CorD Magazine No.96 by CorD Magazine

The idol of a new generation.

A Daimler Brand

The new A-Class.

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COVER

Mrs Atifete Jahjaga, President of the Republic of Kosovo

Freedom, Independence, Democracy and Equality – For All “It must be clear to everyone that Kosovo is a sovereign and independent

contents

country with its own legal bodies and institutions, and that it exercises its sovereignty throughout the whole of its territory,” says Kosovo President Page 08 Jahjaga, speaking exclusively to CorD

How Much and on What

Vladimir Gligorov, Professor at the Vienna Institute for International Economic Studies

We use our heart to realise our vision Polona Krpač, General Manager, Zastava Tapacirnica,a.d Kragujevac

Freedom, Independence, Democracy and Equality – For All

Mrs Atifete Jahjaga, President of the Republic of Kosovo

Is the Governor of the Bank of England Too Powerful? View from THE UK

GLOBAL DIARY

FACES & PLACES

Solidarity and similarity

E xcursion to THE TRUTH

H.E Yossef Levy, Ambassador of the State of Israel to Serbia

Anja Suša, Bitef selector and theatre director

We are still not ready for the EU

MILICA DELEVIĆ, Democratic Party MP in the Serbian National Assembly

Big problems and big expectations

Rugby

The problem’s a lack of work – not too many people!

E thno Villages and Farmsteads Alternative breaks

Rodoljub Šabić, Commissioner for Information of Public Importance and Personal Data Protection

A Sport Divided

September 2012 EDITOR: Saša Marić s.maric@aim.rs ART DIRECTOR: Maja Dušić m.dusic@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/PROOFREADING: Mark Pullen m.pullen@aim.rs TRANSLATION: Snežana Bjelotomić PROJECT MANAGERS: Biljana Dević b.devic@aim.rs Nataša Nešić n.nesic@aim.rs Svetlana Okanović s.okanovic@aim.rs Jelena Bulić j.bulic@aim.rs EXECUTIVE DIRECTOR: Ruža Ristanović r.ristanovic@aim.rs GENERAL MANAGER: Ivan Novčić i.novcic@cma.rs FINANCIAL DIRECTOR: Ana Besedić a.besedic@cma.rs EDITORIAL MANAGER: Tanja Banković t.bankovic@aim.rs

Comment page 06

Goran Ćirić, acting General Director, Post Srbija

Savings Shouldn’t be Made on Investments

Business Dialogue

Milan Bojović, director of company Puteva A.D., Užice

Profile page 82

S eeing the world clearly

WORK WEAR

S triving for success

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

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comment

How Much and

on What

Vladimir Gligorov, Professor at the Vienna Institute for International Economic Studies

Public spending in Serbia is generous and targets mostly public employment, social transfers and subsidies. A significant amount is spent on purchases of goods and services

lower level of imports than in the pre-crisis period. Still, overall public revenue comes to around 40 percent of GDP, which is not an insignificant burden on the economy and the households. How has this level of expenditures and their structure been chosen? Given the low level of collection of revenues from direct taxes and contributions (which are a form of direct taxes), clearly neither the employees

ublic revenue is collected from taxes, mostly indirectly, through

and employers nor households and corporations show a preference for

contributions and fees of various types. Revenue usually falls

such a high level of public expenditure, at least not through their willing-

short of expenditure by between three and four percent of GDP,

ness to pay for them. This is especially the case with the revealed pref-

or between six and seven percent ahead of elections, while this year the

erence for social transfers and remuneration for public employees and

fiscal deficit as a whole will be in excess of seven percent of GDP. The in-

purchasing goods and services. That is why indirect taxes and fees are a

tention is to bring down the deficit in the next three years or so to below

major source of public revenues.

three percent of GDP, mainly through cuts in expenditure and to a much

However, people don’t seem to put their votes where their money is. On

lesser extent by raising taxes. There is no tangible plan how that can be

one hand, they show a preference for coalition governments, which as a

done, at least not at the moment.

rule spend more. On the other hand, they vote for parties that represent

Why is spending generous? Because general government spending,

special interests, e.g. pensioners, or those who promise public employ-

that is total spending at all levels of government, is between 44 and 47 per-

ment and subsidies. That tends to maintain a high level of public employ-

cent of GDP. It went up to the latter number in the good times, just before

ment and social transfers and subsidies. Corruption takes care of the sup-

the beginning of the crisis, and has returned to that level again this year

port for a high level of expenditure on purchases of goods and services.

(it may even be higher depending on the final performance of the GDP).

This preference for low direct taxes and high public expenditures has

That is significantly higher than in most other comparable countries, with

two main consequences. One is a persistent fiscal deficit and, thus, a

the exception of neighbouring Hungary. The difference with, for example,

need for public borrowing with increased costs of the refinancing of pub-

Croatia, Bulgaria, or Macedonia is between seven and 10 percentage points. There may be some problems with the measurement of GDP or public expenditure, but even if those are liberally corrected, the level would be too high. Public money is mostly spent on social transfers, which account for around 20 percent of GDP. The lion’s share goes

The intention is to bring down the deficit in the next three years or so to below 3 percent of GDP, mainly through cuts in expenditure and, to a much lesser extent, by raising taxes

on pensions, around 14 percent of GDP. These expenditures should mainly be covered by contributions, but they are only about 10

lic debt. The other is for indirect taxation which is regressive and tends

percent of GDP. Again, such a wide discrepancy is quite unusual among

to fall on the income from labour. Both are unintentional consequences

countries in transition or those in Europe in general. Expenditure on pay-

of the preference for high public spending without the complementary

ments to public employees is the next item and is perhaps above what

wish to pay for that spending.

can be found in comparable countries, by about two to four percent of

This preference will be tested in the very near future, due to the gov-

GDP. Similarly, subsidies are higher by about one to two percent of GDP,

ernment’s decreased ability to borrow to pay for its persistent fiscal def-

as is spending on goods and service purchases.

icit. There are basically two possibilities: either for both social spending

Public revenue mainly comes from indirect taxes, VAT and excis-

and public employment to be aligned with the contributions and direct

es, and from contributions. In the case of direct taxes, more is collect-

taxes, or indirect taxes and fees will have to be increased to cover the

ed from households than from corporations. This latter source of pub-

shortfall. In the first instance, the reduction of subsidies and purchas-

lic revenue fell during the crisis and has yet to recover. Somewhat more

es of goods and services could mitigate some of the adjustment in so-

comes from fees, which have increased their share in the overall struc-

cial transfers and compensations. Given the political commitments of

ture of revenues. Not very much is collected from tariffs, mainly because

the current government, however, it is likely that the alternative course

of the free trade agreements that have been signed and currently due to

of higher taxes and continuous borrowing will be adopted. ■

6 |

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interview Mrs Atifete Jahjaga, President of the Republic of Kosovo

Freedom, Independence,

Democracy and Equality – For All ■ By TEAM CorD

exclusive “It must be clear to everyone that Kosovo is a sovereign and independent country with its own legal bodies and institutions, and that it exercises its sovereignty throughout the whole of its territory,” says Kosovo President Jahjaga, speaking exclusively to CorD

8 |

96 September 2012

www.cordmagazine.com

Obstructions

Seven agreements have been reached, which marks significant progress, but there are hindrances in the implementation of these agreements, due to obstructions caused by Serbia

leaders

Only as legal and legitimate leaders of our countries, expressing the will of our citizens, we can talk and find sustainable and long-lasting solutions, which are in the benefit of our citizens and our countries

former senior policewoman, Kosovo’s president is the first female and first non-partisan president of the former Serbian province, as well as being the youngest ever leader of Europe’s youngest nation. Speaking to CorD, she also says that she aspires to be the president of all of Kosovo’s citizens, noting: “We are a state built upon civic principles and we want all our Serbs, irrespective of whether they live on the border with Serbia or in central Kosovo, to enjoy equal rights and freedoms.”

Neighbours

The existing situation is detrimental to the citizens and to our two countries, since to integrate to Europe the development of good neighbourly relations is a major prerequisite

■ The UN Security Council has just reviewed the regular quarterly report of the Secretary General, which assesses the situation in Kosovo as “generally peaceful”, but still fragile. It also notes concern about the reaction of the Kosovo police during an incident that occurred with the celebration of St. Vitus’ Day. How do you see Kosovo today?

■ How do you evaluate the results of negotiations conducted so far between Belgrade and Pristina and in your opinion which are the most important conclusions of these negotiations? - The dialogue that took place in Brussels between representatives of the Republic of Kosovo and the Republic of Serbia, upon

“The relationship between our two countries is of great importance for peace and stability in the region and for the Euro-Atlantic path of our countries. We can move forward towards integration by helping each other on the way, but not by confronting one another”

the facilitation of EU representatives, aimed at the relaxation and normalisation of relations between our two countries and the improvement of life, work and communication for citizens on both sides of the border. So far, seven agreements have been reached, which marks significant progress, but there are hindrances in the implementation of these agreements, due to obstructions caused by Serbia. Even though Serbia justifies them by saying that all the details of the agreements were not sufficiently clear, we have asked the EU to find the format and mechanisms that would oblige the countries to implement every detail of the agreements they consented to in Brussels. I have stated that there is no other way, no alternative to normalising relations between Kosovo and Serbia than through dialogue. In the dialogue the parties are fully equal, there is full reciprocity on all issues and the solutions are European. The relationship between our two countries is of great importance for peace and stability in the region and for the Euro-Atlantic path of our countries. We can move forward towards integration by helping each other on the way, but not by confronting one another.

- It must be clear to everyone that Kosovo is a sovereign and independent country, with its own legal bodies and institutions, and that it exercises its sovereignty throughout the whole of its territory. We do understand the feelings that Serbs, both inside and outside of Kosovo, have in relation to St. Vitus’ Day and with the great loss they suffered six centuries ago. However, as in any other country, an official request must be presented for any manifestations organised and an official permit must be received. The participants must also act in a dignified manner, without offending the feelings of other citizens, without nationalist or racist slogans. This is not how the manifestation proceeded and the Kosovo Police, under the continuous presence of the media, undertook its measures. Kosovo today is a free and independent country, recognised by more than 90 countries, 22 of which are EU countries. Kosovo has bilateral relations with many countries. It is a factor of peace and stability, developing good neighbourly relations with all countries. We would like to have such relations with the cordeditorial@cma.rs

96 September | 9

Republic of Serbia as well, to mutually exchange ambassadors and sign interstate agreements that would regulate many issues.

■ The completion of the supervised independence of Kosovo in September has been dubbed the beginning of a new phase in relations between Kosovo and the EU. What do you expect? - Since the end of the war in 1999, Kosovo has passed through several stages of international supervision. All of them have given a valuable contribution and have helped in state-building, development and the advancement of democratic proc-

versa. Identical problems – from unemployment and corruption to bureaucracy and organised crime – could bring people closer together, but it seems that politicians have a desire to separate them as much as possible? - Yes, that is completely true and we must create human policies that are in the service of the citizens, regardless of their ethnicity or religion; policies that bring citizens closer to each other by exchanging experiences and by working together to find solutions for the advancement of the whole region and fighting all the phenomena that exploit people, that increase

“Kosovo’s integrity is full and guaranteed and I am strongly against any divisions on ethnic or other lines between the Republic of Kosovo and Republic of Serbia. There will be no division of territories, no exchange of territories and no displacement of populations”

inequality and that prevent the free flow of ideas, goods and people. The democratisation of the society and the efficient control of the government are fundamental in building a better future that would allow us to live in peace and not in conflict.

esses and general economic development. In 2008 Kosovo declared its independence through legitimate and legal representatives elected by the people, representatives of all the communities, not just Albanians, as Serbian officials like to emphasise. This was independence with mild supervision and continuous assistance, especially in the field of the Rule of Law. The International Steering Group (ISG) has decided that all the conditions to end supervised independence have been met. This opens the way to democratic processes of state-building, to obtaining full competencies and full international subjectivity of the Republic of Kosovo. The Republic of Kosovo, as an individual country, has a clear agenda for its integration into the EU. ■ Many Kosovo Albanians do not know about the problems of ordinary people in Serbia, and vice 10 |

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■ Speaking about Belgrade’s dialogue with “legitimate representatives” of the government in Pristina, representatives of the Serbian government have expressed their readiness to make compromises. Do you think this is a new “sense of realism” for Belgrade? - In practice it is usually very hard to define what compromise is. We have expressed our readiness and willingness as equals, to represent the interests of our citizens and conduct a dialogue with anyone, anywhere and anytime in order to find a functional and acceptable solution. We would like to remind you that we have gone through a very difficult period of war and violence; we cannot “compromise” on our independence and on the sovereignty of the Republic of Kosovo. We are willing to accept and implement anything that would normalise the relationship between our two countries and which constitutes a European solution. Compromise does not mean concessions on demands, stances or solutions which are considered principal for us. ■ Are you aware of any risk that if Belgrade’s concessions are rejected the only option left will be to return to the tough stances that haven’t brought any good to either side over recent years? In other words, what could be Pristina’s trade-offs? - The State of Kosovo is established upon the will of its

peoples, but also with international help and support. The century of Serbian rule in Kosovo, except for a few brief periods, was marked by violence against and repression of the population of Kosovo, and by attempts to expel the indigenous population, bring Serb colonisers and change the ethnic structure of the population. This is a lesson which must never be repeated. There is no more hegemony in the region. All the peoples and the nations are equal and must cooperate as free and equal. Kosovo’s integrity is full and guaranteed and I am strongly against any divisions on ethnic or other lines between the Republic of Kosovo and Republic of Serbia. There will be no division of territories, no exchange of territories and no displacement of populations. Both Kosovo and Serbia could very well live as neighbours within the existing borders by meeting European standards and international conventions on the protection of minorities. In practice, the Republic of Kosovo is way ahead of the Republic of Serbia in offering rights to national minorities. Out of 120 MPs in the Parliament of Kosovo, 24 are members of other communities, while four of our 18 Government ministers are members from other communities. Out of 38 municipalities, 11 municipalities are fully governed communities with broad powers of local governance.

ropean structures and also through direct bilateral contacts, to abolish all parallel and illegal structures and find sustainable and European solutions for the rights of communities, solutions which Serbia would also be prepared to implement on its territory. We as institutions talk to people who enjoy legality and legitimacy. ■ Serbian President Tomislav Nikolić has announced that he would be willing to talk with you personally about resolving the Kosovo issue which, we’re sure you agree, is inhibiting the development of both Serbia and Kosovo. Are you ready for such a meeting?

■ Despite the fact that the Serbian government reiterates that only through dialogue does it see the possibility of finding a lasting and sustainable solution to the numerous problems of Kosovo, one assumes there are certainly Serbian politicians who you believe and who you do not believe? - I am not sure I understand your question. However, I do not consider that Kosovo has more problems than Serbia. We

We are definitely ready to continue the dialogue, to be honest and responsible and implement all what we have agreed upon

have three municipalities with an ethnic Serb majority where the majority of the Albanian population was forcefully displaced, and these municipalities, with the help and support of the Serbian Government, refuse to integrate into the institutions of the Republic of Kosovo. No one believes that this refusal is a sustainable solution and it is certainly not a good one. I must emphasise that around 40,000 people live in these three municipalities, which is less than three percent of the total population of Kosovo, while around 100,000 Serbs live in other Kosovo municipalities. We are a state built on civic principles and we want all our Serbs, irrespective of whether they live on the border with Serbia or in central Kosovo, to enjoy equal rights and freedoms. We do not want, because of differentiated rights, local Serbs to move from one municipality to another. We expect the contribution of Serbia, through Eu-

- I will not meet in private capacity but as the President of the Republic of Kosovo. Only as legal and legitimate leaders of our countries, expressing the will of our citizens, we can talk and find sustainable and long-lasting solutions, which are in the benefit of our citizens and our countries and represent peace and stability in the region and beyond.

■ Individual comments emanating from the EU express doubt that both sides are ready to continue the Brussels dialogue at this point. Is this true? - Yes, we are definitely ready to continue the dialogue, to be honest and responsible and implement all what we have agreed upon. Implementation is the evidence that we treat the dialogue seriously and that we are interested in sustainable solutions. The level of representation in the dialogue is of no importance, what is important is that both cordeditorial@cma.rs

96 September | 11

states fully implement the agreements and cooperate on this. We expect the Republic of Serbia to return to Kosovo, without posing any conditions, the remains of all persons who during the war were sent to mass graves in the territory of Serbia to hide the traces of the crimes. We expect that the Republic of Serbia, with legal trials to punish all those criminals who killed and massacred, burned and destroyed in Kosovo and who have now found refuge in Serbia. We expect the Republic of Serbia to return all the stolen artefacts from Kosovo and sent to Serbia, artefacts from the museums and archives of Kosovo, as they are the property and the treasure of Kosovo.

follower of Milosevic’s regime, especially when the post- 1989 laws, as assessed by UN are not in force due to their injustice and segregation nature. ■ Belgrade has announced a more flexible approach to solving the problem of the regional representation of Pristina. How would you comment on this? - It is a good thing and we respect it, as it is only with a constructive approach and not exclusive solutions that we can normalise our relations and build a future in the interests of our people and countries. Kosovo has always had and will continue to have a constructive attitude towards Serbia in every international appearance.

■ The new Serbian government has shown its determination to implement agreements reached previously in Brussels. Western sources in Belgrade claim to have received assurances of this, which is something the previous government did not do. Will that have an impact on the strengthening of trust towards the government in Belgrade? - Definitely. We want responsible leaders who work in the interest of the country, and for peace and stability in the region, mutual cooperation and friendly neighbourly relations. This is good news, since Kosovo has implemented all agreements reached in Brussels from day one and, yes, this is long awaited good news from Serbia.

I would like to emphasise that we will not allow anyone to interfere in our internal matters and the issue of our sovereignty

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■ What are Pristina’s prerequisites for the technical dialogue to continue? What arrangements do you think are the most important and which the most difficult to achieve? -If there is honest will, if the principles of relations between states are respected, if the reality is accepted and if no one tries through the dialogue to restore previous situations, then no agreement is difficult. The existing situation is detrimental to the citizens and to our two countries, since to integrate to Europe the development of good neighbourly relations is a major prerequisite. Now we hear that the Republic of Serbia has claims for its wealth in Kosovo, estimating it in hundreds of billions of Euros. We know that Kosovo’s autonomy in 1989 was suspended by force by Milosevic. Exactly the same day, ten years later, NATO attacks on the Serbian military, police and paramilitary targets began. It would not be a good for the democratic Serbia to be a 96 September 2012

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■ Resolving issues related to telecommunications and electrical energy are also pending and would round off the “technical issues”. Do you think a difficult chapter will follow again after that? - We must take into consideration the experiences with agreements reached with other countries. Both Kosovo and Serbia are sovereign in terms of the management of wealth within their territories. We are interested in reaching agreements with the Republic of Serbia in the same manner that Kosovo has reached agreements with Macedonia, Albania and Montenegro.

■ Political parties in Kosovo are still sharply divided between those “for” and “against” a dialogue with Belgrade. Is there a chance of overcoming this division and, if so, would that see the “for” or “against” camp prevail? - We are also learning the rules of democracy, where there is a difference between institutional and party responsibilities. It is important that in Kosovo no one is against the implementation of agreements. The Government of Kosovo has created all the mechanisms for proper and efficient implementation. ■ Available information suggests that the Serbian government is lobbying with international representatives for the establishing of a parliament for Kosovo

Serbs in the North. Do you interpret this as a signal of them (temporarily) giving up the idea of partitioning Kosovo or do you view it in some other way? - We do not usually comment on the positions of Serbia. However, I would like to emphasise that we will not allow anyone to interfere in our internal matters and question our sovereignty. Each request that comes from the citizens of Kosovo is a legal and legitimate one. The institutions of the Republic of Kosovo make decisions based on presented requests in full respect of the constitution and the laws of the country. We have not received so far any requests from the Serbs of the three northern municipalities for the establishment of a national parliament. Kosovo is built on civic principles and we do not consider it even in the interest of Serbs to enjoy their national and political rights in a differentiated manner. If the territory in the north of Kosovo aspires to have a special status or some other form of organisation, bypassing the institutions of Kosovo presents a real danger that Serbs from other municipalities would move to the north for the purpose of national congregation. This is not a good solution.

■ How do you see the future of Serbs in northern Kosovo? Does their tactic of completely ignoring the central authorities in Pristina not remind you of the time when Kosovo Albanians ignored the central government in Belgrade? If you succeeded in your independence project, why wouldn’t they? - The issue of the Serbian community in Kosovo should be considered in an integral manner, aiming towards participation in institutions and governance. The Serbs of the Leposavić municipality cannot benefit from the fact that they are territorially on the border with Serbia and have claims of ambivalent status. It would be totally unjust and inhumane if the Serbs of Leposavić enjoyed more rights than the Serbs of Gračanica or Sterpce. Let us speak frankly: even today they do not enjoy more rights and the situation in this municipality is unstable and unbeneficial to the local inhabitants. The only difference is that these citizens of Kosovo, of the Serbian community, pretend that they are ignoring the institutions of Kosovo. Currently in the municipalities of Leposavić, Zvečan and Zubin Potok illegal and illegitimate structures are in power, unlike the other Serbian majority municipalities where the structures enjoy the authority of governance and the support of the population. In these municipalities in northern Kosovo there is no rule of law and order, while organised

criminal gangs rule the place, terrorising the population. The informal economy reigns, damaging the economic interests of the citizens and pushing away foreign investors.

■ And how do you see the future of Serbs from south of the River Ibar? - The future of all Serbs in the Republic of Kosovo, but also that of Turks, Bosniaks, Goranis, Roma and others, lies in the acceptance of responsibilities that belong to them as citizens and as communities in the building of Kosovo as a sovereign and independent state, in the democratisation of the country and in their contribution to Euro-Atlantic integration. It is very important to the development of good neighbourly relations between Kosovo and Serbia that the communities provide their special contribution as linking bridges and by exchanging experiences and contributing to the preservation and nurturing of national, cultural, religious and other values. A future where Albanians, Serbians, Turks, Bosnians, Roma and others enjoy all their equal rights and freedoms as citizens and members of different nationalities.

■ Serbs and Albanians have historically tried all sorts of things – everything except being friends. Is there any chance that such a time will come? - We have had periods of friendship and cooperation and we consider that it will be like that again in the future. In the Balkans we can only live as free and equal people, without hegemony and without territorial aspirations. Even

The issue of the Serbian community in Kosovo should be considered in an integral manner, aiming towards participation in institutions and governance

though I am the president of all citizens, I am pleased to say that, even during the horrendously difficult war period, Albanians have never implemented policies of ethnic cleansing and forceful displacements of population with the aim of changing the ethnic structure of certain territories. Our policies were humane, based on freedom, independence, democracy and equality. These were the principles and slogans of our political movement in the last decades. ■ cordeditorial@cma.rs

96 September | 13

global diary

Cuddle hormone

Scientists found that a sniff of the “cuddle hormone” oxytocin makes women calmer and friendlier and men more sensitive and positive during arguments.

Problems

Support

“I am confident that Europe can solve its problems ... That doesn’t happen from one day to the next.” - German Chancellor Angela Merkel

“ We believe in the fundamental capabilities of the European economy and will support our partners’ efforts to stabilise the situation in every possible way.” - Vladimir Putin, Prime Minister of Russia

China’s richest village

North Korean capital, the Hermit Kingdom’s only golf course cuts through heavily forested slopes running down to the waters of Lake Taicheng.

The late Kim Jong II is rumored to have once frolicked there

A new study has found that couples who used the oxytocin nasal spray before going into a contentious discussion about their relationship behaved more positively than couples who hadn’t. Researchers at Zurich University studied 47 couples be-

tween the ages of 20 and 50 who were either married or had lived with each other for at least a year. Hailed as the “love drug,” oxytocin is a hormone that is naturally made in the hypothalamus region of the brain and is involved in sex, sexual attraction, trust and conSource: Medicaldaily.com fidence.

Champion loses on property market

Michael Phelps is the mostdecorated Olympian of all time, but if real estate were an Olympic sport, Michael Phelps might be far from the podium.

The swimming superstar’s 450-square-metre Fells Point condo had hit the Baltimore real estate market. Now, on the heels of Phelps’ record-shattering 19th 14 |

96 September 2012

Welcome to Huaxi, China’s richest village, which boasts a supertower, a $40m solid gold ox statue and all the cabs for its new taxi service are helicopters With its 2,000 official registered inhabitants, Huax, Jiangsu province, East China, has long been recognised as the richest village in China - each resident having at least $250,000 in the bank. At the centre of a massive new technology and tourism hub - it is said to have more millionaire residents than any other village in the whole country. The village has moved on significantly over the last 30 years, developing from a poor farming community to a flourishing place of enterprise and a symbol of the country’s economic growth. The village now attracts businesses interested in shipping, steel, tobacco and textiles.

Olympic medal, Top Ten Real Estate Deals reports that the high-end modern property on Baltimore’s famed Inner Harbor is still on the market. Phelps purchased the property in 2007 for just under $1.7 million, and agent Heidi Krauss has it listed at $1.42 million.

ters of the total staff at all the branches were female. Overall, women employees earned on average only 83% as much as men did. Specifically, wom-

A woman boss doesn’t help women A new research paper that examines data from 68 branches of a large U.S. bank shows that women managers do not remedy problems of gender inequality in the workplace. They improve neither the amounts the women earn nor the jobs they hold. To do the study, doctoral student Mabel Abraham gathered data from a large bank where 44% of branch managers were women. About three quarwww.cordmagazine.com

on a luxury yacht. He is also famously credited with shooting a world-record 18-hole score of 38 under par — including five holes in one — on the day he opened the course. The story was reported by the rogue state’s lone news service, the Korean Central News Agency, which said 17 bodyguards witnessed the round. Strangely, nobody at the course seems to recall his presumably spectacular performance.

The €20 Million watch The 201-carat Chopard is the world’s most expensive watch, and it’s made of a 15-carat pink diamond, a 12-carat blue diamond and an 11-carat white diamond. Manufacturers also used some white and yellow gold, and, of course, 163 carats of smaller diamonds, coming to a total of 201 carats. The price is €20.1 million.

en made up 82% of tellers and 83% of bank representatives, but were only 38% of executives and 44% of so-called relationship managers. The most surprising thing the study revealed: the pattern was true whether the branch manager was male or female.

