CorD Magazine No.93

Increase Dinar Use

NO POLITICAL IDEA

Governor of the National Bank of Serbia

Doctor of Social Sciences

Dr. Vesna Peťić,

Duťan Bajatović,

MAY ‘12 / ISSUE No. 93

General Director of Srbijagas

www.cordmagazine.com

Dejan Šoťkić,

Interests Determine Cooperation

interviews opinions news comments events PRICE 250 RSD Saťa Janković, ombudsman

Most Complaints - Bureaucracy

When, almost five years ago, Saťa Janković became the first ombudsman in Serbia, he held a press conference in a park in front of the National Parliament building since he had no office of his own in foCus: Austerity Programme

Short-term Measures

In late March of 2012, the Serbian Government adopted the Austerity Programme which entails budget savings in the amount of 15.7 billion dinars by the year end PGA EUROPEAN TOUR

Rich Mans Game The three leading professional golf tours in Europe, are all run by The PGA European Tour.

The organisations headquarters are in Virginia Water, Surrey, England

Slavica Ä?ukić Dejanović Serbian Parliament Speaker and acting Serbian President

Government Should Be

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POLL RESULTS OF GERMAN COMPANIES

COVER Slavica Đukić Dejanović, Serbian Parliament Speaker and Acting Serbian President

Government Should Be Formed Quickly contents

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We should not lose momentum in resolving Serbia’s burning economic and social issues and it would be ideal if the new government was formed between the two rounds of the election

Increase D inar Use

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Dejan Šoškić, Governor of the National Bank of Serbia

ABC Serbia organized a series of seminars on online advertising

Government Should Be Formed Quickly

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Slavica Đukić Dejanović, Serbian Parliament Speaker and Acting Serbian President

No Political Idea

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FACES & PLACES

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Cultural Feast for CHILDREN

Dr. Vesna Pešić, Doctor of Social Sciences

55th Zmaj Children Games to take place in Novi Sad from 6th to 10th June

Interests Determine Cooperation

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Dušan Bajatović, General Director of Srbijagas

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Saša Janković, Ombudsman

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Rich Mans Game Feature

Most Complaints - Bureaucracy

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Serbia

Online Advertising Tour

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Austerity Programme Short-term Measures

Fresh,

Modern, Classic

Restaurant

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Profile page 82

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Off

the Beaten Path Travel

European Post Offices in Belgrade Goran Ćirić, Acting General Director of Serbian Post Office

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SHOW

STOPPERS Techno talk

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Records To Be Proud of and to Remember

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Petar Knežević, Director of the Nikola Tesla Thermal Power Plant d.o.o. Obrenovac

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ASSISTANT EDITOR: Max Williams, m.williams@aim.rs CONTRIBUTORS: Jovana Gligorijević, Rob Dugdale, Mirjana Zec, Radmila Stanković, Boško Jakšić,Steve MacKenzie Zorica Todorović Mirković,Sonja Ćirić, Vera Didanović PHOTOS: Zoran Petrović, TRANSLATION: Snežana Bjelotomić PROJECT MANAGERS: Nataša Popović n.popovic@aim.rs Biljana Dević b.devic@aim.rs Vanja Jokanović v.jokanovic@aim.rs Svetlana Okanović s.okanovic@aim.rs

FINANCIAL DIRECTOR: Ana Besedić a.besedic@cma.rs

Economy page 30

Business Dialogue

ART DIRECTOR: Maja Dušić, m.dusic@aim.rs

GENERAL MANAGER: Ivan Novčić i.novcic@cma.rs

UK’s weakest recovery in 100 years Economy

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EDITOR: Sasa Marić s.maric@aim.rs

EXECUTIVE DIRECTOR: Ruža Ristanović r.ristanovic@aim.rs

Focus

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May 2012

Serbia – Top Destination Poll results of German companies regarding the business environment in Serbia

Women Dress to Impress… Who?

OFFICE MANAGER: Tanja Banković t.bankovic@aim.rs PRINTING: Rotografika d.o.o., Segedinski put 72, Subotica CorD is published by: alliance international media Makenzijeva 67, 11000 Belgrade, Serbia Phone: +(381 11) 2450 508 Fax: +(381 11) 2450 122 E-mail: cordeditorial@aim.rs www.cordmagazine.com www.allianceinternationalmedia.com ISSN no: 1451-7833 All rights reserved alliance international media 2012

Fashion

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My Work is My Hobby Maja Gedošev, Director of Corporate Communications at Actavis

This issue is audited by ABC Serbia

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comment

Increase

Dinar Use Dejan Šoškić, Governor of the National Bank of Serbia

There is a widespread misconception that parallel use of the euro and dinar, and the use of the FX clause are useful features of the Serbian financial system and that they have no adverse effect on price stability, financial stability, the level of interest rates, economic activity and employment in our country.

Whoever shares this view is thoroughly wrong.

I

stability and stable economic growth.

Finally, the relatively high proportion of loans in euros, or those with a FX clause, have a major negative effect on financial stability. The risks to a financial system in which most borrowers have revenues in local currency but commitments in a foreign currency are significantly higher. Such systems are inherently unstable. Debtors look up the exchange rates every month, as these determine the level of their loan instalments, but not their level of income. All of our citizens and businesses who have taken loans with a currency clause know this situation only too well. In this system, even solid debtors who have not experienced any particular changes in revenue or in the value of their assets can, through a change in exchange rates, easily find themselves in a situation where they cannot honour their credit commitments. This can easily become everyone’s problem, i.e. a systemic problem which requires an expensive clean-up, not just in the sense of spending taxpayers’ money, but also in missed economic activity and employment throughout the country. Of course, this potential instability requires a conscientious financial system regulator (NBS) to build in extra capital and reserve buffers, and to keep currency reserves at a very high level ‘just in case’. This extra regulatory burden of ensuring the most important thing, financial stability, comes at a price. This cost has its place in the structure of average interest rates and contributes to its higher level.

In other words, a gradual reduction in the proportion of euro loans (or those with a currency clause) to the benefit of dinar loans without a currency clause creates conditions for reducing risk and the regulatory cost of risk control and, as a result, for reducing interest rates throughout the financial system.

Dinarisation cannot be an isolated effort by the NBS. All state bodies, financial institutions, businesses and citizens must, more or less, actively take part in this process of such great nation-

t is true that our citizens traditionally save in hard currencies and calculate transactions in euros. It is also true that this behaviour is due to the inertia caused by the longstanding price instability of the seventies and eighties and the detrimental price and financial instability of the nineties.

Besides, it is also true that in Serbia during the first years of recovery of the financial system in the last decade, euroisation, and the currency clause to a certain extent, encouraged the creation of longer term financial instruments, namely medium and long-term lending.

But, what else is true and even more important?

Firstly, inflation in Serbia has predominantly been in single digits for years, and its financial system with an inflation targeting regime is solid and robust. Therefore, the basic reasons for the introduction of FX denominated financial instruments no longer exist in our If we want a healthy financial system functioning system. Our financial system is comparaat lower interest rates, dinarisation is much less of bly more stable and inflation lower than a choice and more a matter of necessity. in some of the advanced economies of a couple of decades ago.

Secondly, increasing the proportion of dinar-denominated al interest. The National Bank of Serbia and the Government loans without a currency clause allows for lower and more of the Republic of Serbia have signed, in April of this year, a stable NBS reference interest rates with the same impact on Memorandum on Dinarisation Strategy. The Memorandum deaggregate demand and, consequently, on price stability. If infines objectives, measures and actions to be taken in order to terest rates on euro loans (and loans with a currency clause) strengthen confidence in our national currency and bolster its are linked to the movement of international interest rates use in the financial system. The NBS and the government have (EURIBOR), then the basic tool of the NBS, the key policy rate, recognized the need to increase the use of the dinar in the finandoes not have a direct impact on the price of FX-denominated cial system which, in addition to contributing to financial stabilior FX-linked financial instruments, i.e. on a substantial portion ty, will lessen the risk of exchange rate changes, reinforce the efof aggregate demand. Hence, the NBS’s basic tool has less ficiency of monetary policy and help foster the preconditions for effectiveness and consequently the interest rate set by the strong and sustainable economic growth.

NBS must be higher and has to change more often to achieve Therefore, If we want a healthy financial system functioning the desired effect on aggregate demand. A system such as at lower interest rates and achieving higher rates of economic this has a built-in tendency to higher and more volatile central growth and employment, dinarisation is much less of a choice bank reference rates, which is not optimal for macroeconomic and more a matter of necessity. ■

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With head and heart in finance

interview Slavica Đukić Dejanović, Serbian Parliament Speaker and acting Serbian President

Government Should Be

Formed Quickly We should not lose momentum in resolving Serbia’s burning economic and social issues and it would be ideal if the new government was formed between the two rounds of the election ■ By Vera Didanović Photo by Zoran Petrović

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Parliament

I think that parliament has played an exceptionally important role in the development of democratic processes in Serbia.

Programme

So far, we have fulfilled 92% of the requests set by the National European Integration Programme. We have passed 196 laws out of 212 envisaged by the Programme

The EU

We do expect the EU to give us the date of the beginning of accession negotiations by the year end and are not basing this on enthusiasm alone.

S

lavica Đukić Dejanović is a political figure whose work in the last four years was rarely criticised, with the exception of protocol and procedural objections made at parliamentary sessions.

Unquestionably, her term as parliament speaker is going to be remembered for the enactment of a great number of new laws - 807 laws and over 200 bylaws and other acts, which is without parallel when compared to previous parliament speakers.

Professor, Doctor Slavica Đukić Dejanović is the current Speaker of Serbia’s National Parliament and the acting president of the Republic of Serbia - the second acting president in Serbian history following Boris Tadić’s resignation. She is a professor at the Kragujevac Faculty of Medicine and has been a member of the Socialist Party of Serbia since its formation.

■ How would you rate parliament’s work during the last mandate?

- I think that parliament has played an exceptionally important role in the development of democratic processes in Serbia. Parliaments should be the backbone of democratic development, Serbian Interior Minister Ivica Dačić (left) and Slavica Đukić Dejanović, Serbian especially in terms of leg- Parliament Speaker and acting Serbian President islation. Our current parliament has demonstrated Currently, the government is in a very difficult a good level of efficiency, position and not all government members have which has been validated by both Serbian citizens and demonstrated the same level of responsibility in the European Commission. terms of cooperating with parliament, especially We have passed 807 laws when they have been to parliament to defend or and 217 other acts during the last mandate which sur- elaborate on laws they were endorsing passes any previous parliamentary achievement and cannot be compared to any cannot be applied since the relevant bylaws have not other mandate. been enacted. What is the solution to this problem?

- The answer lies with the executive powers that are in charge of passing bylaws and implementing laws. If we ■ Undoubtedly, many laws have been enacted, but there is still a problem with their implementation. step up government supervision and increase the level of According to available data, one third of these laws responsibility of all government members, I believe that cordeditorial@cma.rs

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the problem could be quickly resolved, and I do hope that it will be usual practice following the 6th of May elections.

■ In harmonizing Serbian laws with those of the EU, how much has been completed so far? Also, when do you think that the process will finish and what are the most difficult tasks on the path to its conclusion?

- So far, we have fulfilled 92% of the requests set by

agenda, we first need to ascertain whether we are going to have an ordinary debate or vote on it. Parliament decided that the draft act was not a priority and, hence, did not put it on the agenda. Most of us believe the new parliament will reverse that decision.

■ Do you think that Serbia disposes of sufficient capacities in order to be given the date of accession negotiations with the EU?

- Yes, Serbia does dispose of the elements required to keep up with the prerequisites it has to fulfil in the accession process and we do expect the EU to give us the date of the beginning of accession negotiations by the year end. We are not basing this expectation on enthusiasm alone, but rather on the realistic harmonization of our everyday lives with the evaluation elements.

■ There were frequent instances of ministers not attending parliament sessions in order to present the laws they endorse to MPs. How would you rate the government’s attitude towards parliament?

-Currently, the government is in a very difficult position and not all government members have demonstrated the same level of responsibility in terms of cooperating with parliament, especially when they have been to parliament to defend or elaborate on laws they were endorsing.

Therefore, we often had to delay parliamentary sessions whilst waiting for certain ministers to show up. The media, on the other hand, were not particularly interested in reporting on parliament-government relations. I do hope that the future government will show much more responsibility when it comes to cooperation between these two state bodies.

Ivica Dačić was against the fact that Boris Tadić, in his capacity as president of both the Democratic Party and the state, started his presidential campaign before anybody else the National European Integration Programme. We have passed 196 laws out of 212 envisaged by the Programme. Most likely, the new government will devise a new version of the National Programme or it will accept the existing one in order for Serbia to fulfil its candidacy obligations prior to the beginning of accession negotiations. Anyhow, the umbrella document, which will be binding for us in terms of carrying out activities stipulated in the Programme and in providing future guidelines, will be devised relatively quickly.

■ The opening of Serbia’s secret files is one of the conditions imposed by the EU. Why hasn’t parliament discussed the draft Secret Files Act that was submitted by the Serbian Renewal Movement almost 15 months ago?

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- In order to include something in the parliamentary

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■ You were quoted as saying that “A comprehensive change of the Constitution is one of the very important issues which resolution had to start prior to the elections.” What changes to the Constitution are needed?

- It is still too early to talk what amendments should be made to the Constitution. There are quite a few proposals that we need do discuss and only after a thorough exchange of views between the appropriate state bodies are we going to have a clear picture of what elements of the Constitution should be amended. Suggestions were made about cutting back on the number of MPs, while some think that certain stipulations are further restricting development processes. This is something that the new parliament will have to discuss.

■ Do you think that the Constitution’s preamble, particularly the part which says that Kosovo is an integral part of Serbia, can be changed?

- One thing is certain – Serbia is never going to recognize Kosovo and Metohija’s independence.

■ When you were appointed you said that you never dreamed of becoming the acting President of Serbia.

During your term, did you experience situations that were totally foreign or unimaginable to you?

■ Whilst the former Serbian President, Boris Tadić, contemplated resigning and calling the presidential election earlier than expected, head of the Socialist Party of Serbia, Ivica Dačić, tried to convince him not to do so. Dačić’s main argument was that calling the

- No, I did not, because I have also been appointed to one of the top state positions – that of Parliament Speaker. By

It is for voters to decide on how the new government is formed. Ivica Dačić is our presidential candidate and we can talk about him being nominated to other positions once the elections are over

being the speaker, I was able to get thoroughly acquainted with the way in which top Serbian authorities work, but the tasks that a state president has to fulfil – like representing Serbia both at home and abroad, receiving ambassador credentials, handling national security issues and commanding the country’s army – are things that were new to me and I never dreamed of having to take on so much responsibility.

BORIS TADIĆ former Serbian President (left) and Slavica Đukić Dejanović, Serbian Parliament Speaker and acting Serbian President

election was in your hands and it was your decision as to whether they were to be held on the 6th May, i.e. on the same day as the parliamentary election.

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What was your rationale behind scheduling the elections on the same day?

- Ivica Dačić was not against early elections, but he did think that all presidential candidates should be given an equal amount of time to prepare and present their programmes. He was against the fact that Boris Tadić, in his capacity as the president of both the Democratic Party and the state, started his presidential campaign before anybody else. The decision to schedule presidential elections for the 6th May was based on practicality and rationality.

■ If the results of various public opinion polls come true, Boris Tadić and Tomislav Nikolić will make it to the second round of presidential elections. If that

■ What will the Socialist Party of Serbia’s position be following the elections? There has been talk that the Socialists will be the deciding factor when it comes to the Democratic Party or the Serbian Progressive Party forming the government. According to media reports, SPS will support the government in exchange for Ivica Dačić becoming the prime minister.

- It is for voters to decide on how the new government is formed. Ivica Dačić is our presidential candidate and we can talk about him being nominated to other positions once the elections are over.

■ Following the elections, what do you think your role in Serbia’s political life will be like?

- Very active!

■ Apart from being the acting Serbian President, you have had another rather unusual role – that of an actress. In the play called ‘Seven’, which talks about seven female activists and human rights advocates, you played Marina Pisklakova Parker who in 1993, despite the odds, manages to launch the first SOS telephone line for female victims of domestic violence in Russia. What motivated you to take part in the project?

Most likely, the new government will devise a new version of the National Programme or it will accept the existing one in order for Serbia to fulfil its candidacy obligations prior to the beginning of accession negotiations happens, which of the two candidates are the Socialists going to support?

■ How much has your career as a psychiatrist helped you in running Serbia’s Parliament?

- I am far more concerned about who’s going to support Ivica Dačić in the second round.

- Well, it did not get in the way since my profession dictates that I have to listen to other people, learn from them and understand them.

- The government needs to be formed quickly. We should not lose momentum in resolving our burning economic and social issues, and ideally the government should be formed between the two election rounds.

- I would like a woman to succeed me and I will inform her of everything that I have learned. Every parliament, including the new one, has its own dynamics and I think that the ‘first among equals’, whether male or female, is going to do a much better job than I did. ■

■ Do you think that the government will be formed prior to the second round of the presidential election?

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- The play, staged in Kragujevac, conveyed the message that women’s voices should be heard in order for the world to have a better future, for violence to be inexcusable and to put an end to abuse that nobody ever should suffer from. Those are the reasons why I accepted the role, not as an actress, but as a person who wanted to send out the same message, on the same day, October 21st, as the people in Šumarice regarding the crime committed there (Šumarice Memorial Park is the site of the execution of an estimated 2,300 men and boys from Kragujevac by the German occupation forces in 1941 – editor’s note).

The play was staged in my hometown of Kragujevac and I saw Marina Pisklakova Parker’s destiny as an autobiographical story about a woman who was high up in society and had a burning desire to fight for women’s rights.

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■ What advice would you give to your successor?

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Fear “I learned that courage was not the absence of fear, but the triumph over it. The brave man is not he who does not feel afraid, but he who conquers that fear.” — Nelson Mandela

global diary

home affairs minister Nkosazana Dlamini-Zuma, and to Kate Mantsho-Zuma who committed suicide.

Persistent Policeman

A Vietnamese traffic policeman went on a wild ride in Hanoi, clinging to the windshield wipers of a moving bus for nearly a kilometre, after the rogue driver tried to avoid a ticket, police explained.

Cherry Blossom Festival Children from Kawamata, Fukushima Prefecture, perform on traditional drums at a cherry blossom festival in Washington U.S.A. Their hometown in Japan was designated a no-go zone by the government after the

Stiff-legged Steps

Traffic policeman 2nd Lt. Nguyen Manh Phan ordered the bus driver to pull over the 39seat passenger coach, but the driver allegedly refused to show his paperwork and drove off – but not before Phan leaped onto the front of the vehicle. The officer said the bus reached a top speed of about 31 mph.

The driver, Phung Hong Phuong, eventually pulled over after being chased by police and residents. Even with the bus stopped, Phan stood calmly in front of it, still hanging on to the wipers.

Cardboard Cathedral New Zealand’s Anglican Church will build a temporary cathedral made of cardboard in earthquake-devastat-

North Korean female soldiers march during a mass military parade in Kim Il Sung Square in Pyongyang to celebrate 100 years since the birth of the North Korean founder Kim Il Sung.

The high-stepping precision marching on display by North Korean soldiers in recent photos is the latest in a long tradition of goose-stepping, performed to varying degrees by militaries around the world. European historian Norman Davies writes that the stiff-legged step originated in the Prussian Army in the 17th century. The march was meant to send “a clear set of messages” through the synchronicity of the marchers, their high kicks and their chins held high.The precision and height of the steps can be challenging. In 2010, India said it was modifying its nightly marching ritual at the border with Pakistan because the impact was harmful to soldiers’ joints.

Source: www.ibtimes.co.uk ed Christchurch as it works toward a permanent replacement for its 131-year old landmark destroyed last year.

The Victorian-era, Gothic-style cathedral, which dominated the city’s central square, was badly damaged in the February 2011 quake, and is being demolished.

The replacement, an A-frame structure designed

by Japanese architect Shigeru Ban, will be built on the site of another historic church, which was also destroyed in the 6.3 magnitude quake.

South Africa President, to Wed for 6th time...at 70

South African president Jacob Zuma, who turned 70 in midApril, married for the sixth time 14 |

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when he took his long-time fiancée, Bongi Ngema, as his sixth current wife, his spokesman said.

Polygamy forms part of Zulu

Zuma’s wives Bongi Ngema, Thobeka Madiba, Nompumelelo Ntuli and MaKhumalo

culture and is legal in South Africa, and Zuma, a Zulu traditionalist, has 21 children.

The ceremony took place in Nkandla in KwaZulu Natal province, Maharaj said. Zuma is also married to Sizakele Zuma, Nompumelelo Ntuli-Zuma and Tobeka Madiba-Zuma.

He was also married to

Fukushima No. 1 power plant was crippled by explosions and core meltdowns in March last year.

Eggs-traordinary

Geologists in Russia’s volatile Chechnya region have discovered what they believe to be fossilised dinosaur eggs laid by one of the huge extinct reptiles that roamed the Earth more than 60million years ago. But palaeontologists still need to determine which species of dinosaur had laid them The find was uncovered when a construction crew was blasting through a hillside to build a road near the region’s border with former Soviet Georgia in the Caucasus Mountains.

The richest man “Being the richest man in the cemetery doesn’t matter to me. Going to bed at night saying we’ve done something wonderful, that’s what matters to me.” — Steve Jobs

Saudi's Female Athletes

The International Olympic Committee (IOC) has said it is still talking to Saudi Arabia about sending women to the London Games.

IOC president Jacques Rogge’s comments came ten days after a Saudi newspaper reported that the country’s national Olympic committee President Prince Nawaf does “not approve” of sending female athletes.

“We’re still discussing with our colleague on the Saudi na-

tional Olympic committee. It is a bit too soon to come to conclusions,” said Mr Rogge.

Persistent Mountaineer

Gebrselassie, at a reception in the Vienna Hofburg, during the marathon weekend in Vienna. On the day after the honour, the two runners were involved in the OMV Champions Race, where the Ethiopian chased the British world

The President of Austria, Mr. Heinz Fischer, Paula Radcliffe and Haile Gebrselassie

marathon record holder (2:15:25) over the half marathon distance.

Having had to close a gap of 7:52 minutes Haile Gebrselassie still won comfortably with a time of 60:52 minutes compared to Paula Radcliffe’s 72:03 Some 36,000 participants ran on a bridge over the Danube river during the Vienna City Marathon on the 15th April.

Aquascutum Gone Bankrupt

The venerable British fashion brand that has been worn

by Winston Churchill and Margaret Thatcher, has been placed into receivership.

The company, founded by tailor John Emary in 1851, made its name producing raincoats. Emary devised the name from the Latin words “aqua” (water) and “scutum” (shield).

British soldiers wore Aquascutum coats in the Crimean war of 1853-56, and the company added a warm lining to the coat issued to British soldiers in World War I. Aquascutum says Humphrey Bogart and Peter Sellers wore its trench coat in films. It also claims King Edward VII, Sophia Loren, Greta Garbo, and Cary Grant are among its customers and produced the British team uniforms for the 1994 Winter Olympics and the 1996 Summer Olympics.

The decision to put the brand

Obama hosts the 134th Easter Egg Roll

Jaco van Gass tried out his prosthetic ice axe for the first time, while testing equipment before his team begin their climb of Mount Everest. Private van Gass, who lost his left arm in a rocket blast in Afghanistan in 2009, put his own invention through its paces, and realised it needed some minor adjustments.

Vienna City Marathon The President of Austria, Mr. Heinz Fischer, met athletics legends Paula Radcliffe and Haile

Though the demographic is diverse, marketers and consumer expOn the 10th April, 35,000 lucky children and their parents from all across America were invited to the White House to participate in the 134th Annual Easter Egg Roll, hosted by President Obama and his family.

Similar to last year, the theme dubbed Let’s Go, Let’s Play, Let’s Move’, was focused on Mrs. Obama’s goal to get kids active and included fun sports like basketball, soccer, yoga, dancing and even Double Dutch! In addition, the children got to cook (and eat) healthy snacks at the Kids Kitchen, under the supervision of world famous chefs.

into administration follows a change of ownership at Jaeger, another longtime British brand that had been united with Aquascutum under the ownership of entrepreneur Harold Tillman.

Rent a House to Own It

An island resort in the United Arab Emirates has come up with a residential complex where people will be able to rent an apartment for 3 years and at the end of the lease period, choose an option to own it.

The Tourism Development and Investment Company (TDIC) launched the lease-toown payment programme for the exclusive apartments at The Residences at The St. Regis Saadiyat Island Resort.

Under the three-year rent plan, prospective homeowners will pay annual rent which will be a fixed from the start of the agreement.

If the tenant decides to buy the property at the end of the plan,

100 percent of the first year’s rent, 90 percent of the second year’s rent and 80 percent of the third year’s rent will go towards the down-payment on the property.

