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FACES & PLACES
3/11/2021
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Ambassador Of Cyprus Hosts President Of The House Of Representatives
Ambassador of Cyprus to Serbia H.E. Demetrios A. Theophylactou hosted Annita Dimitriou, President of the House of Representatives of the Republic of Cyprus, at his residence at a cocktail party organized in honor of her official visit to Belgrade. Annita Dimitriou is the first woman at the head of the parliament of Cyprus and the youngest chairwoman of one of the most important state institutions.
4/11/2021
The presidents of Serbia and Albania, Aleksandar Vucic and Edi Rama, and the vice president of Northern Macedonia, Nikola Dimitrov, met at the Palace of Serbia in Belgrade as part of the Open Balkans initiative, which aims to increase trade and co-operation and improve relations. The initiative, initially called “mini-Schengen”, changed its name at the end of July, at a meeting in Skopje attended by the leaders of the three countries, Edi Rama, Zoran Zaev and Aleksandar Vucic, and it was agreed that from 1 January 2023 border controls between Serbia, Northern Macedonia and Albania will be abolished.
The Embassy of India in Belgrade celebrated Indian Technical & Economic Cooperation (ITEC) Day on 5 November 2021. Besides senior officials from Ministry of Foreign Affairs and other government departments, a large number of ITEC alumni attended the event. In his address at the celebration, Indian Ambassador H. E. Mr. Sanjiv Kohli, gave an overview of the ITEC programme which covers over 300 training courses of different duration in premier training institutes of India to over 160 friendly foreign countries since 1964. Serbia is one of the ITEC partner countries and since 2008.
11/11/2021
The First Weaving Colony Opened In Novi Pazar
The most recognizable carpets from Serbia, cilim, inscribed on the national list, in addition to Pirot and Stapar, are also the Sjenica-Peshter carpets. In order to fully affirm the most important segment of textile creativity in this region and preserve the technique of production, the first weaving colony was opened in Novi Pazar. The Etno Mreza, together with the city of Novi Pazar, NALED, the US Embassy and the Ministry of Agriculture, Forestry and Water Management, gathered weavers from all over Serbia to help preserve the intangible heritage of southwestern Serbia and economically empower women from these areas.
FACES PLACES&
15/11/2021
Hellenic Business Association of Serbia Board Members and its company representative members met with the Deputy Minister of Foreign Affairs of Greece, Konstantinos Frangogiannis, at the Greek Embassy, as part of his official visit to Belgrade. One of the most important topics of conversation was the challenges facing Greek companies in Serbia, as well as the possibility of assistance by the Greek Ministry of Foreign Affairs in solving them.
16/11/2021
The Foreign Investors Council presented the White Book 2021 to the highest Government officials and marked its 19th anniversary. The presentation of this year’s edition was attended by numerous representatives of state bodies, embassies, as well as the stakeholder community. The White Book, written by FIC members, is the major product by which, for almost two decades, FIC gives recommendations aimed at supporting economic growth and better living standard of Serbian citizens. The conference was opened with introductory address by FIC President and Telenor CEO Mike Michel, followed by insight into the White Book 2021 by Editor-in-Chief Miroljub Labus, as well as addresses by Head of EU Delegation in Serbia Emanuele Giofre and Prime Minister of the Serbian Government Ana Brnabić.
The IWC’s November event, which took place on the afternoon of Tuesday November 16th, was a High Tea rather than the usual Coffee Morning. It was held in the luxurious Crystal Ballroom of the Hyatt Regency Hotel in New Belgrade. Approximately 80 members and their guests were in attendance. IWC President Sonia Shehryar spoke to the gathering and introduced two special presentations. The first was a saree-draping demonstration led by IWC member Ruma Kohli, who is wife of the Indian ambassador to Serbia, and member Renu Rajan. The second presentation was a series of Bollywood dances performed by the dance group ‘Panna’. The High Tea event was followed by the club’s first charity fundraiser of the year, Chic for Charity, a silent auction of designer clothing donated by Serbian designers and members of IWC.
19/11/2021
Minister Of Foreign Affairs Met With The EU Ambassadors Accredited In Serbia
Minister Selakovic underlined that membership in the EU is an absolute priority of our foreign policy and strategic commitment and added that we are fully dedicated to the reform process and the improvement of all segments of our society. He assessed that the dynamics of accession negotiations should be in line with our reform efforts, but that it is encouraging that this year’s report of the European Commission on Serbia’s progress has a more positive tone compared to the previous one.
FACES PLACES&
19/11/2021 UNICEF’s First Exhibition And Auction Of Unique Digital Tokens Presented
On the occasion of marking the 75th anniversary of UNICEF, the Ozone Gallery presented a special collection of unique digital tokens, better known as NFT, which will be exhibited until 11 December. Simultaneously with the exhibition, an online auction in cryptocurrency on the Ethereum blockchain begun, which was made with the expert support of ECD and MVP Workshop. The online auction takes place on the website www.donacije.unicef.rs/nft, and UNICEF invites all companies and people of good will who trade cryptocurrencies to compete and thus help children with disabilities. All proceeds from the sale of unique digital tokens will be used to procure assistive technology that helps children with disabilities.
A cocktail reception was held to bid farewell to the Ambassador of Korea to Serbia H.E. Hyoung-chan Choe, who is leaving Serbia at the end of his fouryear term. The reception was held at the Ambassadorial Residence, and attended by many members of the diplomatic community, officials from the public, political and civil sectors.
Do Acceptable SDG Goal TRADE-OFFS EXIST?
Sometimes, when lucrative opportunities for economic growth arise, both governments and businesses look for trade-offs among the SDG targets that can be made at the expense of citizen wellbeing, thus pushing sustainable resource use, along with other commitments stemming from Agenda 2030, to the periphery of their attention
Sustainability is most often defined as meeting the needs of the present without compromising the ability of future generations to meet their own needs. The concept has three main pillars: economic, environmental and social, which were transcribed into UN Agenda 2030 and its 17 Sustainable Development Goals (SDGs), and adopted in 2015.
The SDGs address economic and social goals, as well as ecological sustainability challenges. That is to say, both globally and at the national level, countries that embrace the SDGs subscribe to an approach that places the same priority on efforts like improving living conditions for those in need and preserving the ecological integrity of the planet for future generations.
Yet, this task is made tougher by the fact that opportunities for economic growth may sometimes jeopardise sustainable resource use. Thus, both governments and businesses Mining is seen as one of the industries that will be pushed by regulators to adhere to “net zero”, as the major guiding principle for business that was reinforced at the recent COP26 Conference in Glasgow. This is certainly important information for Serbia, where mining is increasingly being considered as a vehicle for accelerated growth
deliberate over whether to seek trade-offs among the SDG targets that come at the expense of citizen wellbeing.
The recent 26th UN climate change conference, officially known as the 26th Conference of the Parties (or COP26), which took place in Glasgow, clearly suggested that Climate Change (SDG 13) might play a pivotal role in fulfilling all of the SDGs, if not the majority of them. In other words, it seems that achieving the 2030 Agenda will be impossible without achieving serious progress in addressing climate change.
As a result, all countries are expected to revise their Nationally Determined Contribution (NDC) to reflect this ambition and come up with a detailed plan of how they will reduce the level of harmful greenhouse gases that they emit. This is certainly relevant for Serbia, which hasn’t exerted sufficient efforts to contribute to the overall goal of restricting global warming to 1.5° Celsius above pre-industrial levels.
One of the major steps in that direction is moving towards a green economy and clean renewable energy. These are today key terms that can be heard across domestic state administration, businesses and among ordinary citizens and which demand that commitments made public are turned into an applied reality.
It goes without saying that companies play an important role in that endeavour. Some of those that already embraced the SDGs as part of their market strategy, in order to distinguish themselves among others as responsible citizens, are now turning to “net zero” as the major guiding principle of their businesses.
In that respect, it is important to know that metals mining is considered one of the world’s dirtiest industries, responsible for at least 10% of anthropogenic greenhouse gas emissions. One of the outcomes of COP26 is expected to be the applying of further pressure on mining companies to become more responsible through increased regulation aimed at reducing emissions. Many see climate change litigation and the rise in climate activism, climate disclosures and sustainable financing as the key factors that will shape public attitudes towards economic opportunities that stem from mining.
PETAR ĐUKIĆ,FULL PROFESSOR OF THE FACULTY OF TECHNOLOGY AND METALLURGY, UNIVERSITY OF BELGRADE
FORCING THE LAUNCH OF MINING COULD PROVE CALAMITOUS
We haven’t responded to many of the challenges confronting sustainable development in Serbia. Still, there is one thing that has improved. And that is environmental awareness and the culture of sustainability, especially among the smaller, younger and particularly educated sections of the population. If we work on that even more, new generations will be much more responsible towards their heritage than we’ve been
In the ongoing discussions of the current juncture pertaining to various projects that have a strong environmental impact, we get the impression that the Serbian public is drastically polarised and perceives environmental protection and economic development as diametrically opposed extreme poles without a “middle ground”. Do we need to better select projects, or to set different public policies regulating economic development, or to deal with the better provision of information? To find answers to these and other questions, we spoke with Petar Đukić, a professor at the University of Belgrade’s Faculty of Technology and Metallurgy and an expert in the field of sustainable development.
“Polarisation didn’t arise from the ecological perception of reality, but rather from the shaken integrity of the government and trust in it, but also due to the crisis of all social values caused by the destruction of institutions that had collapsed already. It is similar across almost the whole world. Institutions only function if you are certain that people’s will and power will not
SILENCE
Every government sometimes gets into a public interest conflict, but scientists and experts should never permit that to happen to them. They have no right to passivity and silence
be above institutions and laws. Thence arises also this polarisation, which leads nowhere,” says our interlocutor.
To what extent are the debates that we have on this topic in Serbia indigenous and specific to our circumstances, and to what extent do they represent an echo of the very serious debates on economic progress and sustainability that are currently being held at the world level?
Current debates addressing the climate are gaining an increasingly global tone (the impact of UN action, from Rio 1992 to Glasgow 2021), but for us also an essential European one (EU Green Agenda and Green Plan for the Balkans 2020), and finally a national-regional tone, which we still need to establish, if we think positively of everyone in the region.
Here in the Balkans, we’re individually too weak, powerless and small, and the regional effects of climate change are too strong for us to have our own national climate change response strategies and mechanisms. We need purposeful joint action, devoid of any kind of national, ideological our great-state prejudice. This are issues that rise above all ideologies, and even “national” politics.
As an economist, how do you view the idea that our understanding of economic growth as the continuous production of an ever-increasing volume and number of goods and services must change completely?
I’m not a supporter of the “must” category. At the end of the day, we all see that in life nothing is a “must” except death. Precisely in order for the life of the Planet not to be extinguished prematurely, from a cosmic perspective, people should do as much as they can (and together they can do a lot) to prevent its accelerated extinction.
Now, how much can people do? They can do a lot more than they’ve shown and done to date. Specifically, if you apply the “polluter-user pays” principle, whether in the form of taxes, charges or penalty costs, you will get better economic behaviour among the people around the society. Today there are current fees for the use of water,
LIMITATIONS
Here in the Balkans, we’re individually too weak, powerless and small, and the regional effects of climate change are too strong for us to have our own national strategies
natural materials and materials from the land, but they are not high enough – not even around the world, let alone in our country.
How come companies are showing so much interest in natural resources?
This kind of an offensive on resources stems from several relevant factors: first, natural materials, and with them mineral fuels, have not lost their importance as the raw materials required for industrial development, like it seemed they would during the last decades of the 20th century. Large and small companies, as well as states and regional economies like that of the EU, are aware of that fact. Second, demand for natural
SHORTCOMINGS
Global policies are insufficiently integrated into our institutional frameworks, which ensures they’re not sufficiently operable at a practical level
resources is currently rising sharply due to the perception of a rapid increase in global economic activity following the recession caused by the pandemic. Third, additional fuel for searching for and redistributing natural resources around the world provides information on the ultra-ecological future of industries and technologies, especially following the information that emerged from the Panel on Climate Change and after the global conferences addressing the climate and environment.
Transitioning to new economic-technological structures and carbon-zero technologies is neither a simple nor a short-term thing. Therefore (and this is the reasoning of companies and many “industrialised nations”), it is not bad to continue utilising what we can in the old way, and under the given prices and conditions, before new, increasingly restrictive environmental standards enter into force.
Finally, there is the regional-national aspect. If some project cannot make it through the standards, laws and ecological culture of one’s own country, then it still can in some other country where labour, capital, knowledge, and even natural resources, have a much lower price tag.
To what extent are global policies related to the introduction of circular economy principles reflected in our institutional framework and operationalised at a practical level?
The circular economy is just a complete notion; a model like the previous one on sustainable development (encompassing much more than the economy), and later the “green economy”, and now the latest ones like “bioeconomy” and even “climate economy”. These terms are almost the same in terms of content, differing only in terms of the focus of analyses. If you primarily have in mind closing the cycle of useful energy and fully utilised waste when designing an industrial process, i.e., a procedure that doesn’t contribute to disturbing the ecosystem in any way, without harmful emissions or depleting resources, then that’s a circular economy (an ecologically encircled economic system). And if the priority of your product and process design is to have a favourable impact on the
climate, i.e., to contribute positively to climate action, it is called “climate economy”. Those who would like to copy nature in their processes and reproduction (an economy that has no leftovers, such as the complete exchange of matter and energy between the Sun, Earth, plants, animals, fungi and bacteria) then it is “bioeconomy”.
All of these new terms are welcome, though I personally prefer to have one. And that one is sustainable development, because it relates not only to the economy, but rather also to society, politics, social institutions, culture etc. Sustainable development exceeds the goals of any sector-specific strategy and policy, which is why we need a strategy for how to further develop as a whole. We had a sustainable development strategy, which unfortunately “expired” in 2017, without an adequate replacement. The climate strategy, the draft of which is currently being finetuned, is not a sufficient substitute for sustainable development.
To what extent is the academic community included in the shaping of these policies, both at the general level and at the level of consulting and seeking expert opinions regarding major projects that are launched and have a fundamental impact on economic and social development processes?
The academic community in our country, like any other section of the public and profession, is deeply divided, according to seams of interest. Those who are involved to more in official projects (with some exceptions) mostly try to explain that something being promoted by the government must be done by you, because that is the best solution. The other part has the opposite stance. A pronounced example of that is the expert assessment of the architecture and infrastructure of Belgrade, the Belgrade metro, the opening of mines in Serbia, new settlements and projects beginning with the Belgrade gondola, masts and monuments, all the way to the residential complex on the Makiš field near Belgrade’s source of communal water. There is no discussion over which of these is risky and how much, acceptable or unacceptable, or regarding alternative solutions. It must be recognised, however, that academic independence and the honourable influence of experts are still silent and (rarely) speak up, like the announcements and statements of 90% of lecturers at the Faculty of Civil
None of the few remaining mines of metallic and non-metallic raw materials operating in our country are environmentally friendly or able to be. But that doesn’t mean we can’t also discuss sustainable (not “green”) mining
Engineering regarding the poor and harmful choice of metro rail lines for Belgrade.
Based on that and this kind of professional academic courage, I expect us to reach a rebellion and a presenting of the joint stance of experts from the Faculty of Transportation, the Jaroslav Černi Water Institute, the Hydrology Department of the Faculty of Mining, Civil Engineering and other faculties regarding public projects, regardless of any government structure.
Do we, as a public, have the opportunity to hear all the arguments that would help us make decisions?
We don’t, for multiple reasons. First and foremost, because (every) government tries maximally to block such debates and arguments, through the granting of short deadlines or by reducing public debates to online conferences, for example under the direction of the Chamber of Commerce, as a parastate body. The second reason is that professional associations and scientific societies try, to a great extent, not to offend the authorities, so they avoid open and critical discussions of public projects, confining themselves to the theory and not venturing into the domain of development policies. Finally, interests are a wonder, with many scholars or prestigious cultural workers having been bought off or threatened to be deprived of their privileges, directorship positions or the benefits of managing state projects etc.
To what extent do we have well-established taxation and other instruments at the level of companies that would encourage the business sector to seek solutions for their businesses that take into account issues of sustainability?
The state should duly review and adjust the mineral resource rent tax, pollution taxes and other fees in accordance with new scientific discoveries, monitoring the state of resources and the advancement of raising awareness.
In Serbia’s contemporary mining sector, you have the greatest environmental and developmental damages, i.e., health damages, and even long-term social damages from the operations of Kolubara and Kostolac within the EPS framework. The second most harmful mining-industrial activity is the existing mining of copper and some gold in Bor (Chinese company Zijin Copper), the Smederevo Steelworks (we won’t mention individual fireboxes and traffic at present). Finally, there are only a few remaining mines of metallic and non-metallic raw materials. None of these mines are environmentally friendly or able to be. But that doesn’t mean we can’t also discuss sustainable (not “green”) mining.
