comfortable and spacious home, and offers adventurous owners the option of enjoying vibrant city scenes or quiet mornings surrounded by nature. The interior design, layout and outfitting according to the individu-

al owner’s wishes results in a unique statement of personal style every time. Qrooz can be a luxurious home or a unique office… or both.

THE UNIQUE DESIGN OF QROOZ WON THE DUTCH DESIGN AWARD IN 2007 Owners of Qrooz yachts are adventurers; those who want to enjoy the freedom of living on the water, the freedom of taking their own house or possibly their unique office with them, wherever they go. Qrooz offers all the comforts of a spacious house with large windows, an open layout and an inside living area of approximately 105 square meters. Qrooz is also a luxury yacht with excellent navigational capacities.

Begej and Mercurius have significant experience in the construction of inland vessels of superior quality including tank vessels with stainless steel cargo tanks and several innovative vessels. Customers have the option of beginning their adventure in Serbia with the magnificent trip from Novi Sad along the Danube through Budapest, Vienna and Cologne to the Netherlands.

50 CorD 73 / July - August 2010

THIRTY COMPANIES INTERESTED IN SECTION OF CORRIDOR Thirty companies from Serbia and abroad have bought the documentation for the construction of two sections on the motorway from Pirot to Dimitrovgrad, on Corridor 10 through Serbia. In addition to several companies from Serbia, companies from Portugal, Austria, Italy, THE DEADLINE FOR Greece, Slovenia, Croatia, Bulgaria and Macedonia al- SUBMITTING OFFERS IS JULY 20 so bought the documentation. “There has been great interest. The deadline for submitting offers is July 20 and we hope that works on this part of Corridor 10 will start in early September,” the chairman of the Corridor 10 executive board Nenad Ivanisevic said.

The timeline for construction of this section of Corridor 10, which consists of six kilometres of motorway from Pirot to Sukovo and 8.3 kilometres from Sukovo to Dimitrovgrad, including one tunnel, is 18 months. The construction works will be financed by a loan from the World Bank, the European Bank for Reconstruction and Development and the European Investment Bank.

PHARMASWISS TEN YEARS IN SERBIA PharmaSwiss, the largest third-party pharma sales and marketing outsourcing company in the Central and Eastern Europe region, is currently in the process of developing a major manufacturing facility in Zemun, a greenfield investment worth approximately 20 million euros. The new facility is expected to open in May 2012. PharmaSwiss currently employs close to 300 people in Serbia. The announcement was made on the occasion of the 10th anniversary of the PharmaSwiss’ presence in the Serbian market. Interesting timing, as THE GREENFIELD Enterprise Investors (who have recently INVESTMENT IN invested €35 million into PharmaSwiss ZEMUN IS WORTH for a 12.7% share of the company), is APPROXIMATELY 20 celebrating its 20th anniversary this year. At a special meeting organised MILLION EUROS with the press to discuss successes to date and future plans, were PharmaSwiss founder and CEO Petr Nemec, production manager Goran Stojanovic, and the managing partner of Enterprise Investors, Robert Manz.

EXECUTIVE GROUP PR AGENCY OF THE YEAR Leading strategic advisory firm Executive Group won its third PR Agency of the Year Award presented by the Serbian Society for Public Relations. In addition to scooping the prestigious PR Agency of 2010 Award, EG took out four other awards in the contest.

Eight projects that agency worked on with its clients made it into the finals.

Vip Beach Masters - the Serbian beach volley championship, which Executive Group implemented with Vip Mobile, and the introduction of the EuroMOL D5 brand in the Serbian market, carried out with MOL Group, shared the award in the integrated campaign category. In the no budget campaign category, EG and charity Foundation Ana & Vlade Divac won the award for a refugee assistance project, while volunteering project Our Belgrade, implemented in cooperation with Business Leaders Forum and SMart kolektiv, brought the award in the corporate social responsibility category.

“Hard work, knowledge and commitment as well as client confidence and trust have brought us the PR agency of the year award once again.” EG Managing Director Darko Matijašević said at the awards ceremony.

“This recognition is a huge honour, but also a motive for us to continue to set standards in public relations in order to meet the needs of our clients successfully.”

Executive Group provides a full range of

IN ADDITION TO SCOOPING THE PRESTIGIOUS PR AGENCY OF 2010 AWARD, EG TOOK OUT FOUR OTHER AWARDS IN THE CONTEST. EIGHT PROJECTS THAT AGENCY WORKED ON WITH ITS CLIENTS MADE IT INTO THE FINALS

advisory services in corporate communications, government relations, and strategic marketing and branding. It publishes Executive Newsletter, the leading business daily news coverage in English. Established in 2002, Executive Group now has 35 employees and over 20 clients, most of which are among the biggest international companies operating in Serbia.

A NOD TO ALEKSANDROVIĆ

DECANTER CONFIRMS QUALITY The Aleksandrovic Winery was awarded at the world’s most prestigious evaluation of wine in England.

At the very influential Decanter World Wine Awards, the Aleksandrovic Wine Cellar won four awards in a competition that included 10,983 wines. Their ‘Trijumf’ white wine 2008 vintage was awarded with a silver medal, and their 2007 ‘Trijumf Barrique’ was awarded with a bronze medal. Their red wines, ‘Regent’ and ‘Vizija’, received recommendations.

At the 27th International Wine and Spirit Competition that included 46 countries, Aleksandrovic Wines won three bronze medals for their 2007 ‘Trijumf Barrique’, their 2006 ‘Vizija’ and their 2007 ‘Regent’.

At the prestigious International Wine Challenge, Aleksandrovic received recommendations for their 2008 ‘Harizma’ and 2007 ‘Regent’.

An exclusive restaurant with an eloquent atmosphere and sophisticated essence.

Elaborate International and mediterannian culinary specialties along with a great wine selection make Cavaliere a true gastronomic Diamond. A hidden jewel and an ideal choice in the center of Belgrade, especially in the hot summer months.

RESTORAN CAVALIERE Djure Danicica 4, 11000 Beograd, Srbija Tel:011.3341.347 www.cavaliere.rs restoran@cavaliere.rs

CorD 73 / July - August 2010 51

PIRAEUS BANK

SERBIAN SPRING CLEANING

Piraeus Bank’s top management and employees joined with representatives from the government, the Minister of the Environment and Spatial Planning Oliver Dulić, Minister without Portfolio Dr Sulejman Ugljanin, Belgrade Mayor Dragan Djilas and many other political, cultural and public figures to take part in ‘Serbian Spring Cleaning’ on June 5th, World Environmental Day, at several locations. Piraeus Bank supported this drive also through the donation of 38,000 bags PIRAEUS BANK to underdeveloped municipalities under JOINED THE ‘LET’S competence of the Office for Sustainable CLEAN UP SERBIA’ Development of Underdeveloped Areas that were distributed through ‘Let’s DRIVE LAST YEAR Clean Up Serbia’ channels. The remainTHROUGH ITS ing 12,000 bags were made available through Piraeus Bank branch networks DONATION OF CONTAINERS FOR to employees of the bank and to all interested citizens who wanted to join this PAPER COLLECTION drive. “Piraeus Bank joined the ‘Let’s Clean Up Serbia’ drive last year through its donation of containers for paper collection. Moreover, the bank continually educates its employees and Serbian citizens through participation in, and organisation of public lectures on this topic, as we believe that we should take care of the ecology every day and not only on World Environmental Day. Piraeus Bank will continue to support such well organised drives, as this one of today” – concluded Miroslava Nešić-Bikić, Piraeus Bank’s Marketing and PR Manager.

NIS STOCKS AT STOCK EXCHANGE The assembly of shareholders of the Petroleum Industry of Serbia (NIS) reached a decision on the transformation of this company from an enclosed to open shareholder association.

NIS’ transformation and the company’s entrance on the stock market were in accordance with the contract under which Gazprom Neft bought a 51 percent share of the Serbian company.

After selling its majority of stocks to Gazprom Neft, the Serbian government had a 49 percent share in NIS. After the citizens of Serbia take over around 24 million shares, i.e. 15 percent of the total number of shares, and former and current employees take an additional 4.34 percent, the Serbian government will own 29.7 percent of the shares.

Gazprom Neft took over the majority shares in NIS in 2009, after paying 400 million euro and took on the obligation of investing around 550 million euro in the modernisation of production and business.

THE BEST PARTNER: NAPRED WINS PRESTIGIOUS ACKNOWLEDGEMENT

Construction company Napred won the ‘Best Partner 2010’ award, after being selected by the secret voting of this year’s laureates at the ceremonial dinner at the Continental Hotel.

The ‘Regional Business Partner 2010’ award was given to Bulgaria’s Prista Oil, Greece’s Veropoulos Bros, Slovenia’s NLB Group, Montenegro’s Railway Traffic, Croatia’s Vindija Business System, Bosnia’s Aleksandrija Company, Hungary’s Richter Gedeon Group Company, Macedonia’s Jadran Gottino Foods, Cyprus’ Iron Trust and Romania’s DomingRomstal Group, in the presence of the ambas52 CorD 73 / July - August 2010

sadors from these regions, as well as the general managers of the all awarded companies.

The ‘Business Partner Plus 2010’ award was given to Telekom Srbija for its high level of social responsibility and care of the local community; The ‘Business Partner Extra 2010’ award was given to the World Bank

THE AWARDS HAVE A REGIONAL CHARACTER AND ARE OPEN TO COMPANIES IN THE REGION OF SOUTHEASTERN EUROPE for its special contribution to the stabilisation of the business climate and development of business cooperation in the region; the Petroleum Industry of Serbia received

the ‘Business Partner Special 2010’ award for the successful introduction and implementation of international standards in corporate management; the ‘Eco-Business Partner 2010’ award was given to Srbijasume for its extreme ecological awareness and concern for environmental protection; and the ‘EduBusiness Partner 2010’ award was given to the Faculty of Economy in Subotica for its tremendous contribution to education and the specialisation of knowledge and skills of managers in the region.

