CorD Magazine, July 2022, Issue No. 213 by CorD Magazine

H.E. GILES NORMAN,

H.E. TOMÁŠ KUCHTA,

AMBASSADOR OF CANADA TO SERBIA

Leading By Example

MAXIM VENGEROV

VIOLINIST, VIOLIST AND CONDUCTOR

CZECH AMBASSADOR TO SERBIA

Wizard On The Rostrum

www.cordmagazine.com

JULY 2022/ ISSUE NO. 213

Rethink, Rebuild, Repower

interviews opinions news comments events COMMENT

Scholzing FOCUS

SANCTIONS AGAINST RUSSIA & THEIR ECONOMIC REPERCUSSIONS

Exclusive 783002 771451

Europeanisation Of The Western Balkans

PRIME MINISTER OF NORTH MACEDONIA

ISSN1451-7833

DIMITAR KOVACHEVSKI

06 SCHOLZING

24 RETHINKING SUPPLY CHAINS

CONTENTS

COOMENT ZORAN PANOVIĆ

08 DIMITAR KOVACHEVSKI

PRIME MINISTER OF NORTH MACEDONIA EUROPEANISATION OF THE WESTERN BALKANS

44 THE RAILWAY STATION RENAISSANCE TRENDS Architecture

50 MAXIM VENGEROV violinist, violist and conductor WIZARD ON THE ROSTRUM

27 BUSINESS DIALOGUE 12 H.E. TOMÁŠ KUCHTA

@CORDMAGAZINE

40 ROYA MAHBOOB

CZECH AMBASSADOR TO SERBIA RETHINK, REBUILD, REPOWER

CEO OF THE AFGHAN CITADEL SOFTWARE COMPANY AFGHAN WOMAN WHO BECAME A CHIEF EXECUTIVE AT 23

56 CHILL OUT 58 SUMMER TIME Fashion

62 CULTURE CALENDAR 62 FACES & PLACES

16 GLOBAL DIARY 18 WE HAVE ENOUGH WORRIES WITHOUT POOR DECISIONS

@CORD_MAGAZINE

Feature DIANE COYLE, PROFESSOR OF PUBLIC POLICY AT THE UNIVERSITY OF CAMBRIDGE

43 JELENA BOJOVIĆ

FOCUS SANCTIONS AGAINST RUSSIA & THEIR ECONOMIC REPERCUSSIONS

DIRECTOR OF THE CENTRE FOR THE FOURTH INDUSTRIAL REVOLUTION; NALED PROGRAMME DEVELOPMENT STRATEGIST YOU’RE A LAWYER? NO, I’M A MOLECULAR BIOLOGIST

CORD MAGAZINE CORDMAGAZINE

EDITOR IN CHIEF: Neda Lukić n.lukic@aim.rs ART DIRECTOR: Branislav Ninković b.ninkovic@aim.rs CONTRIBUTORS: Rob Dugdale, Maja Vukadinović,

July

“CorD does not criticise or critique. We are a place where people can inspire and be inspired by others” Mirjana Jovanović, Miša Brkić, Ljubica Gojgić Radmila Stanković, Steve MacKenzie, Zorica Todorović Mirković, Sonja Ćirić, Miloš Belčević PHOTOS: Zoran Petrović COPY EDITOR: Mark Pullen TRANSLATION & EDITING: PULLEN EDITORIAL HALIFAX

SALES MANAGERS: Biljana Dević, b.devic@aim.rs Vesna Vukajlović, v.vukajlovic@aim.rs Mihailo Čučković m.cuckovic@aim.rs OFFICE MANAGER: Svetlana Petrović s.petrovic@aim.rs FINANCE: Dragana Skrobonja finance@aim.rs

EXECUTIVE DIRECTOR: Maja Vidaković m.vidakovic@aim.rs PUBLISHER: Ivan Novčić i.novcic@aim.rs DIRECTOR: Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com

PRINTING: Rotografika d.o.o. Segedinski put 72, Subotica CorD is published by: alliance international media Prote Mateje 52, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 Fax: +(381 11) 2450 122 E-mail: office@aim.rs office@cordmagazine.com www.cordmagazine.com

The views expressed in this publication are those of the presenter; they do not necessary reflect the view of publications published by alliance international media

Comment BY ZORAN PANOVIĆ

Scholzing Macedonia was one of the six republics of Tito’s Federal Socialist Yugoslavia. Even back then, Todor Zhivkov’s Bulgaria had intentions to assimilate the identity of the Federal Republic of Macedonia and Macedonians, but Tito’s Yugoslavia proved incomparably better at protecting the integrity of Macedonia and Macedonians than today’s European Union. The Greeks wouldn’t even have dreamt of asking Tito to change the name of FR Macedonia to FR North Macedonia

n the whole,North Macedonia directly, and Albania indirectly, have faced the might of the Bulgarian veto – and of course nothing has come of their EU membership candidate status. And paranoia over a more powerful country (or countries) backing Bulgaria is not without grounds. Vučić showed solidarity for his Open Balkan partners in Brussels, because his distress is much less, and I say that without an ounce of cynicism. The summit in the EU also amounted to one great nothing for Serbia too. However, it’s no small thing that leaders from the Western Balkans are even present at such summits, and that European officials showed that they have a slightly guilty conscience peeking out from under their bureaucratic cold-bloodedness. Speaking at the Thessaloniki summit of the Southeast European Cooperation Process (SEECP) that was held just prior to the Brussels Summit, Greek Prime Minister Kyriakos Mitsotakis said that 2033 should be the EU accession deadline for all Western Balkan countries. In so doing, PM Mitsotakis brutally confirmed how “Juncker’s date” (for Serbia and Montenegro to join the EU in 2025) was totally illusory, and even counterproductive. The circle is largely closed – from the EU’s Thessaloniki Summit of 2003, when the countries of the Western Balkans first received their EU accession perspective, to this June’s SEECP Summit - again held in Thessaloniki – when that perspective was cynically confirmed: it will come 30 years after that first Thessaloniki gathering. And that’s all aligned with the principle of the Serbian folk proverb that

July

goes “one dinar for a flatbread in Thessaloniki; one hundred flatbreads to Thessaloniki”. Appearing as the then Prime Minister of Serbia in Thessaloniki back in 2003 was Zoran Živković. Mention was even made of joint accession with Croatia, leading Croatian Prime Minister Ivo Sanader to comfort his public by insisting that Serbia wouldn’t be joining anytime soon.

Macron’s quest for a way to console the inconsolable at least encourages self-pity in Serbia over the mirage of EU membership, in contrast to the risky defiance provoked by “Scholzing” – you harmonise with the EU, impose sanctions on Russia, and as a reward you can recognise Kosovo’s independence Making the whole situation even more discouraging and cynical, Mitsotakis cited the year of 2033 as being an “ambitious goal”. And it would indeed be an “ambitious” date of entry for the likes of Ukraine and Moldova after they gained candidate status, but it could only prompt depression in the Western Balkans. And why the deception and false promises? Well, it was in 2019 that French Minister for European Affairs Nathalie Loiseau spoke the truth (as real friends should) and thus poured a full bucket of cold water over our boiling, Euro-fanatical heads.

The truth that she admitted at the time was that “the current state of the EU doesn’t allow for new accessions”. Macron’s vision of an inclusive “European political community” – the UEFA Cup for the European countries left out of the Union – is at least a psychologically more acceptable waiting room for a train that might never arrive. And Macron’s quest for a way to console the inconsolable at least encourages self-pity in Serbia over the mirage of EU membership, in contrast to the risky defiance provoked by “Scholzing” – you harmonise with the EU, impose sanctions on Russia, and as a reward you can recognise Kosovo’s independence. The summit in Brussels at least served as a promotion of the Open Balkan initiative, which isn’t without chances of success if it really receives U.S. support. The agreement between the Serbian and Macedonian churches on the latter’s autocephaly (autonomy) sets a precedent in the narrative of the Region’s irreconcilability and represents the Open Balkan initiative’s greatest success to date, despite church issues not even being part of its agenda. O woe is me just recalling how Tanja Miščević, then head of the Serbian EU accession negotiation team, stated in Brussels in 2013 that she felt like she was “behind the wheel of a Ferrari with the engine running that’s just about to start motoring”. She said that in the presence of then EU Enlargement Commissioner Štefan Füle, who knew how to “encourage” us like no other. This time in Brussels, however, there wasn’t even “encouragement”. Boo-hoo...

Interview Exclusive

DIMITAR KOVACHEVSKI

PRIME MINISTER OF NORTH MACEDONIA

Europeanisation Of The

Western Balkans The Open Balkan is our autochthonous, organic initiative created by our institutions and seriously supported by all citizens living in our countries; it enables us to achieve our 21st century vision of the Balkans as a progressive region integrated into Europe, where peace, stability and development will no longer be questioned by anyone ~ Dimitar Kovachevski

he Open Balkan Summit “shattered” all scepticism and reservations regarding the initiative, while the initiative itself continues taking the next big strides forward, says North Macedonia Prime Minister Dimitar Kovachevski in this CorD Magazine interview, summarising his impressions from Ohrid’s Open Balkan summit. This initiative is not a replacement for European integration, but

July

it is an idea that promotes regional connectivity and that emerged with the view to the model of the concept of connecting European states, explains the North Macedonian PM. He adds that strengthening economic ties and other links in the region benefits citizens, which he believes is an argument that will also be accepted by the countries of the region that have yet to join the Open Balkan initiative.

As host of the recent meeting of leaders of the countries of the region, within the framework of the Open Balkan initiative, how would you assess this regional project?

Open Balkan is an authentic initiative created by North Macedonia, Serbia and Albania that aims to ensure a stable and prosperous region. It is the practical implementation of the four freedoms that

By Ljubica Gojgić

OPEN BALKAN

The Open Balkan Initiative favours integration over disintegration, open borders over closed ones, free movement over limited range

form the basis of the European Union. It enables faster implementation of European standards and ultimately ensures the improvement of quality of life for all our citizens. Open Balkan favours integration over disintegration, open borders over closed ones, free movement over limited range. The initiative eases procedures and cooperation between the region’s citizens and companies, thus enabling faster economic and social development. The benefits of Open Balkan are already recognised and utilised by many citizens and entrepreneurs from the region. This motivates and inspires us to expand the areas of connection and cooperation. Western Balkan countries are tightly connected. When there is progress in one country, that stimulates progress among its neighbours. It is European to connect and to help each other, not to block and stall each other. We are accomplishing something that is usual and normal practise in the EU, based on the joint agreements of its member states. Through Open Balkan, we are jointly Europeanising ourselves, and that form of Europeanisation translates into concrete steps on the establishment of EU values and practises. What kind of results do you expect from the agreements signed?

We live in times of great challenges that require courageous decisions and unity. The Open Balkan initiative is our effort to create a stable region, the rule of peace, cooperation and economic development. This is our commitment to a better life for our citizens. The whole of Europe, including the countries of our region, are facing the dire consequences of war and crises of energy, economics and health. Under such conditions, we naturally rely on each other, and we have a shared objective: to advance together. The benefits of the free flow of capital, people, goods and services are now even clearer and more reasoned. We signed an Agreement in Ohrid on the mutual recognition of diplomas and scientific titles issued by higher education and other authorised institutions in the three countries, and we’re thus accelerating the process of creating a single labour market. We are opening a new chapter in our cooperation in tourism. Open Balkan will be mutually promoted as an attractive regional tourist destination. We can give the world part of the prettiest seas in the Mediterranean thanks to the natural wealth of Albania. The mountains and well-known village tourism of Serbia. Macedonian lakes and beautiful

EU MEMBERSHIP

AUTOCEPHALY

green mountains. We also launched cooperation in culture on those foundations. We agreed to create a Joint Calendar of cultural events that will bring better mobility of the public and stimulate cultural exchange. I expect to increase the number of festival events in the region, meaning more content for our citizens and enhanced attractiveness for the region. I expect to see EXIT in North Macedonia and Albania. I expect the seven-eighths-time signature to be heard more frequently in Belgrade and Tirana. I expect more Serbians and Macedonians to visit Tirana, the European Youth Capital for 2022.

region, not only for the three initiating countries. If you look at the practical benefits for citizens, for all categories of citizens, for the business communities of all countries, then it becomes clear why a connected region, without administrative barriers, with open borders and simplified and jointly defined procedures for customs terminals or in tax and financial communication, then you will have sufficiently strong arguments in favour of Open Balkan. The agreements signed so far already bring tangible results and benefit citizens. Such is the case with the popular “Open Balkan Green Lane” on border crossings between North Macedonia and Albania, and North Macedonia and Serbia. Haulage vehicles transporting agricultural produce or food can now make their way faster. There are no more long waits for hours and even days. As a result of the trilateral agreement between North Macedonia, Serbia and Albania on recognition of phytosanitary inspection permits and mutual methodology for their operation, the movement of agricultural produce between the three countries is much faster, as the controls operate 24 hours a day and the criteria are recognised from one country to another. North Macedonia’s neighbours assisted with timely intervention during the fires in the summer of 2021; this represents a benefit of the Agreement on mutual action during natural and other disasters. These are only a few of the benefits and values of our connection and the new dynamic of cooperation in the region thanks to the Open Balkan Initiative.

We work tirelessly on reforms at home to Europeanise our society. It is now time for the European Union to fulfil its promises before giving new ones

The whole of Europe, including the countries of our region, are facing the dire consequences of war and crises of energy, economics and health. Under such conditions, we naturally rely on each other, and we have a shared objective: to advance together The business communities of all Western Balkan countries strongly and unanimously supported the new, ambitious and dynamic regional connection in the form of Open Balkan. They agreed that Open Balkan is the platform that the region needed. Despite this event in Ohrid having been the 4th Open Balkan Summit, this remains a project of only three countries: North Macedonia, Albania, and Serbia. The summit’s guest countries – Montenegro and Bosnia-Herzegovina – didn’t opt to join the project. Do you understand their reservations regarding the Open Balkan initiative?

To that reservation I can only open arguments that will prove that the initiative is an opportunity that creates great prospects and benefits for the whole

The decision to accept the Macedonian Orthodox Church – Ohrid Archbishopric as a canonical one in the community of Orthodox churches closed the last identity issue

Ohrid’s Open Balkan Summit received support from the European Commissioner for Enlargement, even though this initiative is viewed in some circles as a substitute from EU accession or a “consolation prize” for not gaining EU membership. How do you see this?

Open Balkan does not aspire to replace membership, nor is it a substitute for the countries’ EU accession. These aspirations for each of the member states are represented a process that they realise themselves on the basis of EU accession criteria, on the basis of domestic reforms and the harmonisation of national legislation with the Acquis, with economic measures to raise citizens’ standard of living, to monitor the quality of life of the citizens and fulfil all other obligations leading to the realisation of this aspiration. The war in Ukraine showed us that it is particularly important for the European Union and its member states to have a maximally responsible approach to

July

Interview Exclusive

the process of EU enlargement with the Western Balkan countries, particularly bearing in mind that this process is now a strategic and security issue. Integration means a shared commitment to building a strong, stable and united Europe, as a home of the values and powers of democracy and civilisation. Open Balkan is our autochthonous, organic initiative created by our institutions and seriously supported by all citizens living in our countries; it enables us to achieve our 21st century vision of the Balkans as a progressive region integrated into Europe, where peace, stability and development will no longer be questioned by anyone. We act pragmatically and economically and, thus, will create conditions for large investments in our region, which will mean more work and better paid jobs for our youth and other citizens. We ask the EU to support this step and recognise it as inspiration to resolve their own problems. North Macedonia represents an example of an EU membership candidate country that has satisfied all conditions for the launch of accession negotiations, but a date for the opening of chapters is not yet known. To what extent are you discouraged or disappointed by this?

July

We signed an Agreement in Ohrid on the mutual recognition of diplomas and scientific titles issued by higher education and other authorised institutions in the three countries, and we’re thus accelerating the process of creating a single labour market Our aspiration for EU membership is our strategic objective and we remain on that path. We delivered on full membership in NATO and will absolutely continue advancing towards the achieving of the strategic objective of full EU membership. We will continue our reforms with strong intensity. Our

obligation, as a government, is to implement EU standards at home, while addressing all foreseeable and unforeseeable challenges. Under such circumstance, faced with a challenge, North Macedonia delivers European values. Dialogue instead conflict. Calmness and readiness for cooperation instead of nationalism for domestic use and new isolations. We will deliver a European future to our citizens, but will do so, of course, while respecting their dignity and delivering solutions based on European values. North Macedonia has been a candidate country for almost 18 years. The Stabilisation and Association Agreement was signed 21 years ago. After several consecutive positive progress reports on our country and the unconditioned decision of March 2020 to commence EU accession negotiations that was supported by all member states, including Bulgaria, it can be seen clearly and undisputedly that we fulfilled all criteria for the commencement of EU accession negotiations. North Macedonia has done a lot so far – we’ve made many tough decisions. We work tirelessly on reforms at home to Europeanise our society. It is now time for the European Union to fulfil its promises before giving new ones. The postponing of the commencement of negotiations is a severe problem and, in fact, is a grave strike against EU credibility. We are wasting precious time that, to be honest, we do not have at our disposal. Our positions are clear and based on European values. We do not want anything more or less than that which all 27 member states in the Union received when joining the Union proudly, with all their differences and with respect for their own and others’ linguistic and historical differences. None of this was a problem on their European path. We expect this to count for us too, of course, with due fulfilment of the membership criteria. At the same time, the war in Ukraine showed us, in its tragic way, that EU enlargement to encompass North Macedonia is no longer only an issue of enlargement, rather it is a geostrategic and security issue – for our country, but also for the region. I mention the region because the blockage we are facing today echoes negatively throughout the region and impacts EU credibility. And, vice versa, the positive impulses that will be brought by the commencement of North Macedonia’s EU accession negotiations will resonate and will bring greater wellbeing to the entire Balkans. Speaking during his recent visit to the region, German Chancellor Olaf Scholz admitted that he’d failed to persuade Bulgaria to lift its veto against the opening of accession negotiations with your country. You say that Bulgaria is “holding hostage” your country’s dream of joining the EU. Do you see this situation being resolved anytime soon?

North Macedonia did everything in its power to start the first intergovernmental conference. Forty-five

percent of our legislation has already been harmonised with the EU Acquis. If we compere harmonisation by chapter, it can be clearly seen – as confirmed by the reports of European institutions – that North Macedonia has achieved a greater degree of harmonisation in certain chapters than countries that have been negotiating with the EU for more than 10 years. This means that, if we are talking about a merit-based system for accession, North Macedonia 100% deserves the first intergovernmental conferences and the opening of chapters. We are leading negotiations with Bulgaria based on principle, based on European values, and based on the provisions stipulated in the Resolution adopted by our Assembly. There is one substantial difference between us and Bulgaria. For us, this question was about the commencement of negotiations with the EU, and not for a single moment did we, as a government, use this question as an instrument of politics for the purpose of gaining daily political points and leading our country’s internal policy. On the other hand, in Bulgaria this issue was raised at the level of internal politics and was used as an instrument. We have proven that we are a reliable partner and that we are committed to dialogue aimed at finding a real solution that will ensure the unblocking of the negotiation process and EU integration. North Macedonia has shown that it is a country of friendship and cohabitation; we are committed to essential dialogue and finding mutually acceptable solutions. In this way, and by adhering to those principles, we undertook all necessary steps to unblock the process of EU enlargement. We, as a government, are obligated to find a fast solution, but not a hasty one; a solution that will be based on European values. We will not negotiate on our identity and language, and this is more than clear; the solution arising from the open dialogue will need to take into consideration citizens’ dignity. One recent survey saw the citizens of North Macedonia rank Serbia as their friendliest nation. How do you view current bilateral relations between our two countries?

With each passing year, North Macedonia and Serbia additionally reinforce their long-standing and traditionally good bilateral relations. This has been particularly evident during the last four years, due to the intensive and friendly political dialogue confirmed with frequent and regular meetings and visits at the highest level. The leaderships of both countries are convinced and led by the principle that the advancement and expansion of mutual relations is our obligation that will be passed on to current and future generations as a priceless treasure. A particularly important gesture for us was the assistance and support that the Republic of Serbia provided during the Covid-19 crisis; they helped us

exceeding a billion U.S. dollars, and it has recorded growth in all areas of mutual interest, and it is also a notable example for other countries to advance and alleviate overall communication. To what extent did the recent agreement between the Serbian Orthodox Church and the Macedonian Orthodox Church, on the autocephaly of the Macedonian Orthodox Church, contribute to improving relations between our countries?

The postponing of the commencement of negotiations is a severe problem and, in fact, is a grave strike against EU credibility. We are wasting precious time that, to be honest, we do not have at our disposal deal with the pandemic by providing vaccines and other medical assistance. The Republic of Serbia extended its appreciation and showed understanding and solidarity with the recent lifting of the ban on the export of grain and cooking oil - as we did with the lifting of the ban on exports of oil in times of need for Albania, thus confirming our determination to cooperate in the region. Communication and partnership at the highest level, within the framework of the Open Balkan Initiative, is an additional impulse for regional cooperation, good neighbourly relations and the implementation of European values in our region. Both Serbia and North Macedonia are ready to organise the third joint session of their governments as a positive stimulus for the further development and intensification of relations and cooperation, especially in the field of economic cooperation. Serbia is the third largest trade partner of North Macedonia, with the total value of exchange

Although we are a secular state, this decision - as a historic fact - has enormous implications for our country’s future. The decision to accept the Macedonian Orthodox Church – Ohrid Archbishopric as a canonical one in the community of Orthodox churches closed the last identity issue.We accomplished the historically deserved and natural right for Orthodox believers in our country to have a canonically recognised church accepted by communities throughout the Orthodox world. This canonically righteous decision was joyfully welcomed, as could be seen among all believers at the mutual service of representatives of the Serbian Orthodox Church and the Macedonian Orthodox Church, as two equal sister churches. Macedonian citizens and Macedonian bishops, and the society in general, were patient and resilient for decades, so we can welcome the good news on the commencement of the procedure to achieve autocephaly for our Orthodox Church. I see this decision as an advancement of our traditionally good neighbourly relations with the Republic of Serbia and the people of Serbia. This is a gesture of another helping hand for the shared prosperity of our countries and our people, and an act that shows how relations should be built in this region of states and citizens who are moving forward. Did you and Serbian President Vučić discuss North Macedonia’s recent decision to close its airspace to the plane of Russian Foreign Minister Sergey Lavrov, who was due to be a guest of Belgrade? Was he resentful regarding that decision?

North Macedonia and Serbia are sovereign countries with their own policies regarding international issues, and we mutually recognise and respect each other’s positions. Our decision to deny the request of the Russian Embassy for special approval for use of the airspace for a flight to Belgrade was made because the government had already made a general decision to close the airspace of North Macedonia for airlines owned by the Russian Federation. Being a NATO member state, the Alliance’s decisions are also our decisions, and our foreign and security policy is fully harmonised with the policies of the EU and NATO on the issue of the war in Ukraine. That’s why this particular flight could not have been treated any other way, given the decision that had already been made and remains in force.

July

Interview

H.E. TOMÁŠ KUCHTA CZECH AMBASSADOR TO SERBIA

Rethink, Rebuild, T

Repower

he priority of the Czech EU Presidency, which began on 1st July, will be the strategic strengthening of the EU and its defensive capabilities, says Ambassador Tomáš Kuchta for CorD Magazine. At the same time, he notes, ensuring energy stability, strengthening democratic institutions and supporting Ukraine remain in focus. The Czech Republic will strive to strengthen its ties with “liked-minded countries”

The Czech EU Presidency will be ready to facilitate the Council of the EU’s discussion on the prospects of EU membership for Ukraine, while it will simultaneously support the EU integration of the Western Balkans ~ Tomáš Kuchta 12

July

By Ljubica Gojgić

EU UNITY

European unity is not one of authoritarian unanimity, rather unity in the diversity of a multi-voice debate, which is still driven by our common values, towards consensus in the regions of the Western Balkans, Eastern Europe, Indo-Pacific and the Sahel. Your Excellency, the Czech Republic took over the rotating presidency of the Council of the European Union as of 1st July. Could you tell us what the priorities will be over the next six months?

The invasion of Ukraine by the Russian Federation has completely overhauled the geopolitical situation on our continent, while demonstrating that the European Union is able to respond decisively. The events of the last weeks and months have shown, perhaps to the surprise of many external observers, that Europeans in a crisis triggered by an external threat are able to act very quickly, effectively and in a united way. Our culture of political dialogue and consensusbuilding, that we have been forging for decades, proves to be a strength rather than a weakness of the European project. At the same time, European unity is not one of authoritarian unanimity, rather unity in the diversity of a multi-voice debate, which is still driven by our common values, towards consensus. Nevertheless, the brutal war being waged beyond the eastern borders of our community has also clearly shown us that we will have to find the courage to rethink and reevaluate many of our current approaches. We therefore perceive the slogan “Europe as a task: rethink, rebuild, repower”, chosen as the motto of the Czech Presidency of the Council of the EU in 2022, not only as an opportunity to reflect together, but above all as a call for accountability and determined action based on the values that our conscience requires us to pursue. We believe that, in the current situation, a common reflection on European tasks must find the right recipe as quickly as possible, in the form of a policy mix that will ensure security and peace on our continent, and lead the EU towards reaching the long-term goals of the green and digital transitions, while at the same time making it possible to deal effectively with the present security, energy and humanitarian crisis, as well as with acute economic and social challenges that are partly due to the Covid-19 pandemic and have been exacerbated by Russia’s aggression.

FOCUS

The Czech Presidency will focus in particular on thorough implementation of the main short-term objective, i.e., overcoming dependence on Russian fossil fuels The overall objective of the Czech Presidency is to contribute as much as possible to creating the required conditions for the security and prosperity of the EU, in the context of the European values of freedom, social justice, democracy and the rule of law and environmental responsibility. The EU must focus on ensuring security, together with NATO, and ensuring the strategic resilience and competitiveness of the European economy. The

We perceive the slogan “Europe as a task: rethink, rebuild, repower”, chosen as the motto of the Czech Presidency of the Council of the EU in 2022, not only as an opportunity to reflect together, but above all as a call for accountability and determined action based on the values that our conscience requires us to pursue EU, together with the United States and other democratic states outside the EU, should become a strong foundation for a strategic community defending fundamental values, human rights, a free way of life and liberal democracy. In order to achieve this objective, the Czech Republic has set the following political priorities for its Presidency of the Council of the EU: 1. Managing the refugee crisis and Ukraine’s post-war recovery; 2. Energy security; 3. Strengthening Europe’s defensive capabilities, including cyberspace security; 4. Strategic resilience of the European economy; 5. Resilience of democratic institutions. As far as geographical priorities are concerned, deepening the transatlantic partnership

EU ACCESSION

As all we know, the alignment of candidate countries with the Common Foreign and Security Policy is one of the key determining factors for EU accession and strengthening relations with other like-minded countries, Ukraine and Eastern Europe, the Western Balkans, the Indo-Pacific and the Sahel will be in the focus of the Czech Presidency. Do you believe that the EU can quickly find alternatives sources of energy, which is proving to be the worst economic consequence of the war in Ukraine?

The EU cannot be crucially dependent on countries that directly threaten its security, and must therefore break its dependence on Russian gas, oil and coal. Finding alternative sources of energy will be a long and very complicated process. The Czech Presidency will place an emphasis on the EU’s energy security issues, which are currently more pressing than energy transition, and on the accelerated implementation of REPowerEU, an important part of which is diversification of sources, including logistics, energy savings and acceleration of the transition to low-emission and renewable energy sources. The Czech Presidency is ready to work on the implementation of the regulation of gas reserves, i.e., filling storage facilities in the runup to winter, and on the promotion of voluntary joint purchases, so that the EU uses its weight in a similar way to the way it did on the procurement of vaccines. The decarbonisation of EU industry and the transition from natural gas to hydrogen represents an important goal requiring the implementation of an ambitious plan for the development of hydrogen infrastructure, storage facilities and terminals. Fit for 55 creates the basis for decarbonisation. However, the Czech Presidency will focus in particular on thorough implementation of the main short-term objective, i.e., overcoming dependence on Russian fossil fuels. The Czech Presidency will also deal with energy efficiency (EED) and the use of renewable energy. At the same time, the development of transmission infrastructure is crucial, as it will strengthen the EU’s energy resilience as a whole. Finally, the Czech Presidency will deal with the role of nuclear energy in ensuring the EU’s energy security and meeting the EU’s climate goals.

July

Interview a step in the right direction, at the moment Serbia’s CFSP alignment stands below 50%. Imposing sanctions on Russia would be viewed, at any rate, as confirmation of the foreign-political determination of Serbia to join the Western community and its values. It goes without saying that, due to many reasons, it is not easy for Serbia to decide on harmonising with the sanctions imposed by the EU against Russia. On the other hand, one must always consider all the pros and cons thoroughly.

The crisis in Ukraine has also brought the issue of EU enlargement to the fore. While some are advocating for the accelerating of the process of integrating the Western Balkan nations into the EU, we’ve seen the emergence of a thesis, championed by the French president, whereby inclusion in a kind of “European political community” is the most non-EU member states can hope for. Which theory do you prefer?

I would not agree with the view regarding the “European political community”. In my opinion, it is very important, but on the other hand only one of a number of political concepts (see, for example, an Austrian non-paper submitted to Serbian authorities during the recent visit of Foreign Minister Alexander Schallenberg) aimed at accelerating the enlargement process and making it more transparent, tangible and comprehensible for the populations of candidate countries. As for Ukraine, I can only confirm that the Czech EU Presidency will be ready to facilitate the Council’s discussion on the prospects of its EU membership. Simultaneously, it will support the EU integration of the Western Balkans. We will also deal with the security, economic and social impact on this region of the Russian aggression against Ukraine. The war in Ukraine has created new turbulence in Europe, but even in this new difficult situation Czechia is determined to work on promoting the EU enlargement policy. The Western Balkans and EU enlargement will be at the top of our priorities. Besides supporting the EU enlargement process, the Czech Presidency will look for ways to expand and deepen cooperation between the EU and the Western Balkans in various fields, with the aim of facilitating the region’s future integration into the EU. We want to focus mainly on security, regional economic cooperation, connectivity, energy security, post-Covid-19 recovery, the green agenda or civil society cooperation. We would also like to bring the issue of reconciliation to the attention of our Western Balkan partners. Unfortunately, the current lack of progress in coming to terms with the past has a negative impact on efforts to maintain good neighbourly relations, develop more effective regional cooperation, and ultimately become part of the EU family. Serbia condemned Russia’s attack on Ukraine, supported the UN’s resolution and participated in a donor conference to raise

July

Given your previous experience as a deputy defence minister of the Czech Republic, how do you view the renewed arming of Western Balkan countries? Is it a necessity dictated by the times in which we’re living or a cause of concern?

Each state has a duty to guarantee its citizens security. Each country has the right to enhance security and defence capacities, and to cooperate with its allies in order to prevent any kind of danger.

The war in Ukraine has created new turbulence in Europe, but even in this new difficult situation Czechia is determined to work on promoting the EU enlargement policy. The Western Balkans and EU enlargement will be at the top of our priorities funds to help the endangered population. However, according to President Aleksandar Vučić, Serbia is still under great pressure to join the economic sanctions against Russia, despite not being an EU member state. Do you consider such a demand as being justified?

As all we know, the alignment of candidate countries with the Common Foreign and Security Policy is one of the key determining factors for EU accession. The importance of this alignment rose sharply after Russia attacked Ukraine in February. Although Serbia’s decision to join the EU sanctions against Viktor Janukovič and Belarus are considered

What could you say about the level of military cooperation between Czechia and Serbia, considering that our two countries have a signed bilateral agreement in this field?

Given growing global instability, the development of long-term cooperation on strategic military systems is essential. In addition to ensuring the necessary capacities, including supporting capacities based on existing technologies, Czechia pays attention to cooperation and investment in reducing technological dependence, in particular with regard to new and disruptive technologies, and to ensuring the resilience of critical value chains needed for these technologies. Cooperation with Serbia in this field could be very interesting, but for the moment we are at the very beginning. As someone who’s spent almost four years in Serbia, during a period that’s been marked by bilateral visits at the highest level, what do you consider as your biggest challenge until the end of your ambassadorship in Belgrade? Is there something you haven’t yet managed to do?

You are right, after four years I can see many positive and concrete results in the field of bilateral relations between our two countries. There are some challenges for the next twelve months, but I do not want to reveal more for the moment.

You’ve said that businesspeople from Czechia are interested in investing in Serbia, which some of them viewed – at least prior to the outbreak of the Ukraine crisis – as the first country that would be next to join the EU. It was also noted that the first investment to be signed in Serbia following the lifting of the state of emergency, linked to the Covid-19 pandemic, was an investment from the Czech Republic. How are works progressing on the construction of Czech company SPEL’s factory for the production of cables in Bela Crkva?

As far as I know, the Covid-19 pandemic and the situation in Ukraine delayed SPEL’s investment in Bela Crkva. In contrast, the investment of IMG in Vršac is proceeding very well and the construction of a production facility is following the time schedule. A Czech investment fund has taken over mobile operator Telenor, while Czech company Mattoni owns the Knjaz Miloš water factory – both of which represent recognisable acquisitions in the Serbian economy. Where do you see room for new investments?

Definitely in real estate development, IT, wastewater management technologies, agriculture and food processing. It is a matter of historical record that Czech people have spent centuries relocating to the territory of today’s Serbia, and that they mostly reside in Vojvodina and Belgrade, though you recently also had an opportunity to hear about the Czech minority in the town of Ćuprija. Are you satisfied with the way the Czech community is treated in Serbia?

I am very much satisfied with the way the Czech community is treated in Serbia. I would like to thank the Serbian government and the public administration for the way they treat the Czech minority. Not every country in the world demonstrates such a generous behaviour towards minorities. Following two years of lockdowns around the whole world, the situation is now slowly returning to normal. Are we seeing a resumption of the practise of granting scholarships to study at universities in the Czech Republic, which has always been met with great interest in Serbia, and

I would like to thank the Serbian government and the public administration for the way they treat the Czech minority. Not every country in the world demonstrates such a generous behaviour towards minorities brought particular fame to the renowned Prague Film School?

The Prague Film School is one of Europe’s leading schools providing training in the core disciplines of filmmaking.The school’s accelerated programmes, international faculty and world-class facilities draw applicants from all over the globe who are determined to convert their passion for film into a profession. For those who would like to apply to study during this year, the application deadline is 25th July, 2022. However, studying in Czechia doesn’t only relate to Prague film school. Boasting the oldest university in Central Europe, founded in 1348, whose faculty a century ago included Albert Einstein, Czechia offers an attractive environment to

international students, with a wide and expanding variety of undergraduate and graduate programmes. The living standard in Czechia is quite high, while the cost of living remains reasonable. The same can be said about higher education: students get a high-quality education and pay affordable tuition fees. Besides, study programmes in the Czech language at public universities are free of charge! Comprehensive and well-structured information for prospective foreign students can be found at www. studyin.cz.This website provides advice on the Czech education system, higher education institutions and their courses and scholarships, together with a basic guide to living in Czechia. Specific information on particular universities and their programmes is accessible via links to their websites. It is always advisable to contact a university directly with enquiries about their courses, admission requirements or availability of scholarships. Some Czech higher education institutions grant scholarships for excellent study results or administer other types of scholarships. Other options include, for example, utilising supporting study programmes like the Erasmus Mundus Programme of the European Union, CEPUS; scholarships provided by the Visegrad Fund and others that offer scholarships for highly qualified students and scholars to follow a selected Masters or Doctoral course or to carry out teaching and research assignments within the course.

July

GLOBAL DIARY

LEADERSHIP

“Together, the G7 is demonstrating the strong global leadership it will take to maximize the costs to Putin and his enablers and address the impact of his war on the global economy” – JOE BIDEN, US PRESIDENT

OPEN BALKAN SUMMIT Leaders of Albania, North Macedonia and Serbia signed an 8th June agreement on cooperation in the area of mutual recognition of diplomas and academic qualifications, as well as multiple memoranda at the summit of the Open Balkan initiative. The memoranda signed relate to cooperation in the areas of culture, tourism and the economy. This is the second time official agreements have been signed in the framework of the initiative. The summit held in Tirana last December saw the signing of several agreements, including one on conditions for free access to the job market, the interconnectivity of schemes of electronic identification for citizens and collaboration in the fields of veterinary and food safety.

CHAOS IN THE AIRLINE INDUSTRY People around the world are anxious to travel again as pandemic restrictions are being lifted. But those planning to jump on a plane for a holiday have been frustrated by chaos in the airline industry. In both North America and Europe, thousands of flights have been cancelled and hundreds of thousands of passengers

BULGARIA’S COALITION GOVERNMENT RESIGNS Bulgaria’s coalition government led by Prime Minister Kiril Petkov submitted its resignation to the Bulgarian Parliament after losing a 22nd June vote of no confidence. Following Petkov’s resignation, President Rumen Radev launched consultations with parliamentarians to form a new Cabinet in accordance with constitutional procedures. He met representatives of the We Continue the Change (WCC) party, the European Development of Bulgaria (GERB), the Movement for Rights and Freedoms, and the Bulgarian Socialist Party (BSP). Petkov, who heads the WCC, the largest parliamentary group, has declared his intention to run for prime minister again. If he fails, the Citizens for GERB party, led by former Prime Minister Boyko Borisov, will be tasked Bulgarian PM Kiril Petkov with forming a government.

July

have had their trips disrupted. The main cause of the disruptions has been a shortage of qualified personnel at airports to handle the recent surge in passenger traffic. Hundreds of thousands of aviation workers were laid off or terminated, removing years of experience and technical expertise from the ranks of the commercial aviation sector worldwide.

WAR MACHINE

“I am referring to the expansion of the NATO to the east, moving its military infrastructure closer to Russian borders… The war machine is moving and, I repeat, it is coming close to our borders” – VLADIMIR PUTIN, PRESIDENT OF RUSSIA

G7 SUMMIT German Chancellor Olaf Scholz welcomed heads of state and government to the latest G7 Summit. Under the German Presidency, leaders of the seven economically strongest democracies met at Schloss Elmau for three days, from 26th to 28th June. “We share a common worldview. We’re also united by our belief in democracy and the rule of law,” said Chancellor Scholz in his opening address, adding that this would be a key factor in the consultations and that he was very confident that the G7 would send out a signal of unity from the Summit. The attending leaders discussed the most pressing global challenges including the Russian war of aggression against Ukraine, climate protection, infrastructure and investment.

RECORD TEMPERATURES ACROSS EUROPE

The heatwave is set to continue to spread over the weekend, with temperatures higher than 30°C expected across most of Western and Central Europe. Meteorologists say these temperatures are normally recorded in July and August. French climate scientists say this is the earliest heatwave France has seen since 1947, believing it is a direct consequence of climate change.

Scorching heat sent Europeans across the continent scrambling for shade and water as an unusually early heatwave spread across several countries. Temperatures blasted historical records for this time of the year, hitting over 40°C in some places.

AFGHANISTAN QUAKE KILLS 1,000 PEOPLE A powerful earthquake struck a rugged, mountainous region of eastern Afghanistan, flattening stone and mud-brick homes and killing at least 1,000 people. It was Afghanistan’s deadliest earthquake in two decades, and officials said the toll could rise. An estimated 1,500 others were reported injured, the state-run news agency said. The disaster inflicted by the 5.9-magnitude quake heaps more misery on a country where millions face increasing hunger and poverty and the health system has been crumbling since the Taliban retook power nearly 10 months ago. At least 2,000 homes were destroyed in the region, where on average every household has seven or eight people living in it, said Ramiz Alakbarov, the U.N. deputy special representative to Afghanistan.

ABORTION RIGHTS PROTESTS SPREAD ACROSS U.S. The U.S. Supreme Court stripped women’s constitutional protections for abortion on 24th June, representing a fundamental and deeply personal change for Americans’ lives after nearly half a century under the Roe v. Wade ruling. The court’s overturning of the landmark decision is likely to lead to abortion bans in roughly half the states. The ruling, unthinkable just a few years ago, was the culmination of decades of efforts by abortion opponents, made possible by an emboldened right side of the court fortified by three appointees of former President Donald Trump. Both sides predicted the fight over abortion would continue, in state capitals, in Washington, D.C. and at the ballot box. Clinics in at least eight states – Alabama, Arizona, Arkansas, Kentucky, Missouri, South Dakota, Wisconsin and West Virginia – stopped the performing of abortion procedures after the Supreme Court’s decision.

July

Focus

SANCTIONS AGAINST RUSSIA & THEIR ECONOMIC REPERCUSSIONS

We Have Enough Worries

Without Poor Decisions Prior to making a political decision on whether or not to impose sanctions against Russia, the new Government of Serbia would have to conduct a detailed analysis of the possible repercussions of such a decision. The answers clearly emerge and could have far-reaching ramifications. However, if we are occasionally left without sugar or electricity, we primarily need to look at ourselves, and not at others

hat could the consequences be for Serbia’s economy if the future government opts to impose sanctions against Russia; or if the EU subjects Serbia to some kind of explicit or tacit punishment for making an unacceptable political decision not to impose said sanctions? What will happen and what will be lacking (flour, sugar, meat, energy, FDI, business, inflation, economic growth) if either of these scenarios happen? Our interlocutors have little doubt about the answer or what the new Government of Serbia’s priorities should be... They impose themselves through both political and economic calculations. What concerns them is the fact that, before either of these two scenarios have even become operational, the Government of Serbia has already made a decent number of poor moves that have left us without sugar and electricity, in a country that has strong agriculture and a fairly reasonable energy system.

July

ALEKSANDAR VLAHOVIĆ

PRESIDENT OF THE ASSOCIATION OF SERBIAN ECONOMISTS

A ROAD TO AVOID POSSIBLE EXPLICIT OR TACIT PUNISHMENT OF SERBIA BY THE EU, IN RESPONSE TO WHAT THE EU DEEMS TO BE INAPPROPRIATE POLITICAL DECISIONS, COULD BE A CAUSE OF IMMEASURABLE DAMAGE

n order to provide an adequate assessment of the negative economic impact of possible political decisions, it is first essential to recap the facts related to Serbia’s foreign trade connectivity and the international market. These facts show that the EU region represents Serbia’s largest trade and investment partner. Specifically, Serbia realises almost two-thirds of its total foreign trade turnover with EU member states. When we add the countries of the Western Balkans to this, the total exchange level reaches 75%. Serbia’s most important trading partners are Germany and Italy. The total volume of Serbian trade with Germany and Italy in 2021 amounted to a value of approximately 10.5 billion euros, which accounts for approximately 23% of total foreign trade. These two countries are also Serbia’s most important export destinations, with the total volume of exports heading there in 2021 amounting to a value of approximately 4.5 billion euros. It should also be noted that the coverage of Serbian imports by exports to EU countries exceeds 80%, which – with the exception of the other Western Balkan states – is significantly higher compared to Serbia’s other trading partners, especially China and Russia, where this indicator stands at just 33%. Interestingly, Serbia’s exports to Bosnia-Herzegovina stand at the same level as our country’s total exports to China and THE POSSIBLE IMPOSING OF SANCTIONS Russia combined. Such disproportion in the quality of the trade AGAINST RUSSIA WOULD CERTAINLY RESULT exchange is a result of the nature of trade flows and, on the other hand, the level and quality of investments from these countries. IN THE PRICE OF NATURAL GAS BEING In short, approximately 70% of FDI in Serbia comes from EU SIGNIFICANTLY HIGHER, WHICH WILL INEVITABLY countries, particularly Germany, Italy and Austria. And these are CAUSE INFLATION TO RISE investments in the manufacturing/processing industry, which is a sector that directly raises our economy’s level of competitiveness. That section of the economy drives technical progress and high productivity. In contrast to the EU, the lion’s share of Serbia’s foreign trade exchange with Russia relates to imports of energy and fertilisers (almost 50% of total imports, or a third of total trade), while the Russian share of total FDI in Serbia remains negligible. Thus, the possible imposing of sanctions against Russia would also mean hindering energy supplies, primarily supplies of natural gas, given that Serbia is 100% dependent on this Russian energy source. This shouldn’t result in the supply being disrupted, but it would certainly result in the price being significantly higher than promised, which will inevitably cause inflation to rise. Of course, it would also mean the loss of an export market for domestic producers of fresh and dried fruit, with those transport routes having already been hampered significantly due to the war. Possible explicit or tacit punishment of Serbia by the EU, in response to what the EU deems to be inappropriate political decisions, could be a cause of immeasurable damage. It would jeopardise macroeconomic stability in the short term, following an expected drop in FDI from the region. Serbia’s external deficits have increased as a result of rising energy prices, though the issue of foreign exchange liquidity has not yet been raised, due to the level of foreign investment having remained above the current account deficit. A fall in foreign investment, and the possible withdrawal of companies from the EU that are already present, would lead to the inevitable growth of sovereign debt and/or the depletion of foreign exchange reserves, which would ultimately impact on the sustainability of the existing exchange rate level. Such a scenario would threaten planned medium-term economic growth, and consequently the level of employment.

