CorD Magazine 107

JORGOVANKA TABAKOVIĆ

MODELS OF A BETTER PAST JOVO BAKIĆ Sociologist

H.E. MR. ELDAR HASANOV Ambassador of Azerbaijan to Serbia

www.cordmagazine.com

Governor of the National Bank of Serbia (NBS)

LEADER IN DEVELOPMENT OF SOUTH CAUCASUS

SEPTEMBER ‘13 / ISSUE No. 107

THE NBS DID ITS JOB WELL

interviews opinions news comments events PRICE 300 RSD

NEBOJŠA ATANACKOVIĆ, PRESIDENT OF SERBIAN ASSOCIATION OF EMPLOYERS

Working for a Better Labour Law The amended Labour Law should be tailored to suit employee needs, not trade unions. Now is not the time to be a populist

GERMAN ELECTIONS 2013

Restore of Balance in Eurozone Outcome of this month’s vote is likely to sew harmony rather than stoke disagreement

GUERRILLA GARDENERS ARRIVE IN BELGRADE

Infusing Nature into City Drabness These young people have been planting flowers in depreciated non-descript urban areas, unannounced and without the permission from city authorities

IVO JOSIPOVIĆ PRESIDENT OF THE REPUBLIC CROATIA

We Share the Same Present and Future EXCLUSIVE cordeditorial@cma.rs |

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cordeditorial@cma.rs |

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COVER Ivo Josipović, President of the Republic Croatia

We Share the Same Present and Future I would not talk about Croatia as a leader but rather as a partner to all the countries in the region. The word “partnership” denotes equal relations and cooperation. Croatia will not pull anyone nor be anybody’s supervisor. It is up to each country to make an independent decision on its future.

contents

Page 8

6

New Dimension of Privatization Slobodan Georgiev

8

f aces & places

48

In fusing Nature into City Drabness

Guerrilla gardeners arrive in Belgrade

We Share the Same Present and Future

Ivo Josipović, President of the Republic Croatia

14

44

52

The NBS did its job well

Jorgovanka Tabaković, Governor of the National Bank of Serbia (NBS)

18

Global diary

20

Models of a better past

W orld Markets and Opportunities

Azerbaijan The Land of Fire

71

J ourney into the Realm of Luxury

Qatar

78 Working for a Better Labour Law

Nebojša Atanacković, President of Serbian Association of Employers

I t is Hard JUST TO ’BE’

47th BITEF

80

I mportant part of Serbia’s heritage Monasteries in Serbia

27

Business

Trusting Brands

Eurozone Breaks Chains of Recession

Comment page 6

82

Profile page 94

Great Britain, Great Education

Dusan Miric, CEO, British Academy for Business

42

after work

B ig Boys and Their Toys Techno Talk - Gadgets

EU Economy

39

CONTRIBUTORS: Rob Dugdale, Mirjana Jovanović, Radmila Stanković, Steve MacKenzie, Zorica Todorović Mirković, Sonja Ćirić PHOTOS: Zoran Petrović, Časlav Vukojičić

lector: Christen Bradley Farmer c.farmer@aim.rs PROJECT MANAGERS: Biljana Dević, b.devic@aim.rs Svetlana Okanović, s.okanovic@aim.rs Sandra Bandović, s.bandovic@aim.rs Irena Lalić, i.lalic@aim.rs EXECUTIVE DIRECTOR: Ruža Ristanović r.ristanovic@aim.rs GENERAL MANAGER: Ivan Novčić i.novcic@aim.rs

OFFICE MANAGER: Nataša Nešić, n.nesic@aim.rs

Alex Milićević, CEO of Havas Worldwide Belgrade

38

ART DIRECTOR: Branislav Ninković

editorial MANAGER: Tanja Banković t.bankovic@aim.rs

Restore of Balance in Eurozone

German elections 2013

36

ASSISTANT EDITOR: Jovana Gligorijević j.gligorijevic@aim.rs

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

Dialogue

30

EDITOR: Saša Marić s.maric@aim.rs

TRANSLATION: Snežana Bjelotomić

Jovo Bakić, Sociologist

24

July / August 2013

84

C hill out

90

K eep up with the comfortable and the stylish

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107 September 2013 | 5

comment

New Dimension of

Privatization I have been intently listening to our political (and other) elite for some time and what mostly sticks in my mind are their exclamations: “My government”, “My party!”, “My president!”, repeated day after day after day which gives a completely new dimension to the ’privatization’ of functions and institutions that has been going on in Serbia.

By Slobodan Georgiev

W

hat was in the past considered a brand of populism where it was really important for the leader to be identified with the institutions, now has become the norm to which even the middle-stream public figures in Serbia have been succumbing.

In the last few days, we have been witnessing one of the filthiest public tabloid-like debates between the management of FC Red Star (FC RS) and the president of the Football Association of Serbia (FAS) Tomislav Karadžić. The debate could come under the category of ‘privatization’ of public space. Civil servants have been acting like they own public institutions, treating them as their personal assets or companies, and even claiming that such behaviour was “prudent management”.

The plodding transition process in the FAS was in full swing when, in press releases, the management of FC RS accused Karadžić of being responsible for the irregularities in the national football league, claiming that this situation has been repeating itself ever since he became president in 2008, and that “the moment has come” for him to withdraw or be replaced. At first, Karadžić did not react because he was on holiday. He eventually spoke up and claimed that everything would be sorted out “at the Association’s forums,” but after a third public address by the management of FC Red Star, he responded with his own press release which turned the whole debate into a kind of bickering worthy of streetwalkers.

Karadžić replied to the “accusations of being responsible for irregularities in the league” by calling the deputy presidents of FC RS “gamblers, dealers and thieves.” Commenting on his own responsibility, he said that he would not let people worse than him tear him down because all he did was to prudently manage the Association, which was doing just fine.

The club’s management responded in fury to Karadžić’s letter. First, Nebojša Čović posed 20 questions to Karadžić with the purpose of revealing the Associations’s president as “an ex-jail bird” and “a man with very shady career in business who generated his wealth by stealing and smuggling.” The former president of the FAS and now president of FC OFK Beograd, Zvezdan Terzić also claimed that Karadžić did a lousy job, while urging him to leave because of his poor performance. But in the closing paragraph of his letter, Terzić even commented on Karadžić’s private matters, justifying it by claiming that Karadžić had done it first.

If you closely follow sports in Serbia, you probably know that a “debate” like this is nothing new. Throughout last year, the coach of the Partizan basketball club, Duško Vujošević, and the owner of the Crvena Zvezda Beograd basketball club (Red Star Belgrade), Nebojša Čović, was hurling insults at each other. The spat started with claims about a referee who ‘helped’ a certain team win, which was uncalled for, and

later turned into a personal reckoning between the two people who had known each other for decades, and who went so far to even dragging the respective family members and their medical history into their fight.

And while the public entertained themselves with the barroom stories which we all had heard before, more or less, what was really happening in the background was a process of further pollution of public spaces which, in the last twenty odd years, have been so defiled by violence and vulgarity that we can only wonder whether have we seen or heard it all.

Unfortunately, the Serbian public has become very jaded in cases like these since violence and vulgarity originate from the very top – in politics. It is very difficult to imagine having a person point a gun at somebody else during a talk show or hitting another speaker, which is exactly what Hague Tribunal indictee Vojislav Šešelj did back in the 1990s. But, several years ago, we did see the then construction minister Velimir Ilić kicking a reporter who was interviewing him. So, treating public institutions as if they were in your back yard seems quite normal.

The bickering between the leader of a football organization and the management of FC RS is a sort of discourse which dates back to a long time ago, and it really doesn’t come as a surprise that the participants of this verbal dispute have never stopped and thought whether it was appropriate to communicate in this way in public. All they wanted was to throw the opponent to the ground, make him bleed, and hurt him so much that he stands no chance of recovery, while doing it all from their

The question remains whether Mr. Karadzic made the accusations on behalf of “his” association, in which the representatives of FC Red Star also sit, or on his personal behalf

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soapboxes. Even worse, the so-called media have turned into advertising vehicles for such squalid bickering, not realizing that, by doing so, they are not providing new information, but turning up the volume that is already too high in this gladiator arena.

Coming back to the president of the Football Association of Serbia and his publicly revealing alleged “criminal” activities in a club which belongs to “his” organization, the question remains whether he made these accusations on behalf of “his” association, in which the representatives of FC Red Star also sit, or on his personal behalf.

If this is his personal view, he should resign before even deciding to speak publicly. This is probably what the football officials in the world would do, the very officials with whom Mr. Karadžić has been posing in photographs, whose definition of democracy in sport is entirely different. ■

cordeditorial@cma.rs |

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interview Ivo Josipović, President of the Republic Croatia

We Share the Same

Present and Future I would not talk about Croatia as a leader but rather as a partner to all the countries in the region. The word “partnership” denotes equal relations and cooperation. Croatia will not pull anyone nor be anybody’s supervisor. It is up to each country to make an independent decision on its future.

EXCLUSIVE

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C

roatia’s entry to the European Union is a big and important event not only for the country, but the entire region too. Without a doubt, many things will change - from market conditions and trade rules to other formats of international cooperation between Croatia and the rest of the West Balkan region. It remains to be seen what direction these changes are going to take and how that will reflect on the key political and social processes in the republics of the former Yugoslavia. Also, internal political issues of each of these countries are reflected on the international scene primarily because of geographical proximity and the fact that these countries rely on each other. As much as the situation in which the ex-Yugoslav republics have found themselves and their biggest problems being very diverse at the micro-level, the big picture

Democracy

Trust

Relations

Peace and stability serve the interests of all because this is a prerequisite for the development of democracy

Within several years, we managed to create an atmosphere of trust between the two countries

It is up to us to build good relations and to build the future jointly, without conflicts.

shows that they are mutually correlated along the principle of communicating vessels. The shared past is not bright at all, but each of these countries have a future to which to look forward and a future which they, as societies, can influence.

We are talking to the Croatian President, Ivo Josipović about these subjects, the certain European future for Croatia and the still uncertain European future of its neighbours, the remnants of the traumatic past, the economically challenging present times and the consequences of all of that on our respective societies and nations.

ter the war which claimed so many lives and caused such devastation.

■ Your first diplomatic visit after EU accession was,

as you previously had announced, to Bosnia and Herzegovina. For next autumn, you announced your official visit to Belgrade. Can this visit denote the beginning of the process of resolving some essential

■ What will be the role of Croatia, following its acces-

sion to the EU, with respect to the countries of the region that are still not in the Union?

- As early as July 1, the first day of Croatia’s membership in the EU, I invited all the presidents from the region in order to convey, together with Slovenian President Pahor, a message to all in the region that Croatia continues to be their friend and good neighbour that will support EU enlargement in the entire South-East Europe. In late July, we held another meeting in Brdo kod Kranja, which was also attended by French President François Hollande. Such meetings will be held regularly, with the participation of leaders from the EU and its Member States.

■ Do you see the role of Croatia as a leader in the

region, considering its EU membership, as an engine that will pull the others or more as a “border-guard” that will see to it that the others fully comply with the conditions?

- I would not talk about Croatia as a leader but rather as a partner to all the countries in the region. The word “partnership” denotes equal relations The best foundation for our relations is and cooperation. Croatia will not pull anyone mutual respect and the awareness that nor be anybody’s supervisor. It is up to each newly established states are equal partners country to make an independent decision on its future. As an EU member, and in the spirit of good neighissues between the two states and the initiation of bourly and regional cooperation, Croatia can politically advoa process of good neighbourly relations of mutual cate EU enlargement and assist if its assistance is requested. interests?

- I think that the process of resolving issues already started several years ago. At the very beginning of my term, in 2010, ■ How do you think the citizens of Croatia see this role? former President Tadić and I established a contact on our - Croatian citizens understand that it is in Croatia’s interest own, without mediators. Within several years, we managed that our neighbourhood and our region be calm and stable. to create an atmosphere of trust between the two countries.

Peace and stability serve the interests of all because this is a Very good cooperation was established in several important prerequisite for the development of democracy, stable socifields such as fight against organised crime and war crimes eties and economic cooperation. The 20th century was full prosecution. A number of important agreements were signed of conflict and violence in our region, and the time to ensure between Croatia and Serbia, even an agreement on military peace and prosperity to all in this part of Europe is in this cooperation, which was a surprise to many. Equally, mutual century. Our citizens know the value of peace, especially afcordeditorial@cma.rs |

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meetings, official and unofficial, take place regularly at a high level as well as on the lower levels where there is practical work on cooperation and implementation of the agreements.

■ How would you define the key political issues of the region today? Can the problems and the situations in Croatia, Serbia, Bosnia and Herzegovina, Kosovo, Montenegro, and Macedonia be compared today, and have they some common component?

10 |

language barrier among our peoples, and our economies are complementary. I soon expect to see companies from the region appear jointly on the markets that we cannot conquer individually.

■ Croatia has some

outstanding border issues with Slovenia, Bosnia and Herzegovina and Serbia. The case with Serbia is somewhat easier than with the others. However, how does this, with respect to all the three countries, influence diplomatic relations?

- The key issue of our region, the whole of Europe and the world is how to find a way out of the eco- The outstanding border nomic crisis and initiate issues that Croatia has a new development cywith its neighbours are cle that will renew pronot “hot” issues at this duction, open jobs and moment. The outstandincrease income. There ing issues are there, and can be no further develwe are all aware that they opment without a sound need to be resolved, but and prosperous economy. it is important to emphaThe way out of the crisis sise that these issues do Croatia will not pull anyone nor be is necessarily linked to not increase tensions. anybody’s supervisor. It is up to each other significant political If the outstanding isissues, including those sues cannot be resolved country to make an independent related to improving the amicably, then there are decision on its future relations in the region. recognized ways under Regardless of the autonomy of some political issues, in parinternational law for resolving outstanding issues, either at ticular those related to the legacy of the former Yugoslavia, it an international court or by means of arbitration. Croatia and is clear that one can hardly expect the strengthening of our Slovenia agreed on establishing their border line through an economies, the arrival of investors and the joint appearance arbitration procedure and both countries committed themon the third markets of our small economies without a good selves to accepting the decision once it is made. neighbourly policy.

■ Speaking about the relations in the region, what is ■ In this sense, what is it that allows people to view their foundation today?

- Certainly, the best foundation for our relations is mutual the area of the former Yugoslavia today as a whole, respect and the awareness that newly established states are irrespective of a common history and traumas from equal partners. Politics should be focused on the future and the past and the effort to overcome them? the benefit which each country individually and all of them - We share the same space and thus the present and the futogether can have from their good mutual relations. The free ture. It is up to us to build good relations and to build the flow of ideas, goods, culture, people, positive market comfuture jointly, without conflicts. One should not forget the petition but also cooperation among these relatively small past, we can draw lessons from history, but we should pricountries such as ours open many doors. In particular, the marily turn to resolving present-day issues and build a fuyoung generation should be encouraged to get to know their ture without violence, domination, discrimination but rathneighbours and cooperate with them. er a future of common cooperation. Cultural cooperation gets ever more intense, an increasing number of citizens ■ Where do you see potential obstacles? travel and visit neighbouring countries and communication and relations among ordinary people are the foundation for - Obstacles are there. They are, in the first place, the result building trust and good neighbourly relations. There is no of the past, especially of the wars. However, I am confident 107 September 2013 | www.cordmagazine.com

was reached has not gone down. Cooperation in all areas continues, and I believe that everybody can see that there is a mutual wish for these relations to stay good and be even better. The highest representatives of the Republic of Serbia accepted our invitation and joined Croatia’s celebration of its EU accession; also many tourists from Serbia have spent their summer holidays on the Adriatic this year too, and I am pleased to see that there have not been any incidents this summer.

I can see that economic bonds are intensifying; there are discussions about investments; there are companies discussing future investments. Once again, there were statements that met with unfavourable responses in Croatia. However, it may be that we needed some time to get to know each The key issue of our region, the whole of other and to remove iniEurope and the world is how to find a way tial distrust.

that we are stronger than the challenges that push us back into the past, seek some new retaliation or sow hatred. It is true that, at times, it is easier to hate than to be a good neighbour. However, I believe that reason and awareness, that peace and cooperation, are the only right way to prevail, to a large extent. Trust is the foundation of good relations. Trust is built not only in high politics but also in everyday life.

Trust is built by all people of good will: business people, tourists, athletes, scientists.

■ During the presi-

dential term of Boris Tadić of Serbia, it appeared that the foundation of your foreign policy was maintaining good relations with Serbia. What has changed with the change of government in Serbia?

- Since the beginning of my term, I set good out of the economic crisis and initiate a ■ Speaking about Serbneighbourly relations, new development cycle that will renew in addition to Croatia’s Croatian relations, one accession to the Euro- production, open jobs and increase income cannot avoid the quespean Union, as the most tion of Serb returnees important foreign policy goal of my presidency. On July 1, we and the issue of war crime trials. How do you see prosachieved one of the goals and became a full member of the pects for resolving this issue?

EU. However, with this, my other goal has not lost any of its - It is true that all refugees have not returned to Croatia, just importance. Former President of the Republic of Serbi, Boris as they have not returned to Bosnia and Herzegovina and Tadić was a very good interlocutor with whom it was easy Serbia either. Unfortunately, today, after so much time has to agree that it is important to build good neighbourly relaelapsed, we are aware that not all will return since they have tions and resolve outstanding issues among our countries. found new jobs in their new environments, some started After the change of government in Serbia, there were some families and found new lives. What is important is that Croastatements that raised doubts. However, this period is now tia today guarantees the return of all who wish to return. The behind us, and in my meetings with President Nikolić thus Croatian state gives guarantees for their property, a large far I have had the impression that there is a wish to further number of houses have been reconstructed, and their secudevelop and improve relations between Croatia and Serbia. It rity is unquestionable. But the problem that refugees face was similar with a number of visits by government and miliis the problem that all Croatian citizens face, and this is the tary delegations of Serbia. difficult economic situation with scant prospects of finding a job. But I repeat, Croatia guarantees the security and prop■ Approximately a year ago, you said that the proerty to all Croatian citizens who fled from Croatia as well as a high level of rights for members of national minorities. cess of improving relations between Serbia and When it comes to crimes, I hold the view that it is important Croatia cannot be stopped. The relations are good, to prosecute all war crimes, regardless of who the perpetrahowever their atmosphere, since the change of govtors and the victims are. This is a clear policy in Croatia. Our ernment in Serbia, has been quite cold and reserved. judicial institutions are working on it. It is true, after many Do you agree with such an assessment and are imyears, it is not always easy to find culprits for individual misprovements in this respect possible? deeds. Let me note that there are many crimes against Cro- The relations are good, and the level of cooperation that cordeditorial@cma.rs |

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our society, including successful use of EU funds.

ats that have been left unpunished. It is also important that Serbia and Croatia cooperate in prosecution of war crimes.

■ What are, in your view, Croatia’s weaknesses that become visible with its membership and which need to be worked on?

■ Taking a long-term view, independently of circumstances and relations of daily politics, what does EU accession mean for Croatia?

- For us, the EU was primarily important for the sake of achieving peace and stability for our citizens. Although the EU is currently going through a period of recession, one should still not forget that this is a community of states and peoples who have ensured peace and progress on our continent in the past 60 years, and Europe cannot remember any such long period of peace. The EU guarantees a high level of protection of human and civil rights to its citizens, which is of paramount significance to us. Finally, one should emphasise that developments in the EU had an impact on Croatia and on our entire region. Is it not better, then, to sit at the European table and decide on our future together with our European partners than to remain isolated at the periphery of this large Union?

■ Which are the new chal-

The EU is for us a peace project, this is the project that ensured peace in Europe over the last six decades, and we are confident that it will ensure peace in our part of Europe in the course of following decades

lenges awaiting the country now, after accession, and which are the major problems that Croatia is about to face during its first year of EU membership?

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- As I have said, the largest challenge will be to find a way out of the economic crisis and lay sound foundations for the economy. As far as the first year of EU membership is concerned, I do not expect any problems, but I expect Croatia to be a very active member who will play a constructive role in the Union. Let us not forget that Croatia had the strictest criteria for membership, and we can say that we joined the EU being as prepared as maybe no other member has been prepared so far. Still, the largest challenges will be how to be successful in market competition on the huge European market given very tough competition, and further adjustments of 107 September 2013 | www.cordmagazine.com

- Croatia should continue combating corruption. It should, to the fullest extent possible, exploit resources from the European funds both for economic development and for various infrastructural projects, development of cross-border cooperation and for the welfare of its citizens. European goals such as solidarity, social justice, protection of human freedoms and rights will always be goals that will never be fully attained, but we should strive to ensure them for as large a number of people as possible.

In particular, the weaknesses linked to our economy and the competitiveness of our companies are the most visible. Also, the investment climate in Croatia is not as we would like and need to have.

■ Considering the overall

economic situation in the EU as well as global situation in this field, how do you explain the fact that in our region there is actually no relevant anti-EU or Euro-sceptic political option?

- I believe that any serious politician and political party can understand how important it is to develop democracy and protect fundamental human rights and freedoms. The European Union does this, and during the Union accession process, these goals are fulfilled. Therefore, all those who wish their citizens well understand how important that is.

As I pointed out to many journalists who interviewed me in the run-up to Croatia’s accession to the EU, the EU is for us a peace project, this is the project that ensured peace in Europe over the last six decades, and we are confident that it will ensure peace in our part of Europe in the course of following decades. After this, the EU is a project of economic development, democracy, human rights and cooperation in culture, science and other fields. ■

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interview Jorgovanka Tabaković, Governor of the National Bank of Serbia (NBS)

The NBS

did its job well We announced a year ago that we would return inflation within the target limit by the end of 2013, now we are not only certain of doing that, but that goal will be achieved even faster. I believe that the restructured government will decisively carry out the announced short-term measures in the field of public finance and begin implementing structural reforms with determination. Borrowing easily in order to spend easily, because there is no courage and determination to take the necessary steps, should be consigned to history

W

By Miša Brkić, Photo by Marina Lukić (Gloria)

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e are aware of the danger that behind the necessary measures lies the possibility of increasing the involvement of speculative capital. However, a restrictive monetary policy, also embodied through a relatively high benchmark interest rate, along with lowering the inflation rate, is aimed precisely at reducing the existing instability and imbalance, which can only inspire confidence among serious foreign investors. Thus Jorgovanka Tabaković, NBS Governor, responds to some of the remarks of monetary policy critics.

Responding to the question of whether the NBS will manage to keep inflation at the planned level, given the current price trends and announcements of autumn price increases, she replied: “Inflation will return within the permitted deviations of the tar-

Policy

Dinar

The NBS’s conducted monetary policy and the measures taken have done their job well

The situation on the global financial markets gradually calmed The NBS did not withdraw the entire liquidity in July and the dinar strengthened slightly against the euro through its securities in the previous period

get limits, 4 plus or minus 1.5 per cent, by October and after that it will continue to move within those limits. To remind you, as of July the mid-year inflation rate was 8.6 per cent, but as much as 6.9 per cent of that growth occurred in the period from August to October last year. In the last eight months, thanks to the monetary policy measures taken, the average monthly inflation rate was 0.2 per cent and in the coming months, according to our estimates and the correction in energy prices, inflation is expected to fall faster than in the previous half of the year.

Liquidity

interest rate, investors are refraining from borrowing and financing new development projects.

- I think that the behaviour of investors is determined by other much more important factors, primarily their perception of risk, or rather that the decisive influencing factor is their assessment of the country’s macroeconomic stability. A restrictive monetary policy, personified by a relatively high benchmark interest rate,

■ How satisfied are you with the current pace of infla-

tion and the role of the NBS in keeping inflation at a relatively low (though still higher than planned) level?

- We announced a year ago that we would return inflation within the target limit by the end of 2013, now we are not only certain of doing that, but that goal will be achieved even faster. As such, I can say that the NBS’s conducted monetary policy, and the measures taken have done their job well. However, price stability depends on exogenous factors like the high volatility of food prices and the unpredictability of movement of regulated prices, which are also segments in which we need to continue and improve cooperation with the government. We expect regulated prices to have increased by about 10 per cent this year and to have contributed two percentage points to inflation. I would highlight that this will not threaten the return of inflation within the target limits, but in bringing its measures the National Bank would certainly help to have a clear plan of adjusting regulated prices in the long term. The stability of public finances is also important because of the perception of risk and its impact on the exchange rate, which, among other things, im- I think that the behaviour of investors is pacts on the prices of imported goods. determined by other much more important As for the weakening of the dinar at the end of May factors, primarily their perception of risk, and June, this was primarily caused by instability on world financial markets. I don’t think that will or rather that the decisive influencing impact on the growth of import prices to a great factor is their assessment of the country’s extent, due to the limited ability of importers to inmacroeconomic stability crease their prices under conditions of low demand. coupled with a decrease in the inflation rate, is aimed precisely at ■ Will the Executive Board of the NBS overturn the reducing the existing instability and imbalance, which can only inspire confidence among serious foreign investors. benchmark interest rate this year, which is still “holding” at 11 per cent, and, if so, when?

- It will come to that if inflationary pressures continue to fall, which depends on the measure of the central bank, but also on the impact of the overall economic policy and international movements, primarily on financial markets.

■ Do you think that such a high benchmark interest rate

represents an obstacle to much needed investment?

The impression is that, because of this high benchmark

■ Critics of the work of the governor and the NBS consider that such a high benchmark interest rate favours lower inflation on the one hand, but encourages the entry of speculative capital into the country on the other.

- We are aware of the danger that behind the necessary measures lies the possibility of increasing the involvement of speculative capital – here of course I mention speculative in a market sense.

That is precisely why the NBS did not withdraw the entire liquidcordeditorial@cma.rs |

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lasting stability of the foreign exchange market, however, it is important to reduce external imbalances, and we have good results on that front this year. In the first half of the year the current account deficit was reduced to 53.5 per cent compared to the same period last year and that was primarily based on an increase in exports.

ity through its securities in the previous period. That was enough to control the level of liquidity, but also to deter “speculators”, because the executive rate - at which securities are purchased from the NBS – is less than the benchmark interest rate.

■ Is the current inflation level due to the influence of a low exchange rate and high benchmark interest rate? Because of that some critics are prepared to accuse you of leading a monetary policy that favours and assists debtors?

- The decisions and measures of the National Bank are motivated exclusively to achieve its legally established goals - price stability and the stability of the financial system. Establishing such an economic, business and investment environment is for the benefit of everyone – businesses and citizens, creditors and debtors.

■ Has the NBS succeed-

■ How would you com-

ment on proposals that good banks be required to set aside a lower mandatory reserve?

- The National Bank is willing to listen to and consider all proposals, so we will also analyse this one and decide on our stance.

■ To date the government

In the first half of the year the current account deficit was reduced to 53.5 per cent compared to the same period last year and that was primarily based on an increase in exports

ed in stopping speculative operations with the currency exchange rate or were the recent fluctuations of the dinar against the euro a result of something else?

- Movements on the foreign exchange market in May and June reflected the movements of international financial markets, not only in Serbia, but also in the region. An additional element in the case of Serbia were the ratings regarding the sustainability of public finances and the necessity of adopting additional fiscal consolidation measures, which were reflected in the perception of risk and movements on the foreign exchange market. Reacting in a similar fashion to other central banks in this period, the National Bank intervened by selling currency on the foreign exchange market.

The situation on the global financial markets gradually calmed in July and the dinar strengthened slightly against the euro.

What the NBS did, and which certainly contributed to the stabilisation of the foreign exchange market, was to bolster control of foreign exchange and all cash flows on the basis of which we monitor liquidity and respond in order to minimise the impact on the foreign exchange market, while the interventions of the National Bank are gauged according to the real needs. For the 16 |

hasn’t done a lot in terms of necessary reforms of the public sector, the pension fund, labour legislation, the labour market and others. How much does government inaction hinder the NBS’s efforts to stabilize inflation and the exchange rate of the national currency?

107 September 2013 | www.cordmagazine.com

- The effectiveness and costs of monetary policy also depend on the macroeconomic environment, which is also largely created by the government through its measures. If that environment is more stable and the economy more competitive, monetary policy will – alongside a lower benchmark interest rate and reduced costs – accomplish its goals in terms of price stability and vice versa. Consequently, it will contribute to the success of the government’s economic policy. You know that the economy functions on the principle of communicating vehicles and everything has its price.

■ What kind of threats to the NBS could come from the government in the near future?

- I do not see any sort of “threats” and it’s not about that. We have already discussed the need for fiscal and monetary policy to act in a synchronised way towards macroeconomic stability and I believe that the restructured government will decisively carry out the announced short-term measures in the field of public finance and begin implementing structural reforms with determination.

I can only repeat that in that case the National Bank will achieve

stable low inflation more quickly, with lower costs and fewer consequences for economic activity, which is its constant goal.

■ Does it seem to you that debt is a major problem in Serbia

– indebtedness of the state, indebtedness of the economy and the indebtedness of citizens? And is it not time to live from work and not on credit? Is the state acting as a bad example to citizens by borrowing so much and so often?

■ Do you think that a lot of money for monetary policy measures is immobilised with high liquidity and that the NBS should give in to the business community’s request that some of this money be made available to the banks and the economy?

- In our country illiquidity is a structural problem – illiquidity is expressed in the economic sector, while the banking sector has high liquidity. However, what is the meaning of the populist idea that part of the - Debt is an evil friend, but that NBS’s money “should be made debt which cannot be repaid I believe that the restructured available” to banks and the and which covers spending that government will decisively carry economy? How can someone’s does not and will not be covout the announced short-term money be made available to ered. This is true for the state someone else at all? Would you, and for businesses and citizens. measures in the field of public for example, as a depositor, be As long as the borrowing of finance and begin implementing at ease if the National Bank did money is prudent and economistructural reforms with that with your savings, as was cally calculated to create new once done with all the known values, profitable investments determination consequences? The only proper and jobs, for development, in way is to ensure macroeconomic stability in order for the liorder to live better from one’s improved work, then such credit or debt is something that contributes to progress. And again that quidity from banks to be transferred to the economy through applies to everyone – from the state to the individual. I can only increased lending, stimulating growth and enabling increased agree with you that borrowing easily in order to spend easily, beprofitability for both businesses and banks. The most urgent cause there is no courage and determination to take the necestask for the NBS and the government is to provide just such a sary steps, should be consigned to history. macroeconomic framework. ■

cordeditorial@cma.rs |

107 September 2013 | 17

Problem “The EU will face problems similar to the US: an increasing gap between the citizens and decision makers in Brussels and a perceived or even real lack of democracy.”

— David Korten, American economist and former Professor of the Harvard Business School

global diary 03.08.2013

Mugabe Won Elections Robert Mugabe has won Zimbabwe’s presidential election with 61 percent of the vote, compared to 34 percent for his challenger and Prime Minister Morgan Tsvangirai, elections officials said. The Zimbabwe Electoral Commission results showed Mugabe’s Zanu-PF party won 158 of the 210 parliament seats, giving it a two-thirds majority that enables it to make amendments to the new constitution and existing laws.