Golfing in North Korea About 30 km outside the

Liliane Bettencourt, has sold a Seychelles island at the heart of a tax evasion case, the archipelago’s government said. France’s richest woman sold the Indian Ocean island to an offshore company affiliated with Switzerland-based campaign group Save our Seas Foundation for $60 million, plus $10.5 million for stamp duty and other taxes. Bettencourt, 89, bought D’Arros island in 1997. Her ownership came to light through media reports in 2010 claiming the island was undeclared to French authorities.

Seychelles Habitat Minister Christian Lionnet told a recent news conference that the government ordered Bettencourt to pay $8 million after the reports, on the grounds that she had failed to properly involve the government in the purchase. In 2011 French authorities ordered Bettencourt to pay nearly €108 million ($133 million) in unpaid taxes after finding undeclared accounts and discovering she owned the island. A lawyer for the Bettencourt family declined to comment on the sale when contacted by Reuters.

Source: Reuters

Grey parrots smarter than toddlers

L’Oréal sells Seychelles island

The billionaire heiress to the L’Oreal beauty goods empire,

African grey parrots not only learn to talk, but outperform human two-year-olds in a test of intelligent reasoning. No other animals apart from great apes match the birds’ ability to understand noise-related causal connections, say scientists. Human children only do as well as the parrots from about

the age of three. Researchers tested six African greys housed in a parrot rescue centre in Vienna, Austria. During a series of experiments, the birds were asked

out - almost instantly - that if a box was shaken and made no noise, the food must be in the other container

Celebs gather to honour Muhammad Ali

of the day he’s standing as a winner and failure is not an option to him.” Tickets for the event, costing between £2,000 and £2,500, were used to raise money for the Muhammad Ali Education Centre and research into Parkinson’s disease. An after dinner auction proved

Formula One driver Lewis Hamilton paid tribute to the sports legend, saying: “The difficulties he came across and for another sportsman, you need other people, greats like him to lead the way and show that it can be possible.” Boxer Vladimir Klitskho, who gave a speech at the event, said: “I will compare him to Rocky, that he always comes up, fights back and at the end

successful, with winning bids including £12,000 for Olympics opening ceremony tickets, £20,000 for earrings designed by Angelina Jolie and Robert Procop, £21,000 for a tennis lesson with Boris Becker and £50,000 for a weekend of driving with Lewis Hamilton.

Celebrities and sports have honoured Muhammad Ali at a Sports for Peace charity gala in London. to choose between two closed boxes, one of which held a piece of walnut and rattled when shaken. The other, empty container, could be shaken without making a noise. The parrots showed they could detect hidden food rattling in a shaken box. But, much more impressively, they also worked

Olympics Impact on Market Sentiment

Museum wins bid to keep Manet masterpiece

Britain’s Ashmolean Museum raised £7.83 million ($12.5 million) to buy an Edouard Manet masterpiece and keep it on public display. The “Portrait of Mademoiselle Claus” was sold to a private foreign buyer last year, but the UK government blocked the sale under rules allowing public institutions to attempt to buy “works of outstanding cultural importance” at knock-down prices. Research by Deloitte suggests that host countries’ stock exchanges have outperformed major international exchanges in the six months after every Olympic and Paralympic Games since 1984. China’s Shanghai SE 180 index fell 12 percentage points in the six months following the 2008 Games, but that still outperformed the 38.1pc average decline of other major indices. After the Athens Olympics in 2004, Greece’s FTSE/Athex 20 index jumped 44.8pc in the subsequent six months, while other major indices rose by an average of just 7.5pc. In the six months following the Sydney Games in 2000, Australia’s S&P ASX 200 fell 5.5pc but other major indices sank 17.4pc. During the six months subsequent to the Atlanta 1996 Olympics, America’s S&P 500 leapt 23.2pc, while other major indices rose 14.8pc. After the opening of the London Olympic Games on 27th July, the FTSE 100 rose 1.6 pc. Source: The Telegraph cordeditorial@cma.rs

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interview

■ by Jovana Gligorijević

H.E Yossef Levy, Ambassador of the State of Israel to Serbia

Solidarity and

similarity Troubled by stagnating conflict, misunderstood by their neighbours and proud of their roots, there’s no doubt that Israelis and Serbs have much in common

his month we speak to H.E: Yossef Levy, Israeli Ambassador to Serbia, about relations between the two countries, Israel’s own troubled reality and the ambassador’s recollections of his previous time in Belgrade, prior to the turn of the millennium.

■ The start of this year marked 20 years since the restoration of diplomatic relations between Serbia and Israel. What has made up the backbone of relations between the two countries during these two decades? - I would say that the essence of our relations is to translate the natural and deep solidarity and resemblance of both nations’ spiritual profile into a modern and bilateral love story. I believe that both governments have done their utmost to promote not only the political understandings, but also the cultural and economic ties between our two countries. Whenever Belgrade is offered as a place to serve, the list of applicants is very long. I think that speaks for itself. ■ You were first in Serbia in 1999, immediately after the bombing. What are the most important changes you have 16 |

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observed in Serbia in relation to your previous stay here? - Since I arrived here a year ago, I keep comparing the Serbia of 1999, the one of burnt fields and bridges sunk in the Danube, to the vivid and energetic Serbia of today. The remains of 1999 bombed buildings are a scar on the face of Belgrade and whenever I pass by car through Kneza Miloša Street I feel truly sad. I wish to be able to see the day when instead of ruined rubble, modern and beautiful buildings will rise up. The most significant change is, of course, the dramatic shift in Serbia’s geo-political position on the map of Europe: I don’t want to be a prophet, but it is quite obvious that Serbia will join the European family, where it really belongs. However, I am bothered by the economic situation in this country which I ap-

Serbia needs an economic breakthrough. This nation has immense life energy and I wish this energy to burst out

preciate and love so much. It’s so unfair that the average salary here, for those who actually do work, doesn’t exceed €350. Serbia needs an economic breakthrough. This nation has immense life energy and I wish this energy to burst out.

■ How does Israel view the current political situation in Serbia, when it comes to its new position and ever weaker opposition? - As a disciplined and polite diplomat, allow me not to comment on that. One of the phenomena that make me especially proud is that all political parties in the democratic Serbia emphasise unshakable bonds with Is-

Serbia

I am bothered by the economic situation in this country (Serbia), which I appreciate and love so much

Iran

The Iranian threat is not only Israel’s biggest challenge, but also the main concern of the entire free world

rael and the Jewish people. Governments may rise and fall, but our sincere friendship remains. This is proof of a solid and authentic sympathy between Jews/Israelis and Serbs.

■ Israel, like Serbia, has spent years in the focus of international attention due to the instability of its region. What are the realistic prerequisites that would finally lead to regional stabilisation in the Balkans? - Israel’s fundamental principle, which applies both to our own “domestic” conflict with the Arab World and the Palestinians as to the other parts of the world, is that conflicts must only be negotiated and resolved through direct talks. The Middle East experienced five bitter wars, but only the direct talks between Israel and Egypt (1979) and Israel and Jordan (1994) ended in peace accords which last until today, although the political atmosphere in the Middle East has regrettably changed. The subsequent outcome of the principle of direct negotiations is our rejection of any unilateral acts as a tool to resolving conflicts. That is why we believe that the Palestinians’ attempt to gain international recognition in the General Assembly is wrong and misleading, whereas we do recognise their right to self-determination and independence.

Books

All my books were very personal. I used the pen and paper to create the path towards happiness, love and family

the main concern of the entire free world. I don’t know any other precedent in which one UN member threatens three times per week to annihilate another UN member, using offensive anti-Semitic terminology and most dangerously building in its bunkers nuclear weapons of mass destruction. The unbearable rhetoric of the Iranian leadership has dramatically escalated in the last weeks, in which we counted eleven statements made by Iranian leaders to destroy Israel and its people. The Iranian spiritual leader, Khamenei, said on 16th August (“Jerusalem Day”, according to the Islamists) that the unnecessary Zionist regime (the Iranian term for Israel) will disappear from the Earth. On 19th August he said that the Zionist regime is a cancerous tumour on the heart of the Islamic world. Ahmadinejad said in Tehran on 17th August that Iran’s goal is to remove the “black stain” of the

The only way to be free is to talk to your neighbours and solve the heavy and delicate issues of borders, security arrangements and mutual recognition

■ What is the present status of the UN resolution on Palestinian membership in that organisation and how are Israel’s relations with the countries supporting that resolution? - We are not against Palestinian independence. On the contrary, we wish our neighbours to be free and prosperous. We are however against using the international arena in order to bypass direct talks, waste precious time and weaken our international image as “rejecters of peace”. The only way to be free is to talk to your neighbour and solve the heavy and delicate issues of borders, security arrangements and mutual recognition. If they run to New York to collect votes, they will surely have the automatic majority of the Arab/Islamic and non-aligned states. What shall they gain by that? A state on the paper? A state on the facebook? First they should negotiate with us and only then apply for recognition. This should be the right way. ■ The media are increasingly reporting the harsh statements of Iranian officials directed towards Israel. What are the possible consequences of this deteriorated relationship? - The Iranian threat is not only Israel’s biggest challenge but also

Zionists from human society. Other vicious and genocidal statements were made by the Majlis Speaker Larijani, the Air force Commander, the Commander of the Revolutionary Guard and others. We have no doubt that they mean what they say.

■ Your mother was born in Iran and you once said that today’s Iran is the complete opposite to the one you remember as a child. What are your short-term projections of events between Israel and Iran? - It is a personal question, but I will answer it. As a child I was raised on the legacy of the Iranian culture, which until the Islamic revolution was pragmatic and tolerant. I remember the smells and the tastes of the Iranian cuisine that my mother was making and still does today. I remember that in our living room we had two portraits of the Iranian Shah Pahlavi and his wife Farah Diba. All that colourful and pluralistic Iran was hijacked by the fanatic Islamic dictatorship which enslaves the Iranian people and endangers the world. ■ A few weeks ago the British ambassador to Israel announced that international support for Israel among the leading powers was on the decline due to the in cordeditorial@cma.rs

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creasing expansion of Israeli settlements in the West Bank and the continuing blockade of Gaza. How would you comment on that statement? - I reject it. There is no blockade of Gaza. We defend our lives against the rockets shelled on our houses and nursery schools from Gaza, without any reason or provocation. Israel withdrew completely from Gaza in summer 2005, evacuating all settlements, military bases, schools and even cemeteries. Gaza was a historical test for the Palestinians’ real intentions. Instead of becoming a cradle of peace, the people of Gaza elected the Hamas terror organisation as their government and since June 2007 Gaza has been the base for

The potential is huge, but the current numbers are rather dissatisfactory. We believe that agriculture must be in the focus of Israeli-Serbian cooperation, as well as real-estate, hi-tech and clean-teach

■ You are a lawyer by training, a diplomat by profession and a writer by reputation. Which of these activities brings you the most satisfaction? - To answer that question truly and honestly, I would need the next ten issues of CorD. I am a multi-dimensional person and my colleagues in the Embassy often complain that each day they meet a new person coming to the office. From the three “dimensions” that you mentioned, you may skip the lawyer as I closed that door when I joined the Foreign Ministry in 1994. However, I do dream of writing here in Belgrade the book of my life, if I find the time and energy to do so. Only time will tell.

daily terror attacks against Israeli civilians. The picture is much more complex in the West Bank. There is no secret that the international community does not accept the Israeli settlements in the West Bank. However, the case of Gaza clearly proves that the evacuation of settlements is no guarantee of peace. The issue of the Jewish settlements in Judea and Samaria (the West Bank) can be resolved between the parties and must not serve as an excuse for the Palestinians not to come back to the negotiating table.

■ How is today’s economic cooperation between Serbia and Israel and which sectors are most attractive for Israeli investors? - The potential is huge, but the current numbers are rather dissatisfactory. We believe that agriculture must be in the focus of Israeli-Serbian cooperation, as well as real-estate, hitech and clean-teach.

18 |

■ You recently spoke with Serbia’s new Agriculture Minister, Goran Knežević, about cooperation in the area of improving agriculture. What were the topics of that conversation and in which direction do you expect future cooperation in that domain to develop? - I prefer not to discuss in public the topics which were raised in the closed meeting. However, we have no doubt that, regarding agriculture, the prospects are limitless. Serbia should not be dependent on rainfall in order to manage its agricultural yields. The terrible drought which costs the loss of billions emphasises the need for an efficient irrigation system. Serbia is blessed with fertile soil, abundant water flows and skilful manpower. By implementing Israeli knowhow and experience in agriculture, Serbia can become the food basket of Europe. Let me remind you that Israel, although an arid desert land, has become a world leader in smart agriculture, exporting fruits, vegetables and flowers all around the world. 96 September 2012

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■ You’ve written five novels in Hebrew, three of which became bestsellers. Which topics do you address in your literary works? - All my books were very personal. I used the pen and paper to create the path towards happiness, love and family. My third book tells the true story of a meeting between an Israeli diplomat and an ex KGB and Stasi spy. This book is now being translated into Serbian. I am very curious whether people will like it or, God forbid, not. ■ When will some of your works be on sale at the Belgrade Book Fair? - If the translation is finished on time, I hope that the book “Čovek bez senke” (Man without a shadow) will be at the Belgrade Book Fair.

■ When you are taking a break from diplomacy, which line from your literary works most often crosses your mind? - The most beautiful place is the place I have never been to. ■

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interview

■ by Radmila Stanković

MILICA DELEVIĆ, Democratic Party MP in the Serbian National Assembly

We are still not

ready for the EU In terms of the European integration process, the consensus among Serbia’s political parties has become much broader in the last few years. This is the first time that the parties have not been divided between those in favour of Europe and those opposed. That means that we are now entering a better phase, i.e. there is competition whereby the parties are striving to demonstrate that they are pushing us further down the EU road, which both sides claim is their road to take

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I am now ’on the other side of the mirror’ compared to the job I did for the last few years

tasking opposition

Now that we have a new government, the opposition’s task is to be better than before

sought by the Serbian Progressive Party which, following the May elections, offered her the position of Serbian foreign minister. Her party refused the proposal, but this successful woman and mother of two girls – aged 11 and 15 – has nevertheless succeeded in being recognised by the expert public as an expert herself and a consumate professional. Her success has been rarely tied to political party membership. She did the work in the state’s interest and this is something that the opposition also believed in. She could have created a platform for personal PR, but what was apparent was something entirely different: she worked on moving everything forward and everybody’s best interest was at the forefront of her mind.

■ Today you are a Democratic Party MP and chairwoman of the parliamentary European Integration Committee. How beneficial can your current engagement be compared to what you’ve been doing in the past? - As we all know, the parliament controls the power and can be more or less effective in doing so. However, the primary responsibility for doing something lies with the executive branch of power. I can contribute to that to the extent to which the committee draws attention to certain issues that are important for the European integration process and to the extent to which a good cooperation format within the committee and between the committee and

What remains as a challenge is that which still needs to be done on that road and what awaits this government

Democratic Party

The fact that there are different voices inside the Democratic Party is not a weakness

membership application, completing the EU questionnaire, obtaining membership candidate status and the Schengen countries abolishing visas for Serbian citizens. These are important steps made on the European path.

■ We could say that that is just the beginning. What comes next? -What remains as a challenge is that which still needs to be done on that road and what awaits this government, meaning fighting organised crime and corruption, completing judiciary reform while adhering to the European Commission’s recommendations, implementing adopted legislation and passing new reform laws, as well as something that the Commission considers the key priority in order for the accession negotiations to start: normalising relations between Belgrade and Pristina. This means applying what has been agreed on, rounding off the technical part of the agreement reached by the two sides in areas like telecommunications and energy and taking further steps towards normalising those relations. The framework that facilitates further action is comprised of the opinions about our membership application submitted last October, as well as the conlusions made by the Council of Ministers and the European Council when they reviewed our candidacy bid in December and approved our candidate status in March. These conclusions imply a stricter implementa-

representatives of power has been established. Nevertheless, it is quite clear that I am now ’on the other side of the mirror’ compared to the job I did for the last few years.

In the last decade or so her name has become synonymous with European integration, but before earning that ‘title’ she graduated from the Belgrade Faculty of Economics, gained her Masters degree and subsequently a Ph.D. from the University of Kent in Canterbury, located some 100km from London and considered one of the most renowned education centres in the UK. In 2003/4 she held the post of director of Serbia and Montenegro’s EU Integration Office, before serving as coordinator of the National Strategy for the Accession of Serbia and Montenegro to the European Union. She was also an assistant foreign minister in charge of European affairs and in 2008 became the director of the Serbian government’s EU Integration Office. She has also lectured at the Belgrade Faculty of Political Sciences on the subject of Serbian foreign policy. Today she is a Democratic Party MP in the National Assembly of Serbia and chairwoman of the European Integrations Committee. She says that it is always important to pick a theme, as she did when writing her Masters thesis on

looking glass

sanctions. When it comes to her Ph.D., the topic was conditions that had to be met in order for a country to receive financial aid from the EU. European integration has become her most important long-term interest and today she has amassed extensive experience in this area. Having knowledge about European integration is valued very highly, with many European integration experts needed in the near future to negotiate and acquire more knowledge about the topic themselves. Whichever direction her career takes, Milica Delević (now 43) will be remembered as one of the few people whose expertise was

■ Political parties that had almost identical political and economic election programmes managed to impose themselves during the last elections. What expectations did your party base its optimism on? -In terms of the European integration process, the consensus among Serbia’s political parties has become much broader in the last few years. This is the first time that the parties have not been divided between those in favour of Europe and those opposed. That means that we are now entering a better phase, i.e. there is competition whereby the parties are striving to demonstrate that they are pushing us further down the EU road, which both sides claim is their road to take. The Democratic Party’s argument was that significant headway was made on the European path, such as the start of implementation of the interim trade agreement, the start of the ratification process, submitting the

tion of adopted legislature, continuation of the reform process and remind us of the conditions that stem from the need for Belgrade and Pristina to continue their dialogue. ■ What convinces you personally that relations between Belgrade and Pristina may or may not become normal? -My take on that is always the following: is that important because the European Union wants it or is it important for us in the region and us in Serbia? I think that this is important for us in Serbia and the region as a whole and more important than it is for us to embark cordeditorial@cma.rs

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on the accession negotiations. For us it is important for the entire region to advance towards the European Union, that the European Commission monitors the reforms, for all of us to fight organised crime, corruption and various abuses of power. It is important for us to have unhindered regional trade, because if we don’t have that it is impossible for only one side to be affected by that. Both sides will feel the consequences of it. If our starting point is mutual interest in advancing something, I believe that will happen.

■ What is the red line that separates political parties today and prevents them from consolidating their power into finding people who will be able, more or less, to alleviate the poverty that looms over the citizens at times of great crisis like the current one? -We are in the process of determining that. The 2008 and 2010 elections were important since they signified the possibility of new coalitions forming, which demonstrated that the political game is no longer being played in midfield. All political partners have gone through the

of finding that red line, where each party is faced with the challenge of developing its offer and where all participants of the political game should recognise, at the same time, what is important for the country and their cooperation, while searching for something that sets them apart from others.

■ Do you think that Montenegro embarking on its accession talks is actually a ‘litmus test’ for other regional countries which stand to acquire a similar status under certain conditions? What, apart from normalising relations with Kosovo, does Serbia need to do in order to start the accession negotiations next spring? - I have said many times that the headway that a certain country makes is the way forward for the entire region for two reasons. The first is that it shows that it can be done and the situation in the European Union today is far more difficult than in the past, at the time of the so-called enlargement tides. Today’s situation is such that the priorities are dealing with the economic crisis and the crisis of the

When you look back at what has been done, you can see that a lot more could have been done and done a lot better

euro. However, we have witnessed that enlargement is possible and that is continuing. The second reason is that the step forward that a certain country makes creates a positive competition among us and prompts us to take that same step. Montenegro embarking on accession talks is an important step forward, but is by no means the end of the challenges that that country needs to deal with before it gains EU membership. The process of change is flowing and certainly doesn’t end on the day a country joins the EU. What lies ahead of us is something that is within the boundaries of the opinion from October 2011 and the report that will be written in October 2012. And that is what we have been talking about so far.

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process of accepting European integration, hence I believe that, in the future, various political combinations will be made to support the real political power without a need for somebody’s European orientation to be validated or disputed. What will prove to be the red line is the minimal agreement, i.e. a minimal consensus about what is the desired goal; what is Serbia’s legitimate interest in Kosovo and what kind of economic policy and economic price is this country prepared to pay. Of course, the new government’s task is to offer a platform and, in that process, the opposition is responsible for recognising the things that are pushing the country forward. In the last four years the opposition, which has declared itself pro-European, failed to vote for a single proEuropean law. Now that we have a new government, the opposition’s task is to be better than before, to be critical of the things that need to be criticised and to search for solutions which would be the best for us and which are in accordance with the European practice and European modalities. That’s why I think that we are still in the process 96 September 2012

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answer to that question, since things simply don’t work that way. We need to work on making all countries our friends and not dividing them between those that are important for Serbia’s progress and those that are not, but rather have these countries thinking that Serbia needs to make progress. Only among such countries can we look for a friend that is highly motivated by our progress. As such, it is better to create an atmosphere where it is clearly visible that Serbia has made progress and where nobody is disputing that progress. Maybe there are countries that are more vocal about the enlargement. We are not talking about reaching an agreement with one or two countries, but rather all countries need to agree about things that are important for us and any other future EU member. That’s how the EU functions in other areas too, not only when it comes to enlargement. This is reminiscent of the infamous sentence uttered by a not so brilliant pupil which goes – ‘I am good, but it is the teacher that doesn’t like me’. ■ In your opinion, what more could we have done of what has been asked of us, how could we have done it better and what have we failed to do? - When you look back at what has been done, you can see that a lot more could have been done and done a lot better. For me, the progress report is always the best indicator of what we have done in the most problematic areas like fighting corruption, completing the judiciary report and regional issues, meaning the dialogue with Pristina. These are the issues that the Commission expects the most and I agree. The citizens, however, are even stricter and they want to live better tomorrow and want to see the government being more responsible. They want a government

that is closer to them and more responsible, a government that will facilitate tangible changes in their lives.

■ Could you give us your opinion of Serbian President Tomislav Nikolić’s stance that we need to see some sort of a political consensus when it comes to Kosovo? Does that constitute ‘buying time’ in terms of confronting the problem? -There is no doubt that we need a consensus about this issue, but not consensus regarding what makes an ideal situation – rather consensus on an achievable solution. If we agree on the ideal solution, that consensus will keep us at a certain position, i.e. it will be impossible for us to do something and we would have to share the responsibility for that. We need to share the responsibility in order to do something.

■ Serbia’s new Deputy PM in charge of European integration, Suzana Grubješić, said recently that we had minimal chances of starting accession negotiations in December? - The deputy prime minister is trying to be realistic and not to guess dates which we may or may not reach, which would leave the citizens disappointed. The government was formed at a moment when there isn’t much time left until the report is made. The questions that need to be answered are not easy, but you should not be too pushy in trying to make the government move forward while, at the same time, you should not create unrealistic expectations that you cannot fulfil. That’s why it is better to ask when the things that will lead to the accession negotiations will happen, like, let’s say, continuation of the dialogue and the format it will take rath-

■ How would you explain the difference between the principled ‘yes’, a real possibility and an attempt for Serbia to meet the accession conditions? - The difference between the determination and a real attempt is in the result, i.e. in the response to the question of what you are prepared to do in order to move forward. You are aware that it is the other side that determines what constitutes moving forward and that this is a process that all 27 member states need to agree on. We do know that it is not always easy getting the 27 to agree on something, but if you really want it, and we really do want it, than demonstrating what you are prepared to do to get it is the real indicator. The October report will be the first indicator since the European Council drew its conclusions in December. This will create a grid of conclusions and opinions that will show us what we need to do.

■ We often count on the countries that we consider ‘close’ and which could be our promoters in the EU. Does that kind of reasoning even make sense? - We often hear the question – who can be the godfather to Serbian progress and which EU country is our best friend? I don’t have an

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er than asking when the negotiations are going to take place. Being ready for the former will ensure that the latter will happen sooner rather than later.

■ Let’s presume that everything would be fine and that EU membership would be handed to Serbia on a platter. How ready is our country to actually join the EU? Do you think that, just like Greece, our country would encounter even bigger problems as an EU member because it would not accept the rules and procedures that have to be adhered to in properly regulated countries? - I don’t think Serbia is ready at this moment, but I do think that it is moving towards fulfilling the criteria. On the other hand, I don’t think the EU would make such an offer. Throughout the history of European integration there have been examples of member states choosing not to accept the European Commission’s recommendations, since they thought that a certain country had to improve in the negotiation process first, despite the commission thinking otherwise. Of course, there were instances when the commission recommended a certain country go ahead but the member states disagreed. This is a less frequent occurrence in the European integration process. In the current situation, where economic crisis has engulfed the European Union, I am not too sure that anybody would say that Serbia is not ready, i.e. that the EU would turn a blind

What will prove to be the red line is the minimal agreement, i.e. a minimal consensus about what is the desired goal – what is Serbia’s legitimate interest in Kosovo

eye in the case of Serbia. That is not a sustainable position in the parliaments of member states and there isn’t much enthusiasm in European institutions. Member states and their public are more inclined toward supporting the idea that enlargement will happen if there is strict control and the conditions are met.

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■ On the other hand, you have people who claim that the problems inside the member states are mounting and that this is reflected in the policy toward countries that are awaiting accession. - That is true. Every family that is contemplating enlargement will first build its own house and then expand it. We can ask an inverse question – there is the issue of an opportunistic cost. In the 1990s the EU’s activities apropos integration were incessant, with Austria, Finland and Sweden joining, as well as the Central and Eastern European countries. Back then we went in the opposite direction, in the anti-integration direction. We had wars and failed to cease the 96 September 2012

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moment. Now, when we do care, that moment has changed. For the EU today there are different issues that had to be urgently tackled rather than enlargement or the issues important for enlargement.