July

Focus

SANCTIONS AGAINST RUSSIA & THEIR ECONOMIC REPERCUSSIONS

JURIJ BAJEC PH.D.,

SPECIAL ADVISOR AT THE ECONOMICS INSTITUTE AND FULL PROFESSOR AT THE UNIVERSITY OF BELGRADE FACULTY OF ECONOMICS

OPEN BALKAN IS A GOOD INITIATIVE DURING TIMES OF GREAT UNCERTAINTY AND DEEPLY DISRUPTED INTERNATIONAL ECONOMIC AND POLITICAL RELATIONS, SERBIA SHOULD SEEK ADDITIONAL FORMS OF ECONOMIC CONNECTION THAT COMPLEMENT ITS STRATEGIC COMMITMENT TO EU MEMBERSHIP

ndependently of the various scenarios of future relations with Russia, Serbia is already enduring the negative consequences of the Russian-Ukrainian conflict that are spilling over onto the Serbian economy. Firstly, the Serbian economy is strongly integrated into the EU according to all economic parameters. The EU contributes over 60% to Serbia’s total foreign trade exchange and accounts for 70% of foreign direct investment, with EU partners operating around 24,000 companies in the country, employing close to 900,000 workers, while the largest part of the remittances of Serbian citizens – equating to approximately 8% of GDP – arrive from Germany and other European countries. The Serbian banking sector is also dominated by European-owned banks, while the Serbian dinar is pegged to the euro. The strong, longterm connection between the two economies has been established empirically: when the EU advances well in economic terms, that reflects positively on Serbia’s economic growth, employment and the standard of living of Serbian citizens. The opposite situation, however, also applies, which is precisely the case now. Disrupted global supply chains, coupled with dramatic rises in energy and food prices, lead to a slowdown in investment activity and economic growth, pushing inflation and exerting pressure AN IMPORTANT PRIORITY FOR THE FUTURE on the budgets of European countries. All these negative effects GOVERNMENT SHOULD BE MITIGATING THE RAMIpartly spill over to hit the Serbian economy. FDI inflows are FICATIONS OF THE ENERGY CRISIS CAUSED BY already lower this year, the foreign trade deficit is increasing, THE RUSSIAN-UKRAINIAN CONFLICT, BUT ALSO inflation has exceeded 10%, alongside a pronounced increase in prices of food and energy, while interest rates on loans to busiBY THE UNPROFESSIONAL MANAGING OF THE nesses and households have increased. It is this year necessary DOMESTIC ENERGY SECTOR to allocate a huge 1.7% of GDP to cover the interest on public debt repayment, while the cost of future borrowing on financial markets remains uncertain. That’s why it’s important, during such times of great uncertainty and deeply disrupted international economic and political relations, for Serbia to seek additional forms of economic connection that complement its strategic commitment to EU membership. One such form is the regional Open Balkan initiative, which – with its basic guiding idea of the free flow of goods, services, labour, capital and technology – strengthens all participating countries and increases their competitiveness internationally. The future government’s second priority should be mitigating the ramifications of the energy crisis caused by the RussianUkrainian conflict, but also by the unprofessional managing of the domestic energy sector. The unacceptably poor management of the largest thermal power plant, which under normal conditions produces 40% of all electricity for domestic needs and export, has led to the need to make intervention imports at extremely high prices and unnecessarily spend hundreds of millions of euros that will ultimately be paid by Serbian citizens. Around two years and significant investments will be need to stabilise the situation. When it comes to gas prices, Serbia has a favourable three-year arrangement on the import of Russian gas, but that only covers three-quarters of the required amount, with the remainder needing to be paid at higher, market, prices. However, here again Serbia has unnecessarily aggravated the situation by failing to ensure the timely expansion of its own gas storage capacities, which forced it to secure the required quantities, at an additional cost, from Hungarian storage facilities. Finally, Serbia covers about 75% of its oil needs from imports, the main problem of which – at least for now – is represented by very high prices. Considering that such unfavourable situations cannot change quickly, the Government must – at least temporarily – ease the operations of businesses and protect the living standard of citizens through tax breaks and controlling the prices of key energy sources, while simultaneously extending its interventions from commodity reserves and controlling prices of basic foodstuffs.

July

MILOJKO ARSIĆ PH.D., PROFESSOR AT THE UNIVERSITY OF BELGRADE FACULTY OF ECONOMICS

THERE WILL ALWAYS BE BREAD, BUT NOT SMARTS EVEN DURING THE TIMES OF THE HARSHEST SANCTIONS IMPOSED DURING THE 1990S, ENOUGH FOOD PRODUCTS WERE STILL AVAILABLE IN SERBIA. TEMPORARY SHORTAGES OF SUCH PRODUCTS CAN ONLY OCCUR AS A CONSEQUENCE OF MISTAKEN ECONOMIC POLICIES

n the case of the introduction of sanctions, we can be quite certain that would result in the worsening of relations between the Serbian and Russian political leadership. I estimate it as being unlikely that Russia would apply harsher measures against Serbia, such as halting gas supplies and the like, because in the long run that would lead to the loss of its stronghold among the Serbian people. The Russian leadership would probably try to attribute the possible imposing of sanctions to Serbia’s “unpopular pro-Western leadership”, but it would try to maintain its close affinity with the Serbian people, while seeking out new partners on the Serbian political scene. I think the economic cost of imposing sanctions against Russia would be an increase in gas prices for Serbia, probably combined with the suspending or annulling of the free trade agreement with Russia. The rise in the price of gas would have a negative impact on the entire economy and the citizens of Serbia in a certain period, while the suspension of the FTA would hit the parts of the economy that had significant exports to Russia, such as producers of fruit and vegetables. In the case of the European Union, some form of punishment for Serbia should be expected to take the form of a suspension of EU accession talks and the withdrawing or reducing of financial I ESTIMATE IT AS UNLIKELY THAT RUSSIA WOULD assistance to Serbia. The harshest possible measure that one APPLY HARSHER MEASURES AGAINST SERBIA, could expect, but which I don’t think is very likely, would be some SUCH AS HALTING GAS SUPPLIES AND THE LIKE, kind of recommendation not to invest in Serbia for companies BECAUSE IN THE LONG RUN THAT WOULD LEAD from the EU, or from key EU countries like Germany, Austria and Italy. I don’t think the EU would go further than that, and imposing TO THE LOSS OF ITS STRONGHOLD AMONG THE harsher measures would only serve, in the long run, to distance SERBIAN PEOPLE Serbia from the EU and push it towards Russia and China. Any significant reduction in EU investments would hit the Serbian economy hard, because it would cause a slowdown in economic growth and the stagnation of employment and standards, while problems would also arise in terms of financing the balance of payments and servicing external debts. That would all lead to increased pressure on the weakening dinar, and could also result in rising inflation. When it comes to supplying basic foodstuffs, none of these scenarios threaten Serbia because it is a major producer and exporter of such products. Even during the times of the harshest sanctions imposed during the 1990s, enough food products were still available in Serbia. Temporary shortages of such products can only occur as a consequence of mistaken economic policies, such as controlling prices administratively etc.

July

Focus

SANCTIONS AGAINST RUSSIA & THEIR ECONOMIC REPERCUSSIONS

MILAN NEDELJKOVIĆ

DEAN AND AN ASSOCIATE PROFESSOR AT FEFA, BELGRADE

RISKS AREN’T A GOOD FRIEND TO INVESTMENT POLITICAL RISK AND UNCERTAINTY AREN’T GOOD FRIENDS TO A STIMULATING INVESTMENT ENVIRONMENT. AS SUCH, ANY RISE IN THE PERCEPTION OF INCREASED POLITICAL RISK FOR FOREIGN INVESTORS IN SERBIA IMPLIES A REDUCTION IN THEIR INTEREST IN INVESTING IN THE COUNTRY

uring all periods of serious geopolitical disturbances, significant economic challenges and risks are faced by small, open economies like Serbia’s. In the event that the conflict in Ukraine becomes protracted, we can expect – regardless of Serbia’s commitment to sanctions against Russia – continued inflationary pressures and a slowdown in Serbia’s economic growth during 2022 and 2023. At the same time, the currently announced (according to the latest interest rate projections published by the U.S. Federal Reserve and the European Central Bank until 2024) tightening of monetary policy in developed countries will lead to tighter conditions for borrowing and servicing existing debt, which will have a negative impact on the budgets of households over the next two years, but also company balance sheets and investment decisions. In the case of the scenario that you mention in the form of sanctions imposed against Russia, I don’t think either decision would lead to a catastrophic scenario for the Serbian economy and a shortage of basic necessities. However, Political risk and uncertainty aren’t good friends to a stimulating investment environment. As such, any rise in the perception of increased political risk for foreign investors IN THE EVENT THAT THE CONFLICT IN UKRAINE in Serbia implies a reduction in their interest in investing in the BECOMES PROTRACTED, WE CAN EXPECT – country, particularly now that the global liquidity cake is shrinking REGARDLESS OF SERBIA’S COMMITMENT TO and investors are becoming even more selective in the decisions they make. And that’s the case whether it relates to foreign direct SANCTIONS AGAINST RUSSIA – CONTINUED investment or portfolio investments that are also important for INFLATIONARY PRESSURES AND A SLOWDOWN the functioning of the domestic financial market and financing the IN SERBIA’S ECONOMIC GROWTH DURING 2022 start-up community. On the flip side, the imposing of sanctions against the Russian Federation brings with it the risk of the terms AND 2023 of the gas arrangement being changed and the seventh largest market for exports of Serbian products and services (accounting for just under 5% of total exports in 2021) being lost. Thus, from an economic perspective, decision makers should have already implemented measures to minimise the negative implications of some of these risks materialising. This implies credibly curbing inflationary pressures, through time-adjusted and limited increases in targeted fiscal levies/reducing certain tax burdens, and concerted efforts to improve the business environment. On the other hand, it is essential to launch new initiatives aimed at diversifying the country’s energy sources. All told, as with the fundamentals of finance, if we are aware that a risk exists, then it is necessary to hedge as soon as possible, if that hasn’t already been done on time.

July

Feature

Rethinking Supply Chains DIANE COYLE, PROFESSOR OF PUBLIC POLICY AT THE UNIVERSITY OF CAMBRIDGE

Today’s supply-chain policy challenges are a consequence of forgetting that other considerations besides economic efficiency matter, and that hands-on craft knowledge cannot be transmitted online. Unfortunately, problems that have been four decades in the making cannot be solved overnight 24

July

tarting in the 1980s, transnational production enabled the expansion of global trade and low prices for goods, contributing significantly to economic growth. But the shocks caused by the Covid-19 pandemic and the Ukraine war have shown firms that the efficiency gains implied by the global division of labor – and just-in-time production – come at the cost of resilience. With global supply-chain bottlenecks unlikely to resolve themselves soon, firms have turned their attention to reshoring or at least “friend-shoring,” which seeks to combine closer geographic proximity with greater geopolitical peace of mind.1 But turning re-establishing the shorter and more national (or regional) supply chains of a generation ago will be costly in terms of growth. For a hint of just how costly, look no further than post-Brexit Britain’s lack of any post-pandemic trade recovery. The United Kingdom’s independent Office for Budget Responsibility estimates that productivity will be 4% lower in the long run than it would have been had the UK retained its deep trading links with the European Union. The specialisation enabled by globalisation has brought significant benefits, as many economists (including me) have long argued. Businesses will adjust to supply-chain shocks in different ways. Some will reshore. Some will find subcontractors in diverse locations. And some may opt for increased automation. The latter two strategies will carry a lower productivity penalty than reshoring, but will involve adjustment costs and new investment. All three options will roll back some of the globalisation of the past four decades. Other firms, however, will not be able to take any of these steps, given the scale and nature of the upstream activities they have outsourced over the years. In some sectors, such as pharmaceuticals and chemicals, outsourced production accounts for as much as 15-20% of total output. After 1980, there was a substantial shift among companies toward buying components, rather than making them in-house. This reflected the spread of information

Some advanced economies have launched initiatives aimed at rebuilding their manufacturing capability, such as the EU’s ambitious €43 billion semiconductor plan or California’s $100 million proposal to manufacture insulin and other generic drugs

and communications technologies that made it possible to send instructions and receive feedback instantaneously, along with a management philosophy that emphasized cost efficiency and lean production. Many multinational firms kept high-value activities such as research and development or design in the headquarters’ countries, and sent formulae or blueprints to factories in lower-cost locations such as Malaysia and China. After an initial learning period, these facilities could produce goods at a far lower cost than at home, and often with more consistent quality. Over time, however, this pattern has generated another hidden cost: the loss of what is often termed tacit knowledge, or

July

Feature

knowhow, in manufacturing. This refers to the kind of tweaking and learning from experience that never gets written down but happens on every production line. Such insights can provide vital feedback to researchers and engineers, but the feedback is lost when production takes place thousands of miles away. Rich-country firms have allowed these capabilities to erode for decades and cannot reshore them quickly. East Asian manufacturing centers such as China, Malaysia, and Singapore have developed sustainable, hard-to-replicate advantages in specific sectors and also in areas such as logistics. This presents problems for policymakers, too. Secure supplies for key commodities such as food and microchips are now at the top of most governments’ agendas. Some advanced economies have launched initiatives aimed at rebuilding their manufacturing capability, such as the EU’s ambitious €43 billion semiconductor plan or California’s $100 million proposal to manufacture insulin and other generic drugs. Such plans may be a good idea, but they will need considerable time and money to succeed. Meanwhile, strategic stockpiles

July

These supply-chain challenges are a consequence of forgetting that other considerations besides economic efficiency matter, and that hands-on craft knowledge cannot be transmitted online are another possibility. Some countries already hold oil or gas stocks, and many have food reserves, such as the cheese and butter stocks in the United States – albeit aimed at supporting farm incomes rather than ensuring security of supply. (The UK, however, ran down its strategic food stockpiles in the mid-1990s.) Current supply-chain bottlenecks have also highlighted a generally unnoticed reduction in competition. Although economists have been pointing to increasing concentration in many markets, the focus has generally been on the large “superstar”

companies at the end of production chains. But today’s shortages are a reminder that the more specialised each link in the chain becomes, the less competition there can be at each stage. At least until recently, competition policy had shown little concern about vertically integrated companies so long as the retail market remained competitive. The presumption was that pressure at the downstream end would flow upstream. Some had already started to question this consensus amid growing evidence of large firms’ market power. But the shortage of carbon dioxide (a fertiliser byproduct) in UK food production and the huge impact of one factory closure on supplies of baby formula in the US make the same point forcefully. These supply-chain challenges are a consequence of forgetting that other considerations besides economic efficiency matter, and that hands-on craft knowledge cannot be transmitted online. Unfortunately, problems that have been four decades in the making cannot be solved overnight, and the best course of action for policymakers is not obvious. All the more reason to start rethinking the model now.

Leaders’

MILIJA ZEKOVIĆ, SBB CEO

MARIA BOLDOR, Principal at Horváth

Technological Innovations Are In Our DNA

NATAŠA BEZMAREVIĆ, Branch Manager Serbia, DB Engineering & Consulting GmbH

Key Challenges & Opportunities

PAGE /28

PAGE /31

MEETING POINT PORTO MONTENEGRO

IVAN CRNOJEVIĆ, CEO, Elmed doo

OM&PARTNERS MILUŠA OKILJEVIĆ, Founder and Managing Partner

Focus On Electrifying Train Lines

A Life Less Ordinary

ELMED – We Can Do More

Our Job Is To Find A Way

PAGE /32

PAGE /35

PAGE /36

PAGE /39

MILIJA ZEKOVIĆ, SBB CEO

Technological Innovations Are In Our DNA We want to enter the mobile telecommunications market and offer our users 4P services, i.e., a combination of broadband internet access, television and fixed-line telephone services, on the one hand, mobile telephone and internet, on the other ~ Milija Zeković, SBB CEO

ompany Serbia Broadband SBB emerged in Kragujevac 20 years ago and is today a leader of innovation in Serbia’s telecommunications market. United Group – leading multi-play telecoms and media provider in South East Europe – emerged and developed out of SBB, and today SBB forms part of that group. Here we discuss SBB’s development path and future plans with its CEO, Milija Zeković. What do you consider as being the decisive factors in the business policy that enabled SBB to today hold a leading position in multiple market segments in Southeast Europe?

July

This company was created 20 years ago, when it had only eight employees. SBB today has more than 1,800 employees in Serbia, while United Group, which emerged out of SBB, has over 15,000 employees. An orientation focused on the user, the market and users’ needs contributed to this group expanding out of that little company that started life in Kragujevac. We had an ear for everything needed by our users, monitored all world telecommunications trends and succeeded in being the first in Serbia to bring innovations to this market. Apart from being customer- and employee-oriented, investments in employees have also led to most of the products we now provide being manufactured within the scope of SBB and United Group. That’s how the EON TV platform, which was created within United Group, has now become the best TV platform – not only in Serbia and the region, but I would say even further afield. Looking at the entire portfolio of services you provide, what would you say users use the most? According to the research that we conduct, ours are the most satisfied users of telecommunications services in Serbia. First and foremost, they’re satisfied with our EON platform and the possibility to watch television non-linearly, i.e., time-shift. We were the first to launch that option in Serbia and are far and away the best. Users are also satisfied with the free subscription video on demand (SVoD), which we were also the first to offer, and our fast and stable internet. We have received confirmation this year

from internationally renowned company Ookla’s Speedtest®, the global leader in fixed broadband and mobile network testing applications that we have the fastest and top rated fixed network. How has the focus of your investments shifted with time and what will be your most important future step to ensuring the further development of a company that is celebrating 20 years of doing business? We initially invested the most in television, and then in broadband internet. We’ve invested over half a billion euros in our technology just in the last 10 years, and this year we’re completing a major project: GIGA Serbia, the digitalisation of the whole of Serbia, which means that all cities where we provide services will be digitalised, and that we’ll be able to provide every city with internet speeds of up to 1 Gbps. Our television service will also be digitalised, meaning users will have very good picture and signal quality. And we won’t stop there. We’re going for a speed of 10 Gbps, and that’s our plan for the following three years, which requires investments of around 250 million euros in the existing network. We also want to enter the mobile telecommunications market, to become an operator that has in its portfolio a complete fixed and mobile services, to provide quadruple play services and to be innovators in both the field of 5G and the field of mobile internet service provision. While we’re on the topic of the 5G network, it’s generally believed that it will bring the

greatest shift in the industrial sector and less so in the domain of individual users, for whom 6G will be more significant. What are your motives for entering this segment? When it comes to mobile telecommunications, but also fixed services, there are some new cycles every four to five years. What we’re trying to do is to convince the state to organise a tender as soon as possible and thus resolve the cycle of investing in 5G, because if you fall behind in the 4G process, as we have, then it becomes a question of when the next generation of mobile telecommunications will come. And we also have experience in Bulgaria, Croatia and Slovenia, where we already provide commercial 5G services, and then we ask ourselves why we wouldn’t apply that knowledge in Serbia, where we have a strong company. You operate in a region that’s highly exposed to outward migration. How hard are you hit by the challenges of finding and retaining expert personnel? SBB has historically demonstrated that it’s a good place for young people. Already 38% of our managers are aged under 40, which means that we attract young people. Likewise, within the framework of United Group, in the scope of its R&D centre - United Cloud, employees know that if they work for United Cloud they can advance and bring something new to the market, which is interesting. During the last year we’ve signed a cooperation agreement with the Faculty of Electrical Engineering, the Faculty of Organisational Sciences and the Faculty of Economics, and we now have around 20 people on work experience placements at the company who are learning and are potentially ready to start working, when they complete their studies. However, nor are we isolated and immune to outward migration. What’s become noticeable in the last year or two is that now there isn’t only a lack of highly educated personnel, but also professional workers with secondary school level education, primarily in the telecommunications domain. We’ve also done something in this field,

Through the process of learning at our company, we create staff with abundant knowledge and experience, who have good conditions for advancement and a good quality of life, which motivates them to stay with us and in Serbia through cooperation with educational institutions and work experience placements at our company. How prepared are the region’s users to adopt new technological solutions and what do your stats show about the extent to which users possess the required digital skills to be able to fully utilise the options you provide? Technological innovations are in our DNA. We listen to the demands of our users and innovate constantly. The EON TV platform, then EON Connect, EON Kids. We have a sector that deals with innovation, which brings innovations, and our market accepts that in a way that’s

similar to the Western European market. The younger population in particular is constantly seeking something new. Our advantage is that we succeed in bringing what’s new to the Serbian market. We devote plenty of time to educating users. Our shops are like showrooms, where the user can try each of our services, which is particularly important with the elderly population. Our customer relations are ultimately what set us apart. We all became more mobile during the Covid-19 pandemic. What does that mean to you in terms of offering services to such clients on the move? During Covid, when we all switched to working from home, we saw a huge increase in internet use, even exceeding 50%, in watching television and using all our services, such as watching TV content Catch-up TV, video on demand... We even had a more than 75% increase in the use of fixed-line telephones. Some capacities that we’d only intended to make available in 2023 and 2024 had to be released immediately. We were also among the first companies to introduce telework from home for our services where possible, and that was even before it was officially introduced.

July

“We are investing in micro, medium and small companies in Serbia because one day there will be companies of the European Union” ~ EMANUELE GIAUFRET, AMBASSADOR OF EU TO SERBIA

LOCAL NEWS

25 YEARS ANNIVERSARY CELEBRATION AND GRADUATION CEREMONY The BIS celebrated its 25th Anniversary and on this special occasion, the Guest of Honour was HRH Prince Alexander Karadjordjevic. All the guests including members of Corps Diplomatique and foreign business representatives, families of the students and friends of BIS enjoyed the musical performances by Sophia S, Pavel M and Ziva W. as well as valedictory speeches by a student and parent representatives. The peek of the evening was the Graduation Ceremony where the Graduating Class of 2022 received their BIS High School Diplomas. Special awards from the Council of British International Schools (COBIS), European Council of International Schools (ECIS), as well as the internal Jonathan Rider Award for Academic Excellence were presented to several Secondary and Primary students.

670 THOUSAND CLIENTS OF MOBI BANKA MADE MORE THAN 100 MILLION TRANSACTIONS As a digital banking pioneer, Mobi banka offered completely digital banking services to the citizens of Serbia for the first time. Today, there are 670,000 users of Mobi application, and by the end of the year this number is expected to increase to 750 thousand. The President of the Executive Board of Mobi banka also referred to the micro crediting trend, pointing out that there is potential for its further development. “The average gross salary in Serbia is almost 98 thousand dinars and is constantly increasing. At the same time, loans for general technological devices in most cases do not exceed 200 thousand dinars. Accordingly, the amount of two average gross salaries would accelerate the microcrediting of these devices”, Pavel Maco, President of the Executive Board of Mobi banka said.

July

&postings

Placements appointments@aim.rs

H.E. LUCA GORI, NEW ITALIAN AMBASSADOR TO SERBIA

Born in Florence on 27th July 1968, Luca Gori graduated in political science from the University of Florence in 1993 and began his diplomatic career in 1995. After serving at the Directorate General for Political Affairs of the Italian Ministry of Foreign Affairs, his first engagement abroad came at the Italian Embassy in Moscow in 1999. He joined the Permanent Representation of Italy to the EU in Brussels in 2003, where he monitored relations between the EU and the Western Balkans. After becoming First Counsellor at the Italian Embassy in Washington in 2010, he returned to Rome in 2014 and was assigned to the Office for Diplomatic Affairs of the General Secretariat of the Presidency of the Republic. He was decorated with the Order of the Knights of Merit of the Republic of Italy in 2015 and became Deputy Director General for Political and Security Affairs / Director for the Mediterranean and Middle East countries in 2018. A married father of two, Ambassador Gori is the author of various essays on issues related to foreign policy and international relations.

VOLODYMYR TOLKACH, NEW AMBASSADOR OF UKRAINE TO THE REPUBLIC OF SERBIA

Born in Kyiv on 17th January 1959, Volodymyr Tolkach studied hydrogeology and engineering geology at Kyiv Taras Shevchenko University, graduating in 1981, before completing his postgraduate studies at the same university and earning his Geological and Mineralogical Sciences Ph.D. in 1988. He later (1999) became a Master of Foreign Policy following studies at the Diplomatic Academy of Ukraine. After serving as senior engineer of the Academy of Sciences at Ukraine’s Institute of Geological Sciences from 1981 to ’84, he became assistant professor of hydrogeology and engineering geology at Kyiv Taras Shevchenko University from 1988 to ’93. After joining the Ministry of Foreign Affairs of Ukraine, he became First Secretary of the CIS Department General (1994-’96), then Political Adviser of the Head of the OSCE Mission to Georgia on the Settlement of the Georgian-Ossetian Conflict (1996-’97) and Adviser to the CIS Division of the First Territorial Department General (1999-2000). His foreign postings include serving as Counsellor of the Embassy and Chargé d’Affaires of Ukraine to the Republic of North Macedonia (2001-’04) and Chargé d’Affaires of Ukraine to the Republic of Iraq (2009-‘10). He received his first ambassadorship (to the State of Kuwait) in 2010 and held the post until 2019. Prior to arriving in Belgrade, Ambassador Tolkach – a married father of two – served as Head of the Human Rights and Council of Europe Division of the International Organisations Department General at Ukraine’s MFA.

H.E. MOHAMEDHAKIEM ABDALI HAMZA AL-ROBAIEE, NEW IRAQI AMBASSADOR TO SERBIA

Born in Babylon, Iraq, in 1956, Mohamedhakiem Abdali Hamza Al-Robaiee attended Basra University, where he earned a Bachelor’s degree in Business Administration and Accounting from this university’s College of Administration and Economics in 1979. Following a 15-year career (1988-2003) as a bank manager at Al-Rasheed, he was appointed Director General of the Department of Administrative and Financial Affairs within the General Secretariat of the Iraqi Council of Ministers (2003-‘05), before spending five years (2005-’09) as Head of the Administration and Finance Department at the Ministry of Foreign Affairs. Prior to his arrival in Belgrade, this married father of three daughters held several ambassadorships, serving as Ambassador of the Republic of Iraq to the Republic of Senegal, the Republic of Slovakia and the Republic of Romania.

MARIA BOLDOR, PRINCIPAL AT HORVÁTH

Key Challenges & Opportunities The report “Finance at the Crossroads of Coronavirus, Digitalisation and Sustainability” presents key challenges and opportunities for the business world

Management consulting company Horváth published the analysis this spring that summarises the views of more than 200 financial and commercial directors of companies from various industries in North America, Europe and Asia, pointing to the finance transformation

hortages of skilled workers, bottlenecks in supply and production chains, cyberattacks and inadequate data security – these are just a few of the key challenges confronting companies’ operations according to the study “Finance at the Crossroads of Coronavirus, Digitalization and Sustainability”. “In the desired organisation of the financial area, proficient users of digital methods with strong consulting skills are preferred over technical experts. CFOs don’t only implement ideas, but also proactively drive holistic transformation processes. The focus is on conducting data-driven analyses as the basis for sound recommendations to support decision-making. Also, the aligning of processes and organisational aspects is a prerequisite for integrated and crossfunctional collaboration. A strong, role-based finance organisation is the catalyst for efficiency and management support, while green topics are firmly established components of the functioning of finance,” explains Maria Boldor of management consulting company Horváth, adding that, in the target image, agility and virtuality shape the way finances work. She estimates that the first steps in this transformation process were taken during the previous period. Firstly, there was the increased use of smart solutions that enable data collection and provide the basis for analysis. Secondly, ever more attention is being paid to empowering employees and, lastly, the pandemic accelerated the introduction of virtual models of cooperation and flexible processes. According to the study, as many as 66 per cent of companies see investing in

CFOs must be strong role models who are able to motivate and persuade others, while also breaking down existing barriers and building bridges between functions automation and digitalisation as a key opportunity to further improve their business, while 46 per cent see great potential in the introduction of new forms of work that are flexible and agile. Boldor points out that measures to ensure a holistic approach must now be on the agenda of CFOs, and believes that finance employees must strengthen their strategic position within the group as a whole. “They stop being passive ‘bean counters’ and become proactive partners and advisors.

CFOs need to identify the goal they want to achieve, and resolutely keep their team on the path of transformation. It is up to them to make the whole process understandable, clear and transparent, as well as to communicate the necessary measures and changes to their staff. This is the only way to positively influence the readiness for structural, procedural and cultural change,” advises Boldor. Therefore, she concludes, the very need for change must be tangible, and CFOs must be strong role models who are able to motivate and persuade others, while also breaking down existing barriers and building bridges between functions. At the same time, CFOs help the green transformation within a company. They are responsible for new reporting requirements and for formulating and implementing a sustainable corporate strategy, but are also expected to check whether investments are aligned with the EU’s legal frameworks.

July

NATAŠA BEZMAREVIĆ, BRANCH MANAGER SERBIA, DB ENGINEERING & CONSULTING GMBH

Focus On Electrifying Train Lines Deutsche Bahn has been providing engineering, consulting and train operation services, as well as digital systems, for many years and has successfully implemented railway infrastructure projects worldwide. Its portfolio has expanded together with its geographic range over the years being constructed across the entire Western Balkans. Serbia is developing the first highspeed line – making it the region’s leader in rail development. A train that travels at speeds of up to 200 km/h, our own train, on our own tracks, is no longer a dream of our future, but rather a reality today. What’s the next step? This is only the beginning of faster and more environmentally friendly transport connections, sustainable solutions that will allow

Serbia is developing the first high-speed line – making it the region’s leader in rail development

Supervision project – HSL1 Belgrade – Stara Pazova

his is a company that designs and implements tailormade rail transportation and mobility concepts for its clients that are up to the challenges of our time. As a company that’s keen to develop clear and friendly communication with clients, it always takes project specific requests into consideration, while ensuring high-quality, sustainable solutions and cost effectiveness.

July

How much has railway infrastructure and rail traffic changed over the course of the 11 years that you’ve been operating in Serbia? It’s as though this isn’t the same country, and your company also deserves credit for that... Over the past decade, the Republic of Serbia has invested a lot in the development of infrastructure, especially in the energy and transport sectors. A number of largescale projects have been completed and are still

not only the shortening of travel times, but also the reducing of pollution and unburdening of roads. As a next step, a network that connects the country from north to south, from border to border, will have to be created, allowing trains to reach speeds of up to 200 km/h. The adoption of technical interoperability standards will help improve safety, while compliance with European standards and norms will lead to smooth passenger and freight transport seamlessly connecting European countries, without limitations imposed by nation-specific standards. You have experts in all engineering disciplines who are constantly advancing their knowhow,

Do you agree that better connectivity and the improved transport of both people and freight should be the end goal of the development of rail transport in Southeast Europe? If I didn’t agree, I wouldn’t be doing this. I strongly believe that rail transport is the future and that one day we may, as part of Deutsche Bahn, contribute to the introduction of zero-emissions solutions in the Western Balkans. For the moment, the focus is mainly on electrifying existing lines, but it’s our ambition to introduce hydrogen powered trains and filling and charging infrastructure. Does state investment in railway infrastructure create new opportunities for private investment, an improved economy and higher living standards for all citizens? Investments in rail offer numerous opportunities, both for citizens and for a country’s cities and economic regions. In order to better connect urban centres and prevent major cities from choking in traffic jams and smog, infrastructure and mobility services must adapt to the rapid pace of expanding populations. This is no easy task: it calls for innovative and sustainable solutions that move people and goods quickly from A to B – whether for short trips through densely populated megacities or for long-distance transportation. These are exactly the kinds of solutions that we develop for our clients: we design and implement tailormade rail transporta-

Design project - Reconstruction and modernisation of Valjevo Vrbnica railway line tion and mobility concepts that are up to the challenges of our time. How would you assess your cooperation with the company Serbian Railways Infrastructure and the relevant ministry? Which companies are your biggest clients in the private sector?

As a company that provides engineering and consulting services in the railway sector, we’re mainly oriented towards working with stateowned companies and public authorities. Our operations in Serbia necessarily mean that we cooperate closely with IŽS, as well as with the Ministry. We are therefore keen to develop clear and friendly communication with our clients, taking into consideration project specific requests while ensuring quality, sustainable solutions and cost effectiveness. Our experience to date has been very positive, and we hope to be involved in new opportunities to cooperate beyond the high-speed Belgrade-Budapest line project and the upcoming Niš-Dimitrovgrad project, the design project for the Reconstruction and modernisation of the Valjevo-Vrbnica railway line, the HSL1 Belgrade-Stara Pazova supervision project and technical assistance on the Čortanovci Viaduct.

while as a company you’ve amassed many decades of experience and thousands of successfully implemented works. Is it thanks to a combination of all of this that you’re able to offer an entire range of various services? We offer sustainable solutions in support of technical development, including digital solutions like measuring and diagnostic technology and rail condition monitoring. DB Engineering & Consulting recently joined the globally active DB E.C.O Group, which combines engineering, rail and digital expertise. We also operate trains of public railway companies, which means that we offer services along the entire life cycle of railway infrastructure projects: from planning to commercial use.

July

“The main worries of the Romanians are connected to inflation, and they have as a measure – thrift” ~ DRAGOS ANASTASIU, CHAIRMAN OF RETHINK ROMANIA

REGIONAL NEWS

SUPPORT FOR REGIONAL ECONOMIC INTEGRATION IN THE FIELD OF QUALITY INFRASTRUCTURE AND E-COMMERCE GIZ has launched its new project to support regional economic integration in the field of quality infrastructure and e-commerce. The EU4Business project: Support to Regional Economic Integration will be implemented on behalf of the European Union (EU) and the German Federal Ministry for Economic Cooperation and Development (BMZ) and aims to strengthen regional economic integration between CEFTA parties by supporting the implementation of the Common Regional Market Action Plan in both areas. David Oberhuber, Director of GIZ for North Macedonia, said that GIZ is very proud to be re-engaged to implement a project that will increase trade and competitiveness in the CEFTA markets.

MONTENEGRO AND ALBANIA BUILDING BRIDGE OVER BOJANA RIVER Montenegrin Prime Minister Dritan Abzović and Albanian Prime Minister Edi Rama presented to the public a joint infrastructure project to build a bridge over the Bojana river that will connect Ulcinj with Velipoj. About 34 km of underutilised sandy beaches in the area of the two countries are in demand by about 500,000 tourists annually. It was pointed out that the current distance between Ulcinj and Velipoja is about 73 km, and that with the construction of the bridge it would be reduced to about 1 km.

BULGARIA STICKS TO PLAN TO ADOPT THE EURO IN 2024 Bulgaria’s government approved a plan to join the eurozone as of 1st January 2024, amid concerns within the ruling coalition over the lack of detailed analysis on the impact of the move. Political uncertainty and three elections last year delayed the plan, which was first drafted after Bulgaria was admitted, together with Croatia, to the ERM-2 mechanism, a mandatory stage for joining the euro in 2020. The EU’s poorest member state, which already pegs its lev currency to the euro, has pledged to adopt the single currency at its current fixed rate in 2024.

July

A Life Less Ordinary Founded some 15 years ago by a consortium of visionary developers, Porto Montenegro is set in the spectacularly beautiful Bay of Kotor on Montenegro’s Adriatic coast. From its historic origins as a naval base, this site has been transformed into an exquisite waterfront destination, with low-rise apartment buildings, tree-lined pedestrian boulevards and an array of chic boutiques, restaurants and cafes surrounding a breathtaking superyacht marina

hat began as a best-kept secret among yachting aficionados is no longer so secret, with sophisticated travellers adding Montenegro to their list of must-visit destinations. They almost all fall in love with the place immediately, seduced by its natural beauty and the warm welcome they receive. For a significant number, that love-at-first-sight feeling has translated into a decision to buy a home in Porto Montenegro – whether as a seasonal hideaway or a permanent base – secure in the knowledge that Porto Montenegro’s world-class amenities make it a sound investment, in both financial and quality-of-life terms. While some home buyers are content to wait for the 2023 completion of the new Boka Place neighbourhood, others fulfil their urge to move immediately by buying into one of Porto Montenegro’s recently completed buildings, where a limited number of residences remain available. Set directly on the quayside, Regent Pool Club Residences comprises two wings – Baia and Aqua. Designed in sleek, contemporary style and linked at podium level by an expansive terrace complete with swimming pools, the residences feature light-bathed interior spaces and sweeping views of the sea or mountains. Owners have access to all services and amenities of the five-star Regent Porto Montenegro and can benefit from the hotel’s optional rental pool programme. Just a few steps from the waterfront, Elena Residences is a sophisticated addition to Porto Montenegro, with well-planned interiors featuring expansive terraces and beautiful views of the sea or mountains. Owners are offered a comprehensive palette of services, including the option of interior design and

It’s very easy to fall under the spell of Boka Bay: it has a special, indefinable magic that goes beyond the spectacular natural surroundings – a serenity that is increasingly valuable in today’s world, yet ever harder to find furnishing solutions, and access to Porto Montenegro’s well-established M Residences rental management service. As with Regent Pool Club Residences, buyers receive automatic membership in the exclusive Owners’ Club, with its dedicated lifestyle team and portfolio of special privileges. This year, we are thrilled to tell you more about the village’s new jewel, Boka Place – a rare chance to create a laidback yet elegant lifestyle, become part of the vibrant and welcoming community that’s already well

established in Porto Montenegro, and make a sound investment. Due for completion in 2023, this lively, topof-the-line urban neighbourhood has been designed for year-round living, with a focus on wellbeing and fitness. It features a wide variety of residences, high-quality retail outlets, extravagant eateries, a new flagship SIRO hotel, and a plethora of entertaining activities for families, couples and friends. With its distinctive style and privileged position, Boka Place also represents an excellent investment opportunity, in terms of both capital appreciation and the option to benefit from a well-established and proven rental management programme. It’s very easy to fall under the spell of Boka Bay: it has a special, indefinable magic that goes beyond the spectacular natural surroundings – a serenity that is increasingly valuable in today’s world, yet ever harder to find. And that makes it hard to resist the prospect of owning a home in Porto Montenegro. For more information please visit www.portomontenegro.com or contact us at sales@portomontenegro.com.

July

IVAN CRNOJEVIĆ, CEO, ELMED DOO

ELMED – We can do more The future belongs to modern, innovative companies that carefully plan and strategically manage their business. For this reason, Elmed doo in Temerin, winner of the Serbian Chamber of Commerce Award for Special Contributions to the Development of the Economy of the South Bačka District, is constantly working on innovation expanding the range and introducing new items to the market, and innovative and modern product design, we have seen constant improvement in our business results. With the dedication and commitment of all of our staff, with the support of management and our founders, guided by a good idea and a strong desire and vision for the future, we

We are grateful to our partners, clients and staff, some of whom have been with us from the very beginning. Business success is reflected in trust, respect, hard work and mutual commitment have achieved the dream of developing a company that will become a market leader in product labelling and traceability.

ur mission is to constantly adopt new knowledge, continuously raise the quality of our products and services and create specific solutions tailored to specific needs, solutions that will help our customers achieve their goals and improve their business ~ says Elmed’s Leading man. Elmed has been market leader in industrial marking for 32 years. How do you ensure

July

continuity and continuous progress? Dedication, work, innovation and continuous business improvement? Our story began exactly 32 years ago, back in 1990, when Serbia was going through an extremely difficult period. In moments of great business challenges, we started our business as a small company with a dozen staff, but that number increased from year to year. Thanks to constant improvement of product quality and business processes,

Your team is noted for its creative ideas, security and reliability, as well as 24/7 support ... Is this what your customers especially appreciate and value? The basic commitment of the company’s management is sustainable long-term business based on the development, sale, production and service of industrial coding systems, product inspection and traceability, self-adhesive labels, electromechanical systems and integrated hardware and software solutions in the field of industrial marking and warehousing. We operate in conditions

that ensure the provision of quality products and services with the protection of health and safety at work, environmental protection, information security, business continuity and socially responsible business. Our clients appreciate all that, but also our commitment, reliability, security, and especially the fact that they can always rely on us because we are always there for them, for their wishes, needs and expectations. Speaking of clients, we can’t help but ask who they are ... Who are your clients, in which industries are you present, which markets do you cover? We have many clients among renowned companies with whom we have been cooperating for many years, and with some for decades. Working on large and challenging projects for clients, many of which are considered the best in their sectors, has brought us immeasurable experience in the field of beverage and food production, recognition in the food, pharmaceutical and chemical industries, cosmetics and personal care, printing, the tobacco industry, construction materials, extrusions, cables and wires, electrical components, automotive, defence and the metal industry. We are grateful to our partners, clients and staff, some of whom have been with us from the very beginning. Business success is reflected in mutual trust, respect, hard work and mutual commitment. Success is maintaining continuity and continuous progress in business for 32 years. We have achieved that and we are moving on. You are involved in a dual education programme because you have recognised the importance of practical learning. Will you continue that in the new 2022/23 school year? Are young people from Temerin interested in working for Elmed? We joined the dual education programme in the 2020/2021 school year, because we recognise the importance of practical learning. We plan to continue with the programme in the next school year. Students come to us from our local high school Lukijan Mušicki to join our Machining Operator department. We had the opportunity this year to cooperate with the Faculty of Technical Sciences

We plan to continue with the dual education programme and start with student internships next school year, because we recognise the importance of practical learning and be one of the sponsors of an exceptional student competition in robotics - EUROBOT. Our plan is to open up more to students and enable student internships for mechatronics, robotics, software engineers, and I hope that we will be able to fulfil that by the beginning of the next school year. We have just begun a third year of living and working under difficult circumstances. How do you deal with the challenges? At first, I did not expect that the whole world would be affected by the coronavirus, but as soon as Covid-19 arrived in Serbia, we put in place all the protection measures throughout the company, organised remote work and online meetings. For the staff of the manufacturing sector, whose presence at work is crucial, we organised work in shifts to provide them with full security. In the meantime, we introduced 24-hour psychological support and help, which has

proven to be a great move, because we know that solidarity and compassion are shown in such difficult moments. This is exactly what every individual, and even the company, needs in all difficult times, in all crises, such as the one we are experiencing due to the war in Ukraine. It is difficult because no-one knows when the war will end or when the inflation that the whole world is struggling with will stop, but we will deal with the challenges as best as we can. And we know we can. You recently received recognition from the Serbian Chamber of Commerce for your special contribution to the development of the economy of the South Bačka District! Congratulations! Thanks for the congratulations! This is a recognition that the Regional Chamber of Commerce of the South Bačka District awards to companies and business leaders who have distinguished themselves with their work, dedication and results in 2021. At the beginning of June, the recognition was handed to us by the director of the RCC of the Južnobački administrative district, Olivera Simović. We are proud to be the recipients of such an important award, especially because our commitment to work and innovation on the industrial marking market has been recognised. We believe that, with constant work on the improvement of business, we can do more, as our slogan says!

July

“We are facing enormous pressure on the supply chain” ~ MARTIN DAUM, DAIMLER TRUCK CEO

WORLD NEWS

CHINESE TESLA RIVAL NIO LAUNCHES NEW ELECTRIC SUV Nio launched the ES7 sports utility vehicle as competition with Tesla intensifies in China. The ES7 adds another competitor to Tesla’s Model Y and Model X in China as the competition in the electric SUV space ramps up. Nio is trying to differentiate its electric SUV by highlighting the technology features of the vehicle. This includes Nio Autonomous Driving, the company’s system that powers some semi-autonomous driving features. The company also highlighted its infotainment system, which includes a 23-speaker surround-sound configuration in the car. The ES7 with a 485-kilometre range starts from 468,000 Chinese yuan ($69,693) before subsidies. The longest range version starts at 526,000 yuan before subsidies.

NAOMI OSAKA AND LEBRON JAMES LAUNCH MEDIA COMPANY Four-time Grand Slam winner Naomi Osaka is launching a media production company in partnership with The SpringHill Company, a media conglomerate created by Lebron James. The production company, called Hana Kuma, will produce scripted and nonfiction content, starting with a New York Times documentary about Patsy Mink, the first woman of color elected to U.S. Congress, according to a press release. The announcement says Hana Kuma will highlight “empowering” and “culturally specific” stories.