The three-year lease-to-own plan includes benefits such as no exit penalty as well as the option to sub-lease the property for the duration of the plan.

Annual rent starts from 86,000 dirhams (around $23,400).

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interview Dr. Vesna Pešić, Doctor of Social Sciences

No Political Idea ■ By Zora Drčelić

Super-powers and foreign countries in general are only interested in Kosovo and in how to take our region off their agenda. They are not even vaguely interested about how we live or whether we have a proper judicial system, media industry or democracy. They view us, rightly so, as ‘bad pupils’ and a disturbing county that favours Russia and dislikes NATO. Also, Serbia has a bad reputation because of the 1990s wars since even we cannot conceal the fact that we bear the majority of responsibility for those wars 16 |

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D

r. Vesna Pešić was the first person to openly talk about the ‘political mafia’ in Serbia and the first to highlight that we have political party dictatorships. The people she talks about are keeping quiet, and that is probably the answer to the question as to why the anti-war activist and founder of the Civil Alliance of Serbia, Dr. Pešić, who holds PhDs in sociology, human rights, and is the founder of the Serbian chapter of the Helsinki Committee, left party politics after two decades. In the meantime, the Peščanik publisher released her book ‘Wild Society’ which informs us of why she

The LDP

LDP’s policy was such that it worked towards Jovanović’s private interests.

Corruption

The ‘mafia’ have created a political system to suit their own needs.

has decided to remain in politics after all, but has no affiliations to any political party whatsoever. “I am not withdrawing,” she said to the media about her unusual decision. “At the time when elections are just around the corner, when people are rushing to become members of political parties like there is no tomorrow, I have decided to remain true to myself and work as much as I can. That can be done outside of political parties,” Vesna Pešić says.

■ You have left party politics at a time when being a party member has become the most lucrative job in Serbia. What prompted the decision considering that during the elections, even people who have never been involved in politics are looking to become election candidates?

- Political parties should be places brewing with ideas on how to create a better future, where people talk, debate and express their opinions on how to appeal to voters. Today, any kind of political life in political parties has been extinguished.

The election system is very bad since you never know who you are voting for, i.e. you don’t know how the governing majority is going to be formed after the elections

They are now places where no debates take place since every party has its own absolute ruler who usually behaves as if the party is their private property, with party members being merely their employees who keep their mouths shut and avoid stepping on anyone else’s toes. That is why nothing significant is happening in Serbia’s political parties and there is no real political fight amongst them as they have already reached an agreement on how to divide not only the spoils but power too. In the 1990s, things were different, perhaps not in all parties, but I know for certain that they were different in the Democratic Party and Civil Alliance of Serbia (GSS).

While I was the GSS president, I had to be well prepared for discussions that ensued at the party’s sessions and, occasionally, I really struggled to fend off criticism.

■ Seemingly your experience in the Liberal Democratic Party (LDP) was completely different which prompted you to leave the party.

- I was sure that the LDP was different to all other parties, and that it was a real alternative to what was on offer in this country. Although, that is just how the party presented itself – as a liberal-democratic option that advocated democratic values.

In the end, the Civil Alliance of Serbia blended with the LDP

Elections

Serbian citizens have no choice and many will abstain from voting.

which always promoted itself as being totally different to other political parties in the country. As it turns out, the party’s head was eager to abandon this alternative approach, join a corrupt system and succumb to his own materialistic interests. Hence, the party voted in favour of the notorious Information Act and rigged judicial reform. LDP explained this decision by wanting to get closer to the Democratic Party in order to form a coalition with them following the elections. That was totally unacceptable to me. LDP’s policy was such that it worked towards Jovanović’s private interests and everything else, including political talks, was pure manipulation. He received support from foreign embassies because of Kosovo, and in his criticisms of nationalism, which is the only worthy thing that he did - it was actually the Civil Alliance’s anti-nationalistic policy that he copied in order to differentiate himself from the Democratic Party. He, himself, had no political ideas of his own.

■ So, as you say, there were strong interest groups.

Who are you referring to when you talk about the ‘political mafia’?

- Just look at the Democratic Party. It is a party of tycoons,

people who have their own companies and frequently find themselves in conflicts of interest because they generate huge profits for their companies due to their political engagement. The Democratic Party allows them to do that and the public is keeping mum about the issue. Even the AntiCorruption Agency is not saying anything since they are all personally controlled by Boris Tadić. He also controls the media, the police, the prosecution office, courts etc. He doesn’t need independent institutions. Consequently through exercising authoritative power and having no ideological backbone, politicians have become members of the same class as their financiers – the tycoons. Look at cordeditorial@cma.rs

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the recent arrests of the people who stole the Cezanne painting from the Zürich Museum. There are maybe ten people in Serbia who can pay 3.5 million euros for a painting worth that kind of money, but nobody is saying who the prospective buyer was. Their name is purposefully hidden under the pretence of an undercover investigation, just like how we have

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cal party, has nothing do with the citizens and their situation at the local level. It gives great power to parties and their financiers, the system creates a social group out of politicians and anybody closely connected to the state i.e. a group that has its own interests. The result of this is that they are further removed from the public’s will, with citizens becoming a minor factor and thus relatively insignificant. The governing clique is not willing to change the system as it wants to keep everybody in the same pot so to speak. They are all same because all they care about is power and money. Evidently, that is why we don’t have a clear distinction between the left and right centre and why entire regions of Serbia are not properly represented. Slovenia has 10 constituencies, whilst Croatia has 12 which makes their political spectrum far better defined.

In Serbia, all we have is a shapeless mass. Parties are not known for their programmes but rather their personalities which never changes. Politics here is a dead sea, even in the midst of elections.

■ There is an urban myth that says foreign embassies are the deciding factor in the elections and not the Serbian Government. Do you believe the myth? never found out who hid Ratko Mladić. Why was that never - I would say that both super-powers and foreign countries revealed? Because it was the state who was hiding him. in general are only interested in Kosovo and in how to take Top party officials and tycoons are protected and state insti- our region off their agenda. They are not even vaguely intutions work for them. Even when they break the law, they terested about how we live or whether we have a proper are not held accountable by courts. That’s why I collectively judicial system, media industry or democracy. They view call them – political mafia. They – the mafia – have created us, rightly so, as ‘bad pupils’ and a disturbing country that a political system to suit their own needs. What remains of favours Russia and dislikes NATO. Also, Serbia has a bad that is the state in ruins. reputation because of the 1990s wars since even we cannot conceal the fact that we bear the majority of responsibility ■ Do you think that our election system is un- for those wars.

The things that we notice internally are not of interest to satisfactory?

- The election system is very bad since you never know who foreigners. For instance, Boris Tadić is breaching our Conyou are voting for, i.e. you don’t know how the governing stitution which, correctly, stipulates that parliamentary majority is going to be formed after the elections. A sys- and presidential elections should not be held at the same time and that the tem such as this presidents and dilutes politigovernment’s cal differences There are maybe ten people in Serbia who can terms should since, in order pay 3.5 million euros for the Cezanne painting, but not last the same for a certain parnobody is saying who the prospective buyer was amount of time. ty to enter govTadić couldn’t ernment, everybody is open to forming a coalition with everybody else, care less about that since he and his political allies have which is now called ‘coalition potential’. That’s why there made a deal about forming a government between the two isn’t much difference between parties any more and this election rounds and every political party that enters the is a result of the so-called ‘proportional system’ where the government is supposed to instruct its voters to vote for whole of Serbia is considered one constituency. The current him. All along he has broken the Constitution by imposelections are a perfect example of this. Everything has been ing himself as a prime minister and pulling the strings in staged in advance, with Boris Tadić’s decision to resign his government via his ‘employees’, despite the fact that as presidential mandate playing a very significant role. Serbian president he was not authorized to do so. Foreigners are citizens have no choice and many will abstain from voting as not interested in that. All they want to see is the continuation of negotiations regarding Kosovo and as negotiations they know that everything has already been put in place.

The list of the future 250 MPs, nominated by each politi- started during Tadić’s time, they think that it would be 93 May 2012

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best to continue in the same fashion. They are looking after their own interests and I don’t blame them. It is up to us to be smart and take care of ourselves. They certainly won’t do it for us.

■ Ironically, in the past, western countries called Milošević ‘the factor of peace and stability in the Balkans’.

- While we rallied and demonstrated against Milošević, the U.S. embassy Charge d’Affaires Richard Miles held a press conference with Milošević’s Socialists in Niš. They then came up with the idea that Milošević should be brought down via

so-called partocracy, tycoons running the state and corruption are not much of interest to them. Candidate status would not have been possible if the Kosovo problem hadn’t been tackled.

The same will apply to setting a date for the beginning of ac-

Super-powers are lenient towards Serbia since the country doesn’t pose a threat. We don’t have a clear consensus about anything

NATO bombings and then went on to help the opposition.

Prior to that time, and after the Dayton Agreement, Milošević was indeed considered ‘the factor of peace and stability in the Balkans’. What western countries find important and the way in which they solve problems in Serbia doesn’t mean it is for our benefit. The best example of that is post-Dayton Bosnia. The Agreement did stop the war, but it also imposed an ethnically deviant political system in Bosnia and Herzegovina. The country could not embark on a new life as anybody who is not capable of solving their own problems or who deals with them in a wrong way – through wars, discrimination and crime - can. Their regrettable destiny is their own making. In all of that, Serbia poses a great problem since its elite class and the majority of its citizens are not naturally inclined towards the West. People here worship Russia in droves, which is not the case in other East European countries. Hence, this country is still a problem, not only for the EU, but to ourselves as I don’t see what we can possibly learn from a country as backward and authoritative as Russia.

That is the reason why foreigners are more interested in that side of things rather than, let’s say, our judiciary.

■ What do you mean when you say they are not interested in our judiciary? Once accession negotiations with the EU start, some of the most important issues to be discussed will revolve around the judiciary and corruption. Based on the Union’s experience with Bulgaria, Romania and Croatia, they could open up a series of rather unpleasant chapters with Serbia.

- So, when is that going to be on the agenda? Croatia will join the EU in 2013, and, in following period of eight to ten years, the EU will not accept new members. They have enough time to do that and, the fact is, the very constitution of the EU is a problem in itself. I am not simply referring to the economic crisis, but the fact that the EU hasn’t managed to generate enough political and financial unity to decide about its internal problems.

At present, they are interested in Kosovo, while the talk about

cession negotiations. Super-powers are lenient towards Serbia since the country doesn’t pose a threat. We don’t have a clear consensus about anything and have therefore given us candidate status so that we don’t stay isolated. It’s a good thing they did. This is much better for us than if they let us go. It is better to

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have some kind of direction rather than having none at all.

■ What do we need to do?

- The first steps should be in the pursuit of peace and stability, followed by democracy and liberal values, if that can ever happen. That is a big issue and most Central American countries, for instance, still have a long way to go despite being close neighbours of the U.S. The situation is similar in our case.

■ The European Commission’s report gave a good review of Serbia’s judiciary reform.

- The European Commission’s report, which gave a positive opinion on Serbia’s progress and judiciary reform, has nothing to do with the truth. The EU’s observation mission, which closely followed judiciary reform, has noticed great irregularities, a serious lack of transparency, sloppiness and political pressures during the reform whilst the EC’s report says that the judiciary reform was adequate although certain technical shortages were detected. This proves what I’ve been saying all along – these issues are not important – Kosovo, instability in Northern Kosovo, its integration and establishing good neighbourly relations which results in Serbia recognizing Kosovo’s independence are.

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not benefit from that at all. It is interesting to note that many individuals, who are the most vocal about opening these secret files, have actually worked for the secret service. They know all too well that the files will not be opened and that’s why they are insisting on it.

■ What about the rehabilitation of Draža Mihailović?

This has become a regional issue. Croatia has reacted, as has Bosnia, while Jelko Kaćin said that rehabilitating Mihailović would hinder Serbia on its path to the EU. -This is a pointless subject that has been imposed by the government and certain parties like the Serbian Renewal Movement (SPO).

Mihailović was not tried by a mock court but rather a court that resembled a European one which tried Nazi collaborators. Draža Mihailović is a war criminal and I have never questioned that. History also has its take on that and now, almost half a century later, a court is supposed to review Draža Mihailović’s role. Commissions have been set up that claim Mihailović never collaborated with the Nazis. They claim that his role was a fabrication, that it was all Communist propaganda. It is not possible since courts have no resources or capacity to decide in such cases.

■ What do you think about the Serbian media today, particu■ Recently, amidst the elecCroatia will join the EU larly during the election camtion campaign, the matter of paigns and the role they play in opening the intelligence servin 2013, and, in following ices’ secret files, created after period of eight to ten years, advertising politicians and political parties?

WWII, has been brought up the EU will not accept new -I am horrified to the extent journalfollowing a recommendation from the European Parliament. ists are humiliated and blackmailed members Vuk Drašković supported the in this country. I am also shocked initiative and there was extensive media coverage. Is by the results of certain ‘public opinion polls’ which have been this the right thing to do? broadcast on TV stations daily during this election campaign.

- They are all pre-election lies, spin stories and a part of folk- You can clearly see that they have been rigged and you have lore that nobody will take seriously. Now, for example, they journalists who try with all their might to explain who will vote are insisting that the people who set the U.S. embassy and for whom. Journalists are blackmailed and occasionally accept others on fire during the Kosovo rally are punished, but no- as they work for measly salaries, the pittance given to them body is asking why they haven’t been already. My belief is that by the state.... Most media stories live for only one day and are those hooligans will stay in prison during the elections as long then quickly forgotten. For example, there was a story that Vuk as the Americans are ‘standing on their heads’, but they will Jeremić (the current Foreign Minister, author’s note) cheated on be released immediately after the elections. Sadly our courts air fares, but nobody is talking about that any more. We never still haven’t sentenced the people responsible for killing the know whether the prosecution will open a case or not. There is Bitići brothers. Now, this case is being re-opened because the another phenomenon here worth mentioning. We can write and Americans have called for it and since Tadić needs their sup- speak about whatever we want, but the authorities have become port to fulfil his own election interests. Ordinary citizens will indurate and are not concerned with we know about them. ■ 93 May 2012

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interview Dušan Bajatović, General Director of Srbijagas

Interests Determine

Cooperation

Serbia needs strategic partnerships with companies like General Electric and Gazprom. These partnerships are compatible and add value to projects. If cooperation on the Nord Stream project was good, I see no reason as to why it shouldn’t be equally as good, if not better, on the South Stream project.

■ General Electric wants to get involved in constructing gas power plants, main gas pipelines, the South Stream pipeline and underground gas storage in Serbia. Which of these projects is closest to implementation?

- Negotiations are pending and both sides have great expectations. We too want General Electric to get involved and the South Stream is the basis for the projects you’ve mentioned, with many of them technologically linked and generally inter-connected.

Serbia needs strategic partnerships with renowned companies like General Electric and Gazprom. These partnerships are compatible and add value, not only to the projects themselves, but for everyone involved in their implementation.

S

erbia’s most important gas company, Srbijagas, has been negotiating with one of the biggest U.S. companies, General Electric, about potential investments in the Serbian energy sector for some time now. Talks, which began in Washington in early 2011, continued at the Belgrade Energy Fair last autumn and have recently been resumed. Due to the importance of the negotiations, we have asked the general director of Srbijagas, Dušan Bajatović what the two sides have been talking about, the kind of projects that are being discussed and how far the talks have advanced.

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■ Srbijagas relies on Russian suppliers while General Electric is one of the biggest American companies. How are you going to reconcile East and West on Serbian territory?

- Srbijagas does rely on Russian gas suppliers because that makes the most geographic and economic sense. East-West cooperation is in the best interests of Serbian, Russian and American capital and it is up to us to take what is best from each of our partner companies, make sure that the projects design and construction are going according to plan and ensure that it is profitable. I see no problem in reconciling East and West. This is a business arrangement that we are all interested in. As everyone cooperated so well on the Nord Stream, I see no reason as to why they should not do the same in regard to the South Stream, and German companies,

like Siemens, possess great initiative, technology and experience when it comes to these types of projects. Our aim is to provide a strong link between our Russian, American and European partners, the Serbian economy and to efficiently manage projects.

Investment activities across Europe and the region have declined due to the economic downturn. This is a project that appeals to capital, investors and manufacturers. Gazprom’s experiences with similar energy projects are excellent with the company’s profit from such projects running into double digits and consequently, this current crisis creates opportunities both for Serbia and Srbijagas. The Russians are our strategic partners and they guarantee the safe supply and stability of gas price, and General Electric has its own internal financing system and advanced technology.

The arrangement will be functional and complex at the same time, with some of the investment money coming from partners and some obtained through loans. We have excellent cooperation with Gazprom - there is this internal joke circulating in Gazprom where they call us ‘3 in 1’. We are a stakeholder, a strategic partner and a project planner.

Both companies’ mutual needs are strategic, long-term and complementary, hence we are expanding our cooperation and are setting up a bank, an insurance company and an investment fund.

The European Commission’s stance is not final. After all, the Russians are negotiating with individual states whose economic, energy and strategic interests are involved in the project.

■ Regional countries are interested in participating in the project, as is Italy which has signed an agreement with the Russian side stipulating the construction of this pipeline. What are the immediate benefits of participating in the project for Srbijagas and Serbia?

- From a geo-strategic point of view, Serbia will play an energy role in the South Stream that has so far belonged to Hungary. The importance of Hungary’s strategic gas storage is diminishing, while the importance of Serbian gas storage is growing. We are becoming a regional energy hub.

■ There is talk that the implementation of the South Stream project could continue in the autumn. Bearing in mind the objections Our idea is to combine Serbian, Russian, German made by the European Commission, on one side, and Rusand American capital and build four large-scale sia’s determination to implecogeneration gas power plants in Serbia ment this project on the other, what kind of development direction and dynamics will the South Stream take?

The regional geo-strategic energy game is changing, and the immediate benefits, aside from stability in energy supply, is - Construction of the pipeline’s section in Serbia will begin in the new development opportunities for the domestic energy November, so we have progressed from just talking about it sector, environmental benefits, lower transport costs and dito actually having something concrete. All of us at Srbijagas rect annual revenue from gas transit fees in the amount of are proud of everything that has been done so far. Srbijagas 200 million euros. Each year, the Republic of Serbia’s budget is conducting South Stream’s project design and the state of will get 200 million euros from fees alone. Plus, there is enSerbia is not only participating in large-scale international ergy consumption, salaries, taxes, contributions etc. projects but also has the company that is the project leader, which hasn’t happened in the last thirty years. We did a lot of work and very little marketing, so the public in Serbia is not ■ What is Srbijagas’ role in the new consortium aware of the project’s huge economic importance. This is a made of companies, which Gazprom is also sup1.7 billion euro investment, which is more than all of investposed to get involved with, that are going to build a ments made in Serbia during 2011 combined and we will thermal and heating power plant in Novi Sad? have to deploy nearly the entire Serbian construction sec- Srbijagas is a gas supplier but I doubt that the relevant tentor’s machinery, and even that is not going to be enough. We der, in its present form, will be successful. We require straneed to dig a 450 kilometre long, 3 metre wide and 3 metre tegic partnership with the Russians. The price of gas, as the deep trench and that is only one part of the project as we are key input component, needs to be closely tied to the price of also going to directly engage at least 3,000 workers and as electricity on the market, thus we need to make a deal with many subcontractors who are going to deliver parts, equipGazprom. Secondly, the agreement should be long-term, ment and maintain machinery and devices. The project will lasting for at least 15 or 20 years, which is the amount of pay itself off in 12 years. time we need to get a return on the investment. cordeditorial@cma.rs

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The Serbian energy market is very specific and known for uneven consumption which is why gas power plants are a good solution since they can quickly react in peak times, i.e. during increased consumption. In that respect they are very flexible. Our idea is to combine Serbian, Russian, German and American capital and build four large-scale cogeneration gas power plants in Serbia two should be built in Belgrade, one in Novi Sad and one in Niš. Apart from electricity, these towns would also get thermal energy from us. The problem with existing heating plants is that they are not energy efficient and they use up to 30% more gas to produce heat. The new facilities will be considerably more efficient and we could use the money that we would save on energy consumption to pay off a loan for at least one of these plants.

tricity has constantly grown in the region, I am confident that the number of the needed gas power plants will grow, as will gas consumption.

■ There has been a lot of talk about public-private partnerships in Serbia. Do you, as in Srbijagas, see a need to establish a cooperation format?

- The opportunity lies in big strategic projects. Such partnerships make utilization of state-owned resources, on one hand, and resources owned by private companies and citizens, on the other, much more efficient.

We are involving companies like General Electric since they offer funding, joint investments and a readiness to establish long-term partnerships.

Nevertheless, this is by no means the only format of publicprivate partnership. We could also float shares of these gas power plants on the stock exchange. Citizens and domestic companies could invest their money in an industrial branch that is sure to yield double digit profit. Look at the projects that Gazprom has implemented all over Europe.

The money they generate is much higher than any interest rates you get from banks. Why would you save in a bank at an interest rate of only 2% or 3% per annum? The answer is what public-private partnership is all about!

■ Srbijagas has huge claims in a substantial number of bankrupt companies in Serbia, which declared bankruptcy following badly executed privatizations. You have managed to revive one of the factories – Serbian Glass Factory from Paraćin – and sell it off. Did you manage to settle your claims following the sale?

- The privatization was bad and its effects were catastrophic - many of the sales contracts were terminated. Good companies ceased operations and we have become more dependent Dušan Bajatović, CEO Serbiagas (left) and H.E. Mr. AleksANDAR KONUZIN, Russian Ambasador to Serbia on import than ever before. Simply put, the state didn’t do its job properly. Moreover, on occasion, invesConstruction of the South Stream pipeline tors were not aware of what they were section in Serbia will begin in November, so buying and the state often had no clue at all to whom it was selling to. we have progressed from just talking about as We entered these companies following a it to actually having something concrete. All recommendation from the Serbian Government. Each of them was in serious of us in Srbijagas are proud of everything trouble and Srbijagas’ claims were subthat has been done so far stantial. We have managed to convert the claims into an ownership stake.

■ Over the next decade, how is the Serbian gas disFirstly, we resolved existing legal and ownership issues, tribution system going to develop and how much then we combed through their balance sheets. At the same gas is needed to satisfy the demands of future distime, we talked to trade unions and the result of our aptribution systems? proach was the stabilization of business operations and - When you say distribution, I presume you mean the reconstructive relationships with both the company’s mantail price of gas and are asking about the overall quantity agement and trade unions. Each of these companies had a of gas. With only two of the aforementioned gas power good market share and solid potential so it was in everyplants, and industrial output as projected by the Serbian body’s interest to save and develop them. We articulated, Government by 2020, gas consumption would amount to consolidated and efficiently managed their best interests 5 billion cubic metres. However, since the need for elec24 |

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and that’s why we have managed to accomplish great results over a relatively short period of time.

Our aim was to find strategic partners for them so that we could make each of the aforementioned companies competitive, fully operational and profitable.

Finally we did manage to fully settle our claims and get an investment return in the case of the Serbian Glass Factory.

That was the underlying idea of the takeover and is also the case with Azotara (Fertilizer Plant), MSK (Methanol & Acetic Acid Complex) and Agroživ.

■ Currently, Srbijagas’ claims are in the region of 700 million euros. At the time of overall illiquidity, how are you going to settle these claims and how much is the state helping you in overcoming the liquidity problem?

- After Romania, Serbia has the lowest price of gas in the region. Price is not the problem with settling our claims, nor is Srbijagas, since our share in the gas price for households (which stands at 36 dinars) is 1.3 dinars or close to 3%. It is state policy that is the problem; specifically it is the state’s official development, energy, monetary and social policy.

First of all, the whole system is not liquid. Businesses have no money and loans are awfully expensive. Salaries in Serbia are low and one employed person has to cover the costs of five unemployed people, which is simply unsustainable.

Secondly, there is the so-called system deficit which, thanks to the state, has been growing year-on-year because the authorities are desperate to maintain social

projects. Proper parity and a subsidy system in agriculture are essential, as is having a bigger agricultural budget and an agricultural bank.

The fact that some of the financial claims that Srbijagas has are going to be converted into Serbia’s public debt is a result of government policy. Although, that will help us, it is, by no means, a permanent solution since Serbian taxpayers will pay for this public debt which means that poverty will simply be re-distributed.

The new government must provide answers to all of Serbia’s difficult questions and we cannot exercise social policy via gas price.

■ You recently announced that the price of gas would be reduced following the signing of a new intergovernmental agreement with Russia. How

The new government must provide answers to all of Serbia’s difficult questions and we cannot exercise social policy via gas price

peace. Srbijagas now plays the role that the Petroleum Industry of Serbia (NIS) had in the past that, yet again, is unsustainable, i.e. to sell gas at a price that is lower than the price we purchase it for.