■ Apart from the economic downturn, what do you think is the biggest problem in the European Union? - I would say that that is the problem of a lack of solidarity inside and between member states. That problem is manifested through the euro-zone crisis and necessary harmonisation of different member states’ policies. A lot has been said about the results of the Lisbon Treaty in terms of joint foreign and security policy and making it more efficient. Also, certain problems have occurred with the enlargement process. Earlier that process was handled by the European Commission and member states did voice their opinion which, in principle, seconded the commission’s opinion. Now, though, member states have more questions to ask, questions that they considered important for their own national interests or their own set of values. Like, for instance, who is going to support the fiscal agreement, how many member states are going to be ready to join the banking union, how is that going to reflect on states that don’t want to do that, and how is that going to reflect on their membership and survival in the EU? Simply put, the process involving 27 countries is not the same as the process involving just 15. Not only that the number is greater, but there are countries that are far more diverse. ■ Do you think that the problems within your party are going to be resolved soon, as some prominent members have been suggesting, or is that going to be a long struggle, as the pessimists say, which could bring the Democratic Party to the verge of not making the census? - Everything that has been pointing to an internal debate going on within the Democratic Party is a good sign. I believe that having different opinions expressed will result in something that will define the party’s role in these new circumstances and that is being in opposition at the time when almost all political parties in Serbia are pro-European. When the new government was formed one UK minister said: “Now we won’t have an opposition for a year. When a party that was in power for over four years steps down, it needs at least a year to redefine its role in new circumstances.” The fact that there are different voices inside the Democratic Party is not a weakness. On the contrary, it is a good thing to have a debate about the future direction. Many parties don’t have that despite political circumstances changing for many, whether they are in power or in opposition. It is only a question of time before they become coordinated. That is not only important for the Democratic Party, but also for Serbia. Now there is a functional opposition which pushes the government to be better. ■

cordeditorial@cma.rs

96 September | 25

interview

■ By Jovana GLIGORIJEVIĆ

Rodoljub Šabić, Commissioner for Information of Public Importance and Personal Data Protection

Big problems and

big expectations I think that we’ve yet to face the real dimensions of the shortcomings that have been made in relation to normative and other measures that the government should have taken

■ What are your expectations of the new government? - The problems are great, so the expectations are also great. Of course, we will see whether these expectations will be realised.

■ What were the main topics of your conversation with the new director of the Security Information Agency (BIA) and what was concluded during that meeting?

f a vote was organised to determine the public institution that enjoys the highest reputation among the public, the Office of the Commissioner for Information of Public Importance and Personal Data Protection would certainly be among the most highly rated. Commissioner Rodoljub Šabić has headed up this office since its inception. One of the main principles with which he manages it is, first and foremost, transparency. As he clearly states precisely what should be more ordered in domestic legislation, Šabić does not hesitate to publicly mention all of the obstacles he has encountered when it comes to cooperation with other state agencies and institutions. Although one of the usual steps of each new government is to replace most officials of the previous administration with new people, in the case of Šabić it is almost as though there is a tacit consensus among all parliamentary parties and other relevant factors that he will retain the position he has held to date, for the simple reason that that is in the best interests of the public. 26 |

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- The main topic was the proposal of 14 measures that we, Ombudsman Saša Janković and myself, suggested in order to bring the security services’ activities in the field of electronic communications, but also generally, into line with the constitutional human rights guarantees. In addition to this, we also discussed the Law on the Secrecy of Information, security checks and the files of the old security services. The BIA director showed a willingness to support the proposed measures and I think we have achieved a fairly high level of agreement in relation to the other topics mentioned.

Providers care more about the “authority” of state bodies than the legality of their aspirations

■ You recently commented on the fact that the previous government failed to do even that which was absolutely necessary in in the field of personal data protection. What is it that is absolutely necessary?

- It would take up too much time and space to list everything that the relevant ministries and the government were supposed to do but didn’t. Generally, that relationship towards the protection of personal data was incomprehensibly bad. I think I can illustrate that with a single example - the “protection” of so-called particularly sensitive data. When in late 2008 we gained the Law on the Protection of Personal Data, in Article 16 it guaranteed, in accordance with the best international standards, special protection for data such as religion, national and political affilia-

SHORTCOMINGS

It would take up too much time and space to list everything that the relevant ministries and the government were supposed to do but didn’t

Generations

I believe that the generations are coming who will not allow someone to “pluck their ears” or “drag them by the nose"

tion, sexual orientation, health status and the like, or information recognisable as delicate. However, the law left the detailing of this special protection up to the government, asserting that it would manage that issue by through a special regulation. The deadline for adopting that regulation was six months. We are approaching the end of 2012 and the six month deadline has passed almost seven times, but the regulation has not been introduced. And without it, of course, this “special” protection of particularly sensitive data is nothing more than an empty proclamation. ■ During the term of the previous government you repeat-

edly appealed to the Ministry of Justice to launch an initiative to adopt a Law on video surveillance. Do you expect the new government to have more understanding?

- It is true that I made repeated appeals. In the end my associates

Changing the mentality is really one of the main tasks of something that would be a strategy for the implementation of European standards on the protection of privacy

and I even prepared a formal initiative to amend the Law on the Protection of Personal Data which contained solutions in the area of video surveillance that were supposed to provide at least the introduction of basic standards. It is difficult to understand, or rather it is incomprehensible, that the competent Ministry of Justice and the Government did not even activate this fully prepared proposal of the necessary changes. As such, is should not be a problem for the new government to have “more understanding”.

■ What are the consequences of lacking such a law? - When the state irresponsibly leaves any important area of life completely unregulated, then negative consequences in the form of mass violations of various human rights are inevitable. And “burying their heads in the sand” and ignoring this fact ensures the dimensions of the problem are not reduced even by accident. I think we’ve yet to deal with the real dimensions of the shortcomings that have been made in connection with normative and the other measures that the government had to take. ■ You also highlighted flaws in the Law on Criminal Procedures. What are its shortcomings and how should it look once fixed?

- It would be more accurate to say that I supported those who criticised the Law on Criminal Procedures much more seriously. There are many of them. Dr Škulić, a professor at the Law School, and Dr. Ilić, Deputy Public Prosecutor, wrote an entire book of

Crime

For years I have noted that the people who draw attention to crime, corruption and inefficiencies in their environment usually end very badly

critical observations aimed at this law. Basically I think the main problem is that in our criminal justice system, which is traditionally continental, they are trying to introduce some “Anglo-Saxon” solutions, especially as that seems uncritical and inconsistent. For me personally, perhaps the most annoying solutions are those that are changing the role of the criminal court and rather than being a “seeker of truth” the court’s role is seen as a neutral “jury” that counts and grades successful prosecution or defence moves. There are many flaws and I think some of them are not even fixable.

■ You recently spoke out on the subject of the relation of operators regarding the retaining of data. How do you regulate this area?

- This spring the Commissioner for Information of Public Importance and Personal Data Protection organised, through its

authorised persons, an action to monitor the implementation of the Law on the Protection of Personal Data through telephone service providers in Serbia. As a result of this monitoring they confronted us with the facts that the prompted the Ombudsman and I to react with a proposal of 14 measures addressed to the competent state authorities. That proposal addresses the minimum that should be done to regulate this area in an acceptable manner. Irrespective of regulations, some things are particularly troubling. These are the facts that point to the “servile” mentality of providers, about the fact that providers care more about the “authority” of state bodies than the legality of their aspirations. More than half of the approximately 4,500 formal written requests submitted by various authorities for access to retained data did not provide a legal basis for that at all, but the requests were still processed. As for online access without formal written requests, only one of the four providers dared to record the number of approaches the state authorities made to its database. And they recorded over 270,000 which, in and of itself - especially with the presumed inclusion of the total number of providers, represents a figure that deserves serious attention and analysis. cordeditorial@cma.rs

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■ It seems our society has a big problem of a lack of a culture of protecting personal data, as seen in media coverage of victims, minors etc. How can such a culture be raised? - You’re right. The level of culture of personal data protection is low, far below satisfactory. On the occasion of a brutal invasion of the privacy of minor victims recently I, along with the Ombudsman and the presidents of journalist unions UNS and NUNS, reacted publicly by appealing to the media to refrain from such things. Hoever, generally speaking, the problem is in the domi-

nant mentality that is still far below the standards that could be considered acceptable and it is necessary to alter that. And that change in mentality is really one of the main tasks of something that would be a strategy for the implementation of European standards on the protection of privacy in our real life. A transition state that it is serious about doing these must address tasks set through three basic plans. One is the adoption of regulations, the second is the establishment of oversight institutions and enabling them to have the powers and resources to be able to really act, while the third is spreading awareness about the content of those standards, education, changing the mentality. The strategies of individual transition countries, such as Slovenia, included changes to the curriculum in primary schools, in order for the youngest to be influenced by the formation of a mentality that entails honouring, respecting and protecting privacy. But in our case there actually is no strategy. Truth be told, my associates and I, with the support of the EU and in cooperation with experts from the European Commission and civil society, prepared a strategy proposal and after much effort persuaded the Serbian government to adopt that document. The government did this back in mid-2010, some two years ago. It then set itself a deadline of three months to adopt the Action Plan for implementing that strategy, but unfortunately that plan was never enacted. The strategy, thus, has for two years and still is a “dead letter”. ■ You launched the website “You have a right to know,” in-

tended to educate high school pupils. What can they learn from this site and why is it important? 28 |

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- It would be best for them to check it out themselves on www. pravodaznas.rs. In short, there they can inform themselves fully about the contents and scope of the right to free access to information and about the procedures and conditions for exercising that right. The site is intended for young people and is written in a language that is tailored to suit them, but it can also be useful for adults and I’m happy that information confirms they also use it. And the idea of communicating with young people in particular seems very logical, because I believe that it is them, the future

I believe the generations are coming who will not allow someone to “pluck their ears” or “drag them by the nose”. I believe it will be considered normal to request and receive from the state at any time an account of what the government is doing

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generations, who will really be able to affirm this new right that is forging ahead in our legal system with great difficulty. So I believe that the generations are coming who will not allow someone to “pluck their ears” or “drag them by the nose”. Therefore, I believe it will be considered normal to request and receive from the state at any time an account of what the government is doing. And for that to be possible it is necessary for them to have some knowledge of the law itself and procedures.

■ You are preparing a new model of a law on the protection of whistleblowers. How should that look and what innovations will it bring?

- This is a project I will carry out with pleasure. For years I have noted that the people who draw attention to crime, corruption and inefficiencies in their environment usually end very badly. They are exposed to various forms of ill-treatment, from “legal” to factual. These people definitely need to be protected in a proper way, by the law. I am now in a position, by coordinating the project that is being financially empowered by the embassies of the UK and the Netherlands, to prepare a model of the Law on the Protection of Whistleblowers. The project allows this to be done in a serious way. Foreign experts will be engaged to prepare a review of comparative legal solutions, while a working group comprising national experts in various areas of law will be formed to prepare the text of the draft law. An international conference of experts will also be held and a serious public discussion will be conducted to allow for the impact of civil society and all concerned. The final result will be the model of a law that will be offered to our government and parliament. I am certain that the model will be very well prepared, but whether it will actually become law does not depend on me, but rather on the Serbian government and the National Assembly. I hope there will be the political will to do so, because the government has already proclaimed whistleblower protection as one of its goals.■

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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

96 September | 29

interview Goran Ćirić, acting General Director, Post Srbija

The problem’s a lack of

work – not too many people!

Through continuous expansion of the market, creating new products and securing new business - every employee has the opportunity to prove himself. That route has led to the transformation of the entire system, which now feeds about 50,000 people in Serbia

serve this great recognition? - Yes, Post Srbija received that recognition, which will be officially awarded at the Congress of the Universal Postal Union in early October in Doha. That is certainly a merit for all employees in our effort to continuously improve our quality through shortened mail delivery deadlines. For us it is very important that the results of internal measurements were confirmed by external measurements and that, according to these results, the number of items delivered doubled in a short space of time. Specifically, about 80% of overdue items are delivered the next day, compared to 40% four years ago, and more than 95% of shipments are delivered within two days. That qualifies Post Srbija among the ranks of Europe’s most developed postal administrations, and we know that we can work even better and that that it is necessary. But it seems that we are rated better from outside than we rate our own achievements, which I think is often the case in Serbia.

very rule has its exceptions, and so it is with those according to which public companies in Serbia should be non-profitable and consumers of the state budget. Due to the technological development of other means of communication, postal activities are no longer among the most profitable businesses in the world, nor in the region. But Post Srbija pays half of its profits back into the national budget and over 15,000 employees realise their rights through representative trade unions that are an integral part of the overall success of this company.

■ The immediate reasons for this discussion is the award received by Post Srbija for the fastest growing high quality service in Southeast Europe, which was given to you by the Universal Postal Union. What did you specifically do to de30 |

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■ How do you explain the fact that on one side state-owned enterprises, as a rule, lose huge budget resources, while on the other side they receive international awards and operate at a profit? Does that depend only on the sectors in which they operate, or is the difference primarily in expertise and responsible management? -I would first like to note that Post Srbija is not on budget. On the contrary, it pays half of its profits into the budget of the Republic of Serbia, in accordance with the fact that we are owned by the state. The operational activities of a system are certainly important, because some of them are simply unprofitable under contemporary circumstances. That is not the case with postal communications – if we merely look at the environment around us, it is clear that postal administrations are not in an enviable position and that the postal industry is in crisis because of the changes brought by new technologies. We sought answers to the question of how best to adapt to changing circumstances

Efficiency

About 80% of total overdue items are delivered the very next day, while within a two-day deadline more than 95% of shipments are delivered

Unions

The way we run social dialogue with trade union representatives has always aimed to find common ground

and succeeded in finding some solutions that have produced results. But I think a very important approach it to consider that no solution is final; that you always have to listen to the market and create new services, and that this is the task of the entire management and all employees.

■ How much freedom does a manager in a public company in Serbia actually have to design and implement policies, and how much does that depend on the pressure of the state administration, political parties and also trade unions? -Given how the question is intoned, it appears that all these important factors are hindrances, but they should be seen as an opportunity for cooperation. For instance, cooperation with trade unions is one of the most important things we’ve been doing over recent years. The way we ran our social dialogue with representatives of trade unions has always sought to find a common interest – for new business to ensure the viability of the enterprise and, thus, the existence of all employees. Unions are our important partner in ensuring such a target is objectively presented to every individual in the company, which is not easy in such a large and complex system that actually operates over the entire territory of Serbia. In conjunction with our owner, the republican gov-

Representation

For Post Srbija we can say that in some way it represents a “mini” Serbia, precisely because we operate from Subotica to Vranje

ing that you have generated a profit for years and the company does not suffer with strikes? -The foundation of our business strategy is defined in cooperation with unions - the problem is not an excess of people, but a lack of work. So, our goal is to continually expand the market and provide new work that will give everyone a chance to prove themselves. With that aim we are transforming the system and I think that this kind of approach has yielded results, because if we count the family of employees – about 50,000 people in Serbia live from this system. On the other side, the social component of our business is our commitment to provide services on the whole territory of Serbia, despite market and commercial interests. That is our responsibility to the state, including the fact that for non-commercial activities we are not seeking budget subsidies nor do we expect that in such a difficult economic situation as this one. Rather we try to compensate for that by making a profit on commercial services.

■ Post Srbija is one of the biggest employers in Serbia, with 1,500 branches and over 15,000 employees. How

We endeavour to go a step further and, through integration, provide mechanisms for all civil service authorities to gain relevant and comprehensive insight into all important segments of economic policy

ernment, we operate in accordance with the Law on Public Enterprises and with the goal of positioning our system as an important factor of integration in the work of the public administration, with solutions that can improve its work. Our biggest clients are from the public sector, while we also work with many government bodies that contain representatives of different political parties and we try to present our arguments for our concept of development and the importance of new projects. The fact that these projects received support and have shown good results is the best proof that this cooperation is constructive.

■ Public companies have long been more like social institutions than places where profit is generated. How do you reconcile these two extremes, consider-

does the corporate governance of such an organisation function, given that Post Srbija is present everywhere, from the smallest village to the centre of Belgrade? -Through the Steering Committee, where there are representatives of the government, employees and trade unions. We have introduced the practice of organising board meetings in various cities, precisely with the aim of integrate as many employees into the system as possible. We can say that in some ways Post Srbija represents a “mini” Serbia, simply because we operate from Subotica to Vranje. As such, we face cultural diversity on a daily basis and simultaneously observing and finding common ground that will allow the system to be efficient and operate successfully is really challenging. In other words, for everyone to cordeditorial@cma.rs

96 September | 31

be involved in the process – from the phase when a new product needs to gain widespread support within the system, to sharing in the success when results are achieved. That requires that management is regularly present in the field. You cannot successfully manage such a system from an armchair in Takovska Street. ■ You are in the course of implementing numerous major projects, the most useful and effective of which is probably e-government. How is this project developing and what tangible benefits will it bring citizens? - We have numerous projects with ministries and government institutions, such as with the Ministry of Public Administration and Local Government, the Ministry of Internal Affairs, the Ministry of Finance, the Tax Administration, the Business Registers Agency, the Geodetic Institute etc. We are now working on integration, and our priority is to realise the integrative potential of Post Srbija to the greatest possible extent – and not just through the possibilities of our network, but rather through a central system that we are hosting and for which the European Commission gave a grant,

rily through the development of an integrated information system that covers all business and service processes, and does so through two subsystems: PostTIS, which covers the technology segment, and PostSAP for managing business processes. Moreover, full computerisation has also been carried out through the development of our own information and communication networks, while simultaneously we have also provided a variety of electronic channels that are available to the majority of citizens, as well as internet services, call centres and mobile terminals. As I have already mentioned, we are working on e-government development projects and are also developing a network with Serbian Railways, as well as new technology projects that are focused on developing registered electronic letters, epayments and multi-banking, with the aim of providing integrated access at almost every point in Serbia.

■ In April you welcomed to Belgrade the Assembly of the Association of European Postal Service Providers. When it comes to Europe, how far has the harmonisation of laws advanced with regard to postal activities and matching Serbia’s standards with those of other European countries? -That meeting saw very important decisions taken, which were summarized in a document entitled “The Belgrade Declaration”.

The number of employees with higher education qualifications has increased from 10% to 15% and to some extent we have rejuvenated the workforce, but such changes cannot be implemented overnight in such a large system as this

or through individual solutions such as birth certificates, citizenship documentation and so on. We endeavour to go a step further and, through integration, provide mechanisms for all civil service authorities to gain relevant and comprehensive insight into all important segments of economic policy – how the economic situation is, how the budget is filled, what is happening on the labour market, in the social policy domain etc. Our goal is for those reports to be up to date and reviewable, and to contribute to greater coordination and the quality of decision making. I think we have a reasonable basis in already existing services, such as digital signatures, time stamps and other important information solutions. Likewise, we also have IT professionals who have proven their abilities precisely through such projects. Of course, the ultimate meaning of everything is to provide citizens and businesses with more efficient communication with the state administration, through electronic services that will provide them with greater quality in less time.

32 |

■ Elsewhere in the world postal services have become important carriers of technological development. What is Post Srbija preparing in that domain? -Post Srbija has already done a lot in this regard, prima-

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duction to the system of major postal centres in Belgrade, Novi Sad and Niš. What is the status of these projects and what will these centres actually mean for the further development of Post Srbija? -When it comes to construction works, the entire project is being completed on schedule by the end of August, after which will follow a tender for the procurement of appropriate equipment. Thanks to modern major postal centres, we will ensure full automation in the processing and distribution of shipments throughout Serbia. Given the fact that postal services have decreased worldwide and that parcel traffic is growing, we will be focused on the development of transport logistics, on further expanding the capacities of hybrid post and the development of e-commerce. In this way we are becoming really efficient as logistical support for the economy both within the country and beyond its borders. In addition to the fact that we have provided the most advanced infrastructure for the further development of business operations, it is just as important to us that our employees will work under far more humane conditions than before. With this, quite rightly, even better results are expected.

The entire postal industry of Europe was in Belgrade discussing new strategies, opportunities and challenges for the postal industry under current and future market conditions. In accordance with this, there was also discussion of new regulations. As for the harmonisation of domestic regulations, we are working closely in this regard with the relevant ministry and the National Agency for postal services. The domestic market has already been liberalised, but the pace at which this process will continue and laws will be passed will be decided by the National Assembly of Serbia.

■What is your main business priority on the agenda at this moment? -The priority is always to maintain energy and further boost it, to preserve existing and conquer new markets – to expand the number of users, create new services, persist in innovations, monitor trends, endure on quality ... Satisfaction with your achievements is the biggest pitfall if you become complacent, which is why it is necessary to think about expanding our business in the region, especially as we have very good cooperation with the postal administrations of the neighbourhood. ■ A seemingly trivial question: why do postmen in large cities in Serbia refuse to carry mail in carts with wheels, like their counterparts around the world? -As the postal bags are getting ever heavier, and the heavier they are the more certain our future, I believe that carts will not be a problem.■

■ We are witnessing the fact that you are introducing new products that follow global technological trends to your offer every day. What is the average educational level of a Post Srbija employee and how do they accept these innovations? -The number of employees with higher education qualifications has increased from 10% to 15% and to some extent we have rejuvenated the workforce. However, such changes cannot be implemented overnight in such a large system as this. We have a lot of internal training, but past experience has shown that the best motivation is to accept innovations – for them to provide tangible results. Once we receive the first results, it’s already easier. If projects that are not traditionally associated with postal services, such as hybrid mail, Post Export or state registers, create new markets and bring new customers, then it is easier for people to realise that change is necessary in order to ensure a degree of certainty in very uncertain economic circumstances. We have achieved a state were our employees are very dedicated to the system, and without that it would be virtually impossible for us to be able to achieve these results. ■ Your development projects have included the intro-

cordeditorial@cma.rs

96 September | 33

feature

■ By John Authers (Financial Times)

The Long View

Seasonal reflections on the eurozone

It is still summertime and the living is still easy. A three-month rally in risky assets remains intact (even after an awkward week) and the euro-zone crisis is still low in the headlines

et us take this chance to look dispassionately at the eurozone. The odds are on a new outbreak of crisis in the next weeks or months. The alternative is that Europe comes up with the “game changer” that safeguards the euro’s future once and for all – which would have an impact far beyond Europe. Why is the eurozone in crisis? Firstly, because its economies had not converged enough at the outset, so they were not ready to have the same interest rates. That meant inappropriate rates for some, and created greater divergence. Secondly, because Europe is over-levered, with a banking system far more cumbersome even than that of the U.S., though it did not go as far as the U.S. in recapitalising its banks and bolstering deposit insurance after the Lehman financial crisis. Thirdly, because the Lehman crisis weakened the banks and inflicted a recession on the eurozone, weakening tax receipts and worsening the zone’s fiscal position. Finally, the eurozone is in crisis because of the mechanics and psychology of markets. Loss of confidence in a country’s debt pushes up the cost of servicing that debt. No solution can last while investors’ doubts remain. Can the eurozone be allowed to break up? Not without a fight. Leaving the euro would allow a country to devalue, thus bolstering its competitiveness (after first inflicting a recession). It would also offer the option of simply printing money with which to repay debts. But an exit of one country (probably Greece) would create a precedent. Within the single currency, devaluation was not an option. A Greek exit would show that devaluation remained an option and encourage speculation against other countries. An exit of more countries – particularly Spain or Italy – is hard to countenance. Sudden devaluations of their debt, which is widely held, could spark bank failures. There would also probably be bank runs as depositors tried to avoid seeing their deposits devalued. Even though the eurozone is flawed in design, breaking it up remains a last resort. Is a solution possible? Yes. Judged as a whole, the eurozone does not have a solvency problem. The International Monetary Fund projects that net government borrowing in the eurozone countries next year will be 2.7 per cent of gross domestic product. The U.S. and the UK both project deficits of more than six per cent, yet their debt is not under attack on the markets. The money exists within Europe to make the crisis go away. So what are the solutions?

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SEPTEMBER 2012 business leaders’ meeting point

Markets must be convinced that defaults can be avoided. Austerity, we now know, will not do this; it creates too great a political reaction and its effect on the economy is so deleterious that it does not help bring deficits down. So it is necessary to show that the entire eurozone stands behind all the debt issued by its members. In the short run, the European Central Bank can achieve this by buying peripheral bonds without limit. The ECB is jointly funded by eurozone members, so this is in effect a disguised debt mutualisation. Longer term, debt must be mutualised more formally, by creating bonds that are issued by the eurozone as a whole. That cannot happen without allowing central eurozone institutions much greater oversight over each economy, as otherwise it implies that more solvent countries will write a blank cheque to those that are in difficulty. Markets also need to know that the bank issue has been sorted out. That means an aggressive recapitalisation, a system of deposit insurance that removes any incentive to flee from one country to another, and possibly splitting up institutions that are too big. All of this would take time. A realistic road map to solution, then, involves the ECB doing “whatever it takes” to keep peripheral bond yields down, which means creating euros to buy bonds. While it does this, Europe’s politicians need to thrash out a deal that allows for the issue of eurobonds, and that reinstates confidence in Europe’s banking system. What are the obstacles to such solutions? The obstacles are purely political but very high. A periphery country could balk at the austerity asked of it (as almost happened in Greece earlier this year). In future, core countries’ electorates may balk at mutualising debt, and peripheral voters may refuse to swallow the loss of sovereignty that would accompany it. Another obstacle might come if Greece forces the issue by defaulting and leaving the euro. Markets will put all attempted solutions to the test. That is what they do. Best to enjoy the last days of summer. ■

Page 40

Milan Bojović

director of company Puteva A.D., Užice

Page 44

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Polona Krpač

View from England

General Manager, Zastava Tapacirnica,a.d Kragujevac

Savings Shouldn’t We Use our be Made on Heart to Realise Investments our Vision

Is the Governor of the Bank of England Too Powerful?

local news

Business Dialogue 01

Results

Taste

"In September we will analyse the election results and everything that happened in the Democratic Party. In early September each member on the Board of the party will have a chance to express their view, in order to determine responsibility and guilt." - Boris Tadić, President of the Democratic Party

"It's no secret that not all of the people from the DS leadership are to my taste. Fortunately, I'm not to their's either." - Dragan Djilas, deputy leader of the Democratic Party

Piraeus Bank SA Athens

Smart Network

Absorbs the Good Part of Agricultural Bank

Smart network throughout the whole of Serbia on HSPA + 42 Mbps technology

Piraeus Bank SA Athens announces that the transfer of healthy assets and liabilities of the Agricultural Bank from a special trustee was concluded on Friday 27th July 2012, for €95 million consideration

The key parameter of the transaction was securing all job positions of Agricultural Bank’s employees. The assets and liabilities that were acquired from Piraeus Bank consist of the following: €21.4 bn in liabilities, of which €14.3 bn customer deposits, €6.7 bn interbank liabilities and €0.4 bn other liabilities €14.7 bn in assets, of which €10.6 bn net loans and 4.2 bn other assets. The €6.7 bn difference that arises between the preliminary valued transferred assets and liabilities will be covered by the Hellenic Financial Stability Fund (HFSF), according to the provisions of the law. Furthermore, regarding the coverage of the capital needs that arise from the transferred assets, the HFSF will contribute to the acquirer Piraeus Bank an amount of €0.5 bn, so as the total capital adequacy ratio (pro-forma, March 2012) to be maintained above the minimum required level (8%). With the acquisition of the aforementioned assets and liabilities, Piraeus Bank Group: • gains a leading position in the

banking operations in Greece with market share of 19% in deposits and 16% in loans (data March 2012) • benefits by the synergies that will arise and total €155 mn after tax at the end of the first 3 year period, and €155 mn after tax annually afterwards. • improves its loans to deposits ratio to 124% • improves the structure of both loans (26% mortgage loans) and deposits (28% savings) The total assets pro-forma (March 2012) amounts to €74 bn, customer deposits €35 bn and net loans €44 billion. The Group’s total number of employees reaches 17,000 people and the total branch network amounts 1,230 units, with a presence in 9 more countries outside Greece. Lazard Frères acted as financial advisor to Piraeus Bank for the transaction. Interested parties can refer to the relevant decisions of Bank of Greece for further information: http://www. bankofgreece.gr/BoGDocuments/ EME_4_1_27-7-2012.pdf and http:// www.bankofgreece.gr/BoGDocuments/ EME_4_3_27-7-2012.pdf

Belgrade Fair

Step in – Plug in!