REVLON FILES FOR BANKRUPTCY PROTECTION Cosmetics giant Revlon filed for Chapter 11 bankruptcy protection as it grappled with a cumbersome debt load and a snarled supply chain. The company said it expects to receive $575 million in debtor-in-possession financing from its existing lender base, which will help to support its day-to-day operations. The filing “will allow Revlon to offer our consumers the iconic products we have delivered for decades while providing a clearer path for our future growth,” Revlon President and Chief Executive Officer Debra Perelman said in a press release. Revlon’s bankruptcy filing said the company is currently unable to timely fill almost one-third of customer demand for its products, due to an inability to source a “sufficient and regular supply of raw materials.”

July

Our Job Is To Find A Way OM&Partners, a rising star among Belgrade’s commercial law firms, chose the beautiful House of King Petar I to present itself to the Belgrade business community

iluša Okiljević, founder and managing partner, gave special thanks to all those present and her team. “We are not lawyers who will send a comprehensive opinion listing risks and reasons not to implement some business idea. Our job is to find a way, and I really believe that a good lawyer must understand business, not just law. The bigger picture is the key, and we are not losing sight of that,” said Miluša, speaking on the occasion of the opening of the firm. OM&P Law recently took up residence and began working on the 19th floor of the Belgrade Palace, where Miluša leads a team of ten lawyers within the firm, and as many external associates, who operate successfully in twenty different domains of legal expertise, such as tax law, corporate law, banking and finance, public affairs, EU law, Competition law, State aid, foreign direct investments and personal data protection advice.

Miluša has amassed her experience as a legal advisor working for some of the largest multinational companies and government institutions. She has served as a legal counsel of the Government of the Republic of Serbia and the Serbian Ministry of Mining and Energy. Her work focuses primarily on Antitrust/Competition, EU Law, and Corporate/M&A.

July

Entrepreneur

ROYA MAHBOOB

CEO OF THE AFGHAN CITADEL SOFTWARE COMPANY

This tech entrepreneur now lives in New York, but she continues to help young Afghan women build digital literacy

Afghan Woman Who Became A Chief Executive At 23 40

July

wikipedia.org

Opponents spread rumours . . . accusing her of being a spy and of introducing western ideas furnished: the living room holds a couch, chair, coffee table and a bureau with a TV on top. A balcony looking out over a parking lot contains two lime-green beanbag chairs. Her brother’s bedroom doubles as a makeshift studio for media interviews. Mahboob says they are waiting to buy more furniture and bring over rugs, books and other belongings stored at their parents’ home in Herat until they find an apartment they want to stay in for several years. Manhattan’s skyline is just visible through the window as Mahboob, now 29, leans forward in her brightly patterned chair and recounts her journey from internet café patron to tech entrepreneur.

Her interest piqued by her initial foray online, where the first programme she used was Yahoo Messenger, Mahboob enrolled in computer courses offered by the UN Development Programme. She went on to study computer science at Herat University — to the initial disappointment of her family, who hoped she would become a doctor or an engineer — and took a job after graduation as the university’s first female IT co-ordinator. In 2010, she set up the Afghan Citadel Software Company (ACSC), with her sister and a few classmates. Around the same time she was invited to join a tech incubator in Herat created by Paul Brinkley, the former US deputy under secretary of defence, as part of a US government-backed programme to promote business development and investment in Afghanistan. A mentor told her, “when a door opens, it’s just open. Take it. Because there are not always opportunities. And I always say yes to opportunities.” As ACSC built a business around government contracts for software projects, it focused

July

coindesk.com

he first time Roya Mahboob used a computer, she was 16 and full of expectations. Growing up in Iran as the daughter of Afghan refugees, access to information was always a fight. But she had heard people talking about a “luxury” that sounded like “a dream”. There were tales of “this small box that you can find any information [in], any books inside . . . And you can talk with people and they did not know that you were a girl or where you [were] living,” she says. She finally saw this box for herself in 2003, when her family returned to Afghanistan after the fall of the Taliban government and she dragged a friend to Herat’s first internet café. “From the first moment that I saw a computer, used the internet, things changed for me. I totally saw a different world than what was around me.” That first experience online set the course of Mahboob’s life: she pursued a degree in technology, became one of Afghanistan’s first female chief executives at the age of 23, started a non-profit to help other young women and girls build digital literacy, and was named one of Time Magazine’s 100 most influential people. It also led her to where we are sitting today, in the sunny, white-walled living room of her apartment in a high-rise building in Queens, New York. Her success brought her international acclaim, but also made it impossible to remain in Afghanistan. In 2014, facing escalating threats to her safety and that of her family, she moved to the US. She now lives in LeFrak City, a sprawling complex of tall brick buildings built in the 1960s for working and middle-class New Yorkers. The three-bedroom space, which Mahboob shares with two of her six siblings, is sparely

twitter.com/royamahboob

Entrepreneur

on hiring women. Mahboob says her experience at university had shown her that many women were better than men at coding, but had a hard time finding jobs. She also saw an opportunity for women to get a foothold in Afghanistan’s emerging tech sector before it became dominated by men. “Technology was new. We wanted [to be part of it] from the beginning. So women would be on a par with men.” But she found it tough going. “For female tech CEOs anywhere in the world, there are going to be some obstacles and challenges. But in Afghanistan, a place that women are not supposed to even work, outside some businesses like handicrafts or agriculture . . . the challenges were never ending,” she says. There was a backlash from “conservatives who didn’t want you to work”. She was targeted by the local Taliban for working with the US military. And there were rivals common in any industry: other companies saw her as “a threat to them for their business and contracts”. Opponents spread rumours, she says, questioning where her income was coming from, accusing her of being a spy and of introducing western

July

She decided to use her profits to open doors for other girls and women in Afghanistan, and started the Digital Citizen Fund (DCF), with help from Rulli ideas. Contracts were not paid on time, making it difficult for Mahboob to pay her employees. Mahboob decided she needed to look outside Afghanistan for funding. After being featured in a Nato documentary, she found her first investor, Italian-American businessman Francesco Rulli. She also decided to use her profits to open doors for other girls and women in Afghanistan, and started the Digital Citizen Fund (DCF), with help from Rulli. The non-profit has built 13 technology centres where girls can learn about computers, programming, financial literacy and business skills. Some 9,000 students have gone through its training.

“Technology really helped me,” she says. “So why don’t we help other girls?” Today, ACSC still operates in Afghanistan, but Mahboob plays a less hands-on role. In New York, she is focusing on DCF, and on mentoring the dozens of young women who have come out of the programme and started their own businesses. One girl’s ice-cream venture has become so successful that her father sold his taxi and became her business partner. Another sells handicrafts to local stores, and is working on creating an online shop. “She is only 16 years old and she has 25 people [working for her]. I’m kind of jealous,” Mahboob laughs. We move into the narrow kitchen, where Mahboob wants me to taste her next business venture. She is buying saffron from an Afghan farmer (also a DCF student) and using it to infuse coffee and tea. Mahboob sets a pair of mugs on the shiny grey counter and fills them from a Thermos. The tea has a bright and warm flavour, and goes nicely with the biscuits she sets on the long dining table. Between her family and her mentoring, Mahboob retains a strong connection to Afghanistan. But these days, she says, New York feels like home — even amid a fraught debate over immigration in the US in the age of Donald Trump. Many immigrants leave in search of safety and freedom, she says. “But I understand some of the frustration of the people outside [Afghanistan] when I read some of the comments on Fox News . . . Unfortunately [immigrants] are always going to be judged [based on] the people that do wrong things.” She was in the UK during 2017 election and, as she prepared to return to New York, says she wondered, “if I go back, are they going to allow me in?” Yet she has been encouraged by the sight of Americans protesting against Trump’s move to block some migrants and refugees from entering the country. The sight contradicted the image of an oppressive US that she had grown up with in Iran. “Today I see the opposite of that. We see the love, the humanity here that we didn’t see in our countries. “You have to give access to information to the people in these societies. Give them access to the information [so] that they can make a decision. And it should happen from an early age. We shouldn’t let our children grow up like that.” Source: Shannon Bond/ft.com

PROFILE

You’re A Lawyer? No, I’m A Molecular Biologist When I enrolled at the Faculty of Biology in 1995, in the Molecular Biology and Physiology course, my dad, who was very concerned but still had great trust in my judgement, asked: ‘What can you do with that? Perhaps it’s actually better to be a doctor?’ And my answer was that molecular biology gave me a chance to change the world, to make revolutionary discoveries, and that I also prefer working in a laboratory and that I feel safer and better there, sheltered from people. That’s how it all began…

JELENA BOJOVIĆ, DIRECTOR OF THE CENTRE FOR THE FOURTH INDUSTRIAL REVOLUTION; NALED PROGRAMME DEVELOPMENT STRATEGIST

owards the end of my studies, I saw a job posting at the Faculty by an American organisation, the International Republican Institute (IRI), looking for a person to work a few hours a month in a business accounting software called Quicken (!!?). Not to get into the course of life events that lent me the experience with this program, it’s these skills exactly that helped me get the first real job. I spent the next six years at IRI dealing with democratic change through cooperation with the Otpor organisation, followed by working on public policies aiming to ensure planning and leadership in driving country’s development by the political parties, mayors and central Government. This work led me to master the algorithms of management, rule of law, regulation, change and reforms. In 2005, I started working for USAID funded projects and since 2010 I’ve been with NALED – Serbia’s top ranking association steering business environment and economic growth of the country by gathering its citizens, business and local

Although I was repeatedly asked “how come you’re not a lawyer?” by people in disbelief that a non-lawyer dares deal with legislation, work on reforms to me was so kindred to molecular biology and genetics – it is like LEGOs fitting together, similar to base pairs in DNA, that need to be properly combined to get the desired characteristics, the laws, processes and regulation, need to be properly designed to tailor the government that is responsive to the needs of its citizens and businesses govenrment around the organization’s mission. I spearheaded multiple complex reforms on behalf of NALED, such as construction permitting, seasonal workforce, lump sum taxation, property registration, introduction of incentives for business start-ups, parafiscal charges, and many more. Although I was repeatedly asked “how come you’re not a lawyer?” by people in disbelief that a non-lawyer dares deal with legislation, work on reforms to me was so kindred to molecular biology and genetics – it is like LEGOs fitting together, similar to base pairs in DNA, that need to be properly combined to get the desired characteristics, the laws, processes and regulation, need to be properly designed to tailor the government that is responsive to the needs of its citizens and businesses.

Even though genetics kept luring me back, I persisted in the regulatory arena because I find the working environment and the changes we create particularly motivating. My colleagues working at NALED are superbly intelligent and hardworking, with great people qualities and confidence that things can improve as long as it’s us working on it, to ensure the change will happen. Over the past years, NALED has increasingly engaged in reforms of the healthcare system. And again my LEGOs joined spontaneously. The World Economic Forum and the Government of Serbia established the Centre for the Fourth Industrial Revolution, as a part of the global network of similar centers established in 16 countries around the world. Each centre develops its own area of expertise – ours has the aim to facilitate synergy of informatics with healthcare and biology, to enable the development of biotechnology and bioengineering. Alongside my continuing work with NALED, a few months ago I agreed to run the Centre, in an effort to marry my degree in molecular biology with the 20 years of unparalled experience with reforms and legislation. The target is to create a favourable legal framework for the launch of the national Gene Bank in Serbia, along with cell therapy and early diagnosis aided by artificial intelligence. Our task is to engage the local brain power and our genes to foster the development of bioengineering and biotechnology. Another revolution is in the making, and I’m so delighted to be a part of it.

July

Architecture

The Railway Station Renaissance Trends Train stations are uniquely romantic places. Perhaps it’s all those tearful goodbyes and joyous reunions, each one subtly different and personal. But behind these emotional scenes lie staggering feats of design and engineering, which make railway stations among the world’s most intriguing and awe-inspiring structures

ailway stations are important elements of the urban infrastructure exerting a substantial influence on the image of the city. The paper shows several examples of new railway stations 44

July

with innovative structures that have a great impact on their urban surrounding. Such modern stations have appeared as a result of the “station renaissance” trend, promoted by the railway companies. The reinvented

rail travel conferred upon the railway stations several new physical and meaningful dimensions. New urban spaces shaped by the new stations have the size of large metropolitan “station cities”, with attractive

LIÈGE-GUILLEMINS STATION

architecture and urban links, connected by high-speed railways. LIÈGE-GUILLEMINS STATION, BELGIUM

LIÈGE-GUILLEMINS STATION

Built in 2009 to accommodate Belgium’s new high-speed rail network, the current Liège-Guillemins station by Spanish architect Santiago Calatrava has to be one of the world’s most dramatic-looking railway stations with its vaulted glass and steel canopy that dips and rises over the station’s five platforms. Stretching more than 145 metres, the canopy creates a station without facades, making it feel open and permeable. Calatrava is something of a specialist in designing railway stations, having already Zurich-Stadelhofen, Lyon-Saint-Exupéry, Lisbon Oriente. He can do airports too, and his Sondika Airport airport in Bilbao is one of that city’s many architectural gems. July

Architecture KRAAIENNEST METRO STATION, AMSTERDAM, THE NETHERLANDS

A metro station beneath a concrete bridge in Amsterdam hardly sounds like the location of one of the world’s bestdesigned railway stations, but Maccreanor Lavington’s stunningly original redesign of Kraaiennest metro station shows that even highly functional design can be beautiful. Laser-cut stainless steel creates an intricately patterned surface on the walls, allowing natural light to enter during the day; at night, internal lights made the patterned screen walls glow.

KRAAIENNEST METRO STATION

NORDPARK CABLE RAILWAY

NORDPARK CABLE RAILWAY, INNSBRUCK, AUSTRIA

NORDPARK CABLE RAILWAY

July

Using Zaha Hadid’s trademark organic, futuristic forms, these four stations on the Nordpark Cable Railway are a brave intervention into the Alpine scenery of Innsbruck, Austria. However, their design is not as incongruous as it may at first seem. According to Zaha Hadid Architects, an architectural language known as ‘shell and shadow’ was inspired by natural ice formations. ‘Lightweight organic roof structures float on concrete plinths, their soft shapes and contours creating an artificial landscape that describes the movement and circulation within,’ say the architects.

TIANJIN WEST STATION, TIANJIN, CHINA

Tianjin West is a key regional transport node, linking high-speed trains between Beijing and Shanghai with local trains, long-distance coaches and city buses, as well as the city’s underground railway. The station also acts as a link between the two halves of Tianjin by bridging the river, the railway tracks and the southbound freeway. A 400m-long x 57m-high barrel-vault roof connects the commercial and business district with Tianjin’s old city. The arched shape of the roof acts like a large-scale city gateway, allowing daylight to flood the space through the diamond-shaped weave of the steel and glass roof structure, ensuring good visibility and sightlines throughout the concourse and on to the 24 platforms arrayed either side.

TIANJIN WEST STATION

KING’S CROSS STATION, LONDON, UK

The brief for King’s Cross was to create an architecturally welcoming space that was also visually and operationally unifying, forming a hub to serve suburban and mainline intercity platforms, as well as providing a near seamless interchange for passengers connecting to the Underground - which is where the majority

of King’s Cross passengers are headed. The architectural and engineering solution devised by John McAslan + Partners ( JMP) and Arup is an 8,000 sq/m semicircular concourse that aids pedestrian flow between all the connection points, as well as providing a generous space for waiting or arriving passengers, with clear sightlines to passenger

KING’S CROSS STATION

information, the trains beyond, plus the usual array of shops, eateries and viewing points provided around the perimeter at ground and mezzanine levels. The Underground was constructed below the concourse at the same time, while the scheme as not allowed to apply any loads to the adjacent Grade I listed Western Range facade.

KING’S CROSS STATION

July

Architecture UNIVERSITY OF NAPLES METRO STATION, ITALY

One of the coolest and most creative stations, Karim Rashid’s colourful, graphic redesign of the University of Naples Metro station was inspired by the theme of ‘knowledge in the digital age [and] language in the shrinking global landscape’. It also represents Naples’ shift from a historic southern Italian city to a global centre for technology and innovation. “This is the changing Italy and Universita station is a metaphor of this new wired global condition. The concept integrates the station with its surroundings, as well as providing a platform for innovative, cutting-edge design strategy,” described Karim Rashid.

UNIVERSITY OF NAPLES METRO STATION

BERLIN HAUPTBAHNHOF, BERLIN, GERMANY

Visible from every approach to the city centre, a massive, fivestorey cruciform construction in steel and glass, Berlin Hauptbahnhof gleams phosphorescent against the night sky. Curved glass tunnels and vertical lines intersect like a glowing rutilated quartz crystal cluster, with tracks extending north, east, south and west. The glass walls render visible - and somehow magical - the movement of each train that bisects its core on the upper levels, before they snake away on a network of raised bridges. When it opened in 2006, it was described it as ‘the most beautiful station in the world’. 48

July

BERLIN HAUPTBAHNHOF

LOGROÑO HIGH-SPEED TRAIN STATION, LOGROÑO, SPAIN

Part of an ongoing redevelopment of the area of Logroño in Northern Spain, this high-speed train station by Abalos+Sentkiewicz Arquitectos has a faceted aluminium room, which extends over subterranean platforms. The purpose of the station, and the redevelopment programme at large, is to improve connections between the north and south of the city. With this in mind, the architects were determined that the station itself should not interrupt or impose itself on the urban topography.

LOGROÑO HIGH-SPEED TRAIN STATION

BERLIN HAUPTBAHNHOF

July

My life Maxim Vengerov, violinist, violist and conductor

July

By Ana Ćirica

WIZARD ON THE ROSTRUM One of the most sought-after contemporary solo artists and conductors, an artist of prolific talent, his career has been totally out of the ordinary: he withdrew from the limelight at the peak of his fame, aged just 30, and spent a four-year hiatus engaged in conducting and pedagogy. His 2011 return to the violin scene was a spectacular comeback that revealed a completely different artist

axim Vengerov (1974) is a recipient of prestigious awards from institutions like the Royal Academy of Music (UK). Decorated with the National Order of Merit of Romania and the Order of Merit of the German Federal State of Saarland, he has received an Honorary Visiting Fellowship at Trinity College, Oxford, and in 2019 received an honorary doctorate from the Royal College of Music in London and the Order of Cultural Merit of Monaco, gaining the title of Knight. Vengerov is the winner of Gramophone Classical Music Awards, a Grammy Award, a Classic Brit Award, five Edison Classical Music Awards, two Echo Music Prizes, as well as the Crystal Award of the World Economic Forum (2007), which is awarded to leading artists whose leader-

ship has inspired inclusive and sustainable change that contributes to improving living conditions around the world. He performs on the ex-Kreutzer Stradivarius violin that was made in 1727. Back in 1997, he became the first classical musician ever to become a UNICEF Goodwill Ambassador. As a shining star of classical music, he is among the few who nurture unusually strong relations with journalists and, when his obligations permit, he doesn’t miss out on opportunities to meet his adoring fans. This interview was prompted by Vengerov’s performance, together with Macedonian pianist Simon Trpčeski (1979), at Belgrade’s Kolarac Endowment Hall on 29th June, under the auspices of the “Virtuosos Without Borders” series of art music concerts. Their performances represent “fireworks of virtuosity and emo-

July

My life Maxim Vengerov, violinist, violist and conductor tion”, and they arrived in Belgrade following masterful performances at New York’s Carnegie Hall, London’s Barbican Centre and the Philharmonie de Paris. “This chair is really comfortable, I’m afraid that people will fall asleep during the concert. Sometimes people at concerts are totally sleepy, and then in the second part they start enjoying themselves. What is important at the end of the concert is what people take away. Music somehow goes into the subconsciousness, and when a person listens to music while sleeping that’s also a kind of therapy, maybe even a stronger one. Things coming from outside sometimes have an even greater effect on us, when our consciousness is there. That’s because, when we are conscious, we view the concert and observe the visual effects, the eyes take a lot of attention. We look at the pianist, violinist; we look everywhere, there are people around. But when one closes one’s eyes, that’s when the effect starts. “Belgrade is a really important city for me. First of all, I love the audience here – the most receptive and warmest audience in the East. There are a few events that I really remember well. I’ve been here a number of times, as you know. One of the first times that I came here, I came as a conductor. It was my first ever orchestra and I performed a major repertoire. It was Beethoven’s Symphony No. 2, my first great symphony with the Belgrade Philharmonic. So, as a conductor, I will always remember the orchestra and venue of my debut. And I know that it was also Zubin Mehta’s first orchestra when he was very young, and we are very similar in this way. Then I came during very difficult times for your country, before and after the bombing. I performed here for children in hospital, during the conflict in Kosovo. It was really difficult, but I insisted on coming to perform both here and in Kosovo. Simply, as a representative of children in my capacity as UNICEF goodwill ambassador, children are on both sides, and I couldn’t stand aside while both sides suffered; physically and mentally, both were affected. So, I’m glad that I came here during those times.” As well as playing the viola, conducting and engagements in music pedagogy, you have pointed out that the violin is your primary

July

The more you study, the more you add to your versatility, it’s like a fingerprint. It’s still you, but there is more information. It’s like DNA…You can’t say I’ve done it, now I can enjoy myself. No, you are always learning. You are always on the road, experiencing life because life is a journey form of communication. Could you tell us more about what you mean by that precisely? The primary source of communicating in the way that the first tongue [language] that I learned as a child, a toddler, was Russian. I then later learned other languages, but Russian is my main language, my mother tongue. And, for me, the violin is the same as my mother

tongue, because I started so early, before I was even five. I started conducting when I was 24. I later started to play the viola, so I have done different experiments. I started teaching. But the violin will always remain my main instrument. How have you balanced your commitments to music and your family? Both require a special kind of dedication, discipline and much love. My mother was a choral conductor for children. She created a school within an orphanage in Siberia. She created music for the school and was director of that school for many years. She was, and remains, the main source of inspiration for me. That’s partly because she was a teacher of vocals, and my instinct was to choose an instrument that’s also close to a vocal. With the violin, I could imitate the human voice. I couldn’t do that with piano right away, because piano has a more percussive nature. The violin is singing, and that was always singing for me. I based my education on listening to many opera singers. There is something really intimate about the violin, those four

What is really special about Rostropovich is that he could change my DNA while we were performing. No other conductor did that to me. All I needed to do was look into Rostropovich eyes and I would know how to play. When I listen to those recordings now, I sometimes cannot recognise my own sound. And that’s a very good thing, because I learned from him, took his DNA and mixed it with mine. That was total magic

strings, the one body of the violin, that forges this instinctive and instant connection with a player. If this is missing, there is no connection. Probably the more sensitive instrument is the human voice, but next to that is definitely the violin, when you hold it next to your body. The violin is definitely an extension of the body, and the bow is an extension of the arm. So, when I teach students and see someone playing in a way that’s not harmonious with the body, then I tell them to try to connect themselves instantly like glue. It is so extremely difficult, easy to say but difficult to do. It’s all down to technique. We can talk about the magic of music, but without technique comes nothing. The violin is a very subtle instrument. It requires a great teacher. If you don’t have a great teacher, you can’t just make music. Even if you feel it so well, the required connection will be lacking. In the Soviet Union, where I grew up, it wasn’t always easy. Most of the time it was very hard work, because you always had to deliver results. It’s not like my kids - you know that I have three children. One is still a baby, only six months old. My two girls play cello and piano,

and they make music because they just love it. I didn’t make music just because I loved it, it was my way of expressing myself; it was a necessity. I thought my violin and my bow were my route and passport to the world. With the violin I could go and travel, and I definitely wanted to travel and see the world. If you talk to children in this way today, they don’t understand. They wonder what’s wrong with just taking a flight somewhere. In those days you couldn’t, but you could if you were a violinist. How important are versatility and curiosity for a musician (you were a choral singer as a boy)? Yes, I sung a little bit in my mother’s choir. I will tell you the parallel: you go to the doctor, to a dermatologist, he checks your skin, but he knows nothing other than the skin. Would you trust a doctor like this? I don’t think so. You need a doctor that knows how to be a general practitioner. Maybe he doesn’t know everything, but he will know how to identify the source of the problem. That’s why simply playing the violin isn’t good enough. I always had to study,

and I still do. I continue educating myself with teachers. When I was 20, I knew practically nothing other than the violin, and I felt very claustrophobic already, although I had a career and performed 150 concerts a year during that time. I felt that I needed to slow down and embark on new studies. That’s why I started experimenting with baroque violin, playing period instruments, I was very curious about that. I then subsequently started playing the viola, learned how to conduct, with a teacher. I initially had many years of studying with teachers. My first teacher for three years was Vag Papian, who was a student of the legendary teacher Ilya Musin in Saint Petersburg. I then studied for seven years with Yuri Simonov, who comes from a different school, but still a Russian one. So, these years of study, plus the experience of working with orchestras, gave me a lot and I don’t regret spending so much time investing in my studies. Now when I play the violin, when I play a Brahms sonata, I know that the longest scene is just a collaboration of the violon and piano, for me it’s a symphony. So, the more you study, the more you add to your versatility, it’s like a fingerprint. It’s still you, but there is more information. It’s like DNA.

July

My life Maxim Vengerov, violinist, violist and conductor

It will always change according to experiences. Being a musician is a journey, like being a doctor, you always study, you advance. You can’t say I’ve done it, now I can enjoy myself. No, you are always learning. You are always on the road, experiencing life because life is a journey. Do other artists (musicians) and arts influence your interpretation? Very much so. When I listen to somebody, I can always learn something very special that I didn’t previously have. And you can’t have everything, which is why it’s important to stay curious about everything. I see one technical element that somebody has and I say ‘okay, I should try this’. Other artists may also inspire you, and also you learn what not to do from them. And that’s very important, you know. You look at somebody and think ‘okay, I shouldn’t be doing that’.

July

This duet with the piano and violin is like a dance between a woman and a man. The violin has the female role, while the piano leads because violin has a horizontal line, as a mono voice most of the time, but the piano has vertical harmony and that’s why it leads. The violin rhymes and shines like the cherry on top of the cake

I love jazz especially. You see, I can’t listen to classical music when I want to relax, because I will start paying attention to everything. What made your collaboration with Rostropovich so significant; and do you still think your recordings with him represent the best of your career? Absolutely so! I do value the recordings I made with him and rate them as being among my best. Because of this precious collaboration, Rostropovich was like my musical father and I collaborated with him for 17 years, until he died. He is a direct link to composers like Shostakovich and Prokofiev, under whom he studied. He was so friendly with many others, like Benjamin Britten. All the compositions I recorded with him and learned from him, it’s like learning from source, and what can be more

precious than that? So, luckily, I also documented it in the recordings. What is really special about Rostropovich is that he could change my DNA while we were performing. No other conductor did that to me. All I needed to do was look into Rostropovich eyes and I would know how to play. When I listen to those recordings now, I sometimes cannot recognise my own sound. And that’s a very good thing, because I learned from him, took his DNA and mixed it with mine. That was total magic. There are only a few people in the musical world for whom time stands still when you talk to them or play with them. Rostropovich was one such person. Such concentration of mind, where everything becomes so harmonious. With him you felt eternity, something that was so truthful. With a view to your upcoming performance in Belgrade, could you tell us more about your collaboration with brilliant Macedonian pianist Simon Trpčeski? I can say with certainty that the Belgrade audience expects much more than an exceptional performance. Simon is a truly exceptional soloist in his own right, very individual. His individuality inspires me. In such a repertoire as the one we present to the Belgrade audience, such as Mozart and Prokofiev, you need not only a violinist with piano complement, but you also need two partners on stage. Very often, and mostly in cembalo music piano leads, and that’s why I always say that the piano and violin form an incredible duet. Two contrasting instruments, one, the violin, has more of a singing nature, while the other, the piano, has more of a percussive nature. They both strive to come together and be harmonious. As conflicting as that is, it is the greatest repertoire that has been written by so many composers and we are very looking forward to presenting it to this great audience. However, this duet with the piano and violin is like a dance between a woman and a man. The violin has the female role, while the piano leads because violin has a horizontal line, as a mono voice most of the time, but the piano has vertical harmony and that’s why it leads. The violin rhymes and shines like the cherry on top of the cake. But without the grand foundation, without this vertical that the piano provides, the violin cannot be at its best. Without a great duo partnership, we can’t realise the best of the

What is important for a musician is that you need to have such a small ego. Just big enough that you can go on stage and fit and go through the concert score. That’s why Simon is a great soloist; he brings so much to the realisation of the score. How does a world-class musician relax without music? Family, for me, is the greatest source of inspiration. That’s why I relax with my kids. What has been the biggest challenge of your career to date? There are always challenges, big or small. I think that learning something new is always the greatest inspiration, but also a great challenge. It is like taking on a new profession, starting to conduct, starting to play the viola. I experimented with baroque violin and even played an electric violin on a few occasions, while I

even studied to dance tango for one project. All the challenges come along the way when you want to do something new. When I started teaching, it was like a new world to me at the beginning. I didn’t have to play anymore, but I had to explain my vision. So, these are the challenges and I’m sure that more will come. How do you judge success; and how do you protect yourself against that notorious trap known as “hubris” in English, or “gordost” in Serbian and Russian, against which no human being is immune? I think that music is so challenging, and life itself, that there is no space for this, no time to think about this, because most of the time you are so busy. What is important for a musician is that you need to have such a small ego. Just big enough that you can go on stage and fit and go through the concert. What advice would you offer a young musician emerging in these perilous and peculiar times? If you love music, do everything you need to succeed. If you want to have a success, if you have talent and you have love and passion for music, then I think God will lead you where you need to be.

July

CHILL OUT Cambridges To Move Family Into Adelaide Cottage In Windsor Prince William and Kate Middleton will move their family into a fourbedroomed home on the Windsor estate this summer. The Duke and Duchess of Cambridge, are reportedly set to uproot their family from Kensington, west London, to Adelaide Cottage in Berkshire in order to be closer to the Queen. Re-erected in 1831, the Cambridge’s new Grade II-listed retreat is just a short walk from St George’s Chapel and Windsor Castle and sits proudly on the 655-acre royal estate in Berkshire. Sources close to the family suggest the Cambridges were keen to be closer to the Queen, 96, who has suffered episodic mobility issues in recent months, and also secure a good school for their three children.

Microsoft Retires Internet Explorer After 27 Years Microsoft is finally retiring the consumer version of Internet Explorer. It announced the plan last year, making Internet Explorer 11 its final version. Internet Explorer debuted on Windows desktop computers in 1995 and by 2004, had cornered 95% of the market. But now, Google Chrome, Apple’s Safari, and Mozilla Firefox are dominant. Users wanting to stick with Microsoft are being directed to Microsoft Edge, launched in 2015, alongside Windows 10. Internet Explorer’s popularity was dented by the launch of faster browsers such as Chrome and Firefox, as users seized on new applications to navigate platforms including Google Search, Facebook, and YouTube.

Netflix Planning Reality Show With $4.56 Million Cash Prize The streaming platform has approved a reality TV series called “Squid Game: The Challenge,” which will pit 456 contestants against each other in a series of games inspired by the hit show. Up for grabs is a $4.56 million reward — which Netflix says is the largest cash prize in reality TV history. “The stakes are high, but in this game, the worst fate is going home empty-handed,” the company said in a statement Tuesday. Netflix has opened casting for the show to English-language speakers around the world. Filming will take place in the U.K. The series is being co-produced by production firms Studio Lambert and The Garden, which is part of British broadcaster ITV.

July

More Than 4 Million People In The UK ‘Hacked’ Neighbour’s WiFi A whopping 4.3 million people in the UK have ‘hacked’ a neighbour’s WiFi, a new report reveals. Paris-based satellite broadband provider Konnect has surveyed 2,000 UK residents about how far they’ve gone in the bid to stay connected. The average time perpetrators spent using a neighbour’s internet without permission was 52 days, although one in 20 people remained logged on for over a year. Brits use someone else’s WiFi connection without permission – commonly known as ‘piggybacking’ – when their own internet has gone down, or sometimes even when their internet is still working in an effort to avoid fees. Among the 4.3 million total who had hacked a neighbour’s WiFi, 1.6 million had held onto passwords after getting permission on a previous occasion.

Bulldogs Could Be Banned The breeding of bulldogs could be banned unless their shape is altered to prevent a host of debilitating conditions — after a study found they are the unhealthiest dog in Britain. Vets are urging people not to buy one, despite their soaring popularity over the past decade, and animal lovers have also been told not to boast about the dog on social media by posting and liking pictures. Royal Veterinary College experts said urgent action was needed to reshape the breed back to how it looked in the 1800s and stop the UK joining the list of countries where the dog is banned. They also want people to stop buying French bulldogs and pugs until the breeding issues in those dogs are addressed. The English bulldog was originally developed as a muscular and athletic dog.

Andrew Lloyd Webber Booed At The Show He Produced A video has emerged of Andrew Lloyd Webber being booed while a letter was read out on his behalf during the final performance of Cinderella. The theatre impresario, 74, did not attend the closing show at the Gillian Lynne Theatre in London’s West End. Instead, director Laurence Connor appeared on stage alongside the cast to deliver a message from the composer about its premature end - and was roundly booed. After a backlash at the letter’s content, specifically where he referred to a ‘costly mistake’, Lloyd Webber said he was ‘devastated’ at a perceived misinterpretation. It comes after he was criticized when the show’s cast and crew were gathered for a meeting at which they were told that the show was going to close after racking up ‘unsustainable’ losses. Now, he has issued a statement saying: ‘I am devastated to have been reported to have said that my beloved production of Cinderella was a “costly mistake”.

July

Summer Time

15 8

2 14 7

July

30 26 16 22

27 28 31 19

July

Culture

calendar Andrea Bocelli - Belgrade River Fest 22 July – Belgrade Waterfront

Andrea Bocelli will perform on 22 July 2022 in Belgrade as part of the first edition of the Belgrade River Fest. The famous tenor will perform in a specially built open-air concert hall on the banks of the Sava River. Andrea Bocelli arrives in Belgrade after nine years. Recognized worldwide as the most beloved tenor, with over ninety million records sold, he pushes the boundaries of the world music scene with each new performance. Musically gifted from birth, Andrea Bocelli is one of the most celebrated singers in modern history, performing at major international events including the Olympic Games and the World Cup, as well as his own sell-out arena shows around the world. He has a Golden Globe, seven Classical BRITs and seven World Music Awards under his belt, plus a star on the Hollywood Walk of Fame.

Snarky Puppy

3 July – Bitefartcafe Summer Stage The four-time Grammy Award winners, an acclaimed fusioninfluenced jam band, Snarky Puppy have built a loyal following with their adventurous blend of jazz, rock, and funk. Snarky Puppy seamlessly fuses a deep knowledge and respect for musical tradition with sonic and conceptual innovation in a way that is able to reach the most critical- or most carefreeaudience. The convergence of musicians from white and black America (who also perform regularly with artists like Erykah Badu, Snoop Dogg, Kirk Franklin, Justin Timberlake, Roy Hargrove, and Marcus Miller among others), occurred

Wardruna

11 July – Tašmajdan The Norwegian music constellation Wardruna is a group renowned for their innovative and genre-creating renditions of older Nordic traditions.

while the band was in its adolescence at the University of North Texas, has naturally established a system of balance that instantly draws listeners to the music- raw funk and sensitive dynamics, relentless pocket and lyrical melodicism, lush harmony and soulful simplicity, and most importantly, a delicate mixture of composition and improvisation.

The authenticity of their performance, the epic visual landscapes, and symbolic animals evoked by the music and lyrics have been showcased in several jaw-dropping videos - some reaching viewers in the millions. Starting with the starkly beautiful, minimalist, and arguably most political piece, “Grá” - an ode to the wolf, and a reminder that humans and creatures have existed side-by-side in a mutual, though wary, relationship.

July

SEE MORE: WWW.CORDMAGAZINE.COM

RECOMMENDS

Aiming High

The Beatles: Get Back

Masayoshi Son is the most powerful person in Silicon Valley. As CEO and founder of the Japanese investment firm, SoftBank Group, ‘Masa’ has invested in some of the most exciting and influential tech companies in recent memory - Uber, WeWork, ByteDance, and many others. Prior to that, he was known as one of the first investors in Alibaba and Yahoo! He has an audacious vision for the future and one that is unmatched in the tech industry. Aiming High provides insight into this charismatic and visionary leader.

The book opens in January 1969, the beginning of The Beatles’ last year as a band. The Beatles (The White Album) is at number one in the charts and the foursome gathers in London for a new project. Over 21 days, first at Twickenham Film Studios and then at their own brand-new Apple Studios, with cameras and tape recorders documenting every day’s work and conversations, the band rehearse a huge number of songs, culminating in their final concert, which famously takes place on the rooftop of their own office building, bringing central London to a halt.

Iconotypes: A Compendium Of Butterflies And Moths

It’s In His Kiss: Bridgerton (Bridgertons Book 7)

Jones’s Icones contains finely delineated paintings of more than 760 species of Lepidoptera, many of which it described for the first time, marking a critical moment in the study of natural history. With Iconotypes Jones’s seminal work is published for the first time, accompanied by expert commentary and contextual essays, and featuring annotated maps showing the location of each species.

Gareth St. Clair is in a bind. His father, who detests him, is determined to beggar the St. Clair estates and ruin his inheritance. Gareth’s sole bequest is an old family diary, which may or may not contain the secrets of his past . . . and the key to his future. The problem is – it’s written in Italian, of which Gareth speaks not a word. All the ton agreed: there was no one quite like Hyacinth Bridgerton. She’s fiendishly smart, devilishly outspoken, and according to Gareth, probably best in small doses. But there’s something about her – something charming and vexing – that grabs him and won’t quite let go...

Midsummer Mysteries

Ten Survival Skills for a World in Flux

An all-new collection of summer-themed mysteries from the master of the genre, just in time for the holiday season. Summertime - as the temperature rises, so does the potential for evil. From Cornwall to the French Riviera, whether against a background of Delphic temples or English country houses, Agatha Christie’s most famous characters solve even the most devilish of conundrums as the summer sun beats down. Pull up a deckchair and enjoy plot twists and red herrings galore from the bestselling fiction writer of all time.

We all know there are major, overlapping, global crises ahead of humanity: climate change, mass migration, new warfare, big tech, further pandemics, and authoritarian capitalism. Rather than be daunted, this book charts a way that we can respond. With expertise from his work at the highest levels of international politics, education, activism, and business, Tom Fletcher offers a practical manifesto that can help us transform the way we learn, live, and work together.

Atsuo Inoue 2186 rsd

Richard I. Vane-Wright 8423 rsd

Agatha Christie 1943 rsd

John Harris 5183 rsd

Julia Quinn 1214 rsd

Tom Fletcher 1943 rsd

July

&FACES PLACES 02/06/2022

National Day Of Italy Celebrated The embassy of Italy in Serbia hosted an event marking Republic Day, the country’s national day. Ambassador Carlo Lo Cascio greeted guests and held his last speech as Ambassador to Serbia. On that occasion, Ambassador Lo Cascio also said “We live in a very complex international situation. After the great pandemic crisis, Europe is going through the most difficult moment in its recent history, while the brutal aggression against Ukraine leaves very serious consequences globally.”

07/06/2022

National Day Of Sweden Marked The Embassy of Sweden in Serbia celebrated the national holiday, National Day, with a solemn reception in Belgrade. The guests were welcomed by H.E. Anika Ben David, Ambassador of Sweden to Serbia, who greeted all present in a speech, emphasizing the support that Sweden provides to the development of Serbia. She stated that Sweden is Serbia’s largest donor in the field of environment and that it is cooperating with the Government of Serbia and the EU in accelerating reforms within the EU Green Agenda, in order to prepare Serbia for EU membership.

July

SEE MORE: WWW.CORDMAGAZINE.COM

9/06/2022

American Chamber of Commerce: 20 years in Serbia AmCham celebrated the twentieth anniversary of this business association. On this occasion, Stefan Lazarević, President of the Board of AmCham, said “AmCham brings together more than 210 American, international and domestic companies that have invested over fourteen billion euros in Serbia and that employ over 100,000 Serbian citizens. Our goal is to improve the business climate through a partnership with the Government of Serbia, to promote the best American and European business practices and values, as well as to continuously enable the professional development of members, and improve education according to the needs of the business community.” 14/06/2022

National Day Of Portugal Marked On the 14th of June, the Portuguese Embassy in Belgrade celebrated the Day of Portugal, Camões, and the Portuguese Communities, with the presence of more than two hundred guests, including Serbian authorities, members of the diplomatic corps, and the Portuguese community in Serbia. Ambassador of Portugal to Serbia H.E. Virginia Pina greeted guests with a welcome speech, in which she accentuated good bilateral relations between Portugal and Serbia.

July

&FACES PLACES 16/06/2022

Farewell Party Honoring Ambassador Of Belgium Belgian-Serbian Chamber of Commerce (BSBA) hosted a farewell party in honor of the ambassador of Belgium to Serbia H.E. Koenraad Georges L. Adam. Members of the BSBA gathered at the garden of the IN Hotel.

20/06/2022

International Day Of Yoga Marked At Kalemegdan Ambassador of India H.E. Sanjiv Kohli sent a message at the marking of the 8th International Day of Yoga that “yoga is the golden key that unlocks the door to peace, tranquillity and joy”, after which a group yoga class started at Kalemegdan. “People say that the body lies in the past, that our thoughts are in the future, but that we are in the present only when we do yoga,” Kohli said. He called on people to join yoga classes at 17 locations in 16 towns across Serbia, marking the International Day of Yoga this year, with a message that “we give strength to each other”.

July

SEE MORE: WWW.CORDMAGAZINE.COM

21/06/2022

AHK Sommerfest Held After almost three years, AHK (German-Serbian Chamber of Commerce) had the opportunity to again host its traditional Summer party, live. Together with the guests AHK welcomed its new Executive Director of Mr. Alexander Markus, who has taken over his duties from Mr. Rabbow. AHK thanked Mr. Rabbow for his engagement in the last six months as the interim director of the Chamber and wished him all the best in the future.

22/06/2022

National Day Of Slovenia Marked The Embassy of Slovenia in Serbia, headed by Ambassador H.E. Damjan Bergant, hosted a reception on the occasion of Statehood Day of the Republic of Slovenia at the Kalemegdan terrace in Belgrade. The celebration was attended by Serbian Government officials, representatives of the political and diplomatic corps, church dignitaries, as well as guests from the Serbian public and cultural life.

July

&FACES PLACES

SEE MORE: WWW.CORDMAGAZINE.COM

23/06/2022

FIC Networking Event The Foreign Investors Council Serbia (FIC), together with its distinguished member CEO of Marsh Adria Ms. Liliana Lapadatoni, opened the cocktail season and organized the first FIC networking cocktail in the year 2022. This year FIC is celebrating its 20th anniversary of operations in Serbia, and the networking cocktail was marking this important occasion. The event was attended by numerous members of the Council who enjoyed the relaxed atmosphere of the Square Nine Hotel.

24/06/2022

St. John The Baptist Day Marked This year’s occasion was supposed to celebrate the excellent bilateral relations with the representatives of the Government of Serbia, confirmed by the recent signing of the Postal Agreement between the Republic of Serbia and the Grand Magistry. Unexpectedly, the Order of Malta was struck by the sudden death of the Lieutenant of the Grand Master, Fra’ Marco Luzzago. On 24th June, guests gathered for a moment of remembrance with a few representatives of Serbian institutions, a few diplomats, a few journalists, and a few friends of the Sovereign Order of Malta.

