CorD magazine 120

ENTREPRENEURSHIP IN EVERYTHING

H.E. ADELA MAYRA RUIZ GARCÍA

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Ambassador of the Republic of Cuba to Serbia

AGAINST A STRONG WIND

H.E. NILS RAGNAR KAMSVAG

MATTEO PATRONE

Norwegian Ambassador in Belgrade

Head of the EBRD office in Serbia OCTOBER ’14 / ISSUE No. 120

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The Creativity Factory

OF A NEW ERA

VANJA UDOVIČIĆ SERBIAN MINISTER OF YOUTH AND SPORT

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October 2014 • Issue No. 120

PAGE 8

CONTENTS

COVER

Right Man in the

RIGHT PLACE

EDITOR: Saša Marić s.maric@aim.rs

Vanja Udovičić, Serbian Minister of Youth and Sport

Serbian Minister of Youth and Sports, Vanja Udovičić, is still today more often viewed as one of the global sports icon, rather than as a politician and minister...

ART DIRECTOR: Ilija Petrović i.petrovic@aim.rs

PAGE 6

PAGE 24

PAGE 44

STILL FIGURING OUT

SMALL FILM SCENE MAJOR HANDICAP

QUALITY EDUCATION FOR TOMORROW’S LEADERS

DRAGAN BJELOGRLIĆ Actor, Producer, Director

ANGELO COSKINAS Upper School Principal, International School of Belgrade

PAGE 30 VLADIMIR GLIGOROV, Professor at the Vienna Institute for International Economic Studies

MORE INVESTMENTS TO STIMULATE GROWTH EU Economy

PAGE 8

PAGE 32

RIGHT MAN IN THE RIGHT PLACE

HOW TO AVOID ‘GREAT STAGNATION’

VANJA UDOVIČIĆ, Serbian Minister of Youth and Sport

G20: Finance Ministers and Central Bank Governors Meeting

PAGE 14

PAGE 34

OPEN DOOR FOR ECONOMIC COOPERATION

BATTLE LINES DRAWN FOR INDEPENDENCE AFTER SCOTTISH VOTE Scotland Referendum PAGE 36

H.E. ADELA MAYRA RUIZ GARCÍA Ambassador of the Republic of Cuba to Serbia PAGE 18

GLOBAL DIARY PAGE 20

AGAINST A STRONG WIND

MATTEO PATRONE Head of the EBRD Office in Serbia

MEETING OF THE NEW CHAMPIONS World Economic Forum 2014, Tianjin, China PAGE 40

PAGE 47

KNOWLEDGE AND SKILLS FOR THE FUTURE

MARKO CARIĆ Dean of The Faculty of Law for Business and Judiciary at the University Business Academy in Novi Sad PAGE 79

ONLY PURE EMOTION MAKES SENSE IN FILM

VUK RŠUMOVIĆ, Director and Writer PAGE 86

TENNIS SHOES FOR TENNIS CHAMPIONS

THOMAS WEEGE “Mr Barricade”, Design Director and Designer of Every Generation of Barricade Adidas sports shoes PAGE 94

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DRAGAN JOVANOVIĆ Director of the Kostolac Company Thermal Power Plants and Mines

CONTRIBUTORS: Rob Dugdale, Mirjana Jovanović, Radmila Stanković, Steve MacKenzie, Zorica Todorović Mirković, Tijana Jovanović Petrović, Sandra Žuvela PHOTOS: Zoran Petrović, Časlav Vukojičić COPY EDITOR: Mark Pullen TRANSLATION: Snežana Bjelotomić SALES DIRECTOR: Melita Andrejević m.anderejevic@aim.rs PROJECT MANAGERS: Biljana Dević, b.devic@aim.rs Ivana Krsmanović, i.krsmanovic@aim.rs OFFICE MANAGER: Nataša Nešić n.nesic@aim.rs EDITORIAL MANAGER: Tanja Banković t.bankovic@aim.rs FINANCIAL DIRECTOR: Ana Besedić a.besedic@aim.rs EXECUTIVE DIRECTOR: Ruža Ristanović r.ristanovic@aim.rs GENERAL MANAGER: Ivan Novčić i.novcic@aim.rs PRINTING: Rotografika d.o.o., Segedinski put 72, Subotica CorD is published by: alliance international media Makenzijeva 67, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 Fax: +(381 11) 2450 122 E-mail: cordeditorial@cma.rs www.cordmagazine.com www.allianceinternationalmedia.com ISSN no: 1451-7833 All rights reserved alliance international media 2014

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COMMENT

Still Figuring

Out

After passing reform legislation dealing with the labour markets and privatisation, the Serbian government has turned to fiscal consolidation and public sector reforms, the first elements of which should be incorporated into the revised budget for this year and the three-year fiscal strategy VLADIMIR GLIGOROV Professor at the Vienna Institute for International Economic Studies

T

hese should also be the subjects of intense negotiation Subsidies are a different matter. Those that cover losses with the IMF on a new, most probably three-year, standwould have to be eliminated by price hikes and employment cuts. by agreement to be signed before the end of the year. Out Required increases in the price of gas and electricity may have of all these intended measures, some elements of budgto be quite substantial. In other cases, for example the national et cuts have been made public. Those are still not definite, but they rail company, cuts in employment will also have to be substantial. are indicative of the direction the government intends to take.

Other public firms will have to be sold which, besides being unThe aim is to stabilise the public debt to GDP ratio at about 75 popular, may also lead to more costly services and lay-offs. As for per cent by the year 2017. After that the fiscal deficit should be such subsidies to agriculture or for investments, these cuts are raththat this ratio will stop increasing and will stop declining towards er small, but still won’t be popular with their recipients. It may the legally mandated level of 45 per cent. In orprove difficult to overcome all the resistance der to accomplish this goal, the government dissatisfaction that these measures will Fiscal consolidation, and intends to cut spending by about two per cent provoke and mobilise. if achieved through of GDP per year. Those savings should come Fiscal consolidation, if achieved through expenditure cuts, from the elimination of subsidies to loss-makexpenditure cuts, which is not certain, does liting public enterprises and to a much lesser extle to promote economic growth. In fact, the which is not certain, tent other subsidies, and from cuts in wages effect will be negative, i.e. recessionary. does little to promote initial and pensions. The latter have received most The economy is already experiencing negative economic growth public attention. growth of about one per cent this year. With However, it will be easier to cut incomes some luck, next year and the year after the dethan subsidies. In the past inflation was used to reduce real incline should stop, but not much more can be expected. In order for comes, e.g. compensation and pensions, often accelerated through things to turn around, a rather significant increase in investment an exchange rate adjustment mechanism. The rising inflation rate will be needed. In the first half of this year investment continued would then trigger demand for wage increases and consequentially to decline, as has been the case for most of the crisis years. At the pensions, which are indexed according to the former. Under current moment it is not easy to see what would turn this trend around. circumstances of falling consumption and worsening expectations, Without that, however, there will also be no increase in employwhich have driven headline inflation down to around zero, quite sigment, which is sorely needed. nificant devaluation would probably be needed to engineer a sigSo, after these fiscal consolidation measures, other reforms nificant rise in prices that the central bank, however, would certainmust follow that will boost investment, production and employly want to avoid. There is scant experience with labour market rement. Those would have to include financial consolidation, prodsponse to nominal wage cuts, though resistance in some sectors can uct market liberalisation and much a more efficient public adminisbe expected, while pensioners will have difficulties staging protests tration with a complete overhaul of the regulatory system. If these given that their party is in the government coalition. There could still reforms are delayed further, then fiscal consolidation will run inbe strikes and social protests, but those are unlikely to succeed, beto growing resistance and may have a hard time being fully implecause the government enjoys high public and electoral support. mented and delivering the desired results. â–

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INTERVIEW

Right Man in the

RIGHT PLACE VANJA UDOVIČIĆ SERBIAN MINISTER OF YOUTH AND SPORT

Serbian Minister of Youth and Sport, Vanja Udovič ić , is still today more often viewed as one of the global sports icons, rather than as a politician and minister. In his illustrious career as a professional water polo player, he won all kinds of medals: in addition to two European club champion titles, Udovič ić was also a champion with the Serbian national team, winning European gold for the juniors in 2000 and gold medals from the World Championships of 2005 and 2009, European gold in 2003, 2006 and 2012, Olympic silver in 2004 and Olympic bronze in 2008 and 2012

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POTENTIAL

CORRUPTION

BUDGET

Heavy cuts are required everywhere in order for the system to be placed on a stable foundation and for conditions to be created for further progress in accordance with the potential, which is huge in this country.

By removing corruption and abuse, like cancerous tissue, space is created for healthy development. The government is determined to tackle corruption at all levels, including in sport.

The budget for sport was not great in the past, accounting for just 0.34 per cent of the state budget, but with good governance relatively good results can be achieved.

I

task the compiling of a strategic and legal basis for the creation of a stable system of sport in Serbia. The new law on sports is almost complete; there is also a law on the prevention of doping, while the Sports Development Strategy up to 2018 is under public debate. All of these acts, which will be adopted by the end of the year, will regulate the system to be sustainable, predictable and

Photo: Hello Magazin

n September 2013 he accepted an invitation to take over the reigns of the Serbian Ministry of Youth and Sport and, judging by results and medals won in the previous year, many suggest he is one of the most successful sports ministers in Serbia’s recent history.

As a man who knows sport from the inside, with built in reflexes, dynamics and efficiency of decision-making, Udovičić leads his ministry in the same way he led his team many times when winning medals.

■ In your sporting career as a member of the water polo national team you won everything that could be won in the sport, even to the point where you were declared four years agao by the World Water Polo Federation, FINA, as the world’s best player. What did you think at the time, as a top athlete, about the system in which Serbian sport functions?

- I’m lacking an Olympic gold medal, but that’s why I’m very happy that we have a phenomenal generation of young water polo players who, based on the game they’ve been showing, have a chance to bring that medal back to Serbia. Our country has never been much richer than it is now, but it has also never lacked champions at the world level. Serbian sport has practically operated for decades using a “stick and a piece of string”, with budgets many times smaller than those of economically powerful countries. However, such a system produced me as the player that I was, as well as many other athletes that Serbia is proud of. This means that we have an enormous human potential that we can use.

■ A year ago you accepted the position of minis-

In September our country joined the Convention on the Prevention of Fixing Results in Sports, whose recommendations will be incorporated into the new Law on Sport. Legislation in this area will, thus, be fully harmonised with European legislation

ter of youth and sports, at a time when sport in Serbia is going through major turbulence. You faced chaotic organisation, financing, crime and corruption. Which of these and the many other existing problems do you place at the top of your priorities?

- Sport shares the fate of its country. Everywhere heavy cuts are required in order for the system to be placed on a stable foundation and in order to create conditions for future progress in line with potential, which in the case of Serbian sport is really big. The problems are indeed numerous. Thus, it is all the more necessary to clearly define the priorities, which this government has done.

The Ministry of Youth and Sports has recognised as its primary

focused on the development of recreational and professional sport.

■ When the former UEFA president Leonard Johanson asked how he created football’s Champions League, today undoubtedly one of the most successful club competitions in the world, he said that first UEFA removed corrupt referees and officials, and only then thought about financing. How do you see this problem in Serbian sports?

- This equation is quite clear – the removal of corruption and abuse, as well as cancerous tissue, creating space for healthy development. The government is determined to tackle corruption at all levels, including sport. In Serbia matchfixing has been defined in the Criminal Code as a criminal offence for some time. In September our country joined the Convention on the Prevention of Fixing Results in Sports, whose recommendations will be incorporated into the new law on sport. Legislation in this area will, thus, be fully harmonised with European legislation. Such matters, of course, are not dealt with by one ministry, cordeditorial@cma.rs |

120 October 2014 | 9

but rather decided in conjunction with other state agencies with jurisdiction that includes criminal offences.

■ It is thought that, as opposed to money, our sport more lacks transparent operations, the departure of the state from sporting organisations and the removal from sports of people with problematic biographies. What can your ministry, the police and the government as a whole do in this regard?

- The primary responsibility of the Ministry of Sport is over sporting federations, because by law we finance their activities. This precisely means that the state is responsible for representative

and kayakers are phenomenal, as are our paralympic athletes, who are the only ones in the wider region to receive the same support from the government as all other athletes. We shouldn’t single out any results as being more important than others. Some sports are more popular than others, but behind every result stands systematic work and the support of the athletes we nurture and direct from the younger categories. This is continuous work by world standards. After all, our schools of sports have always been valued and many other nations work according to a system that was established here.

■ How would you explain the fact that, as a rule, the greatest suc-

cesses are achieved precisely by those athletes who train in bad conditions, funded by their parents or coming from foreign clubs, which are often trained by our coaches?

- That is a mistaken statement, which is clear from the examples of athletes I have just listed, and they are the only ones who have achieved success in the last month or two. None of them come from foreign clubs, they are all trained by our coaches and with strong support from the state. Through sporting federations and the Olympic Committee of Serbia, the state funds camps for promising athletes, as well as preparations, training, equipment, trips to competitions etc.

The Ministry of Youth and Sports awards monthly scholarships to promising athletes and elite athletes are not forgotten even when their professional sport, which brings Serbia medal after The public is focused on just a careers end, because all winners of World and European medals medal. Clubs are funded from other few popular sports, which can Olympic, receive a national sports pension from sources, not from the state budget, and be profitable, but next to them the age of 40. This is a complete system major “spring cleaning” is needed in that obviously yields results. From forthis segment. They are ripe for transthere is an army of athletes formation, in order for their business from “minor” sports that don’t eign clubs come representatives of sevto function optimally. This is a process commercially popular sports, but have a favourable commercial eral we have entered and the Ministry of it must be remembered that they went value and that are not of Sport has completed its part of the job. to foreign teams thanks to the qualiAfter a thorough study of the models ties that were identified and developed interest to private sponsors in countries similar to Serbia that have precisely in Serbia. This is the same as successfully completed this process, we drafted and suggested pohow our coaches that train foreign clubs provide proof of the value of Serbian sporting schools that produce top experts, who are retential models for the ownership transformation of clubs. The rest of the work is up to the institutions in charge of privatisation. spected and sought after worldwide. Sport, with the budget it has due to the country’s poor financial situation, has achieved great re■ Despite great difficulties, during your term Serbian sport has sults and we can only be proud of that.

achieved outstanding results at the global level. How do you explain this fact and which results would you single out?

- The most recent impression is of our basketball players, who are now second in the world; there are also shooting competitors who continually bring medals, water polo players also; we have a world champion in wrestling, the world champion in the sport fishing is our man, our young footballers are second in Europe; our athletics stars 10 |

120 October 2014 | www.cordmagazine.com

■ As minister of sport and, until recently, a champion and profes-

sional athlete who has competed around the world, could you agree with the statement that sport is actually a profitable category, which requires minimum investment and offers a huge “profit” in return, reflected in the promotion of the country and as a significantly positive influence on its reputation in the world? How do your

fellow ministers evaluate this untapped “investment” opportunity?

- I cannot completely agree that sport seeks only a small investment. Many years pass and a lot of money is needed before an athlete or team can hold the title of champion. Being an athlete is not a hobby, but rather an occupation, a career that is built from an early age if they are targeting a global result. I have already said that the public is focused on just a few popular sports, which can be profitable, but next to them there is an army of athletes from “minor” sports that don’t have a favourable commercial value and that are not of interest to private sponsors.

In the eyes of the state, they are all the same, because we cannot help basketball players and, for example, forget the needs of wrestlers. A result is a result, and we want to have as many of them as possible, and for everyone who has the potential to become a champion to receive the opportunity and support to do so. Therein lies the profitability of sports – for the name of Serbia worldwide to be associated with sporting success, to build the image of a small country that produces great champions. And that potential is by no means neglected.

I think there’s a clear commitment of the Government, in accordance with the modest economic opportunities that we have, to do everything we can to find our young people on the winning podium as much as possible.

■ Lately there has been a lot of talk about privatisation in sport. It is clear, however, that no one wants to invest in a non-transparent business environment, subject to the influence of different groups and irregular conditions of competition. Have you thought that perhaps in sport there should also be a list of clubs for restructuring, as is the case in the economy?

- It is the obligation of every citizen, every institution and every legal entity to respect the laws. Transparent operations are mandatory, and anyone who does not fulfil that must bear the consequences of their behaviour. Clubs in Serbia are currently operating in the form of civic associations and progress in the field of transparency will be achieved through a process of transformation and privatisation, when the ownership structure of sporting clubs is clearly established and when they begin to operate according to market principles.

■ It was once considered shameful in Serbia for the president of a club, on the basis of his position, to receive status benefits in so-

Privatisation in sport has been launched, after decades of burying heads in the sand. This will not be a pleasant job, but it is necessary. The point is for clubs to begin operating on a sound basis and the principle of transparency, in order to attract healthy private capital

ciety. Today sporting officials occupy most of the space in the media, while players are not paid for several months.

What is the legal status of athletes and is it necessary for international sporting federations to punish us, rather than us effectively solving these problems ourselves?

- Privatisation in sport has been launched, after decades of burying heads in the sand. This will not be a pleasant job, but it is necessary. The point is for clubs to begin operating on a sound basis and the principle of transparency, in order to attract healthy private capital.

There are certainly those that will not survive this process, but the laws of the market are clear, as are the tasks of the state.

- The state is not a media editor. Nor is the state the owner of clubs. I agree that everyone should solve their own problems – that is, those who run the clubs, those who sign contracts with players, they are their employers and it is their duty to find a way to pay their salaries, or to resign from their positions. Everyone needs to take responsibility for their actions.

the world’s biggest football clubs, Manchester United, Real Madrid and others. They all have affection for their city or state, but they are all required to implement transparent business and have opened finances. Why don’t the biggest clubs in Serbia operate in the same way?

ety of corrupt practices, from directly influencing managers and various bookmakers on sports results, to strengthening the role of the club’s elite. Where do you see a way out of this problem is that you have inherited?

■ This magazine has had the opportunity to talk with leaders of

■ Results fixing in sport inevitably creates conditions for a vari-

- The problem of match-fixing is not necessarily linked to poor cordeditorial@cma.rs |

120 October 2014 | 11

countries. In a recent interview, John Abbott, head of the joint FIFA and Interpol campaign to fight crime, said that there is evidence that organised criminal groups in China, Russia, the Balkans, the United States and Italy earn substantial amounts of money by fixing results, indicating that this amounts to billions of dollars. This is organised crime on a global scale and, as such, requires joint action and intense international cooperation.

- A fund exists for this purpose. For many years, through the Ministry of Youth and Sports, the state has funded young talents through monthly scholarships. Among our many recipients of annual scholarships are athletes like Ivana Španović, Emir Bekrić, Tatjana Jelača, wrestling world champion Davor Štefanek et al. All of them, alongside the fact they have strong state support for preparation and competitions, also receive a sort of monthly “salary” in the form of scholarships. I mentioned only those who have recently achieved great success, but the list of scholars includes hundreds of young ■ Former basketball great Duci Simonović argues that the most athletes who are yet expect to achieve results. important task of top athletes is for their example to attract as I agree that brain drain is a sad problem Serbia has been many young people as possible to engage in sports. Serbia has confronting for several decades. Fortop athletes, but no money to fund mass sport. If we do not have a base tunately, when it comes to sporting of young athletes, there will be ever talents, it is a rare occurrence. We fewer top athletes. How can you solve even have the reverse cases, with forthis problem? eign athletes, due to our system of in- The main purpose of mass sport, or centives, opting to compete under the recreational sport, is to improve the flag of Serbia, such as, for example, health of the nation. This is also an kayaker Dalma Benedek, who brought economic category – every dinar we our country world bronze in August. invest in sport today means three diSerbian representative sport operates with the biggest budget possible in this nars less required for health tomorrow. economic situation, but even as it is, Of course, mass participation in sport through the rational allocation of monalso inevitably gives rise to future top athletes. On the basis of this premise, ey, we ensure that our young athletes, as well as the alarming data on the rise future champions, have conditions of obesity and physical deformities close to those of their counterparts in among school children, the ministry developed countries, as well as ensurhas placed school sports side by side ing the best athlete are not forgotten at with priorities such as the developthe end of their career and turned into a social category. ment of professional sport. There canI will remind you that athletes and not be one without the other. It is up their coaches receive cash awards for to the State to create conditions that winning medals ranging from €10,000 provide space for sports, because, in for European bronze to €35,000 for addition to programmes for the development of school sport, we are buildThe problem of match-fixing is Olympic or Paralympic gold. Also, after the age of 40 those medal winners reing fitness trails, cycle paths, outdoor not necessarily linked to poor ceive a national sporting pension of an public gyms etc. I’d love for a change countries… This is organised to also come in the consciousness of average Serbian salary for European the people, so that, for example, we no bronze to three average salaries in Sercrime on a global scale and, longer have the statistic that citizens bia for Olympic or Paralympic gold. as such, requires joint action of Serbia spend more than €4 million and intense international a day on cigarettes. On an annual basis, ■ What do you think will be the status cooperation that’s almost the entire health budget. of sport in Serbia in the budget for That money can be invested in health, next year? through sports, and not to the detriment of health, which is unfor- The same as for all other areas. Saving are required at all levels.

That is a fact. It is up to us to allocate the funds at our disposal ratunately the case today. This is precisely where I see the mission of elite athletes, but also parents, teachers and the media – to use tionally, so that athletes do not become victims of bureaucracy and its authority to bring children closer to sport. administration in alliances, but rather can focus on training and results. This will be resolved by the new law on sport, which will be adopted by the end of the year.

■ Unresolved situations in sport, like in the economy, lead to a The budget for sport was not great in the past, accounting for large outflow of the biggest sporting talents who, together with just 0.34 per cent of the state budget, but with good governance their parents, more often choose to leave the country at the age relatively good results can be achieved. The results of our athletes of 13 or 14. Has the government considered setting up a special fund for young talent in order to minimise this problem? are the best proof of that. ■ 12 |

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INTERVIEW

Open Door for

ECONOMIC COOPERATION H.E. ADELA MAYRA RUIZ GARCÍA AMBASSADOR OF THE REPUBLIC OF CUBA TO SERBIA

Cuba has been a tested friend of the Serbian people for a number of decades. The proof is 70 years of uninterrupted diplomatic relations between the two countries

The 32nd edition of the International Fair of Havana, to be held from 2nd to 8th November, with the presence of more than 4,000 exhibitors from 60 countries, will be orientated towards foreign investment and the promotion of priority sectors in Cuba. Here the first update of the portfolio of opportunities Cuba offers will be presented, following the new legal framework regulating that activity.

■ Last year marked 70 years of cooperation between Serbia and Cuba. What are bilateral relations between the two countries like today?

T

here is currently potential to continue increasing economic and scientific-technical cooperation and the commercial exchange between the two countries.

Since Cuba has been undertaking significant economic reforms in recent years, the doors of this country have opened to future economic cooperation and growth.

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- Bilateral relations remain on an upward trajectory. In January 2013 the presidents of Serbia and Cuba, Raul Castro Ruz and Tomislav Nikolić, held a meeting at the First Summit of the European Union and the Community of Latin American and Caribbean States (CELAC) in Santiago de Chile. Serbia’s Minister of Foreign Affairs and the Minister of Health have both officially visited Cuba.

Progress has also been noted in bilateral political dialogue, and in cooperation in multilateral organisations; the continuing support of Cuba for the defence of the territorial integrity of Serbia, as well as Serbia’s vote in favour of the Cuban Resolution against the economic and financial blockade imposed for more than five decades by the United States government. It’s important to emphasise that 71 years of diplomatic relations also applies to our people, given the similarities that bind Cuba and Serbia tightly: both countries have been subjected to external attacks, bombings, blockades, and

ECONOMY

EDUCATION

MEDICINE

The updating of the Cuban economic model presupposes, above all, social ownership of the basic means of production; defence of resources, as a priority, and attention to the needs of the population at the same level.

The political will of the leadership of the Cuban government to place the youth at the centre of the society project is one of the main achievements of the Revolution, which has helped us earn international recognition.

Cuba is among the world's top countries when it comes to the most developed biotechnology and has one of the best health systems in the world, with a very well developed health tourism network.

both maintain a common position in the continuing defence of the integrity of our respective territories. Other common characteristics should be added to these, such as the spirit of resistance, patriotism, solidarity and hospitality that keep us very close as a symbol of unwavering friendship between our peoples.

■ For several years more and more mention has been made of the education system in Cuba. What would you highlight in particular?

- Although we are a “Third World” nation, the political will of the leadership of the Cuban government to place the youth at the centre of society project, dedicating the necessary resources for the acquisition of knowledge, is one of the main achievements of the Revolution, which has helped us earn international recognition.

■ How do you assess the opportunities for promoting economic The global report of the United Nations cooperation and in which sectors?

Education, Scientific and Culture Or- There is potential to continue increasing economic and scientific-technical ganisation (UNESCO) 2013-2014 places cooperation and commercial exchanges, Cuba as a country with the highest “Edespecially in industry, energy, construcucation Development Index” (EDI) in Latin America and the Caribbean, an intion, biotechnology and health, according to our mutual interests. However, dicator that allows an overall evaluation we are aware that this is still insuffiof the education system in terms of qualcient and that more progress has to be ity, early childhood, primary schooling, made in order to expand economic and youth, adult literacy and gender parity. commercial ties and, most importantly, The UNESCO study also says that, worldthere has to be political will to contribwide, Cuba is the country with the highute to this objective. est share of its Gross Domestic Product (GDP) devoted to education, with 13 per cent. The most recent World Bank re■ In recent years Cuba has been undertaking significant economic reforms, port on the education systems in Latin which should strengthen the country’s America and the Caribbean also named economy. Which projects are carrying Cuba as the leader in the region in this these reforms? regard, close to the most efficient in the Currently, bilateral relations world. A previous report from this insti- The updating of the Cuban economic remain on an upward model presupposes, above all, the sotution recognised the successes of the model adopted by Cuba in the fields of cial ownership of the basic means of trajectory. Progress has education, health and social care, comproduction; defence of resources as a been noted in bilateral priority and attention to the needs of parable in certain sectors to those of political dialogue and in the the population at the same level. The developed countries. On that occasion, cooperation in multilateral new Foreign Investment Law, passed the World Bank said that Cuban social in March 2014, and the Mariel Special benefits are among the best in developorganisations Development Zone, built in Cuba with ing world countries, with almost consupport of the Brazilian government and the active participation of tinuous improvement since 1960, even during the economic crisis the Consortium O’Debrecht, essentially aims to attract foreign inthat hit the country. We are very proud that the overall appreciation of the education system in Cuba comes from the priority provided vestment, accomplish sustained industrial development, promote by the state since 1959, to guarantee the rights of all Cubans to an exports and generate import substitution. The new law does not education, access to culture and sport, free of charge. limit any sector for foreign investments, except medical services, the education system and the national defence sector. It tends to promote the transfer of advanced technology to increase produc■ Cuba is among the world’s top countries when it comes to the most developed biotechnology and has one of the best health systion capacities, support development and improvements in the quality of life of the population in an atmosphere of cordial relatems in the world. This fact is connected to the ever more poputions with foreign investors, regulated by legislation that complelar “health tourism”, which is increasingly being used by tourists from Serbia. ments the existing economy and opens new opportunities for private companies and investors.

- Yes, we are aware that there is growing interest in Serbia for the cordeditorial@cma.rs |

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treatments being offered in Cuba to fight cancer, psoriasis, heal diabetic foot, as well as interest in other specialties. Health tourism is the responsibility of the company Turismo y Salud S.A (Tourism and Health), which is specialised in providing health services in three basic directions: preventative care, medical attention and rehabilitation, programmes on quality of life, which consist of a network of medical facilities throughout the country, where patients from different countries, mainly Latin America and Europe, including Serbia, receive medical care at affordable prices. It includes treatments for vitiligo, psoriasis, against addiction, against cancer, rehabilitation programmes, aesthetic surgery, bone marrow transplantation, treatment of pigment retinopathy, diabetic foot, neurological restoration, combining therapeutic strategy pharmacological and surgical methods among others, which are in high demand among patients. Furthermore, when it comes to the public health system in Cuba, I can say that the development of medical science and the pharmaceutical industry come under the jurisdiction of the Ministry of Public Health. This ministry is in charge of directing, executing and controlling the implementation of State and Government policy, for which purpose the state budget is being allocated, since this is a sector of priority in the country, which guarantees the right to free medical care for all Cuban citizens without exception. We are very proud that Cuba, a small and poor country, has so far trained, free of charge, 38,940 doctors in 121 countries.

■ The Cuban Government has reported

that it will send a brigade of doctors and nurses to combat Ebola in Africa.

Could you explain to us how this cooperation will be realised?

Chile, Cuba has sent more than 135,000 medical staff to all corners of the globe. The latest group being sent to help in West Africa’s Ebola crisis are part of a 50,000-strong foreign legion of Cuban doctors and healthcare workers spread across 66 countries in Latin America, Asia and Africa.

■ Cuban music has been popular in Serbia for a long time. Where else do you see room to improve cultural cooperation between the two countries?

- I have to point out that the Cuban music, especially the rhythm of “salsa”, has come to stay in Serbia. We have had the opportunity to see young Serbs from salsa schools, carrying the rhythm in their blood, as we say in Cuba, and dancing like typical Cubans, as we have seen recently at the 5th Marathon of Latin American Music, carried out at the Sava Lake on Ada. That’s one more thing in common between the idiosyncrasies of Cubans and Serbs. Cultural cooperation finds the concretization through the exchange between the institutions of the area, through film projections, exhibitions, concerts, exchange between writers, and intellectuals from cinematography area, libraries and other institutions. The participation of the prominent film director Emir Kusturica, in the Cuban film “7 Days in Havana” in 2012, represents an example of the cooperation between the two parties. We are currently in the process of negotiation for the subsequent signing of a new Agreement between the Ministries of Culture of both counThere is potential to continue tries, which provides for exchange in different areas and without a doubt it increasing economic will contribute to enhancing cultural and scientific-technical ties between Cuba and Serbia.

cooperation and commercial - We consider this topic as being a very important issue for global health pro■ Once upon a time many students came exchange, especially in from Cuba to Serbia. How do today’s tection. The decision announced by industry, energy, construction, young Cubans see Serbia and the Serbs?