Thirdly, invoices are settled, on average, in 295 days. Our invoices are in dinars and we pay in euros which created an additional cost increase of 10% last year due to foreign currency exchange rate fluctuations.

The solution is not for the state to start helping Srbijagas. We expect the state to be efficient and to implement what has been agreed within the set deadlines and without delay, and we expect them to change the business environment and the system as a whole. We keep on pumping in gas while the system continues to leak.

In addition, the Serbian economy needs to be re-industrialized and we need to implement several large-scale export orientated projects, which have been launched by the state and rely on SMEs. We need to set up an incentive programme for these small companies that rely on big

Dušan Bajatović (left), ALEKSEJ MILER and BORIS TADIĆ

realistic is that in the light of the fact that energy products are becoming increasingly expensive?

- This year, we have been granted a 12% discount on the gas price that means we have reduced the basic price which depends on the price of crude oil. So, the logical question is – why didn’t we reduce the gas price paid by households and the industry?

The answer is very simple – Srbijagas sells gas at a price that is 30% lower than the import price. You don’t have to be a mathematician to know that twelve is less than thirty. Once this long-term intergovernmental treaty is signed (its validity is 10 years) we will be granted an additional discount. Even then, the retail price of gas is not going to fall since it will continue to be lower than the import price.

The good thing about this agreement with Gazprom is that we, as in the state, are going to reduce the system deficit by paying fewer dollars to Russia. ■ cordeditorial@cma.rs

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interview Saša Janković, ombudsman

Most Complaints Bureaucracy

When, almost five years ago, Saša Janković became the first ombudsman in Serbia, he held a press conference in a park in front of the National Parliament building since he had no office of his own.

“Following the ombudsman’s proposal, the Serbian Constitutional Court declared one law almost entirely unconstitutional and we are still waiting for the Court to decide whether two other laws are in accordance with the Constitution,” said Mr. Janković during this interview.

■ Serbia has set up the office of the ombudsman very late, nearly two centuries after Sweden and several decades after most European states, including our neigh26 |

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bours. What are the main characteristics of the Serbian ombudsman office and can we say that, following your first term in office, the institution of the ombudsman is now firmly established?

- Serbia got its ombudsman following strong suggestions made by the international community (and also because it was a prerequisite that Serbia had to fulfil in order to join the Council of Europe), and efforts put in by the NGO sector. The office of ombudsman was not established because the state administration and the government concluded that it needed independent control. When I was appointed by parliament, I said that the office of ombudsman would prove its worth only if it visibly and substantially contributed to the democratization of relations between citizens and the people in power. The question was how to do so? Following the elections and the swearing-in ceremony, I remember I gave my first interview in the park near parliament as I had no office, employees, official stamp, budget, computer,

envelopes or stamps. The media went crazy over the fact that we now had an ombudsman. At the same time, citizens started sending me their complaints, to either the National Parliament’s address or OSCE’s offices where I used to work, before the elections even started.

Today, five difficult years later, we are accomplishing our goals, i.e. protecting and advancing citizen rights through control of the state authorities. Last year, the ombudsman, three deputies and close to 30 co-workers dealt with 12,000 citizen complaints with the number of submitted complaints growing 30% yearon-year. In the last five years, citizens have filed 10,600 official complaints regarding the work done by the authorities, with a total of 8,300 complaints resolved which means that 2,300 complaints are still pending. Parliament and the government gave the green light to 37 out of nearly 140 normative and legislative initiatives that I submitted.

According to independent public opinion polls, citizens have more trust in the ombudsman than classic authorities and over 90% of them believe that our society needs a body like ombudsman. That has also been verified by us being given ‘A’ status by the United Nations independent human rights protection body.

Serbia has never had an institution which is in charge of exer-

Tens of thousands of workers are being stripped of their constitutional rights because the state has turned a blind eye to employers purposefully breaching labour law

cising independent control of public authorities and providing citizen support, hence five years for firmly establishing this institution is not enough.

It is important to mention that nobody dares, or rarely dares to contest the authority of ombudsman and citizens recognize the importance of this institution, which makes it very difficult for the authorities to close down the office or drastically reduces its jurisdiction.

■ So, you are satisfied?

- No, I am not satisfied. A lot of time has been lost and the fact that we now live in somewhat better lives than during the time of the 1990s hyperinflation does not mean that we should compare the present to an era of repression and wars in Serbia. Also, initial progress doesn’t mean that the institution of ombudsman cannot collapse or be discredited. We should not be under the illusion that the government is looking forward to being closely supervised. One of the ways used by the executive powers to weaken this supervision is fragmentation. Recently, my associates attended a meeting of welfare centres which we often oversee in terms of respecting children and welfare families’ rights.

At the end of the meeting, representatives of the line ministry said that the ombudsman’s supervision was too frequent and

went too deep, they added that if it did not change, the ministry would urge parliament to rethink the Act on Special Children Rights Ombudsman meaning that the office of ombudsman would not be entitled to deal with children rights issues. Worryingly, most of the people attending the meeting agreed with that. My response to the whole situation is that our supervision will be even more intense since complaints are growing in substantial numbers.

■ Do you think that ombudsman’s office has enough capacity to deal with all the submitted complaints and meet citizen expectations and needs?

- No, I don’t. The number of complaints grows by nearly 40% every year, while the number of completed processes in 2011 went up by only several percent meaning that the office’s capacity has been reached. In my last submitted report to parliament, I warned that the ombudsman’s office is having to deal with great pressure from citizens, which is justified, and that the institution could collapse in the face of big hurdles and imposed limitations. That’s why I launched an initiative for the Ombudsman Act to be amended. The government has accepted my initiative and forwarded it to parliament. However, parliament say

that it simply won’t have enough time to deal with it or have time to appoint a new ombudsman within the legally set time limit as we are in a pre-election period.

■ What stance does the state administration have towards the ombudsman today?

- There is a huge difference in how the state administration handled us at the very beginning and the public authorities, institutions and public’s current attitude toward us. Presently, the administration is aware of the fact that an independent control body can knock on their door at any time and will dig out irregularities if any exist. They are also aware that one phone call to the people in power will not make much difference to us pursuing potential irregularities. At the same time, an increasing number of civil servants see the ombudsman as support in creating a more professional environment in their work place cordeditorial@cma.rs

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and for getting rid of corruption and laziness that they have often been associated with despite the fact that many of them work in a very dedicated and responsible manner.

■ What do citizens mostly complain about?

- Complaints often revolve around lengthy, illogical, bureaucratized administrative processes and procedures which stop them exercising their rights and the needless hurdles imposed on them. The administration makes mistakes and citizens try to correct them. Often, there is no proper explanation as to why a certain decision has been made and sometimes authorities choose not to abide by the law saying that it is simply “not expedient” or interpret the law in a way that an educated and responsible civil servant cannot understand. The shadow of corruption envelopes nearly every area of life in Serbia.

that thousands of people will have to ask themselves whether they have really earned the salary they get from the state budget and if they conclude that they haven’t, they should be willing to resign. The money that we would save by doing this could be re-directed toward investments and new jobs which are things that we really need. I don’t think that we are ready to go through with that since the wave of discontent would be too big for the current government to handle.

■ Following the relocation of the Roma families from slums, Belgrade’s authorities and the mayor became the centre of attention in the public eye and international institutions. Do you think that it is good for these Roma families and did the local authorities adhere to the relevant international standards in this matter?

- Several years ago, Belgrade started to deal with the problem of unhygienic illegal slums which is a problem that has been ignored for decades and has grown to huge proportions. My co-workers counted over 100 slums. The city authorities started to resolve this problem by selling the land at which some of the slums were located. They were primarily focused on the property issue rather than on human destinies which led to several initial mistakes being made that were, fortunately, quickly rectified.

The city understood that the problem of the Roma people is not only the lack of proper housing, but also their education, having no IDs, proper healthcare, employment and elementary equality. What the city authorities did was not a deliberate mistake and didn’t go against human rights standards. The city is relocating people who are living very undignified lives, in filth, poverty and total social isolation and moving them to better housing they have electric■ Is there a remedy to Instead of cutting down corruption when where ity and running water so fight against this? it was very much in the open, we bragged they don’t have to steal - Of course there is, but we are still not ready to about new institutions, were vocal about to get by is far better for Of course, some administer it, hence all our wishes and hence lost the element of them. people have criticized this we do is treat the sympsurprise decision, and we should toms rather than the dislisten to constructive critiease. Our state adminiscism, as well as accept the help offered by international organitration is in this shape because it has not adapted to quality and zations. The people living in these slums are not being thrown efficiency demands, but rather to social benefit and partyization. out of their apartments, they are relocated from open fields and Despite authorities saying otherwise, and announcing “historic moved to what would Americans would call ‘trailer homes’. Anyreforms and rationalization”, the number of civil servants keeps body who says that their relocation constitutes a breach of huon growing in order for the government to maintain social peace man rights is not objective or realistic. and, allegedly, reduce unemployment. These newly employed civil servants are usually affiliated with certain political parties and this is where political parties draw their informal power and ■ Ever since the beginning of your mandate, you have advoexpand their influence. cated worker rights. Today, this topic attracts much more The only administration that will work in favour of citizens’ attention than five years ago. What has changed and what long-term interests is one that is not big, is well-organized, prostill needs to be done? fessional, highly responsible and well paid, and only employs - Tens of thousands of workers are being stripped of their constituexperts. Only then are laws going to be implemented in a fast, tional rights because the state has turned a blind eye to employers precise, transparent, fair and purposeful manner and thus there purposefully breaching labour law by not paying their legally binding will be fewer complaints and appeals while both energy and financial obligations for social, health and pension insurance. time will be spent on more productive issues. This also means The only logical and fair thing to do would be for employees to

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have all their rights guaranteed, which is stated in the Constitution. For over a decade, the state has been very lenient toward employers (some of them used this freedom to get very rich off other peoples hard work) and they expect workers to get by any way they can.

Since the government chose not to heed the warnings in my annual reports, I am getting ready to launch a formal initiative for constitutionally guaranteed employee rights to be recognized where workers simply have to prove that they are employed. In this way, the state authorities will be obligated to sue the employer or use any other legal means to force them to pay what they owe for pension and health insurance.

■ Is the solution going to be a problem for employers?

- It is a well-known fact that only a satisfied and properly motivated worker is a productive one. If an employer refuses to abuse an employee’s difficult position and is concentrated on generating longterm profit by developing a harmonious working environment,

Last year, the ombudsman, three deputies and close to 30 co-workers dealt with 12,000 citizen complaints, with the number of submitted complaints growing 30% year-on-year

then there is no fear that workers’ rights not being respected. At the same time, we need to put a stop to this hysteria where every single time somebody shouts ‘mobbing’, ‘discrimination’ or ‘crime’ we immediately start advocating their rights. Of course both the private and public sectors need good workers. The solution does not lie in passing new and more detailed laws and bylaws or in computers selecting new employees in line with mathematical criteria, but in civil servants doing meaningful work and being responsible, as their managers should be.

■ Why is Serbia so riddled with corruption and can we eradicate it within a set timeframe?

- Corruption is a big problem that cannot be resolved by simply crying ‘foul’. I believe that corruption can be eradicated much faster than anybody believes bearing in mind its dimensions. The larger problem lies in the fact that, over the years, corruption has entered and altered human conscience. Recently, I received a complaint from a man whose rights were violated because a director of a local health clinic only hired him for a limited amount of time rather than permanently. The director told this man that he would get a permanent job only if he voted for him at local elections. I believe that corruption is not embedded in our national mentality or the state and that it can be efficiently eradicated with concrete and inventive measures. Instead of cutting down corruption when it was very much in the open, we bragged about new institutions, were vocal about our wishes and hence lost the element of surprise. Now, we need to figure out a new and more intelligent way to battle this very real issue.■

focus

Austerity Programme

Short-term Measures I

n late March of 2012 the Serbian Government adopted the Austerity Programme which entails budget savings in the amount of 15.7 billion dinars by the year end. The austerity measures, however, do not apply to the salaries of budget beneficiaries and civil servants or pensions, social contributions and other budget funded incentives. The measures pertain to a reduction in funds spent by the government and ministries where some of their own revenues will be re-directed to the general budget revenue which will save 10.9 billion dinars, as well in cutting back on the socalled discretional spending (travel costs, NGO funding, payment of contracted services, acquisition of equipment etc.). The government says that the measures have been devised due to a 20% decline in the budget revenue in February and not because of an increase in spending by the government and ministries.

Hence, CorD has asked some of the leading experts the following question: Are the new austerity measures adequate or should the government have been stricter in their approach to cuts?

Also, in which areas should these measures be applied?

Consistency is Absent Prof. Dr. Nebojša Savić, FEFA, Faculty of Economics, Finance and Administration

T

he problem with Serbia lies in the fact that during the years of prosperity, when growth rates were remarkably positive, there was no official policy that prompted the state to ‘save for a rainy day’ so to speak. Instead of that, the relatively favourable circumstances back then, in comparison to today, were not used to create a foundation for sustainable prosperity. Instead of thinking about the future, investing in development, creating new jobs and building on a foundation for development and growth of productivity, public spending constantly grew, primarily in civil servant salaries and pensions. Excessive public spending has resulted in the country’s public finance deficit growing year on year.

At present, we find ourselves in an utterly paradoxical situation where public sector salaries are much higher than those in the private sector and where hundreds of thousands of jobs in the business sector are being lost while the number of civil servants keeps on growing. Apart from that, a series of state and quasi-state institutions and agencies have been formed. Truth be told, a certain number of those agencies are needed, but they have been compromised by the fact that there is simply too many of them ­‑ they are spending the taxpayers’ money and those very taxpayers

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don’t benefit from them whatsoever. So, we have a tragic situation where most people dream of becoming civil servants as a regular salary is guaranteed.

In addition to the abovementioned, one of the very negative consequences of excessive spending is the so-called ‘crowding-out’ effect. Crowding out occurs when expansionary fiscal policy causes interest rate rises, thereby reducing investment spending. That means increased government spending crowds out investment spending.

When we put this long-term framework against the proposed austerity measures we can see that the austerity measures are indeed very modest. Serbia needs austerity measures in order to reduce the level of public spending, but the country also needs the consistent collection of tax revenue from all taxpayers, which is not the case at the moment. Also, corruption needs to be uprooted which will result in reduced public spending.

One of the very negative consequences of excessive spending is the so-called ‘crowding-out’ effect, meaning, increased government spending crowds out investment spending There is also another very important aspect to mention. There are two rather important areas that are crucial for long-term development and should not be subjected to cuts. Even in a time of economic crises, the state needs to invest in the development of infrastructure in order to create favourable conditions for private capital investments, as well as to invest in education which is the most important development factor that we have at our disposal today. ■

No Desire to Save

Reforms Breed Austerity

Dragoljub Rajić, Secretary General Of the Serbian Association of Employers

Dr. Mahmut Bušatlija, Associate of the Institute of Economics

D

uring the drafting of the Republic of Serbia’s 2012 budget, many independent economy experts, IMF representatives and numerous other business organizations warned that the planned budget was unrealistic and that the projected revenue could not be generated from so-called real sources (i.e. taxable income generated by businesses).

The first impression was that the budget was put together to last until the elections and that without a proper budget review, there was no way for budget expenditure to be ‘covered’ by the end of 2012.

For many years, especially since 2008, there has been a pronounced disproportion between Serbia’s budget revenue and expenditure. Most of the funds that were allocated to pensions and civil servant salaries, as well as social contributions, made

Funds that are allocated to pensions and civil servant salaries, as well as social contributions, make over two thirds of budget funds. over two thirds of the budget funds while the funds that were invested in development, through building infrastructure and supporting the economy, were much smaller. Bearing in mind the effects of the global economic crisis and internal reforms of the public sector, the Pension and Disability Fund and tax system in Serbia has been delayed for years. This has resulted in almost 260,000 job losses and privately owned companies losing almost 2 billion euros at the end of 2011.

We now have a situation where economic stagnation has returned like a boomerang hitting the people who created the budget, since, with declining company revenues and a reduction in the number of jobs, there is also less budget revenue from VAT and income tax collection. I think that the government should apply more severe austerity measures and cut back on budget expenses by at least 20%. Also, the government needs to specify in detail the way in which it’s going to save money, and the timeframe for that, i.e. each ministry, state agency or other state institutions need to reveal their savings plan. If that doesn’t happen, it will boil down to pure propaganda rather than a real desire to save budget money. Bearing in mind that this timid savings plan is probably going to be implemented by the future and not current government, it becomes very clear that there has never been a serious intention to save money. Worst of all, our companies will be forced to compensate for that. ■

T

he best measures have always been those that are timely and have an immediate effect. This, however, cannot be said for the measures devised by the Serbian Government since the primary purpose of these measures is for them to be ‘the talk of the town’, with the immediate effect aspect taking a back seat as nobody expects them to be consistently implemented. Any austerity measure, particularly concerning budget spending, entails long-term planning. This means that you need to know, long-term, how you are going to develop the country and turn austerity measures into investments and new jobs. These measures are just a part of the election campaign and we shouldn’t expect anything more of them. Practically speaking, if we bear in mind that our government has often made important decisions via conference calls, which took place regularly since the government members often did not have enough time to sit at the same table, it is hard to believe that the government could have done something substantial by the end of its term.

When you look at the government’s austerity measures, you will notice that they mention per diems and NGO funding which tells you that there is no desire or will to get to the essence of things. Austerity measures, as defined by our government, simply cannot be realized because they are, for lack of a better word, bizarre. If you save on per diems, you practically save nothing since you are going to do more damage by not sending somebody on a business trip to do their work.

Austerity measures in the public sector have to be the fruit of serious reform. Such reforms need to be transitional which we, truth be told, have never seriously started.

Austerity measures in the public sector have to be the fruit of serious reform. Such reforms need to be transitional which we, truth be told, have never seriously started, i.e. we have been running away from them for years, although Brussels has always been kindly advising us to get on with the reforms as delaying them for such a long time is undoubtedly not good.

We need to reform public administration in order for it to become more operative and more frugal. That doesn’t mean that the number of civil servants should be reduced, but that the costs should be allocated in line with priorities, be realistic and not serve to support governing political parties, i.e. we cordeditorial@cma.rs

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focus should not spend money on bribery and other illegal dealings and misuses that are often talked about.

On the other hand, if we want to properly spend funds, then savings should start with the most serious and biggest spending segment which, in our case, is pension insurance, that ‘eats up’ almost half of the state budget each year. However, this should not be done to the detriment of pensioners. What should be done is that state funding for pensions, and not pensions themselves, should be lower which, in turn, entails transforming public enterprises into corporations which will transfer some of their assets to pension funds and that each company, regardless of its size, pay state contributions on a regular basis, properly regulate the administration and investigate instances of misuse of power. ■

IMF to Demand Changes

new job they create in Serbia. There is no more money to cover this system and it was wrong to start off with. The IMF has already objected to the allocation system and it will certainly put a stop to the way in which things have been done in the past.

Our government is not telling its public the truth and this is evidenced by the ever appreciating dinar. As soon as the IMF decided

The new government will have to question the current subsidy system and the very subjective way in which these subsidies are allocated to foreign companies for each new job they create not to give us the ‘yellow card’, foreign investors decided to stop buying securities and the dinar started to depreciate. With the increasing borrowing of the public sector, Serbia could easily start dancing to the tune of Greek Sirtaki. ■

No Cutting Back on Investment

Dr. Saša Đogović, Expert Associate at IZIT (The Marketing Research Institute)

T

he Serbian Government’s projected budget deficit in Q1 of this year should have been 26 billion dinars, but, as it turned out, it was almost double that - close to 55 billion dinars, hence the government had to resort to ad hoc interventionist measures in order to save 15.7 billion dinars and give some kind of chance to the future government to stay under the annual budget deficit of 152 billion dinars as stipulated in the Budget Act. This year’s budget deficit should not exceed 4.25% of national GDP. However, immediately after the government announced these measures, the Fiscal Council voiced its opinion and said that, if the measures were really implemented, the savings would amount to 13 billion dinars at the most. Personally, I agree with the Fiscal Council as austerity measures can only yield results if we have a serious and responsible approach. The Fiscal Council is right to warn that such bland government measures are unsustainable because it seems that nothing will happen with the projections of 1.5% GDP growth. The IMF put this growth rate at 0.5% and I think that we should be happy if we ‘keep our heads above the water’.

The future government will have to conclude a new standby arrangement with the IMF and the Fund will certainly demand to see serious cutbacks and reductions in the number of civil servants at all levels. The IMF will also demand deep rooted changes in the pension system, i.e. primarily increasing the retirement age in order to reduce the pressure on the Pension and Disability Insurance Fund (PIO Fund). In addition, the IMF will want to see state-owned companies operate transparently and serious reforms conducted in the public sector. If you weigh up all of that against the government’s austerity measures, then it becomes very clear that the measures are futile and ineffective.

I deeply believe that the new government will also have to question the current subsidy system and the very subjective way in which these subsidies are allocated to foreign companies for each

Slobodan Đinović, Managing Director of Orion Telekom

A

ny decision that results in the reduction of budget deficit is welcome. Of course, at this time of crisis, we need to avoid budget cut backs when it comes to investing in infrastructure or the creation of new jobs since those are the tools for reviving economic activity in the present circumstances.

However, if the reduction in so-called ‘discretional expenses’ is not enough, then we need to figure out how to reduce the cost of the state administration. A complicated and sluggish state apparatus is a heavy burden for the economy at a time when bad debts are growing and budget revenue is declining. The paradox is that we are never going to be in a better situation or have more valid reasons to totally reform state administration and public enterprises than now, and, by doing so, have a chance to create a more rational and efficient state administration that will cost less

We are never going to be in a better situation or have more valid reasons to totally reform state administration and public enterprises than now. and provide better services to both citizens and businesses. This is an election year and it remains to be seen whether the preelection vacuum in the political segment of the state administration will cause an economic slowdown and in how that is going to reflect on the budget revenue. Hence, I do hope that the adopted austerity plan is not going to be devalued by new pre-election populist economic measures like increasing civil servant salaries. ■

Short-Term Effects TIJANA MILOJEVIĆ, Expert Associate at the Macroeconomic Analyses and Trends (MAT)

T

he government has adopted an austerity plan which entails cutting back on state expenditure in the amount of 15.7 billion dinars. In actual fact, out of these 15.7 billion dinars, 10.9 billion should go towards increasing the state budget revenue through re-directing the income of certain budget beneficiaries, as well as through reducing the socalled discretional expenditure in the amount of 4.8 billion dinars. I don’t wish to dwell on whether the 15.7 billion will be enough to cover the deficit which, in Q1 of this year, exceeded the amount agreed with the IMF for that period - the amount is more important in the context of the aforementioned diversion of the budget beneficiaries’ funds.

If these funds, used by budget beneficiaries, are to be re-directed, they won’t have enough money to cover their own expenses hence they will have to save due to decreased reve-

If the funds, used by budget beneficiaries, are to be re-directed, they won’t have enough money to cover their own expenses hence they will have to save because of decreased revenue nue. The question is whether the state budget will still have to transfer some of the funds to its users whose own funds are supposed to be transferred to the state budget. In that case, the austerity measures will only have a minor effect and the problem of the ever growing deficit will not be resolved.

Reducing the state budget deficit is certainly necessary, but, long-term, in order for this problem to be resolved, the state needs to conduct reforms that will balance out the budget revenue and expenditure.

Such ad hoc measures have only short-term effects and are not going to solve the deep rooted problems of the fiscal sector. In addition there is the issue of public debt which will inevitably grow along with the deficit and exceed the limits set by fiscal rules. It is evident that the first task of the new government will be to have long-term fiscal consolidation in the framework of overall legal reforms in the business system.

The reform policy should go in the direction of emancipation of state funds (primarily the Pension and Disability Insurance Fund), which will reduce budget expenditure, as well as in extending the tax base and tax framework (with new direct tax instruments) which would increase the budget revenue. The above mentioned ‘balancing out’ can be achieved through simultaneous reforms. ■

jdp

ekonomy

UK’s weakest recovery in 100 years The UK’s stop-start recovery has been the weakest to follow any recession in the past 100 years, with output still 4% below the level of 2008.

Early 1980s

Great Depression – 1930s The devastating downturn of the early 1930s followed Winston Churchill’s decision as chancellor, in 1925, to hitch the UK economy to the gold standard at an impossibly uncompetitive exchange rate. That left British industry vulnerable to the slump in worldwide demand that followed the great Wall Street crash of 1929, and the downturn that followed culminated in widespread industrial unrest.

It was only under duress and in the depths of a financial crisis in late 1931 that Ramsay MacDonald’s national government was forced to relinquish the gold standard. But the result was an immediate 25% devaluation of sterling against the dollar, which helped to give exporters a powerful boost and sowed the seeds of recovery. By 1934, economic output, which had slumped by almost 8% in 18 months, had returned to pre-crisis levels – though arguably it took the intense demands of equipping Britain for a world war to bring about a full economic recovery.