July

43¤

Canada 2022

CONTENTS

05 06

CARING COUNTS COMMENT

WE URGE RESPONSIBLE BUSINESS CONDUCT ZORANA MIHAJLOVIĆ PH.D., SERBIAN DEPUTY PRIME MINISTER AND MINISTER OF MINING & ENERGY

ENCOURAGING STRIDES SHERI MEYERHOFFER, CANADIAN OMBUDSPERSON FOR RESPONSIBLE ENTERPRISE

NO PROGRESS WITHOUT GEOLOGY DUŠAN SIMIĆ, JANTAR GRUPA FOUNDER AND CEO

LEADING BY EXAMPLE H.E. GILES NORMAN, AMBASSADOR OF CANADA TO SERBIA

THRIVING AND GROWING TOGETHER WITH THE LOCAL COMMUNITIES DUNDEE PRECIOUS METALS

RESPONSIBLE TO SOCIETY, PEOPLE, AND PLANET MIRJANA DONČIĆ BEATON, MANAGING DIRECTOR OF THE CANADIAN-SERBIAN BUSINESS ASSOCIATION

GENDER EQUALITY IS THE FOUNDATION OF RESPONSIBLE BUSINESS VIOLETA JOVANOVIĆ, EXECUTIVE DIRECTOR, NALED

STEPPING IT UP CORPORATE RESPONSIBILITY AND RESPECT TO HUMAN RIGHTS LUC ZANDVLIET, DIRECTOR , TRIPLE R ALLIANCE

FOCUSED ON PEOPLE AND THE PLANET APATIN BREWERY

MUNDORO FOLLOWS WORLD BEST PRACTICES TEO DECHEV, CHIEF EXECUTIVE OFFICER, PRESIDENT & DIRECTOR OF MUNDORO

FACT AND FIGURES

CANADA’S STRATEGY FOR THE FUTURE (2022 TO 2027) RESPONSIBLE BUSINESS CONDUCT ABROAD

IMPRESSUM EDITOR IN CHIEF Neda Lukić n.lukic@aim.rs ART DIRECTOR Branislav Ninković b.ninkovic@aim.rs PHOTOS Zoran Petrović COPY EDITOR Mark Pullen mrpeditorial@mail.com

Canada 2022

PROJECT MANAGERS Biljana Dević b.devic@aim.rs Vesna Vukajlović v.vukajlovic@aim.rs Mihailo Čučković m.cuckovic@aim.rs OFFICE MANAGER Svetlana Petrović s.petrovic@aim.rs FINANCE Dragana Skrobonja finance@aim.rs

EXECUTIVE DIRECTOR Maja Vidaković m.vidakovic@aim.rs PUBLISHER Ivan Novčić i.novcic@aim.rs DIRECTOR Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com

PRINTING Rotografika d.o.o. Segedinski put 72, Subotica CANADA 2022 Published by: alliance international media Prote Mateje 52, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 E-mail: office@aim.rs; office@cordmagazine.com

www.aim.rs; www.cordmagazine.com No 41 ISSN: 2560-4465 All rights reserved alliance international media 2022 The views expressed in this publication are those of the presenter; they do not necessary reflect the view of publications published by alliance international media THIS PUBLICATION IS FREE OF CHARGE

COMMENT

CARING COUNTS

Companies must know—and show—that they respect human rights in all their operations. With the new Responsible Business Conduct Strategy, the Canadian Government is calling on all Canadian companies working abroad to abide by these rules

ver since the 1976 adoption of the OECD Guidelines for Multinational Enterprises, continuous progress has been seen on raising the importance of human rights in the international business sector, but also on the adoption of relevant national and international policies and standards that enforce respect for those rights. Despite this topic having been strongly recognized and prioritized by governments and corporations around the world, we have also witnessed unfortunate events that serve to remind us that the process of improving respect for human rights is never-ending. One such unfortunate event was the April 2013 collapse of the Rana Plaza building in Bangladesh that killed 1,132 people and injured more than 2,500 workers employed in operations serving various global fashion companies. The tragedy became a symbol not only of the impact of the fashion industry, but of the carelessness of businesses seeking to turn a profit at the expense of workers’ human rights. The Rana Plaza disaster also led to progress – supported by the International Labor Organization – on labor law reform, labor inspections, workplace safety, and injury compensation for workers and their families. Furthermore, it reminded all stakeholders that there was a need to establish a new, international, legally-binding standard on human rights due diligence in global supply chains, based on the UN Guiding Principles on Business and Human Rights. In the absence of such a document, the UN Guiding Principles are still the most important document in that area. The Guiding Principles closely connect human rights and the responsibilities of businesses, and define key elements of human rights due diligence. Under the Principles, businesses should ensure that they respect human rights in their own ac-

In today’s world, responsible companies use the Guiding Principles to differentiate themselves from their competitors, to improve their branding and build better relations and trust in the countries and communities in which they operate tivities, but also in their business relations with their suppliers. The Guiding Principles were proposed by UN Special Representative on Business and Human Rights John Ruggie, and endorsed by the UN Human Rights Council in June 2011. The same resolution saw the UN Human Rights Council establish the UN Working Group on Business and Human Rights. Following the endorsement, this UN working group, consisting of five independent experts, was appointed to guide the dissemination and implementation of the UN Guiding Principles. The UN Framework recognizes the duty of states (under international human rights law) to protect everyone within their territory and/or jurisdiction from human rights violations committed by business enterprises. As a result, the states are obliged to have effective laws and regulations in place to prevent and address

business-related human rights abuses, and ensure access to effective resolution for those whose rights have been abused. Since then, many countries, Canada included, have exerted considerable efforts to promote responsible business conduct and develop tools to help companies achieve these standards. In the previous stages, these rules focused on companies that work outside Canada in the garment, mining, and oil and gas sectors, but in the new document - the Responsible Business Conduct Strategy - the Canadian Government has broadened the scope of intervention to all companies. As stated, businesses themselves have a responsibility to respect human rights wherever they operate and whatever their size or industry.This means that they have to know either the actual or potential impacts of their operations, and to react preemptively or address existing adverse impacts.

Canada 2022

INTERVIEW ZORANA MIHAJLOVIĆ PH.D., SERBIAN DEPUTY PRIME MINISTER AND MINISTER OF MINING & ENERGY

WE URGE RESPONSIBLE

BUSINESS CONDUCT

If we want Serbia to have modern, green mining, we must have the highest standards in the field of environmental protection, and that’s something we’ll demand of all mining companies and for all new projects. In accordance with that, we pay great attention not only to investments, but also to the values that these companies bring to our market

n order for us to create the kind of society we want, it’s necessary for us to have both economic growth and respect for all standards that contribute to improving quality of life, from environmental protection to the promotion of labor rights, inclusiveness and equality, says Serbian Deputy Prime Minister and Minister of Mining and Energy Zorana Mihajlović Ph.D., with whom we discussed how all of that can be achieved in practice.

Canada 2022

We hear very often about how some companies, whether domestic or foreign, endanger the rights of their workers. What does the Serbian government do to promote good employers and sanction those that violate workers’ human rights? - First and foremost, respect for workers’ rights isn’t a matter of the good will of employers, rather adherence to the law and its application. It is possible, however, to do some

additional things, either through initiatives or certain regulations that encourage companies to take better care of their attitude towards employees and thereby raise standards and promote good practice as a society. One example of this is the so-called white and black list of works contractors, which we introduced during my time heading the Ministry of Construction, Transport and Infrastructure. That list ranks construction

STANDARDS

VALUES

PRACTICES

Mining isn’t merely the exploitation and processing of mineral ores… That’s why projects in the mining sector can only be realized if they’ve first satisfied all environmental protection requirements

For us, it is very important that the investors that come to Serbia not only bring capital and technology, but also contribute to improving practices with regard to environmental protection and inclusivity

The increased presence of Canadian companies in Serbia would provide more opportunities to transfer good business practices to ur country

companies according to criteria like the number of employees on fixed-term contracts, the number of serious and minor injuries sustained at work, regular payments of taxes and contributions, instances of undeclared work, with the aim of clearly identifying companies that violate regulations and giving a preference in the awarding of works to those that act responsibly towards employees and respect deadlines. At the suggestion of the ministry that I then headed, the Government of Serbia adopted a finding in 2017 that recommended state institutions confirm the rating of companies on the black and white list, via public procurement, prior to making a decision on the awarding of works, precisely with the aim of giving an advantage to companies that regularly pay their taxes and contributions, take care of the safety of workers and respect contractual obligations, all of which are criteria that ensure they’re included on the white list. Of course, such a model can also be applied in other areas, as long as there are clear criteria and a willingness to give a preference to responsible companies. We often see a lack of responsible business conduct when it comes to the attitude towards women. To what extent do existing documents and control instruments provide a response to these issues? - Gender equality must be achieved in all areas of social, economic and political life, in order for us to achieve progress in society. The new legislative and strategic framework – primarily the umbrella Law on Gender Equality and the Strategy for the Promotion of Gender Equality – introduce an array of regulations aimed at advancing equality between women and men in many areas, which also includes labor and employment. This includes, among other things, reducing the pay gap between women and men in the labor market (the pay gap stood at 8.8% in 2018), increasing the participation of women in high-paying jobs, establishing systemic support for launching,

developing and growing businesses that are majority-owned by women, boosting support for innovative programs and services that aim to encourage women in the labor market. Statistics show that women account for more than half of graduate students in Serbia, while 57% of those who’ve completed doctoral studies are women and 43% are men. Taking this data into consideration, a

Respect for workers’ rights isn’t a matter of the good will of employers, rather adherence to the law and its application… An example of this is the so-called white and black list of works contractors, which we introduced during my time heading the Ministry of Construction, Transport and Infrastructure question arises as to how women find it tougher to secure employment in the highest positions and how it’s possible that decision-making positions are most often held by men? There are many factors contributing to this situation and maintaining the “glass ceiling” effect, such as – among other things – gender stereotypes and prejudice, the historically unequal distribution of power between men and women, unpaid housework and gender roles that most often identify women as housewives and mothers whose place is in the home. Five years ago, with the aim of promoting responsible business, the Coordination Body for Gender Equality and the Association of Business Women of Serbia jointly established an award for the most gender-sensitive company, in order for gender principles to be included in all spheres of life, including the business world. Companies that implement a CSR strategy that’s guided by

gender equality principles, that treat all employees fairly, respect and protect human rights and non-discrimination, that promote the education, training and professional development of women in their operations and that endeavor to ensure the health, security and equality of all workers while publicly advocating for equality and including women’s companies in their supply chains are certainly companies that contribute, with their example, to the creation of a new, gender-sensitive climate in Serbia. We have a great drive to develop mining in Serbia, but the public is suspicious over whether the companies involved in these operations will behave in accordance with best practices. What mechanisms are available to the Government of Serbia when it comes to ensuring companies comply with the standards and obligations that they accepted contractually? - When the Ministry of Mining and Energy was formed in October 2020, we set the priority, first and foremost, not only for mining operations to comply with all legal regulations, but also for us to work on the respecting and raising of standards related to environmental protection and the relationship companies have with the communities living in the places where they conduct mining operations. This all requires the state’s proactive approach, from the advancing of regulations – which we achieved through the adoption of the Law on Amendments to the Law on Mining and Geological Exploration – to the reinforcing of inspection oversight. With the adopting of this law, we wanted to create the necessary conditions for the more efficient and sustainable management of Serbia’s mineral deposits and other geological resources, and to increase investments in geological exploration and mining, given that the value of Serbia’s confirmed mineral reserves is more than 250 billion dollars. However, mining isn’t merely the exploitation and processing of mineral ores, but rather

Canada 2022

INTERVIEW also implies caring for the people who live close to the mine and taking care of nature. That’s why projects in the mining sector can only be realized if they’ve first satisfied all environmental protection requirements. Mining needs to develop itself and contribute to overall economic growth, but that must be done in a sustainable way. If we want Serbia to have modern, green mining, we must have the highest environmental protection standards, and that’s something we’ll demand of all mining companies and for all new projects. We are, of course, also aware of the multitude of half-truths and complete lies being propagated when it comes to mining projects, which only cause harm to everyone, and we combat that by informing citizens and being fully transparent in everything we do. What is your greatest inspiration and which of the practices included in the Canadian strategy on responsible business conduct would you like to see implemented in Serbia? - Primarily, that would be the expectation that companies – regardless of ownership structure, size, and sector of operations – can contribute to sustainable development and serve as an example to their partners and suppliers, thus contributing to raising standards throughout the entire supply chain. For us, it is very important that the investors that come to Serbia not only bring capital and technology, but also contribute to improving practices with regard to environmental protection, inclusivity, promoting gender equality and human rights, and contributing to the fight against all forms of discrimination in our society. I also believe that the influence of Canadian companies, as well as the promoting of the values promulgated through the Canadian Strategy for Responsible Business Conduct, would be even more significant with the greater presence of Canadian companies in Serbia and more investors from this country. The highest level of bilateral trade was achieved last year, but space certainly exists to advance our economic cooperation further and attract more investment from Canada. The increased presence of Canadian companies in Serbia would certainly lead to more opportunities to transfer good business practices to Serbia.

Canada 2022

Gender equality must be achieved in all areas of social, economic and political life, in order for us to achieve progress in society To what extent are companies’ CSR policies integrated in the sector that’s under your direct jurisdiction? - Serbia is a country that’s on the path to achieving EU membership, and the entire process of European integration should ensure the raising of standards in all areas. The opening of Cluster 4 - Green Agenda and sustainable connectivity – is an acknowledgement of the results achieved to date, but also an obligation for us to reach the standards required of us in the coming period. Serbia is undergoing the energy transition process that will change many things, especially in the energy sector, but also in relations towards the environment. No project can be implemented in the field of energy without first complying with all environmental protection regulations and standards. Green transition is a process that impacts all of us, and we will all have to change our attitude towards energy – from how we access

it, to how we consume it in our households, transport, companies, and production processes. Through the laws that we’ve passed and our program of subsidies for increasing energy efficiency in households and installing solar panels, the Ministry of Energy and Mining has made it possible for citizens to become actors in green transition, but it is equally important for business to be part of our route to decarbonization, and for the green agenda to be included in companies’ strategies and operations. Attitudes towards the environment, contributing to the fight against climate change, reducing carbon emissions and taking care to ensure the rational use of energy are factors that are being seen around the world as ways for companies to set themselves apart from their competition, demonstrate their awareness and responsibility, and thus gain the trust of customers and service users. It is my belief that this will increasingly become part of the practice of companies in Serbia, especially in the energy transition process, which is a generational issue that we should all contribute to in order for us to become an energy secure country, for us to have enough energy, and to preserve a healthy environment – not only today, but also for future generations.

Canada 2022

INTERVIEW H.E. GILES NORMAN,AMBASSADOR OF CANADA TO SERBIA

LEADING BY EXAMPLE The Government of Canada is adamant that the protection of human rights, both in Canada and globally, has to be high on the agenda of companies, and that’s why it encourages Canadian businesses to approach their international projects by placing human rights at the very heart of their endeavors

he Government of Canada has insisted, and will always insist, on the protection of human rights in Canada and around the world. We continue to encourage Canadian businesses to develop their international projects by placing human rights at the very heart of their projects, thus building Canada’s reputation as the global leader of responsible business conduct ~ says Canadian Ambassador to Serbia Giles Norman at the start of our interview, which is focused on the values underpinning the Responsible Business Conduct Strategy adopted by

Canada 2022

the Government of Canada in April 2022. The Responsible Business Conduct Strategy (RBC) represents continuity with some shifts, including the introduction of new tools and requirements to help Canadian companies achieve leading responsible business practices, greater alignment with the wider priorities of the Government of Canada, and the establishment of an action plan and a monitoring and evaluation framework, explains our interlocutor. As part of the Strategy Action Plan, the Government of Canada will develop an RBC due diligence standard that will complement

existing international and Canadian reporting frameworks, and provide a common set of indicators for Canadian companies to account for how they address actual and potential negative impacts on their business activities, explains the ambassador. “We will also develop interactive tools to provide companies with information on social and environmental risks related to specific markets and sectors. These tools will aim to increase awareness among Canadian companies regarding the risks they may face in the international markets. “Coupled with the control mechanisms

INCLUSIVENESS

COMMITMENT

STANDARDS

The Responsible Business Conduct Strategy is central to Canada’s trade diversification strategy, inclusive trade, and sustainable and inclusive economic growth

The Canadian Government is committed to enacting legislation to eradicate forced labor from Canadian supply chains and prevent human rights abuses

The Government of Canada, and our industry as a whole, encourage Canadian mining companies to run their international projects as they do in Canada

developed by the Government of Canada, such as the Canadian Ombudsperson for Responsible Enterprises (CORE) and Canada’s National Contact Point (NCP) for RBC under the OECD, we continue to encourage businesses to conduct their international activities in the “Canadian way”,” concludes our interlocutor.

and share our beliefs and commitment with other countries. The Extractive Sector Transparency Measures Act (ESTMA) came into force in 2015 and helps the Government of Canada deter corruption in the extractive sector. Amendments to the Customs Tariff made in July 2020 prohibited the importation of goods that are mined, manufactured or produced wholly or in part by forced labor. In addition, the Government is committed

- Canada offers three means of support to our businesses in order to help them incorporate, improve and/or implement RBC standards in their operations. Firstly, the government of Canada aims to introduce new tools to help companies better understand and mitigate risks, by providing clear guidance to businesses on how to conduct RBC due diligence and help them de-risk their international business activities, including in their supply chains. This will be especially important for SMEs, which comprise about 99.8% of Canadian companies and account for 55% of Canada’s GDP and 41% of its goods exports. Secondly, to ensure that Canadian businesses requesting support from the Government of Canada comply with the RBC expectations, they will be obliged to complete the Digital RBC Attestation. Through the Digital RBC Attestation, companies will acknowledge the importance of RBC, including adherence to Canadian laws and other international legal standards and norms, primarily with respect to human rights and the environment. It is not enough to set up the RBC legislative and institutional framework and ensure that businesses and governments adhere to those standards. We cannot guarantee that mistakes won’t be made, that incidents won’t occur. Canada has established two important remedy and dispute resolution mechanisms that provide accessible, lowcost and constructive dispute resolutions. I have already mentioned Canada’s NCP for RBC under the OECD, which is mandated to promote the OECD Guidelines, respond to enquiries and offer facilitated dialogue and mediation to all sectors on a wide range of issues related to human rights, labor, the environment and bribery. In April 2018, the Government of Canada announced the establishment of the Canadian Ombudsperson for Responsible Enterprise (CORE), which is mandated, amongst the other responsibilities, to review allegations of human rights abuses arising from the operations of Cana-

What values does “doing business the Canadian way” entail? - Canada’s global reputation as RBC leader comes from our country’s commitment to doing things in responsible ways, contributing to more sustainable growth and building a better future for all. It means respecting human rights, protecting the environment, advocatingforgenderequalityandcombating discrimination while furthering diversity and inclusion. It means prioritizing the interest of the people and protection of the environment in your everyday activities, no matter the costs of such an approach, because our failure to act responsibly inevitably disturbs the trust that societies have in the government and businesses. Canadian Prime Minister Justin Trudeau once said: “Openness, respect, integrity – these are principles that need to underpin pretty much every other decision that you make” and that is the essence of “doing things the Canadian way”. How have responsible business practices evolved over time, from the government’s perspective? - RBC is central to Canada’s trade diversification strategy, inclusive trade and sustainable and inclusive economic growth. Throughout the past 10 years and more, the Canadian legal environment has evolved to ensure greater commitment to RBC. The Strategy relies on the previous five-year document that was adopted by Canada in 2009 and 2014. But, both in Canada and internationally, our government has developed other policies, standards and institutions to build the RBC framework

Canada’s global reputation as RBC leader comes from our country’s commitment to doing things in responsible ways. That means respecting human rights, protecting the environment, advocating for gender equality and combating discrimination while furthering diversity and inclusion to enacting legislation to eradicate forced labor from Canadian supply chains and ensure that Canadian businesses operating abroad do not contribute to human rights abuses. Canada has ratified several international treaties and adheres to various guidelines that promote RBC, including the UN Principles on Business and Human Rights, and the OECD Guidelines on Multinational Enterprises. In 2000, Canada established the National Contact Point for RBC under the OECD, as a tool to promote international RBC standards, but also to offer a mechanism for addressing grievances to those who feel they have been adversely affected by the operations of Canadian companies. What kind of support does the Canadian state offer businesses to help them navigate ethical and environment standards?

Canada 2022

INTERVIEW

dian companies abroad in the mining, oil and gas and garment sectors. I’m glad that the current ombudsperson, Sheri Meyehoffer, will also have an opportunity to present the work of her office in this special edition. How well do business goals aimed at maximizing profit go hand-in-hand with these standards, which often impose additional costs and investments? - Building trust is key to any successful relationship, be that in business or other segments of our lives. To be able to gain trust, people and businesses need to understand the rights of societies and respect them when conducting their activities. By neglecting them, businesses increasingly run the risk of being unable to develop or start new partnerships or enter new markets. They inevitably lose trust. Therefore, in the short-term, businesses may consider that time and money invested in understanding and integrating RBC in their activities will not justify the (poten-

Canada 2022

By leading digitalization in the RBC sector, our government can ensure that companies conduct their operations “in the Canadian way”, both in Canada and abroad tial) profit reduction. However, companies should really consider these costs as an investment in their future, since modern societies prioritize human rights over unsustainable economic development. Very soon businesses will have an imperative to integrate RBC into their operations if they want to remain competitive in the international markets. Canada is recognized globally for the size and importance of its mining industry, which has long been in the spotlight for its negative impact on the environment and local communities. How does the RBC Strategy and/or other Canadian developed

or supported RBC standards hold Canadian companies accountable in their projects, both in Canada and overseas? - Canada has a long history in mining. From the 19th century onwards, mining has been one of the key industries of Canada’s settlement and development, starting from early operations in Quebec, to modern mines in the Arctic circle. The mining industry today provides a 5% contribution to our GDP, while directly and indirectly employing more than 600,000 people. Global society is striving for a smart, clean and sustainable future based on a digitalized economy, renewable energy sources and decarbonization. Such a future will rely on the Internet of Things, wind and solar energy, electric vehicles and battery storage. Critical minerals are key components of these products, thus making mining an intrinsic part of the future we’re striving to create. The world will need more mining, not less. Putting people and the environment first will be an imperative for

the mining industry. This means enhancing the industry’s responsible business conduct. The Government of Canada, and our industry as a whole, encourage Canadian mining companies to run their international projects as they do in Canada. Companies are obliged to respect domestic laws in their countries of operation, but they are also responsible for respecting Canada’s laws and standards. The Mining Association of Canada (MAC) has developed the standard Towards Sustainable Mining (TSM), which provides MAC members with a set of tools and indicators to turn these standards into action on the ground and respect the highest environmental and social commitments. It also enables local communities to gain insight into the operations of these mining companies, including in areas such as community engagement, tailings management and biodiversity. Nine countries, including Australia and Finland, have so far adopted TSM as their local standard, and we hope

it will continue to be promoted around the world by Canadian companies. In order to enhance the control mechanism of an industry that faces major public criticism, the Government of Canada continues to build its own control mechanism. It was in March 2021 that the government launched the work of Canada’s Ombudsperson for Responsible Enterprise (CORE). This institution has a mandate to receive and review complaints of human rights violations lodged by local communities from the jurisdiction of Canadian companies’ operations in the extractive, chemical and textile industries. As a non-judicial mechanism, the CORE can mediate the settlement of a dispute between a local company and Canadian business. How does digitalization help in the process? - Global digitalization is a tool that supports efficient business conduct and enables better time management in our everyday lives.

The Canada RBC Abroad Strategy will offer Canadian businesses interactive tools with information on social and environmental risks related to specific markets and sectors. These tools will aim to increase awareness among Canadian companies of the risks they may face, and help them mitigate risks by incorporating RBC standards into their operations. On the other hand, the CORE mechanism will enable local communities and individuals to protect their human rights, including rights related to environment protection, even if they are distant from Canada’s territory. By using digital tools to report relevant claims, communities and individuals can be sure that the CORE will process their cases and offer mediation in any dispute between a Canadian business and the reporting party. By leading digitalization in the RBC sector, our government can ensure that companies conduct their operations “in the Canadian way”, both in Canada and abroad.

Canada 2022

BUSINESS RESPONSIBLE BUSINESS CONDUCT ABROAD: CANADA’S STRATEGY FOR THE FUTURE (2022 TO 2027)

GUIDING CANADIAN COMPANIES

POSITIVE IMPACT ABROAD Global Affairs Canada, through the Trade Commissioner Service, aims to work with other institutions to support Canadian companies in incorporating responsible business practices abroad

esponsible Business Conduct Abroad: Canada’s Strategy for the Future (2022 to 2027) builds upon two previous strategies, namely Canada’s enhanced Corporate Social Responsibility (CSR) Strategy, “Doing Business the Canadian Way: A Strategy to Advance Corporate Social Responsibility in Canada’s Extractive Sector Abroad”, which was enacted in 2014, and Canada’s first CSR strategy, “Building the Canadian Advantage: A Corporate Social Responsibility Strategy for the Canadian Extractive Sector Abroad,” which was adopted in 2009. The core idea of “Doing Business the Canadian Way” revolves around the values of responsibility, sustainability and building a better future for all. It thus places

Canada 2022

a strong emphasis on respecting human rights, including advancing the rights of under-represented groups, protecting the environment, advocating for gender equality, combatting discrimination and furthering diversity and inclusion. The aim of the Government of Canada is to encourage Canadian companies, both operating at home and abroad, to satisfy high standards of responsible business conduct. Many Canadian businesses are already widely recognized as leaders in responsible business practices that are integrated throughout every facet of their operations. This Strategy envisions governmental support to Canadian companies for starting up, scaling up, and accessing new global markets, by providing them the

tools, guidance, and support necessary to operate according to high ethical and environment standards while remaining competitive. This line of action is consistent with the government’s approach to inclusive trade, and the effort to ensure Canadian companies make a positive impact on the local communities in which they operate, improving the lives and livelihoods of people both at home and abroad. Responsible Business Conduct Abroad: Canada’s Strategy for The Future is a fiveyear strategy (2022–2027) that sets out priorities for the Government of Canada to support Canadian companies that are active abroad. “It recognizes a culture shift, whereby responsible business conduct (RBC) is increasingly seen as central to business success, and it recognizes the role that the Government of Canada, through the Trade Commissioner Service (TCS) and partners, can play in helping Canadian companies achieve world-leading responsible business practices”, says The Honourable Mary Ng, P.C., M.P., Minister of International Trade, Export Promotion, Small Business and Economic Development. This Strategy accordingly provides a framework and new innovative tools, such as digital resources, the development of a standard and a requirement for all TCS clients to complete a Digital RBC Attestation. These efforts will assist all Canadian companies in integrating leading responsible business practices into their operations regardless of their size, sector of industry, or scope of activities. These policies are closely connected to other values embraced by the Government: a rules-based trading system, which recognizes, respects, protects and fulfills the rights of Indigenous peoples, and

children, eradicating poverty, combatting discrimination, promoting gender equality and inclusion and diversity—including digital inclusion. Furthermore, these policies are aligned with the Government of Canada’s Feminist Foreign Policy, including its Feminist International Assistance Policy. At the global level, Canada supports further improvements of the RBC policies through the ratifying of several international treaties and adherence to various guidelines that promote RBC, including the United Nations Guiding Principles on Business and Human Rights (Guiding Principles), the OECD Guidelines on Multinational Enterprises (OECD Guidelines) and, as it relates to respect for and recognition of the human rights of Indigenous Peoples, the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP). Such an approach has important positive effects on Canadian businesses. The first relates to combatting risks. As Canadian companies continue operating abroad and expanding to new markets, they may face increased risks. Integrating RBC helps companies evaluate operations through a broader lens, ultimately enhancing their reputation and competitiveness. The second aims to build resilience, the need for which was emphasized by the Covid-19 pandemic. Specifically, throughout the pandemic, companies with strong responsible business policies and practices were better able to assess their production and supply chain risks, allowing them to address potential problems and have mitigation strategies in place. Equally important are the competitive advantages of RBC that can lead to investment attraction, increased brand value, and customer attraction and retention, as more consumers seek to buy ethically produced goods, and partners (including financial partners) strive to meet Environmental, Social, Governance (ESG) requirements. This can also lead to the creation of greater potential for increased access to capital. Legislative changes reflect these efforts. July 2020 saw the introduction of an amendment to the Customs Tariff prohibiting imports of goods that are mined, manufactured or produced, wholly or in part, by forced labor. In the next step, the

Government is committed to enacting legislation to eradicate forced labor from Canadian supply chains and ensure that Canadian businesses operating abroad do not contribute to human rights abuses. The aforementioned legislative activities were much-needed, as some international jurisdictions introduce mandatory measures related to labor, the environment and due diligence. Canadian companies will consequently also need to comply with these regulations in order to maintain or gain market access.

discretion, in the public interest and in appropriate circumstances—to address corporate criminal wrongdoing. While this strategy continues Canada’s balanced approach to RBC, featuring prevention measures and access to remedies, underpinned by legislation covering critical areas like forced labor, transparency and corruption, there are several strategic shifts from previous strategies: it firstly focuses on RBC actions rather than specific industry sectors (extraction sector

There are three interconnected elements guiding the implementation of the Responsible Business Conduct Abroad Strategy: Building awareness and championing action through the Trade Commissioner Service; increasing uptake of RBC via a focus on due diligence and accountability; strengthening the global RBC ecosystem by contributing to the rulesbased international system Further in the past, several new pieces of legislative have been adopted in support of these causes. The Corruption of Foreign Public Officials Act (CFPOA), passed in 1998, criminalizes bribery of a foreign public official. In September 2018, a Remediation Agreement (RA) regime came into force, which is a tool available to prosecutorial authorities—at their

in particular); it secondly introduces new tools, as well as enhancing existing ones, to help Canadian companies achieve leading responsible business practices; while it thirdly offers broader coherence with the priorities of the Government of Canada and, fourthly, is accompanied by an action plan and associated monitoring and evaluation framework.

Canada 2022

INTERVIEW SHERI MEYERHOFFER, CANADIAN OMBUDSPERSON FOR RESPONSIBLE ENTERPRISE

ENCOURAGING STRIDES We currently have three bills before our Parliament that seek to strengthen due diligence and ensure that human rights are respected throughout Canadian company supply chains. While the proposed legislation is important, Canada has not advanced as much as some other jurisdictions

he Canadian Ombudsperson for Responsible Enterprise (CORE) is a human rights ombuds institution with a mandate to promote respect for human rights and responsible business conduct among Canadian companies operating in the garment, mining and oil/gas sectors outside of Canada. The CORE is a world-first. There are no other offices of its kind, either elsewhere in Canada or around the world. This is how our interlocutor, Sheri Meyerhoffer, Canadian Ombudsperson for Responsible Enterprise, briefly summarizes the uniqueness of her institution. “My office was established to address complaints related to human rights abuses committed by Canadian companies operating abroad in the garment, mining, and oil and gas sectors. It was created out of a commitment to ensure that Canadian companies respect human rights wherever they do business,” say Meyerhoffer, a Canadian lawyer with 17 years of experience in the upstream oil and gas industry, and 13 years of experience in international governance, rule of law and human rights. “My mandate is composed of four main components: Promote, Advise, Review, and Recommend. First, the CORE promotes the implementation of the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. Second, the CORE advises Canadian companies operating abroad in the garment, mining, and oil and gas sectors on best practices related to responsible business conduct. Third, the CORE reviews allegations of human rights abuses arising from Canadian companies’ operations abroad,” says Meyerhoffer, who’s worked in Bhutan, Bolivia, Cuba, China, India, Jamaica, Myanmar, Nepal, Russia, and the U.S.

Canada 2022

COMPLAINTS

WISH

RESPONSIBILITY

At the heart of CORE’s work is our complaints mechanism, through which impacted individuals and groups can submit complaints to the CORE

Mandatory human rights due diligence legislation has already been enacted in the EU. This is something that we would like to see happen in Canada

Good Canadian companies understand the importance of acting responsibly. They know that there is no conflict between running a successful enterprise and respecting human rights

and RBC among Canadian companies operating abroad in the garment, mining and oil/gas sectors.

“The CORE reviews allegations of human rights abuses through our complaints mechanism, through which impacted workers, individuals, and communities can submit complaints to the CORE,” adds our interlocutor. Fourth, concludes Meyerhoffer, the CORE can issue recommendations to the concerned company or the Canadian government following the investigating of complaints and the completion of Ombuds reviews and studies: “These recommendations may be for compensation to remedy the harms caused, or changes to the policies and practices of Canadian companies.” Why were the garment, mining, and oil and gas sectors in particular chosen; and how are specific sectors included or excluded from that list? - The reason for the choice is historical. The CORE is the result of decades of advocacy by civil society organizations, and specifically in response to concern about harm to local populations. Canadian companies – particularly those in the garment, mining, and oil and gas industries – are very active abroad. For example, Canada is home to over half the world’s publicly listed mining and mineral exploration companies. The focus was originally on extractives. However, the Rana Plaza disaster in Bangladesh in 2013, and the fact that some large Canadian garment companies were implicated, led to the garment sector being included in the CORE’s mandate. While the majority of companies are committed to operating responsibly, human rights abuses may result from their operations. Canadian civil society organizations wanted the government to establish a body to monitor companies, provide a mechanism to resolve disputes, and provide remedies for those harmed. There is a possibility that other sectors will be added to the CORE’s mandate, which we would welcome, assuming an expanded

The CORE is a key pillar of the Canadian government’s new Responsible Business Conduct (RBC) strategy mandate comes with the resources needed for effective implementation. The Canadian Government’s latest Responsible Business Conduct Strategy broadens its scope from the extractive industries to encompass all companies. What does that mean from the perspective of your intervention? - The CORE is a key pillar of the Canadian government’s new Responsible Business Conduct (RBC) strategy. We welcome the new strategy’s expanded focus, and we remain committed to working with the Canadian government, Canada’s Trade Commissioner Service, and other Foreign Service personnel to promote human rights

The European Union and certain European countries have been enacting legislative solutions that stipulate adherence to certain rights throughout global value chains. What is the Canadian response to these practices? - The context in Canada is also starting to shift. We have seen, in recent years and even months, growing interest in, and discussion of, legislation that focuses on corporate accountability in Canada, including potential future legislation on human rights due diligence. Currently, we have three bills before our Parliament that seek to strengthen due diligence and ensure that human rights are respected throughout Canadian company supply chains. While the proposed legislation is important, Canada is not currently as far along as other jurisdictions. Mandatory human rights due diligence legislation has already been enacted in France, Germany, Norway, and by the European Union. This is something that we would like to see happen in Canada, and we are encouraged by the strides being made. Most recently, this month (June 2022), the Canadian Minister of Labor, Seamus O’Regan, announced that the government would be supporting Bill S-211, the bill to enact the Fight Against Forced and Child Labor in Supply Chains Act. This act would impose an obligation on certain government institutions and private sector entities to report on measures taken to prevent and reduce the risk or forced labor or child labor being utilized by them or in their supply chains. It would also amend the Customs Tariff to allow for a prohibition on the importation of goods manufactured or produced, in whole or in part, through forced or child labor. We hope to see this bill strengthened, and passed by our government.

Canada 2022

INTERVIEW Other due diligence legislation currently before the Parliament includes Bill C-262, the Corporate Responsibility to Protect Human Rights Act. The act would require businesses to establish processes to prevent, address, and remedy adverse impacts on human rights that occur in relation to their business activities conducted abroad. It would also require businesses to monitor and document the implementation and effectiveness of their due diligence procedures. How do you oversee the conduct of Canadian companies abroad, say in Serbia, for example? - At the heart of CORE’s work is our complaints mechanism, through which impacted individuals and groups can submit complaints to the CORE regarding possible human rights abuses arising from the overseas operations of Canadian companies in our three sectors. If we were to receive a complaint from an impacted individual or community in Serbia, for example, the CORE would review this complaint and determine its admissibility according to our criteria. If admissible, the CORE would try to bring the complainant together with the Canadian company to seek early resolution. If that were not possible, we would bring in an external mediator, assuming both parties agreed. If mediation is not possible, then the CORE would launch a review or investigation, and once that is completed it would make recommendations to the company on how to remedy the harms caused, and possibly on changes to company policies. The CORE is required to publish its findings and recommendations, and monitor the extent to which they are implemented, which is an important means by which it can hold Canadian companies accountable. Who can file a complaint with you? Workers themselves, unions, governments, NGOs? - Complaints can be filed by or on behalf of an impacted individual, worker, community, or group. The mechanism for filing complaints is simple. Complaints can be submitted by email, by post, by phone and through our online complaints form, which is open to anyone around the world.

Canada 2022

There is no cost for filing a complaint, and complainants do not need a lawyer to engage in the complaints process. We have sought to make it as easy as possible for impacted groups. That being said, we also recognize that impacted groups may face the threat of retaliation, which we take very seriously. The CORE assesses the risk of retaliation before working with people and communities, and works to avoid possible harm. What kind of misconduct is the most commonplace; and how long does it take for you to establish the facts and reach a decision? - We launched our complaint process just over a year ago, and have to date - as of time of writing - received five admissible complaints that are either awaiting follow-up or have been referred to Canada’s National Contact Point for the OECD Guidelines for Multinational Enterprises. We recently received nine additional complaints related to the garment sector, which are currently under review. Once we receive a complaint, our office will assess the admissibility of a complaint within 30 working days and conduct an initial assessment within 90 working days. Our goal is to respond to complaints as soon as possible, while ensuring that we conduct thorough analysis and fact-finding. For the purposes of a complaint, it is important to note that human rights

include rights related to the environment, labor, health and safety. Our mandate covers all internationally recognized human rights. Under our mandate, a human rights abuse refers to an adverse impact on an internationally recognized human right arising from a Canadian company’s operations abroad. Human rights abuses can

Human rights abuses can arise in a wide range of matters, including occupational health and safety, access to land, and employment practices arise in a wide range of matters, including occupational health and safety, access to land, and employment practices like fair wages and reasonable working hours, sexual harassment, human trafficking and modern slavery. What happens then? Where do your institution’s strengths lie? - In addition to the tools of early resolution, mediation and investigation pursuant to a complaint, the CORE can conduct an Ombud-initiated review. This is a very powerful tool, as it allows me the discretion to launch a review when I receive information that would suggest that human rights

abuses are taking place. We do not have to wait for a complaint, but can be proactive in determining that an operating context requires that we take action. We also have the power to make recommendations to the Canadian government through the Minister of International Trade. These recommendations include the withdrawal of trade services and future financial support to the company in question, as well as recommendations on government policy regarding matters related to the CORE’s mandate. Good Canadian companies understand the importance of acting responsibly. They know that there is no conflict between running a successful enterprise and respecting human rights. They know that it is good for business. As such, we expect Canadian companies to cooperate in our dispute resolution processes, and to work with the CORE to address harm arising from their operations. Having said that, if they do not cooperate, the CORE will proceed to make findings of fact and recommendations that will be set out in a report. My mandate requires the publication of these reports, thus making the company’s lack of engagement accessible to consumers and investors. This publication requirement provides a significant lever to influence responsible business conduct by Canadian companies in the garment, mining and oil and gas sectors.

Canada 2022

BUSINESS

DUŠAN SIMIĆ, JANTAR GRUPA FOUNDER AND CEO

NO PROGRESS

WITHOUT GEOLOGY The experience of company Jantar grupa, a leading exploration and consulting firm in the fields of geology, mining and environmental protection, shows that every individual mine contributes to development at all levels, from local government to the state, provided it operates according to the standards controlled by the state

Serbia has good laws regulating these areas, but it’s also necessary to ensure good controls and the work of inspections. I also consider it necessary to update the Law on Mining and Geological Research, because the latest amendments introduced some positive things, but also created problems in the process of obtaining approval to conduct research. We need one central place where we can obtain all research and exploitation approvals (one-stop-shop) and procedures that will be immune to external influences. Bylaws should also be adopted and harmonized with the EU (PERC), because we’re still working in accordance with regulations that date back to the 1970s.

eological exploration is needed in all spheres of life, as it ensures that we have clean water, functioning roads and secure houses, the essential minerals required to produce almost everything we touch. That’s why they insist at Jantar grupa that geology be treated with the care and attention it deserves.

We are hearing increasing demands to ban geological exploration and the opening of mines coming from part of the public. Are those demands justified? - A country that doesn’t invest in geological exploration, or doesn’t allow others to do so, is doomed to being eternally dependent on other countries; dependent for energy, fuel, water, all kinds of goods and resources, even food. Serbia, as a country with natural resources – ranging from water, via energy, to ferrous and non-ferrous metals – shouldn’t and mustn’t abandon its research and exploitation, nor should it permit certain interest groups, under the patronage of various “green” organizations and others (NGOs) to prevent the country’s progress. Of course, we shouldn’t launch a hunt for geologists, as some politicians claim, just as uncontrolled exploitation shouldn’t be allowed either. Exploitation should be conducted exclusively in accordance with the law and the fulfilling of all conditions prescribed by the state. And the state has institutions via which it can and must control all steps, from the stage of designing geological exploration and exploitation projects, to the final stage of mine closure and complete land reclamation.

Canada 2022

We need one central place where we can obtain all research and exploitation approvals (onestop-shop) and procedures that will be immune to external influences Does this mean that the problem isn’t geological exploration and exploitation, but rather a lack of regulations, standards and laws, or a failure to comply with them? - Geological exploration and mining must certainly be carried out in accordance with the law and with care and attention to respecting environmental protection.

How can tensions in society be reduced? - Numerous different professional associations exist in Serbia, some of which – like the Serbian Geological Society - have existed for more than 130 years, while some are new – like the Chamber of Mining and Geological Engineers of Serbia, which was founded this year. Some are closing down, some are only just being created, but what they all have in common is that they don’t do enough to deal with the problems of their members. Too much attention is devoted to personal interests, and too little to the interests of society. I think that forming a single cluster that would encompass all stakeholders – investors, mine owners, banks, architects, contractors, equipment suppliers, NGOs, green movements, local governments, government institutions, institutes, laboratories etc. – would contribute significantly to improving understanding and reducing tensions in society.

BUSINESS

THRIVING AND GROWING TOGETHER WITH THE LOCAL COMMUNITIES Dundee Precious Metals is a Canadian-based international mining company with a proven track record of responsible mining. DPM continuously invests in upgrading and modernizing its facilities, respecting the highest standards to minimize its impact on the environment. The company’s mining operations rank among the lowest GHG intensity mines globally

Ada Tepe – DPM mine in Krumovgrad, Bulgaria

n addition to its successful Ada Tepe and Chelopech mining operations in Bulgaria, DPM also operates a smelter in Namibia and has ongoing exploration activities in Bulgaria, Canada, Ecuador and Serbia. At the core of each of the company’s successful project developments is mutual respect, for the people in DPM and the communities where the company works. One of the company’s key priorities is ensuring that its operations are fully compliant with local regulations while also reflecting the same values, ethics, and business principles globally that meet the highest standards in Canada, a country with standards for responsible

and sustainable mining that are among the highest in the world. DPM’s purpose is to unlock resources and generate value to thrive and grow together with the local communities where it operates, and it is therefore highly focused on supporting long-term sustainable development. During its 15 years of operating in Bulgaria, the company has received several recognitions for its corporate philanthropy programs. The company employs local people at all levels. The senior management teams comprise primarily local national talent. DPM is committed to gender equality 44% of its senior managers are women.

European Bank for Reconstruction and Development (EBRD) is a DPM shareholder, which guarantees respect for the highest European industry standards. The foundation of the company is built on its core values: safety and well-being, environmental stewardship, transparency and accountability, respect and inclusion, innovation with courage, and partnership with communities. Sustainability is a key part of DPMs culture and is integrated at all levels of the organization. We unlock resources and generate value to thrive and grow together! www.dundeeprecious.com

Canada 2022

INTERVIEW MIRJANA DONČIĆ BEATON, MANAGING DIRECTOR OF THE CANADIAN-SERBIAN BUSINESS ASSOCIATION

RESPONSIBLE TO SOCIETY,

PEOPLE, AND PLANET The Canadian-Serbian Business Association (CANSEE) has operated in a socially responsible manner from the start and strongly supports Canada’s new Responsible Business Conduct Abroad Strategy for The Future

he actions of companies have a significant impact on the lives of citizens around the world, not just in terms of the products and services that they offer or the jobs and opportunities they create, but also in terms of working conditions, human rights, health, the environment, innovation, education, and training. A responsible business is essentially one that benefits society and addresses any possible negative impacts it might have on society, people, and planet. This way of looking at a business can help decision makers make more responsible decisions, ensuring that considerations of social and environmental impact are balanced against those of financial gain. Responsible business conduct is central to Canada’s trade diversification strategy, inclusive trade and sustainable and inclusive economic growth. It complements Canada’s approach to taking action on climate change, sustainable development, multilateralism and a rules-based trading system. This five-year strategy is led by Global Affairs

Canada 2022

Canada and its Trade Commissioner Service. CANSEE, the Canadian-Serbian Business Association, has been operating in a socially responsible manner from the start and is today providing strong support to Canada’s five-year Responsible Business Conduct Abroad Strategy for The Future (2022-2027) by responsibly promoting trade and development between Canada and Serbia. Our association brings together local and international corporations and SMEs with the goal of facilitating bilateral trade and investments through active participation between governmental bodies and our members, and by helping our member companies achieve and exceed world leading responsible business practices. Amongst our members and founders are Canadian businesses that are widely recognized as leaders in responsible business practices. These businesses know that integrating best practices throughout every facet of their operations is not only good for our collective society and the environment, but also improves their

bottom line, makes them more competitive, and drives innovation. Canada’s extractive companies in the mining, oil and natural gas industries provide a major contribution to Canadian prosperity and are making substantial contributions to economic development in the countries where they operate, including Serbia. CANSEE member Dundee Precious Metals is an international mining company based in Canada with proven experience in responsible mining. As part of its successful business, the company bases its operations on the principles of mutual respect of people in DPM and in the communities in which it operates. One of the company’s key priorities is to ensure that business complies with local regulations, as well as the same global values, ethics and business principles that meet the highest standards in Canada, a country with standards for responsible and sustainable mining that are among the highest in the world. Also, one of our Canadian companies, Mundoro Capital, is working with local communities and partners to create positive engagements and new opportunities by donating medical equipment, renovating a local medical clinic, renovating a children’s playground and supporting folklore festivals in Bor, Kučevo and Boljevac. As part of the global Molson Coors Beverage Company group, one of our founders, Apatinska Pivara [Apatin Brewery] operates in accordance with globally-established guidelines and goals, with the concept of social responsibility woven into its entire operation. Apatin Brewery is among the first companies in Serbia to build a wastewater treatment plant, representing an investment worth 13 million euros, and it has also been initiating and implementing projects to reduce packaging waste.