Cuba to send a brigade to Africa to join biotechnology and health, the anti-Ebola battle marks continuity - There is natural empathy between the according to mutual interests two peoples and common characterisof the solidarity shown towards many world nations during the 55 years of tics that makes us kindred; cordiality the Revolution. So, the participation in this battle against Ebola and mutual fondness that identifies us wherever we are, whether is not an isolated event, but the continuity of what Cuba has done in Cuba or in Serbia. That’s the way young Cubans see the people of since the triumph of the Revolution. The Cuban response is part of Serbia and Serbian friends, without language barriers, or cultural; our solidarity aid to Africa, Asia, Latin America and the Caribbean. what prevails is the genuine feeling of friendship and solidarity beDuring the past 55 years we have worked in 158 countries, with tween our people which is passed from generation to generation the participation of 325,710 health workers. Currently in this secup to the youngest ones. Serbia is and always will be in the hearts of all Cubans due to its history with many similarities comparing to tor some 4,048 Cubans provide their services in 32 African states, Cuban, and also due to the brotherhood of people to people, which 2,269 of whom are doctors. Since 1960, when Cuba first dispatched is the most precious gift. ■ a team of doctors to help with the aftermath of an earthquake in 16 |

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Scotland GLOBAL DIARY

Ozapft is!

“It is the people who were persuaded to vote ‘No’ who were misled, who were bullied, who were tricked effectively.

The last-minute promises of greater powers and continued higher-than-average funding, which were already unravelling, swayed the vote’s outcome.” — Alex Salmond, First Minister of Scotland

This year’s Oktoberfest is officially underway. Mayor Dieter Reiter uses a wooden hammer to pound a tap into the first Oktoberfest beer barrel on the opening day of Munich’s 181st Oktoberfest “Ozapft is!” he said, employing the traditional phrase which is used to open each Oktoberfest and roughly translates to “It is tapped”, before wishing guests a peaceful celebration.

Despite sunny skies in the days leading up to Munich’s biggest annual event, there was persistent rain on the day, as thousands of eager attendees queued to get into the beer tents. Many accessorised their traditional “dirndl” and “lederhosen” outfits with raincoats and umbrellas.

An estimated six million people from all over the world are expected to attend the beer festival, known locally as the “Weisn”, which runs until 5th October.

End Privileges for Internet Giants

B’day Present for Prince

Understanding the Chinese Luxury Market

“Telefónica” chairman César Alierta and Vodafone CEO Vittorio Colao have asked that the European Union to treat Google, Apple and Facebook the

Prince Harry received more than €12.7 million when he turned 30 on 15th September – his share of the inheritance from his mother Princess Diana.

His brother Prince William received his own share two years ago on his 30th birthday. Harry is set to receive slightly more, because of the interest that has accrued in that time.

The boys were left the money under a will created by the Princess in 1993. When she died Diana left nearly €16.53 million, which was reduced to €10.17 million after death duties were paid. It’s thought the fund then swelled to more than €25.43 million thanks to clever investments by royal advisors.

Behind the glamour and gloss of the $1.5 trillion global fashion industry gathering for the spring 2015 trade shows in Milan last month, there was discernible anxiety that the mighty Chinese consumer, responsible for one third of luxury goods and fashion sales, is

same way they treat the telecoms.

Alierta went further and asked the new European Commission to put an end to the “monopolies” of closed operating systems, an indirect reference to Google’s Android and Apple’s iOS. The head of Vodafone said that Europe is still coping with an obsolete, asymmetrical set of rules that only focuses on telecoms, while allowing internet companies to do as they wish, even though “they respect neither privacy nor security, and know everything about our lives.”

“How can you have an entrepreneurial spirit in Europe if you have to deal with 27 sets of regulations?” asked Vittorio Colao. “In the U.S. you have 300 million consumers and just one set of rules. It’s not fair that Facebook or Whatsapp, who have a billion users, don’t have to follow the same rules we do.”

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not living up to expectation.

Leading luxury conglomerates, including LVMH and Kering, own-

Peruvian Police Seize Record Cocaine Haul

Police officers lay packages containing seized cocaine out for display after their arrival at the police airport in Lima in early September. Peruvian police seized a record 7.6 tonnes of cocaine in a quiet coastal town, arresting seven Peruvians and two Mexicans suspected of trying to smuggle the load to Europe disguised as coal, according to Peru’s Interior Ministry. Peru has been the world’s top producer of cocaine since 2012.

Circumcision Ritual

Harry, who currently earns €49,408, will be in line to pay up to €5.08 million in duties. Another consequence of him turning 30 is that the Princess’ wedding dress is being returned to her sons.

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A Bukusu youth waits outside his uncle’s home for a circumcision ritual in Kenya’s western region of Bungoma. The circumcision ritual is celebrated among some Kenyan tribes as an annual rite of passage into adulthood. The Bukusu group, a sub-tribe of the Luhya tribe, which is one of the largest in Kenya, is one community to continue the tradition. The day before the ceremony the boy’s uncle slaughters a cow and dresses him in a chunk of the meat as a personal gift and as permission for him to proceed with the circumcision. The boys, aged 16 and under, bathe in the river to numb their bodies before the performing of the ritual, which they must endure without flinching. Similar circumcision rituals and rites of passage are celebrated in many parts of Africa.

Catalonia “Catalonia couldn’t unilaterally make a decision that affected the whole country. Each and every Spaniard is the owner of each and every square centimetre of the country.” — José Manuel García Margallo, Spanish Foreign Minister

er of Gucci, as well as brands like Prada are reporting disappointing financial results, and have pointed their collective finger at China, where growth in the luxury goods market has slowed to 2% after rising 30% in 2011.

Analysts warn that after years of chasing Chinese consumers, domestically and as voracious luxury shoppers in foreign capitals, the big brands may be no closer to understanding the market. With analysts warning that shares in luxury brands could fall as prominent investors dump stock, the fashion industry is seeking answers to the riddle of China’s luxury consumer.

clear skies and warmer weather in Buenos Aires caused celebration.

The celebration of the start of spring in Buenos Aires coincides with the National Holiday for Students.

On Spring Day in Buenos Aires, students from primary and secondary schools have the day off and fill the city’s parks and squares enjoying the first rays of sunshine. It is a festive day with many local bands playing the city’s open spaces.

The Biggest Climate March in History

Spring in Buenos Aires While in our region rain continues to fall unabated, spring has arrived in Buenos Aires!

21st September marked the official start of spring in Buenos Aires and the city had a variety of celebrations lined up, as it does every year. The Porteños are overjoyed that the temperatures are rising again, and rightly so – after a very long and cold winter – the return of

More than 300,000 people gathered in New York in the wake of The United Nations Climate Summit to call for action against global warming and other environmental issues. The “People’s Climate March” in New York originally expected to draw around 100,000 people and was billed as the largest of several protests held around the world two days before the start of the UN Climate Summit.

U.N. Secretary General Ban Kimoon walked with former U.S. Vice President Al Gore along the twoand-a-half mile route. Celebrity pro-

The Moon Festival

“The Moon Festival”, also known as “The Lantern Festival” or “The Harvest Moon Festival” in different regions, is traditionally celebrated in China each September.

This is the official harvest festival celebrated by those who ascribe to Chinese, Taiwanese or Vietnamese culture and traditions. The festival is held on the 15th day of the eighth month in the Chinese calendar, during a full moon, dating back to the Shang Dynasty (16th century BCE).

Typical rituals that form part of this festival include eating delicious moon cakes, carrying or releasing brightly lit, colourful lanterns, spending time with family, playing traditional music and participating in other fun games and activities. testers included comedian Chris Rock and actors Leonard DiCaprio and Mark Ruffalo, who said he was marching for his children’s future.

Rallies were also held in London, Paris, Berlin, Tokyo and Bogota.

Jewish New Year

Electricity From Rubbish Dutch architect Erick van Egeraat just unveiled an amazing new power plant in Roskilde that will generate energy from waste. The newly opened Energy Tower will produce both electricity and heat through the process of incineration, and it features a perforated double-layer façade that will glow throughout the night.

Roskilde’s new power plant will incinerate rubbish from nine local municipalities, as well as selected international locations, to generate electricity and heat for the historic city. The building’s unique façade is made up from two different layers – a climatic barrier and an outer skin made from punched aluminium.

The Jewish New Year or Rosh HaShanah occurs every autumn, usually in September. This year it began on the evening of 24th September and concluded on 26th September.

The Jewish New Year is considered to be the beginning of the world. It is when the “Torah” – the five books that comprise the Jewish holy text – is read again from the beginning, starting with the Book of Genesis. One of the central themes of Rosh HaShanah is to “return”. Some see this as a return to a connection with God. The day is celebrated at this time of year, because traditionally the New Year was celebrated with the harvest of the crops.

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INTERVIEW

Against a

STRONG WIND MATTEO PATRONE HEAD OF THE EBRD OFFICE IN SERBIA

The EBRD is pleased with the government’s efforts to improve the business climate and believes that, although the short-term outlook for Serbian growth looks difficult, the direction of travel is right

I

f Serbia stays on the reform path it will be rewarded with higher and sustainable growth, says Matteo Patrone, Head of the EBRD office in Serbia. The EBRD is following the steps being taken by the Serbian government closely and is ready to support Serbia in its reform process, in line with its new strategy adopted in April, which, among other things, focuses on enhancing the role and competitiveness of the private sector, strengthening the resilience of the banking sector and supporting investments in infrastructure.

■ How would you rate the work of the Serbian government in terms of developing a business-friendly environment?

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- A business-friendly environment is crucial and developing one is a complex task that includes a set of measures and must unfold over time. It is critical to win investors’ trust and this is only possible through the creation of a stable and predictable environment over a longer period that reassures them that their investment is safe and secure. Trust takes years to build, but can be lost in seconds, so it needs to be nurtured with utmost care. We have been following the government’s efforts very closely and are pleased to see many positive steps being taken towards transparency, rule of law, legal reform, fighting red tape, improving the efficiency of the state administration and attracting inves-

tors. The recently passed labour, privatisation and bankruptcy laws are very important steps in this direction. We trust that the legislation relative to construction permits and tax administration, among others, will be passed soon. The fiscal measures announced by the PM, while painful, are an investment that will certainly pay off and we support the action of the authorities.

■ Do you think the government is realistic to expect Serbia will enjoy the highest rate of growth in the region in 2016 and 2017, provided financial consolidation is implemented successfully?

- Serbia is the biggest economy in the Western Balkans and has great potential. While the short-term outlook for growth looks difficult, the direction of travel is right. We are encouraged to see the government taking steps towards further financial consolidation, more structural reforms and creating the right regulatory framework to encourage competition.

So, we believe that if the country sticks with the reform path it will be rewarded with higher and sustainable growth.

■ The EBRD is heavily involved in the modernisation of infrastructure. Are you happy with the tempo at which money is utilised and jobs done?

- Infrastructure investments have always been one of our focus areas, as also stated in our country strategy adopted in April. Our priority is to make sure that our clients accelerate the process of implementation. We are also urging them to consider cancelling loans that they are unable to use, or re-deploying the proceeds to address more urgent needs.

Given the scarcity of funds, the selection of good quality projects is very important, as is a strict procurement process.

■ Serbian economists often cite the inefficiency of Serbian com-

panies as the major reason some available loans are not used, or that their usage is poorly managed. Have you experienced that in your dealings with various Serbian companies engaged as contractors in public works financed by the EBRD?

■ Serbia still has a very low level of FDI. What are the reasons for that?

- We have to acknowledge that FDI to the whole region of South Eastern and Central Europe has massively declined since the global financial crisis in 2008/09. For all countries this means that the competition has become much tougher and that’s why it is so important to be at the cutting edge in terms of business environment.

The number of investors able and ready to go and take risks is significantly lower today and it will take time to come back to the levels of investments we had, say, 10 years ago.

■ What major steps must the government

In times when investors are rare, and many countries are competing to attract them, it is important to be at the cutting edge in terms of business environment

take in order to be more efficient; how will the EBRD support public administration reform?

- This is a difficult issue that every single government must confront. To become more efficient, the Serbian government must simplify some administrative procedures and reduce the burden on private businesses and private citizens. It is important for the government to play the role of bridge between the public and private sectors.

We have a tradition of working on a number of policy dialogue and capacity building initiatives (e.g. PPPs, public procurement, bankruptcy proceedings, renewable energy etc.) and with project related activities (for instance, for the reform of public enterprises, which we finance). Together with the authorities, we are considering launching a specific programme to help improve the business climate and attract strategically important investors to Serbia.

- We do not have a direct relationship with contractors.

They deal with the public companies we finance.

Clearly, the amount of cumulative undisbursed commitments dedicated to the realisation of public infrastructure, from all international financial institutions, indicates that there is a problem in managing public contracts.

■ Serbian Railways is going through mod-

ernisation and restructuring, which entails the privatisation of cargo transportation.

What is the EBRD’s role in that process?

- As a financier to the company, we have required that the process of unbundling services and reorganisation of the company be carried out according to international standards. Some progress has been made, though we still we need to see the final results of the process.

■ It seems as though SMEs are receiving much greater attention lately. How does the EBRD intend to support them?

- SMEs form the backbone of the economies of all Western Balkan countries, of most EBRD countries, and that’s also true of Serbia. That’s why SME support is one of our priorities. Our new strategy for Serbia, adopted in April, focuses on enhancing the role and competitiveness of the private sector, especially the funding and support of small and medium-sized enterprises.

We assist SMEs through direct financing or extending financing through our partner banks.

Through our Small Business Support programme, we are also cordeditorial@cma.rs |

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very much engaged in providing assistance to improve corporate governance and management practices.

■ One of your funds (ENEF) is intended to support SMEs by be-

coming their partner, but some SMEs fear opening up to new financial opportunities in building their business. Is this widespread or a minor reaction?

- This is perfectly normal. New financial opportunities often only became accessible through the full engagement of all sides. For private entrepreneurs, full transparency and disclosure to an external partner does not come naturally. This is the same everywhere, including Western Europe. It is a difficult and long process to create a fertile ecosystem for equity and quasi equity financing.

Institutions like the EBRD have a strong mandate to be at the forefront of such processes and the Enterprise Expansion Fund is a very appropriate instrument.

the prerequisites for its development?

- Agriculture is a very important sector of the Serbian economy. The potential is strong, but it needs investments and a proper regulatory framework to define its role and niche in a globalised agribusiness sector. The hindering of land consolidation and the negative repercussions on the implementation of fundamental infrastructure for primary farming is a major issue. The EBRD has worked in the Serbian agribusiness value chain from the outset, through investments and technical assistance to both the authorities and market operators. Among other things, we are currently promoting, with the FAO, the promotion of distinct local high-quality products with a chance to succeed on global markets, through the introduction of certificates of origin.

■ How do you intend to support the financial sector?

■ What is the role of the private sector in increasing the efficiency of the energy sector?

- As in every industry, the private sector has a major role to play in the energy arena, because every country needs a strong energy market that’s as pluralistic as possible. Having said that, we acknowledge that the energy sector also serves public needs and tariffs must find a balance between affordability and a reasonable return on investment. It is a very difficult balancing act, but an issue that cannot be postponed indefinitely. Introducing private sector expertise and investment will be critical for the Serbian energy sector.

I believe that the interest for asset transactions related to the 502 companies slated for privatisation could be substantial

■ Why is energy efficiency and renewable energy sources still not a major deal in Serbia?

- It is a process that takes time, as it involves changing the mindset. Serbia remains a country with high carbon intensity, but this is changing and we are encouraging change. The floods in May were a warning. This is why we focus on providing financial and technical cooperation support for renewable energy and energy efficiency projects. We will continue supporting the government and private investors to this end.

■ It is often said that agriculture is one of Serbia’s winning tickets for growth, but on the other hand a long-term strategy is lacking.

How do you intend to support the agriculture sector and what are 22 |

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- The financial sector needs to be bolstered and this is one of our priorities. We work towards strengthening the resilience of the banking sector by providing long-term funding and we encourage the introduction of new products to address the needs of local companies. One example is our support for the local Deposit Insurance Agency to facilitate a revival in lending activity. Furthermore, Serbia falls under the Joint IFI Action Plan, which provides €30 billion of joint commitments by the European Investment Bank Group, the World Bank Group and the EBRD for the 2013-2014 period. This plan is not only well on track, but clearly ahead of target.

■ The EBRD stated previously that it is

interested in the privatisations of Telekom Serbia, Belgrade Airport and the insurance company Dunav Osiguranje.

Is this still the case?

- We have discussed our interest in the privatisation of these companies with the authorities. While we stand ready to act and hope to see the first projects coming to fruition in 2015, the EBRD’s activities will depend on the decisions of the Serbian government.

We are also very much interested in the process related to the 502 companies slated for privatisation following the introduction of the new law. While there everybody acknowledges that only a fraction of those can be sold as continuing concerns, I believe that the interest in asset transactions could be substantial. We are very appreciative of the work of the Privatisation Agency and are very willing to support their endeavours by providing finance to potential buyers or to targets. ■

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INTERVIEW

■ By Radmila STANKOVIĆ ■ Photo: Branimir MILOVANOVIĆ / Intermedia network

Small Film Scene

MAJOR HANDICAP

DRAGAN BJELOGRLIĆ ACTOR, PRODUCER, DIRECTOR

He is today undoubtedly the most successful filmmaker in Serbia. His two films in the Montevideo series returned the public to cinemas, thrilled viewers from Croatia to China and made stars of the young protagonist of the film.

The sequel Montevideo, vidimo se (See you) is the Serbian candidate for an Oscar for best feature film in a foreign language in 2013

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is journey from a child actor, graduate of acting, an actor with more than 50 film and television roles that earned him immense popularity and the highest professional recognition, to an actor who successfully tried his hand in theatre, via a producer, to a director – all of this testifies that this is a man of enormous energy who is completely devoted to his work. And that work could have been something else.

In his youth he had a tendency towards the natural sciences, especially mathematics, and, as he says himself, he ended up with something that is a completely irrational profession. At the age of 14 he was among the top ten in a national mathematics competition and his parents implanted the idea in him that it was a shame for a man who has a talent for serious things, such as science, to deal with frivo-

PATRIOTISM

AUDIENCE

CULTURE

Because of everything we’ve lived through in the last 20 years, that patriotism has been distorted and has become distasteful.

A particularly fascinating fact is that both films in the Montevideo series attracted huge audiences in Croatia.

With each new law a source of funding for culture disappears and they are now smaller than ever.

■ When you think like that, which you have a lot of reason to do, lous things, like acting. So he enrolled in the faculty of civil engineerwho do you think is this year’s favourite in the category your film ing, completed the first year and realised that it really didn’t interest is competing in? him. When he returned to his former college thirty years later to film a scene for Montevideo, he wondered if all the time devoted to - I evaluate that this year’s Oscar will go to a Turkish film. My two mathematics had been a waste of time, but as he began directing, he films were candidates, both the first Montevideo and this second realised that it was important because it forced him to think in an one. I am aware of everything that’s at stake and I do not dream orderly and logical manner. And he’s certain that in his first directunrealistic dreams. I know it’s a difficult mission, but I’m trying to ensure we do the best we can to use the opportunity we have ing job this mathematical method of thinking helped him a lot. with this nomination.

This 10th October Dragan Bjelogrlić will turn 51. He has been married to Maja for more than 18 years, which is the age of their ■ As a young actor, or later, did you have that famous dream about daughter Mia, while son Aleksaj is 14. Speaking to CorD just after his return from the United States, I asked him what kind of stress is receiving an Oscar and giving your acceptance speech? What did felt when you return to Serbia as a candidate for an Oscar: you consider saying?

“I just told the producer that it - I’ve had various versions of such fanwould probably be a lot easier for us if tasies at different times. I remember the we were not candidates for an Oscar. one from during the 1999 bombing. Then Because what you need to do when you the film Rat uživo (War Live) was curget into this competition is not only a rent and I thought I’d dedicate a speech challenge, but also a huge problem, unto our people who died in the bombing.

And whenever I imagined that, it was an less your starting position is an award acceptance speech with a clear political at festivals in Cannes or Venice. Another message. It would not be like: Thank you aggravating circumstance is the fact that mother, brother, wife ... rather I’ve always our film does not belong to those who thought like an artist from Serbia who are raised at many festivals around the would take advantage of that opportuniworld, but rather it finds its way to the audience in another way, at different ty to say something to the world, for that festivals, which proved to be very good to be a good political speech. because this is a film that we made primarily for the audience. And they ■ Your film, or rather two of your films, understood it well, here in the Balkans are adapted from the book by journalist When you speak in accordance Vladimir Stanković, Montevideo, Bog and in Russia, but also in China. with self, when you do not The special trouble for films that te video. In it you depict young Serbian come from small countries is the fact footballers who later became idols of hate, when people trust you, that this is a race with a major handithen they respect your stance the masses, who secured third place at the 1930 World Cup in Montevideo, cap. You must have a lot of money even if they do not agree with making it the most successful football to make a serious promotion, which what you’re saying team in the history of the former Yugowe do not have, or you have to find a good partner in America. We decided slavia. However, this seeming sporting to find a partner who would be interested, who would find their story emerged from that framework and gained a huge patriotic interest in our film being seen by as many members of the Acadcharge. Was that your intention or did it just happen to you? emy, which awards the Oscar, as possible. We had great help - I’d say it caused the patriotism we had forgotten to break to the from our tennis player Novak Đoković, who organised a screensurface, and that was both my conscious and unconscious intening of our film in Hollywood several months ago, and at the time tion. My first title for this story of Montevideo was Normal people. some relevant people got to see Montevideo. I am aware that Normal life, normal behaviour, normal code of conduct, normal even a film with major festival success is not guaranteed that emotions... That love towards one’s homeland, towards the people, Hollywood will find its interest in that production. This is espeI was trying to find through a normal aspect. Unfortunately, becially true when it comes to foreign films, because here politics cause of everything we’ve lived through in the last 20 years, that is crucial in a large number of cases. patriotism has been distorted and has become distasteful. And cordeditorial@cma.rs |

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people somehow remove themselves from the proper, normal patriotism of genuine, normal love for one’s nation. I had that all in my head as one of the platforms on which I would build the story, but I really did not expect that these emotions would impact so strongly and go so far beyond the boundaries.

What I was particularly surprised and pleased about was the fact that this film was very well received in our former republics, as they also recognised those positive emotions. To me it seemed that all of the characters, dialogues and emotions had found their own way, like water when it flows and finds a channel...or makes one.

■ What did Zagreb Mayor Milan Bandić say to you after the premiere of your film in the Croatian capital this March when you gave him a replica jersey from Montevideo in 1930 with the Cyrillic inscription БАНДИЋ on the back?

interviews I gave for their media I always clearly communicated my position. I did that even in the ‘90s, and afterwards. My stance was neither sprinkling ashes nor making apologies, but I said what I think and what I say here. However, in the media here I spoke about what I blame Slobodan Milošević for, but when I went to Slovenia and Croatia I thought it was tasteless to spit on my own president, regardless of the fact that I spoke badly about him in Serbia. One notable artist in Zagreb told me recently: You know why I love you Bjelogrlić?! It’s because you did not come here and shout, who are we fighting each other? On the contrary, you said what you think, you did not insult anyone and did not allow anyone to insult your country and your people. “ ■ However, you knew – when

appearing on the then very popular HRT 1 TV show Latinica Denisa – how to tell then Croatian Minister of Culture Zlatko Vitez that what he was saying was most detrimental to Croatian culture and Croatian film. And you received support for that in Croatia?

- Milan Bandić was an outstanding host, while the premiere itself was indeed an absolute event. He first appeared at the preview of the film that we had in the Serbian Orthodox high - I said what I think and that school, and then he made a opinion was shared with me ARMAND ASSANTE and DRAGAN BJELOGRLIĆ reception, which was totally and a large number of my unusual. Because to date he Croatian colleagues. When After so many years of various experiences, has mainly organised recepyou speak in accordance I think that this story about the authorities with self, when you do not tions for Croatian athletes and their control when it comes to art has hate, when people trust you, and never on the occasion then they respect your stance of a Croatian film. I gave him been slightly over exaggerated even if they do not agree with the shirt and told him I’d what you’re saying. And that’s good enough for me. That same heard he was a good footballer, a good dribbler, but that he didn’t Denis Latin you mention, prior to that show you mentioned, called like to pass the ball. me to take part in a show that he named How Serbia failed. I asked He immediately replied: “If you passed a lot you wouldn’t have him how dare invite me to participate in a show with such a title. made this film!” After the premiere he took us for a drink and everyI told him: that would be like me inviting you to a show that I’d thing was really very, very pleasant. I was very glad about that, but named How your mother became a prostitute. And where did you what was invaluable to me was that most of the young actors in the get the idea that Serbia failed? He realised that would not work film got to see Zagreb for the first time and that they brought back so he offered to change the title to Has Serbia failed, but I did not such good memories. Otherwise, Montevideo was well watched in go on that show regardless. He understood that and afterwards Croatia, much more so than domestic films. That’s because I had immediately called me to take part in a second show, and I went. to wonder whether Croatian viewers would like to watch how YuToday I am much more comfortable giving interviews to the megoslavia, or more precisely Serbian players, beat Brazil. And, they watched. A particularly fascinating fact is that both films in the dia of the former Yugoslav republics, because the questions are no Montevideo series attracted huge audiences in Croatia. longer as toxic as they were 20 years ago. Now they are almost the same as the questions reports here ask.

■ After all these years you have managed to remain a Yugoslav, and later Serbian, actor, who had fantastic popularity, that the ■ You have endured for a long time, you’re constantly working; audience loved for his roles, and who after the war was again received equally well in Zagreb, Ljubljana, Sarajevo...?

- I have not dealt with that, but I often heard from colleagues, from people from Zagreb, Ljubljana, that they liked that fact that in the 26 |

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you have experience as an actor, producer and director. How would you explain the influence of the government on your work and culture in general? Is the government really so influential regarding what will be recorded and performed, with artists often

Murder), Andergraund (Underground), Bure baruta (Powder Keg)... those are films that made bold polemics with the horror we lived in during those years, with nationalism, with all the side - After so many years of various experiences, I think that this effects that made our lives hard to bear. story about the authorities and their control when it comes to Today I can say freely that those first post-5th October years art has been slightly over exaggerated. In socialism it was norwere much more uncomfortable, when many, like, “threatened mal that the government had a need to control what artists did. dissidents” appeared who, supposedly, That was the time of real dissidents, could not work during the dictatorbut also those parlour dissidents.

During the time of Slobodan That passed over into the time of ship of Slobodan Milošević. We know Milošević. Of course, in no way I am there were professors who got fired Milošević, you could make undermining artists and intellectufrom universities, we know there were an anti-Sloba film, but in talented people who did not work, but als who really could not work at all 2004 you could not make a it was not as massive as many tried during the ‘90s because of their atcontroversial film about Ratko to portray it after 5th October. To be titudes. I never hide my attitude. I was a participant in all demonstraMladić and Radovan Karadžić direct: before, during the time of Slotion from 9th March 1991 to 5th Octobodan Milošević, you could make an anti-Sloba film, but in 2004 you could not make a controversial ber 2000. And I worked. Of course, there were some problemfilm about Ratko Mladić and Radovan Karadžić. atic situations, especially with the movie Rane (The Wounds), 1997-98, with the emerge of JUL [The Yugoslav Left], when in■ Based on the results, it is not difficult to conclude that the 15 creased pressure was felt, but I, like many others, worked. After years since 5th October has been more a period of missed opporall, look at the opus of Serbian Film from the 1990s and you will easily convince yourself. tunities than time utilised when it comes to culture and the arts?

During the time of Slobodan Milošević, i.e. during the ‘90s, the - We are all aware of that, but unfortunately this is a time of transimost polemical films were shots, and perhaps the only polemical tion, and that is such a vile, devised thing to be elegant, transferfilms to date - Lepa sela, lepo gore (Pretty Village, Pretty Flame), ring everything to raw capitalism, culture thrown on the market Rane (The Wounds), Ubistvo s predumišljajem (Premeditated in a country that has no market. And then, unlike the Socialists of saying, as an excuse for not doing something apparently a big and important, that the government didn’t let them do it?

cordeditorial@cma.rs |

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it being the way I would like and for people to feel what I wanted the ‘90s, who had inherited the socialist consciousness that culto say. Everything went well because I received rave reviews for ture is something important that has a right to oppose the governthe first and second Montevideo films. I even think they were ment, but that must be nurtured, appear managers in expensive very generous towards me. suits who explain to you that you must go on the market and that the state has nothing to do with it. With each new law a source ■ Which actors bring you to a stop? of funding for culture disappears and they are now smaller than ever. So, you are free to do whatever you want, just find a rich un- I like to watch old movies and watch how my colleagues played.