The Mass Media International Company introduced these awards 16 years ago. The awards have a regional character and are open to companies in the region of South-Eastern Europe who achieved the best results in the previous year.

| CORPORATE

BUSINESSMEN ADVISE THE STATE

MEASURES FOR EXITING THE CRISIS Three associations have sent suggestions of strategic and defensive tactical measures for overcoming the effects of the crisis to the President, Prime Minister and President of the Council of the National Bank

T

he heads of the ‘Privrednik’ business club, the Association of Corporative Directors and the Association of Economists of Serbia have offered the state their suggestions for overcoming the negative effects of the economic crisis, noted Belgrade’s Politika on 17th June.

The suggestions involve two types of measures: offensive strategic and defensive tactical measures. Businessmen sent their suggestions to Boris Tadić, President of Serbia, to Mirko Cvetković, the Serbian Prime Minister, and Dejan Šoškić, President of the Council of the National Bank of Serbia (NBS) on the 9th of June.

In the letter Politika had the opportunity to see, it is stated that ‘in its present struggle with the crisis the government has managed to make a breakthrough, but the rate of growth of gross national product of 1.5% for 2010 is not enough to make up for the decrease of 4% of gross national product in 2009’.

Branislav Grujić, President of Serbian Business Club ‘Privrednik’, Toplica Spasojević, President of Serbian Association of Corporate Directors and Dragan Đuričin, President of the Association of Economists of Serbia, state in the letter that ‘the question of when Serbia will set up an economic model which will make up for the loss of a third of GNP and three fifths of industrial production during the transitional depression still remains’.

The authors of the letter wonder ‘when we will go down the road of sustainable development and reaching the EU thanks to the propulsive economic scenery and reindustrialisation’.

Their suggestions involve:

From left: Branislav Grujić, Toplica Spasojević, Dragan Đuričin OFFENSIVE STRATEGIC MEASURES A- Development of a new economic model with pro-investment logistics - New institutional infrastructure, completely compatible with the regulative frame and institutions of the EU system Energising investments should flow on three parallel lines: 1. Infrastructural investments 2. Network technology (energetics and telecommunications) investments 3. Food industry and selective parts of agriculture investments B-A new monetary model At the heart of the new Serbian economy should be a monetary model whose task would be to fulfil three goals: a) Stability of prices, b) Stability of the exchange rate, c) A decrease of the unemployment rate.

The functioning of the new monetary model demands better coordination between the NBS and the government, especially in the area of taxation politics.

DEFENSIVE TACTICAL MEASURES 1. Establishing a centre for the recruitment and training of experts in the area of project man-

agement 2. Creating a programme for the attraction of international companies to locate their headquarters in Serbian cities (e.g. Belgrade and Novi Sad) 3. An end to the ‘regulation guillotine’, application of the measures of the Council for Competitiveness and application of the proposals of the National Alliance for Local Economic Development (NALED) related to energising local economic development.

The heads of the Serbian Business Club ‘Privrednik’, the Association of Corporate Directors and the Association of Economists of Serbia consider the letter their social obligation, regardless of whom in the official or public sphere responds to these suggestions.

“One thing is for certain – in order to exit the crisis, aside from the expert elite in state administration and the public sector, as well as the business elite in the economy and science, we also need the political elite who understand the trends, have a clear vision of the way out of the crisis and who will use all available potentials for that cause, working as a catalyst for useful and sustainable changes,” observes an excerpt from the letter addressed to Tadić, Cvetković and Šoškić.

CorD 73 / July - August 2010 53

THE MERCEDESBENZ RCLASS

SPACIOUS, PRESTIGIOUS, COMFORTABLE After a world premiere at the New York International Auto Show in March this year and the positive feedback received there, Mercedes-Benz is convinced that it is on the right track with the new-generation R-Class.

A completely redesigned front section in particular enhances the overall look of this model, with styling cues taken from Mercedes-Benz saloon and SUV models. The interior of the “twenty-ten” model year R-Class complements this fresh exterior, combining as it does the good use of space found in the latest MPV models with the comfort, high-class appeal and prestige of classic Mercedes-Benz luxury-class saloons.

In addition to the modern petrol variants adopted from the preceding model, with their customary effortless power delivery and high drive comfort, the appeal of the R-Class is now also enhanced by a range of optimised diesel engines. Despite delivering the same output and improved performance compared with the preceding model, the new R 300 CDI BlueEFFICIENCY consumes around 7 percent less fuel, at 7.6 l per 100 km. The new R 350 CDI 4MATIC com-

CARNEX BEST STAND DESIGN The prize for the design of the best stand at the 77th International Agriculture Fair in Novi Sad was given to Carnex, who also received a trophy for 30 years of continuous attendance at the fair. Jury chairman, Professor Dr. Dragoljub Novaković, said that the style and type of the presentation displayed the tradition and quality of the Carnex company.

SPICE FACTORY OPENED Deputy Prime Minister Bozidar Djelic and Israeli Ambassador Arthur Koll opened the facilities of the Israeli Green Only company for the production of spices in Svilajnac. The facilities are equipped with irrigation systems, greenhouses and other equipment worth 850,000 euro and are specifically for the production culinary herb and spices. Considering that production will be mostly manual, it is expected that Green Only will employ a large number of workers, and spread its capacity to around 100 hectares.

GOLDEN LADY IN LOZNICA THE NEW R 350 CDI 4MATIC COMBINES THE HIGH PERFORMANCE OF A V8 MODEL WITH THE LOW FUEL CONSUMPTION OF AN ECONOMICAL V6 VARIANT bines the high performance of a V8 model with the low fuel consumption of an economical V6 variant.

It is happy with just 8.5 litres of diesel per one hundred kilometres, thereby undercutting its predecessor by 0.8 litres – yet is able to offer significantly enhanced performance. While previously the maximum performance topped out at 165 kW (224 hp), the V6 diesel engine now boasts 195 kW (265 hp) as well as 620 Newton metres of torque. Acceleration from 0 to 100 km/h takes 7.6 seconds, while the top speed is 235 km/h.

54 CorD 73 / July - August 2010

The Italian Golden Lady textile company will construct its third factory in Serbia in Loznica, after constructing a factory in Valjevo, and another in Loznica. The company employs about 2,000 workers in these two factories and has invested more than 100 million euros. Deputy Prime Minister Mladjan Dinkic says that the Italian company is one of the largest investors in Serbia and added that the combination of employment and the latest technology implemented in production made the company successful. The total annual production of Golden Lady factory is more than 400 million pairs of stockings, which are produced in 15 factories, nine of which are in Italy, four in the USA and two in Serbia.

THAT COMPANY EMPLOYED ABOUT 2.000 WORKERS IN THESE TWO FACTORIES AND INVESTED MORE THAN 100 MILLION EUR

YURA BUILDS FACTORY IN NIS The South Korean Yura Company, which recently purchased the Zastava Elektro Company of Raca, near Kragujevac, will start the construction of another factory in Serbia. CEO Lukas Nam said that Yura would start construction of the factory for the production of car installations in Nis, in the second half of next year. The factory will cover the area of 20,000 square meters. If the works go according to plan, the factory will start production in the first half of 2012.

U2’S CANCELLED TOUR TO COST THEM MILLIONS U2 are reportedly facing losses of up to £100 million ($148 million) as a result of the cancellation of their world tour this year, brought about

by Bono needing to undergo emergency back surgery. The effects on their bank balance look set to be severe. A band insider is quoted as saying, “Bono and the band are covered by insurance but the costs of overheads and missed revenue could easily reach £100 million by the time he’s fit enough to tour again.”

(Source: www.spinner.com)

GALILEO’S LOST TOOTH, FINGERS GO ON SHOW IN FLORENCE

sCientists Use Calvin klein Cologne to lUre JagUars Biologists tracking jaguars in the Guatemalan jungle might smell nice but it’s all in the name of science, with researchers finding the Calvin Klein cologne Obsession for Men attracts the big cats. The cologne is known for its complex scent, and researches at the Bronx Zoo in New York have found that it acts as a jaguar-magnet. There are plans to expand the use of the cologne in programs in Venezuela, Nicaragua, Bolivia, Peru and Ecuador in coming years.

(Source: Reuters)

A tooth, thumb and finger cut from the body of renowned Italian scientist Galileo, who died in 1642, have gone on display in Florence after an art collector found them by chance last year. The parts were cut from Galileo’s corpse by scientists and historians wanting souvenirs of his body, during a burial ceremony 95 years after his death. The remains, along with two telescopes, a compass and a wealth of other instruments designed

by Galileo, are the main attraction at the refurbished and renamed Galileo Museum, which has recently reopened after two years of renovation work.

(Source: Reuters)

PUPPY-HURLING STUDENT ESCAPES ON BULLDOZER A German student created a major traffic jam in Bavaria after making a rude gesture at a group of Hell’s Angels motorcycle gang members, hurling a puppy at them and then escaping on a stolen bulldozer. Police said that after making his getaway from the Hell’s Angels club, the 26-year-old dumped the bulldozer, causing a five-kilometre traffic jam. He then fled to his home nearby where he was apprehended by the police. “What motivated him to throw a puppy at the Hell’s Angels is currently unclear,” said a spokesman for local police. The puppy was now in safe hands, the spokesman added.