Nonetheless, a huge fuss has arisen (only partially justified by research) and the much more important (opening) of the lithium and boron mines. There is no dialogue, with both sides pushing their own agenda. This definitely won’t bring a stop to mining around the world and in Serbia, just as it won’t be possible to launch sustainable mining with the help of party pressures and the instrumentalising of a referendum. The most dangerous thing would be to force the launch of mining against the will of the people, and for people to carry out some obstructions, as is happening around the world.
KSENIJA KARIĆ,GENERAL MANAGER, SCHNEIDER ELECTRIC IN SERBIA AND MONTENEGRO BUSINESS
A SUSTAINABLE FUTURE IS ATTAINABLE
It was in 2005 that Schneider Electric introduced its first sustainability barometer, as an early adopter of ESG matters. The company has set ambitious targets, such as reaching carbon neutrality in its operations by 2025, while up to 72 per cent of its revenue today is green
Our company celebrates the 20th anniversary of its successful operations in Serbia next year. The core of our strategy is to build a sustainable business and company. Customers, employees, partners and investors have never been more focused on ESG considerations than they are now - says Schneider Electric General Manager for Serbia and Montenegro Ksenija Karić, speaking in this CorD interview.
Sustainability has been one of the hot topics in recent years. How does Schneider Electric, as the world’s most sustainable company, view the tackling of this challenge?
We strive to help others participate actively in resolving such an important issue by using adequate software and solutions. This means that we don’t only tend to be a role model in the manner we run our operations, but that we are also part of the solution for many of our clients, and that is the model everyone should follow. We plan to enable 1,000 companies – our major suppliers – to cut GHG emissions by 50 per cent by 2025, using our EcoStruxure platform. Over the past 15 years alone, we have saved 120 tons of CO₂ emissions and provided access to energy for about 30 million people worldwide.
Energy demand is ever-increasing and will be up to 40 times higher a century from now. Is decarbonisation the way to reach a sustainable supply system? Where can one start?
We believe that a more electric and digital world is key to a sustainable and resilient future. It is estimated that energy demand for cooling will increase threefold over the next 30 years, and that overall consumption will rise by up to 62 per cent by 2050. The way to meet these growing needs is to use energy in a better-quality and more rational manner. Innovation today relies heavily on both electric and digital. From gadgets that make our Over the past 15 years alone, we have saved 120 tons of CO2 emissions and provided access to energy for about 30 million people worldwide
lives better, via digital home-working, to e-mobility. And Schneider Electric is helping drive change in the world to make our customers and partners’ operations more sustainable.
For businesses and consumers, renewable energy sources represent a fast-track to fulfilling decarbonisation-related pledges. However, it is necessary to point out the need for an integrated approach to improving energy productivity, including the decarbonisation of cities, which account for nearly 70 per cent of global CO₂ emissions today and consume 78 per cent of energy around the planet, as well as the necessity for transport electrification, the decarbonisation of heating and cooling systems and enabling flexible demand, combined with providing specific recommendations and sharing experiences regarding these concepts.
Can digitalisation and investments in Industry 4.0 contribute to further economic development? How does Schneider Electric participate in this process?
We strive to be a role model and play an important role in creating a carbon-free world, while helping clients to operate more sustainably with significant cost-cutting. This means that digitalisation and Industry 4.0, coupled with Electricity 4.0, contribute to improving economic competitiveness.
The latest addition to our portfolio is SM AirSeT, our green and digital SF6-free medium-voltage switchgear. SM AirSeT is a leap forward for sustainability, using pure air and vacuum switching technology, instead of SF6 gas, and allowing users to take full advantage of digital features to unlock the value of data. By introducing the new SF6-free technology, we have taken a crucial step forward in power grid decarbonisation. Such medium-voltage switchgear has already been installed in the substations of users across Europe, including E.ON, Sweden, and GreenAlp, France.
GREEN BUILDING & SUSTAINABLE REAL ESTATE PORTFOLIO
The Navigator Business Center 2 is a recipient of the LEED GOLD certificate, which is yet another in the series of these certificates that MPC Properties already possesses in its portfolio. It was this latest certification that prompted us to speak with Jovana Cvetković, director of development, technical operations and innovation at MPC Properties
MPC’s strategy is building and development of modern business and retail assets in accordance with the highest world standards. In the development process, we pay special attention to the green building principles and the impact they have on users and the environment.. As a market leader, we at MPC think long-term, and we don’t make any compromises when it comes to the quality and sustainability of our assets, which we are also recognised for on the market.
Our job is not only to build and develop an asset, but also to manage it, so it is extremely important that the facilities we build are sustainable and functional, and the ultimate goal is to build sustainable assets
that achieve Building Resilience for Climate, People and Economies.
Over the course of the past 10 years, MPC has contributed to the promotion of green building, and thus we today have three buildings that have been designed and built in accordance with those principles: the Navigator Business Center 1 and 2 have been built according to the LEED Gold standard; UŠĆE Tower Two was constructed according to the BREEAM standard, while UŠĆE Shopping Center is one of the first and the largest certified shopping centers in the region and Europe, thanks to LEED-EBOM certification (LEED Certified Existing Building: Operations and Maintenance) covering the area of existing, operational facilities. MPC Properties also confirms its commitment to green building by being an active member of the Serbian Green Building Council.
The crucial green building strategy is that during the development of the project, its entire life cycle is considered, which starts from the idea, planning, design, through the execution of works, all the way to the operations. MPC Properties deals not only with the construction of assets but also with their management and maintenance, so it is very important for us to manage the entire development of the project, bearing in mind that after the investment in green building systems, significant savings will be achieved during operation.
Through the certification process, the quality of the facility is improved, and through adequate selection of equipment and proper mode of operation of technical systems, optimal space comfort is achieved, which further contributes to reducing energy consumption (electricity, heat, cooling) and water consumption, reducing waste… reduction of harmful impact on the environment (reduction of harmful gas emissions, increase of efficiency, reduction of waste and protection of watercourses).
Accordingly, it contributes to the preservation of collective health, but also gives an example to the professional and general public about the importance and benefits of applied green building.
When it comes to environmental protection, MPC Properties also integrated its vast experience of real estate development and management during the concept design process for the exceptional UŠĆE Tower Two business building. When devising the concept for this business facility, we wanted to shift the boundaries of the domestic market and keep pace with current global trends and properties now being developed in Europe’s major business hubs, primarily London, Vienna and Warsaw, which is why this building is the first in Serbia to apply new natural ventilation technology. Thanks to this system, the excellent air quality of the space is secured with minimal energy consumption. Similarly, the area surrounding this business complex has been enriched with indigenous plant species, which serves to additionally create an environment that stimulates creativity and encourages healthy productivity. We’re additionally improving and shifting the boundaries of the market with each subsequent project, so our next step is to introduce WELL health and safety certification for the entire portfolio of MPC Properties – UŠĆE SC, BEO SC, Mercator, IOC, Ušće Towers 1 and 2 and the Navigator Business Complex.
This certificate is particularly important to us, considering the current situation with the COVID-19 pandemic, and is also a way to integrate the best world practices into our system and operations, thus contributing to the betterment of the entire community. We are currently in the development phase of a comprehensive social responsibility strategy that’s harmonised with ESG (environmental, social and governance) factors, at the level of the entire MPC system, which will be applied to our properties.
MPC Properties is one of Southeast Europe’s most experienced real estate development platforms, with deep market knowledge, broad deal experience and assets with the highest standards. MPC has developed over 30 retail and office projects, which have been established since the company’s 2002 foundation. The company is primarily dedicated to investing in and managing real estate, with the key objective of increasing value through active initiatives. When it comes to design and construction technologies, as well as compliance with green building standards, MPC delivers an efficient and sustainable portfolio. MPC possesses or manages different types of properties, including high shopping centers, street retail outlets, prime office space and mixed-use projects.
SUSTAINABILITY AS A CRUCIAL PART OF OUR BUSINESS
Corporate social responsibility is a crucial and inseparable part of our company’s operations, both at the global level and individual brewery level. In each segment of our business, and with the participation of all our stakeholders, we create different programmes and projects that have social responsibility as their common denominator
Our CSR policy is aimed at both the PEOPLE and the PLANET, and stands firmly on the following pillars: 1. Responsibly refreshing – in which we advocate responsible consumption of alcohol through numerous projects, such as the “DON’T DRINK AND DRIVE” project; 2. Sustainable brewing – which means applying a responsible approach to production processes, within the scope of which we would single out our construction – worth RSD13 million – of the waste water treatment plant that now has the additional purpose of generating power as a by-product of treatment; 3. Collectively crafted – our responsibility towards the community, where we initiate or support numerous organisations or projects; 4. Employee wellbeing – we promote the striking of a balance between career and personal life, and introduce numerous employee benefits while at the same time observing all the principles of diversity and inclusion. We thus became the first FMCG sector company in Serbia to be awarded the Family Friendly certificate.
15 YEARS OF “DON’T DRINK
AND DRIVE” CAMPAIGN
This is one of our most enduring CSR projects, which we conduct in partnership with the Ministry of Interior, Traffic Police Directorate and Road Traffic Safety Agency. Within the scope of this campaign, over the past 15 years, the Brewery has remained committed to educating consumers in order to draw attention to all the negative consequences of consuming alcohol prior to driving. In addition to using interesting methods to instruct consumers about the negative effects alcohol has on their motor skills, it also prompts them not to sit behind the wheel after drinking alcohol, but rather to use alternative transport to return home – to call a taxi or a friend to give them a ride; to walk or use public transport. We this year donated 600 reflective vests to traffic police. We’ve so far invested around 130,000 euros in the procurement of 135 alcometers and 50,000 alcometer mouthpieces.
GLASS PACKAGING
MANAGEMENT IN THE
WESTERN BALKANS
Apatin Brewery, together with German international development agency GIZ, NALED and company Sekopak, has been implementing the project “Glass Packaging Management in the Western Balkans”. Our €150,000 investment was used to procure infrastructure elements in the form of collection containers, as many as 600 of them for collecting glass packaging waste, all for the purpose of increasing the amount of glass packaging collected by 20%. In this way, a profitable system of glass waste treatment and recycling would be established in Serbia and around the region, thus improving the existing system of extended producer responsibility. In addition to investing in infrastructure and increasing the amounts of recyclable material of collected, this project also aims to educate – not only consumers and other people, but also local communities and public utility companies – and thus contribute to strengthening the overall capacities of local communities in this area of operations.
ANA PEROVIĆ, ORGANISATION DEVELOPMENT MANAGER AT ELEVENES
BILLION-EURO GREEN FACTORY FOR LFP BATTERIES UNDER CONSTRUCTION
On the site of Subotica's former '29. novembar' factory, start-up ElevenEs – part of the multinational Al Pack Group that operates in the aluminium packaging and processing industry – is building the first major factory for LFP batteries in Europe
The project is also receiving significant support from EIT InnoEnergy, the most active global investor in the area of sustainable energy in Europe, in the low-carbon development sector, which has engaged in the project as an important facilitator and investor.
The adaptation of existing production facilities and the construction of new ones, along with the installing of equipment, will unfold over the course of the next year; pilot production will commence at the start of 2023, while commercial production is expected to be launched in 2024, announces Perović.
ElevenEs, an industrial development project of the multinational Al Pack Group, which specialises in aluminium processing and has already spent 25 years operating on the packaging market, has developed its own technology for the production of lithium-iron-phosphate (LFP) batteries. After two years researching and developing LFP batteries, the company recently opened a modern research & development centre in Subotica, where a team of international engineers and scientists works.
Batteries based on LFP technology, unlike regular batteries, don’t contain cobalt and nickel, which makes production cleaner and more sustainable. These batteries have a lifespan that’s several times longer, are safer, deliver more power faster and are primarily intended for electric cars, buses, trucks, forklifts and other vehicles, as well as for energy storage linked to solar power plants and wind farms.
The first battery factory in Europe to use this technology will be built on the site of Subotica’s former giant ’29. novembar’ factory. The complex will extend over an area of 30 hectares, with facilities occupying 160,000 square metres. Envisaged capital investments are estimated at around a billion euros, while the investment should reach 550 million euros by mid-2024, excluding investments in development.
The factory itself will be constructed in several phases over the course of the next six years. The initial period will see the creation of a plant for the production of electrodes and the assembly and electro-formation of cells, while production activities will expand over time to encompass the production of other input raw materials, including cathode material. Within the scope of the complex, there will also be a recycling centre for battery production waste. Following completion of the development of the first product line, a green “mega factory” will be created and will produce 300 MWh annually. After two years, production will be expanded to 8 GWh, while after 2028 and the finalisation of the complete investment, production is expected to reach 16 GWh annual. To clarify these capacities, 16 GWh equates to more than a billion of the
batteries that are found in contemporary mobile phones, while translated into vehicles – it would equate to enough batteries for almost 330,000 fully electric cars. Although this type of production is highly automated, there will certainly be more than 1,800 people employed in development and production at that juncture.
SANELA VELJKOVSKI ,PROJECT MANAGER, OPEN REGIONAL FUNDS FOR SOUTH EAST EUROPE - MODERNISATION OF MUNICIPAL SERVICES, DEUTSCHE GESELLSCHAFT FÜR INTERNATIONALE ZUSAMMENARBEIT (GIZ) GMBH
THE BELL TOLLS FOR GLASS RECYCLING
In an effort to improve the percentage of glass packaging waste that's collected and recycled, German development cooperation has joined forces with private companies from the Western Balkans to implement the project 'Enabling a Cost-Effective Glass Recycling Value Chain in the Western Balkans’
Working through its development partnership mechanism, GIZ is combining its efforts with those of private companies, with the aim of responding jointly to the greatest challenges to the realising of the Sustainable Development Goals
What is the current situation in the field of glass packaging waste management in the Western Balkans?
Environmental protection concerns are similar in all Western Balkan countries and joint efforts – through cooperation and exchanges of best practices – are not only useful, but rather essential.
As a type of packaging waste, which is one the fastest growing forms of waste worldwide, glass packaging represents one of the few materials that are 100% recyclable and can be subjected to an infinite number of recycling circuits. Unfortunately, the low quantities of glass collected and insufficient management of glass waste recycling have resulted in most used glass packaging ending up in landfill sites or illegal dumps, where it takes more than 5,000 years to decompose. As for the waste sector generally, the main shortcomings for glass waste management lie in the infrastructure enabling collection and the development of sustainable solutions.
Tell us something about your Project “Enabling a Cost-Effective Glass Recycling Value Chain in the Western Balkans”. Why is this project so important?
The project is built on a strong partnership between GIZ and packaging waste management operators SEKOPAK, with the support of Molson Coors’ Apatin Brewery from Serbia, EKOPAK from Bosnia-Herzegovina and PAKOMAK from North Macedonia.
Serbia’s NALED (National Alliance for Local Economic Development), North Macedonia’s ZELS (Association of the Units of Local Self-Government) and Bosnia-Herzegovina’s regional development agency REDAH contribute to this partnership - as civil society organisations - with their capacities and experiences. All of the institutions included are aiming to realise the common result of establishing the preconditions for the cost-effective treatment and recycling of glass waste in the Western Balkan region.
What are the results to date of the joint investment, advisory support and awareness-raising measures to improve rates of glass waste collection?
During 2021, more than 1,000 glass collection containers have been installed in 14 pilot cities and municipalities throughout North Macedonia, Serbia and Bosnia-Herzegovina. These waste collection containers, named Bells, have been introduced in Bitola, Štip, Gevgelia, Ilinden, Skopje, Tetovo, Niš, Sombor, Varvarin, Kragujevac, Ilidža, Novi Travnik, Bihać and Konjic. The joint investment, advisory support and awareness-raising measures to improve collection of glass waste have met with positive reactions among the citizens of these communities and resulted in glass collection rates having already increased by over 20%.
How does the recent inclusion of the City of Belgrade in the project contribute to improving its results?
Being aware of the importance of green projects to citizens, and their environment and living conditions, we would like to highlight the fact that the City of Belgrade officially joined our Project recently. As the region’s biggest city, Belgrade has – according to all factors – very specific elements for the organisation of primary separation, which can result in us having both a bigger impact and a new learning experience.
Building upon this investment in collection infrastructure and lessons learned, the Project will prepare municipal models to establish adequate glass recycling systems that can be further disseminated to other municipalities in Serbia and around the region.