Unfortunately, many of them are no longer among the living. I feel cle who will finance that. a special kind of kinship when I watch Maybe I’ve felt that problem less, Slobodan Cica Perović, some roles because all my projects are mostly of Slobodan Aligrudić, some roles of directed towards the market and the Bata Živojinović, Pavle Vujisić, Draguaudience, but that is no measure of the state of culture today. Because my tin Felba, Milan Srdoč... Those were colleagues who want to work, artists great movies, that black wave, primarwho are not directed towards the pubily, and those great films made great actors. in Belgrade modern acting has lic in that way, have serious problems. also emerged, which was nurtured Unfortunately, we did not realise the in the ‘60s and ‘70s, especially at the full horror of that wild Balkan capiBelgrade Drama Theatre and Ateltalism in which we live and we have not organised ourselves. We still have ier 212, that acting without acting, this naive idea that some minister of whose founders were Bora Todorović, culture will be able to resolve someRade Marković, Đuza Stojiljković et al. That is our treasure from which thing. He will not resolve that. That we, later generations, drew as much can only be done by artists who a as we could. This is something that is firmly organised. It is because of our still cherished here today. lack of organisation year after year that we have lost all rights and placed them in the hands of those who have ■ This year 20th October marks the We are still waiting for the state 70th anniversary of the liberation of the money and power to decide.

We are still waiting for the state Belgrade and you are set to design to become rich and socially to become rich and socially responsiand realise that project. responsible again, so that it ble again, so that it will remember us.

- Of course it felt good when I received will remember us. They will not that offer from the City Council. My They will not remember us, because remember us, because socialism first idea didn’t pass, and it probably socialism is long gone and will not return. We must do something for really wasn’t feasible, but I wanted on is long gone and will not return ourselves in order to accommodate the square in front of City Hall to have the new environment that is extremely cruel. It is the same case in a military parade that would be part of a great performance. The all other professions. organisers suggested that this be at the Belgrade Arena and I am now in the stage of preparation. I’d like such an important event as that to also send a clear message. I would like to succeed in that.

■ One Hollywood notion says that only a thinking actor one day says they want to direct. How did you decide on that?

- I arrived at that decision somehow naturally. Americans have a knack of describing a well-defined phenomenon in a sentence, so the sentence that you cite is probably a prime example. The hardest thing for me was to convince myself to direct. When I decided to do it, everything afterwards came easy and at times I felt better directing than when I worked in parallel as an actor.

■ You got good reviews for that job. Were you anxious?

- Not. Up until the premiere I did not even think about it being followed by the judgements of experts regarding the work I’d done.

And then came a control screening at the Sava Centre, when I first considered that I was about to receive reviews from critics, the expert public. So, after two years of work that was the first time I’d thought about it. And as long as I worked, I just thought about 28 |

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■ Does that offer come with the understanding that it will be the best that can be done by one confirmed leftist?

- Yes, but I would not like that to be critical, or to mark this event. I cannot circumvent my own beliefs, but I’ll try not to let them dominate like something that I want to stress at all costs. I want to create a story that will provoke emotion, that will be warm, and that will be my most difficult task. I want that which I do to say more about humanity than about left-wing parties.

■ At the time when the City of Belgrade handed out its annual award for the greatest achievements in culture, arts, sports, science etc., called the October Award, did you get it?

- I did not. I have received many professional and festival awards, I was the “Most-European, but I have never received a state award. ■

cordeditorial@cma.rs |

120 October 2014 | 29

EU ECONOMY

More Investments to

Stimulate Growth More investments are the only way for the European Union to speed up its too slow recovery, finance ministers agreed at the Ecofin meeting held in Italy's Milan during September

E

U finance ministers endorsed plans to leverage hundreds of billions of euros to finance new infrastructure projects and spur demand as part of efforts to avoid a period of Japanese-style economic stagnation across the region.

Italian Economy and Finance Minister Pier Carlo Padoan said officials at the meeting had agreed to direct the European Commission and the European Investment Bank to present initial plans for such a programme within weeks.

The focus should be on “practical measures” for “profitable investment projects, which are justifiable,” minister Padoan said at a news conference in Milan in mid-September.

Italy is hosting EU ministerial gath30 |

debt crisis on many economies.

But there seems to be new momentum to use investment to combat sluggish growth and deflationary pressures, and to quell a backlash against years of austerity policies widely seen as harmful to growth and jobs. Jean-Claude Juncker, the incoming president of the European Commission, the union’s executive body, said he has made it a priority to marshal up to 300 billion euros in additional public and private investment over three years.

“It is not a black or white question when you have to choose between investments or consolidation,” said, Jyrki Katainen, European Commissioner for Economic and Monetary Affairs.

He agreed with Padoan that EU member states particularly need investment in the private sector, where “there is much more money than in the public sector.”

But investment must be encouraged by structural reforms, especially in terms erings as part of its six-month presiof research, innovation, infrastructure dency of the Union and this important and the digital agenda, he added. meeting was attended by finance and Katainen also stressed that although economy ministry officials from all 28 many countries in Europe are carryEU Member States. ing out or planning ambitious reforms, including Italy, impleInvestment must be encouraged menting such reforms is also funby structural reforms, especially damental.

A regional investment proon research, innovation, gramme also has some backinfrastructure and the digital ing from the European Central agenda Bank, which has warned that efforts to prime the economy using monetary policy must be accompaEuropean efforts to implement nied by significant demand-side measweighty investment plans are not new. ures, like new investment, to succeed.

The EU authorities have frequently dis“Investment in the eurozone, for incussed marshalling public and private stance, is now 20 per cent lower than in sources of financing to overcome the 2007,” said Vítor Constâncio, vice president devastating impact of the sovereign

120 October 2014 | www.cordmagazine.com

promote reforms, so that member states can become more competitive.

“We have to identify investments that also foster productivity and competitiveness,” de Guindos told reporters.

“It’s not a merely Keynesian investment programme,” he said, referring to British economist John Maynard Keynes, who is frequently cited to justify public spending in an effort to combat economic downturns. ■

THE ‘LOST DECADE’ German Finance Minister Wolfgang Schäuble and his French counterpart, Michel Sapin, endorsed plans to step up investment to give eurozone economies a better chance of growth in the years to come of the European Central Bank, speaking at the press conference. “In the stressed countries, the percentage, of course, is even much higher.”

He called for “a reversal in the behaviour of investment,” and said he broadly supported Mr Juncker’s investment plan.

Earlier last month, in a letter to Mr Padoan, German Finance Minister Wolfgang Schäuble and his French counterpart, Michel Sapin, endorsed plans to step up investment to give eurozone economies a better chance of growth in the years to come. The letter, dated 9th September, was a sign that the eurozone’s two largest economies might be prepared to work together to expedite the initiative.

“They might do it this time, rather than talk about it,” said Irish Foreign

Minister Michael Noonan, speaking to reporters. “I’ve already told my officials that we need to ensure we have a list of investable projects in Ireland so that, if this fund does come in place, we’ll be in a position to draw down” the money, he said. “It would be mostly infrastructure projects, big and small, things to do with energy, things to do with roads, social infrastructure like schools and health centres and so on,” said Noonan, adding that the projects were “pretty well investable right away.”

Spanish Economy Minister Luis de Guindos, however, injected a note of caution.

Minister de Guindos said that projects that receive financing must help break down remaining barriers among the European Union’s national economies and

“Projects that receive financing must help break down remaining barriers among the European Union’s national economies and promote reforms, so that member states can become more competitive.”

- Spanish Economy Minister Luis de Guindos

“The ‘lost decade’ is not a scenario for the EU, it’s the baseline forecast. Six years have already passed since the start of the financial crisis and the European GDP is still well below its pre-crisis level and around 10% below the level consistent with growth trends prior to the crisis. As a continent, Europe is doing worse than Japan in the aftermath of the financial meltdown of the ‘80s and worse than during the Great Depression of the ‘30s. The timid recovery, which gave us so much hope, has recently stalled. Unemployment and the negative output gap are at record highs and we are on the verge of deflation,” said Polish Financial Minister Mateusz Szczurek earlier last month, during his keynote speech at the Bruegel Institute’s 2014 Annual Meeting.

“I believe that to overcome these constraints we need a decisive public investment initiative at the European level. I propose that we take advantage of the favourable financial market conditions right now in order to undertake strategic public investment projects across Europe and in line with the rules underpinning the Stability and Growth Pact. It will aid our growth in the long term, while at the same time helping us escape the current economic weakness and avert the danger of a generation-long stagnation,” said minister Szczurek.

cordeditorial@cma.rs |

120 October 2014 | 31

G20: FINANCE MINISTERS AND CENTRAL BANK GOVERNORS MEETING

How to Avoid

'Great Stagnation'

Delegates of the G20 Finance Ministers and Central Bank Governors Meeting pose together during an official photograph in the northern Australian city of Cairns

I

Scotland's rejection of independence and a lack of any fireworks at a Fed meeting in late September have calmed investors enough to shift the focus back to what some call the "Great Stagnation", and how to avoid it

‘GREAT STAGNATION’ major source of political and economic The Group of 20 leading nations, In April-June, the euro zone economy’s uncertainty,” Jorg Kramer, chief econowho meet at Cairns, Australia, from recovery stalled and Italy slipped into remist at Commerzbank, said of Scotland’s 20th to 21st September, said they cession for the third time since 2008, undecision to vote against independence in were tantalisingly close to adding derlining Europe’s struggle to recover last month’s referendum. an extra $2 trillion to the global economy from the financial crisis, in what is often Sterling touched a two-week high and creating millions of new jobs. referred to as the Great Recession. against the dollar and a two-year peak But Europe’s extended stagnation reWhile U.S. growth has since accelagainst the euro on the result. Global mains a major stumbling block and some erated, many European economies are stocks were lifted by the news from big emerging economies are flagging too. now at risk from what investment banks Scotland, as well as by the U.S. Federal Brazil is expected to revise down its such as Goldman Sachs have called the Reserve’s assurances last week that ingrowth rate just three weeks before the ‘Great Stagnation’. terest rates will remain near zero for a country’s presidential elections, while G20 host Australia put stutRussia is mired in economtering global growth at the cenic sanctions over Ukraine, and Brazil is expected to revise down its tre of the meeting of finance minChina’s weak data is partly regrowth rate just three weeks before a isters and central bank governors sponsible for the 15 per cent fall in the tropical resort of Cairns. in the price of Brent crude since presidential election, Russia is mired “Back in 2011, we identified early July. in economic sanctions over Ukraine, five countries in stagnation,” Investors will be watching and China’s weak data is partly said economist Jose Ursua, to see how long OPEC is willing responsible for the 15 per cent fall in naming Canada, France, Italy, to accept oil prices below the the price of Brent crude since early July New Zealand and Portugal. $100-a-barrel mark.

“Fast-forward to today and A common G20 concern is most of the economies that were stagconsiderable time. the risk of Europe’s malaise pulling othnating still are.”

Fed Chair Janet Yellen suggested that ers down. U.S. Treasury Secretary Jack Given the weakness across the euro despite an end to the U.S. bond-buying Lew cited “philosophical” differenczone, the German Purchasing Managers stimulus this month, the era of easy mones with some of his counterparts in Index (PMI) data and the Munichey is not yet over. But she also indicated Europe, especially on the need for nearbased Ifo’s business climate index for the Fed could raise borrowing costs fastterm stimulus.

September gave a sense of whether er than expected when it starts moving.

However, “markets are spared one

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confidence is stabilising in Europe’s biggest economy.

Business morale dropped for a fourth straight month in August as concerns about the Ukraine crisis and the impact of EU and U.S. sanctions against Russia depressed the mood in corporate boardrooms across Germany.

The euro zone’s economic sentiment indicator for September will give a fuller picture of just how much governments and the European Central Bank need to do to revive the economy and stave off deflation.

The low take-up at first round of cheap four-year loans offered by the ECB has deepened doubts about its stimulus efforts and could push the central bank to take more radical measures, although resistance remains in Germany to a U.S.-style money-printing programme.

BRAZILIAN RECESSION Output from China’s vast factories cooled to a three-month low in August. The manufacturing PMI for September will test the view among some investors that the recent slowdown will pass.

In April-June, the euro zone economy’s recovery stalled and Italy slipped into recession for the third time since 2008, underlining Europe’s struggle to recover from the financial crisis, in what is often referred to as the Great Recession The Turkish central bank, which meets on 18 th September, has come under political pressure to cut its overnight rate but that could stoke already high inflation.

Hungary last month ended a two-year period of cutting interest rates every month, leaving them at a record low. The central bank, which meets on 17th September, says it will remain on hold until the end of next year, unless inflation jumps.

Brazil’s central bank is expected to publish its inflation report and is expected to revise down its forecast for growth in the world’s seventh-largest economy to close to 0.5 per cent.

Brazil fell into a recession in the first half of the year as investment dropped sharply and the hosting of the World Cup suffocated economic activity, a major blow to President Dilma Rousseff’s already fading hopes for re-election.

Some investors are hoping the 5th October election will end the interventionist policies of the ruling Workers’ Party that they blame for undermining growth. ■

As opera in music represents harmony between music and performance, the Opera Restaurant, in a classy yet casual enviornment, offers an authentic taste of Belgrade through the bond of good food and drink, tradition and modern times, love and the spirit of the city. A place where you will feel at home regardless of where you come from.

Embraced by Obilićev Venac, just next to the gentrified Knez Mihailova Street, Opera Restaurant is a perfect venue for new romances, reconciliations, friendships, business meetings and pleasant family lunches.

Source: Reuters.

Obilićev venac 30  Tel: +381 11 303 62 00 office@operarestoran.com cordeditorial@cma.rs |

120 October 2014 | 33

SCOTTISH REFERENDUM

Battle Lines Drawn for Independence

After Scottish Vote

In a historic referendum Scotland voted 55 to 45 per cent to stay in the four-nation United Kingdom. The Scots lost their stab at independence by a small 10-per cent margin an independent and sovereign Federal Republic?” According to the organizers, around 2.3 million people took part in the poll – 89 per cent of whom voted for a split from Italy. However, experts Hundreds of thousands of people took to the streets of warned that the result is not representBarcelona, Catalonia’s capital ative, because voters knew there would not be any real consequences. his ‘yes’ vote, many have said, Lodovico Pizzati, spokesperson for would become a major precethe Veneto Independence Movement, dent for others to follow - but begs to differ. While he says that Italy can this apparent loss by an alwould never allow a referendum for the ready prosperous Scotland serve as a desimple reason that 70 per cent of people motivator for others? After all, accordwould vote to secede “for sure”. ing to the Venetians, or the Catalans, the Aside from Spain and Italy, Belgium is far more centralised nature of their own also facing a regional separatist movement. main governments - just one factor to Dutch-speaking Flanders in the north consider here - puts them in a markedof Belgium has aspirations to break away ly different situation to that of Scotland. from the considerably poorer FrenchCatalonia’s secession movement has speaking Wallonia in the south. been growing in Spain for decades. For The New Flemish Alliance, a parthe third year in a row, hundreds of thouty that wants to split Belgium along sands of people took to the streets Spain’s foreign minister linguistic lines, stormed to powof Barcelona, Catalonia’s capital, on er in Flanders’ municipal elections in 11th September demanding the right raised concerns about the October last year and has pledged to to vote on independence. consequences of Scottish achieve self-government, through Catalans are set to hold a referindependence, saying that independence, if necessary. The endum on 9th November, which the Scottish secession would New Flemish Alliance in fact became Spanish government strongly op“start a process of Balkanization Belgium’s biggest party in the 2010 poses, branding it unconstitutionfederal elections. al. Catalonia represents a fifth of that nobody in Europe wants” Although not all Flemish citiSpain’s economy and has its own zens want outright independence, many ies, declared that it wants to break away parliament, police force and control over seek greater autonomy from the current from the country. Venice and the sureducation and health.

Belgian government, in order to protect rounding Veneto area used to be an inOn 23rd September Spain’s foreign minFlemish culture and the Dutch language. dependent republic until the region beister, José Manuel García Margallo, said his There are also other, more marginal came a part of Italy in 1866. government would do everything it could separatist movements in Europe, includIn March this year, 9 out of 10 people to block any sort of referendum from taking the small Faroe Islands in Denmark living in the Veneto region voted for ining place in Catalonia. “Each and every and Occitania, a region in southern dependence in an unofficial online referSpaniard is the owner of each and every France, as well as other small parts of endum. The question for residents was: square centimetre of the country,” he said.

Italy, Spain and Monaco. ■ Source: Reuters “Do you want the Veneto to become He also raised concerns about the

T

34 |

consequences of Scottish independence, saying that Scottish secession would “start a process of Balkanization that nobody in Europe wants.”

What the Catalans do regarding independence will likely have an impact on Spain’s Basques, who already have some autonomy. The Basque region on the border between Spain and France has long sought independence.

However, the Basque region’s independence movement has been characterised by violence in the past. ETA, the primary Basque separatist and independence movement, became notorious for its terrorist activities. But in 2011, ETA declared a ceasefire.

Less publicised rumblings for independence have also been heard in equally scenic locals. Venice, one of Italy’s most romantic and visually stunning cit-

120 October 2014 | www.cordmagazine.com

OCT 2014 BUSINESS LEADER’S MEETING POINT

Energy Sector

Investments Imperative

Quality Education

for Leaders of Tomorrow

Knowledge and

Skills for the Future

PAGE 41

PAGE 45

PAGE 48

DRAGAN JOVANOVIĆ

ANGELO COSKINAS

MARKO CARIĆ

DIRECTOR OF THE KOSTOLAC COMPANY THERMAL POWER PLANTS AND MINES

UPPER SCHOOL PRINCIPAL, INTERNATIONAL SCHOOL OF BELGRADE

cordeditorial@cma.rs |

DEAN OF THE FACULTY OF LAW FOR BUSINESS AND JUDICIARY OF THE UNIVERSITY BUSINESS ACADEMY IN NOVI SAD 120 October 2014 | 35

Business Dialogue WORLD ECONOMIC FORUM 2014, TIANJIN, CHINA

Meeting of the

New Champions China has vigorously pushed reform and economic restructuring despite pressures on its economy, Premier Li Keqiang said at a forum in Tianjin (10th-12th September), where he also pledged to continue efforts to rebuild the economy

n the presence of high-ranking officials from various countries, such as Chairman of the World Economic Forum, Klaus Schwab, President Ibrahim Boubacar Keïta of Mali, Prime Minister Aleksandar Vučić of Serbia, Prime Minister Edi Rama of Albania and Prime Minister Helle Thorning-Schmidt of Denmark, as well as over 2,100 representatives of all circles from more than 90 countries and regions, Chinese Premier Li Keqiang delivered a speech at the opening ceremony of the World Economic Forum in Tianjin.

“Instead of resorting to strong stimulus or easing credit, the government is proceeding with reforms, having taken new steps toward reform that have resulted in a rising number of jobs,” Li said

consecutive days.

Speaking to entrepreneurs in Tianjin he stressed that the country will continue its prudent monetary policy and targeted economic policies regardless of any data fluctuations.

The performance of the economy, as measured by employment, still saw signs of stabilisation.

Between January and August, the unemployment rate held steady at around five per cent across 31 major cities, during which time more than 9.7 million urban jobs were created, a jump of more than 100,000 over the previous year, Li said Wednesday.

“We believe the actual economic growth rate remains within the proper parameters, even if it turns out to be slightly higher or lower than the 7.5 per cent target.”

Fluctuations seen in some economic indicators for July and August following a flurry of targeted measures have stirred concerns over the durability of the economic recovery, with some market watchers calling for universal policy changes to revitalize the economy.

The premier, however, dismissed such possibilities in remarks on two

“Over the four months ahead, continued efforts are expected to stabilise growth while pushing forward with broad-based reforms,” said the premier, who has also vowed to step up scientific and technological innovation to help boost sophistication and creativity within the economy.

“As the economic aggregate con-

LI KEQIANG, Chinese Premier

I

Instead of resorting to strong stimulus or easing credit, the government is proceeding with reforms, having taken new steps toward reform that have resulted in a rising number of jobs

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120 October 2014 | www.cordmagazine.com

tinues to expand,” Li said. “Growth will mean more jobs and there will be a greater tolerance of fluctuations”.

Klaus Schwab, executive chairman of the WEF, also gave a speech at the opening ceremony, saying the record number of attendees drawn by this year’s Summer Davos showed rising confidence in the Chinese market among business executives across the world.

The premier’s remarks on fostering quality growth were decidedly thoughtprovoking, James Z. Li, a forum participant, told reporters immediately after the conclusion of the opening ceremony.

On top of that, the premier’s focus on technological innovation is of particular importance for Chinese companies seeking opportunities both at home and abroad, said Li, chairman and CEO of E. J. McKay & Co, Inc, an independent investment banking firm in Shanghai.

Commenting that the premier’s speech is inspiring, Rodrigo Pérez-Alonso, director of Planning and Evaluation at Telecomunicaciones de Mexico, said that Mexican companies will explore investment opportunities in the Chinese market in fields such as energy, lured by the long-term prospects for China’s economy.

Speaking at a session during the Summer Davos, Li Daokui, director of the Schwarzman Scholars Program at Tsinghua University, also said the property market and the export sector, the two growth engines of the Chinese economy, are set to gradually fade away with new

China-Serbia:

Strategic Partnership Chinese Premier Li Keqiang and Serbian Prime Minister Aleksandar Vučić met on the sidelines of the annual meeting of the Summer Davos forum.

Li spoke highly of the China-Serbia strategic partnership, which was the first to be established between China and Central and Eastern European countries.

China is ready to consolidate political mutual trust with Serbia, expand cooperation and increase cultural and personnel exchanges, he said.

Li also vowed to work with Serbia to ensure successful completion of the Belgrade-Budapest railway the two countries are jointly constructing along with Hungary.

The three hope it will help revitalize the region’s economy.

The Chinese premier said that cooperation

ALEKSANDAR VUČIĆ, Serbian Prime Minister, meets with LI KEQIANG, Chinese Premier

between China and Central and Eastern Europe serves the common interests of both sides.

China is willing to work with Serbia to hold a successful meeting of leaders of China and Central and Eastern European countries this year and promote mutually beneficial cooperation, according to Li. Vučić said Serbia is China’s sincere friend.

It will work with China on the railway and

drivers that include private consumption and a shift to a greener economy taking over as the major powerhouses in the future.

Such a transition needs to be coupled with fundamental institutional reforms, said Li, also a former adviser to the People’s Bank of China, the country’s central bank.

Still some economists pointed out near-term risks, focusing particularly on the need for proper management of the real estate sector to ensure the stability of the overall economy.

“We believe the actual economic growth rate remains within the proper parameters, even if it turns out to be slightly higher or lower than the 7.5 per cent target.” - Premier Li Keqiang

While the monetary policy has stayed largely unchanged, eased controls on the real estate sector should be considered to prevent a systemic collapse, Xu Hongcai, director of the Department of Information under the China Center for International Economic Exchanges (CCIEE), told the Global Times.

In addition, local governments suffering amid a faltering economic recovery who have seen their misery compounded by a widespread correction in the property market need to be given enhanced fundraising capabilities, Xu said, cautioning against any shock therapy in pushing reforms. ■

leaders’ meeting this year so that cooperation between China and European countries can yield more fruit.

The 2014 New Leaders Meeting of the World Economic Forum, also known as the Summer Davos forum, will open in Tianjin on Wednesday afternoon. Li will address the opening ceremony.

Photo: Xinhua/Wang Ye

INDUSTRIAL BUILDING CONSTRUCTION IS SEEKING CANDIDATES FOR A VACANCY:

Business Development Manager ROLES AND RESPONSIBILITIES: Calling on clients and consultants to represent the company and be able to bid on possible projects; Follow the market and keep up-to-date regarding all potential projects with clients, consultants and authorities CRITERIA: Strong communication skills; 10 years of experience in business development; people with a strong commercial acumen are sought; languages: Serbian, English CONTACT: invecoibc@gruppoinveco.it More information about our group: www.gruppoinveco.it

cordeditorial@cma.rs |

120 October 2014 | 37

LOCAL NEWS

Hope

Business Dialogue 01

“The talks with the IMF are ongoing on regarding cuts in the number of employees in the public sector by 5% in 2015. We hope we will address this request mostly with people fulfilling the legal requirements for retirement, but there is fear that 25,000 people will have to be laid off.” - Kori Udovički, Deputy Prime Minister

02

MEDIDENT

World of Health at the Belgrade Fair

Green Energy at the Belgrade Fair

The Energy Fair and Ecology Fair, “Ecofair”, will be held simultaneously at the Belgrade Fair this year, from 13th to 16th October

This year’s international medical and dentistry fair, “Medident”, will take place in Hall 3 of the Belgrade Fair from 9th to 11th October

The most important national and international companies in this domain will present their latest medical and dentistry devices and equipment at the Belgrade Fair for the 39th consecutive time. This year’s focus will be on cosmetic dentistry, showcasing the latest materials and innovations in the field.

Apart from international companies presenting their products, domestic innovative projects will also be presented at this year’s fair, such as the analyser for classification of types of cancer and medical magnets, which have been designed at the Mihajlo Pupin Institute in Belgrade.

As a part of the fair’s educational segment, medical biochemistry and cosmetic dentistry lectures will be held, as will workshops on implants and B2B meetings and presentations of experts in medical biomechanics.

The fair’s visitors will be able to take advantage of free medical checkups and massages, as well as browsing through various publications and attending lectures.

03

ECOFAIR

Exhibitors at the Energy Fair will showcase their technical and technological solutions for renewable and non-renewable energy resources and energy efficiency.

The Ecofair will take place at the same time and will bring together all environmental stakeholders, with special emphasis placed on the socalled green economy, namely the recycling industry, renewable energy resources and waste management.

Since Serbia is expected to increase the share of the renewable

energy resources in its energy consumption by 2020, the utilisation and development of clean energy sources is one of the energy sector’s development priorities.

In the last five years both of these events have been deemed the most important and most popular fairs in Southeast Europe and are viewed as reference points for other fairs, due to their trendsetting character and the way they deal with issues relating to energy and environmental protection sectors.

GENERALI OSIGURANJE SRBIJA

New Business Name for Delta Generali Osiguranje As of 22nd September, Delta Generali Osiguranje a.d.o. Beograd (Delta Generali Insurance a.d.o.

Belgrade) will be operating under a new business name: Generali Osiguranje Srbija a.d.o.

The business operations of the Generali Company in Serbia are going through a rebranding process in accordance with the new corporate identity of Generali Group. The change of company name and corporate identity also applies to Generali’s reinsurance company and voluntary pension fund management

04

company in Serbia, which will now be called Generali Reosiguranje Srbija a.d.o. (Generali Reinsurance Serbia a.d.o.), and Generali Društvo za upravljanje dobrovoljnim penzijskim fondom (Generali Voluntary Pension Fund Management Company).

President and CEO of Generali Osiguranja

KOMERCIJALNA BANKA

Record Savings Despite the Crisis Total foreign currency deposits at Komercijalna Banka exceeded the record figure of € 1.5 billion, while since the beginning of 2014 the growth of savings at the bank is higher than at all other banks combined 38 |

120 October 2014 | www.cordmagazine.com

Srbija, Andrea Simoncelli, said: “The recent investment made by Generali in Serbia only validates the fundamental importance that the Serbian market has as an operational segment of the Generali Group in Central and Eastern Europe. With this change we are starting a new chapter in our operations in Serbia.”

With total premium revenue amounting to RSD12.5 billion, over 2,000 employees and a 20% market share in 2013, Generali Osiguranje Srbija a.d.o. is the second biggest insurance company in Serbia. The company ranks first in the life insurance segment, with a 26.2% market share in 2013, and second in the non-life insurance segment (personal and property insurance).

In just one year, Komercijalna Banka’s share of total savings in Serbia increased from 17.05% to 18.65%, thus confirming the bank’s leading position on the savings market.

“What means a lot to us is the fact that almost every fifth euro saved by our citizens is entrusted ot Komercijalna Banka. The explanation for this is the confidence of customers which, in addition to the interest rate, we give equal importance as the security of deposits, con-

stant availability of funds deposited and a variety of savings options,” said Ivica Smolić, Chairman of the Komercijalna Banka Executive Board.

The bank had deposits of a billion euros on 13th January 2010. At year’s end 2013 those savings amounted to €1.467 billion, while by the end of July 2014 they had exceeded the figure of €1.5 billion.

Today Komercijalna Banka takes care of the saving of more than 750,000 clients.

Solution

PLACEMENTS & POSTINGS

MERCEDES-BENZ

Multi-talented: New Mercedes-Benz GLA

appointments@aim.rs

H.E. ILIR BOÇKA

The latest Mercedes-Benz model in the fast-growing compact SUV segment is highly manoeuvrable around town, lively on country lanes and positively dynamic and efficient on the motorway

NEW AMBASSADOR OF ALBANIA TO SERBIA

GLA is dynamic, sporty and progressive, whilst at the same time providing everyday practicality and absolute safety.

High-quality applications, developed with loving attention to detail, coupled with its flexible interior, clearly position the GLA as a compact premium SUV. The GLA is available with the optional new generation 4MATIC all-wheel drive system, featuring fully variable torque distribution.

The interior provides a feeling of particularly high quality that is achieved by the contours and the choice and combinations of high-grade materials. The GLA can be driven at a fuel consumption of only 4.3 litres per 100 km, setting new standards in its segment.

The new GLA rounds off Mercedes-Benz’s extensive SUV portfolio.

With five model series (GLA, GLK, ML, GL and G), the company offers the widest range of any European premium manufacturer and meets all of its customers’ individual mobility needs.

06

SOCIÉTÉ GÉNÉRALE

Société Générale Celebrates 150 Years of Operations French bank Société Générale this year marks a major milestone 150 years of doing business on the international financial market.

During the century and a half of its existence, the bank has gained a reputation for professionalism, quality service and team spirit, based on the standards of the Société Générale Group.

Founded on the universal banking model, Société Générale Group combines financial stability with the strategy of sustainable development, while it aims to be a positive exapmple of a bank in terms of its attitude towards clients.

On the domestic market, Société Générale Yugoslav Bank was established in 1991 as the first bank in the country with majority

foreign capital. Since then Société Générale Serbia has recorded continuous growth and today has a network of 106 branches in towns and cities across Serbia.