We are pleased to invite you to take part in the 8th International Energy Fair, ENERGY 2012, and the 9th International Environment Protection Fair, ECOFAIR 2012, which will be held at the Belgrade Fair from 10th to 12th October 2012. 38 |

96 September 2012

Telenor

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Regardless of whether you use the internet for private or business purposes, or whether you’re communicating with friends “overseas”, researching your seminar, school coursework or dissertation works, it is very important how quickly and efficiently you are able to do that. With consideration for the best user experience for all of its customers, Telenor has gone one step further in investing in its network infrastructure. The Smart network has become even faster and even better, while constant work to increase its capacity, by improving all 3G base stations with HSPA+ 42Mbps technology, has enabled users to enjoy real download speeds at an average of 10 to 20 Mbps through devices that support this technology. Telenor is currently the only operator in Serbia with a commercial offer that enables its customers

SOMBOR KIKINDA

BEČEJ ODŽACI

ZRENJANIN

VRŠAC INĐIJA

SREMSKA MITROVICA

PANČEVO BELA CRKVA BEOGRAD KLADOVO ŠABAC MLADENOVAC

MAJDANPEK

VALJEVO

LOZNICA

BOR

DESPOTOVAC VELIKA PLANA

UŽICE

ZAJEČAR

KRAGUJEVAC

POŽEGA

KNJAŽEVAC IVANJICA

PRIBOJ

KRUŠEVAC NIŠ

NOVA VAROŠ PIROT

PROKUPLJE ALEKSANDROVAC PRIJEPOLJE

SJENICA

BELA PALANKA

KURŠUMLIJA LESKOVAC NOVI PAZAR

KOPAONIK

Mercedes-Benz

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The Dynamism of a Rock-Solid Character

SUBOTICA

NOVI SAD

Placements & Postings

SURDULICA VRANJE

to purchase HSPA+ 42 Mbps modems, which are the only modems supporting these download speeds. Moreover, users can check changes in coverage and improvements to the speed of the HSPA+ 42 Mbps network at any time through an interactive coverage map on the www. telenor.rs website. The new speeds that are achieved by improving the Smart network are important for the support of smart devices in the future, because much faster data transfer through a secure network will provide users with the best mobile internet experience.

Gorenje

Another Plant in Valjevo The Slovenian company Gorenje has started building a new home appliances factory in Valjevo, which will create 400 new jobs Gorenje is constructing a plant covering around 20,000 square metres next to another one of its factories. The plan is for the production in the new facility to begin in February 2013. The investment stands at EUR 20 million. According to Gorenje’s investment contract in Valjevo, the government will provide subsidies of EUR 10,000 for every new job. Gorenje’s plan is to put the roof on the plant by mid-November. Trial production will start on January 15, and full production should begin on February 1.

The Belgrade Energy Fair 2012 is an important regional event gathering together energy producers and manufacturers of energy equipment and services, providing a venue and an opportunity to conclude important business deals. ECOFAIR 2012 brings together all participants in the environment protection system, with a special focus on the so-called Green Economy, i.e. the recycling industry, renewable energy sources and waste management.

The new MercedesBenz GLK is displaying its full credentials onand off-road. Its claim to leadership of the compact SUV segment is underscored by trailblazing assistance systems, engines matching efficiency with agility, a new design and an extended range of equipment and appointments

The newly designed exterior lends the GLK added dynamism. The body combines classic elements of all-terrain vehicles with the design idiom of the current Mercedes-Benz models. Stringent lines, expansive surfaces and the smooth-surfaced, volume-emphasizing front and rear areas harmonies with the hallmark GLK body features which are typical of classic, functional all-terrain vehicles. Apart from the attendant benefits in off-road terrain, this design also offers concrete advantages in dayto-day use. The high seat position provides a commanding view of the traffic situation, with the body lines also designed for excellent visibility. The designers at the Centre of Competence for Interiors have undertaken a thorough makeover of the dashboard, for example: a wide trim in aluminum or optionally in wood spans the entire width of the dashboard. The new round vents and additional trim elements in silver shadow also catch the eye. A high-end color display is optionally available for the instrument cluster. A three-spoke sports steering wheel, new upholstery colors and seat designs plus indirect ambient lighting featuring LED fiber-optic technology, which is available on the GLK for the first time, further enhance the feel-good atmosphere inside the car.

Ivica Dačić New Prime Minister and Minister of Internal Affairs

Clean machines: the GLK engine range The range of engines provides for drive comfort and attractive performance in all GLK models in conjunction with low emissions and fuel consumption. In all, there is a choice of six diesel models and one petrol engine. The excellent fuel economy of all GLK models is underpinned by a comprehensive package of BlueEFFICIENCY measures as well as by this stateof-the-art engine technology. In addition to the ECO start/stop function that comes as standard, these measures include the seven-speed 7G-TRONIC PLUS automatic transmission. Lowfriction axle drives, electric steering and tyres with low rolling resistance also play their part in reducing fuel consumption. Exemplary safety as standard The revamped GLK-Class incorporates the integral safety concept in keeping with Mercedes-Benz’s brand philosophy, which is based first and foremost on real accident scenarios. Assistance systems familiar from the S- and E-Class feature as standard to enable a further improvement in active safety and driver-fitness safety and take the compact SUV to the top of its market segment.

Aleksandar Vučić New defence minister and first deputy prime minister responsible for defence, security and combating corruption and crime, as well as Secretary General of the National Security Council

Jovan Krkobabić Deputy Prime Minister and Minister of Labour and Social Policy

Mlađan Dinkić New Minister of Finance and Economy

Ivica Dačić, born in Prizren, Kosovo, graduated from the Faculty of Political Sciences in Belgrade. He was the first president of the Young Socialists of Belgrade since 1990 and spokesman for the Socialist Party of Serbian (SPS) from 1992 to 2000. From 2000 until 2003 Dačić served as Chairman of SPS's Belgrade Board. He was Minister of Information in the so-called interim government of the Republic of Serbia from October 2000 until January 2001. Since December 2006 Dačić has been president of the Socialist Party of Serbia and from July 2008 until May 2012 he held the posts of first Deputy to Serbian Prime Minister Mirko Cvetković and Minister of Internal affairs. He speaks English and Russian and is a married father of two children.

Aleksandar Vučić was born in Belgrade, where he finished his schooling, studying law at the University of Belgrade’s Faculty of Law and graduating as one of the top students. He then spent a year studying in the UK. Vučić was director of the Pinki Sports and Business Centre in Zemun and served as Minister of Information from 1998 to 2000. His political roles include being a member of the Administrative Committee, the Committee on Constitutional Affairs, Deputy Chairman of the Committee on Kosovo and the Committee on Culture and Information. He speaks English fluently and also speaks Russian and French. Vučić is married to wife Ksenija and has two children.

Born 1930, he gained an MA and PhD. from the Faculty of Political Sciences in Belgrade. He spent 18 years working at the Institute of Nuclear Sciences in Vinča and is the founder and director of the Republican Union Pension and Disability Insurance fund. President of the Party of United Pensioners of Serbia since 2006 and the Union of Pensioners of Serbia, he has received many national and international honours and awards, including the Golden Charter of the UN General Assembly. He is a married father of two sons.

Born in Belgrade, where he graduated and received his MA in Economics, from 1990 to 2000 Dinkić worked as an assistant professor at Belgrade University’s Faculty of Economics. He also graduated from the Music School, piano department. Dinkić is a co-founder, coordinator and then executive director of Group 17. Since 2006 he has been president of political party G17+. From 2000 until 2003 he was Governor of the National Bank of Yugoslavia, later renamed the National Bank of Serbia. Dinkić was appointed Minister of Finance in 2004, but resigned in 2006. In 2007 he was elected Minister of Economy and Regional Development and later retained the same position in the government of Mirko Cvetković, formed in 2008. In February 2011 Dinkić again resigned, this time from the posts of deputy PM and Economy and Regional Development Minister. He is married to wife Tatiana.

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Business Dialogue Interview

Crisis

Speculators

"The debt crisis can be overcome as long as the eurozone now continues to vigorously and consistently work on all fronts." - Olli Rehn, European Union Chief of Economic Affairs

"Stop the presses, freeze everybody, and prop up Morgan Stanley and Goldman Sachs and all the rest of the speculators." - David Alan Stockman, former U.S. politician and businessman

Milan Bojović, director of company Puteva A.D., Užice

A bank for support, for both the domestic market and for overseas, would be a big deal for the construction industry. Because if we’re participating in a tender and, let’s say, land a job worth about €100 million, we need a bank guarantee of at least €20 million for that

Although the economic crisis has proven to be the most disturbing for the construction industry, there are still examples showing that it is possible to operate successfully and profitably. One such example is certainly Putevi (Roads) AD from Užice. This company not only ended the previous year with gains, but rather has recorded the growth of investments every year since its privatisation in 2003. The development policy of the company is based on the continuous improvement of human resources and the atmosphere and enthusiasm of the company’s management in all of its units.

Despite many good workers, we have a problem of people who apply as painters, carpenters, tilers, and even have a diploma proving their trade, after a month of work we have to send them back because they are proved not to be masters of that level

40 |

The main development generators are new technologies, modern machinery and equipment, as well as continuous training and education of employees in the country and abroad. Realised profits are directed precisely towards those goals. In late February this year, Putevi Užice gained the public’s attention when it began seeking 2,000 workers from Serbia who would, for a minimum monthly wage of €1,200, participate in the construction of the 96 September 2012

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Savings Shouldn’t be Made on Investments Olympic complex in Sochi, Russia. This company needs to build a total of more than ten different facilities to accommodate athletes and journalists, including hotels with five and four stars, covering a total of 92,000 square metres, while the total value of all jobs obtained in Sochi is about $750 million. Putevi Užice has expressed an additional need for workers, mainly in civil engineering, in order to complete the job within the stipulated deadline of 14 months. This company provides about 35 percent of the total workforce needed to build the complex in Sochi, while Putevi Užice plans to utilise building materials and products made in Serbia to the greatest extent possible in the building, in order to enable the placement of Serbian producers on the Russian market. Besides Russia, the company is building in other locations around the world, such as Algeria, where it is building a hospital worth €15 million. Interest in this company also exists in Iraq, Iran, Libya, though many difficulties stand in the way of realisation. It’s tough to find workers for the African and Middle Eastern markets, because the risk of political instability is great and, besides that, European banks do not give guarantees for periods of three, five or ten years, which the African market demands. An even bigger problem is the lack of skilled construction staff, who may have the proper titles, but do not possess adequate skills, while an additional problem is created by the need for a profile, even such an under-trained one, that there isn’t enough of on the Serbian labour market.

■ Despite the economic crisis that hit your sector, Putevi Užice ended last year with a profit, which, judging by the recent decisions of the Assembly of the company, is committed to the further development of the company. What are your immediate strategic development directions? -In 2011 Putevi Užice made a huge increase in the realisation of works, due both to market conditions and the taking over of a large number of jobs in the country, and to a lesser extent due to the increasing volume of work abroad. The development directions of Putevi Užice for this and subsequent years are to be an active participant in all major infrastructure projects in the country, but also to open up to new foreign markets, mainly in Algeria.

■ You recently signed a valuable contract for the construction of Olympic facilities for the 2014 Sochi Olympic Games, then immediately sent 150 of your workers to this mass building site. How are these activities being realised; were there fears that there may be delays in the construction of facilities for the Olympics? -I can say that from the moment we signed the contract to date more than 1,200 new workers from Serbia have gone there, while there is a tendency to send another 500 workers by the end of 2012. In addition, three boatloads of various construction materials departed from the Port of Smederevo, carrying a total of about 6,000 tonnes (building blocks, adhesives, plasters etc.). We expect that other local manufacturers of furniture, doors and other products that will be required for

while Putevi Užice was declared the “Best Company” in the region. What are the global trends in the construction industry in the region and the where is Putevi Užice’s place in that? - The award we received in Sarajevo was acknowledgment that some people did actually take notice of all of our effort and work in these difficult economic circumstances. This recognition feels good, but also commits the company, which employs about 1,600 workers in the country, to continuing its uphill journey and providing enough jobs in the country and abroad.

■ The new government has announced austerity measures when it comes to investments. Based on your experience, what do you think should be done to improve the situation in the construction sector? -Well, first I would say that savings should be made on all costs, but the last area to make savings should be investment, because without it there is no progress. Another big deal for the construction industry would

The development directions of Putevi Užice for this and subsequent years are to be an active participant in all major infrastructure projects in the country, but also to open up to new foreign markets

the development of hotels and apartments will find their own interest and get involved in equipping these facilities. As far as the very short deadlines are concerned, we are trying to honour all of them, which we have so far managed.

■ In Russia alone you employ over 1,000 of our construction workers. Where else are you building and which markets are you planning to develop? - As I already mentioned, we are also present for now in Algeria, working on a project to build a hospital in Laghouat in the south of the country and we expect to gain another much bigger job.

■ Despite unemployment, many companies complain that it’s hard to find skilled labour. Given the wide scope of construction works that you cover, does the Serbian market have enough manpower to carry out work on the precise contracts you have in the country and elsewhere in the world? - One of the major problems for works abroad is finding a skilled, high quality workforce. It is for this reason that we published notices that we were seeking workers for all those jobs in the media. Unfortunately, despite many good workers, we have a problem of people who apply as painters, carpenters, tilers, and even have a diploma proving their trade, after a month of work we have to send them back because they are proved not to be masters of that level of expertise and this causes additional costs and problems. ■ In July in Sarajevo you received recognition as the “Best Manager of the Year” for the region of Southeast and central Europe,

be a bank for support, for both the domestic market and for overseas. Because if we’re participating in a tender and, let’s say, land a job worth about €100 million, we need a bank guarantee of at least €20 million for that and that’s still hard to get from banks.

■ And what measures should the government adopt in order to help the construction sector, which was world renowned and respected in the former Yugoslavia and is still so in Serbia today? - As I have already mentioned, that is government support through guarantees and cheaper loans for investment and equipment, as well as having as many bilateral agreements as possible with the countries where we are always welcome, both as a result of the quality of our work from the past, but also particularly those friendly countries that make large domestic investments, such as Algeria, Libya, Iraq and so on.■ cordeditorial@cma.rs

96 September 2012 | 41

regional news

Business Dialogue 01

Investment

Ties

"We cannot boost investment while we have ancient deed books, while we require 40 to 50 permits for a single project, while local plans are not adapted to requirements." - Croatian President Ivo Josipović

"Serbia needs to take better care of Serbs outside Serbia. Milorad Dodik, President of Bosnia’s Republika Srpska

Bulgaria

facturer YAZAKI bought the Miroglio factory in Sliven, while South African company ALC (Automotive Leather Company) opened a plant for luxury vehicle seats and BMW interiors in the village of Musachevo. The total stock of contemporary logistics, speculative logistics and industrial space in Sofia increased by 15,000m2 in the first six months of 2012, mainly due to the subletting of logistics bases by their owners.

Dairy Exports Increase Romania’s dairy exports have increased, but still equate to only a quarter of the import level

Romania imported milk and dairy products worth €75.7 million in the first four months of 2012, representing a drop of around five percent on the same period last year, according to data from the country’s Agriculture Ministry.

The country imported 74,700 tonnes of milk and dairy products, 10.4 percent less than in the same period of 2011. Exports went up to 11,300 tonnes, from 8,700 tonnes in the same period of 2011, while the value of exports was €19.1 million – almost double the €10.5 million yielded in the first four months of last year.

Should the Russian government and Gazprom decide that the south stream pipeline will pass through Croatia instead of Hungary, construction of the pipeline through the former Yugoslav republic should begin in 2015. A decision from the Russians is expected in the next two months, with Gazprom having decided to begin construction of the pipeline in December this year. According to the agreed technical plan between Plinacro and Gazprom, a completely new pipeline of a length of 270 kilometres would be installed through Croatia. The value of the investment is estimated at around €600 million. Source: Croatian Times

Republika Srpska

Foreign Trade Exceeds $5 Billion According to latest statistics of Bosnia’s Republika Srpska, the entity’s total volume of foreign trade with other countries in 2011 was $5.07 billion dollars, with an exportimport ratio of 55.9 percent

The value of exports was $1.82 billion, while imports totalled $3.25 billion, giving a trade deficit of $1.43 billion. Exports from the Serb entity increased 23.5 percent in the last year, while imports increased by 18.6 percent compared to 2010. The largest volume of foreign trade, worth $933.69 million, was with Russia, followed by Serbia, at $924.9 million, and Italy, with trade worth $539.6 million. The maximum value of imports, exceeding a billion dollars, was spent on fossil fuels and lubricants, while imported machinery and Source: Srna transport vehicles had a total value of $422.5 million.

Albania

Increasing Energy Production Capacity Albania is planning to increase its energy production capacity to 1427 megawatts

A recent Albanian government meeting saw PM Sali Berisha announce the building of hydropower stations and confirm that he considered energy the pri42 |

96 September 2012

Kosovo

Representatives of Russia’s Gazprom and Croatia’s natural gas transmission system operator, Plinacro, have agreed technical details for the transit route of the “South Stream” gas pipeline to run through Croatia

According to Colliers International’s Industrial Real Estate Market Overview, during the first six months of 2012 Bulgaria was more attractive than other EU member states by virtue of its low production costs, favourable tax rates and good geographical location. During the reporting period, new production facilities in Bulgaria were mostly opened by international companies operating in the automotive sector. Japanese car parts manuRomania

Financial Agreement with Austria Finalised

Russian Pipeline Deal Done

Attractive Outsourcing Destination Major international companies are studying the Bulgarian market to determine whether it is an appropriate destination for opening new production facilities

Croatia

ority branch for the development of the economy and the country. “The process of building hydropower stations is moving ahead quickly and successfully. A few months ago I informed about 46 hydropower stations being built

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or rebuilt, but today that number has risen to 72 and all together they produce 126 MW of energy. Meanwhile, 50 other hydropower stations under construc-

tion will have a capacity of 577 MW, markedly higher than the Fierza hydropower station, while 120 others, with a combined capacity of 730 MW, i.e. more than Fierza and Vau i Dejës cmbined, are actually in the process of gaining permits and launching procedures,” said Berisha. Albania is expected to increase its energy production capacity to 1427 megawatt, or 227 MW more than the installed capacity along the entire flow of the River Drina.

A Financial Cooperation Agreement has been finalised between the governments of Kosovo and Austria and signed by respective foreign ministers Bedri Hamza and Maria Fekter. The agreement

Placements & Postings aims to further promote close and friendly relations between the two countries in general, but also with particular emphasis on expanding and deepening their financial cooperation. The Austrian Ministry of Finance is willing to support the development and financing of infrastructure projects under the framework of a soft loans programme of the Austrian government, re-financed by the Austrian Bank (OeKB), providing loans under more favourable financial conditions. The indicative value of the financial framework is €20 million and has been initially envisaged over a period of two years.

Zorana Mihajlović New Minister of Energy, Development and Environmental Protection

Montenegro

Construction Activity Falls 23.7% The value of completed construction works in the second quarter of 2012 fell by 23.7% in Montenegro compared to the same quarter of 2011, though it was up 42.6% compared to the first quarter of the current year. Effective hours worked on construction projects in Q2 2012 were 11.2% lower compared to the same quarter of 2011, while recording a high of 7.6% over the first quarter of this year. The

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Macedonia

The Macedonian government is set to stimulate the growth of tourism next year with €3 million that is expected to lead to a return of over €200 million in foreign currency income and an increased number of tourists. The government has adopted its Tourism Promotion of Macedonia and Support of Tourism in 2013 programme, setting aside €2.5 million to finance

Slavica Đukic Dejanović New Health Minister

value of new orders on buildings in Q2 2012 was down 40.5% on the same quarter last year and down 25.7% compared to Q1 2012. The value of new orders on other buildings in the second quarter of 2012 fell 30.2% compared to Q2 2011, while it was 82.2% higher than in the first quarter of this year.

€2.5 Million for Tourism Growth it. This sum marks an increase of €1.5 million over the 2012 budget. Meanwhile, an additional half a million Euros will be provided through special ministerial programmes that will stimulate the growth of alternative, wine, rural, cultural and sports tourism. This increase in tourism financing is aimed at continuing present government policies that have resulted in a rise in foreign tourists and higher associated foreign currency income.

Goran Knežević New Minister of Agriculture, Forestry and Water Management

Ivan Mrkić New Minister of Foreign Affairs

Born in Tuzla, Bosnia and Herzegovina, Mihajlović completed her schooling in Belgrade, earning a degree from the University of Belgrade, an M.A. in 1998 at the Faculty of Economics and a PhD. in 2001, also from the Faculty of Economics She started her professional career as Professor of Accounting and Business Economy at the 1st Economics High School of Belgrade and, from 1996 to 2006, worked at Electric Power Industries of Serbia (EPS), where she was a member of the Management Board from 2004 to 2007. From 2008 she worked as an Associate Professor at Megatrend University in Belgrade. Mihajlović joined the Serbian Progressive Party in 2010 and has since become a distinguished member of the Executive Board. Fluent in English and with a working knowledge of French and Italian, she has one son. Born in Rača, Đukic Dejanović completed her primary and secondary school education in Kragujevac, followed by graduation Medical Faculty in Balgrade. Her MA, PhD.,as well as neuropsychiatry specialisation was completed at the Medical Faculty in Belgrade She was the youngest female medical doctor in Šumadija and has written or co-authored over 200 scientific papers. She is the founder of the Daily psychiatric hospital in Kragujevac and vice president of the Psychiatric Section of Serbia. Mrs. Đukic Dejanović is professor and head of the Department of Psychiatry and Dean for International Cooperation at the Medical Faculty in Kragujevac. She has also served as director of the Clinical Centre in Kragujevac from 1993 until 2000. She has been a member of the Socialist Party of Serbia (SPS) since its foundation in 1990. From 2008 until 2012 she served as Speaker of the Serbian Parliament. Born in Banatski Karlovac, where he finished primary and secondary school, Knežević graduated from the Belgrade University’s Faculty of Economics. His professional career began at the "Servo Mihalj" Combine in Zrenjanin. Knežević, a former professional basketball player, was elected President of the Basketball Federation of Serbia and Montenegro in 2005. As a member of Democratic Party (DS), in 2000 Knežević was elected president of the Municipality of Zrenjanin and in 2004 he was elected Mayor of the City of Zrenjanin. He was dismissed in 2009 and in January 2010 joined the Serbian Progressive Party (SNS). In May 2012, Knežević was re-elected Mayor of the City of Zrenjanin. He is a married father of four children and speaks Russian fluently. Born in Belgrade, Mrkić graduated from the Faculty of Law at the University of Belgrade and started his career in 1978 at the Federal Secretariat for Foreign Affairs. From 1979 he was an officer at the Directorate for Int. Org. of the Federal Secretariat for Foreign Affairs, then a political affairs attaché at the Yugoslav mission to the UN. He was minister-counsellor at the Mission of Yugoslavia to the EU Community in Brussels from 1990, followed by two years as chief of staff of Dobrica Ćosić, the first President of the Federal Republic of Yugoslavia. From 1993 to 1999 he served as charge d'affaires and then Ambassador to Cyprus. Between 2001 and 2004 Mrkić was Ambassador to the Federal Ministry for Foreign Affairs, then the Ministry of Foreign Affairs of Serbia and Montenegro. From 2006 to 2011 he served as ambassador to Japan and from 2011 until July 2012 he was Serbia’s State Secretary for Foreign Affairs. He speaks English and French and has two sons with his wife Ivona.

cordeditorial@cma.rs

96 September 2012 | 43

Business Dialogue Interview

Money

Nerds

"What's money? A man is a success if he gets up in the morning and goes to bed at night and in between does what he wants to do." - Bob Dylan, American singer-songwriter, musician and artist

"Be nice to nerds. Chances are you'll end up working for one." - Bill Gates, American business magnate, computer programmer and philanthropis

Polona Krpač, General Manager, Zastava Tapacirnica,a.d Kragujevac

We use our heart to realise our vision

nder conditions of the global economic crisis, it is easy to find reasons why a company is not successful. It is far more difficult to find a company that, through the joint efforts of all employees, finds a way to be successful, satisfy its customers, but also motivate its employees to improve daily

■ From 2007 to 2012 Zastava Tapacirnica managed to fulfil all of the goals it set for itself and become the leading supplier of large manufacturers such as Opel, Renault, Peugeot, VW, SEAT and BMW. What is the secret of your success? - Our core values are: collegiality, teamwork, responsibility, discipline, self initiative and continuous improvements in all areas of the organisation. We continually invest in developing the skills and competencies of all employees. We are completely flexible and endeavour to contribute to the continuous development of our customers to surpass their expectations, to the satisfaction of owners, employees and the environment. With the execution of our policy of quality we continually develop, implement and improve the effectiveness of our management quality system

Zastava Tapacirnica has already been working for five years in accordance with the demanding standards of ISO 9001:2008 and ISO/TS 16949:2009, which has a special application for manufacturers of cars and spare parts

and thereby improve user satisfaction with our products. We are also aware that, under the current difficult conditions on the market, it is no longer enough to simply have a quality product, rather our customers must be satisfied and also delighted with our potential for future development. It is very important that 44 |

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“We are successful because of that, as we use all of our power, through teamwork and by giving our heart, to achieve our vision, mission and the policy of the quality of our company, with the founding motto that we are always one step ahead of the competition and one step ahead of the wishes of our customers,” says Polona Krpač, General Manager of Zastava Tapacirnica our customers see us as a reliable systemic supplier, which has a positive impact on the entire supply chain, and as long term partners. That’s why we establish and nurture partnership relations with our clients. The rating of the quality of our products that we receive from our clients is our only criterion, while their satisfaction is the most important aim. In order to be competitive at all times, we also develop and implement technological solutions that increase the efficiency of the process and optimise the cost of a product. Our mission is also to become a model and a motor for the development of the city and the region, with the employment of people who are the most important resource and whose individual visions ennoble and constantly build on our shared vision “to become and remain one of the best and most reliable suppliers in the global automotive supply chain.”

tiles, leather and vinyl. We identified the quality of our products as the foundation of success and development, so our products are reliable and can meet the needs of the most demanding customers. In addition to reliability, one should also emphasise their durability and safety of use with maximum functionality. ■ You’re very proud of the new of 8000m2 plant, considering that it was built according to the highest European and international standards. What opportunities for improving production does this plant provide? - The new facility provides opportunities for cutting-edge approaches to the organisation of production. With the introduction of the “lean” manufacturing principle, we are improving

working in accordance with their specific and additional needs. Further development plans relate to the expansion of our product range and gaining work sewing seat covers for the complete interior of cars, with the goal of our customers – current and potential future clients – in addition to nominations for serial production, nominating us for the award for development, which would lead to us also being classed as good system developers of vehicle interiors. ■

It is very important that our customers see us as a reliable systemic supplier and long term partners. That’s why we establish and nurture partnership relations with our clients

production because we can make the most optimal lay-out and plan the most optimal value flow through the production process. In this way we reduce all unnecessary losses and additional handling operations, which otherwise reduce the value. With the new plant we also provide employees with optimal working conditions, in order to enable the maximisation of their contribution towards achieving our shared goals.