UNICREDIT BANK SERBIA MARKS 20TH ANNIVERSARY WITH LAUNCH OF CSR PROJECT
2,000 dinars from each loan granted during November and December 2021 will be used for CSR projects over the next year
For each cash loan and refinancing loan exceeding RSD200,000 that’s granted during November and December 2021, UniCredit will allocate RSD2,000 for CSR projects to be implemented during 2022. As part of its campaign, entitled “20 years of striving together to start good things”, UniCredit will began celebrating the 20th anniversary of its operations in Serbia. The funds raised over the course of these two months will be used by UniCredit for activities to support the society and local communities, with the goal of preserving and protecting the environment and natural resources in Serbia.
UniCredit Bank Serbia, which is part of UniCredit Group – a successful pan-European banking group – has been present on the Serbian market since 2001. During the 20 years of its successful operations in our country, UniCredit Bank Serbia has financed numerous green economy projects and conducted a large number of CSR activities. It has also been the local market leader in financing energy from wind farms, having financed five of the nine wind farm projects implemented in Serbia.
“During all the years of UniCredit’s presence in Serbia, we have always strived to be more than a bank, to make a difference and leave a mark with our operations, approach and contribution. Now
Now that we are marking this important milestone, we wished to do something together with our clients, who have always been at the core of our operations - Nikola Vuletić, CEO UniCredit Bank Serbia
that we are marking this important milestone, we wished to do something together with our clients, who have always been at the core of our operations; something with which we hope to forever pay back the community in which we live and work. We are aware of the importance of protecting and preserving the environment and natural resources. That’s why we will dedicate our 20th anniversary campaign to activities focused on specific financial assistance, as well as raising awareness of the importance of protecting and investing in our country’s natural resources, because it is only when we preserve everything that we have that we can be certain that we will be able to celebrate the next 20 years, and that we will do so in a better and nicer environment,” says UniCredit Serbia CEO Nikola Vuletić.
As part of its 20th anniversary celebration, UniCredit will publish the amount of funds raised on its website every day until the end of the year. These funds will be invested in projects aimed at protecting and preserving Serbia’s natural resources and wonders that need support the most
SUSTAINABLE CONSTRUCTION PROTECTS SERBIA
Sustainable construction reduces the consumption of non-renewable resources, promotes the use of renewable energy sources, minimises waste, creates healthier and more rational spaces for living and working, and protects the environment
The great migration of populations to all the major cities of the world, including ours, primarily Belgrade, Novi Sad, Niš and Kragujevac, has led to their accelerated expansion and development of housing. Unfortunately, this growth has a huge impact on the environment, largely negative, because developing the urban habitat requires a huge consumption of natural resources. New buildings have an impact on the environment through a large number of processes (production of building materials, transport, construction, installation of materials…) that can cause environmental damage. Also in the course of the building itself, the site produces waste and noise that also have a major impact on the environment.
The urban environment restricts freedom of positioning in relation to natural resources, but on the other hand, existing infrastructure facilitates supply construction sites and buildings; outside the city this infrastructure would have to be planned and built, affecting the environment.
Unfortunately, natural resources are not unlimited, nor are they easy to replenish. For that reason, the World Commission on Environment and Development introduced the concept of sustainable development back in 1987. It defines this as development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
When this complex concept is applied to construction and architecture, the goal is to minimize the negative impact on the environment, energy consumption, and the use of human resources. Sustainable building is reflected in the materials used to erect the building, the construction methods, the resources expended and the design in general. Although new facilities built in accordance with the principles of sustainable construction are expected to be functional and aesthetically superior, it is also important to achieve long-term energy efficiency.
Sustainable construction reduces energy consumption in all phases of the life cycle of a building, from concept and construction to final exploitation, making new and newly renovated buildings cheaper to maintain and live that use as little energy as possible. To reduce the consumption of electricity for the operation of cooling devices during the summer, you should choose thermostable or triple glass on the windows, devices that provide shade and natural cooling, advanced insulation materials in the walls, surround the building with greenery ...
Sustainable buildings often have “living walls”, roof gardens with flowers, lots of plants, trees and shrubs watered with rainwater collected in tanks instead of gutters that empty into the drains.
The principle of sustainable building puts the use of ecological materials in a high second place, at the very top of the list of priorities, to draw attention to nature protection. We must use high quality, environmentally friendly materials
The principle of sustainable building puts the use of ecological materials at the very top of the priority list to draw attention to the protection of nature
in, and more suitable for the environment. This way of building also helps the building’s users, whether of a residential or business building, to more efficiently use energy sources that are becoming more expensive and less accessible.
The concept of sustainable building is based on five eco-principles - smart design, use of environmentally friendly materials, energy efficiency, rational water consumption and environmental protection.
In the area of smart design, it is important to choose a good location, a place exposed to the sun and protected from strong winds, because this reduces heating costs, i.e. energy consumption, whether it is electricity, gas or oil ... Simply put, the goal is to design buildings with specific performance characteristics. This means long-lasting or easily renewable materials, recycled materials or those that can be easily recycled themselves. Ecological materials also include wood from sustainable sources, alternatives to cement whose production creates lower emissions of carbon dioxide and building elements that have been professionally removed from demolished buildings.
There are many smart and simple ways to make a building energy efficient, especially with individual housing because it is possible to make a house with zero electricity consumption. Energy efficiency means taking into account the consumption of energy for heating, cooling, lighting, operating machines and small household appliances,… Energy monitoring systems and solar collectors are introduced and alternative energy sources are used. Sustainable buildings are increasingly turning to the use of energy from solar panels on roofs, and around the world local windmills, geothermal pumps and various other sources are already being used.
Although every living thing on the planet depends on clean, unpolluted, healthy water, we take this very limited resource for granted. The tap should not be turned off only while brushing your teeth, water should be stored as much as possible. Although Serbia has over 400 sources of drinking water, climate change and rising global temperatures can lead to a shortage of drinking water. That this is a realistic risk can be seen in the fact that in the past 20 years, the flow of water through Serbia has dropped by 20 percent and that its quality has deteriorated, as shown by an analysis by the Environmental Protection Agency.
For this reason, the principles of sustainable construction require that in the design devices should be provided that reduce water consumption, enable its reuse, and in certain cases use atmospheric water.
A healthy environment is one of the most important eco-principles and should be protected because the natural resources that make up air, water, land, forests, geological resources, flora and fauna are not inexhaustible and eternal. To have successful and healthy communities, we must have clean air, sufficiently clean and healthy water, natural resources and a non-toxic environment.
Setting up a strong waste disposal plan at the beginning of a project will ensure that nothing will be left over that should not be. Following this advice will lead to a more responsible, environmentally friendly project in practically every respect. That is why you should always keep in mind that sustainable building is not only good for the environment, although that is a fantastic reason for adopting sustainable practices. It means saving resources and using recycled and renewable materials, while the use of sustainable materials is also beneficial for people’s overall health.
When the works are completed, the focus should be on restoring the site as close as possible to its original condition. Besides dismantling all scaffolding, removing machines and tools, and cleaning up the remains of construction materials, it may be necessary to replace the top layer of soil and sow it with indigenous vegetation.
A CAPITAL-MARKETS UNION IS THE KEY TO GREENING EUROPE
In the absence of a true capital-markets and banking union, the European Union will not be able to mobilise the financing it needs to support its green, digital transformation. Europeans must once again turn a crisis into an impetus for deeper integration
Jean Monnet, an architect of the European Union, once said that European unity “will be forged in crises, and will be the sum of the solutions adopted for those crises.” The past decade and a half has provided further confirmation of Monnet’s prediction. Contrary to forecasts by many eminent economists, the EU Economic and Monetary Union survived the euro debt crisis and is still going strong, thanks to the European Stability Mechanism. The Juncker Plan helped put the European economy back on track, and Brexit, far from breaking the EU apart, drew it closer together.
The EU is again proving its worth in the COVID-19 pandemic. BioNTech’s outstanding researchers developed a leading vaccine in record time, and joint purchases made it possible to distribute vaccines fairly and effectively (despite some initial difficulties), ensuring relatively high vaccination rates in many EU member states. The recovery plan and the European Guarantee Fund are now helping economically weaker states and regions to cope with the consequences of the pandemic. Since 2000, the EU has repeatedly demonstrated its capacity to deliver solutions and show solidarity. But the never-ending search
for quick fixes to acute crises has a major downside: the completion of the European single market has fallen to the bottom of the political agenda. Such EU-level issues played no role in this year’s German election campaign, even though a strengthening of the single market is crucial for confronting increased economic competition from the United States and China.
Europe simply is not realising its potential. The EU already has a single market for goods but not a fully functioning one for services, particularly in the otherwise booming digital economy. If a Silicon Valley start-up develops a good product, it has immediate access to a huge domestic market and can grow to the point where it can hold its own globally. But in Europe, that same start-up would have to spend its early years dealing with so many foreign tax lawyers and national regulators that international expansion would hardly seem worth it.
Europe also lacks a capital-markets union and a true banking union; and because there are significant regulatory differences between EU countries, European shareholders and corporate bond investors shy away from offerings beyond their own borders, potentially forgoing more attractive investment opportunities. This highlights the need to complete the banking union, which includes common banking supervision, a banking settlement mechanism, and a shared deposit guarantee.
European governments also must overcome their skepticism about securitisation, which is a key element of the capital-markets union. It is true that bundled loans triggered the 2008 financial crisis; but that is only because nobody was keeping a watchful eye on them. With better regulation and monitoring, securitisation can be a powerful tool for banks to unlock additional capital for new business loans and to finance investments in green technologies.
The European Commission has done well to draw up an ambitious strategy for a green, digital transformation of the EU economy, sending an important signal to the rest of the world. But the absence of a competitive capital market jeopardizes Europeans’ ambitious climate targets. Massive investments are needed this decade to transform energy, transportation, large swaths of industry, and millions of properties, as well as to protect the people of Europe from the devastating effects of climate change, which were on full display these past two summers.
These objectives will be possible only if governments work together with public- and private-sector banks to bring private investors on board across borders. Europe needs to bridge a climate action funding gap of €350 billion ($401 billion) per year over at least the next ten years. We may have become used to governments and central banks providing vast sums of money to support the economy, but this will not last forever. Interest rates will not stay so low in the long term, sovereign debt will reach its limits, and higher taxes will not be enough to finance this once-in-a-century transformation.
But the EU already has the tool it needs to close the gap: it just needs to create a true capital-markets and banking union. We can see what is achievable through common rules if we look to sustainable financing. With the issue of the first green bond, the European Investment Bank (EIB) provided an important impetus to the market for green bonds and sustainability bonds. This has resulted in a uniform market understanding of what constitutes a green or sustainable bond.
Moreover, with the EU taxonomy, there are now transparent criteria for determining which economic activities are already green or can develop in that direction. Investors have a clear set of rules at hand to use as a guide for sustainable financing. This transparency at the EU level represents a huge step forward, turning a once-derided idea into a €2 trillion market.
By CHRISTIAN SEWING, WERNER HOYER
RECYCLING SAVES BOTH THE PLANET AND MONEY
In step with the growth of global overheating and increasingly obvious climate change, recycling is becoming increasingly important, because thanks to waste management programmes, many countries are relying less and less on raw materials. It would be good for us to follow best practice
PLACES FOR RECREATION
INSTEAD OF LANDFILL
In the village of Rtkovo in the municipality of Kladovo, the Ministry of Environmental Protection supported the removal of a rubbish dump, and a recreation area will be soon be completed on the site. In a public competition, the Ministry awarded Kladovo municipality four million dinars for a land protection project to rehabilitate the site. The green area will soon be completed, with about 80 newly planted trees and shrubs. So far, 26 illegal rubbish dumps have been removed and cleaned up in the municipality of Kladovo. 150,000 SEEDLINGS OF
INDIGENOUS SPECIES PLANTED
“Thanks to the funds allocated to towns and municipalities through a public competition, Serbia is richer this year by 150,000 new seedlings of indigenous species, more than 40 per cent of which have been planted in Vojvodina, our least forested region,” said Environment Minister Irena Vujović in Sombor. Apart from afforestation, Sombor also received funds for a project to remediate the devastated land around the former Proteinka animal carcass incineration plant, and to remove an illegal dump in the village of Čonoplja. The Minister emphasised that, during September, around 500 illegal rubbish dumps were cleared throughout Serbia, and expressed the hope that no more rubbish would be dumped at those locations.
LESS CHOCOLATE AND JUICE, LESS CO2 If you want to contribute to protecting the environment, reduce your consumption of sweets, pastries, fried foods and processed meats. According to a new study by Australian experts, this will be good for both your health and our planet. Professor Sarah Forbes, a dietician at the University of South Australia who
has conducted 20 studies on the environmental impact of food consumption in Australia and New Zealand, recommends on the one hand a regular daily intake of fruits and vegetables, cereals, lean meat, fish, eggs, nuts, seeds, legumes, milk, cheese and yoghurt, and on the other hand points out that the production of meat, cereals and dairy products greatly contributes to CO2 emissions. But however much pollution is caused by the production of these foods, the production of sweetened beverages, juices, alcoholic beverages, confectionery and processed meat causes even greater pollution.
THESE 10 COUNTRIES ARE
CHAMPIONS OF RECYCLING
Besides saving money, recycling waste so it does not end up in landfills reduces the emission of greenhouse gases. Introducing efficient recycling schemes means that less garbage ends up in nature, and where this has come the furthest is shown in the following list of countries that have programmes for successful waste management.
Brazil: More than 70% of waste produced is recycled, which also benefits poorer citizens. They receive tokens for transport and food in exchange for waste in recycling centres.
Austria: As many as 96% of Austria’s population sorts waste by recyclable categories.
Canada: In Vancouver, leftover food is not thrown in containers, but in green compost bins. When food is disposed of properly, it releases less carbon dioxide than landfills.
Wales: currently recycles about 65% of total waste. By 2025 they plan to recycle 70% of waste, and to process the remaining 30% in waste facilities.
USA: In San Francisco, garbage is disposed of by categories: compost, recycling, landfill. The goal is to reduce the use of landfills to zero by 2030.
Switzerland: There are about 12,000 recycling points in Zurich. Recycling is obligatory in Switzerland and enforced with fines.
Singapore: has only one landfill that is mostly used for non-recyclable plastic, all other non-recyclable waste is incinerated.
South Korea: Until 1995, the food recycling rate was 2%, but today it is 95%. All waste is categorized and must be compressed before recycling.
England: Leeds had 12,000 tonnes of glass waste last year, this year it now has 700 bottle banks located across the municipality.
Germany: Thanks to education and a consistent waste management policy, Germany recycles 70% of all waste, the most in the world.
PEOPLE NEVER WONDER HOW MUCH
WATER THEY ARE WEARING
If fashion did not change from season to season, or even more often, 10,000 items of clothing would not end up in UK landfills every five minutes. This costs over 140 million pounds every year, but the problem lies not only in wasting money and clothes that could still be worn, but also in the harmful impact of “fast fashion” on the environment.
Research by GAP has shown how “clothing consumption” affects climate change and harms the environment, because it takes: 7,250 litres of water to produce one pair of jeans 3,350 litres of water to produce one sweatshirt or sweater 1,500 litres of water to produce one T-shirt or shirt 850 litres of water to produce one pair of underpants or boxers 550 litres of water to produce one bra 375 litres of water to produce one pair of socks
And as the average person in the UK has five pairs of jeans, seven sweatshirts or sweaters, 10 T-shirts, 34 pieces of underwear, 22 bras and 22 pairs of socks, that means that she spent 36,250 litres of water on her jeans collection, 23,450 litres for sweatshirts and sweaters, for T-shirts and shirts 15,000 litres, and for underwear 45,950 litres of water. The average person drinks 691 litres of water a year. This means that our collection of jeans consumes 52.5 years of drinking water for one person.
THE WISE SWEDE THROWS
NOTHING AWAY, NOT EVEN
A DEAD CHRISTMAS TREE
In an attempt to increase sustainability, Stockholm found an unusual ally, used Christmas trees and other garden waste. The Swedish capital uses green waste to power homes and reduce its CO2 footprint. In Stockholm, people all over the city collect garden waste and dead Christmas trees from their neighbours and city parks to turn them into an environmentally friendly type of charcoal called biochar, a valuable soil supplement. The city of Stockholm produces about 300 tons of biochar every year, the equivalent of “removing” 700 cars from the city streets. The huge amount of energy produced in the process of biochar production is used by the city to power its district heating network.
Issue No 3
COMMENT THE STATE AS AN INNOVATOR
For emerging economies, building a digital economy presents a challenging task in which governments play an important role in fostering innovation and the adoption of new waves of digital technologies. Indeed, the Serbian government has embraced all of these tasks in close cooperation with businesses, academia and the civil sector
Governments have played a dual role in shaping innovation systems throughout history, both through their policymaking and as strategic investors in technology applications, as means of supporting the transformation of society. The state’s role in this endeavour is even more pronounced today, when it is of outmost importance for the economies to catch up with accelerated digital transformation.