Société Générale Bank was established on 4th May 1864 in France by order of a decree signed

by Napoleon III. Its founding task was to improve the economy, promote economic growth and invest in industry while developing communication and social spirit. Today Société Générale Group is present in 76 countries and has more than 32 million clients and 148,000 employees worldwide.

Prior to arriving in Belgrade, Ilir Boçka served as Director General for Bilateral Relation at the Albanian Foreign Ministry and Albania’s Head of Mission in New Delhi (January 2008- September 2010), Ambassador of the Albanian Mission to NATO and Representative of the Republic of Albania to the Euro-Atlantic Partnership Council (EAPC) from November 2000 until July 2007, and from May 1998 to August 2000 he served as Deputy Minister of Defence.

Boçka joined the Albanian MFA in 1981, serving as Head of the MFA’s Press and Information Directorate. From 1986 to 1990 he served as Ambassador to the former East Germany, after which he was appointed Deputy Foreign Minister. Following Albania’s first free elections, he was appointed Minister of Foreign Affairs in the Provisional Government (December 1991 – April 1992).

A Law graduate from University of Tirana (1975), Boçka worked as journalist with the Albanian News Agency (ATA) prior to joining the Albanian MFA. A married father of two sons, he is fluent in German, French, English and Italian.

ALEKSANDER CHEĆKO

NEW POLISH AMBASSADOR TO SERBIA Aleksander Chećko graduated from the University of Warsaw’s Faculty of Law and Administration in 1982 and found his first job as a reporter at newspaper Życie Warszawy and subsequently as a TV and radio journalist and editor at several media outlets. He was also a proprietor of a media company. Mr. Chećko is the author of the book Armenia Na Własne Oczy (Armenia through My Own Eyes), which he wrote after living and working in that country. As a spokesman for several Polish ministries, in 2004 he started working at the Republic of Poland’s Foreign Ministry. In 2006 he was appointed head of the Consular Section of the Polish Embassy in Belgrade and in 2011 he took over the responsibilities of the director of the Foreign Ministry’s Operations Centre, as well as serving as emergency coordinator at the Ministry. In August 2014 he was formally appointed Polish Ambassador in Belgrade.

07

PKB

City of Belgrade to be PKB Sole Owner The City Council agreed on the proposed conclusion regarding the intention of the City of Belgrade, as PKB’s controlling shareholder, to purchase the shares at the request of shareholders wth voting rights, and to move to compulsarily acquire all shares from the remaining shareholders.

The City of Belgrade owns around 99.5 per cent of the shares, PKB owns 0.224 per cent, and the remaining shareholders own a total of 0.227 per cent of shares.

Central securities depository and clearing house holds records of 623 PKB shareholders who own around 6.3 million shares, and the City of Belgrade intends to acquire a total of 14,497 shares. cordeditorial@cma.rs |

120 October 2014 | 39

APPOINTMENTS

05

“There are surplus employees in the entire public sector and natural outflow cannot be expected to produce a solution. A plan of dismissals is necessary and it should be drafted by Minister of Public Administration and Local Self-Government, Kori Udovički, with the help of the World Bank.“ — Pavle Petrović, President of the Fiscal Council

INTERVIEW

Business Dialogue

Energy Sector

Investments Imperative DRAGAN JOVANOVIĆ, DIRECTOR OF THE KOSTOLAC COMPANY THERMAL POWER PLANTS AND MINES

Thermal Power Plants and Mines Kostolac (TE-KO) operate under the auspices of the Electric Power Industry of Serbia and their core activity is producing thermo-electric energy. With a 14% share in the country’s total electricity output, TE-KO Kostolac is an essential factor in the Serbian energy system

S

ince the beginning of 2014, TE-KO Kostolac has produced three million MWh of electricity and extracted four million tonnes of coal. In August this year Kostolac produced two per cent more electricity than originally planned, i.e. 345,864 MWh, and extracted 576,978 tonnes of coal, with 8,401 tonnes going to Serbian industry and for general consumption. After 23 years, Serbia is also getting a new energy unit, located in TE-KO Kostolac, which will increase the country’s electricity output by five per cent and generate total revenue amounting to €100 million. The costs of constructing this facility are €474.7 million, gained via a loan granted by People’s Republic of China.

■ How far ahead are you with this largescale investment project, which you are implementing together with CMEC (China Machinery Engineering Corporation)?

- So far we have completed the rehabilitation of unit B2, which was one of the activities envisaged during Phase 1 and which cost €50,3 million. The rehabilitation of unit B1 will cost €86.9 million, while construction of a River Port will cost another €17.07 million and €12.1 million will be spent on building a railroad. As you probably know, four years ago we 40 |

started modernising the unit in the Kostolac B thermo-electric power plant – first unit B2 and now B1. The modernisation of B2 yielded really good results. Apart from increased efficiency, this unit has brought substantial security, with an increase in power of almost 60 MW, which is of great benefit indeed. The rehabilitation of these two units and the construction of a desulphurisation system is being carried out by Beijing-based machinery and energy company CMEC, which brought its own subcontractors from China. The other two projects from Phase 1 – construction of a River Port and an industrial railroad – will be implemented by Serbian companies.

mental protection. The efficiency of this unit will be equivalent to the latest European and global power stations. I am very happy with the fact that these projects adhere to all relevant European rules and that all economic and financial parameters have been confirmed.

■ What are the future plans of TE-KO Kostolac?

- Our development does not stop at modernisation of the unit at the Kostolac B thermoelectric power plant. We are already planning to build a third unit of the same power and this project is already being realised. The intergovernmental agreement between the People’s Republic of China and the Republic of Serbia stipulates construction of a third 350-MW-unit at Kostolac B and increasing coal extraction at the Drmno open cast mine from nine to 12 million tonnes. The 350-MW-unit will adhere to the strictest EU and Serbian standards, especially in the area of environ-

drainage lines, as well as to the transport system that carries the coal to TPP A. Great masses of land at the internal depository have become unstable and we are very concerned about this, since they can cause huge landslides. However, in terms of functionality, Kostolac is doing fine. No vital facilities have been damaged, so the floods will not greatly influence our production volume. The direct damage is estimated at €1.5 million, but if we add to this the costs associated with flood defence, the amount exceeds €2 million.

■ Could you tell us about the current state of TE-KO Kostolac’s open cast mines and what restoration measures have been undertaken to remedy the difficult situation in the thermal energy sector as a result of this year’s heavy floods?

- The most damage was inflicted on the mines.

The biggest damage was caused to the flooded

The intergovernmental agreement between CMEC and TE-KO Kostolac stipulates construction of a third 350-MW-unit at Kostolac B, as well as increasing coal extraction at the Drmno strip

120 October 2014 | www.cordmagazine.com

■ The development of Kostolac, like the energy sector generally, is focusing on new

coal deposits. What is the actual capacity of the Drmno open cast mine and do you expect new open cast mines to be opened?

- Yes, we have been working hard on researching a mine strip called “Kostolac – West Field Dubravica”. According to existing research estimates, this deposit contains over 450 million tonnes of coal. Taking into account our current capacities and the Drmno mine, this means that Kostolac’s coal extraction would continue uninterrupted until 2050, considering the life span of thermal power facilities. If we started extraction at the Dubravica strip, Kostolac’s coal extraction capacity would last much longer.

■ How do you devise TE-KO Kostolac’s business plans?

- Five years ago our business goal was to become the leader in generating electricity.

Our plan now is to enrich our business and production practices with the latest standards

- The current foreign policy and economic environment are very complex, but that’s how it has always been. The flooded mines at Kolubara will make the situation challenging for both EPS and the entire energy system, especially when we think of a possible gas crisis due to the conflict in Ukraine. This makes the issue of energy safety and stability of the electricity supply the most important issue for the state to handle. Even in the stable situation EPS has been in for the last few years, demand has been outstripping supply and we have had to import electricity during winter. The reasons for this are well-known. Electricity consumption has been growing year-on-year and yet no new electricity production facilities have been opened. The lack of energy can be partially compensated for by other production facilities, which will have to give their best. The situation at TE-KO Kostolac now, just prior to the coming winter, is all about

■ What do you think Serbia’s energy sector priorities should be?

- One of the most important priorities of the Republic of Serbia in the following period should be ensuring the stability of the electricity supply and energy security. The 1970s and 1980s were the time of the biggest construction activity in our country’s energy sector, when 2,300 MW worth of energy facilities were built. From 1990 to 2000 we saw our electricity sector exhausted due to operating in isolated circumstances and virtually no investments were made in its rehabilitation.

rehabilitation of unit B1, which, according to plans, will become functional in December.

With regard to unit B2, it has been producing maximum quantities of electricity since August, following regular maintenance and the fixing of problems with the turbo generator.

We currently have 380,000 tonnes of coal in our deposits and are presently overhauling the coal system that will last until 10th October.

Preparations for the winter are fully underway and judging by the state of our oldest energy unit, which was overhauled recently, we can expect stable operations and a regular supply of thermal energy.

Not a single energy facility was opened during that time. We need to build facilities of at least 1,000 MW output in the following period, considering that the state’s energy strategy stipulates that a number of facilities of a total output of 1,200 MW should be withdrawn by 2025, due to their degree of utilisation falling under 30% and the fact that they will be 40 years old by then. In the last ten years overhauls have substantially increased the utilisation of capacities both at TENT and Kostolac.

After the year 2000 the capacity was doubled compared to the previous period, and yet no new facilities have been built. ■

We need to build facilities of at least 1,000 MW output in the following period, since a number of facilities with a total output of 1,200 MW will be withdrawn by 2025 and carry out technological renovation of our capacities by modernising all our production chains. I am happy to report that this is already happening. In the last four years Kostolac has become a synonym for a successful company that has transformed itself in accordance with the economic requirements for business profitability. We have embraced the technological modernisation of our facilities, a dynamic development policy and the European and global standards in the entire segment of our production and business in general. During all these years we have recorded a constant increase in production, along with accomplishing significant energy efficiency and operating in a prudent manner. We are profitable for the third consecutive year. I can also say that in 2013 TE-KO Kostolac was ranked 9th in Serbia in terms of profit generated, which then stood at 3.6 billion dinars. We also broke the record in electricity production by producing 6.2 billion KWh. In the mining segment we extracted over eight million tonnes of coal and fourty million cubic meters of overburden.

■ Do you think Serbia is in for a difficult winter when it comes to the electricity supply?

cordeditorial@cma.rs |

120 October 2014 | 41

REGIONAL NEWS

Business Dialogue 01

BULGARIA

Stability “I will aim to keep a strong coalition… which has obliged itself to lead Slovenia out of the crisis, to bring stability, higher political and legal culture to Slovenia”. — Miro Cerar, Prime Minister of Slovenia

02

Gas Crisis Scenario is Very Likely

Advertising Market Growing

Bulgaria’s caretaker Minister of Economy and Energy, Vasil Shtonov, has suggested that a new gas cri- VASIL SHTONOV sis is very likely. Speaking end last Minister of Economy and Energy month Shtonov argued that Bulgaria would face an extremely difficult situation in the case of a suspension of gas supplies from Ukraine.He explained that Bulgaria was receiving all of its gas deliveries via a pipeline coming from Russia via Ukraine and Romania and that Bulgaria’s local production was negligible, amounting to less than 0.5 million cubic metres of gas a day.

Shtonov pointed out that thermal power plants could switch to fuel oil in the case of a gas crisis, adding that the scenario required substantial preparations, including transport and logistics and inspections of the capacity of the TPPs to start running on a different type of fuel.

“Bulgaria’s interest in the South Stream gas pipeline project involved transit fees,” he said “the government backed each and every gas pipeline project, the main priority being the gas grid interconnections with Romania, Greece, Turkey and Serbia.”

03

Huge Losses From Lifting of Tax on Coffee

42 |

Romania’s local advertising market will grow by 2.8% this year, after five years of decline, mainly due to the expansion of the digital sector, according to Zenith Romania’s estimations. By year’s end 2014 investments in the media sector are expected to reach $394 million.

According to estimates, the digital sector will increase by 12% this year, reports local site Hotnews.ro. Although the mobile segment segment will grow by 30% this year, its share within total investments remains relatively

04

KOSOVO

Kosovo loses at least €2million a year as a result of the lifting of taxes on unbaked coffee, as shown by official statistics relating to the 2007-2013 period. Another half a million Euros is lost on imports of baked coffee.

Based on the official data from the Customs of Kosovo, in 2007 Kosovo imported 3.5 million kg of unbaked coffee, paying a duty tax of €1.05 million, while in 2013 Kosovo imported 7.6 million kg of unbaked coffee, but not a single cent of tax was collected on it.

Had the tax been applied, Kosovo would benefit €2 million from the import of unbaked coffee.

The import of baked coffee has not grown as much as unbaked coffee from 2007 to 2013.

Source: ibna

ROMANIA

CROATIA

50% of Workers Earning Under €500 a Month Despite Central Bureau of Statistics data suggesting that the average take home monthly salary in Croatia stands at just 5,558 kuna (€720), the number of workers taking home under €460 a month is around 50%, writes daily Slobodna Dalmacija...

Vedrana Pribičević from the Zagreb School of Economics and Management recently produced a study on data highlight those on ‘marginal wages’, and the data shows that the official average wage, which is low as it is, does not paint a real picture of the situation. According to the report, 50% of those employed in Croatia take home €445 or less net a month.

06

MONTENEGRO

Expanding Cooperation with Azerbaijan

The Montenegrin Prime Minister’s ILHAM ALIYEV, President of Azerbaijan visit to Baku and his meetings with (left), and MILO ĐUKANOVIĆ, Montenegrin top Azerbaijan’s officials has pro- Prime Minister vided a powerful impetus to further interstate cooperation. This was the conclusion of the meeting between Montenegrin PM Milo Đukanović and Speaker of the Azerbaijani Parliament, Oktay Assad.

“Since establishing diplomatic relations the two countries have managed to develop meaningful and efficient cooperation in a number of areas,” said Đukanović, referring in particular to the field of economy, which will be enriched through the work of the joint committee and the implementation of new projects in the field of infrastructure and energy.

Montenegro’s PM was the guest at a ceremony of laying the foundation stone for the construction of the Southern Gas Corridor, which will be connected to an arm of the Ionian Adriatic Pipeline.

120 October 2014 | www.cordmagazine.com

low, around five per cent, but it’s expected to increase to 6-6.5% by year’s end 2015.

TV continues to attract most of investments in advertising – 63.9%, followed by the digital segment – 13.7%, the outdoor sector – 10.1%, radio – 5.8%, magazines – 3.5%, newspapers – 2.6% and cinema – 0.4%.

The global advertising market is expected to increase by 5.3% this year, compared to 3.9% in 2013.

05

ALBANIA

Seeking EU Investments for Infrastructure

Albanian Minister of Transport and Infrastructure, Edmond Haxhinasto, emphasised the need to seek investment support for its corridor VIII scheme during a meeting of the EU Council of Transport Ministers in Milan.

The corridor includes road connections with Macedonia and capacity enhancement at Albanian ports and railways.

During meetings with his German and Montenegrin counterparts, Haxhinasto said support for the Blue Corridor linking the Western Balkan countries was one of the most important issues raised in Berlin.

It is the first time Albania is taking part in the Council of EU Transport Ministers. Source Xinhua

Topic

07

HUNGARY

“The most important topic for the talks with the Belgrade government is the analysis of the region as a joint market and diverging opinions concerning the Kosovo issue in Belgrade and Tirana”. — Edi Rama, Albanian Prime Minister

Bank Compensation Could Top €3.22 billion The cost to banks of the settlements law, once passed, is expected to be higher than estimates, analysts have told Hungarian state news agency MTI. Banks are likely to be HUF 1 trillion (€3,22 billion) worse off after paying compensation to borrowers, as opposed to HUF 600-900 billion (€1,93 bln– €2,89bln), ING Bank’s senior analyst, András Balatoni, said.

Domestic consumption will be boosted by forex borrowers whose instalments will be reduced, but banks in the short run will not be in a position to support growth, Balatoni said. He added that lending activities could further shrink.

Gergely Gabler, senior analyst for Erste Bank, said the total burden on the sector would be “somewhat more” than expected, but he noted that the exact amount would depend on a complex methodology to be defined by the central bank.

Gabler said the capital position and lending capacity of banks would be impacted. A moratorium on banks raising interest rates until April 2016 was an unexpected component, he said, adding that if existing forex loans are converted to forint-based ones at a rate more favourable than the market rate, this could further weaken the forint.

08

BALKAN

EBRD Cuts 2014 Economic Forecasts

The EBRD has cut its 2014 economic forecasts for Southeast Europe as a result of major flood damage in the region and stresses in the Bulgarian banking sector.

The sharpest revisions are in Bosnia-Herzegovina and Serbia, with both countries having suffered extensive flood damage in late May. Vital sectors of the economy, such as energy and agriculture, were badly affected.

Growth in Bosnia is forecast at just 0.2 per cent now, compared with a prediction of 1.8 per cent in May. Serbia is likely to swing into recession, with the economy expected to contract by 0.5 per cent, compared with a previous growth forecast of one per cent.

The EBRD downgraded its forecast for Bulgaria to 1.5 from 1.9 per cent, mainly following problems in the financial sector.

However, the report said the longer term impact of the financial sector turmoil was likely to be limited by prompt action by the authorities, including the stated intention to opt into Europe’s Single Supervisory Mechanism for the banking system.

In contrast to its outlook for this year, the EBRD has revised up its average 2015 growth forecast for south-eastern Europe to 2.6 per cent, up from 2.4 per cent seen in May. The Bank predicts a modest reconstruction-related rebound in the Bosnian and Serbian economies in 2015, while prospects for Albania, FYR Macedonia and Montenegro have also improved because of progress in clearing arrears in Albania and better prospects for major public infrastructure projects in FYR Macedonia and Montenegro.

The economy in Cyprus, the EBRD’s newest country of operations, remains in deep recession, but signs of confidence and optimism are becoming increasingly apparent.

The EBRD said the economy faces severe problems, not least in the banking sector where most lending has dried up and nonperforming loans are around 50 per cent of the total.

GDP is expected to fall by 3.5 per cent in 2014. Zero growth is expected for 2015. But the report said there was more than usual uncertainty surrounding next year’s forecast.

Separately, the EBRD report highlighted the potential positive knock on effects of an effective policy of quantitative easing (QE) in the Eurozone for emerging European countries.

“The case for quantitative easing has become compelling to support the still fragile recovery in the Eurozone, to which much of the (Central Europe and Baltic and south eastern European) regions are strongly linked. An effective Eurozone QE may help lessen the risk of setbacks in the recovery of those regions,” the report said.

Source: EBRD cordeditorial@cma.rs |

120 October 2014 | 43

INTERVIEW

Business Dialogue

Quality Education for the

Leaders of Tomorrow ANGELO COSKINAS, UPPER SCHOOL PRINCIPAL, INTERNATIONAL SCHOOL OF BELGRADE

The International School of Belgrade was founded in 1948. ISB is an independent, coeducational international day school that enrolls students from ages three to eighteen

and International Baccalaureate (IB) authorisation of our three IB programmes: Primary Years Programme (PYP), Middle Years Programme (MYP) and Diploma Programme (DP). These are the most significant events that I would emphasise. There has also been our new Upper School campus, with its modern sporting facilities. During that time we have continued to develop a rigorous, holistic education programme. In recent years there has been a focus on forging closer connections with the greater Serbian community through our various service programmes.

A

never let size limit our ambitions and, thus, we constantly strive for excellence across our learning programmes. A central part of our philosophy is genuine student empowerment, whereby students work closely with staff to shape our various academic, enrichment and activity programmes. This partnership based on trust has seen a culture embedding that inspires students to play a more prominent role in shaping their learning environment. Although students and staff may move on, these core beliefs and practices ensure that the essence of ISB never wavers.

s an authorised IB World School, ISB provides a highquality, college-preparatory education with an emphasis on internationalism and global responsibility. ISB is accredited by the Council of International School (CIS) and by the New Eng■ Interestingly, during all these years land Association of Schools and Colleges of changes in society, the ISB has ■ How does the operational system of (NEASC), and authorised by the Internamaintained its identity. What experiISB differ from other regular educational Baccalaureate Organisation and by ence, references and principles form tional institutions in Serbia? the Ministry of Education of the Republic of Serbia.

What ISB strives to achieve is the creation of a learning

environment where every student matters, and where

■ The International School of every student feels that they belong… We never let size Belgrade (ISB) has existed in Serbia for more than 65 years limit our ambitions and, thus, we constantly strive for and during that time the way excellence across our learning programmes the school functions and its curriculum has changed significantly. the basis of the ISB’s work?

- I think the most significant difference What do you think are the key events - The central ISB principle is to be true to from other educational institutions in in the development of the school over our mission and beliefs. There is a clear Serbia is that ISB has a lower teacher-puthe past decade? understanding of the power of collaborapil ratio and a more compact curriculum.

- During the extremely rich history of tive learning and the importance of an Although students study fewer subjects our school there have been multiple inclusive community. What ISB strives to than their Serbian school counterparts, developmental stages. There have been achieve is the creation of a learning enISB students study them in greater depth, the Council of International Schools (CIS) vironment where every student matters, with the main emphasis on understandand New England Association of Schools and where every student feels that they ing rather than memorising. Our students and Colleges (NEASC) re-accreditation belong. Although a small community, we focus more on conceptual understanding, 44 |

120 October 2014 | www.cordmagazine.com

application of knowledge in unfamiliar situations and skills development. ISB has more periods for each subject in a weekly rotation, which allows for greater depth, breadth and more discussions and hands-on learning opportunities. Much of the academic work occurs within the classroom, with homework only given to reinforce or extend learning.

There is also a greater emphasis on experiential learning, with expeditions, excursions and activities focusing on developing the whole child, to ensure a fully balanced and extensive learning curriculum. Students are equally encouraged to follow their passions and seek new opportunities and challenges, and this has led to many initiatives being student driven. We also have a homeroom programme, which focuses on supporting our students’ emotional, political, social, cultural and academic growth beyond the academic component.

■ What are the advantages gained by ISB students upon graduation?

- In a nutshell, students in essence gain a passport to the world. Graduating from ISB means that students are socially, emotionally, culturally and academically ready for university expectations, wherever in the world they wish to go. In fact many of our students indicate that after undertaking the IB Diploma at ISB their first year at university was comparatively quite easy.

■ How does the accreditation programme function, given that three international bodies oversee the work of your school?

How important is this programme for the development of new curricula?

- The re-accreditation and evaluation work of these external and independent agencies are a very important component in ensuring that our practices and curricula are world renowned. The different agencies examine all aspects of school life. These evaluations occur on a regular basis, with their central purpose being to ensure that the school’s philosophy, curriculum, staffing, facilities, resources and organisational structures are at levels commensurate with the best practices worldwide.

These agencies also examine instructional practices and learning outcomes to ensure that they reflect the school’s ambitions. ISB chooses to have three accreditation bodies

review its practices, for we believe ardently in a thorough and rigorous evaluation process to ensure that all aspects of our school measure up to our desire for excellence.

■ The school is currently attended by approximately 400 children from 50 countries around the world. What is specific about working in multinational and multicultural school environments like that of ISB? - Having close to 50 different nationalities at ISB, we feel an obligation to maximize the op-

a result of stereotypes and misrepresentation.

To see Chinese, Israeli, Australian, American, Malay, Norwegian, Greek and Serbian students mixing and conversing so effortlessly and harmoniously provides a clear indication of what is special about ISB’s international education. Fundamentally, we prepare students to be world citizens and we feel sure that our multinational school environment creates the strongest foundation for future success, irrespective of where our students may wish to venture in the future.

Fundamentally, we prepare students to be world citizens and we feel sure that our multinational school environment creates the strongest foundation for future success, irrespective of where our students may wish to venture in the future portunities available to our students, due to our cultural diversity. We have students and staff from all continents and, as such, there is an amazing richness of different cultures, customs, beliefs, experiences and understandings. Teachers are cognisant that students have come from very different backgrounds and, accordingly, they utilise a diverse range of instructional practices in order to allow all students access to, and engagement with, the curriculum. Equally critical to appreciating other perspectives is for students to learn to challenge their own understandings and realise that an international education opens horizons and brings people together to share their commonality, in the hope that it will diminish the ignorance that often pervades as

■ What are your plans, as new director of the secondary school programme of the International School of Belgrade, and what projects will you be working in the coming school year?

- A school does not reach a milestone of 66 years unless it is doing many things right and, thus, my main focus is to keep enhancing the excellence that was established before my arrival. There are many talented staff members and students, as well as supportive parents who I feel honoured to be able to work with and, thus, I have little doubt that our collective and collaborative efforts will ensure we remain at the forefront of what constitutes an outstanding educational experience. ■

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WORLD NEWS

Sanctions

Business Dialogue 01

“We (Russia and the West) will come to agreements sooner or later, as sanctions don’t last forever. These foolish sanctions will pass, but international relations will continue. And currency markets will open up.”

— Dmitry Medvedev, Russian Prime Minister

CHINA

02

Central Bank Injects $81bln Into Major Banks

JAPAN

Sony Predicts Increased Losses

China's central bank has injected $81 billion into the nation's five major state-run commercial banks to bolster flagging economic growth

Japanese consumer electronics giant Sony has unexpectedly said its annual loss may be 230bn yen ($2.15 billion)

Wang Hongzhang, chairman of China Construction Bank (CCB), confirmed recent media reports that the People’s Bank of China began releasing the funds under its standing lending facility (SLF), a liquidity support tool, for a three-month period.

Commercial banks have long complained about the high reserve requirement ratio (RRR) as their loan-issuing capabilities have been limited. The SLF move, which can be translated into a 0.5-per cent lowering of the RRR, is meant to encourage more lending, analysts have said.

The SLF move follows recent weak economic data suggesting continuing downward pressure on economic growth.

Source: Xinhua

This was attributed to its struggling mobile business, which has been losing money due to competition from global rivals like as Apple and Samsung. Sony also said it would not pay a year-end dividend for the first time.

Analysts say that while the company faces a hard time returning its smartphone division to

03

TURKEY

04

USA

Na zdorovye, Pabst!

The 170-year-old Milwaukee brewery, known for its acronymic hipster beer, announced that it has been sold to Moscow-based Oasis Beverages, a six-yearold beer and soda firm that operates in Kazakhstan, Belarus and Ukraine.

The Russian company reportedly paid $700 million for the American beer label, which makes a decent profit for C. Dean Metropoulos, the firm that bought Pabst in 2010 for $250 million.

Oasis, which also has operations in Ukraine, Belarus and Kazakhstan, is a beverage heavyweight in its own right, putting out local favourites, like Golden Tankard and the Soviet-era Zhiguli label.

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profit, it is not impossible.

“They are not the only smartphone vendors to be under a lot of pressure,” said Rachel Lashford from consultancy Canalys. “With the right restructuring and focus on products, at the right prices, it is absolutely possible for vendors to move forward.”

Trans-Anatolian Gas Pipeline Turkey’s energy minister has declared a gas pipeline a “peace corridor” linking the Caucasus with the Balkans.

Turkey's Energy Minister, Taner Yıldız, “We open the project as a peace corridor signed the first section of the pipeline that is the result of 15 years hard work by Turkey and Azerbaijan,” said Taner Yıldız. The South Caucasus pipeline is the first phase of the Southern Gas Corridor, which will carry gas from the Caspian Sea to Turkey, connecting to the Trans-Anatolia natural gas pipeline via Georgia and reach southern Europe.

Azerbaijan’s President, Ilham Aliyev, Georgian Prime Minister, Irakli Garibasvili, Bulgarian President, Rosen Plevneliev, Greek Prime Minister, Antonis Samaras, and Montenegro’s Prime Minister, Milo Đukanović, also took part in the ceremony.

06

GERMANY

07

CYPRUS

New €10 Note Comes Into Circulation A new €10 note brought into circulation on 23rd September is more resistant to counterfeiting and easier to check, the EU Central Bank has said.

“It’s essential that everyone who uses euro banknotes can continue to do so with complete confidence.

That’s why we’re introducing the Europa series,” said Yves Mersch, the European Central Bank’s Executive Board member responsible for banknotes.

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EIB President Werner Hoyer with Finance Minister Harris Georgiades

‘Where is the Money Going?’

European bankers chided Cypriot banks in late September for failing to pass on millions to small and medium-sized businesses, which they called the “engines for growth and jobs”.

The president and vice president of the European Investment Bank (EIB) were in Nicosia to sign a loan deal with Cypriot banks worth €85 million to be used to finance SMEs. But the banks were told the EIB wanted to see the money filter down to where it was supposed to go, because right now it was not reaching them.

The deal, which is guaranteed by the government, provides for €50 million to be given to the Bank of Cyprus and €35 million to the Hellenic Bank.

05

FINLAND

Advantages of Foreign Takeovers The advantages of the takeover of a Finnish company by a foreign one typically outweigh the disadvantages, states Katariina Nilsson Hakkala, a senior researcher at the Government Institute for Economic Research.

Studies, she says, indicate that foreign takeovers not only improve the productivity of the company, but also introduce new management and research expertise to Finland.

In recent years, two to three companies listed on the Helsinki Stock Exchange have been acquired by foreign companies.

Katariina Nilsson Hakkala

INTERVIEW

Knowledge and Skills

for the Future

MARKO CARIĆ, DEAN OF THE FACULTY OF LAW FOR BUSINESS AND JUDICIARY OF THE UNIVERSITY BUSINESS ACADEMY IN NOVI SAD

The Faculty of Law for Business and Judiciary in Novi Sad was founded in 2000 and since its inception has grown into a higher education institution which has a prominent place among the leaders in the field of providing education to legal specialists

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his higher education institution has the clear aim of preparing students for existing and future market conditions and assisting them with their professional direction by enabling practice at the Magistrate Court, Appeals Court, in business organizations and through its educational activities and specialist courses during studies.