Throughout different projects, this company has raised awareness of the need to improve the packaging waste collection system, which is one of its company priorities. In 2009 and 2014, the federal government of Canada released RBC strategies focused on supporting Canadian companies in the extractive sector abroad. The RBC Strategy is a continuation of these strategies that builds on existing UN Guiding Principles and the OECD Guidelines, the 2030 Agenda for Sustainable Development Principles and the UN Guiding Principles for Business and Human Rights. Among our members, Schneider Electric was awarded in 2021 as the “Most Gender Sensitive Company”withintheproject“EqualityintheChain of Value”, which is jointly implemented by the Association of Business Women of Serbia, the Coordination Body for Gender Equality and the Embassy of the Kingdom of the Netherlands in Serbia. Recognition is given to large companies that apply Principle 5 of the United Nations for the Empowerment of Women and that have provided the best model for the inclusion of womeninsupplychains.DeltaHoldingandRudnik i flotacija Rudnik, both CANSEE members, were also awarded as the “Most Gender Sensitive Company” in 2018 and 2019 respectively. RBC can lead to investment attraction, increased brand value, and customer attraction and retention, as more consumers look to buy ethically-produced goods and partners (including financial partners) seek to meet Environment Social Governance (ESG) requirements. This can lead to the realizing of greater potential for increased access to capital. CANSEE member companies implement responsible business practices, meeting and exceeding widely recognized international standards, guidelines and frameworks. Among the tools to integrate responsible business conduct considerations into bilateral and multilateral engagements, lifelong education plays the key role. On that note, CANSEE promotes and organizes the LEADER Project, an economic development program founded in 1991 by MBA students from the Ivey Business School that not only educates, but also promotes RBC via real case studies. These cases simulate a real-life situation confronted by business leaders and forces participants to learn by doing and making confidentdecisionsinthefaceofuncertaintyand how to commit to doing business in responsible ways, contributing to more sustainable growth

CANSEE is committed to working with relevant stakeholders to identify emerging best practices in this area and provide training to our members on Responsible Business Conduct policies and practices. We strongly support initiatives that strengthen local ecosystems, for instance by facilitating introductions between local suppliers and Canadian companies and the building of a better future for all by respecting human rights, including advancing the rights of under-represented groups, protecting the environment, advocating for gender equality, combating discrimination and furthering diversity and inclusion. Delta Holding, as one of our valued members, is committed to the principles of growth, equity, sustainability and resiliency, and is widely recognized as a leader in meeting the SDGs. Delta House, like most of Delta’s companies, has solar panels that ensure affordable and clean

energy and help attain Goal 7. As of 2021, all of this company’s vehicles run on electric power, rendering them much more energy efficient. The attaining of goals 1, 2 and 4 was achieved by Delta’s project Mokrin House, which enables farmers to use digital platforms and information technologies in their work. This pilot project in Serbia will be transferred to other villages throughout the country. Delta Holding’s Our Village [Naše Selo] project achieved Goal 17 by developing agricultural production, and thus improving social life.

Canada 2022

INTERVIEW VIOLETA JOVANOVIĆ, EXECUTIVE DIRECTOR, NALED

GENDER EQUALITY IS THE FOUNDATION

OF RESPONSIBLE BUSINESS There are many more women doing daily unpaid work than those making an average salary in Serbia. More than 60 percent of women living in rural areas are not formally employed or financially independent and are without permanent employment or a stable source of income

o change the statistic cited in the introduction, the Ethno Network, with support from the Canadian Embassy and the Canadian Fund for local initiatives, is implementing practical projects to economically empower women and young people making traditional crafts. This support system has also been tailored to cater for small organizations, with simple reporting procedures and resources available for more concrete interventions and responses to the needs of groups in the field. Thanks to this funding, we managed to provide economic and psychological support

Canada 2022

to over a hundred women in Sombor, Sremska Mitrovica, Loznica, and Pančevo during the pandemic. These women attended the “Entrepreneur and Independent” workshops in order to connect and gain empowerment during these difficult and unpredictable times. In addition, by speaking to local decision-makers with the support of the organization UN Women, we defined measures that need to be taken to economically empower women, and have organized groups and training in the field of weaving and weaving techniques. The most successful participants also received the necessary equipment to do the work. The

training in Pančevo was intended for teachers and educators, to help them organize more creative and successful workshops for children. Furthermore, after the weaving workshop in Sombor, a new society was founded that is now working to preserve national heritage. To make sure that continued support is not just an unfulfilled promise, we have mobilized the municipalities of Odžak and Knjaževac to secure a space for local groups to work and sell their products. The province supports public works in the culture sector, and we also encourage this at the national level. The Ministry of Education has made Ethno Network programs available for training teachers as well. State institutions occasionally use ethno-crafts made by the women of the Ethno Network as business gifts and, thanks to cooperation with “Serbia Creates”, their work was also prominently displayed in the Serbian Pavilion at the Expo 2020 Dubai. We continue to invest in particular programs that protect traditions and our heritage – by securing packaging and certifications, and by purchasing blocks of the products for the country’s protocol gifts and representation by our embassies abroad. While Ethno Gallery in Belgrade is one of the goals we are yet to achieve, we have in the meantime secured sales booths at highclass hotels – Hyatt, Indigo, Metropol and Crowne Plaza – that were willing to install presentation booths containing traditional and heritage-related items. The Initiative “1000 women” has helped enhance the results of this project, which we are running under the patronage of Deputy Prime Minister Zorana Mihajlović and the president of the Coordinating Body for Gender Equality. This is all done to ensure that, after decades of unemployment and being shunned in the labour market, hundreds of women will be job-ready

and empowered. They will gain useful weaving skills, which will enable them to make a living by doing this creative work. This initiative has been in force since 2017 and we have so far spent over 22,000 hours working to arrange training and public works, and on establishing craft items as business and diplomatic gifts. As we continue with the project with the support of the Canadian Fund, we are striving to restore the importance and status of these handmade crafts as symbols of our identity, and women as their guardians and promoters. In order to properly represent the crafts at expos and events, we have arranged for a booth to be used for the presentation and promotion of these products. We have also started exhibitions of authentic craftwork done by craftsmanship organizations from Pančevo, Odžak, Bela Palanka, Knjaževac, and Kladova in the Palace of Serbia building. The exhibition consists of recognizable elements thst are listed nationally as part of the not-for-profit cultural heritage, such as inspired motifs from Pirot and Stapar carpets, lavish Vlach embroidery from the Timočka Krajina region, and the famous Banat pattern by Jovanka Poznanov. It also promotes carving, embroidery, and weaving techniques. All of the products have the Ethno Network stamp of approval and are colorfully and visually integrated to create a harmonious composition. The exhibitions also harmonize with the goals of the “1000 women” initiative, which has ensured frequent presentations in the government building in Nemanjina Street (Serbian Salon) and the Banovina building in

While thanking the diplomatic community, we invite our government officials to recognize this forgotten societal and economic value and to contribute directly, through tangible support measures. We also call for a more equal political regime that would not only benefit women, but society as a whole Novi Sad (Vojvodina Salon). The reasoning behind displaying them in these institutions is to show these crafts in a gallery-like setting, bringing back the dignity of the craft through

the promotion of the heritage and cultural identity of Serbia as a foundation for the development of the local economy and the empowerment of women and young people. Supporting these efforts is the wife of the Ambassador of Canada, Valerie Lane, who readily engages as a host and sponsor of Ethno Network initiatives, our exhibitions, workshops, and groups. Mrs. Lane, supported by her husband, helps us selflessly. She actively encourages her diplomatic colleagues and heads of donor organizations to offer full support to the programs that empower women. While thanking the diplomatic community, we invite our government officials to recognize this forgotten societal and economic value and to contribute directly, through tangible support measures. We also call for a more equal political regime that would not only benefit women, but society as a whole. By creating specific programs that do not cast women from rural areas in a particular social category, and creating a society more accepting of employed and successful women, we can create a culture in which more women would be encouraged to assure they are employable and can live independently, with the help of their community, and furthermore to take leading positions in our society. For this to happen, women need to believe in themselves and their abilities, work hard and make decisions independently. To advance more rapidly, everyone involved must work together: the government, businesses/politicians, media, and women themselves, who need to take ownership of their careers and not hesitate to present the results of their hard work publicly, something they often leave to men.

Canada 2022

CORPORATE RESPONSIBILITY AND RESPECT TO HUMAN RIGHTS

STEPPING IT UP Until recently, human rights have generally been viewed as the responsibility of governments, not companies. Now things have been changing and companies are proactively demonstrating their respect for human rights

LUC ZANDVLIET, DIRECTOR ,TRIPLE R ALLIANCE

ntil recently, human rights have generally been viewed as the responsibility of governments, not companies. After all, governments have adopted the Universal Declaration of Human Rights (UNDHR). By doing so, states committed to protecting human rights and promoting “social progress and better standards of life in larger freedom”. Still, the question about companies’ role in relation to human rights have been nagging, especially as companies have become more powerful players in society. In 2012, the UN Guiding Principles on Business and Human Rights (UNGP) provided the first comprehensive direction for companies on human rights issues. Since, it has become the standard across industries. The UNGPs changed the dynamics of human rights not only by formalizing the role of businesses, but also by creating a reporting structure for companies to proactively demonstrate their respect for human rights. Emerging from this is an emphasis on companies both “knowing and

Canada 2022

showing” that they respect human rights, or, in other words, demonstrating through policies, systems, programs and practices that they do not “infringe” on the rights of other. These disclosure and verification systems should bolster public confidence in companies’ respect for human rights and social responsibility. Legislation in a number of states, particularly in Europe and increasingly also in countries such as Canada, compliments the UNGP by requiring companies to conduct human rights due diligence and disclosure. Furthermore, the emphasis in financial markets on company environmental, social and governance performance (ESG), including human rights, has accelerated the adoption of the UNGPs by companies.

The more communities and civil society understand about corporate human rights requirements and disclosure, the better they are at discerning which companies are leading and which are lagging in this area Company practices have evolved with the change in expectations around human rights and social responsibility. They recognize that they need not only regulatory permits to operate but also the acceptance of local communities. To achieve this, companies have increased their capacity to listen to community concerns and aspirations, and to jointly develop acceptable prevention, mitigation and monitoring measures. Companies have also grown to understand that how they work with communities is at least as important as what they

offer to communities. Many companies now recognize that despite government approvals to operate, companies are still guests to host communities and need to behave as such. In the past, companies’ approach to corporate social responsibility was often defined by how much money they donated to local initiatives. Just spending money spent though has proven insufficient in forging lasting working relationships with local communities. By moving from a transactional to a more relational approach, companies become more transparent, accountable, and inclusive. The Government of Canada supports responsible business conduct through resources and tools that cover not only community relations, but also governance, workforces and supply chains. Furthermore, the Government of Canada established the Canadian Ombudsperson for Responsible Enterprise to respond to complaints about possible community by Canadian companies working outside of Canada in the garment, mining, and oil and gas sectors. Through transparent disclosures, policies, training, and evolving practices, companies are creating systems that protect and respect human rights. When there are breaches, company complaints mechanisms, and programs like the Canadian Ombudsperson for Responsible Enterprise present avenues for resolution and remedy. Civil society can play an important role in education, monitoring and advocacy. The more communities and civil society understand about corporate human rights requirements and disclosure, the better they are at discerning which companies are leading and which are lagging in this area. Working with those companies that are demonstrating respect for human rights and community relations can help bolster responsible economic development.

APATIN BREWERY BUSINESS

FOCUSED ON PEOPLE AND THE PLANET

Apatin Brewery announces several projects by the end of the year that will have a strong impact on increasing the use of green energy, but also respect for the principles of the circular economy

his year’s World Environment Day saw employees of Apatin Brewery plant Canadian maple trees along the promenade near Belgrade’s Ušće Confluence, in the area around the Museum of Contemporary Art. Apatin Brewery celebrated World Environment Day by planting Canadian maple trees in the Serbian capital. As a responsible company, Apatin Brewery is focused on issues that it can have the greatest impact on across two key pillars: People and Planet. What does that really mean? If we care about people, water, climate, and packaging, we will protect our planet and leave it healthier for future generations. One of the most recent activities to this end was the aforementioned marking of World Environment Day in a unique way. The magnificent Canadian maple trees planted by the company’s employees in the beautiful area around the Museum of Contemporary Art,

alongside the confluence of the Sava and Danube rivers, has enriched this promenade with these new trees that will attract everyone with their recognizable copper-red leaves.

SERVICES

www.abkons.com

Apatin Brewery’s employees came by bicycle to the tree-planting event – organized by the Serbian Chamber of Commerce, with the support of the ‘Plant Your Own Shade’ organization and other responsible companies and organizations – thereby strengthening the message they sought to convey about impacting on environmental protection issues. Accordingtothecompanyitself,“ApatinBrewerycaresabouttheprotectionoftheenvironment and continuously and systematically implements activities that support the green transition and a sustainable future. Today we came by bicycle to plant trees, and we are proud to continue the tradition of cooperation with the organization ‘Plant Your Own Shade’ and the Serbian Chamber of Commerce & Industry. What we can announce from our side is several projects by the end of the year, which also have a strong impact on increasing the use of green energy and respect for the principles of the circular economy.”

SECTORS

Environmental, Social Services & Performance Land Management & Rural Development Architecture, Cultural & Historical Heritage Services Socio-Economic Impact Assessment Engineering Services Project Management Business Management Services Health & Safety

Mining, Oil & Gas, Renewables Transport & Infrastructure Water/Wastewater Telecommunications Public Administration and Governance Environment Agriculture and Rural Development Tourism ICT and Digital Economy

Managing ESG Risks for Exploration and Mining ases of community and Government push back on exploration C and mining projects linked to environmental concerns Increasing scrutiny of mineral supply chains by investors, regulators and civil society on governance and social performance Importance of EU strategy and regulation in shaping outcomes for responsible mineral production in South-East Europe Opportunity for new and established players to demonstrate their credentials, track record and transparent and constructive approach Abkons Proposal - Strategic ESG Risk Review From local, national, EU and global perspectivesIn collaboration with corporate and local teamsIdentifying ESG threats and opportunities

OUTCOMES: Strategic ESG and reputational risks map Secure social licence to operate Conformance with IFI standards community, national and wider stakeholder map Actionable recommendations to prevent, anticipate and mitigate ESG threats, adverse reputational impact and risk of “spill-over effect” particularly in the EU Actionable recommendations and strategic support in local and national engagement, with communities, NGOs and regulators Actionable recommendations and strategic support in permitting, approvals and protection of tenure Presentation to local and corporate leadership and client engagement

Canada 2022

INTERVIEW TEO DECHEV, CHIEF EXECUTIVE OFFICER, PRESIDENT & DIRECTOR OF MUNDORO

MUNDORO FOLLOWS

WORLD BEST PRACTICES

Mundoro is a Canadian company focused on exploration, development and investment in copper and gold. Over the last 20 years of exploration, Mundoro has pursued strong governance coupled with environmental and social standards within all jurisdictions in which it operates

e support health care and education systems, and promote the preservation of local traditions and cultural heritage for future generations to com ~ says Teo Dechev proudly. Could you tell us more about your operations around this region? How many licenses do you possess in Serbia? - Mundoro is a publicly listed royalty generator on the TSX-V in Canada (MUN) and the OTCQB in the U.S. (MUNMF), with a portfolio of mineral properties focused primarily on base metals. The portfolio of mineral properties is currently focused predominately on copper and gold porphyry systems in two mineral districts: the Western Tethyan Belt in Eastern Europe (Serbia and Bulgaria) and the Laramide Belt in the southwest U.S. (Arizona and New Mexico). Mundoro has partnered with major mining operators, such as Vale Inc (a Brazil-based international mining conglomerate) and Japanese Oil and Gas Metal Economics Corporation (JOGMEC – an investment arm of the Japanese government in international mineral resources), who fund the exploration programs, with Mundoro operating

Canada 2022

In Serbia, Mundoro is operating six properties for Vale and one for JOGMEC those exploration programs. In Serbia, Mundoro is operating six properties for Vale and one property for JOGMEC. In the past, Mundoro has had similar exploration partnerships with Freeport McMorran (a U.S.based international mining con-

glomerate) and First Quantum Minerals (a Canada-based international mining conglomerate). Do you devote great attention to protecting and preserving the environment, respecting all laws and regulations, during

all phases of your research and exploration activities; do you operate in accordance with the world’s best practices? - Our guiding principles during all stages of exploration activities are concentrated on the protection and conservation of the land and wildlife. We follow all legal regulations of the countries where we operate and the world’s best practices. We adhere to standards to protect wildlife and plant life in the surrounding habitat, restore the landscape post exploration, work with drilling contractors to minimize emissions and work with certified independent labs. Mundoro is committed to remaining engaged with the communities in the areas around our projects, in order for us to work cooperativelytowardsthediscovery and responsible development of new deposits and mines. We support health care and education systems, and promote the preservation of local traditions and cultural heritage for future generations to come. Over the last 20 years of exploration, Mundoro has pursued strong governance coupled with environmental and social standards within all the jurisdictions in which we operate, building relationships on the basis of trust and respect, and working with local communities and partners to create positive engagement and new opportunities.

FACT AND FIGURES

HUMAN RIGHTS ABOVE ALL

In today’s turbulent times, when numerous global challenges confront us, it will only be possible to achieve progress in all segments of our lives through the nurturing of diversity, tolerance, understanding, inclusiveness and unwavering respect for human rights and equality. A big job lies ahead for the governments of all countries, and we all have a long way to go

WE HAVE THE “RIGHT TO DISCONNECT” In an increasingly work-focused culture, it can be pretty hard to disconnect and leave that stress behind at the office. The lines of demarcation between work and personal life can become pretty murky, especially in a society that’s always on-call and connected to devices. Finding an appropriate work-life balance is essential to our overall physical and mental health and well-being. Recognizing that fact, in 2016 the French government passed a law protecting employees’ “right to disconnect”. Forming part of a larger French labor law that came into effect in 2017, it stipulates that employers must not require their employees be available for workplace communications, such as calls or emails, beyond their regular working hours, or during their free time. Even then, it was obvious that this constant connectivity was becoming a detriment to employee health, and this is a theory that’s since been supported by many studies. In the time since France enacted this law, several other countries have introduced similar legislation to protect worker rights and employee health. However, this measure is still a long way from being widespread.

Canada 2022

FACT AND FIGURES WOMEN NOT AFFORDED EQUAL OPPORTUNITY Around 2.4 billion women of working age are not afforded equal economic opportunity and 178 countries maintain legal barriers preventing their full economic participation, according to the World Bank’s 2022 report Women, Business and the Law. Women face some form of employment restriction in 86 countries, while 95 countries do not guarantee equal pay for equal work. Globally, women still have only three quarters of the legal rights afforded to men – with an aggregate score of 76.5 of a possible 100, denoting full legal parity. However, the report noted that, despite the disproportionate impact of the global pandemic on women’s lives and livelihood, 23 countries nonetheless reformed their laws in 2021 to take much-needed steps towards advancing women’s economic inclusion. “As we move forward to achieve green, resilient and inclusive development, governments need to accelerate the pace of legal reforms so that women can realize their full potential and benefit fully and equally”, said Mari Pangestu, World Bank Managing Director of Development Policy and Partnerships. HEALTH IS A HUMAN RIGHT New Zealand’s new Pae Ora (Healthy Futures) Act, due to have taken effect as of 1st July, 2022, will be a once-in-a-generation chance to reset the country’s public health system. This is a welcome effort to protect, promote and improve the health of all New Zealanders, reduce health disparities (in particular for the Māori people) and give effect to The Treaty of Waitangi. These aims align with the international legal framework on human rights and the rights of Indigenous peoples. And yet, New Zealanders will continue to miss out, as the new act fails to incorporate the right to health explicitly. Doing so would have provided another (legal) mechanism to hold the government and its various health authorities accountable for their actual delivery on their noble objectives. The act will set out a series of obligations and expectations for health providers and consumers, which are to be applauded. The failure to include the right to health may derive from a view that this is not a “real” right. Various reasons are posited to support such a view, but they can all be refuted. EQUALITY, DIVERSITY, AND INCLUSION ARE THE FOUNDATIONS OF GOOD BUSINESS Establishing cultural diversity and an inclusive workplace isn’t only the right thing to do, it’s also good for business. It not only presents the company in a positive light, but rather also brings many different perspectives to the table and develops a business’s operations. Research conducted recently has shown that companies ranked in the top 25% for national diversity are 35% more likely to generate profits above the median for their sector. The likelihood of higher profits is 21% higher for gender diverse companies. In addition to this, companies with higher diversity and inclusion achieve a better business performance in numerous areas where it is important to have creativity – which will be one of the three most important business skills – diversity, productivity, and the retention of employees. The result of making inclusion a top priority is employees with a higher number of skills, which leads to improved internal exchanges of knowledge. And this is not just about objective skills. Diversity also improves employees’ subjective skills, for example management, cooperation and communication skills, which are skills identified by company managers (57%) as being the most important. (Microsoft)

Canada 2022

FACT AND FIGURES UK UNVEILS BILL TO OVERRULE EUROPEAN HUMAN RIGHTS DECISIONS The UK’s new Bill of Rights could see the country refuse to follow certain rulings of the European Court of Human Rights. The move comes after a judge in Strasbourg stopped flights from transporting UK asylum-seekers to Rwanda. The British government announced plans for a bill that would mean British courts do not have to follow decisions of the European Court of Human Rights. The move comes just over a week after the ECHR blocked UK ministers’ efforts to send people seeking asylum in the UK to Rwanda. Announcing plans for a new Bill of Rights, UK Deputy Prime Minister Dominic Raab said Britain would not abandon the European Convention on Human Rights, but that the bill would assert that the UK Supreme Court in London is the ultimate arbiter on human rights issues. PANDEMIC CAUSED SLOWDOWN IN STRUGGLE FOR WORKPLACE GENDER EQUALITY Recent studies show that, despite all efforts, not only is there a failure to improve gender equality in the workplace, but the situation is actually worsening. And that regression was only accelerated by the pandemic. According to recent IBM study ‘Women, Leadership and Missed Opportunities’, gender equality still isn’t a top business priority for 70% of organizations. Furthermore, the study shows that the number of women in leadership positions is declining, indicating a worsening of gender inequality in business leadership positions. Fewer women held senior vice president, vice president, director and manager positions in 2021 than was the case in 2019. This is particularly the case in the CEE region, as shown by the World Economic Forum’s Global Gender Gap Report. The index that forms part of the 2021 Report ranks Serbia 19th, while, for instance, Czechia is in 78th place, Romania is 88th, and Hungary is ranked 99th.

SDGS SHOULD BE MORE STRONGLY LINKED TO COMPANY OPERATIONS The importance of further connecting the Sustainable Development Goals to companies’ operations and raising awareness of the importance of this issue within the business sector were the main topics of Business SDG Week, which attracted representatives of the state, business and civil sector, but also a large number of SMEs. The 2030 Agenda for Sustainable Development is nothing less than a massive transformative process towards a sustainable world. This can only be achieved through an integrated approach and the joint responsibility of governments, academia, the business sector and civil society, which must act in unison. Serbia’s private sector should accept the UN Global Compact and participate actively in the public dialogue on the 2030 Agenda, which was established within the framework of the “SDGs for All” Platform and is being jointly supported by the governments of Switzerland and Germany.

Canada 2022

CONTENTS

FROM BIG TALK TO BOLD ACTION COMMENT

SANJA IVANIĆ, GENERAL DIRECTOR, CCIFS OUR DOOR IS ALWAYS OPEN

H.E. PIERRE COCHARD, AMBASSADOR OF FRANCE TO SERBIA FRANCE FAVOURS SWIFT EU ACCESSION FOR WESTERN BALKANS

FRENCH PRESIDENCY OF THE COUNCIL OF THE EUROPEAN UNION EUROPE’S SOVEREIGNTY AT HEART

VELJKO STOJANOVIĆ, DIRECTOR, ATALIAN GLOBAL SERVICES RS QUALITY GOES WITHOUT SAYING

DRAGAN STOKIĆ, PRESIDENT OF THE FRENCH-SERBIAN CHAMBER OF COMMERCE (CCIFS) WE RESPOND TO CHALLENGES WITH ENTHUSIASM AND HARD WORK

DEJAN MAJIĆ, MAMA SHELTER BELGRADE GENERAL MANAGER MINI EUROPE AT THE HEART OF BELGRADE

STANISLAS PIERRET, COUNSELOR FOR COOPERATION AND CULTURE AT THE EMBASSY OF FRANCE, DIRECTOR OF THE INSTITUT FRANÇAIS IN SERBIA FRENCH IS THE LANGUAGE OF CULTURE, LOVE, BUT ALSO CAREERS

EDITOR IN CHIEF Neda Lukić n.lukic@aim.rs ART DIRECTOR Branislav Ninković b.ninkovic@aim.rs PHOTOS Zoran Petrović COPY EDITOR Mark Pullen mrpeditorial@mail.com

BUSINESS PARTNER | FRANCE 2022

EXECUTIVE DIRECTOR Maja Vidaković m.vidakovic@aim.rs PUBLISHER Ivan Novčić i.novcic@aim.rs DIRECTOR Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com

PRINTING Rotografika d.o.o. Segedinski put 72, Subotica FRANCE 2022 Published by: alliance international media Prote Mateje 52, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 Fascimile: +(381 11) 2450 122 E-mail: office@aim.rs; office@cordmagazine.com

www.aim.rs; www.cordmagazine.com

IMPRESSUM

ISSN: 2560-4465 All rights reserved alliance international media 2021 The views expressed in this publication are those of the presenter; they do not necessary reflect the view of publications published by alliance international media

THIS PUBLICATION IS FREE OF CHARGE

BELGRADE AIRPORT NEW TERMINAL EXTENSION BRINGS MORE COMFORT AND IMPROVED EFFICIENCY

PASCAL LAMY, PRESIDENT OF THE PARIS PEACE FORUM, FORMER DIRECTOR-GENERAL OF THE WORLD TRADE ORGANIZATION AND EU TRADE COMMISSIONER PREPARING FOR CLIMATE OVERSHOOT

BARBARA PRAVI, SINGER, SONGWRITER AND ACTRESS SERBIAN ROOTS, FRENCH FLAIR

CCIFS ACTIVITIES A RELIABLE PARTNER FOR BUSINESS DEVELOPMENT

CARLO RATTI, DIRECTOR OF THE MIT SENSEABLE CITY LAB, CO-FOUNDER OF INTERNATIONAL DESIGN AND INNOVATION FIRM CARLO RATTI ASSOCIATI REINVENTING PARIS

FRENCH-SERBIAN ECONOMIC COOPERATION NEW FRENCH INVESTMENTS EXPECTED

BUSINESS PARTNER | FRANCE 2022

COMMENT

FROM BIG TALK

TO BOLD ACTION The areas in which the French presidency lived up to its own expectations the most, but also those of its European partners and the wider community, remain to be seen. Indeed, many things were served on the presidency’s plate, each of which was deemed as being of outmost importance to the future of Europe

he French presidency of the Council of the European Union has just ended, leaving us to ponder its effects. The six-month rotating role is usually one of highly concerted activity with other EU members, and not just those holding the presidency together in groups of three – in this case France, Czechia and Sweden. The Presidency of the Council involves a highly structured set of steps that are set in advance and planned thoroughly, in this case being established and premediated in 2019. Yet there is always space for members to convey their own priorities and respond to new challenges. Larger and older members dare to have a political vision for Europe. In this respect, this latest French Presidency arrived during times when a vision of Europe was in high demand. At the beginning of 2022, the EU had already been hit hard by the pandemic, and was preparing to adapt swiftly to the global changes, energy crisis, disruption to global value chains and inflation, followed and further exacerbated by the Ukraine war. By the same token, France was preparing for a major political event in the form of April’s presidential election, followed by June’s legislative elections. President Emmanuel Macron focused strongly on the French Presidency of the Council, or more precisely on his vision for Europe, as an election ticket, which was first communicated in his 2017 speech at the Sorbonne. Each Presidency is responsible for planning and chairing numerous events, including both formal and informal meetings in Brussels, representing the Council in relations with other EU institutions, in particular the Commission and the Parliament, and above all assuring that legislative work is undertaken in a timely and efficient manner. In the case of France, this highly technical but also politically charged task was wrapped up in three messages: a more sovereign Europe, a new European growth model, and a humane Europe aimed at leaving a strong political mark on the development of the Union. The setup of the Presidency provides the possibility for such action: the country that holds the presidency plays a major role in the preparation of European Council meetings, giving it an exceptional opportunity to involve itself in major diplomacy efforts or those related to top security issues through the Political and Security Committee, which it chairs.

BUSINESS PARTNER | FRANCE 2022

The French agenda was packed with important topics, such the economic adjustment to technological, climatic and geo-economic challenges, the acceleration of climate and digital transitions, and security and defence Indeed, all three aspects came to the fore during the last six months. The French Presidency conveyed the message that Europe has to be understood as being fully sovereign, free to make its own choices and master its destiny in many areas, including economic self-sufficiency and particularly in domains of complex technologies, in terms of security and defence, and environmental protection. Somewhat cynically, the current unprecedented energy crisis has prompted many to hark back to the beginnings of the EU, which arose on the pooling of coal and steel, as inspiration for a fresh start. And yet, one has to bear in mind that today’s global circumstances are very different and certainly much more complex, thus making it harder to draw conclusions on the effects of the French presidency.

BUSINESS PARTNER | FRANCE 2022

INTERVIEW

BY LJUBICA GOJGIĆ

FRANCE FAVOURS SWIFT EU ACCESSION FOR

WESTERN BALKANS The European political community concept is by no means an alternative to European Union membership. Its aim is to set up an area of solidarity and cooperation in the fields of security, energy, common investments and transport between EU member states and non-member states that share the same values ~ Pierre Cochard H.E. PIERRE COCHARD

elations between the EU and Serbia haven’t been reduced to just the issue of sanctions against Russia, i.e., foreign policy alignment, says French Ambassador Pierre Cochard in this CorD Magazine interview. He reminds us of the strong ties between Serbia and the EU in the economic domain, the Union’s support to Serbia’s reform processes, and cooperation in the areas of culture and education. However, Ambassador Cochard still emphasises that “progressive alignment with the EU’s common

BUSINESS PARTNER | FRANCE 2022

AMBASSADOR OF FRANCE TO SERBIA

foreign policy is a clear accession prerequisite”, and one that becomes particularly important during times of war and crisis, as confirmation of Serbia remaining “consistent with its European choice”. ■ Your Excellency, France has completed two election cycles, at both the presidential and parliamentary levels. Considering President Emmanuel Macron’s new mandate and the results of June’s parliamentary elections, what

will France’s priorities be, particularly on the European front? - France will remain committed to strengthening the EU’s strategic autonomy and supporting more efficient decision-making processes. We want to respond to the unprecedented challenges we have been facing so far – pandemics, war, food security and climate – while preserving political, economic and social values that characterise the EU. To this end, President Macron shall uphold the priorities he outlined during his previous mandate.

SUPPORT

INVESTMENTS

AFD

France supports the complete normalisation of relations between Serbia and Kosovo, within the framework of the Brussels Agreement

Our bilateral economic relations have entered a new phase and France has become one of the main foreign investors in Serbia, with 2010-2020 FDI stock of €1.3 billion

The mandate of AFD in the Western Balkans aims to support key reforms and investments to facilitate the implementation of the Green Deal and uphold EU standards

forms of cooperation and solidarity in today’s dire context, and the European Political Community is a response to that. This being said, it would only be advantageous for the Western Balkan states to join this community, as well as for countries that are part of the “European family” but have decided to quit the EU or stand aside. This is not a “waiting room” or an alternative to the EU, as I have already heard, rather a loose organisation with high-level political steering, distinct in scope and framework from the OSCE or the Council of Europe, and distinct from the ongoing integration process.

to implement them. The criteria are the same for all, defined during the 1990s. I must admit they are demanding, particularly in the area of the rule of law, which unites all member states in one political entity. Negotiations can speed up significantly if reforms are carried out.

We promote greater political and security integration of the EU, and this has already been underway since the March 2022 adoption of a common strategic compass. The EU shall strengthen its defence capabilities, inter alia by investing in new industrial sectors. We want to accelerate the ecological transition towards carbon neutrality and work towards better strategic independence, including in the fields of health and food supply. We will continue to promote EU enlargement, while at the same time reforming our own decisionmaking process and initiating a reflection on our current treaties. With 27 or 33 member states, the EU cannot function as it did 60 years ago, with six member states. This would ultimately benefit new member states, who would have a better say in a reformed system. ■ Speaking at the end of France’s latest six-month Presidency of the Council of the EU, President Macron again sought to generate interest among the public in the EU and the Western Balkans in the idea of a ‘European political community’, which would enable non-EU members to forge some kind of alliance with the 27 member states. This has prompted many in this region to wonder whether the proposal is yet more evidence that EU enlargement is not a realistic option, at least in the near future. Is the proposed ‘European political community’ a veritable “consolation prize” for the Western Balkans? - The concept of European political community is by no means an alternative to membership in the European Union. Its aim is to set up an area of solidarity and cooperation in the fields of security, energy, common investments and transport between EU member states and non-member states that share the same values. This shall not prejudge the future or their pace of accession. One should bear in mind that this idea emerged in the context of the tragic return of war to our continent. It responds first and foremost to the will of Ukraine, Georgia and Moldova to join the European Union. While Ukraine and Moldova were granted candidate country status on 23rd June, the overall accession process requires lengthy reforms. In the meantime, we call for other

■ With the proposed community in mind, what would France's position be on the recent proposal of Greek Prime Minister Kyriakos Mitsotakis that all Western Balkan countries be admitted to the EU by 2033? - France is fully in favour of a rapid accession of the Western Balkans to the European Union.

Regarding the pace of negotiations, we do not advocate setting a date. Once a country is formally an EU candidate country, the speed of the integration process depends first and foremost on the reforms it carries out and its political will to implement them Not only do we share many common challenges, but the region is also geographically intertwined with the EU. This is a win-win situation and France exerted all of its diplomatic efforts for North Macedonia and Albania to start their long-awaited accession process. Regarding the pace of negotiations, we do not advocate setting a date. Once a country is formally an EU candidate country, the speed of the integration process depends first and foremost on the reforms it carries out and its political will

■ You have spoken publicly often about the need for Serbia to fully align with the EU’s common foreign policy and impose sanctions against Russia. Has the relationship between the EU and Serbia now been reduced primarily to this issue? - Thankfully, the relationship between the EU and Serbia is not reduced to this issue. Today, the EU remains Serbia’s main economic partner and accounts for around 60% of its trade. Many reforms have been carried out in the fields of the economy, security and border management, as well as health and education. I also commend the constitutional reform in the field of Justice, which shall pave the way – provided it is implemented effectively -- to improved transparency and rule of law. Serbia is already included in the EU in many ways: we have an agreement on the free movement of people, as short-term visas are not required for Serbian travel to the EU and vice versa. Serbia is part of a common education space that facilitates the recognition of diplomas and student mobility. It takes part in EU peacekeeping operations abroad. It benefits from very substantial EU funds in support of the accession process. However, progressive alignment with the EU’s common foreign policy is a clear accession prerequisite, and has been from the very start. In times of war and tragedy on our continent, it is even more important and urgent, as unity is absolutely needed to safeguard the international order and – in the present case – stop the Russian aggressor from committing atrocities in Ukraine. Ultimately, it is not only and not mainly a question of “alignment”. We just expect Serbia to be consistent with its European choice and, apart from condemning an unprovoked aggressive war against Ukraine, which Serbia did, to draw all necessary conclusions from the unacceptable threat to European values and European security posed by the current Russian regime. BUSINESS PARTNER | FRANCE 2022

■ Would you accept Serbia’s argument that it needs to be exempt from sanctions if it is to preserve energy and economic stability, as has been accepted in Hungary’s case? - Allow me to specify: Hungary voted in favour of all EU measures taken against Russian authorities. It, however, did benefit – together with other EU member states – from specific adaptations, considering the need to

preserve its energy and economic stability during a necessary transition phase towards energy diversification. Likewise, the interests of Serbia were fully taken into account in April, as it was exempted from EU sanctions against Russian oil companies operating abroad. NIS, which is majority-owned by Gazprom, could continue importing the crude oil transiting Croatia. We are working with Serbia on the diversification of its energy sources: a new gas interconnector with Bulgaria is under construction, financed by EU funds, and we are in the process of launching a new initiative to build another connector for Serbia in cooperation with North Macedonia, for a better connection with Greece. More generally, the EU has committed to respond to the challenges of acceding states by supporting their energy transition, but also – in the shorter run – by inviting them to join a common gas purchase platform that is being set up for all EU member and future member states. ■ You have stated on multiple occasions that you believe in Serbia’s EU future. Does France also support the stance – presented in Belgrade recently by German Chancellor Olaf Scholz – that it is essential to achieving membership that Serbia recognise the independence of Kosovo? - France supports the complete normalisation of relations between Serbia and Kosovo, within the framework of the Brussels Agreement. This should take the form of a legally-binding agreement that is acceptable to both parties, in line with international and EU standards. It seems early to define which form this will take exactly – it shall be discussed constructively between the authorities in Belgrade and Pristina, with the support of Special EU Representative Miroslav Lajčak. France calls for this dialogue to continue at a faster pace. The agreement struck on 21st June in the field of energy is a crucial step forward, which we commend. 8

BUSINESS PARTNER | FRANCE 2022

I hope this will provide more impetus to the dialogue, which has been at a virtual standstill for too long. ■ The previous years have been marked by activities aimed at advancing economic relations between France and Serbia, with the Belgrade Airport concession and the contract to construct the city’s urban metro system representing the two biggest projects. Have these two projects essentially brought the two countries closer together in terms of business? - Thanks to two major projects signed in 2017 and 2018 (Belgrade Nikola Tesla Airport with Vinci Airports; Vinča solid waste treatment facility with Suez Environment), our bilateral economic relations have entered a new phase and France has become one of the main foreign investors in Serbia, with 2010-2020 FDI stock of €1.3 billion. These two infrastructure projects also include many other French and Serbian companies that employ people locally and contribute to transferring our knowhow to the Serbian economy. They are Public-Private Partnerships awarded in the form of 25-year concessions, which is still rare in Serbia and the region and could serve as a model for other regional infrastructure projects. Another major project to come is, as you mentioned, the Belgrade Metro, which involves many French companies (Egis Rail for the studies, Alstom for the transport system or RATP Dev for the management and operation of the network) and has received significant financial support from France. French companies collaborate with their Serbian counterparts in the fields of training and technology transfer. This cooperation fosters our economic ties, as Serbia is now better known to French investors and companies. Our bilateral trade reached €1.2 billion in 2021, while approximately 120 French companies operate in the country. ■ What are the current priorities of the French Development Agency, AFD, which established its presence in Serbia three years ago with the aim of increasing French engagement in the country? - The mandate of AFD in the Western Balkans aims to support key reforms and investments to facilitate the implementation of the Green Deal and uphold EU standards. It focuses on projects that have a positive environmental outcome and social impact. To this end, it launched a fruitful dialogue with the Serbian authorities and the private sector which resulted – in less than two years – in financial support of more than €400 million to benefit public policies and infrastructure modernisation programmes. AFD focuses on the transport and mobility sector (modernisation of the railway sector, urban mobility and local connectivity projects), solid waste infrastructures throughout Serbia and support for climate change policies. It has committed to invest at a comparable pace in the coming years. In this spirit, many new projects are currently under preparation, in the fields of energy and water management – areas in which France has demonstrated significant expertise worldwide. ■ Speaking on the occasion of a recent meeting with representatives of French companies in the country, Serbian PM Ana Brnabić said that investments in the field of environmental protection, energy and green transition have the greatest potential for further cooperation. Are there French companies interested in making such investments in Serbia? - The answer is yes. Environmental protection and green infrastructure are part of our trademark and a priority of French businesses abroad. There is strong political will in France to support public incentives in this field

worldwide. French companies are already active in these sectors in Serbia, such as Veolia, which I already mentioned, or Suez Environment in the field of water. In the energy sector, French companies like EDF and Schneider Electric are working on a smart grid project together with Serbian operator EDS. Likewise, EDF visited recently Serbia at the request of the Serbian authorities to discuss potential new collaboration in the field of nuclear energy. Other French groups also promote renewable energy projects (wind, solar and geothermal) and regularly come to Serbia.

videogame creators) and “IT makes SciENSE”. We continue to promote French language proficiency thanks to seven bilingual sections in Serbian schools, but also – since 2020 – a larger network called Volim Francuski, which benefits around 50 secondary schools and more than 10,000 pupils. Our cooperation with Serbia is intended to function in a synergistic way. For instance, the French Film Festival held annually in Belgrade introduces new achievements of French cinematography to the Serbian public, while simultaneously promoting the French language.

■ You announced the promotion of cooperation in the fields of culture, education and science as being among your priorities in Serbia, as well as encouraging the studying of the French language. You also spoke about this recently with students of the bilingual department of a school in Pirot. How can these priorities be achieved?

■ Belgrade’s Institut Français, formerly the French Cultural Centre in Belgrade, is one of the mainstays of cooperation in the field of culture, but has also represented a recognisable centre at the heart of Belgrade for more than 70 years. Are the plans and scope of the Institute’s activities in the Serbian capital changing and evolving? - The French Institute of Serbia, in Belgrade, is indeed located in a very recognisable city centre building. We have been modernising our premises over the past few years and intend to pursue new digital equipment in 2023. Our branch in Niš is the only European foreign institute to actively cooperate with local authorities throughout Southern Serbia. The new premises of the French Institute of Novi Sad, inaugurated on 22nd June, also symbolise our ambitions. Our plans and scope remain large, as we want to reach our public across the whole of Serbia, not only in Belgrade, Niš and Novi Sad. That’s why we cooperate with many municipalities and local cultural centres, in order to bring them French culture and opportunities. This takes forms such as touring exhibitions or festivals, but also partnerships with schools and universities inter alia.