■ What are your future plans for advancing quality and further developing? - Zastava Tapacirnica has already been working for five years in accordance with the most demanding standards in the automotive industry. We are certified according to the demanding standards ISO 9001:2008 and ISO/TS 16949:2009, which has a special application for manufacturers of cars and spare parts. Besides this, we are also planning to implement the environmental management system ISO 14001:2004. We monitor and respect all of our customers’ demands by

■ What are the main features of the quality of your products? - Our products are part of a vehicle’s interior. Our main activity is cutting and sewing the headrest covers, armrests and other small parts of the interior. All of our products are manufactured using the latest technology and with the use of tested and certified materials of the highest quality on the world market: tex-

cordeditorial@cma.rs

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world news

Business Dialogue 01

Targets

Quality

"We have the conditions and capabilities, and will be sure to fulfil this year's economic and social development targets." - Wen Jiabao, Premier of the State Council of the People's Republic of China

"Be a yardstick of quality. Some people aren't used to an environment where excellence is expected." - Steve Jobs

Spain

Inditex Lift First Quarter Profits by 30%

Losing ‘Tens of Millions’ on London 2012 Though Canada’s Olympic Broadcast Media Consortium may have achieved many milestones during the Summer Olympic Games, turning a profit wasn’t among them

Inditex, the Spanish clothing retailer, has increased sales and made its founder, Amancio Ortega, the world's third richest man

Spanish clothing giant Inditex, that includes Zara, appears immune to the slings and arrows of misfortune. Last month its founder, Amancio Ortega, was named by Bloomberg as the third richest man in the world, with a personal fortune of €37.5bn. The company, the world's biggest clothing retailer, has tripled its stock market value over the past three years with profits up 30% on 2011 for the first quarter of this year. Even in Spain, where consumer spending has nosedived as a result of spending cuts and mass unemployment, Inditex has increased sales by a modest 1%, while competitors such as Mango saw profits fall by 38.5% in 2011, despite increased worldwide sales. The extraordinary thing about Inditex being a global leader is not just that it's Spanish, but that it's a success story that began and remains headquartered in Galicia in Spain's wild, windswept north-west. It is one of Spain's poorest regions and has always had high emigration. Ortega's mother was a maid and his father worked on the railways. He started work as a delivery boy in a textile firm and learnt the business from the ground up. He got the idea that good quality clothes should be made affordable to ordinary people and this led to him founding Zara in 1975

Germany

German Tax Income Up Nearly 9 %

Finance Ministry of the Federal Republiv of Germany, Wolfgang Schauble, says that the country's tax income was nearly nine percent higher in July than compared a year earlier – helped by recent wage increases and underlining the continuing strength of Europe's biggest economy. In its monthly report released at the end of August, the ministry said that Germany's total tax take

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Canada

in July was €43.13 billion – an increase of 8.6 percent compared with July 2011. Over the first seven months of this year, menawhile, tax revenue was up five percent to €311.36 billion. Many German workers have enjoyed solid pay increases after two years of strong economic growth. Unemployment is low. Germany's momentum has slowed this year, but the country is still doing far better than many others in the debt-troubled eurozone. Its economy grew 0.3 percent in the second quarter of 2012.

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Executives for Bell Media, the owner of CTV, which led coverage in London, confirmed last month the joint partnership with the broadcast arm of Rogers Communications Inc. will lose “tens of millions” of dollars on the marquee event, building on losses the two companies took in Vancouver two years earlier. “Although we have yet to complete our reconciliation, it is projected that losses will be in the tens of millions for 2012,” Adam Ashton, president for the consortium said in an email message. Rogers and Bell, which at the time was CTV Inc., partnered in 2005 to pay $153-million to the International Olympic Committee for the broadcast rights to the Games in 2010 and 2012. The record price was paid for the prized opportunity to broadcast the spectacle on home soil as the Winter Games came to Vancouver. Losses for London weren’t as steep as they were for Vancouver, which cost $90-million compared with $63-million for the 2012 rights. However, the financial toll of the rights combined with production costs — which fell more heavily on CTV as the bigger partner (80% versus 20% for Rogers) — was enough to convince both parties to not renew the pact for the 2014 and 2016 events.

RUSSIA

GDP Grows 4.4% in First Half Russia’s economy grew by 4.4 percent year-on-year in the first six months of 2012

Russia’s economy grew by 4.4 percent year-on-year in the first six months of 2012, the Federal State Statistics Service (Rosstat) reported end August. Rosstat’s GDP estimate coincided with the half-year figure published by the Economic Development Ministry (EDM) in July. Russia’s economy expanded by an annualized 4.9 percent in the first quarter and by 4 percent in the second quarter of the year. In January-June 2011, Russia’s GDP grew by 3.7 percent. EDM's Minister Andrei Belousov has previously said Russia's economic growth in January-June 2012 was facilitated by a fast rise in investment and rapid output expansion in manufacturing. In April the Economic Development Ministry cut its forecast for Russia’s economic growth in 2012 from 3.7 percent to 3.4 percent. The ministry said in June it could revise its GDP growth forecast upward by this fall from 3.4 percent to 3.7-4 percent.

BANKing

Placements & Postings appointments@cma.rs

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Born in Belgrade, where he graduated from the Academy of Dramatic Arts with a degree in theatre directing, he is the founder and director of the Automobile Museum and Modern Garage Theatre in Belgrade, as well as owning the oldest pastry shops in Belgrade. As President of the Community Museum of Science and Technology, he was a recipient of the Nušić Award for 2000 and the Golden Links award for contributions of culture in 2001. Founder of the chamber scene Modern Garage Theatre, he is also the author of several plays. His works “The Robbers”, “Sporting Life” and “Stuntman” have all been performed at the Belgrade Drama Theatre and he has played parts in the plays “Grand Prix”, “Legion of Honour” and “Flowers of Evil” at the Modern Garage Theatre. He has also participated as a cultural juror and chairman on numerous occasions.

The World’s Safest Banks 2012 Europe’s sovereign debt crisis and slowing growth are having a significant impact on bank ratings

In a global economy that has been plagued by troubles in the world’s financial systems, the words “safe” and “bank” still give investors pause. For the past 21 years, Global Finance has compiled a list of the world’s 50 safest banks, and with the European debt crisis ongoing, and slowing growth having an impact on bank credit ratings, long-term safety of banks is of key interest. According to Global Finance, credit ratings and rankings of most European banks have suffered except for those at the very top of the list – those that have explicit banking from triple-A rated governments. This ranking of safe banks was created through the comparison of long-term credit ratings (from Moody’s, Standard & Poor’s and Fitch) and analyses of total assets owned by the 500 largest banks in the world. For ease of comparison, Global Finance listed the highest-ranking bank in each country, since many of the highly ranked banks are headquartered in the same country. 1. KfW / Germany 2. Bank Nederlandse Gemeenten (BNG) / Netherlands 3. Zürcher Kantonalbank / Switzerland 4. Landwirtschaftliche Rentenbank / Germany 5. Landeskreditbank BadenWürttemberg - Förderbank (L-Bank) / Germany 6. Caisse des Depots et Consignations (CDC) / France 7. Nederlandse Waterschapsbank / Netherlands 8. NRW.BANK / Germany

9. Banque et Caisse d’Epargne de l’Etat / Luxembourg 10. Rabobank Group / Netherlands 11. TD Bank Group / Canada 12. Bank of Nova Scotia / Canada 13. DBS Bank / Singapore 14. Oversea-Chinese Banking Corp. / Singapore 15. United Overseas Bank / Singapore 16. Caisse centrale Desjardins / Canada 17. Royal Bank of Canada / Canada 18. National Australia Bank / Australia 19. Commonwealth Bank of Australia / Australia 20. Westpac Banking Corporation / Australia 21. Australia and New Zealand Banking Group / Australia 22. Kiwibank / New Zealand 23. HSBC Holdings / United Kingdom 24. Nordea / Sweden 25. Bank of Montreal / Canada 26.Canadian Imperial Bank of Commerce / Canada 27. Svenska Handelsbanken / Sweden 28. China Development Bank / China 29. Bank of New York Mellon Corp, US 30. Agricultural Development Bank of China / China 31. National Bank of Abu Dhabi / UAE 32. CoBank ACB / US 33. Pohjola Bank / Finland 34. National Bank of Kuwait / Kuwait 35. DZ Bank / Germany 36. Banque Fédérative du Crédit Mutuel (BFCM) / France 37. U.S. Bancorp / US 38. National Bank of Canada / Canada 39. Northern Trust Corp / US 40. Qatar National Bank / Qatar 41. Samba Financial Group / Saudi Arabia 42. BancoEstado / Chile 43. La Banque Postale / France 44. Bank of Taiwan / Taiwan 45. Shizuoka Bank / Japan 46. Banco de Chile / Chile 47. BNP Paribas / France 48. Wells Fargo / US 49. Standard Chartered / United Kingdom 50. SEB / Sweden

Bratislav Petković New Minister of Culture and Information

Prof. MilanBačević New Minister of Natural Resources, Mining and Spatial Planning

Alisa Marić New Minister of Youth and Sports

Milutin Mrkonjić New Minister of Transport

Born in Komoran, he graduated from the Skopje Faculty of Science with an MA, PhD. and specialist training in spatial planning. A university professor and doctor of science, he is professor of the Geography Department at the Faculty of Sciences of the University of Priština, with a temporary seat in Kosovska Mitrovica. He was a member of SRS for two terms and served as deputy Serbian minister of science and technology until the year 2000. Until recently he was chairman of the SNS party and an advisor to President Tomislav Nikolić. Vice President of the Serbian Geographical Society, he is also the head of the Scientific Department of the company. Born in New York, Marić graduated from Belgrade University’s Faculty of Economics and earned her PhD. from the Braća Karić Faculty of Management in 2004. She is a professor at Megatrend University’s Faculty of Marketing and Media Advertising. Besides the title of female chess grandmaster, she is also a recognised International Master of chess. A member of the Presidency of the Serbian Olympic Committee and the working bodies of the European Olympic Committee, Marić was a Serbian candidate for Vice President of the World Chess Federation (FIDE). She achieved her greatest success in chess when she became a triple winner of the European Champions Cup. Ms. Marić is married and has both a son and a daughter.

Born in Belgrade, where he graduated in Civil Engineering, Mrkonjić initially worked at the Bureau for the study and design of railways. In 1977 he gained employment at the Centre for Research and Design (CIP), before serving as director of the centre. Mr.Mrkonjić was also head of the Serbian Renewal effort, on behalf of the Government of Serbia, after the NATO bombing of 1999. He has been a deputy speaker of the Serbian Parliament and on 8th May 2007 he assumed the chairmanship of parliamentary sessions as national assembly’s oldest deputy. In July 2008 Mrkonjić was appointed minister of infrastructure in the new Serbian government of Democratic Party PM Mirko Cvetković. He received an honorary doctorate from Megatrend University in December 2009.

cordeditorial@cma.rs

96 September | 47

Business Dialogue

Dreams

Tunnel

"I want to help children in Serbia and around the world so they can realise their dreams." - Novak Đoković, professional Serbian tennis player and former World No. 1

"It is a tunnel but ... Some light is appearing at the end of that tunnel. We and the rest of Europe are approaching the end of the tunnel." - Mario Monti, Italian Prime Minister

View from THE UK

Is the Governor of the Bank of England Too Powerful? MPC veteran Kate Barker attacks regulatory reform, arguing that a greater role for 'unelected officials' is undemocratic

reasury plans to hand the Bank of England extra powers to oversee the banking system will give unelected officials too much power, one of the central bank's longest-serving former advisers has warned Kate Barker said end last month that the steady erosion of democratic control over regulation of the financial system would accelerate under proposals by the coalition government to create a super-watchdog in Threadneedle Street. She said oversight should be the job of the Treasury, based on advice from the Bank of England and other bodies involved in banking regulation. Echoing fears among many MPs that Bank of England governor Sir Mervyn King and his successors will control an unwieldy empire of regulatory committees Sir Mervyn King, Governor of the that could challenge the TreasBank of England ury's democratic mandate, Barker criticised government plans to create a financial policy committee (FPC) alongside the Bank's monetary policy committee (MPC), which sets interest rates. "More policy decisions should be left in the hands of the chancellor, rather than unelected officials at the Bank of England. Mervyn King's successor will be appointed to an unduly powerful role for an unprecedented eight-year term," she said. The FPC differs from the work previously carried out at the Financial Services Authority because it aims to "assess and steer the financial system as a whole, rather than focusing on individual organisations, which will now become the responsibility of the Prudential Regulatory Authority", she says. For example, 48 |

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KATE BARKER, Member of the Monetary Policy Committee

FPC members will have the power to restrict mortgage lending if there are concerns about a possible credit bubble, as there was before the 2007 banking crisis. Barker criticises the Treasury for delegating unpopular decisions to the FPC that should be made by parliament. In a report for the thinktank CentreForum, which has strong links to the Liberal Democrats, the long-standing MPC member warns

ity is to be avoided. Barker's criticism follows a call by outgoing MPC member Adam Posen for the Bank of England to take extra measures to ease credit conditions in the UK and encourage lending. Posen told the BBC Hardtalk programme that the double-dip recession was "entirely predictable" after the coalition accelerated the austerity measures adopted by the previous Labour administration. He repeated his condemnation of the Bank's governor for giving public support to the policy change at the time of the last election, though he praised him for reacting quickly to deteriorating economic conditions, especially after the collapse of Lehman Brothers in the US, which precipitated the banking crisis in 2008. Posen, who denied that the MPC's remit had created a barrier to bold action, has lobbied for an increase in the Bank's quantitative easing policy, which he said had been under-used in 2010 and 2011. He argued that an earlier expansion of QE, which

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Rasim Ljajić Deputy Prime Minister and Minister for Foreign and Domestic Trade and Telecommunications

Born in Čačak, Ilić graduated from the University of Belgrade's Faculty of Technology (Department of Construction Materials), before working for various construction firms and then becoming a private entrepreneur in 1986. In 2005 he obtained his Masters Degree from the University of Kragujevac. He was elected mayor of Čačak in 1996 and became president of the New Serbia Party in 2003. Appointed Minister for Capital Investments in the Serbian government of Vojislav Koštunica, at the 2008 elections Ilić was nominated for president by New Serbia, with the support of the Democratic Party of Serbia, United Serbia and the List for Sandžak. Ilić is married to wife Gorica and has five children.

Velimir Ilić New Minister of Construction and Urbanism

There is a fears among many MPs that Bank of England governor Sir Mervyn King and his successors will control an unwieldy empire of regulatory committees that could challenge the Treasury's democratic mandate

that the MPC's remit is also flawed, because it failed to spot the looming banking crisis in the early part of the last decade. She says the MPC needs to take a broader view of the economy and have a more flexible inflation target of 1%-3%. At the moment, the central bank aims to limit inflation to 2% over a two-year cycle. Proposals to shift most City regulation to the Bank of England has also been criticised by the all-party Treasury select committee, which questioned the democratic processes inside the Bank of England in a report earlier this year. "The coalition government has certainly sought to be radical in its approach to macroeconomic policy. But it has invented too many different bodies and not looked hard enough at what went wrong in the lead-up to the crisis. Most significantly, it has delegated too much to the Bank of England, which next year will for the first time have a governor appointed for an eight-year term, into a very powerful unelected role," Barker said. Barker's report pays tribute to the coalition for creating the Office for Budget Responsibility, suggesting it has increased the credibility of government tax and spending figures, but urges the chancellor to rethink deficit reduction if "self-defeating" auster-

involves creating money to encourage bank lending, alongside more direct efforts to promote lending to small and mediumsized businesses, would have increased consumer demand, investment and economic growth. In a sweeping criticism of the limited measures taken by the Bank, he said it should buy up mortgages and the debts of non-banking lenders to free the financial system from overwhelming debt burdens. Too often, the MPC had focused on persuading high street banks to lend more rather than considering setting up new banks with a mandate to lend, he warned. "We should be buying things other than just gilts, such as bundles of private-sector debt and special bonds to finance infrastructure," Posen said. "The funding for lending scheme set up by the Bank is a step in the right direction but I think the central bank should do more to go around the existing banking system." ■ Source: The Guardian

Jorgovanka Tabaković New Governor of the National Bank of Serbia

Suzana Grubješić New Deputy Prime Minister for European Integration

Born 1964 in Novi Pazar, where he completed his basic schooling, Ljajić went on to graduate from the Medical Faculty of the University of Sarajevo. Between 1989 and 2000 he was engaged as a journalist for numerous dailies and periodicals from the former Yugoslavia. In 1990 he was appointed Secretary General of the SDA Sandžak party and from 1994 he has served as president of the Sandžak Coalition, which was renamed the Sandžak Democratic Party in 2000. During that same year he was appointed Minister for the Federal Government and in 2001 he renewed his term of office as a minister in the federal government. In March 2003 he was appointed Minister for Human and Minority Rights and in 2007 he became Labour and Social Policy Minister - a function he was re-elected to hold in 2008. Ljajić was the long-term Head of the Coordination Team for Cooperation with the ICTY in The Hague.

On 6th August the Serbian Parliament elected Jorgovanka Tabaković as new Governor of the country’s central bank, the National Bank of Serbia. Born in Vučitrn, Kosovo, Tabaković lived in Priština until 1999, when she relocated to Novi Sad. A graduate doctor of economics science, in 1998 she became minister of economics and ownership transformation in the Serbian government. Until being elected governor, she was a Serbian MP and worked at "Telekom Serbia" a. d. as a director for the region of Vojvodina. Ms. Tabaković was vice president of the Serbian Progressive Party. She is a widow and mother of three children

Born in Sombor, she graduated from the Belgrade Faculty of Political Sciences in 1986. Employed at "Yugotours" in the early 1990s, until 1996 she was general manager of "offshore Knipps Co", based in Cyprus. Between 1996 and 1997 she was project manager of the European Movement in Serbia. One of the founders of G17+, from 2003 to 2008 Grubješić was executive director of the party, then in late 2008 she was appointed as a party vice president. She served as an MP in the Assembly of Serbia from 2003 and became Head of the Deputy Group in 2007, serving as a member of the Administrative Committee, the Committee for European Integration. She is the head of the Serbian delegation to the Parliamentary Assembly of the OSCE. Grubješić speaks English, German, Greek and French.

cordeditorial@cma.rs

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feature Opinion

Progress

Election

"The economic, social and cultural progress of a nation depends on citizens counting for more and having more rights." - Jose Luis Rodriguez Zapatero, Spanish prime minister

“New elections possible if we fail to agree with partners.” - Aleksandar Vučić, Serbian Progressive Party (SNS) acting leader

How To Win At Olympic Sponsorship

verall, I’m a believer that just sponsoring an event – while nice – doesn’t add much to a brand. A logo here or there may add some credibility, but it doesn’t further people’s involvement with you. Activating that affiliation is what’s important. When a brand is able to create an active connection between its brand promise and the purpose of the event, magic happens. Here’s what I mean.

A proactive stance towards potential investors characterises the new leadership and, as such, they have recognised activities aimed at attracting domestic and foreign investment as a priority

Coca-Cola. The Olympics has always been about educating and inspiring youth through sport –and bringing out the best of us individually and collectively. Coke has always been about championing a happier, more positive world – individually and collectively. Through the Olympics, Coke found a way to bring its brand’s energetic DNA and spirit of individualism to the forefront. This year, they outdid themselves. Their torch relay allowed difference-makers in their communities to earn the privilege of carrying the torch. And Move to the Beat combined the sounds of great athletes performing what they’re best at with the rising talents of young, aspiring musical and design talents to create a remarkable experience. While you can play online, create your own beat and see what Mark Ronson created in a final song – the on-the-ground experience in London was even more phenomenal. Through innovative touch panel technology you could actually participate with the experience, hear the sounds coming together and feel as though you could do something with it. All while meeting Coke’s “future flames” (the young artists responsible). The entire program was completely Coke…but completely Olympic at the same time. Procter & Gamble. Probably the de facto gold standard for Olympic marketing, yes – but their Olympic sponsorship goes well beyond emotionally stellar advertising. While they are in the business of helping moms, this belief goes far beyond a tagline – it directs their behavior. P&G actually used its sponsorship to help athletes’ moms attend and 50 |

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T enjoy the Games.Its Olympic Family house in London allowed Team USA family to come together, eat together, watch together and celebrate together. And it partnered with Visa to give every mom a $1000 Visa reward card to help offset the expense of the trip. More interesting to me, while moms are critical to P&G’s business success – the activation of its Olympic sponsorship was used to say “thank you” – not “buy more.” It’s not often that you see a brand use such a high-profile program to recognize its customers’ efforts. And yet, I bet business still comes.

Team GB. Okay, okay. So it’s not a traditional “sponsor.” And this may not have been a brand before, but I’d argue it is now. Great Britain activated their “sponsorship” of the Olympics in a huge way. They didn’t just host the Games – they rallied a country. And they rallied other countries around their country. This year was the year for Team GB to show the world what they were made of. And they did – not just in athletic prowess, but in pride. Walking the streets of London you saw Team GB pride in every store window. You saw profiles of their up and coming athletes and their stories that had everyone cheering for them – from Jessica Evans to Tom Daley. But more than that, you saw swarms of people sporting Team GB gear despite the fact they were from Canada, China, Japan, Africa and beyond. Everyone wanted to be part of Team GB – and this country gave everyone the ability to feel part of the crowd. All too often brands are asked to invest in sponsoring a sport, event or a team. But before you decide whether or not to associate yourself with that organization, ask yourself – how can I activate my brand within the sponsorship? Can this further my brand’s promise? How can I do something with this partnership that gives people a different way to engage with my brand? You need to gain more than just visibility. You need to create connection. Will it take increased investment of both time and money? Yes. But people will thank you for it. By Britt Peterson, Director of growth strategy at Cole & Weber United ■

appointments@cma.rs

Lazar Greber, President of the Municipality of Kula

Attracting investment a priority

There’s been a lot of discussion around what brands succeeded during the Olympics. Who made the most of their affiliation? What sponsors “won?” But moreover, it’s started a discussion around whether or not sponsorship is really worth it

Placements & Postings

he favourable position of the Municipality of Kula, just 132 kilometres from Belgrade and 66 kilometres from the Hungarian border, coupled with its more than 40,000 hectares of arable land and several industrial zones, ensure this municipality is attractive to foreign investors operating in numerous fields. The Municipality of Kula has recognised the significance of strategic planning and compiled numerous policy documents that represent a prerequisite for the development of the municipality. The development of our municipality is based on a Sustainable Development Strategy, primarily related to economic development and resolving issues of public utilities and the environment. A proactive stance towards potential investors characterises the new leadership and, as such, they

Born 21st October 1963 in Beška, Golubović completed his primary and secondary schooling in Novi Sad, before going on to graduate from the city’s Faculty of Economics, Department of Planning and Development. His working career began at AD “Koprodukt” Novi Sad, where he served as general manager between 2000 and 2004. From 2004 to 2008 he served as state secretary within the Ministry of Agriculture, Forestry and Water Management and headed the Serbian government’s team for negotiations with the EU regarding the Stabilisation and Association Agreement in the field of agriculture.From 2008 he worked for Novi Sad’s Institute of Field and Vegetable crops as assistant director and head of marketing. Golubović speaks English and German and is a married father of one child.

Danilo Golubović, State Secretary

Born 1973, Darko Marojević is an Economics graduate of the University of Belgrade who later served as a high school professor at Belgrade’s First Economics High School. His professional career began at Siemens and continued at Grand Casino Belgrade. Prior to joining Denver Garden Ltd., Mr Marojević was chief financial officer at Farm Logist. Marojević has seven years of financial opDARKO MAROJEVIC, erations management experience and speaks New Managing Director, English,German, Italian and Russian

Gardner Denver Inc.

Vuletić (33) started his professional career in 2003 at the former Eksimbanka, also in the retail division. After one year he moved to the position of Relationship Manager within the Corporate Banking Division (CIB), only for him to assume the role of Financial Analyst within CIB following the merger between HVB Bank and Eksimbanka. Between 2005 and 2007 Nikola covered various positions within Large Corporate Department when, from his position as team leader, he was promoted to Head of the Mid Market Department, only to be appointed Head of Retail Division Sales in March 2009. Nikola is a graduate of the Faculty of Economics, Department of International Management.