(Source: Reuters)

56 CorD 73 / July - August 2010

TURTLE FILMS ITSELF WITH LOST CAMERA

A sea turtle has become a YouTube sensation after it found a waterproof camera in the Caribbean, somehow activated the device and filmed itself. Back in May, US Coast Guard Paul Schultz found a digital camera in a waterproof case on a beach in Key West, Florida, and posted images he found on its memory chip on the internet in an attempt to find its owner. Somehow the turtle has come across the camera, has turned it on and recorded itself swimming. Mr Schultz eventually found the owner, a Dutch navy sailor who lost the camera when he was diving off the island of Aruba in November.

(Source: www.abc.net.au)

OUCH Chile’s defender Gary Medel is hit by the ball during the Group H first round 2010 World Cup football match against Honduras at Mbombela Stadium in Nelspruit, South Africa (Source: www.telegraph.co.uk)

FIFA FEVER Chinese residents rest on sofas that look like footballs, watching reruns of the World Cup matches, in a shopping mall in Beijing (Source: www.telegraph.co.uk)

HONG KONG MOURNS DEAD IN VIRTUAL GRAVEYARD Even Hong Kong’s dead cannot escape the internet after the government has opened a brand new virtual graveyard online. In Chinese culture, relatives are expected to visit the cemetery at least once a year to pay their respects to family members - but now, mourners can simply visit a website and set up a page for free.

Family and friends can make traditional offerings, as is the Chinese custom, by using emoticon symbols depicting fruit, flowers and candles - there are even emoticons for roast pigs, chickens and paper money - all popular grave-side offerings in Chinese tradition. The only catch is figuring out how to offer incense as downloadable smoke has yet to be invented.

(Source: AFP)

PUT KIDS TO SLEEP WITH CHAVEZ, MUMS TOLD

Venezuelan president Hugo Chavez is offering parents a cure for children who do not want to go to sleep: have them watch his televised speeches. In a television appearance on Thursday to praise the virtues of a portable computer his socialist government plans to introduce at public schools, Chavez said youngsters had stopped him in the street to tell him they saw him on television. “It seems that there are mothers who, instead of putting their kids to sleep with cartoons, put them to sleep with Chavez,” he said. The loquacious leader is well known for speeches that can last for hours. Every Sunday he hosts his ‘Hello President’ program, which starts at 11:00am and often lasts most of the day.

(Source: Reuters) CorD 73 / July - August 2010 57

ART Art

SEVENTY Seventy YEARS Years YOUNG Young

BRITISH COUNCIL ANNIVERSARY

This well respected UK international institution with a strong focus on educational opportunities and cultural relations, is celebrating a celebrates a significant significant birthday in birthday Serbia in Serbia

By Philomena PhilomenaO’BRIEN O’Brien

D

irector thethe British Council of Serbia, irectorofof British Council of Andrew Serbia, Glass, talks abouttalks the organisation’s achieveAndrew Glass, about the organisaments the last 70 over years,the how to tion’s over achievements lastthey 70 plan years, celebrate justto how a 70-year-old can how still bea how theyand plan celebrate and just so fresh and active 70-year-old can still be so fresh and active

Looking back what are the major achievements that the British Council made this rather impressivethat length  Looking backhas what areover the major achievements the of time Council in Serbia?

British has made over this rather impressive length The in fact that we’ve been here pretty much uninterrupted of time Serbia? for 70 years I think be classed as our biggest achieve The fact that we’vecould been here pretty much uninterrupted for 70 ment.

The British Serbia hasachievement. been with Serbia ityears I think could beCouncil classed asinour biggest The Britself throughinso many political changes, changes of ish Council Serbia hasdifferent been with Serbia itself through so many governments, regimes andchanges changes country structures; we different political changes, of in governments, regimes and were here throughstructures; most of the Second War, through changes in country we were hereWorld through most of the the NATO during Royalist Yugoslavia, Tito’s Second Worldbombings, War, through the NATO bombings, during Royalist Yugoslavia, the Federal Republic of Yugoslavia, and Yugoslavia, Tito’s Yugoslavia, the Federal Republic of Serbia Yugoslavia, Montenegro.

We’ve been through all of these changes, and Serbia and Montenegro.

We’ve been through all of these changes, have keptkept operating allallthat and have operating thattime. time. This is very significant, as for us, This it hasisalways been about our term relationship with Serbia very significant, as long for us, it has always been about - about building trust. In a very simplistic if you want to trust. build our long term relationship with Serbialight, - about building trusta and trusted, you stickifaround, through thick trust and thin.

In verybesimplistic light, you want to build and We be are a serious trusted, you partner stick – we mean business.

Andrew Glass Andrew Glass “We seethrough our jobthick not asand promotaround, thin. We are “Wethesee ourbut jobtonot as promoting and aing seriousUK, partner – promoting we mean business. the UK, but promotingbetween and encourencouraging the is Our otherrelations major achievement aging relations between the UK and about the level to which we’ve touched UK and Serbia, and to promote the Serbia, and tothat promote opportupeople’s lives at various stages of their opportunities exist.”the nities that exist.” career.

I was at a science event where 58 CorD 73 / July -2010 August 2010

theOur British was working withtheyoung scientists and otherCouncil major achievement is about level to which we’ve met a number professors who hadofdone science de-a touched people’soflives at various stages theirtheir career.

I was at grees masters various at British scienceorevent whereatthe British degrees Council was workingUniversities with young scientists the and British met a number of professors done through Council, and 30 orwho 40 had years ontheir we sciare ence working degrees orwith masters at various Universities through the still these people.British We’ve had people do their British Council, and 30 orus 40as years on we student are still working language tests through a young and thenwith 10 these people.

We’ve hadback people their language years later they come anddoconnect with ustests as athrough teachus as a youngin student and then years later they come and backthen and er involved a project with10the British Council, connect us that as a teacher involved in a project with the British 10 yearswith after they may be working at the Ministry of Council, and then 10 years after may be working at are the Education and working with usthat at athey different level.

So we Ministry ofpeople’s Education andatworking with us at of a different level. So touching lives different stages their career. we Another are touching livesprogramme at different stages career. verypeople’s successful we runofistheir through the British Foreign Office Chevening programme for 12 months post graduate study at aBUT British University.

About 150 people HISTORIC LINK WITH FRESH TOOLS have been on this programme to date and it is a very competitive and very selective scheme. A lot of the people who have he British Council has always had a strong focus on been through this programme in Serbia are now in very high keeping its approach fresh. level and internationally recognised positions.

Says Andrew Glass, Director of the British Council of In terms ofoverall currentmission projects, now been have to a big focus on Serbia: “Our haswe always build social enterprise as a means to tackling environmental links in education and culture between UK and Serbia. problems, socialweexclusion, employment issues, service The tools use to achieve this, however, arepublic constantdelivery, and ultimately better government.

Britain has exly changing. “ Andrew theare past people would come and pertise in explains this areathat andinwe currently working with local sit in their it was theNGOs, one place theyand could partners in library Serbia as including banks theaccess Serbian English language booksAgency and thatto was their onlyawareness link with of Regional Development help raise the UK. Now those tools have changed and they offer a fundthe subject, give capacity training and identify start-up range different opportunities. ing withofpartners.

We want to get social enterprise estab“For example, we have held competitions in science comlished here in Serbia, and also have the long-term aim that munications which have also run on TV. We keep an eye people in Serbia will be able to trade and share experience on what is changing in the outside world and what is with British enterprises. changing insocial Britain and what our partners here see as

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their needs, and in this way we move with the times and

nkeep Partthings of thefresh.

Council’s overall mission is to build links in ”

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Historic Link Butcelebration With Fresh s part of the year-long of their Tools 70th

Anniversary in Serbia, the British Council brought three thealways UK creative across herepresentatives British Councilof has had ascene strong focustoon Belgrade Design Week in June. keeping its approach fresh.One of the three, David Linderman is an internationally in of the Says Andrew Glass, Director ofrecognised the Britishplayer Council creative“Our field,overall specifically in the area of interactive digitSerbia: mission has always been to build al design. links in education and culture between UK and Serbia.

The tools we use to achieve this, however, are con Whatchanging. do you think stantly “ of Serbia’s digital media scene?  I was explains very impressed somepeople of thewould work I come saw on Andrew that in with the past the MTV from while I was there in June. and sit inbroadcasts their library as Serbia it was the one place they There was definitely very unique andand fresh style could access Englishalanguage books that wasthat I foundonly much more than in other, their link withcompelling the UK. Now those toolsmuch have larger, regional MTV identities. changed, they offer a range of different opportunities.

“For example, we have held competitions in science communications which have on TV.based We keep  Do you currently work withalso anyrun Serbian coman eye on is changing theplan outside world panies?

If what not presently, do in you or hope to and in the what is changing in Britain and what our partners here future? see as don’t their needs, andany in this way companies we move with the at  We work with Serbian yet but, times and keep fresh. ” least based on mythings entirely positive experience in Belgrade, I could easily see potential there. The city is vibrant and

culture between the UK Serbia.personalities, What do you see as edgy...full of friendly and and passionate people the major over thehalfway. last 70 years? who seemcultural to wanthighlights nothing done only I think that rmakes Seventy is a longenvironment time but three events to that come to foryears an excellent in which produce greatthat creative I think theare: city would be a wondermind, peoplework. still talk about ful to project interactive installations: so Infacade 1955 on we which organised a huge exhibition of the sculpmany facadesMoore, and locations which to build tures of imposing the artist Henry and thisinwas a major event real interactions with light and pictures theand landscape throughout the Balkans.

At the time it wason huge I’ve had or architecture itself.  people come up to me and say that they remember this event, and still talk about it.