Serbia is now better known to French investors and companies. Our bilateral trade reached €1.2 billion in 2021, while approximately 120 French companies operate in the country - In the field of culture, we have been supporting Novi Sad European Capital of Culture, with activities ranging from a contemporary circus or Street Art, to comics. In the field of education, we promote several new programmes and initiatives, such as “Study in France – Work in Serbia”, the Serbian-French Innovation Forum, Playing Narratives (a training programme for young

BUSINESS PARTNER | FRANCE 2022

INTERVIEW

WE RESPOND TO CHALLENGES WITH

ENTHUSIASM AND HARD WORK DRAGAN STOKIĆ

President of the French-Serbian Chamber of Commerce (CCIFS)

DESPITE THE CRISIS, WE REMAIN OPTIMISTIC, AND WE BELIEVE WE CAN CONTINUE TO WORK ON BRINGING FRENCH COMPANIES TO SERBIA. DESPITE THE CHALLENGES, WE EXPECT CONTINUED ECONOMIC GROWTH IF WE CONTINUE TO PRESERVE BUSINESS, VALUE INITIATIVES AND REWARD ENTREPRENEURSHIP 10

BUSINESS PARTNER | FRANCE 2022

PROGRESS Serbia has been working very clearly for a long time to improve the business environment and implement important reforms in various sectors, and the results are increasingly visible

ECOLOGY Throughout 2022, CCIF will work on a project called The Quest for Net Zero, which aims to support the Serbian economy in becoming more resource efficient and competitive

■ All companies in Serbia, both domestic and foreign, face great challenges, and the effects of new threats coming from the global environment cannot yet be fully seen. This is the view of Dragan Stokić, President of the French-Serbian Chamber of Commerce (CCIFS). He believes, however, that with a smart combination of measures, the commitment of the business community and good cooperation with the Serbian government, the consequences of the war in Ukraine, inflation and disturbances in global supply chains can be at least partially reduced, as the pandemic experience shows. - The year behind us was a lot more stable in terms of state economic indicators and the Serbian economy's performance. I believe that the main reason for that is the fact that economic entities in Serbia have fully accepted the 'new normality', and with the activeness of the business community and all the measures of the Serbian Government, the economy successfully overcame the challenges of 2021,” says our guest. "Unfortunately, the new crisis in Ukraine follows on from the previous one, so the impact of the war in Ukraine is something that we have yet to measure in its impact on the business environment. As everywhere, French companies in Serbia have had to change the dynamics of business and adapt to new working conditions caused by current crises, pandemics, war, inflation, rising commodity prices and worsening problems in the supply chain, which certainly have a negative impact on the economic outlook, it is just still unclear to what extent. ■ In the Covid-19 period, the Government of Serbia had a prominent role in supporting companies to overcome challenges. Is today a new time for state intervention, and which companies should be helped as a priority? - With the hard work of entrepreneurs, managers and all employees, the help of the Serbian Government was indispensable to solve the problems caused by the pandemic, especially for small and medium enterprises which, besides corporations, make up a large percentage of our members. Small and medium enterprises are the backbone of the Serbian economy and it is extremely important for us to fight for support to those companies and help them overcome the difficult period they are going through and which still lies ahead. An unavoidable issue in which the government plays a major role is to provide a better business environment and improve the conditions for economic growth. We believe that the government should also consider special incentives for export-oriented Serbian producers, especially these small and medium-sized domestic companies that have export potential but still do not export. To this end, we also act as a Chamber that facilitates the business of our member companies, through the many initiatives we have taken and which we will continue in the future.

NETWORKING Our Chamber has the capacity to be active in both directions of trade cooperation, so our activities are aimed at relevant economic actors in France and Serbia

■ What are your members' expectations of business results in 2022? - Unfortunately, the war in Ukraine poses another negative risk to the economic projection. The war has caused an increase in the prices of almost all commodities around the world, because Russia and Ukraine are globally important exporters of fossil fuels, metals and food. Despite the crisis, we remain optimistic, and we believe we can continue to work on bringing French companies to Serbia, and we to expect economic growth despite the challenges, if we continue to preserve business, value initiatives and reward entrepreneurship. ■ To what extent can measures to improve the business environment in the country reduce the consequences of external negative trends? - Serbia has been working very clearly for a long time to improve the business environment and implement important reforms in various sectors, and the results are increasingly visible. In addition to infrastructure, energy and agribusiness, which are of interest to French companies by default, certain innovative sectors, with state support, offer very attractive perspectives, such as the digital and IT sectors.

The priority for our Chamber will be to intensify our activities on the French market, which means a greater presence of the Chamber at, for us, important business events in France, and especially direct meetings with companies Further movement of economic trends will depend on the consequences of the crisis, war and tensions between Russia and the West in the coming period. Certainly, Serbia and we continue to work to reduce the consequences of this war on the entire business environment, as much as we are able. ■ What are your priorities as president of the CCIFS? - My priorities will be to actively continue to develop projects to support French companies, and to further promote Serbia in France as the economic centre of the Western Balkans region, and to further strengthen the voice of CCIFS in Serbia. This year, we also launched a project called The Quest for Net Zero, to focus on harmonizing the Serbian economy with the EU's Green Agenda. Sustainable development should be a priority for every company and individual in Serbia. Also, given the importance of BUSINESS PARTNER | FRANCE 2022

the application of digital technologies as an imperative for the sustainability of successful business entities today and in the future, and the importance attached to this initiative by the Serbian Government, we will also continue to strengthen the Chamber's activities and those of its member companies in that direction and work on their greater visibility. I invite all French and Serbian, but also international companies to join us and discover our 'French touch', a unique combination of efficiency and hedonism, and improve their business through interaction with one of the most dynamic business communities in Serbia. ■ What can CCIFS do to establish Serbia as the economic centre of the Western Balkan region in France? - The priority of our chamber in the coming period will be to intensify our activities on the French market, which means a greater presence of the Chamber at, for us, important business events in France, and especially direct meetings with companies. In this way, we actually want to meet the needs of French companies and present the potential of the local market in a targeted way. In May, we represented Serbia and its business potential at one of the largest industrial fairs in Paris. On the other hand, we also want to improve the visibility of Serbian companies and make it easier for them to enter the French market – with concrete support in mergers with French partners, market research, organising B2B meetings. Our Chamber has the capacity to be active in both directions of trade cooperation, and we believe it is crucial to be present and wellnetworked with relevant business actors in both countries.

strives to provide members with true quality and useful events in various formats (training, conferences, round tables, networking events, business receptions, member meetings, exclusive events etc.), and which has the reputation of a dynamic and memberoriented chamber. I believe that we are among the most active and most innovative chambers in Serbia, one that really has a personal stamp and feeds our specific spirit, which is a combination of business and hedonism a la française, and that is what the members tell us every day. In that sense, listening to the wishes of the members, we organise events according to their needs, and we always try to enjoy our events, to be useful to their business, to make important contacts and to create an atmosphere for them to remember. According to a recent survey of members, it seems to us that we are succeeding in that.

■ What's the goal of The Quest For Net Zero project and how does it align with the Green Deal? - One of the challenges that needs special attention today is the protection of the environment and sustainable development, in which we in Serbia are lagging behind the European Union. For this reason, the French-Serbian Chamber of Commerce decided to launch a project called The Quest for Net Zero in order to support the I invite all French and Serbian, but also international companies Serbian economy and to contribute to making it more resource efficient and to join us and discover our competitive. Under this programme, 'French touch', a unique under the auspices of our club for combination of efficiency and sustainable development, the first hedonism, and improve their business conference on the theme of 'Climate-Neutral and Smart Cities' business through interaction was held. This conference, organised with one of the most dynamic by the French-Serbian Chamber of business communities in Serbia Commerce in cooperation with the French Embassy in Serbia, is the first ■ You recommended everyone discover the 'French in a series of events of the The Quest for Net Zero project inititouch', a unique blend of efficiency and hedonism. What ated by the CCIFS Club for Sustainable Development with the exactly does this mean with regard to the philosophy purpose of harmonising the Serbian economy with the EU Green Deal. This programme is, and will be, in focus throughout 2022 of work brought by French companies? - Today, the French-Serbian Chamber of Commerce is an active and will include conferences, webinars and regular meetings at business institution, with more than 130 members, both French which the main topic will certainly be ecology and environmental and Serbian companies. It is a business association that offers protection. We also plan to launch major CSR action with chamber its members and partners more than 40 events a year, and which members by the end of this year. 12

BUSINESS PARTNER | FRANCE 2022

INTERVIEW

OUR DOOR IS

ALWAYS OPEN Since the beginning of the coronavirus crisis, and the supply chains difficulties it brought, we have been working actively to inform French companies that there is no need to go beyond Europe in search of high quality and competitive manufacturing SANJA IVANIĆ GENERAL DIRECTOR, CCIFS

he French-Serbian Chamber of Commerce is here to make it easier for all companies interested in Serbia and the region to enter this market, says CCIFS General Director Sanja Ivanić. Chambers of commerce have an important role in encouraging economic development, because they represent the voice of business and have the capacity and knowledge to turn its demands into concrete actions. “Our Chamber is a reference partner for all French companies, not only in Serbia but throughout the region – we operate directly in countries where there is no French Chamber, or we cooperate with partners, clubs or French chambers in countries in the region and beyond. We are also the operational partner of Business France, the French national agency that serves the internationalisation of the French economy. In that sense, we have a certain 'weight' with institutional partners in Serbia and the region, and they are always willing to listen to us and help. This

BUSINESS PARTNER | FRANCE 2022

also enables our members greater visibility and access to 'first hand' information,” explains our interlocutor. ■ To what extent has CCIFS returned to its working mode from before the pandemic? What practices did the pandemic bring that you regard as a good experience worth keeping? - The most important factor that made this year successful in the activities of the Chamber is that we have completely returned to our way of doing business, we have adapted to the changing circumstances, and step by step we began to return to live events, which delighted everyone – organisers and guests. However, I would like to emphasise that this year we also held a series of online events, and attendance and interest was not lacking. This is an indication that we have chosen good topics and even better panelists, given the real oversaturation of online events. The good thing

IMPRESSIONS Our Chamber is a reference partner for all French companies, not only in Serbia but also in the region, and it operates directly in countries where there is no French Chamber

REPUTATION The partnership with Business France Carries us a certain 'weight' with institutional partners in Serbia and the region. They are always willing to listen to us and help

SUPPORT The Chamber will do its best to continue to support French companies interested in the Serbian market and to offer our growing network of members the chance to create new business opportunities

brought by working under pandemic conditions is that it enables the participation of speakers who are located in different parts of the world. ■ Which CCIFS activities would you highlight in the coming period? What's new in this field? - In the past, we have been very active, both with events for our member companies and supporting companies from France. Of the upcoming activities, we could single out a project that is in our special focus this year, The Quest For Net Zero and all its activities, in addition to webinars, meetings and a successfully-held first major conference. In November we will complete the story and organise a final conference entitled The Green Transition, where we will finalise everything we have done on that issue so far, including a CSR action in which we plan to involve a large number of chamber members. French Week always remains attractive with all its events, and this year it opens with the evening of Beaujolais wine, held traditionally on the third Thursday in November. We are also continuing with the Bonjour Serbia event which is a tour of Serbia with our members. ■ What did the BONJOUR SERBIA event bring us, and in which cities can we expect it by the end of 2022? - From the beginning of the year, we've visited Kragujevac, Kikinda and Niš, and by the end of the year we'll visit Novi Sad and Zrenjanin. Bonjour Serbia first brought us great acquaintances, good contacts, new knowledge about the regions of Serbia and their potential; we got to know local institutions and projects and had a good time with members and partners. We also visited French factories operating in the regions we visited, Le Belier and Mecafor in Kikinda, and the giant Tigar Tires in Pirot. Until the end of the year, we will visit Novi Sad, the capital of culture, where we will get to know Vojvodina in greater detail, where French companies are very present and where France is the second largest investor, and we will leave Zrenjanin for the end of the tour. ■ Which of your activities attract new members the most? What makes CCIFS stand out in the very wide range of business associations? - I think that our strength lies in the variety of services and events we offer. Of all the events we organise, I would like to single out our glamorous Gala Evening and Beaujolais Evening, for which 'an additional ticket' is always needed. Judging by the impressions of the guests, I believe that these two events have special significance for our members. They often mention that we are the bearers of joie de vivre, the French spirit that makes our events special. In short, we listen to what the members want and try to put those wishes into practise. ■ At one of the gatherings of Bonjour Serbia, we had the opportunity to hear that 80% of French companies in the

Serbia is the most attractive country for French companies in the Western Balkans and many of them do business in the surrounding countries from Serbia region are concentrated in Serbia. Are French companies considering reallocating production capacity in the region? - Serbia is the most attractive country for French companies in the Western Balkans, and many of them do business in the countries surrounding Serbia. Since the beginning of the coronavirus crisis, and the supply chains difficulties it brought, we have been working actively to inform French companies that there is no need to go beyond Europe in search of high quality and competitive manufacturing. We recently participated in Global Industry, one of the largest industrial fairs in the world, and Serbia was very successful as a destination. The Chamber is here to make it easier for all companies interested in Serbia and the region to come to this market, and we are successful in that, because we are contacted not only by French companies, but also other foreign companies, and we have worked with Koreans and Americans. BUSINESS PARTNER | FRANCE 2022

BUSINESS

VELJKO STOJANOVIĆ, DIRECTOR, ATALIAN GLOBAL SERVICES RS

QUALITY GOES

WITHOUT SAYING Atalian Serbia is part of a large multinational with more than 131,000 staff in 36 countries that's capable of providing top services in Facility Management, from hygiene and technical maintenance, to construction work and energy management. ■ Quality in all areas of business is the main characteristic of your company. Is quality also the reason for all your business results and success? - Quality is something that goes without saying, but also precision in the execution of agreements and contracts. The commitments we have made to our staff are the key to the success of our business. It should be assumed that high quality has a certain price, but sometimes it is very difficult to match the requirements of our customers. Due to the vast experience that Atalian has globally, we can be competitive in our market through optimising various processes and applying the right techniques and active technologies.

ue to its vast global experience, Atalian can be competitive on our market through optimising various processes and applying the right techniques and active technologies. They differ from their competition in precision, seriousness and long-term cooperation with clients. ■ You operate on four continents and have huge human capital. Is this not both a great relief and advantage, on the one hand, and a great obligation and responsibility, on the other? - Of course it is a great relief to have such a large international company behind you, especially such a financially powerful one, but it is of course a great obligation and responsibility because in such companies all processes and protocols are regulated, this is the way of doing business. The way it works must be identical no

BUSINESS PARTNER | FRANCE 2022

Thanks to global contracts with suppliers, state-of-the-art machinery, equipment and chemicals, we can create an efficient work plan for each client that achieves the best results matter what country you are in. This requires some trade-offs with local clients. It is a huge responsibility because Atalian is recognised as a global brand and you deal with international companies with which Atalian cooperates. There are several countries in question, and any mistake would be reflected on those companies in other countries as well.

■ What do you offer? What services do you provide? - We offer all facility management services: technical maintenance, hygiene maintenance, construction work, horticulture, reception service, security, etc. ■ What makes you different from your competitors and what makes you a more desirable partner? Is it a global experience, a way of working and organising, using modern machines and equipment ...? - Precision, seriousness and long-term cooperation with our clients is something that distinguishes us from the rest of the competition on the Serbian market. We try to make a partnership with all our clients, to achieve long-term cooperation that is in our mutual interest. Atalian's global experience certainly helps us here, and we apply the ways of working and the organisation that has proven to be optimal in every field of business. Thanks to global contracts with suppliers of modern

machinery and equipment, we can create an extremely individual work plan for each client and appropriate technique and chemistry. What sets us apart from the competition is our commitment to our staff and their satisfaction in fulfilling all our obligations with dedication. ■ We know that in Serbia you have more than 1,000 agents who are 100% committed to your clients. Does this mean that you can design solutions that are tailored to their needs and requirements? - We talk in detail with each client about their needs and requirements, we try to come up with

It is crucial that our agents are satisfied, because then they will have a reason to be completely committed to their clients and to meet all their requirements with full understanding the best solutions through our experience and theirs, to adapt to their needs and requirements, always keeping in mind the maximum quality, minimum costs and staff satisfaction. It is crucial for our agents to be satisfied, because then they will have a reason to be completely committed to their clients and to meet all their requirements with full understanding. Our references can confirm the quality of our service. ■ Speaking of clients, with whom do you cooperate in Serbia? Which services are most in demand on our market? - We currently have the best portfolio in Serbia. I would like to list just some of the most im-

portant: Philip Morris, Coca Cola, Hemofarm, Brose, Michelin, Atlantic Group, Dr. Oetker, Nelt, Yazaki, Continental, Lear, as well as a large number of other respectable companies in Serbia. ■ How do you deal with labour shortages? - Atalian registers its staff for the full amount of salary, salaries are paid to employees by

the 10th of the month for the previous month, we respect the labour law on payment of overtime and work at weekends and on public holidays. We also organise training for our staff, stimulate and reward their work; in short, we invest in our staff, because they are a mirror of our company. I would like to mention, once again, that the satisfaction of our staff is most important to us, because it impacts directly on customer satisfaction.

BUSINESS PARTNER | FRANCE 2022

INTERVIEW

FRENCH IS THE LANGUAGE OF CULTURE, LOVE,

BUT ALSO CAREERS STANISLAS PIERRET

COUNSELOR FOR COOPERATION AND CULTURE AT THE EMBASSY OF FRANCE, DIRECTOR OF THE INSTITUT FRANÇAIS IN SERBIA

During the 19th century, the Institut Français was more than ever an oasis of Francophone culture, and a symbol of freedom in a pandemic. We are using this wonderful summer to renew old connections with the general public, and establish new ones, through various events. And we invite them to visit us and take advantage of our resources

or two long years, there was almost no travel. But admirers of the Institut Français were able to travel virtually to France during that time and mix with French culture. “It was a period when the French Institute was more than ever an oasis of Francophone culture, a symbol of freedom in a pandemic. We were one of the first cultural institutions that, aware of the need to support all cultural actors, creators, performers, writers and their fans, moved their activities to the virtual sphere and continued to work even more intensively to promote Francophonie and French”. This was how our conversation began with Stanislas Pierret, Counselor for Cooperation and Culture of the French Embassy and Director of the Institut Français in Serbia. “We managed to organise our traditional events virtually, but also many debates related to current world topics. We switched to online language classes, which, thanks to our dynamic teachers, not only maintained the quality of teaching, but also attracted an even larger number of interested people throughout Serbia.”

■ Recently, during the French Presidency of the European Union, we had the opportunity to host a major academic 18

BUSINESS PARTNER | FRANCE 2022

conference on the future of regional cooperation in the Balkans and European integration. In light of the current moment, which conference messages would you highlight? - We organised the conference with the valuable help of Serbian experts, but the idea was to give it a regional character, so we included lecturers from other countries, with the great support of European organisations. Particularly during this period of Russian aggression against Ukraine, it is important to discuss European issues and the Balkan countries for which the issue of reconciliation is crucial on the road to the EU. I would like to emphasise the speech on reconciliation given by Turkish lecturer Ahmet Insel, who spoke about the importance of trying to improve Turkey's relations with Armenia and Cyprus. Reconciliation is an essential European value. It is important to learn from the past, as Germany has. Germany and France, former enemies, have taken a big step and built the EU on the basis of their reconciliation. This conference provided an opportunity to hear the opinions of experts, and one of the important goals of its organisation during the French Presidency of the Council of the EU was to arouse young people's interest in cultural diplomacy and any other form of diplomacy.

EUROPEANNESS

RESOURCES

COOPERATION

Particularly during this period of Russian aggression against Ukraine, it is important to discuss European issues and the Balkan countries, for which the issue of reconciliation is crucial on the road to the European Union

Our digital library enables everyone in Serbia to always be in contact with French culture, providing them with a wealth of French press, recordings of lectures and plays

Our intention is for as many French universities and renowned schools as possible to visit Serbia, meet partner universities and promote their study programmes with students

■ At the time of this conversation, the French Film Festival is taking place in the open air. Have you gone back to the pre-Covid era with all your activities? - Yes, we wanted to use this wonderful summer to renew old connections with the general public, and establish new ones, through this event. Screenings of these exceptional French films in Kosančićev Venac and Silosi give a new, qualitative dimension to these spaces, contributing to giving a new shine to these unique venues of Belgrade's cultural life. During the past two years, we have started the renovation of our media library in Belgrade, the first works were recently completed and we got a new, more attractive entrance to its premises. In addition, our French Institute in Novi Sad will soon open at a new site. We believe that these changes will encourage even more fans of Francophonie to come, use our rich content and follow our activities. Our branch in Niš is also actively working to promote the French language and contemporary French culture. ■ How popular is learning French today in Serbia? Is French still the language of love today or the language

that students from Serbia want to master to achieve their professional or business aims? - Although today French is taught relatively less in schools than before (especially if we compare it with the time, for example, between the two world wars), that does not disturb the beauty of the Francophone image in Serbia, because those who start learning French in Serbia reach incredibly high levels. Writers Pierre Assouline and Tahar Ben Jelloun, who recently visited the Molière Days and attended the final meeting of French language students for 'Serbian Students' Choice of Goncourt (an award given by students to one of four books from the last selection for the French Goncourt last year), were delighted by their critical spirit and sophistication of expression in French, which they have rarely met on their many literary tours around the world. High schools where bilingual French-Serbian teaching has been introduced, and the French school in Belgrade, are nurseries of Francophonie in Serbia. Yes, French remains the language of culture, love, art, but it is also increasingly the language of careers. There are many French companies in Serbia that give preference when hiring to those who know our language.

BUSINESS PARTNER | FRANCE 2022

Erasmus projects, and we want to connect as many higher education institutions as possible in this way, especially since the Western Balkan region is one of France's priorities in this field. Every year, we set aside about 270,000 euros for scholarships and award around 30 scholarships from the Government of France for master 2 levels or co-mentored doctorates. At the end of last year, our new project Study in France, Work in Serbia started, with which we want to encourage scholarship holders and students who went to study on their own to return and work in Serbia after their stay and experience in France. Through the programme of short scientific residencies in France "It makes s(ci)ense", we want to strengthen cooperation between the scientific institutions of both countries and enable researchers from Serbia to go to France for 15 days and visit their partners for joint projects. In April this year, we organised the Serbian-French Innovation Forum, the goal of which is to establish cooperation between Serbian

Through our new project Study in France, Work in Serbia, we want to encourage scholarship holders and students who went to study on their own to return and work in Serbia after their stay and experience in France and French start-ups. There is also a call for applications for projects for the bilateral scientific cooperation program Pavle Savić, which has been connecting French and Serbian laboratories for many years. Under this programme, the French and Serbian sides have since 2003 jointly funded more than 150 projects, which have been the starting point for developing more intensive co-operation through competition for various European projects.

Stanislas Pierret and Vladimir Marinković, director of a branch of the French Institute in Novi Sad

■ The Campus France Serbie branch in Belgrade was closed for a long time due to the pandemic. What news do you have for all those who want to continue their higher education in France? - Student mobility in both directions is very important for France. In our institute, students and their parents can come to the Campus France office, which will soon receive a more modern makeover, and receive all the necessary information and valuable help, with various tips on procedures and enrolment if they want to study in France. For a while, students could not physically visit us, due to the pandemic measures, but we always kept in touch with them by email, phone or online. This year, several important French educational institutions participated together with us in student fairs, and our intention is for as many French universities and renowned schools as possible to visit Serbia, meet partner universities and promote their study programmes with students. University cooperation is also realised through joint 20

BUSINESS PARTNER | FRANCE 2022

■ How successful have you been in maintaining a dynamic university collaboration despite the challenges of the pandemic? - I hope the pandemic is behind us. We have been very careful, but now we are starting activities again. The fact that students were allowed to enter France all the time, regardless of pandemic measures and strict isolation, shows how important students are to us. For researchers, the trip was more demanding, but thanks to new technology, contact was maintained and everyone is looking forward to renewed activities. ■ How many young people a year gain the opportunity to expand their knowledge through competitions and scholarships? - Every year, about 650 students decide to continue their higher education in France. Our institution awards about 30 scholarships for long stays, but there are other scholarships, such as those from higher education institutions, companies, French regions and municipalities. I would like to single out the 'Dositej' Scholarship of the Fund for Young Talents of the Ministry of Youth and Sports of the Republic of Serbia. Students who choose to study in France can also use this scholarship. If they receive it, they can count on it as an additional scholarship that can cover the costs of college enrolment and social insurance.

BUSINESS PARTNER | FRANCE 2022

FRENCH PRESIDENCY OF THE COUNCIL OF THE EUROPEAN UNION

EUROPE’S SOVEREIGNTY

AT HEART

As French President Emmanuel Macron spelled out, the French Presidency of the Council of the European Union focused on recovery, strength and a sense of belonging. It embodied Europe’s key priorities: cooperation, sovereignty and strength to speed up the green and digital transitions by 2030 and stimulate economic recovery

t was on 1st January 2022 that France took over the rotating presidency of the Council of the European Union with three main themes in its focus: Europe’s sovereignty; climate, social and digital transition; and Europe for 2030: investment, values, youth, culture, health. French President Emmanuel Macron explained the focus of the Presidency with three words: ‘recovery, strength, belonging’, in an effort to embody Europe’s key priorities: cooperation, sovereignty and strength to speed up the green and digital transitions by 2030 and stimulate economic recovery.

BUSINESS PARTNER | FRANCE 2022

France also focused on emphasising the need for Europe’s technological sovereignty and the relocation of its flagship industries in Europe, such as in the fields of hydrogen production, batteries, semiconductors, outer space, cloud infrastructure technologies, defence and healthcare. However, a more sovereign Europe also means completing the green and digital transitions, building a more social Europe on the basis of the principle of “equal pay for equal work in the same workplace”, European defence integration through the first joint military budget and the European

Intervention Initiative and strengthening the European economy. These goals were formed on the basis of the wishes of European citizens who, according to President Macron, wish for the EU to take more action and work on economic issues, ecological matters and defence integration. The French agenda was based on President Macron’s 2017 Sorbonne speech. The Presidency aimed to provide the final version of the Platform Work Directive, i.e., the economic regulating and accountability of work platforms, as well as the establishment of carbon pricing for imported products at EU borders. This is an issue of economic and ecological efficiency and establishing European legislation on minimum wages. Furthermore, the French Presidency aimed to complete the groundwork for far-reaching changes, such as devising a new growth and investment model for the European Union and the euro area; protecting European values by fortifying democratic values and tools, and expanding the Erasmus programme; introducing intellectual debates bringing together some 100 academics from 27 countries in all subjects of concern to the future of Europe and placing a greater focus on health. When it comes to the Sovereign Europe gaol, this implies strengthening the Schengen area, protecting European borders, controlling migration and improving the asylum policy in line with Europe’s values and the EU’s international commitments; building a stronger Europe that has an improved capability to take action in the fields of security and defence; taking action for the prosperity and stability of its neighbours,

particularly through its engagement in the Western Balkans and its renewed relationship with Africa; and by bringing forth solutions to global challenges. The new European growth model focuses on making Europe a land of production, job creation, innovation and technological excellence, where economic development is aligned with climate goals, supports innovation and the growth of European digital players and sets its own rules for the digital world. Furthermore, it has to offer highquality, high‑skilled and better-paying jobs. This Europe also has to be more humane and more eager to listen to the concerns expressed by its citizens through the Conference on the Future of Europe; able to defend the rule of law and uphold its values; and take pride in its culture, science and knowledge. These priorities represent a continuation of the achievements of the preceding Slovenian Presidency and are aligned with the broader programme of the trio of presidencies codeveloped with the upcoming Czech and Swedish presidencies. When it comes to achievements, the French successfully concluded negotiations with the European Parliament on the Digital Markets Act (DMA) and the International Procurement Instrument (IPI), but no agreement was reached among the governments of member states on the directive to implement

the global corporate minimum tax in the EU, which the French presidency has hoped for. In a success for the French Presidency, negotiators from the EU Parliament, member state governments and the EU Commission agreed on the minimum wage directive, defining a framework for adequate statutory

its better alignment with the new legislative framework – the EU’s legislation regulating market surveillance and conformity assessment procedures. The changes also relate to the designation of competent authorities and the high-risk AI database. The final text is still being debated.

The new European growth model focuses on making Europe a land of production, job creation, innovation and technological excellence minimum wages where they exist and pushing member states to strengthen collective bargaining. The final text of the directive on adequate minimum wages states that statutory minimum wages could be considered sufficient provided they are set at a level of at least 60% of a country’s median salary or 50% of the average. Furthermore, the French Presidency saw the groundwork completed for the 'Health Union', with the joint declaration known as the ‘Grenoble Declaration’. It sets a proposal for a European public health strategy focused on turning Europe into the leading continent in terms of “purchasing, producing and donating vaccines”. France also proposed several changes to the Artificial Intelligence (AI) Act, to ensure

The French Presidency also pushed for a faster agreement on the regulating of batteries. The batteries regulation aims to regulate the entire life cycle of batteries and promote the implementation of a circular economy. The presidency presented a progress report in mid-June on the state of play regarding the proposed directive on improving working conditions in platform work. The goal of the proposed law is for people working through digital working platforms to be granted a legal employment status that corresponds to their actual work arrangements – and thus enjoy the labour rights and social benefits to which they are entitled. All activities undertaken during the 2022 French Presidency can be found at https:// presidence-francaise.consilium.europa.eu/en/

BUSINESS PARTNER | FRANCE 2022

BUSINESS

DEJAN MAJIĆ, MAMA SHELTER BELGRADE GENERAL MANAGER

MINI EUROPE AT THE

HEART OF BELGRADE Ever since the 2008 opening of the Trigano family’s first Mama Shelter in the east of Paris, its completely new concept of hospitality for modern travellers has been developed and perfected. The group currently has a total of 677 rooms, six restaurants and around 450 employees across three countries and six cities, including Belgrade

us because of our energy, hospitality and subtle shift from classical hotels and restaurants. I can state unreservedly that Mama Shelter Belgrade is a mini-Europe. I think that our fellow Belgraders like that tone; that they have the impression of being somewhere in Europe when they come to our place. That’s also recognised by foreigners, while they also have the opportunity to see and familiarise themselves with the local population. I think it’s the fusion of Europe and Belgrade at Mama Belgrade that has enticed more than a million visitors over the past four years.

he secret of the success of Belgrade's most famous “shelter”, which has welcomed more than a million guests over the last four years, can be found in each of its 125 vibrant, colourful and luxurious rooms designed by the famous Jalil Amor, in its superb cuisine and even more perfect service, in the performances of the best DJs and in its views of the most beautiful sunset in Belgrade. Still, Mama Shelter Belgrade General Manager Dejan Majić believes that the decisive factor ensuring uniqueness is the fact that they give their all to make sure their guests feel at home. ■ Apart from its superior service, the Mama Shelter hotel brand is characterised by its original, eccentric design, casual chic look and French charm, which is “spiced up” here with our own Belgrade spirit. What else makes Mama Shelter special? - Although I would add that we’re also renowned for our excellent cuisine and performances of the best Belgrade DJs, I would like to believe that our uniqueness comes from our sincere love for the work, the idea to ensure every guest of our hotel or restaurant really feels like they are at home or visiting their favourite neighbourhood, but with a view of the most beautiful sunset in Belgrade.

BUSINESS PARTNER | FRANCE 2022

Guests from within the country, but also foreign visitors, choose us because of our energy, hospitality and subtle shift from classical hotels and restaurants ■ We know how difficult it is to find a room available at your place, but also a free table at the restaurant, and that’s been the case from the very begin-

ning. Who are your guests and why do they choose Mama Shelter specifically? - Guests from within the country, but also foreign visitors, choose

■ Considering that Mama Shelter has become a respected brand of the Accor Group portfolio, is the group considering bringing other Accor hotel brands to Serbia? - Yes, yes, we are really strongly considering bringing other Accor hotels to Serbia. I think we’ve helped a lot in that sense, as we’ve shown that Belgrade and Serbia are on the map of destinations that must be included in the Accor Group’s future hotel investments. Some projects are already in the final realisation phase, while the plan for the next few years also includes several other significant projects from our group, and they aren’t only in Belgrade, but rather nationwide across Serbia.

BUSINESS

NEW TERMINAL EXTENSION BRINGS MORE COMFORT AND

IMPROVED EFFICIENCY The newly built extension to the existing terminal at Belgrade Nikola Tesla Airport opened to operations in April, thus increasing the airport’s capacity and improving processing efficiency and passenger comfort

overing a surface area of 13,600m2, the new terminal extension provides an additional eight contact gates with boarding bridges and five gates for remote aircraft stands, bringing the total on the airport’s Terminal C side to 19 gates. The entire new area was designed in accordance with company VINCI Airports’ best practices and standards – in terms of materials, colour palettes, signage, equipment and other architectural and interior design elements. In parallel with this terminal expansion, works were also completed on the first phase of the Apron C extension, totalling an area of almost 27,000m2, with four completely new parking positions for aircraft, including one for wide body aircraft. The achieving of this major milestone has brought many improve-

ments to Belgrade Nikola Tesla Airport for the first time. The concept of open space boarding gates has been introduced thanks to the new centralised security system that’s now positioned in front of passport control, while the additional roof corridor enables the segregating of departing and arriving passengers, and the installed travellators ease and accelerate passenger movements.

“The opening of the new terminal extension and accompanying traffic infrastructure has significantly improved our airport’s efficiency and level of service for passengers and partner airlines. Passengers are experiencing new standards of comfort and service quality first-hand, aligned with the best practices of our parent company, VINCI Airports. With the

ongoing project to modernise the airport, our aim is to make Belgrade Nikola Tesla Airport a new regional hub,” said BELGRADE AIRPORT CEO Francois Berisot. This extension represents part of the ongoing major modernisation and expansion of the airport terminal, with plans to create a total area of more than 92,500m2 with centralised security control, additional check-in counters and a variety of new leisure, lifestyle and commercial facilities. Building on these achievements, VINCI Airports will complete its major modernisation works at Belgrade Nikola Tesla Airport in 2023, including the extension of the passenger terminal, new access roads and parking spaces, new boarding bridges and gates, the construction of an inserted runway and complete renovation of the existing runway.

BUSINESS PARTNER | FRANCE 2022

CCIFS ACTIVITIES

A RELIABLE PARTNER FOR

BUSINESS DEVELOPMENT As the leading French-Serbian business network, the French-Serbian Chamber of Commerce is an institution that brings together French companies in Serbia and Serbian and other international companies that maintain trade relations with France or with French companies. The Chamber is also a reliable partner for all French companies that want to obtain information or start a business in Serbia

he main role of CCIFS is to enable its members to access a network of companies, exchange experience and knowledge and find cooperation partners among other members in Serbia and around the world. In order to promote French-Serbian economic exchange and enable communication between member companies, CCIFS annually organises about 50 events of different kinds. At these networking events many acquaintances have been made, which have grown into business partnerships. To the joy of all members, we have continued the long tradition of organising speed business meetings (the last in the series was with members of the Hellenic Association of Serbia, the British-Serbian Chamber of Commerce and the Croatian Business Club), as well as monthly meetings, this time called Talks over a coffee with.… We are pleased that we have continued organising training in the CCIFS Training Centre, and with the format of our webinars, such as workshops with lawyers and the National Employment Service. Online meetings of clubs (Club for Sustainable Development, Transport and Logistics, Infrastructure and Construction, CFO, HR, Digital, Agroclub and CSR) have continued unhindered, in which members have exchanged experience and advised each other on how to respond to various market requirements.

CLIMATE NEUTRAL&SMART CITIES CONFERENCE

THE CLIMATE NEUTRAL & SMART CITIES CONFERENCE

BUSINESS PARTNER | FRANCE 2022

The Climate Neutral & Smart Cities conference was organised on 15th June at the French Embassy in Belgrade, as the first in a series of events of a large project The Quest for Net Zero was launched by the CCIFS Club for Sustainable Development, in the context of harmonising the Serbian economy with the EU's Green Deal. The aim of the conference was to present French expertise in the sector of sustainable development and environmental protection through the most modern projects of leading companies. It was a great opportunity for companies to present their innovative projects to the target audience, which consisted of decision makers (ministries, local governments, businesspeople, the scientific community) and local and foreign experts. The conference was opened by then French ambassador to Serbia Pierre Bashar, State Secretary at the Ministry of Mining and Energy Jovanka Atanacković and CCIFS Vice-President Philippe Thiel. The panels presented some of the most innovative models for urban development that improve the quality of life in cities while reducing emissions of harmful gases.

LAUNCH OF THE “HOW CAN WE HELP YOU?” CAMPAIGN

During the Covid-19 pandemic and the crisis that gripped companies in Serbia, and in order to carry out ts main activity of supporting members, the French-Serbian Chamber of Commerce launched a campaign called How Can We Help You? During and after the state of emergency, the entire CCIFS team was available to members at all times, to provide them with the best possible assistance and support during the crisis. Several surveys were conducted to assess the impact of the virus on the operational and financial activities of CCIFS members on the Serbian market. The results helped the Chamber better understand members' needs . The campaign, which proved extremely successful and met with positive reactions from CCIFS members, has continued in 2022, when the global and local economies face new business challenges due to the Ukraine crisis.

GALA DINNER

ONLINE CONFERENCE DIALOG 3.0

In cooperation with the Chamber of Italian-Serbian Business people and the German-Serbian Chamber of Commerce, CCIFS launched a series of online conferences to promote dialogue between companies and state institutions. These associations have held four conferences: with the Ministry of Labour, Employment, Veterans and Social Affairs; the Ministry of Environmental Protection; and two with the Tax Administration. Two more associations recently joined this initiative: the Belgian-Serbian Business Association and the Hellenic Business Association of Serbia, with whom a successful dialogue was held with the Ministry of Mining and Energy.

One of the most attractive events of the FrenchSerbian Chamber of Commerce is the Gala Evening, which is organised once a year and at which the Chamber gathers over 200 guests, diplomats, business people and public figures. The last Gala evening, held on 12th May on the premises of Copernicus 610, had the theme of a cabaret called BONSOIR PARIS, so guests could enjoy stage acts of dance and magic tricks of talented artists. On the same occasion, the annual Grand Prix Awards of the Chamber were awarded in two categories, with special awards for members. The Grand Prix for Innovation was won by Mikroelektronika for a project called Planet Debug, the world's first Hardware as a service solution for remote access. In the category of Corporate Social Responsibility, the award went to OTP Banka Srbija for the Generator Zero project, dedicated to supporting and rewarding innovative projects that offer sustainable solutions with a real and measurable impact on reducing the carbon footprint, one of today's greatest challenges. The Chamber also awarded two special prizes for special contributions to the work of the Chamber. The first went to Belgrade Airport (Vinci), for the most active company in the previous year, while the second prize went to the individual who contributed the most to the promotion of the French-Serbian Chamber of Commerce: Nebojša Nedeljković, of company Mecafor.

SPEED BUSINESS MEETING

BUSINESS PARTNER | FRANCE 2022

BONJOUR SERBIA

The Bonjour Serbia event was launched by the CCIFS in 2020, but was postponed due to the pandemic before being successfully relaunched this year. A series of events in this programme represent an innovative concept of networking that the CCIFS is implementing in cooperation with institutional and strategic partners. The first edition of this event was held in February in Kragujevac. This was followed by a visit to Kikinda in March and a visit to Niš and Pirot in June. By the end of the year, events of this type will have been held in Novi Sad and Zrenjanin. Participants have the opportunity to attend regional events of various types, dedicated to both the business community and local authorities. The goal is to create synergies and opportunities for members, local businesses and local communities. In addition to presentations of business opportunities and meetings with local companies, in Kragujevac there was an opportunity to visit the State Data Centre, in Kikinda two successful French factories, Mecafor and LeBelier, while in Niš attendees visited the science and technology park and the impressive Tigar Tires factory, which today employs over 4,500 workers.

BONJOUR KRAGUJEVAC

BONJOUR NIŠ

LEBOOSTER – CCIFS BUSINESS CENTRE

BONJOUR KIKINDA

As part of support for start-ups and enabling French and Serbian companies to more easily integrate into the local market, the CCIFS opened LeBooster Business Centre at its address at the heart of Belgrade, with offices, co-working spaces, virtual offices and conference rooms in a unique French-touch environment. Companies can register a company at the address or rent a desk for a certain period, with complete CCIFS logistics, business and networking support. As an added benefit, by staying at LeBooster Centre, individuals and companies become part of a dynamic business community and have access to a network of contacts, as well as the many CCIFS-organised events.

GLOBAL INDUSTRY

From 17th to 20th May 2020, CCIFS had the pleasure of participating in the GLOBAL INDUSTRIE fair in Paris, one of the world's leading trade fairs dedicated to the development of industry, and to present the potential of the Serbian market. The Global Industrie fair is geared towards the industry of the future and international cooperation, and brings together start-ups, large groups, subcontractors, equipment manufacturers and much more. During this year's fair, and for the first time, CCIFS was able to contribute to the development of such an event and share its views and experience with many colleagues from the international community CCIF (Romania, Poland, Czechia, Spain, Portugal, Morocco, Tunisia and the UK). 28

BUSINESS PARTNER | FRANCE 2022

GENERAL ASSEMBLY

CSR CLUB EDUCATIONAL CAMPAIGN “AFTER UNI I'LL BE ...”

In cooperation with the Centre for Career Development of the University of Belgrade, the CCIFS launched a series of online workshops in 2021 for students, which rovided them with an opportunity to hear first-hand information from employees of various branches of CCIFS member companies. The workshops organised during the first series dealt with professions in the fields of technology, finance, advertising, telecommunications, sales and project management, and were complemented by a series of three workshops during French Week on human resources, finance and tenders.

SUPPORT SERVICES FOR FRENCH COMPANIES

The French-Serbian Chamber of Commerce works continuously to provide support to French companies wanting to develop business in Serbia. It helps companies from France examine market potential, find clients and partners, open a branch and in general help their business on the Serbian market. CCIFS is ranked in the third-highest category in the network of French chambers of commerce abroad, because it provides a complete service to French companies interested in the Serbian market: from initial information about the market, to opening and assisting in running a company. The Chamber has been an operating partner of Business France, the state-owned French Export Promotion Agency, and a member of Team France Export for 10 years. The Chamber also provides support to companies in the countries of the region, Bosnia-Herzegovina, Montenegro and North Macedonia. CCIFS's LeBooster business centre provides services from renting offices to all kinds of assistance in the operation of a company.

FRENCH WEEK - BAKERY WORKSHOP

COCKTAIL PARTY

BEAUJOLAIS NOUVEAU EVENING

FRENCH WEEK

One of the most important CCIFS events, French Week aims to promote historical, cultural and business links between France and Serbia. Its timing is associated with a broadly popular custom in France - the arrival of the new wine, Beaujolais nouveau. This year's 9th French Week was special because the events took place live, after a break last year due to the pandemic. The varied and colourful contents provided guests with the opportunity to participate in the traditional events of French Week; tasting good wine at the Beaujolais nouveau young wine reception; learning some of the secrets of French cuisine at the Bakery Workshop; sampling famous wine labels from the French regions at the Wine Workshop; as well as tasting famous French cheeses and other delicious delicacies. New business contacts between member companies and representatives of local institutions, international organisations, cities and municipalities of Serbia were established at the Innovating Environment business conference, which aimed to present the expertise of chamber members in the environmental sector through the latest projects of leading companies. Then, on the web platform www.francuskanedelja.rs, the 6th Online Employment Fair was held throughout the week, with visitors having the opportunity to visit the virtual stands of participating companies, apply for over 40 advertised jobs and chat with human resources personnel. The programme for young people was complemented by a series of webinars for students “After uni I'll be...”, which gave students the opportunity to discuss various occupations with panelists and receive useful advice for their professional orientation. BUSINESS PARTNER | FRANCE 2022

FRENCH-SERBIAN ECONOMIC COOPERATION

NEW FRENCH

INVESTMENTS EXPECTED The visit of French President Emmanuel Macron to Serbia marked a turning point in the development of economic relations between the two countries. And new French investments are expected to be concentrated in sectors that are important to the development of Serbian infrastructure, green transition and information and communications technology

conomic ties between France and Serbia are advancing constantly, while the trade exchange between the two countries constantly exceeds the benchmark figure of a billion euros. In 2021 alone, This trade exchanged had a total value of 1.4 billion euros in 2021 alone, while Serbian Prime Minister Ana Brnabić insists that the potential is “at least ten times this amount”. Among the main events providing an incentive to the further advancement of

BUSINESS PARTNER | FRANCE 2022

bilateral cooperation was the 2019 visit of French President Emmanuel Macron and a delegation of French businesspeople that saw the signing of several important agreements, including an agreement between the two countries on the construction of the Belgrade metro system. It was following Macron's visit that Air France made its return to Serbia, with the introduction of a direct Belgrade-Paris flight, and the French Development Agency opened

its Western Balkan Office in Belgrade. Investments in the field of the environment, green transition, the construction of wastewater treatment facilities, the expansion of the Belgrade sewage network, the energy sector, but also road and railway infrastructure – particularly when it comes to the building of urban metro systems and railway corridors (projects relating to PanEuropean road and rail corridors 10 and 11) – have been identified as having the greatest

potential for furthering cooperation between Serbia and France. Thanks to the investment of French multinational Michelin, vehicle tyres have become (alongside raspberries) the most important Serbian product exported to France, while Serbia mostly imports medicines and cars from France. It is precisely in the area of processed raspberries, blackberries and cherries that Serbian entrepreneurs have identified a great opportunity to boost exports. Serbia is still recording a deficit in the trade exchange with France, as shown by data from the Statistical Office of the Republic of Serbia, though imports are increasingly managing to cover exports. A total of approximately 5,000 companies in Serbia contribute to the foreign trade exchange with France. According to the Serbian Chamber of Commerce & Industry, French companies are interested in cooperation and investment in the areas of energy, agriculture, transport – particularly based on the public-private partnership model and concessions – and in the fields of the environment and information and communications technology. The level of French investment in Serbia is growing year on year. According to data from Serbia’s central bank, the National Bank of Serbia, almost a billion euros from France has entered Serbia. Among the big-

gest investments are the Belgrade Nikola Tesla Airport concession, held by French company Vinci, and the public-private partnership to redevelop the Vinča Landfill. A memorandum of understanding was signed recently by the City of Belgrade and France’s RATP, which expresses the desire for this renowned company to become an “early operator” of the Belgrade metro. The RATP Group is one of the world's largest public transport systems operators. Among other things, it manages the operations of the Paris Métro and the underground urban rail systems of many other cities around the world. The signing of this memorandum

The trade exchange between the two countries has been growing constantly over the last few years, with the coverage of imports by exports also improving. Opportunities are emerging for Serbian entrepreneurs to export cherries and raspberries to France, but also more sophisticated products

was followed by the start of negotiations on the deal that will form part of the interstate agreement between Serbia and France on the construction of the Belgrade metro. Serbian business leaders believe that strengthening economic cooperation with France will provide Serbian companies with an entrance ticket to the markets of North Africa and the former French colonies of Algeria, Tunisia and Morocco. They also expect this to improve cooperation between entrepreneurs or specific companies. Speaking after discussions in Paris with her then French counterpart Jean Castex this February, Serbian PM Brnabić said that “the basic message is that President Macron is personally committed to working further on the advancing of both political and economic relations between France and Serbia, and that he is personally monitoring the numerous French investments that we have in Serbia today”. The PM also announced that the Michelin Group plans to further expand its investment in Serbia and that French company Egis plans to open its regional engineering hub in Belgrade. She further noted that the AFD Office for the Western Balkans, which opened in Belgrade following the 2019 visit of President Macron, plans to double its budget for projects around the region, and particularly in Serbia.