The results were declared after Tsvangirai’s Movement for Democratic Change (MDC-T) announced

at a news conference that it “totally rejects the election”. Tsvangirai, who has called the elections a “farce”, told a news conference in Harare, the capital, that he would exhaust all legal remedies to challenge the election outcome.

The MDC leader said his party would not participate in any government resulting from what he called a “fraudulent” election.

Originally named the MDC, the party’s name carries ‘T’ for Tsvangirai after a breakaway faction formed a rival party called MDC-N whose leader, Welshman Ncube, was one of the candidates in the July 31 elections.

07.08.2013

Obama Cancels Talks with Putin

USA President Barack Obama formally canceled a muchdiscussed visit to Moscow next month for talks with Russian President Vladimir Putin, citing a lack of progress in bilateral relations since Putin regained the 18 |

Prince William takes break to play polo

03.08.2013

William and Harry with with team-mates Mark Tomlinson and Luke Tomlinson

New dad Prince William made his first public appearance since the birth of his son George at a polo match on August 3. William took a break from parenting duties to play in the Audi Polo Challenge at Coworth Park, Ascot, Berkshire alongside brother Harry, admitting he would be picking nappies up on his way home.

The 31-year-old, who scored the winning goal for his team, was presented with a mini polo stick for Prince George by Audi UK director Martin Sander after the match.

William jokingly asked if it was nappies, quipping: “I’ve got to pick some up on my way home.”

The royal also admitted it was “good to get out of the house” for an afternoon. But meeting guests afterwards, he added: “I’ve got to make sure I’m not too late back.” presidency a year ago.

Obama will still attend a G-20 summit in St. Petersburg in early September, but now will go to Sweden beforehand instead of

stopping in Moscow to meet with Putin, the White House announced.

“Following a careful review begun in July, we have reached the conclusion that there is not enough recent progress in our bilateral agenda with Russia to hold a U.S.-Russia Summit in early September,” a White House statement said.

In addition, no one-on-one meeting between Obama and

107 September 2013 | www.cordmagazine.com

Putin is scheduled for the G-20 summit, a senior administration official told CNN on the condition of not being identified. However, the two leaders would see each other at group meetings in St. Petersburg.

The White House statement noted progress in relations with Russia during Obama’s first term, much of it when Dmitry Medvedev was president and Putin was prime minister. Putin regained the presidency in May 2012.

10.08.2013

Rogge Asks Russia to Clarify Gay Law The head of the International Olympic Committee has asked Russia to explain how its new law on gay “propaganda” might affect next year’s winter games.

Jacques Rogge said in Moscow that Russian written reassurances over the Winter Olympics needed

clarification. “We don’t think it is a fundamental issue, more a translation issue,” Mr Rogge added. Gay rights campaigners have called for the games to be moved to another

country in protest at the law. The law, passed in June, prescribes heavy fines for anyone providing information about homosexuality to people under 18. Critics say its loose interpretation effectively hinders any kind of public gay rights event in Russia.

The Sochi games will be the biggest international sporting event in Russia since the Moscow Summer Olympics of 1980.

12.08.2013

Dutch Royal Prince Dies at Age 44 Prince Johan Friso, the former Queen Beatrix’s second son, died of complications 18 months after a skiing accident that left his brain gravely injured, says the Dutch royal house. He was 44. The royal house said the prince, known as Friso, died of complications from the accident, without giving more details. It said he had never regained more than “minimal consciousness.”

Friso was struck by an avalanche while skiing off-trail in Lech, Austria, Feb. 17, 2012, and was buried until rescuers pulled him from the snow, unconscious,

20 minutes later. He was resusci-

Democracy “In the EU you have half a billion people who share a common belief in democracy, in rights, in the kind of economic life we want.”

— Catherine Ashton, High Representative of the EU for Foreign Affairs and Security Policy

tated at the scene and flown to a hospital, but remained in a coma for months.

His death Monday, though not unexpected, “still comes as a shock,” said Prime Minister Mark Rutte.

August 2013

Eurozone Growth

Eurozone business activity grew at its fastest pace for 26 months in August, according to a closely-watched survey. The Markit composite purchasing managers’ index - which includes manufacturing and services - rose to 51.7 points, from 50.5 in July. A number higher than 50 indicates growth.

The news boosted European stock markets, which rose in early trading, despite falls in Asia amid fears the US may scale back its stimulus programme.

Markit said the PMI for the services sector, which accounts for the bulk of economic activity, rose to 51 in August to a 24-month high, from 49.8 in July.

The manufacturing sector PMI hit a 26-month high of 51.3 points, up from 50.3 in July. However, a breakdown of the figures showed that while Germany continued to expand thanks to stronger export activity, France contracted, falling to 47.9 in August from 49.1 in July.

policy forum, said that Chinese Tax Commissioner Wang Jun will sign the convention on Mutual Administrative Assistance in Tax Matters.

Tax avoidance is frequently linked to corruption. Illicit funds, earned from crime, corruption and tax evasion, often are moved out

a country via tax havens and by using shell companies. Sharing tax information can be an important tool in helping to track these funds.

Global Financial Integrity, a financial watchdog group, has estimated that more money flows out of China from illicit financial activity than any other developing

country. Its latest report estimates the losses between 2000 and 2011 at $3.79 trillion 22.08.2013

Hosni Mubarak Released From Jail Former Egyptian President Hosni Mubarak has been released from prison after appealing against his detention. He was taken by helicopter from Cairo’s Tora prison to a hospital and is later expected to be put under house arrest.

Mr Mubarak, 85, still faces charges of corruption and complicity in the killing of demonstrators during the protests that toppled him in 2011. His release is seen by many as a sign that the military is rolling back the changes that flowed from the uprising.

Egypt is currently under a state of emergency amid the bloodshed which has accompanied the military-backed interim government’s

detained, including its most senior leader Mohammed Badie, who was wanted over alleged incitement to violence and murder.

24.08.2013

Manning's Gender Transition

Oscar Pistorius formally charged with murder 16.08.2013

21.08.2013

China to Join Global Crackdown on Tax Evasion China has agreed to join the international effort by the Group of 20 leading economies to combat tax evasion by signing an agreement to share tax records. China’s decision means that all G20 countries now have agreed to cooperate on tax avoidance, a priority set by global leaders to address the causes of the 2007-2009 financial crisis and to help combat corruption.

The Organisation for Economic Cooperation and Development (OECD), the global economic

crackdown on Islamists opposed to the army’s ousting of Islamist President Mohammed Morsi on 3 July. Hundreds of members of the Muslim Brotherhood, to which Mr Morsi belongs, have been

Oscar Pistorius, the South African paralympian accused of killing his girlfriend Reeva Steenkamp on St Valentine’s Day, has been charged with murder and possession of illegal ammunition. The Olympic and Paralympic star was handed papers by a magistrate setting out that he stands accused of committing pre-meditated murder on Valentine’s Day by firing four shots at Steenkamp with a 9mm pistol through a locked toilet door at his luxury home in Pretoria, a suburb of Johannesburg. The prosecutor in the case said the dates of 3 to 20 March 2014 had been mutually agreed for the trial. The prosecution handed a copy of the indictment to Mr Pistorius. Mr Pistorius denies murdering Ms Steenkamp.

He says he shot her after mistaking her for an intruder.He was granted bail in February and has since resumed some low-key training. cordeditorial@cma.rs |

Bradley Manning who has been sentenced to 35 years in prison, is the first transgender military inmate to ask for hormone treatments, officials say, a request that could lead to a legal showdown over how — and if — the soldier convicted in the WikiLeaks case will be allowed to live as a female behind bars.

Current Pentagon policy dictates that transgender soldiers are not allowed to serve, and Manning won’t be discharged until being released from prison and all appeals are exhausted. Furthermore, the military does not allow soldiers to undergo hormone treatments while in the all-male prison at Fort Leavenworth, Kansas — though this is the first time officials have heard of a request for such treatment, said Maria Tolleson, a spokeswoman with the Army Medical Command in Arlington Virginia.

107 September 2013 | 19

By Jovana Gligorijević, Photo by Zoran Petrović

interview

Jovo Bakić, Sociologist, profesor on the faculty of philosophy on university of belgrade

Models of a

better past

S

We have to come to terms with the significantly lower “prestige power” of the successor states compared to Yugoslavia. In particular, the functions of the welfare state - health, education, social assistance – have weakened.

In that sense, the legacy of Yugoslavia represents a possible source of inspiration for the necessary social reforms in the near future, though certainly it is not the main one, and it mustn’t be the only one

ociologist Jovo Bakić acts publicly as a political analyst who most often deals with explaining the current political moment and offering forecasts that can be based on that. However, as Bakić gained his degree, masters and Ph.D. studying topics directly related to the theme of Yugoslavia (its emergence, existence and disappearance) he is the right interlocutor for the ongoing processes taking place in the region. As such, we spoke to him about the political and social issues affecting the region, their mutual connections, need and reasons for the absence of closer economic links, as well as the future of the region that used to be called Yugoslavia and is today known as the Western Balkans.

■ On several occasions

recently you’ve been dealing with Yugoslavia as a theme. Does dealing with 20 |

that issue necessarily means holding on to the past, or rather how does it reflect the present and the future, primarily in the political domain?

- Yugoslavia is a country with a duration that almost coincides with that of the short 20th century (1914-1991). It was created as a child of World War I, disappeared in the wake of aggression in the turmoil of World II and due to changes in the international balance of power at the end of the Cold War. It has been the focus of my academic interest for the last 20-odd years. It is to be understood that dealing with Yugoslavia is primarily related to history, but the interest in a better past is due to the shaky present and highly uncertain future. In It is desirable for the unhealthy division fact, compared to the succesof a “first” and “second” Serbia to be sor banana-states, Yugoslavia represented an organised and slowly and gradually overcome relatively advanced political

107 September 2013 | www.cordmagazine.com

community. King Alexander II Karađorđević and Josip Broz ’Tito’ were distinguished statesmen of their time and the latter certainly had exceptional diplomatic qualities and made the state more significant than its size and population alone could guarantee.

Today’s political leaders, businesses and intellectuals of Serbia, just like the other successor states, have to come to terms with the significantly reduced “prestige power” of the Yugoslav successor states. In particular, the functions of the welfare state - health, education, social assistance for the most vulnerable members of society - have weakened. In that sense, the legacy of Yugoslavia represents a possible source of inspiration for the necessary social reforms in the near future, though certainly it is not the main one and it mustn’t be the only one.

ethnic or national communities. However, when it comes to violations of the universal principles of humanity, then, of course, even national interests cannot be satisfied, because indulging in a crime in the name of the nation will inevitably be avenged by the nation itself in the future.

■ On the other hand, we cannot deny the existence of cultural connections and exchanges, though it could be argued that what might be referred to as a unique “Yugoslav cultural space” never existed. As such, what is this thing we have had in the last decade? Something that remains at the level of a subculture, a reaction to political events or indeed the forming of a unique cultural space?

■ Are the political processes currently being undertaken in

the countries of the former Yugoslavia interconnected, even though they differ at the micro level, when viewed locally?

- They are definitely connected, though passionate nationalists would like for them to have nothing to do with one another. Quite simply, 70 years of living together cannot be simply rubbed out in a historical perspective with an eraser, just as structural similarities to the position on the periphery of the world capitalist system cannot be overlooked.

■ How do you interpret the lack of public interest in each

of these countries for events occuring in the neighbourhood (in the sense that, for example, Serbian citizens are better acquainted with what is going on in Egypt than they are with the names of the members of the tripartite presidency of Bosnia and Herzegovina)?

- It is possible that the example of the tripartite presidency of Bosnia and Herzegovina is not quite appropriate, because objectively it influences events in Bosnia and Herzegovina as much as the Presidency of Yugoslavia influenced events in Yugoslavia, in other words, as little as possible. However, as an In the economic domain, the successor example, in most cases Serbian citizens know that states –except Slovenia – still cannot the main Serb politician in Bosnia is Milorad Dodik and they are quite proud – as a result of the reign of achieve the GDP of 1989, while even banal nationalism – of his political power compared Slovenia can only dream of full employment to that of Zlatko Lagumdžija and Bakir Izetbegović.

So, there is interest, but it is nationally tainted. In other words, Ser- There was a Yugoslav cultural space both in the Kingdom of Serbs, bians know about Dodik, but it is questionable whether they are Croats and Slovenes (Yugoslavia) and the former socialist Yugoslaat all interested in remembering the names of Bosniak and Croat via, and even before 1914 – or before the creation of the Kingdom politicians in Bosnia and Herzegovina. of Yugoslavia (one should recall, for example, Ivan Mestrović and his then imaginary “St. Vitus Day temple,” which Dimitrija Mitrinović ■ From an economic perspective, those markets are inand others celebrated as the Apostle of Yugoslavia before World War I) – to a much greater extent than there was an economic or polititerdependent. What is it that still prevents – primarily cal space. Certainly, there was the so-called elite culture that repubsocieties, but then also states – from moving towards lican national political actors (primarily reflected in the most deeply unified functioning, guided by common interests? provincial national and provincial academies of sciences and arts) - As I have already clarified, nationalism – sometimes banal, sought to favour in order to terminate their relationships with Yusometimes burning – is a major obstacle to rational behaviour, be goslavism, but subcultural youth trends in rock culture, unofficial or that in business or in other areas of social life. In fact, nationalism semi-official trends in literature and art, as well as great successes often clouds reason and makes it difficult, sometimes even imby national sporting teams, broke through ethno-federalist barriers possible, for people to see that specific national aspirations are of the sclerotic socialist system that was basically established by the sometimes (though of course not always) incompatible with uni1974 Constitution and which took root in the 1980s. versal human values and common interests that are greater than cordeditorial@cma.rs |

107 September 2013 | 21

Unfortunately, the supremacy of nationalist political factors of social life over all others prevented the liberation and penetration of positive cultural and political energies from the margins to the centres of social life. Today we are witnessing a similar process, but the EU, which contributed significantly to the collapse of Yugoslavia and toward which all the successor states are heading, paradoxically facilitates the survival and strengthening of these ties.

■ In the past year, with the

rise to power of the Serbian Progressive Party and the accelerating of key political processes, the political paradigm has completely changed and essentially (though perhaps not formally) removed the boundaries between the socalled “first” and “second” Serbias. How does that impact on the society?

tions on the basis of whether they influence the carrying out of justice in order to protect their members, or whether they are incapable of dealing with “delinquents in their midst” even before the judiciary has the last word.

■ Under “key political processes”, we refer to the Kosovo issue and EU integration.

Progress has been made in both of these directions. What is the realistic significance of this progress, when we step back from the psychological aspect, which is important because something finally progressed after being stuck for over a decade?

- The significance is huge, because it is no longer a question of who are the “patriots” and who are the “traitors”, but rather who knows how to do the job with which they are tasked and whether they do it properly, that is in accordance with legal and ethical norms.

- It is desirable for the unhealthy The achievements of socialist division of a “first” and “second” ■ In the daily Politika you reSerbia to be slowly and gradually Yugoslavia are related to some overcome. In fact, it is very bad if cently focused on the case of legacy of the Second Industrial the quality of the art or science little Tijana Ognjanović from produced, such as the valuing Revolution, which the communist- Belgrade and baby Berina of scientific and artistic works, Hamidović from Sarajevo.

Yugo-nostalgic are reluctant to is carried out almost exclusively Both of them died because of acknowledge according to political criteria. Aladministrative obstacles that though political aspects can never and nowhere be completely prevented them from gaining access to adequate treatexcluded, nevertheless cognitive, aesthetic and ethical criteria ment. You found the causes in the nationalist terror we must prevail over political criteria in the evaluation of scientific found ourselves in during the early 1990s, with the conand artistic works. Similarly, in politics now one can more readily clusion that the Balkans has regressed by a century. Do observe the performances and personal integrity of each individyou see that regression at all levels? ual minister or MP, instead of forgiving someone for commiting - Unfortunately, huge regressions are evident everywhere. At the theft and/or being incompetent just because they are “patriots” state and political level, the successor states are much weaker or “Europeans”. than the Kingdom of Yugoslavia and the socialist republics. In the economic domain, the successor states – with the exception of ■ What do these types of trade-offs bring in a political Slovenia – still cannot achieve the GDP of 1989, while even Slovenia can only dream of the full employment it enjoyed during the sense, in terms of practical politics and the direction in socialist period (currently every tenth member of the Slovenian which the country is heading? workforce is unemployed). In the cultural domain, narrow-mind- It’s a good thing that there’s no more “monopoly on being Eued and uninspiring parochialism, coupled with the rise of comropean”. Until last year the champions of corruption, and often pletely provincial achievements, just because they are “ours”, is barely disguised theft, were able to hide behind their alleged Euvery suffocating. This is also how the deeply conservative and ropeanism label. That is no longer possible. Now all the major overly nationalistic pseudo-cosmopolitan embodiment of the political parties want to lead Serbia into the EU, so citizens can celebration of 2000 years of Christianity, born in “our region”, and should pay attention to the theft and various other misdeeds needs to be understood. committed by their officials and duly punish the parties at elec22 |

107 September 2013 | www.cordmagazine.com

■ Is there progress anywhere?

- Progress is linked to the general achievements of mankind in the framework of the great information revolution of the past few decades, although Serbia even lags behind in this area, because over half of the population still is not using the internet. Of course, the achievements of socialist Yugoslavia are still largely related to the application of some legacy of the Second Industrial Revolution, which the communist-Yugo-nostalgic are reluctant to acknowledge.

■ The current arrangement

polemics about nationalism in the region no longer existing. Has it merely changed shape or do you agree that it is now extinct?

- There are many who are well-meaning but ignorant, on the one hand, while on the other hand there are skilled nationalist demagogues. The first would like to wake up in a country that has never existed and does not exist today, while the others would like to convince the public that nationalism does not exist, because then even they could not be nationalists. nationalism of far-

The extreme right organisations has been marginalised, but nationalist energy is inexhaustible and easily awoken

of political powers and the values they represent support the thesis that nationalism, in its most primitive and most dangerous form, has been pushed to the political margins. What do you think about that?

- Certainly the extreme nationalism of far-right organisations has been marginalised. However, nationalist energy is inexhaustible and easily awoken, provided there are sufficiently skilled and charismatic politicians into international circumstances whose hands would play. Thus, we are witnessing only the banalising of nationalism and its cooling and civilising.

■ Several media companies in Serbia recently published

■ Considering the current

political situation, could you imagine a scenario in which nationalism would raise its ugly head again? What could be the spark for something like that?

- Such a scenario is easy to imagine. It would be enough for the balance of power in the world to change, which would lead to some kind of strengthening of nationalist rivalries and mutually conflicting claims, and probably to armed conflict; or for there to be some sort of serious incident, such as the burning of monasteries in Kosovo or the expelling of the members of some nation from their ancestral homes, or an attempt to break-up Bosnia & Herzegovina. ■

cordeditorial@cma.rs |

107 September 2013 | 23

interview

■ By Zorica Miša brkić, Photo Zoran Petrović

Nebojša Atanacković, President of Serbian Association of Employers

Working for a

Better Labour Law In Serbia, employers are stuck with employees regardless of their business success or lack thereof. The amended Labour Law should be tailored to suit employee needs, not trade unions. Now is not the time to be a populist.

I

n its existing form, the Labour Law is a big obstacle to higher employment, reducing business costs, cutting red tape and eliminating unreported employment. This is the opinion shared by 202 company directors and general managers of small, medium and large enterprises who took part in a survey conducted by the Serbian Association of Employers.

Not being able to work as a temporary employee longer than a year, lack of flexible work formats, mandatory disbursement of severance pay for each year of employment to redundant workers and dozens of slow and obsolete administrative employer-employee procedures significantly hinder business and generate huge overheads for companies in Serbia.

The Serbian Association of Employers wants the amendments to the Labour Law to be written by September 1, 2013 the latest. Here are some of them: the length of a temporary work engagement should be prolonged from one to three years; employers should no longer

24 |

107 September 2013 | www.cordmagazine.com

be obligated to disburse severance pay to redundant workers which covers all of the worker’s employment history but only the time he or she spent working for that particular employer; introducing flexible employment formats and the possibility of cutting down working hours to fewer than eight (commensurate to guaranteed labour rights); employees should be allowed to work more than eight hours overtime a week if they want to; employed women should be allowed to work four hours a day, if desired, even before their maternity leave expires on the condition that employers and the state split the payment of the relevant income tax and capital contributions fifty-fifty; employees should be given awards and bonuses if they substantially contribute to business success of their employers; more flexibility in transferring workers from one company to another in accordance with realistic needs and financial standing of that company.

President of the Serbian Association of Employers Nebojša Atanacković talks to CorD about the flaws and announced amendments to the Labour Law. “We have already talked to the parliamentary Economic Committee about these amendments. If the 2002 Labour Law, which was reformative, was still in force, we wouldn’t have to have amendments now since this law would have been satisfactory both for foreign investors and domestic business people.

Immediately after the Law was adopted, Vojislav Koštunica and his government came to power and Slobodan Lalović was appointed labour minister. It was Lalović who insisted on amending the 2002 Labour Law. Trade unions also lobbied for the amendments. Even with those amendments, the law was considered decent from an employer’s perspective. But, once the draft law entered the parliamentary procedure, that’s when the race in populism began. MPs competed against each other for who could add more electorate/worker-pleasing amendments to the Law, and what happened was that the Labour Law regressed to the time of socialism and self-governance. This spoiled the labour issue for the next five to six years. Even the IMF couldn’t believe that

we have cases where an employer has to make his worker, with 30 years of work experience, redundant and give him severance pay covering all those years regardless of the fact that the worker spent, let’s say, only a year working at the employer’s company.

■ As it turns out, the Law outlived both the government of Vojislav Koštunica and Minister Lalović.

- Yes, it did – because nobody wanted to tackle reforms and because there was no political will to change Serbia. There was a lot of rhetoric, but once the politicians assessed how much they stood to gain or lose from changing the Labour Law, they decided to work for their own benefit or the benefit of their political parties.

Of course, we should not be blind to the fact that certain employers are abolishing jobs and kicking workers out.

■ What else does our Labour Law need in order to be considered modern, on par with global trends and acceptable to employers?

- The amendments need to restrict the current role that trade unions play in companies. This is inevitable, and it will probably make the trade unions angry. I doubt it will cause huge worker protests.

If I remember correctly, there are 23,000 trade unions in Serbia. This number has to go down. The trade union bureaucrats should be stripped off their privileges in companies. Why should employers pay trade union

■ The Serbian Association of Employers, the Foreign Investors Council, the American Chamber of Commerce.... Despite your emphasizing all this time that our Labour Law was a relic of socialism and that it has to be changed, is it true to say that nobody has been doing anything in that regard?

- Yes, because the politicians and the trade unions prevented it from being changed. Through participating in many debates, I have noticed that the people employed by trade unions are very adamant about some of their views, even when they are aware that they are wrong. Now I can see that some trade unions are slowly starting to understand that they are living in a country with an undeveloped economy.

I often defend trade unions which are also in a difficult situation. People losing jobs means fewer members for them, but since most of the trade union members are civil servants, it is very easy for them to stage strikes.

Even in the present situation, trade unions are known to demand the impossible. They behave as if we were still living in yesteryear or living in a country that was economically developed. They want young people to find employment and people over the age of 55 to keep their jobs. They also want higher salaries, despite work productivity and the GDP not growing.

They want the retirement age to stay the same. Simply put, their demands are impossible to meet considering our economy.

I have seen another bit of irrationality popping up frequently – the interests of trade unions and the interests of workers are not the same. I remember that back in 2002 and 2003, the trade unions were against employees having their own councils at their places of employment. Having these councils would have been useful since both employers and employees could sit on councils and discuss production plans, profit share, bonuses, and other issues.

■ Does that mean that Serbia is still a society with too much socialist influence which is also why we are not capable of understanding the true meaning of an employer and the role he plays?

- I have been debating recently about employers not respecting workers’ rights for annual leave when a colleague of mine, obviously provoked by absurd accusations, explained to the trade union representatives that employers don’t get to take time off. At first, this does sound absurd, but there are so many proprietors of small companies (grocery owners, bakers, hairdressers, shoemakers, bricklayers, painters) that cannot afford to close down their businesses for a month and go on a vacation, during which they don’t generate any income and stand to lose customers.

Now I can see that some trade unions are slowly starting to understand that they are living in a country with an undeveloped economy activitists who do not do their jobs? In public enterprises, trade union commissioners have their own offices, company cars, personal assistants, as well as per diems for working in trade unions.

Amendments to the Labour Law will abolish many of their acquired rights and irrationalities. For instance, why should employers pay the workers for the days when they are off work because they are getting married?

These are private matters.

■ But the Labour Law is supposed to protect workers.

- Absolutely, it has to protect them and shouldn’t be at their expense.

That’s why we want the Law to contribute to the overall improvement of our economy where employers have a real need for workers and where the labour market functions properly. In this case, if an employer needs a worker of a certain profile, he should pay such worker more. We don’t need an environment where workers are not getting paid or where the employers are forced to cross over into the so-called gray economy.

Generally speaking, employers did back up the trade union demand for employers to be criminally liable if they are not paying salaries and capital contributions. Of course, we did subtly underline that this referred to ‘the employers who were in a position to reimburse salaries, but did not.’

However, changing the Labour Law is not enough to achieve a better ecocordeditorial@cma.rs |

107 September 2013 | 25

nomic environment. Our judicial system needs to be efficient in the sense that employers know in advance that they will enjoy full legal protection if they operate in accordance with the law. The tax system is another important segment of the economic environment. Companies owe 600 billion dinars in unapaid taxes. How is that even possible? If the state managed to collect taxes, there wouldn’t be any budget deficits, but rather a surplus.

Why is nobody held responsible for uncollected taxes?

■ The Labour Law is a system document that is supposed to improve the economic environment. In which way?

- For example, the procedure of registering the worker and concluding an employment contract with him is very complicated. This contract is often concluded in a very simple and fast manner, but terminating it is not at all easy. It often happens that a company goes downhill because of an economic crisis or the state’s fault, and it is forced to reduce the scale of its business operations. However, according to the Labour Law, in such situations, companies cannot fire workers. As it turns out, once an employer signs an employment contract with his worker, he has figuratively put a noose around his own neck and became stuck with that worker.

It is only logical to think that if there is no work for the worker, the employment contract should be terminated.

■ Do you think that the amended Labour Law could be also called a new pact between employees and employers in Serbia?

- Yes, exactly. This law should be protecting workers, not trade unions. This is the last nail in the coffin of socialism in Serbia, and not the end of the state’s social care and employers’ care for their employees.

We don’t need an environment where workers are not getting paid or where the employers are forced to cross over into the so-called gray economy

■ Does flexibility entail having more temporary workers?

- The Foreign Investors Council has suggested that the engagement of temporary employees should be prolonged from one to three years. The Serbian Association of Employers seconds that proposal.

But why shouldn’t we draft a flexible law that would allow workers to work as much as needs to be worked, and, once the volume of work subsidies, employment contract could be easily terminated? In my opinion, this is the only good solution and if we manage to incorporate it into the Law, we don’t need the paragraph about temporary work.

Unfortunately, socialism is still present in public enterprises, state institutions, and state bureaux. If you are a civil servant, you are guaranteed a workplace, it is almost impossible to fire you, your salary is regular, and it is higher than in business.

■ What should we copy from other countries and regions when it comes to drafting our Labour Law? - Labour legislation in the former Yugoslav republics has been significantly improved in terms of employer/employee rights, which is why Serbia lags behind in attracting FDIs. We expect that, once the Law changes, the employment rate will jump, mostly in small enterprises. Serbia cannot create 200,000 new jobs by 26 |

bringing in one hundred companies like Fiat to employ 2,000 people each.

But 100,000 small enterprises can each hire two people and, lo and behold, we have created 200,000 new jobs.

The aim of the amendments to the Labour Law is to stop protecting lazy workers and to have better protection and higher salaries for good workers.

‘Jubilee awards’ for service is yet another relic of the past, and something that trade unions have been insisting on.

We, on the other hand, advocate bonuses for the best workers.

107 September 2013 | www.cordmagazine.com

■ Do you think that the new Law will contribute to reducing unemployment and bolstering employment?

- Yes, of course it will. Even if the economic activity in our country slows down, work can still be shared via flexible employment formats. During economic crises, when jobs are scarce, workers can work fewer hours (five or six a day) and get paid accordingly, instead of being fired.

It often happens that employers need new workers, but only part time ones. This is the flexibility that I am talking about which bothers the trade unions so much.

■ Can the state, as a major employer, promote a modern Labour Law which will do away with populism and the workers’ rights inherited from socialism?

- If we want more FDIs, and if we want to improve our economy and create new jobs, then we have to change the existing Labour Law which has become an obstacle to all of the aforementioned. Now is the time to do that while the time for populism is no longer.

Let me give you an example from the time when Mirko Cvetković was the prime minister. Social actors were discussing the new minimum wage.

Employers were against higher minimum wage, while the trade unions wanted a slight increase. In the end, employers conceded. Then a government representative turns up and offers a minimum wage hike that is one quarter higher than the one suggested by the trade unions. Let me remind you that we are talking about the pre-election period and that, with this manipulative move, the government wanted to ’buy’ more votes. This is populism in its essence.

Last time we talked about the minimum wage, none of the social actors were in favour of an increase. As an employer, the state also needs to start behaving restrictively. ■

sep 2013 business leader’s meeting point

Page 38 Page 30

EU Economy

Eurozone Breaks Chains Restore of Balance in Eurozone of Recession Outcome of this month’s vote is likely to sew harmony rather The eurozone escaped a crippling 18-month recession which has German elections 2013

than stoke disagreement

cost millions of jobs and tested the single currency to the limit

Page 34

Page 39

Alex Milićević,

DuŠan Mirić,

Trusting Brands

Great Britain, Great Education

CEO of Havas Worldwide Belgrade

CEO, British Academy for Business

cordeditorial@cma.rs |

107 September 2013 | 27

German elections 2013

Restore of Balance in Eurozone Outcome of this month’s vote is likely to sew harmony rather than stoke disagreement

angela merkel

T

he euro crisis has played little part in a German federal election campaign dominated by domestic discontents. The eurosceptics Alternative für Deutschland are fizzling at around 2 percent in the polls. Two-thirds of the public want to keep the single currency rather than return to the Deutschmark, and 60pc have a favourable view of the EU, according to the Pew Research Center.

Germans have been unscathed by the soaring unemployment and sweeping public sector cuts of Spain or Greece.

But just end last month, the euro crisis finally broke cover. Wolfgang Schäuble, the finance minister, conceded in a speech to party supporters that Greece would need further aid, though he ruled out the need for another debt haircut. Peer Steinbrück, Angela Merkel’s opposition challenger, seized on the remarks, urging the German chancellor to come clean with voters about the costs of another Greek rescue. In a newspaper interview, he said: “Rescuing Europe and holding the continent together will cost something – it will cost us Germans too.”

As the euro debate burst into the open, Bundesbank president Jens Weidmann warned against the “recklessness” of invoking a breakup of the single currency. His words were a reminder that preserving the euro is a vital national interest for Germany, both because of its exports to the rest of the euro-zone and the exposure of its banks to euro-zone debt. A euro exit would have “far-reaching consequences for our banks and companies,” Mr Weidmann warned.