Thanks to its natural characteristics of soil, climate and water resources, the Municipality of Kula has great potential in the agricultural sector, which is not yet fully exploited

have recognised activities aimed at attracting domestic and foreign investment as a priority. In addition to greenfield investments that are expected in the industrial area, the municipality also has a so-called "brownfield" programme. I intend to improve cooperation with the most successful entrepreneurs and farmers by forming a Council for the Economic Development of the Municipality. This council will consist of a team of people from industry and agriculture, renowned operators, while the only "entrance ticket" will be success in work and operations carried out to date. Our municipality is on its way to soon receiving a certificate from the National Association for Local Economic Development (NALED) confirming that it is a municipality with a favourable business environment, which will provide a positive signal for potential investors. Likewise, I would also highlight that the Municipality of Kula – thanks to its natural characteristics of soil, climate and water resources – has great potential in the agricultural sector, which is not yet fully exploited. Due to its connectivity and influence over other sectors, agriculture could be extremely significant for development. The Municipality of Kula has development plans and the necessary documentation, though it requires the provision of funds for their implementation. ■

Nikola Vuletić, New director of the Retail Banking Division at UniCredit Bank Serbia

Bojan Vračević, Appointed a member of the executive board of S-Leasing as of 1st August

Prior to taking up his new position at S-leasing, Bojan spent ten years of his career in the banking sector, including a four-year engagement in various duties at Erste Bank, where he was deputy head of the corporate sector, followed by experience in budgeting, planning and sales steering, product development and cooperation with International financial institutions like EIB, EBRD and IFC. Bojan Vracevic is a graduate of the Belgrade Faculty of Political Science, with a major in international relations, and the Belgrade Faculty of International Management, with a major in business administration. He spent one semester at Regents College London, where he passed courses in Business English and Marketing. A father of two, 7-year-old daughter Lena and 2-year-old son Nikola, he speaks English fluently and has basic knowledge of German and Italian. He usually spends his free time with family, reading - preferably historical books or biographies.

cordeditorial@cma.rs

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faces & places 26.06.2012 Maltese knights award Prokić

Serbian author and dramatist Nenad Prokić (pictured centre) is awarded the knightly pro Merito Melitensi Order of Merit of the Sovereign Military Order of Malta. Also pictured (left to right) are S.E. Mons. Orlando Antonini, Ferdinando Bozzo, First Counsellor of the Embassy of the Sovereign Military Order of Malta, H.E. Ambassador Alberto di Luca and Archbishop of Belgrade, Mons. Stanislav Hočevar

03.07.2012 President honours Japan Japanese Ambassador to Serbia, H.E. Toshio Tsunozaki, and Mrs Tsunozaki welcome Serbian President Tomislav Nikolić to a 3rd July reception marking Japan’s Self-Defence Force Day at Belgrade’s Japanese ambassadorial residence

28.06.2012 Belarus National day

05.07.2012 Independence Day marked

Staff of the Embassy of the Republic of Belarus, led by H.E. Ambassador Vladimir Chushev, (pictured sixth from left), gather at Belgrade’s Hotel Hyatt Regency to mark the National Day of Belarus with a festive reception on 28th June

Algerian Ambassador to Serbia, H.E. Abdelkader Mesdoua, and Serbian President Tomislav Nikolić cut the cake at a reception marking the 50th anniversary of the independence of Algeria at Belgrade’s Hyatt Regency Hotel on 6th July. Ambassador Mesdoua provides guests with a tour of the special exhibition displayed to mark the 50th anniversary of his country’s independence.

29.06.2012 A fond farewell for Maas Outgoing Ambassador of the Federal Republic of Germany to Serbia, H.E. Wolfram Maas, welcomes Ružica Đinđić to a 29th June reception at Belgrade’s German ambassadorial residence, organised to celebrate the summer and bid a fond farewell to Ambassador Wolfram and Dr Angelika Maas Left-to-right: H.E. Alexander Konuzin, Russian Ambassador to Serbia, H.E. Greek Ambassador Dimosthenes Stoidis and Ambassador of Israel in Belgrade, H.E. Yossef Levy

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U.S. Ambassador to Serbia, H.E. Mary Warlick, welcomes head of the EU Delegation to Serbia, Vincent Degert, to a 5th July reception at Belgrade’s U.S. ambassadorial residence marking America’s traditional 4th July Independence Day holiday. U.S. Embassy staff, guests and marines stand to attention in respect of the national anthem of the U.S.

06.07.2012 Algeria turns 50

01.07.2012 Canada Day in Tivat

11.07.2012 Seminar proves successful

U.S. Ambassador to Montenegro, H.E. Sue Kathrine Brown, joins Canadian Ambassador, H.E. Roman Washcuk, his spouse, Oksana Smerechuk, and Canadian Defence Attaché, Colonel Paul Duff, for a celebration of Canada Day on 1st July. Tivat’s Porto Montenegro, the largest Canadian investment in the region, was chosen as the venue for the celebration.

Dragana Nikolić Solomon, head of the OSCE Media Department and Zoran Papić, executive director of the Media Association of Serbia, pictured on 11th July at a Media Association reception to mark the successful completion of a seminar jointly organised by the Media Association, IREX and OSCE with the aim of advancing the reporting of economic topics. Darko Bajčetić General Manager of Centroproizvod (left) and Dragoljub Žarković Editor-in-Chief of Vreme weekly.

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96 September | 53

faces & places 11.07.2012

Day Greek fashion

Lady Ambassadors (left-to-right) H.E. Mercedes F. Ruiz Zapata (Mexico), H.E. Mette Kjuel Nielsen (Denmark), H.E. Mary Warlick (U.S.) and H.E. Helena Studdert (Australia), pictured on 8th August during a visit to the famous annual Guča Trumpet Festival.

08.08.2012 Lady ambassadors at Guča

Dignitaries and celebrities gathered for a fashion show entitled Day of Greek Fashion in front of New Belgrade’s Biber Restaurant on 11th July. The event, part of Belgrade Fashion Nights 2012, was jointly organised by the Embassy of the Hellenic Republic and the Fabrika fashion agency. Ambassador of Greece H.E. Dimosthenis Stoidis, Princess Katherine Karadjordjević, Owner of Fashion Agency Fabrika Vesna Mandić and fashion designer Viktorija Kirakides.

13.07.2012 French National day Serbia’s domestic political and cultural elite joined members of the diplomatic corps and international business community at Belgrade’s French Embassy on 13th July for a reception hosted by French Ambassador H.E. François-Xavier Deniau to mark Bastille Day, France’s national holiday

17.07.2012

Iranian Special Envoy visits

23.08.2012 The Danube in Austria H.E. Clemens Koja, Austrian Ambassador to Serbia, and Ivana Lučić Todosić, director of the Belgrade Fortress, welcome guests to the 23rd August unveiling of a Sava Promenade exhibition entitled “The Danube in Austria”, which was followed by a formal cocktail reception.

H.E. Ali Asghar Khaji, Special Envoy of Iranian President Mahmoud Ahmadinejad, (right) and Ambassador of the Islamic Republic of Iran to Serbia, H.E. Abolghasem Delfi, pictured during a formal lunch at the Iranian ambassadorial residence on 17th July in honour of Mr Khaji’s visit to Serbia

President Tomislav Nikolić is welcomed to a reception marking Egyptian Revolution Day on 17th July by H.E. Ambassador Aly Galal Bassiouny and his wife, Sheren Elshahawy. The reception was attended by many domestic officials, members of the diplomatic corps, local celebrities and business leaders H.E. Ambassador Aly Galal Bassiouny welcomes U.S. Ambassador to Serbia, H.E. Mary Warlick

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17.08.2012 Day of the Republic of Indonesia Indonesian Ambasador to Serbia, H.E. Semuel Samson, pictured on 17th August during a flag rasing ceremony to commemorate the 67th Anniversary of the Independence Day of the Republic of Indonesia. The event, attended amongst others by Indonesian Embassy staff, the Indonesian Community in Serbia, the NUSANTARA Friendship Association of Serbia and Indonesia, as well as the ASEAN-Serbia Association, marks the day in 1945 when the first President and Vice President of Indonesia, Soekarno and M. Hatta, proclaimed the country’s independence.

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17.07.2012 Revolution remembered

H.E. Israeli Ambassador Yossef Levy hosted a “Tel Aviv Beach Party” at Ada Ciganlija’s Red Shoes Café on 25th August. The party, attended by guests including U.S. Ambassador Mary Warlick, featured famous Israeli DJ Nisan Larido.

25.08.2012 Tel Aviv Beach Party

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96 September | 55

culture news

culture calendar CONCERTS Foam Fest Belgrade Arena, 1 September @ 20.00 Foam Fest is one of the most spectacular musical and theatrical events in Belgrade. Founded in 2009, it has since been visited by more than 60,000 people. Innovative, modern theatre, audio and video equipment, lasers, acrobatics, live performances and a unique spectacle with lots of foam and foam-

pad guns are only part of this 12-hour festival. The world’s most famous contemporary DJ names, such as Antoine Clamaran, Tom Novy, Cristian Varela, Benny Benassy, David Morales, Axwell, Sebastian Ingrosso, Sandy Rivera, Stereo Palma and Tsuyoshi Suzuki have performed at Belgrade’s Foam Fest. However, the most memorable part of the Foam Fest for any visitor is the energy and organisers claim that the Belgrade Foam Fest is the biggest foam party in the world to unite people through music

and good times. On 1st September Belgrade will have the honour of presenting its 4th Foam Fest. It is already known that the Foam Fest is organized once a year, in late summer, in the capital city and each year with new theatrical, video and audio effects. Every year is something new, but the energy of the audience is something that doesn’t change. Warrior Dance Festival Kalemegdan Fortress, 15 September @ 21.00 Famous British group the Prodigy and exclusive AAA Production are proud to present the Warrior’s Dance Festival (WDF), which is scheduled for Saturday September 15th 2012 at Belgrade’s Kalemegdan Fortress. The first edition of the Warrior Dance festival in Belgrade will see the Prodigy joined by other special guests performers, such as Skrillex, and special guests from Serbia and the region, including: Eyesburn, Ritam Nereda and Goblini, Lollobrigida,

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CLASSICAL MUSIC Rocher Quartet Sava Center, 7 September @ 20.00 The Rocher Quartet was founded in 2011 in Belgrade with the idea of expanding the Rocher Duo. The quartet’s repertoire consists of many works, from classics to popular miniatures and evergreen jazz standards. In addition to several

concerts held in the country, the quartet has had impressive performances at the Dubai Shopping Festival in 2012 and in Croatia (Cela), at the 39th May Music Slavenski memorial. The quartet is currently working on material for a first CD. 75 years of RTS Symphonic Orchestra Sava Centre, 13 September @ 20.00 Radio Television of Serbia will mark the 75th anniversary of the founding of its own Symphony Orchestra at the Sava Centre on 13th September. Under the leadership of Artistic Director and Chief Conductor of Music Production at RTS, Bojan Sudjić, the RTS Symphony Orchestra will perform the Symphony VII, known as Leningrad, by Dmitri Shostakovich. A magnificent work of one of the greatest Russian composers of the 20th century, it will be performed for the first time in its full scope before a home crowd on the occasion of the Great RTS Jubilee.

Il Divo, Belgrade Arena, 22 September @ 20.00 The world's foremost classical crossover quartet, IL DIVO, will perform at the Belgrade Arena as a part of their world tour on 22nd September. Il Divo is the perfect modern fusion of opera, theatre and concert performance. They have sold more than 26 million, 150 gold and platinum records and over two million concert tickets. The European leg of the tour, promoted by IL DIVO NuCoast Production, begins in September and includes concerts in Austria, Serbia, the Czech Republic, Hungary, Slovakia and Croatia. The long career of the Il Divo phenomenon was recently crowned by the Classic Brits Award for "Artist of the Decade" at the Royal Albert Hall. This confirmed the success enjoyed by the four singers from the moment they appeared on the world scene with their multi-platinum debut album in 2004. Continuing on with the bestselling albums 'Ancora', 'Siempre' and 'The Promise', Il Divo remained true to their artistic mission in the wider world, with their passion for music and belief in the unifying force. This record-breaking classic quartet – Swiss tenor Urs Buhler,

Petrol, DreddUp and Hype. The festival promises to provide a wide range of entertainment and concerts on the main and two more stages: the Take Me to the Hospital stage and the Invaders Must Die stage.

Spanish baritone Carlos Marin, French pop singer Sebastien Izambard and American tenor David Miller – performed together for the first time in 2003 after an exhaustive search by music producer Simon Cowell to find four singers of different individual talent who, as a group, could create musical magic. In their amazing six-year career, Il Divo have continually evolved, gathering millions of fans around the world. Wicked Game is their fifth studio album. Besides the title track, a cover version of the Chris Isaac's dramatic song, it includes Roy Orbinson’s emotional and beautiful song Crying, an adaptation of the composition Adagio for Strings by Samuel Barber, called 'Dove L'Amore', and an unforgettable version of the song Time to Say Goodbye.

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The RTS Symphony Orchestra has continually performed the capital works of world music, as well as works by Serbian composers, for many decades. From the very beginning, back in the 1937 under the leadership of the Music Department of Radio Belgrade’s Michael Vukdragović, when it held its first concert at Kolarac, the RTS Symphony Orchestra has enjoyed numerous successes on the local scene, has collaborated with the world’s conductors and soloists, and has carried out many successful concert tours around the world. For the anniversary concert the orchestra will comprise more than 100 members, led by Maestro Bojan Sudjić. Igudesman & Joo, Kolarac, 13 September @ 20.00 Alexei Igudesman and Hjung-ki Joo are classical

musicians who have conquered the world with their unique and hilarious performances that combine comedy with classical music and popular culture. Their performances have so far been viewed more than 28 million times on YouTube and they have performed live on television in many countries around the world. They are equally ready to perform in concert halls and stadiums, in front of 18,000 people, and their common dream is to make classical music accessible to a wider and younger audience. Some of the biggest current stars of classical music, such as Emanuel Aks, Joshua Bell, Janine Jansen, Gidon Kremer, Mischa Majisky, Victoria Mulova and Julian Rachlin, have joined them in their madcap musical skits. Alexei and Hjung-ki collaborated on several occasions with UNICEF and also worked with actors John Malkovich and former James Bond, Roger Moore. Besides the touring, they conduct workshops called “8 to 88 - music education for children of all ages”, in which students gain confidence and inspiration for their own musical experimentation. Micuko Ucida Kolarac, 15 September @ 20.00 Micuko Ucida on piano. Programme – Chopin, Schuman and Mozart Belgrade Philharmonic Orchestra Kolarac, 20 September @ 20.00 Aleksandar Rahbari, conductor Sanja Anastasia, soloist mezzosporan Programme: Bernstein and Maler OPERA Eugene Onegin, National Theatre, 29 September @ 19.00 In the National Theatre’s repertoire, Onegin’s opera has always been an important counterweight to the epic Russian operas of Boris Godunov and Hovanščini and the tragic Queen of Spades. Tchaikovsky’s lyrically inspired melody and author’s orchestral mastery were all compatible with the artistic preferences of the ensemble

THEATRE 46th Belgrade International Theatre Festival, 12-21 September The concept of the 46th BITEF, dubbed ‘An Excursion into the Truth’, will focus on striking the balance between international and regional theatre productions. In terms of the number of plays, this year’s festival will be more modest than previous editions. Bitef will begin with the ‘Four Seasons Restaurant’, a play by Italian director Romeo Castellucci, followed by ‘Blood Wedding’, a play by Serbian director Miloš Lolić and based on the tragedy by Spanish dramatist Federico Garcia Lorca, under the production of Volkstheatre München, with which the director begin his rise to

international fame. Bitef selector Anja Suša said that she takes great pride in the fact that Belgraders would have an opportunity to see one of the plays under the joint title ‘Life and Times’, performed by renowned American company the Nature Theater of Oklahoma. For the first time the festival programme will include French artist Joel Pommerat with ‘The Merchants’, then Dutch-Belgian director Ivo van Hove who will come to Belgrade for the first time, with his great production ‘Children of the Sun’. The regional selection encompasses two Croatian, and three Slovenian plays. BALLET WHO IS THERE SINGING, National Theatre, 20 September @ 19.30 Like the famous movie by Slobodan Šijan, this ballet will also make you laugh, though this time through the language of dance. Choreographer Staša Zurovac, director of the Ballet of the Croatian National Theatre “Ivan pl. Zajc”, blends all his splendid creativity with humour. And really, how to use ballet to deliver the language of absurdity and black humour in the message of claustrophobia that lasts for centuries

Science Day 10 July Serbia celebrated Science Day on 10th July, as well as the 156th anniversary of the birth of great Serbian and world scientist Nikola Tesla (1856-1943), one of the greatest minds ART Gustav Klimt, 13 October - 13 November To mark the 150th anniversary of the birth of Gustav Klimt the Gustav Contact bureau of the City of Vienna, COMPRESS, with the support of Austrian company FREYWILLE, is organising an exhibition of 15 high-quality reproductions of Klimt’s paintings at Belgrade’s Progres Gallery. Alongside one of his most famous paintings, The Kiss, visitors will have the

chance to see reproductions of the paintings Hygeia (1907) and Friends II (1916/17), the original of which was destroyed by fire in 1945. FREYWILLE joined the organisation of the exhibition as a company that uses art and the works of from world artist to draw inspiration for its designs of artistic jewellery. 53th October salon Geodesic institute 22 September - 5 November The October Salon is the oldest, most respected and most complex happening in the area of visual arts in Serbia. It has grown to become an international event thanks to its dynamic transformation through the years. This year’s October Salon will take place in the building of the Geodesic Institute, one of the most beautiful, but also most neglected, monumental edifices in Belgrade. This inspiring location will be used as a space for the ad hoc transformation, where exhibited works will be “implanted” in its present condition and in its existing historical narrative and architectural design. This year’s slogan is GOOD LIFE. This project is the result of collaboration between around forty participants from Finland, Norway, Sweden, Slovakia,Turkey, Bulgaria, Croatia, Estonia, Netherlands, the UK and Serbia,

in this region, in a film named the Best of domestic cinematography of the 20th century? The ballet Who is There Singing is refined and enriched, but primarily it is the music from the film that ‘holds’ sentiments, makes us laugh, saddens us. This ballet is necessary and beautifully refreshing, but perhaps at the most it is an ode to composer Voki Kostić. SWAN LAKE National Theatre, 28 September @ 19.30 As is tradition after the summer break, the ballet Swan Lake is returning to the National Theatre’s repertoire.

Th 2012 October Salon has been made possible thanks to collaboration between two curators: Mika Hannula and Branislav Dimitrijević, both known for their previous joint projects.

of the 20th century. The occasion saw Belgrade’s O3one Gallery host an exhibition entitled “Tesla’s vision of the Internet,” inspired by Tesla’s 1900 “World System” project and organised by the National Register of Internet Domain Names of Serbia and the Nikola Tesla Museum in Belgrade. Explaining his “World System” in the technical vocabulary as used back then, Tesla described in 12 points what is now called the wireless internet, mobile telephony and GPS. The Nikola Tesla Museum, which is celebrating its own 60th anniversary this year, has opened three relevant exhibitions. On the occasion of 10th July, officially declared National Science Day in Serbia last year, Belgrade’s Centre for the Promotion of Science organised free visits to the 125-year-old Astronomical Observatory in the Belgrade municipality of Zvezdara and a panel discussion about the famous Higgs boson particle. Exhibition ‘Belgrade Time Gate’ 21 July-17 August News agency Tanjug and the Belgrade City Assembly organised a photo exhibition entitled ‘Belgrade Time Gate’ (Vremenska kapija Beograda), which was staged at six locations across downtown Belgrade between 21st July and 17th August. The theme of the exhibition, comprising a collec-

tion of photographs taken from Tanjug’s archives, is Belgrade’s urban development. The black and white images were displayed on panels depicting a number of important buildings and parts of the city as they looked a few decades earlier, including Republic Square, Knjez Mihailova Street, Terazije Square, Nikola Pašić Square, the corner of Kralja Milana and Kneza Miloša Streets and Kalemegdan Park. Interestingly, the photographs were displayed at the very places where they were originally taken in the period between the two World Wars and during and after World War II, excluding the images showing Kalemegdan Park.

The central part of the exhibition, consisting of 36 large images, was set up in front of the Cvijeta Zuzorić Art Pavillion at Kalemegdan Park. Exhibition ‘Olympism in Serbia 1912-2012’ Yugoslav History Museum, 16-26 August An exhibition entitled “Moments to remember: Olympism in Serbia 1912-2012” was organised to mark the 30th Summer Olympic Games in London, while commemorating a century since Serbia first took part in the Olympic Games. The most important exhibits from the collection of the Foundation of Sports and Olympism and the Olympic committee of Serbia were on display, while around 20 medal-winning Olympians

provided their medals, jerseys, souvenirs, accreditations and tickets. Visitors also had an opportunity to see Olympic torches from the Summer Olympics staged from 1936 to 2012. This one-of-a-kind collection is owned by Athanasios Kritsinelis. Days of Brazil Novi Sad, 17-19 September The third festival celebrating and promoting Brazilian culture was held from August 17th to 19th this year, offering one of the most attractive programmes currently existing in the region. Days of Brazil - Samba Carnival in Novi Sad was presented through a variety of interactive content from samba percussion and samba dance workshops, to the acrobatic martial art of Capoeira, interesting films, exhibitions and music events, topped off with an international carnival parade. Interetno Festival Subotica, 22-26 September Interetno is a multidisciplinary festival that brings together a large number of performers each year, mainly in the field of traditional dance and music. The festival includes the organising of a craft fair, traditional workshops, children’s playgrounds and an exhibition, as well as an entertainment programme that will last long into the night. The slogan of the festival, “The world is coming to Subotica”, is supported by the fact that this year the festival will include the performances of dance troupes from Colombia, Canada, Korea and Italy, as well as music bands from Serbia and Hungary.

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interview

■ By Sonja Ćirić

Anja Suša, Bitef selector and theatre director

Excursion

to THE TRUTH

“Bitef in recent years is a fairly mainstream festival and that which is shown there should not cause any particular misunderstanding because it is mostly contemporary institutional theatre that is the standard of most countries” says Anja Suša

or the 46th Bitef festival, selectors Anja Suša and Jovan Ćirilov, who is also artistic director of the festival, have announced 13 plays. Bitef will open on 12th September with the Italian play Il velo nero del Pastor / The Four Seasons restaurant, directed by Romeo Castellucci, and come to a close on 22nd September with the Dutch production Children of the Sun, directed by Ivo van Hove. Another four plays from Europe and America to be included in the festival are “Blood Wedding”, directed by Belgrader Miloš Lolić at the Munich Volkstheatre, then French artist Joël Pommerat’s Great and amazing history of trade,” Shobana Jeyasingh’s Too Deadly and Life and times, episode 1 from Oklahoma. The countries of the region will be represented by Nosferatu, directed by Saša Božić, and Oliver Frljić’s I hate the truth - both performed by Zagreb’s Theatre ITD, as well as the play Feast, directed by Slovene Primož Ekart. Four plays from Serbia will participate: Shakespeare’s Henry VI, directed by Nikita Milivojević, Exercise from the chore-

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ography of attention - point of no return, by Dalija Aćin and Siniša Ilić, They live, by Maja Pelević and Milan Marković, and Dogs and others, by Andraš Urban. The success of Bitef, like most festivals, depends on the skill of the selectors to catch the mood of the public and the taste of the audience. Alongside this element, at least two other elements should also be taken into account: the budget and the quality

■ Just from the titles of the 13 plays you have chosen for this year’s Bitef it is easy to see that you have decided on a varied programme, a programme that has performances and the plays of Dalija Aćin and Shakespeare. -As always, Bitef’s mission this year is to offer a variety of theatre tales and poetry. Bitef has always been a kind of overview of what’s

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est suffering is endured by events and cultural happenings that are the most expensive, such as Bitef. If this trend of a permanently reduced budget for Bitef continues, I am very concerned about the future of this festival.

there is a tradition of American high school musicals, and all of that together provides a special term by which this troupe has operated at the top of world theatrical productions during the last few years, primarily the festival scene.

with exceptional help this year in terms of organising various programmes for French and foreign artists and programmers in the context of the festival. In this way it was the biggest contributor to the notion of connecting people within a single profession, which is and should be one of the missions of every serious contemporary theatre festival, whilst also facilitating the gaining of visibility for local artistic practices and author.

■ Bitef is provided with great assistance in implementation from foreign culture centres. This year special mention is especially being made with regard to the nice gestures of support from Philippe Le Moana, director of the French Institute in Serbia. What are your experiences of working with foreign culture centres? - The French Institute provided Bitef

■ The slogan of this year’s Bitef is “Excursion to the truth”. What sort of fun are you offering the public with this excursion? -The slogan was inspired by one of the plays in the selection, Oliver Frljić’s “I hate the truth”, which examines the rela-

tionship between reality and fiction and poses the question of whether universal truths exist, on this occasion based on the example of the author’s family. We thought it would be interesting to address this notion at the level of the festival slogan, which was set wide enough to leave room for different perceptions and interpretations. I must say that, as in previous years, this slogan does not define the entire selection, because Bitef is not a themed festival. Its slogans are more poetic than programmatic.

■ A few years ago the Bitef programme was limited by an insufficient cash fund. How can a programme be developed in such a situation? -With the help of a stick and rope, and much ingenuity, alongside complete uncertainty that lasts until the final moment ... It is natural that the great-

Frljić, a director who the local public have divided opinions about. Are you prepared for that eventuality that part of the public will negatively evaluate the entire selection because of him? -Since its inception Bitef has been judged extremely negatively by one section of the domestic cultural community. And the matrix is always the same. Before each new instalment of the festival, everybody is full of praise and respect for the tradition of Bitef (although I’m not sure most people understand what the essence of that tradition is) and then the festival starts and you can read, listen to or watch the most amazing comments that simply demonstrate how

I am someone who is very much opposed to the “festivalising” of culture that is a result of the dominance of cultural industries over art, which is an imperative of the time in which we live

current on the international and domestic scene, which is also the case this year.

The success of Bitef, like most festivals, depends on the skill of the selectors to catch the mood of the public and the taste of the audience of the play. These were the main topics of our conversation with Anja Suša, who has been a BITEF selector since 2006.