BUSINESS PARTNER | FRANCE 2022

GLOBAL ISSUES

PASCAL LAMY, PRESIDENT OF THE PARIS PEACE FORUM, FORMER DIRECTOR-GENERAL OF THE WORLD TRADE ORGANIZATION AND EU TRADE COMMISSIONER

PREPARING FOR

CLIMATE OVERSHOOT Humanity’s continuing failure to reduce greenhouse-gas emissions has substantially increased the likelihood of global warming exceeding 1.5°C within the coming decades. That means we must start exploring a wider set up options for mitigating the worst consequences and managing life in a warmer world

he latest report from the Intergovernmental Panel on Climate Change revealed what many had feared but were reluctant to admit: the continued failure to reduce greenhousegas emissions means that global warming will likely exceed 1.5° Celsius, relative to pre-industrial levels. UN Secretary-General António Guterres has warned that this key goal of the 2015 Paris climate agreement is now on “life support.” Even if emissions “peak before 2025 at the latest,” notes

BUSINESS PARTNER | FRANCE 2022

the IPCC, and are “reduced by 43% by 2030” (including a one-third reduction in methane), “it is almost inevitable that we will temporarily exceed this temperature threshold but could return to below it by the end of the century.” If avoiding a breach of 1.5°C is still technically possible, we should of course not give up. But the window of opportunity is closing faster than we thought, and deepening geopolitical divisions – intensified by the pandemic, Russia’s aggression

against Ukraine, and looming food, energy, and debt crises – do not augur well for the kind of cooperation that we need. By surpassing 1.5°C, but then taking measures to bring temperatures back below that threshold by the end of the century, we will be in what the IPCC calls an “overshoot” scenario. Although climate models have long accounted for this possibility, not much is known about how to reduce the risks – both environmental and political – that it would create.

Average global temperatures have already risen 1.1°C above pre-industrial levels, with significant environmental effects. Every additional tenth of a degree contributes further to the severity and frequency of extreme weather events and increases the risks to health, food, water, livelihoods, and biodiversity. By the time we reach 2°C, many human and natural systems will be under extreme stress; some ecosystems will struggle to survive, and others already will be gone. Worse, overshoot increases the risk of what the IPCC describes as “cascading and irreversible climate impacts.” And the political consequences would be no less significant. For many, 1.5°C has become a line in the sand – a signifier of humanity’s ability and will to reduce climate risks. While breaching it could lead to a more forceful response to climate change, it also could invite despondency and fatalism. That is why we must start planning for it now. To that end, I will be chairing a new Global Commission on Governing Risks from Climate Overshoot. Consisting of 16 eminent leaders with diverse backgrounds, we will consider how best to manage the physical and political risks of a world beyond 1.5°C. Most of the commission is from the Global South, including several former heads of government, minsters, and senior officials. We will present an integrated strategy to tackle the possibility of climate overshoot ahead of the 2023 UN Climate Change Conference. As an independent commission, we will conduct this important work without the political and organisational constraints that

Our overshoot strategy will need to be effective, robust and ethical, grounded in the best available evidence, and consistent with justice, equity and respect for international law. As long as these principles apply, we will keep an open mind so often hamper such discussions. We are ready to consider all the options, including ideas that are sometimes considered too controversial to broach in other fora. For example, while reducing greenhousegas emissions is and should remain our primary goal, we must recognise that this is no longer enough. Additional approaches are now in order. For example, we will explore the potential of removing carbon dioxide from the atmosphere on a large scale. This is unavoidable if we want to achieve netzero emissions, let alone the net-negative emissions that are needed to start restoring our planet. But while there are many ways – both nature-based and technological – to remove CO2, none is ready at scale, and many

elements of this strategy remain contested. We also will explore avenues for improving and expanding adaptation efforts on the scale needed to address the growing effects of climate change, though the limits of what is feasible here remain unclear. Finally, we will examine the research on “sunlight reflection methods,” an intervention designed to reflect a small portion of incoming solar radiation back into space. This option appears to be viable, but it would pose global risks, implying significant governance challenges. Our aim is to bring all these options together into one document for the first time, to weigh the risks of action against the risks posed by a rapidly warming world, and to recommend an integrated strategy based on independent scientific advice and stakeholder consultations. Our overshoot strategy will need to be effective, robust, and ethical, grounded in the best available evidence, and consistent with justice, equity and respect for international law. As long as these principles apply, we will keep an open mind. At this 11th hour, we cannot afford to take any options off the table – at least not until we have investigated them fully. It is tragic that we must confront the consequences of insufficient action and undertake this endeavor. But we have an overriding responsibility to be prepared if we fail to meet the Paris agreement’s targets. That means considering all potential responses that could minimise the damage and suffering to people and the planet. BUSINESS PARTNER | FRANCE 2022

URBAN DEVELOPMENT

CARLO RATTI, DIRECTOR OF THE MIT SENSEABLE CITY LAB, CO-FOUNDER OF INTERNATIONAL DESIGN AND INNOVATION FIRM CARLO RATTI ASSOCIATI

REINVENTING PARIS The Réinventer Paris initiative, launched by then-Deputy Mayor Jean-Louis Missika in 2014, amounted to a reinvention of Parisian urban planning. Now, after a long string of impediments and delays, it seems to be bearing fruit well – including well beyond Paris

BUSINESS PARTNER | FRANCE 2022

hen I first met Jean-Louis Missika, then-Deputy Mayor of Paris in charge of architecture and urban planning, in 2014, he welcomed me with an urgent question: How can we fast-track urban innovation? Years later, his answers are becoming apparent. Missika’s office was in the Hôtel de Ville, the grand and iconic government building that had been the site of many a popular uprising. In fact, the current edifice is a re-creation of a version that was burned to the ground during the Paris Commune revolt of 1871. The Hôtel de Ville epitomises the tension between institutional grandeur and revolutionary spirit that lies at the heart of the French capital. Missika was well aware of this tension – and he refused to pick a side. Given his background, this should perhaps not be surprising. Born to an Algerian-Jewish family, Missika was a former professor at Sciences Po Paris, the city’s elite grand école of political science. He was also a former adviser to Xavier Niel, an entrepreneur with a penchant for disruptive innovation, reflected in projects like the Station F start-up incubator and École 42, a teacherless (!) computer-programming academy. When he took his post as deputy mayor, Missika’s propensity for straddling the line between institutions and their opponents was still apparent. “Paris is no longer innovating in architecture and urban planning,” he told me during our meeting, eyes ablaze, amid the Hôtel de Ville’s aged, blackened woodwork. “We’re losing ground to London. Our developers are too conservative; they keep coming up with antiquated models. We have to do something! Il faut agir !” Missika then described his proposed initiative. The city was about to alienate several hundred million euros worth of real estate, he explained. But instead of selling it off to developers, who would have free rein over how to use it, Missika planned to launch an open call for ideas and project proposals, to be submitted online by professionals and ordinary citizens alike. The most innovative projects would be selected and implemented at more than 20 sites. The project was called Réinventer Paris – an apt title, not only because it sought to reinvent the city, but also because it amounted to a reinvention of the planning process. And the timing could not have been better: thennewly elected Mayor Anne Hidalgo, who was responsible for Missika’s appointment, had

pledged to intensify the city’s fight against climate change. So, the first open call, launched a few months after our meeting, incorporated environmental imperatives – such as the promotion of co-housing, circularity, and urban agriculture – into its proposal guidelines. I initially served on one of the juries – the one that selected a project called Mille Arbres, by Japanese architect Sou Fujimoto. It would be a multi-purpose building – with room for housing, offices, and cultural centers – as well as a bridge across the Boulevard Périphérique, the road that forms a ring around Paris. And it would include space for more than a thousand (mille) trees.

I don’t know if Missika would have predicted when we first met at the Hôtel de Ville that Réinventer Paris would have such a profound global impact. I think the momentum it has gained is a sign of the times The cantilevered, vegetation-covered structure would be a stunning architectural feat, and the plan, publicised widely, elicited global acclaim. But design is one thing; implementation is something else. To this day, the project remains stalled, impeded by petitions and the paralysing French bureaucracy. Other proposals from the Réinventer Paris initiative were blocked by the national govern-

ment’s Conseil d’État. Citizens’ associations erected barriers as well, viewing the project as a clever marketing ploy intended to obscure the extensive and irreversible privatisation of public lands. They also criticised Missika himself for having too much personal control over the process. Yet, at long last, Réinventer Paris is beginning to bear fruit. Several projects selected five years ago are now under construction. Perhaps my favorite is Morland Mixité Capitale, which will transform the hulking Préfecture de Paris into a mixed-use complex that soars skyward. It will boast offices and residences, a hotel and fitness centre, courtyards filled with greenery and spaces for urban agriculture, and a rooftop bar and restaurant enveloped by a panoramic light sculpture by Icelandic artist Olafur Eliasson. Moreover, Réinventer Paris has inspired a wave of other urban-planning programmes. By the time the second round was launched, it was complemented by Réinventer la Seine (seeking new uses for lots along the course of the river), Réinventer les dessous de Paris (aimed at converting car tunnels and underground spaces), and Inventons la Métropole (covering the wider metropolitan region). Missika’s concept has now reached the international stage. C40 Cities, a global network of mayors devoted to climate action in which Hidalgo is involved, has launched Reinventing Cities, perhaps the largest international competition in urban planning and innovation ever organised, now in its third round. Already, Reinventing Cities has selected dozens of projects to support, from Auckland to Cape Town and Dubai to Vancouver. Among them is a rooftop vineyard and public walkway next to the headquarters of the Prada Foundation in Milan, submitted by my design and innovation firm. I don’t know if Missika would have predicted when we first met at the Hôtel de Ville that Réinventer Paris would have such a profound global impact. I think the momentum it has gained is a sign of the times. The internet has facilitated unprecedented interaction among designers and citizens, enabling innovative ideas to emerge and spread faster than ever before. The interplay between the virtual and physical worlds that underlies the success of Missika’s approach may be the true key to fast-tracking urban innovation. Cities around the world: Il faut agir! BUSINESS PARTNER | FRANCE 2022

ARTS

BARBARA PRAVI, SINGER, SONGWRITER AND ACTRESS

SERBIAN ROOTS,

FRENCH FLAIR

Barbara Pravi, a French artist and singer-songwriter of Serbian origin, presented herself to the Belgrade public at the city’s Botanical Garden on 28th June. This Belgrade concert, organised by the BELEF festival and the French Institute in Serbia, formed part of the celebration of the French Presidency of the Council of the European Union

feel connected to many things. I feel Serbian because I adore my grandfather, but I also feel like an Iranian because I love the poetry of Iranian poets. I’m in love with my family history. And I can also say that I belong to England, because I speak English, I love Italy, Spain... So, I really feel all that - explained Barbara Pravi on one occasion. Believe it or not, but Pravi is the most current star of modern French chanson to be compared to the great Edith Piaf, and this singer-songwriter who represented France at the 2021 Eurovision Song Contest - where she secured an enviable 2nd place behind Italian rock sensation Maneskin - has Serbian roots. Barbara's father is of Serbian and Algerian Jewish descent, while her mother has Polish Jewish and Iranian origins. She adopted the stage name Barbara Pravi from the Serbian word “pravi” (meaning genuine or authentic), as a way of paying homage to her Serbian grandfather. She adores her grandfather and dedicated the song “Deda” to him, which she released three years ago. Attendees of her concert at Belgrade’s Botanical Garden were able to see for themselves just how much Barbara's presence on stage, spontaneity and sincerity during the performance are reminiscent of the French singing icon from the mid-20th century that was Edith Piaf. The Belgrade concert was organised jointly by the BELEF festival and the French Institute in Serbia, under the patronage of the City of Belgrade, the EU Delegation to Serbia and telecoms company MTS Telekom Srbija. This event formed part of the celebrations of the French Presidency of the Council of the European Union.

BUSINESS PARTNER | FRANCE 2022

Barbara Pjević was born in Paris on 10th April 1993 to a family of artists and musicians. “I feel connected to many things. I feel Serbian because I adore my grandfather, but I also feel like an Iranian because I love the poetry of Iranian poets. I am in love with my family history. And I can also say that I belong to England, because I speak English, I love Italy, Spain... So, I really feel all that,” she once said. Barbara grew up in a harmonious and multicultural family. This open-mindedness lies at the heart of her education and ethos, representing an important feature that underpins her character, through which she very soon expressed a yearning for independence. However, her strong personality meant that her path to education wasn’t always as smooth as hoped. After graduating from school thanks to the help of a

literature teacher, she applied to study law at Paris’s famous Sorbonne University, though with no definitive plan in mind. Two years later, she decided to drop her studies in order to follow a path that would truly inspire and drive her: music. Thanks to odd jobs working nights in bars and restaurants, she began producing her own music. As she turned 22, she posted her first video directed with the help of friends. It didn’t take long for her to be spotted by Capitol and sign her first record contract with the prestigious label. she was then, in 2016, cast as one of the three main leads in the musical Unété 44. Barbara subsequently released her first EP, ‘Pas Grandir’, in 2017 and landed her first role as an actress in a TV-feature called La Sainte Famille, directed by Marrion Sarraut. It was shortly after this that she was picked by Florent Pagny to open for him 23 nights in a row during his 55 Tour. At the end of 2018, she changed her management team and began working with Élodie Filleul. It was in February 2020 that she co-produced and wrote the lyrics and music for her second EP, Revienspourl’hiver. She has since collaborated with many artists, including Yannick Noah, Julie Zenatti, Chimène Badi, Jaden Smith, and written songs for Carla (Bim Bam Toi) and Valentina (J’imagine), thanks to whom France won the 2020 Junior Eurovision Song Contest. She released her own reinterpretations of the songs Kids, and Notes pour trop tard, as well as her new song Chair. Barbara represented France at the 2021 Eurovision Song Contest with the song Voilà, securing 2nd place – France’s best result since 1991. Her debut album, On n'enferme pas les oiseaux [We don't lock up the birds], was

Barbara's song won the 2020 Junior Eurovision Song Contest After signing with Capitol Music France in 2015, she released four EPs with the label: Barbara Pravi (2018), Reviens pour l'hiver (2020), Les prières (2021) and Les prières: racines (2021). As a songwriter, Barbara has written songs for a number of artists, including Yannick Noah, Julie Zenatti, Chimène Badi and Jaden Smith. She also composed the song J'imagine by Valentina, which won the 2020 Junior Eurovision Song Contest BUSINESS PARTNER | FRANCE 2022

This is followed by Le Jour Se Lève, a bubble of intimate love with a deconstructed syntax: “I don't know what it is, I don't know where it will go, what makes us like each other,” which oscillates between wonder and questioning. And then L'homme Et L'oiseau, a bittersweet observation of a hopeless romance. Barbara's lyrics are full of poetic flourishes: “Les rideaux volent en dessins/Sur mes murs blancs un peu jaunis/Comme un soupir tu as filé/Au beau milieu de notre nuit” (The curtains fly in drawings/On my white, slightly yellowed walls/Like a sigh you've gone away/In the middle of our night) and vivid, sparkling feelings, glowing tones and even a prayer (Prière Pour Rester Belle), where agnostics can unite in chorus. There is also a tidal wave of rage that overcomes her and deposits her body on dreaded shores. Coloured notes like the birds she draws with gouache, chords that slip in behind the scenes like film music.

Barbara has collaborated with many artists, such as Yannick Noah, Julie Zenatti, Chimène Badi, Jaden Smith, and also writes songs for Carla (Bim Bam Toi) and Valentina

released in August 2021 and served to prove that this woman, as a slightly eccentric singersongwriter who has been capturing the attention of the music scene for some time, has indeed taken flight. Over eleven tracks, Barbara sings about her own evolution and her view of society. Without a war of the sexes, and with a good 38

BUSINESS PARTNER | FRANCE 2022

dose of gentle optimism. The album opens with Voilà, a vibrant and powerful expression of the singer's talent. A cry from the heart, this piano-voice-cello waltz, which has become the French anthem of Eurovision 2021, is a naked exposé, but also a plea for fans to gush over.

If one had to pick an outstanding moment, it would have to be the intensity and interpretation of La Ritournelle. This piece, which links Pravito to her Alzheimer’s-afflicted grandmother, who is alive but already so far gone, was recorded in a single take. We look forward to hearing it on stage one day... In the meantime, we'll listen to it over and over again, flying high, seeing that the world is rather beautiful from up there. Completely authentic, Barbara Pravi insists on freedom. She regularly uses her platform to denounce violence against women and is very vocal about defending women’s rights. In 2018, she and 38 other women took part in the recording of Debout les femmes, the official song for the French Women’s Liberation Movement (Mouvement de Libération des Femmes). Barbara has since been invited to speak during celebrations of International Women’s Day on 8th March. On International Women's Day 2022, Pravi released a new song called Priére pour soi (Prayer for yourself), and on 10th April this year she received a gold disc for “Voilà” exclusively in France.

BUSINESS PARTNER | FRANCE 2022

INTERVIEW USA 2021

USA 2022

INTERVIEW

USA 2022

SERBIA AGAIN IN U.S. ADMINISTRATION’S FOCUS COMMENT

CONTENTS

H.E. CHRISTOPHER R. HILL, U.S. AMBASSADOR TO SERBIA FOCUS ON THE FUTURE

BARON LOBSTEIN, ECONOMIC SECTION CHIEF AT THE U.S. EMBASSY IN BELGRADE BUSINESSES SEEK STABILITY & TRANSPARENCY

JELENA KNEŽEVIĆ, PARTNER, LEITNERLEITNER DIGITALIZATION MAKES BUSINESS EASIER

STEFAN LAZAREVIĆ, AMCHAM SERBIA PRESIDENT PARTNERSHIP OVER THE LONG TERM

NENAD ĐURĐEVIĆ, SALES DIRECTOR RUSSIA, SEE AND TURKEY, BALL PACKAGING SUPPORTING SERBIA’S TRADE BALANCE

COCA-COLA SYSTEM OPENS ROSA HOMOLJE CARBONATED WATER BOTTLING PLANT IN NERESNICA

IMPRESSUM EDITOR IN CHIEF Neda Lukić n.lukic@aim.rs ART DIRECTOR Branislav Ninković b.ninkovic@aim.rs PHOTOS Zoran Petrović COPY EDITOR Mark Pullen mrpeditorial@mail.com

EXECUTIVE DIRECTOR Maja Vidaković m.vidakovic@aim.rs PUBLISHER Ivan Novčić i.novcic@aim.rs DIRECTOR Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com

PRINTING Rotografika d.o.o. Segedinski put 72, Subotica USA 2022 Published by: alliance international media Prote Mateje 52, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 Fascimile: +(381 11) 2450 122 E-mail: office@aim.rs; office@cordmagazine.com

www.aim.rs; www.cordmagazine.com ISSN: 2560-4465 All rights reserved alliance international media 2021 The views expressed in this publication are those of the presenter; they do not necessary reflect the view of publications published by alliance international media

THIS PUBLICATION IS FREE OF CHARGE

TIJANA KOPRIVICA, DIRECTOR OF SUSTAINABLE BUSINESS, DELTA HOLDING AGRICULTURE IS OUR GREAT DEVELOPMENT OPPORTUNITY

VERA NIKOLIĆ DIMIĆ, EXECUTIVE DIRECTOR, AMCHAM SUCCESS MAKES US RAISE OUR AMBITIONS

BILATERAL TRADE EXCHANGE ECONOMY

JACKSON POLLOCK (19121956), AMERICAN PAINTER LIBERATING BREAKTHROUGH OF JACKSON POLLOCK

DENNY ROBERTSON, USAID SERBIA MISSION DIRECTOR STRIVING TO SUPPORT SERBIA IN ADVANCING ITS GROWTH

ROSANDA MILATOVIĆ SKORIĆ, SAS GENERAL MANAGER FOR THE ADRIATIC REGION IN DATA WE TRUST

40 25

ALEKSANDAR ANTIĆ, SALES DIRECTOR, ADRIATIC AND BULGARIA, DELL TECHNOLOGIES ‘SUPPLY CHAIN’ AS A TRADEMARK

VLADIMIR MARINKOVIĆ, DIRECTOR OF THE SERBIANAMERICAN FRIENDSHIP CONGRESS A FRIEND IN NEED IS A FRIEND INDEED

TWO DECADES OF LEADING THE CHANGE AMCHAM SERBIA

USA 2022

COMMENT

Serbia Again In U.S. Administration’s Focus Bilateral relations between Serbia and the U.S. are cordial, but not without their downside. Those relations are today driven by complex political issues, often in parallel with topics related to economic development and innovation

he report “Serbia: Background and U.S. Relations”, written by the U.S. Congressional Research Service, provides an interesting overview of recent developments in diplomatic relations between the United States of America and the Republic of Serbia. Although this report covers only a fraction of the 140-year history of diplomatic relations between the two countries – namely, the last two decades – it nonetheless details various twists and turns that have defined our rather dynamic, and productive relations, which have often been charged by important political issues and different interpretations of the outcomes. The situation is no different today. News reports reveal that the two sides have been discussing Serbia’s stance regarding the Ukraine war, the BelgradePriština dialogue, and EU integration, the diversifying of energy sources in Serbia and the Western Balkans, as well as current geopolitical issues. And none of these represent easy questions

U.S. assistance to Serbia focuses on supporting democracy and the rule of law, rooting out corruption, supporting civil society organizations and press independence, and supporting economic development for discussion or reaching agreement. Nonetheless, alongside these topics that occupy the front pages of the Serbian press, there are other equally relevant themes with the same underlying tone of U.S. support to the EU integration of the entire Western Balkans, Serbia included. These themes are to be found in the USAID support programs that have been devised with two long-term goals in mind: Citizen empowerment/democratic governance; and the development of a fully-fledged market economy. The first group of projects revolve around the themes of improving the

rule of law, rooting out corruption and increasing transparency in state budgeting and spending, but also improving media freedom. The second group of projects relate to the empowerment of small business and, increasingly, to innovation programs designed to help Serbia seize the emerging opportunities offered by the knowledge-based economy, through support to startups, improving links between business and academia, and identifying promising areas for innovation. Among the USAID achievements that often receive AmCham support are those related to improving the business climate at the national and local levels, as well as specific priorities related to construction, public procurement and red tape. The focus is now shifting to environmental protection and biodiversity, and the energy sector, especially the use of renewable energy. And yet, even these topics are not immune to politics. Just two years ago, it seemed that the U.S. International Development Finance Corporation (DFC), a development finance institution and agency of the United States federal government, was set to build a strong presence in the Western Balkans, but – with the arrival of the new administration in Washington, D.C. – that became “subject to shifting political priorities and budget resources,” without permanent staff in Belgrade. By the same token, many U.S. investors already present in Serbia report having good conditions to do business here, yet it has been suggested that new investors question whether the current political and economic conditions favor their arrival.

USA 2022

INTERVIEW

H.E. CHRISTOPHER R. HILL, U.S. Ambassador to Serbia

By Ljubica Gojgić

Focus On The Future Looking forward, Serbia today has an important choice to make. Does it follow its path towards full European integration and realize its full economic, political, and social potential? Or does it continue to chart a different path than its neighbors, a path that attempts to strike a “balance” but which, in reality, pins Serbia’s security and economic hopes largely on the East? I do not want Serbia left behind and I am confident many Serbians do not want that. Neither for themselves nor for their children ~ Christopher Hill

’d characterize the moment right now as quite important - notes U.S. Ambassador Christopher Hill in his first interview for CorD Magazine. “U.S. relations with Serbia go back a long way, and our relations through much of our history have been positive and productive. I know all too well the legacy of the 1990s; and while we cannot forget history, it is important to focus on the future”. Your Excellency, it’s been said that you’ve returned to Serbia for a fourth time. As someone who’s spent more than four decades monitoring relations between the U.S. and the former Yugoslavia/Serbia, how would you characterize those relations today? It’s true that I keep coming back to Belgrade. I was first here as a young boy, when my father was posted as the Political Chief in the early 1960s. Then I was here as a first tour officer in the 1980s. I was in the region in the 1990s as our Chargé in Tirana, a member of the U.S. Dayton team, and Ambassador in Skopje. And now, after a long career in diplomacy and academia, I could not be happier to have found an opportunity to come back to Belgrade as the U.S. Ambassador. I have a lot of experience in this region, but I focused my first few months here on listening, learning, and getting to know today’s Serbia. I’d characterize the moment right now as quite important. U.S. relations with Serbia go back a long way, and our relations through much of our history have been positive and productive. I know all too well the legacy of the 1990s; and while we cannot forget history, it is important to focus on the future. Looking forward, Serbia today has an important choice to make. Does it follow its path towards full

European integration and realize its full economic, political, and social potential? Or does it continue to chart a different path than its neighbors, a path that attempts to strike a “balance” but which, in reality, pins Serbia’s security and economic hopes largely on the East? I do not want Serbia left behind and I am confident many Serbians do not want that. Neither for themselves nor for their children. I think I’ve been clear about where I see Serbia headed, and it’s my hope to do all that I can to help move Serbia towards the West and full European integration. I want to see a prosperous and secure Serbia that offers opportunity to all its citizens.

predecessors failed to resolve. What tops your agenda? One lesson I’ve learned is that you need to understand the playing field and the current conditions before you can make a contribution to solving problems. That’s why I have been focused on getting to know today’s Serbia and trying to better understand how the United States can help Serbia achieve its full potential. I wish I had some magic dust to solve all the challenges in Serbia, the Balkans, and elsewhere, but that’s not how diplomacy works. I do think we can make consequential progress on tough issues, step by step. And that’s where I hope to start.

Your arrival has generated great interest in Serbia and around the region. A section of the public and the media present you as a diplomat who’s been brought out of retirement to resolve everything that your

Speaking on the eve of celebrations marking the 20th anniversary of the founding of the American Chamber of Commerce in Serbia, AmCham Serbia, you agreed with the assessment that Serbia is becoming

MILITARY NEUTRALITY

KOSOVO DIALOGUE

Neighbors must talk. The best framework for that dialogue continues to be the EU-facilitated Dialogue. We support this 100%

a “key investment zone” in Europe. Where do you see potential for further growth? Serbia has changed so much in the last 20 years! One of the most positive and promising transformations I have seen is the country’s growth as a center of technology and innovation. The government has made high-technology development and digitalization a major focus, and it’s clear that those efforts are bearing fruit. Some of the most successful American and international companies doing business in Serbia today are in high-technology fields, including digital services (NCR, Oracle), electronic gaming (Take Two Interactive, Epic Games), and pharmaceuticals (Hemofarm). Oracle and NVIDIA are helping to develop Serbia’s State Data Center to support Serbia’s new e-government services—and it’s important that these companies can provide data security and privacy to EU standards. We are also proud to welcome one of our largest agricultural companies, ArcherDaniels-Midland, to the Serbian market as it plans to develop products for export to the wider European market. Looking ahead, the other sector that begs for new investment is clean and renewable energy. I cannot stress enough the importance of attracting new investment for environmental reasons and for Serbia’s long-term energy security. Tomorrow’s high-tech economy cannot be powered by yesterday’s coal-fired power plants. Serbia must develop large-scale wind and solar power, and it must expand its energy storage capacity to enable these new renewable power sources. U.S. firms are world leaders in clean energy technology, and I hope to see more collaboration and cooperation in this sector.

in Ukraine, America adds security, or unquestionable political alliance, to that list of values – as described recently by U.S. Secretary of the Treasury Janet Yellen. Does Serbia satisfy all the necessary conditions to strengthen business cooperation? American businesses embrace the values of competitiveness, transparency, and free enterprise because, over the course of our nation’s nearly 250-year history, adhering to those values has produced the world’s most prosperous economy. Around the world, the economies that provide fair opportunities to all citizens are the ones that are not distorted by corruption or excessive political influence. Those are the economies where people stay (or move to) to make their living and raise their families.

nies will look to find places to invest where they don’t have to worry about geopolitical uncertainty.

The foundations of AmCham are represented by American business values, which include competitiveness, transparency, and free enterprise. However, when business is discussed in today’s context of the war

Some of the most successful American and international companies doing business in Serbia today are in high-tech nology fields, including digital services (NCR, Oracle), electronic gaming (Take Two Interactive, Epic Games), and pharmaceuticals (Hemofarm) It might sound simple, but people and businesses choose with their feet. Companies will make their own decisions about where to invest. But we now increasingly see that companies make those decisions based on the moral values of their customers and directors. Many Western companies decided to leave Russia after its brutal, unprovoked attack on Ukraine, because their customers and directors demanded it. Many companies may also think twice about investing in countries that have not taken a clear stand against Russia’s aggression. Ultimately, risk and instability are bad for business, so compa-

You’ve stated that you’ll “listen more than speak” during your time in Belgrade this time around. However, you stood out at the very beginning of your term with your messages to the authorities in Serbia, with which you directly announced your government’s expectations of Belgrade, mostly in the domain of geopolitics. Are you not ready to accept the policy of military neutrality that’s insisted on by officials in Serbia? The United States fully respects Serbia’s military neutrality. We are quite pleased that Serbia maintains close military cooperation with the U.S. and is actively involved in the Partnership for Peace with NATO. This cooperation and partnership benefits both Serbia and the United States, as well as NATO. We would like to strengthen it. How Serbia defends itself, how it arms itself, is up to Serbia. These are the most basic and fundamental questions for government. It seems to me that the most effective and efficient path towards security, particularly for a small or medium-sized country, would be to find some friends and to focus on collective defense. Likewise, I’m no expert in military equipment purchases, but I think a pretty basic approach would be to buy equipment that is reliable and that works with those countries with which you cooperate on global operations. Serbia’s key partners are Euro-Atlantic. President Vučić and other Serbian leaders have repeatedly underscored that, politically, Serbia is not neutral and that it has chosen its path towards European integration. My government stands ready to partner with Serbia to help it achieve this strategic goal. You’ve said that you support the Open Balkan regional project. Why do you think that this project in particular – as opposed to, say, CEFTA,

INTERVIEW

The United States fully respects Serbia’s military neutrality. We are quite pleased that Serbia maintains close military cooperation with the U.S.

USA 2022

RELATIONS

I think I’ve been clear about where I see Serbia headed, and it’s my hope to do all that I can to help move Serbia towards the West and full European integration

USA 2022

INTERVIEW

2022, and I’m not sure how durable that framework is today. Kosovo and Serbia are neighboring countries with many mutual concerns. Neighbors must talk. The best framework for that dialogue continues to be the EU-facilitated Dialogue. We support this 100%. I note that we have seen much better cooperation recently on energy, and I’m hopeful this is the start of something more.

which was established as part of the region’s European integration process – has the potential to entice additional investment from the U.S.? We support any and all regional economic cooperation initiatives that will help Serbia and its Western Balkan neighbors come closer to their goal of EU accession, as long as those initiatives remain open to all neighbors. We have made clear at every opportunity that we support the EU institutions and processes that are working towards that goal, because we believe regional economic integration will bring concrete benefits to Serbia and all the people of this region. I attended the Open Balkan summit in Ohrid on June 8, and I spoke with EU commissioners and deputy commissioners, and representatives of European institutions, who felt the same way. A single Western Balkan market—with swift and smooth border crossings and harmonized trade practices and procedures—will be far more attractive to American investors than a slow moving, fragmented collection of small markets.

The Washington Agreement was a good framework, but we are operating in 2022, and I’m not sure how durable that framework is today. Kosovo and Serbia are neighboring countries with many mutual concerns

The United States International Development Finance Corporation, DFC, was expected to have a more active presence in Serbia. What can you say about the DFC’s current activities? DFC has been working for a year and a half now, with the Ministry of Finance, to create a new loan portfolio guarantee program that will work through commercial banks in Serbia to support small and

The DFC’s stronger presence was linked to the so-called Washington Agreement between Belgrade and Pristina, which was forged under the patronage of the cabinet of former President Trump. How do you view that agreement today; is it still considered valid? The Washington Agreement was a good framework, but we are operating in

medium-sized businesses. Many smaller companies have been hurt by the Covid-19 pandemic, and now by the upheaval caused by Russia’s war of aggression against Ukraine and wider global economic disturbances. This program will reduce the risk and the cost of bank loans to these smaller companies, and we hope it will help them survive and even thrive in the coming years. DFC has recently completed preparations to launch that loan guarantee program in cooperation with Banca Intesa, and more banks will be participating in the coming months. I would like to see DFC become more active in Serbia.

Your arrival in Belgrade was followed in Kosovo and accompanied by the comment that you’re arriving “in the right place, at the right time.” Given Washington’s position that Serbia should recognize Kosovo independence, do you have much wiggle room in your diplomatic activities? I just returned from my first trip back to the United States, and I think I can say that Washington is, as always, very willing to work with those who are willing to work with us and to seek lasting solutions. You were a member of the U.S. delegation that made preparations for the signing of the Dayton Accords, but today some people suggest that this peace agreement has lost its relevance and is only hindering the proper functioning of Bosnia-Herzegovina. Can the Dayton Accords be amended without running the risk of deepening the existing crisis in that country? I’m the U.S. Ambassador to Serbia, so I’ll kindly repeat what my colleague at the U.S. Embassy in Sarajevo, Michael Murphy, said just a few months ago when he too arrived as the new U.S. Ambassador: “BiH requires functional, efficient, and accountable state-level institutions in which all leaders participate in good faith. It also requires functional, efficient, and accountable entities that are focused on building a democratic and prosperous future for their residents. Right now, BiH has neither. With this in mind, I will make it a priority to support the implementation of the Dayton Peace Accords, the subsequent state-level reforms that your elected officials supported and agreed to, and most importantly, Bosnia and Herzegovina’s sovereignty and territorial integrity.” It is my hope that President Vučić and Serbia will continue to also work towards these goals.

USA 2022

INTERVIEW

BARON LOBSTEIN, Economic Section Chief at the U.S. Embassy in Belgrade

Businesses Seek Stability & Transparency We still see great interest among American companies in investing and doing business in Serbia, but businesses are now naturally asking difficult questions about the future of trade relations and supply lines, in light of Russia’s war in Ukraine and broader economic uncertainties

aron Lobstein Economic Section Chief at the U.S. Embassy in Belgrade, is set to leave Serbia soon, bound for another post. We took the opportunity to speak with him about the most pressing issues confronting economies across the world, including Serbia, at this moment. This inevitably meant discussing the war in Ukraine, sanctions against Russia and the broader implications of these developments for the Serbian economy.

World leaders today talk mainly about the failures of globalization (broken supply chains, food and energy price inflation and an intellectual property (IP) regime) and advocate solutions like reshoring, nearshoring or ‘friend-shoring’ production. How strongly is this view represented in U.S. government and business circles? In my view, and in the view of most U.S. policymakers, the international rules-based

system remains the world’s best hope for lasting, broad-based, global prosperity. Globalization has not failed, but economists agree it has shown limitations. A global economic order must be governed by rules that provide for fair competition and consequences for abuse. And supply chains are only as good as the logistics networks that keep them functioning. In times of crisis, such as Russia’s war of aggression against Ukraine, as well as during surges of demand or supply, these supply chains come under strain. When countries respond by retreating from the global market—or by introducing export controls on key commodities—these actions only worsen economic shocks for the rest of the world. Of course, countries must provide for their economic security. This means having reserves or alternative sources of key resources in the event of emergencies or disruptions. To take one timely example, Germany, Serbia, and many other European countries are now learning the hard way that their excessive dependence on Russia for natural gas and oil was a mistake. We have long advocated for countries to diversify their sources of energy supply and, ideally, build up domestic production of renewably-sourced energy to boost self-sufficiency. Also, we learned during the Covid-19 pandemic—from Serbia’s example—that having multiple sources of vaccines and testing equipment is critical during a disease outbreak. This is not an argument against globalization, but in favor of diversity of supply and careful planning. Where are ‘friend-shoring’ production locations for U.S. companies and

ATTRACTIVENESS

CONCERNS

GRATITUDE

The acquisitions of Serbian electronic gaming companies 3Lateral and Nordeus by U.S. firms clearly demonstrate the attractiveness of Serbian innovation to American investors

Rule of law and transparency of enforcement are some of the issues Serbia will need to tackle if it wishes to continue attracting high-quality investment to this growing economy

I am proud to have been a part of the U.S. Embassy team working on a number of issues for the past three years, and I hope I can look forward to seeing our efforts bear fruit in future

how can countries become eligible to be considered ‘friend-shoring’ alternatives in a world that’s today marked by the war in Ukraine? Having a commercial relationship with the United States does not require passing a political test. Unlike some other countries, we do not choose our trading partners based on their loyalty to a political ideology, but rather based on their adherence to commonly accepted standards of fair competition and fair treatment. The global economy is a system with rules and standards that ensure fair commerce and competition for all who subscribe to them. Likewise, countries that show blatant disregard for those standards of conduct should face consequences, including economic and trade sanctions in extreme cases. I again cite the example of Russia, whose leaders have launched an unprovoked war on a neighboring country, destroying tens of thousands of lives, displacing millions, and causing global economic disruption. There can be no “business as usual” with such countries. Otherwise, rules are meaningless. Those who support Russia’s actions in Ukraine—by undermining the sanctions that have been put in place to respond to the Kremlin’s aggression—cannot expect the global community to protect their own principled interests in the future.

that are already in Serbia have reported positive, successful experiences here in general, but businesses are now naturally asking difficult questions about the future of trade relations and supply lines in light of Russia’s war in Ukraine and broader economic uncertainties. What is Serbia’s energy future? Will Serbia continue to make progress toward joining the EU? Executives of American companies have asked me these very questions in recent weeks, as they decide whether to invest in Serbia. The answers to these questions depend on Serbia’s choices. Accession to the EU, for example, requires that a candidate country align itself with the EU common foreign

the Balkans beyond their dim memories of the 1990s. In these conversations, I have always spoken positively of Serbia’s improving business climate and the activism of the American Chamber of Commerce, NALED, and other business associations that have made this improvement possible. I speak about the dynamic, young, intelligent workers who have created an exciting new ecosystem of technology companies. I talk about the Serbian government’s genuine interest in attracting foreign investment to help build up export-oriented industries. Serbia has a very promising story to tell. But almost every conversation then becomes more complicated. The companies ask me about corruption. They ask whether the judicial system effectively protects property rights and the sanctity of contracts. They ask whether their companies will be able to find enough qualified employees. They ask when Serbia might finally join the European Union. They wonder whether they will be able to power their businesses with clean energy sources here. These are important questions for every business executive considering a new investment. In the EU, business managers feel they can generally trust that rules exist and will be followed and enforced transparently. These are issues Serbia will need to tackle if it wishes to continue attracting high-quality investment to this growing economy.

U.S. Ambassador Christopher Hill recently said that Serbia has become a key investment destination in Europe, and further noted that American companies have invested over four billion dollars in Serbia and that there is still great potential for further growth. To what extent do these possibilities (for Serbian growth and new investments including nearshoring and friend-shoring) depend on Serbia’s political choices in relation to Russia? We still see great interest among American companies in investing and doing business in Serbia. American companies

In a real sense, Serbia is competing with the EU for its people’s future. This should serve as a stark message to Serbia’s leaders that they have no time to lose in bringing Serbia’s economic, legal, and political institutions and environment up to EU standards and security policy. Is Serbia prepared to do that? If not, what message does that send to the international business community? What will it mean for Serbia’s reputation globally? Of course, we hope Serbia will make the choice to align itself with Europe, where its true economic interests lie. In addition to political factors, which other factors do you see as being important to the decision-making process of every foreign company considering investing in Serbia? What has been shown by the experiences of U.S. companies in Serbia to date? In the three years that I have worked in Serbia, I have had the privilege to speak to many representatives of foreign companies who are considering investments here. Often these executives are not familiar with

The U.S. has offered Serbia alternative gas supply options that would ease Russia’s grip on the country’s energy, but how realistic is this plan in terms of logistics and vis-à-vis the potential environmental impact? Serbia has a number of alternative gas supply options available to it in the next two years that could help improve the country’s energy independence and security—if it actively invests and enters into contracts with alterative suppliers. Once the interconnector with Bulgaria is complete, Serbia can access supply from either the floating liquefied-natural-gas 13

USA 2022

INTERVIEW

enter foreign markets, they don’t start from scratch; usually they look to invest in existing startups with an impressive product or technology and the potential to grow. Serbia has become attractive to American technology investors specifically because Serbia’s business environment has become fertile ground for innovative startups like 3Lateral and Nordeus. This has happened through a combination of a strong education system and improved business regulation. If improvements continue, and if Serbia’s policymakers lead development in the right direction, these acquisitions are only the beginning of a much bigger future for Serbian innovation.

terminal at Alexandroupolis, Greece, now under construction, or the Trans-Adriatic Pipeline, which will expand its capacity if its market test later this year is successful. Serbia could also cooperate with Romania to receive natural gas from the Black Sea, as well as build a link to Croatia’s Krk gas terminal. Of course, any use of hydrocarbon fuel entails environmental consequences. We hope Serbia and other countries around the world will eventually move to 100-percent clean energy sources, but that will not happen overnight. Aside from Russia, Serbia is also focused increasingly on Chinese investments. How come we lost U.S. investors like U.S. Steel, and possibly the United States International Development Finance Corporation (DFC), only for them to be replaced by Chinese alternatives. Who is to blame, if anyone, and does this represent a lost diplomatic opportunity? When businesses decide to enter or exit a market, it is usually for commercial reasons. U.S. Steel made the difficult decision to sell the steel plant in Smederevo in 2012 in the wake of a global economic crisis that had resulted in several unprofitable years for the plant. Chinese company Hesteel took over the Smederevo plant four years later, by agreement with the Serbian government, in a different economic environment. DFC is a government agency, subject to shifting political priorities and budget resources. While DFC does not have permanent staff in Belgrade currently, Serbia 14

If the improvements continue, and if Serbia’s policymakers lead development in the right direction, acquisitions of successful startup companies are only the beginning of a much bigger future for Serbian innovation has not “lost” DFC, and I am not aware of any Chinese alternative. DFC is actively cooperating with the Serbian Ministry of Finance, the National Bank of Serbia, and commercial banks in Serbia to develop a $400 million loan guarantee program to benefit small and medium-sized businesses in Serbia that have been affected by current economic disruptions, including the Covid-19 pandemic. That program is moving ahead, and we hope to see more DFC-sponsored investments to promote Serbia’s economic growth and resilience. USAID is increasingly supporting not just the development of traditional SMEs, but also innovation projects with scale-up capacity. How attractive to U.S. companies is their potential for innovation? If you are looking for evidence of the attractiveness of Serbian innovation to American investors, you could start with the acquisitions of Serbian electronic gaming companies 3Lateral and Nordeus by U.S. firms in just the last three years. When American companies like these

On the flip side of the development coin, Serbia is facing a significant brain drain. How does the U.S. support Serbia in dealing with this challenge? Serbia is not alone in facing the challenge of brain drain. This is a problem in many countries in Europe, and especially in the Western Balkans. It is a complex problem with many causes. To a great degree, Serbia and other countries have become victims of the success of the European Union. Many people leaving Serbia are seeking opportunity and higher living standards in Germany, Austria, and other EU countries. In a real sense, Serbia is competing with the EU for its people’s future. This should serve as a stark message to Serbia’s leaders that they have no time to lose in bringing Serbia’s economic, legal, and political institutions and environment up to EU standards. We are working with our EU partners to support these efforts—it is the central motivation for everything we do here. We are doing it through assistance on economic inclusion for marginalized communities, by helping to bring new sources of financing to smaller businesses, and by advising U.S. companies that are interested in investing in Serbia and bringing new jobs here. We are ready to support regional economic integration efforts, and we are urging all parties toward near-term normalization of relations between Belgrade and Pristina. I am proud to have been a part of the U.S. Embassy team working on these and other issues for the past three years, and I hope I can look forward to seeing our efforts bear fruit in the coming years.