Apart from its seat in Novi Sad, the Faculty of Law for Business and Judiciary has accredited higher learning units in Subotica, Šabac and Niš.

■ Could you elaborate on the principles on which educational programmes of the Faculty of Law for Business and Judiciary are based?

- Our priority is to adjust the curriculum of our higher learning institutions with the real needs of the Serbian economy and justice. Our advantage lies in the fact that we respond quickly to all changes and challenges on the modern market which are imposed by the process of European integration in Serbia. Our aim is for our graduates to possess knowledge that is up to date and applicable in practice and are thereby able to continue their education abroad.

■ Which business skills should your students possess?

- Since our goal is to work on developing students’ personality and enable them to

resolve complex problems independently in their professional practice, I think that it is of paramount importance to have business skills incorporated into our curriculum. That’s why the Faculty has established the Centre for Education and Specialist Courses and the Centre for European Integration. Their purpose is to continuously educate our students, graduates and workforce through specialist and scientific training. Through this additional education, other educational activities and specialist courses, the students can improve their knowledge and skills needed both for the current and future professional orientations. Students can also have practice at the Magistrate Court, the Appeals Court and in business organizations.

more on quality and less on privileges.

Also, the western practice has demonstrated that the best faculties are those which are privately owned. At these faculties, the quality is of utmost importance and more effort is invested in taking care of students and their needs. This is also the development policy of our Faculty of Law for Business and Judiciary.

I think that there is still plenty of room to develop and improve higher education in Serbia.

■ Based on your experience, could you tell us which direction the higher education in Serbia will take?

- We can notice that the Government of Serbia aims to provide income and savings in the budget by reducing salaries and pensions, as well as by

■ How can we motivate young people to study considering that the country’s unemployment rate has been growing steadily year-on-year?

- The first thing that we need to do is to incite the desire to succeed in young people, to teach them how to set goals and how to work daily on fulfilling these goals. It is also important that we build awareness of just how important knowledge is and that studying pays off in the end. The time has come to stop differentiating between state- and privately-run faculties

increasing various taxes. Accordingly, we cannot disregard the fact that considerable saving would be provided by reducing the number of students financed from the budget. This wouldn’t directly impact anybody, because the best students would still be financed from the budget, but not in such large numbers as today. Certainly current practice is unconstitutional, since the Constitution states that the Government allows free higher education for “successful and talented students with lower income families.” This would bring more equality in the market competition between state and private faculties, which would then be based

because young people and the future of Serbia depend on us and on the skills and knowledge that we can provide. Another accreditation cycle has just finished and now it is apparent that many state-owned faculties do not comply with the strict accreditation rules. On the other hand, there are successful privately-run faculties which have been achieving increasingly good results year-on-year both in terms of the quality of knowledge their students possess and the quality of the scientific work provided by the faculty professors. The Faculty of Law for Business and Judiciary is one of those faculties. ■

The first thing that we need to do is to incite the desire to succeed in young people, and then build awareness of just how important knowledge is and that studying pays off in the end

cordeditorial@cma.rs |

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AFTER WORK 09.09.2014

Digital 2014 in Belgrade Belgrade’s Hyatt Regency Hotel hosted the Digital 2014 regional conference on trends in telecommunications and media. Around 200 participants and guests attended the daylong panels and discussions on the topic of telecommunication companies in the region, advertising, social networking and new media. The conference was opened by Speaker of the Serbian Parliament, Maja Gojković, who noted that “by 2020 some 90 per cent of occupations will require digital skills”.

The conference was attended by the CEOs of Telekom Serbia, Telenor and VIP, as well as representatives of Deutsche Telekom, Bulgaria’s Mtel and Pricewaterhouse Coopers, who all participated in a panel discussion on telecommunications companies in the region. The conference was organised by Color Press Group.

Robert Čoban, Owner of publishing house "Color Press Group"

Martin Navratil, managing director of the new bank, Serbian Finance Minister Dušan Vujović, President and CEO of Telenor Group, Jon Fredrik Baksaas and CEO of Telenor Serbia, Ove Fredheim 10.09.2014

Eighth Birthday for Telenor Belgrade has become the home of Telenor Bank, the first mobile online bank in the region, in which around €40 million is being invested. The new bank was officially opened

by Serbian Finance Minister Dušan Vujović, President and CEO of Telenor Group, Jon Fredrik Baksaas, CEO of Telenor Serbia, Ove Fredheim, and managing director of the new bank, Martin Navratil. The opening of the bank was followed by an evening cocktail reception that also marked eight years of Telenor’s operations in Serbia.

11.09.2014

Henry Moore at the National Museum The atrium of the National Museum is hosting the exhibition “Henry Moore – graphic artist”, which presents prints and sculptures from the rich art collection of the British Council.

Opening the exhibition, Serbian Culture and Information Minister Ivan Tasovac said that Moore is synonymous with British art in the 20th century. The exhibition, which will be open until 31st October, includes around 200 of the finest prints from all periods of creativity. Henry Moore gifted the collection to the British Council on the occasion of its 50th anniversary. The opening ceremony was attended by Bojana Borić Brešković, director of the National Museum, Dennis Keef, UK Ambassador to Serbia, David Michinson, a long-time friend of Henry Moore, and Tony O’Brien, Director of the British Council for the Western Balkans.

Dennis Keef, UK Ambassador to Serbia, Ivan Tasovac, Minister of Culture, Tony O'Brien, Director of the British Council for the Western Balkans, Maja Kolar, Marketing and Communications Director at Banca Intesa, David Michinson, a long-time friend of Henry Moore, and Bojana Borić Brešković, director of the National Museum

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120 October 2014 | www.cordmagazine.com

H.E. Nils Ragnar Kamsvag, (left) Norwegian Ambassador in Belgrade, Martin Navratil, managing director of the new bank, and Ove Fredheim, CEO of Telenor Serbia

17.09.2014

Blic Celebrates Coming of Age Daily newspaper Blic has celebrated 18 years of its existence on the Serbian media scene. The reception was attended by over a thousand guests, friends, associates, government officials, business partners and others, who congratulate editor-in-chief Veselin Simonović.

“From now on your newspaper and ours has come of age and is expected to be a serious newspaper. We promise that we will not disappoint,” said Simonović.

The party was also an opportunity for the Blic website to celebrate its 15th anniversary. During that time this website has become the most visited, not only among all newspaper sites in Serbia, but also within the whole company.

Jelena Drakulić Petrović, Director of Ringier Axel Springer Serbia, and Veselin Simonović, Blic Editor-in-Chief

Aleksandar Nikolić, Director of Berlitz centre, Michela Bernacca, Founder, and Johannes Eigner, Austrian Ambassador to Serbia 18.09.2014

Berlitz School of Languages Celebrates 10th Anniversary of Work in Serbia Berlitz, the oldest language centre in the world, celebrated 10 years of work in Serbia on 18th September. To mark this occasion, a grand party was organised at the new Berlitz centre at Belgrade’s Makenzijeva Street 37. The programme included an exhibition of young artists from Zečević gallery.

“I would like to thank everyone for being here with us tonight. This is a double jubilee, as we celebrate not only our 10th anniversary, but also 100 years since the opening of the first Berlitz language centre in Belgrade, back in 1914. After being re-registered in 2004, our school today has more than 2,000 students and 50 licensed teachers, stated Michela Bernacca, director of the Berlitz centre.

19.09.2014.

McCann Belgrade - Top in the Region

Agency “McCann Belgrade” received the title of the best agency in the region during the “BalCannes” advertising campaign held at the Weekend Media Festival in Rovinj, Croatia.

McCann Belgrade was deemed the top agency thanks to the creativity of its young professionals and the quality of services they provide to clients. The award validates the I&F McCann Group’s vision to become the preferred partner in communications for local, regional and multinational companies. Of the 148 works from 57 agencies in six countries in the region registered this year, McCann Belgrade was represented with three campaigns: “Drama u taksiju” (Drama in a taxi), “Može” (Can do) and “Pluća grada” (Lungs of the city).

“Drama u taksiju” won the SoMoBorac Award for the best digital media and social networks campaign.

Milena Kvapil, Copywriter

Vladimir Ćosić, Art Director

cordeditorial@cma.rs |

120 October 2014 | 49

FACES & PLACES 01.09.2014

Victory Day, Republic of Turkey On the occasion of the 92nd Anniversary of Victory Day, the Ambassador of the Republic of Turkey, H.E. Mehmet Kemal Bozay, and Turkish Military Attaché, Col. Güngör Gündoğdu, hosted a Reception on Monday 1st September 2014 at the Belgrade Hyatt Regency Hotel’s Focaccia Hall.

Jelesije Radivojević, Brigadier General, Special Force Commander, Serbian Army, Col. Güngör Gündoğdu, Military Attaché, Turkish Embassy, Ali Riza Avci, Command Sergeant Major, Turkish Embassy 01.09.2014

04.09.2014

Canadian-Serbian Business Association Formed

AmCham Holds Traditional Working Lunch

The Canadian Embassy in Belgrade has established the Canadian-Serbian Business Association (CANSEE), whose operational priority will be supporting cooperation between Serbian and Canadian companies and improving economic relations between the two countries. The establishing of the association was attended by Canadian Foreign Minister John Baird, then President of the Serbian Chamber of Commerce, Željko Sertić, Canadian Ambassador in Belgrade, Roman Waschuk, as well as representatives of the diplomatic corps and the regional and international business community.

H.E. Roman Waschuk (left), Željko Sertić and John Baird

Stacey Kennedy, President of AmCham Serbia

Members of the American Chamber of Commerce (AmCham) attended the traditional business lunch to discuss improvements to the business environment, plans and measures that will be implemented in the process of fiscal consolidation and the fight against the grey economy, as well as plans for further improvement of regulations under the authority of the Serbian Ministry of Finance. The event was opened by Stacey Kennedy, President of AmCham Serbia, and Finance Minister Dušan Vujović. The lunch was attended by representatives of AmCham member companies.

Stacey Kennedy with Dušan Vujović, Serbian Finance Minister, and U.S. Ambassador, H.E. Michael Kirby

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04.09.2014.

Slovak National Day On the occasion of his country’s national day celebrations, Ambassador of the Republic of Slovakia to Serbia, H.E. Jan Varšo, hosted a reception on the premises of the embassy.

The reception was attended by a large number of representatives of the Serbian government, the diplomatic corps and prominent figures of cultural and public life.

Distinguished guests were briefed on traditionally good relations between Slovakia and Serbia, as well as the numerous important anniversaries being marked by Slovakia this year, including the 10th anniversary of European Union and NATO membership, the 70th anniversary of the Slovak National Uprising and the 25th anniversary of the Velvet Revolution.

Ivica Dačić, Serbian Foreign Minister, and H.E. Johannes Eigner, Austrian Ambassador 09.09.2014

Exhibition: Austrian-Serbian Relations From 1836 to 1914

H.E. Jan Varso, Slovakian Ambassador, and H.E. Alexander Chepurin, Russian Ambassador

An exhibition entitled “Notes on a tumultuous relationship” will be open at the Palace of Princess Ljubica until 5th October. The exhibition consists of documentary material, lithographs and works of Serbian painters of academic realism.

The concept of the exhibition deals with the close but complicated relations between Austria and Serbia from 1836 to 1914, which culminated in the outbreak of World War I. In the presence of a large number of senior representatives of Serbia’s culture, political and diplomatic scenes, the exhibition was opened by Dr. Hannes Leidinger from the University of Vienna, Dr. Danilo Šarenac, Research Associate at the Institute for Contemporary History, and Vladimir Tomić, senior curator of the Museum of the City of Belgrade. The exhibition is the result of cooperation between the Austrian Embassy in Belgrade, the Institute of Contemporary History and the Museum of the City of Belgrade.

H.E. Jan Varso, Slovakian Ambassador to Serbia 08.09.2014

Macedonian Independence Day On the occasion of the Independence Day of the Republic of Macedonia, the country’s Ambassador in Belgrade, Vera Jovanovska-Tipko, organised a formal reception at Belgrade’s Crowne Plaza Hotel. The event was opened by actor Ivan Bekjarev, while the Macedonian and Serbian national anthems were performed by opera singer Jadranka Jovanović. The ceremony was attended by representatives of the diplomatic corps, as well as prominent public figures and politicians.

Maja Gojković, Speaker of the National Assembly of Serbia (left), and Macedonian Ambassador, H.E. Vera Jovanovska–Tipko

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120 October 2014 | 51

FACES & PLACES 11.09.2014

German-Serbian Business Association

The traditional “Members Dinner- Welcome drink” event was organised by the GermanSerbian Business Association and held at Belgrade’s IN Hotel. The event was attended, among others, by Serbian Finance Minister, Dušan Vujović, who discussed current topics relevant to the fields of finances and economics. The officials in attendance were welcomed by the president of the German-Serbian Business Association, Ronald Seeliger, and the director of the Delegation of the German Economy in Serbia, Martin Knapp.

Dušan Vujović, Serbian Finance Minister (left), Ronald Seeliger, president of the German-Serbian Business Association, and Martin Knapp, director of the Delegation of the German Economy in Serbia 12.09.2014

Mexican National Day On the occasion of Mexican Independence Day, Chargé d’affaires of the Mexican Embassy in Belgrade, José Humberto Castro Villalobos, organised a reception for senior officials from political, public, culture and religious circles at Belgrade’s Hyatt Regency Hotel. This year the embassy marked 204 years from 12th September 1810, when Mexicans revolted against the royal family in the city of Dolores, leading to independence eventually being gained 11 years later.

Mrs and Mr Yubazlan Bin Yusof welcome H.E. LI Manchang, Chinese Ambassador to Serbia 16.09.2014

Malaysian National Day Mrs María Mayela Leiva Ulloa and Mr José Humberto Castro Villalobos, Chargé d'Affaires of the Mexican Embassy in Belgrade, welcome H.E. Majid Fahim Pour, Iranian Ambassador to Serbia

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120 October 2014 | www.cordmagazine.com

On the occasion of this year’s 57th anniversary of Malaysian Independence Day, Chargé d’affaires of the Malaysian Embassy in Belgrade, Yubazlan Bin Yusof, organised a reception at Belgrade’s Hyatt Regency Hotel that included plenty of traditional music and dance. Guests included prominent figures from Serbia’s political, public and culture scenes. Malaysia was formally created on 16th September 1963, when the countries of the Malay Federation, Sabah, Sarawak and Singapore, united in the Malaysian Federation following agreement with the UK.

17.09.2014

French-Serbian Chamber of Commerce The traditional Gala evening of the French-Serbian Chamber of Commerce was this year marked in celebration of the organisation’s fifth birthday. The festive evening was opened by Serbian Prime Minister Aleksandar Vučić, who congratulated the Chamber and its French and Serbian member companies on the anniversary. President of the Chamber, Patrick Collin, presented a special award for outstanding efforts in the development of bilateral relations between France and Serbia to PM Vučić, while a special award in absentia was awarded to the former French Ambassador to Serbia, H.E. François-Xavier Deniau, which was received on his behalf by the First Counsellor of the Embassy, François-Louis Bonet.

HE Julia Feeney, Australian Ambassador to Sebia, Dane Kondić, Air Serbia CEO, Đorđe Vukotić, Etihad Serbia, and Joost den Hartong, Etihad Europe 19.09.2014

Promotion of Direct Flights to Australia

Patrick Collin, President of French-Serbian Chamber of Commerce (left), and Aleksandar Vučić, Serbian Prime Minister

The Australian Embassy in Belgrade hosted an event to promote direct flights to Australia and to lend support to Etihad’s efforts to promote Australia as a first class tourist destination via its equity partners Air Serbia and Virgin Australia.

The new flights to four Australian cities opens up much more than opportunities for increased tourism, but importantly opens the way for enhanced cultural and educations links, as well as potential for increased trade and investment -all elements which the Australian Embassy in Belgrade supports.

20.09.2014

Rugby League European Championships in Belgrade

Mark Harrison and Giuseppe Manzo

Serbia hosted Italy in the latest round of Rugby League’s European Championships in Belgrade. Guest of Honour was Italian Ambassador Giuseppe Manzo, who was accompanied by Mark Harrison of Harrisons, sponsors of the Serbia national team. Australian Ambassador Julia Feeney and Andrea Simoncelli, President of the Italian-Serbian Chamber of Commerce, were also present.

Serbia’s historic 45-6 victory places the country at the top of the WC qualifying group, which also includes Russia and Ukraine.

Andrea Simoncelli with Mr and Mrs Feeney

cordeditorial@cma.rs |

120 October 2014 | 53

THE BURNING MAN FESTIVAL

The Creativity Factory

OF A NEW ERA The ‘Burning Man’ festival is held each year in Nevada’s Black Rock Desert from 25th August to 2nd September. This year’s festival attracted more than 70,000 people from all over the world

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metre high wooden effigy of a man on (Facebook), Bob Pittman (MTV) and he ‘Burning Man ‘festival, once the final day of the festival. Larry Harvey, many others formed this year’s group synonymous with counterculnow in his late sixties, launched the fesof highly influential figures and did not ture rebellion, is now the prodtival in 1986 as a modest counterculture hesitate to fork out as much as €1.5 miluct of so-called ‘techno busiexperiment among groups of friends lion for one week of luxury accommodanessmen’. This relatively new group of on Baker’s Beach in San Francisco. As a tion, food and the presentation of their businessmen made their money through symbol of summers’ end, the expansion of creative the beach parties culmiindustries that have been a Great artistic structures that emerged nated with the burning of a vital part in the field of digsmall art installation in the ital technology, the inforduring the festival vanished in flames at shape of a human effigy. mation industry and industhe end, interactive art and music events Symbolic of American extrial design innovation. and cheap camping dominated the pression, and the freedom Amongst the ‘techno seemingly unwelcoming desert conditions, that set fire to the world businessmen’ are mainly representatives from with extreme temperatures during the day after the fall of the Berlin Wall and the end of the Silicone Valley and leaders and night, no electricity or running water Cold War, this act was profrom other multinationnounced as one of ‘radical al companies whose busiself-expression’ and was executed in the innovative projects. nesses are mainly based on new techspirit of the victory of freedom. It was Once known as the ‘Do-it-yourself nologies. Larry Page and Sergey Brin during this time that talks of the beginculture festival, ‘Burning Man’ is named (Google), Elon Musk (Tesla Motors), ning of a new era under the supervision after its own ritual of burning a twelveJeff Bezos (Amazon), Mark Zuckerberg

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120 October 2014 | www.cordmagazine.com

camping dominated the seemingly unwelcoming desert conditions, with extreme temperatures during the day and night, no electricity or running water. At the conference, “Be-In”, first held during the festival in 1997, Larry Harvey compared the ‘Burning Man’ community to “cyberspace; a space that possessed no borders and in which the unimaginable freedom of expression arose”. This led to the first postmodern utopia of the 21st century. Some 20 years later, the conclusion is that “cyberspace” is not only a digital utopia, but it is a perfectly realistic creation that is the ideology of consumerism and the very precise targeting of a group that can enrich the transnational context.

END OF THE DOT.COM ERA The emergence of the “new economy” at the beginning of the ’90s was linked to the lightning effect of the stock market of emerging dot.com companies, such as Netscape Web browser and online book retailer Amazon, as well as the rapid development of NASDQ - American indicators for tech stocks. Despite the collapse of the dot.com era in 2000, the new economy has continued to add great importance to ideas, immaterial property, and the significance of the role of creativity and knowledge.

The new economy is based on anothjects, where everything is possible and no of American capitalism brought hope er important factor - exploitation of the boundaries exist. that it would bring about the opening common good. Thanks to the voluntary Most exchanges at the festival proof new markets, merging contemporary and free introduction of content - text, ceeded by a simple exchange of what the economic, political and cultural trends. images, audio and video recordings that participants brought with them, while This vision was guided by the exset a daily basis for the common good, for actual money festival-goers could pansion of the internet and information modern technology companies technology. In 1985 the first increate services that are supternet domain was registered Owners of the largest companies posed to help continue contrib- symbolics.com. Owned by spend tens of thousands of uting to the enrichment of the Symbolics, from Cambridge, euros on the festival and arrive in small, independent group of Massachusetts, it marked the private jets and helicopters, where modern techno capitalists from beginning of the dot.com era.

Silicon Valley.

From the late ‘80s to the they are awaited by prepared IT engineer Michael Favor, first decade of the 21st centuluxury, comfortable camping and who worked on the project ry, the Burning Man festival extravagant motor homes with with Google Maps in 2006, brought together enthusiasts, electricity and air conditioning explained that “the power of counterculture artists, IT enGoogle actually comes from gineers, “techno utopians” of the fact that employees do not do all only buy coffee or ice. Great artistic Silicon Valley, lovers of DIY culture, but the work. Users of Google are in fact the structures that emerged during the fesalso all those needing to “escape”, durmain producers, because they activetival vanished in flames at the end, intering seven days in September, into a world ly upload content that Google only disactive art and music events and cheap of creativity, new vision and new procordeditorial@cma.rs |

120 October 2014 | 55

tributes. “The same situation occurs THE CREATIVITY in the Black Rock desert. “Burners”, as FACTORY OF A NEW ERA the veterans of the festival call themWhilst mass production in factories selves, in fact voluntarily participate was synonymous with the industry of in the testing of numerous innovative the 20th century, production today takes gadgets with amazing designs that are place in an entirely different place, in the produced in small creative factories Black Rock Desert, for example. in Silicon Valley. Of course, it’s all for Since its very inception, the festithe common good, in the spirit of the val has had a strong connection with Burning Man community.

Silicone Valley that has evolved over In the past five years “techno busitime. Creative people from all over the nessmen” have become regular visitors world now come to “Burning Man” to to the festival. Their start-ups have benetwork, meet new business partners come very successful companies that and conclude multimillion-dollar busimainly operate online as part of a widness deals, while art installations have er spectrum of creative industries. become part of experiments for future Besides the aforementioned Silicon innovations of techno gadgets and onValley, strong stages for technology line services. “Burning Man” hosts the start-ups are located in Tel Aviv, London techno industry that meets the same and Berlin. The idea kind, smart, active colcontinues to spread laborators and free Like their throughout the world. thinkers who are atpredecessors in The creative intracted to the chalearlier centuries, dustries host a mullenges of the desert to who invested in titude of different create something new freelancers, from adand unique and rerailroads, steel, vertising, architecspect the needs of the banking and ture, design, IT, pubbusiness environment. oil, these new lishing, multimedia, Black Rock Desert entrepreneurs use City provides a great radio, television and fashion. These protheir creativity and opportunity for unfessions deal with tested gadgets to be vision to create members of the new exposed to the most new technologies economic “creative extreme environments for an efficient class” and, according imaginable and shared to economic theorist among unusual stakefuture world Richard Florida, are holders. It was in this marked as ‘drivers of development’ in desert that early versions of Google the 21st century.

Maps and the first Tesla cars were presented. In recent years, unmanned airOwners of the largest companies craft have been tested and are gaining a spend tens of thousands of euros on wide variety of applications worldwide. the festival and arrive in private jets The first man of Google, Larry Page, and helicopters, where they are awaited said at the 2013 “IO event”, which had by prepared luxury, comfortable campbeen intended for developers, that “the ing and extravagant motor homes with festival needs to have separate zones electricity and air conditioning, along where their technicians can check new with a wide selection of excellent cuithings and immediately see the reacsine. Costumes and techno gadgets are tion of the people, instead of executalready prepared in advance by their ing that through regular marketing and assistants and it is up to them only to commercial channels.” show up and have a good time. Most Entrepreneur and investor Tony of the world’s media estimate that this Heishi, founder of Zappos, has invested year’s “Burning Man” festival was the $300 million in “Downtown Las Vegas”, closest thing yet to a truly planetary which aims to launch the techno startcorporate event.

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120 October 2014 | www.cordmagazine.com

gained much respect. After the financial crisis and major tremors on Wall Street in recent years, this all sounds very encouraging. However, it is not enough to merely want to hold on to a highly moral spectrum, whether that be in terms of industry, politics or religion.

Although the latest billionaires and prominent guests at the “Burning Man” festival want to portray themselves as “saints of American capitalism,” trudging over the host sands of the Black Rock Desert in flip-flops and under hooded sweatshirts, they are mainly young business people who are in actual ELITE OF THE FEW fact quite easily recognisable. Like their California’s Silicon Valley is responpredecessors in earlier centuries, who sible for a third of all investments in invested in railroads, steel, banking and start-ups in the United States. Most oil, these new entrepreneurs use their major IT companies, which have shaped creativity and vision to create new techthe first computer market, and now the nologies for an efficient future world. internet and connected devices, are loThe Burning Man cated in this small arFestival is a phenomenon ea. From transistors and The Burning of modern times. It is microprocessors, via Man Festival is the site of myriad social, Google, to Android – this a phenomenon technological, economarea is home to sproutic and other influencing new technologies and of modern es. As in a mirror image, modern hi-tech services times. It is the festival shows a seethat are famous today. the site of saw, where on one side Apple, Google, AMD, myriad social, a contemporary global Intel, AMD, Adobe, eBay, society displaying very HP, Facebook, Yahoo and technological, fast growth and enrichmany other giants of the economic ment of new techno enIT industry are connectand other trepreneurs, is countered in many ways, but one influences balanced by drastic demore common trait they clines and growing povpossess is that they are erty. This is another face of this gloriall neighbours. ous era of creativity, in which the world What binds these companies togeth- due to inadequate sharing of knowler is not only their location, but their edge, power, resources and wealth high profitability and common motto is faced with a drastic choice between that money really does not matter. those who know and those who don’t.

When Google entered the stock exWith 10,000 new “Burners” evechange for the first time in 2004, its ry year and a drastic change in demofounders, Larry Page and Sergey Brin, graphics, today Burning Man is conwrote a letter to prospective shareholdfronting and struggling with its own ers stating that, over the years, it has growing popularity. Larry Harvey points become the “Magna Carta” of the inout that he is ready for the day that will ternet industry. In it they swear that officially mark the end of the festival.

Google is not a conventional company, For many of the senior “Burners”, but one that aims to make the world a however, that day has arrived. This is better place. Their manifesto and sloevident from their absence from the gan “Do not be evil” and “We want to “Forbes” list and insufficient coping with work with great people” is in line with the flood of new “techno tycoons.” ■ the tradition of Silicon Valley, which has up scene and entrepreneurship in that city. This project has brought new experience and additional projects done for this year’s “Burning Man”.

In spring 2014, when HBO started broadcasting new TV series “Silicon Valley”, Elon Musk (Tesla Motors) commented that the authors were not familiar with Silicon Valley, because they’d never been to the “Burning Man” festival. This shows just how seriously this group of entrepreneurs identify with the festival.

cordeditorial@cma.rs |

120 October 2014 | 57

SPECIAL EDITION

World Markets and Opportunities

NORWAY

2014

INTERVIEW H.E. NILS RAGNAR KAMSVAG, NORWEGIAN AMBASSADOR IN BELGRADE

Entrepreneurship in Everything There is no better sign of investors’ trust than when they reinvest in the same country. That is what Telenor and RAPP Zastava just did, investing a combined total of more than €46 million in Serbia this year. However, in order to attract more Norwegian businesses Serbia needs to improve the rule of law and trust in the court system. This is also one of the areas receiving substantial Norwegian assistance

T

he way Norway is helping Serbia very much resembles the Chinese saying “if you want to help a man don’t give him a fish, rather teach him how to catch one”. From Obrenovac, where entrepreneurs are receiving help from Norway in working out how to restore their businesses after the devastating floods, to local municipalities learning to work together like their Norwegian counterparts, there is one main lesson to be learned: entrepreneurship, self-reliance and innovation are the keys to success. When it comes to fishing, this can be directed from Norway, which taught itself how to become the world’s biggest salmon exporter after starting from scratch four decades ago.

A willingness to try to create something for yourself, to try to develop your own ideas, is very important

62 | WORLD MARKETS AND OPPORTUNITIES | NORWAY

• Your programme of support for SMEs from Obrenovac has just been launched. What does Norwegian flood relief assistance encompass and are you satisfied with the way this process is going?

- Business Club Obrenovac is a part of our project, the Business Innovation Programme, which endeavours to establish a mechanism for mitigating the effects of flood damage on small and medium-sized businesses by helping them in their capacity building and identifying where they can gain assistance to restore their operations. Many of them lost their production equipment and need economic assistance to re-launch operations. We will see also if we can find ways of providing direct support to them.

Norwegian flood relief assistance comes through several sources.

Through the embassy, we initially provided €500,000 to local projects like BIP’s project in Obrenovac, to projects helping local farmers to start up again, improving local flood control measures and helping people pump water from their homes.

We channelled about four million euros through the Office for European integration (SEIO), which will be managed by UNOPS, The United Nations Office for Project Services. The aim is to help rehabilitating public buildings - schools, nurseries, cultural institutions in a number of the municipalities hit by the flooding. The Serbian government is doing its best to make the procedure very transparent. At the same time, it is also important to repair damaged public buildings as quickly as possible. We are impatient by nature and want to see the project progressing.

• The floods briefly interrupted the reform process in Serbia, but the government recently passed a package of reform legislation and announced a programme of fiscal stabilisation.

How do you rate these measures?

- Much of the legislative initiatives the Prime Minister announced when he presented the government’s programme have been launched in time.

As with all legislation, however, final judgment will depend on implementation. The measures connected to

fiscal consolidation have been postponed several times. I think this indicates that it is difficult to find the right balance between measures to achieve necessary fiscal consolidation and measures to encourage growth. Moreover, preventing adverse social effects is also an important consideration. However, it’s important not to delay decisions further because the more the deficit grows, the longer it will take to turn around negative macroeconomic trends. Unfortunately, given the severity of the situation Serbia is facing, tough decisions are necessary to create brighter economic prospects for Serbia.