Although opposing views exist, such as that the state should step aside and leave everything to the private sector, the pandemic clearly showed that innovation and technological transformation are indeed important areas of state influence. In Serbia, e-government services represented the backbone of the societal response to COVID-19 by providing smooth online services covering everything from vaccination, via tax payments, to enrolling children in nursery school.
There is increasing demand for an entrepreneurial state that will play a variety of roles in creating the digital economy. If there had been no state strategy, countries like Singapore, South Korea, Finland, Sweden, Israel, Estonia and China wouldn’t stand as the leaders in that area today. These examples clearly suggest that the state has a role to play in nurturing national digital ecosystems, but also in building innovative and inclusive digital economies.
Of course, we aren’t talking about the old-fashioned state, which creates rules and expects everybody to dance to their tune; we’re talking about a state that’s Examples of prosperous countries show that governments have played key roles in promoting a dynamic innovation ecosystem, in partnership with businesses, academia and the civil sector
ready for partnerships with a variety of actors - from academia, to business, start-ups and the civil sector - and keen to evolve in harmony with the needs of the economy and society.
By its very nature, innovation is both driven by and a driver of digital transformation. Under such circumstances, the state doesn’t only have a role to play in enabling digital transformation, but rather also in making targeted investments. Some domestic examples are the state Innovation Fund and the Science Fund, which both play a role in enhancing innovation and pushing certain sectors, identified as being the most promising, through the process known as the Smart Specialisation Strategy. This methodology is used throughout the EU to identify innovative potentials in each of the economies of EU member states and membership candidate countries.
For emerging economies, introducing a digital economy represents a shifting task in which the governments don many hats in order to foster innovation and the adoption of new waves of digital technologies, as well as to support the assimilation and dissemination of these technologies across the economy as a whole.
If one inspects closely which role the Serbian government is playing in this process, it will soon be discovered that its tasks include the creation of enabling policies, boosting production of human resources, creating new institutions and implementing targeted infrastructure and platform investments, in order to secure the promised digital dividends.
WE SHARE THE SAME VISION OF DIGITAL NETWORKING WITH EUROPE
The introduction of the 5G network will undoubtedly provide a strong impetus to Serbia’s overall development. Serbia has today already secured 4G mobile network coverage for more than 95% of its population, which has also enabled uninterrupted work from home, as well as the use of broadband services, under the conditions of the COVID-19 pandemic
Serbia is yet to await the introduction of 5G. And once it is initiated, it will bring significant flow rate increases with reduced delays, which is essential to efficient automation and other processes that are important to the development of industry. “There are numerous examples of potential applications for 5G networks, and they encompass areas like agronomy, the auto industry, telemedicine, application in mining, application in transport and storage. The introduction of the 5G network will undoubtedly provide a strong impetus to Serbia’s overall development,” says Serbian Tourism, Trade and Telecommunications Minister Tatjana Matić.
Intensive work has been undertaken on the development of broadband infrastructure in Serbia over the last few years, in accordance with the adopted strategic framework. Telecommunications operators are developing their networks in line with the latest trends, which includes the installing of fibre optic communications infrastructure and increasing the coverage and capacity of mobile networks. 4G mobile network coverage has today already been provided for more than 95% of Serbia’s population. This has also enabled uninterrupted work from home, as well as the use of broadband services, even under the conditions of the COVID-19 pandemic.
“A significant number of innovative companies operate in Serbia, both developed ones and small start-ups. 5G technology creates the opportunity to
develop innovative new products and services, and to generally automate many processes, which is a chance for each of these companies,” says our interlocutor.
Although we’ve markedly improved quality of life thanks to esolutions, particularly during the pandemic, technologies – especially 5G – have become the subject of the kinds of conspiracy theories and fears that aren’t unknown to our society. How do you combat misinformation and to what extent can such phenomena threaten the ultimate application of 5G in our country?
It is necessary for the public to be familiarised with verified and scientifically grounded information related to the application of new technologies. The leading organisations that analyse research on the effects of electromagnetic radiation and define recommendations in connection with permissible levels of radiation – the most famous of which are the International Commission on Non-Ionizing Radiation Protection (ICNIRP) and the World Health Organization – conducted research that relates to the impact of electromagnetic radiation. When it comes to the situation in our country, Serbia has much more stringent criteria on the prescribed values of permitted radiation levels than those defined in official international recommendations. In this regard, within the scope of the nationwide EMF RATEL project, sensors have been installed at points of interest and continuously measure the electromagnetic field levels of electronic communication networks (88 sensors in 39 cities) and the results of that measurement are available publicly. All values measured to date have been lower than the prescribed values permitted.
Where does Serbia stand today, in relation to comparable countries, when it comes to the development of e-commerce?
In the first half of 2021, according to data from the National Bank of Serbia, almost 11 million transactions were made in dinars (on the websites of Serbian traders), which is 91 per cent more than in the first half of last year. At the same time, those transactions had a total value exceeding 25 billion dinars, which is up 99 per cent compared to the first six months of 2020. E-commerce is achieving high and relatively stable annual growth rates globally, and those rates have outpaced growth in traditional commerce by far. The fact that crises like the outbreak of the COVID-19 pandemic have only served to further accelerate the growth of e-commerce shows that this is an extremely stable business model that’s been affirmed by the market and deserves the credit for generating more than a third of total GDP globally.
Growth opportunities for e-commerce in Serbia have been utilised thanks to new laws in the areas of e-business and e-commerce, but also in the field of information security. This enabled the swift redirecting of many activities to the online environment and, despite the circumstances brought by the pandemic, the digital transformation of all forms of social functioning continued.
The Ministry of Trade, Tourism and Telecommunications’ capital projects for the development of infrastructure will further accelerate citizens’ inclusion online. This relates primarily to the domain of education and the less developed parts of Serbia
The Ministry of Trade, Tourism and Telecommunications’ capital projects for the development of infrastructure will further accelerate citizens’ inclusion online. One of them is the project to build local computer networks, which was last year implemented in about 940 schools and will be finalised in approximately another 950 schools this year, as well as the project to build a broadband network in rural areas for 600 settlements that are home to around 90,000 households, thereby raising the digital connectivity of our society significantly, and with it the need for e-commerce and new digital services.
You’ve announced amendments to the Law on Trade that will introduce, among other things, digital delivery notes. How prepared are our companies to accept these kinds of changes?
“Digital delivery notes” will not be an obligation, but rather an opportunity. As has been the case to date, businesses will still be able to use delivery documents that accompany goods in transport in paper form, with their own signature. So, there will be no additional costs for traders, hauliers and manufacturers. Considering the fact that a large number of companies already use delivery notes in the form of an electronic document, we want to facilitate their operations and ease the obligation to use a qualified electronic signature. With this change we can speed up the work of people on the ground, reduces costs and avoids unnecessary contacts that can pose a risk to human health, particularly during the time of a pandemic.
Your Ministry is currently working to prepare a trade strategy for Serbia until 2025. What kinds of changes do you anticipate digital transformation will bring to this sector?
The development of information technologies and digital transformation have already had a great influence on the development of trade around the world, and even in Serbia. The specific market circumstances caused by the pandemic, in particular, have accelerated the development and implementation of digital solutions within the scope of retail operations and directed shopping towards the internet.
The digitalisation of trade is moving in three directions. The first direction implies the evolution of physical channels, through the incorporating of the latest technologies. The essence will be in the development of new marketing channels, which will maximise the value for customers, while the focus will be on digitalising the consumer experience within retail facilities, then on the digitalising of payments, as well as digitalising communication with customers both inside and outside the shop. The second direction in the digitalisation of trade implies the integrating of digital and physical sales channels. Traditional retailers are introducing digital channels to their business model, thereby becoming multi-channel retailers. By intensifying integration between these channels with the help of technologies like artificial intelligence, ERP software and massive data analytics, retailers will transition to a form of sales that includes all channels. The same
applies to exclusively e-traders, who also switch to the multi-channel sales model by entering into business with physical sales facilities. The third direction implies imitating the characteristics of physical sales in a digital environment. E-merchants can thereby overcome barriers to buying and any aversion to online shopping. The key is in reducing risks when making purchases. This relates to the new format of so-called virtual stores, where customers have an opportunity to behave as though they’re in a real environment, choosing products from shelves while simultaneously buying them in real time.
When it comes to the development of policies in the field of digital transformation, how much does your ministry rely on the academic community and Serbia’s growing start-up community?
The competent Ministry, as well as other institutions of the Government, are in close communication with the private and academic sectors. This cooperation has resulted in an array of advanced regulations and incentive measures for the development of innovative ideas, which were developed in cooperation with the Serbian Chamber of Commerce & Industry, E-Commerce Serbia and NALED, within the scope of Ahead of us are further joint efforts towards integrating the region into the pan-European digital zone, which will lead to us becoming a digitally driven economy based on EU standards and practices
the Serbia Creates platform. The Office for IT and eGovernment is working on the development of new services and innovative solutions in these domains and significant progress can be expected in this aspect.
Podgorica recently hosted the 4th Western Balkan Digital Summit. How far have we advanced since the first summit, both as a region and at the national level?
This summit, dedicated to furthering cooperation in the field of digital transformation around the region and the digital perspective in the context of European integration, is of exceptional importance to achieving shared prosperity among the economies of the region and its connection to the European Union’s single market. In the period of crisis caused by the pandemic, it is even more important to have a shared vision of digital networking and – as the main force for economic growth – that should be extended to the struggle against current challenges. Significant steps have already been taken in the framework of the Digital Agenda for the Western Balkans with the abolishing of roaming tariffs on the territory of the Western Balkans, which additionally confirms the Republic of Serbia’s commitment to regional networking with the European Union market. The applying of this European principle has already yielded visible results in the form of eased communications and business operations in the region, and I’m convinced that we’re on the right track and that – despite the challenges and difficulties prompted by the pandemic – we’ve made exceptional progress in the area of digitalisation.
Government services increasingly use improvements to E-solutions in their own work. How do these tools help when it comes to combating the grey economy?
A large number of examples of successfully transitioning to online work exist In Serbia, as well as examples of digital transformation. These include, for example, the education system, remote personal shopping, the banking system and operations with citizens. We would also single out the services available via the eUprava [eGovernment] portal, which ease citizens’ everyday lives and improve the efficiency of the operations of enterprises. Special mention should be made of the struggle to combat the grey economy in the field of e-commerce, where the bolstering of the legal framework to prevent illicit trade certainly proved crucial. Likewise, a special contribution to this is also provided by public campaigns that don’t only encourage electronic transactions, but also raise awareness of the importance of legal transactions to economic growth as a whole. Our Ministry has conducted multiple media campaigns that inform citizens about the benefits of e-commerce. One of the most significant activities implemented with the aim of combating the grey economy was the campaign “Take your receipt and win”, while the campaign “Click for sure, buy verified” is currently underway and aims to raise awareness among citizens about secure and legal internet-based trade.
INTERVIEW WE HAVE CONFIRMED OUR LEADERSHIP IN INNOVATION
The digital transformation in the age of Covid 19 was for many both a leap forward and a necessity for survival. For Serbia, this meant enabling a great step forward and laying the foundations for rapid innovation and establishing leadership in this part of Europe
If we look back today, we can say that Serbia reacted quickly, had the knowledge and strength to respond to Covid 19, and take care of its people’s health. This would not have been possible without a well-laid foundation.
“For digitalization, it is very important that in the previous four years we had established the necessary infrastructure and developed several electronic services to transform the public administration into an efficient service for the public and for business,” says Dr Mihailo Jovanović, director of the Office for IT and e-Government. “Thanks to this there were key moments when we implemented new platforms and electronic services practically overnight, enabling the public to access many state services online even during the pandemic.
“By establishing innovative solutions and electronic services we aimed for the best coordination of health care, education and other key systems in a pandemic, timely and accurate information for all and continuous provision of services to business and the public. “Serbia has positioned itself as one of the 5 countries in the world with the largest number of innovations during the Covid 19 crisis.
“Aware of the need to respond quickly and efficiently to provide emergency immunization of the population from
EDUCATION
By the end of 2023, all schools will have broadband wireless Internet, digital textbooks, digital classrooms and computer labs.
11 January 2021, we enabled Serbians to express interest in vaccination against Covid 19 by filling out a simple questionnaire on the e-Government Portal www.euprava.gov.rs or through a contact centre on 0800 222 334”, says Jovanović.
To avoid unnecessary crowds in laboratories and exposing people to the virus, the e-Schedule appointment service for PCR testing on personal request was launched. Anyone waiting for the result of a Covid 19 PCR test can receive it by e-mail or on the e-Health Portal www.e-zdravlje.gov.rs.
“When we realized that citizens need a documented certificate showing vaccination, PCR test result, confirmation of the presence of Covid antibodies and recovery from the disease, we developed the Digital Green Certificate with all the information from the Covid system in one place. A few days ago, the EUcompatible Digital Green Certificate electronic service was launched, with which people can freely enter all indoor places throughout the European Union and 22 non-EU countries in this system”, concludes Jovanović.
What are the most important directions for continuing the digital transformation in the Serbian Government’s view today?
State Data Centre in Kragujevac. The Office for IT and e-Government established this Centre in record time as one of the most modern in the region in technical and security standards. It houses the key information and communication infrastructure of the Republic of Serbia. The centre meets the highest standard of reliability, and data centre services are provided in accordance with the security standard ISO 27001, the quality standard ISO 9001 and the service quality standard ISO 20000.
Besides storing the equipment of state bodies, the State Data Centre also INNOVATION
During the Covid 19 crisis, Serbia positioned itself as one of the 5 countries in the world with the largest number of innovations
provides the Government Cloud service. Data and equipment are stored here for various state institutions, including the Ministry of State Administration and Local Self-Government, the Central Register of Compulsory Social Insurance, the Ministry of the Interior, the Ministry of Finance, local tax administrations, the Ministry of Agriculture, the Agency for Medicines and Medical Devices and many others. The centre also contains equipment and data of the Office for IT and e-Government and the state Oracle cloud infrastructure. We are slowly starting to implement electronic services used by local gov-
Serbia is a good and reliable partner for foreign investment in the latest technologies, and is a regional IT leader for the entire region in the era of the fourth industrial revolution
ernments, so the plan is to launch an electronic office, but also a system for communication between people and their local governments.
The Data Center also has commercial users. What does this mean for Serbia?
The fact that the State Data Centre in Kragujevac also has commercial users is another strong impetus for further development of the IT sector and innovation, for technological revival and for Serbia’s leadership in this part of Europe. The American IBM and Vmware, the Chinese Huawei and many domestic IT companies that have already signed commercial contracts, keep their data in the State Data Centre in Kragujevac. We recently signed a memorandum of understanding with Oracle Corporation, one of the world’s TRUST
The fact that the state data centre has commercial users is a strong impetus for further development of the IT sector and for innovation, technological revival and Serbia's leadership in this part of Europe
IT leaders, as a potential commercial user. This is another confirmation of the government’s results in digitalization, investment in the most modern data centre infrastructure, and human and technical capacities in Serbia.
Cloud infrastructure is the basis for developing innovations in healthcare, retail, banking and other industries. How ready are the public administration and businesses to use these opportunities?
Cloud is a practical reality of the public administration. There is no longer a need to procure independent hardware systems such as servers and storage. The Office for IT and e-Government has provided a variety of cloud systems based on Oracle, Vmware or IBM technology, which enables a fast response, agile implementation of new electronic services and savings in the purchase of equipment and licenses.
The development of artificial intelligence also raises a number of ethical issues. Do you think that they have been answered in an exemplary way in the Strategy for the Development of Artificial Intelligence, or do we need other regulations?
The National Strategy for the Development of Artificial Intelligence for the period 2020-2025 was adopted at the end of 2019, and Serbia is the first country in the region of south-east Europe and only the 26th in the world to adopt a national Strategy of this type. Businesspeople and the academic community also participated in writing the strategy, and one of the key items that was highlighted in order to accelerate the development of AI in Serbia is infrastructure support. Another of the items was the establishment of the Research and Development Institute for Artificial Intelligence of Serbia and the National Platform for Artificial
Intelligence, which is located in the State Data Centre in Belgrade. The goal of establishing this platform is to improve and expand the technology of artificial intelligence in Serbia, to support scientific research in the field of artificial intelligence, and to improve services and ensure the application of artificial intelligence in industry.