The Bundesbank chief’s intervention suggested that while the euro

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107 September 2013 | www.cordmagazine.com

crisis might have a walk-on part in next month’s (September) election, it would never hold centre stage. Almut Möller of the German Council on Foreign Relations, a think-tank, said “Germany has invested so much in saving the euro because Germany benefits so much – it needs the euro for its economic model.” Public confidence in Mrs Merkel’s handling of the crisis makes it hard to assail her on it, Ms Möller argued.

The euro crisis has had a low profile in the election to date because Mrs Merkel has “no interest whatsoever in triggering it,” Ms Möller added. “She’s sailing on this huge wave of approval. Germans in general are not feeling the pinch of the crisis.”

The opposition’s attacks are blunted by the fact that they have voted in favour of bailouts. Manfred Güllner, head of the leading opinion polling institute Forsa, said the opposition Social Democrats (SPD), trailing in the polls, were forced to “clutch at any straw while still appearing statesmanlike.” He told the Frankfurter Allgemeine Zeitung: “Their dilemma is that they always protest and criticize, but support the government’s decisions when it comes to the crunch.”

So what difference will the election make? The latest Forsa opinion poll, conducted for the magazine Stern and the broadcaster RTL, puts Mrs Merkel’s Christian Democrats on 41pc and their current coalition partners the Free Democrats on 6pc. The SPD polled at 22pc and their allies the Greens were in third place with 13pc. Votes drawn by smaller parties mean that Mrs Merkel could lead a governing coalition with as little as 45pc, though there has been talk of her striking

deals with the Greens or forging a ‘grand coalition’ with the SPD. The parties’ manifestos reveal differences on Europe. The SPD want to transform the European Commission into a government that would be elected by and accountable to the European Parliament, alongside a second chamber to represent the governments of members states. Mrs Merkel has sounded more sceptical about rule from Brussels, favouring an approach that involves member states coordinating more closely with each other.

A jobs summit in Berlin this year and a decision by the German government to extend bilateral aid from its state-owned develop-

Whoever wins September’s German election, increased wages and government spending are a likely outcome ment bank to small businesses in Spain and Portugal may also signal a desire to liaise directly with other Eurozone states and a pivot away from further federalism.

Germany has set the terms of Europe’s steps towards banking union. Last year, when European leaders agreed a single supervisory mechanism for banks, Berlin secured an exemption for small banks – an important domestic consideration given the central role played by regional state-controlled banks in Germany’s political and business life.

In July, the German government rejected EU proposals for a single authority to wind down failing banks, the second pillar of banking union, concerned that this would lead to shared responsibility for financial risks. By contrast, the SPD favours establishing a European resolution agency.

When it comes to the third pillar of banking union – a eurozone wide deposit guarantee scheme – the harsh terms imposed on depositors in Cyprus vividly illustrated German politicians’ reluctance to make their countrymen liable for risks taken elsewhere in Europe.

The CDU and the Free Democrats both rule out deposit insurance schemes in their manifestos.

Greece will be the first cloud on the horizon after the elections.

Henning Klodt, head of the economic policy centre at Germany’s prestigious Kiel Institute, said that, contrary to the government’s assurances: “A debt haircut for Greece will be necessary after the elections. It is necessary not just because austerity measures are failing but because of the lack of a competitive economy in Greece. After the election, the CDU will present [voters with] the bill.”

End last month, German government sources played down the scale of a renewed aid programme for Greece. Aides briefed the Süddeutsche Zeitung that the country’s third aid programme would be significantly smaller than the first two, and accompanied by less stringent reform requirements – as, they claimed, a substantial part of the necessary changes were already underway.

Berlin has already softened its demands for fiscal rigour in the eurozone, making plain that it is willing to allow more time to cut deficits in exchange for economic reforms. Both the SPD and the Greens warn against excessive demands for austerity in future bail-outs. The

CDU and Free Democrats oppose any form of debt mutualisation, but the SPD has proposed setting up a debt redemption fund, which would guarantee debt jointly – though each country would continue servicing its own debts. The Greens go even further, proposing the creation of Eurobonds as a long-term goal.

The CDU has a Eurosceptic wing; a hardcore of about seven who have voted consistently against Eurozone rescue measures, the ranks of the rebels rose to 16 last June when the Bundestag voted to approve the permanent bailout fund, the European Stability Mechanism. The existence of this awkward squad means that even if Mrs Merkel’s party leads the next governing coalition, she is likely to need the SPD’s votes to secure Bundestag backing for future European rescues.

There is another way in which Germany’s elections could play an unexpected role in healing European divisions. After years of wage restraint and export success which piled up a current account surplus of 7pc last year – and helped fuel the credit boom of the eurozone’s periphery – these elections bring the prospect of a boost in German domestic demand.

Politicians of all stripes are promising more social spending. The Christian Democrats’ election manifesto promises to raise pensions, increase childcare benefits and improve Germany’s highways, financing the spending not through tax rises but the proceeds of increased growth. The opposition Social Democrats are calling for a statutory minimum wage – Germany does not set one at a national level – and an increase in the top rate of income tax to fund spending on education and infrastructure. ■ Source: The Telegraph

cordeditorial@cma.rs |

107 September 2013 | 31

local news

Business Dialogue 01

Falkensteiner

Democracy “I’m fed up with democracy. In a democracy, people vote for the mayors. I wanted to build a city where I will choose the citizens.”

— Emir Kusturica, Serbian filmmaker, actor and musician

Investment in Mt Stara Planina The Serbian Ministry of Finance and Economy and JP Stara Planina - a public company for the development of mountain tourism, have signed a memorandum of understanding with Austrian company Falkensteiner Michaeler Tourism Group for another planned foreign direct investment worth €30 million.

The memorandum was signed by Minister Mladjan Dinkic, Falkensteiner CEO Otmar Michaeler and Director of JP Stara Planina Svetislav Popadic.

Falkensteiner has a chain of over 30 hotels in six European countries and over the next six years it plans to build six condotels - condominiums which are operated as hotels - with 350 units capable of accommodating up to 1,000 people on Mt. Stara Planina. The hotels would cover an area of 35,000 sq/m.

Construction of the first three condotels will begin in 2014 and should by completed by the end of 2016, while the other three buildings should go up between 2017 and the end of 2019.

The funding will come from the Austrian investor, while Serbia will provide land, infrastructure and permits through JP Stara Planina.

Falkensteiner already owns a hotel on the mountain built in 2010, and another in Belgrade in which it invested €45 million.

02

Investment

Serbia must develop domestic economy In addition to attracting foreign investments, Serbia needs to develop its domestic economy in order to have a stable and comprehensive economic growth, says Michael Schmidt, outgoing director of the Delegation of German Economy in Serbia.

Foreign investors are good, but are not enough, Schmidt said in an interview for Tanjug, pointing to the negative example of some countries in the region, such as Hungary, which are focused primarily on attracting foreign capital.

Despite the presence of major international companies, these countries now have huge problems with unemployment and public finances, he said, adding that Serbia should learn from these examples.

According to Schmidt, companies in Serbia might not have the same business opportunities as foreign companies, but they can operate in the regional market or in branches such as agriculture and the metal processing industry.

It is important that Serbian companies make the transition from exporters of raw materials and semi-finished goods to finished products, and thus increase the value of their output, said Schmidt.

He said around 400 companies with German capital are registered in Serbia, which employ 25,000 people and the investments total around EUR 1.5 billion.

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107 September 2013 | www.cordmagazine.com

03

Leoni

Leoni breaks ground on new factory

Serbian Parliament Speaker Nebojsa Stefanovic and outgoing minister of finance and economy Mladjan Dinkic attended the laying of the foundation stone for a factory of the German company Leoni in Malosiste, Doljevac municipality, near Nis.

They said that the plant will employ 1,500 workers and will produce electrical cables for the automotive industry. It should be finished by spring 2014.

“The construction of this factory is good news for all of Serbia, especially for southern Serbia,” Stefanovic told journalists, adding that new jobs are the state policy’s priority.

He also said that this investment shows that the government is working on the development of all parts of Serbia.

“The automotive industry is the cornerstone of Serbia’s development, not only Fiat but also those who produce components for automotive industry,” Dinkic said.

More than €20 million will be invested in the construction of the new plant and the state will allocate incentives €EUR 7,000 for each new job.

04 Jat Airways

JAT pays $2.5mln for aircrafts falling into pieces Two Boeing 737-300 airplanes, which Serbian Jat Airways rented from the Bulgarian Bulgaria Air airline, were kept stored in sheds in Serbia for half a year, since they were received in half-broken state, writes Serbian Alo daily, citing private sources.

“When they arrived in Serbia the two airplanes were in a very bad condition.

One of them had problems with the tank because of which it was unusable for weeks. The biggest problem is that the airplanes were sent without spare parts, as well as without the needed documents,” unnamed sources from the airline said. The Serbian newspaper comments further that the sum paid to rent the two airplanes for one year is not clear but it is believed to be between $2 million and $2.5 million. The future owner of Jat Airways - Etihad Airways, was against the renting of the two airplanes a month before contract’s signing.

05

Air Serbia

First plane arrive on October Air Serbia will get its first plane on October 27, Serbian Deputy Prime Minister Aleksandar Vucic announced on end August Vucic told reporters that Air Serbia will have ten planes next year already.

On August 1, Vucic and President of the national airline of the United Arab Emirates Etihad James Hogan signed in Belgrade the Agreement on strategic partnership which transforms Jat into a new company, Air Serbia.

The Serbian deputy prime minister said that the new company and the agreement with national airline of the United Arab Emirates Etihad, would make it possible for Serbia to improve its technological and business environment where 30 million passengers would get a reliable airline to important destinations in Europe and the world.

New planes should be purchased in stages and Air Serbia destinations will expand to cover lines from Abu Dhabi to Melbourne, Sydney and Chicago.

Children

06

“All children have rights and those rights must be protected.”

— Novak Djoković, Serbian professional tennis player, World’s No.1 by the ATP

Mercedes-Benz

The Aspiration: The Best Automobile in the World With the three engineering priorities "Intelligent Drive", "Efficient Technology" and "Essence of Luxury", the new S Class extends the boundaries of technology on many levels. The S Class is not just a technological spearhead for Mercedes-Benz but for automotive development as a whole

As with every generation before it, the customers expect the new S-Class to set standards across the board to retain its accolade as “the best automobile in the world”. Rather than being about safety or aesthetics, power or efficiency, comfort or dynamism, our aspirations were ‘the best or nothing’ in every respect. No other car stands for the Mercedes-Benz brand promise more than the S-Class.

Perfection to the last detail results in “The Essence of Luxury”. This pursuit of the best is particularly noticeable in the interior: whether it is the seats or the air conditioning, the controls or the design, the infotainment or the comfort and safety in the rear – new ideas, their painstaking realisation, and highest perceived quality underpin the high standards that the engineers have set for the Mercedes-Benz flagship model – and for themselves.

The same applies to safety. What started with PRE-SAFE® ten years ago and continued with DISTRONIC PLUS has now resulted in a new dimension of motoring: comfort and safety are merged into one.

Mercedes-Benz refers to this as “Intelligent Drive”.

Within ten years Mercedes-Benz, by realising “Efficient Technology”, has almost halved fuel consumption in the 150 kW output category to 4.4 litres per 100 kilometres, for example, while the drag coefficient of the new S-Class (cd=0.24) clearly undercuts the previous model’s figure and sets a new benchmark in this segment. The S 300 BlueTEC HYBRID is set to go even lower still with a cd figure of 0.23 thanks to additional aerodynamic optimisation measures. Furthermore, the new model is the world’s first car to dispense entirely with light bulbs in favour of LEDs, pointing the way ahead once again.

07

Placements & Postings appointments@cma.rs

www.cordmagazine.com/corporate/appointments.html

As of July 24 Mrs. Narinder Chauhan is the new Indian Ambassador to Serbia. Mrs. Chauhan joined the Indian Foreign Service in July, 1985. During a career spanning 28 years, she has served in the Indian Missions in Tokyo (October 1986– August 1989), Bangkok (August 1994–July 1997), Brussels (March 2002–September 2005) and Ottawa (August 2008– June 1013).

Mrs. Chauhan served in the Ministry of External Affairs of India in various capacities, including as Joint Secretary responsible for HE Mrs. Narinder African Affairs (2005-2008) when she steered the first India-Africa Chauhan, Summit. She also served as Chief of Staff to State Minister for New Indian Ambassador External Affairs. Mrs Chauhan is bachelor of laws, and by educato Serbia tion she has a post-graduate degree in political science.

H.E. Mr. Gordan Markotić, New Croatian Ambassador to Serbia

H.E. Mr. Michael Borg-Hansen New Danish Ambassador to Serbia

Finance

World Bank approval of a $200 million loan for Serbia The World Bank will approve a USD 200 million loan for Serbia if the Tony Verheijen country adopts its 2014 budget in time and if its fiscal consolidation conNew World Bank Country tinues. This has been revealed by World Bank Country Manager for Serbia Manager for Serbia Tony Verheijen. “In that case, we will give you the additional $50 million asked for by Deputy Prime Minister Aleksandar Vučić,” said Verheijen.

Verheijen said Politika daily, that mid August, he and the World Bank regional director had a meeting with Vučić and future Serbian Finance Minister Lazar Krstić .

Gordan Markotić (55) was born in Belgrade and graduated in law from Zagreb University. He started his diplomatic career in 2001 as the Head of Department for Economic Organisations and Integration, in the Ministry of Foreign Affairs (MFA), Zagreb.

Later he served as National Coordinator of the Stability Pact and SECI (2002), Ambassador, Permanent Representative to the UN Office in Geneva and the World Trade Organization (2003), Ambassador to the Ministry of Foreign Affairs and European Integration (2007). From 2007, Mr Markotic was Assistant Minister of Justice for Cooperation with International Criminal Courts and General Director for International Cooperation, International Legal Assistance and Cooperation with International Criminal Courts, Ministry of Justice. In 2010, he was promoted to Head of the Office for the Cooperation with International Criminal Courts, Ministry of Justice. Prior to his appointment as the Croatian ambassador in Serbia, Mr. Markotic was Assistant Minister of Justice for EU and International Cooperation. Mr. Gordan Markotic is married with two children The new Danish ambassador to Serbia, H.E. Mr. Michael Borg-Hansen, was born in Brussels in 1951. After graduating from Copenhagen University in history and Russian language, his distinguished career has included being Secretary to the Delegation the CDE arms control conference in Stockholm (1984), an appointment as First Secretary at the Danish embassy in Moscow, and serving in the Ministry of Foreign Affairs and later the Ministry of Defence in Copenhagen. In 1992, Mr. BorgHansen was made counsellor for political affairs at the Danish embassy in Washington, DC, from 1992 to 1996. Returning to Copenhagen, he served as Deputy Director at the MFA Security Policy department and as Senior Advisor on Foreign Policy to Prime Minister A. Fogh Rasmussen in 2001. In 2005, he was appointed Minister Counsellor and Deputy Chief of Missions at the Royal Danish Embassy in London, and in 2009 he became the Danish ambassador to the Ukraine, Georgia, and Armenia.

Mr. Michael Borg-Hansen is married with two daughters.

Tony Verheijen previously worked for the Public Sector Management and Governance department in the region from 2002-2006. From 2007 to 2013, he served as Sector Manager of the Public Sector and Governance department in South Asia and as Lead Public Sector Management Specialist and Cluster Leader for East and Central Africa. At the World Bank since 2002, Mr. Verheijen has focused on public sector management, civil service reform, governance and anti-corruption, and economic management issues. Mr.Verheijen has worked on projects in South and East Asia, Central and East Africa, Russia and Central Asia and Central and Eastern Europe. Prior to joining the World Bank, Mr. Verheijen worked as Chief Technical Adviser for the UNDP Regional Office in Bratislava, Slovakia, for the OECD and for the European Institute of Public Administration. He graduated from the Erasmus University in Rotterdam, holds an MA in International Relations from the Université Libre de Bruxelles and a PhD from Leiden University. He speaks Dutch (native), English, French, German, Russian

cordeditorial@cma.rs |

107 September 2013 | 33

Interview Alex Milićević, CEO of Havas Worldwide Belgrade

Trusting Brands

Thanks to our regional offices and expertise, Havas Belgrade has become the client hub in the Adriatic region. The communication between manufacturers and consumers is increasingly carried out through new media, while the Internet has been taking over the print media.

- After I graduated from university in the US, during one of my visits to Serbia, I noticed a huge potential in helping a European country reaching global standards. As an entrepreneur, I am also the owner of several companies, mainly in advertising and media.

One of such companies was Buzz Advertising, one of the most creative marketing agencies in Belgrade. Buzz was later renamed into EuroRSC Belgrade, and subsequently rebranded and given a new name Havas Worldwide. We are very proud of the fact that our major clients Japan Tobacco International and Kraft Foods have been with us since our very beginning. Thanks to our regional offices and expertise, Havas Belgrade has become the client hub in the Adriatic region. The communication between manufacturers and consumers is increasingly carried out through new media, while the Internet has been taking over the print media, which is why I came up with the idea to create a web portal called Sportal.rs in 2009, apart from starting Havas Belgrade. Today, Sportal.rs is one of the most frequented sports websites. This totally coincides with my areas of interest which have always been sports, and, of course, marketing.

H

avas Worldwide Belgrade became operational in Serbia ten years ago. Although, the agency started off locally, it received a worldwide license in 2010. Today, it is an integrated marketing communication agency with a team of 25 professionals which provides a wide range of marketing services including brand development and positioning, communication and marketing strategies, media buying, PR and digital marketing. The list of the agency’s global clients is impressive - Danone, Citigroup, PSA Peugeot Citroen, Kraft Foods, Heineken, McDonald’s, L’Oréal, Reckitt Benckiser, Schering-Plough – to name just a few. Havas has similar high-profile clients in Serbia too.

■ Why did you return to Serbia after living for so long in France?

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107 September 2013 | www.cordmagazine.com

■ What kind of impact did the economic downturn have on marketing agencies?

- During crisis people turn to familiar and trustworthy brands, and by trustworthy I mean getting quality for their money.

Marketing budgets have been reduced, and companies want simpler but more effective solutions that will help them reach their target groups. Annual budgets have been sliced by 35% compared to 2008 which is a huge reduction indeed. I think that the media have it even worse than us, since marketing agencies are still in the phase of market consolidation. Let me reiterate – I firmly believe that opportunity lies in crises. We have been implementing the very same philosphy in our work too. We have managed to transcend borders, hire new people and obtain new clients.

■ What is the cooperation between French companies in Serbia like?

- As a member of the French Chamber of Commerce, we can say that this is a young organization which has been developing rather rapidly and successfully. The number of Chamber members has been growing constantly, and our joint monthly meetings are very productive and useful for all French companies operating on the Serbian market. Support and collaboration are very important in these difficult times, so we even have Serbian companies, eager to develop their businesses outside the country, becoming Chamber members. We do hope that the French government will give us even more support in the future, and that more French companies will come to Serbian market.

Havas Worldwide Belgrade

Proud of Our Clients Havas provides a wide range of marketing services including brand development and positioning, communication and marketing strategies, media buying, PR and digital marketing.

■ How would you rate Serbian marketing scene and what are its biggest challenges?

- The marketing scene seems a little chaotic to me. Smaller agencies either specialize in a particular communication segment or they network and join global systems. Large licensed agencies are going through regional consolidation in order to provide optimal service to their clients. As a result, the competition is getting tougher. This is a great challenge for all of us, but also an opportunity for the best campaigns and ideas to captivate the market.

Joint regional campaigns and strategies are being developed in order for their implementation to be as efficient and frugal as possible considering the reduced budgeting The Serbian market is also undergoing centralization due to its geographical position, affordable services and quality workforce.

Additionally, reduced marketing budgets are setting new communication priorities. The development of digital communications has brought huge changes to marketing scene which, in turn, creates excellent opportunities for agencies which are in digital communications. Digital communications are taking over the communications world and creating new opportunities for development of marketing in the future, despite the diminished budgets and the crisis that is felt in all business segments.

■ Since Havas is operational in the region too (Slovenia, Croatia, Bosnia and Herzegovina, Montenegro, Macedonia), could you compare these markets to Serbian?

- The regional countries are increasingly getting closer and cooperating and exchanging experiences with each other. The situation is very similar across the region. Joint regional campaigns and strategies are being developed in order for their implementation to be as efficient and frugal as possible considering the reduced budgeting.

Slovenia and Croatia are the closest to EU standards, while Bosnia and Herzegovina, Montenegro and Macedonia are really small markets. Serbia is keeping pace with Slovenia and Croatia, but we are slightly more dynamic and aggressive in our marketing campaigns, and our prices are very competitive in the region. ■

H

avas Worldwide Belgrade, formerly Euro RSCG Belgrade, is a member of the global advertising group Havas Worldwide which operates in 75 countries. Today, Havas Group has two main business units – Havas Media, an umbrella company for all global media agencies, and Havas Creative which comprises of Havas Worldwide network and Arnold Worldwide micro-network.

The agency started off in Serbia ten years ago as a local agency, and, in 2010, it acquired a worldwide license. As an integrated marketing communication agency with a team of 25 professionals, Havas Belgrade provides a wide range of marketing services including brand development and positioning, communication and marketing strategies, media buying, PR and digital marketing.

Havas is the fifth biggest advertising network and one of the most awarded agencies in the world. Danone, Citigroup, PSA Peugeot Citroen, Kraft Foods, Heineken, McDonald’s, L’Oréal, Reckitt Benckiser, Schering-Plough, Sanofi-Aventis, Axa, and Credit Agricole are just some of our global clients. Locally, our clients are reputable companies like Telekom Serbia, NIS, and Grand Casino, and we are especially proud of the fact that two of our biggest clients, Japan Tobacco International (and its brands Winston, Camel, and Sobranie) and Kraft Foods (with brands Barni, Milka and Jacobs), have been with us since the very beginning. We are also present in Slovenia, Croatia, Bosnia and Herzegovina, Montenegro, Albania, Macedonia and Bulgaria. ■

cordeditorial@cma.rs |

107 September 2013 | 35

REGIONAL news

Business Dialogue 01

Bulgaria

Elections (1) ““I find it in the Serbs’ interest to participate in elections. If not, that community will be represented by somebody else, somebody who is already maybe part of the government headed by Hashim Thaci…”

— Ivica Dačić, Serbian Prime minister

03

Romania

Bulgaria 4th in EU

by Winter Tourism Growth

Turks interested in investing in petrochemical sector

Bulgaria has the EU's fourth largest increase (+4.7%) in the number of nights spent at hotels and similar accommodations, winter season 20122013 compared with the previous year, according to Eurostat

Yildirim Holding Turkish company is interested in privatisation of Romanian Oltchim Ramnicu Valcea petrochemical plant and in the process of investment drawing in Cupru Min Abrud

In 15 out of 22 Member States where data is available, nights spent at hotels and similar accommodation establishments recorded positive growth rates during the winter season 2012-13 compared with the same period of the previous year.

The highest increases were observed in Slovakia (+9.6 %) and Malta (+9.0 %). Nevertheless, this positive growth is not reflected in the EU28 figures where a drop of -0.4 % was observed.

The decline reported by five mediterranean countries (Cyprus, Italy, Spain, Slovenia and Greece) but also Finland and France can explain this drop: 45 % of all the nights spent at hotels and similar accommodation establishments of the EU are spent in these seven Member States.

The most popular destinations for tourists travelling outside their own country during the winter season 2012-2013 were Spain, Italy and Austria. The flows to these three countries accounted for nearly half of all nights spent by non-residents in the EU-28.

Romanian Economy Minister Varujan Vosganian met the management of Yildirim Holdgin INC. company group to discuss their interest in participating in the process of investment drawing in SC Cupru Min SA Abrud and in investing in the mining industry of Romania, in general.

The second largest chrome producer worldwide, Yildirim Holding Inc company group is also interested in privatisation of Oltchim Ramnicu Valeca plant.

Cupru Min last year went through a privatisation process, which was not concluded. On March 26, 2012, Roman Copper Corp. Canada was declared winner of the tender organised for the sale of the shares held by the state in Cupru Min company, for €200,772 million. Subsequently, the tender was cancelled, without reaching agreement.

Oltchim Ramnicu Valcea has been in insolvency procedure since January 2013 and had to be privatised by June this year. At present, the plant operates at a quarter of its capacity.

02

Hungary

Bank deposits up, savings still scarce The combined bank deposits of Hungarian residents increased by 2.5 per cent year-on-year in June to HUF 17.72 trillion (€59.1 billion), according to Hungarian National Bank data released this week. The increase marks the fifth consecutive month of rising deposits.

Meanwhile, deposits of monetary financial institutions dropped one per cent year-on-year and government deposits continued to decline in June, decreasing 19.8 per cent.

Although the central bank data suggests an increasing tendency to put money away for a rainy day, recent surveys suggest that very few Hungarians actually have any savings. Insurance firm Groupama reported in May the findings of a survey that showed only 16 per cent of the populace have any savings at all. A similar study by accounting firm PwC in the first half of 2012 showed that 87 per cent have no savings, while even among higher wage earners (those taking home over HUF 200,000 per month (€ 668)) only one in five had stashed money in the bank.

36 |

02

Varujan Vosganian , Romanian Economy Minister

Kosovo

PK signs cooperation agreement with PS

The Post of Kosovo (PK) has signed a cooperation agreement with The Post of Slovenia

Boris Novak (left) and Sejdi Hoxha

Executive director of PK Sejdi Hoxha said that this agreement is very important and enables membership in international organizations. According to Hoxha, in the first 6 months of this year, PK has increased revenues and cut the expenses.

He also said that they have applied for the license to the Central Bank, so that PK offers banking and financial services. According to executive director of the Post of Slovenia, Boris Novak, this agreement will enable establishment of a profitable partnership for both sides to achieve success. Novak also said that they will help PK to modernize postal and innovative services. The Post of Source: Kosovapress Kosovo covers about 80 % of postal market in Kosovo with 155 post offices.

02

Montenegro

Telenor Montenegro expands smartphone offer

Telenor Montenegro has upgraded its Talk and Browse packages by extending the range of mobile phones offered at favorable conditions. As part of the monthly subscription, the packages provide unlimited internet and unlimited calls within the Telenor network, plus access to the Deezer music service. New phone models are available, depending on the chosen package, at prices ranging from € 1.00 to € 279.00. The top price concerns one of the most popular smartphones, the Samsung Galaxy S4. Unused minutes and text messages on the plan can be carried over to the next month.

107 September 2013 | www.cordmagazine.com

Elections (2) “Serbs in northern Kosovo will participate in the elections for the first time, and I urge them to prepare well for elections with political parties, political movements or independent candidates.”

— Hashim Thaci, Prime minister of Kosovo

02

Bosnia and Herzegovina

Elektroprivreda Will Not Initiate Price Rise Elektroprivreda BiH state-owned power company stated end of August that, being a socially responsible company, it will not initiate a new tariff procedure, that is increase the current price for electric energy, regardless of negative effects the company might have due to the introduction of an obligatory cantonal free regulated by the Law on Waters of Herzegovina Neretva Canton, adopted on 28 June 2013.

“Elektroprivreda BiH will do everything within available legal possibilities to protect the interest of the company and its buyers,” said representative of the state company.

Due to the obligatory fee, Elektroprivreda BiH addressed all relevant institutions in FBiH and expects the decision of the Herzegovina Neretva Canton to be reanalyzed, which represents direct meddling of the canton into the competences of FBiH. Payment of all kinds if general and specific fees is regulated by the Law on Waters of FBiH and Elektroprivreda BiH sets aside around seven million KM annually for that matter.

02

Macedonia

IFC and Ohridska Banka have partnered to expand access to finance IFC, a member of the World Bank Group, and Ohridska Banka have partnered to expand access to finance and spur international trade among small businesses in Macedonia IFC extended a $10 million trade credit line to Ohridska Banka under the Global Trade Finance Program (GTFP). The GTFP supports trade in emerging markets by providing partial or full guarantees for individual trade transactions backed by IFC’s triple-A rating.

With IFC support, Ohridska Banka will be able to provide additional financing to its trade clients, particularly small and medium enterprises with growth potential that are active in the energy, metallurgical, mining, textile, food processing, and transport sectors.

“By joining our global network, Ohridska can build and strengthen relationships with over 250 international confirming banks,” said Georgina Baker, IFC Director for Global Trade and Supply Chain Solutions. “IFC’s support of local traders will allow the country to expand its export industries and pave the way for increased economic growth.”

In fiscal year 2013, IFC provided $3.1 billion to support trade in the world’s poorest countries, and 80 percent of all guarantees went to small and medium enterprises. The GTFP includes more than 500 participating partner banks.

02

Croatia

Daehaeng Kim,

New IMF Resident Representative in Belgrade

Milutin Delić, New General Manager for GlaxoSmithKline Serbia and Montenegro

Niccolò Bonferroni Head of International Customers Department at UniCredit Bank Serbia

On July 29, Daehaeng Kim, a citizen of the Republic of Korea, was appointed as IMF Resident Representative in Belgrade, Serbia. His responsibilities include representing the IMF in public, advising the government and the central bank on economic policy, providing support to IMF missions, and running the IMF office in Belgrade. Prior to this appointment, Daehaeng was a Senior Economist in the IMF’s European department, working on Russia. He had a variety of assignments at the IMF, including in the European, Middle Eastern and Central Asian, and Fiscal Affairs departments, working on a number of countries in Africa, Eastern Europe, and Central Asia. Before joining the IMF, Mr. Kim received his MA and PhD in economics at the University of Michigan. He has earned a variety of scholarships and awards, and has written a number of papers on various policy issues.

GlaxoSmithKline (GSK) appointed a new General Manager for Serbia and Montenegro – Dr Milutin Delic PhD, succeeding Anna-Pajuk-Kasprzak, as of 1st July 2013. Mr. Delić is returning to the GSK Serbia & Montenegro team, after his engagement as Country Manager GSK Macedonia, where he significantly contributed to Macedonian strategic and business agenda, as well as to the Adriatic region.

Having joined GSK in June 2009, as Vaccines and External Affairs Manager, he brought to the organisation extensive experience in the area of health systems, health financing and health policy. As a member of the Serbian Management Team, Delić contributed to growing and developing the GSK business, gaining the GSK Adriatic Award in 2010 and GSK President Award in 2011.

Prior to his engagement with GSK, Milutin was engaged in international development programmes in Balkans, FSU and Central Aisa with DFID, UNDP and World Bank.

Niccolò Bonferroni (43) started his banking career as a credit analyst in Paris branch of Banca di Roma. In January 2000, he became Head of the Credit Department at Banca di Roma in Lebanon, where he held various positions until December 2002. Mr. Bonferroni spent the following six years at Banca di Roma in Frankfurt, where he performed the duties of Business Manager/Deputy General Manager in charge of business, underwriting and treasury. Prior to joining UniCredit Bank, Mr. Bonferroni had been country manager for Kazakhstan, the Baltic countries and Bosnia and Herzegovina in the Corporate and Investment Business Department in Central and East Europe (CEE). Niccolò Bonferroni graduated economics and commerce from Parma University.