• Turning the trend around also means attracting new investment.

Telenor is the largest foreign investor in Serbia, but the list of Norwegian companies operating in Serbia is still very short. How can Serbia interest Norwegian investors?

- Telenor invested €40 million this year alone, while RAP Zastava is investing more than six million euros.

The fact that Norwegian companies already present in Serbia decide to make new, substantial investments here is a very strong vote of confidence in Serbia’s economic future.

Telenor’s investment is very important, because they’re introducing new technology for banking that opens a whole new avenue of possible technologic and economic development.

It also means stronger competition in the banking sector, which should be very beneficial for the customers. Furthermore, that platform could help reduce cash transactions, which could also increase transparency and help the government fight corruption, the grey economy and tax avoidance.

• But it must be said that, when Telenor came for the first time, everybody thought that it would serve as a good example for other Norwegian companies to follow and that didn’t happen. Why? - There may be several reasons for this: - Explaining factors may be both the general economic climate and

also the risks perceived in investing in a relatively small market, such as Serbia’s, which is not well-known in Norway. Perceptions of the status of rule of law in Serbia and the region in general also influence investors. I am not talking just as an ambassador, but also from my own experience in private business – a few years ago I was working in the management of Norway’s biggest industrial company.

For us, and we invested globally, it

Before Serbian people start to trust the courts we cannot say that judicial reform has been successful

was more important to have a court system we could trust than to receive tax breaks when we were deciding on where to invest. Having said that, developments over the last few years in Serbia – first and foremost in terms of progress in Serbia’s EU integration process – will help increase investor trust in the country’s regulatory framework and the rule of law. Thus, I trust that foreign investors, including Norwegian investors, will gradually find the Serbian market more attractive.

- The structure of our businesses is such that there are not so many production companies, for whom Serbia and the region will be the most natural place to locate a production plant. We are big in areas such as oil and gas, offshore equipment, metals and fishing.

- We have big energy companies that are following the Serbian market closely and are interested in investing here. Although they have not invested in Serbia yet, they have invested heavily in other countries in

the region. For instance, Statkraft, the biggest producer of sustainable energy in Europe, invested more than a billion euros in Albania, and more than a billion in Turkey.

- In addition, Norwegian investors are much more likely to invest in markets they know, such as Sweden and Denmark, precisely in the same way that it is much easier for companies from Slovenia and Croatia to invest in Serbia and vice versa, because they know the market well.

• The foreign trade exchange between Norway and Serbia is at a low level, though exports to Serbia continue to grow, albeit from a low base.

What are the key obstacles that stand in the way of better cooperation?

- Realistically, there is much greater opportunity for Serbia to export to Norway than the other way round. And I think there are encouraging developments. Serbian exports to Norway tripled last year, albeit from a low level (from €10 million to €30 million).

What was particularly encouraging was that the growth was in a wide spectrum of areas. We have small success stories, like honey exports, where Serbia advanced in two years from zero to capturing 30 per cent of the Norwegian market, partly because of our project to support producers and exporters in Serbia. There is also huge potential for Serbia in areas like the export of agricultural products, processed food, cars and furniture. We see that Serbian exporters are becoming more professional, focusing on knowing the Norwegian market better. That is probably one reason why Serbian exports are growing and why it is possible that this positive trend can be further strengthened.

• What are the areas in which Norway is supporting Serbia?

- Our focus areas are rule of law, administrative reform, security sector reform, energy and environment and economic development.

Regarding economic development, I like to mention our focus on furthering entrepreneurship. The will-

NORWAY | WORLD MARKETS AND OPPORTUNITIES | 63

ingness to try to create and develop something for yourself is very important. A strong spirit of entrepreneurship is crucial for successful countries in a world where markets and products are developing faster and faster and where competition is getting tougher. An effective and transparent government is a key factor for economic development, but the government doesn’t invent, doesn’t develop technologies and doesn’t shape the market.

• Norway provides continued assistance to Serbia in the reform of public administration, the judiciary, strengthening regulatory bodies and other areas. How satisfied are you with progress in these areas?

- I think our results are varied. In some areas we see good results, while in others it is harder to identify lasting results. Capacity building is particularly difficult to assess when it comes to lasting results. However, in this context I would mention our support for independent supervisory bodies, which I think has contributed to the very positive development we see for many of these bodies.

On Monday [8th September] we signed off on a project worth half a million euros for forensic training and equipment for the police in Belgrade. This is part of a project where Norway has spent more than three million euros to support the construction of forensic laboratories in Serbia and the training of experts, something which we think has enhanced Serbian capacities in this area substantially. A number of similar examples could be mentioned.

Let me also mention a couple of other projects: for a number of years our national mapping authority has been involved in helping Serbia with aerial photography to help make better maps, but first and foremost to make good cadastres. Reliable cadastres are important for economic development, since any uncertainty over ownership can represent a huge barrier preventing investment.

When it comes to the environ-

ment, let me mention one project with Norwegian company Emisoft, which established an Environmental Accounting and Reporting system. This system is part of Serbia’s Environmental Management Centre, which provides services to both private companies and public bodies. In particular, large companies will be able to have the system customised to their environmental reporting requirements, ensuring their compliance with regulations, transparency and traceability

Telenor’s investment is very important, because it opens a whole new avenue of possible technologic and economic development

64 | WORLD MARKETS AND OPPORTUNITIES | NORWAY

in their reporting. This is an important part of Serbia’s EU obligations in the environmental field.

• Are you satisfied with the results of reforms? It seems that there is no visible progress in judicial reform?

- When it comes to judicial reform I think the only real test on whether reforms are successful is whether the trust of the people in the courts is high. Polls show that the trust in the courts continues to be very low in Serbia, and as long as that is the case we cannot say that the reforms have succeeded. The lack of trust in the court system is also a challenge to furthering economic development.

Having said that, I think we have had success in projects supporting the modernisation of courts. This includes the refurbishment of buildings, increased and better use of ICT and training judges.

• You are very active in helping Serbian municipalities and civil society

to become factors to improve their local environment...

- Norway has a decentralised government and Serbia has a very centralised government, but we both have many of the same challenges. That is why we have tried to share experiences. One shared challenge is the large number of municipalities, some of which are very small. Small municipalities have challenges in delivering good, costeffective services in all areas. In Norway we have a very advanced system of cooperation between municipalities, which has facilitated the delivery of such services. Serbian mayors participating in the project seem to have found inspiration from some of the solutions found in Norwegian municipalities. The project also focused on solving problems by doing things smarter together, instead of focusing on gaining extra funding from Belgrade.

• How much does the cultural exchange contribute to strengthening relations between Norway and Serbia?

- Cultural exchange is the best way of increasing understanding and knowledge between countries and here we do have a number of interesting projects. The biggest project we are presently funding is the Tutti project, which is bringing Serbian musicians together with Norwegian artists and artists from other countries in the region and beyond. We are supporting the Great school of Ljubiša Rajić, which deals with high education, literary translation and social and cultural activism through a series of public talks, movies, lectures and presentations. We have supported the rejuvenation of Felix Romuliana, an important part of Serbian heritage. Later this month there will be a fashion show, Ethnopoeia, bringing Viking-inspired fashion by Norwegian-Serbian designers. Other recent projects have included support for an exhibition of anti-war caricatures to commemorate World War I. We also presently have well-known Norwegian painter Kenneth Blom participating in a group exhibition in Belgrade called “Transformation”. •

NORWAY: ECONOMY

Economic Bliss Norway's social and economic diversity and prosperity ranks it as a forerunner in economic freedom and classifies it as the second wealthiest country in the world

T

he key to Norway’s flourishing economy is its developed state and private sectors, as well an extensive social welfare system. Its mixed economy allows for freedom within markets with state regulation and ownership. Over the years this has enabled incredible economic growth resulting in the Norwegian public sector displaying one of the highest percentages of overall gross domestic profit.

Rich in natural resources such as minerals, forests and hydro-electric power, Norway offers a strong selection of export goods. Crude oil production plays a vital role in state income and, with petroleum as its key asset, it contributes to the largest portion of export yield and about 30% of government yield. It is also the world’s third-largest exporter of natural gas and fifth largest oil exporter. Norway’s oil exports constitute more than 20% of GDP and make up 50% of the country’s exports. Government-owned resources, such as petroleum, are under conjoined ownership. This means that the government has control over such resources through a combination of state ownership in major operators in the oil fields (with approximately 62% of ownership in Statoil in 2007) and the fully state-owned Petoro, which has a market value worth about twice that of Statoil, and the State’s Direct Final Interest.

The Government Pension Fund was established in 1995 by the Norwegian government for the senior population and to alleviate any possible economic friction. Also known as the sovereign wealth fund, it is primarily funded by oil revenues, as well as additional income from sales revenues, taxes, dividends and licensing fees.

Norway’s Government Pension Fund reached one of its prime successes in

It is estimated that the Government Pension Fund will reach US$800–900 billion by 2017, making it the largest capital fund in the world March 2011 when its controlled assets were valued at approximately US$570 billion. This meant that GDP per capita was a staggering US$114,000, which is about 140% of Norway’s current GDP. It is estimated that the Government Pension Fund will reach US$800–900 billion by 2017, making it the largest capital fund in the world.

Alongside the Abu Dhabi Investment Authority, it is now the world’s second largest state-owned sovereign wealth fund. The fund controls approximately 1.25% of all listed shares in Europe and more than 1% of all publicly traded shares worldwide. This straightforward investment scheme gained worldwide recognition for its ethical

principles, one of which included refusal of investment in companies that produced parts for nuclear weapons.

In an IPO in 2000 the government sold a third of state-owned oil company Statoil and a year later the main telecom supplier, Telenor, was listed on the Oslo Stock Exchange. The state also owns significant shares in Norway’s largest bank, DnB NOR, and the airline SAS. Norway has a very low unemployment rate and since its rapid economic growth in 2000 the unemployment rate was not greatly affected by the international financial crises (3.3% or 86,000 people in August 2011) that mainly impacted on the industrial sector. Norway’s hourly productivity levels and average hourly wages are among the highest in the world.

Oil, metal and fish are among the country’s most important commodities and Norway is also the world’s second largest exporter of fish (in value, after China) and the 6th largest arms exporter in the world. Approximately 98–99% of Norway’s electric power is generated by hydro-electric plants, more than any other country in the world.

With colossal sums of cash being invested in international markets, Norway continues to be a top economic power. Its economy continues to be a world leader in trade freedom, investment freedom and overall financial freedom, with entrepreneurship and innovation encouraged. ■

NORWAY | WORLD MARKETS AND OPPORTUNITIES | 65

INTERVIEW OVE FREDHEIM, TELENOR SERBIA CEO

Force Behind Progress On top of investing more than €20 million in network development this year, Telenor has placed €40 million in the first mobile centric bank and is ready to continue to push forward. As such, the company hopes that next year it will be able to start offering 4G network

W

hen the additional spectrum becomes available, the telecommunication companies will start to invest. This will create new jobs and help the Serbian economy restore its growth momentum, says Telenor Serbia CEO Ove Fredheim. “We at Telenor are more than ready to engage in talks with the government and the regulator to push that forward.”

momentum. This, of course, is an overall challenge for the Serbian economy as well.

• Are you satisfied with Telenor’s results in the previous year?

- It is fair to say that it is a somewhat mixed picture. We are growing in terms of our revenue market share, with healthy financial performance beneath that, but what we also see – and this is the same for all telecoms players in Serbia – is that the growth momentum in the industry has diminished; it has become a zero sum game. Under such circumstances, we at Telenor are discussing what we could do in order to fuel growth and restore

In Serbia, for the first time, we are offering that mobile centric fully-fledged bank value proposition and are proud to be an early bird in that business

• Considering that Serbia is in the process of fiscal consolidation, implying salary and pension cuts, how this will impact Telenor’s customers and the company’s revenues?

- If you look at the big picture, then it is obvious that the measures the

66 | WORLD MARKETS AND OPPORTUNITIES | NORWAY

government is considering implementing will, generally, create a challenging market situation. The series of cuts in the purchasing power of consumers in Serbia is also likely to have an impact on us. However, having said that, we are in a sector that is somewhat resilient to general erosion of purchasing power.

• Telenor has already moved in a new direction, the banking sector. What will the new bank bring to that sector in terms of banking services and IT solutions?

- Serbia is a connected society. Tablets and smartphones are widespread and around 40 per cent of users have smartphones. So, on the connectivity side, society is very advanced, but if you look at some of the services attached to that, they are much more old-fashioned, banking being one of them.

The level of online banking is low and, we also see the potential in the user friendliness of the online banking solutions.

Therefore, we saw one opportunity to engage there, under the assumption that the interface we have is a preferred user-interface when it comes to basic consumer transaction in banking.

We have the ambition to develop this new initiative and hope it will deliver a healthy financial performance

in times ahead. We also, however, want to challenge the other banks to join us on this road, if you like, by building similar type of mobile-centric banking solutions, so that consumers in general take their banking onto this interface.

• What are the services you are going to offer through Telenor banka?

- Our core value proposition is a current account consisting of multiple currencies with the debit card attached to it. That is the initial offering, but with the world class user interface getting onto your bank account. The initial contract with the client requires signature, but then, ever after, the customer should be able to manage his or her account and to do basic transactions online, establish payment of invoices from utility providers and do currencies exchange, make basic payments, on his own. This is the starting point and, of course, later down the road there will be more: we will offer a service account and there will be credit cards. We will also start with some smaller loans.

At this point we are concentrating on private individuals, consumers and, of course, later on we might move into, perhaps, small companies, but not into the business of funding their operations, rather related to their everyday transactions.

• Do you think that other operators are going to follow your lead?

- Financial services are a part of Telenor’s corporate strategy. What we have been doing so far has mostly originated out of Asia, and with a different flavour focused mostly on basic cash payments to rural areas. In Serbia, for the first time, we are offering that mobile centric fully-fledged bank value proposition and are proud to be an early bird in that business. During this year alone we’ll know whether other telecoms players are following. We have seen a couple of examples in other countries, Russia, Poland and the Czech Republic, and

you will see more and more mobile companies moving in this direction.

• This is the second time Telenor is investing in Serbia. Was it different this time,now that the company has good knowledge of the country and the market?

- This year we are investing in excess of 20 million euros in building the network. On top of that, we are putting 40 million euros behind our

to obtaining a greater spectrum and establishing the 4G network, which we have already had in Montenegro for more than a year. We are very much engaged in that. I think that’s important for Serbian society, because once the additional spectrum becomes available telecoms firms will start to invest and that is good for the economy and the creation of new jobs.

• In which areas do you see further development of Telenor’s operations in Serbia?

- Around 40 per cent of all our mobile customers have smartphones and we expect these numbers to double in a few years’ time with 60 to 80 per cent of consumers having smartphones in 2017. This will be how the six million people in Serbia connect on the internet, do their Facebook activities, banking and many other things. It is a very significant journey that involves us really getting the kind of data connectivity that is needed to pass through seamlessly.

We see mobile telecommunications as part of the solution for Serbian society to restore the economy’s growth momentum banking initiative. And this at least demonstrates our firm belief that, in the longer term, there are good business opportunities in Serbia. We are strong believers in Serbia.

• What’s in store next for the telecommunications sector in Serbia?

- As mobile connectivity is going from being voice-centric, to being data-centric, we need a greater spectrum. In this respect, in the short term we are talking about something called technology neutrality, which will then allow us to deliver 3G and UMTS communication protocols, on the 900 bandwidth spectrum. Serbia is lagging behind in that a little bit, but we expect it will become a reality in a couple of months’ time. In the longer term, we are looking forward

• What is Telenor’s contribution to the development of the telecommunications and IT sector?

- We are a good corporate citizen in every aspect of what we do. Mobile phones are embedded in the everyday life of every person and every company and thanks to companies like ours, there is a safe internet, with all kinds of filters, spam filters and similar, allowing safe surfing for kids and others.

In the longer run, advanced, modern telecommunications are a tool for Serbia to improve the economic situation. We have so many smart IT heads here in Serbia and having broadband activity at an affordable price would allow them to engage with the global internet community.

Building the necessary infrastructure is a part of that and, as I said, Serbia is lagging a little behind at present.

At Telenor we are more than ready to engage in talks with the government and the regulator in order to push that forward. ■

NORWAY | WORLD MARKETS AND OPPORTUNITIES | 67

Norway is one of the world's richest countries per capita. It has the world’s largest sovereign wealth fund, valued at $884 billion.

Norwegian society today is based on values such as democracy and freedom of expression and features a strong feeling of fairness and egalitarianism. Honesty, tolerance and care for others are also specific values that are highly appreciated in Norwegian society.

Since the first licences were issued for the extraction of oil and gas from the North Sea in 1964, about 42 billion barrels of oil had been produced by the end of 2013. It is estimated there could be up to 24 billion more in untapped reserves.

The Norwegian economy is a prosperous mixed economy, with a vibrant private sector, a large state sector, and an extensive social safety net.

From the 8th to the 11th centuriesw Vikings ravaged the coasts of northwest Europe and were ruled by local chieftains. Olaf II Haraldsson, who became the first effective king of all Norway in 1015, began converting Norwegians to Christianity.

Sled dogs were probably one of the first means of transport that were used in Norway in order to travel through snowy terrain. Finnmarkslopet is the longest sled dog race in Europe. Today there are more than 170 teams representing 130 countries.

Norwegians have one hot meal a day and it is dinner. Fish dominates Norwegian cuisine. Breakfast is an important meal that is rich and filled with cheese, fish products, eggs and jam.

The Sami represent the oldest culture in Norway and the their churches are the most important Norwegian contribution to European cultural heritage. Their culture has been developing in Northern Scandinavia since the arrival of the first people 11,000 years ago.

ECONOMIC COOPERATION

Great Room for Growth in all Sectors Norway is a highly developed country with strong industry and a growing service sector, which is characterised by openness to international economic trends, but also a large state share in key industries. It is among those at the very top of the list of countries ranked in terms of gross national income, and elsewhere in the world according to GDP per capita, behind Luxembourg

F

rom the year 2000 until today the bilateral assistance provided to our country by the Government of Norway has reached in excess of €250 million. To date some 650 cooperation agreements have been signed and numerous projects implemented. Serbia’s European Union integration process is in the primary focus of support from this country.

Norway is ranked 36th on the list of countries where Serbia’s export products were sold in 2013.

At the same time, Norway was 54th among the 204 countries where Serbian imports are sourced. Norwegian participation in total trade in 2013 amounted to 0.2 per cent of exports from Serbia and 0.09 per cent of total imports.

FOREIGN TRADE EXCHANGE • According to the statistics of the RS Customs Authority, goods exported from Serbia to Norway in 2013 had a value of $29.5 million, while imports were worth $20 million • Exports increased by 125% compared to 2012, while imports rose 21.2% • A surplus of $9.5 million was reSERBIA-NORWAY TRADE EXCHANGE,2005-2013, IN USD MILLIONS YEAR 2005 2006 2007 2008 2009 2010 2011 2012 2013

EXPORT 2.6 7.6 10.5 25.1 7.6 7.1 9.1 13.1 29.5

Source: RS Customs Authority

70 | WORLD MARKETS AND OPPORTUNITIES | NORWAY

IMPORT 11.4 19.3 17.2 25.2 12.3 15.1 19.9 16.5 20.0

TOTAL 14.0 26.9 27.7 50.3 19.9 22.2 29.0 29.6 49.5

BALANCE -8.8 -11.7 -6.7 -0.1 -4.7 -8.0 -10.8 -3.4 9.5

corded on the Serbian side, while the existing coverage of imports by exports was exceeded by 48.2 per cent in 2013 • Serbia mostly exported the following products: general food products; winches; parts and accessories for chassis, other related items; soy beans; honey, natural; toothed friction gearing; fuel, kerosene type; other ammunition and parts thereof; paper and cardboard, plastic-coated, other; blackberries and mulberries, frozen, sugar free – Source: RS Republic Institute for Statistics • Imports were dominated by salmon, fresh or chilled; unclassified goods; Polyethylene of a specific density less than 0.94; notepaper, mechanical fibre> 10%; stranded wire, cables, insulated aluminium; sanitary

SERBIA-NORWAY TRADE EXCHANGE, IN USD MILLIONS

STRUCTURE OF IMPORTS FROM NORWAY TO SERBIA IN 2013

35

29.5

30

Mineral fuel and lubricants 23.8

25.1 25.2

25 19.3

20 15

11.4

10

19.9

17.2 12.3

10.5

7.6

7.6

19.97

Chemical products 21.3

Food and livestock 23.8

16.5 13.1

15.1 9.1

7.1

5 0 -5 -10

2.6

9.5

-0.1 -6.7

-8.8

-15 2005

-11.7 2006

Export

2007

-3.4

-4.7 -8.0 2008

Import

ware, other; propane, liquid; chemical wood pulp, dissolving; other electrodiagnostic apparatus; mackerel, frozen - source RS Republic Institute for Statistics • Serbia’s largest domestic exporters to Norway in 2013 were: Sојаprotein Bečej, Rap Zastava Kragujevac, LBK livnica Kikinda, Agrotrejding Novi Sad, Medino Krnjevo, NIS Novi Sad, Prvi Partizan Užice, Tetrapak Belgrade, Mega frukt Belgrade, Agardi Subotica • The top ten importers during the same period were: Skvadra Belgrade, Hemofarm Vršac, Rap Zastava Kragujevac, Euromodul Nova Pazova, Energoprojekt oprema New Belgrade, Euro gas Subotica, CPS Belgrade, Agrimatko grup Dipkom Novi Sad, Metro Cash&Carry Belgrade, Milan Blagojević Lučani • During H1 2014...

INVESTMENT According to the statistics of the National Bank of Serbia, direct cash investments from Norway during the 2005–2013 period reached €1.3 billion. This amount is primarily related to the purchase of mobile operator Mobi 63 by Telenor in 2006. This remains the largest single investment in Serbia ever. For many years Norway has been ranked as the second largest investor in Serbia, just behind Austria.

In 2006 company RAPP Marine Group purchased the enterprise

2009

2010

Raw material, except fuel 4.5

-10.8 2011

2012

Products classified by materials 19.7

2013

Machinery and transportation equipments 22.5

Total

Zastava Mašine from Kragujevac. This company today operates under the name RAPP Zastava and represents an example of a successful privatisation in Serbia. With the purchase of Gruža company 21. Oktober, which was under reconstruction, RAPP Zastava expanded capacities with the intention of becoming the manufacturing cen-

ditional €3.5 million in the modernisation of production capacities in Serbia.

Norway is ranked first on the basis of the individual value of foreign investment in Serbia and second in terms of total FDI inflow in accordance with the origin of capital in the 2005 - 2011 period, just behind Austria.

tre for Norwegian conglomerate RAPP Marine Group in 2015.

By taking over company Agrana Pak from Zemun, Norway’s Elopak A.S. launched production of packaging for milk and milk products for the market of Southeast Europe in 2005. In the last two years Elopak has invested an ad-

TELENOR Norway’s largest investment in Serbia is related to the purchase of mobile operator Mobi 63 by Telenor.

In early August 2006 the Government of Serbia and Norwegian company Telenor signed a purchase agreement in which the Mobi 63 and a license

NORWAY | WORLD MARKETS AND OPPORTUNITIES | 71

Elopak Norway, with the establishing of Elopak Serbia, a company producing cartons for milk and milk products Elopak Serbia. In the last two years Elopak Norway has invested around €3.5 million in modernisation. The machine for printing cartons alone required an investment of €1.3 million. This machine has double the capacity of the existing

and Bosnia-Herzegovina, and is soon expected to begin exports to Croatia and Slovenia. The rest of the production is sold on the domestic market, in almost all dairies in Serbia. The company is also considering the production of packaging for juices that are normally produced in Elopak factories in other countries.

The packaging produced by

ELOPAK Another significant Norwegian investment is the investment of

equipment and Elopak Serbia can now print up to 400 million packaging units annually. The remaining investments are related to the replacement of old bottling plant equipment at three Imlek dairies.

Elopak Serbia exports about 35% of total production to Greece, Estonia, Bulgaria, Romania, Great Britain

Elopak is made according to high environmental standards, is recyclable and has minimal environmental impact. Ekopak, which currently employs 55 workers in Serbia, has been operating in the country for ten years and, since 2005, has been wholly under Norwegian ownership. ■

DIRECT NORWEGIAN INVESTMENT IN SERBIA 2005 -2013

FDI IN SERBIA,2005 –2011, IN EUR THOUSANDS

for the provision of services and mobile phones was handed to the Norwegian national company for a price of €1.513 billion. This is still the largest single foreign investment in Serbian history.

Telenor was the only bidder in the tender for the second fixed telephony operator in Serbia, for which it offered €1,050 million for the license, which was awarded following an official decision in February 2010.

RAPP ZASTAVA Companies RAPP Marine Group bought enterprise Zastava Mašine from Kragujevac in 2006. This company today operates under the name RAPP Zastava and represents an example of a successful privatisation in Serbia. RAPP Zastava manufactures parts for ships, machinery and oil platforms, which are produced entirely for export.

By purchasing part of 21. Oktobar, a company under reconstruction from Gruža, RAPP Zastava expanded its capabilities with the intention of becoming a major production centre for Norwegian conglomerate RAPP Marine Group by 2015. According to the management plan, in the future further investments will be realised in equipment and facilities at RAPP Zastava, with the aim of doubling the company’s production levels.

Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total

Net investment in cash, EUR thousands 24 1,296,061 2,326 4,025 -526 1,567 953 3,451 3,535 1,311,416

Source: National Bank of Serbia Note: The NBS receives data on foreign direct investment (FDI) from commercial banks, which means that the data is based on foreign investments in money received by the country of payment, and not necessarily the country of investment.

Moreover, data on direct investment by Norway for 2006 does not include the purchase of licenses for Telenor in the amount of $410 million or for the purchase of the third license from Austria in the amount of $425 million.

72 | WORLD MARKETS AND OPPORTUNITIES | NORWAY

Rank 1 2 3 4 5 6 7 8 9 10 11

Country of origin Austria Norway Greece Luxemburg Germany Italy Netherlands Russia France Slovenia Switzerland

Net FDI in cash 2,292.565 1,305.430 1,286.725 1,152.542 1,059.939 846.765 838.132 534.969 467.062 445.837 355.744

Source: National Bank of Serbia Most significant representative offices and companies from Norway on the Serbian market: TELENOR - telecommunications, ELOPAK - environmentally friendly packaging for liquid food and drinks, NTE - energy, RAPP ZASTAVA - shipbuilding technology, TECHNOR ENERGY AS - Energy, STATKRAFT WESTERN BALKANS - Energy. *Extract from Profila Norveška - Ljiljana Miletic, independent advisor to OEOI Serbian Chamber of Commerce

CULTURE

Music Knows No Borders Tutti World Music Centre Serbia successfully executed their project “Music as a tool in removing borders” in 2013, with the goal of strengthening cultural and educational relations between Norway and Serbia

F

Jovan Pavlović, the founder of Tutti Serbia, has encouraged a great deal of change in cultural relations between Norway, the Balkans and Palestine. One of the most important projects thus far has been their recent project, “Music as a tool in removing borders.” The Tutti World Music Orchestra is an ensemble comprised of the most talented participants from the workshops held in the last two years. Through running workshops, Tutti Serbia constantly works towards a self-growing network where participants become “ambassadors” of the values upon which Tutti Serbia is based. All projects have received wide media attention in Serbia, and this year in Norway as well. This is of great importance in the promotion of our organization in both countries.

In November 2013, The Tutti World Music Orchestra visited Norway and in cooperation with the Norwegian band Bengal, organized a music seminar that was held in the city of Trondheim. They held four concerts in the cities in the areas of North and South Trøndelag.

The main activity of Tutti Serbia is organising international, multi-cultural and multi-ethnic musical workshops. From the time of its estab-

lishment until the end of 2012, Tutti Serbia achieved its first goal, namely to open a world music center in Serbia which is now known as “Serbia World Music Centre”. Participants in these workshops living in Serbia had the chance to cooperate with various professional musicians from various

The main activity of Tutti Serbia is organising international, multi-cultural and multi-ethnic music workshops cultural backgrounds. The main focus was to include participants from Norway, former Yugoslavian republics and the Balkans. The cultural and ethnic diversity of the participants as well as the process of their bonding through music workshops and concerts, make this project unique and therefore very attractive to musicians

from all around the world.

Tutti Serbia has established cooperation with many leading cultural institutions in Norway, such as Rikskonsertene, Førde festival, Music Conservatory in Trondheim, the Junior Soloists and Trondheim Soloists, Jazz Fest, “Musik og ungdom” and more than 30 cities and municipalities in Serbia. Direct cooperation with cultural institutions and artists from Norway and Serbia provides a basis for a productive, stable and long-term cooperation in which Tutti Serbia plays the role as an organiser and intermediary for cultural events.

Tutti Serbia strongly believes that constant participation in projects such as these contribute even further to the cultural and educational co-operation between Norway and Serbia and promote both countries worldwide in the best possible way. ■

NORWAY | WORLD MARKETS AND OPPORTUNITIES | 73

NORWEGIAN PROJECTS IN SERBIA

No Taboos for the Kings of Serbian Satire

The Zemun Church

Njuz.net enjoys the freedom to transform news into make-believe stories that offer an absurd and often fun interpretation of Serbian politics and society.

Njuz.net, which has received financial support from the Norwegian Embassy, does not seem to have any taboo topics. For more than three years now, the writers of Njuz.net, so-called Njuzovci, simply make stuff up out of thin air to please their audience, but also point to some important issues in the society as a whole.

It all started in October 2010 when a group of six thirty-somethings spontaneously came up with the idea to make Serbia’s version of the Onion.