Oil shock – 1973 When a powerful cabal of oil-producing Middle Eastern states slapped an embargo on the west in late 1973, in protest at America’s backing for Israel in the Yom Kippur war, it created a classic example of what economists call an “external shock”. Oil prices trebled, and consumers and businesses in the gas-guzzling west were hit by a wave of inflation, sending many, including the UK, into recession as demand collapsed.

Output declined by more than 3% in little more than a year, against the background of the three-day week, imposed on industry by the Heath government to preserve power during a miners’ strike. The recovery turned out to be W-shaped, as GDP bounced back strongly, but then fell again in 1975. It took three and a half years after the onset of the crisis for GDP to return to its pre-recession level, helped by the discovery of the UK’s own oil reserves in the North Sea. 34 |

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Margaret Thatcher took power in May 1979 against a background of rampant inflation, widespread strikes and deep recession. Economic output continued to fall throughout the next two years, and unemployment rocketed, as the Conservative government battled to impose the prime minister’s radical new vision of monetarism and supply-side economic reform. The economy returned to modest growth in 1981, but it took another two years before the output lost in the downturn had been recovered. Meanwhile, unemployment continued to rise until 1986, peaking above 3 million – though fortunately for the Conservative government, Britain’s triumph in the Falklands conflict created a welcome distraction from economic woes at home in the run-up to the 1983 general election.

John Major has persuaded Thatcher to enter Europe’s Exchange Rate Mechanism, by tying the pound to the mighty deutschmark, in a move that Major and his colleagues hoped they would control inflation Early 1990s The downturn of the early 1990s saw many homeowners caught up in negative equity or forced into repossession after the so-called “Lawson boom” of the late 1980s turned to bust. Exporters were also struggling with an uncompetitive exchange rate after John Major persuaded Thatcher to enter Europe’s Exchange Rate Mechanism, tying the pound to the mighty deutschmark, in a move that Major and his colleagues hoped would help control inflation.

The economic fightback began with Black Wednesday in September 1992, when the Treasury finally admitted that it couldn’t beat the financial markets, and the pound dropped out of the ERM. Eurosceptic Norman Lamont later confessed to having sung in the bath afterwards.

Leaving the euro helped to bring about a sharp devaluation, making industry more competitive and allowing interest rates to come down.

It still took three years from the onset of recession for the economy to return to pre-recession levels of output. ■ Heather Stewart, The Guardian

MAY 2012 business leader’s meeting point

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Goran Ćirić, Acting General Director of Serbian Post Office

European Post Offices in Belgrade

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Petar Knežević, Director of

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Poll results of German companies -

the Nikola Tesla Thermal Power Plant d.o.o. Obrenovac

Business environment in Serbia

Records To Be Proud of and to Remember

Serbia Top Destination

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local news

Privatizations

Business Dialogue 01

“The current government has not participated in the controversial privatizations. Out of 24, 23 of the contested privatizations occurred during the government lead by Vojislav Koštunica. I cannot wait to find out who is behind these privatizations. That someone will be convicted, if any irregularities is found.”— Boris Tadić

Piraeus bank

Scholars Awards

02

Piraeus bank with the Ministry for Youth and Sports Fund has granted awards to five young scholars who have proved successful during their professional training.

Besides professional knowledge, the young talents showcased their independence, dedication, seriousness, and team spirit, which are all qualities that are highly rated in Piraeus Bank Group. Winners of this year’s Awards and prizes were presented by George awards are Marija Stošić, Milena Panoutsopoulos Stanisavljević, Vladimir Dinić, Jovana Andrić and Ema Ljubenović.

The awarded scholars of the Fund are amongst ten selected graduates from the University of Belgrade, Niš and Kragujevac, who carried out internships at the bank and were selected on the basis of proposals from their mentors.

Awards and prizes were presented by George Panoutsopoulos, Piraeus Bank Assistant Director for Product development and Miroslava Nesić-Bikić, Piraeus Bank’s Marketing and PR Manager. The award ceremony was attended by Deputy Minister of Youth and Sport Snezana Klasnja who on the occasion wished all the winners good luck in their future professional activities.

“The bank has launched a competition for four awards, but in the end we decided to award five students as they all fully meet our high standards. This is an opportunity to congratulate them, because at the very beginning of their careers, they have shown independence, a high level of expertise, work ethic, and adaptability, which are some of the most important factors for achieving a successful career,” said Aleksandar Radić, Piraeus Bank Director of Human Resources.

IT Park

Global Services Market State Secretary for the Digital Agenda, Jasna Matić, has said the construction of the IT park in Indjija will be a self-generating process that will create jobs and motivate young people in Serbia to major in IT. “I think this is a great opportunity for Serbia to skip some technological eras and get up to speed on the latest technologies, such as cloud and information technology, which services clients across the world,” said Matić.

Commenting on the start of construction of the IT park, Matić said the project by Embassy Group from India will greatly improve Serbia’s position

03 Telecom

04

Start Trading Telekom Shares

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Azvirt

Azerbaijani Company to Build E-763 Highway

The Serbian Government, on 20th April, adopted the Conclusion on the free distribution of shares in Telekom Serbia, determined by the market value of capital in the amount of 2.27 billion euros.

Every citizen will receive 31 shares, while the starting price is 2.27 euros per share.

According to the Conclusion, employees and former employees will receive 6.94 percent of the free shares in Telekom, and all other citizens will receive 15 percent of the remaining one billion shares.

“In the early days we were expecting higher demand, as the offer was not settled due to the distribution of shares to even 4.8 million people,” said Ana Tripović, Director of WISE broker.

The imbalance in supply and demand appears to be due to technical reasons - one citizen holding 31 shares in the early days was too much as it was impossible to accommodate

on the global services market.

Matić also said the park will create jobs not only for IT experts, but for doctors, pharmacists, biologists, engineers and mechanics. “We have educated young people and this will create jobs for them in the service industry, in the global industry of knowledge, in software production and providing various services in the field of knowledge,” said the state secretary.

Source: Tanjug

Azvirt, an Azerbaijani company, signed an agreement with the Serbian company Koridori Srbije on the building of a section of the highway E-763 in Serbia.

large numbers of orders of sales in post offices.

However, buyers should be careful not to overpay for shares, the fluctuation zone and price range is higher on the first day than later on.

On the first day of trading, the price action can range from minus 20 to plus 300 percent, while in the following days, if Telekom appears on the ‘prime’ market (where more stringent reporting is a requirement of the investor) the share price can be from minus eight to plus 10 percent.

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Source: Tanjug

Azvirt director Kamil Aliyev said following the signing ceremony that he expects great help from Serbian companies and experts in the construction works on the Ljig-Pozega section, stretching from Belgrade through western Serbia. Workers, construction material, and equipment will mainly be from Serbia, he noted.

Azerbaijan granted an affordable loan of 308 million euros for the construction of the E-763 highway in Serbia over a period of 25 years.

Privatizations II “I will not stop and only examine 24 privatizations. We are going to examine a thousand privatizations, because of the 70 percent of workers who lost their jobs.” — Tomislav Nikolić

05

Mercedes-Benz

World’s Most Fuel-Efficient Luxury-Class Model The new E 300 BlueTEC HYBRID is all set for its market launch with record efficiency values of 4.2 litres of diesel/100 km and 109 g CO2/km, accompanied by increased torque and power output.

Its modular hybrid concept with a lithium-ion battery does not impose any compromises on space and offers an impressive driving experience thanks to start/stop technology, regenerative braking - the boost effect, all-electric driving and sailing. The new E 300 BlueTEC HYBRID is the world’s most fuel-efficient model in the luxury segment.

Mercedes-Benz is opening up a new chapter in the core segment for the brand, setting new standards for luxury-class business cars: the E 300 BlueTEC HYBRID, which is available either as a saloon and an estate, boasts truly impressive performance. Its 4-cylinder diesel engine generates 150 kw (204 hp) of output and 500 nm of torque. The diesel engine combines with an electric motor rated at 20 kw and 250 nm to produce a harmonious overall concept.

The new model does not impose compromises on passengers in terms of spaciousness, either in the interior or luggage compartment. The intelligent, modular hybrid concept represents a comprehensive enhancement of the S 400 HYBRID – the clear market leader in its segment: no body modifications are necessary as the hybrid module is flexible and also suitable for deployment in other model series.

The philosophy: enhanced efficiency without compromising on comfort or utility, the E 300 BlueTEC HYBRID forms part of the brand’s downsizing strategy, which involves making conventional models perform far more efficiently than previously – without sacrificing driveability or comfort. In this model the company’s engineers have their sights set on fuel consumption figures in everyday traffic, rather than on standard or NEDC combined consumption.

The familiar “Real Life Safety” philosophy, which focuses on safety benefits under real-life conditions rather than standardised crashtest results, is augmented by “Real Life Efficiency”.

06

Danieli

Danieli arrives Representatives of the Serbian Government and the Italian steel and metal-processing machinery maker Danieli have signed a Memorandum of Understanding for the company’s €500 million investment in a steel mill in Sabac. According to the memorandum, Danieli will create 1,000 jobs at the new plant that will produce 750,000t of steel annually, adding that its exports would be at the level of €1 billion per year. The Italian company will build a steel mill in an industrial zone in northwest Sabac, on a lot spanning 110 hectares on the bank of the Sava river.

Danieli is the world’s third largest supplier of equipment for steel mills and the metal industry, employing over 9,000 people.

Source: SIEPA

Placements & Postings appointments@cma.rs

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Ramon Weidinger, New General Director of Coca-Cola Hellenic Serbia and Montenegro

Bojan Jović,

New CEO Zdravlje Actavis

Vojislav Glavinić, New CEO of Delta Real Estate Group

Teofilović Milan, New Chairman of the Supervisory Board of HIP-Petrohemija

Todor Delovski New Managing Director of Knauf Zemun and Knauf Podgorica

Mr. Weidinger graduated and received his doctoral degree from the Faculty of Economics in Vienna, Austria. Prior to joining Coca-Cola Hellenic, Mr. Weidinger held the position of CEO at Nestle as head of the Baltic states. In October 2010 he became general manager of Coca-Cola Croatia. His experience and successful leadership in Croatia prepared and propelled him to the leading role in Serbia.

Ramon Weidinger will assume the position from John Radosavljević who performed the task of Acting General Manager of Coca-Cola Hellenic Serbia and Montenegro, who is returning to his previous position as sales director. Previous General Manager Sotiris Yannopoulos will continue his successful career as the General Manager of Coca-Cola Hellenic Italy.

On the 6th April, Bojan Jović was appointed as the Managing Director of Zdravlje Actavis. Bojan finished Electrical Engineering in 1997 and by profession is a graduate electrical engineer. He joined the company on 1st September 1998 and began his professional development as an engineer with jobs in Pharmaceuticals. Mr. Jović acquired extensive experience in responsible management positions, first as manager of process engineering services, and then in the position of Director of Engineering, where he was responsible for capital investment projects for the strategic development of the company.

Vojislav Glavinić joined Delta M Group in 2002 as Deputy CEO in Delta Agrochemical.

From 2004 until 2011 he was the CEO of Pekabeta and C Market, responsible for reconstructing the business and merging with Delta Maxi Group, and CFO of Delta Maxi Group, in charge of strategic decisions and running the process of company selling.

When Delhaize took over, Mr. Glavinić became VP for strategy development and planning, for the Adriatic area. In January 2012, Vojislav Glavinić became CEO of Delta Real Estate Group. Currently, Delta Real Estate’s portfolio includes retail, office, hotel, and residential developments as well as prime locations all over the region with a value of 1 billion euro.

Mr. Glavinić holds an engineering degree in agricultural economy from the University of Belgrade.

On the 20th April 2012 at the 7th Special Session, shareholders at the assembly of HIP-Petrohemija, appointed a new Supervisory Board who will take over the role of the Steering Committee.

For the Chairman of the Supervisory Board of HIP-Petrohemija, former Chairman of the Board Milan Teofilović who served as Special Advisor to the CEO of the company, was elected.

The appointed new Supervisory Board are: Nikolaus Petri, Deputy General Director of NIS and Head of the Office for Investment and Development, Ivan Soucek, long serving Director of Czech Refineries, Mila Mladenović, Chief of Staff and Director General of Srbijagas and Nedeljko Konjokrad, former Member of the Board of the company.

As of April, the new Director of Knauf Serbia, i.e.

Knauf Zemun, is Todor Delovski, who was previously at the helm of Knauf Radika in Macedonia.

Delovski (47) was born in Skoplje and educated in both Germany and Skopje, where he graduated with a law degree, after which he went on to start his career practicing as an attorney. As of 1994 when Knauf d.o.o. Skopje was founded, he began working for the company. He managed Knauf Albania and Knauf in Priština, Autonomous Province of Kosovo.

He is a member of the Managing Board of the European Business Association and the MacedonianAustrian Business Association. Apart from Knauf Zemun, Delovski will also manage Knauf Podgorica.

He is married with two children.

cordeditorial@cma.rs

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93 May 2012 | 39

Financial crisis

Business Dialogue Interview

“Despite the progress made, there is still a long way to go in the context that is more favourable but still characterized by elements of uncertainty. The financial crisis is exacting a huge price on Italian families and young people.” - Mario Monti, Italian PM

Goran Ćirić, Acting General Director of Serbian Post Office

European Post Offices in Belgrade We are expecting the arrival of representatives from at least 50 European post offices and we consider the honour of organizing this event as a validation of our work and increasingly innovative services.

I would like to remind you that, at last year’s session, PostEurop Assembly made a decision for Brussels to be the host of the 2013 plenary assembly which symbolically establishes a link between Istanbul and Belgrade en route to Brussels.

T

he Serbian Post Office has been chosen to host an event called ‘PostEurop’. We are talking to the acting general director of the Serbian Post Office, Goran Ćirić about the importance of the event for the global development of postal services, as well as the latest developments in the Serbian Post Office.

“We have been recognized for our projects on several occasions and have been commended for achieving the fastest growth of quality services in the region. Although, our initial position was rather unfavourable, we are now number one in comparison to other regional countries. We consider this an extremely important validation of our good business vision and encouragement to persevere in its implementation,” says Goran Ćirić at the start of this interview.

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■ Why was the Serbian Post Office chosen to host the ‘PostEurop’ event and when does it take place?

- On 25th and 26th April, our company will play host to the top officials from fifty or so European post offices at PostEurop’s Plenary Assembly in Belgrade. This renowned international organization chose us to host the event at its meeting in Istanbul last autumn.

The honour of organizing this event validates the work we have been doing and acknowledges the development in innovation and quality of our services.

93 May 2012

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■ As of recently, the public enterprise PTT Communications ‘Serbia’ is offering yet another service which is specially designed for small and medium enterprises called Post Export. Could you tell us more about this service?

- Post Export is a brand new service in our country. It is de-

Post Export is a brand new service in Serbia.

It is designed for small business owners and companies and enables the export of goods of up to 1,000 euros in value with simplified procedures and favourable prices. signed for small business owners and companies and enables the export of goods of up to 1,000 euros in value with simplified procedures and favourable prices. For the first time ever, the emphasis is on facilitating the operations and future development of small and medium enterprises. There are over 300,000 SMEs and small business owners in Serbia who see this service as a great opportunity since many administrative hurdles are now removed, i.e. export procedures are simplified and automated. Instead of having to fill in seven different forms, users of this service now only have to fill in two forms per package – an export customs declaration, which can be done online or in any post office, and an invoice.

The procedure itself entails a person to come to a post office with a shipment and fill in the required documents in an electronic form, which serves to track the shipment to its custom clearance

Problem “We’re not saying that saving solves every problem. However, you can’t spend more than you take in. You can’t live life this way.

Everybody knows that.” - Angela Merkel, German Chancellor. location, where customs officials check the shipment, and after which the package is sent to the recipient. The Post Export service covers 230 countries while the price of this service depends on the various shipment zones. We are quite happy with the results we have achieved in the past period and we have already signed contracts with over 200 companies.

■ The reconstructed Post Office Museum (PTT Museum) has recently been opened. What is on display?

- The Museum was officially opened on 7th April, which is also the Post Offices’s Patron Saint Day (Blagovesti). The Museum was reconstructed last year after almost half a century. Close to 800 square metres of exhibition area and 400 square metres of ancillary facilities were reconstructed in detail and I believe that we have breathed life into this institution. PTT Museum now has a contemporary feel and its exhibits are neck and neck with other modern museums of this kind. We believe that visitors will appreciate our efforts.

I would like to remind you that the Postal-Telegraph-Telephone Museum was opened back in the day of the Kingdom of Serbs, Croats and Slovenians on 31st July 1923 following the enactment of the Organization Act of Ministry of Post and Telegraph Offices. Therefore, next year, we are going to celebrate the Museum’s 90th anniversary. This is one of the oldest postal museums in Europe containing the first documents in the history of Serbian post offices dating back to the 19th century.

The Museum’s exhibits show the timeline in the development of postal services and telecommunications in Serbia and hold extremely valuable information about the development of our society and national and European identity. The extensive historical collection with over 10,000 units tells a story about the development of postal (courier) communications when the first “menzulans”, dedicated to the transmission of oral and written messages, were established, as well as the story about the first postal, telegraph and telephone station in our country.

■ Do you think that postal stamps only interest philatelists?

- The philately collection, with pre-philatelist letters and national and international stamps, has drawn quite a bit of attention. The aim of the Museum’s reconstruction was to preserve and display the museum exhibits in a contemporary fashion and show them to the Museums visitors who are given an opportunity to see the rarest of exhibits like early telephone sets which, in the past, were considered somewhat revolutionary and are today a worthy testament to the history of technological development.

I really do believe that we have revived this cultural institution and that visitors will agree with us when we say that the PTT Museum now has a modern appearance and exhibits that are in accordance with the latest museological trends.

■ The Serbian Post Office also has a certification body that certifies so-called E-signatures and, as of recently, you have a new service called time stamp issuing.

- In early March, the Serbian Post Office was registered for the issuing of time stamps which have a variety of applications in E-documents. Apart from referring to a digital date and the attached time information of an Edocument, and its history prior to the document being stamped by a time

stamp, the stamp enables the verification of an E-signature, even after the signatory’s E-certificate has expired or has been revoked. In April, we offered this service both to companies and individuals, which adds a new time dimension to E-signatures, as well adding quality in terms of functionality and legal importance. Having time stamps will be especially important in archiving E-documents since they guarantee their authenticity, regardless of the status of the signatory’s E-certificate. In combination with E-signature, and certain user applications, the time stamp is a very much needed prerequisite for the transfer from paper to electronic documents.

■ How far has the construction of the Main Postal Centre (GPC) progressed?

- Without the construction and reconstruction of the main post facilities in Belgrade, Novi Sad and Niš we cannot improve our competitiveness.

The project is valued at 40 million euros which is a significant investment. The money came from our own resources and the effects of this investment will be long-term both for us and our clients.

The construction of the business and production complex GPC Bel-

Without the construction and reconstruction of the main post facilities in Belgrade, Novi Sad and Niš we cannot improve our competitiveness. The project is valued at 40 million euros which is a significant investment.

grade will be finished by May 3rd and we are going to officially mark the end of the construction works. I would like to underline that we, as investors and chief contractors, have chosen to work exclusively with domestic construction companies thus giving our contribution to the revival of the domestic construction industry. GPC Belgrade will play the role of an international, regional and local postal and logistics centre and is also going to be the hub for the automated processing and sorting of postal items for the whole of Serbia.

At the same time, our experts are devising a technical and technological concept according to which all three ‘postal factories’ are going to be outfitted with the latest equipment for the automatic processing of letters, printed materials, packages and goods. We are currently in the process of selecting the best solutions since our primary goal is to acquire contemporary, modular, flexible and compatible equipment for all three postal centres. Our plan is to integrate the existing software solutions with the new IT system called PostTis by the end of this year. PostTis is a system that we have developed ourselves in an effort to provide new age postal services to our clients. ■ cordeditorial@cma.rs

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93 May 2012 | 41

regional news

Business Dialogue 01

Revolution “Serbia needs a revolution which should take place on the 6th May, so that the government will once again lead the working class and the poor.” — Ivica Dačić, Serbian Interior Minister

02

Albania

Seeking Turkish Investments

EBRD to Increase Support

Promising tax breaks, Albania's prime minister calls for Turkish companies to invest.

Albanian Prime Albanian Prime Minister Sali Berisha (left) and Turkish Minister Sali Berisha urged Prime Minister Tayyip Recip Erdogan Turkish companies to invest in his country, promising them a tax exemption for a period of eight years. The call came on April 6th at a Turkish-Albanian Business Forum held in the capital Ankara.

The event was attended by more than 100 businesspeople from Turkey, and 60 representatives of Albanian companies.

Source: Reuters

03

Montenegro

Growing share of Holiday Travellers Montenegro is fast becoming a key tourist destination in the Mediterranean, potentially providing a model for other countries in the region.

Forecasts from the World Travel & Tourism Council (WTTC) suggest that revenue from tourism in Montenegro will climb every year for the next decade, and will contribute a whopping 17.8% of GDP by 2022. The rosy scenario corresponds to projections by the Montenegrin Ministry of Tourism.The message appears to be resonating. Already, according to the WTTC, tourism in Montenegro contributes 7.5% of GDP, compared to 3.5% in Slovenia; 2% in Bosnia and Herzegovina and 1.7% in Serbia.

The same data suggests that last year alone, income from tourism and the travel industry was €249.3m in Montenegro.“Luckily, Montenegro has a great advantage – a good geographical position and extraordinary natural beauty – with both the sea and the mountains in a small space. But it’s not all sunscreen and ski poles. Tourists also recognise the political and security stability,” said Zarko Radulović, co-owner of Montenegro Stars Hotels Group and president of the Montenegrin Tourist Association Source: Southeast European Times

05

Bulgaria

Snatched Property from Oligarch

The Bulgarian Government Nikolay Banev

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93 May 2012

Bosnia & Herzegovina

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Prime Minister of the Federation of BiH, Nermin Niksić, met in Sarajevo with Jan Fischer, Vice President for Operational Policies of the European Bank for Reconstruction and Development (EBRD). Fischer conveyed to Niksić the assurances that EBRD will continue with already started projects, and, more importantly, will direct attention to other areas of cooperation. In the last fifteen years, €1.3 billion have been allocated for BiH, EBRD now wants to double it.

These funds will be used for

projects that the BiH Government includes in its strategies and marks as priorities. Fischer added that EBRD “is willing to offer technical assistance to improve the business environment and investment climate in FBiH.” Source: ONASA

04

Macedonia

Government to take €250 million loan The Macedonian Government has decided to take out a loan of €250 million from Deutsche Bank.

The entire amount should be used for the funding of the 2012 Budget and for the refinancing of liabilities from the Eurobond that matures in January 2013.Vice Premier and Finance Minister Zoran Stavreski has said the Deutsche Bank loan would eliminate the necessity on use of the funds from the Precautionary and Liquidity Line (PLL) with the International Monetary Fund.“This is a confirmation of the country’s prominence, since it gets a loan from a bank with the most capital in Europe,” said Stavreski. “Deutsche Banks offer was the best among three banks. The loan has a five-year repayment period, the payment being at the end of the fifth year, with a fixed interest rate of 6.83 percent. This is an exceptionally good interest rate, taking into consideration the current circumstances in Source: MIA Europe,” underlined Minister Stavreski

The Bulgarian Government has won a suit over the ownership of a sizable Black Sea beachfront plot against a firm owned by Nikolay Banev, a wealthy local oligarch.

The District Court in Bulgaria’s Dobrich ruled in favour of the state, as represented by the Agriculture Ministry, in its claim for almost 183 acres of land in one of the most expensive Bulgarian Black Sea resorts, ‘Rusalka’, located on the country’s northern sea coast.

The court has found that the plot in question is part of a 300 acre area from the State Forestry Fund, which was provided for the construction of the Rusalka resort owned by Banev.

According to the court, the fact that the land was listed as an asset in the balance sheet of Rusalka Tours is not sufficient enough to claim ownership of it, which has effectively annulled the sale of the same plot by Rusalka Tour to Parrus OOD. The scandalous acquisition (now annulled by the court) of the beachfront plots in question have been traced back to 2009 when the former district governor single-handedly ordered the property of the State Forestry Fund to be transferred to the ownership of Nikolay Banev.

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Future matter “If a miracle happened and Serbia was ready for the EU tomorrow, the Union does not have a constitutional requirement to receive us. Serbia’s entry into the EU is a matter for the future, ten years ahead or more.”— Žarko Puhovski, Croatian analyst

06

Croatia

Agrokor follows WalMart Model Croatia's largest privately owned company, Agrokor, is continuing with its push to diversify its portfolio by entering negotiations to purchase Nemetova clinic, Croatia's oldest private healthcare facility.