Another programme we runwe is organised through thea In 2001 very after successful opening our new premises, British Foreign Office Chevening programme 12 months post production of Shakespeare’s Hamlet at the for National Theatre graduate studyseen at a as British About 150 peopleevent have and this was quite University. a big international cultural been on thisafter programme to date and90s. it is a very competitive and especially the events of the veryInselective lot of the people have been 2007 wescheme. had anAexhibition calledwho Breaking Stepthrough which this programme Serbia are of now in veryContemporary high-level and Art internawas the largestincollection British evtionally recognised positions. er to have taken place in the Balkans and was held at the In terms current projects, we now have a big focus on soMuseum ofof Contemporary Arts.

cial enterprise as a means to tackling environmental problems, social exclusion, employment public delivery, and uln The British Council’sissues, birthday is service officially in Septemtimately better government.

Britainthe hasoccasion? expertise in this area and ber.

How do you plan to mark we are are currently working with local partners in Serbia r We actually celebrating by being involved withincluding a year’s NGOs,of banks and Since the Serbian Regional Development Agency of to worth events.

January there have been a number help raise awareness of the subject, give capacity training and identify start-up funding with partners. We want to get social enterprise established here in Serbia, and we also have the long-term goal that people in Serbia will be able to trade and share experiences with British social enterprises.

 Part of the Council’s overall mission is to build links in culture between the UK and Serbia. What do you see as the major cultural highlights over the last 70 years?  Seventy years is a long time but three events that come to mind and that people still talk about are: In 1955 we organised a huge exhibition of the sculptures of the artist Henry Moore, and this was a major event throughout the

Balkans. At the time it was huge and I’ve had people come up to me and say that they remember this event, and still talk about it.

In 2001 after opening our new premises, we organised a production of Shakespeare’s Hamlet at the National Theatre and this was seen as quite a big international cultural event especially after the events of the 90s.

In 2007 we had an exhibition called Breaking Step which was the largest collection of British Contemporary Art ever to have taken place in the Balkans and was held at the Museum of Contemporary events that weArts. have been involved with that we have marked

with our ‘70’ including Belgrade Design Week.

A major anniversary to beinmarked with  The British Council’s however birthday needs is officially September. aHow party so plan at the end ofthe September do -you to mark occasion? there will be a party where be gathering that we have  We we are will actually celebratingthe bypeople being involved with worked a year’s with the past, weJanuary are currently working with and those worthin of events.

Since there have been a number of events

that we have been involved with that we have marked with our ‘70’ logo including Belgrade Design Week.

If you looked at the British Council’s cumulative address over the If you looked at the book British Council’s last 70 yearsaddress it would really have cumulative book over thea considerable who’s who of Serbian last 70 years it would really have a institutions and society considerable who’s who of Serbian institutions and society

we would like to work with in the future. We are also proA major anniversary however to be marked withand a parducing a video clip that will needs be published online on ty - so at the will end ofsummarise September there a party we and will DVD that who will we be are, whatwhere we do be gathering we haveand worked the past, we with a focusthe onpeople all ourthat partners whatwith theyinmean to us. are currently those likeand to work They will beworking able to with talk and about us we andwould the UK whatwith the in the future.

We are also to producing British Council means them. a video clip that will be published andaon DVD that will summarise who we are, Weonline also ran Belgrade Design Week competition forwhat stuwe do to and with athe focus on creative all our partners and they mean dents reward most students in what Serbia and we to us.going They will be sponsoring able to talk about us and the UK andfrom what the also to be a group of musicians British means to them.

UK forCouncil the Guca Festival.

It’s also a major anniversary for Weand alsowe ran see a Belgrade competition for students Guca this as Design a great Week opportunity to have a bit of to reward the most in creative Serbia and we also going fun and celebrate a verystudents Serbianinway. n to be sponsoring a group of musicians from the UK for the Guca Festival. It’s also a major anniversary for Guca and we see this as a great opportunity to have a bit of fun and celebrate in a very Serbian way. 

CorD 73CorD / July -73 August / July 2010 59

OLJA IVANJICKI’S DRAWINGS EXHIBITION

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he exhibition of drawings of the famous painter Olja Ivanjicki (1931-2009) opened

THE SELECTED DRAWINGS BELONG TO THE EARLY AND MATURE PERIOD OF OLJA IVANJICKI’S CREATIVE WORK in mid-June in the ‘Beograd’ Sales Gallery.

The exhibition titled Drawings 1955-1985, is a homage to the artist who was a long-term close associate and friend of this Belgrade gallery. The exhibition will run until July 10th.

Around 30 works in different techniques are on display - some are on show for the first time to the public, while others have rarely been on display. The selected drawings belong to the early and mature period of Olja Ivanjicki’s creative work. Works created during 1950s and 1960s are the focus of the exhibition. In that period Ivanjicki was an active protagonist of the Mediala artistic group, one of the most authentic movements of postwar art in Serbia.

NATIONAL THEATRE MUSEUM OPENING ANNOUNCED he Serbian Minister of Culture, Nebojsa Bradic, announced that the National Theatre Museum will open on November 22nd, on National Theatre Day. The area in the building of the theatre itself, where the ‘Boemi’ tavern is situated, will be transformed into the museum. Architect Milan Palisaski will modify the area for its new purpose. Permanent setting will be situated in the central, larger area of the premises, while the smaller area is envisaged as an exhibition area where different exhibitions will be presented each month.

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ANNIVERSARY OF BOJAN STUPICA’S BIRTH

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he National Theatre in Belgrade celebrated 100 years since the birth of Bojan Stupica, an important Yugoslavian director and playwright and one of the founders of Yugoslav Drama Theatre in Belgrade.

The ceremony took place prior to a performance of the play ‘Dervish and Death’, directed

by Egon Savin. The Serbian Minister of Culture Nebojsa Bradic and the manager of the National Theatre, Bozidar Djurovic addressed guests. Belgrade actress Mira Stupica, ex-wife of Bojan Stupica, was also present at the ceremony, as well as numerous friends and colleagues of the famous director. Bojan Stupica, a very important figure in development of theatre life in Yugoslavia in the second half of the twentieth century, initiated the founding of the Yugoslav Drama Theatre in 1947. Until his death in 1970, Bojan Stupica was active as

a theatre director (in Belgrade and in many other cities in former Yugoslavia), art director and later became the manager of the Yugoslav Drama Theatre.

MICA POPOVIC AWARD CEREMONY

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he award of the Fund for the Affirmation of Creative Work known as Mica Popovic was awarded to film director Zelimir Zilnik on June 12th in Belgrade, on the actual birthday of Mica Popovic. Academician Ljubomir Simovic presented the award to Zilnik at a ceremony held in Haos gallery.

The Fund for the Affirmation of Creative Work and the Mica Popovic award were initiated by the Haos gallery in memory of the great Serbian artist. The award is given every two years in the four areas that Mica Popovic was involved in: art, literature, theatre and film.

The award was presented to this year’s winner, film director Zelimir Zilnik (born in Nis in 1942), based upon the fact that throughout his artistic work and life, he remained persistent to the principles that the Mica Popovic award personifies.

THE YEAR OF BOOKS AND LANGUAGE

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he protocol on cooperation during the Year of Books and Language between Serbian Ministry of Culture, the National Library of Serbia (NBS), RTV Studio B and the Vecernje Novosti Daily was signed on June 11th by the Minister of Culture Nebojsa Bradic, NBS director Sreten Ugricic, Vecernje Novosti CEO Aleksandar Backovic and RTV Studio B director Aleksandar Timofejev. The protocol refers to joint activities during Year of Books and Language that runs until April 23rd, 2011. The signatories also agreed to start the action of marking houses or important places in which famous Serbian writers were born, lived or worked, by installing remembrance plaques of similar design, size and content. The first remembrance plaque will be

60 CorD 73 / July - August 2010

THE FIRST REMEMBRANCE PLAQUE WILL BE INSTALLED ON JULY 11TH, ON A HOUSE IN BELGRADE IN WHICH FAMOUS SERBIAN WRITER MESA SELIMOVIC LIVED

installed on July 11th, on a house in Belgrade in which famous Serbian writer Mesa Selimovic lived. The plan also includes the installation of remembrance plaques that will mark the places in which other great Serbian writers lived and worked including Branislav Nusic, Isidora Sekulic, Vasko Popa, Branko Radicevic, Desanka Maksimovic and Slobodan Selenic.

The Ministry of Culture will be in charge of the design of the plaques and the coordination of the process.

A ‘Language Forum’ will also be held during the Year of Books and Language, which will oversee the correct and proper use of language in the Serbian media in a particular way, as well as many other actions and programmes.

GUCA FESTIVAL JUBILEE ANNOUNCED The largest festival of ethno music in Serbia, the Dragacevo Assembly of Trumpet Players in Guca, which will be held from August 13th to 22nd is also celebrating its 50th anniversary this year.

The festival includes the traditional competition of the best brass-bands in Serbia, and this year a special monograph will be also presented, Guca – the Half a century of the Festival. Numerous support programmes have been announced, including a history of the development of the festival, and also the development of the popularity of brass-bands in Serbia. (The first military brassbands in Serbia were founded in 1831 during the rule of Milos Obrenovic.)

A CHRONICLE OF SERBIAN PHOTOGRAPHY

Goran Malic’s Chronicle of Serbian Photography 1839-2008 monograph, published by Fotograma from Belgrade, was on display at the Belgrade Culture Centre in the middle of June. This work summarises and describes the most important moments from the 170-year history of Serbian photography over 240 pages with 165 reproductions of photographs. Goran Malic (1947) is a photographer and photography historian from Belgrade who researches Serbian cultural heritage in the area of photography and ethno-linguistics.

In his capital work, he decided to mark the beginning of the Serbian photography chronicle, 1778-1839, as prehistory in the development of Serbian photography. The phenomena and events from the early nineteenth and twentieth century in the book are emphasised in great volume and abundance.

The monograph was created based on printed and published material (accessible to the public), and was also based on material from archives.