A supercomputer was recently delivered to the state data centre. What does this mean in practice for the Serbian economy, for startups in Serbia and Serbia’s positioning in the field of artificial intelligence in general?
community to use data from Serbia in Serbia, without sending it abroad. In this way we provide additional services to our startups and researchers - so far we have had space, support through funding, support through consulting - legal and financial, and now we are adding IT infrastructure for the development of artificial intelligence - the infrastructure of the future. The first users of the National Platform are the Research and Development Institute for Artificial Intelligence and the Institute for Molecular Genetics and Genetic Engineering, 7 technical faculties in Serbia: University of Belgrade (School
As one of the measures from the strategy envisages the establishment of the National Platform for Artificial Intelligence, we very quickly established the National Platform for the Development of Artificial Intelligence to fulfill it. The Nvidia super computer has arrived at the State Data Centre in Kragujevac. More precisely, this is the infrastructure that will enable our innovative startup companies and scientists to quickly develop new AI products because they will be able to test solutions faster with timely access to this infrastructure. It is important to point out that the access to the infrastructure is at a global quality level, so they will not have to pay for it abroad and wait for purchase processes to be able to use it. This will also allow the The experience of other countries in the fundamental digital transformation of the public administration means a lot to us, but in developing them ourselves we rely exclusively on local resources because they are absolutely competent and valued on the global labour market
of Electrical Engineering, Faculty of Organizational Sciences, Faculty of Mathematics); University of Novi Sad (Faculty of Technical Sciences and Faculty of Sciences); and Electronic and Faculty of Sciences and Mathematics in Niš), the University of Kragujevac and 4 science and technology parks (Belgrade, Novi Sad, Niš and Čačak).
Any development of this type means a constant need for IT staff. How many people do we ideally need, and how fast are we getting there?
The IT market is very dynamic and changing daily. We must monitor and adapt to constant changes and challenges. Serbia has enough professional staff, but the need for staff will certainly be greater in future. That is why the government has done everything to improve the education of future staff. The key initiative is increasing the capacity of technical faculties, so the number of students has increased by about 630 places (about 20%) and the faculties have received approval to employ more teaching staff. The largest faculties have also received additional space. School of Electrical Engineering received a large amphitheater in the building of the Lola Institute, the Faculty of Mathematics received a 2,300 m2 building from a secondary construction school, and at Faculty of Organizational Sciences we are working on the adaptation of 1,000 m2 of space to expand teaching capacity.
Programming has been introduced as a compulsory subject in the older grades of primary school, and by the end of 2023, all schools will have broadband wireless Internet, digital textbooks, digital classrooms and computer rooms.
A Centre for Innovative Youth Entrepreneurship was opened at the Faculty of Electronics in Niš, where 6 young teams are already developing their ideas in robotics and advanced technologies. At Science and Technology Park Belgrade 56 companies employ over 420 engineers and have an annual turnover of more than 10 million euros, of which 60% is exports.
Science and technology parks have been opened in Niš, Novi Sad and Čačak, and the foundation has been laid for the construction of a new building for the BioSense Institute on the campus of the University of Novi Sad. The new building of the Faculty of Organizational Sciences in Belgrade will soon receive its first students.
MILAN GOSPIĆ,COUNTRY MANAGER, MICROSOFT SERBIA
DIGITALLY SHAPING CONTEMPORARY LIVES AND MODERN BUSINESS
The previous year has been a catalyst for significant changes to the ways things are done across the entire industry. Digital tools have become an integral part of all processes, especially in the collaboration arena. Digital transformation has turned out to be in the focus of every successful company and is yielding superb results
The past year has shown how business should be transformed, as it distinguished the already successful companies that have already embarked on the digitalisation journey and have, thus, gained a starting advantage. Similar things have also happened in society. We are bearing witness to the increasing number of digital services used by citizens and a rise in the general need for digital knowledge.
How is your company trying to improve knowledge, as the basis of the digital transformation?
In response to growing requests to acquire new skills in the digital world, Microsoft opened three free learning platforms within its Global Skill Initiative: LinkedIn, Microsoft Learn and GitHub. The main goal is to enable access to learning and acquiring of the knowledge necessary for digital transformation. This programme has also been applied and supported in Serbia. More than 50,000 people from Serbia have attended free education courses, placing our country at the very top of the list of CEE countries. Such a large number of participants was also due to the program which was launched with support of Government of Serbia, Ministry of Labour, Employment, Veterans’ and Social Affairs and Ministry of Education, Science and Technological Development, on the basis of which our partner Semos Education organised free education courses as way of supporting the Global Skill Initiative, as well as cooperation with three Comtrade education institutions. Along with acquiring the digital skills that are vital for most desirable professions, the participants can also access free official training to prepare for Microsoft Certification exams; they can also pass those exams and acquire certificates. Microsoft certificates are helpful in all industries and serve as a guarantee of knowhow, so I would advise everyone formalise all the knowhow they’ve gained over the years in business and acquire some of our certificates, because they increase and ease one’s chances of gaining employment, earning a promotion or developing one’s career in general.
What does digital transformation mean in practice? Are there any obstacles to its further development and, if so, what are they?
What is essential to understand is that there is no stakeholder of society in the digital transformation process that is more important than any other. The state is an undeniably crucial element in this process, primarily in terms of the legal framework, where Serbia needs to make a more substantial shift in the use of cloud services and open data, considering all the available resources without which new digital services could not be created, either for businesses or for citizens. On the other hand, citizens are equally important, as the users of all those digital services. At the end of the day, the goal of the digital transformation is to enhance the quality of citizens’ lives.
In business, digitalisation is defined by trends like hybrid work, a hyperconnected, completely digitalised business environment, and cybersecurity. Each organisation needs a collaboration tool that will bridge physical and digital gaps, thus creating the need for a hybrid way of working. The whole of business is becoming digital and we see new ways of making and selling products with the intensive use of data and AI. All this requires multi-cloud, multi-edge infrastructure that enables the swift creation, maintenance and usage of applications. On the other hand, cybersecurity is the biggest threat to digital transformation today and is the number one risk being faced by every company and every service – not only in the business arena, but also in our everyday lives, including schools, hospitals and all institutions handling citizens’ data. Cybercrime represents a six-trillion-dollar cost for the world economy annually. Microsoft Cloud has been built for all these challenges, as the most trusted and most comprehensive cloud that powers the digital capability of every individual and every organisation, while simultaneously enabling their independence. Microsoft Cloud is built on trust and security.
DARIO AVALLONE, R&D DIRECTOR, ENGINEERING GROUP
BUSINESS ENGINEERING GROUP EXPAND R&D TEAM IN SERBIA
Italian IT company Engineering Group, which operates on the Serbian market under the name Engineering Software Lab, has announced the further expansion of its team in Serbia, with one segment of the planned expansion covering the field of research and development. In order to learn more about this expansion, we spoke with Engineering Group’s R&D Department Director Dario Avallone.
Research is one of the fun-
damental pillars of Engineering Group. What is the key approach?
Research represents the first and most fundamental phase of our innovation process. In this process, we can count on a team of 450 researchers, which ensures that we are a well-recognised player in the context of European Industrial Research. This has enabled us to set up a wide and enduring network of research collaborations, both in Europe and worldwide, including the most qualified universities and research institutes, as well as the most innovative representatives of the ICT industry and relevant “users” providing emerging needs for all market sectors. In addition, we have contributed actively to the gradual creation and development of the main European research initiatives on ICT, aiming to cluster the industrial and academic view on emerging research and innovation priorities and related implementation strategies.
We pay particular attention to the “concreteness and robustness” of our industrial research, but also to the capacity to effectively implement the technological transfer of solutions and skills produced. In other words, experimentation, innovation management and the offer are the three main objectives that form the basis of our R&D activities. This allows us to define a virtuous cycle, able to pick up new methodologies and technologies well in advance, to relate them to our customers’ business processes and thereby add value by following them all the way through their modernisation and “digital transformation”.
Which types of R&D projects is Engineering Group involved in?
We have participated in more than 500 research projects and are currently involved in more than 100 projects, with annual investment in R&D exceeding 40 million euros.
Our research projects largely pertain to innovation challenges relevant to primary markets, such as Digital Industry, E-Health, Augmented Cities, Smart Energy & Utilities, Smart Government, Societal Physical and Digital Security, Smart Tourism & Culture, Smart Agriculture, Smart Transportation, Digital Media & Communication, as well as research on enabling technologies and architectures that are core to all our markets today and tomorrow, like Cloud and Edge, Cyber Security, Artificial Intelligence, Data/BigData and Collaboration Platforms, Blockchain and Quantum Computing.
Our participation in relevant European initiatives and Associations, like FIWARE (providing “vendor independent” standard building blocks to build smart applications), Gaia-X (enabling data and service interoperability that ensures independence from physical infrastructure and/or providers), DAIRO (centred on nextgeneration technologies to exploit the value of data trough novel AI approaches) or IDSA (focusing on providing standards, architecture and software components to implement trusted data sharing within business ecosystems), represent a founding element of our success in research programmes and an essential ingredient for aligning our investments in the proper direction, in terms of
new solutions to be implemented and new skills and competences that will be demanded in order to constantly remain at the forefront of the competitive scenario.
What plans do you have for your R&D team in Serbia?
Over recent years, we’ve included several young IT professionals from Serbia in our R&D projects. They have shown exceptionally high quality of work and provided a great contribution to the success of the projects in which they’ve been involved.
We plan to focus the contribution of the Serbian Research Team on a few, well-defined research topics primarily related to Digital Industry and Smart Energy & Utilities. This is due to a significant lack of qualified researchers in ongoing and planned projects, as well as the projects’ envisaged results, which are expected to open direct market opportunities in Serbia.
We are also considering relocating at least one technological research stream to Serbia completely, but we are currently still analysing which topic could be most reasonably brought to the Serbian R&D Lab. The decision will very much depend on the availability of local universities to collaborate on a specific topic, as well as to the capability of attracting Engineering Software Lab is a member of Engineering Group, one of the main players in the field of the digital transformation of public and private companies and organisations worldwide. Engineering Software Lab currently has more than 230 employees divided between two business units: the Custom Software Development unit, which gathers developers and specialists in the fields of consulting, project management, development of information systems; and the Engineering Enterprise Solutions Competence Centre, which provides SAP technical and consultancy support, as well SAP development
the most brilliant talents who are in the process of graduating from Serbian universities over the next eight to 12 months. At the same time, the decision to create a dedicated technological Research Lab in Serbia is also related to local funding that represents an indispensable sustainability and risk reduction vehicle. This is why accurate analysis of the funding instruments and related research priorities available in Serbia will be carefully considered before a final decision is taken.
In your opinion, what can Serbia’s IT experts expect from working on R&D projects?
The specificity of R&D projects is that they bring something new, something that transforms business and our everyday life simultaneously. This means that the latest technologies have been applied in the work, which is certainly an important point for IT professionals.
A large number of people are involved in the R&D projects that we are working on. Many of them are part of our Group, but - at the same time - many hail from the network of partners, creating an incomparable working experience with distributed teams.
What is also important is that, by joining Engineering Software Lab, you are joining a large engineering family that numbers more than 12,000 employees at more than 40 locations worldwide. Being part of such a large company provides stability, while at the same time providing plenty of possibilities for personal growth.
DANILO SAVIĆ,CEO, DATA CLOUD TECHNOLOGY
MODERN TECHNOLOGIES KNOW NO LIMITS
Data Cloud Technology secured its organisational and human resource capacities and then, a little less than a year ago, began providing services to a plethora of commercial clients. Interest in DCT’s services is expressed among companies that have the highest reputation at the world level
CEO Danilo Savić says that’s he’s major optimist, because Serbia’s ICT sector is recording significant growth. Planning is one of the biggest challenges in this area, but the experts at DCT are ready to take their share of responsibility in a great job that has been launched successfully and needs to be completed in the same way.
The Government of the Republic of Serbia established company Data Cloud Technology on 17th December last year. With what kind of results achieved did you celebrate the first birthday?
Certain dynamics of implementation and development are dictated by the complexity of the system of the region’s most modern facility of its type. During the first year of operations, we formed a team of experts ready to respond to the challenges posed by the management of such a facility, standardisation was completed in accordance with the highest internationally established criteria and all security and protection subsystems were tested successfully.
Alongside the initially established cooperation with IBM and Huawei, the best example is the Memorandum of Understanding signed with Oracle for establishing Oracle Cloud at our Centre, and we also expect the signing of a contract soon. The fact that giants of the world ICT industry, such as Oracle, IBM and Huawei, have decided to cooperate with us shows that we are on the right track and is the best recommendation for DCT.
At the fair events held recently in Dubai (DUBAI EXPO and GITEX), we established contacts with leading companies in the ICT sector, so we also expect an increase in the number of foreign clients in the coming period.
Could it be said that the Centre is among the most modern in the region, in terms of technical and security standards?
According to technical and security standards, our Centre is the most modern in the region and the only one that provides 2N redundancy of all system components: power supply and cooling of IT equipment, as well as telecommunication connections. The Centre is designed in accordance with the Tier 4 standard, while the services we provide satisfy the ISO 27001 safety standard and the ISO 9001 quality standard. When we were establishing the Data Centre, we kept in mind that the key information and communication infrastructure of the Republic of Serbia is hosted here. In that sense, we are primarily orientated towards the highest technical and safety standards. Such an approach is only acceptable if we consider that the Centre hosts the data and equipment of the most important state institutions. Potential commercial users also imply that the noted standards have been met, because that’s a prerequisite for any kind of cooperation in this time of digitalisation.
Which foreign and domestic companies have signed contracts on the use of the Data Centre? Is there reason to consider expanding its capacities in the future?
The Centre’s services are used by clients from several different industries. Alongside the aforementioned international ICT giants (IBM, Huawei, Oracle and IngramMicro), we’ve also gained the trusted of companies from the telecommunications
sector (Telekom Srbija, Cetin, Orion Telekom and SOX), domestic ICT system integrators (ComTrade, AIGO), the financial sector (Srpska banka, Poštanska štedionica Banka) and the media sector (RTS). Expanding the capacities will be essential already during the next year, because the existing capacity has already been reserved to a great extent. The Centre project envisages three construction phases. The first phase was realised with the implementing of blocks 1 and 2, with a capacity already significantly filled and reserved. The second phase envisages the construction of blocks 3 and 4, which would double capacities, and all phase II construction has already been completed. The plan for phase III is to build blocks 5 and 6, in line with future needs and according to existing project documentation.
You have some of the most highly-sought services in your portfolio today. Could you tell us more about those services?
When it comes to the services that we offer, Telehousing (Collocation) is intended for clients who have their own ICT equipment that they want to install on the premises of the Centre. On the other hand, Cloud services like Infrastructure as a Service (IaaS) are directed towards users who want to rent individual virtual servers with adequate processing, memory and storage capacities. These characteristics vary depending on the needs of the client, while DCT is ready to go out of its way to meet everyone’s needs with an optimal offer.
It has been made possible to connect with all providers present at the Centre via the ‘meet me room’ and through two separate network cable, which ensures the system’s redundancy. Moreover, we also offer Hands and Eyes engineer services at the Data Centre. From our NOC (Network Operations Centre), through state-of-the-art information monitoring systems, the operations of the server, communications and all relevant statuses of equipment and services are monitored continuously, 24/7.
Given that you represent part of an industry that’s synonymous with progress, how demanding is it to make plans for the development of digital infrastructure?
We have great challenges ahead of us, but we don’t have any other option than to continue along the path we’ve set out on. Digitalisation must happen, as a phase of technological development or, stated more precisely, we have to implement it. Only if we keep pace with developed societies will Serbia have an opportunity to advance and develop in the way its citizens want, because the benefits brought by digitalisation are key to progress.
Due to everything that’s been mentioned, but also due to the speed at which this progress is unfolding, the development of digital infrastructure isn’t only the biggest challenge for the ICT sector, but also for the state and society as a whole.
What has the Centre that you head brought to the City of Kragujevac and Serbia as a whole?
With the construction of the State Data Centre in Kragujevac, this city has become one of the most important ICT centres in Serbia, alongside Belgrade and Novi Sad. As the geographical centre of Serbia, and viewed also in the context of security, With the construction of the State Data Centre in Kragujevac, this city has become one of the most important ICT centres in Serbia, alongside Belgrade and Novi Sad
Kragujevac was the most logical choice for the location to build the Centre. It is up to us to justify the trust shown and provide our contribution to the development of the ICT sector in Kragujevac, the Šumadija District and the Republic of Serbia.
Borders and distance are no obstacle for modern technologies, so I wouldn’t separate the importance of the Data Centre to Kragujevac from its importance to the entire country and region.