Agrokor, whose core business is the production and distribution of food and drinks and retail with supermarkets, has, in recent times, entered into the mobile phone market and also opened a gas station in the Croatian capital. Agrokor’s CEO Ivica Todorić has started negotiations with Swiss insurance company Basler, who currently own Nemetova, but the company says a deal has not yet been struck. “We have not yet purchased the clinic, but the information that we are currently in negotiations is correct” said the company to portal Tportal.

It seems as though Agrokor are following the American giant WalMart’s model, aside from having gas stations at its supermarkets, the American chain also have small clinic’s in their supermarkets, where physicians perSource: Croatian Times form simple examinations on customers.

08

Romania

Kosovo

Strabag to Quit Kosovo Austria’s Strabag is to sell its assets in Kosovo after disappointing sales.

In 2006, the company purchased the largest quarry in former Yugoslavia, close to the town of Drenas, for 2.5 million euros. It invested a further 6 million euros in the quarry and in building a facility to produce asphalt. The company has revealed that it intends to sell due to its failure to penetrate the small Kosovo market.

Spokeswoman Diana Klein confirmed the sale, explaining: “Strabag is not pleased with the sales volume of products of the quarry and asphalt base. We expected a better market and better economic conditions.” The Austrian company would not discuss details of the sale, but it’s reported that the company is looking for a price of around 5 million euros. Strabag has apparently been in discussions with several companies.

The new 50-investigator strong division was set up at the request of the PM, in a move to fight rampant tax evasion and a shadow economy, estimated at some 30 percent of GDP. Soon after he took office, in early February, PM Ungureanu gave ANAF two months to collect €2 billion in income tax, representing 1.5 percent of GDP. On the same day the deadline expired, Tuesday 17th April, Ungureanu sacked the head of the fiscal body.

Reacting to his sacking, Sorin Blejnar said the deadline given by the PM for the collection of the €2 billion was ‘not realistic’.

PM Sacks Head of Fiscal Body

Romanian Prime Minister Mihai Razvan Ungureanu sacked Sorin Blejnar, former head of the fiscal control body (ANAF), at the end of March.

09

07

Balkans

Common Airline for the Western Balkans Overall, the global financial crisis has meant lean times for airlines, and the Western Balkans has proved to be no exception.

Whilst some countries like Serbia have state-owned carriers, Albania, Macedonia, Bosnia and Herzegovina and Croatia have fully privatised theirs or have retained holdings in carriers, such as Croatian Airlines and Adria Airways. The relatively small market and few carriers have some experts calling for a common airline capable of servicing the whole region.

“If national carriers merge into a regional one, it would offer stability in the market, decrease prices for passengers, and [encourage] fair competition towards the bigger European airlines present in the market,” said Dritan Keliu, an economics professor and head of the Balkan Centre for Economy and Trade.

As of now, Albania’s only operating airline is BelleAir, a private company. In November 2011, the Albanian Civil Aviation authori-

ty revoked Albanian Airlines license to prevent it from being added to the list of carriers that are banned by the EU. The airline had been privatised little more than two years earlier. In Serbia, the government has tried repeatedly to privatize the national carrier JAT Airways, but without success. The biggest regional carrier remains Turkish Airlines, which is increasing its service in the Western Balkans.

Ali Genc, Turkish Airlines senior vice president for media relations, told SETimes that the airline has introduced two flights per day to Belgrade, ten weekly flights to Priština, Skopje, Tirana and Sarajevo, and plans to add an extra flight to Podgorica for the busy summer season.

“We are always ready to co-operate with any partner who can undertake our service quality,” said Genc. He went to say, “There is steady growth in the market. Nearly 80% of the market direction is to the west.”

Keliu says that the Serbian, Croatian and Kosovo markets are seeing an increase in flights.

“Croatia is a tourist destination, while Kosovo and Serbia - because of the huge Diaspora living abroad - are seeing a huge increase in the number of flights. Priština Airport for many is now a way to go to Macedonia or Albania because of the distance to those countries.”

Kosovo is the only country in the region without a private or government-owned carrier, which enables the different companies that fly to Priština to control the fares.

Blerim Meta, a doctor living in Germany, said that he would choose a Kosovo airline if it were an option. “It would control prices and Kosovo’s Diaspora would send the mo ey for tickets directly to Source: Reuters Kosovo, not somewhere else.” cordeditorial@cma.rs

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93 May 2012 | 43

Business Dialogue Interview

Concern “The most immediate concern is still that further escalation of the euro-zone crisis will trigger much more generalized problems... Geopolitical uncertainty could trigger a sharp increase in the price of oil.” - Christine Lagarde, IMF managing director.

Petar Knežević, Director of the Nikola Tesla Thermal Power Plant d.o.o. Obrenovac

Records To Be Proud of and to Remember In 2011, TENT A, TENT B, the Kolubara Thermal Power Plant and Morava Thermal Power Plant, which all operate under the Nikola Tesla Thermal Power Plant (TENT), produced 20.2 billion kilowatts of electricity, which is the plant’s highest ever annual electricity production

D

uring the huge snowfalls and extremely low temperatures in February this year, the fact that TENT actually increased its production is a real feat. Through that period, TENT worked at maximum capacity and Serbia, despite increased consumption, was spared from electricity restrictions despite temperatures constantly dipping to almost -30°C.

■ It seems Nikola Tesla Thermal Power Plant just keeps on going. In March, you celebrated the company’s success as well as its 42nd birthday. Could you tell us what are you especially proud of?

- The 42nd birthday of the Nikola Tesla Thermal Power Plant was celebrated in the spotlight of production accomplishments and last year’s results. In 2011, the plant generated 20 billion and 205,692 million kilowatts of electricity, which is TENT’s biggest ever annual production. Apart from the know-how and exceptional efforts invested by all of TENT’s employees, the Kolubara mine basin had to produce record quantities of coal in order to meet the demands of the three thermal power plants (TENT A, TENT B and the Kolubara). In 2011, over 29 million tons of coal were delivered.

Last year was very tough on the Electric Power Industry of Serbia (EPS) since we had an unprecedented drought throughout the year, low river levels and drastically reduced operations in our hydro-power plants. Also, there was an electricity shortage in the region so the thermal power plant had to bear most of the burden due to increased demands in electricity consumption. We responded to those heightened needs and were reliable and available during the ‘mini-ice age’ in early 2012. We overcame the challenge that nature set before us.

We wouldn’t have been able to do that so successfully if we hadn’t finished the first stage in the overhaul and revitalization of our facilities which has resulted in the longer lifespan of the plant’s units, higher production and increased energy efficiency. Judging by the

relevant technological parameters, TENT’s overhauled units are now operating just like contemporary thermo-facilities in Europe. I would like to single out the most complex and biggest overhaul that we did on the unit A6 where we increased the unit’s nominal power.

So, now, instead of producing 308 megawatts of electricity, the A6 produces 348.

This is the first such endeavour carried out in EPS and thanks to everything we did in the period from 2003 to 2010, TENT increased its annual production by 3.2 billion kWh and reduced coal consumption by 400,000 tons per annum.

■ How much money has been invested so far and what are the results?

- In order to implement the envisaged projects in the period from 2003 and 2010, we spent close to 450 million euros. Half of the money came through donations, while the other half is from our own funds. The result of these investments are really worth mentioning. To increase the annual production by 3.2 billion kilowatts

TENT is the backbone of the Serbian electricity production. With 3,288 MW capacity, which is one third of EPS’ installed power, and an annual output of 20 billion kWh, TENT’s capacities are considered a powerful energy resource not only for Serbia, but the entire region

is a result tantamount to building a new 400 MW block which costs approximately one billion euros. Thanks to everything that I have mentioned so far, and with a third of the installed production capacity of EPS, last year, TENT managed to generate 60% of the electricity produced in Serbia instead of the previous 50%. The most complex endeavour in 2011 was the general overhaul of the 600 MW B2 block which lasted 120 days. The overhaul of mills in the A4 unit lasted 60 instead of planned 75 days thanks to good work organiza-

Physician “I am a physician. Physicians work on evidence, rather than working from a single ideology or from a particular political point-of-view.” Dr. Jim Yong Kim, new president of the World Bank.

tion. The mills’ capacity and grinding quality have been increased which is a prerequisite for reducing the emission of nitrogen oxides and we increased the unit’s power.

The record production results, cutting back on losses, reduced coal consumption and improved environmental parameters are the results of carefully planned and implemented successive operations on the units over a period of 7 to 8 years. We have proved that with the proper technical, economic and environmental activities, we can extend the lifespan of 40-year-old-units for another 15 to 20 years while adhering to the relevant environmental parameters.

■ According to the development plan, which covers the period until 2017, you are also planning to increase power in units B1, B2, A3, A4 and A5. What are the dynamics of this project and how big of an investment will it take?

- Our overall investments, to be made by 2017, will amount to 1.1 billion euros. Out of that, 500 million will be spent on completing the planned overhaul and modernization, extending the lifespan and increasing both energy efficiency and nominal power of the units, while

In the last decade, TENT was granted over 550 million euros worth of donations and noncommercial loans for the reconstruction and overhaul of its facilities, higher production and the implementation of environmental projects

600 million euros will be spent on finishing the overhaul of electrostatic filters, devising concentrated transport activities in TENT A, reducing the emission of nitrogen oxides and desulfurization in TENT A and B and resolving the problem with waste waters in TENT A and B. The result of the aforementioned activities will be a successive increase in the power of units A3, A4, A5, A6, B1 and B2 so that overall annual production can grow by 3.5 billion kWh by 2017.

■ Foreign investors are very interested in investing in the Serbian energy sector. Also, there have been many reports about China granting the Nikola Tesla Thermal Power Plant a loan.

Could you elaborate?

- EPS plans to build the B3 block at a location in TENT B. Analyses and studies are being drafted together with potential Chinese partners in order to meet EPS’ requests about the type and size of the facility and financing the construction of the new block.

■ In the last decade, TENT received donations and favourable loans from abroad. How much did these loans and donations amount to and what were they spent on?

- TENT received over 250 million euros in donations. In the beginning, the money was spent on reconstructing facilities in order to increase production, and later, it was spent on the implementation of environmental projects like overhauling electrical filters, enabling the concentrated transport of ash, waste water treatment and continuous

measurements of emissions from combustion products, while the money from loans will be spent on reconstructing mills and reducing the emission of nitrogen oxides and desulfurization in TENT A which are supposed to be carried out in the following four years.

■ What are the company’s plans in 2012? Do you expect this year to be as difficult as the last one?

- The basic plan is to balance out production and consumption so that we are not forced to import. It would be good to export a certain quantity of electricity too. This year, we plan to produce 19 billion and 446 million kWh of electricity, which is 1.9% more than last year’s plan. That doesn’t mean that we will break TENT’s absolute record from last year since we are limited due to technical reasons, i.e. the two very important and complex overhauls. The general overhaul of the TENT B-1 unit will last six months which means that the unit will be at a standstill during that time which is the longest ever period since the power plant was built. This is due to an extensive volume of work. The TENT A-5 unit will be stopped for four months which is how long it will take to overhaul the mills and change the burner in an

effort to optimize combustion processes, reduce the emission of nitrogen oxides and reconstruct the turbine. The overhaul of the TENT A-1 and A–2 blocks, as well as the fifth block in the Kolubara plant will continue. If we bear in mind that blocks B-1 and A-5 are going to be overhauled, the planned production of 19.446 billion kWh is equivalent to the record-breaking production last year.

This year is going to be exceptionally difficult since during the bad weather in February we encountered huge additional costs due to system maintenance and the acquisition of additional quantities of fuel oil. The question now is whether we will be able to secure 18 billion dinars, which is how much we need to carry out planned activities this year. Due to the current financial situation, all TENT companies are required to reduce their funds for the implementation of planned activities, but, in our case, it is very difficult to postpone certain projects since that leads to disruptions in the entire chain of technically inter-connected projects. Since this year we are going to embark on the second overhaul stage, that will last for five years, we have drafted a precise plan for each of these years so if the works on some systems, which are planned for this year, are moved to another time, I really don’t know when their turn going to be again. ■

Support

Business Dialogue

“Spain and Italy are inextricably tied. If Spain gets a bailout then the EU needs to be ready to provide support to Italy as well.” - Megan Greene, senior economist at Roubini Global Economics.

Brian Lack & Co

The Personal Touch With over ten years experience, and a wealth of local knowledge, managing director of Brian Lack & Co, Neil Sloam is an expert in his field. He talks about offering the kind of quality service that sets the company apart

B

rian Lack & Co is a leading estate agent, selling and renting properties in some of the most prestigious parts of London, Belgrade and, coming soon, Athens and Moscow. But, for managing director Neil Sloam, the journey to where he is now has not been exactly what he would have imagined, having initially started out in retail.

Now as the managing director of Brian Lack, who have offices in St. John’s Wood, Elstree and Knightsbridge in the UK, as well as in Belgrade, Serbia, Neil runs an innovative business, where the customer is at the centre of everything they do. “Our people are encouraged to think outside the box and have a ‘go get’ attitude. We listen to our clients and are always willing to adapt to their needs.”

Brian Lack & Co is an agency that has always offered more. Any property available for purchase or rent can have detailed photos, panoramic views and videos, as well as meticulous descriptions depending on what the owner requires. This approach allows buyers and tenants to make informed decisions about which

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properties they’re interested in. “We want to make sure that our customers can thoroughly research each property in comfort – saving them time and ensuring that all the information they need is at their fingertips,” Neil explains.

In addition to excellent digital provision and highly detailed property information, the company has always focused on having strong local knowledge. Neil himself knows St. John’s Wood well, having lived there since he was five years old. “I really do have an affinity with North West London life, which means I can speak with authority when buyers have questions, and help suggest certain parts of the area that would be most suited to their needs. Personally, I’ve always felt that one of the best places to live has to be St. Johns Wood. It’s one of the few places where a car is not a necessity, because everything you could possibly want is at your doorstep, and yet it still retains a real village atmosphere.

He also makes sure that the company employs local people with local knowledge in every branch that the company opens as he and his

In addition to excellent digital provision and highly detailed property information, Brian Lack & Co has always focused on having strong local knowledge.

customers have reaped the benefits in St. Johns wood with his own expert knowledge.

As agents, Neil and his team are dedicated to offering the kind of service that supports and enables buyers and tenants when they’re looking for a property. “I think the most important thing for an agent is to be someone who listens,” says Neil. “They need to be understanding, and tenacious, and really care about matching the right person to the right property. Crucially, it needs to be someone who delivers what they’ve promised, as well as understanding who the client is. This is the criteria I have always chosen my people on, because it’s essential.”

This approach has meant the company has survived, and prospered, in an industry that was arguably hit hardest by the financial problems the UK and the world in general have faced in the past few years. For Neil, the secret of his success, especially during more challenging times, is the simple adage of knowing that what you put in, you get out. “There are times when it’s harder, and you really have to be even more innovative and work even harder to succeed, but it pays off in the long run for everyone,” he explains.

“Crucially, I really care about all of my clients. It is this commitment from me and my team that ensures we always provide an exemplary service, coupled with expert local knowledge, and a real commitment to achieving the best.” ■

Poll results of German companies regarding the business environment in Serbia

Serbia – Top Destination ■ By Mirjana ZEC

Serbia is the favourite destination of German investors, together with the Czech Republic and Poland, while 91% of those surveyed said they would invest in the country again.

ccording to data collated by the German – Serbian Business Association (DSW), there are a total of 360 German companies and 300 individuals who have invested over 1.5 billion euros in the country so far. The majority of investors are pretty satisfied with their operations, revenue and the business environment.

Serbia is at the top of the list of investment destinations for German businesses in Central and Eastern Europe, along with the Czech Republic and Poland – says executive director of the

of reasons to be satisfied since it has received a better evaluation than many respectable states, including EU ones. Hungary ranked lower than our country as every third German investor said that they regretted investing there.

Charge d’Affairs of the German embassy in Belgrade, HansUlrich Sudbeck, also talked about the operations of German companies in Serbia and underlined that the economic downturn did not much affect revenue and turnover. Almost 75% of the poll participants said that their turnover was higher in 2011 compared to 2010, 7% said it was worse, while 19% remained at the same level.

“Even their business revenues are higher than expected,” Sudbeck added and went on to say that 61% of those surveyed generated 10% higher revenue than initially expected. Turnover growth is expected by 51% of the companies, while 45% think that their revenue will increase. Regardless of the demonstrated

German-Serbian Business Association Michael Schmidt while presenting the results of a poll that was conducted in February. “When assessing the current situation in their respective companies, 48% of poll participants said that it was ‘good’ and 47% responded ‘average’. Only 5% of poll participants said that it was ‘bad’,” Mr. Schmidt says.

The poll has also shown that every second German company expects to accomplish better business results than last year, while 43% said that their business situation would remain the same.

Only 12% of the surveyed companies expect to fair worse in 2012.

However, when asked to assess the overall economic situation in Serbia, 65% of German companies said it was ‘bad’, and only 15% expect some improvements this year – said Mr. Schmidt.

Earlier polls have shown that German companies in Serbia are reasonably satisfied, but the results of the newest poll came as a surprise to many. If we compare the marks that Serbia got from German investors to those which German companies had given to other countries where they operate, Serbia has plenty

optimism and satisfaction, German companies pointed out flaws in the business environment and general conditions of doing business in Serbia. They underlined the inadequate battle with corruption and crime, lack of transparency in public procurements, virtually non-existent payment discipline and payment delays, lack of legal security and unpredictable economic policy, in addition to all the fees they are obliged to pay.

According to Mr. Schmidt, German companies are ready to continue investing and creating new jobs, despite the economic crisis, and expect to generate higher turnover, revenue and export profit. Nearly 35% of the companies plan to increase their number of employees, while 41% will maintain their current workforce. ■

Charge d’Affairs of the German embassy in Belgrade Hans-Ulrich Sudbeck (left) and executive director of the German-Serbian Business Association MICHAEL SCHMIDT

A

German companies are ready to continue investing and creating new jobs, despite the economic crisis, and expect to generate higher turnover, revenue and export profit.

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world news

Approach

Business Dialogue 01

“A new approach to saving the euro is needed and Germany should finance it,” — George Soros

02

Poland

Expat cash on the drop

Investment in ICT to hit €2.67bn

The amount of money being sent back to Poland is decreasing

In 2011, over PLN 17bn (€4.0 bn) was sent back from Poles plying their trade on foreign shores, which is approximately PLN 500m (€119m) less than the year previous The biggest drop in money came from Ireland which saw its 2010 figure of PLN 1.9bn (€452 mn) decrease by PLN 0.75bn last year. Great Britain saw a drop of around PLN 138mn (€32.8mn).

“Some people are returning to Poland as they have lost their jobs,” says Professor Janusz Czapinski, who adds that the only nation which has seen an increase in the amount of money sent back is the country’s neighbouring nation Germany.

Another reason behind the changing trend is that wages in Western Europe are not growing as quickly as in previous years, while maintenance costs are still rising.

According to economist Krystyna Iglicka, the figures also show that an increasing number of workers are choosing to settle in their chosen country.

03

The Azerbaijani government plans to invest €2.67 billion in the coming decade in projects in the field of information and communication technologies “Even more investment is expected from the private sector, for the increase of whose role advanced financial and investment environment is currently being established in the ICT sector,” said Minister Ali Abbasov.

Today, there is a digital gap between the two developed continents which falls mainly to Asia and the Pacific, where there are large voids not only in ICT but also in education, science, the economy and social spheres.

The problem has frequently been a subject of debate and research at the International Telecommunication Union (ITU), the Regional Commonwealth of Communications, in governments, as well as with experts. To solve this problem, all the

Ali Abbasov, Azerbaijan Minister

suggestions and recommendations come down to high prices and poor integration, poor digital services, including e-education, e-health, e-commerce, the absence of appropriate conditions for investment, and poor quality of education due to the lack of specialized personnel.

Azerbaijan has implemented a state program for the development of broadband Internet services, creating “electronic government”, digital television infrastructure, and the develop-

Seeking to speed up bilateral cooperation and enhance economic engagement, India and Pakistan have decided to fast-track the ongoing talks for trade in petroleum products and electricity. The issue of opening bank branches in each other’s country would also be taken up as a priority.

It was decided during the bilateral meeting between Commerce Minister Anand Sharma and the visiting Pakistan Trade Minister, Makhdom Amin Fahim, that the officials of both countries should fast-track the ongoing process. It was also noted that the Central banks of both countries were examining issues relating to the opening of bank branches in each other’s country.

India/ Pakistan

Fast-track talks Central banks of both India and Pakistan are examining issues relating to the opening of bank branches.

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Azerbaijan

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US

JPMorgan Chase earns €4.11bn in Q1

Czech Republic

Molson Coors Brewing acquires StarBev Denver-based Molson Coors acquisition of StarBev will provide a route into Central and East European (CEE) markets.

JPMorgan Chase, which holds the most assets of any bank in the United States, said that it issued more mortgage loans in the first three months of the year and turned a bigger profit than Wall Street expected. The bank said it earned €4.11 billion for the first quarter, or €0.90 per share. Analysts were expecting €0.88 per share. Revenue and profit declined in most of JPMorgan’s businesses, including investment banking.

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Molson Coors Brewing, producer of Carling and Coors Light beers, among others, has outbid Japan’s Asahi group to acquire StarBev from CVC Capital Partners for €2.71 billion euros, using the acquisition to add popular brands like Staropramen to its portfolio and provide a route into the Central and East European (CEE) markets.

The acquisition will also enable Molson Coors to expand outside its main regions of North America and the United Kingdom where lingering unemployment, aggressive compe-

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Molson family enjoying a relaxing beer

tition and a growth in cocktail consumption have curbed demand for beer.

In 2011, StarBev generated earnings - before interest, taxes, depreciation and amortization - of €241 million euros). With more than 20 brands, including Czech Staropramen and Serbian Jelen and Nikšićko, StarBev also distributes Stella Artois, Beck’s and Hoegaarden under license and significantly enhances Molson Coors’ growth profile.

Operation

06

Nigeria

“There will be further operations, allowing us to expel a number of people who have no business in the country” — Nicolas Sarkozy, French President

07

Mamut Controls 50% of Migcredit

Outrage over failed €381.4m contract There is outrage in telecommunications and other circles over a €381.4 million contract awarded to the Chinese firm, ZTE The failure of China ZTE to complete the high impact project was one of the topics raised in Beijing during the high level Chinese/Nigerian meeting.

Many experts told ‘Nigerian Business Day’ that if the contract had been offered by an international bid process, the government could have secured a credible contract partner for less than half the price it is paying China ZTE. The project, which is to enable the Nigeria police to build a monitoring blanket over 36 states and the Federal Capital Territory (FCT) Abuja, will have 37 switches, with some servers and equipment to provide the Internet Protocol (IP) Cloud for the various applications to which the project can be applied, and will support the deployment of 1,500,000 subscriber lines.

Government sources told ‘Business Day’ that the contract was awarded outside the usual budget appropriation and the terms meant that Nigeria paid 25 percent of the contract value, while the balance will be covered by an export credit guarantee by the Chinese Government.

The contract cannot be seen in any of the Federal Government annual budget documents and it is believed that funding would have come from the controversial police reform fund, which appears to be outside the jurisdiction of the National Assembly.

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Wales

Tata Steel to invest €1.0bn inWales

Tata Steel is to invest £800m (€1.0bn) in Wales over the next five years, following a Welsh assembly trade mission to India.

The investment will be used to improve production, product mix, quality and product range at their plants in Wales.

Carwyn Jones, first minister of Wales, met Mr. Muthuraman, Tata Steel’s vice-chairman, in Mumbai as part of the mission. They discussed the company’s forward investment strategy for Wales as well as the Welsh Government’s continuing partnership with Tata, which has plants across Wales, including Port Talbot and Shotton.

The news comes as one of the UK’s biggest steel plants is being reopened after being mothballed in February 2010.

Tata bought the site a year ago for about £400m (€484m), rescuing it from the prospect of closure. About 1,700 workers are now employed and that figure will increase to 1,800, similar to the numbers at the site under the previous ownership.

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Sweden

Saab multi-billion debt Saab has announced official figures of their multi-billion kronor debt, as the struggling car manufacturer and its assets went under the hammer in mid-April.

Russia

Billionaire Alexander Mamut controls 50 percent of microfinancing organization Migcredit, Vedomosti reported.

Migcredit began operations last spring. The company was founded by Direct Group, which has been operating in Russia for over a decade. Its projects include online store Ozon.ru, Rusfinance Bank, and the online shoe store Sapato.

Migcredit provides micro loans to people who can’t get credit from banks. The company describes its target clients as “families with low incomes that

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live from paycheck to paycheck, who take micro loans to pay for living expenses, medical services and to remodel their apartments.”