MAMA AFRICA

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romotion of the third book of travelling prose from Sonja Lapatanov, Mama Africa, was held at the beginning of June in the Globetrotters’ Club in Belgrade. Sonja Lapatanov is a famous Belgrade ballerina and choreographer, and also an avid globetrotter. She has been publishing her travel stories since 1995. To date she has published the titles of On the Fringes of Himalayas and Paradise Islands. Her latest book, Mama Africa - the Cradle of Mankind, is a collection of travelling reports created during her travels over the Black Continent between 1995 and 2009. The most recent book has been published by Belgrade publishing house Dereta.

BELGRADE CULTURE CENTRE ART GALLERY 50TH ANNIVERSARY CEREMONY

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he Belgrade Culture Centre marked the 50-year anniversary of its art gallery in the middle of June by opening the ‘My Experience in a Notebook’ exhibition. The exhibition which is open until July 10th includes writings, musings and sketches of important Serbian artists who have had their exhibitions in this gallery over the last 50 years.

By going through the 25 art notebooks, visitors are able to view different creative writings, as well as the fifty-year old ‘history’ of domestic modern art and culture. Notebooks of artists belonging to different generations and artistic poems are on display, and the exhibi-

tion in a way pays homage to the Belgrade Culture Centre Art Gallery.

EXIT 2010

LEO BURNETT MARKETING AGENCY AWARDED

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t the prestigious international festival dedicated to marketing creations in the area of food and beverages - FAB (Food and Beverages), the Leo Burnett Srbija marketing agency won two top recognitions for their ‘Jafforidza’ campaign created for their client Jaffa, Crvenka. The campaign was awarded the gold prize (FAB Award) in the category of confectionary products and snacks, and the international jury declared it the most creative integrated campaign in the food and beverages category last year (FABuolus Award).

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he largest and most popular Serbian music festival will be held at Petrovaradin Fortress in Novi Sad between July 8th and 11th.

The 11th Exit festival will offer various music programmes in the dance arena and also on the main, Fusion, Suba, Explosive, Happy Novi Sad and Elektrana stages.

THE 11TH EXIT FESTIVAL WILL OFFER VARIOUS MUSIC PROGRAMMES IN THE DANCE ARENA AND ALSO ON THE MAIN, FUSION, SUBA, EXPLOSIVE, HAPPY NOVI SAD AND ELEKTRANA STAGES.

Marketing agencies from more than 60 countries in the world were competing for awards, and Leo Burnett Srbija was the only awarded marketing agency from the region of Central and Eastern Europe.

The main stars on the main stage, with a capacity of 35.000 people, this year are The Chemical Brothers, Faith No More, Mika, Missy Elliott, Placebo, Pendulum Live, LCD Soundsystem, Röyskopp, and Crystal Castles.

You can find all the details regarding the programme at Exit 2010 at www.exitfest.org  CorD 73 / July - August 2010 61

ANNUAL EVENTS

BELEF – BELGRADE SUMMER FESTIVAL July 16th - August 8th

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elgrade’s soul during the summer is defined by the Belgrade Summer Festival, BELEF. This festival combines three large artistic fields: performing arts of the stage (theatre and artistic plays), visual arts (video art, installations, performances, and prints), and music. BELEF’s founder and patron is the Assembly of the City of Belgrade, Secretariat for Culture.

BELGRADE BEER FEST AUGUST 18TH – 22ND Belgrade Beer Fest is, in terms of its average number of visitors, the biggest music festival in Europe. Over five days more than 500,000 people visit the festival. The large number of visitors is mostly due to the festival’s basic principles – free entrance, a varied music program and wide range of foreign and domestic beer brands.

Belgrade Beer Fest was founded in 2003. During the seven years of its existence in excess of 3,000,000 visitors have enjoyed over 350 music performances (free of charge), tasted over 70 beer brands and taken part in numerous social campaigns.The festival has been internationally recognised including a recommendation from the British newspaper The Independent which placed the Belgrade Beer Fest among the ‘20 world events that should be seen’.

FILM PREMIERES AT BELGRADE CINEMAS

THE TWILIGHT SAGA ECLIPSE Starts July 1st

Fantasy, Drama / Directed by David Slade. Starring - Kirsten Stewart, Robert Patinson, Billy Burke KILLERS Starts July 8th Action, Comedy, Romance / irected by Robert Luketic. Starring - Ashton Kutcher, Katherine Heigl, Tom Selleck, Catherine O`Hara

THE A TEAM Starts July 8th

Comedy / Directed by Nicholas Stoller Starring - Jonah Hill, Russell Brand, Rose Byrne, Sean Combs, Elisabeth Moss EAT, PRAY, LOVE Starts August 12th Drama / Directed by Ryan Murphy Starring - Julia Roberts, James Franco, Javier Bardem, Billy Crudup, Richard Jenkins

THE EXPENDABLES Starts August 26th

Directed by Sylvester Stallone Starring - Jason Statham, Dolph Lundgren, Eric Roberts, Jet Li Action, Thriller

ANNUAL EVENTS Action, Adventure, Thriller / Directed by Joe Camahan. Starring - Liam Neeson, Bradley Cooper, Jessica Biel, Sharlto Copley KNIGHT AND DAY Starts July 22nd

PALIĆ EUROPEAN FILM FESTIVAL 2010 July 17th -23rd, 2010

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he 17th annual Palić European Film Festival offers approximately 90 films over eight programmes. Held over a period of seven days, it explores the European cultural space while providing fertile ground for an exchange of creativity and ideas. Enjoy the relaxing atmosphere by the lake, open-air movie THE SORCERER`S APPRENTICE Starts July 15th

Action, Comedy / Directed by James Mengold. Starring - Tom Cruise, Cameron Diaz, Maggie Grace, Peter Sarsgaard

INCEPTION Starts July 22nd Thriller / Directed by Christopher Nolan Starring - Leonardo Di Caprio, Ken Watanabe, Marion Cotillard, Ellen Page, Tom Hardy, Michael Caine 62 CorD 73 / July - August 2010

GET HIM TO THE GREEK Starts July 22nd

Comedy, Adventure, Action / Directed by Jon Turteltaub.

Starring Nicolas Cage, Jay Baruchel, Alfred Molina, Teresa Palmer, Monica Bellucci, Toby Kebbell

screenings in a 100-year-old park, exhibitions, round-table discussions, workshops and plenty of parties. www.palicfilmfestival.com

ART

RENE GRUAU - EXHIBITION June 28th – July 27th / French Cultural Centre, Knez Mihajilova 31

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ene Gruau (1909 - 2004) was a renowned fashion illustrator whose exaggerated portrayal of fashion design through painting has had a lasting effect on the fashion industry. Gruau's inherent skills and creativity contributed to a change in the entire fashion industry through new pictures that represented the already popular designs created by designers in the industry. Gruau’s artwork is recognized and commended internationally in some of Paris and Italy's most prestigious art museums including the Louvre in Paris and the blank in Italy. In addition to his international fame and recognition, Gruau's artwork is known for its timeless and enduring style.

ERNEST PIGNON - EXHIBITION Gallery Haos, Dositejeva 3 / Until July 17th Ernest Pignon was born in Nica in 1942.

Since 1966 he has made the street the main subject of his art work - his drawings and photographs show plenty of urban motifs. Pignon`s works are part of collections in many museums and galleries all over the world.

TOLERANCE - EXHIBITION Goethe Institut, Knez Mihajilova 50 Until July 17th An exhibition of the works of students of the Faculty of Applied Arts in Belgrade who participated in the international competition of Mohology Nagi Institute of Art and Design in Budapest.

JEFF BECK / JULY 7TH AT 21.00 Summertime Festival –July 3rd to 7th Geoffrey Arnold "Jeff" Beck is an English rock guitarist who was ranked 14th in Rolling Stone Magazine's list of the "100 Greatest Guitarists of All Time”. He was one of the three noted guitarists which include Eric Clapton and Jimmy Page, to have played with The Yardbirds. Rolling Stone magazine has described him as one of the most influential lead guitarists in rock. He has had two hit albums (in 1975 and 1976) as a solo act, and he has appeared on albums

by Roger Waters, Stevie Wonder, Les Paul, Zucchero, Cyndi Lauper, Brian May and ZZ Top. In 2009 Beck was inducted into the Rock and Roll Hall of Fame.

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iusy Ferreri (born in 1979 in Palermo, Italy) is an Italian singersongwriter. Her vocal qualities have been compared to Nina Simone, Bessie Smith and Amy Winehouse. Between 2008 and 2009, Ferreri sold 900,000 copies of her first EP and debut album.

MUSIC

THEATRE

I LOVE/BELGRADE - THE NEW SOUVENIR COLLECTION Until September 30th Beoizlog, Belgrade Cultural Centre

he author of unique souvenirs is Ivana Radenkovic, a Belgrade graphic designer.

SUMMERTIME FESTIVAL JULY 3RD TO 7TH SAVA CENTRE, GREAT HALL

Dee Dee Bridgewater / July 3rd at 21.00 ee Dee Bridgewater (born in 1950) is an American Jazz singer who has taken her place alongside such legendary singers as Sarah Vaughan, Carmen McRae and Dinah Washington. She received two Grammies in 1998 for the ‘Best Jazz Vocal Performance’ and ‘Best Instrumental Arrangements with Accompanying Vocals’. In 1998 she also received France's top honour – the Best Jazz Vocal Album.

Lena Kovačević / July 4th at 21.00 ena Kovačević was born in Belgrade in 1982, completed Stanković Secondary Music School in Belgrade, and in 2006 graduated from the Amsterdam Music Conservatory with a degree in jazz singing. In 2009 she released her debut album, inspired by jazz and pop music, as well as by the unparalleled sound of Balkan music.