Improving e-business, using the latest ICT capacities to provide services to users, reducing the risks data are exposed to and contributing to digitalisation – these are all great benefits to Serbia as it aspires to keep pace with the most developed economies and countries.
VLADISLAV CVETKOVIĆ, President of the NALED Managing Board and Advisory Services Director at PricewaterhouseCoopers
ENTHUSIASM FOR DIGITAL MUSTN’T WANE
Digital transformation had a high position on the NALEDA agenda even before the pandemic, and this private-public association will continue supporting the development and use of digital services in the coming period.
“It is very important to encourage businesses to increase their competitiveness and become part of innovative world business practices through the development and application of new technologies,” says NALED Managing Board President and PricewaterhouseCoopers Advisory Services Director Vladislav Cvetković.
The StarTech project was launched by NALED, together with company Philip Morris International and with the support of the Government of Serbia, at the end of 2020. Representing the backbone of this project is the awarding of grants to small local businesses wishing to transform their operations and introduce new and innovative products and services. “We this year awarded the first 29 grants, with a total value of a million dollars, while another two funding contests await us over the next two years. This is a new way of supporting the development of entrepreneurship that sees one private company
EDUCATION
Interest in digitalisation is growing constantly, and we should continue working to improve IT literacy and promote e-services and an awareness of the benefits they bring to each individual
secure funds, and we would also like it to be an example to others to get involved in a similar way and encourage the digital transformation of our business,” says Cvetković. “The other important project I would highlight is the Small Business Informant, through which we also want to help small businesses create new opportunities for development through the accepting of cashless payments, introducing the option of selling their products online and Google mapping.”
How can you now keep this system alive and accelerate it?
It is important for the state to monitor the process of transformation through the digitalisation of its own work and procedures. It has succeeded in doing so over recent years, because – in addition to the digitalisation of tax procedures and the introduction of new services on the eGovernment portal – an electronic public procurement procedure has been established over the last year, and during the course of this year more than 88,000 procedures were announced and 36,000 launched. Fast-track preparations are now underway to start implementing eFiscalization and the eInvoice system, in which NALED is helping businesses and the public sector through a series of training courses that we are organising, as well as through the newly launched National Initiative for Cashless Payments, where we want to support up to 25,000 small businesses to also receive POS terminals when they procure cash registers, i.e., in the procurement of modern “2-in-1” devices. The most important thing is for us to work continuously to raise awareness of the importance of digital transformation and to remind citizens and businesses, through various initiatives, of the life benefits it brings them. And plenty of work still awaits us in that regard. The results of research conducted by NALED show that citizens from rural areas find it harder to give EFFICIENCY
The benefits of digital fiscalization are immeasurable when it comes to the efficiency of oversight. The amount and accuracy of data available to the tax authorities is incomparable, which will improve the efficiency of controls
up counters – as many as 40% stated that they have no intention of using eGovernment services.
There are those who suggest that we don’t need the very expensive efiscalization process at this juncture. What is your opinion?
E-fiscalization is a matter of whether we want to keep pace with trends in the development of technology and build an efficient oversight system, while at the same time considering the great benefits it brings to citizens. The existing fiscalization system was introduced more than 15 years ago and is technologically obsolete. E-fiscalization also includes the initial cost of replacing equipment, and it’s good that the state has secured subsidies, but actually, over the long run, it brings multimillion savings
With the support of the European Union, we launched a project to establish a Local e-Government Index that will enable us to analyse the level of development of local administrations and assess their ability to provide e-services
to businesses, because the average cost of maintaining and using old fiscal cash registers is around 120 euros annually, not counting the costs of storing and archiving receipts and documentation. Once the new system starts operating, there will be no more annual payments for servicing cash registers, and business owners will be able to use their mobile phones, computers and tablets as fiscal devices. Moreover, applying the new fiscalization model will ensure significant savings in terms of time, but will also drastically reduce the use of paper, which is an important step towards preserving the environment. SUPPORT
In order for us to encourage people to become e-citizens, at the beginning of this year we opened dedicated counters in almost 140 local governments, which citizens can turn to for support in creating accounts on the e-government portal
How prepared are we institutionally to continue digital transformation at this accelerated pace? In your opinion, what is the next area requiring a radical shift?
The research we conducted among representatives of local administrations showed that older officials find it more difficult to adapt to changes and have no desire to advance. Although this isn’t the case with the younger ones, they easily lose their enthusiasm due to being overburdened with work. Additionally, the digitalisation process is also slowed further by the lack of informed citizens, especially among the elderly population. This is an extra reason to devote ourselves even more strongly to popularising e-services among the local population, because we can only expect concrete results if digitalisation comes to life in all spheres of society.
Several studies conducted prior to the COVID-19 outbreak showed that SMEs don’t intend to enter into this process. And then COVID ensured that – judging by some new studies – those who were late in starting have been all but wiped from the market. What are the prevailing attitudes among companies today?
Although small and medium-sized enterprises viewed investments in digitalisation as an excessive cost prior to the outbreak of the crisis caused by the pandemic, this no longer seems to be the prevailing opinion. Judging by the NALED survey conducted recently among members of the business community, every other businessperson noted that they prefer to choose electronic services as a way of performing administrative tasks, while over 80% gave them a positive evaluation. When it comes to e-commerce, the number of shops and companies selling their goods via online stores almost doubled over the course of the past year. Also testifying to the claim that small and micro enterprises and entrepreneurs are showing a desire
to modernise their operations is the great interest in the Small Business Informant campaign, which we’ve launched in five cities. We planned to visit at least 500 small businesses, but we’re sure that there will be many more of them, due to the great interest in introducing cashless payment options and online sales.
Many public administrations also started offering a relatively wide range of e-services in a very short period of time. What are the drivers encouraging the further development of e-government at the local level today, and what are the challenges?
Since the establishment of the Office for IT and eGovernment, the state has invested a lot in the developing of e-services and the challenge lies in the readiness of local governments to adapt to innovations. In order for us to determine which regions need help the most and to map the needs and challenges of various cities and municipalities, we launched a project – with the support of the European Union – to establish a Local e-Government Index (LEI). Under the scope of this index, we will analyse the level of development of local administrations and assess their ability to provide e-services on the basis of their level of technical equipment, IT skills, training of civil servants, the capacity of service users and other criteria. We will then know precisely which challenges are confronting which local governments and will be able to help them overcome the difficulties.
To what extent have circumstances forced citizens to become digitally literate and where do you see the main “pockets” where it is necessary to improve digital skills?
The COVID-19 pandemic and work from home have certainly had a great influence on citizens changing some old habits and starting to complete most tasks online. However, although our research shows that two-thirds of citizens are aware of the possibilities of e-government, only 14% of them complete administrative tasks online. In order for us to encourage people to become e-citizens, at the start of this year we launched a project of the same name [e-građani/e-citizens] and opened dedicated counters in almost 140 Through the newly launched National Initiative for Cashless Payments, we want to support up to 25,000 small businesses to also receive POS terminals when they procure cash registers, i.e., in the procurement of modern “2-in-1” devices
local governments, which citizens can turn to for support in creating accounts on the e-government portal.
One of the major topics you address is the digitalisation of healthcare. Where should one start in this process, and how do you ensure the security of personal data in this process?
One of the first and most crucial activities in the field of digitalising healthcare now is the adoption of the Programme and Action Plan for Digitalisation in the Healthcare System, the draft of which is now under public discussion, and after that we’ll know the direction in which digitalisation will head. The basic principles are for us to digitalise services and consolidate patient data within the framework of the eCard. NALED contributes to this process with its recommendations, and the issue of personal data security has also been identified as a priority in the objective of this programme. Apart from in the context of the digitalisation of healthcare, data security is also one of the topics that we approach with great attention in other areas. During 2019 and 2020, we analysed information security and personal data protection, which shows the state of affairs at the local level. Likewise, the protection of personal data is one of the basic objectives of the LEI project, and we will also include this topic in the curriculum of training that we will organise for local governments and NGOs.
Cloud-based digital signatures are another topic that you’ve added to your agenda. What sequence of steps is required in this area for us to reach the desired objective?
The 2017 Law on Electronic Business enabled the use of cloud-based digital signatures, which was previously only feasible through qualified e-certificates. Citizens can now register with a provider and use their signature, which has eased the use of e-government services drastically. When it comes to results in practise, a new development is the recent certifying of the Office for IT and eGovernment. We are awaited in the coming period by the start of all other public administration portals accepting cloud-based signatures and connecting to the eGovernment portal, in order for this service to be able to come to life to its full capacity. Thanks to this, in the near future it will no longer be necessary for us to have smart card readers and complicated procedures to be able to easily and quickly sign documents electronically or access the desired e-services.
AGILITY AND INNOVATION ARE KEY TO PROGRESS
AIGO has spent many years continuously listening to the market and the requirements of business, investing in employee education and the creating of new IT services that provide clients with continuous development
Given that our clients have complex and multidisciplinary goals, we overview trends existing beyond the confines of an industry in order to understand all aspects of business operations and enable our clients to learn more about themselves and their clients than ever before, note CorD’s interlocutors for this interview.
The pandemic highlighted the frailties of old IT models and traditional “on-site” solutions. Who were among those that best handled and adapted to the new situation?
The COVID pandemic surprised the whole world and led to fundamental changes at various levels. It brought uncertainty
to the lives of individuals and companies, which had to change their business processes and procedures overnight. Adaptation became a global imperative, which had a direct impact on companies’ efforts to digitalise and introduce application support to business processes.
The ability of companies to manage crises and costs, through their agility and innovation, is more crucial today than ever before. Applying new technologies for informed decision-making provides essential support in these efforts. The companies that were best prepared to embrace the possibilities of technological solutions and available data showed themselves to be the most successful. This readiness was also recognised by investors, so adaptability was also very quickly reflected in the share prices of companies that harmonised their business models with remote work and life.
Contemporary business imposes ever-greater and more complex demands on the IT sector. How do you succeed in meeting all the expectations of your clients?
The fact that digitalisation is topical has made the integration of applications within and between companies extremely complex. The speed at which requirements change also imposes new operational conditions, and that’s also the case for us, as participants from the IT sector. Familiarity with business processes is something that IT consultants must have in their repertoire of skills, in order for them to be able to view the bigger picture and implement all the needs of clients. It is vital for us to communicate efficiently and transparently with the client from the outset. That’s the only way for us to fully understand their expectations, but also to proactively suggest ways for them to develop further.
When selecting technological solutions, it is necessary for companies, and us along with them, to also view the situation from the inside. We have a wide range of solutions at our disposal today, but the essence lies in the way we use that, i.e., whether a company has adapted the technologies to its strategic goals, and to what extent.
To what extent do modern IT technologies and business analytics influence the achieving of a competitive advantage? How aware of that are the people running companies?
As modern technological solutions increasingly become an integral part of business operations, so business analytics and its potential become a more visible, clearer and essential part of the system. Of course, places where progress can be made exist.
Companies are aware of this potential, and we - as consultants - are here to help organise data collection, data systematisation and data processing processes in the most efficient way. This allows these companies to receive answers to the most important performance questions, to speed up the decision-making process, optimise business processes, launch new sources of revenue, identify better market trends and identify business problems on time. And all with the aim of creating and maintaining a competitive advantage.
MARKO BOSANAC,PRESIDENT OF MONTOP GROUP
THE FUTURE HAS ARRIVED IN SERBIA
Montop Pro (member of Montop Group) has initiated a project to develop the most modern optical telecommunication networks in Serbia. This Novi Sad-based company has the human and technical capacity to conduct overall planning for the combined communal infrastructure of broader urban and rural territories
Given that this company possesses state-of-the-art equipment for installing microtubes, inflating optical microcables and connecting cable sections, as well as devices for testing and measuring the technical characteristics of optical cables, company president Marko Bosanac expects dynamic and progressive growth on both the local and regional fronts.
Insufficent attention was paid to the development of infrastructure for a long time. How would you assess current activities in this area?
By monitoring the largest investor in the region, Telekom Srbija, I consider the challenges in this area as being great, through the cycle of investments itself, such as the construction of intercity optical infrastructure and the FTTH (Fibre-to-the-Home) project. With the applying of the “optical cable to the users” concept – the future has practically already arrived in Serbia.
The need of users for ever-faster internet is growing constantly. By monitoring the latest technical and technological achievements, we decided to follow the growing demands of the market, and thus those of the end user. This is especially so given the fact that the latest technology for optical cable connections enables a link with huge bandwidth and high reliability.
Thanks to an understanding of the need for constant investment and infrastructural modernisation, we have finally reached a position where we’re not lagging behind the more economically developed countries.
As a leader in telecommunications, you are fully committed to developing information and com-
munication technologies. It could be said that you succeed in satisfying all the demands of your clients...
We strive on a daily basis to constantly raise standards within the scope of our range of services, particularly when it comes to reliability and quality. Our long-term strategic orientation is towards the implementing of services guided by world standards and the sharing of the best business practices. I’m personally convinced - on the basis of the results that we’ve achieved to date - that the family of our satisfied clients will continue growing constantly.
Could we also say that the future has already arrived when it comes to broadband internet? Are you satisfied with your participation and contribution to the development of the most modern optical telecommunication networks?
Observing the current situation, optical infrastructure has reached the doorsteps of half of Serbian households. Taking into consideration the fact that our country, like the leading EU countries, is recognised by the EBRD as a strategic partner in advancing digitalisation within the regional framework, we expect the implementation of a project to bring broadband internet to Serbia’s rural areas in the period ahead. As leaders in the implementation of works, we will be ready for the challenges ahead and will support the future development of Serbia with our full force.
By absolutely acknowledging the claim that modern infrastructure represents the first step in the digitalisation of business, and that we, as a company, provide services in the construction of telecommunications infrastructure and the design and construction of data centres, we have the right to expect further growth and development. Being competitive and accepting of new challenges are important factors that have helped build our company’s reputation as an innovative partner in the construction of public facilities for various purposes, while adhering to the principles of the economical use of energy and environmental protection.
We are strongly convinced that, when it comes to the topic of digitalisation in the regional context, the right time for Serbia and our company is yet to come.
NENAD NIKOLIN,FOUNDER & CEO OF FRACTAL DIMENSION AND CCS SOLUTIONS KNOWHOW AND INITIATIVE – THE FORMULA FOR SOLVING MODERN CHALLENGES
Interview with Nenad Nikolin, a serial entrepreneur who recently returned from the Gitex conference held in Dubai (UAE) and EXPO 2020
Nenad is the founder and director of companies Fractal Dimension and CCS Solutions, but also the start-ups Green Mask, Couch Coach, Moje Vino [My Wine], Moja Vizit Karta [My Business Card] and S&N Winehouse. He is business advisor to around dozen start-ups from Serbia and Turkmenistan over recent years, with these enterprises having succeeded in raising initial investments for their operations totalling 620,000 euros.
Could you relay some of your impressions following your visit to the Gitex conference?
This was my first time attending the Gitex conference in Dubai, and it reminded me very much of similar conferences that I attend regularly, such as MWC, 4YFN, TechCrunch and others. However, what certainly characterises Gitex are the visitors, who are incredibly curious and prepared to spend a long time in conversation with exhibitors and innovators, in order to educate themselves and learn about the latest technological achievements. I was particularly proud of the fact that, for the first time, I had an opportunity to see the extremely well-conceived and implemented appearance of Serbian companies and start-ups. I would single out in particular the victory of our start-up Joberty, which was the pride of the entire Serbian delegation at Gitex and we all cheered for it enthusiastically.
Do Serbian companies have the knowhow and capacity to enter and compete on the UAE market?
The UAE market is very significant and large in its own right, and our companies are already operating there successfully, but it seems that our public hasn’t been made sufficiently aware of that fact. Walking along the Dubai seafront, you can’t help but notice the Smart Palms, which represent the latest application of IoT technology and were realised by a team of experts from Belgrade. So, we have the knowhow and capacity, but I would say that we lack the initiative needed to complete the success, and for us to also achieve successful results not only on the territory of the UAE, but also elsewhere in the Middle East, Asia and Africa. Dubai and the UAE are extremely important markets for us in and of themselves, but also represent the first stop to contracting business on the markets of the Middle East, Asia and Africa.
You also had an opportunity to visit EXPO 2020 and the Serbian pavilion. How would you rate our performance?
I don’t know if anyone else has already called EXPO 2020 a world wonder of the 21st century. If they haven’t, then I’ll be the
With a representative of EXPO 2020
first. EXPO 2020, at which almost all countries of the world are represented, has been conceived and implemented in such a way that it leaves you breathless, during every minute that you spend there. The ideas and innovations through which nations and states are striving to convey and present their traditions and cultures are the greatest value to have been achieved, while the fusion of music, culture and art, combined with technology, is the thing that fascinates. Serbia’s appearance has been excellently conceived, and our pavilion isn’t just the base for Serbian entrepreneurs in Dubai, but rather is very well attended, having recorded more than 300,000 visitors over the period of a month and a half.