The company has two main products: loans from 3,000 to 12,000 rubles (€76 to €310) for 25 or 35 days, or €130 to €645 for 12 or 24 weeks. The maximum effective interest rate on these loans is more than 360 percent.

The Moscow Times

Japan

Friendly Cars

Japanese automakers are gearing up to win back lost ground from harsh global competition and a strong yen by capitalizing on their edge in environmentally friendly cars.

Manufacturers are stepping up efforts to improve fuel-efficiency and curtail carbon dioxide emissions, but uncertainty remains over which type of green car will prevail in the future.

Toyota blazed a trail in the hybrid market with its Prius car, selling around 3.65 million of them and other hybrids worldwide as of the end of January 2012. The new Aqua small hybrid, launched in Japan late last year, was a huge hit selling 120,000 in its first month on sale. However, it was aided by the government’s green car subsidy program.

Nissan Motor Co. is pinning its hopes on the electric Leaf, which won the Japan Car of the Year award for 2011-2012. With a single charge, the Leaf can travel around 124 miles.

Japan was the world’s biggest green car market in 2010. By 2020, however, the US, China and Europe are all expected to surpass it as their environmental regulations become more strict.

Saab is in debt to the tune of 13 billion kronor (€1.46 billion), while the company’s assets only total 3.6 billion (€404m) kronor, according to the estate inventory submitted by trustees to Vänersborgs District Court.

The selling of Saab’s estate - the carmaker Saab and subsidiaries Saab Automobile Powertrain and Saab Automobile Tools - will still leave the company in debt, however. While the bankruptcy trustees’ reports are still unfinished, it is estimated that the final debt will be 9.4 billion kronor (€1.5bn).

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after work abc Serbian organized a series of seminars on online aDVERTISING

Serbia Online Advertising Tour The two first Serbia Online Advertising Tours, which gathered 130 participants from the web, media and advertising industry, were organized with the idea of helping regional web sites and local entrepreneurs from Vojvodina and Central Serbia in accumulating more income through online advertising.

I

n order to continue the promotion of online media development in Serbia, by stirring larger budgets into online advertising, ABC Serbia, supported by IREX/ USAID, organized the first two seminars called “Serbia Online Advertising Tour” in Subotica on March 30th and in Kragujevac April 20th. The next seminar will be held at Hotel Aleksandar in Niš on May 11th.

ISTOK PAVLOVIĆ, Internet Consultant

choose a profitable online niche. Leaders of media buying agencies informed local web entrepreneurs about which types of websites are most attractive to their clients, while representatives of established and successful local websites gave good examples of what is needed in order to become profitable on the web.

Seminars were held in pleasant and interactive atmospheres and all the participants showed great interest for the topics presented engaging in active communication with speakers and other members of the audience. The diversity, high profile and interest shown through interactivity at the

Both seminars were a huge success, creating great buzz and positive publicity in the advertising and online business communities in Serbia. Despite progression, the online advertising sector in the country is extremely unused, only making up an approximate 2% of companies total advertising budgets, which therefore makes website survival difficult, especially for SMEs. The events covered a wide range of topics including internet entrepreneurship and gave insights into different forms of websites and the efficient distribution of content through diverse online channels.

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seminars confirmed that the events were of high public interest and thus, ABC Serbia expects the seminar in Nis to continue with the success and attract a similar, if not higher, level of interest.

Lecturers were prominent experts from the Serbian web entrepreneurial sector, local website owners, online media buying representatives, state representatives for the digital agenda and local advertisers including: Dragan Varagić, Istok Pavlović, DraganaVukajlović Krstović, Jelena Jovanović, Ivan Cošić, Bojan Renđulić, Srđan Erceg, Vojislav Stevanović, Slobodan Marković, Ivana Zirojević, Goran Todorov and Milos Perović.

auction see auction south east europe

fast & fair sale!

AUCTION SOUTH EAST EUROPE

Makenzijeva 67, 11000 Belgrade, Serbia Tel: +381 11 2450 508; Fax: +381 11 2450 122 office@auction-see.com; www.auction-see.com cordeditorial@cma.rs

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faces & places

30.03.2012 International Day of Francophonie On Friday 30th March a reception was held to mark the International Day of Francophonie.

The French Ambassador to Serbia, H.E. Mr. Francois-Xavier Denis, hosted fellow representatives of French speaking countries in Serbia, Serbian Government representatives responsible for relations with France, Professors and representatives of France in Belgrade’s public and cultural life.

The French Ambassador to Serbia, H.E. Mr. Francois-Xavier Denis (pictured top right).

02.03.2012 VIP Supporting Serbian Volleyball Five years of successful cooperation between VIP mobile and the Volleyball Federation of Serbia was confirmed with a ceremonial signing of a new four year contract, with VIP investing in the development and popularization of the sport. Alexander Boričić, president of the Volleyball Federation of Serbia expressed his great satisfaction at the continuation of cooperation with VIP mobile. Thanasis Katsiroumpas (bottom right) CEO of Vip mobile with Aleksandar Boričić at the ceremony.

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04/04/2012 Broadband Internet Access On the founding meeting of the National committee for broadband and digital development, Jasna Matić, the new member of the Global Broadband Commission presented the importance of broadband Internet access. The founding meeting in Belgrade was attended by Dr. Hamadoun Touré (bellow) Secretary General of the International Telecommunication Union.

10.04.2012 Swiss Embassy

07.04.2012 Earth Day The Embassy of the Republic of Indonesia in Belgrade invited guests to plant flowers, trees and other vegetation in celebration of “Earth Day”. The green action was attended by all members of the embassy, representatives of the Belgrade municipality of New Belgrade, professors, students of the elementary school “Dragan Lukic”, leaders of the Ecological Society of Citizens and other fans of nature preservation.

To honour the visit of the President of the Swiss National Council and his Parliamentarian Delegation in Belgrade, the Swiss Embassy organized a reception hosted by the Swiss Ambassador to Serbia H.E. Mr. Erwin H. Hofer.

Dragoljub Mićunović (left) President of the Political Council of the Democratic Party, H.E. Mr. Erwin H. Hofer and President of the Swiss National Council Hansjorg Walter (right).

11/04/2012 Shareholders to enjoy greater protection Serbian PM and Finance Minister Mirko Cvetković and U.S. Charge d’Affaires in Belgrade Lee Litzenberger (left) officially opened the conference called ‘Capital Market – Institutions, Investments and Investor Protection’ at which it was said that the new Law on the Capital Market and it’s relevant bylaws would provide greater protection for investors. The conference was put together by the Securities Commission and USAID’s Business Enabling Project.

11.04.2012 Iranian Embassy For the visit of the Deputy Foreign Minister and Spokesperson of the Foreign Ministry of the Islamic Republic Islamic Republic of Iran, H.E. Mr. Ramin Mehmanparast, and his media delegation, the Iranian embassy in Belgrade held a dinner hosted by the Iranian Ambassador to Serbia H.E. Mr. Abolghasem Delfi in Dedinje.

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faces & places

12.04. 2012 Belgrade Dance Festival 2012 Entering its 9th incarnation this year, the Belgrade Dance Festival has rapidly ascended to the status of a world-class cultural event, one that is eagerly awaited by fans of Serbia’s finest performing arts.

The 2012 edition of BDF (March 28th to April 12th) recorded record-breaking crowds going to see numerous modern dance acts and prominent ballet companies, together with expert production teams and choreographers from across the world.

17/04/2012

At the farewell reception organized at the Hyatt Hotel, Aja Jung, director of the Festival, thanked the artists, other participants, sponsors and friend’s of BDF for their support.

Aja Jung and H.E. Mr. Yossef Levi Israeli Ambassador to Serbia (middle), Thanasis Katsiroumpas CEO of VIP mobile (right).

Opening Ceremony

The factory “Fiat Automobiles Serbia”, a project of the Government of Serbia and the Italian company “Fiat”, worth over one billion Euros, was officially opened on the 17th of April. The factory is expected have significant contribution to the recovery of the Serbian economy. Prime Minister Mirko Cvetković, Slavica Djukić Dejanović, the acting President of Serbia, other top Serbian officials and the general manager of group “Fiat Chrysler” (Chrysler-FIAT) Sergio Marchionne, attended the opening ceremony of the factory.

18.04. 2012 Love Cures Campaign For the humanitarian campaign ‘Loves Cares’, the company ‘NIS’ set up stands and collected 6,000 euros worth of donations for the National Association of Parents of Children with Cancer (NURDOR).

All funds raised will be used for the adaptation and furnishing of homes in Niš, which will serve as homes for children in the treatment of serious illnesses, and for their parents whilst staying with their children in the city.

18.04. 2012 German-Serbian Economic Association - DSW The assembly of the former German Business Association in Belgrade, which brings together 220 companies from Germany and Serbia, has changed its name to the German-Serbian Economic Association - DSW. At the announcement, a new Board of Directors were elected, consisting of nine leaders from different business areas.

From left: Tihomir Rajlić (Siemens), David Piegazki (Wolf), Thomas Urban (Dr Oetker), Michael Schmidt (German Economic Delegation to Serbia), Aleksandar Marinković (TUI), Christian Braunig (Confida Consulting), Nikola Ivošević (Rehau) and Jacek Mazurkiewicz (Merck).

Michael Schmidt, director of the German Economic Delegation to Serbia who took over as Executive Director and Coordinator of the Board, thanked the former President of the Board Ernst Bode (Messer-Tehnogas) on his many years of significant involvement in the Association.

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19.04.2012 Days of Belgrade On the occasion of ‘Days of Belgrade’ in City Hall, prizes were awarded for 2011.

Belgrade’s Mayor Dragan Djilas and Aleksandar Antić, President of the City Assembly, thanked the award winners for their work and performances in helping Belgrade look better to the pride of all of its citizens.

On behalf of the awarded, actor Vlastimir Đuza Stoiljković and film director Miloš Radivojević thanked the Major, saying that Belgrade will keep on growing and be a great and noble city as long as its “wise management” is continued.

19.04.2012 50 Years of London Architecture Belgrade International Architecture week and the British Council invited guests to celebrate the opening of the exhibition, ‘50 Years of London Architecture’ at the Progress Gallery on the 19th of April. The event was opened with a speech from the British Ambassador to Serbia H.E. Mr. Michael Davenport (left), followed by words from director of the British Council Tony O’Brien (right), pictured here with Predrag Marković Minister of Culture.

23.04.2012 Israeli Independence Day To mark Independence Day and the 64th anniversary of the founding of Israel, the embassy of Israel in Belgrade held an event, hosted by the Israeli Ambassador to Serbia H.E. Mr. Yossef Levi, at the Hyatt Hotel on the 23rd March. The reception was attended by many foreign dignitaries, representatives of the Serbian Government and friends of Israel in Serbia.

H.E. Mr. Yossef Levi and Vuk Jeremić Minister of Foreign Affairs (top right), H.E. Mr. Yossef Levi and H.E. Mr. Francois-Xavier Denis French Ambassador to Serbia (below).

25.04.2012 IBM and KPMG KPMG, one of the leading audit firms in Serbia, together with IBM, a leader in the field of information technology, organized the conference “IBM and KPMG - The answer to the challenge” at which they presented possible solutions and responses to the pressures of market instability in the areas of business, and information and communication systems.

The goal was to introduce the general public to the possibilities and ways of harmonizing IT processes with the business goals of the companies, as well as possible solutions to crisis situations in the IT sector, due to changes in the market. At the conference among other notable inviduals were Zeljko Vujinović (left), the general director of IBM Serbia and Dušan Tomić a partner and head of financial services audit & advisory at KPMG Belgrade.

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culture calendar CONCERTS Metallica Ušće, 8 May @ 20.00 Live Nation, Adria Entertainment and Belgrade Arena are proud to announce one of the biggest music events of this year. Metallica returns to Serbia once again and will perform their entire “Black Album”. The band will also perform music and songs from their previous albums. “Black Album” reached the first place in the lists of more than 25 countries and sold more than 25 million copies worldwide. Since its founding 1981, Metallica has evolved from an underground heavy metal band to one of the most successful bands in the world with large number of fans of all ages. Sales of their albums reached more than 100 million copies worldwide and won a gold and platinum circulation in over 40 countries. “Black Album” was awarded the prestigious RIAA Diamond award (for sales of over 10 million copies in the U.S.). Their last album, “Death Magnetic” found on the first places in 32 countries and has sold 28 million copies worldwide. Metallica won

numerous awards in their career, including nine Grammy Awards, two American Music Awards, two MTV Video Music Award and VH1, ERPN Action Sports and Music Artist Contribution Award, over 30 California Music Awards, the rising San Francisco Governor Award, MTV: ICON and most recently Creative ASCAP Voice in 2004.

Metallica is one of the few bands that after so many years still give good live performances.

Progressive metal bands Gojira from France and Machine Head from California will perform as the opening acts.

Gabi, Meri i Tereza – The Divas Sava Center, 11 May @ 20.30 Three legendary pop music singers from Croatia - Gabi Novak, Mari Cetinić and Tereza Kesovija will jointly perform at the concert named “DIVAS” on 11th May in Sava Center. Belgrade audience and fans of these magnificent singers should be

prepared for the unforgettable concert.

Three divas, three distinctive voices, with an accompanying orchestra led by jazz guitarist Anthony Gela during the two-hour concert will sing the biggest hits of their long-standing and fruitful career.

“The three of us are different and these differences are very precious to us,” explains Tereza, while her colleague Gabi Novak said: “We are full of emotions that we share with the audience, and our audience returns to us three times more.”

SevdahBaby Dom Omladine, 19 May @ 21.00 The first major Belgrade solo concert of the Balkan dance music phenomenon! Today, as well as six years ago, SevdahBaby consists of only one man - Milan Stanković. His music is a mixture of different musical cultures. Two years ago, gathered around their truest and most talented friends, Milan formed the SevdahBABY LIVE, raising the concept of one-man-band to a completely different, higher level. Vocalist of the band, Djixx and Lou Benny, provide a great performances and creative input throughout the concerts. It is a powerful set of top musicians of the new gen-

eration, which in truly represents combination of the best of both worlds: the power of music as a programmed digital music matrix on the one hand and the beauty of a live performance of experienced instrumentalists on the other.

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Kolarac Chamber Music Kolarac, 13 May @ 11.00 Piano trio Weisburg, Nikola Aleksić, violin, Vladimir Pavlović, violoncello, Jelena Djajić, piano Program: Božić, Despić, Vujić, Korać

Pink Martini Belgrade Arena, 31 May @ 20.00 The American band Pink Martini will perform at a concert in Belgrade Arena on 31st May. Pink Martini, the orchestra who finds inspiration in romantic Hollywood musicals, will perform in Belgrade for the second time in five years. Music of Pink Martini is a captivating mix of music and poetry from various parts of the world and different genres.

Their music is reminiscent of romantic Hollywood musicals of the 40s and 50s of the last century and only the melodies and rhythms collected from different parts of the world are the new and modern. The group has 12 members and has performed with thirty international orchestras, including multiple appearances with Los Angeles Philharmonic, National Symphony Orchestra of America and the BBC concert orchestra. The band participated in the ceremony of opening of the new building that is a home of Los Angeles Philharmonic Orchestra. Their other engagements ksandar Radojičić on percussions, Feđa Frenklin on drums, Branislav Radojković on electric contrabass, Bratislav Radovanović on guitar and Dušan Petrović on saxofon. Atomic is one of the most popular jazz bands in Scandinavia in the last 10 years. It is made of five excellent instrumentalists .CL CLASSICAL MUSIC Concert of the winner of Isidor Bajić Memorial Kolarac, 6 May @ 11.00

include concerts at Carnegie Hall and the Museum of Modern Art (MOMA) in New York.

Pink Martini cultivated mainly characteristic processing of songs by other artists, the so-called cover treatment, with the addition of citations and references from other musical genres like classical chamber, Cuban, Brazilian music with a strong touch of the so called sound of Parisian cafes. Their song Simpatico sang in the French language and its chorus "Je ne veux pas travailler" (I do not want to work), has become one of the biggest sensations in France and was nominated for song of the year award.

Pink Martini songs were in films like In the Cut, Nurse Betty, Josie and the Pussycats, Tortilla Soup, Shanghai Kiss, Mary and Max, and Mr. Mr. & Mrs..

Smith and in the series "Dead Like Me," "The Sopranos" and the like.

Chamber Music Concert Kolarac, 15 May @ 18.00 Free entrance Belgrade Philharmonic Orchestra Kolarac, 18 May @ 20.00 Darko Butovac - conductor, Ljubinko Lazić and Filip Savić - contrabass Program: M.Ristić ‘Suita giocosa’, Botessini ’Passione amorosa’ for two contrabasses and Prokofiev ‘Symphony no.5’

Musical Workshop Kolarac, 9 May @ 18.00 Vladimir Aćimović, piano

Sensation Innerspace Belgrade Arena, 12 May @ 21.00 Sensation returns to Belgrade on 12 May, this time with a brand new concept called Innerspace.

This is the second time that Belgrade is hosting this musical phenomenon. The first Sensation in the Belgrade Arena was a unique experience with guests from over 42 countries. Like last year, Sensation will be held at the Belgrade Arena, produced by ID & T from the Netherlands and organized by Global Insomnia SEE.

Fish in Oil and Atomic Kolarac, 21 May @ 21.00 Bands Fish in Oil and Atomic will perform in Kolarac on 21st May. Fish in Oil performs electric instrumental music and its members are Ale-

RTS Symphonic Orchestr Kolarac, 11 May @ 20.00 Stanko Jovanović - conductor, Milica Miljanić - piano Program: Mozart for piano and orchestra no.19

This is the line up this year’s Sensation Innerspace: Mr. White, Fedde Le Grand, Dennis Ferrer, Juan Daniel Sanchez & Sanchez, Sunnery James & Ryan Marciano and Hardwell.

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Zagreb’s Philharmonic Orchestra Kolarac, 19 May @ 20.00 Dimitrij Kitajenko - conductor, Monika Leskova - violoncello Program: Ravel ‘Valtz’, Tzhaikovski ‘Variations on rococo theme’ and Mendelson ‘Symphony no.4

culture news Belgrade Philharmonic Orchestra Kolarac, 25 May @ 20.00 Muhai Tang - conductor, Aleksej Volvodin - piano Program: Rachmaninov ‘Concert for piano and orchestra no.3’ and Tchaikovski ‘Symphony no.5’ ballet Zorba the Greek Sava Center, 10 May @ 20.00 To mark the 150th anniversary of the Serbian National Theatre in Novi Sad, the oldest Serbian professional theater and 35 years of Sava Center, on 10th May ballet “Zorba the Greek” by Mikis Theodorakis will be held at the Great Hall of Sava Center.

This ballet spectacle breaks all box office

film BELDOCS Sava Center/Dom Omladine/DKC, 4- 9 May @ 20.00 International Documentary Film Festival BELDOCS will be held from 4th to 9th May on three locations – Sava Center, Dom Omladine and DKC. Program is yet to be announced.

The exhibition of ceramics “At the Côte d’Azur” by Pablo Picasso, which has been set up since February 2nd at the “Beko” factory premises, is being extended until May 13th due to great interest. This way, before the exhibits are moved to Dubrovnik, the fans of ceramics and the admirers of Picasso’s art will be able to enjoy Marina Abramović - The Artist is Present Sava Center, 9 May @ 20.00

records since it was performed at the Serbian National Theatre and the Sava Center more than 100 times, always to a packed audience and with standing ovations. Many have watched this ballet several times. Soloists, ballet ensemble, chorus and orchestra of the Serbian National Theatre of Novi Sad will all take part in this ballet, with Konstantin Kostjukov in the lead role. opera The Love for Three Oranges National Theatre, 5 May @ 19.00 The Love for Three Oragnes, also known by its French language title L’amour des trios oranges, is a 1919 satirical opera by Sergei Prokofiev. It was premiered in Chicago on 30th September 1921, using a French libretto, translated from original Russian libretto based on the Italian play ‘L’amore delle tre melarance’ by Carlo Gozzi.

Pablo Picasso exhibition ‘At the Côte d’Azur’ Beko factory, 2 Feb - 13 May

The Brilliant Corners Atelje 212, 5 April The Brilliant Corners is a French troupe of Emanuel Gat, a true star of today’s stage and a favorite of local audiences. His troupe has already been a guest of Belgrade with the local settings

art Goethe Gerila Goethe Institut Belgrade, 1-10 May

100 Serbian Trumpets Sava Center, 26 April 100 Serbian Trumpets held concert in Sava Center on 26th April. 100 Serbian Trumpets is unique orchestra made ​​up of the best trumpeters in the south-west of Serbia, from Užice, Dragačevo, Vranje, Surdulica, Grdelice...trumpeters selected from orchestras Dejan Lazarević, Ekrem Mamutović, Veljko Ostojić, Sinisa Stanković, Mija Bondžulića, Ivana Jovanović, Ace Novkovića, Milan Nikolić Donja, Miroljub Kremić ...

100 Serbian Trumpets is a Serbian brass team formed to show the overall skill of our best trumpeters. After Dragačevo, 100 Serbian Trumpets is a new opportunity for the Serbian trumpet sound to show audiences its new sound, in more demanding and

recital, The Rite of Spring and Winter Journey. This year Emanuel Gat presented his new play Brilliant Corners that was produced in 2011 by order of the Venice Biennale of Dance. Emanuel Gat arranged choreography for the troupe.

Goethe-guerrillas are young people between 20 and 25 years, to whome the Goethe-Institut provided an opportunity to independently devise and implement cultural projects in Belgrade, Pristina, Sarajevo, Skopje and Zagreb. Their projects are related to music, fine arts, social feonomena, language and other areas, and are not subject to any limitations. It is enough to deal with German culture or at least have something to do with it.

Night of Francophone and French Songs SCCC, 23 April Students of theater troupes of French Language Department of the University of Zadar and Zagreb as well as students of musical group sHpiritus mOvens from the Faculty of Philology in Belgrade, had the

Fabio Sgroi Italian Cultural Institute, 1-14 May Photo exhibition of Italian photographer Fabio Sgroi will be held in Italian Cultural Institute from 1st to 14th May. Exhibition boasts original ideas and a desire to present an image of Belgrade in the last decade, constantly re-analyze its views and sensibilities.

Fabio Sgroi also shows people, landscapes and places that bring to life a dynamic reality of the rich contradictions and, at the same time, full of loneliness and poetry.

this extraordinary exhibition one whole month longer. The premises of the “Beko” factory have been adapted solely for the purpose of this exhibition.

During the exhibition, more precisely during the previous two months, the exhibition has been seen by almost 10.000 local and foreign visitors.

Since recently all the visitors have had the opportunity to see the exhibition through guided tours, from 14h, 15h, 17h and 18h, as well as screenings of documentaries about the life and work of Pablo Picasso.

The setting is a selection of photos, only black and white, that show poetic aura of the identity of the Serbian capital through the lens of Fabio Sgroi.

honor and pleasure to host the evening of Francophone theatre and French songs. The event was held in SCCC at Novi Beograd on 23rd April.

The program included: - Turn Tilija accident, the group performed FRANCOFOLIE from the University of Zadar - Three versions of the life of Jasmine Reza, LE group performed at the University of Brocoli Unijambiste - The concert of French songs, performed by a group sHpiritus mOvens with the Faculty of Philology

spectacular way.

Sava Center was packed on 26th April and many fans of Serbian trumpet sound enjoyed the show of 100 Serbian Trumpets.

Share Conference 2 Dom Omladine, 26-29 April Second SHARE conference was held from 26 to 29 April at Belgrade’s Dom Omladine, when Belgrade again became the epicenter of progressive ideas and exchange knowledge in the areas of society, technology, Internet and new media with intensive music program that simultaneously took place in a few select clubs and alternative spaces in the city. Two thousand activists, bloggers, engineers, programmers and artists from Serbia and abroad gathered during three days of interesting lectures, workshops and meetings in the educational and creative platform.

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interview 55th Zmaj Children Games to take place in Novi Sad from 6th to 10th June

Cultural Feast for

CHILDREN

dreds of national and international artists and over 7,000 kids each year.

During the festival, Novi Sad is rejuvenated whilst the festival is considered the most beautiful and best organized event of its kind. The audience plays a big role in the jolly festival feeling that spreads throughout Freedom Square and Zmaj Jova Street. Tens of thousands of citizens become willing participants in a celebration of youth.

Since 1997, children’s writer Dušan Pop Đurđev has been the father figure and director of Zmaj Children Games.

We are talking to him about the Games, the current state of children’s literature and the artists who have remained loyal to children across the world.

■ Although there is a ‘formula’ when it comes to staging Zmaj Children Games, they always turn out differently. How hard is it to keep things fresh?