The Temptations Review Starring Damon Harris / July 5th at 20.30 amon Harris (born in 1950 in Baltimore, Maryland) is best known as a member of The Temptations from 1971 to 1975. Twenty years old when he joined the group, Harris was the youngest member of The Temptations during his tenure in the group.

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URBAN RABBITS – MUSIC CIRCUS July 31st and August 1st-6th Directed by Arpad Schilling. A show that is a cross between the circus and contemporary theatre. It is uncut and devoid of costumes and traditional decors. Árpád Schilling, a gifted Hungarian director, acclaimed by European critics for his radical adaptations of The Seagull and Hamlet, sees the theatre as a place of ommunion, welcoming and intimate, based on improvisation and performance.

ETHNO

VII INTERNATIONAL ETHNO DANCE FESTIVAL Sava Centre, Great Hall / July 15th at 20.00

CLUBBING FOAM FEST 2010 Belgrade Arena / August 28th at 20.00

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FILMSKI GRAD (FILM CITY) - BELGRADE

GIUSY FERRERI, concert / July 4th at 20.30

DJ Axwell, Sebastian Ingrossso, Stereo Palma, DJ Groover, Ultimate Grooves, DJ Kizami, Beatshakers, and Deejay Playa.  CorD 73 / July - August 2010 63

LEISURE

A STEAK-LOVERS DELIGHT Madera restaurant has been around since 1937 and has become a culinary institution on the Belgrade gastro map

By Jelena MICKIĆ

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ne restaurant that deserves to be on the rather shaky and short list of above-mediocre Belgrade eateries, as least for its longevity and quality of food and service, is Madera.

This place has been around for quite some time, actually since 1937, and has become a culinary institution on the Belgrade gastro map. Redecorated and refurbished, and with a refreshed menu several years ago, Madera is now a sleek and smart dining establishment. The interior is clean and warm, and there is an elegant, roomy and highly sought after patio at the back (when the weather permits), that looks over Tasmajdan Park.

Madera’s lengthy menu according to local tradition and expectation translates into a list of continental culinary classics (carpaccio, risotto and steaks); domestic meals involve mostly grilled meat dishes; but what Madera is known and respected for

are its classic steak dishes... and that’s exactly the reason we came here.

We warmed up with a basket of bread rolls and ‘projica’ with salt and pepper flavoured butter accompanied by an aperitif of excellent domestic quince and apricot brandy from Monastery Kovilj, which we had already tasted on a previous occasion.

For the starter we had a superb beefsteak tartare that came served with butter and six toast triangles. We chose our tartare from the list of mains, but there is also the option of a smaller tartare starter that comes already spread on toast slices. In my opinion beefsteak tartare is a gourmet classic. Once a haute cuisine favourite, it staged a come-back last year to the topnotch world eateries. We are fortunate that it has never left Belgrade. According to legend, the Tartare tribes while fighting did not have time to prepare and cook food, so they kept their meat under their horse’s saddles to tenderise it while rid-

Madera is a restaurant favoured amongst successful, establishment and corporate types. On a workday it is not your typical ‘family and friends’ restaurant

64 CorD 73 / July - August 2010

ing. Beefsteak tartare was first served in French restaurants early in the 20th century. It is prepared with finely chopped or minced raw beef, onions, capers, Worcestershire sauce and other seasonings, sometimes with a raw egg on top. People love it or hate it. Our tartare was well prepared with fresh ingredients, superbly seasoned, creamy and with strong flavours.

It was one of the best, if not the best, beefsteak tartare I’ve had in Belgrade restaurants. An excellent choice to match this dish and enhance its flavours is a good pinot noir.

For the main course my companion ordered a beef steak in black pepper sauce, while I had a pan fried sea bream fillet in a couscous and sliced almond coating with tomato salsa. The steak came wrapped in bacon, topped with black pepper sauce and with potato chunks as a side. The meat was cooked to a perfect medium-rare, the top and bottom layers nicely darkened, and the middle section pink, soft and juicy. The whole black pepper grains were a nice feature presentation-wise, but were very strong and harsh on the palate. The potato was crunchy and nicely seasoned.

My crispy golden sea beam accompanied by red tomato salsa looked too simple and ascetic on the plate compared to the elaborate presentation of the steak. The couscous and almond coating was too coarse in texture and felt like sandpaper on my tongue. Not a pleasant feeling at all. It took me several mouthfuls to become accustomed to the bland taste of the fish after the strong beefsteak tartare flavours, but still the coarse sandy texture and strong fried flavours of the coating were too dominant in this dish.

The tomato salsa as a side had a bitter and garlicky taste and was under-seasoned for my liking. After consuming red meat, any fish will seem bland, non-descript and odd tasting in a way. I shouldn’t have ordered fish following tartare, so for this reason I’ll give the sea bream dish the benefit of the doubt.

As we were fresh from our recent holiday to Slovenia, we decided, just out of curiosity to test Madera’s ‘krempita’, a sort of a cream custard cake to see how it compared to the famous one from Bledska. The obvious difference was the recipe, that’s for sure, but the texture of the cream was also very different. Instead of a light, airy and heavenly creamy filling,

the custard in Madera’s ‘krempita’ was a disappointingly solid block of egg cream without a distinctive flavour, that sat firmly on the base of the cake. Nevertheless this flop at the end did not succeed in diminishing our overall satisfaction with the meal, especially with the steaks.

Madera is a restaurant favoured amongst successful, establishment and corporate types. On a workday it is not your typical ‘family and friends’ restaurant. We were there late afternoon on a workday and it had a busy-bee-hive feel with the waiters fluffing around important and very important guests.

Madera is definitely not a romantic or a first date spot; I noticed a couple, a young man with a wry grin and his date sitting at the smallest and the ugliest table possible next to the kitchen. In order to impress his date he had forgotten to impress the rigid Madera staff, hence the unattractive seating arrangement. I could sense a hint of old fashioned snobbery in the air. Speaking of the service, the waiters are efficient and knowledgeable, but if not reigned-in, some have the pretentious tendency to ‘educate’ ‘uneducated’ looking guests. Booking your table in advance is a must - and ask for the patio or window table. Avoid the central tables as it gets very busy and can be annoying with waiters whizzing up and down. Plan your parking in advance and leave some time for finding a parking spot if coming by car. Madera is located in the 1st parking zone. Price-wise it is one of the high end restaurants in Belgrade. 

The meat was cooked to a perfect medium-rare, the top and bottom layers nicely darkened, and the middle section pink, soft and juicy

CorD 73 / July - August 2010 65

LIFESTYLE & LEASURE CRUISE TO BELA STENA ON THE SIRONA

AN UNFORGETTABLE AFTERNOON

Being on the water forces one to relax, it lifts ones spirits and gives a feeling of freedom... and cruising on the Dunav must surely be one of the great rivercruise experiences in Europe

By Philomena O’BRIEN

W

hen I first arrived in Belgrade, I made the mistake of suggesting a tourist kayaking business to a Zemun waterfront cafe owner. The look on my Serbian friend’s face should have been enough of an indication of what was to follow from the cafe owner.

An Adventure The sun is shining and I can tell by the happy chatter that everyone is in the mood for a bit of an adventure.

66 CorD 73 / July - August 2010

His response was along the lines of “Lady, the Danube is a very serious river.” And that was it! Had I been here longer (as I have now) I would have understood the nuances behind this very simple statement, but I was a naive tourist, ‘fresh off the boat’ from Australia and so looked expectantly at him waiting for the rest of the explanation. It’s serious ...and....what?

I’ve now been fortunate to have lived beside this river for a little longer and I’m beginning to understand a little of what the cafe owner was trying to tell me. His simple (to me) response was voicing something along the lines of “The Danube is a river not to be messed with; it is noble, it is proud, it carries the history and the blood of my people and countless races before mine. It is used for shipping and industry and it is not for frivolous tourists to muck around on kayaks.”

I often think about his comment as I survey the mighty Dunav. I am thinking about it now, feeling a little guilty as I make for the Sirona cruise ship soon to depart for a day-trip to Bela Stena (White Island), to enjoy a bit of frivolity on a beautiful Belgrade summer’s day.

The Sirona is the perfect way to see a bit more of Belgrade and its environs, and is one of the few tourist boats offering a regular cruise out to Bela Stena, about an hour out of the city. The cruise runs three times a week in the afternoon and includes a buffet lunch.

There is enough time for me to make my way up on deck to meet my host, the lovely Vesna, and we are off, up the Sava and making toward the confluence where we will join the Danube and head for Bela Stena.

We pass under Kalemegdan, Nebojsa Tower the 25 May splavs and the tennis courts and I am reminded of why I like city boat-cruise tours so much – they give an entirely new perspective of a city. They are a great way to get an entirely new angle once you have walked all the main streets and seen all the ‘must see ‘tourist sights. What’s more, being on the water almost forces one to relax, it lifts ones spirits and gives a feeling of freedom... and cruising on the Dunav must surely be one of the great river-cruise experiences in Europe.

So, here I am on my day-trip, feeling a little guilty about taking pleasure from this serious river but also loving being out of the city and on my favourite river.

The sun is shining and I can tell by the happy chatter that everyone is in the mood for a bit of an adventure. The lovely thing about the Sirona is that we are all able to sit in the shade under the canopy on the top deck but also have the freedom to walk around the boat.

My companions and I wander about a bit and take snaps of our new view of Belgrade and return in time for icy cool drinks bought by the waiter. (Had it not been so hot I would have been sorely tempted to indulge in one of the many colourful cocktails on offer including Ocean Kiss, Mai Tai and the obligatory Sex on the Dunav ... ooops, I mean Beach!)