Njuzovci were accused of protecting some while exposing others to satire.

The breakthrough for Njuz.net came two months after the official launch, with the now famous story of a Serb called Dragan Stević who supposedly killed a shark by jumping off a cliff in Egypt’s Sharm El Sheikh. The imaginary story, which is among the top five most read stories on the website, with several hundred-thousand hits, was inspired by shark attacks on tourists in Egypt.

In 2013 Njuz.net went on TV, launching a show called 24 minuta, which is broadcast on TV B92 every Sunday night. It is the Serbian version of the popular American political comedy and fake news TV show, The Daily Show with Jon Stewart.

Njuz.net now receives about 30,000 hits daily and has so far published two books, as well as appearing in the print edition of daily newspaper Danas and radio stations Novosti and Index, while 24 minuta is the most popular TV show on B92.

The Roman Catholic Parish of Zemun has a church in the centre of Zemun that was built in the period from 1785 to 1794. It is dedicated to the Assumption of the Blessed Virgin Mary and although it has been renovated several times it once again requires attention.

Its initial purpose was to serve the people who were quarantined upon arrival in Zemun. During the time of war in the region, in the 1990s, this church was targeted by various extremists and it was closed for use from 1991 to 2006. In that period it experienced deterioration. The goal is to restore the façade and roof, as well as the immediate surroundings of the church of St. Rocco. Since 2006, when it was partly reopened, the liturgy has been served every first Sunday of each month. When the refurbishment project is completed, Mass will be held every Sunday and various ecumenical encounters will also be organised.

Better Equipment and Training for Forensic Experts The National Criminal Centre of the Serbian Criminal Police in Belgrade will receive new, modern equipment necessary for forensic analysis. This is according to a project entitled “Strengthening of forensic capacities in the domain of micro traces and elemental analysis,” supported by the Embassy of Norway.

Project manager, Nataša Radosavljević Stevanović, said that the total value of the project stands at €695,467. Norway has provided €625,647, with the remainder to be funded by the Serbian Interior Ministry.

She explained that micro traces, or so-called “silent witnesses”, represent sensitive and almost invisible evidence that perpetrators are not aware of leaving behind. Jannicke Bain, Deputy Head of the Norwegian Embassy in Belgrade, said that Serbia and Norway have a common interest in fighting crime and that the implementation of this project would contribute to this goal. The project, which will last for the next two years, represents the continuation of the Interior Ministry’s cooperation with Norway in this field.

74 | WORLD MARKETS AND OPPORTUNITIES | NORWAY

Beekeepers Receive Training and Beehives Beehives were handed out to participants of the beekeeping training organised by the Executive Board of the Association of Beekeepers’ MLAVA Petrovac. The ceremony was organized in Elementary school “Mladost” in Petrovac and the event attracted the attention of local media; TV “Mlava” and “RUF” as well as Radio “Petrovac”. The activities were part of the Norwegian funded project “Save Her Majesty The Bee”, with the goal of raising the quantity and quality of honey production in the region of Petrovac na Mlavi. The project in Petrovac na Mlavi represented one of the most successful local initiatives in Serbia supported by the Norwegian Embassy.

It was part of the joint efforts of Norwegian companies such as the Business Innovation Programs (BIP), the Norwegian Honning Central and the Embassy itself to create jobs and income through honey production and exports.

Together with the start-up beekeepers, the local school of Agriculture has also received new beehives. All together 80 beehives were delivered to beekeepers in Pozarevac in June. The event took place at the school of Agriculture “Sonja Marinkovic. The beekeeper start-ups received mentoring from experienced beekeepers which enabled them to establish own individual honey production. Another joyous moment for beekeepers took place in June in Krnjevo when a group of 18 beekeepers from four municipalities of Banicevo also received beehives as a part of the project “Honey Production – Export Chance of Branicevski Region”.

In 2012, based solely on the strength of the reputation and network of contacts that the Norwegian company Business Innovation Programs (BIP) has in Norway and Serbia, an initial 120 tonnes of good quality honey were successfully exported from Serbia to Norway.

Sweet Dreams are Made of This Serbian honey is entering the Norwegian market, hoping to conquer 1/3 of it this year. This is partly the result of Embassy-supported projects for Serbian bee keepers to improve their skills and promote export. A new one-year project supporting honey production as an excellent export opportunity in the Branicevski district of Serbia, was officially opened on 13th December in Petrovac na Mlavi. A series of trainings was launched as a part of “Honey production - Export Chance of Branicevski Region” project in Petrovac. The agenda of the trainings was adapted to participants’ knowledge and experience. The next step of the project was to deliver bee-hives to 35 advanced beekeepers and 76 start-ups.

After the selection process was completed, the handing-out of beehives took place in April and May. This was followed with onfield visits and a mentoring process. These activities enchanced

not only honey production capacities of Branicevski Region, but also enabled beekeepers to maximise yield through implementation of advanced beekeeping techniques and systems.

The partners to the project were the municipalities of Pozarevac, Petrovac na Mlavi, Zagubica, Malo Crnice, Veliko Gradiste and Golubac; the Beekeepers Association “Mlava”; Medino; Honningsentralen (the leader in the Norwegian honey market) and the Civil Society Organization “Business Innovation Programs” (BIP).

The project was funded by the Norwegian Embassy in Belgrade and the municipalities involved, and aimed to increase production and export of honey from the Branicevski region through enhancing expertise and production capacities of existing producers, as well as support youth start-ups. Providing basis for economic development and entrepreneurship were amongst the key areas in Serbia that the Norwegian Embassy supports financially.

NORWAY | WORLD MARKETS AND OPPORTUNITIES | 75

Battle for Green Tara Mountain The Tara National Park, in cooperation with Faculty of Forestry and with financial support from the Royal Norwegian Embassy, successfully conducted an extensive campaign using a modern biotechnological method to control this pest for the first time and thereby saving 60,000 trees.

Droughts over the two past years have been unusually severe at the Tara National Park. Such conditions weakened trees, making them an easy target for bark beetle species. The park’s administration applied for support from the Royal Norwegian Embassy and received a grant of €64,290.

The project resulted in the saving of 60,000 trees. According to the Norwegian Embassy, it is crucial that Serbia allocates funds for future battles in a timely manner and applies appropriate monitoring in order to swiftly alert foresters and decision-makers of possible risks.

Norwegian Ambassador to Serbia, Nils Ragnar Kamsvåg, visited the closing event at the Tara National Park on 12th June, when the results were presented. In his speech he referred to the experience Norway had with bark beetle gradation in the 1970s and ‘80s, and the lessons learned.

Official Opening of Newly Reconstructed Felix Romuliana Ampitheatre The ancient roman site of Felix Romuliana was reconstructed in the period from 2010 to 2011 with the aim of reawakening the initial interpretation of the imperial palace to visitors from the original entrance. However, the grounds in front of the eastern gate were not taken care of and, thus, presented a problem.

In an effort to improve the aesthetics of the surroundings and attract more tourists, the main goal of the project was to restore the amphitheatre just outside the eastern gate of the imperial palace.

76 | WORLD MARKETS AND OPPORTUNITIES | NORWAY

The project was finalised with the help of the Royal Norwegian Embassy in Belgrade and its donation of €32,000. This has, thus, become the most significant project for the National Museum of Zaječar and has also assisted the Ministry of Culture and Information of the Republic of Serbia.

BIP has long experience in the organization and implementation of various business development and support programs, including business plan development trainings and consulting in various business areas, and it is also experienced in project implementation in line with the Norwegian Embassy’s rules and procedures. ■

Rural Tourism Strengthens Family Business in Serbia The Business Development Center Kragujevac, supported by the Norwegian Embassy in Belgrade is fostering the development of rural tourism in the central Serbian region of Sumadija through a project called “Fostering Rural Tourism for Sustainable Local Economic Development.” It has recognized many opportunities and now works on developing rural tourism in the form of small family businesses in rural areas around Kragujevac, Topola, Rača, Knić and Rekovac. Most of the tourists are families and couples from Serbia, but they have also had guests from Slovenia, Denmark, Belgium, Australia, Russia and Israel. As part of the project, families and individuals interested in starting rural tourism business were given training in the areas of tourism as business, entrepreneurship characteristics, marketing and business planning, as well as consulting services. Marija Stojadinović, Director of the Business Development Center Kragujevac, says that the capacity and competitiveness of the households has been improving ever since the project started in November 2013. “In late August, we organized a three-day study visit to Slovenia, where the household owners to learned from the best and connected with hosts in the EU.” A non-formal partner on the project is “Domaćini za seoski turizam,” an association of rural tourism households. In February, participating households from Šumadija presented themselves at the Belgrade International Tourism Fair, and (as all good news spreads fast) the project leaders have been invited to present the project at numerous media outlets.

Post-Flood Technical Assistance for SMEs in Obrenovac

The Obrenovac 2014 Business Club was formed as an initiative of 15 SMEs damaged by the floods. The main idea of the project is to contribute to the normalization and improvement of the business environment in Obrenovac after the severe flooding and to establish a mechanism for mitigating any direct flood damage to the SME sector in Obrenovac through SME assistance and capacity building.

The project, which kicked off in August 2014 (and will last through 31st May 2015), is being carried out by the Citizens Association, Business Innovation Programs (BIP) and its cooperating partner Poslovni Klub Obrenovac (Obrenovac Business Club).

The initial part of the proposed action is to assess the state of individual companies and develop plans for their recovery. The second part will focus on empowering local business associations and initiatives, as well as the municipality, to create projects and programmes to help the local economy cope with the consequences of the floods.

The third part of the project will provide its beneficiaries with administrative and legal assistance when applying for support within different relief programmes.

COMPANY REGISTER ALBATROSS MARINE Branko Zmukic, Director Vrsacka 67, 21000 Novi Sad Tel: +381 21 423875 Fax: +381 21 500101 albatrossmarine.ns@gmail. com www.albatross-marine.co.rs ATOM MG COMPANY DOO Darko Janković, Direktor Jurija Gagarina 227, lok 183 11070 Beograd Tel:+ 381 11 7176 951 Direktor Mob: 00 381 62 96 266 22

atom-mg.com BUSINESS INNOVATION PROGRAMS Bratislav Dobrić, SE Project co-ordinator Kneginje Zorke 11a 11000 Beograd Tel: + 381 63 615 516 bd@bips.no bd@bips.rs www.bips.rs CERAGON SERBIA Nenad Stojanovic, Director Dobropoljska 26-28, 11000 Beograd Tel: +381 11 3699530

Fax: +381 11 3657191 office.serbia@ceragon.com www.ceragon.com ELOPAK D.O.O. Ilija Đenić, Director Batajnicki drum 23, 11080 Zemun Tel: +381 11 71 60 142, 71 60 577 Fax: +381 11 610 83 49 info@elopak.rs www.elopak.rs FOSDALEN Simon Simonović, Director Kralja Petra 70/9 11000 Beograd Tel:+ 381 011 2183 708

Fax:+ 381 011 2183 708 simon.simonovic@fosdalen.rs office@fosdalen.rs www.fosdalen.no HYDRO DESIGN PRODUCTION DOO Sasa Draganovic, Direktor Gornje Sajlovo 63 21000 Novi Sad Tel: +381 64 385 96 17 Fax: +47 66 915 566 www.cormate.com NOVICOM Ivana Manojlović Maršala Birjuzova 3-5 11000 Beograd

Tel: + 381 11 3286 871 ivana.manojlovic@novicom. com www.novicom-nordic.ls.rs RAPP ZASTAVA A.D. Slobodan Milovanovic, Director Trg topolivaca 4, 34000 Kragujevac Tel: +381 34 331986 Fax: +381 34 337077 sm@rappzastava.com www.rappzastava.com www.rappmarine.com ROVEX INŽENJERING DOO Romeo Vulas, Direktor

Bulevar Mihajla Pupina 10z/ NP 26 11070 Beograd Tel: 381 11 311 52 08 Fax: + 381 11 213 68 40 marketing@rovex.co.rs www.rovex.rs STATKRAFT WESTERN BALKANS D.O.O Dragan Vignjević, Director Francuska 17/05, 2nd Floor 11000 Beograd Tel: + 381 11 3038 688 Fax: + 381 11 3038 686 dragan.vignjevic@statkraft. com

biserka.tmusic@statkraft.com www.statkraft.no TELENOR D.O.O. Ove Fredheim, Director Omladinskih brigada 90, 11070 Beograd Tel: + 381 063 9000 Fax: + 381 063 9001 servis@telenor.rs www.telenor.rs TELENOR BANKA AD Martin Navratil, Predsednik IO Omladinskih Brigada 90v 11070 Beograd Tel: +381 63/9005 officebanka@telenor.rs

www.telenorbanka.rs VNG DOO Zorana Brankovan, Direktor Bulevar Oslobođenja 60A/ 5/ 48 21000 Novi Sad www.vng-ns.com ŠKOLA NORVEŠKOG JEZIKA “SAGA” Zorica Nikolić Marković Kneginje Zorke 11a 11000 Beograd Tel: +381 11 24 31 589 Mob: +381 69 220 73 22 zoricanikolicmarkovic@ gmail.com

NORWAY | WORLD MARKETS AND OPPORTUNITIES | 77

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INTERVIEW

■ By Tijana JOVANOVIĆ PETROVIĆ ■ Photo: Zoran PETROVIĆ

Only Pure Emotion

Makes Sense in Film The debut feature film of screenwriter and director Vuk Ršumović (1975), “Nobody’s Child”, produced by Miša Mogorović, from “Art and Popcorn”, won the grand prize awarded as part of the “Week of International Film Critics” festival in Venice, the oldest and one of the most prestigious film festivals in the world

VUK RŠUMOVIĆ DIRECTOR AND WRITER

■ From this perspective, what do you think makes this film appealing to both audiences and critics?

- Films are made for the audience, and our film is no blockbuster. For that very reason, it means more to us that the public and critics in Venice recognised and rewarded our efforts. That does not happen so often – that both critics and audiences are unanhe film also won two critics’ awards from the imous in their decision. Critics now enter into the substance International Association of Film Critics from around of work and deal with all the things that I did not deal with as the world, as well as the award of the Federation of Film the author during the shooting. When you come to realisaCritics of Europe and the Mediterranean countries. The tion of the film, you deal with the story, characters, some tanrecognition earned by Nobody’s Child in Venice marks the greatgible things, and not interpreest success of Serbian cinematations. Reviews are still comtography in this century to date.

With us it is always difficult to ing in and I am very satisfied.

In the early spring of 1988, achieve recognition of success. I A positive review was also pubdeep in the mountains of Bosnialished in “Variety”, which is a toHerzegovina, hunters found a have the impression that it is even tally respected publication when wild boy among the wolves. The more difficult to be accepted here it comes to the film industry. It boy was randomly named Haris than out there is interesting to me that critics and sent to the central shelmainly compare the film to the ter of the former Yugoslavia in movie “Wild Child” (1970) by François Truffaut and that was my Belgrade, where his socialisation was to begin. After the outmain reference during production. break of the war, he was sent back to Bosnia, where he disappeared without a trace of his further fate. This amazing but true ■ The Belgrade premiere of the film will be at Fest. Do you story inspired Vuk Ršumović, a playwright by profession, to expect harsher criticism than domestic critics? write and direct his first film, Ničije dete (Nobody’s Child).

- Yes, with us it is always difficult to achieve recognition of sucAfter a successful start to the Venice Film Festival, the film alcess. I have the impression that it is even more difficult to be ready received invitations to participate in more than 15 festivals accepted here than out there. However, a mitigating factor is around the world, as well as numerous regional festivals. The that the international public and critics recognised the quality Belgrade premiere will be held during the first weekend of FEST.

T

cordeditorial@cma.rs |

120 October 2014 | 79

of the film, and as such the domestic critics will also bear that in mind. On the other hand, I’m much more interested in the reaction of the audience. In our contemporary moment, in which we are so overloaded with mere existence, I think we no longer have the capacity to intellectualise and interpret some empty words. I firmly believe that emotions are the only channel that has remained to connect us as people. I hope that the audience will recognise that.

■ How did you learn about the story of the “wild boy”?

- I heard about the story from my wife Ana Tomović, who is a theatre director and who was doing a workshop at the time for the children of the Vasa Stajić Home in Belgrade, formerly the central shelter for children and youth from all over Yugoslavia.

There she met teacher Dragana Rolović, who told her the story of the boy who grew up with wolves in Bosnia. When the boy, who was randomly named Haris, came to them, they estimated that he was about 10-12 years old. They did not know anything about his background except that he was found by hunters in a wolves’ cave. The prognosis was wrong. The boy was indeed completely wild. He growled and made various sounds, not communicating with anyone. However, during the four years of residence in the home, he learned to speak, made friends and even had his first crush.

As educator Vladimir Rolović spent the most time with the boy, he became my expert consultant on the film.

■ The story about a boy from the wild can be viewed through the spectrum of identity, growing up, becoming a man, the relationship between nature and civilisation, the allegory of the disintegration of a social system. What is most important for you?

- I agree. It is that ambiguity of the story that was important to me. The most important question prompted by the film is driven precisely by the question of belonging on many levels, that the most intimate level, the question of who are the parents of this child that was found in the woods. This is a story about a boy who rediscovers that he somehow does It is a story about the not fit and does not belong. It is a story about the search for identity, it is as search for identity, it is as much personal as it is a very universal much personal as it is a theme of modern man.

very universal theme of modern man

■ People often say that they have had enough of “films dealing with the wars in the former Yugoslavia”.

- Yes, that is correct. And I really believe that people have had enough of the analysis of that period. On the other hand, I have never experienced this as a war movie. However, I think film must be engaged and must reflect our reality. If you’re making movies that take place in a parallel reality and not touch us all, you will not make contact with the audience. I think that context was important for the understanding of the film with the audience. That’s what Nicolo Falccinela, selector of the Venice Festival, said – we have had a variety of films about children from the wilderness, but the novelty is the way in which the context impacts on the life of the main character.

In telling a story, it is always important to think about who the protagonist is and who’s the antagonist. In this case, the antagonist is actually a system. The boy Haris, played by Denis Murić, is actually the ideal point at which things are relativized, showing the absurdity of the social construct of the nation, which led us to the breakup.

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120 October 2014 | www.cordmagazine.com

■ Is the fate of the boy after leaving the home known?

- When the ‘90s came, wars and the disintegration of the country, the boy was determined by inertia as a citizen of Bosnia, because that’s where he was found, and he was sent back there, where he disappeared without a trace. One version of the story is that he died on the battlefield. If he was alive, he would probably now be around my age, so around 40.

■ What was the research and writing process like?

- At the very beginning of development I participated in a B2B - pitching forum within FEST and there one foreign producer asked the question of who the main character of the story was.

Intuitively, having not yet decided, I said it was the boy. She said, “No, you can’t do it like that because that the boy grew up in the woods and we cannot identify with him. It has to be the educator “. That’s when I started thinking about how to reach the boy. I used the notes of François Truffaut, who mostly studied the work of Maria Montessori, an Italian doctor and child educator. I researched similar tales of children without origins discovered in the wild that have happened before, like the boy Victor from Aveyron, discovered in the 18th century.

Such stories are usually approach from a sociological aspect, but my approach was a lot more intimate. I focused on topics concerning affiliation, emotional and the broader social community. That’s why books on developmental psychology were important to me, as well as interviews with psychologists, spe-

cial education teachers and psychiatrists. It was most important to me that I could link that character to different people during his peculiar life journey, and how these relationships form and break up, often violently.

■ This was the first time you found yourself in the role of director. How would you describe your experience?

- There were, of course, many factors that contributed to that decision. I first received support from film editor Mirko Bojović, who was involved in the project from the beginning, and my wife Ana, who both said - Yes, you need to direct it. I suggested that to producer Miša Mogorović from “Art and Popcorn” and told him that he must stand behind me one hundred per cent, otherwise I would not be able to push through with the film. Also of great importance is my really rich theatrical experience. As a student I went to every theatre performance.

I saw how much and in which ways directors work with actors. It is important to give your associates time, space and freedom to express themselves, and for the director to keep that under control and know where he’s going thematically. After the final decision, the choice of associates began, which was most important of all. In the end the best possible team converged, people who believed in the story and experienced my vision for the film.

tant that before shooting we had thorough preparations, where we worked individually and with Denis Murić, the lead, and with the other children. Understandably, we worked with Denis the most, because the scope of our story, from the time when the boy was found among the wolves to the end of the film, follows four years of his life. Overcoming such an acting role would be great and demanding challenge for many professional actors, let alone a child.

■ The character of the boy is very complex, from the very starting point of him compensating for the absence of speech with gestures and facial expressions. How did you evoke his communication?

- In that aspect an important role was played by my colleague, cameraman Damjan Radovanović. When we discussed how we would work at the beginning, I told him that it was most important to make a film that would appeal to us and that we would like to watch. This story is difficult, but we didn’t want to make a grey and pathetic film. Our main character is primarily a fighter. The film needs to show his enthusiasm for life, his desire to find his place under the sun.

He cannot express himself in words, but he’s going through that. That’s why we decided to bring the camera very close to the boy, to be intimate with him, for us to somehow reduce the distance that we have towards the boy and in that This story is difficult, but we didn’t way enter into his world. I think the focus on that pure emotion want to make a grey and pathetic gave the best result.

■ How did you come to Denis Murić, who plays the lead role in the film?

- We had huge casting. I went film. The film needs to show through every primary school in enthusiasm for life and desire to ■ How long did filming last and Belgrade, all drama studios, and what challenges did you enthere I found other characters. find a place under the sun counter?

However, Belgrade’s children are - We started making the film back in 2009 and it took us a too sophisticated and urban to have something animal in them. long time to raise money for the various phases of work.

The date for the start of shooting was fat approaching. We The project is led by production company “Art and Popcorn”, were literally two weeks from starting and we still didn’t have headed by Miša Mogorević. And great help was also providthe lead actor. Then I called the film’s producer, Miša, and told ed by our co-producers “Baboon Production” from Belgrade him what was happening. At that moment he was on the set of and “Kinorama” from Croatia, as well as RTS - Radio Television Goran Radovanović’s film “Enclave” and he said - Look, there’s a Serbia, which got involved at the end of production and enaboy here that you have to see. That’s how I met Denis. For me it bled us to complete this film. But even those funds secured was important that he is physically fit, because most of the role by the co-producers, as well as the funds of the Film Centre of is in that physicality. In addition to that, it was important that Serbia and the City of Belgrade, would not have been sufficient he was imaginative, that he could imagine the situation, to carfor the realisation of this film if it weren’t for the understandry the emotion and be a partner of a professional actor. With ing of my great production team and their waiving of fees. In him I simply felt that, and that was that. any case, the success of Nobody’s Child is the success of the entire cast and crew, and the awards arrived as great satisfac■ What was it like working with child actors? tion for all of us who were sufficiently tenacious and persis- They say that for you first film you should not work with chiltent to bring this film to its conclusion. ■ dren or animals, and Nobody’s Child has both. I think it’s imporcordeditorial@cma.rs |

120 October 2014 | 81

CULTURE CALENDAR LITERATURE

The 59th Belgrade Book Fair, Belgrade Fairgrounds, 10th October – 2nd November The international Belgrade Book Fair represents the oldest and biggest literary event in Southeast Europe. Each autumn the fair presents the complete publishing production in Serbia, Europe and the world. This year the fair’s guest nation of honour is China, which will present its publishing and culture. Participating as the Guest of Honour also provides motivation for translating, publishing and strengthening cultural and friendly ties. In addition to the presentation of publications and writers, the fair also includes the organising of forums, conferences, roundtables and workshops for interested members of the public. Each year also includes voting for the best publisher, best publishing project, best children’s book, most beautiful

of “BDW Premieres”. The topic of this year’s conference is “Sense squared” and it will include the world’s best representatives of the creative industries. It will also mark the world premiere of the new project “100% SERBIA”, which will present a multimedia exhibition of Serbian creative thought in a unique way and, after Belgrade, will travel to ten major destinations around the world. For the first time in its ten-year history, the BDW festival is being held under the patronage of the President of the Republic of Serbia and the Mayor of Belgrade, in cooperation with

the Serbian Chamber of Commerce and with the key support of the embassies and institutions of Japan, the Netherlands, Switzerland, Germany, Mexico and Israel.

Find out more about the event and purchase tickets at www.belgradedesignweek.com/ conference book and the best young book designer. More about this year’s programme and participants is available at www.beogradskisajamknjiga.com

DESIGN

Belgrade Design Week Museum of Contemporary Arts, 6th11th October The most important part of this year’s Belgrade Design Week festival will be the international conference entitled “Brand New World”, as well as a rich programme of exhibitions at the “BDW Designpark”, professional workshops at the “BDW Designlabs” and the city programme

FILM

“Italian film Wednesdays” Cultural Centre Kikinda, Trg srpskih dobrovoljaca 23, throughout October @20:00 During October the Italian Cultural Institute in Belgrade and the Kikinda Culture Centre are organising a review of the latest Italian film productions. The ten films to be screened are all winners of numerous prestigious awards at various international film festivals: Gianfranco Rossi’s “The Holy Grail” – winner of the Golden Lion at the 70th International Venice Film Festival, Emma Dante’s “The Street of Palermo” – recipient of the Volpi Cup Award for the best

30th Belgrade Jazz Festival Dom Omladine 24th – 27th October The opening ceremony of the 30th jubilee Belgrade Jazz Festival will include the performances of a trio of world virtuosos who have for years proven the best on their instruments Danilo Perez, John Patitucci and Brian Blade – integrated into the group "Children of the light trio." Sales of tickets for this and all other concerts of the Belgrade Jazz Festival begin on 1st October at the box office of Belgrade’s Dom Omladine, as well as through the Event Network. Package tickets for the festival’s main programme can still be purchased for the reduced price of 3,300 dinars. Individual tickets for the final night of the festival can be purchased at prices ranging from 1,000 to 1,500 dinars for

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the concert of the Charles Lloyd Quartet at 19:30, at prices ranging from 1,200 to 1,700 dinars for the concert of the Michel Camillo Trio at 21:30, and at a price of 2,000 dinars for the evening programme of both artists.

For more about the festival programme visit belgradejazzfest.rs

120 October 2014 | www.cordmagazine.com

Vlatko Stefanovski & Guests Great Hall of the Sava Centre 10th October @20.00

This concert of legendary Macedonian guitarist Vlatko Stefanovski, organized on the occasion of the 40th anniversary of his stage life and as a concert promotion of his first self-written album in 11 years, "Seir". Stefanovski started playing guitar at the age of 13, before forming the cult band "Leb i sol" as a teenager, with whom he performed worldwide and recorded many albums. Since the mid-90s Stefanovski has developed a successful solo career and has spent the last few years creating music for film, female interpretation, by actress Elena Cotta, and winner of the Special Jury Award at the 19th International Festival of Independent Film in Belgrade, and Paolo Sorrentino’s “The Great beauty” – the Italian “Oscar” for best foreign film, as well as films that won awards at recent editions of the Donatello David Awards (considered the Italian Oscars) and the Silver Ribbon Awards, such as Solitude of Prime Numbers

by Saverio Costanzo, Festive lunch by Giani Di Gregorio and You and I by Bernardo Bertolucci.

More on the films to be screened can be found here http://www.iicbelgrado.esteri.it/

OPERA

Premiere of the opera “Vienna Blood” Main Stage, Madlenianum Opera & Theatre, 5th October @20:00 Transferring a genuine Viennese atmosphere of long ago centuries to Belgrade is a major challenge, particularly since the operetta is not very common in Serbia as a genre. An operetta consists of extensive spoken parts as well as a number of arias, duets, ensembles.

The work “Vienna Blood” requires precision to perfection from all parts of a large ensemble that

theatre and ballet, performing and recording all over the world with top performers.

Tickets can be purchased from the Sava Centre at the ticket office for prices ranging from 1500 and 1800 to 2100 dinars.

For more about this artist visit vlatkostefanovski.com.mk

music was chosen and edited by Adolf Miller Jnr, conductor of the Theater an der Wien.

For more about this event visit operatheatremadlenianum.com

OTHER

Acrobatic show “The Royal Horse Gala Pegasus” Kombank Arena, 25th-26th October @12.00 & 18.00 The Royal Horse Gala Pegasus is a spectacular acrobatic show in which horses from five of the world’s most elite riding schools perform under choreography. The Royal Horse Gala acrobatic show, created be Bavarian Josef Hoffling in 1994, who had spent the previous year travelling Europe in search of the best horses for the show. Hoffling received a personal invitation from Queen Elizabeth II to be part of the celebration of her Golden Jubilee in May 2002, entitled “All the Queen’s horses”, which included the participation of 1,000 horses. Tickets for the unique acrobatic show can be purchased at all CS Event locations and at the box offices of the Belgrade Kombank Arena, the Belgrade Ticket Centre, Dom Omladine, Ušće shopping centre and via the websites www.kombankarena.com and www.eventim.rs. Tickets are priced at 1600, 1900, 2200, 2500 and 3500 dinars. For more about this event visit galaoftheroyalhorses.com

Oplenac Grape Harvest includes a sumptuous orchestra, choir, group of players/dancers and a host of soloists, singers and actors. This operetta was first performed on 26th October 1899, four months after the death of its composer, Johann Strauss II. The

Topola, 12th-14th October For almost half a century, since 1958, Topola has devoted the second weekend of October to a commercial and tourist event dedicated to grapes and wine. In parallel with this event is the Festival of Serbian Folk Creativity, an event that gives a special touch to the Oplenac Grap Harvest and enriches it culturally.