■ After a long time, a play from the U.S. will be included in Bitef. It probably wasn’t simply a “roll of the dice” that led to the Nature Theater of Oklahoma coming to Belgrade? - Yes, it is always more difficult than when it comes to plays from Europe, which is geographically closer to us. However, I am glad that we managed to host perhaps the most famous American theatre company that is very present at all relevant international theatre festivals. They are coming to us for the first time, as are as some other top theatre artists like Belgian Ivo van Hove or Frenchman Joël Pommerat. This troupe is known for addressing documentary content in a very humorous and original way. In this instance they interviewed one of their associates and on the basis of those telephone conversations with her they put together a play that is a combination of different genres. To a great extent this builds on the tradition of Soviet lands,

■ The region will be represented by two Croatian plays and a Slovenian play. Among them is the play of Oliver

inadequate the platform for evaluating contemporary theatre practices in Serbia is. It regularly occurs that top plays that are valued highly in international theatre circles are declared worthless by domestic critics and that’s simply laughable. On the one hand you have all that respect for Bitef, but on the other there’s a striking lack of understanding and intolerance for anything that stands out from the local theatre standards that are extremely problematic and set the tone by which everything else is measured. And, just to increase the irony, in recent years Bitef has been quite a main stream festival and its performances should not cause any particular misunderstandings because they are mostly examples of contemporary theatre representing the institutional standard in most countries. However, I suppose the controversy that has dogged Bitef since its inception is actually part of its charm. As for Oliver Frljić, here we are talking about a play that already has its own reputation and was part of this year’s Sterija Theatre Festival, as well as many other festivals in the region. As such, I don’t think we should have to explain why it was selected too much. There will prob

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96 September | 59

ably be negative comments, but I cannot burden myself with that. Oliver Frljić is one of the most important contemporary theatre artists from the area of the former Yugoslavia and I do not understand anyone who does not understand that.

■ At the end of the theatre season both theatres and theatre festivals become a target of criticism. Amongst other things, they argue that there are simply too many of them and they cost a lot. What do you think about that? -I am someone who is very much opposed to the “festivalising” of culture that is a result of the dominance of cultural industries over art, which is an imperative of the time in which we live. On the other hand, one should be very careful when making a distinction between new, entertainment and short-term orientated festivals that, primarily, have commercial interests and those, like Bitef, which continuously contribute to the raising of the local culture, while simultaneously successfully presenting our country beyond our borders. ■ You maintain contact with foreign theatres even beyond your involvement in Bitef, as one of the few local directors to direct on the international scene. This spring you were a guest in Gothenburg, Sweden. The play you directed was declared by the media there as the most significant theatrical event of the season. Given that there is a lack of awareness of that here, could you present that project of yours to us? - This was the play “5 boys.com”, written by contemporary Slovene authoress Simone Semenič, which I directed in Sweden’s famous Backa Theatre in Gothenburg. The show premiered in March this year and enjoyed great success among Swedish audiences and critics. I felt an immense sense of satisfaction working in a theatre and a country that strongly maintains culture for young audiences and where I felt at home. I’m glad that while I was there as a director I met with complete understanding, which seldom happens. I hope that my cooperation

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with Swedish theatres will continue...

■ The final premiere of the Belgrade theatre season was “Maja and me and Maja”, which you directed at Bitef Theatre. In addition to being a pageant of the famous “Maja” – a popular picture book among girls

Bitef continuously contributes to the raising of the local culture, while simultaneously successfully presenting our country beyond our borders from different European countries – this play is also part of an international study on childhood. - Yes, this is a play that emerged in the impossible conditions that Belgrade theatres have been working under in the last two years and that’s why I’m so delighted that it went down well and that people like it. For me this project is very important because through the iconography of the Maja picture book one is, in fact, engaged in very personal content of all of its actors

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and its audience indirectly. Moreover, this play deconstructing the myth of Maja is in fact deconstructing the society in which we live, with all its deformities and deviations, simultaneously contrasting idyllic childhood and the hell of the everyday life in which we live. Maja and me and Maja is part of the project Remembering Maja, which – in addition to plays – related to a regional survey of childhood in the socialist Yugoslavia through workshops for students of history and anthropology from Zagreb and Belgrade. The project is under the patronage of the European Cultural Foundation. Maja is associated with a pleasant past and evokes optimistic memories. However, additionally, from the perspective of a contemporary adult it is possible to read many meanings in that picture. Maja had a great influence on children growing up in the socialist Yugoslavia. At the ideological level, she represented all of the values of Tito’s socialism, but also brought with here the values of Western Europe, where she was born. However, the play does not dealt with that, as it was the task of the scientific part of the project. I addressed the Maja phenomenon intimately, from a selfish perspectve: I was interested in the resonance of Maja in me. Looking at it today, the Maja phenomenon is an anti-fairytale for adults. ■ Jovan Ćirilov told reporters that he hoped that the next Bitef programme would be less pro-European than this year’s. How realistic is it to expect that will happen? -I suspect Jovan was referring to the domination of plays from Western Europe, which is inevitable in all contemporary theatre festivals because the cultures of these countries are more visible, for various reasons. He wanted to say that he hopes the next edition of the festival will provide the opportunity to discover some artists operating beyond the cultural space of Western Europe and I share this hope. This, of course, does not mean that artists from the traditionally strong theatrical scenes of European countries will be excluded from selection.■

SURF & TURF IN BELGRADE

Andre Nikolica 1-3, 11040 Beograd, +381 11 36 92 570, www.bizu.rs, www.sushibox.rs cordeditorial@cma.rs

96 September | 61

feature

■ By Mark R, PULLEN ■ Photos coutresy of the Serbian Rugby League Federation

A Sport

Rugby code warS

Rugby, a sport divided by code and class, attracts different corporate sponsors depending on the code and the country

Divided

the serbian national team warms up to do battle with russia

produced its first rules of amateurism. Still, with attendances in the tens of thousands and the northern clubs’ players still needing to earn a living – usually requiring physical excursion in a mine, factory or dockyard – the pressure to provide the players with so-called “broken time payments” was immense. Many of the northern clubs were established or backed by wealthy industrialists and players were often permitted to take time off work to play on full wages, while others were enticed to come from elsewhere in the country to play for local

Serbia takes on germany in belgrade

t may not be common knowledge globally, but there are actually two sports that lay claim to the name ‘rugby football’. From Australia to Norway, America to Serbia, two rival types of rugby, or ‘codes’, known as ‘rugby union football’ and ‘rugby league football’, have been trying to outdo one another for well over a century – since 1895 to be precise – both in terms of global expansion and corporate backing. Rugby’s Great Schism of 1895 was the key event in the collective struggle of working class rugby footballers worldwide that led to the creation of two separate sporting

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codes when the Northern Rugby Football Union (later to become the Rugby Football League (RFL)) broke away from the English Rugby Football Union (RFU). During the 19th century the game of rugby football developed among vastly contrasting social classes in different parts of England. In the north the game was played and watched by the working classes, with players taking time off work to play and massive crowds turning up to watch the games, and to a lesser extent, and lower level, in northern middle class schools and colleges. However, in the south of England, where association foot-

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ball, now commonly known as ‘soccer’, was quickly becoming the game of the masses, rugby football developed among the middle class schools and colleges, who were reluctant even to offer the game to the masses. Legend has it that the northern teams, with their superior aggression, physicality and support, dominated England’s national rugby competition from the 1870s onwards.

Compensation quarrel

The first complaints regarding acts of “professionalism” were recorded as far back as 1879 and by 1886 the RFU had

gillette sponsors the england national team

During the 19th century the game of rugby football developed among vastly contrasting social classes in different parts of England teams. Massive attendances and public support resulted in some local games attracting more spectators than internationals staged in London, all of which inevitably led to what became known as "Veiled Professionalism". While the wealthy southern, or academic, rugby clubs endeavoured to avoid the game’s expansion among the “unwashed masses” – in fear of losing control as they had with ‘soccer’ – the northern, industrial rugby clubs began competing with a greater degree of professional conduct – with more structured training, nutritional

plans and even a longer season. This was frowned on by the RFU, which saw it as a precursor to open professionalism. Accusations continued to be levelled against certain northern clubs over the following years, but only individual players were fined or banned due to a lack of evidence of the clubs’ actual involvement. The issue reached boiling point at the RFU’s annual general meeting of 1893, when two members from Yorkshire proposed that "players be allowed compensation for bona fide loss of time". This was opposed by the secre

Serbia has been a particularly interesting battle ground for the rival rugby codes. One of the few nations where ‘league’ arrived first – thanks to the pioneering French federation in the early 1950s – the first rugby international to be played in Yugoslavia was a ‘league’ game between Yugoslavia and the French Amateur XIII in Banja Luka in 1961. Unfortunately, this would be both the first and last league international to be played in Yugoslavia. Just four years later the sport was banned in the country: apparently rugby union had gained a foothold in Croatia and lobbying to unite Yugoslavia under one form of rugby football saw Serbian clubs forced to convert to union or disband. League returned to Serbia in 2001, on the initiative of disenfranchised ‘union’ players, and has since gone from strength to strength. Today the Serbian Rugby League Federation boasts ten teams competing at senior and junior levels. The open-age national competition includes: Tier 1 – Dorćol, Red Star (both Belgrade), Radnički from Nova Pazova and Tsar Lazar from Kruševac; Tier 2 (north) – Podbara Novi Sad, Stari Grad (Belgrade) and Novi Beograd; Tier 2 (south) – Soko Vranje, Morava Cheetahs from Leskovac and Radnički from Niš. The sport is also one of only 15 in Serbia to have a university league. The Belgrade-based UniLeague includes five faculties of the Belgrade University and the Military Academy team. Serbia is currently ranked 9th in Europe and 17th worldwide. Its latest results included a last-gasp 28-29 defeat to Germany in Heidelberg and an historic 24-18 victory over World Cup 2013 qualifiers Italy in Belgrade this summer. Despite having had the market to itself for almost 40 years, rugby union has not made great inroads in Serbia. Currently ranked 73rd in the world, Serbia recently lost to Andorra in Belgrade, before saving face against Armenia. The IRB’s website claims there are 10 rugby union clubs in Serbia, but the Serbian governing body’s website lists just five: four Belgrade-based clubs in RK Pobednik – Mozzart, Kraljevski Beogradski Ragbi Klub [Royal Belgrade Rugby Club], RK Singidunum and RK Partizan, as well as Smederevo’s Iron Fortress RUFC.

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tary of the union, who moved an amendment "that this meeting, believing that the above principle is contrary to the true interest of the game and its spirit, declines to sanction the same".

Drastic action

The enforcing of the amateur principle threatened to cripple the northern clubs, but the final straw was the 1895 RFU decree banning the playing of rugby football at grounds where entrance fees were charged. This led to the famous meeting of 29th August 1895, when 22 rugby foot-

ilar story began unfolding in Australia. Professionalism forced rugby league to find ways of broadening its appeal to a wider audience and gradually the game adapted rules to becoming quicker and simpler. Most notably, the number of players on a team was reduced from 15 to 13 players and elements such as the rugby union ‘line-out’ (abolished 1897) and ‘ruck’ and ‘rolling maul’ (replaced with a ‘play-the-ball’ after every tackle in 1906) were phased out. Today the two sports are vastly different spectacles, although both rugby codes retain the original rugby

ditionally administered and played by elite schools and colleges in these two countries and its corporate middle class heritage has seen it attract a higher class following and strong corporate sponsorship. Proud of its “amateur principle”, officially until a century after the Great Schism, union saw itself as the football code representing a “nobler kind of sportsmen”. In his book A Social History of English Rugby Union, Tony Collins notes that rugby union “has seen itself as the guardian of traditional English middle-class values.” This may seem an outdated notion in a modern world where both codes are now

The enforcing of the amateur principle threatened to cripple the northern English rugby clubs

serbia and the ukraine compete in rugby league's slavic cup

ball clubs from the counties of Yorkshire and Lancashire met at the George Hotel in the town of Huddersfield and decided to break away from the union and form the NRFU. Professionalism was formally introduced a few years later and in less than two decades some 200 clubs had joined the rebels worldwide. The RFU went on the warpath, issuing life bans to anyone playing for or against the mutinous northerners or anyone even associated with the clubs and creating a set of fierce bylaws to keep the rebels in check. The northern game was banned in many schools and the British armed forces, suppressed and contained, denied access to 'union' lands, 'union' media and 'union' sponsors wherever possible. In 1907 a sim64 |

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football’s backwards pass and full contact tackles with minimal protection.

Corporate support

With its working class heritage in northern England and Australia, rugby’s ‘league’ code has traditionally attracted sponsors interested in mass crowds in the sport’s heartlands. The first long-term sponsors of the national rugby league competition in England, for example, were Tetley’s Brewery (beer) and John Player (tobacco), who entered the game for the first time in 1971, while the top rugby league competition in Australia was famously known as the Winfield Cup, after the Winfield cigarette brand, from 1982 to 1995. The sport’s ‘union’ code, however, was tra-

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formally “professional” sports with equal status and the “class war” is supposedly dead, but it still rings true even if we just look at the title sponsors of the rival rugby codes’ elite competitions in these two countries: insurance company Aviva is the title sponsor of English rugby union’s “Aviva Premiership”, while road haulage firm Eddie Stobart Ltd. is title sponsor of rugby league’s “Stobart Super League”; in Australia, meanwhile, currency trading broker FxPro is the title sponsor of union’s “FxPro Super Rugby” competition, while Telstra (telecoms and media) is the title sponsor of Australian rugby league’s “NRL Telstra Premiership”. With league’s growth stifled since its inception by its confinement to traditional working class areas of northern England, eastern Australia, southern France, Papua New Guinea and the Pacific island nations, it is no surprise that the sport has struggled to attract long-term corporate sponsorship on a global level, relying instead on match ticket sales and community fundraising, coupled with short-term brand advertising deals. Rugby league has no long-term worldwide partners committed to development, though it has virtually only just begun expanding

HIDDEN IDENTITY

“They never told us about rugby league at school, but then we were middle class, lived in the south and played rugby union. So we never knew that far off in the cloth-capped north men took money for playing a very different kind of rugger…” “Rugby Union officials at Twickenham would allow neither themselves nor their members to be filmed, for even to appear in the same roll of celluloid as the blackballed ‘League’ sends a shudder through the Union. The Union prefers to nurse a private grudge against its prodigal son. As one official said, ‘we think we are right, but in the democratic world in which we live our view may not be understood’.” Roger Mills, from his 1969 documentary “Rugby League: The Game that Got Away”

beyond its heartlands – thanks largely to the lifting of the preposterous bans on the game in many UK schools, colleges and the armed forces after the rival code formally turned professional in 1995. Indeed, the decision of rugby union’s world governing body, the International Rugby Board (IRB), for the sport to formally turn professional 17 years ago not only marked the birth of professional rugby union, but also the end of the institutional oppression of professional rugby league.

Global partners

Procter & Gamble’s men’s personal care products brand ‘Gillette’ has sponsored the England rugby league national team and the sport’s international annual 4Nations tournament since 2003, making it rugby league’s longest-serving global partner. Rugby union, meanwhile, as an amateur sport, relied on other sources of income. Thankfully, the game was dominated by top schools and colleges, which ensured that players, coaches and well-wishers were bound to succeed in corporate business, government or some other profession that would enable them to help the sport’s expansion worldwide to countries that remained beyond the reach of league, most notably Argentina and South Africa. Union matches and social functions, particularly at club level, have traditionally

the serbian rfl supported the battle for the babies campaign in 2011

been formal affairs providing an opportunity to network with the top brass who consider the game their own. Far from the chanting and lively cheering of a traditional rugby league crowd, rugby union supporters would rarely go beyond a short

17 years, does have major worldwide corporate partners helping to develop its sport. They include the likes of Societe Generale, Heineken and Land Rover. Nowadays the biggest money in the sport of rugby league is in broadcast rights.

Rugby league may have been a professional sport for almost 120 years, but its identity issues and stifled growth ensure it still lacks major corporate sponsorship round of applause between negotiations. With the exception of international rugby union, which now enjoys an enviable profile and mass support across class divides, the club games of both codes remain largely the same as they always have been. Rugby league may have been a professional sport for almost 120 years, but its identity issues and stifled growth ensure it still lacks major, long-term corporate sponsorship worldwide. Rugby union, on the other hand, which has only been professional for

Australia’s Channel Nine and FoxSports currently jointly own the broadcast rights for rugby league in Australia. The latest five-year deal, signed earlier this summer, will cost the two broadcasters a reported AUS$1.025 billion (around €835 million). In the UK, News International’s Sky TV retained its exclusive live broadcasting rights to rugby league’s Super League competition until 2016, with its own fiveyear deal believed to be worth around £90 million (€114 million). ■

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tourism alternative breaks

Ethno Villages and

Farmsteads Moravian Lodgings The Morvaski konaci (Moravian lodgings) ethno village is located in the very heart of Serbia, some 89 kilometres from Belgrade along pan-European Corridor 10, just a kilometre from highway E75’s Velika Plana exit, along the main road to Požarevac.

Autumn is the right time to visit some of Serbia’s many attractive destinations offering peace and relaxation. Ethno villages and spas in central Serbia, farmsteads in Vojvodina, as well as riverside restaurants scattered some 100 to 150 kilometres from Belgrade, certainly represent a challenge after a hard time at work and every day stress. In this issue CorD recommends some options for places you should visit. nightingale, making them the perfect place for a holiday in nature. Both lodges are built of wood, stone and ecological materials. They have under-floor and radiator heating, a fireplace, tile stove, satellite TV and telephone connections. Five mountain apartments of various sizes and designs are available. Each apartment has a kitchen, bathroom, living room and sleeping quarters, while the bigger apartments have additional facilities and amenities. In the vicinity are rich hunting grounds, clear mountain streams, Perućac and Zaovine lakes, tailored forest walking and cycling trails, the historical Rača Monastery, Mount Mokra Gora, Emir Kusturica’s Drvengrad ethno town on Mećavnik etc.

Moravian lodgings

This ethno village, built as a representative site for recreation and respite from daily work and stress, is structurally divided into two parts. The first part comprises the ethno village itself, which consists of the settlement for overnight accommodation, a restaurant complex with a lake, a small zoo in a nearby forest and its own church, which is dedicated to Saint Nicholas. The second part comprises a sports centre (still under construction), with a small aqua park, swimming pool for adults and children, as well as a large water slide some 75 metres in length. Contact: +381 26 515 875; mob +381 65 211-7778 www.etnoselo.rs

Contact: +381(0)64 209 1514; e-mail: zelenicardaci@sbb.rs; www.zelenicardaci.net

Green Lodges

Rakezići ethno village

The attractive Zeleni čardaci (Green Lodges) apartment complex is located in the beautiful surroundings of the Tara National Park. These two mountain chalets, made from all natural materials and with a total capacity to cater for 20 guests, are surrounded by centuries-old conifers, the murmur of mountain water and the song of the

The Rakezići ethno village is situated along the right bank of the Western Morava River, on the slopes of Mount Goč and the territory of the village of Brezovica. Located some 12 km from Trstenik and the same distance from Vrnjačka Banja spa town, this ethno village is actually on the border between three municipalities: Trstenik,

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Vrnjačka Banja and Aleksandrovac. The Rakezići ethno village is located in beautiful nature, in the converted estate of the Rakezić family, covering an area of five hectares

Rakezići ethno village

of picturesque nature. It has a restaurant, a summer house for rest and accommodation, a museum and authentic wooden lodge chalets dating back more than a hundred years. Rakezići has eight beds (two rooms with two single beds each and two rooms with a double bed each). Every room has its own TV, air conditioning, heating and an en suite bathroom. Contact: +381 36 651 428

Stanišići ethno village At the exit from the Republika Srpska town of Bijeljina, three kilometres towards Pavlović Bridge, lies the Stanišići ethno village. Dominated by the Pirg Hotel, it has been built in the medieval style, though as a high class modern and fully-equipped facility able to meet high contemporary standards. With hotel suites accommodating up to 80 guests at any one time, it has an outdoor swimming pool, Jacuzzi, sauna, massage room, fitness centre etc. The village’s Pirg Hotel has a conference hall to cater for 100 guests and is equipped with all modern equipment necessary for seminars and conferences. Its rooms and suites have cable TV, telephone, air conditioning, wireless internet access, a mini bar and a safe. The Stanišić Tavern Restaurant has 200 seats in one dining hall, 65 seats in a

Zlatibor Lakes The Zlatziborska jezera (Zlatibor Lakes) ethno complex is located in one of the most beautiful parts of Mount Zlatibor - in a quiet and pleasant bay towards Semegnjevo, situated about 6 km from the centre of the town of Zlatibor. This new facility has seven rooms of different configurations and an apartment with two “brigand’s beds”, a double bed and an extra bed. The facility’s ground floor includes an ethno room, while the first and second floors each have two bedrooms and one studio. The apartment and another room are housed in the attic. Most rooms have their own balcony. The Zlatibor Lakes restaurant offers a wide variety of national cuisine dishes, from wedding cabbage and veal hot pot, to trout from its own fishpond and soldier beans (for only 100 dinars per portion!). The offer Zlatibor Lakes

Green Lodges

also includes a daily menu, with prices ranging from 300 to 500 dinars. Contact: +381 64 363 21 18

Stanišići ethno village

second and 100 seats on its outdoor terrace. It is located right on the lakeshore. The interiors of this resort’s authentic wooden rest houses have been adapted to cater for the needs of contemporary guests. Contact: +387 55 350 306, +387 65 513 738 email hotelpirg@etno-selo.com

Gočko ethno House Located in a beautiful setting beneath Mount Goč on the banks of the River Vrnjac, the Gočko Ethno House is not far from the Snežnik spring and Olympic swimming pool. The facility has 10 luxury equipped rooms (TV, air conditioning, mini bar, telephone), as well as an 80-seat restaurant specialising in national cuisine. The restaurant also has its own garden, with a capacity of 150 diners, in the beautiful natural setting of the Vrnjac riverbank. The restaurant offers a pleasant ambience and the sounds of good music, but also excellent service and a delicious menu with a wide range of domestic and foreign wines. cordeditorial@cma.rs

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Grandma’s River ethno village

Gočko ethno House

The Babina Reka (Grandma’s River) ethno village is located on an area of one hectare in the municipality of Lazarevac’s village of Trbušnica, between Lazarevac (12km) and Aranđelovac (20km). It is located on the outskirts of the village, isolated from everything urban by nature. The Živković estate is isolated from any urban elements within deep nature. Surrounded by hills, mountains, streams, river and forests, just 50 metres from its holiday facilities is a local lake, offering fishing or hiking possibilities.

within the shadows of an old plum orchard, this authentic paradise is surrounded by creeks and springs of crystal clear drinking water and offers complete relaxation and recuperation throughout the entire year. A traditional village household with a vast, striking garden filled with numerous flowers and trees, it was awarded as the most beautiful landscaped garden in the Gornji Milanovac Municipality in both 2004 and 2006. Within the courtyard there are several typical wooden houses that have been renovated in the traditional regional style. Contact: +381 63 353 215

Bunny’s Farmstead

Grandma’s River ethno village

ETNO house ‘’ĐERAM’’ The Đeram ethno house has been arranged by its hosts to cater for guests’ need for rest, relaxation and a sense of warmth and peace. Special attention is paid to good food and, as such, here visitors can enjoy old and forgotten dishes from “grandma’s kitchen”. Đeram has six beds divided between single and double suites, furnished according to the refined demands of the modern guest, with

Contact: +381 365 468 200, +381 365 614 483; Fax +381 365 468 050; Email: etnokucagocko@live.com

ETNO house ‘’ĐERAM’’

Gornja Kravarica The village of Gornja Kravarica is situated in Dragačevo in the Lučani municipality, some seven kilometres from the town of Guča and 160 kilometres from Belgrade. It is situated at the site of the source of the river of the same name, between the hilly and mountainous areas of Golubac, Drača and Krstač. It borders the territories of the villages of Rti, Donja Kravarica and Mirosaljci. Gornja Kravarica offers relaxation and respite from the pace of urban life, fresh air and the scents of hay and flowers, untouched Gornja Kravarica

There is also a restaurant with a capacity of 130 seats and a unique interior complete with a traditional fireplace, which provides a pleasant, warming atmosphere during cold days. The restaurant’s gallery has 30 seats. The complex includes a landscaped garden with fountains and natural shade, with over 200 seats, a stage for cultural-artistic events, parking and a gift shop, while the establishment of a local history museum has also been launched. Contact: +381 63 80 28 557; +381 65 80 28 557

Heavenly cottages Rajski Konaci (Heavenly cottages) is a 4-star village household belonging to the Jevtović family. It was officially recognised as the Best in Serbia in its category by the Tourism Organisation of Serbia, TOS, in 2010. Situated in the village of Leušići, some 30 km from Gornji Milanovac and Čačak, it is nestled among flowery meadows and orchards. Hidden

nature, orchards and vineyards, woods and meadows, springs and small rivers, narrow roads and clean forests. The area is equally attractive during all four seasons. Walks along the paths of Golubac Mountain, cycling up to the Roman well and other hidden areas of Dragačevo, collecting herbs and forest fruits, skiing and sledging, hunting and fishing – these form just some of the memories on offer to those choosing to visit this village. Contact: 381-032-861-093, www.vajati.com/eng

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Heavenly cottages

tion of the “inner courtyard” (threshing floor), while the rest and recreation zone is completed with a mini zoo, children’s playground, paddock and spacious rabbit maze. Contact: +381 22 500314, +381 11 303 6623; +381 64 641 55 72 Email office@zekinsalas. com

Dida’s House

antique items of furniture and selected details, the scent of quince and clean sheets. The restaurant can accommodate around 50 guests and is suitable for staging a variety of different events. Contact: +381 023 61 196; +381 641430798 email villageholliday@businter.net

In the heart of the beautiful and tranquil medieval town of Bač, between the Franciscan monastery and Župa parish church, lies Didina kuća (Dida’s house), with foundations dating back to the early 19th century. Dida’s house has a capacity of about 100 seats sprawled over its summer terrace and cane-topped garden. During the summer months the house is a suitable and popular venue for celebrations, seminars, art colonies and literary events. On cold winter nights, sitting on the riverbank beside the hot brick oven, guests can join various workshops of old crafts of weaving, pottery, gold embroiDida’s House

Zekin Salaš With a capacity of 150 seats and a beautiful open-air courtyard with additional seating for 300 guests, Zekin Salaš (Bunny’s Farmstead) is set in a traditional Srem household, with a restaurant that offers forgotten and unique culinary specialities originating from this region. The Srem breakfast, various kinds of filled and plain noodles, perkelt stews, Ukrainian pirog, goose in wine, fish stew, pies, sweet filled noodles, cakes prepared with lard and rabbit paw cakes are only part of the plentiful gastronomic offer. The old guvno (threshing field) contains an exhibition and sales presentation, while this venue is also suitable for business meetings, promotional events, exclusive receptions and cocktail receptions. It has a capacity of 70 seats. Rabbit Museum is a permanent art exhibition dedicated to and inspired by the humble rabbit. Recreation is organised on a 5000m2 garden, which is a continua-

dery and painting on silk and glass. Weekends at Dida’s house can be spent preparing winter preserves or attending the traditional Bačka pig slaughter. Contact: +381 21 770 536; Mob +381 63 10 70 765 email etno.kuca@yahoo.com ■ cordeditorial@cma.rs

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restaurant

■ By Jovana GLIGORIJEVIĆ ■ photo by Zoran PETROVIĆ

I think Vapiano distinguishes itself with its specific ways of preparing food and I would say more fresh than healthy, because healthy is a given at every restaurant. Maybe our food has fewer calories, but it’s all a matter of individual consumption

tre of the Balkans, if not the SEE region; it is the busiest street in town and, after three years of operating in Belgrade, it is a fact that Vapiano has become a recognisable brand. I believe success is guaranteed.