Croatia Airlines to be put up for sale in October Croatia Airlines will be put up for sale come October 15 despite Zagreb’s previous assurances that the struggling carrier would not be privatized before 2015. Garuda Indonesia (GA, Jakarta Soekarno-Hatta) and China Southern Airlines (CZ, Guangzhou) have reportedly shown an interest in a stake in the airline with a Croat governmental delegation due in Jakarta to discuss the modalities to a potential deal. According to EX-YU Aviation, the tender is set to run until February 2014. The Croatian national carrier has struggled in the face of growing competition over the recent year. Staff strikes, dwindling passengers and revenue coupled with tough new European Union laws governing state bailouts have all forced the airline to cut its route network and fleet in the hopes remaining buoyant while a new investor is found. For the record, Etihad Airways (EY, Abu Dhabi Int’l), who were rumoured to have been interested in acquiring a stake in the Croat airline, has now dismissed the rumours as unfounded. cordeditorial@cma.rs |

107 September 2013 | 37

EU Economy

Eurozone Breaks Chains of Recession The eurozone escaped a crippling 18-month recession which has cost millions of jobs and tested the single currency to the limit, pulled on by surprisingly robust growth in Germany and France percent was slightly stronger than expected and France surprised too but he noted that the Netherlands fell 0.2 percent while Spain and Italy continued weak.

The “indebted countries of the periphery are still mainly in recession and a very long way from the rates of expansion needed even to begin to eat into their enormous debt burdens,” Loynes noted.

“The eurozone’s recession may be over -- for now at least -- but the debt crisis in the periphery is decidedly not,” he said.

Berenberg Bank economist Christian ut the European Commission Schulz was equally guarded. warned that tough structural re“The eurozone’s two heavy-weights forms, including unpopular ausbounced back with substantial growth in terity policies, must be pursued the second quarter,” Schulz said. without let-up if the recovery is to last.

“Their growth, in combinaThe data, widely anticipated, left stocks unimpressed and the tion with the much milder reThe 17-country eurozone, home to about 340 euro weaker. cession in the crisis countries, million people, grew 0.3 percent in the three The 17-country eurozone, has dragged the eurozone out months to June, topping analyst forecasts for home to about 340 million peoof recession since Easter.”

0.2 percent In both Germany and ple, grew 0.3 percent in the France, growth was driven by domesthree months to June, topping analyst sential foundation for a return to growth. forecasts for 0.2 percent.

Germany, Europe’s powerhouse econtic demand, while trade was buoyant In the first quarter, the economy had but probably broadly neutral for overall omy, grew 0.7 percent, while France exshrunk 0.3 percent, extending the recesgrowth, he said. panded 0.5 percent, way ahead of foreBut Schulz noted that while investsion -- defined as two consecutive negacasts for just 0.2 percent.

The French figures were the best since tive reports -- into a record sixth quarter. ment made a return in Germany, “it refirst quarter 2011 and significant given Behind the headline gains, other figmained elusive in France, suggesting that how the eurozone’s second-ranked econFrance’s bounce-back does not signal a ures showed how much ground still needs return to persistent strong growth yet.” to be made up -- the eurozone contracted omy has struggled for momentum, burOther figures showed that the full 0.7 percent compared with second quardened with heavy debt and an increasing27-member EU grew 0.3 percent in the ter of 2012, the Eurostat statistics agenly uncompetitive export sector. second quarter compared with the first Analysts were positive but also caucy said. when it shrank 0.1 percent.

“There is still a very long way to go tious -- the eurozone may be returning Among non-euro members, Britain before we reach our ultimate goal of to growth but its performance is anaemic grew 0.6 percent, confirming recent sustainable growth model that delivers compared with other major economies stronger indicators. more jobs,” said EU Economic Affairs and the debt crisis refuses to go away.

Comparable figures for the United Commissioner Olli Rehn.”

Unemployment too remains at record States and Japan came in at 0.4 percent “A sustained recovery is now withhigh levels. and 0.6 percent, respectively. ■ Jonathan Loynes of Capital in reach but only if we persevere on all Economics said Germany’s gain of 0.7 fronts of our crisis response,” Rehn said.

Source: eubusiness.

B

38 |

Eurozone states must “keep up the pace of economic reform, regain control over our mountain of debt ... and build the pillars of a genuine economic and monetary union with no loopholes where irresponsible bankers Olli Rehn or short-sighted policy makers can thrive,” he warned.

Such comments may be welcome in Germany, which faces polls this month, as Chancellor Angela Merkel has made a virtue out of the need for austerity as an es-

107 September 2013 | www.cordmagazine.com

Interview

Corporate

Dusan Miric, CEO, British Academy for Business

Great Britain, Great Education The British Academy for Business is dedicated to the discovery, development, communication, and application of knowledge in a wide range of academic and professional fields of business and management

T

he British Academy for Business (BAB), an accredited partner of the NCC Education and University of Northampton, has opened its doors to students for the 2013 academic year.

spacious garden. The open space and modern surroundings provide the ideal facilities for a successful learning process.

■ What is it that distinguishes BAB, and why should students decide to attend?

■ What is the idea behind the British Academy for business?

- BAB, as the proud member of over 200 NCC’s centres - Since the region of Western Balkans is rapidly moving toworldwide, recognized the need for providing high level wards the European Union and, at the same time, accepting undergraduate, postgraduate, as well as, executive MBA Western ways of doing business, a need for an institution of studies of business and management in Serbia. high European standards and modern way of teaching has For centuries, British education has been probably the best eduarisen. cation a student can have. Combining modern teaching methods, The British Academy for Business is dedicated to the disexperienced professors and the British tradition in education, covery, development, communication, and application of BAB is moving strongly towards being an excellent choice for stuknowledge in a wide range of academic and professional dents who wish to become leaders in modern society. fields of business and management, studying in a multiculThe program delivered at BAB and its diplomas are rectural environment. Its mission, to provide the highest qualognized worldwide and highly appreciated by employers. ity undergraduate, postgraduate and MBA programmes, is The University of Northampton which is the provider inseparable from the goal of development of new understandof the program taught at BAB is currently the university ing through research and creativity. It whose graduates have the highest For centuries, British education rate of employment in Great Britain. prepares students to assume roles in leadership, undertake responsibilities, has been probably the best and serve society.

■ What do the programs offer to education a student can have BAB assumes the continuum of a students? learning process that acknowledges each student’s personal - The enrolment at BAB is currently underway, both for needs through mentor work and the interaction within an inundergraduate studies which will start in October and the tellectual environment that consists of smaller groups of stuexecutive MBA course which begins in November 2013. dents. BAB provides endless opportunities to explore diverse BAB recognized that skills in business and management paths, to collaborate with peers and mentors, and to engage depend greatly on a combination of theoretical and practiwith the real world. cal knowledge and is determined to provide its students BAB seeks to assume a dominant and valuable position the opportunity to study in an international environment, among business universities in Serbia and the Balkan relearning modern business from highly reputable profesgion, as the unique accredited British business program. sors and experiencing practical case studies, seminars and We welcome every religion, racial, ethnic group and people internships. At the same time, prices at BAB are up to five with special needs. times lower than in the UK. We believe that students must Our campus consists of many classrooms which can accomhave a chance for something great. Great Britain. Great modate up to 130 students, a library, cafeteria, offices and education. ■ cordeditorial@cma.rs |

107 September 2013 | 39

world news

Turkey

Business Dialogue 01

“Turning away Turkey from the EU would be a great, long-term - a century-long - error by Europe.”

— William Hague, British Foreign Secretary and First Secretary of State.

02

UK

Total value of property in London soars to £1.35 trillion

Finnair to Slash Personnel Costs

London’s share of the nation’s £5 trillion (€5.8 trillion) property wealth has stretched to £1.35 trillion or 27% in the past decade, new research shows today

The capital’s share of the total has grown from 22% or £792 billion of £3.6 trillion in total in 2003, coming at the expense of every other region apart from Yorkshire & the Humber, which was stable, and Wales, which bucked the trend with a 2% gain.

Gráinne Gilmore from Knight Frank, said: “This thumbnail sketch of the change in gross housing wealth illustrates the changes over the past decade. The changes have not been linear, more a game of two halves. From late 2003 to 2006, price growth in London underperformed that in the rest of the UK. Knight Frank found the price of upmarket properties in central London has risen 7% in the past year to almost 60% above its financial-crisis low in March 2009. Prices are expected to grow 6% this year, far outstripping the rest of the country.

03

Ukraine

SCM sells 100% in Ukrainian Pharmacy Holding The largest financial and industrial group of Ukraine – System Capital Management (SCM, Donetsk) – has finalized a deal on the sale of a 100% stake in Ukrainian Pharmacy Holding, which unites the Zdravitsa and Dobri Liky chains, the Central Pharmacy and the A’STA regional wholesale pharmaceutical company The parties are not disclosing the value and other details of the deal.

Ukrainian Pharmacy Holding saw its net profit halve in 2012, to €165,000. The revenues of Ukrainian Pharmacy Holding last year grew by 72%, to €68.1 million, its EBITDA fell

05

Brazil

World Cup Should to Bring €7.7 bln Tourists from Brazil and abroad are predicted to spend €7.7 billion at next year’s monthlong soccer World Cup

40 |

Finland

Rinat Akhmetov

by 76%, to €360,000, and its assets rose by 29%, to €20.2 million.

In 2012, the consolidated revenues of the companies of Ukrainian Pharmacy Holding were up by 50.2%, to UAH 826 million (€76 million), including UAH 668.3 million (€61.6 million) in revenues from retail sales and UAH 157.7 million (€14.5 million) in revenues from wholesale.

Ukrainian Pharmacy Holding has a chain of over 170 pharmacies and is developing a small-scale wholesale business (A’STA company).

SCM is 100% owned by businessman Rinat Akhmetov.

Finnair plans to launch talks with its flying, customer service, cargo and technical personnel over collective agreements in an attempt to reduce personnel costs without cutting base wages. “We are targeting savings from renewal of working time and compensation structures, and by decreasing other personnel-related costs. We want to pay competitive market salaries,” Pekka Vauramo, the CEO at Finnair, affirms in a bulletin. Inspired by a booming demand in Asia

04

and Europe, the second-quarter result of Finnair improved considerably from last year’s -24 million to 21.2 million euro. Vauramo believes the airline should be relatively satisfied with the result. Yet, Finnair has downgraded its outlook for the year and currently expects its annual revenue to remain near last year’s levels.

Uganda

Government to collect a billions from new taxpayers About 150 large and medium taxpayers have been included in the tax bracket, to enable the tax authority garner at least Shs7 billion (2 million) by close of the financial year Tax analysts and economic observers say this is a good step towards boosting domestic revenue performance, after years of burdening the formal segment.

“The designated Withholding Tax Agent list has been expanded with 150 agents from the large taxpayers and Medium Taxpayers who contribute 90 per cent of the domestic revenue we collect,” said representative of Uganda Revenue Authority (URA) Withholding tax is a method of collecting advanced income tax by designated agents (companies) who collect it on behalf of government.

This means if one is a Withholding Tax agent (company), he/she is mandated to withhold six per cent tax on any payment worth Shs1 million or more that his/her suppliers makes.

But should the withholding tax agent (companies) fail to remit this tax to URA by the due date, then they will become personally liable to pay that tax together with a penalty.

The total amount predicted to be spent is 28 times that which was spent by tourists during the week of last July’s World Youth Day (WYD) in Rio, which was estimated at €277 million.

Most of this spending is predicted to come from three million domestic tourists keen to support the Brazilian team. Brazilians are expected to spend €5,6 billion during the competition. Embratur’s calculations suggest that Brazilian tourists are likely to visit host cities for an average of ten days.

Based on historical figures for tourists entering Brazil and ticket sales figures from FIFA, football’s world governing body, it

107 September 2013 | www.cordmagazine.com

Pekka Vauramo, the CEO at Finnair

is expected that 600,000 foreigners will visit Brazil for the 2014 World Cup and inject a further €2.1 billion into the economy.

The World Cup will be staged across twelve host cities in Brazil. Rio is the most expensive with a projected daily spend of €255 per person, which includes lodgings, meals, transport and shopping.

After Rio, the next most expensive host city is expected to be Brasília and the cheapest should be Natal with an average daily spend of €127. The variation in expenditure is due mostly to the difference in prices for hotels and guest houses.

Reaction “As politicians we have to react to the fact that many people do not feel that they can relate to the EU.” — Angela Merkel, Chancellor of Germany

06

Russia

St. Petersburg Suburbs Attract More Buyers When it comes to choosing a place to live in St. Petersburg, the most popular areas are in the center of the city: The Central district, the Petrograd Side and Vasilevsky Island However, as a result of their popularity, the availability of apartments is limited, forcing locals to look for alternative options in suburbs located close to the ring road.

In response to the growing demand for real estate in the suburbs, construction companies are now also focusing their attention on rapidly developing residential real estate in these areas.

Almost half of all residential real estate put on the market in 2012 was located in the city’s suburbs and in the Leningrad Oblast.

According to the Petersburg Real Estate Consulting Center, in 2012 these areas accounted for 1.45 million square meters of residential space on the market, while the inner city areas accounted for 1.9 million square meters. By the end of 2012, the suburbs were home to 16.5 percent of the total residential real estate available in St. Petersburg, a figure that has grown to 26 percent today.

The average price for townhouses in the popular Vsevolozhsk district is slightly higher, costing from 1.7 to 3 million rubles ($51,673 - $91,188). The high demand in this location is due to its pastoral setting.

08

07

Italy

Public debt reaches new record high Italy's public debt hit a new record in June of €2.0751 trillion, due to an increase in liquid assets held by the treasury. The country's public debt rose €600 million from May, the central bank said The increase in the Italian treasury’s liquidity was to cover public administration costs, the bank noted.

On a more positive note, June tax revenues rose by 21.5 percent to €46.3 billion from the same period of 2012, according to the bank.

Since the onset of the eurozone crisis, Italian governments have been seeking cut Italy’s vast

sovereign debt load - currently around 130 percent of national economic output (GDP) and the second highest in the eurozone after Greece.

The public debt hit 127 percent of GDP last year and the outgoing technocrat government of Mario Monti in April worsened its forecast saying the ratio would would hit 130.4 percent in 2013.

Current prime minister Enrico Letta has vowed his coalition government will maintain budget discipline and fiscal consolidation while stimulating growth.

Spain

Qatari Sheikh Wants To Build Puerto Banus II Sheikh Abdullah Bin Nasser Al Thani, who recently purchased Malaga FC has unveiled his intention to build a second Puerto Banus style complex in Marbella’s Bajadilla marina.

The project would require an investment of €70 million and include the expansion of the marina with 400 additional moorings for small and medium-sized yachts.

According to various reports in local press, the Sheikh had initially intended to buy Puerto Banus but lost interest due to the lack of expansion potential.

Miguel Gomez, the President of the Tourist Initiative Center in Marbella has stated that other Arab investors have an interest in Marbella and the Costa del Sol given that they feel it is a safe place to invest.

The Sheikh also met with the President of the Andalucian government, José Antonio Griñán where he presented the President with his investment projects and intentions. Abdullah Al-Thani was accompanied to the Casa Rosa (Pink House) by three of his collaborators, including Abdullah Ghubn and José Rodriguez de la Borbolla.

cordeditorial@cma.rs |

107 September 2013 | 41

after work VojvoDJanska Bank

The Future Generation Vojvođanska Bank is getting on board with the implementation of a social inclusion project aimed at orphaned children

In late August, at an official ceremony held at the Serbian Parliament building, Vojvođanska Bank publicly announced its involvement in the implementation of a social inclusion programme called “THE FUTURE GENERATION”. Under the auspices of the Republic of Serbia’s Parliament, the Dale Carnegie Training Serbia has been successfully realizing this programme for nearly a year. The main goal of the “THE FUTURE GENERATION” programme, of which Vojvođanska Bank is a proud sponsor, is to motivate children without parental care and foster their interest in further education while preparing them for the challenges of living in a modern world. The orphaned children

from Serbia, ages 15, 16 and 17, will be given the opportunity to get involved with the programme, prepare themselves for living independent lives and increase their chances of employment. The children who are going to participate in the programme attended the official launch of this successful collaboration, as did Deputy Speaker of Serbian Parliament Professor Dr Žarko Korać, Deputy Secretary General of the Serbian Parliament Mr. Mladen Mladenović, Chairman of Vojvođanska Banka’s Executive Board Mr. Marinos Vathis and President of the Dale Carnegie Training Serbia

UniCredit Bank

Mr. Zoran Radovanović.

“We are very proud and happy to have been given an opportunity to get involved with this exceptional programme. With the support of the Serbian Parliament and together with the Dale Carnegie Training Serbia, we are going to do our utmost to motivate and prepare you for the road ahead. This road is long indeed, filled with new findings and experiences. We are ready to provide you all the support you need along the way. I am confident that together we will succeed in creating a good and promising future for you. We at Vojvođanska Bank sincerely believe that you will always have somebody to count on in every step you make toward become independent individuals,” Chairman of Vojvođanska Bank’s Executive Board Marinos Vathis said to the children present.

Following a tour of the Serbian Parliament, the children left for Palić where they will attend a three-day training session at Vojvođanska Bank’s Educational Centre.

Oktoberfest

Idea for a Better Tomorrow

Fourth Belgrade Oktoberfest

Foundation Ana and Vlade Divac, UniCredit Foundation and UniCredit Bank, supported by SIEPA and TOS, have chosen the winners of the competition ‘Idea for a Better Tomorrow’ whose goalwas to identify ideas for products or services which can contribute to the improvement of Serbia’s image in the region and abroad and country’s export potential. Nine best candidates were awarded with grants in the amount of € 56,000.

Theawards went to Strawberry Energyfor the production of mini SOS device,Serbian Film Association for the development of movie locations data base, „Štap&kanap“ for the production of chilly jam, „Old crafts for a new age“ for the souvenir shop, MilošErceg forgoat cheeses, MirjanaLukovićfor production of organic raspberries, NikolaNinkov for production of cold-pressed sunflower and soybean oil, SlađanaPajovićfor production of typical handicrafts andSlavicaVračarićfor production of foodcharacteristic for Kremna area.

Oktoberfest in Munich is celebrating its 180th anniversary, and Belgrade can be proud of celebrating its fourth DSW Oktoberfest.

The DSW-Oktoberfest, a unique event in Serbia, organized by the DSW - the German-Serbian Business Association for their members, friends and business partners, will take place on the 18th and 19th of October 2013. The ceremonial opening is always entrusted to the German Ambassador, His Excellency Mr. Heinz Wilhelm.

This year’s partner of the DSW Oktoberfest is Mercedes-Benz SCG doo, and our sponsors are DHL, Valman, Milsped, Peri Oplate, Hemofarm, Stihl, VB Leasing, Bayer, Flyer, TPA Horvath, Erste Group Immorent, Merck, and Wilo. Members and friends are already looking forward to a unique and traditionally good “Oktoberfest atmosphere” in Serbia.

If you are lucky and able to get a ticket, you will be pleasantly surprised.

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107 September 2013 | www.cordmagazine.com

serbia at your fingertips

The Best Option for All Your Needs in Serbia Comprehensive, constantly updated news on events and happenings in Belgrade. Features and reviews authored by fellow Expat residents of Serbia. Up-to-date accomondation and entertainment cordeditorial@cma.rs | 107 September information. Useful links, listing and information on services, offers and the best deals.2013 | 43

faces & places 01.07.2013

Canada Day Canadian Ambassador H.E. Mr. Roman Waschuk and his wife Oksana Smerechuk hosted a reception at the Embassy in Uzicka Street in celebration of Canada Day. The reception was attended by numerous diplomats, and Serbian President Mr. Tomislav Nikolic and his wife.

H.E. Mr. Roman Waschuk and his wife Oksana Smerechuk

H.E. Mr. Michael Kirby and Dragan Djilas

President Mr. Tomislav Nikolic with representative of Diplomatic Corps

H.E. Mr. Michael Kirby and Ivica Dačić 02.07.2013

Independence Day The U.S. Embassy held its traditional Independence Day celebration with servings of hamburgers. U.S. Ambassador H.E. Mr. Michael Kirby greeted 3,000 guests at the Ambassador’s residence and said, on the occasion, that he was hopeful that the relations between the US and Serbia would continue to grow stronger. The celebration was attended by the highest Serbian officials: President Tomislav Nikolić, Prime Minister Ivica Dačić, Parliament Speaker Nebojša Stefanović, Slavica Đukić Dejanović, Suzana Grubješić, Bratislav Petković, as well as US Deputy Assistant Secretary of State Phililp Reeker.

Ivica Dačić Prime Minister, Tomislav Nikolić President, Nebojša Stefanović Parliament Speaker and Ambassador Kirby 05.07.2013

Venezuela’s Independence Day The Embassy of the Bolivarian Republic of Venezuela to Serbia held a reception in celebration of 202 years of independence from Spain – Venezuela’s Independence Day. The Embassy’s Charge d’Affairs, Dr Dia Nader de El-Andari, held a reception at the official residence of the Venezuelan Embassy with the Embassy’s friends, representatives of diplomatic missions, religious communities, social, political and cultural organizations, as well as prominent academics and intellectuals in attendance. Latin Sound Band complemented the atmosphere with Latin American sounds.

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107 September 2013 | www.cordmagazine.com

08.07.2013

Conference: Serbia Turns to Economy – Responsibly and Together Out of the Crisis The Delegation of the EU to Serbia, Serbian Business Club Privrednik, Foreign Investors Council (FIC) and the American Chamber of Commerce (AmCham) in Serbia held a conference called ”Serbia Turns to Economy – Responsibly and Together Out of the Crisis”. Representatives of the Serbian government, the IMF and World Bank’s offices in Serbia, who organized the conference, talked about concrete steps in taking the economy out of the crisis and improving the business climate in our country.

Mlađan Dinkić and Miodrag Kostić

Costin Borc, CEO of Lafarge Serbia and Bogdan Lissovolik, IMF

Aleksandar Vučić and Franc But, Slovenian ambassador to Belgrade 14.07.2013

Bastille Day

H.E. Mr. François-Xavier Deniau

Vladimir Božović and Michael Devenport, British Ambassador

The French Embassy in Serbia held a reception in celebration of France’s national holiday – Bastille Day - at the Embassy’s residence. The guests were greeted by French Ambassador to Serbia H.E. Mr. François-Xavier Deniau and his wife Alexandra. For the third consecutive year, Société Générale Serbia joined the Embassy in hosting the celebration of the French national holiday. The St. George String Orchestra provided musical entertainment for the guests.

cordeditorial@cma.rs |

107 September 2013 | 45

faces & places 10.07.2013

18.07.2013

Summer Concert

Concert by Nemanja Stanković

Austrian Ambassador to Serbia HE. Mr. Johannes Aigner hosted a Summer Concert at the Austrian Residency in Belgrade. Nemanja Stankovic, principal cellist of the Belgrade Philharmonic Orchestra, accompanied by Jovanka Višekruna Janković, piano, performed works

by Johann Sebastian Bach Joseph Haydn, Pyotr Ilyich Tchaikovsky, Niccolo Paganini, and Astor Piazzolla in presence of representatives of diplomatic corps, their families, friend and Belgrade’s cultural personalities.

The Italian Ambassador to Serbia H.E. Mr. Giuseppe Manzo hosted a concert by young cellist Nemanja Stanković in honour of the young restorers from the Central Institute for Conservation in Belgrade and their exceptional work.

H.E. Mr. François-Xavier Deniau, H.E. Mr. Michael Devenport and HE. Mr. Johannes Aigner

Nebojša Bradić (left) and H.E. Mr. Giuseppe Manzo

Mrs. and Mr. Chepurin and Mr. Manzo

24.07.2013

Iftar Reception On the occasion of the Holy Month of Ramadan, H.E. Mr. Majid Fahim Pour, Ambassador of the Islamic Republic of Iran in Belgrade hosted an Iftar Reception at the Residence, with the attendance of ambassadors from Islamic countries, state officials and Islamic religious dignitaries.

30.07.2013

National Day of Morocco On the occasion of the National Day (Throne Day), the Ambassador of the Kingdom of Morocco and Mrs. Abdallah Zagour organized a reception for many prominent guests, officials and friends.

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Nebojša Stefanović Parliament Speaker (left) and Ambassador Ruch

01.08.2013

Swiss National Day

Swiss Ambassador H.E. Mr. Jean-Daniel Ruch organized a Swiss National Day Reception. This year’s celebration was special because it falls on the same day of Switzerland’s launching a competition for the country’s new anthem. The competition will close in January 2014.

15.08.2013

68th anniversary of the Republic of Indonesia’s independence The Indonesian Embassy and Indonesian Ambassador to Serbia held a reception in celebration of the 68th anniversary of the Republic of Indonesia’s independence. The celebration began with the official raising of the Indonesian flag in the yard of the Ambassador’s residence.

H.E. Mr. Eldar Hasanov, Ambassador of Azerbaijan to Serbia and H.E. Mrs. Narinder Chauhan H.E. Mr. Samuel Samson (left) and Mufti of Belgrade Muhamed Jusufspahić

15.08.2013

66th anniversary of India’s independence he new Indian Ambassador to Serbia H.E. Mrs. Narinder Chauhan officially introduced herself as the new ambassador at a celebration of the 66th anniversary of India’s independence which was held at the Crystal Ballroom of the Hyatt Hotel in Belgrade. cordeditorial@cma.rs |

107 September 2013 | 47

interview

■ By Zorica Todorović-Mirković

Guerrilla gardeners arrive in Belgrade

Infusing Nature into

City Drabness

If it happens that one morning you notice a small flower garden growing in front of your building in what used to be neglected flower boxes, serving as rubbish bins to passersby, don’t be fooled into thinking that you’ve been visited by elves during the night. Guerrilla gardeners have arrived in Belgrade. These young people have been planting flowers in depreciated nondescript urban areas, unannounced and without the permission from city authorities.

M

omčilo Antonijević is a reporter, a culturologist, an herbalist and the man responsible for the guerrilla gardening movement’s coming to Serbia. A year ago, Momčilo and a few of his friends decided to plant lavender on a small abandoned patch of land in front of their building in the Belgrade residential quarter of Palilula.

“I have always believed that a man can change only a small fragment of the universe – himself. Hence, I decided to get out

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and do something tangible. One night in June, we armed ourselves with seedlings, hand shovels and watering cans, and embarked on our very first guerrilla gardening campaign. In under an hour, we planted our flower garden, and we went home so pleased with ourselves. Regrettably, the destiny of this little garden was anything but fortunate. The next morning, we noticed that somebody took all the plants out. But, we, the guerrilla gardeners, are a headstrong bunch and don’t give up that easily. We can plant more than you can destroy.

A year later, we assembled in the same place, firmly resolved

to plant a new, bigger and better garden and, this time around, we came much better prepared. We invited a few public figures with guerrilla gardening inclinations. We also had people from the media present, so the word got around. The new garden was planted in the old location and, much to our joy, it is still there.”

Apart from planting in designated places, guerrilla gardeners often unexpectedly spring up in other places too – they plant strawberries in holes in the asphalt, and turn broken mailboxes into wonderful flower arrangements. The guerrilla gardeners highly value recycling and plant in used plastic bottles which hang off unsightly concrete walls. Because they planted basil and rosemary on uncultured abandoned pieces of land surrounding high-rise buildings, people living there can now enjoy a mosquito-free environment since these two plants have mosquito-repelling properties.

lar things for years contacting us.

They say that they didn’t have a clue they were considered guerrilla gardeners too. Also, we get many invites from the people to cultivate neglected patches of land in front of their buildings. We love to sow and plant, but what we love even more is to motivate people to take the initiative, get out and plant a flower or two in front of their buildings. This might be a small step, but if hundred people did it, the effect of it would be visible to all.”

Although they have been planting without having official permission from city authorities, the guerrilla gardeners have never broken the Apart from using ‘weapons’ law since the places they choose as like shovels, watering cans their make-over sites are not under and seeds, the gardening anyone’s jurisdiction owing to loopguerrilla often resorts to using holes in law. The guerrilla gardensmall humus balls (or bombs, ers have planted seven small gardens in Belgrade – three in downtown as they call them) mixed with Belgrade, two in Novi Beograd, one in Miljakovac, and one in Borča. The medicinal plants, wheat or invitations to come up and spruce up flower seeds residential areas with flowers have Apart from using ‘weapons’ like been pouring in from all over the city. shovels, watering cans and seeds, the gardening guerrilla often resorts to using small humus balls (or bombs, as they call The guerrilla gardeners usually feel welcome wherever they them) mixed with medicinal plants, wheat or flower seeds. go, and the news about these people spreads fast. They say These ‘bombs’ are scattered all over uncultured strips of land that they have been planning campaigns in Subotica, Niš, Novi near roads, deserted fields, curbs and green areas between skyscrapers. When soaked in rain, they ‘explode’ and plants grow out of them. The seeds of drought-tolerant, low maintenance plants turned out to be the best ‘filling’ for these green ‘bombs’. Our guerrilla gardeners usually use flax, sunflower, moss-rose, or marigold seed.

Momčilo says that there is no hierarchy, code of conduct or rigid organization in the guerrilla gardening movement. The guerrilla gardeners devise their campaigns on social networks and everybody’s invited to join in.

“Ever since we’ve uploaded our clips to YouTube and became interesting to the media, we have had many people who have been doing simi-

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107 September 2013 | 49

Sad, and Užice. Apart from the approval and support they get from ordinary citizens, they have also been contacted by big socially responsible companies also willing to help. “We are self-funded. As of recently, we’ve been contacted by big companies wanting to participate in raising environmental awareness and motivating people to treat their living environment in a respectful manner. The fact that the number of these individuals and large corporations in Serbia has been constantly growing gives us reason to be optimistic. With their help, we can plan big.”

The guerrilla gardeners usually feel welcome wherever they go, and the news about these people spreads fast

City gardens have been really popular in big towns for quite some time now, and Serbia will be no different. The guerrilla gardeners want to plant fruit and vegetable gardens in several locations in Belgrade, and the produce will be distributed among the residents of the nearby buildings. “Michelle Obama has planted celery, courgettes and tomatoes in the White House garden. Since then, the idea of urban gardens has been spreading like fire all over the world. For starters, we plan to plant strawberries, chilli peppers and cherry tomatoes on the roof of a high-rise building, and the kids living in this building will be allowed to pick strawberries as they please. I would really like us to start planting vegetables that seem to have been forgotten or have disappeared all together. We shall have the help of the people who have been collecting and preserving the seed of the old Serbian vegetable sorts which have been pushed out by their hybrid cousins since their yield is higher or they are more resistant to diseases. We also want to plant herb gardens, namely basil, oregano, marjoram, sage, mint, coriander, parsley and chives,” Antonijević says.

make that initiative work, or at least try to. Maybe there is a hidden guerrilla gardener in you. Don’t think too much whether your effort will be noticed or not. Be prepared for the possibility that the fruit of your labour could be ruined out of sheer mischief.

Still, you need to be optimistic when embarking on a guerrilla gardening campaign. The effect of finding beauty in unexpected places is very strong.