- Every year, we try to make Zmaj Children Games’ June programme better, different, original and special. The festival begins with a memorial service held at Zmaj’s grave in Sremska Kamenica, The biggest creative festival for children in Southeastern where, every year, actors recite Zmaj’s Europe brings together hundreds of national and international poem ‘Light Graves’. This solemn moment also marks the beginning of the artists and over 7,000 kids each year. festival, and the bearers of Zmaj’s poetry stick have the honour of officially open‘Childhood’, Zmaj Children Games have ing the Games. The holders of Zmaj’s he Zmaj Children Games for also implemented important projects stick, which bears their name until the youngsters and anybody feeling like ‘December Days of Zmaj’ and ‘June following year’s games are well-known young were created in the birth Programmes’ which, today, are considchildren’s literature writers. The writer place of the forbearer of Serbian chilered the biggest festivals of creativity of ‘The Blonde Tuft’, Miroslav Antić, dren’s literature Jovan Jovanović Zmaj, was the first holdfifty five years ago. The event Being involved in literature, and especially children’s er of Zmaj’s stick in 1984, followed was devised in literature, has become unprofitable for young and by great bards of honour of the pragmatic people poetry like Dragreat man who gan Lukić, Pero was a doctor, for children in Southeastern Europe.

Zubac, Moša Odalović, Dobrica Erić, educated in Vienna, and the most fruitEvery year in June, Novi Sad beDuško Trifunović, Raša Popov, Mira ful and best-selling writer of Serbian comes the culture capital for children.

Alečković... During the festival, we literature for children. Over time, the Literary meetings and promotions, have workshops and seminars where festival became a genuine cultural inconferences on literature, exhibitions, children’s literature theorists, writers, stitution and an international centre drama and various other artistic proeducators, sociologists, teachers and for children’s literature. Apart from a grammes, creative workshops and a professors exchange their experiences documentation centre, a publishing carnival of poetry bring together hunand critical observations of children’s company and a magazine for kids called

T

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■ There are also special awards for selected participants of the Zmaj Children Games. What do these awards entail?

of this type of literature. The following are just a few of the award recipients Dušan Radović, Milovan Danojlić, Stevan Raičković, Ferenc Feher, Sima Cucić, Jovan Adamov, Branka Veselinović.

- We have a plaque which is a special recognition of exceptional creative contribution to children’s literature and for “Boundless loyalty to the world of childhood and the noblest of human aspirations.” This award was first given

- I wouldn’t talk about that in general terms. There have always been people who were avid book readers and those who were not. And there always will be...

literature and school reading materials and assess the current problems that children’s literature is facing.

■ We often hear that people today, especially the young, are not keen on reading. Is that true?

We live in instant times, everything is so fast and quickly digested with little thought needed. I think that we will have to take a step back.

ers, but we should always look back to what is considered literary heritage.

■ Also, there is a lot of talk about the crisis of art in the 21st century. How does that reflect on the Games?

- We live in instant times, everything is so fast and quickly digested with little thought needed. I think that we will have to take a step back, and this is where Zmaj Children Games plays a role.

Unfortunately, institutions such as ours are virtually extinct. There are a handful of institutes and art houses in Europe that are more geared towards the

Children’s writer, DUŠAN POP ĐURĐEV

in 1987. That same year, the great poet Desanka Maksimović received the Great Plaque. Other plaque recipients are Aleksandar Vučo, Branko Ćopić, Gvido Tartalja, Mira Alečković, Branko V. Radičević, Arsen Diklić, Dragan Lukić and many other laureates. Awards are also given to writers for their creative contribution to the contemporary expression of children’s literature and the popularization

Simply put, there are people who love to read and they are the ones that should be offered books. I think that jubilees are nice occasions to remember certain books and authors, and possibly get new generations interested in them. For instance, we are currently honouring the bicentennial of Charles Dickens’ birth and young people need be informed of that. Every time period has its own writ-

adult population than children. We try to do everything with children watching so that we get some kind of feedback from them. We always need to confirm that everything we devise for children is understandable and interesting to them.

They need to say what interests them.

Hence, whether we are painting or writing for children or ourselves we always need to analyze our work.

■ Zmaj Children Games also publish a magazine called ‘Childhood’ which talks about children’s literary theory and is one of the world’s top magazines of its kind.

- The idea behind the magazine has been incorporated into Zmaj Children Games from the very beginning. Apart

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from Serbia, our associates come from the ex-Yugoslav republics and we also publish articles translated from other European languages. Many children’s authors have contributed to ‘Childhood’ and have become permanent fixtures in our culture like Desanka Maksimović, Gvido Tartalja, Stevan Raičković, Dušan Radović, Miroslav Antić, Milovan Danojlić, Ljubivoje Ršumović, Dobrica Erić, Dragan Lukić, Rade Obrenović, Pero Zubac.

Nearly every writer of children’s literature has participated in Zmaj Children Games and many of them have published their first prose texts and poems in the magazine.

nian, and this year we plan to translate Serbian poetry into Romanian. These are bi-lingual books.

thors of children’s books have emerged.

I guess that is the providence of the time that we live in.

- Unfortunately, the number of authors has declined as Serbia’s publishing com-

- We live in a time of visual media, but, despite that, computers are not

panies are more interested in buyers than readers and that poses a problem.

Being involved in literature, especially children’s literature, has become un profitable for young and pragmatic peo ple. In the past, we had a huge number of children’s book authors, but, over the years, they have departed and young authors are few and far between. In the last twenty years, only four or five au-

going to destroy literature and books, just like TV did not destroy theatre or photography the fine arts. Maybe it is not that hard to guess which direction Serbian children’s literature will take in the future. Undoubtedly, some kind of hybrid form will emerge that will destroy classical genres, remove them from the mainstream and try to reconcile them with the challenges brought on by the new technological civilization through the advantages of visual media to the fullest. What shape or form that is going to take I really don’t know. If I knew, I would have done it myself. Some new, young and talented people are probably going to do that. I am absolutely certain that children’s literature is not going to disappear and that we, Zmaj Children Games, are going to continue to honour the verse. ■

■ In the past, our children’s literature authors used to be very popular. Is that the case today?

■ Do you think that computers are the reason for that or does the blame lie somewhere else?

■ You also have a publishing company. How profitable is to publish children books in this day and age?

- The books published by Zmaj Children Games are mostly non-commercial and, because of that, are not released by big publishing companies. These are books that are important for literary theory and are appealing to very few readers, except, for example, students of literature or scientists who use them for their doctoral or master theses. Each year, Zmaj Children Games publish a book of foreign poetry (translated into Serbian language) in order to stay in touch with the latest literary developments in foreign countries and to get to know their literary experiences. These books are useful for ‘comparison purposes’ and for informing ourselves of how children’s literature functions in other countries. So far, we have published Norwegian poetry, as well as German, French, Italian, Hungarian and Roma-

JUST LIKE PETER PAN

Although it was established almost half a century ago, Zmaj Children Games are just like Peter Pan – it refuses to grow up and is determined to stay in the most beautiful part of childhood where the world is more colourful, melodious and happier, and where everything is a game. To quote the director of Zmaj Children Games, Dušan Pop Đurđev: “Life is not a fairytale or a fantastical story. Hence, listen to Zmaj’s verse – ‘Now you are given a chance to embrace the world’ – and take it as a well-meaning piece of advice. Use your childhood while you still have it. Everything that comes later is a story of childhood, as beautiful and interesting as you made it out to be.”

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feature PGA EUROPEAN TOUR

Rich Mans

Game â– By Max Williams

The three leading professional golf tours in Europe, the European Tour, European Seniors Tour and the developmental Challenge Tour are all run by The PGA European Tour. The organisations headquarters are in Virginia Water, Surrey, England 62 |

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O

nly eclipsed by the United States-based PGA Tour in worldwide sporting prestige, the European Tour, established by the British-based Professional Golfers’ Association, is a money making machine. The majority of the three tours events are held in Europe, but, in recent years, an increasing number have taken place in other parts of the world outside of the namesake region, notably Asia.

The PGA European Tour company is run by a professional staff via a board of directors comprised of 12 elected past and present tour players and also controlled by its playing members i.e. golfer-controlled, with a tournament committee of 14 current players. As of 2007, the chairman of the tournament

committee is Thomas Bjørn and chairman of the board is Neil Coles.

The European-based events on the Tour are nearly all played in western Europe, the most profitable of them taking place in the United Kingdom, Ireland, Germany, France and Spain. In addition to its

By the end of the Second World War, prize money became more significant, encouraged by the introduction of sports coverage on television. However, each event was still organised separately by golf clubs or associations, or a commercial promoter, which set the format for the modern game.

The Race to Dubai now has a total prize fund of €6.1 million, with the winner receiving a cheque for €1.1 million regular duties, The PGA European Tour also conducts Ryder Cup Matches in cooperation with the PGA of America.

History

ing co-sanctioned with other tours. From then on, the tour returned to being played mainly in Europe, and the events on the European continent generally had higher prize money than those held elsewhere, excluding the major championships, which were added to the tour schedule in 1998. Since 2012, the European Tour has reverted to seasons coinciding with the calendar year.

Race to Dubai

In the beginning, the European Tour season ran for six months from April to October, and was based exclusively in Europe, mainly in the UK and Ireland, for example, in 1972 the season consisted of 20 tournaments, of which 12 were in the UK and one in Ireland.

The first professional golf players were clubmakers and greenkeepers who also taught the game to wealthy men who could afford to play (early handmade equipment was expensive) and played “challenge matches” against one another for small purses. The game of golf itself began in Scotland. The first multi-competitor stroke play tournament was The Open Championship, introduced in 1860. That year it was for professionals only, and attracted a field of eight. In 1861, amateurs were permitted to enter. LOUIS OOSTHUIZEN In contrast to many other sports which originated in the UK, such as European Tour Season cricket, the amateur-professional divide There are generally only minor varianever created major problems in golf, at tions in the overall pattern of play from least at the elite competitive level – this is one year to the next. Occasionally touran ‘elite’ sport after all. naments change venue, and quite often Over the next few decades going into the change name, particularly when they get early 1900s following the creation of The a new sponsor, but the principal events Open Championship, the number of golf have permanent and traditional places tournaments with prize money increased in the schedule and this determines the slowly but steadily. Most competitions rhythm of the season. One thing not to started in the United Kingdom, but there change is the enormous amount of prize were also several “national opens” in money available. various countries of Europe. However, From 2000 until 2011 the season actufor many decades it remained difficult, if ally started later than in previous calnot near impossible, for golfers to earn a endar years, but the seasons were still living from prize money alone. In 1901, named by calendar year, rather than for British professionals started to be repreexample 2005–06, which would reflect sented by The Professional Golfers’ Asthe actual span of play. All of the events sociation, and it was this body that ultiup until late March of 2011 took place mately created the European Tour. outside of Europe, with most of those be-

JUSTIN ROSE

Before 2009 Race to Dubai, Topthe5inaugural European Tour

Players Players: Name, Nationality, Roy Mcilroy, NIR, Justin Rose, RSA Louis Oosthuizen, ENG Peter Hanson, SWE Lee Westwood, ENG

Prize money 2012 €1,348,517 €1,257,331 €979,005 €952,033 €928,787

The European Tour Order of Merit was the season-long competition based on The Tour’s International Schedule. Attracting the greatest players and putting up some of the highest player money in PGA history, The Order of Merit’s 39 years on the circuit produced some of the most memorable highlights in golfing history. Then came The Race to Ducordeditorial@cma.rs

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UPCOMING Tournaments:

THE 2012 RACE TO DUBAI BONUS POOL

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

€1.1m €650,000 €500,000 €375,000 €325,000 €275,000 €225,000 €175,000 €125,000 €100,000

louis oosthuizen

Race to Dubai champion in 2010 to become only bai. The new system features true worldwide the fourth continental European to win the Harry competition. From the first tournament, the AfriVardon trophy awarded to the ‘races’ top player. ca Open, through to the season-ending DP World Kaymer won four times in 2010, capturing his Tour Championship, Dubai, at the Jumeirah Golf maiden Major title at the US PGA Championship Estates. in addition to the Abu Dhabi Golf Championship, All five continents – Europe, America, Asia, Africa the KLM Open and the Alfred Dunhill Championand Australasia – stage tournaments and the schedule currently features 46 counting events towards The Race to Dubai.

In 2009, The Race To Dubai had a bonus pool of €5.2 million which was distributed among the top 15 players at the end of the season, of which the winner took €1.14 million. The tournament, along with its €5.2 million prize fund, is contested by the leading 60 players in the ‘race’ following the seasons penultimate event, the Hong Kong Open. The winner of the Race To Dubai also receives a ten-year European Tour exemption and secures Category 1 Membership (the highest level) of The European Tour similar to st andrews, the crAdle of world golf the winners of The The PGA European Tour is a golfer-controlled Open Championship, the US Open, the organisation whose primary purpose is to US PGA Championmaximise the income of tournament golfers ship and the Masters ship on his way to €4,461,011. Following this, Luke Tournament. The reduction in prize money, anDonald became the third winner of the Race to Dunounced in September 2009, was due to the globai when he completed a historic money list doubal economic downturn – even this ‘rich man’s ble to become the Number One player on both The game’ couldn’t hide from the crisis.

European Tour and the US PGA Tour. Donald won England’s Lee Westwood won the inaugural three times during the season, capturing the WGC Race to Dubai in 2009, winning two tournaments – Accenture Match Play Championship, the BMW during the season –the Portugal Masters and the PGA Championship and the Barclays Scottish Open.

Dubai World Championship – and accumulating He was runner-up on another two occasion and finrecord earnings of €4,237,762. Northern Ireland’s ished in the top ten a further five times, finishing Rory McIlroy finished second with €3,120,923 ‑ outside the top ten only three times in a remarkably not bad for second place. consistent season. His earnings of €5,323,400 set a Martin Kaymer succeeded Lee Westwood as The

May 03 - May 06

• Reale Seguros Open de España • Real Club de Golf de Sevilla, Seville, Spain €2,000,000 May 10 - May 13

• Madeira Islands Open • Santo da Serra, Madeira, Portugal €675,000 May 31 - Jun 03

• ISPS Handa Wales Open • The Celtic Manor Resort, City of Newport, Wales €2,100,000 Jun 06 - Jun 09

• Nordea Masters • Bro Hof Slott GC, Stockholm, Sweden €1,500,000 Jun 14 - Jun 17

• SAINT-OMER OPEN presented by Neuflize OBC • Aa Saint Omer GC, Lumbres, France €500,000 Jun 21 - Jun 24

• BMW International Open • Golf Club Gut Lärchenhof, Cologne, Germany €2,000,000 Jun 28 - Jul 01

• The Irish Open • Royal Portrush GC, Portrush, County Antrim, Northern Ireland €2,000,000 64 |

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new European Tour record.

During the 2011 event, The European Tour announced a significant three-year agreement to extend The Race to Dubai through to the end of 2014 with a new name and title sponsor for the season-ending finale.

The next three editions of the DP World Tour Championship, Dubai, will return to Jumeirah Golf Estates, host venue since the inaugural Race To Dubai in 2009, with the prize fund increasing by €382,000, and the winner’s cheque rising by €950,000.

RACE TO DUBAI AWARD CEREMONY

State of Play

In a decision that highlights the importance of the Euorpean Tour, and which according to the Associated Press, “reflects the changing nature of a global game,” one of the top young American amateurs, Peter Uihlein, announced in December 2011 that

apparently weakening on-course position and its evidently strong sponsorship attraction will play out in the future.

The role of Asia will no doubt be crucial in the tours success; in November 2005 a new European Tour-sanctioned event in China called the HSBC Champions tournament was played for the first time. With a purse of €3.4 million, it was by far the

Jul 12 - Jul 15

• Aberdeen Asset Management Scottish Open • Castle Stuart Golf Links, Inverness, Scotland €3,030,000 Jul 25 - Jul 28

• Austrian Golf Open presented by Lyoness • Diamond CC, Atzenbrugg, Austria €1,000,000

It is beyond dispute of how important the European Tour has become, not only in Golf, but in sports as a whole due to the vast sums of money given to the game by sponsors LUKE DONALD

he would not return for his final semester at university and would begin playing professionally in Europe the following month - both through sponsor’s exemptions on the main tour and on the developmental Challenge Tour.

It is beyond dispute of how important the European Tour has become, not only in Golf but in sports as a whole due to the vast sums of money given to the game by sponsors and the winnings potential for the players. The prize funds of many European Tour events have increased rapidly since the late 1990s. Nonetheless, in 2005, an increasing amount of media attention was given to the perceived failure of the European Tour to attract as many leading players to its events as in the recent past. It is unclear how this contradiction between the Tour’s

Aug 23 - Aug 26

• Johnnie Walker Championship at Gleneagles • The Gleneagles Hotel, Perthshire, Scotland €1,700,000

richest tournament ever played in Asia. It now has a purse of €5.3 million, and has been a World Golf Championships event since 2009.

Golf has long been known as a sport played by the wealthy – that rings true now more so than ever. ■

Aug 30 - Sep 02

• Omega European Masters • Crans-sur-Sierre, Crans Montana, Switzerland €2,100,000 Sep 06 - Sep 09

• KLM Open • Hilversumsche GC, Hilversum, The Netherlands €1,800,000 Sep 13 - Sep 16

• Italian Open • Royal Park I Roveri, Turin, Italy €1,500,000 Sep 20 - Sep 23

• Madrid Masters • TBC, TBC, Spain €1,000,000 cordeditorial@cma.rs

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restaurant

Fresh, Modern,Classic ■ By Max williams

Tribeca, although known by most, continually evolves and constantly surprises with it’s fantastic combination of reasonable prices, exceptional service and mouth-wateringly delicious food.

You may already know the name, you may have even eaten there, but Tribeca is always worth another visit.

tribeca new belgrade

T

he question with Tribeca is where to begin with the compliments? Should I start with the atmosphere, seasonally inspired menu, on trend dishes or the service? Logic dictates that I start from the moment I walked in the door, however, and unusually, my dining experience began with a spot of culture on my way in.

This one of two Tribeca restaurants, the other being in New Belgrade, is located at 22 Kralja Petra, which is slapbang in the city centre, 40 metres from Kalemegdan and, literally inches off Knez Mihajlova, the first thing that hit

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speaks volumes about the restaurant.

Now, dear readers, I will not lie. I have eaten here before and I am fully aware that the restaurant is well-known – particularly for a chocolate soufflé that is the best I have ever eaten. Thus, I won’t pre-

The primary reason for Tribeca’s popularity, especially amongst the foreign community, is the way in which meals are prepared. Everything is freshly prepared from domestic or regional produce me were the gorgeous photographs by Serbia’s own photographer extraordinaire, Nebojša Babić. This delightful cultural surprise wasn’t merely down to the very cool looking black and white pictures but the fact that they were, and still are, being exhibited by Tribeca themselves. This simply bit of promotion

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tend that I was a newbie to the fine offerings, which is the reason why I chose Tribeca after all. I was in the mood for a non-standard dining experience and I got one. In fact, I got great one.

The primary reason for Tribeca’s popularity, especially amongst the foreign community, is the way in which

meals are prepared and that breakfast is served until 1 pm which is a rarity these days. Everything, and I do mean EVERYTHING, is freshly prepared from domestic or regional produce. I must acknowledge that one may have to wait a few extra minutes for a dish, but the wait is for obvious reasons - your food is being cooked from scratch and that takes time. Personally, I am rather impatient, however when the food is as good as it is at this restaurant, I have absolutely no complaints.

As I settled in on the comfortable velvet bench seat in the contemporary interior, I had a quick chat with one of Tribeca’s co-owners. She informed me that the staff are all young, and enthusiastic to make the restaurant as highquality as it can be, constantly suggesting new dishes and cocktails. It really shows.

Not only are they clearly well-informed, unlike in many of Belgrade’s other eateries, they are polite and as friendly as

letus edulis expert. My date’s carpaccio was also a treat for the taste buds. The beef was tasteful but not overpowering and very nicely presented, as is every dish at Tribeca. To accompany the meal we both chose a glass of wine. The wine list, with over 80 on offer, stored, quite artistically brilliantly, in a London red phone-box, is a mix of Serbian and for-

in Wales and New Zealand. And that is a big, big compliment.

Due to the fact that I am fully aware of how delightful the soufflé is, I decided to round of the exquisite meal with, in honour of the restaurant’s name, New York cheesecake, and forced my date to have the home-made krempit – which tasted better than my grandmothers, a

any I have encountered thus far on my Serbian culinary journey. Following our conversation, where we talked about her and the chef’s trips to some of Europe’s most famous restaurants to get inspiration for Tribeca, I was left with my date to enjoy the meal to come.

To start I chose a salad with porcini mushrooms, goat’s cheese and pear, while my companion ordered the beef carpaccio. As anyone who knows me will know, I am enemy of the mushroom, so why ask did I order a salad with mushrooms? The answer is because, not only am I dieting, which went horribly badly as you will discover near the end, it is such a modern and interesting dish that I couldn’t resist sampling it. And boyoh-boy was I glad I did. The salad was dressed to perfection, and the mushrooms had a texture that I would compare to a soft steak, however I am no bo-

eign fare, all available by the glass and without the usual inflation in price.

Moving on to the mains I went with the calamari stuffed with zucchini, tomato and shrimp and my dining partner chose the rolled lamb with herbseasoned roast potatoes. The squid was cooked to perfection and had none of the rubbery texture that is a normal occurrence at many other well-known restaurants in the city. I have always been a fan of seafood, and I can happily confirm that this quirky take on an old dish is a hit. Once again, forward thinking and experimentation has paid off, as is standard at Tribeca. The lamb was a keen reminder of home. Although it was not my order, I obviously couldn’t turn down a bite, which turned into about ten. The simple lamb dish proved to be as finely cooked as any I have ever eaten, including one’s I have sampled on my travels

higher compliment there is not. With my two favourite deserts in the world in front of me, the aforementioned diet flew out of the window.

Serbia cannot do cheesecake. The base is always wrong. Apparently though, just naming a restaurant after a suburb in the city U.S. city that lends its name to it means you can.

More likely though is that Tribeca has employed a chef who has studied his trade, honed his skills and enjoys making food, no matter if it is classic or experimental, the best it can possibly be.

And that’s what Tribeca is all about.

For a very reasonable price you can enjoy the restaurant over and over again and never have the worry that it will let you down. The famous New York expression is ‘The city that never sleeps’, Tribeca is ‘The restaurant where you always want to eat’. ■

For a very reasonable price you can enjoy the restaurant over and over again and never have the worry that it will let you down

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chill out

Action Man President

lenge. Correspondents said the apparently choreographed display seemed designed to enhance the president’s image as a man of action. The winning car will be given to the country’s national sports museum. Mr. Berdymukhamedov, a former health minister, aged of 66, was first elected as president in 2007 and returned to power in February 2012, came to power following the death of his predecessor, Mr. Niyazov.

The president of Turkmenistan won his country’s maiden car race after an “impromptu” decision to enter at the beginning of April. Gurbanguli Berdymukhamedov drove to the track in the capital Ashgabat in a Bugatti sports car to watch. Suddenly asking to take part, he changed to a Turkishmade Volkicar and won the time trial chal-

Most Important City Rising mortgage costs, inflation... such things are mere trifles for the superrich who call London their home. In fact, they are so impressed by the place that it has just been voted the most important city in the world. The findings come from The Wealth Report, a study which focuses on the ten international cities deemed the most impressive by high net-worth individuals - each with assets in excess of €18.7m. Political power and influence were just two factors in assessing what made a city important, according to the survey, carried out by Knight Frank Research and Citi Private Bank. Other important reasons cited by the megawealthy included luxury housing availability and personal safety. Taking 2nd and 3rd place were New York and Hong Kong.

Micro Home Made from scavenged materials, Derek Diedricksen’s tiny houses cost just €150 to make. What the little wooden dwellings lack in space, is made up for in style thanks to plenty of decorative detail.

The 33-year-old uses parts of discarded household items to ensure each home has basic functions ‑ the glass from the front of a washing machine is converted in a porthole-like window while a sheet of metal becomes a counter. Assembled in his back-yard, the carpenter has built the portable shelters ranging in size from just four to 2.2 m2. The largest of his structures is the Gypsy Junker at 24 square feet with a roof height of up to 5 ft 10 inches. It is made out of shipping pallets, castoff storm windows and discarded kitchen cabinets.

American Dream Sold The town of Buford, Wyoming U.S.A population 1 - was sold for €685,400 to an unidentified buyer from Vietnam after an 11-minute Internet auction that attracted worldwide interest. The tiny town garnered online viewers and bidders from 46 countries for the sale of 10-plus acres with a convenience store, petrol station 68 |

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and modular home located in south-eastern Wyoming. The buyer, who wished to remain anonymous, flew to Wyoming from Vietnam for a purchase he likened to “the American dream,” according to a statement released by Williams & Williams, the auction house which handled the sale. The settlement was one of two tiny Western towns recently put up for sale. Pray, Montana U.S.A, population 8, is currently on the market for €1.06 million.