We travel at an easy pace down this mighty waterway and as the last of Belgrade’s suburbia disappears (Visnjica, or sour cherry suburb’), we move into the green-belt that is one of the things I love so much about Serbia.

The upper levels of the boat offer a great view but my pick is down at river level, where you can smell the Danube and get a sense of this mighty European waterway. There is a nice little spot at this level at the back of the boat and beside the bar. Make sure you stop here for a while for a drink.

All at once we draw alongside Bela Stena and as it’s my first time here I am fascinated by the pile houses and rafts. I can see why people come here for their weekends and holidays. It a perfect idyll – surrounded by greenery. I see the signs of people going about their weekend. Actually I need to make a correction too – the island is often inadvertently called Bela Stena but its correct name is actually Forkotumac – only the beach is Bela Stena.

Lunch while not cordonbleu, is tasty. There are plenty of options including salads, a chicken dish, fish, breads and the obligatory proja. There is a kitchen on the boat so all food is prepared onboard, adding to its freshness. In terms of the meal the highlight was a divine chocolate mousse that we decided to take up to the top deck and indulge in as the Danube’s river-life slips by. And so we sit, tucking into our mousse with coffees on the side, as Belgrade and her suburbs start to slide back into view. Back to the apartments, the factories and port buildings. Back to 25 May and Kalemegdan.

I love Belgrade but it has been beautiful to escape the city and its summer dustiness for a while – to be surrounded by greenery and to see the working boats and their smiling drivers. To breath in and move along with the ‘Dunav’ ... this most serious of rivers. 

The upper levels of the boat offer a great view but my pick is down at river level, where you can smell the Danube and get a sense of this mighty European waterway

CRUISING

Onboard the Sirona are two restaurants, three bars and a lovely open-air upper deck.

The boat is air-conditioned and can carry up to 200 passengers.

The Sirona does a number of different cruises on the Danube and Sava Rivers.

These include:

Belgrade from its Great Rivers – a 90-minute sightseeing cruise (€6). Tues/ Sat/Sun 10.30-12.00, and Tues/Fri/Sat/Sun 17.30-19.00.

Danube Excursion to Bela Stena including Lunch (€20 including buffet lunch).

Tues/Sat/Sun 13.00-16.00 Dinner Cruise with Live Music (€20 including buffet dinner and live music). Tues/

Fri/Sat/Sun 20.00-22.30 Midnight Party Cruise (€10) The Sirona is also available for private charters and does one and two-day river-cruises to such locations as Novi Sad, Sremski Karlovci, Viminacium and Djerdap Gorge.

For more information check out www.sirona.rs or call 011 303 9090 CorD 73 / July - August 2010 67

FRANCE

AUSTRALIA

SERBIA

BRAZIL

WORLD CUP

SOUTH AFRICA 2010

The common image of football stadiums filled with crowds of cheering men – while their women sit at home waiting for their sweethearts to return - has changed considerably at the World Cup in South Africa.)

In addition to the large percentage of women who have been following the World Cup live, their presence has changed the color of this great event and brought more vibrancy to the stadiums.

Many believe that women at the World Cup show far more emotion and desire for their teams to win.

SOUTH AFRICA

NETHERLAND 68 CorD 73 / July - August 2010

USA

SLOVENIA DENMARK

ECUADOR

PORTUGAL ARGENTINA

GERMANY

JAPAN SPAIN

CorD 73 / July - August 2010 69

LIFESTYLE AND LEISURE

ON THE EUROPEAN ROAD OF CULTURE

This season, the National Tourism Organization of Serbia launched the My Country, My Journey campaign. On offer is a selection of programmes of fun weekends, events, active vacations, and journeys through history. Travelling through Serbia also includes the option of experiencing stays at local households in villages, in the most beautiful areas, near cultural and historical monuments or cities, such as farm-stays (known as salasi) in Vojvodina.

TRANSROMANICA Transromanica is a cultural journey that connects with the European heritage of the Romanic period. It is a tourist route that connects monuments in Germany, Austria, Italy, France, Spain, Slovenia, and, since November 2007, Serbia. Žiča, Studenica, Gradac, Djurdjevi Stupovi and Sopoćani monasteries are a part of this cultural tourist route. The Council of Europe has included Transromanica into the ‘Main European Roads of Culture’ programme on the basis it connects and promotes the mutual heritage of Europe.

Serbian medieval art is unique as it merges the influences and elements of Western European art and the art of the Eastern Byzantine Empire. Such an original synthesis was created as the result of the specific position of Serbian lands, situated at the junction of roads, influences and interests. The ruling Nemanjic family played a crucial role in the political life of Serbs during the Middle Ages and this had a huge influence in the creation of this art, which flourished at the end of twelfth century, and especially at the beginning of thirteenth century in Raška. The first monuments were created during the rule of Stefan Nemanja (1168-1196), the founder of the Nemanjic dynasty. The breakthrough and assimilation of Romanic elements into Serbian medieval art can be seen on the most representative monuments of the so-called Raška School. The first influences of the Romanic from the west arrived into Serbia from southern Italy, across the Littoral. The art of this period is influenced by Byzantine art, while the Romanic elements can primarily be seen in architecture and sculpture.

ŽIČA A monastery with the Church of St Salvation (Ascension of Christ) which was built

by Nemanja’s sons Stefan Prvovenčani and Sava is situat70 CorD 73 / July - August 2010

ed in central Serbia, between Kraljevo and Mataruška Banja.

It cannot be said with any certainty when the church was constructed; however the assumption is that it was begun in 1206 and that it was probably completed by 1220. Zica became the first residence of the Serbian archbishopric at the point when Sava Nemanjic took on this role and Serbia acquired autonomy of its church in 1219.

STUDENICA This monastery is situated near Ibar gorge and the town of Ušće. It is surrounded by beautiful mountain and forest landscapes. The construction of the monastery is linked with the pinnacle of power of Stefan Nemanja. His youngest son, Sava, wrote about the construction of this monastery in his work dedicated to the life of his father: “… this place was desolate like a hunting ground for the beasts….” Within the monastery complex of Studenica is also the most significant and most impressive church dedicated to Our Lady of Evergetides – the Church of Virgin Mary, which represents the burial site of Stefan Nemanja. It was built between 1183-1196/7. The romantic decoration of the Church of the Virgin Mary in Studenica represents one of the richest representations of Serbian medieval art. UNESCO included Studenica as a part of its World Cultural Heritage sites in 1986.

monastery, with the church dedicated to Holy Trinity, is the endowment of King Uros I (1243-1276). It was built in the second half of the thirteenth century and it became the mausoleum of the royal family. Due to its exquisite spiritual, cultural and artistic value, the monastery complex of Sopoćani (together with the Old Ras complex) was included as part of the World Cultural Heritage list by UNESCO in 1979.

DJURDJEVI STUPOVI This monastery is situated near Novi Pazar, at the top of a cone-shaped elevation. It is rare in Serbian medieval architecture to build a monastery in such a prominent place. The construction of the monastery most likely started in 1167, and it

GRADAC This monastery is situated on the plateau above the Brvenica River, on the rim of the wooded slopes of Mt. Golija. Its foundations are not precisely known, but it is believed that it was finished in the last quarter of the thirteenth century. It is an endowment of Queen Helen of Anjou, the wife of King Uroš I, and she was buried here in 1314. The architectural forms here carry the features of mature and late Romantic art, as well as some early Gothic characters, and this can be primarily seen in the capital of the portal, the window ledges which are made mostly of marble and rows of blind arcades at the roof’s crown.

After Studenica, this is the most richly decorated church from the thirteenth century in Serbia.

SOPOĆANI Sopoćani monastery is situated near the source of Raška River, near the old city of Ras, which used to be the Serbian capital. The

can be determined (by the founder’s inscription in the western portal of the church) that construction was finished in 1170/71.

It was built by Stefan Nemanja, and he dedicated the church to St. George in his gratitude, after being released from the dungeon-cave that his brothers had confined him in. After the struggle with his brothers, Stefan Nemanja took over the position of Grand Prince in Raška. UNESCO has also included Djurdjevi Stupovi on its World Cultural Heritage listing.

DEČANI Dečani monastery was built between 1327 and 1350. The architect Vita from Kotor decorated the structure of the Orthodox shrine with its Romanic façade with rich decorations on the portals, windows and consoles. Dečani is also on UNESCO’s list of World Cultural Heritage sites.  CorD 73 / July - August 2010 71

LIFESTYLE AND LEISURE

ACTIVE VACATIONS

Active holidays are one of the best ways to get to know a country. In addition to hiking and mountaineering, the National Tourist Organization of Serbia also recommends sampling some of the sporting activities on offer in the natural beauty of the countryside SPELEOLOGY

The caves and tunnels of Serbia with their quantity and diversity attract numerous visitors. Whether you are an explorer, adventurer, or you simply wish to try something new, heading underground offers the possibility of having a good time, learning something new and experiencing a thrill like nowhere else. Going underground, to the very heart of the unknown, surrounded by nature and a rich history, will make your visit to the speleological sites of Serbia an experience you will never forget. Caves open to tourists include the Zlot Caves, Lazar’s and Vernjikica Cave near Bor, Resava Cave in the village of Jelovac near Despotovac, Rajko’s Cave in Majdanpek and Potpeće Cave in the village of Potpeće near Užice. It is also worth visiting Raka’s Abyss in the village of Kopana on Mt. Miroč, Dubašnica near Bor and Faca Šoru on Mt. Miroč near Donji Milanovac.