Stronger than any fine, ban or censorship. So, don’t miss out on an opportunity to dress up a patch of land you see from your window every day. ■

If you like any of the above mentioned ideas, please feel free to take the initiative, use half an hour of your time and

guerrilla gardening

The guerrilla gardening movement evolved in the US in the 1970s. The movement’s objective is to raise awareness about the importance of environmental aesthetics in urban areas and the planet we live on, as well as to infuse nature into urban drabness. Their campaigns often happen during the night. They like when public figures join in to popularize their humorous performancelike campaigns and make sure that their message about the importance of nature is well-received. The guerrilla gardening campaigns are often taped and uploaded to YouTube.

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SPECIAL EDITION

"World Markets and Opportunities"

Azerbaijan The Land of Fire

2013 azerbaijan | World Markets and Opportunities | 51

Azerbaijan is ranked 51 in the Global Competitiveness Report for 2009-2010, which is above other CIS countries. Furthermore, even in the current economic situation Standard&Poor’s increased the Azerbaijani rating’s forecast from “stable” to “positive”

At 86.6 thousand square kilometers in total and a population of around 9.4 million, Azerbaijan, with its strategic geopolitical location, has been at the crossroads of several civilizations over the centuries

The folk arts of Azerbaijan are multi-colored, complete and rich, as its natural resources. The folk art is connected with daily life of people and cover a long period from ancient times to nowadays and including a variety of products from garments to housing goods and decoration 52 | World Markets and Opportunities | azerbaijan

Republic of Azerbaijan is the largest country in the Caucasus region of Eurasia. Known for its wealth of crude oil and natural gas reserves, Azerbaijan is bounded by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west, and Iran to the south

Azerbaijan led the world as the top reformer in 2007/08, with improvements on seven out of 10 indicators of regulatory reform. Azerbaijan’s extensive reforms moved it far up the ranks, from 97 to 33 in the overall ease of doing busines

Azerbaijan is a country of ancient culture. The talented and creative powers of the nation are personified in such epic monuments as "Kitabi-Dede Gorgud", "Oguzname" "Keroglu" and many others

The Government of Azerbaijan has set the development of Azerbaijan as an elite tourist destination a top priority. It is a national strategy to make tourism a major, if not the single largest, contributor to the Azerbaijani economy

The return of Heydar Aliev to the leadership in Azerbaijan laid the foundation for the ideology based on such universal humanitarian values as independence, state formation, patriotism, justice, democracy, national progress and secularity azerbaijan | World Markets and Opportunities | 53

interview

H.E. Mr. Eldar Hasanov, Ambassador Extraordinary and Plenipotentiary of the Republic of Azerbaijan to the Republic of Serbia

Leader in Development of South Caucasus

Azerbaijan is rapidly developing and modernizing in all segments. Democratic reforms are underway, as are major energy and transport projects of international importance.

At the same time, Azerbaijan has been transformed into a country with the fastest economic growth, while becoming an integral part of the global community and Euro-Atlantic structures.

A

zerbaijan is very interested in the Balkan region considering that, in the last few years, the presidents of Serbia and Montenegro and head of Bosnia and Herzegovina’s presidency officially visited the country. At the same time, the President of Azerbaijan has officially visited several regional countries, including Serbia and Montenegro. We are talking to the Ambassador Extraordinary and Plenipotentiary of the Republic of Azerbaijan to Serbia, Montenegro, Bosnia and Herzegovina, H.E. Mr. Eldar Hasanov about the mutual interest expressed by the two countries, their collaboration and business and cultural ties.

• From where does this strong interest in the region originate, and what is your view of the development of the diverse bilateral relations between our two countries?

- I am the Ambassador of the Republic of Azerbaijan to three Balkan countries, and I would like to use this opportunity to give you some brief information about Azerbaijan, which has a long history of statehood and a deep-rooted cultural and national heritage.

Azerbaijan is rapidly developing and modernizing in all segments. Democratic reforms are underway, as are major energy and transport projects of international importance. At the same time, Azerbaijan has been transformed into a country with the fastest economic growth, while becoming an integral part of the global community and Euro-Atlantic structures. The country has been internationally recognized as a reliable partner.

The most obvious example of this is Azerbaijan’s being chosen as a non-permanent member of the UN Security Council in 2012-2013, and this is something for which we need to thank our strategic partner – the Republic of Serbia –since

54 | World Markets and Opportunities | azerbaijan

it was Serbia that has supported us during the election process. The main strategic directions of our development have been set out by the allnational leader of the Azerbaijan people, Heydar Aliyev. Today, these development directions are successfully pursued by his honourable successor Ilham Aliyev.

Our country attaches great importance to establishing good friendly relations with all countries in the world. As you have underlined, the official visits of various heads of state to our country indicate interest for bolstering the cooperation with Azerbaijan. Of course, it is also important for Azerbaijan to strengthen its relations with the countries in this region, including Serbia, Montenegro and Bosnia and Herzegovina in different segments. Boosting relations between these countries and Azerbaijan can contribute to the development of bilateral relations, regional and international cooperation.

The development curve of our relations has been upward and dynamic, especially after the mutual official visits of the heads of states, foreign ministers, economy ministers, MPs and other high officials. Following this, our relations have been elevated to a new level – that of strategic partnership. During the official visit of Serbian President Tomislav Nikolić to Azerbaijan in February, the two sides signed a “Declaration on Friendly Relations and Strategic Partnership.”

The documents signed by the two governments have formed a strong legal framework for the extension of our cooperation. I am confident

Armenia

Serbia

Technology

There is a strong international legal foundation for the resolution of the conflict with Armenia.

On the international stage, Azerbaijan and Serbia have mutually recognized each other's territorial integrity.

Information and communication technology (ICT) is one of the top priority segments in Azerbaijan.

that the activities of the joint intergovern- - Azerbaijan is a tolerant country, where people parliamentary democratic republic: the Demomental commission and inter-parliamentary of different cultures and religions have been liv- cratic Republic of Azerbaijan. Resting on the ties will be very important in solidifying our ing in peace for centuries. Therefore, our country ancient tradition of statehood and concordantly bilateral relations. Joint projects in various attaches a great importance to dialogue, respect combining global, European and national valsegments of economy, including transport, and love among all cultures and religions, and ues with the characteristics of Eastern cultures, the Republic became the first legal, construction, infrastructure and globally recognized state in the East. tourism, have been successfully Even at that time, the Democratic implemented.

Republic of Azerbaijan bore the atFollowing a decree by Azerbaitributes of a state, had its own parjan President Ilham Aliyev, and liament, was the first country in the with the support of the AzerbaiEast to give women voting rights, jan government, several humanand made important decisions and itarian projects have been realcarried out practical steps in buildized, including sprucing up and ing the state, army, culture, educareconstructing the Tašmajdan tion and healthcare. As a result of the Park in Belgrade and the wharf long and arduous fight of the Azerin Novi Sad, constructing a mebaijan people for their independmorial complex in honour of the ence, and following the collapse of renowned Azerbaijan composer the USSR, Azerbaijan restored its Uzeyir Hajibeyli, the reconstrucindependence on October 18, 1991, tion of the Bajrakli Mosque in following the adoption of the ConstiBelgrade, the St. Petka Church tutional Act on State Independence. in Novi Sad, the Cultural Centre The modern-day, independent Azerin Novi Pazar, the Retirement baijan state is a true successor of the Home in Banja Luka, the Centre The monuments of Heydar Aliyev (left) and Uzeyir Hajibeyli (right) Democratic Republic of Azerbaijan for Blind and Vision-Impaired Children and Youth in Sarajevo, and the or- preservation of cultural and religious monu- which existed from 1918 to 1920. ments, as well as the national, ethnic and culphanage in Bijelo Polje.

Also, following an initiative by the Azerbaijan Em- tural heritage not only in our country, but abroad • In the last ten years, your country’s economy bassy in Serbia, several books in the Azerbaijan too, especially in those countries that are Azer- has been rapidly developing. Could you describe the stages of this development for us language have been translated into Serbian, in- baijan’s strategic partners. and the main development prerequisites? cluding: “Heydar Aliyev” dedicated to All-National Leader of the Azerbaijan people from the edition • Azerbaijan is the first secular parliamentary - Today, the Azerbaijan economy is one of the “The Lives of Notable People, “Colours” by Ra- republic in the entire Muslim world (the parlia- economies with the most dynamic growth in the world. Thanks to successfully sul Rza, “Death Penalty” by Elchin conducted reforms, our country beEfendiyev, and Milorad Pavić’s “Dic- Every year, the Azerbaijan government gives a came a regional leader. Azerbaijan tionary of the Kzahars” has been donation to the Centre for Long-Term Care of has been actively participating in translated in Azerbaijan language. global economic and energy proDuring the official visit of Presi- Mothers, Children and Refugees in Vojvodina jects, both regionally and internadent Nikolić, we officially unveiled a monument erected in honour of Nikola Tesla in mentary republic was founded in 1918). What tionally. Our country has been contributing Baku. Every year, the Azerbaijan government gives kind of political heritage does this fact imply to energy safety in Europe. Even during the a donation to the Centre for Long-Term Care of and how important is the foundation of a par- very difficult global financial downturn, our liamentary republic for modern-day Azerbaijan? economic development did not stop. We have Mothers, Children and Refugees in Vojvodina.

- The day of the foundation of the Democratic managed to triple our national GDP, i.e., to re• Your country has been supporting and ac- Republic of Azerbaijan, May 28, 1918, is one of cord 300% growth. Our economy has been ditively participating in the restoration of cul- the brightest and most memorable days in the versified while the state has been focusing on tural and religious heritage not only in Serbia, history of Azerbaijan statehood. In 1918, the year development of the non-oil sector. but in other regional countries too. What is the of the adoption of the Declaration of Independ- The Azerbaijan economy is liberal and we have ence in the East, the Muslim world got its first created good conditions for the development purpose of this support? azerbaijan | World Markets and Opportunities | 55

of the private sector. Such liberal economic • What is the future of the economic rela- - The Armenian aggression against Azerbaipolicies have also facilitated the develop- tions between Azerbaijan and Serbia? jan is currently the most painful problem for ment of entrepreneurship in the country. The - Bilateral relations between Azerbaijan and the Azerbaijan state and its people. The agprivate sector has over an 80% share in the Serbia have been rapidly developing The Re- gression is continuing, and there is still no economy. Overall, the modern-day Azerbaijan public of Azerbaijan and the Republic of Ser- solution in sight for the Armenian- Azerbaieconomy makes up between 75% and 80% of bia have created an intergovernmental com- jan Nagorno-Karabakh conflict. The conflict the entire South Caucasus economy. We have mission for commercial and economic coop- is a single biggest threat to peace and stabeen also implementing gradual measures eration which covers all aspects of economic bility in the region. For over 20 years, 20% toward reducing unemployment. During the cooperation. The Serbian-Azerbaijan Cham- of Azerbaijan’s territory has been occupied by last eight years, we have created over a mil- ber of Commerce was founded in Belgrade in Armenian armed forces as a result of ethnilion new jobs. The current unemployment rate 2010. The Serbian Government has created cal cleansing by the Armenians, following stands at 5%. Every year, housewhich millions of our countrymen became refugees and displaced hold income is almost double persons. In the occupied territhe country’s inflation rate.

Information and communication tories, the Armenians have detechnology (ICT) is one of the top stroyed all social and infrastrucpriority segments in Azerbaijan. ture facilities, as well as ancient It gives us great pleasure to say cultural and historic monuments that, early this year, we launched and cemeteries. the first artificial satellite into There is a strong international lethe space, putting Azerbaijan in a gal foundation for the resolution group of countries with a space of this conflict. The UN Security programme. The influential interCouncil has passed four resolunational financial organizations tions about the conflict, demandhave ranked our economy highly. ing from the occupation forces to According to reputable internaimmediately withdraw from the occupied territories. Although tional rating agencies, Azerbaijan The monuments of Milorad Pavić (left) and Nikola Tesla (right) these resolutions have been is ranked 46th in the world on the adopted by the highest instances, economic competitiveness list, and Overall, the modern-day Azerbaijan economy they are not being implemented first in the CIS area. Azerbaijan has in practice. Besides OSCE, the also started to invest in foreign makes up between 75% and 80% of the entire European Council and the Eucountries, with most of our invest- South Caucasus economy ments made in regional countries ropean Parliament have passed and the countries that are our strategic partners. a favourable investment environment for important resolutions too, and the territorial At the same time, we have been expanding the Azerbaijan companies in Serbia. One of the integrity of Azerbaijan is supported by these geography of our investments and have started brightest examples of this is the Azerbaijan institutions. Unfortunately, Armenian politito invest in some European countries too. Invest- company AzVirt’s constructing a Corridor 11 cal leaders have been ignoring them.

In that context, I would like to thank the Sering strengthens economic ties and plays an im- road segment from Ljig to Preljine.

The Republic of Azerbaijan and the Repub- bian state and its parliament for including portant role in maintaining their longevity.

I would also like to underline that, during the lic of Serbia have signed a total of 24 docu- the resolution about “Compliance with infirst six months of this year, over US $12.6 ments covering cooperation in various areas. ternational law and the peaceful settlement billion worth of investments were made in In 2012, the volume of trade between the of the Armenian-Azerbaijani Nagorno-Karathe Azerbaijan economy. Most of these are Republic of Azerbaijan and the Republic of bakh conflict” in the parliamentary agenda, domestic investments (US $7 billion), while Serbia stood at US $25 billion, which has as suggested by Chairman of the Constituthe rest are foreign investments (US $5 bil- grown eight times. tional Affairs and Legislation Committee and lion). This is a very important issue, since Economic cooperation between Azerbaijan the Parliamentary Group for Friendship with Azerbaijan has been deemed as attractive to and Serbia has a great future, and there are Azerbaijan, Vladimir Cvijan. I would also like foreign investors for many years, validated in endless possibilities for further developing to add that the senates and parliaments of US $5 billion worth of foreign investments this cooperation in science, IT, infrastructure, many countries around the world have also made in the country in the space of only six transportation, tourism, agriculture and oth- passed similar resolutions. months. Foreign investments are important er areas of mutual interest.

On the international stage, Azerbaijan and for any country. Regardless of the country Serbia have mutually recognized each other’s having its own strong financial potential, • What are the biggest problems that Azer- territorial integrity and fully support the inviothe trust that foreign investors have shown baijan is facing today, and what is happen- lability of state borders and sovereign rights in our country and their investments are re- ing with the Armenian- Azerbaijan Nagorno- of both countries. I would like to especially underline that the Azerbaijan state has always flected in the country’s overall development. Karabakh conflict?

56 | World Markets and Opportunities | azerbaijan

and will always support Serbia’s territorial integrity.

• A presidential election is due to take place in Azerbaijan in October. What do you expect from the election, and which candidate has the best chance of becoming the next Azerbaijan president?

- Since Azerbaijan is a secular, democratic and legal state, our presidential elections are certainly going to be held in accordance with the Constitution and legislation of the Republic of Azerbaijan, international principles and requirements and in an open and democratic manner. As a citizen of Azerbaijan, I personally believe that the people of Azerbaijan are going to vote for a bright future, prosperity and stability, and a candidate who advocates an independent policy and whose strategy will not remain on paper only but will be

a 21st century Azerbaijan?

- Azerbaijan is a country with a good geographical position and substantial natural resources.

Developing our scientific and technological sector, improving education and healthcare to comply with contemporary requirements, improving social welfare and preserving the country’s territorial integrity are the top priority issues for us.

In terms of other segments, we have been implementing very important projects that will transform Azerbaijan into a true tourist country. The public indicator of this is the increasing number of summer and winter resorts, tourist centres, and hotels which are scattered all over the country. This year alone, five luxury (five star) hotels have been opened in Azerbaijan.

Developing sports is also something that the state authorities

During the first six months of this year, over US $12.6 billion worth of investments were made in the Azerbaijan economy implemented in practice, based on his desire to serve the people. I am confident that, out of 15 presidential candidates, the Azerbaijan people, by far, trust the current president, Ilham Aliyev, the most. During the last decade, Ilham Aliyev secured political stability, steadfast economic development, modernized infrastructure, facilitated the development of new technologies, has successfully resolved and continues to resolve the population’s social issues (particularly those pertaining to refugees), and is absolutely capable of resolving the supremely important issue of the country’s territorial integrity.

• Azerbaijan is situated on the intersection between the East and West. What are the strategic advantages and drawbacks of such a position? What is your vision of

feel strongly about, and we have already shown great results in this area. In the last 10 years, Azerbaijan built close to 20 Olympic facilities which resulted in our athletes winning more Olympic medals. We are proud of the fact that, for the first time ever, Baku will host the European Olympic Games in 2015.

If we are talking about sports, I also have to mention that over 40 Serbian athletes and coaches are engaged in various sports in Azerbaijan.

Simply put, we have many plans for our future, and I am confident that the Azerbaijan people want to see unity between the government and the people, while a purposeful domestic and foreign policy, conducted by the head of our state, will help in achieving the goals that we set for ourselves in the 21st century. ■

profile

H.E. Mr. Ilham Heydar oglu Aliyev, President of Azerbaijan

Master of Diplomatic Game More than 76% of voters supported Ilham Aliyev’s candidacy during the elections in 2003. In 2008, he was elected to the second term of the President of the Republic of Azerbaijan, after acquiring 88% of votes of electorate in the elections

T

he most influental figuers in Azerbaijan is it’s President Ilham Heydar oglu Aliyev.

Within internal politics, he has never had serious rivals capable of challenging his firm grip on the Azerbaijani politics. Aliyev’s clear determination to defend his country’s independence in foreign affairs and masterful diplomatic game aimed at building effective relations with all the regional players He was born in December 24, 1961, in Baku, where he attended a secondary school from 1967 till 1977. In 1977, he entered the Moscow State University of International Relations (MSUIR). In 1982, upon his graduation, Mr. Aliyev had continued his education as a postgraduate student in MSUIR. In 1985, he finalized his research works and received a PhD degree in history. During the years of 1985-1990, he gave lectures at the Moscow State University of International Relations.

From 1991 to 1994, he led a group of private industrial-commercial enterprises. In 1994-2003, he was the vice-president, and later the first vice-president of the State Oil Company of the Republic of Azerbaijan (SOCAR). He had been actively involved in the implementation of Heydar Aliyev’s oil strategy.

He is an author of numerous research works on geopolitical aspects of oil strategy of sovereign Azerbaijan. He holds a degree of doctor of political sciences. In 1995 and 2000, he was twice elected to the Milli Majlis (Par-

liament) of the Republic of Azerbaijan.

Since 1997, Mr. Ilham Aliyev is the President of the National Olympic Committee of Azerbaijan. For his great contribution to the development of sports and Olympic movement, Mr. Aliyev was awarded the highest order of International Olympic Committee and “Grand Cordon” Order of Merit of International Military Sport Council.

He has been elected deputy chairman of the New Azerbaijan Party in 1999, first deputy chairman in 2001, and the chairman of the Party in 2005. From 2001 to 2003, he was the head of the Azerbaijani Parliamentary delegation to Parliamentary Assembly of Council of Europe (PACE). In January 2003, he was elected as Deputy-Chairman of Parliamentary Assembly of Council of Europe and member of the PACE bureau. In August 4 2003, following the approval of the Milli Majlis (Parliament), he was appointed as the Prime minister of the Republic of Azerbaijan.

In October 15, 2003, he was elected as the President of the Republic of Azerbaijan. More than 76% of voters supported Ilham Aliyev’s candidacy during the elections. He assumed his post on 31 October, 2003.

Ilham Aliyev was elected to the second term of the President of the Republic of Azerbaijan, after acquiring 88% of votes of electorate in the elections, held on October 15, 2008. He started to execute the Office of the President of the Republic of Azerbaijan on October 24, 2008. ■

azerbaijan | World Markets and Opportunities | 57

interview

Mihailo Vesović, Deputy President of the Serbian Chamber of Commerce

Cooperation Despite Distances Based on a survey conducted among interested company representatives, the Serbian Chamber of Commerce (PKS) has managed to compile a list of the economic cooperation segments which carry the biggest growth potential. Apart from having an organized approach to the Azeri market, there is a potential for growth in food industry, seed and seedlings and medication exports.

The bilateral economic cooperation between Serbia and Azerbaijan is characterized by a relatively small trade volume of a classical buy/ sell nature, devoid of more sophisticated cooperation formats. Serbian exports (to Azerbaijan) have been constantly growing, while we mostly import energy derivatives, like liquid butane. As of 2009, we have been also importing unwrought aluminium. As the Deputy President of the Serbian Chamber of Commerce Mihailo Vesović says in this interview for CorD, the Serbian economy wants to bolster economic and commercial relations with the Republic of Azerbaijan, especially in the export segment, as well as have a better quality product structure in trade between the two countries.

58 | World Markets and Opportunities | azerbaijan

• Could you rate the economic cooperation between Serbia and Azerbaijan for us?

- In the first half of 2013, Serbia exported US $25 million in goods to Azerbaijan, six times higher than in the same period last year. The total trade between the two countries in 2012 amounted to US $33.71 million with the Serbian side recording a US $30.11 million surplus. The bilateral cooperation is still dynamic with both imports and exports growing.

• Cooperation between the two countries has been reduced to regular trading. Is there any chance of

of Commerce (PKS) has managed to compile a list of the economic cooperation segments which carry the biggest growth potential. Apart from having an organized approach to the Azeri market, there is a potential for growth in food industry exports, namely: frozen and canned fruits and vegetables, pasta, confectionery, dairy products, food additives, meat products produced to the Halal quality standard, and sugar.

Also, we can export seed and seedlings of grapes and different fruits, maize and potatoes. Apart from that, there is growth potential in exporting plant protection chemicals and veterinary medicine.

The two chambers have been periodically exchanging information about the new elements in legislation and doing business in Azerbaijan, as well as providing business people with the logistics required to establish business contacts having more sophisticated formats of the economic cooperation in the near future?

- Based on a survey conducted among interested company representatives, the Serbian Chamber

This list also includes medications and medical equipment, furniture, flooring, paper, special cardboard, PVC and aluminium windows, doors, profiles, construction machinery, hydro-technical equipment, spe-

cial civil engineering constructions, electrical equipment, agricultural machinery and equipment, chemical industry products, paints, varnishes, industrial and specialized motor lubricants for protection of metal and rubber, tourism and tourist services, and arms and military industry.

• Have Serbia and Azerbaijan concluded any international economic cooperation treaties?

- Taking into consideration the need to define the framework of institutional economic cooperation, the Serbian Chamber of Commerce has signed a Memorandum of Understanding with Azpromo and a Cooperation Agreement with the Chamber of Commerce and Industry of Azerbaijan. At various events and meetings, business people from the two countries have talked about the obstacles in cooperation, mainly the great geographical distance between the two markets, high freight forwarding and transport costs and relatively high costs associated with business trips. The economies of Turkey and the Russian Federation exert a great influence over the Azeri market, while the customs treatment and visa regulation between our two countries additionally hinder cooperation.

The chambers of commerce from both countries have been trying to facilitate better access to information about reputable companies and their business activities, and the creditworthiness of potential buyers and investors since business people have been underlining the need to have fast and accurate information at virtually every meeting. Also, the two countries’ chambers are advocating the signing of a special visa regime for business people to be put in place ASAP which would help in getting longer visas with unlimited number of entries.

It would be a huge relief for business people if there were direct or corresponding links between the two countries’ banks based on standard

banking practices and compliant with the International Chamber of Commerce (ICC) regulation.

The two chambers have been periodically exchanging information about the new elements in legislation and doing business in Azerbaijan, as well as providing business

ing materials, bending machines, hydraulic presses, gas filtering and purifying equipment, lathes, medication, electrolysis and electrophoresis equipment, metal transfer machines and iron and steel containers.

In terms of import, the situation is much different since 99.9% of our import from Azerbaijan has been unwrought aluminium.

Arms and the military technology industry, as well as companies like Sloboda Čačak, Prva Iskra–Namenska, Zastava Oružje Kragujevac and Yugoimport SDPR are the biggest exporters to Azerbaijan, as are Hemofarm Vršac and Tarkett Bačka Palanka. The export results achieved

by Impamil Belgrade, Šabac Dairy and Jaffa Crvenka are a clear indication that Serbian food products should find their place on store shelves in Azerbaijan.

In the first half of 2013, Serbia exported US $25 million in goods to Azerbaijan, six times higher than in the same period last year. The total trade between the two countries in 2012 amounted to US $33.71 million with the Serbian side recording a US $30.11 million surplus.

people with the logistics required to establish business contacts.

• The list of products that Serbia has been exporting to Azerbaijan has been constantly growing. Which products dominate the list?

- In 2012, we mostly exported print-

In 2011, Azerbaijan ranked 62nd on the list of the countries to which Serbia exports to the most, while, in 2012, the country jumped to 32nd place.

In the first half of 2013, we mostly exported industrial and laboratory electric furnaces, numerical lathes, machinery and mechanical equipment, hydraulic presses, grinders and electroplating machinery, weaponry parts and accessories to Azerbaijan.

During that period, Serbian exports to Azerbaijan amounted to US $25 million, six times higher than in the first half of last year.

• What has been the PKS doing on establishing a closer economic cooperation with Azerbaijan?

- Exchanging business information, organizing business events and bilateral meetings, visiting and participating in fairs, taking part in the work of the Intergovernmental Trading and Economic Cooperation Commission and regular correspondence with the Serbian Embassy in Azerbaijan. These are the institutional activities carried out by the Serbian Chamber of Commerce. •

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Azerbaijan and Serbia

bilateral cooperation

A History of Friendship Foreign trade turnover volume of Azerbaijan Republic with Serbia accounted for US $22.37 million, including a volume of import US $22.35 million, export US $0.02 million for 2012.

The share of Serbia in foreign trade turnover of Azerbaijan was 0.07%, including 0.23% for import and 0.0001% for export during the mentioned period. During 2012 the foreign trade turnover with Serbia increased by 8.08 times, including export 8.1 times and import 49.13% compared to 2011.

Presidenet Tomislav Nikolic and President Ilham Aliyev

T

he Former Yugoslavia recognized the independence of the Republic of Azerbaijan on December 31, 1991. Diplomatic relations between Azerbaijan and Serbia and Montenegro were established on August 21, 1997.

On March 25, 2010 the Ambassador of Azerbaijan in Serbia H.E. Mr. Eldar Hasanov presented his credentials to the President of Serbia. On February 2011 the Embassy of Serbia was opened in Baku. The Ambassador of Serbia in Azerbaijan presented his credentials to the President of Azerbaijan on May 26, 2011.

High-level mutual visits Presidents: 11-13 May 2010: President of Serbia, H.E. Mr. Boris Tadic official visit; 8-9 June 2011: President of Azerbaijan, H.E. Mr. Ilham Aliyev official visit; 7-9 February 2013: President of Serbia, H.E. Mr. Tomislav Nikolic official visit Ministers: 18-19 April 2007: Minister of Foreign Affairs of Azerbaijan, Mr. E. Mammadyarov; 10-12 October 2007: Minister of Ecology and Natural Resources of Azerbaijan, Mr. H. Baghirov; 5 December 2008: Minister of Justice of Azerbaijan, Mr. F. Mammadov; 2326 June 2009: Minister of Foreign Affairs of Serbia, Mr. Vuk Jeremic official visit; 12-14 July 2010: Min-

isterof Economic Development of Azerbaijan, Mr. Sh. Mustafayev; 3-4 May 2011: Minister of Foreign Affairs of Azerbaijan, Mr. E. Mammadyarov official visit; 31 August - 1 Sept 2011: Minister of Foreign Affairs of Serbia, Mr. Vuk Jeremic; 5-6 September 2011: Minister of Foreign Affairs of Azerbaijan, Mr. E. Mammadyarov; 3-4 November 2011: Minister of Economic Development of Azerbaijan, Mr. Sh. Mustafayev; 21 December 2011: Minister of Labour and Social Politics of Serbia, Mr. R. Ljajic and Minister of Agriculture, Trade, Forestry and Water Economy of Serbia, Mr. D. Petrovic; 24-25 January 2012: Minister of Economy and Regional Development of Serbia, Mr. Nebojsa Ciric; 2 February 2012: Minister of Foreign Affairs of Serbia, Mr. Vuk Jeremic; 14-15 March 2012: Minister of Economy and Regional Development of Serbia, Mr. Nebojsa Ciric; 15 March 2012: Minster of Youth and Sport of Azerbaijan, Mr. Azad Rahimov; 3-4 May 2012: Deputy Prime Minister of the Republic of Azerbaijan, Mr. Elchin Efendiyev; 26-27 November 2012: Deputy Prime Minister, Minister of Foreign and Domestic Trade and Telecommunications of Serbia, Mr. Rasim Ljajic; 28 May 2013: Deputy Prime Minister of the Republic of Azerbaijan, Mr. Elchin Efendiyev; 1-5 July 2013: Minister of Youth and Sport of Serbia, Mrs. Alisa Maric

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Inter-parliamentary relations There is an inter-parliamentary working group between Serbia and Azerbaijan, approved by “Milli Majlis”. The chairman of the group is Malahat Ibrahimgızı.

Vladimir Cvijan is the chairman of inter-parliamentary group in Serbian Parliament, which has 20 members.

6-10 July 2011: Vice-chairmen of the Milli Majlis of Azerbaijan Mrs.Muradova visited to Serbia.

Cooperation in the different spheres Politic sphere 6 April 2010: Visit of the Deputy Minister of Foreign Affairs of the Republic of Azerbaijan Mr. Araz Azimov to Serbia for politic consultations.

11 May 2011: Visit of the Deputy Minister of Foreign Affairs of the Republic of Serbia Mr. Zoran Vuyic to Azerbaijan for politic consultations.

11 October 2012: Visit of the Deputy Minister of Foreign Affairs of the Republic of Azerbaijan Mr. Araz Azimov to Serbia for politic consultations.

The main bilateral documents in the politic sphere: 1. Joint declaration of President of the Republic of Azerbaijan and President of the Republic of Serbia. Baku, 13 May 2010.

2. Protocol on cooperation between the Ministry of Foreign Affairs of the Republic of Azerbaijan and Ministry of Foreign Affairs of the Republic of Serbia. Baku, 13 May 2010.

3. Declaration on friendly relations and strategic partnership between the Republic of Azerbaijan and Republic of Serbia. Baku, 8 February 2013.

The project of “resolution about compliance with international law and the peaceful settlement of the Armenian-Azerbaijani Nagorno-Karabakh conflict” proposed in February 2013 by the Chairman of the Committee on Constitutional and Legal Affairs of the Parliament of Serbia, chief of Azerbaijan inter-parliamentary friendship group, Vladimir Tsvian, was included to agenda of the Serbian Parliament and the text of resolution was placed in the Parliament’s website.

Economic sphere Azerbaijan-Serbia Intergovernmental Commission on Trade and Economic Cooperation was established in 7 June 2011. Co-chairs of Commission are Minister of Economic Development of Azerbaijan Mr. Shahin Mustafayev and Deputy Prime Minister, Minister of Foreign and Domestic Trade and Telecommunications of Serbia Mr. Rasim Ljajic. Up till now there were 2 sessions of the Commission. The last session was held in Baku on 26-27 November 2012.