Balcony Pool Architects have made a splash with a bold design for new towers in Mumbai featuring swimming pools enclosed in glass instead of balconies. Known as Aquaria Grande, the 37-storey skyscrapers were the result of a collaboration between architect James Law and Indian real estate company Wadhwa Group. The complex will have

200 apartments, three levels of car parking, a gym and sauna. But not everybody feels inspired by the ambitious vision, with technology blog Gizmodo describing it as an ‘architectural nightmare’. A contributor on the project said the design represented an ‘unbelievable skyscraping residential complex’.

They went on to say the pools were among the ‘most outstanding and eye-popping features in the world of building design.’

iBrain A team of California scientists have developed the world’s first portable brain scanner, and it may soon be able to “read a person’s mind,” playing a major role in facilitating medical breakthroughs. “This is very exciting for us because it allows us to have a window into the brain. We’re building technology that will allow humanity to have access to the human brain for the first time,” said the project’s leader, Phillip Low. He also said the device could be used at home and worn during sleep, and also comes with a USB port for transferring data. Beyond so-called mind reading, the device has potential medical applications, such as enlisting the iBrain to help doctors prescribe the correct medication based on a person’s brainwave responses.

Wooden Mansion The world’s tallest treehouse, located in Crossville, Tennessee, makes the Swiss Family Robinsons look like a bunch of amateurs - but that might be because it was made to order by God. The 1960 Disney film about a family shipwrecked on an island features an impressive treehouse complete with its own water mill. But the Robinson’s home pales in significance next to this structure, which took designer Horace Burgess 11 years to build. Horace, who lives in the 10 story wooden house, said he began the build in 1993 after he received a message from God, who said he would never run out of materials if he built it. The enormous treehouse is a whopping 929 m2 but only cost Horace a reasonable €9,140 thanks to his economical use of recycled materials.

Long-Fingered Frog Last seen in 1949, the 1.3-inch-long amphibian was found during a December 2011 biodiversity survey in the small central African country of Burundi, scientists announced in April. Thwarted by decades of political conflict, few biologists have so far been able to explore Burundi’s ecosystems. “The last time this species was seen was the first

time this species was seen - that’s the state of our knowledge in this little corner of Africa,” said team member David Blackburn, a herpetologist at the California Academy of Sciences in San Francisco. The frog’s original discoverer, did not describe exactly where in Burundi he’d found the animal, so he and his colleagues were “shooting in the dark” when they began their search for the frog. cordeditorial@cma.rs

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travel Extraordinary Holiday Destinations

Off the Beaten Path

I

1/10

t’s clear that whatever your holiday pleasure - from white sand relaxation to rain forest hikes and wild water sports - there’s a destination out there waiting for you. No doubt you’ll have to shell out a little more to sunbathe on your own private patch of Antigua or fly to an island on the other side of the world, but if you’re looking for a holiday that’s nothing short of spectacular, these are all worth the extra euros. After all, who else at the office can say they spent their hard-earned break in a remote corner of the earth. Make your April holiday one where you take a break, literally and figuratively, from the norm. Bon voyage!

Isla de Margarita, Netherlands Antilles The “unspoiled queen of the Caribbean” is a little island with a lot to offer. Saba is the smallest island in the Dutch-governed Netherlands Antilles, but its history is crammed with gleaming loot: A pirate haven in the 1600s, its very own scallywag Hiram Breakes uttered the eternal words, “Dead men tell no tales.”

These days, Saba not only pulls in visitors for its steep, breathtaking mountain views, rock climbing and rain forest trails, but also for what lies beneath: The island boasts some of the Caribbean’s best scuba diving with unspoiled reefs and impressive underwater mountains.

2/10 Dunk Island, Australia If you’re looking to unwind with more than your usual game of golf, check out Dunk Island on the Great Barrier Reef, home to Australia’s only island golf course. Originally dubbed the Island of Peace and Plenty by its inhabitants, the island offers a relaxing getaway, smack in the middle of Australian tropical rain forest. The island’s exclusive resort offers horseback riding, kayaking, snorkelling, scuba diving, and more, plus a stunning trail that runs along the beach, cuts through rain forest and climbs up Mount Kootaloo for a gorgeous view of neighboring islands.

3/10 Tongatapu, Tonga Map out four island groups, include unspoiled beaches, rain forests, and deep channels for sailing, sprinkle in coral islands and cover every activity a holidayer could want, and you’ve got the Kingdom of Tonga. Billed as the “home of the friendly islanders,” Tonga advertises a calm, relaxed approach to life, but knows how to rev it up if you’re after holiday thrills. For a taste of adventure, strap into a rugged kart for an island safari or trek alongside waterfalls and chasms at ‘Eua National Park; do some sailing, fishing, surfing or kayaking for your water-sport fix.

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4/10 Jumby Bay Island West Indies Holiday spots don’t get much more luxurious, private or breathtakingly beautiful than Jumby Bay Island, a private resort off the coast of Antigua that hosts the retreat homes of a handful of celebrities. Any and every water sport you could want is on offer, including waterskiing, windsurfing and deep-sea fishing, or take a speedboat to explore nearby uninhabited islands. Moreover, if you just want to relax, lie out on renowned Pasture Beach or Jumby Bay Beach and spot one of the island’s endangered birds or lizards in the process.

5/10 Peter Island British Virgin Islands If being with the crowds on a public beach isn’t your thing, ditch the masses on Peter Island, a private resort island perfect for revving up the romance in your life or simply relaxing to your heart’s content. Walks along secluded beaches, private yacht trips, gourmet dining… Peter Island is all about luxury.

And if you’re stuck taking your children along for the ride, don’t give up on getting action just yet - the resort is family friendly, with lots of ways to amuse your tribe of “minimes.” Also, investigate nearby Dead Chest Island, reported to be where Blackbeard actually dumped 15 men and a bottle of rum.

6/10 St. Vincent St. Vincent and the Grenadines Looking for adventure, relaxation and vibrant culture? Hiking a volcano, swimming a waterfall, taking off on a Jeep Safari tour, and getting down to calypso are just some of the ways you can explore the lively island of St. Vincent. The head honcho of the Grenadine Islands, this Caribbean gem boasts dozens of bays and black and white sand beaches, and offers snorkeling, yachting, and stunning dive sites.

For something more inland, check out the French and British forts and other historic sites left over from the island’s tumultuous history, or hit one of the islands numerous festivals. cordeditorial@cma.rs

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7/10 Yasawa Island, Fiji Looking for a remote paradise where not even televisions are allowed? Set your sights on Yasawa Island, a remote getaway in a group of Fijian islands by the same name. One of the Fijian language’s 15 words for heaven is “Yasawa,” and it’s not hard to see why with only one resort on the entire island offering a luxurious stay in a handful of bures (thatchedroof luxury accommodations meaning “sanctuary” in Fijian). When you’re not visiting the local villages, game fishing or exploring one of the world’s most unspoiled reefs, try exploring the nearby caves and coves.

8/10 Huahine Island French Polynesia If you want to experience Tahiti without the crowds, Huahine Island is the place to go. In reality two islands connected by a bridge, Huahine boasts long stretches of white sand, crystal blue bays and lush, green mountains. But this paradise is far from your grandmother’s flower bed; if you want an adrenaline rush, Huahine is a prime spot for diving, sailing, jet skiing, kite surfing, and even shark feeding - if you don’t mind a hook hand as a holidaysouvenir. If you’re into a slower pace, try the gorgeous walking trails, lagoon tours, horseback riding, or a bird’s-eye view by helicopter.

9/10 Rangali Republic of Maldives One thousand, one hundred and ninety islands, spread over 26 coral rings like pearls in the sea… the Republic of Maldives is breathtaking even from the sky. But the Maldives is more than just an island chain, it’s a nation steeped in sea-faring tradition, made up of people with African, Arab and South Asian roots. Translation: beautiful women and some of the world’s best diving. With 87 resort islands to choose from, you won’t come up short on idyllic beaches, spectacular dive sites and sights to see. The Maldives has all the pieces of a once-in-a-lifetime holiday.

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10/10 Jeju Island South Korea South Korea might sound like an unlikely spot for an unusual getaway, but one glance at Jeju Island’s emerald ocean views, lush greenery, rare and unique waterfalls, and not-too-hot climate make it an obvious pick for an extraordinary holiday. Extinct volcano Mount Halla dominates the middle of the island, and Jeju is peppered with the results of its wrath; dozens of unique rock formations and hundreds of inactive craters make for sights you won’t see anywhere else. Want a sunrise to seal the deal with a gorgeous travelling companion? Try the view from the rim of a 9,000 square-meter volcanic crater.

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techno talk In-car tech you need/want in your life

Forget multi-link axles, these days it's in-car technology that makes the real difference on your daily drive. The latest infotainment systems are finally beginning to catch up with tablets and smartphones when it comes to connectivity and features.

We've shown you the best hybrid motors, so now we turn our attention to the sleekest in-car kit to salivate over â– by Max WILLIAMS

Audio, Beats by Dre Dodge Charger Anyone eyeing up this years Dodge Charger should be salivating at the knowledge that the 2012 range comes with an 11-speaker Beats by Dre audio system pre-installed.

These speakers are driven by a 12 channel amplifier, whilst the head unit carries digital audio sources such as iPod integration, Bluetooth audio streaming and a USB port.

The dashboard also features a nice 8.3inch display with navigation controls. Trust us, you're are going to enjoy your Dreinspired tunes in the Charger.

Blue Me Fiat 500 Fiat's frills-free Blue&Me does exactly what it says on the tin. The basics amount to little more than Bluetooth connectivity, media playback, voice control and a USB port. But the sum is so much greater than the parts. Thanks to partnerships with companies like Microsoft and TomTom, Blue&Me offers top-notch navigation for sensible money, support for easy end-user upgrades and even app installation. Blue&Me is Fiat at its best and a perfect match for the fiesty 500.

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Maps and More Volkswagen UP! Maps & More is a removable Portable Infotainment Device (PID), developed in association with Navigon specifically for the Volkswagen Up!. To the uneducated eye it looks like a basic satnav, but it’s fully integrated into the Up!’s systems meaning you can control everything from tunes to telematic tech such as ParkPilot's distance control. It hooks up to your mobile and is just ¤275 at entry level. Volkswagen is also planning to release a range of apps for the pint-sized prodigy this year.

iDrive BMW BMW's iDrive technology idea is thus: the driver should have full control over the systems within the car, but ultimately should not be distracted from the road. The 4 most frequently used functions (CD, radio, telephone and navigation) are assigned to buttons above the Controller, and the 8 buttons underneath can be programmed to any function you wish. As if this wasn't easy enough, most BMW models also feature voice recognition for iDrive, so you don't even need to worry about buttons.

Mylink Chevrolet Chevrolet already uses OnStar systems in their cars and MyLink is an expansion to this onboard package. MyLink is very media-based and features Pandora Internet Radio and Stitcher SmartRadio as well as full wireless connectivity with MP3 players and smartphones. This includes the ability to give simple voice commands to your connected device via a simple tap on a steering wheel button. Thanks to Chevrolet’s own OnStar RemoteLinkapp you can also check up on your car from anywhere via your phone. cordeditorial@cma.rs

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techno talk

Sync and MyTouch Ford The goal with Ford’s MyTouch infotainment package was to make a system that could be used comprehensively without the need for the driver to ever take their concentration off the road. Bluetooth support for Smartphones means you can play music, send SMS messages and make phone calls without having to take your device out of your pocket. MyTouch also features the more common 3D navigation, climate control and a multitude of diagnostic tools, as well as full voice-recognition controls.

‘Say What You See’ Land Rover This 8-inch touch screen acts as a hub for accessing your MP3 and Smartphone devices, as well as the usual climate control, DAB Digital Radio as well as a HDD Navigation System should you choose to have it. One interesting, though optional, part of this onboard system is the ‘Say What You See’ (SWYS) feature. This is Range Rover’s answer to voice recognition and control, however the system is intuitive as it learns from your past behaviour as well as adapting to recognise the accents of multiple drivers.

Connected Mini Connected uses your iPhone to power the car’s multimedia – just download the app, attach your phone via USB and your Mini is now internet-ready. You can send directions to the car’s satnav, update Facebook and Twitter and even generate music playlists based on your driving behaviour. Of course, the app can be updated with new features as they’re developed. Given that most people upgrade their handsets a lot more often than they buy a brand new car, using a smartphone to power the latest in-car features makes a lot more sense.

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MMI Audi If it's sheer weight of features and functionality you demand, look no further than Audi MMI. The latest version of MMI touch incorporates an optional MMI Navigation plus system which also boasts voice support that should help you get to your destination. There's a touchpad in the central console to select your albums or type in addresses and a WiFi hotspot for your internet surfing needs. Audi, renowned for the quality of its engineering has come up trumps yet again.

Comand Mercedes Acting as a 'command centre' for all your audio and communication needs, the three-pointed star has recently added internet browsing and send-to-car navigation support to its COMAND in-car platform. Voice control is provided by Nuance who already deliver similar technology for the Apple iPhone 4S which means this feature is certainly more polished than some others, too. Merecedes has always been at the forefront of car technology and is showing no signs of slowing down its development pace.

Executive Interior Concept

DICE

Bentley Mulsanne

Mercedes

How many times have you sat in the back of your Mulsanne and wished you could more easily get some work done? Fortunately, the engineers in Crewe have created the Bentley Executive Interior Concept (EIC), an orgy of Apple-powered gear surrounding one of the most beautiful rear seats available.

The automobile windshield is a useful place to overlay contextual information. Mercedes' Dynamic and Intuitive Control Experience (DICE) offers a look at how the manufacturer envisions getting everything from traffic data to information about passing landmarks. The concept ditches buttons and touch screens in favour of gesture-based controls.

cordeditorial@cma.rs

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fashion

Women Dress to Impress…

Who? F

ashion is a game in which women compete and one in which they make the rules. Beauty standards are set by women. The gender war is not between males and females, it’s between women and other women. Each season brings a whole new palette of ‘it’ items and different trends to follow. One of the major factors why women are so fashionhungry is status. Following trends and being en vogue gives off the illusion (or reality) of belonging to a certain crowd – the fashionable type, the higher class – and often more significantly than that, shows how they can afford to focus on this type of luxury.

Leandra Medine – more commonly known as The Man Repeller, for her blog www. manrepeller.com – is one of the first (and definitely most prominent) people in the public eye to have brought attention to this ‘situation’. What women wear because they follow high fashion, not only holds no interest to men, but often literally repels them.

Medine gained a large amount of followers in a short amount of time and is currently one of the most popular fashion bloggers with a following of fellow ‘man repellers’.

The fabricated definition of being a ‘man repeller’ is used for comic relief, but holds a

Women spend hours getting dressed for an evening out, but they actually do it for other women, rather than the opposite sex. Generally men don’t understand why women wear odd things like mullet skirts and all the other avant-garde fads that capture women’s attention… Yet women en masse still regularly follow trends that have nothing to do with looking sexy.

large amount of truth to the way men view what is considered high fashion. man•re•pell•er1 [mahn-ree-peller] (noun) Outfitting oneself in a sartorially offensive way that will result in repelling members of the opposite sex. Such garments include but are not limited to harem pants, boyfriend jeans, overalls (see: human repelling), shoulder pads, full length jumpsuits, jewelry that resembles violent weaponry and clogs.

In the end, everything comes down to more or less - basic human instinct. Women mostly dress to compete with, rather than impress, other women. Instinctually it’s down to competing for the attention of men. When a woman arrives somewhere – what is the first thing she does? Does she scope the room looking at the men? No. She doesn’t even scope the room to see if men are looking at her – she automatically rates herself in comparison to the other attractive women in the room. Within seconds of a woman entering a room, she already has the most attractive women pin-pointed – target locked.

CUTLER AND GROSS

Individuality Cutler and Gross is a renowned eyewear company founded by Tony Gross and Graham Cutler. These two are famous for their unique approach to design, their devotion to detail and their sophisticated sense of humour. Each season, this luxurious eyewear brand surprises with refreshing innovations and unpretentious individuality.

price:

€316

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mandarina duck

Casual Style

FREYWILLE

Floral Symphony

Mandarina Duck, the Italian fashion brand, specializes in leather goods and travel items. Always bright and beautiful, Mandarin Duck is a tireless traveller and a faithful partner for the whole of its life – exactly as any of the company’s products are for you!

A romantic palette of opulent colours entertaining the senses.

FREYWILLE’s Floral Symphony collection is a tender tribute to nature and its magnificent splendour. The Floral Symphony collection was distinctively all designed for those who relish life and it. the joys that come with FREYWILLE boutique, Terazije 26, Belgrade price:

price:

xxx

€220

Collection “Floral Simphony, Bouquet of Dreams”

€ 768

www.freywille.com

BRIAN ATWOOD

Comfort

price:

Brian Atwood shoes quickly became a symbol of ultimate quality and sophistication. Although Atwood is avoiding commercial promotion and publicity, he is famous as a favourite of A-list stars Scarlett Johansson, Victoria Beckham, Demi Moore and many others. Each Brian Atwood pair of shoes is made with much care and undivided devotion.

€845

Issey Miyake

White Bao Bao This unique bag – part of the accessorybrand series Bao Bao Issey Miyake – resembles a 3-D puzzle made from pieces of fabric. The beautiful design has smooth, shiny, inter-connected triangular pieces on the outside with a black mesh fabric on the inside.

Giordano torresi

price:

€ 450

Daily Wear

The upper part of the sho e is made out of the finest calfskin, elegantly integrated wit h the platform shrouded in hor sehair with a modern design elegance, comfort and details tha t will separate you from the oth ers, are a trademark of Giorda no Torresi brand Dobracina 5, Belgrad e +381 11 3286 045

price:

€365

Sogno Italiano cordeditorial@cma.rs

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Step it up L

ooking into male fashion trends for the Summer of 2012 we cannot help but notice how rich in style, colour and texture they actually are. Menswear designers have drawn inspiration from various sources, like schoolboy uniforms, safety wear, tropical beeches and aristocratic preppiness. Yes, we mostly talk about women’s fashion CorD but we don’t want to stay away from men’s fashion either. Men’s fashion trends for summer 2012 will be diverse and interesting. You will no longer find trousers which are like leggings or bright pink colours in designer collections. Men’s fashion seems to have turned to masculinity again!

Although, is still a little on the chilly side outdoors, a man who is devoted to having the best possible look always gazes towards the new coming fashion trends.

Thus, we are taking a small step into the vast realm of men’s fashion and present you with some of the most fashionable and unique pieces from some of the most notable designers in the world. While men are still considering what to wear in the upcoming summer, fashion designers already said their final word on the matter long time ago. The styles they offer vary from elegance to extravagance.

Men often tend to either completely ignore fashion (God forbid), or just go by the basic rules such as the basic black suit or the Ralph Lauren polo – which is fine – but lacking in creativity. Why not stand out? Standing out – when done right, of course – can only bring bonuses to your lifestyle. Women are more attracted to men with style, other men are intimidated, and you get a strong sense of individuality which is rarer among men and easier to achieve than among women.

price:

€100

mandarina duck

Unique Piece price:

€450

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timex 80

Tik Tok

Timex has the style for everyone.

From the locker room to the board room, there is a great Timex style time-piece for you. This is the best for anyone who values oldschool cool.

junya watanabe

Old Style Featuring a chunky Goodyear-welted tank sole and contrasting cotton-twill and leather panels, these wingtip brogues from Junya Watanabe are an innovative marriage of old and new.

etro

price:

€535

price: Paul Smith London

The Suit

€606

Refresh your tailoring selection with this Paul Smith London double-breasted blazer. Lightly structured and cut for a slim fit from bold blue cotton-twill, it will provide a high-contrast focal point for your warm-weather outfits.

Slim Command attention in these trousers from Italian label Etro.

Perfect for the gent who isn’t afraid of vibrant hues, this cotton-twill pair can be dressed up or down to suit your mood and the occasion.

price:

€220

BALENCIAGA

Jacket

price:

€2,516

This textured-leather jacket reimagines the iconic biker style, aptly displaying the designer’s ability to take things in a new, progressive direction.

price:

€530

arfango

Soft Touch

Arfango is considered as one of the top handmade shoe makers in Italy, specifically famous for its velvet loafers. These are much higher quality shoes and fabrication than other comparable velvet moccasin makers. The quality and workmanship of Arfango in this style is absolutely unmatched. cordeditorial@cma.rs

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profile

My Work is

My Hobby Privately, as mother of two girls Mia (7) and Sofija (4), I spend most of my days as the Director for Corporate Communications at Actavis, the global generic pharmaceutical company, which privatized Zdravlje Leskovac in 2003

O

ne never knows where the next day will take them…this is how my life and career developed. A director could probably make a

Maja Gedošev, Director of Corporate Communications at Actavis completely changed industry. In fact my career took a sharp turn when I

fantastic movie out of my story. I left Serbia in 1991 to continue

signed the employment contract with Actavis – the global generic phar-

my education in Heidelberg, Germany, where I completed American high

maceutical company which privatized Zdravlje Leskovac in 2003. I was not

school with honours. My parents always stressed the importance of edu-

even aware of the business/industry I was getting into. I remember telling

cation in one’s life, and this is how I ended up in one of the most prestigious

my boss during the interview of how little I knew about the pharmaceuti-

hospitality management schools in Switzerland from where I got directly

cal industry. I said “I have never even taken an aspirin!” Nevertheless, he

employed by Hyatt International and worked for their flagship properties in

confidently responded “This is the exact reason as to why you should start

Hong Kong and Germany.

working for Actavis…the whole industry is going through a transition, glo-

Working with people is definitely one of the biggest challenges in working life ‑ in my case it is a prerequisite for anything I ever do. The hospitali-

bally and locally, and we need some new ideas when it comes to public relations and strengthening our corporate brand.”

ty business definitely made me the person I am today. It taught me how to

On reflection, it was a tough job, especially taking into account that

understand the needs and expectations of others, how to respect individu-

Actavis was going through a global transformation with a completely new

als, calling problems ‘challenges’ and always seeking solutions. I am thankful for this practical and priceless experience as it helped me in my career develop-

On the global level, Actavis has managed to position itself as the 4th largest generic pharmaceutical company with excellent potential to move in to 3rd place before the end of 2012

ment. Leaving Hyatt was

management team at the very top, and with a completely new management team locally here in Serbia.

As confirmation that everything is about people, we went through both glo-

not easy, as I tend to emotionally attach myself to institutions I work for,

bal and local changes over the past two years and we can now proudly say

but, looking ahead, I had a lot on the plate waiting to eaten!

that the work we did was good!

I enrolled in an MBA program in Bonn, Germany, and successfully com-

On the global level, Actavis has managed to position itself as the 4th

pleted my studies in 2002. It was a fantastic experience with a lot of tips and

largest generic pharmaceutical company with excellent potential to move

tricks on the do’s and don’ts. Following this I felt ready to take on more com-

in to 3rd place before the end of 2012. On the local level, we are also proud.

plex challenges so I decided to move back to Belgrade. Shortly after my re-

Actavis is one of the strongest domestic players with a very well estab-

turn, I was the Executive Director of the Foreign Investors Council, which at

lished brand: ‘Actavis – Think Smart Medicine.’

that time had just been established to assist foreign investors in realizing

While learning at work, I must say that to a great extent I have relied on my

their investment goals in Serbia. Along with the Board of Directors, from sev-

colleagues, not just the management team but everyone. All my co-workers

eral well established companies in different industries (banking, packaging,

hold a piece of the puzzle called “Successful Corporate Communications”,

advisory, legal, media, FMCG industries etc.), we managed to grow the asso-

and without them the puzzle would be incomplete. I must point to one of the

ciation from 14 to 160 members within 3 years. I participated in the develop-

fantastic CSR projects we have all developed under the Actavis umbrella – ‘A

ment process of the White Book, which is still one of the documents govern-

Step for the Heart’ campaign, which has run successfully for a year now. This

ment representatives consider key for identifying business obstacles inves-

campaign is proof that something can be done differently in the pharmaceu-

tors and domestic companies face in everyday business life.

tical industry and was developed for the general public with an end goal to

From FIC, I moved to the IFC of the World Bank, which involved me moving from Belgrade to Vienna in 2007, where I took on the responsibili-

decrease heart diseases in our country, which currently ranks first in Europe when it comes to deaths caused by cardiovascular diseases.

ty as the investment promotion officer assisting investors from all over the

I enjoy my work, I enjoy it so much that every day I tell someone about

world in better understanding the vast opportunities our region has to of-

the good things we do. Proof of this consistent communication are the re-

fer. After three years spent in Vienna, my career path brought me back to

ports we receive via pharmaceutical media clippings which clearly position

Belgrade. My return was when I was at a kind of crossroad in my life as I

Actavis as a leader! ■

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93 May 2012

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