Did you manage to hold business meetings in Dubai?
Yes, we had meetings every day, both at Gitex and at the Serbia Business Hub, which was formed at the initiative and with the support of the Serbian Chamber of Commerce & Industry and the Government of the Republic of Serbia, and which – next to the Serbia pavilion at EXPO 2020 - represented our second home during our stay in Dubai. I would certainly single out the meetings with representatives of Dubai South, as well as those with the representatives of EXPO 2020, who showed great interest in our Green Mask product.
ZORAN ĐORĐEVIĆ,ACTING DIRECTOR OF PUBLIC ENTERPRISE POST OF SERBIA
As a public company that has always had close links to the community and focused on the needs of users – be they citizens, companies or large economic systems – Post of Serbia has been the initiator and carrier of important state projects
In continuing such a tradition, we are focused on the implementation of the most significant investments, which will have a direct impact on improving services, establishing new platforms and securing the most modern equipment - says Post of Serbia Acting Director Zoran Đorđević.
Since its creation, Post of Serbia has focused on the specific needs of its users. How do you manage to fulfil their expectations and requirements?
During the years of the pandemic, we maintained the continuity and quality of services and responded successfully to the rapid growth of E-commerce. The increase in the volume of shipments was accompanied by an increase of approximately 20 per cent in the volume of post-express shipments. We developed new routes and delivery methods and implemented measures to preserve the high quality of service. We also ensured the significant improvement of all postal and financial services, as well creating and implementing new electronic services. We achieved all of that thanks to the dedication of our approximately 15,000 employees, through responsible administration and innovation, but also with the unbridled support of the Government of the Republic of Serbia, which shares our vision that the modernisation of postal services contributes to economic growth.
You announced the opening of new facilities as soon as you took over the helm of this huge system. What is your aim?
That is related to the needs of users and the development of the economy in a specific area, so we have enabled private individuals, legal entities and entrepreneurs to join our postal network through the opening of contracted post offices and counters. With this the conditions have been created for new employment and the self-employment of citizens, the generating of additional income for entrepreneurs and legal entities, while services are made even more available to all citizens and users. We’ve planned the opening of 300 branches, in order for every settlement in Serbia to have a post office, and that forms part of the preconditions for the economic revitalisation of some parts of Serbia.
Apart from maintaining direct contacts with users, would it be right to say that you’ve advanced well beyond many others when it comes to the field of digital services?
Through our operations we follow the goals of the Government of the Republic of Serbia in the field of developing digitalisation and the information society. The faster application of new technologies, modern information and communication services, innovations and highly educated professional staff are the carriers of development plans for the modernisation of Post of Serbia and the complete reform of operations, which we are committed to achieving. We base the modernising of post office branches and processing centres, increasing the percentage of electric and hybrid vehicles in the fleet, the automating of technological processes and the creating of new digital services on the latest technological and environmental solutions and the development of robotics.
New digital services, such as the issuance of digital green certificates, Ecommerce, postal and financial services from users’ homes, a “smart” system for shipment, E-archiving, E-telegrams and E-greeting cards are just a few of our current projects related to the development of innovative approaches and services.
You’ve announced the introduction of new digital services for the economy, including E-archiving. Are you also preparing something new for your oldest users?
In partnership with the Ministry of Justice of the Republic of Serbia and the Public Notary Chamber of Serbia, we are already working on the implementation of the E-notary project, which enables the archiving of public notary documentation, as the first stage in digitalisation and centralisation of notary material. We have provided a faster and more efficient service for our oldest and most loyal users, by reducing queues and waiting times. Apart from new branches and extended working hours, we are also shortening waiting times through “smart” systems for managing queues. Moreover, as soon as is possible, we will enable the payment of affiliation fees and payments of money from current accounts at users’ home addresses.
VLADIMIR SPASIĆ,ACCOUNT EXECUTIVE, DELL EMC
I.T. IS THE FOUNDATION FOR PROGRESS
Dell Technologies has grown to become a large organisation, merging large IT companies with a portfolio that includes both enterprise solutions and end-user devices. This company is proud of its business model, which is dependent entirely on its network of partners and customers
Speaking for our magazine, Dell EMC’s Vladimir Spasić says that the company’s solutions can be found in all branches of industry, whether that’s finance, banking and insurance, healthcare, the construction sector, the petroleum industry etc.
You have an impressive portfolio that encompasses a broad spectrum, from computers and laptops, to various technical solutions. Are you proud that you succeed in satisfying even the most complex requirements of users?
User requirements vary depending on the complexity of their organisation, but also the technical requirements that they must satisfy, both internally and externally. Our company’s complex solutions are capable of responding to the equally complex challenges imposed on our clients by the market, in order for their operations to be at the highest level.
The era of digitalisation has brought us huge advancements in the sense of IT, and the need for specific solutions and even the associating of several companies is something that happens often, and all with the aim of satisfying the most complex requirements of users. We are primarily proud of our customers and their initiative to make the world a better place to live and work, and when our clients are satisfied, we’re proud of the fact that we’re in a position to contribute to their progress.
You are known for helping users to traverse the digital transformation process as efficiently as possible. In which branches of industry are you present?
The entire world has become digital in a short period, and IT – as the segment that our company deals with – forms the foundation of the new and innovative economic system. The solutions that exist in our company can be applied both to small systems and systems with technology needs that have far exceeded a pricetag of millions. Given that digital transformation is ubiquitous, and companies are increasingly striving towards digital, and their operations are turning, our solutions have become more accessible to the wider market in accordance with that trend.
IT is present in all branches of industry, and now forms the basis for the further progress of those branches, and our solutions can be found in all branches of industry, whether that’s finance, banking and insurance, healthcare, the construction sector, the petroleum industry etc.
Last year proved to be extremely successful for you, despite the fact that you spent the last three quarters working entirely from home. Does this mean that this way of working will be commonplace in the future?
There is currently great controversy about working from home, regarding what it has brought to employees, whether it has been good or bad for them, and what they actually lost by no longer working from an office. Given that no end to the pandemic is yet in sight, a question remains over what the job that we did until yesterday will look like in the future. Opinions and experiences are divided. It is certain that there has been a change to communication between employees, because the means of communication cannot replace personal contact.
Ultimately, it all boils down to individual value, and whether working from home suits someone more, the only thing that’s for certain is that the working day has been extended. The majority are of the opinion that, in the end, everything will be reduced to a hybrid way of working, between the office and the home, and only time will tell what that will bring us on the other side.
VUK KOSOVAC,Executive Board Member and Head of Retail at OTP banka Srbija
GREEN AGENDA IS OTP BANKA’S STRATEGIC DIRECTION
As the number one lender to businesses and households, and a leading provider of factoring and leasing services, OTP banka has almost 200 branches in 90 towns and cities, 306 ATMs, nearly 3,000 employees and 750,000 active clients. Over the last two years, the bank has accelerated its innovation and digitalisation, as well as deciding to embark on the path of green transition
We have a special responsibility towards society, which is why environmentally sustainable operations represent the new orientation of OTP banka. In order for our vision not to remain just an unrealised plan on paper, we launched Generator ZERO, as one of the initiatives - notes OTP banka’s Vuk Kosovac.
You are recording excellent operational results. It appears as though you haven’t experienced the crisis and pandemic solely as sources of problems?
We are a bank that solves problems; that directs its efforts every day towards being better and providing all of our clients with services of the maximum quality. When the
OTP banka is no.1 creditor in Serbia, to both retail and corporate clients
pandemic began, we found ourselves confronted by an unexpected test: to organise all processes, decisions and operations in such a way that neither clients, employees, nor results suffer. And we reached a solution that
required numerous strategic adjustments. However, that’s why we’re now the number one bank in Serbia when it comes to lending to businesses and households, with net profit of 54 million euros at the end of the third quarter of this year, representing 100 per cent growth compared to the same period of last year.
We’re recording 12 per cent growth in the retail segment, while home loan production has grown 80 per cent compared to the same period of last year. All of that combined testifies to the fact that we succeeded; that we identified and offered the best solutions for our clients.
The post-covid business environment will probably differ completely from the previous one, because it won’t be enough to merely follow technological trends. Does this mean that agility and accelerated digitalisation will be key factors of progress?
Absolutely, because our habits are changing, and much faster than predicted. For example, we’ve recorded around four million e-commerce transactions to date, which represents a year-on-year increase of 40 per cent. All these trends compel us to invest even more in development and innovation, and in our solutions being new and harmonised with shifting needs. I must stress the significance of the fact that we’re part of the strong OTP Group, because it’s important for accelerated digitalisation to have this kind of expertise from other markets. Our clients today expect new solutions in terms of card payments, integrated payment models that are simple for traders, but also the introduction of cloud certificates, which will enable them to sign documents with the bank via their mobile device, with the exception of high-capital value contracts. With this we save their time, but also the consumption paper, thereby optimising the use of resources.
We are also awaited in the coming period by the applying of an in-
We are present in 90 cities, with almoust 200 branches, 306 ATMs, nearly 3,000 employees and 750,000 active clients
novation that comes to us from the Group, which has begun working with partners to develop the fastest A.I. supercomputer in Europe. This relates to a technology that can very quickly process huge quantities of textual information and data. Thanks to this, our clients will have faster and more personalised financial services.
You recently announced a new contest for your Generator project. What can you tell us about that?
Generator Zero is dedicated to supporting and rewarding innovative projects that offer sustainable solutions that can have a real and measurable impact on reducing the carbon footprint. The contest runs until 20th December this year and is intended for SMEs and micro enterprises, start-up companies and informal start-up teams and entrepreneurs. We will award the best solution two million dinars, as well as long-term expert support in the areas of business expansion and identifying new development opportunities, while our project partners will also award valuable prizes for the best solutions.
New York-based specialised magazine Global Finance declared OTP Group the best bank in several categories. What are all the areas in which you’re the best? Is it also true that you officially have the best innovation ideas in the world?
OTP Group has received several awards from this prestigious magazine, including for the best bank for small and medium-sized enterprises and for the best bank for private banking in Central and Eastern Europe. Similarly, it also received the award for the best financial innovation laboratory in the world, on the basis of financial indicators, quality of service and innovative solutions implemented in the preceding year. For us, the accolade for the best bank for private banking is particularly important, because private banking clients have specific and very high expectations of their banks. That’s something that we recognised on time and why we’ve included in our offer - for several years already - a wide range of banking services, investment and financial advice tailored especially for them, as well as our asset management knowhow through the Eminent Package.
We understand the local private banking market and can additionally crisscross our different areas of expertise, such as corporate business, leasing and insurance, and we want to provide the most to our clients, in order for us to utilise the full potential of our activities and assets.
GREATEST SUPPORT
TO THE SME SECTOR
The Centre for Digital Transformation (CDT) is a national project for coordinating and implementing digital transformation in all private sector industries, with a special focus on SMEs
Approximately 900 companies applied for the Programme of Support for the Digital Transformation of SMEs during the previous period, with as many as 130 of them having to date implemented defined solutions, for which they received 50 per cent of co-financing - explains the CDT’s MD Predrag Nikolić.
What guided the Serbian Chamber of Commerce & Industry when it decided to establish the CDT in 2018, with the support of German international development agency GIZ?
The intention was to launch the process of supporting the Serbian SME sector, with the support of German development agency GIZ, following the conducting of comprehensive public opinion research. It was determined that a high percentage of Serbian companies lack awareness of the importance of digital transformation, and that companies wanting to take the first step didn’t know where to turn for help. In tandem with the selecting, educating and certifying of consultants in the field of digital transformation – who subsequently visited companies across Serbia and helped them in the transformation process – work was also undertaken to change the awareness of the general public, because changing the way people think is the first step towards implementation later.
The CDT has so far implemented two rounds of certifying digital transformation consultants, which were conducted according to the procedures and under the supervision of the Austrian Economic Chamber, so CDT consultants possess a certificate that’s recognised internationThe CDT has so far implemented two rounds of educating and certifying digital transformation consultants, with a third round currently being implemented
ally. The CDT is currently implementing the third round of educating and certifying digital transformation consultants, but also – for the first time – consultants specialising in artificial intelligence.
How aware are our companies when it comes to the importance and positive impact of digital transformation?
In this sense, our job encompasses multiple areas – organising and building up the infrastructure required to provide assistance to businesses in this domain, but also thorough work on education, i.e., raising awareness of the importance of change. It is very important for companies to grasp that this isn’t merely about following technological trends, but rather is a question of their long-term survival on the market and their inclusion in supply chains. The CDT was selected as the Serbian Ministry of Economy’s partner on the implementation of the ambitious Action Plan in the field of digital transformation because, among other things, we have generated direct interest in inclusion in various programmes among almost 1,500 companies over the last three years. A significant number of companies has implemented technological solutions developed through consultations with our consultants.
Has digital transformation been accelerated by the crisis that we’ve yet to emerge from?
The global crisis caused by the COVID-19 pandemic has only confirmed the necessity of changing the way business is done. The aforementioned altered conditions for doing business prompted the CDT to react very quickly and adequately, by developing – with the help of GIZ – two programmes to provide swift support to companies facing operational problems. Practice has shown – both in Serbia and in the EU – that the companies that had already taken significant steps in the area of digital transformation prior to the pandemic were incomparably more resilient to the new crisis, because it was easier for them to switch to decentralised operations; that they managed to reach their customers and clients easier and quicker; and that their financial and business flows suffered less disruption as a result of the crisis.
IVAN STOJANOVIĆ, MARKETING AND SALES DIRECTOR FOR B2B CUSTOMERS, TELENOR SERBIA TELENOR OFFERS “TURNKEY SOLUTION”
Telenor strongly supports the process of digitalising the economy, the new model of fiscalisation and market education, which is why it has designed and announced a unique, comprehensive solution
In order to support customers in transitioning to the new model of fiscalisation and to ease this process, Telenor provides a comprehensive turnkey solution - says Telenor Serbia Marketing and Sales Director for B2B Customers Ivan Stojanović.
What does this “turnkey solution” mean?
Firstly, it includes all required technical equipment, the e-Cashier device, installed with adequate software with advanced functionalities. It also includes access to the Cloud portal, with a backup copy of data in the case of a defect. The device will have a Telenor SIM card providing unlimited internet traffic in the Best in Test network. We additionally offer full support in installation and education at the customer’s location, constant customer and technical support, and a replacement within 24 hours in the case of a defect.
Finally, we provide help with the documentation required for fiscalisation, subsidy applications and filing a request to obtain the security element.
What would be your recommendation to business customers?
Our recommendation would be not to wait until the last moment. Due to the global shortage of chips and long delivery times, we urge them to apply as soon as possible, in order to secure their device on time.
How can customers apply?
Customers can apply via the Telenor website. We want to help all business customers switch to the new model of fiscalisation as easily as possible, which is why we’ve made it possible for them to complete the entire process in one place.
ADVANTAGES OF BEING DIGITAL
With the digital revolution well underway, Europe needs to speed up the introduction of adequate infrastructure, skills and frameworks in order to be able to benefit from fast-paced technology development, or it may lose its head start on the global market. Most EU member states are currently trailing the U.S. when it comes to digitalisation, as indicated by the European Investment Bank’s Digitalisation in Europe 2020-2021 report
Although the pandemic accelerated the digitalisation process considerably (63% of EU firms had implemented at least one digital technology in 2021), there are significant digital gaps that could impede the transformation of businesses in all sectors. This could impact the European Union’s micro and smaller firms, with fewer than 50 employees, in particular. They are already lagging behind in the adopting of digital technologies, mostly due to a lack of adequate skills and access to financing. Compared to 75% of large companies that are already digital, only 40% of micro companies fall into this category.
The report shows that countries (such as Belgium, Finland, Denmark and the Netherlands) that are the highest-ranked according to the Digital Transformation Enabler’s Index are also EU leaders when it comes to digitalisation, managing to outperform U.S. companies in 2020. The index monitors the extent to which national industries integrate new digital technologies and foster the start-up and innovation culture.
TRADITIONAL INDUSTRIES NEED TO
SCALE UP THEIR DIGITAL GOALS
This digital divide is also present at the sector level. Traditional sectors, such as construction, manufacturing, transportation and education, are technologically less advanced compared to ICT and advanced manufacturing players (such as automotive, electronics, life sciences, drug manufacturers and mechatronics). Going further into typical digital profiles, traditional sectors can be classified as “digital adopters”. These are usually older companies that were established long before the digital age, are still in the early phases of digital adoption and tend to use well-established technologies, such as those regulating customer relationship management. On the other hand, “digital natives” are companies established on
strong technology platforms that demonstrate digital maturity across a broad range of processes and functions.