Five Business Forums was held between the two countries.

2010, in Serbia was established Serbia-Azerbaijan Chamber of Commerce.

March 2013, Azerbaijan company “Azvirt” started to construction of the part Lyig-Prelyina of the “11th corridor” highway in Serbia.

The main bilateral documents in the economic sphere: 1. Agreement between the Governments of Azerbaijan and Serbia on trade and economic cooperation. Baku, 13 May 2010.

2. Convention between the Governments of Azerbaijan and Serbia on elimination of double taxation with respect to property and incomes. Baku, 13 May 2010.

3. Agreement between the Governments of Azerbaijan and Serbia on promotion and mutual support of investments. Belgrade, 8 June 2011.

4. Agreement between the Governments of Azerbaijan and Serbia on economic and technical cooperation. Baku, 25 January 2012.

Humanitarian sphere June 2010, the Azerbaijan Cultural Center was established in Belgrade.

2011- Thanks to donation of the Government of the Republic of Azerbaijan, the refurbishment and

modernization of the park Tashmaydan in Belgrade was done with the built monuments to the national leader of Azerbaijani people Heydar Aliyev and popular Serbian writer-publicist Milorad Pavic.

Furthermore, thanks to donation of Government of the Republic of Azerbaijan, at Belgrade embankment in Novi Sad, the memorial was made and refurbished to the significant Azerbaijani composer Uzeir Hajibeili as well as refurbishment of lower level of the Danube embankment.

Constructing of Corridor 11

2011-2012- Thanks to President of the Republic of Azerbaijan H.E. Mr.Ilham Aliyev’s instructions and donation of Government of the Republic of Azerbaijan, the refurbishment was completed Bayrakly Jami in Belgrade, church of Saint Petca in Novi Sad and Cultural center in Novi Pazar.

7-9 February 2013- During an official visit the President of the Republic of Serbia H.E. Mr. Tomislav Nikolic to Azerbaijan was the official opening of the monument of outstanding Serbian scientist and physicist Nikola Tesla in Baku.

22 February 2012 the President of the Republic of Azerbaijan H.E. Mr. Ilham Aliyev received a delegation led by Chairman of Serbia Olympic Committee Vlade Divac. In the meeting was given the international award of a “True friend of the Balkans” established by “Foundation Ana and Vlade Divac” to the President of the Republic of Azerbaijan Mr.Ilham Aliyev for his valuable contribution in the comprehensive development of relations between Azerbaijan

and Serbia, as well as the Balkan countries and special services in the approaching of Balkan nations.

21-24 August 2012- In the first international festival of sport films “Zlatibor-2012” held in Serbia, Azerbaijan film director Arzu Urshan’s film “Ball sometimes flies and sometimes falls to the ground” was awarded first prize in the festival.

29 June-2 July 2013- In the second international festival of sport films “Zlatibor-2013” held in Serbia, Azerbaijan film director Rafiq Guliyev’s film “Chovgan” was awarded the first prize. After the demonstration of the film award and diploma were presented to the staff of the Embassy of Azerbaijan in Serbia.

From 2013-2014th academic year, University of Belgrade allocated to the quota for one student (bachelor’s, master’s or doctoral level) from Azerbaijan.

At the initiative of the Embassy of the Republic of Azerbaijan in the Republic of Serbia was translated into Serbian and published books “from cycle of the life a well-known personalities” dedicated to “The national leader of Azerbaijan Haydar Aliyev”, “Karabakh realities” published by the Haydar Aliyev Foundation, “Uzeyir Hajibeyli”, a collection of poems Rasul Rza’s “Colors”, B.Mehdiyev’s “Red flagged 223th Belgrade division”, Elchin Efendiyev’s “Death sentence”, also was translated into Azerbaijani and published book of Serbian writer Milorad Pavic “Khazar dictionary”, published at the same time Serbian-Azerbaijani dictionary and conversational book, in 5 October 2011, produced by film studio “Salname” the Ministry of Culture and Tourism of Azerbaijan Republic and devoted to the “223th Belgrade division” documentary film presented in Belgrade, in 14 March 2012 Huseynbala Miralamov’s “Embarrassment” was staged at the theater of “Slavia” in Belgrade structured by the Azerbaijan National Academic Dram Theater.

The main bilateral documents in the humanitarian sphere 1. Agreement between the Ministry of Education of the Republic of Azerbaijan and the Ministry of Education and Science of the Republic of Serbia on education cooperation. Baku, 8 June 2011.

2. Agreement between the Ministry of Youth and Sport of the Republic of Azerbaijan and the Ministry of Youth and Sport of the Republic of Serbia on youth affairs and sports cooperation. Belgrade, 8 June 2011.

3. Agreement between the Governments of Azerbaijan and Serbia on cultural cooperation. Belgrade, 8 June 2011.

Contractual-legal bases: 24 documents were signed between Azerbaijan and Serbia. ■ www.azembassy.rs, www.mfa.gov.az

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Economic Development of Azerbaijan

Leader of the South Caucasus

Azerbaijan boasted the second fastest growing economy among 179 countries, in terms of GDP per capita, in the period from 2001 to 2010. This trend even continued during the period of the global economic crisis, with Azerbaijan recording a GDP growth average of five per cent in the last five years

F

ollowing the collapse of the USSR and the restoration of the country’s independence in 1991, Azerbaijan began placing greater emphasis on economic reform.

The main objective of the new policy of independence was to establish an economic system based on different types of ownership, coupled with transition towards a market economy and integration into global economic flows.

Azerbaijan’s period of economic development following the return of its independence can be divided into two main phases. Phase one, from 1991to 1995, was marked by economic chaos and reversals, but the period from 1996 to the present day has fortunatelybeen marked by an increase in macroeconomic stability and dynamic economic growth.

The Azerbaijani economy’s progress in all segments is illustrated by its incredible leap from 97th place to 33rd according to the World Bank's "Doing Business 2009"

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As a result of intense efforts and the foresight of Azerbaijani President Heydar Aliyev, significant results were achieved in a short period in terms of socio-economic development and in-

tegration into the global economy.

During this period one of the main tasks of the country’s leadership was effectively utilising and reallocating revenues from the country’s oil wealth and natural gas supplies.

With this in mind, in 1999 Aliyev adopted regulations for the promotion of cooperation with international companies operating in this field. The State Petroleum Fund was also established in order to channel oil export revenues to priority sectors of the economy and significant social and economic projects. International organisations currently assess the work of the Petroleum Fund and the transparency of its operations positively.

The country lacked the infrastructure to export its oil and gas following the collapse of the Soviet

Union, but in 1996 it entered into an agreement allowing the export of oil through the Baku-Novorossiysk pipeline. The new Baku-Supsa oil pipeline then became operational in 1999 and agreement was later reached to build the Baku-TbilisiCeyhan oil pipeline, which is currently the largest crude oil pipeline for export. Expectedly, the development of the energy sector has played a dominant role in the progress of other sectors of the economy, entre-

As a result of intense efforts and the foresight of Azerbaijani President Heydar Aliyev, significant results were achieved in a short period in terms of socio-economic development and integration into the global economy preneurship and the enticing of foreign investment in non-oil sectors.

According to popular magazine The Economist, Azerbaijan was the second fastest growing economy among 179 countries, in terms of GDP per capita, in the period from 2001 to 2010, and this trend even continued during the period of the global economic crisis, with Azerbaijan recording a GDP growth average of five per cent in the last five years.

Today the country has a well developed transport infrastructure, with five international airports connected to major European and Asian cities, the largest port in the Caspian Sea, more than 29,000km of modern roads and 2,800km of railway lines.

One of the biggest projects currently being implemented in the country is the construction of rail infrastructure on the Baku-Tbilisi-Kars railway line, which will not only contribute to the development of trade between Azerbaijan, Georgia and Turkey, but is also set to become an important transport route linking Europe and Asia. Work is also underway on the construction of a new international seaport in Baku, which will have an annual capacity of 25 million tonnes of cargo and a million containers. Construction of a new terminal at Baku’s main airport is also ongoing. It

will be the largest airport terminal in the South Caucasus, with an annual capacity of three million passengers.

The Azerbaijani economy’s progress in all segments is illustrated by

its incredible leap from 97th place to 33rd according to the World Bank’s “Doing Business 2009”, which placed Azerbaijan among the world’s leading business regulation reformers. ■

Work is underway on the construction of a new international seaport in Baku, which will have an annual capacity of 25 million tonnes of cargo

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Culture

Confluence of East and West

The culture of Azerbaijan has developed as a result of many influences. Today, Western influences, including globalized consumer culture, are strong

N

ational traditions are well preserved in Azerbaijan. Some of the main elements of the Azerbaijani culture are: music, literature, folk dances and art, architecture, cinematography and Novruz Bayram.

Novruz is a traditional Turkish holiday, which celebrates the New Year, and the coming of Spring. When Azerbaijan was part of the Soviet Union, celebration of Novruz was generally unofficial, and at times even prohibited. Currently in Azerbaijan, Novruz is treated as an official public holiday. Usually preparation for Novruz begins a month prior to the festival. Each of forthcoming 4 weeks is devoted to one of the four elements and called accordingly in Azerbaijan. Each Tuesday people celebrate the day of one of the four elements - water, fire, earth and wind. People do house cleaning, plant trees, make new dresses, paint eggs, make national pastries such as shakarbura, pakhlava and a great variety of “national cuisine”. Wheat is fried with kishmish (raisins) and nuts (govurga).

As a tribute to fire-worshiping every Tues-

day during four weeks before the holiday kids jump over small bonfires and candles are lit. On the holiday eve the graves of relatives are visited and tended.

UNESCO proclaimed the Azerbaijani mugham tradition a Masterpiece of the Oral and Intangible Heritage of Humanity

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Music and folk dances Music of Azerbaijan builds on folk traditions that reach back nearly a thousand years. Azerbaijani music has a branchy mode system, where chromatization of major and minor scales is of great importance. Among national musical instruments there are 14 string instruments, eight percussion instruments and six wind instruments. According to The Grove Dictionary of Music and Musicians, “in terms of ethnicity, culture and religion the Azeri are musically much closer to Iran than Turkey.”

Mugham, meykhana and ashiq art are one of the many musical traditions of Azerbaijan. Mugham is usually a suite with poetry and instrumental interludes. When performing Mugham, the singers have to transform their emotions into singing and music. In contrast to the mugham

Heydar Aliyev Cultural Centre in Baku scheduled to open in September 2013

traditions of Central Asian countries, Azeri mugham is more free-form and less rigid; it is often compared to the improvised field of jazz. UNESCO proclaimed the Azerbaijani mugham tradition a Masterpiece of the Oral and Intangible Heritage of Humanity on 7 November 2003. Meykhana is a kind of traditional Azeri distinctive folk unaccompanied song, usually performed by several people improvising on a particular subject.

Ashiq combines poetry, storytelling, dance and vocal and instrumental music into a traditional performance art that stands as a symbol of Azerbaijani culture.

It is a mystic troubadour or traveling bard who sings and plays the saz. This tradition has its origin in the Shamanistic beliefs of ancient Turkic peoples. Ashiqs’ songs are semi-improvised around common bases.

Azerbaijan’s ashiq art was included in the list of Intangible Cultural Heritage by the UNESCO on September 30, 2009.

Since the mid-1960s, Western-influenced pop music, in its various forms, that has been growing in popularity in

Azerbaijan. Azerbaijani pop and folk music arose with the international popularity of performers like Alim Qasimov, Rashid Behbudov, Vagif Mustafazadeh, Muslim Magomayev, Shovkat Alakbarova and Rubaba Muradova. Azerbaijan made its debut appearance at the 2008 Eurovision Song Contest. The country’s entry gained the third place in 2009 and fifth the following year. Ell and Nikki won the first place at the Eurovision Song Contest 2011 with the song “Running Scared”, entitling Azerbaijan to host the contest in 2012, in Baku.

There are dozens of Azerbaijani folk dances. They are performed at formal celebrations and the dancers wear national clothes like the Chokha, which is well preserved within the national dances. Most dances have a very fast rhythm. The national dance shows the characteristics of the Azerbaijani nation.

azeri music mugham

Literature Classical literature in Azerbaijani was formed in 14th century based on the various dialect Early Middle Ages dialects of Tabriz and Shirvan. Among the poets of

The film industry in Azerbaijan dates back to 1898. In fact, Azerbaijan was among the first countries involved in cinematography this period were Gazi Burhanaddin, Haqiqi (pen-name of Jahan-shah Qara Qoyunlu), and Habibi. The end of 14th century was also the period of starting literary activity of Imadaddin Nesimi, one of the greatest Turkic Hurufi mystical poets of the late 14th and early 15th centuries and one of the most prominent early Divan masters in Turkic literary history, who also composed poetry in Persian and Arabic. The Divan and Ghazal styles were further developed by poets Qasim al-Anvar, Fuzuli

and Khatai (pen-name of Safavid Shah Ismail I). The acclaimed Book of Dede Korkut consists of two manuscripts copied in the 16th century, was not written earlier than the 15th century. It is a collection of 12 stories reflecting the oral tradition of Oghuz nomads. The 16th-century poet, Muhammed Fuzuli produced his timeless philosophical and lyrical Qazals in Arabic, Persian, and Azeri. Benefiting immensely from the fine literary traditions of his environment, and building upon the legacy of his predecessors, Fizuli was destined to become the leading literary figure of his society. His major works include The Divan of Ghazals and The Qasidas. In the same century, Azerbaijani literature further

Binegadi National Park, Lok-Batan Mud Volcano, Baku Stage Mountain, Caspian Shore Defensive Constructions, Susha National Reserve, Ordubad National Reserve and the Palace of Shaki Khans.

Among other architectural treasures are Quadrangular Castle in Mardakan, Parigala in Yukhary Chardaglar, a number of bridges spanning the Aras River, and several mausoleums. The task for modern Azerbaijani architecture is diverse application of modern aesthetics, the search for an architect’s own artistic style and inclusion of the existing historic-cultural environment. Major projects such as Heydar Aliyev Cultural Center, Flame Towers, Baku Crystal Hall, Baku White

Ell and Nikki from Azerbaijan celebrate with their co-performers after winning the Eurovision Song Contest 2011

flourished with the development of Ashik (Azerbaijani: Aşıq) poetic genre of bards.

In the span of the 17th and 18th centuries, Fizuli’s unique genres as well Ashik poetry were taken up by prominent poets and writers such as Qovsi of Tabriz, Shah Abbas Sani, Agha Mesih Shirvani, Nishat, Molla Vali Vidadi, Molla Panah Vagif, Amani, Zafar and others. Along with Turks, Turkmens and Uzbeks, Azeris also celebrate the Epic of Koroglu (from Azerbaijani: kor oğlu for blind man’s son), a legendary folk hero.

Architecture Azerbaijani architecture typically combines elements of East and West. Many ancient architectural treasures such as the Maiden Tower and Palace of the Shirvanshahs in the Walled City of Baku survive in modern Azerbaijan. Entries submitted on the UNESCO World Heritage tentative list include the Ateshgah of Baku, Momine Khatun Mausoleum, Hirkan National Park,

City and SOCAR Tower have transformed the country’s skyline and promotes its contemporary identity.

Cinematography The film industry in Azerbaijan dates back to 1898. In fact, Azerbaijan was among the first countries involved in cinematography. In 1919, during the Azerbaijan Democratic Republic, a documentary The Celebration of the Anniversary of Azerbaijani Independence was filmed on Azerbaijan’s independence day, May 28, and premiered in June 1919 at several theatres in Baku.

In 1991, after Azerbaijan gained its independence from the Soviet Union, the first Baku International Film Festival EastWest was held in Baku. In December 2000, the former President of Azerbaijan, Heydar Aliyev, signed a decree proclaiming August 2 to be the professional holiday of filmmakers of Azerbaijan. ■

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Tourism in Azerbaijan

The Beauty of Nine Climate Zones At any time of year it is possible to visit Azerbaijan.

Nine of the eleven climate zones that exist in our planet allow the country to welcome visitors all year round. But each of the seasons has its own unique colors and features. Which of them will bring you more pleasure can be found only through personal acquaintance with amazingly beautiful nature, the Caspian coast, ancient history and cultural traditions of Azerbaijan Baku Venice a long arificial canal built around the new carpet museum on the Bulvar in Baku

T

ourism is a growing part of the economy of Azerbaijan.

The country was a well-known tourist spot in the 1980s, but the Nagorno-Karabakh War during the 1990s crippled the tourist industry and negatively impacted the image of Azerbaijan as a tourist destination.

It was not until 2000s that the tourism industry began to recover, and the country has since experienced a high rate of growth in the number of tourist visits and overnight stays. In recent years, Azerbaijan has also become a more popular destination for religious, spa, and health care tourism.

The climate of Azerbaijan is unique, as nine of the Earth’s 11 climate zones can be found in Azerbaijan. National Parks serve to the purposes of environmental

protection, educational, scientific, cultural researches, etc. Azerbaijan has a total of 8 national parks. alled City of Baku with the W Shirvanshah’s Palace and Maiden Tower The city of Baku has numerous historical and architectural monuments dating

Petroglyphs in Gobustan, Azerbaijan, dating back to 10,000 BC indicating a thriving culture

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to various historical epochs. The Walled City of Baku is the ancient historical core of Baku. In December 2000, the Old City of Baku, including the Palace of the Shirvanshahs and Maiden Tower, became the first location in Azerbaijan to be classified as a World Heritage Site

by UNESCO. The Walled City of Baku

or Icheri Sheher hosts over 50 historical and architectural monuments from various eras. The Palace of Shirvanshahs is one of the pearls of Azerbaijani architecture. It was built in the beginning of the 15th century. It includes a historical complex, the palace, a divankhana, the Shirvanshah’s room, a palace mosque with minarets, bath house, a room of Seyid Yahya Bakuvi, and the Western divankhana monuments, which were built during a later stage. The complex construction began in 1441, while the Western divankhana was completed by architect Amirshah in 1558.

area during the wet period that followed the last Ice Age, from the Upper Paleolithic to the Middle Ages.

The site, which covers an area of 537 ha, is part of the larger protected Gobustan Reservation.

Zangezur National Park The Zangezur National Park (it was renamed and expanded in 2009 from former Ordubad National Park) is characterized by rich biological diver-

sity. It has 58 species of animals (35 of vertebrates and 23 of insects) and 39 species of plants which are included into the Red Book of Azerbaijan. The National Park comprises such rare and endangered species as Anatolian leopard, the mountain sheep-moufflon, bezoar goat, white-tail sea eagle, golden eagle, little bustard.

Shirvan National Park The Shirvan National Park has a semi-desert landscape and water

Ateshgah of Baku Another interesting sight in Baku is the Ateshgah temple, situated in southwestern part of the Surakhani settlement in the Absheron peninsula, 30 km away from Baku. Ateshgah is a fire temple, built in the 17th-18th centuries. The temple’s central stone shrine is located on a natural gas pocket. The present structure was built approximately in 1713 AD, and the building of the central stone shrine was funded by merchant Kanchanagaran in 1810. The complex was turned into a museum in 1975 and now receives 15,000 visitors a year. It was nominated for World Heritage Site status in 1998 and was declared a state historical-architectural reserve. obustan Rock Art Cultural G Landscape Petroglyphs in Gobustan, Azerbaijan, dating back to 10,000 BC indicating a thriving culture.

One of the most ancient and exciting monuments of Baku is Gobustan, famous around the world for its rock carvings. Gobustan is very rich in ar-

City of Baku

The Old City of Baku became the first location in Azerbaijan to be classified as a World Heritage Site by UNESCO cheological monuments, the reserve has more than 6,000 rock engravings dating back between 5,000 - 40,000 years. The site also features the remains of inhabited caves, settlements and burials, all reflecting an intensive human use by the inhabitants of the

Mount Bazarduzu the highest peak of Azerbaijan

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Culture

Shirvan National Park

birds. Ag-Gol has been incorporated into the list of UNESCO’s convention “On internationally important marshy areas as the residing places of birds�.

Hirkan National Park Hirkan National Park is located in

body of approximately 40 square kilometres. The national park has an extremely rich ornithological fauna.

Rare and valuable species of birds (turaj, little bustard, bustard, swans, flamingo, etc.) winter and nest in the marshy areas. Djeyran gazelles are the most widely spread mammals in the region.

Ag-Gol National Park Ag-Gol National Park is located in the Mil plain of the Kur-Araz lowlands, it has semi-desert landscape and deserved the title of a bird paradise, as the most important winter and nest place of birds. The ornithological fauna of this reserve is very rich. Over 140 species of birds are found in this place including 89 species of nesting birds (Partridge, spoonbill, swan, teal, bustard, etc.). Ag-Gol national park is designed to protect the marshy ecological systems, as the nesting and wintering places of migratory and water

The ornamented gate of Shirvanshah Mausoleum in the Palace of the Shirvanshahs

Azerbaijani carpet (Shirvan subgroup) from National Carpet Museum of Azerbaijan

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the Lenkoran Lowland and the Talysh Mountains, and is 99% covered by forests in a primarily mountainous region, and is strictly protected.

Hirkan National Park preserves relict and endemic plants species of Ter-

Azerbaijani cuisine

Original and Unique The Azerbaijani cuisine has long won recognition both in the East and in Europ

Ag-Gol National Park

tiary period. Forests of Hirkan account for 150 out of 435 types of trees and bushes. One can come across such types of trees, included into the Red Book of Azerbaijan as, Hirkan box tree, iron tree, chestnut leave oak, fig-tree, Hirkan pear-tree, Silk Acacia, Caucasus palmtree, Caspian gleditsia, butcher’s broom, alder-tree, such animals as the Persian leopard, the Talysh pheasant, golden eagle, etc. ■

T

he history of art to create recipes in Azerbaijan goes back centuries, is based on the vast experience of hereditary chefs are still present today. No wonder Azerbaijan is famous as the land of centenarians. Scientists explain this phenomenon due to favorable climate, lifestyle, organic food and the principles of good nutrition. The most sophisticated gourmets who come to the country from around the world, have the taste and aroma refinement dishes of Azerbaijani cuisine.

Exclusive Azerbaijani dishes - dolma, bozbash, bozartma, chikhirtma, khashil, piti, pilau govurma - are included in the national menu of numerous peoples of the Caucasus This kitchen is original and has a national character, which manifests itself in the specific cooking techniques and traditions of the Azerbaijani party. According to composition and a number of dishes, it is among the highly diverse and healthy ones, and the abundance of different kinds of meat, fish and vegetable specialties complemented by soft greens and savory spices. Traditional works of Azerbaijani cuisine are original and unique, they can not be confused with the dishes of other national cuisines.

It is no secret that the culinary arts of Azerbaijan enjoy continued popularity. Exclusive Azerbaijani dishes - dolma, bozbash, bozartma, chikhirtma, khashil, piti, pilau govurma - are included in the national menu of numerous peoples of the Caucasus.

“Nush Olsun!” - “Bon Appetite!”, Will tell you in any part ofAzerbaijan, are cordially invited to a plentiful feast or the most real feast of taste. These good wishes, you will hear constantly from many different people. ■

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70 | World Markets and Opportunities | azerbaijan

■ By Ruža Ristanović

travels

Executive Director, aim

Qatar

Journey into the

Realm of Luxury

The living standard is exceptionally high and it has been rightly said that Qatar is the wealthiest country in the world with the richest population. Qatar has the highest GDP per capita on the planet, there is no income tax, tax rates are among the lowest in the world and 14% of the country’s population are millionaires.

A

lthough we knew all too well that the temperature in Doha in June will be a hellish 45°C, it took us a whole hour to get used to it since ‘magical Doha,’ basking under the night lights, is so breathtaking that you quickly forget what is the season and how hot is outside.

While we were driving from the airport to our hotel, our first encounter with Doha was actually our first encounter with the new emir of Qatar who came to power only two days before we arrived in Doha.

Qatar is a small country with the population of only 1.9 million. It has been an absolute monarchy since the country declared independence in 1971. The appointment of a young 33-year old sheikh Tamim bin Hamad bin Khalifa Al Thani as the new head of state is considered one of the most important events in the country. On our way to the Grand Hyatt Doha hotel, which hosted the FAM Trip organized by Qatar Airways, we were blinded by brightly lit billboards featuring the

smiling face of the new ruler. We watched in awe the sand that was everywhere around us and felt as if we had landed on another planet.

Our first day of Doha tour was all about Sheika Mozah bint Nasser Al Missned, the mother of the new emir. The second out of three wives of the former emir Hamad bin Khalifa Al Thani, she is the only one that doesn’t come from royalty. However, she was born into one of the three richest families in Qatar who were the opponents of the ruling family.

Her family lived in exile until the marriage was arranged between her and Hamad. Sheika Mozah plays an important role in Qatar’s politics today, since she is an active participant in the Qatari government, and officially represents Qatar in the world, standing shoulder to shoulder with her husband, unlike most of other monarch wives in the Middle East. She is ranked 75th on the Forbes list of the most influential women in the world. Apart from that, she presides over the Qatar Foundation and is credited for promoting the role of women in the cordeditorial@cma.rs |

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Qatari government which has an equal number of female and male members. She is also a staunch advocate of the right to education, and today there are 15,000 women studying at Qatar University. The female members of our team were very proud of the fact that a woman in an Arab country has so much power and such ability to advocate female issues in its society. Many European countries cannot boast of having such women to men ratios in their governments.

While we were still grinning in pride about the Sheika, we travelled to a new town quarter which is also known for its business area called West Bay or Doha Manhattan by the locals. True, as soon as we stepped into this part of town we felt as if we were in New York.

This is the business centre of Doha, with huge skyscrapers, each taller, more beautiful and more spectacularly lit than the other. At night you can see myriad lights, shadows and colours. The tallest building, which is still under construction, is Dubai Towers – Doha which will cost US $620 million to construct.

Our next stop was the popular shopping centre, Villaggio Mall. The

Estimates have shown that Qatar has enough oil and gas to last for another 400 years. The country is the biggest natural gas exporter in the world. It has also been estimated that Qatar will invest US $120 billion in its energy sector in the next ten years.

The living standard is exceptionally high, and it has been rightly said that Qatar is the wealthiest country in the world with the richest population. Qatar has the highest GDP per capita on the planet, there is no income tax, tax rates are among the lowest in the world and 14% of the country’s population are millionaires. The unemployment rate is only 0.1%. In Doha, people jokingly say that a poor Qatari has one house, one wife and one car, while a rich one has three wives, three houses and three cars.

Apart from a growing economy, the development of Qatari society, individuals, technology and science has been phenomenal in the last 20 years. Recognizing just how important it was for the society to develop, in 1995, the former Qatari ruler established the Qatar Foundation for Education, Science and Community Development. Our

Huge oil and natural gas reserves were discovered in Qatar in 1940 and since then the country’s economy has been developing at the speed of light. Estimates have shown that Qatar has enough oil and gas to last for another 400 years

entire mall is built in Venetian style, with gondolas and canals that you can sail down. The mall is a perfect example of just how opulent and wealthy Qatar is. It is dominated by huge stores of the world’s most famous and most expensive clothing, jewellery and fashion accessories brands, and the lines in front of cash registers are huge. Considering that every second shopper comes out with bags full of goods, it was only logical to ask our guide how much people in Qatar earn. Huge oil and natural gas reserves were discovered in Qatar in 1940 and since then the country’s economy has been developing at the speed of light.

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tour guide told us that the former emir had a vision that even a moderate development of each resident of Qatar would contribute to a huge development of the country. The Qatar Foundation is still active, and it is split into three activity segments which are generously funded so that each segment of the society they cover develops properly.

Education is free for all citizens of Qatar, and even foreigners can apply for scholarships. Qatar University takes 20,000 new students each year, and the faculties here teach the curriculum found at the most prestigious universities in the world. The second, but equally important, role that the Foundation plays is investing in the development of science, technology and innovation. Doha is home to scientific centres that carry out biomedical, energy, technological and clinical research. The biggest investment made this year was the Sidra Medical and Research Centre which cost US $7.9 billion to build.

A third, and by far the most interesting, story about the Foundation is the role that it plays in developing the culture of the local population, while fostering progressive society and nurturing cultural and historic heritage. Our next stop was the centre for development of culture – Katara, the cultural village. Katara was opened in 2010 and, in that very year, the Tribeca Film Festival was held in Doha. It was fascinating to see that all the facilities, houses, and screening rooms were scattered around, in no particular order, just like 50 years ago. An amphitheatre that seats 5,000 is located in the village centre. Our guide told us an interesting story about Katara. In an effort to help the village and culture to develop, Sheika Mozah asked 200 artists (musicians, painters, film and theatre actors) from all over the world to come to the Katara every year and hold exhibits, stage concerts and plays.

Katara cultural village is also the home to the Qatari Society for Engineers, Qatar Fine Arts Society, Visual Art Centre, Qatar Photographic Society, Childhood Cultural Centre, Theatre Society and Qatar Music Academy.

Education is free for all citizens of Qatar, and even foreigners can apply for scholarships Just as we thought that we could not be fascinated any more, we had lunch on the famous Doha Pearl.

The Doha Pearl is an artificial island, spanning across 4 million square metres and built on what was one of the major pearl diving sites.

Qatar used to be one of the biggest pearl exporters to Asia until the Japanese took over the title. Hence the island’s name. Once finished, the island will be shaped like a string of pearls. The plan is to build 15,000 apartments for 45,000 residents by 2015. The average price of an apartment here will range from US $2.5 million for smaller ones to US $15 million for mansions. This is also the first town quarter where foreign nationals can own a piece of real estate. Speaking of the real estate market, with the development of the country and its economy, as well as with a substantial increase in the population, Qatar experienced a real estate boom. The prices grew enormously so today the average price of real estate in Doha is higher than in Dubai. Doha is included in the Forbes list of the 15 best new cities for doing business. This is the reason why Qatar is not focusing too much on tourism development, but rather on developing the country as a modern business centre, since 85% of the total population are foreign nationals who live and work here.

At the end of our first exciting day in Qatar, we headed back to our hotel. The second day sounded promising despite the fact that we

were under the impression that we saw everything that we had to see and that there wasn’t much left to impress us. However, magical Doha somehow became even more magical the next day.

The atmosphere on the second day was much more relaxed. We got used to the high temperature and humidity, and were ready to leave for Souq Waqif. This market place is an important part of Qatar as a melting pot of different cultures and nationalities that live in Qatar.

This is best seen in the local restaurants. Considering just how much attention is paid to developing the role of women in society, which is very atypical for a Middle Eastern country, women are allowed to work here. They have their own stands and, according to our guide, men are not allowed to meddle in their business. Souq Waqif is in the old part of Doha, with narrow streets, and many souvenir stands where we haggled with the vendors and touched beautiful scarves and sashes made of heavenly materials.