■ Unlike Ušće, the new location is surrounded by stiff HoReCa competition. How will you compete?

■ Is franchising catering the future of the industry and what are its advantages over the traditional concept?

- I love competition. As in any other business, competition makes you better, for me that’s competing in the most positive sense of the word.

- The franchise in its own right significantly helps individuals to more easily access the market by setting a framework and guidelines for the development of the business. However, the level of success will depend on each individual franchisee and how well he will use it. In any case, my experiences have been positive and I am representative of this way of doing business. It was certainly easier for me because I spent nearly twenty years in this environment, so I practically applied what I used to dictate to others, but I have noticed that in Serbia there are already established chains of different local restaurant brands and I’m sure that will bring positive results after a certain period of time.

■ After almost 20 years working for

McDonald’s, you decided to become the owner of your own restaurant franchise chain, also fast, but also healthy food. When you compare your old and new careers, what’s the difference; what are the advantages and disadvantages of both?

- I think Vapiano distinguishes itself with

Vapiano is specific not only for its preparation of meals in front of guests, but also due to the specially designed interior that simply lures you to communicate and socialise

Quality, speed,

individuality

The Vapiano brand arrived in Serbia three years ago with the opening of the franchise’s first restaurant in the Ušće Shopping Centre. The Vapiano concept is the mixture of a self-service and an a la carte restaurant, where the food is prepared on-site, in front of the diners. The fist Vapiano restaurant opened in Hamburg in 2002. The restaurant’s concept presents a casual but quick service method in which customers use a “chip card” with which they make a personal food order at individual food pasta, pizza and salad preparation points. Belgrade’s first Vapiano restaurant was opened in 2009 at the Ušće Shopping Centre, while a second recently opened at an exclusive location in the centre of Belgrade, on the “Ruski Tsar” site. The franchise’s first restaurant in Belgrade is unique in that it was the first Vapiano to be established in a shopping centre and, as such, was a kind of experimental location that proved successful.

■ When you opened the first Vapiano at SC Ušće in 2009,

Saša Trišić, owner of Vapiano Restaurant

ping mall. From this perspective, after three years, we know it was worth it; the restaurant records outstanding results. But if you ask me if I would embark on such an adventure again, I would not. We practically opened the restaurant in parallel with the onset of the global financial crisis and the restaurant is not at an ideal central location. Those two factors significantly caused a very difficult start. If we also consider that the total investment was €2.3 million, you will agree that this was far from ideal start-up for a new brand in Serbia.

We are planning at least two more restaurants in Belgrade, before we decide to expand to other cities. We need a strong base for the sustainable development of the entire Serbian market

its specific ways of preparing food and I would say more fresh than healthy, because healthy is a given at every restaurant. Maybe our food has fewer calories, but it’s all a matter of individual consumption. We prepare our meals on a daily basis at the restaurant, using the highest quality ingredients. Our restaurant is actually a factory which has its own production, preparation and sales. The specific way of preparing meals in front of the guest who virtually participates also sets Vapiano apart from other restaurant concepts in Serbia, making it unique. I built my career at McDonald’s, from a grill worker to a director of the company, passing through all the secrets of the restaurant business. That experience helped me significantly when it came to overcoming all of the challenges we encountered as a result of the aforementioned problems. I don’t like to talk about faults, but the advantages of McDonalds are its recognisable brand and the largest system in the field of fast food services. Vapiano is a company on the rise. Even though it is the fastest growing brand in the field of fast casual restaurants in Europe in 2012, this is still a young company. And as franchisers we’re practically in a position to break onto the market with a new brand, which is much tougher.

it was the first Vapiano restaurant to be located in a shopping centre. Three years on, do you still think it was a good business move?

■ The second Vapiano in Serbia has opened in the heart of the city centre, on the ‘Ruski Tsar’ site. What do you expect from this location?

■ Will Vapiano in Serbia remain only in Belgrade or are you planning expansion to other cities?

-Yes, that was the first Vapiano in the system to open in a shop-

- We expect a lot from this location in every way. It is the cen-

- We are certainly planning to develop across the whole of Serbia,

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but that will be influenced by the overall economic situation. We are planning at least two more restaurants in Belgrade, before we decide to expand to other cities. We need a strong base for the sustainable development of the entire Serbian market.

■ Is the Vapiano concept – preparing quick and healthy food on the spot, in front of the guest – unique in the world or are there other such examples?

- Preparing food in front of guests is not unique in the world and there are a lot of similar concepts with this kind of service. I think that the accelerated pace of life, and the inability to dine at home, has created the idea of preparing food in front of guests, and thus partially overcoming the suspicions that are more and more prominent. Vapiano is specific not only for its preparation of meals in front of guests and their participation in the process, but also due to the specially designed interior of Mediterranean character, with live olive trees, high ceilings, tables with a larger number of chairs – all of which simply lures you to communicate and socialise. That is what modern man is missing and that is why we have recorded growth of 30% for the third year in a row. ■ cordeditorial@cma.rs

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chill out

Curing Claustrophobia Experts have been brought in after staff at the UK’s Alton Towers theme park complained of suffering from claustrophobia following the opening of the resort’s latest attraction, the Nemesis Sub-Terra. The ride features a network of airless catacombs, endless tunnels and dark, cramped cages designed to terrify visitors. Bosses have now hired contortionist Pixie Le Knot to

Russian Base jumper Valery Rozov has set a new world record with a leap from the top of Shiving, a 6,543m mountain in the Indian Himalayas. After a 30-day expedition, including a six-day ascent, Mr Rozov, 47, took off from a cliff face. Within seconds he hit speeds of 125mph. The Russian landed 2,200m further down on the glacier, just 90 seconds later. The other expedition members took three days to complete the descent. “This was my first project in the Himalayas,” said the two-time skydiving world champion after his record-breaking flight. “We had a few difficulties along the way, so I am really pleased that we were able to complete the jump successfully.” Rosov is a base jumping superstar. The Russian’s breathtaking feats – such as jumping into an active volcano in Kamchatka, Eastern Russia, in 2009 and leaping from Ulvetanna Peak in the Antarctic in 2010 – have made him internationally famous.

A customer at London’s Playboy Club recently managed to destroy a $77,615 bottle of historic Cognac, which dated back to 1788. The customer, a businessman with apparently expensive tastes and butter fingers, had ordered two glasses of the brandy for $7,839 a pop when he asked to look at the bottle. When he stood up, he sent it flying across the room. It broke into smithereens upon hitting the floor. The bottle had previously been sold for $37,000 at a Paris auction in 2009. It was supposed to have been featured last month by mixologist Salvatore Calabrese in the making of the world’s most expensive cocktail for Guinness World Records. Unfortunately for all, the bottle of Clos de Griffier Vieux wasn’t insured because it had already been open.

Germans Alexander and Stefanie Donninger could face jail for poaching after attaching a frozen fish to a fishing line while holidaying in Austria’s Tyrol region. The couple said they purchased the €3 gutted frozen trout and attached it to their twins’ fishing line for a bit of fun. However, a suspicious local spotted the family and called police, who arrested the couple. According to a police 96 September 2012

A 70-foot dock that was washed away from Japan by last year’s devastating tsunami has washed ashore on a beach in Oregon, U.S. The origin of the dock was confirmed by the Japanese consulate in Portland, Oregon, by means of a commemorative plaque naming the manufacturer, and the discovery of a starfish native to Japan among the marine life still clinging to the structure more than a year after it went adrift, said Chris Havel, Oregon Department of Parks and Recreation spokesman. The concrete dock with a metal pontoon was first spotted floating offshore and was mistaken by several people for a barge. It washed ashore a mile north of Newport on the central Oregon Coast.

Dutch Millionaire Finishes Ark A Dutch millionaire has opened the doors of his full-size replica of Noah’s Ark to the public. Dutch millionaire Johan Huibers spent four years building the ark after dreaming his hometown would be destroyed by a flood of biblical proportions. Using dimensions set out in the Book of Genesis, the 137m x 21m craft features its own ‘Bible museum’, complete with life-size plastic animals. The project stems from a dream the 52-year-old had in 1992, in which his native Holland was flooded by the North Sea. “The next day I bought a book about Noah’s Ark,” he said. “That night, while sitting on the couch with my kids, I looked at it and said: “It’s what we’re going to do”.” Mr Huibers originally wanted to sail his ark, currently moored on the Merwede River, Dordrecht, to London for the Olympic Games. However, he was forced by Dutch authorities to abandon that plan .

Fishy business

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Have you ever wondered who the kings are in a deck of cards or what the four suits mean. The court deck was developed in Western Europe in the 16th century and became the standard design for England. It has since become the most common deck of playing cards. English court cards were never based on any historical royal figures.

However, card makers in France often assigned historical royals to the cards. This early practice was not standardized until the 16th century. France also introduced the suits we know today to represent the different feudal classes: hearts (representing the Church), spades (for the military), diamonds (for merchants) and clubs (for agriculture). They also introduced the convention of colouring the diamonds and hearts red, and the spades and clubs black.

Dock crosses Pacific

Himalayan base jump

77,615 Bottles Of Cognac Shattered

Who are the Kings in Deck of Cards

run claustrophobia workshops to help staff become comfortable working in confined spaces. According to Alton Towers’ Katherine Duckworth, “the Nemesis Sub-Terra is set to push you to your limits… While our guests experience around four minutes of the intensity underground, employees spend eight hours in its claustrophobic confines… We hope that Pixie will help them overcome their fears of the small spaces in the attraction.”

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spokesman, “Regardless of whether he had a frozen fish on the line or not, it is still illegal to have a rod in the water without a licence.” The father could face six months in prison if convicted after the owner of the river insisted there was no way of proving whether the fish was frozen or not. Defence lawyer Taddaeus Schaefer insisted: “It is madness that such a small offence with a fish worth no more than a few Euros is even coming to court. It is like we are living in mediaeval times again.”

S25K diamond mistake The children of an elderly man from the U.S. say he mistakenly bought a $25,000 diamond necklace believing it to be cheap costume jewellery. According to ABC News, 90year-old Maurice Branch bought the necklace as a gift for his wife. Branch charged the item to his Visa card thinking it was a pretty $20 rhinestone bracelet that his wife

would like. The price difference was noticed by Branch’s daughter, Carol, who saw the $25,000 charge and quizzed her father, before calling the jeweller to explain what happened and asking if it would be possible to refund the necklace. However, the jeweller informed Branch of his store’s strict no-return policy. Eventually Branch and the jeweller worked out a deal to sell the necklace on consignment at La Jolla Fine Jewellery, the shop where the item was purchased. cordeditorial@cma.rs

96 September | 73

techno talk

Seeing the world clearly While the best eyewear provides people with a means to see the world clearly and from a sharper perspective, the comfort level is not always the same and that depends on your facial profile, your taste and the depth of your pocket. The colour of the lens can vary depending on style, fashion and purpose, but in general red, grey, green, or brown lenses are recommended to avoid or minimize colour distortion. Grey and green lenses are considered neutral, because they preserve

ALEXANDER WANG

The summer may be over, but here we present you with a selection of sunglasses in the sincere hope and quite confidence that there will be more sunny days ahead this season

Miu Miu

€272

In one of the hottest shapes of the season, these pink-tinted lenses will add a romantic touch to your vision that will make everything seem like its coming up roses

true colours. Brown lenses cause some colour distortion, but also increase contrast. Turquoise lenses are good for medium and high light conditions, because they are good at enhancing contrast and they also don’t cause significant colour distortion. Orange and yellow lenses increase both contrast and depth perception. Yellow lenses are used by pilots, yachtsmen, anglers, shooters and hunters because of their contrast enhancement, while blue or purple lenses are mainly cosmetic.

€270

CUTLER AND GROSS

Add A-list appeal to your wardrobe essentials with Cutler and Gross's oversized square-frame sunglasses. Handcrafted from transparent acetate, this tortoiseshell pair will take pride of place in your accessories collection.

FINEST SEVEN

€520

New eyewear label Finest Seven is dedicated to expert craftsmanship and innovative technology. These handmade acetate D-frame sunglasses are not only chic, but the understated grey lenses are cleverly designed to prevent eye fatigue, so carry them every day to stay shaded in style.

Seek some stylish shade in Alexander Wang's tortoiseshell acetate cats' eye sunglasses. With cool green lenses, wear yours with a printed t-shirt and denim cut-offs to tap the label's covetable downtown aesthetic.

Yves Saint Laurent

€162

Give your sunny-day wardrobe a cool spin with Vintage Hugo Boss for Retrosun's brown acetate round-frame sunglasses.

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€227

GUCCI

€270

Finished with Gucci's signature red and green stripes, these black acetate D-frame sunglasses exude effortless sophistication. Wear them everywhere from the ski slopes to the city for a hit of the brand's much-coveted aesthetic.

Round frames aren't for everyone, partly due to the hippy connotations. This acetate pair is futuristic in styling though, making it a perfect choice for forward-thinkers.

Retrosun

€304

VICTORIA BECKHAM

€305

Take shade behind Victoria Beckham's silvertone metal aviator sunglasses with blue gradient lenses. Slip them on to add an A-list finish to chic city looks.

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96 September | 75

techno talk

the row

€315

Thierry Lasry

The Row's cats' eye sunglasses showcase the luxe New York label's acute attention to detail. With transparent acetate frames, graduated brown lenses and leather-covered arms, they're the coolest contemporary/retro blend. Wear yours in the hazy days of summer or to give your winter wardrobe a lift.

€173

ILESTEVA

Avant-garde eyewear is what Thierry Lasry does best, and these marble-effect cats' eye sunglasses are a covetable case in point. Team this subtly iridescent grey acetate pair with tonal prints for a cool take on a classic retro style.

OLIVER PEOPLES

Need-to-know label Illesteva has quickly established a cult following with its contemporary-cool designs, and the brand's tortoiseshell 'Leonard' sunglasses are a case in point. Wear this black-lensed acetate pair with tousled hair and a biker jacket for a hit of hip, whatever the season.

€227

Add a subtle shot of colour to your wardrobe with Oliver Peoples' pale-yellow acetate sunglasses. Wear them in the city or on holiday with everything from printed dresses to bright bikinis.

LINDA FARROW LUXE

€353

€383

€209

Directional sunglasses are this season's key accessory, and Prada's black, white and tangerine style will ensure you stand out in the sun. Wear them with pared-back monochrome outfits to showcase the '60s-inspired acetate frames to best effect.

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€178

Designers whisked us off to far-flung destinations this season and Stella McCartney's acetate round-frame sunglasses have a distinctly Eastern-inspired feel. Covered in a red circle print, this pair will lend city looks a well-travelled twist.

Prada

96 September 2012

Ray-Ban's iconic sunglasses are an allAmerican staple and this brown tortoiseshell acetate and gold metal pair are a retro-cool choice. Wear this half-frame style to give every look a vintage vibe.

STELLA MCCARTEY

Maison Martin Margiela's white acetate sunglasses are a must-have new-season accessory. With cool cutaway lenses and a minimalist design, this luxe pair will give every outfit a sleek finish.

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€141

RAY BAN

A host of exciting collaborations and a unique approach to design ensure Linda Farrow is one of the most talked about names in the fashion industry. Its 'Luxe' eyewear line is jam-packed with sleek styles, like these square-frame merlot acetate sunglasses. Wear them to give any look extra attitude.

MAISON MARTIN MARGIELA

€309

€220

VALENTINO

Valentino's classic tortoiseshell acetate sunglasses will top off your city-to-holiday looks with understated glamour. These luxe shades will complement any outfit - make sure to keep this style close at hand in your everyday tote.

cordeditorial@cma.rs

96 September | 77

fashion Giles&brother

Necklace

Linda farrow luxe

Oval frame Fit them with your styling for work.

Fusing braided black leather and oxidized-brass, this toughtalking accessory will lend fashion-forward edge to everything from a striped t-shirt to cocktail separates.

price:

€191 michael kors

Blouse price:

€404

price:

€325

Work Wear

This silk-georgette blouse is an ideal base for new-season looks. From elegant day outfits to evening ensembles, this versatile design will always make a polished impression. price:

€258

MARC JACOBS

iPad case

price:

€308

This versatile design allows you to stylishly keep your tablet at hand - carry yours on the shoulder to meetings, then use it as a handbag for dinner dates.

Jacket

Malene Birger’s cream and black tweed jacket is an uptown classic with downtown attitude.

for her...

Alexander McQueen

price:

€166

lanvin

Dress Deluxe knitwear is the easiest way to build a transitional wardrobe, wear with bare legs and pumps or ankle boots.

By malene birger

price:

€633

iPad sleeve

Give everyday technology a fashion-forward transformation with Alexander McQueen’s ocelot-print canvas iPad sleeve.

Bag

Jimmy choo

price:

€329

Synonymous with sophisticated glamour, Jimmy Choo cements its style set credentials with these classic nude patentleather slingbacks.

€383

Yves Saint Laurent

Cashmer pants With a high-waisted cut and wide leg, wear them with a classic shirt for a formal lunch date, swapping to a pussy-bow style for cocktails. 78 |

96 September 2012

price:

www.cordmagazine.com

price:

€940

price:

€263

Mixed-media bags are high on our new-season style agenda, and McQ Alexander McQueen’s tote is a seriously cool take on the trend.

Jimmy choo

Kitten-heel

Every woman needs a classic carryall and Yves Saint Laurent’s will make a timeless addition to your wardrobe.

Glasses

€170

gucci

Shirt

persol

price:

Handmade in Italy, these specs have a distinguished air that will lend preppy appeal to your everyday look.

€175

Gucci’s light blue cotton shirt will lend your professional style portfolio a classic accent.

price:

€500 drake’s

Tie

€134

Immaculately crafted from silk, this neck piece is a splendid way to give classic tailoring a dashing shot of print.

€283

uniform wares

This timepiece maintains a thoroughly modern touch thanks to minimalist narrow baton style hands and a sleek monochrome colour palette.

price:

loro piana

Belt

Use it to put an elegant finishing touch to your outfits, whether it’s a polo shirt and chinos or a dark navy suit.

€340

John smedley price:

€104

Bag

This supple leather Ted satchel works fluidly with everything from business meetings to weekend jaunts.

Blazer

...for him

price:

Watch

Jil Sander

A top-notch wool blazer is a pillar of any urban wardrobe and Jil Sander provides a first-rate choice.

price:

mulberry

Yves Saint Laurent

Sandals

Looking good at work is vital to your career. What you wear in the office tells others what you think about yourself and your job - even what you expect from life.

price:

burberry london

Trousers

Keep the look smart with a fitted blazer, or dress it down with a t-shirt and bomber jacket.

You can’t go wrong with a grey sweater. This one is soft and lightweight, making it an ideal layering piece.

mulberry

price:

€670

V-Neck Sweater

€133

iPad Case

The leather iPad case is the smartest way to carry your technology around town.

price:

€250

john lobb

price:

€730

Loafers Handcrafted from supple suede, they are the height of comfort and style.

cordeditorial@cma.rs

96 September | 79

FREYWILLE

Nixe Aqua

design

price:

Bookrest

€ 794

s New design house FREYWILLE place the r unde ) Aqua (Nixe Water nymphs erful spotlight, with live blue tones and pow ous preci of ark hallm the is h elegance, whic ide prov ils deta gold e whit enamel. Fine y, this item of jewellery with a hint of luxur of ce surfa the of e imag an bringing to life the sea, streaked with sun rays. Available in all FREYWILLE boutiques from 15th September Terazije 26, Belgrade

price:

€104

Umbrella

www.freywille.com

Incorporate the instantly recognisable motif into your everyday repertoire with this umbrella. Whether you use it on rainy city days or to block the hot summer sun, this timeless accessory will keep you polished and protected.

mulberry

smythson

Scarf

Animal prints were a recurring theme throughout Mulberry’s ‘Where The Wild Things Are’ collection. With frayed edges and an understated motif, it will bring a little pattern to everything from a classic sweater to a mannish coat.

€187

Organiser

price:

gucci

€116

Pumps with 15 cm hee l in black suede with plateau. Cro codile effect reinterpreted throug h selected details made of a special gel. Elegant ankle clasp. Dobracina 5, Belgrad e +381 11 3286 045 price:

80 |

96 September 2012

Sogno Italiano |

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Esprimodesign’s Swan stool, designed by Marianna Contaldo and Francesco Esposito, is made from Corian in a curvy, fluid shape emphasising its technical features. It is made of two elements of 12mm thermoformed Corian that are glued together.

price:

€241

The iconic design has been embossed onto this leather iPhone case as a reference to the brand’s rich heritage, providing a timeless way to protect your essential technology.

ROCK and DOLL’S

Swan

This dark brown leather-bound organiser from Smythson has sections devoted to your diary, address book and phone numbers.

iPhone Case

Giordano torresi

€ 480

The 85 Lamps chandelier by independent Dutch designer Rody Graumans is a simple yet true statement piece for any interior. This lamp uses only what is necessary to create light; bulbs, wires and connectors.

burberry

Collection “Nixe Aqua”

price:

85 Lamps

Bookrest is a practical and colourful spot in every room! It gives your book a new and graphical expression while hanging and has a small hook for reading glasses.

Lived in Design The best new interior items to add the finishing touch to any stylish home.

Cutline collection

Italian designer Alessandro Busana presents Cutline, a new furniture collection produced by Smooth Plane and recently shown during the Milan Furniture Fair. Cutline defines dynamism of a precise action; a radical cut creating functionality in each object, while at the same time giving rise to an aesthetic able to evoke emotion. Every furniture piece allows the user to hide or show their decorative or usable objects.

Wire Chair drake's

Pocket Square Perfect for finishing a formal outfit; add to the breast pocket of a grey suit for sartorial flourish. price:

€33

The Reverb Wire Chair is an ethereal chair that plays with the relationship between volumetric presence and structural lightness. It was made by Marzorati Ronchetti in a limited edition of 20 pieces for the Patrick Brillet Gallery.

Trapezoidal

Mark Bendow’s Friends sideboard was inspired by the essence of teamwork and the fundamental quality of friendship. The single, one-legged pieces of the ensemble cannot stand by themselves, so they lean on each other, finding stability as an ensemble without losing their individual character.

Hosu Seating

Known as crossover furnishings, Hosu was designed to cater to the increasing demands of the new work day, where “creative people value places to work in a relaxed mode at home, in the office and on the go” says Coalesse.

cordeditorial@cma.rs

96 September | 81

profile

Striving for success Danilo Drobnjak,

Corporate Affairs and Communications Manager for the Western Balkans, PepsiCo

“Sustained growth can only be set and maintained through empowered people who act with responsibility and trust,” insists this young PepsiCo manager

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Luka Sarac za Story

hough he may still only be 33, Danilo Drobnjak has already enjoyed many successes in his career in corporate affairs and communication. Revealing elements of his drive and motivation for CorD, he says: “I see personal advancement and improvement as something that is not just an option, but rather a mandatory and integral part of everyone’s personal development, irrespective of their profession.” Born 18th January 1979, I completed the Vršac Grammar School before graduating from the University of Belgrade’s Faculty of Economics and going on to complete Master’s studies in Corporate Affairs and Crisis Management at the Sapienza University of Rome. During my university studies I already started working as a consultant in the field of market analysis, engaged on numerous projects of the European Agency for Reconstruction, EAR, and the European Bank for Reconstruction and Development, EBRD. However, my first fulltime job only came in 2004, when I returned from my studies in Rome and was employed as Economic Advisor and Commercial Department Spokesperson at the Embassy of South Korea. Two years later I continued my career at one of the most reputable international consulting agencies Mmd (presently: Grayling) – advancing from a corporate affairs and communications consultant to Director for Serbia. After almost five extremely productive years spent in the employ of this agency, working for top class companies such as IKEA, Nokia, Holcim, Mars, Henkel, Telenor, Visa International, Google and many others, in 2010 I joined the PepsiCo family to take up the position of Corporate Affairs and Communications Manager for the Western Balkans, a position I still hold and was employed in at the invitation of PepsiCo, based on my previous experience and results. The role of corporate affairs and corporate communications manager at PepsiCo has given me the pleasure of being able to do what I love doing: to have an impact from the strategic level on the definition of the “colour, form, and tone” with which a company the size of PepsiCo communicates internally and externally, as well as the possibility to be a member of such a highly developed corporate culture as the one that exists in PepsiCo, which is truly a family in the more than 200 places

where PepsiCo is present worldwide. A special advantage of this job and my present position is “diversity and inclusion” – as one of the key values in our company and one which I am especially dedicated to, since it enables the continued exchange of practices and knowledge of cultural differences and value systems, while at the same time ensuring an equal opportunity for all these differences within the corporation. The only thing I have “lost” is time, as I would prefer the day to be slightly longer than 24 hours. However, I see that as “part and parcel” of contemporary business and high managerial positions. Although there is no universal rule on how to succeed in any job, there is something that I could recommend on the basis of my experience so far: to work continually to develop oneself in every respect; acquiring new knowledge, refreshing old knowledge, absorbing and analysing information and events. And, above all, doing and saying only what you really think in any situation, respecting and following individuals with authority based only on their knowledge, experience and straightforwardness, and by no means on formal positions, influence, mystifications or age, and making one’s point clearly to all of them. I see personal advancement and improvement as something that is not just an option, but rather a mandatory and integral part of everyone’s personal development, irrespective of their profession. It is my nature that ensures I like to quickly acquire, understand, adopt and direct myself towards further developing and practicing new knowledge. The working environment at PepsiCo definitely provides numerous preconditions for such development. Promotion is also important and makes sense only if it is part of the natural process of evolution of my own development or anybody else’s within the company, though again based only on professional criteria. Furthermore, it is of utmost importance to be true to oneself and, of course, to develop oneself continually. Be ready to undertake business risks which do not endanger anything vital, but can make a positive contribution. It is equally important to be in “a very friendly relationship” with one’s own self-confidence and to have the ability to make the most efficient use of resources available in order to ensure benefit for the company, yourself, in terms of your professional development, and the people you work with. Last, but not least, in the spirit of PepsiCo’s philosophy, you can set and maintain sustained growth only through empowered people that act with responsibility and trust. ■

for only

¤26

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