FREE-CLIMBING

Free-climbing requires a lot of skill, courage and persistence, and it can be done on natural or artificial rocks. Serbia has numerous attractive natural rock areas with various relief configurations that offer a challenge to those who wish to test their capabilities. The National Tourist Organization

of Serbia recommends the following natural rocks formations: Natural rocks V1 and V2 in Belgrade in an old quarry in Košutnjak, and V3 in Topčider; Stol - 20 km from Bor; Gornjak - 25 km from Petrovac on Mlava; Jelašnica - 20 km from Niš; Ovčar and Kablar - 20 km from Čačak; Sićevo 31 km from Niš; Valjevo - 25 km from Valjevo; and Vršac 85 km northeast of Belgrade.

HORSE-RIDING

Horse-riding is growing in popularity across the world, as well as in Serbia. There are several privately-owned stables in Serbia and the most famous of these are: Zobnatica Stables near Subotica, Karadjordjevo Stables near Bačka Palanka, Kelebija Stables near Subotica and Ljubičevo Stables on the bank of the Velika Morava near Požarevac. All these stables allow people to become familiar with breeding horses and horse-riding in Serbia.

CYCLING

There are numerous European cycling tour operators who include Serbia in their tour routes. This area offers so much beauty, hospitable people and appeals to all kinds of interests.

There are a large number of cycle routes, and the most popular of these is the cycling route beside the Danube River, which represents a section of the European Euro Velo 6 corridor.

72 CorD 73 / July - August 2010

MOUNTAIN BIKING

Mountain biking starts where the tarmac finishes. Those who enjoy this sport primarily love the exhilaration, the hard push through mountain routes, jumping over rocks and ravines. Hilltops offer wonderful scenery, and riding over meadows, along narrow paths and jumping logs is great cause for excitement. The combination of biking and mountaineering, as well as spending time surrounded by nature, is a special experience and gives one the feeling of freedom.

The National Tourist Organization of Serbia recommends the mountain biking routes on Tara and Zlatibor.

FISHING

The diverse and well-preserved nature of Serbia offers passionate fishermen and recreation-lovers the Danube, Sava, Morava, and Tisa rivers, as well as various lakes, mountain rapids and gorges. The rivers of Serbia are still rich in sturgeon, carp, trout, perch and pike, as well as numerous species of the so-called white fish.

SAILING AND ROWING

People can sail across the rivers and lakes of Serbia with kayaks, canoes, rafts, pedal-boats, and jet-skis. The calm surfaces of natural and artificial lakes offer an ideal opportunity to prepare for high-level competitions, and are also just a great place to enjoy oneself on the water. The National Tourist Organization of Serbia recommends the sporting tourist cen-

The upper levels of the boat offer a great view but my pick is down at river level, where you can smell the Danube and get a sense of this mighty European waterway tres of Ada Ciganlija in Belgrade, the Bela Crkva Lakes in Bela Crkva, Lake Palić near Subotica and Silver Lake near Veliko Gradište. Recently the Danube River has been able to offer excellent conditions for rowing near Smederevo and sailing near Golubac.

RAFTING

Once hard and dangerous work - bringing logs from the inaccessible forests around the rivers of Piva, Tara and Drina – has now become a tourist attraction. Rafting with rubber boats down the rapids of mountain rivers is a real challenge for the modern tourist who wants excitement and adventure. In Serbia it is possible to go rafting on the rivers of Ibar, Drina, and Uvac as well as some other lesser known ones.

The National Tourist Organization of Serbia invites all readers to visit the tourist information centre in Belgrade at Čika Ljubina 8, or to visit us online at www.serbia.travel  CorD 73 / July - August 2010 73

TECHNO TALK |

DELL STREAK

Price € 515

A

wesome for web browsing and handling multimedia but this over-sized touchphone might struggle to find an audience

SAMSUNG MONTE

Price € 180 PAYG

S

amsung has outdone itself with this wellconnected, awesome value touchphone.

A genuine bargain

SONY ERICSSON XPERIA PURENESS

Price € 780 (SIM-free) LG CHOCOLATE BL40

Price € 540 (SIM-free)

G

reat for watching movies on the move, but a fiddly interface and over-long form factor make it an awkward customer

MEDION THE TOUCH X9613

Launch price € 2050

A

wonderfully gadgety media PC that has so many features that it ends up suffering an identity crisis

74 CorD 73 / July - August 2010

T

he transparent screen is an intriguing novelty, but doesn’t prevent the Pureness from being an overpriced and unexceptional phone

APPLE MACBOOK PRO 15IN

Launch price €1,800.00

T

he lack of Blu-ray aside, this is a truly great media laptop with an amazing battery life

SONY VAIO P

€ 1,200.00

S

till the most elegant Atom netbook around, and still horrendously overpriced, too

ASUS G73

Launch price € 2,280

P

IRIVER STORY

ricey, but it’s a dream list of components in a remarkable and distinctive case

Price €280.00

E

asy on the eye and reasonably easy on the pocket, the Story is well worth a look

APPLE IPAD 3G

Launch price from € 440.00

S

tatus symbol tech that’s bigger, smarter and faster than the iPhone – but certainly not more practical

CorD 73 / July - August 2010 75

TECHNO TALK |

APPLE IPAD 16GB WI-FI

Launch price € 350.00

D

izzying, dazzling and debonair, Apple’s must-have iPad is simply the best gadget you don’t really need

CANON LEGRIA HF S21

Launch price €1,440.00

N

ot the easiest camcorder to use, but more than compensates with fine hi-def performance and pro-level features

SAMSUNG HMX-H200

Launch price € 420.00

CANON EOS 7D

W

Launch price €1,500.00 (body only)

on’t win awards for its looks, but a fine performer that punches well above its price point

S

tunning all-round performance, features and build. A pro-quality body that any serious amateur can afford

SONY HDR-XR550

Launch price € 1,350.00

H

uge storage, great stills and a top-notch touch screen, but not quite picture perfect

76 CorD 73 / July - August 2010

OLIVE 4HD

Launch price €2,600.00

T

his is 21st-century hi-fi: the Olive 4HD is superb to live with and listen to

SAMSUNG UE40C7000

Launch price €2,160.00

A

fantastic TV with a brilliant, extensive spec and terrific picture. The 3D functionality is just the icing on the cake

YAMAHA YSP-4100

Launch price €1,300.00

T

he YSP-4100 is a sophisticated, modern and convincing attempt to produce surround sound from one box

SPECIALIZED STUMPJUMPER FSR 2010

Launch price from €2,180.00

S

uperb-riding full suspension trail eater.

But the Brain’s an unnecessary extra complexity * * * *

CorD 73 / July - August 2010 77

profile

We Create Our Own Reality Even in these times of crisis Infostud has focused on development, says the director of the most visited group of websites in their respective areas in Serbia, Branislava Gajic

B

ranislava Gajic, director of Infostud, the group of internet websites that records over four million visits per month, believes that nothing in life happens by chance. “The world is what you make of it and you are what you make of yourself, and accordingly you must always be prepared to work on yourself,” she says. In accordance with this principle, which “can sound worn but is true,” she is gathering “positive people ready to take responsibility and create their own reality.”

A group of such people created Infostud, which now has seven websites that are the most visited and largest websites in their respective areas in Serbia. Infostud websites encompass the areas of employment and human resources, specialist training, cars, tourism and high-level education.

Although they have smaller offices in Belgrade, the Infostud centre is based in Subotica, and this is where the whole story began at the end of 2000.

“The advantage of electronic business is that it can be conducted from smaller cities and thus contributes to the decentralization of the economy,” comments Branislava.

Infostud was initially focused on education, and then expanded to job advertisements at which point they had only a few young people working for the company on a voluntary basis, and on their own PCs. “We opened our first office in 2005 and began establishing work and time systems and procedures, as well as policies and establishing the necessary corporate culture and processes.

Subsequently everything moved toward learning through

Thus despite the crisis, the training budget of employees at Infostud was 20% higher in 2009 than it had been in 2008, and savings were achieved through other expenses that they evaluated as unnecessary work, training, literature and from examples of those who had already succeeded,” Branislava says.

Growth of the existing websites and also the expansion into new business areas on the internet was a natural thing, she says. Accordingly Infostud was the first ‘.com’ company to buy a domestic website.

“At the same time we are careful not to over-expand, as it is not profitable to become ‘greedy’ and spread resources 82 CorD 73 / July - August 2010

which has the effect of undermining the foundations of the company,” Branislava says.

“Two years ago we gained a new partner – the international British Daily Mail and General Trust Corporation, which now owns 25% of Infostud. The balance is owned by my brother Branimir Gajic, Stefan Salom and myself who have worked for Infostud since its inception. We are very pleased with our partnership and we have plans for further expansion, but gradually…”

The effect of the economic crisis was felt on the internet. The number of ads for new positions vacant decreased, but on balance ads were being transferred from classic media to the internet.

The trading of used cars over the internet has also increased, as well as interest in professional training which is probably motivated by peoples need to preserve their jobs.

Infostud, which today has a team of 45 people, has obviously successfully ducked the punches of economic instability.

Branislava Gajic, “We have been focusing on expanding the market and director of Infostud our share of the market even at a time like this. We have focused on development rather than achieving higher profits and we have engaged a whole team around this initiative, which has given us good results,” says Branislava. Thus despite the crisis, the training budget of employees at Infostud was 20% higher in 2009 than it had been in 2008, and savings were achieved through other expenses that they evaluated as unnecessary.

In addition to a good education and employment, what skills have enabled Branislava to lead such a successful company?

“I believe I have a good combination of different skills. I graduated from journalism and communications, prior to that I finished economic high school, and I have been involved in the arts and writing for a long time. Consequently I believe I have a creative side but I am also a very practical person, who is involved in business,” concludes Branislava. n

RESTORAN CAVALIERE Djure Danicica 4, 11000 Beograd, Srbija Tel: 011.3341.347 www.cavaliere.rs restoran@cavaliere.rs CorD 73 / July - August 2010 1