Driving around the city, we noticed that the only people walking down the streets were the workers who were building a subway. After Dubai, Doha is the second city in this part of the world to get a subway which will be finished by 2020, just before the FIFA World Cup in 2022 that will take place in Qatar. We passed by the famous Aspire Zone sports centre which is the location of a mobile football stadium, also built for the World Cup. The stadium will be fully air-conditioned. cordeditorial@cma.rs |

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Qatar is very dedicated to developing and promoting sports and the sporting spirit. The Qatari consider the Qatar Foundation and FC Barcelona signing a sponsorship contract in 2010 one of their biggest successes in sport. Since then, the players of FC Barcelona have been wearing the sponsor’s logo on their jerseys. As of September 2013, Barcelona football players will be wearing the logo of Qatar Airways.

Also, Doha prides itself in Aspire Academy, a sports academy which is considered one of the most prestigious sports institutions in the world today. It was established in 2004 with the goal of providing quality education to athletes who, once they graduate, can compete or work an-

ywhere in the world. The Academy’s standards and curriculum are recognized by the most renowned educational institutions all over the world.

After visiting the market, we went to see the Museum of Islamic Art. The Museum’s building is a very unusual piece of art, designed by Chinese architect Ieoh Ming Pei. In order to get a sense of the culture here, I.M. Pei travelled around

Sheika Mozah bint Nasser Al Missned is credited for promoting the role of women in the Qatari government which has an equal number of female and male members

Islamic countries for six months studying Islamic art and history for inspiration. The Museum’s interior was designed by a team of architects, led by the famous French architect, an associate of the Louvre Museum and a town planner, Jean-Michel Wilmotte, and it is the only such museum interior in the Arabic world. The Museum is located in the harbour and spans across 45,000 square metres, on the a 64-acre artificial island, built especially for this purpose.

The Museum’s collection is thought to be one of the most complete collections of the Islamic artefacts in the world, encompassing pieces from Spain, Egypt, Turkey, Iraq, Iran and India. The Museum is home to the best works and the most valuable examples of Islamic art, including

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calligraphy, metal pieces, glass, ceramics, coins, jewellery, and wood. The collection showcases the complexity and diversity of Islamic art.

The Museum also has a library with very rare books which depict the Islamic art, the Arabic contribution to science, and the Islamic weaponry. The Museum holds workshops and drawing, painting and calligraphy classes.

It will take you at least two days to see the entire museum, all of its floors and halls where the artefacts have been exhibited in a very unusual way. The light here is very dim, the spotlights illuminate the museum pieces and all the rooms are connected in a circle so you can walk around them in one stretch.

Considering that we stayed in Doha for only two days, we didn’t have enough time to visit every part of the Museum since we had to see the race tracks too.

Horse racing is a very popular sport in Doha. Just like camel racing, horse racing is a real spectacle. Betting is strictly banned, but fun and a good time are guaranteed.

We also visited stables where we saw the most beautiful Arabic and European horses. Arabian horses are faster than the European ones and they are mostly used for endurance racing. They are also considered one of the ten most popular breeds in the world.

Apart from horses, birds (falcons, to be more precise) are the favourite animals in Qatar. They are considered a status symbol and are

usually imported from Uzbekistan, Iran and, believe it or not, Kikinda.

The falcon is the only animal that you can take with you if you are flying first class in one of Qatar Airways’ planes. The bird is given special treatment, starting with the way it is carried to what is being fed, since their owners usually take them out of the country because of the heat.

In the evening, we had a marvellous dinner at one of the most beautiful restaurants in Souq Waqif. The food in Doha is exquisite, and the best chefs in the world work in the local restaurants here. Every meal is a combination of several different dishes – from hummus, olives and cheese to dates and other Arab specialties. You can only but marvel at the fusion of different flavours and colourful meals, whether you are having a lunch or dinner. Still, Qatar is the country with the lowest number of overweight people in the world. In front of the restaurant, in one of the many town squares, we listened and enjoyed the music of a traditional Arabic band.

Full of impressions from seeing things that could be seen only in Doha and nowhere else, we ended our journey with a tour of Doha airport which takes 12 million passengers each year. The Business Lounge and First Class Lounge look like the most luxurious hotels in the world. They have three restaurants, a spa, rooms to relax and sleep in, massage parlours and are full of travellers.

As we flew business class, we summed up our impressions over a glass of champagne and contemplated which global destination could overshadow the splendour and grandeur we saw on this trip. ■

cordeditorial@cma.rs |

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culture calendar CONCERTS Roger Waters ‘The Wall’ Kombank Arena September 1 @ 19.30 This masterpiece from Pink Floyd’s legendary Roger Waters, THE WALL LIVE, scheduled for September 1, has been moved from Ušće to Kombank Arena for technical and production reasons.

The tickets are transferrable, although the grandstand tickets for Ušće should be replaced for new tickets for numbered seating at the KOMBANK ARENA’s box office.

Composer, songwriter and co-founder of the cult band Pink Floyd, Roger Waters has announced the return of the legendary production of The Wall to Europe in 2013. This auditory and visual masterpiece of transformation will be performed in its entirety featuring a full band and state-of-the-art production. The Wall has played 192 shows around the world to more than 3.3 million fans, making it one of the most successful tours in rock history.

Manu Chao Pionir Hall September 14 @ 21.00 World-renowned musician and activist Manu Chao will perform at Belgrade’s Pionir Hall on September 14. The concert has been organized

by AAA Production. Manu Chao will be arriving in Belgrade with his band, La Ventura, another project in a new stage of his exceptional and impressive career.

Apart from the former singer of Mano Negra José Manuel Thomas Arthur Chao, better known as Manu Chao – the other members of the La Ventura quartet are Madjid Fahem on guitar, Philippe Teboul on drums and Jean Michel Gambit on bass.

This atypical band was originally formed as an experiment. However, after their first public performances, it seems like that Manu Chao has found a new formula for success. Thousands of people all over the world have seen their energypacked performances in the last few years.

The Manu Chao / La Ventura rock quartet will play both old and new, never before performed, songs about love, living as an immigrant and fighting for a better world, at Pionir. La Ventura and Manu Chao will perform an intimate and 76 |

colourful set of songs, an unbelievable mixture of various musical genres – from rock and punk, to ska and reggae to their delighted fans.

Always the rebel, Manu Chao explains where his inspiration comes from: “Street culture is a continuous source of ideas and new rhythm.

I find inspiration in local scenes in different countries and nationalities.”

The sincerity of Manu Chao, one of the most influential musicians of today, is unquestionable for one simple reason – every single time he performs, he totally surrenders to his fans. His concerts at Tašmajdan in 2002, at EXIT in 2008 and a sold-out concert in Novi Sad in 2011 were the talk of the town for many months after as they were jam-packed with good energy and emotion.

Pre-sale tickets cost 2,500 while, on the day of the concert, the tickets will cost 3,000 dinars.

You can buy pre-sale tickets via Gigstix or at Gigs tix box offices and at selected Corner Shops.

CLASSICAL MUSIC Slavko Nikolić & Milica Popović Russian House September 24 @ 20.00 “With our concert titled SLAVKO NIKOLIĆ: Songs and Melodies That Captivated the World, and a CD promotion, we are celebrating a successful seven-year-old collaboration with the Russian House in Belgrade. We are in awe of the golden trail blazed by leading Russian and world artists, from Chaliapin to today’s eminent artistic figures, who had the crucial influence on our performances and inspired us to show our most delicate artistic expressions and the noblest of human emotions. We have grown artistically through our performances at the Russian House, drawing from its precious noble Slavic sparkling scintillation of the deepest artistic truths, while, at the same time surrendering to what is the best and the cleanest in our artistic beings. At this intersection of the two wonderful and complete permeations, through performances at the Russia House, we sensed

Russia as a source of light and Orthodoxy, as well as a source of ‘the beauty that will save and change the world’ as predicted by the great Dostoevsky. When we remember the passionate and heated preparations for these concerts, we tremble with an endless and unique desire. In the name of this Divine palpitation, we would like to invite you to a concert of the beautiful Neapolitan, Spanish, Greek, Russian, Serbian, and Mexican songs, French chansons, melodies and duets,” said Slavko Nikolic Magnificent tenor SLAVKO NIKOLIĆ; Rising

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Selah Sue Kombank Arena September 23@ 20.00

A promising new artist on the global music scene and a girl with an unbelievable voice and talent, Selah Sue will be performing at Kombank Arena on September 23.

She captivated the music word with just one album. Her songs “Raggamuffin”, “Crazy Vibes” and “This World”, which one confectionary company used for one of its commercials, have made it to nearly every music chart. Her self-titled debut album was sold in 720,000 copies in Europe alone, while in the US, 400,000 people have downloaded it in a space of just one week. Shortly after the release of her first album in 2011, Selah Sue received two awards - “European Border Breakers Award” and “Grand Prix Constantine”, while the Rolling Stone magazine named her one of the new faces in 2012. mezzo-soprano star MILICA POPOVIĆ; PETAR GOLUBOVIĆ – mandolin, bouzouki, balalaika, guitar, accordion; MIODRAG ČOLAKOVIĆ pianist; Guest star - young talented soprano Ana Stanković The concert, “Songs and Melodies That Captivated the World,” has delighted audiences in many big cities in the world. The concert was staged twice in London, three times in Paris, as well as in Budapest, Vienna, Podgorica, Tivat, Banja Luka, Herceg Novi and many other towns in the world, in our country and in the neighbouring countries.

Ensemble Taurunum Guarnerius, September 14 @ 20.00 Ensemble Taurunum, made up of students of the string department of the Kosta Manojlović Music School from Zemun, have won the Guarnerius contest. The contest was originally launched in 2011 with the goal of promoting young talented musicians and the classical music through a contemporary competition concept.

Ensemble Taurunum was formed in 2007 and, so far, has won two first national prizes, among other things. The ensemble has been successfully cooperating and performing with composers and performance artists both in Serbia and abroad.

Taurunum is known for excellent renditions of Astor Piazzolla’s compositions. They will perform the composer’s work at a tango night at Guarnerius.

Her voice is instantly recognizable and her music is a fusion of soul, reggae and dubstep. This 23-year old girl grew up in a small village in Belgium and is a living proof that fairytales do come true. After placing several songs on MySpace she immediately attracted the attention of thousands of people including a record label called Because which promptly offered her a record deal.

Her first single, “Raggamuffin”, launched her into the music world, followed by hit songs “Crazy Vibes”, “This World”, and “Crazy Suffering Style”. Even Prince became intrigued and invited her to be his opening act on the Belgian leg of his world tour.

Selah Sue has performed at major European festivals and her career has quickly crossed-over into the US where she was applauded by people like the influential blogger Perez Hilton. She even recorded a new version of her song “Raggamuffin” with the famous American hip-hop artist J. Cole.

Kristina Ivanković Guarnerius, September 28 @ 20.00 As a student, Kristina Ivanković won many national and international awards, performed at concert halls here and abroad and attended courses held by the world renowned cellists.

She also received a student scholarship from the Young Talent Fund and, as the only cellist from Serbia, has been given a scholarship to attend and participate at the prestigious international festival in Bayreuth, Germany.

DANCE Workshop ‘11 Countries’ Terazije Theatre September 26 - October 4 From September 26 to October 4, the reputable Broadway choreographer and director Chet Walker will, for the second time, run a workshop project called ’11 COUNTRIES’ at the Terazije Theatre.

The project is a result of a long collaboration between the Terazije Theatre, the art dance magazine Orchestra and New York-based school

culture news Jacob’s Pillow. The project will be realized under the auspices of the Serbian Culture Ministry and the U.S. Embassy in Belgrade. This time around, Chet Walker will be joined by a hip-hop choreographer and a dance lecturer from Norway Jack Samuel Gill.

This year’s workshop will last ten days, during which 40 professional non-institutional dance artists from all over the region will attend jazz dance and step, hip-hop, singing and acting classes, as well as pedagogy and choreography classes. At the end of this unique project, which links eleven regional countries through educational and artistic formats, the workshop participants will be awarded The Jacob’s Pillow School certificate of a masters’ level of education in the field of musical theatre, and two scholarships for The Jacob’s Pillow Summer School 2014.

Chet Walker began performing on Broadway at the age of sixteen. The renowned choreographer is the recipient of many international awards including a Tony Award in 1999 (this year, he was nominated in the best choreography category for the musical Pippin).

LITERATURE Navid Kermani The Goethe Institute September 15 – October 15 The German and Iranian author Navid Kermani is considered an important voice in Christian-Muslim dialogue in the German literary and political world. In 2011, he received the Hannah Arendt Award, given by the Heinrich Böll Foundation, for his correlative religious, scientific and political analysis.

The award’s statement says: “Like Hannah Arendt, who considered Jews to be the link between the nations of Europe,

Navid Kermani (http://de.wikipedia.org/wiki/ Navid_Kerman) sees Muslim immigrants of today as mediators between the states of Europe. Kermani never talks about ‘Arabs’ or ‘Muslims’ or ‘Jews’. As a writer, he gives everybody their individual space and, apart from criticizing the world, he formulates its beautiful side too. His essays talk about the

stark living conditions in which people struggling to survive in this world live, where contradictory values clash and which is ruled by economic inequality, armed conflicts, civil wars and repression.”

The Krokodil Literary Festival is known for having its own special way of presenting a wide range of literary works in the region. This year, in collaboration with the Goethe Institute from Belgrade and the Heinrich Böll Foundation, the Festival has invited Navid Kermani to participate in the Artist-inResidence international segment.

The Krokodil Artist-in-Residence programme is funded by the European Network for Literature Traduki, the German Foreign Ministry, the Swiss Arts Council ProHelvetia, KulturKontakt from Austria, the Goethe Institute, German foundation S. Fischer and the Slovenian Book Agency. The programme is also supported by Kuća Legata from Belgrade, Erste Bank and the Culture Department of the City of Belgrade.

Journalist, writer and orientalist Navid Kermani has been a member of the German Academy for Language and Poetry since 2007.

Herta Müller – ‘Vicious Circle of Words’ University Library Svetozar Marković, September 20 – October 15 Through an exhibition entitled “Herta Müller – Vicious Circle of Words”, the Goethe Institute is showcasing an illustration of the life and the work of this RomanianGerman writer and the Nobel Prize laureate in literature. The exhibition depicts the writer’s life from her childhood in Swabian Banat to winning the Nobel Prize for literature.

The exhibition is made of Herta Müller’s family documents and photographs.

In TV interviews, Herta Müller talks about the time she spent in Romania and Germany, her departure, her writing and her motivation. Her acquaintances, like the author of the ‘Banat Action Group’, will also reminisce, while the visitors will be able to see the Securitatea files which testify to just how rigorous and hostile the Romanian political system was.

The collages that Herta Müller

created in the late 1980s reveal the author’s yet unseen creative side.

This travelling exhibition is an abridged and revised version of the exhibition called ‘The Cold Pendant of Life’ which was first staged at Literaturhaus in Munich and later in other locations in Germany and abroad.

Two of the most recognized experts on the life and work of Herta Müller, Lutz Dittrich and Ernest Wichner, are the exhibition’s curators.

Summer at Gardoš Zemun, 8-26 August The traditional cultural and entertainment event, "Summer at Gardoš," was held from July 8 to August 26, with a number of programs for children and adults.

Zemun’s cultural summer began with the evening children’s play "Hilarious Pun," performed by Peđolino, and ended with another children’s play - "Pippi Longstocking", performed by the Čarapa theatre. This year's Summer at Gardoš scheduled its children's programmes for Sundays and Mondays, with free admission for children. On Wednesdays, Fridays and Saturdays, programs for adults were staged at Gardoš, including comedy shows, cabarets and concerts.

Zemun has to thank the old town

Gardoš for its beauty and an authentic atmosphere. Gardoš is just one of three hills on which Zemun was built, but, for many people, it is the most stunning one. Gardoš rises on the right bank of the Danube, offering an amazing view over Zemun and the area across the river. Gardoš is a settlement built in the 18th century on the site of the ruins of medieval fortresses. Many fishermen and boatmen called Gardoš their home.

5th Belgrade Regatta Makiš, 10-11 August The Belgrade Regatta on the Sava river was held on the second weekend in August, under the slogan “Do your best on the river!”, and had an appropriate accompanying program.

The Belgrade Regatta is an event that is traditionally held during the summer months in the Serbian capital. The aim is to promote rafting as a

concept of the festival was based primarily on the fusion of jazz and the ethno traditions of different parts of the world, especially the Balkans, alongside “traditional” forms of jazz.

Event 24 hours of Elegance 2013

sports discipline and to promote the tourist offer of the city. The race started on Sunday, August 11, from 11:00 a.m. at Makiš, not far from the intersection of Bora Stanković Street (the street that connects Savska Magistrala and Old Obrenovac Road) and the Old Obrenovac Road.

The day before the race, on August 10, for the first time in Belgrade, a Rafting Fair was held on Nikola Pašić Square, where organizers of rafting tours in the former Yugoslavia and the Balkans presented themselves, offering rafting opportunities on the rivers in the whole region: Soča, Drava, Vrbas, Neretva, Krivaja, Tara, Lim, Ibar, Drina, and Struma. In addition, manufacturers and suppliers of rafting equipment from the region also presented their offer. The 5th Belgrade Regatta was organized

by Rafting Club “Alpha Team”.

September 6 - 8 The very successful and glamorous event “24 hours of Elegance- Concours d ‘Elegance & Luxury Salon,” which is held annually, will once again be hosted in Belgrade for the third time, during a three day extravaganza from September 6th to the 8th, 2013. This exclusive event, organised by DEGORSI Luxury Consultancy and FIVA Member - Serbian

Nišville – Jazz Festival Niš Fortress, 15-18 August The festival was held in August on the summer stage of the Niš Fortress.

The Nišville International Jazz Festival, the most frequented jazz festival in Southeast Europe, consistently underscores the European values of multiculturalism and patiently cultivates musical tastes of individuals. From the beginning, the cordeditorial@cma.rs |

Federation of Historic Vehicles, under the patronage of Royal family of Serbia, along with our regional partner Scuderia Zagreb and with great support of Grand Casino Belgrade, will provide all attendees with an unforgettable experience, allowing all guests to indulge and share their passions, such as classic cars culture, elegance, style and refinement.

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Culture

■ By Sonja Ćirić

It is Hard

JUST TO ’BE’ With fewer plays and its lowest ever budget, this year’s BITEF Festival is a topic on everyone’s lips. Most newspaper headlines announcing the 47th BITEF have intentionally focused on its slogan – “It is Hard Just to Be” – highlighting the difficult situation confronting this traditional theatre festival, which will be held in Belgrade from September 22nd to October 1st.

B

ITEF is one of Europe’s most important theatre festivals and one of the cultural brands that Serbia is renowned for around the world. Great names of theatre, like Jerzy Growski, the Living Theatre, Klaus Peyman, Eugenio Barba, La Mamma, Peter Stein, Maurice Béjart, Robert Wilson and many others, have taken part in the festival. Nevertheless, regardless of its excellent international reputation, the budget for this year’s BITEF is close to 30 million dinars, the lowest budget the festival has had in recent years. Festival director Jelena Kajgo says that the situation is on the verge of becoming totally unacceptable and that it is extremely difficult to keep the festival at the level it attained when it was founded in the 1960s, namely to make it possible for Belgraders to experience the works of reputable foreign theatres. The assistance provided by the Goethe Institut, the French Institute and the Belgian Embassy in Serbia, which were instrumental in bringing theatre troupes from their respective countries to Belgrade, was extremely beneficial.

Even with such a restricted budget, Bitef selectors Jovan Ćirilov and Anja Suša have chosen 11 plays for the main programme (last year there were 13) from Germany, the Czech Republic, France, Hungary, Croatia, Slovenia, Montenegro and Serbia (four plays).

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A rather unusual play, entitled ‘Before Your Very Eyes’ and authored by Berlin’s Gob Squad, co-produced by Teatro Campo from Belgium, was chosen to open the festival, while Kornel Mundruczo and Yvette Biro’s play ‘It’s Hard To Be a God’, staged by Proton Cinema + Theatre from Budapest, will officially bring the festival to a close. The latter served as inspiration for this year’s festival slogan. The play involves children aged eight to 14 openly discussing their experiences with the older generation and their peers.

The play is about the transition from imper-

and actors from Paris’s Compagnie Espace Commun have never been to Belgrade, but they were eager to demonstrate intimate relations while searching for meaning in an environment that has been exposed to collective trauma and repeatedly shaken to the core by social and political unrest.

With its play ‘Europeana’, Reduta Theatre from Brno in the Czech Republic provides a fitting commentary about the 20th century, when wars and the discovery of perforated toilet paper were treat-

fect socialism to imperfect capitalism.

The voice of the older generation will also be heard in the play ‘55’+, by Montažstroj from Zagreb. The author of this concept and the play’s director, Borut Šeparović, invited 44 people over the age of 55 to talk about the decades of keeping silent while questioning their own responsibility for the situation that all of us have found ourselves in.

Angelica Liddell, who wrote the play entitled ‘Belgrade’, director Julien Fishera

ed with the same importance. Having this play at BITEF is very important, considering that almost two decades have passed since Czech actors last performed at BITEF. Mestno Gledališče from Ljubljana will be staging a classical piece of theatre – ‘The Storm’ by Alexander Ostrovsky.

This play is directed by Jernej Lorenci and provides a critical analysis of the hypocrisy of modern-day society and the complacency of small communities. The

Even with such a restricted budget, Bitef selectors Jovan Ćirilov and Anja Suša have chosen 11 plays for the main programme from Germany, the Czech Republic, France, Hungary, Croatia, Slovenia, Montenegro and Serbia

107 September 2013 | www.cordmagazine.com

Montenegrin National Theatre will also compete with the play Post Scriptum¸ written by Varja Đukić and dedicated to one of the greatest European writers – Danilo Kiš. Apart from Kiš’s prose, the playwright also incorporated ballet, sound, video-art and light into her play.

Of the four plays from Serbia, two are about Zoran Đinđić. The first one, ‘Zoran Đinđić’, was written by Oliver Frljić (Atelje 212) and the second, ‘To Murder Zoran Đinđić’, was written by Rajko Đurić and Zlatko Paković (of the Novi Sad Students’ Cultural Centre). The festival’s selectors say they intentionally chose both plays because

BITEF is all about questioning reality, maintaining a dialogue with the audience and having engaged spectators.

The other two plays from Serbia are A. P. Chekhov’s ‘The Seagull’, performed by the Serbian National Theatre from Novi Sad and directed by Toni Janežić, and ‘Women in Parliament’ by Aristophanes, performed by the National Theatre from Subotica and directed by Nikola Zavišić.

As we write this article, a month before the festival’s opening, people are talking more about the festival’s miniscule budget than its plays. Once we see all the plays, however, it is quite possible that public attention will shift to them rather than the budget. ■

Anja Suša, Co-Selector of BITEF

CONTINUITY ■ The slogan of this year’s BITEF – It is Hard Just to Be – has a philosophical connotation. Does it also say that it is advisable to think about our present situation in this way?

- The slogan of this year’s festival is a play on words contained within the title of one of the selected plays (the Hungarian play It’s Hard To Be a God), but also an ironic take on the existing situation in Serbian culture. We wanted to draw attention to the fact that the position of art and artists always hinges on the way they are treated by the state authorities, as well as on the responsibility of artists themselves. I see no way out at the moment, except from constantly drawing attention to the fact that we need art and that art is important, and that we should not let it slip through the cracks of an undefined market, because if we do we are going to lose what is most precious to us and that which cannot survive on its own.

■ Do you think that only having four plays from Serbia at BITEF is merely a reflection of the festival’s small budget or the quality (or lack thereof) of the festival’s programme?

- The decision to have four plays from Serbia at this year’s festival, which, if I may add, is more than we have had in the last few years, is partly due to our programme direction, which is promoting Serbian theatre in front of international audiences, apart from traditionally having foreign theatre plays. This is the standard practice at the festival and the duty of all international theatre festivals from small countries. The other reason is that these plays are extraordinary events and are in contrast to the established taste in local theatre. They are the exceptions that oppose the notion of the Serbian theatre scene as being conservative and conformist. As such, they deserve BITEF’s support.

■ You just came back from Finland.

Could you tell us about the reactions of

your colleagues there when they heard about the poor funding of BITEF? - I have just returned from a theatre festival in Tampere. I have long given up on trying to explain the crisis in our culture to people from Nordic countries, because they simply cannot take it in. Nordic countries have very advanced cultural and social policies. They take care of their citizens and their needs and everyday stress is reduced to a minimum. Budgets in their countries are planned well in advance and there are no surprises in production, apart from creative ones. Working in theatre is harmonious and predictable, everybody is paid on time, they have myriad social benefits, a diverse repertoire and a high level of tolerance for different kinds of theatrical expression.

They are not capable of understanding what is happening to us, so I don’t talk about it any more, although I always try to forget where I come from, at least for a short while.

■ Are we going to see you next year too?

- If I understood your question correctly, you want to know whether BITEF will happen next year too. We will give our all for that to happen and for the festival to be very ambitious and of high quality. But, as you know, not everything depends on us and I would like to stress that.

This is the lowest point that BITEF has reached and the bare minimun for the festival to be held in the first place. We can’t go lower than this without jeopardising half a century of tradition and quality. Since I believe that nothing is unbelievable and impossible any longer, I am going to give a very cautious forecast, but I am not going to stop hoping that everything will turn out fine and work towards that end to the best of my abilities. ■

cordeditorial@cma.rs |

107 September 2013 | 79

travel

Monasteries in Serbia

Important part of Serbia’s heritage

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S

erbian monasteries were mostly constructed in inaccessible areas in order to allow the solitude of monastic communities. Generally the only protection of the monks and monasteries against attackers were cliffs or the fact that monasteries were hidden in forests, while the treasures kept there were very tempting, especially for the Turks, and many monasteries were plundered, razed and destroyed.

Serbian medieval monasteries were religious and administrative centres, housing the seats of patriarchs, metropolitans and bishops.

They are the burial places of numerous Serbian rulers, nobles and church dignitaries. Monasteries protected the national consciousness and the Orthodox tradition, as well as hosting national gathering and assemblies at which many important decisions were made

and a large number of church dignitaries and ordinary monks led the nation during numerous important historical junctures.

Monasteries were the main centres of education for centuries and their friars were the nation’s first teachers. Following the departure of the Ottoman Turks, it was at monasteries that the first primary schools and artistic workshops were established.

Monasteries are still religious sites today, but they are primarily an important part of the Serbian heritage and thus the country’s national identity, representing an important part of the history of the Serbian people.

Serbia is home to 212 monasteries, 54 of which have been declared official monuments of culture. We recommend that you pay a visit to some of these sacred places this autumn.

Bavanište

with the Church of the Nativity of the Virgin

The Church of the Nativity of the Virgin dates from the 15th century and its founder is unknown. The monastery remained untouched until the 18th century, but in 1716 it was looted and destroyed by the Turks. Monastic life was abandoned and the monastery was not rebuilt, partly due to Austrian Empress Maria Theresa’s banning of the construction and reconstruction of monasteries in Serbia. Only in 1856, thanks to the contributions of believers, the monastery and church were renovated. The complex’s second major renovation began in 1997 and is still ongoing. The church was rebuilt almost in its entirety. Restoration of part of the frescoes is still underway. The church itself was built on a spring that still provides water today and has been consecrated. The monastery is for male monks and is active.

How to get there: Via Pančevo to the village of Bavanište, before turning right towards the village of Kovin. Continue straight on towards the monastery, passing the power station and continuing about 500 metres to the first small intersection. Turn left and then continue for two kilometers along the narrow asphalt road to the church.

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Kovilj with the Church of the Holy Archangels Michael and Gabriel The Church of the Holy Archangels Michael and Gabriel is now one of the largest churches in Vojvodina.

According to tradition, the monastery was founded by Saint Sava in the 12th century and the church was dedicated to Archangels Michael and Gabriel. It was built of stone in the Raška style with Baroque elements. The existing iconostasis was the work of Aksentije Marodić in 1871, done in the spirit of the Italian renaissance. The original iconostasis was done by famous master Teodor Ilić-Češalj in 1707, but it was destroyed during a fire. The church perished a total of six times. The monastery includes a small chapel dedicated to St. Petka, as well as a large chapel dedicated to the Holy Saints of Mount Athos. This active monastery is for male residents and is cared for by monks.

How to get there: After exiting the Belgrade-Novi Sad highway and entering the village of Kovilj, head to the end of the village and on the left side is located the monastery surrounded by a wall.

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The Velika (Great) Remeta Monastery and the Church of Saint Dimitrija

According to tradition, the Velika Remeta Monastery was built by King Dragutin, known as the “King of Srem”, in the first half of the 14th century, but it is more likely that the monastery and its church were founded in 1509. The first written record of this monastery is from the time of Ottoman Sultan Suleiman II, in 1541. The church is built of stone and brick with one entrance and five very beautiful windows. Only a few of the frescoes remain and it is assumed that they date from 1566-1568. As reprisal for the loss of the Battle of Petrovaradin in 1716, in which Eugene of Savoy defeated the Turks, almost all of the monasteries of Fruška Gora were burned, including Velika Remeta, but reconstruction began as soon as 1720. Monastic living quarters surround the monastery on all four sides, making the complex resemble a fortress. The monastery is dominated by a large bell tower erected in 1735. The oldest and certainly the highest in Srem, it measures 38.60 metres and 8 floors. On the first floor is a small chapel dedicated to Saint John the Baptist. Only a few of the old frescoes from 1568 are preserved. The iconostasis was done by an unknown master and the throne icons were brought from Russia. Very interestingly, the exterior of the monastery was also painted. Of the preserved frescoes there is a fresco of the Virgin and Child in a niche on the north wall. In the monastery’s lodgings is kept a large icon of the Holy Mother of God framed with medallions from 1678. The lodgings also house a museum of old Serbian church music with exhibits and notes from the Middle Ages that were not the same form as such music today. The monastery was looted during World War II. The monastery is active and is cared for by monks and nuns How to get there: the monastery is reached via the Iriški Venac exit of the Belgrade - Novi Sad highway. Follow signs for Grgeteg and Krušedol before reaching the signpost towards Velika Remeta.

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Vratna

Tuman

with the Church of the Ascension

This monastery church is dedicated to the Ascension of the Lord and was formerly dedicated to the Holy Apostles. The monastery is believed to have been built in the 14th century and that its founder was Father Nikodin from Prilep. This was during the reign of Serbian King Stefan Uroš II Milutin. At the entrance to the narthex is enscribed the year 1415, which marked the first restoration of the monastery. The church is modest in size and artistic expression. West of the church is the cell of St. Nikodin, which supports the legend of his patronage. Most of the monastery’s icons are of Russian origin, while the royal doors, from the 19th century are worthy of attention. The monastery previously held a lot of old church books and a collection of 20 icons and four old throne icons. Through various reconstructions and restorations the monastery lost the original appearance it had in the Middle Ages. The monastery is now an active nunnery cared for by resident nuns.