We can also clearly see the correlation between a company’s success, productivity and employment, on the one side, and digitalisation, on the other. For example, in Finland, where the digital adoption rate is an exceptionally high 76%, labour productivity in digital firms is 37% higher than in non-digital ones.
EUROPE TAKES THE LEAD IN
CLIMATE INVESTMENT
Digital companies are driving the market forward. Rather than replacing existing buildings and equipment, digital companies invest in the development of new products, processes and services, as well as data and software. At the same time, they are more active in innovation, which is crucial for the development of new business, energy and communication models. They are expected to contribute to the pressing issues confronting the world, such as social disparities, climate change and urban vs. rural development. The EU is lagging behind the U.S. in digital innovation, in terms of patent applications for industry 4.0 technologies, and this gap has been gradually widening. While some Chinese firms are becoming serious digital players, the GAFAM (Google, Amazon, Facebook, Apple and Microsoft) are all U.S. firms, which confirms the country’s supremacy in this area.
On the positive side, Europe is a leader in green investments and climate change mitigation, embracing the combination of climate and digital solutions. Compared to the United States, the European Union excels in terms of the share of firms investing in both climate and digital (32% vs. 28%). The share of EU firms that are investing only in climate is also nearly three times higher than in the U.S. (14% vs. 5%).
CREATING CONDITIONS FOR
FASTER GROWTH
Building infrastructure to enable download speeds faster than 1 Gbps is a number one priority in addressing the obstacles impeding more efficient digitalisation across all sectors. There are companies and countries that have the potential to unlock investments in digital projects, but they require faster broadband speeds. The other underlying issues include a lack of digital skills and the absence of a central educational platform that would provide expertise and training, particularly to SMEs.
Finally, these processes should be accompanied by an enabling legislative framework and new financial opportunities, especially in the areas of innovation and emerging technologies that are reshaping the future. This is the case with artificial intelligence and blockchain technologies, where Europe is currently facing an annual investment gap of up to €10 billion. The EIB report shows that the highest number of SMEs involved in these
two technologies can be found in the U.S. (2,995), followed by China (1,418) and the EU27 (1,232). In other words, China and the U.S. account for 80 per cent of annual equity investments in both technologies and failure to address this issue could result in the EU losing the global race in these areas.
FINANCING OPPORTUNITIES
Accessing funds for digital projects remains one of the main obstacles on the market. The reason for this is that many countries lack a structured approach to digitalisation, which should entail all relevant sectors and available funds. At the same time, although banks are still among the main sources of external funding for companies, they are often unable to provide adequate lending products and expertise for digital projects. EIB data show that firms in traditional sectors use the same funding channels as they use for any other project, while digital natives tend to use more innovative and alternative funding instruments, such as hybrid financing and crowdfunding.
In an effort to address the existing investment gap, the EIB Group has developed dedicated financial instruments for digital projects. In cooperation with the European Commission, it has launched two pilot initiatives: a guarantee facility under Competitiveness of Enterprises and Small and Medium-sized Enterprises (COSME) and early-stage equity investments in artificial intelligence and blockchain technologies. Both financial schemes aim to support companies of different sizes in scaling up their digital capacities.
In 2020, the first agreement under the COSME programme was signed for Serbia, where the EIB Group allocated €60 million to its partner commercial bank. These funds are available to local companies wishing to improve their digital skills or acquire IT equipment and software, enabling them to adapt to new market demand.
THE EIB STANDS READY TO DO MORE
The other major initiative from the European Commission is support for the establishment of digital innovation hubs — networks for full-scale support for companies. In Serbia, such an ecosystem can be found in the Science-Technology parks in Niš, Novi Sad and Belgrade, which the EIB supported under its loan to the research & development sector. At these innovation hubs, start-ups can benefit from expertise to help them develop and promote their advanced products and services that often combine digital solutions.
In Serbia and across the Western Balkans region, the EIB is already seeking new financing opportunities to provide better digital infrastructure and foster the adoption of digital models in businesses. At the same time, we intend to support the development of smart, technology-based societies and skills across all demographics. In that respect, the EIB plans to roll out the Connected Schools project, providing financing in Serbia and across other countries of the region. These kinds of initiatives can offer schoolchildren and teachers the digital skills they need to meet future industry requirements and stimulate economic development and innovation.
GIG WORKERS IN SOUTHEAST EUROPE MULTIMEDIA AND CREATIVE SERVICES WORKERS LEAD THE REGION
Southeast Europe’s online labour market is becoming increasingly attractive to those with a less sophisticated skillset. The negative aspect of such a development is that these professions are paid less, and thus the total market value – measured by total generated income – is lower. On the positive side, however, is a convergence of (average) earnings between countries and between men and women
The region’s gig workers market is now stagnating, following strong expansion recorded over previous years. The leading global freelance platforms in Southeast Europe, measured by number of registered gig workers, are currently Upwork, Freelancer and Guru, where the latest measurement registered 104,988 freelancers across the region’s nine countries. This is shown by the latest report of the Public Policy Research Centre (CENTER), a Belgradebased think tank covering changes to the online labour market in the region.
Upwork is the most influential global platform in the region – representing the leading platform in seven of the nine observed countries (Serbia, Bosnia-Herzegovina, North Macedonia, Montenegro, Albania, Croatia and Bulgaria). Upwork added almost 3,000 new freelancers over the previous six months, far exceeding any employer in the region’s real economy. Upwork now has an almost 43 per cent market share, while Freelancer has fallen to a 25 per cent share and Guru represents the second dominant player on the platform market, with 32.3%.
In order for the comparison in the development of gig market to be as accurate as possible, and to counterbalance the difference in country size, the relative number of gig workers is compared to
the size of the country i.e., the number of inhabitants. North Macedonia continues to lead the way, with 249 gig workers per 100,000 inhabitants, or 87 more than Serbia, which comes second with 162 gig workers. The fact is that North Macedonia represents a “hotspot” economy for gig work – with the number of gig workers comparatively almost ten times higher than in the lowest ranking Hungary, which has only 25 gig workers per 100,000 inhabitants. A significantly higher share is enjoyed by Albania and Montenegro, although a relatively small number of gig workers are engaged in those countries.
The latest measurement brought changes related to the distribution of freelancers by certain professions. The relative share of gig workers in the two dominant sectors (creative services and multimedia and software development) fell by almost four percentage points, so they now account for just below 58 per cent of the total number of gig workers in these two professions. In addition to the drop in these two professions, a decline was also recorded in sales and marketing. On the other hand, there was a slight increase in the share of gig workers in professional services, administrative services, data entry and writing and translation.
Though relatively small, the scope of the changes is not insignificant. Specifically, these trends indicate that Southeast Europe’s online labour market is becoming increasingly attractive to those with a less sophisticated skillset. The negative aspect of such a development is that these professions are paid less, and thus the total market value – measured by total generated income – is lower. The latest measurement showed significant changes regarding the comparative advantages of the countries in terms of professions.
Albania has the highest values in two areas relative to the regional average, and to all the other countries in the region. These are professional services – a new area – and sales and marketing, as was the case in the previous measurement. It is uniquely assessed against this characteristic, as no other country has two areas of pronounced advantage relative to the other countries. Furthermore, Albania also has a more significant advantage in software development.
Looking at all professions, BosniaHerzegovina, Bulgaria, Montenegro and Croatia show the lowest level of specialiasation, as there are no professions with the highest share in any of those countries relative to the other countries of the region, or that deviate significantly relative to the regional average.
The dominant occupation among gig workers in all other countries is multimedia and creative services, with the exception of workers from Hungary, where writing and translation lead the way.
Romania, with the second largest population of gig workers in the region (after Serbia), became a regional leader in software development. In North Mac-
WHAT IS GIGMETAR?
Gigmetar looks at developments in the gig communities of Serbia and Southeast Europe: Hungary, Romania, Bulgaria, North Macedonia, Albania, Montenegro, Bosnia-Herzegovina and Croatia. This index seeks to identify the structural aspects of the gig labour market and the similarities and differences between gig workers in the region, as well as identifying trends and evolving changes.
edonia there is a pronounced comparative advantage in data entry and administrative services.
Serbian gig workers continue to dominate in multimedia and creative services – the highest number of freelancers is concentrated in this area and their share exceeds the regional average by 5.2 percentage point.
Our sample is dominated by men in platform work: 635 of the 1,000 sampled. Nevertheless, the latest regional measurement shows a 2.1 percentage point increase in the share of women, primarily thanks to a higher number of women among new freelancers. The share of women increased in all of the region’s countries except Croatia. Considering gender structure by country, significant changes are noticeable. Namely, although men constitute more than half of the gig population in each of the countries of the region, the percentage of female gig workers in two countries (Albania and Montenegro) still exceeds 40 per cent. A higher share of women relative to the regional average can also be found in Bulgaria, Hungary and North Macedonia. The latest measurement again shows the most unfavourable gender structure in Bosnia-Herzegovina.
The demanded average hourly rate remained practically unchanged relative to the previous measurement. One may conclude that the labour market has stabilised, at least with respect to hourly rates. Croatia remains the country with the most expensive workforce ($24.04/h), and North Macedonia remains the country with the cheapest workforce ($16.05/h). Hypothetically speaking, if a Croatian freelancer worked 176 hours (the maximum number of possible work hours in regular employment) in August and earned an average gig worker income, he would have earned $1,406.24 more than a colleague in North Macedonia who had the same level of engagement and earned the average hourly rate applicable in his country.
Differences among countries are also evident with respect to the demanded average hourly rate. It only exceeds $20 in the countries that are EU member states. However, all of them – along with Albania and Montenegro – recorded a decrease in the average hourly rate. This was most pronounced in Croatia – 72 cents per hour – and least pronounced in Montenegro – only 0.02 cents per hour. On the other hand, the other three countries that have significantly lower average hourly rates recorded increases: from 0.81 cents in Bosnia-Herzegovina, to more modest increases in North Macedonia (0.26 cents) and Serbia (0.19 cents).
The positive consequence of the pandemic identified in the previous period (convergence of (average) earnings between men and women) was also confirmed by the most recent measurement. The average hourly rate of women increased by 2.4%, meaning that they earned 83.54% of the average hourly rate of men in August. The initial negative impact of the pandemic on the convergence of income (recorded in May and October 2020) seems to have definitely disappeared.
DIGITAL DIRECTION THE WORLD ENTERS A NEW ERA
For more than a year and a half, the global pandemic caused by the Covid-19 virus has been shaking the whole world, leading to changes in lifestyle and work, changes in habits and needs, but also to an accelerated development of state-of-the-art technologies, digitalisation and public and private sector transformation. The world will never be the same again, because the future has already begun
ONLINE PURCHASES DOUBLED
The number of online purchases in Serbia increased from seven million in 2019 to 14.3 million in 2020, and the total investment in e-commerce consumption in Serbia is expected to exceed 400 million euros this year. In step with this colossal growth, in early 2021 the Ministry of Trade, Tourism and Telecommunication in cooperation with the United States Agency for International Development (USAID) compiled an e-commerce guide to educate traders about what e-commerce is and what regulations govern it, and to provide practical advice to improve this way of shopping.
It turns out that e-commerce is the fastest growing segment and has proven more resilient than traditional commerce. The largest growth in the pandemic, more than 300 percent, occurred among e-traders of sports equipment and items, those who sell large and small household appliances, food retailers, but also delivery services.
5G IS NOT LATE IN SERBIA
“The introduction of the 5G network is not late. Four operators are interested in the allocation of radio frequencies for the network – SBB, Telekom, Telenor and A1 – and the regulatory framework exists as a condition for starting the process of public bidding for the allocation of frequencies”, said Vladana Radisavljavić Đorđević, head of the group for the planning and development of electronic communication networks and services in the Ministry of Trade, Tourism and Telecommunications, speaking at a meeting organised by the Serbian Informatics Society at the Serbian Chamber of Commerce & Industry.
On the basis of the existing regulatory framework, the Regulatory Agency for Electronic Communications and Postal Services RATEL has announced a public invitation to operators this summer to apply for the use of certain radio frequency bands. As proof that the introduction of the 5G network is not late, the meeting was presented the example of Great Britain, which had no 5G stations in July 2019, while many British cities are now covered by this network.
QUALIFIED ELECTRONIC SIGNATURE
IN THE CLOUD COMING SOON
The Office for IT and e-Government of the Government of Serbia is carrying out a certification that will enable the public to quickly and easily obtain a qualified electronic signature through an application on their phones. The office is working to simplify the use of the qualified electronic certificate, to ensure that as many Serbian citizens as possible use an electronic signature.
There are currently five certification bodies in Serbia that issue qualified electronic certificates, and the novelty prepared by the Office for IT and e-Government is that it will not be issued on a plastic card or USB, but will be available on a mobile phone or tablet. Everyone who has the ConsendID application will be able to receive an electronic signature free of charge. The application will be protected by a pin known only to the user.
INVESTMENT ALWAYS PAYS
Until March 2020, the development, and even the application of new technologies followed strictly defined long-term plans, but with the beginning of the pandemic everything changed. It became necessary to do practically overnight what before was planned for months or even years. The design and introduction of new tools, processes, applications and services, primarily those that enable and facilitate remote work, has become a practical matter of life and death.
As a result, new technological tools have emerged, the digitalisation process has been accelerated and new directions of development have been defined. Among other things, it has been shown that special attention should be paid to training staff to raise the level of their IT literacy, and to developing and using new tools that enable work from anywhere. Precisely because of remote work, it has been shown to be especially important to work on the development of security systems because every workstation (computer) outside the company’s security system is more susceptible to attacks and intrusions from outside.
THE STATE IS PREPARING A PLATFORM
FOR ARTIFICIAL INTELLIGENCE
The first state platform for artificial intelligence will be located at the Data Centre in Kragujevac. The platform will be the result of the government strategy for the development of artificial intelligence for the period 2020-2025. An action plan states that a platform for the development of A.I. will be established and made available from the cloud to universities, colleges and other institutions to help them work on various projects related to artificial intelligence.
MENTORS HELP PUPILS START WORK
In the next few months, more than 25 mentors from some of the best-known IT companies and institutions in Serbia will share their professional experience with pupils of specialised IT departments all over Serbia, answer their questions, help choose a faculty, and later an employer or a field in which start their own business.
Career 4.0, a programme of free mentoring support, was developed in response to an analysis conducted by the Digital Serbia Initiative with students talented in IT who are foreseen as the bearers of further development of the digital economy of our country. The opinions and attitudes of over 300 high school students from 17 towns showed that students do not have enough opportunity to become acquainted with present and future professions.
Among the mentors are experts in software development, telecommunications, gaming, project management, biostatistics, marketing, management, biotechnology...
DATA CENTRES AND MODERN SOFTWARE
FACILITATE VACCINATION
E-vaccines and the example of vaccination in Serbia show how important the digitalisation process is in everyday life. Mihailo Jovanović Ph.D., Director of the Office for IT and e-Government, explained that in the case of immunisation against the novel coronavirus, the rapid distribution of data and their application in real conditions was crucial.
When the vaccination started, all development experience, not only of data centers but also software, was used to set up a vaccination system within three weeks. The vaccine’s arrival in Serbia was monitored in real time, how it landed, how it spread around Serbia, where it moved, how it was stored in warehouses, how it was administered... On the other hand, people expressed their desires on the e-Government portal, and depending on those wishes, the state managed the procurement of vaccines, distribution and storage.
40 MILLION DINARS FOR
DEVELOPING ARTIFICIAL INTELLIGENCE
In the state Strategy for the Development of Artificial Intelligence, Serbia has announced the establishment of the first Institute that will deal with research into its application in various fields. The goal of the work of the Institute, which will be established in Novi Sad in Vojvodina, is to create future staff and attract investment in the field of artificial intelligence.
From the budget of the Ministry of Education, Science and Technological Development, 40,000,000 dinars (about 339,000 euros) were allocated to establish and launch the work of the institute, which, according to Boško Nikolić Ph.D., from the Faculty of Electrical Engineering in Belgrade, represents only one stepping stone in the building of A.I. in Serbia.
A.I. is intelligence exhibited by machines. Systems based on artificial intelligence can be based solely on software and operate in the virtual world (virtual assistants, photo analysis software, browsers, speech and face recognition systems) or they can be built into devices - hardware (advanced robots, autonomous vehicles, drones etc.).
According to professor Nikolić, artificial intelligence in Serbia is most developed in the field of industry and agriculture, and data processing that predicts various behaviours.