CULTURE NEWS During three days visitors have the opportunity to celebrate the grape harvest in Šumadija, with sampling of wines and rakia brandy also organised. Topola and Oplenac are linked historically to the vine and wine. The founding of the winery of King Peter I Karađorđević in Topola in 1903 led to news of the glory of the Oplenac vineyard spreading across Europe, reaching the courts of other royal families. For more about this event visit oplenackaberba.com

Pumpkin Days Kikinda, 10th – 13th October

Each year in mid-October Kikinda becomes the centre of Europe for several days, thanks to the bulbous and slightly ungainly fruit – the pumpkin. Known as squash, marrow, pumpkin, gourd, only in this part of Vojvodina is it called Ludaja. During the Dani ludaje, or Pumpkin Days, a competition is held to determine whose pumpkin is the longest and heaviest.

So far the absolute champion for length was a marrow of 213cm, while certainly the heaviest pumpkin so far measured in Kikinda weighed as much as 253.4kg. The first day of the event includes various lectures on growing pumpkins, as well as ethno and classical music concerts. The second day sees the start of competitions among caterers preparing various dishes made from pumpkin, a competition in making pumpkin masks, sporting games

and a costume party. The last day sees the awarding of honours to the most successful participants. For more about this event visit kikinda.civilon.com

Sigmar Polke Čolaković Legacy, 15th-31st October

Different Distances Culture Centre Parobrod 9th-29th October A fashion photography exhibition entitled “Different Distances - between fashion photography and art”, authored by five renowned Swedish female photographers, will be on display at Culture Centre Parobrod from 9th to 29th October.

The exhibition introduces the month of Swedish culture “Swe u Svemu”, during which many activities within Swedish fashion, photography and film will be presented to the audience in Serbia from a gender perspective.

Topics that will be highlighted and discussed

are, among others, the importance of supporting female entrepreneurship in society, inspired by Swedish experiences.

The photographers whose works feature in the exhibition are Denise Grünstein, Julia Hetta, Martina Hoogland Ivanow, Julia Peirone and Elisabeth Toll, who all belong to the new generation of Swedish fashion photographers who have made a reputation around the world. Their work can be found in international fashion magazines and art institutions.

The Gallery of Čolaković Legacy in Dedinje is set to host an exhibition entitled "Music of Unknown Origin" by artist Sigmar Polke (1941-2010), one of the most important German artists of the late 20th century.

The exhibition presents 40 gouaches of the artist, painter and photographer Sigmar Polke created in 1996 as a result of collaboration between the artist and the Institute for Foreign Relations.

The creative work of this artist is a direct response to American aesthetic dominance, as well as commentary on the art doctrine of Western civilisation,

Roberto Fabbri Guitar Quartet

Mamutfest

Belgrade, Kragujevac, Inđija & Novi Sad, 23rd-27th September The Italian Institute for Culture in Belgrade organised a series of concerts by worldrenowned guitarist Roberto Fabbri, which were held from 23rd-27th September.

Following the 23rd September concert in the Great Hall of the Ilija M.Kolarac Endowment in Belgrade, Fabbri performed in the hall of the Knjaževsko Serbian Theatre in Kragujevac on 24th September, giving a concert entitled “Passing through Europe.”

The concerts saw Fabbri promote his latest CD “In Your Eyes” (Nei tuoi occhi), which

National Museum of Kikinda 12th-13th September The National Museum of Kikinda hosted “Mamutfest” on 12th and 13th September, an event marking the anniversary of the discovery of one of the most important remains of a mammoth in the world, popularly known as “Kika”. The event dedicated to the celebration of Kika’s birthday includes a series of entertaining and educational contents aimed at children and youth.

This year’s “Mamutfest” has an inclusive character and attracted visitors from Slovenia, Croatia and Belgrade, and for the first time this year the event also included the “mammoth bazaar,” where visitors could buy unique souvenirs.

The remains of Kika the female mammoth, a member of the species Mammuthus trogontherii, were discovered in 1996 on the premises of the Toza Marković factory, one of the largest brick and tile producers in the Balkans, in Kikinda, a town in the very north of Vojvodina.

The festival is held under the patronage of NIS and the Municipality of Kikinda and is organised by the Society to Help Persons with Mental Disabilities of Kikinda, the Kikinda National Museum, the City Office for Youth and many friends and volunteers.

For more about this event visit www.kikamamut.com

48th Bitef Festival 21st-30th September The 48th Bitef international theatre festival was opened at Belgrade’s Dom Omladine Youth Centre by Croatian director Borut Šeparović with the play "Where's the revolution of livestock?", performed by the Montažstroj troupe from Zagreb.

Until 30th September some 13 performances will be conducted as part of the competition for the Mira Trailović Grand Prix, named after the famous director and founder of Bitef, as well as the Special Jury Prize.

Participants include lays from Germany, Poland, Lithuania, Switzerland, Slovenia, Croatia and Serbia. The selector is Anja Suša, while artistic director is Jovan Ćirilov.

The best will be decided by an international jury whose president is Israeli director Lila Decker-Avnery and whose members include Swedish set

designer and costume designer Ula Cassius, Polish theatre critic Witold Mrožek, and Serbian director Ana Tomović and playwright Periša Perišić.

The slogan of this year's festival is "The past is now," while the theme of most plays is in conjunction with the centenary of the outbreak of World War I. Once again there will be the traditional supplementary programmes: Bitef polyphony and Bitef on film, as well as a range of panel discussions.

driven by consumerism.

During his creative life Polke experimented with a variety of styles, themes and materials, while the last two decades of his life saw him focused on historical events and their contemporary perceptions.

He was the recipient of numerous awards, including the "Golden Lion" for painted art at the Venice Biennale in 1986.

The exhibition was created in cooperation with the Museum of Contemporary Art in Belgrade, the Institute for Foreign Relations from Stuttgart and the Goethe Institute.

The exhibition is open every day except Tuesdays, from 12.00 to 20.00.

For more about the author visit www. msub.org.rs

contains original compositions solo composition for classical guitar and compositions for guitar quartet and string quartet instruments.

The Roberto Fabbri Guitar Quartet includes Paolo Bontempi, Leonardo Gallucci and Luigi Sini, together with Robert Fabbri. The quartet was formed in the 1980s, while they were jointly attending courses of Carlo Carfagna and Mario Gangi at the Conservatory Santa Cecilia in Rome.

Roberto Fabbri (born Rome, 1964) graduated in 1986 from the Conservatorio di Musica S.Cecilia di Roma and has participated in the most important international guitar festivals and played in the most prestigious concert halls in Europe, Asia, Russia, South America and the USA, as well as holding numerous master classes.

For more about this artist visit www. robertofabbri.com

cordeditorial@cma.rs |

120 October 2014 | 83

CHILL OUT

Temple Seeks Media Director An ancient Buddhist temple famed for its kung fu monks is seeking media directors to build brand. English and social media skills are required. Applicants are not required to be monks, vegetarian or practice martial arts.

An online advert placed by China’s 1,500-year-old Shaolin Temple has already drawn swift responses, reflecting the institution’s exalted place in Chinese history and popular culture.

Chinese state media reported that 300 people have already applied for the two positions available. This move is the latest attempt by the enterprising abbot Shi Yongxin to exploit the temple’s fame in the name of propagating Buddhist thinking and culture.

Burger With Black Cheese The Burger King chain in Japan has introduced a new burger with black cheese, reported Kotaku.com. The cheese resembles ink-dipped slices of Kraft American cheese singles. But it’s really just cheese made with bamboo charcoal.

The cheese comes on the new Kuro Burger, layered with a beef patty on a black bun made with bamboo charcoal, onion and squid ink.

You can order the Kuro Burger Pearl with the bread, cheese and patty, or the Kuro Burger Diamond with lettuce, tomato, onion and mayonnaise. And in case you’re wondering, the mayonnaise is still white.

Hotel For Cyclists

Did You Know?

Hotel Cycle is a Hiroshima-based lodging, designed by Japanese studio Suppose Design Office, targeting cyclists who want to check-in with their bicycles.

The hotel’s bedrooms are equipped with wall hooks that guests can use to hang their bicycles when they are not using them.

Other than the rooms, the two-storey building also consists of a restaurant and a bicycle and clothing shop.

According to the architects, they used mostly industrial materials like wood, mortar, and steel in their designs, as a tribute “to the city’s shipbuilding history”.

The internet, originally called ARPANet (Advanced Research Projects Agency Network), was designed by the U.S. Department of Defense.

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120 October 2014 | www.cordmagazine.com

Rolling Flower Pot Barcelona-based industrial design studio, Studio BAG Disseny, has designed a rolling flower pot that allows your plants grow to in a manner that is better and healthier.

These waterproof terracotta pots, handmade in Spain’s La Bisbal d’Empordà, are designed with the ability of movement, allowing them to “follow the path of the sun, to sway in the breeze or grow at will”.

With a semi-conical shape, they have the ability to whirl in a circular direction simply by moving the base. This allows more sunlight to shine on leaves, contributing to healthier growth.

Alaska Natives In Video Game

'iPhone Mashup Shoe'

The makers of Never Alone are seeking to make a video game in collaboration with the Iñupiaq Alaska Native group, which is aimed at preserving the culture of native people and communicating it to its youngest members, as well as the wider world.

The title is a major production, financed by the tribe, and is coming this autumn as a $15 downloadable game for Steam, PlayStation 4 and the Xbox One, via the Unity 3D platform.

The venture has worked out so well to date that Upper One Games and E-Line Media have joined forces to create “World Games”, or projects similar to Never Alone in celebration of indigenous cultures.

Smallest House on Sale A one-bedroom house that is listed on UK property website Zoopla has been touted as the world’s smallest house.

Located in Barnsbury, North London, the 17.5m² unit has a small kitchen, bathroom and living room space on the ground floor, while a bed occupies the loft area upstairs.

However, in order to access the “bedroom”, the resident has to climb onto the kitchen counter to reach the mini steps that lead to the bed. For potential buyers, asking price would be €345,000

Artist Alan Nguyen has designed a very interesting pair of 3D-printed platform fittingly named the ‘iPhone Mashup Shoe’ heels that features a holster on its side to house an iPhone.

Baby Like Pears Chinese farms have started to grow pears using a plastic mould that resembles a baby and are distributing them via supermarkets.

The mould is clamped to the fruit while it is still small enough to fit and then taken off when the fruit fills the mould, after which it will continuing growing in the special shape.

In addition to baby pears (sometimes called Buddha pears), the fruit mould also manufactures heart-shaped cucumbers, square watermelons and more deliciously odd shapes.

Farmer Gao Xianzhang has created 10,000 of these mini marvels this season and plans to take the fruits of his labour to the UK and Europe.

Wanderlust 108 Wanderlust 108 also called “Mindful Triathlon” is an all-day event that combines physical activity, mindfulness, healthy eating, and environmental sustainability into one giant outdoor party.

The goal of the events, organised during September in several U.S. cities, is to engage your body, mind, and soul. Event attendees will do all of this by running five kilometres, doing a large group meditation, and participating in a 90-minute yoga practice. According to the organisers, in many Eastern traditions the number 108 is considered sacred and signifies the interconnection between body, mind and spirit (1 = unity / 0 = stillness / 8 = infinite possibility) Wanderlust 108 explores these concepts – challenging each participant to push their body, calm their mind and connect with others.

cordeditorial@cma.rs |

120 October 2014 | 85

INTERVIEW

Tennis Shoes for

Tennis Champions Many things have changed in the life of Novak Ðoković, the best tennis player in the world, but one thing has always remained the same – his footwear

THOMAS WEEGE “MR BARRICADE”, DESIGN DIRECTOR AND DESIGNER OF EVERY GENERATION OF BARRICADE ADIDAS TENNIS SHOES

S

ince he was a teenager, the Serbian athlete has worn Adidas “Barricade” trainers, which have been a common factor of every success in his career – 45 titles, including seven Grand Slams, 587 wins, $66 million prize money and so much more.

Is there some secret connection between Ðoković and Adidas? Is this brand his lucky charm? What makes his sneakers so special; how do the experts make sneakers for Novak and what will he wear next season? Find out in this exclusive interview with “Mr Barricade”, Thomas Weege, Design Director and designer of every generation of Barricade trainers.

mance aspect, while Barricade is also available in more decent, classy looks.

■ Do these tips apply equally to men and women? Is there a difference?

- Men and women are different and this means they should also have different footwear to address their needs. Adidas has created a women’s specific range that is tailored to the needs of the female athlete. From the fit, cushioning, comfort and performance needs, these aspects are crafted and created with women in mind.

■ Among CorD’s readers there are ■ You certainly know how important Novak plays with adidas many recreational tennis players. As all of our athletes are to us in Serbia, sneakers right out of the a top expert in sports footwear, what especially Novak Ðoković. How do you advice would you give to our readers; take care of our Nole? box. It is the same version - Novak has been a great partner in what is the most important factor that is available to all our helping us create and evolve footwear when buying tennis sneakers? customers for the modern player. His style of play - Adidas offers a collection of footwear constantly challenges us to make sneakthat is created for players of all levels. ers that help athletes perform better. He possesses some of the An important aspect to look at when choosing the right shoe is most extreme movements you see out on the tennis court and if the individual playing style. For players seeking ultimate stabiliwe can create a shoe that contains and enhances his movements, ty and durability, the Barricade range is the perfect tennis shoe then that is a great thing. However, we’re also not resting and are to choose. For those who are looking for a shoe that maximises constantly looking into further developments, as we also know speed on court and an all court game – Adizero is the ultimate that somewhere out there is a kid, the next generation of player, option, developed for the fastest players in the game. who will push the game of tennis even further than we imagine!

And as we all know that style is also an important factor when deciding about a product we also have different designs to offer in both performance aspects, with Adizero be■ How many pairs of sneakers does Ðoković go through during ing flashier in design, in line with its energy reflective perfora season?

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120 October 2014 | www.cordmagazine.com

- We provide Novak with 3-5 pairs of shoes for each tournament, so he can use and wear them in as he deems necessary. Hard court tournaments will require more sneakers than say grass or clay.

■ Novak plays in your Barricade footwear. What’s the difference between these sneakers and other Adidas footwear?

- The Adidas Barricade is the most discussed franchise in all of tennis. It was designed to be the most stable and durable shoe for players seeking total confidence in their high perfor-

mance products. Barricade has been the choice of champions from Justine Henin, Andy Murray, Marat Safin and, of course, Novak!

Barricade that there are no modifications made from a performance perspective. What is unique to his shoe is the customisation: we personalise via special graphics for Novak. His logo is on one side of the shoe, while the love for his home country, represented by a Serbian flag, is on the other.

■ When Ðoković slips, as we saw a couple of times this year at Wimbledon, who should we get “angry” at?

- Slipping is not unique to Novak or even Wimbledon. We see slip-

ping even on clay and hard court surfaces. The slipping is a combination of the extreme movements of today’s athletes (who are more athletic than ever) and a surface that is inherently slippery. Many of these players grow up playing on clay and they translate the sliding they do on clay onto the grass and hard courts. As a result, sometimes slipping happens when they are changing direction quickly or if the forces are extreme.

adidas has quite a few athletes in its portfolio who wear adidas sneakers, on both the men’s and ladies’ tour. This includes the two top Serbian players, Novak & Ana Ivanović, who both wear our footwear

■ Which other top tennis players compete in Barricade sneakers?

- Other Barricade players include Andy Murray, Caroline Wozniacki, Ernest Gulbis, Mikhail Youzhny, Marcos Baghdatis and newcomer Dominik Thiem.

■ We assume that you make sneakers for Ðoković depending on the surface he is playing on. What is the difference between these sneakers?

- The main difference is in the outsole. Different court surfaces require different requirements for traction. We create the ideal interface, which maximises traction, grip and durability to give our Adidas players an advantage.

■ You produce footwear for a number of elite athletes – how many top athletes wear Adidas?

- We are constantly partnering with elite athletes who opt for our support to help reach their goals and who best represent the brand that is Adidas. Adidas has quite a few athletes in its portfolio who wear Adidas sneakers, on both the men’s and ladies’ tour. This includes the two top Serbian players, Novak and Ana Ivanović, who both wear our footwear.

■ What makes the sneakers Ðoković plays in unique? Is it only by the number of sneakers or are there other hidden secrets?

- Novak plays with Adidas sneakers right out of the box. It is the same version that is available to all our consumers. We are proud that we have engineered so much performance into our

■ Of course, in the end we want to know what Novak will wear next season?

- We have some exciting new developments on the outlook, but we are still in close alignment with him to best fit. Stay tuned for further details. ■ cordeditorial@cma.rs |

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BASELWORLD 2014

WATCHES to WATCH When it comes to watches, 2014 continues to confirm that the watch industry is still facing a slowdown in sales, which started with the 2008 financial crisis

W

hile world watch manufacturers wait to see the consequences for their industry of last month’s long-awaited announcement of the production of the smartphone Apple Watch, in the meantime we have decided to offer you a supreme collection, within which you are certain to find a watch to suit your taste.

Analysts expect that mass customisation (with customers able to choose from a number of predefined options) could become an option to help overcome the current situation faced by this and other luxury goods industries, from handbags to luxury cars, where personalised customisation is already common.

On the other hand, watchmakers rely more and more on limited edition watches to satisfy their wealthy clientele’s tastes in rare objects and keep them satisfied. Here we showcase some of the sublime timepieces that have caught our attention and best illustrate the latest trends in watch production, and not necessarily our recommendation for purchasing.

Each year CorD provides a review of the latest watch industry trends. Following the economic situation, this year we have opted to present watches with slightly lower prices than normal. However, this in no way means that these watches are any less attractive than those presented in previous years.

Romain-Jerome Moon Orbiter PRICE: €215,000 Crafted with the metal that was salvaged from the Apollo 11 lunar module, this watch also has moon dust sprinkled on the dial. There are 5 sapphire crystals on the dial that ensure the visibility all the time. But with 25 such pieces crafted, you know this one won't come cheap.

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Julien Coudray 1518

(Limited Edition) PRICE: €365,000

A unique composition whose myriad details are the work of the most virtuoso craftsmen.

Limited series of 15 numbered or personalised pieces. Hand-wound, one-minute tourbillon, Julien Coudray 1515 calibre in solid platinum.

Solid platinum case. Hours, minutes, day/ night, power-reserve and service indicators.

120 October 2014 | www.cordmagazine.com

Tissot Quickster Football PRICE: €330 Tissot Quickster Football is ready for the World Football Cup in Brasil this month. For that reason, the brand has created a movement specifically designed to time football matches, with their half times and overtime. Its wearer will be able to really get involved in the match, as more than a spectator, as timekeeper.

Patek Philippe Ladies Moon Phase PRICE: €42,500 The Patek Philippe Ladies' Moon Phase watch features a mechanical manual winding movement; moon phase display; seconds subdial; sapphire-crystal, transparent case back; and 31mm, 18k white gold case set with 66 round brilliant cut diamonds weighing approximately 0.43 total carats on a gray satin strap with an 18k white gold ardillon buckle.

Blancpain Fifty Fathoms Chronograph PRICE: €14,400 The Fifty Fathoms Bathyscaphe Chronographe Flyback is equipped with a column-wheel chronograph mechanism and a vertical clutch with a flyback function which enables the wearer to reset and instantly restart the chronograph by simply pressing the pusher at 4 o’clock. The water-resistant chronograph pushers also enable user underwater to depths of 300 metres without any risk of damaging the watch.

Graff Diamonds Hallucination

Claude Bernard Lady Chronograph

PRICE: €39,800,000

PRICE: TBA

Most probably, this is the most valuable ladies watch ever made. Graff's design and manufacture teams are reported to have put in thousands of hours to carefully position the precious gems on the pricey timepiece. The Hallucination's petite watch face in the center of over 110 carats of rare colored diamonds almost seems like an afterthought, though. However, there are no any details on the mechanism at all.

The new Lady Chronograph ushers is hand-assembled . This 35 mm diameter watch is small on the wrist but features a Chronograph stopwatch function and date window at the 4 o’clock position. The ring of Swarovski crystals surrounding the chronograph’s hour counter, repeated on the hour indices, enhance the fresh design of the sleek pink PVD coated case.

Jaquet Droz – Grande Seconde Quantième PRICE: €178,400

Cartier Bleu Flying Tourbillon PRICE: €80,000

The Grande Seconde Quantième reveals a new face and movement this year. Major changes have been made to the movement with the addition of a silicon balance spring and inversed horns on the pallets fork. Jaquet Droz plays with a range of fine finishing techniques: the plates are circulargrained above and below, the wheels are chamfered, shaped and circular-grained, the steel parts are chamfered and softened, and there are patterns of straight lines and hand-polished angles.

Tissot Quickster Football is ready for the World Football Cup in Brasil this month. For that reason, the brand has created a movement specifically designed to time football matches, with their half times and overtime. Its wearer will be able to really get involved in the match, as more than a spectator, as timekeeper.

cordeditorial@cma.rs |

120 October 2014 | 89

AUTUMN WOMEN'S FASHION

Warm Colours

for Cold Days

DOMINATED WOMEN'S COMBINATIONS this autumn are warm colours of white coffee, chocolate and cinnamon, complemented by cooler shades of green, jade and turquoise. This scale of autumnal colours can occasionally be disrupted with the accentuation of some vibrant colours, like red peppers for fashion details. The cuts are more relaxed, so you can combine classic pieces with modern clothing.

Also in fashion are trousers ranging from sharp cigarette cuts and classic straight cuts, to wider asymmetric models. Coats and overcoats are light and short, with double or hidden fasteners, while skirts are reduced with single pleats. Materials vary from jersey, silk and cotton, to fuller wool, leather and tweed.

Ralph Lauren Skirt Crafted in soft camel hair and trimmed with black leather for a fashion-forward look.

Price: €1185

Burberry Shoes Crafted in grainy nubuck leather for a slouchy silhouette, they feature a peep-toe front, sleek stiletto heel and polished metal logo plaque for lasting designer detail.

Price: €750

PRICE:

Stella McCartney Sweater This sweater is playfully embroidered with twirls of braided rope finished with softly fringed edges.

Pair with skinny black trousers for a quirky take on new-season dressing.

Price: €785

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120 October 2014 | www.cordmagazine.com

€ 245

Eileen Fisher Utility Jacket Point collar, concealed snap front closure, long sleeves.

Two chest snap flap pockets, two waist snap flap pockets, concealed drawstring waist.

PRICE:

€250

Weekend Max Mara Sweater Weekend Max Mara adds character to this borrowedfrom-the-boys grandpa sweater with tonal colorblocking and a hint of cableknit texture.

Michael Kors Silicone Watch Watch features a silicone-coated bracelet strap, three chronograph functions an goldtone accents for a polished finish.

Price: €280

Proenza Schouler Designed in plum and black silk, it is cut for a wrap silhouette with neat button closures. Slip on for smart-casual wear with leather trousers and high heels.

Price: €595

PRICE:

€485

Hugo Boss Belted Coat

Accessories Alexander McQueen Silk Scarf Crafted in pure silk, it features the designer’s iconic skull motif printed all over for a finish that is coveted the world over. Wear draped at the neck for a timelessly cool look.

PRICE:

€210

Stand out from the crowd in BOSS Hugo Boss' alluring cashmere-blend coat. The berry-hued topper boasts a textured stand collar and belted waist for feminine appeal.

PRICE:

€735

Chloé Shoulder Bag A must-have investment for the season, this bag will take you from work-toweekend and everywhere in between.

PRICE:

€1100

Giuseppe Zanotti Sneaker Styled in slick leather with triple zip detailing, Giuseppe Zanotti’s Leather Shoes are sure to garner attention from the fashion elite.

cordeditorial@cma.rs |

120 October 2014 | 91

AUTUMN FASHION FOR MEN

Casual

Friday Look AUTUMN FASHION FOR MEN is characterised by luxurious materials like velvet, tweed, wool and leather. The colours that are exceptionally popular this season are grey, black, caramel and mustard. Outfits represent a combination of street trends that fashion designers have reworked to ensure they are interesting, elegant and unexpected combinations of urban, classic and sportswear. Thus, for example, it is now trendy to wear a THICK WOOLLEN SWEATER OVER A JACKET, thin sweaters and a jacket are for daily wear, while a gentle commercial variant, classic trousers and sports vests also provide functionality and elegance in a new way. Also present are jackets, blazers, short coats, thin cardigans, wider trousers with drop waist. In short, it's all there, but in unexpected combinations. Combination outfits are complete by leather bags with stylish, semi deep-soled shoes and leather trainers.

PRICE:

€195

Armani Jeans Leather Jacket

Perry Ellis Sport Coat Cut for a slimmer silhouette, this Perry Ellis sport coat features a peak lapel and a ticket pocket for a contemporary look.

Accessories

PRICE:

€175

Tommy Hilfiger Rudolph Boot Part of our Hilfiger Denim men's footwear collection: upper leather lining: textile and leather insole: leather and rubber outsole.

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This handsome jacket fibre fleece lining, ribbed cuffs and hem. The toggle buttons and a zip fastening add a cool contemporary element to the design.

Price: €875

Scuderia Ferrari Watch A duo of crisp chronograph subdials detail the parchmenthued dial on a classic sports watch finished with a rich leather strap.

120 October 2014 | www.cordmagazine.com

PRICE: PRICE:

€230

€205

'Garland' Saddle Shoe Hand-selected USA Horween® bison leather forms a classic saddle shoe fitted with a durable natural Lactae Havea latex sole.

Logan' Leather Backpack

PRICE:

€350

Hand-burnished, bench-crafted antique pull-up leather that softens with age and wear shapes a rugged, road-ready backpack styled in a vintage, compact style with brass-hued.

PRICE:

€785

Salvatore Ferragamo Double Gancio Belt Beefy leather forms a handsome Italian belt featuring a sleek branded buckle.

Givenchy Tyson High Top

PRICE:

€280

Givenchy’s chunky Star-Studded Tyson High Top turns up the dial on contemporary street style. Team with a fuss-free ensemble to highlight their every detail.

PRICE:

Frederique Constant Watch

€260

Tommy Hilfiger Wool Blazer

A refined timepiece from Frédérique Constant’s Classics collection, this exquisite watch combines the latest technology with classic design elements for the ultimate, understated statement.

Price: €2200

Sophisticated doublebreasted blazer crafted from comfortable wool piquet in a regular fit.

PRICE:

Saint Laurent Check Scarf Crafted in pure wool with tones of camel, green and brown, this understated accessory promises years of wear with a traditional design that won’t date.

Price: €295

€205

Crew-neck Sweater This crew neck sweater is made from a blend of cotton and lambswool for a perfect mix of warmth and comfort. cordeditorial@cma.rs |

120 October 2014 | 93

PROFILE

Technology Available

to Everyone

Since its establishment in 1969, in the Korean town of Suwon, Samsung Electronics has grown into an IT leader with over 200 branch offices worldwide. The company produces domestic appliances like TVs, monitors, printers, refrigerators and washing machines, as well as mobile telecommunications devices like smartphones and tablets. Its continuous growth is based on a firm dedication to development and constant innovation MILAN VUJOVIĆ Marketing Director, Samsung Electronics Adriatic

B

efore my appointment as Marketing Director at one of the biggest global companies, known for constantly inSamsung Electronics, which is one of the global techvesting in research and development. nology leaders, I was given an opportunity to gain exThe human potential and diversity of cultures, knowledge and perience and build my career with several internationexperience, which all contribute to innovations, make this compaal companies operating on our market. It meant a lot to me that ny different from others. Since the Korean corporate etiquette is the companies I worked for or cooperated with came from varvery precise and exact, the adjustment period was very quick and ious industries. Working for P&G, one of the biggest marketsimple. I was also pleased to see that my co-workers, whether they ing investors, was my first encounter with the world of marketwere from Korea, Serbia or elsewhere in the SEAD region, were reing. This job was a good starting point, since ally trying to understand each other and view I was given an opportunity to work with difthe differences between them as beneficial ferent sectors, to communicate with differOur consumers, their to the company. Our consumers, their needs ent people, clients, suppliers and consumers, and wants, are at the centre of our business needs and wants as well as to learn a lot about business culand in our research we are dedicated to creatare at the centre of ture and doing business primarily on an ining new technologically advanced products in ternational level. Soon after getting this job, I all product categories. At this company I have our business and in was promoted and offers from other compabeen fortunate enough to work on different our research we are nies poured in. I continued my career with the of benefit to the local community in dedicated to creating projects FMCG Industry as Trade Marketing Manager. which we operate. I am especially pleased with new technologically The company is a tobacco producer and disthe fact that every year we have opened new tributer. Through various projects, I collaboadvanced products in Digital Classrooms in schools and at faculties rated directly with many marketing experts all product categories in the region. Moreover, thanks to the Digital who helped me shape the way I think and disAcademy projects, we are also given an opporcover new possibilities that this inspirationtunity to educate unemployed people in Serbia al field offers. Just like in life, working hard, investing effort and in the field of ICT. We have been trying to bring technology closconstantly learning bring results in your professional life too, er to all people through these projects, whilst also enabling them which was also true in my case. The first job as a director was alto learn, work and progress in a good way. Now we are contributso a very challenging one. I did many campaigns for clients from ing to the growth of a new generation, which in ten years’ time will various industries and was actively participating in creating their be engaged in brand new professions. Technology is changing and corporate image and brands. All of this made it possible for me progressing daily, and it makes our societies better, more innovato cooperate with seasoned professionals from the Balkans’ martive and more competitive. It is our job to make it available to eveketing industry. However, it was during this period that I came rybody. This is our pledge to the future. Personally, I am very hapto realise that I would like to try my hand in a different industry, py to be part of a company that is dedicated to constant innovawhich would bring me different sorts of challenges and respontion and research and, thus, creates solutions which make the lives sibilities. It was then I decided to work for Samsung Electronics, of the people around the world better and easier. ■ 94 |

120 October 2014 | www.cordmagazine.com

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Kod nas ste uvek prvi.

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120 October 2014 | www.cordmagazine.com