How to get there: the monastery is located in the village of Vratna at the foot of the famous Vratna Gates, about forty kilometres from Negotina and 20km from Brza Palanka. The best route is via the village of Jabukovac, which offers the best road.

with the Church of the Holy Archangel Gabriel This monastery was built in the period shortly before the Battle of Kosovo and its founder was Miloš Obilić, who raised it in expiation after the accidental killing of monk Zosim Sinajit during a hunting expedition. The original church was built on the site of his burial and the monk’s tomb is still located there. The original church was made of stone. Today a new church stands on the foundations of the old one, which was destroyed in Kočina Frontier and the First Serbian Uprising. The first major renovation of the temple was carried out by Prince Miloš Obrenović. The frescoes in the monastery are more recent, dating from the 19th century. According to the legend of the origin of the monastery’s name, said that Prince Lazar sent a message to Miloš Obilić by messenger prior to the Battle of Kosovo, which read, “Leave there (tu mani), leave the masonry, gather Stižane and make haste to Kosovo to defend the country”, so the people called the monastery Tuman. The monastery is now an active nunnery.

How to get there: this monastery in the Braničevo diocese is located in the village Tuman, 10 kilometres from Golubac. Turn in Turija at the sign on the Požarevac - Kučevo road and follow the asphalt road to the monastery.

cordeditorial@cma.rs |

107 September 2013 | 81

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Čokešina with the Church of the Nativity of the Virgin According to tradition, this monastery was founded by Miloš Obilić, but its construction was interrupted by his mother after Miloš’s demise at the Battle of Kosovo. The completion of work only came at the beginning of the 15th century thanks to the Mačvanski nobility Čokesi. Repeatedly destroyed and burned, the monastery enjoyed significant renovations in 1785 and 1823.

The last major renovation was ordered by Serbian Prince Miloš Obrenović. The Nedić brothers (Gligorija and Dimitrija) and 300 Čokešina heroes were buried at the monastery after the Battle of Čokešina, which occured during the First Serbian Uprising. In 1890 a five-metre tall church monument was built on the north side of the monastery. The iconostasis was done in 1834 by Mihajlo Konstatinović and Nikola Janković. The monastery church contains the miraculous icon cover of the Virgin Čokešinske. The first works on the protection of the monastery were done after World War II, in 1955, while lodgings were built in 1962. Most of the credit for today’s restoration of the monastery and the monastery complex belongs to Abbess Ana. The monastery is nowadays an active nunnery.

How to get there: the monastery is located 34 kilometres along the Šabac - Loznica road.

From the village of Ribara head towards Loznica for around four kilometres to the signpost for the village of Čokešina, then take the asphalt road to the monastery.

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Pčinj

Bogovadja

with the Church of St. George The old monastery church dedicated to St.George was built in 1545 and its patron was Prince Petar Velimirović. A new church was built on the foundations of the old one after it burned down in 1852.

Prince Miloš Obrenović took part in the restoration of the church. The monastery’s abbot was Hadži Ruvim, who was killed in Belgrade by the Turks in 1804.

During that same year the monastery welcomed the Soviet who led the First Serbian Uprising. The name of the monastery is believed to be derived from the fountain built by Hadži Ruvim, which the locals themselves dubbed God’s water.

The monastery church and living quarters were last renovated in 1967-1968. The monastery is today an active nunnery.

How to get there: Bogovadja Monastery with its church dedicated to St. George is found after Lazarevac on the road to Ljig.

There are plenty of local signposts directly towards the site of Bogovadja.

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Monastery of St. Prohora One of the oldest Serbian Orthodox monasteries, it is dedicated to the Holy St. Prohora, who spent his monastic life in a lonely mountainous area. The most holy Monastery of Saint Prohora Pčinj is determined by the cult of Saint Prohora, one of the Balkan saints, ascetics and hermits of the 11th century. Legend has it that his remains have miraculously cured many who were sick over the centuries. Legend also says that at the end of the 10th century, Romanos Diogenes, a Byzantine military commander and member of the military aristocracy in Cappadocia, was chasing a wounded deer during a hunting expedition that took refuge in Prohora when he met an old hermit who he was afraid of and began to flee. The psychic old man Prohor called to him and told him to go to Constantinople, where he would be elected Emperor. Diogenes soon became emperor (Romanos IV Diogenes, 1068 - 1071), but he forget about the prophet Prohora, who mad him rebuke in his sleep. The emperor sought the hermit he had met in the caves of the area, but was unable to find him and so instead raised a temple on the site and dedicated it to the holy martyr St. George.

How to get there: the monastery is located on the border with the Republic of Macedonia, on the wooded slopes of mount Rujna and Kozjaka, on the left bank of the river Pčinja, near the village of Kleniko, 30 km south of Vranje.

9/12 Vavedenje

with the Church of the Presentation of the Virgin Around eight kilometres from Čačak to the right of Ovčar Mountain, on the bank of the River Morava, is Vavedenje monastery dedicated to the Presentation of the Virgin Mary.

According to tradition, but without historical confirmation, this monastery dedicated to the Presentation of the Virgin was erected St. Sava and his father Nemanja. Turkish records mention the year 1528. During the great exodus of Serbs the monastery was abandoned and remained without a monk. The first renovation was carried out in 1797. At one time it was also a parish church. The monastery’s frescoes have been destroyed by time and the occupying Turks. All that is preserved are the imperial doors and cross with the crucifixion, as well as Four Gospels from 1552. In the monastery there are particles of relics from several saints. The monastery is currently an active nunnery.

How to get there: the monastery is located about 8 km from Čačak to the right of Ovčar Mountain and the bank of the Morava.

107 September 2013 | www.cordmagazine.com

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Peć Patriarchate The Peć Patriarchate is a complex of four churches and a narthex. The churches are dedicated to the Holy Apostles, St. Dimitrija, the Holy Virgin and St. Nicholas. In addition the churches and narthex are bespoke residences. When Žiča became unsafe to house the Archbishopric, due to the attacks of various tribes, Serbian Archbishop Arsenije relocated the headquarters to Peć c in the mid 13th century. According to the 14th century fresco showing the Patriarchate’s draft, it was built by St. Sava. Subjected to attacks from the Turks until the year 1690, when the monks, Arsenije III and the local people fled from Kosovo, many churches and monasteries were looted and burnt, only for the 1766 edict of Sultan Mustafa II to abolish the Peć Patriarchate villa. It was restored in 1920, but the once rich treasury of the monastery, which is located in the Church of St. Dimitrija, was severely impoverished. It still managed to preserve many valuable works of art. The library contains 113 handwritten manuscripts, many of which are contemporary with the independence of the Serbian Church. There is the miraculous icon of the Virgin of Peć, the icon of the returnof saints Kuzman and Damjan, an icon of St. George and others, while the iconostasis from the year 1724 in the Church of the Holy Apostles is also significant. The first formal renovation and restoration took place in 1931/32 and 1952/54. After fire swept the residence halls in the 1980s, many books and other items were taken to Belgrade. The monastery is now an active nunnery cared for by resident nuns. Today it is under the protection of international soliders under the guise of KFOR units.

How to get there: The Peć Patriarchate is located at the entrance of the Rugova Gorge near Peć, beside the river Bistrica

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Lipovac

Mileševo with the Church of the Ascension

The monastery church, originally dedicated to the Transfiguration, was built by the monk German, according to the inscription above the door, in 1399. The first written records date from 1413 and it appears in Ottoman records in 1536. Major restoration took place in the 17th century and was ordered by Serbian Despot Stefan Lazarević.

Built of stone, its imitation brickwork is most likely the result of a major renovation in the 17th century. Only fragments of its old frescoes have been preserved. Frescoes were also painted in the lower zone during the restoration of the monastery in 1939. Near the monastery are the remains of a medieval fortified town of Lipovac. The monasUseful links tery is an active nunnery today.

How to get there: The monastery is located at Katun near Aleksinac.

Mileševo Monastery was built by King Vladislav Nemanjić, the son of Stefan the First Crowned, in 1218 and 1219 and was decorated in 1234, when Vladislav took the throne. The church was built in the Raška style modeled on Žiča and represents a pearl of medieval construction and painting. Vladislav came to the throne of Serbia by ousting his older brother Radoslav and then soon gave up the throne in favour of his brother Uroš. St. Sava died in Trnovo in 1235, but through the commitment of Vladislav and Archbishop Arsenija he was brought to Mileševo in 1236 and ceremoniously buried in the newly built narthex. Even today this monastery houses Sava’s tomb, though his mortal remains were burned by the Turks on Vračar in Belgrade.

Mileševo is also known for being the place where Tvrtko was crowned king of Bosnia and Serbia in 1377. The wall murals of Mileševo are among the best of that era. One of the most famous Mileševo frescoes is the renowned White Angel, as well as the short branch of the Nemanjić. The monastery is active and home to monks.

How to get there: 10km from the centre of Prijepolje over the bridge and straight on beside the river Mileševka is the monastery with its church dedicated to the Ascension of Christ.

with the Church of St. Stefan the Archdeacon

cordeditorial@cma.rs |

107 September 2013 | 83

chill out

The world's first burger made out of meat grown in a lab

Man creates flight simulator in bedroom

The 150-grams patty, created for £250,000, will be served at a secret location to see if it passes the taste test.

Prof Mark Post believes our demand for meat will make farming unsustainable, so he and his team used cow stem cells to create 20,000 tiny strips of meat.

These then self-organised into muscle and were electrified to help them bulk up.

Beetroot juice and saffron were added for colouring.

An audience in London will see it served to two volunteers – including the mystery tycoon who funded it.

Prof Post, from ­Maastricht University in the N ­ etherlands, said: “For it to succeed it has to look, feel and hopefully taste like the real thing.”

An aviation enthusiast has built a fully functional Boeing 737 flight simulator in his son’s bedroom.

Frenchman Laurent Aigon ( 40), has been collecting components for the last five years in order to create the simulator with friend JeanPaul Dupuy.

Thousands of euros were spent by the duo ordering parts online, with the final product being so realistic that he was asked to give a lecture on the project by the Institute of Aircraft Maintenance at Bordeaux-Merignac Airport.

Mr Aigon has subsequently learnt the procedures for take off and landing, and is able to fly the simulated aircraft.

Two major aircraft manufacturers have also expressed interest in testing the simulator.

Monster Drum Kit

Lawn Mower Championships

Mark Temperato from Lakeville, New York, a rock n roll reverend has smashed the record for the world’s biggest drum kit - with a staggering 813 individual pieces weighing more than a whopping 2,2 tonnes. Mark, who goes by the stage name RevM, destroyed the previous record by over 450 extra parts which he has painstakingly assembled over the past 20 years. To prove the kit is fully-functional and claim the Guinness record, Mark had to be able to hit all 800-plus pieces from either a sitting or standing position without taking a step to either side. Some of the parts are as far as 2 or 2,.5 meters away from each other and it takes an entire hour for Mark to strike each piece but he insists he knows every sound on the set.

The Lawn Mower World Championships were held this summer in West Sussex in the UK. The format of this unique event was a series of sprint races where drivers accumulate points, with each group of lawnmowers taking part in 16 races.

Thirty-five drivers competed in 18 races, with three different classes.

Mike Cresswell succesfully defended his class two world title, while reigning champion Dean Fuller came out in top in class three, securing his fourth world crown.

For safety reasons all the blades are removed from the mowers and only minor modifications to the engine are allowed.

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107 September 2013 | www.cordmagazine.com

Aging at a snail's pace Snails are the next big thing in anti-ageing.

The ‘Snail facial’ costs around $270 and is being touted as the secret to a youthful looking complexion by Tokyo-based beauty salon Ci:z.Labo.

Game customers will endure multiple snails slithering around on their face in the pursuit of younger looking skin.

The slippery customers are said to remove dead skin and clear the pores, as well as having anti-aging properties.

‘Slime from snails helps remove old cells, heal the skin after sun burn and moisturise it,’ said Manami Takamura, a spokeswoman from the Ci:z.Labo beauty salonWorld’s first lab-grown burger

VIP Toilet for best shoppers

Libai Plaza is a particularly fancy shopping area in Guangzhou, China, where you can indulge in all kinds of luxury goods and extravagance. The area has also gained fame of late for featuring a luxurious “VIP” toilet which can only be used by customers who spend insanely large sums of money.

To become an esteemed member of this secret toilet club, you have to spend at least 25,000 RMB ( €6,100) on the day or 50,000 RMB within the past half a year at Libai Plaza. However, Miss Liao, who is the Promotion Manager at Libai Plaza, did say that “ordinary” customers can use the facilities if they have a child who is in desperate need. Source: Hexun

The World's Most hi-tech Bin The BigBelly Solar bin harvests energy from the sun and uses it to compact waste to an eight of its size, is currently on trial in Merton, south west London and the company claims it will cut the number of rubbish collections needed by up to 86 per cent.

The bin is powered by a 12v battery and sends a text message or email to its ‘owner’ when it is 85 per cent full and in need of emptying The cost of leasing the high-tech bin is an eye-watering £1,000 a year when leased for five years but because of its huge capacity, it could save councils money in vehicle journeys and fuel to collect waste.

According to the distributors of the bins, Kyron Energy & Power, the compactor technology increases the capacity six to eight times that of a normal street bin.

Mass balloon launch soars to record

Making his own Rules When Russian Dmitry Agarkov received an unsolicited letter from Tinkoff Credit Systems (TCS) offering a credit card and found it to have unattractive rates, he decided to make some changes. He scanned the contract in the letter and altered it in his favor, including, for example, a 0% interest rate, no fees, and no credit limit. Moreover, every time the bank didn’t stick to these rules, they’d be fined 3 million rubles — $91,000 — which of course would go to Agarkov. If they broke the contract, they’d have to pay Agarkov 6 million rubles ($182,000).

Agarkov’s altered contract was, surprisingly, accepted! And he received a credit card.

Two years later, TCS sought to close the account due to overdue payments, and at this point, things began to get difficult. TCS decided to sue Agarkov for 45,000 rubles ($1,363), an amount that featured fees and charges not included in the altered contract. But a Russian judge decided that Agarkov was right — as the bank had signed the contract and Agarkov was only asked to pay his outstanding balance of 19,000 rubles ($575).

But TCS isn’t out of trouble yet either, as Agarkov has decided to sue the group for breaking the terms of the contract, allegedly for 24 million rubles ($727,000). The court will review his case in September, Russia Today reports.

Over 400 hot-air balloons take off in Chambley-Bussieres, eastern France A hot air balloon festival in eastern France broke two records in as many days - first by sending up 408 piloted balloons in an hour, then by lining up 391 balloons on runways and sending them up together.

The annual Lorraine Mondial Air Balloons is organised by a descendent of the 18th century aeronautics pioneer Jean-Francois Pilatre de Rozier who took up the family hobby. Philippe Buron Pilatre has been piloting balloons since 1979.

“My father flew. My son flies. My brother flies. Someday my grandson might fly,” he said.

Source: AP

Man repays insurance money with 4 tons of coins A southern Illinois,US businessman has paid off part of a court-ordered legal settlement with nearly four tons of quarters packed into dozens of bags Roger Herrin, of Harrisburg, was ordered by an appellate court to repay $500,000 in insurance money related to a 2001 car accident in which his teenage son died.

The reimbursement followed years of legal disputes about how the insurance money was apportioned to the crash victims.

So in protest, Herrin repaid nearly a third of the money - $150,000 - with 25-kilograms bags of quarters he had trucked in by the Federal Reserve bank in St. Louis.

Herrin says he paid in quarters because paying in pennies wasn’t feasible. cordeditorial@cma.rs |

107 September 2013 | 85

techno talk

Big Boys and

gadgets

Their Toys

According to its definition, a gadget is a small technological object (such as a device or an appliance) that has a particular function, but is often thought of as a novelty. Gadgets are invariably considered to be more unusually or cleverly designed than normal technological objects at the time of their invention. Gadgets are sometimes also referred to as gizmos. The word gadget includes a wide range of applications, from smartphones to video game bundles, to 3D TVs, and there's something on this list that should suit everyone.

In this issue, we extend a little bit the definition of a gadget, suggesting some toys that every man would want even though they might not be called gadgets

1974 Kojak Omega Time Computer 1 Watch Price:

€2,300.oo

The 1974 Kojak Omega Time Computer 1 Watch was also one of the first LED watches made, sporting more transistors than the smallest TV of the time, and made even more noticeable by its gold plate body.

Sonos Sub Price:

€535.oo

This self-powered subwoofer connects effortlessly to your existing Sonos system, adding a healthy dose of low-end aptitude thanks to two force-canceling speakers that are positioned face-to-face to eliminate cabinet buzz and rattle.

Sony SmartWatch Price:

€115.oo

Sporting a 1.3-inch OLED touchscreen display, Bluetooth 3.0, and four days of battery life, this sleek, square-ish watch connects to your Android phone, giving you the ability to read texts and emails, receive Facebook and Twitter updates, initiate and answer calls, control music playback, and run apps optimized for the small screen from Google Play.

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107 September 2013 | www.cordmagazine.com

Canon EOS-1D C Cinema Camera Price:

€11,470.oo

The Canon EOS-1D C Cinema Camera , based on the EOS-1D X, the 1D C provides a DSLR-style body, an 18.1-megapixel full-frame CMOS sensor capable of 4096 x 2160 video recording, ISO 25,600 sensitivity for outstanding low light performance, dual DIGIC 5+ image processors, compatibility with over 60 interchangeable Canon EF and EF Cinema lenses, and — of course — all the stillimage chops of the 1D X.

Nike Golf 360º App Price:

TBA

This slick new app is divided up into four sections — My Game, that lets you track your scoring and statistics, My Swing, where you can compare and upload video of your swing, and even receive personal coaching from Nike Swoosh Staff members, My Body, which helps you get into golf shape, and My Gear, where you can keep track of what's in your bag and receive recommendations on new gear — all of which sync with a companion website.

HydroView Price:

€3,050.oo

This underwater vehicle shoots 1080p video and high-quality stills, which it beams back wirelessly to the same iPad that you use to control it via the accelerometer and touchscreen. Other features include on-board LED lights, the ability to reach speeds of five knots going forward and one knot in reverse, and the ability to collect data on water conditions.

AppTag Laser Blaster Price:

€27.oo

1/3

best choice

The AppTag Laser Blaster promises to turn your phone (or iPod touch) into a laser tag recommended by gun/shooter that works via IR and high frequency sound to let app developers create nearly any kind of multiplayer shooting game you can imagine, all without needing to block the headphone port or eat away battery via Bluetooth or Wi-Fi. Six buttons — including a pressure sensitive trigger and a oversized reload switch.

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107 September 2013 | 87

techno talk

Pebble Price:

from €87.oo

Developed by the same minds behind the inPulse smartwatch for Blackberry, the Pebble is an ePaper smartwatch for iOS and Android that connects to your handset via Bluetooth, offering wrist-based notifications like caller ID, email, calendar alerts, and Facebook and Twitter messages, the ability to function as a music controller, workout computer, and golf rangefinder.

LawnBott SpyderEvo Price:

€1,320.oo

This semi-automatic mower uses perimeter wire and internal sensors to handle pretty much any yard up to 1000 sq.metres, automatically recharges itself using the optional docking station, offers four-wheel drive to manage slopes up to 27 degrees, is virtually silent, and runs up to 3.5 hours a time on a single charge of its Li-ion battery.

induction Speaker Price:

€23.oo

The Induction Speaker is ideal for sharing music on the go without any wires, connecting, mains plugs or docking.

Place your phone on top of the speaker, and by using the latest in Near FA technology you will receive a crystal clear sound emitting from the device. Even if you have a case or cover on your phone, you can still enjoy high clarity music on the go at a surprising volume.

FitBit Ultra

2/3

best choice

recommended by

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107 September 2013 | www.cordmagazine.com

Price:

€75.oo

The tiny Fitbit device fits on your belt and tracks every step you take, every stair you climb, every chair you sit in, total calories burned, and even studies how often you toss and turn while sleeping. In all, it's the best fitness tracking device we've tested.

3/3

Adastra Yacht Price:

best choice

recommended by

€11,465,000.oo

Adastra Yacht combines luxury accommodations with the speed, fuel economy, and seafaring capabilities of a stripped down cruiser. Features of the nearly all-custom boat include a superstructure crafted from carbon fibber with a Nomex honeycomb core, a glass and kevlar foam sandwich hull, incredible on-deck lounging areas, a fullwidth master bedroom with full bath, two guest cabins, a massive Caterpillar C18 main engine cranking out 1150 hp, a top speed of 42km/h, and a range of 6,500 kilometres.

Sennheiser RS 220 Wireless Headphones Price:

€460.oo

Based on the company's revered HD 600 series, these Sennheiser RS 220 Wireless Headphones ($600) use an uncompressed digital signal sent over a 2.4 GHz connection to maintain fidelity up to 300 feet away, while analog, coaxial digital, and optical digital inputs in the included transmitter and recharging dock ensure that no matter the source, the RS 220s will play nice.

Koss Porta Pro KTC Headphones Price:

TBA

Sporting an in-line three-button remote and mic, they're ready for use with your iPhone, iPad, or iPod, and also offer Comfort Zone temporal pads to reduce the pressure on your ears, a collapsible design and carrying case for portability, and Mylar elements for accurate sound.

Logitech M600 Touch Mouse Price:

€55.oo

The Logitech M600 Touch Mouse might just be what you're looking for. Sporting a large touch surface, it lets you scroll and swipe your way through webpages, files, photos, and more, while an optical sensor provides plenty of accuracy, and a tiny receiver creates a solid 2.4 GHz wireless connection for the M600 and up to 5 other devices.

cordeditorial@cma.rs |

107 September 2013 | 89

fashion Party Outfits

Keep up with the comfortable and the stylish

The party season is coming, and everyone is already thinking about what to wear… There are a few things to take into considerations. With a mix of social strata at a party, you want to strike the right balance, not wanting to be overdressed or underdressed.

Being overly branded is a clear statement of wanting to impress, so we suggest keeping it to a minimum. Try to keep it casual, comfortable and tasteful. Fashion and dressing up is all about having fun, and it is never a competition. If you really want to compete, you could lose...

St. John's Fitted Double Face Wool & Cashmere Coat A contrasting interior peeks out from the wide seminotched collar topping a warm, double-faced felt coat crafted from the finest wool and cashmere yarns.

Front welt pockets and vented cuffs complete the contemporary styling. price:

€755

St. John Milano Fit and Flare Dress This fit and flare dress from St. John has been crafted in the brand’s signature Milano knit. Rich to the touch, it will fall beautifully, cinching at the waist before softly flaring at the skirt.

Stella McCartney Feather Flower Print Scarf Crafted from a lightweight modal and silk blend in fresh white and navy, you’ll never want to take this scarf off. price:

€320

price:

€695

St. John Tweed Jacket Knitted in a lightweight wool-blend, it boasts a lovely mix of Tuscan Yellow and Bright White shades. Perfect for work-to-weekend dressing, it will look great paired with sheath dresses and slim leg trousers. price:

€1,395 90 |

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Diesel SBA' Time Zone Watch A gigantic, statement-making watch boasts four time zones and both digital and analog time for an ultra-modern look. A sporty siliconewrapped bezel and matching strap temper the industrial design.

McQ Alexander McQueen Asymmetric Zip Sleeveless Coat This cosy sleeveless outerwear design is crafted out of stretch fleece wool and fastens with a double asymmetric zip closure.

Keep out the chill of autumn and winter with this bold coat.

price:

price:

€300

€727

price:

Linda Farrow Luxe Yellow Gold Sunglasses

€590

Burgundy and yellow gold give an opulent feel to these classic shaped sunglasses. An investment pair, these are perfect worn with everything from a swimsuit to a simple trench coat and dark denim.

Shawl Collar Cas

Eskandar Double Collar Shirt

Cap sleeves frame the elegant shawl collar tracing a long and cozy cashmere topper knit in a sumptuous waffle-weave pattern.

Styled with a double stand collar, pearlized buttons and a slim A-line silhouette, it exudes effortless sophistication. Long in length, it will look great paired with slim leg trousers.

price:

€455

price:

€1120

Marc by Marc Jacobs Bag Classic Laurence Dacade Black Ankle Boots Laurence Dacade wears her Achille boots with the buckles undone, paired with jeans. The highquality soft leather slouches at the ankle with wear, ensuring these glossy black boots are ideal for on and off-duty.

This classic leather tote is a smart choice for any style maven. Incredibly roomy and timelessly chic, this gorgeous design is sure to become a go-to both on and off-duty. price:

€560

price:

€835

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107 September 2013 | 91

fashion

Back to Business

Canali Wool Twill Suit

Saint Laurent Slim Leather Belt Crafted in smooth black leather, the design is finished with a tri-detail buckle for clean, contemporary style.

A handsome two-piece suit from Milanese masters, Canali. Designed as part of the brand’s ‘Exclusive range’, it has been expertly tailored in greige wool twill. Timelessly luxurious with an exquisite fit and finish, it makes for a very worthy investment. price:

€ 1,645

The first days of September remind us that autumn is near and this means getting back to business.

This year’s autumn look for men is again classic without being retro, yet full of traditional elements that distinguish themselves from years past through details and technology. Colours are dark but not somber, and the looks are often mix-matched patterns.

The collections are casual, but not necessarily sporty, featuring sweaters and shirts. Designers also provided daytime business wear with single or double-breasted suits

price:

€ 300 price:

CANALI - BLUE CHECK WOOL SUIT

€ 1,235

Canali is known for exquisite suiting and this two-piece comes in a checked, unwaveringly smart tonal blue wool fabric. Try it with a pocket square or with a shirt and tie. price:

€ 350

PAUL SMITH SHOES No wardrobe is complete without a pair of black wingtip shoes, and this Paul Smith version is an assured choice. Crafted in Italy with a sleek shape in high-shine leather, these brogues will work just as well in the office as at evening events

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How to...

price:

€ 400

PAUL SMITH - RED SLIM-FIT COTTON SUIT JACKET

Colourful tailoring ensures you stand out at smart events, and this Paul Smith suit jacket hits the spot. Designed to be worn with the matching trousers, this cotton piece comes in a slim fit and dark red shade that looks assured without being too imposing.

price:

€ 1,245

Matching Shoes and Socks One of the great debates and issues men has when dressing is how to match men’s shoes and socks. You see mismatched disasters all the time with guys when looking at their pants all the way to their shoes.

We are going to give you some simple and fast rules that will make getting dressed really easy.

When in doubt, always match your socks to your pants. Following this rule will allow you to look your best 90% of the time. So, if you’re wearing a suit, your shoes should already match your suit; your socks should be a natural bridge from your dress shoes to your pants. Therefore if you’re wearing black pants, wear blacks socks. Brown pants - brown socks.

But how to make sure your socks makes a nice bridge to your pants. It means that if you veer from matching solid colour socks to your pants; make sure the socks make a nice, clean transition from your shoes (or boots) right up to your pants.

When wearing jeans – especially lighter blue jeans, don’t wear light blue socks with them. It just doesn’t work. If you are wearing darker blue jeans and black boots, you may wear gray socks. That way everything is in alignment.

Follow these simple rules and you’ll have no problem matching your shoes to your socks and then your pants.

ALEXANDER MCQUEEN - BLEND SUIT JACKET Impeccable tailoring has always been central to Alexander McQueen’s design DNA. This elegantly cut suit jacket demonstrates the label’s superlative craftsmanship. Made in Italy, this sleek wool and mohair-blend piece will look especially sharp worn with the matching waistcoat and trousers.

Dolce & Gabbana Sunglasses Mirrored lenses lend an ultra cool edge to these rubberized aviators from Dolce & Gabbana, Rubberized translucent aviator frames, platinumhued mirrored lenses

price:

€ 265

price:

€ 1,220

Georg Jensen Koppel Leather Watch A timeless design for everyday, Georg Jensen’s Koppel watch is a simple piece with a sleek leather strap and polished stainless steel case cordeditorial@cma.rs |

107 September 2013 | 93

profile

Endurance,

optimism and pragmatism James Gunn is British and has lived in southern Africa, Thailand, London and Spain. He founded the first digital public relations practice in the UK in the late 1990s and led public affairs programmes in Europe, Middle East & Africa for major global telecommunications companies. He acts as nonexecutive director for several British firms in Serbia and advises on crisis and issues management for companies and organisations around the world My first visit to Serbia took place in 2006 with family as we ex-

James Gunn General manager (Belgrade), BritishSerbian Chamber of Commerce; director, Poseidon Serbia; and crisis management advisor of development in other cities around Serbia.

plored the region from Budapest to Istanbul for one month in the

Reflecting the growth in bilateral trade interest, the British-

summer. It was certain that I knew little about the Serbian people,

Serbian Chamber of Commerce opens a representative office in

economy, challenges and opportunities, but it certainly sparked an in-

Belgrade in September to support inward investors, while serving

terest to return. By mid-2008, I first relocated to Serbia.

Serbian exporters to the UK and those companies seeking access

I had been working in Madrid since 2003, where I established a

to London’s capital markets. This happens at a time of growing op-

communications consultancy and invested in a residential property de-

timism in Serbia with a steadily reforming government gaining EU

velopment business. However, by 2006, the problems of the Spanish

Associate Member status.

economy were fast becoming clear and prompted me to consider new

While the past two decades of Serbia’s history has created many

opportunities. Serbia called and I took a job to manage a British public

legacy issues, the Chamber looks forward to supporting the coun-

relations firm’s network of smaller ex-Yugoslavian offices.

try’s implementation of a new vision for the country which will focus

As the global economic crisis unfolded and my experience of Serbia evolved, it became clear that a new communications consul-

on economic reform and stimulation to foster entrepreneurialism, create jobs and improve living standards for the next 20 years.

tancy model was required. Public relations practice was dominated

British companies will always choose an investment destina-

by a few firms with their party-political and media affiliations working

tion with maximum return on investment and a minimum risk.

on relatively lower-budget brand-building marketing programmes.

Serbia has a lot of characteristics promoting itself: an excellent lo-

There was a demand for more creative and strategic thinking, spe-

cation, a large number of talented workers and EU perspective,

cialist investor relations advice, and genuinely senior consultants en-

which will encourage the Government to make further economic

gaged entrepreneurially in clients’ businesses who could work more

reforms. Simply removing administration and bureaucracy would

flexibly and on success-based fees.

For sure, living in Serbia has provided ample “learning experiences” which I believe has made me more personally resilient.

The road to victory is never easy and that remains especially true for doing business in Serbia today

Today, since establishing my own practice, I am pleased to be work-

give Serbia a strong regional advantage, particularly among small

ing alongside experienced, progressive and dynamic colleagues from

and medium-sized enterprises considering offshoring their manu-

across SE Europe, engaged in bringing inward investors to Serbia,

facturing and back-office administration functions, and which de-

and steadily winning more instructions and mandates.

mand fewer investment incentives.

There are many examples of growing British investment in-

I have been fortunate to visit many regions of Serbia in exploring

terest in Serbia, particularly from the mining, energy, pharma-

tourism development potential, and identifying mining and manufac-

ceuticals, financial services, education, leisure and IT sectors.

turing investment opportunities. While there are obviously many com-

Poseidon Group, the London-based property development, min-

panies struggling with transition, it was encouraging to see recently in

ing and agribusiness company, has started construction on a re-

Macva region, on the Drina river, bold examples of foreign and Serbian

tail park in Sabac, bringing near €10m in funding while creating

businesses exporting all their product abroad, creating new jobs and

150 jobs. Similar construction projects are at an advanced stage

investing in technology. Undoubtedly, more will follow. ■

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