USA 2022

JELENA KNEŽEVIĆ, Partner, LeitnerLeitner

In addition to dealing with current topics emerging from new fiscalization and the electronic invoicing system, LeitnerLeitner – to the satisfaction of its numerous clients – is presently also dealing intensively with standard topics in the tax domain and relevant issues in the field of accounting

n accordance with recommendations contained in the Foreign Investors Council’s 2021 White Book, Serbia should work on solutions that encompass the digitalization of labor and legal documents, more flexible conditions for working from home, as well as more flexible conditions and procedures for terminating employment.

What are foreign investors most critical of regarding our economic environment? What should we work on? The latest publication of the Foreign Investors Council’s 2021 White Book recommended, among other things, amending the property tax law and ensuring the valuation of property at a fair value for corporate income tax purposes, as well as facilitating the use of digital signatures, so they become available to the largest number of citizens. The White Book includes analysis of nine areas selected as priorities, namely: taxes, labor regulations, digitalization and ecommerce, real estate and construction, illicit trade prevention and inspection oversight, food and agriculture, bankruptcy, foreign exchange regulations and pharmaceuticals. How significant for the economy as a whole is the new law on fiscalization and the digitalization of transaction operations through the system of electronic invoices? The main novelty of the new Law on Fiscalization is that every invoice is fiscalized at the moment a retail transaction is performed, and information on the transaction is forwarded to the Tax Administration in real time. The Tax Administration thus receives timely information on transactions, which enables better tax

BUSINESS

Digitalization Makes Business Easier

reduces the risk of error, increases transparency of operations and ensures delivery certainty, with which the better collection of receivables would be ensured. Additionally, the benefits to employers include a reduction in processing costs, storing invoices and, perhaps most importantly, preventing the possibility of changing the contents of an invoice, which enables greater operational security.

In step with new fiscalization, we are also approaching the introduction of the electronic invoicing system, as another step forward in the digitalization of operations control and collection. In step with new fiscalization, we are also approaching the introduction of the electronic invoicing system, as another step forward in the digitalization of operations. The idea of the electronic invoicing system is to speed up and simplify the operations of businesses, and it certainly also contributes significantly to the green agenda. Introducing electronic invoicing

LeitnerLeitner is known for its seminars, congresses and conferences. What are the most relevant topics today at your professional/ expert events? Considering that the most current topics in recent times emerge from the new fiscalization and electronic invoicing system, we have organized a large number of internal training courses for our clients that address these topics. As legislation has been changing rapidly in recent years, the training we organize always deals with topics that are current at that moment. Of course, there are standard topics in the tax domain that are always current, which includes current issues related to Value Added Tax, Corporate Income Tax/transfer prices, Personal Income Tax (payroll), Income Tax on Foreign Nationals (expats), as well as relevant current issues in the field of accounting. We regularly organize webinars on the topic of international taxation, where we work together with colleagues from our other offices across Europe to address certain topics and accordingly identify parallels between different tax environments in terms of similarities and differences, which has been recognized by our international clients and partners as being very useful and informative training. 15

USA 2022

INTERVIEW

STEFAN LAZAREVIĆ, AmCham Serbia President

Partnership Over The Long Term The American Chamber of Commerce in Serbia, AmCham, has represented an important pillar of American-Serbian partnership for 20 years already. Its goal is to work, through partnership with the Government of Serbia, to advance the business climate, promote the best business practices and values of America and Europe, and help its member companies period of weak growth and increased inflation. The European Commission, on its side, revised its 2022 economic growth forecast for the eurozone by 1.3 percentage points, down to 2.7%, while increasing its inflation forecast by 3.5 percentage points to 6.1%. The most significant negative factor is the rising price of energy, which has seen inflation soar to record levels at the European level, overburdening European companies and households. All of these factors are important to economic movements in our country. The research we conducted during 2021 showed optimism among member companies when it comes to their growth plans. Following the start of the war in Ukraine, we carried out a survey among member companies and the answers showed that they are less optimistic compared to last year, primarily due to the continued presence of the pandemic, the war in Ukraine, inflation and energy prices.

mCham will continue to work over the next decade to promote the values of American business and strive to hold a seat at every table at which advancing the economic environment is discussed,” says AmCham President Stefan Lazarević at the start of our interview, during which we summarized AmCham’s 20 years of activity in Serbia and its members’ expectations for the year ahead. 16

Given current economic developments globally, and the ways those developments reflect on the Serbian market, what kind of operational results do AmCham members expect? According to the latest reports of the World Bank, global growth is expected to contract from 5.7% in 2021 to just 2.9% in 2022. This means that the global economic slowdown is continuing, and is now entering the phase of a prolonged

In your opinion, and according to AmCham members, where does room exist for Serbia’s new government to improve conditions for doing business in the Serbian economy? Digital transformation, the agenda for an environmentally clean and energy efficient Serbia, advancing the health care system and business integration through regional initiatives are four priorities that AmCham and its members will work on intensively during the

PARTNERSHIP

INVESTORS

POTENTIAL

The American Chamber of Commerce’s AmChamps program, which was launched in 2014, serves as an example of how businesses and educational institutions should work together to educate young leaders

It is noticeable that the number of American investments in our country is growing year on year, that American companies feel good in our country and that they’re doing a great job of promoting Serbia further

AmCham encourages the Open Balkan initiative actively and strongly, primarily because we’re sure that such initiatives can provide a significant stimulus to activating the economic potential of the region

period ahead. We believe these priorities are key to the continued creation of a predictable and stable business environment, which is why we’re sure they’ll also remain among the top priorities of the next Government of Serbia. Alongside these four key tasks, as we’ve previously pointed out, improving the rule of law, judicial efficiency and the fight against corruption remain fundamental and crucial preconditions for advancing the business climate sustainably, which we are convinced the new government will also continue working on.

the Open Balkan initiative represents, first and foremost, an economic initiative for the improved integration of business within the scope of the region. When it comes to nearshoring, supply chains disruptions worldwide, caused by the Covid-19 pandemic and the war in Ukraine, have put nearshoring on the agendas of a large number of companies. With a view to the geographical position of the region, competitive tax regimes to attract foreign investments, and cultural similarities, this region could be interesting to European companies.

but it’s encouraging that work is being done in parallel on many tracks. For example, citizens of Serbia, North Macedonia and Albania could soon be hired in these three countries by showing only their Open Balkan Identification Numbers, with no additional administrative barriers, which would really be a huge step. In late 2021, the Agreement on Conditions for Free Access to the Labor Market in the Western Balkans, the Agreement on the Interconnection of Electronic Identification Schemes for Western Balkan Citizens, the Agreement on Cooperation in Veterinary, Phytosanitary, and Food and Feed Safety in the Western Balkans, and the Agreement on Mutual Recognition of Certificates of Authorized Economic Operators for Security and Safety (AEOS) were all signed and are now valid in all three countries. It is now important to speed up work on the implementation of these agreements, which we are supporting strongly.

What does the Open Balkan initiative mean to you and how do you view it in the context of the nearshoring trend that’s emerging in the wake of Covid-19? AmCham encourages the Open Balkan initiative actively and strongly, primarily because we’re sure that such initiatives can provide a significant stimulus to activating the economic potential of the region as a whole, which is an excellent thing. Even though it currently only includes Serbia, Albania and North Macedonia, the Open Balkan initiative, represents - as noted recently by Ambassador Hill - great support to the process of the accelerated accession of the region to the European Union, which is a goal that we support strongly. Enabling the free flow of goods, capital, services and people on the basis of the EU model will enable the growth of many sectors, and contribute to strengthening the economies of the region. AmCham will endeavor to also be a constructive partner in this direction by continuing to work with all participants. I would also add that the American chambers of commerce across the region work closely on a large number of issues, because we have common challenges and shared aspirations for a better business environment, and for us

The pandemic, the war in Ukraine, inflation and rising energy prices have led to reduced optimism among member companies, but - given the uncertainty – it’s pointless to predict future trends However, institutional inadequacies – the same ones hampering the countries of the region in the EU accession process – make such decisions somewhat more complicated. The Open Balkan initiative, as a platform that uses European standards as the basis for rules on the free movement of goods, people, capital and services in the region, is something that can ease and fast-track such decisions, but whether we, as a region, can take advantage of this crisis will depend on the effectiveness of implementing this initiative in practice. From your perspective as a businessman, where do you see the most room to improve the institutional framework in order to really bring the Open Balkan initiative to life when it comes to the flow of people, goods, and capital? When we speak of the institutional framework, there are many challenges,

AmCham has been active in Serbia for two decades already. With that in mind, which of your chamber’s many initiatives would you single out as being important to shaping Serbia’s market economy? The partnership between the United States and Serbia has lasted more than 140 years, and we are proud that the American Chamber of Commerce has been an important pillar of that partnership for the last 20 years. This year’s celebration of our important anniversary provides an opportunity to remind ourselves of our own top priority: improving the business environment, which we have been working on continuously, and in partnership with the governments of the Republic of Serbia, since 2001. Systemic work to improve the business environment cannot be effective in the short run, nor – in that sense – could we single out a couple of initiatives 17

USA 2022

INTERVIEW

that have provided key contributions to change. We have worked on this important task, and continue to do so, together with our members, with the Government of Serbia and with other important stakeholders in Serbia. Every step that each of us has taken in the right direction, and especially the systemic reform activities that we’ve witnessed since 2000, has meant a step in the right direction for all. The changes in the domain of the economy are significant and plain to see, even though all of us – both citizens and businesspeople – wanted those changes to come faster and be felt more. Still, we should be honest and remind ourselves of where Serbia was immediately after the democratic changes of 2000 and where we are today. Apart from regular topics like improving transparency and the rule of law, today we are also seeing topics like digitalization, energy diversification, and environmental protection high on the government’s agenda. What can U.S. investors offer in these fields? It is noticeable that the number of American investments in our country is growing year on year, that American companies feel good in our country and that they’re doing a great job of promoting Serbia further, which – as the largest country in the region – has imposed itself as a key investment destination. We are encouraged by the arrival of American investors in the services and manufacturing sectors despite the impact of the crisis on the volume of investment globally, which is of course also reflected in our region. The list of interests of American companies is traditionally topped by the IT and telecommunications sectors, various production activities, especially in the consumer goods sector, the pharmaceutical industry, the automotive industry, infrastructure and similar areas. We expect even higher interest in Serbia among American companies in the period ahead, and for certain in the areas you mentioned. Serbia has witnessed the gradual emergence of a large number of

have collectively invested more than 14 billion euros in Serbia and employ over 100,000 Serbian citizens. Our goal is to work, through partnership with the Government of Serbia, to improve the business climate, promote the best business practices and values of America and Europe, and to enable the continuous professional development of members and the improvement of education in accordance with the needs of the business community. We collaborate with all organizations and individuals who share the same values and strive for the same goals, and do so with great enthusiasm.

Digital transformation, the agenda for an environmentally clean and energy efficient Serbia, advancing the health care system and business integration through regional initiatives are four priorities that AmCham and its members will work on intensively during the period ahead business associations that bring together local and foreign investors. How strong is the competition among these associations today and what are AmCham’s strengths when it comes to enticing new members? At AmCham we don’t see other business associations as competitors, but rather as collaborators working on the same mission. AmCham gathers together more than 210 American, international and domestic Serbian companies that

Skilling, reskilling and upskilling are today, more than ever before, seen as top factors of employee competitiveness. How can the government and business associations work to influence the creation of an education system that’s more flexible and robust? Skills, or competencies, are the key currency of the future, and the speed at which one can adapt to new conditions, i.e., the ability to learn new skills, is an element that will determine the path of success or failure to a great extent – both when it comes to individual businesses and economies around the world. With this in mind, it comes as no surprise that the European Commission launched the EU Pact for Skills in late 2020, as a common platform for access to the development of skills. It is clear that this topic requires a synergetic approach and joint work among governments, businesses and educational institutions, and that each of these stakeholders has a crucial role to play in this process. The American Chamber of Commerce’s AmChamps program, which was launched in 2014, serves as an example of how businesses and educational institutions should work together to educate young people who possess the capacity to become leaders in the business community. Eight generations of final-year students and young managers have so far successfully completed this mentoring program, one of the basic elements of which is to develop a readiness for lifelong learning and the development of ideas and experiences.

USA 2022

NENAD ĐURĐEVIĆ, Sales Director Russia, SEE and Turkey, Ball Packaging

Ball Packaging Serbia produces about 1.5 billion cans a year, of which last year 55% were exported to more than 20 markets around the world. Their packaging is 100% recyclable, an unlimited number of times and with minimal loss

BUSINESS

Supporting Serbia's Trade Alance all Packaging, the largest American greenfield investment, believes that responsibility for the future of our planet is shared equally by all actors in society – the state, individuals and companies, and that this is why establishing circularity through an efficient recycling system is their top priority. Ball has been operating in Serbia for 17 years as the largest American greenfield investment and one of the largest exporters. What do the numbers say? Ball Packaging is a company that currently employs a total of 500 people in Serbia, 300 workers in our production facilities and another 200 in our global business center based in Belgrade. We have also become one of the largest exporters in the country. Belgrade has become an operational center for the entire Ball EMEA Global Business Services (GBS) team. We produce about 1.5 billion cans a year, of which 55% of our total production went to more than 20 markets worldwide over the past year. In this way, we provide enormous support to Serbia’s trade balance and the state economy. Since we opened our factory in Serbia, Ball has continued to invest continuously in production, we have expanded our production capacities, we have opened new production lines to be able to respond to market demand. In addition, we invest in the development of new technologies and in our staff, because they are our greatest asset. In your business, you emphasize the circularity and sustainability that cans provide as packaging. Do you plan investment in new technology for this?

Ball is a company that pays special attention to investing in new technology, not only to improve our business, but because we really base our business on circularity. We produce packaging that is 100% recyclable, an unlimited number of times, with minimal losses. Currently, 76% of cans are recycled in Europe, but with new investment we want it to be 90% by 2030. That is why we are investing in new technology that will contribute to the efficient establishment of recycling systems. Also, the electricity used in our production comes from renewable sources. And that is another mechanism we are developing to ensure complete circularity of our product. Ball has been educating the public about recycling for more than a decade. As one of the largest global manufacturers of ‘packaging of the future’, is this the best indicator that you are aware of your great responsibility? We also believe that education and the right information for customers, consum-

We are continuously investing in new technology that will contribute to the efficient establishment of recycling systems ers, is central in decision-making and responsible behavior towards the environment. That is why we are implementing several educational projects both globally and locally. We are especially proud of the Every Can Counts project, which is implemented in 20 countries around the world. Through this campaign, we raise awareness of the importance of recycling cans, especially those drinks that are consumed outside the home “on the go”. In this regard, we support festivals, various events, schools and offices in recycling their cans. We attend at least twenty events a year, some of them as big as EXIT. I would also like to single out our cooperation with educational institutions, and with our actions we have been present in about 450 schools. 19

USA 2022

BUSINESS

Coca-Cola System Opens Rosa Homolje Carbonated Water Bottling Plant In Neresnica The Coca-Cola System has officially opened a new bottling plant in Serbia, in the small town of Neresnica in the municipality of Kučevo, thereby continuing its significant investments in the Serbian economy and providing a strong incentive to economic development in the east of Serbia

his new bottling plant, the unveiling of which was attended by Serbian President Aleksandar Vučić, U.S. Ambassador Christopher Hill and numerous guests from the political and business world, will produce Rosa Homolje carbonated water. Five million euros is set to be invested in modernizing production and equipment in the first year alone, with 50 workers to be hired in the first phase. Speaking at the facility’s opening, President Vučić stressed that new investments are the best way to bring people back to the Homolje region and that the opening of this new bottling plant is an opportunity for new jobs and a new future. “We are talking about how important Coca-Cola is for the whole world and what it represents as a brand. That’s why we want Coca-Cola to enter every part of our country, just as it has entered every American household, because that means we’ll be stronger and more significant and that Serbia will progress faster. Wherever Coca-Cola arrives, people not only receive secure jobs, but it is also certain that we will have profit, a market and, first and foremost, assured quality,” said President Vučić, noting that the Coca-Cola System provides a significant contribution to improving Serbia’s export potential. The Neresnica bottling plant is the Coca-Cola System’s fourth major acquisition in Serbia over the last two decades, during which the Coca-Cola family has been joined by Vlasina’s Rosa water, Next Juices and food manufacturer Bambi. With its comprehensive 24/7 portfolio, as well as its partnership relations with the local community, this company has reaffirmed

its status is an indispensable partner of customers, consumers and the local economy. “Rosa Homolje marks the start of a new era and is our new growth driver, with which we will achieve an even greater contribution to the economy as a whole. With high quality and high production standards, we will raise the bar to an even higher level. We have plans to expand the capacity and export Rosa Homolje to the markets of the region,” announced CocaCola HBC Serbia and Montenegro General Manager Svetoslav Atanasov.

He added that the Coca-Cola System continues to be a reliable partner to the Serbian economy, and now also to its new home: the Homolje region. Rosa Homolje is sourced from the heart of untouched nature that is Homolje and represents a genuine refreshing change on the market. With this innovation, the Coca-Cola System in Serbia has once again showed that it monitors consumer desires continuously, but also that – as a proven market leader – it recognizes and creates trends, thereby contributing to the development of the market as a whole. “We are extremely proud of the new member of our portfolio, Rosa Homolje carbonated water, which is sourced from high-quality, calcium-rich springs that are over 20,000 years old. With strong brand positioning, we want to approach consumers with a message of the impressive quality that characterizes our new product,” said Coca-Cola Country General Manager for Serbia, Montenegro and North Macedonia, Luca Santandrea. Since opening its first bottling plant in Serbia back in 1968, the Coca-Cola System has invested continuously in the community, creating both jobs and new values, while at the same operating in accordance with the highest environmental protection standards. According to the latest data available, related to 2019, production and trade in the products of the Coca-Cola System brings 291 million euros of added value to the Serbian economy, equating to 0.6% of the Republic of Serbia’s GDP. The system employs 1,700 people directly and supports another 14,400 jobs in related industries and sectors of the Serbian economy.

USA 2022

TIJANA KOPRIVICA, Director of Sustainable Business, Delta Holding

After the successful outcome of the Our Village project, which launches agricultural development and village renewal, Delta Holding recently began a new venture: The Digital Village. They are on the right track, as shown by global events, which increasingly suggest that the production of healthy food is the world’s number one priority

ur firm determination to take care of the environment is reflected, among other things, in the use of alternative energy sources and electric delivery vehicles. Our goal is to use at least 60% energy from renewable sources by 2030 - reveals Ms. Koprivica in this interview for our magazine. If it were up to you at Delta Holding, Serbian villages would be more developed and tempting to live in than Swiss ones. Do you think that agriculture is our development opportunity? Our villages have great potential for development and we believe that it is very important for Serbian agriculture and for the economy as a whole to revive it. That is why we launched the Our Village project to show that a comfortable village life is possible. The aim of the project is to improve the quality of life in rural areas through improved economic conditions and social life. We have recognized that it is possible to encourage revenue growth by educating small producers about modern agriculture, supporting investment, marketing and improving other business skills. We have been talking for a long time about the fact that agriculture is our great chance for development, because Serbia is rich in fertile land which, with proper use, can be turned into a gold mine. Can you tell us a bit more about your Digital Village venture. What kind of project is this?

BUSINESS

Agriculture Is Our Great Development Opportunity taking part, and we expect that in the coming years more than 100 farmers in Mokrin will join us.

Educating small producers about modern agriculture, and supporting investment, marketing and improving other business skills encourages revenue growth

How do you provide all the electricity for your own needs, besides installing solar panels? We mainly provide electricity from conventional sources, but our goal is to use at least 60% of energy from renewable sources by 2030. Solar power plants have already been installed at seven locations, so that four of our factories, two cold stores and the Napredak farm will replace 30% of electricity from conventional sources with solar energy. In addition to solar panels, the capacity of the biomass boiler at the Seme Sombor factory was expanded during 2021; this uses corn waste in the process of drying corn. Smaller biomass boilers also exist for heating the facilities on the Jedinstvo estate in Apatin and Napredak in Stara Pazova. A project is being prepared for a solar power plant at the Sava Center, and other locations will be considered for solar panels and a biomass boiler.

We started the Digital Village project in Mokrin, together with our partners BioSense and Mokrin House. The main goals of the project are education in modern agriculture and the use of digital technology to facilitate the work of producers, making them more competitive on the market because they reduce investment and increase yields. The project is expected to last for three years. Currently, 30 farms are

Your online shop Pineapple uses electric delivery vans. What are the environmental benefits? Electric vehicles do not emit harmful gases while driving. Of course, during the production of parts and electricity for charging batteries, a certain amount of carbon dioxide is emitted, but the total carbon dioxide emission is far lower than for vehicles powered by internal combustion engines. 21

USA 2022

INTERVIEW

DENNY ROBERTSON, USAID Serbia Mission Director

Striving To Support Serbia In Advancing Its Growth We will continue working together with all willing Serbian partners – from government, to media, to civil society and small business – to help Serbia fully integrate into European structures, and to help the country achieve its full political, social, and economic potential ~ Denny Robertson

e have two long-term goals that we share with our Serbian partners. The first is to help citizens access reliable information, engage with their government, and work collaboratively to meet today’s challenges and chart a better future. Our second goal is to help all of Serbia’s people prosper by helping businesses grow and access new economic opportunities - says USAID Mission Director Denny Robertson, with whom we discussed the USAID legacy in Serbia and future plans. In addition to the aforementioned goals, USAID also focused on helping Serbia mitigate the impact of Covid-19 during the past few years. “Serbia’s response was strong. So, USAID helped fill the gaps by delivering diagnostic equipment, ambulances, and public health education. We are now supporting health professionals in their outreach to increase acceptance of vaccines”, explains our interlocutor. “Our USAID projects touch so many people throughout Serbia, but we’re particularly pleased that, during the last year, we reached millions of citizens with information about digitalization and cybersecurity; our civil society partners managed to collect 70 tons of food for the country’s most vulnerable families, and to increase Serbia’s philanthropic giving rank from 129th to 48th worldwide; we helped 164 small businesses and 3,231

ENVIRONMENT

IMPACT

RESPONSIVENESS

We will soon focus on helping Serbia to protect its environment and biodiversity by working on capacity building, sustainable financing mechanisms, and increasing citizen engagement

Our USAID projects touch many people throughout Serbia, from fruit and vegetable growers, to millions of citizens who’ve received valuable information about digitalization and cyber security

During the Covid-19 pandemic, we modified almost all of our activities here in Serbia to work in the context of the pandemic and to meet Serbia’s most pressing needs

fruit and vegetable growers to grow their exports and export to new markets; we facilitated $58 million in loans to small businesses and established a revolving fund with municipalities to provide micro-loans for farmers who lack access to banking services; and, we helped attract investments in women-led businesses worth $3 million”, says Roberts.

proach. For example, our programs on innovation were designed to help Serbia seize the emerging opportunities offered by the knowledge-based economy. In addition, we are now designing programs to increase the economic inclusion of marginalized groups, based on new assessments and the application of sustainable development tools. Overall, all our programs have built-in flexibility, so we can modify the focus during implementation when needed. This became especially important during the Covid-19 pandemic, and we modified almost all of our activities here in Serbia to work in the context of the pandemic and to meet Serbia’s most pressing needs.

USAID is helping strategically and financially in all reforms important for Serbia’s EU accession path. Which areas do you see as critical for the acceleration of this process? It is no secret that improving the rule of law is critical. Serbia needs to reduce political influence in the judiciary, and opportunities for corruption, in order to meet EU accession requirements and, just as importantly, to meet the demands of its citizens. While working for many years with the judicial sector, we have seen notable improvements on efficiency, yet the independence of the judiciary and related anti-corruption concerns remain. We are now focused on helping to address

How flexible is your assistance in terms of radical changes in the economic environment at the global and European level? We strive to adapt to changing conditions, needs, and opportunities, and to learn continuously, all in order to improve USAID’s development ap-

USA 2022

INTERVIEW corruption issues, especially in public procurement. Public procurement represents nearly nine percent of Serbia’s GDP, and surveys show that citizens believe corruption is rife. Corruption hurts citizens directly when resources are siphoned off, rather than used to resolve priority issues. Rightfully, citizens get angry when a public square is falling apart before it is finished because of shoddy materials and workmanship. If citizens have more information about where money is being spent and how it is being awarded, and if government bodies have increased capacity to manage the process transparently and improve the quality of the tendering process, Serbia can make real progress in meeting the demands of its citizens. How much are the digital evolution and innovation present in your support programs for Serbia? For Serbia to realize its economic aspirations, its talented young people need to see their futures here. We’re committed to helping Serbia develop its knowledge-based economy and fight brain drain. Serbia has the talent to succeed. The challenges are nurturing, unleashing, but also holding on to that talent. We are working through the Venture an Idea program to instill innovative and agile mindsets among the youth, improve mechanisms to support startup companies, and improve connections between business and academia. Our 24

While working for many years with the judicial sector, we have seen notable improvements on efficiency, yet the independence of the judiciary and related anti-corruption concerns remain. We are now focused on helping to address corruption issues, especially in public procurement Serbia Innovates project complements this by identifying promising areas for innovation (web3 and blockchain; agri-tech, gaming and virtual reality; and biotech/health tech), and is helping network firms in these areas to establish Serbia as a global leader in at least one of those domains. Through our Media.Innovation project, we are supporting the digital and business transformation of digital media, information and communications sector stakeholders - in particular small media outlets and digital startups - so they can be competitive in the new digital economy, support access to accurate information, and increase public digital literacy skills. We also partner with government institutions to increase the digital literacy skills of people working in the public sector and in education, as well as the general population. If we look back at USAID’s work since 2000, what do you see as major

game changers when it comes to helping the Serbian economy to develop into a market-oriented economy? When USAID started working here in 2000, only one-third of Serbia’s output came from the private sector, and most state-owned enterprises were in serious decline. Helping kickstart the private sector, make it easier to do business, and attract investment were major priorities. Our support for drafting the Law on Planning and Construction and the establishment of one-stop shops and e-permitting helped Serbia jump over 140 places on the World Bank’s Doing Business index. We also provided local governments with the tools to attract investors and to support existing businesses. Our work with local governments helped them to realize that they could, and should, be driving local economic development. What do you see as new areas for future interventions? USAID will soon launch an activity to help Serbia protect its environment and biodiversity by working on capacity building, sustainable financing mechanisms, and increasing citizen engagement. We will soon have a new activity to increase equity for economically disadvantaged groups, including people with disabilities and LGBTQI+ people, to address barriers to inclusion, provide technical assistance, and engage the private sector to identify and implement market-driven solutions. We are expanding our assistance in the energy sector to support increased efficiency and the use of renewable energy. We will help to address obstacles that impede expanded use of energy efficiency and renewable energy measures and encourage private sector engagement. USAID will work on strengthening regional ties among youth to build mutual understanding, trust, and empathy. We believe that the positive engagement of youth across borders will contribute to shared goals of peace and prosperity. So, in short, we will keep on working, together with all willing Serbian partners – from government, to media, to civil society and small business – to help Serbia fully integrate into European structures, and to help Serbia achieve its full political, social, and economic potential.

‘Supply Chain’ As A Trademark

BUSINESS

Dell Technologies is one of the largest technology companies in the world, with more than 150,000 staff in almost 200 countries and a wide portfolio of products and solutions. From the very beginning, this company has paid attention to the fight for equality and various forms of commitment to the community

USA 2022

ALEKSANDAR ANTIĆ, Sales Director, Adriatic and Bulgaria, Dell Technologies

ith the help of its partner network, Dell has participated in various CSR projects in Serbia, but they also want to increase their participation in this field. The opportunity to change something for the better or help someone is great motivation for both Mr. Antić and his team.

For decades, Dell has been one of the leading IT companies changing the world and driving progress. Has this been so since this family company was first established? Dell Computer Corporation was formed in the ’80s at a time when Michael Dell was not even 20 years old. In the early 2000s, the company became the largest manufacturer of PCs in the world. One of the most famous features of Dell from that time is its superior supply chain, and the company is still recognized by this. Six years ago, in 2016, our largest technology acquisition was made. Dell Technologies bought EMC2 for USD 67 billion, becoming one of the largest technology companies in the world. We know that you unreservedly believe in the power of technology. Is that our future? Although the share of IT in world GDP is relatively small (estimated at around 4%), more than 60% of the world economy is directly dependent on IT, and this percentage will continue to grow. In today’s business environment, the goal is to use ‘data-based decision making’ which, with common sense and a good knowledge of the market and trends, can provide a major advantage to companies in a dynamic competitive market. Besides business challenges, there

Dell Technologies has publicly proclaimed the goal of 50% female staff by 2030 are a handful of positive examples from other fields. One example is healthcare, from our eGovernment during a Covid pandemic to diagnostics or surgeries performed using technology. There are also many examples of the use of technology in teaching, public administration etc. (e.g. Oko Sokolovo in Belgrade, the parking system, smart waste disposal and recycling around the world). Technology is the present and the future, but on the other hand, don’t forget that you should leave enough time for yourself and your loved ones without technology. You set extremely high standards for yourself when it comes to devotion to the community, the fight for equality, trust and commitment, and

in showing care for others. Does that inspire you and motivate you to achieve the impossible? From the very beginning, Dell Technologies has paid a lot of attention to the fight for equality and different forms of commitment to the community. The company has publicly proclaimed the goal of 50% female staff by 2030, and internally there are many initiatives that encourage people to respect other people’s rights, to defend their rights to diversity. Commitment to the community in the case of a technology company like Dell has many facets. It starts with the materials used to make and package the equipment and continues with insistence on the equipment’s energy efficiency, responsible recycling, and participation in activities around the world in various socially responsible and humanitarian projects. One of the examples is the socalled Dell Giving, where Dell matches its staff’s donations in various humanitarian actions. 25

USA 2022

INTERVIEW

VERA NIKOLIĆ DIMIĆ, Executive Director, AmCham Serbia

Success Makes Us Raise Our Ambitions AmCham will continue to promote the values of American business and to be at every table with a discussion of improving the business environment, investment conditions, employment and respect for the highest business standards

hen we started the American Chamber of Commerce in Serbia 20 years ago, we believed that the Serbian economy had a strong need for an association based on international business experience and knowledge of local circumstances that would be a partner of industry and government in creating a competitive business environment. Today, I can proudly say that with dedicated work we have exceeded even the most optimistic expectations ~ says AmCham Executive Director Vera Nikolić Dimić, with whom discussed the results of the Chamber’s work in the last two decades, and looked ahead.

“Today, AmCham Serbia is a business association that brings together more than 210 American, international and local companies that have invested over 14 billion euros in Serbia and that employ over 100,000 Serbians. Our mission is to improve the business climate through partnership with the government, promote best business practices and values, provide a platform for professional development of members and improve education according to the needs of the business community,” says our interviewee. “From the very beginning, we’ve believed deeply in systematic work on improving the business environment and in long-term

effects. We set priorities in cooperation with our members, the Serbian government and other important participants in economic life.” The Executive Director says that AmCham will continue to work ambitiously in four priority areas: the digital transformation, the agenda for an environmentally clean and energy efficient Serbia, improved health care systems and business integration through regional initiatives. “We will strive to promote the values of American business and we will try to be at every table where we discuss improving the business environment, or other topics related to better con-

NETWORKING

We are proud that AmCham has grown into a platform for business networking, learning and development. We will continue to work dedicatedly and ambitiously on all these tasks in the decades ahead

ditions for investment, employment and respecting the highest business standards,” says Nikolić Dimić. In which areas of expertise can AmCham contribute most to improving the business climate in Serbia? I don’t think you will be surprised if I say that there is no area of business and management in which our member companies do not have expertise and experience. But I also believe that AmCham is the most recognizable and highest contributor in the areas we have identified as a priority and therefore formed 10 expert committees in our organization. These are the committees for economic and business law, the fight against the gray economy, the digital economy, health, energy, the environment, labor law, real estate, finance and taxes, and the facilitation of foreign trade. What attracted the country’s leading investors to choose AmCham as their association? In the first place, serious investors recognize our determination to tackle the most complex challenges, that we are ready to listen and talk, that we have the capacity to fight for the voice of our members, but above all to be a constructive partner focused on the essential, on proposals and solutions. We like to say that as a partner we are equally useful to industry and the state, that we do not hesitate to say what we think, but we also roll up our sleeves so that our solutions for improving the system do not remain just a dead letter. At the same time, we support the efforts of other business associations whose goal is also to improve business conditions and encourage competition, and in this business there is room for all of us who believe that Serbia should remain a key investment destination in the years ahead.

CONSISTENCY

FOCUS

In the first place, serious investors recognize our determination to tackle the most complex challenges, and our capacity to fight for the voice of our members in a constructive way

AmCham has profiled its activities in three important areas: improving the business environment, networking and promotion, and professional development

How do you coordinate AmCham’s goals with other actors - both American and Serbian? One principle is the key: partnership! We talk to all participants in business life, and decision makers in various fields. We are a credible partner and all of them also want to meet at the table where the Serbian economy, finances, regulations, and the like are discussed. As far as specific priority areas are concerned, every year we conduct the now traditional “As Time Goes By” survey on the business climate and investor confidence, and based on the findings we determine our direction for the next period.

sustainable improvement of the business climate.

We like to say that we are an equally useful partner to industry and the state, we don’t hesitate to say what we think, but also to roll up our sleeves so that our solutions for improving the system do not just remain on paper This research, and there have been nine surveys so far, gives an overview of the perception of AmCham’s membership about the business environment in Serbia and their current business and plans for next year. The research provides a complete X-ray of the Serbian economy, including the attitudes of micro, small and medium enterprises. The latest research at the end of last year showed that regardless of the challenges of the pandemic, our members see long-term improvement of the business climate in institutional reforms. Improving the rule of law, the efficiency of the judiciary and the fight against corruption are still cited as indispensable conditions for the

Which of AmCham’s activities and services would you single out as the most important for both the membership and the wider community? AmCham has profiled its activities in three important areas: improving the business environment, networking and promotion, and professional development. Our mission is to support companies of all sizes and from all sectors in creating a dynamic economy that achieves growth and offers our people opportunities for better standards and new jobs. Our combination of field experience and the top expertise of our member lawyers enables our committees to draft opinions and propose processes, rules and regulations to improve the business environment. They are in touch with key decision makers and policy makers and law enforcement agencies, but also in regular communication with the media. At the same time, our business networking and promotion platform provides a wide range of opportunities to establish business contacts and further activities to promote company brands, from high-level meetings to one-on-one meetings and networking. All our activities have in common that they enable direct contact with current and future users or clients. Our need is to support business growth, and the best way to do that is to provide members with opportunities for professional development and thus enable our members’ most talented staff to realize their full leadership potential. In cooperation with our member companies, especially through the program AmChamps or Women in IT, as well as the HR Forum, which brings together the most professional experts in human resource management in Serbia, we offer programs tailored to the needs of professional development and education. 27

USA 2022

BUSINESS

ROSANDA MILATOVIĆ SKORIĆ, SAS General Manager for the Adriatic Region

In Data We Trust

With experience of 46 years, SAS is the founder and future of advanced analytics and the global leader in advanced analytics and artificial intelligence. Currently operating in 150 countries, SAS clients include 88 of the top 100 Fortune 500 listed companies social benefits and providing high quality services to citizens. We also provide analytical support to Smart City initiatives around the globe.

ur software has been installed on more than 80,800 websites because we believe that analytics should be experienced by everyone, no matter if their role is data scientist, business analyst or executive - says SAS General Manager for the Adriatic Region Rosanda Milatović Skorić.

In order for people to thrive in the future, it is our duty, as leaders, to promote data literacy, both in the corporate world and in society at large

How come SAS is the leader in analytics? What makes you so superior? I believe that this position stems from our realization that it is not data alone that drive an organization, but data-informed decisions. After the shock of the global pandemic, and in the midst of increased volatility in global markets, we understand that we are not only in the business of developing software and solutions (no matter how innovative they are) but, most importantly, on a mission to build people’s confidence in making informed decisions and finding insights in the data. At the same time, we invest in building data analysis technologies that are explainable, transparent, free of bias and fair, to enhance public trust in data-driven decisions, and to convey this trust to business organizations and public institutions.

Who are the users of your products and services? We determine daily the power that machine learning and AI have in making the world a better place; from our very beginnings, when SAS dedicated its expertise to agriculture for better crops, until the break-out of Covid-19, when our algorithms were placed at the disposal of governments to combat the pandemic, we know for sure that data can drive us towards a better world and a future of equal opportunities. We are present in industries that are fundamental to the digital transformation of nations, such as the financial services, telecommunications, life sciences, critical infrastructure, and education. We also support governments around the world in combating fraud, encouraging tax compliance, ensuring the fair distribution of

Your company strives to ensure digital literacy is accessible to everyone, as you believe this is an essential life skill. How important is it to know how to collect, interpret, understand and use data? The unbiased nature of data and algorithms can certainly lead to an inclusive future of equal opportunities. But they can also create another discrimination, between data literate people and those not acquainted with data. In order for people to thrive in the future, it is our duty, as leaders, to promote data literacy, both in the corporate world and in society at large. Since the beginning of our journey, we have paved the way for this kind of future with a vast array of simple solutions, user-friendly for the majority, but also smart enough to meet the highest expectations of the global economy. We believe in the power of ecosystems and share our vision of the Democratization of Analytics and AI, because the migration of analytics applications to the public cloud also marks an opening of these environments to profiles of nonspecialists. For example, SAS Viya is an open platform that any company can use to accelerate its digital transformation, no matter what systems and applications it already uses. We are also actively investing in enhancing data literacy as a skill for everyone, and especially for the generations who are about to enter the business world. In this context, we are proud of our strategic collaboration with universities across Adriatic region, such as the Faculty of Organizational Sciences of University of Belgrade, as we aspire to help future leaders develop the skills needed to solve tomorrow’s problems.

USA 2022

AmCham Serbia

Two Decades Of Leading The Change ‘Digital transformation, an agenda for an environmentally friendly and energy efficient Serbia, enhancement of the health service, and business integration through regional initiatives: these are the four priorities AmCham and its members will focus on in the future. We believe these priorities are key to continuing our endeavour to create a predictable and stable business environment, and that we will continue working with the incoming Serbian Government in these areas’, said Stefan Lazarević, AmCham’s Chairman of the Board, at an event to mark the 20th anniversary of the association

mCham brings together more than 210 American, multinational, and domestic companies that have invested more than 14 billion euros in Serbia and that employ in excess of 100,000 Serbians. Our goal is to partner with the Serbian Government to improve the investment climate, promote best American and European business practices and values, ensure our members have access to continuing professional development, and help improve the education system to better address the needs of the business community - Mr Lazarevic added. The event marking two decades of AmCham was also attended by Serbian Prime Minister Ana Brnabić and many representatives of AmCham members, prominent Serbian and foreign businesses, and media outlets, as well as cultural and public figures.

USA 2022 32

Congratulating AmCham on its 20th anniversary, Prime Minister Brnabić remarked: “Over the past twenty years, AmCham has always been a strong and reliable partner to the Serbian Government: we have worked together to create a better business environment, helping Serbia become a global leader in attracting foreign direct investment. Together we amended key laws, overhauled public administration, designed rule of law reforms to ensure the Serbian judiciary was completely independent, and gave the Serbian economy the security and safety it needed to invest and grow. On this occasion, let me thank you for believing in Serbia and for supporting the Serbian Government on this path”. AmCham will continue to promote American business values and strive to join every discussion on how to enhance the business environment and any other matter that helps the country attract more investment, create new jobs, and achieve the most demanding global standards in all fields of doing business.

USA 2022

Bilateral Trade Exchange

Investments Yet To Convert Into Significant Bilateral Trade Although trade cooperation between the U.S. and Serbia remains below the level of a billion dollars, the two countries are increasingly finding new opportunities to cooperate. And a strategic partnership agreement would make the implementation of joint projects easier, especially in the energy sector

conomic cooperation between Serbia and the United States during the recent past has been marked largely by the investments of American companies in Serbia. The top American investments in Serbia are those of Philip Morris, Pepsi Co,

Coca-Cola, Ball Corporation, Cooper Tire & Rubber Company and Microsoft. Among the most prominent are also Cooper Tires, Johnsons Controls, Sharps Terminator, NCR, Sitel, VelaTel Global Communications, Oracle, and EMS. According to data of the National

Bank of Serbia, Serbia’s central bank, net investments of U.S. residents in Serbia over the previous ten-year period (2010 to 2019) exceeded half a billion euros, ranking the United States 15th among investor countries in Serbia. Additional investments worth 79.1 million euros

arrived in 2020, followed by 23.8 million euros in Q1 2021. Serbia nevertheless remains among the U.S.’s smallest trade partners. Bilateral trade numbers remain below the billion-dollar mark, which could be considered an encouraging number, with the trade exchange totaling around $850 million in the pre-pandemic year. According to available data, export from Serbia mostly consists of cars and motor vehicle engines and engine parts, while imports are dominated by medical equipment and other sophisticated products. U.S.-Serbian cooperation is expected to strengthen in the agricultural and food sector, in the metal (auto parts and metal processing), textile and furniture industry, and in the purpose-built industry, which in the previous period recorded significant exports of hunting and sports ammunition. The exchange of services has become increasingly important in the total exchange between the two countries, reaching a value of 910 million dollars prior to the outbreak of the pandemic, with Serbia even having a surplus. The fast-growing Serbian ICT sector has special potential to further increase the exchange of services between the two countries. Serbia’s preferential trade status is regularly extended, which allows businessmen from the country to export more than 3,500, mostly industrial and agricultural products, to America dutyfree, or with minimal tariffs. However, given the large differences in the complexity of the products produced by the two countries, it is unlikely that this cooperation will increase significantly. Namely, the further movement of Serbia towards joining the European Union will always have an advantage in relation to other more complex destinations. The Serbian public expected great things from the opening of the Serbian office of the American Corporation for International Development Finance (DFC), which would cover the entire region from here. The basis for such expectations was the signing of an agreement between Serbia and the United States on investment incentives, which created the institutional conditions to

The digital economy and the IT sector have been recognized as the pillars of future Serbia-U.S. cooperation, while major project-based cooperation with U.S. companies could be achieved in the digitalization of the Serbian health care sector strengthen support for Serbian and other Western Balkan companies - micro, small and medium-sized enterprises, large private sector investment projects, and infrastructure development. Indeed, U.S. companies began appearing in infrastructure projects after the Memorandum of Understanding on infrastructure cooperation was signed in September 2018 by Zorana Mihajlovic, Serbian Deputy Prime Minister and Minister of Construction, Transport and Infrastructure, and Kyle Scott, then U.S. Ambassador to Serbia. In accordance with this memorandum, in December 2019, a commercial agreement was signed between the Serbian government and the Bechtel-Enka consortium

(U.S.-Turkey), for the construction of a 112-kilometer corridor along the PojatePreljina section. Recently, the two sides exchanged views suggesting that this cooperation be raised to a higher level, for example via the boosting of Serbian cooperation with U.S. companies and institutes in the field of energy diversification and renewables, as well as in the digital economy and R&D. The digital economy and the IT sector have been recognized as the pillars of future Serbia-U.S. cooperation, while the parties also concluded that major projectbased cooperation with U.S. companies could be achieved in the digitalization of the Serbian health care sector. It was also stated that a strategic partnership agreement would make the implementation of joint projects easier, especially in the energy sector. It was noted that Serbia remains in the initial phase of energy transition and requires new capacities, primarily in the electricity sector. According to the announcement, priorities include investments in new capacities, energy efficiency improvements, and diversification in the gas sector, especially in light of the crisis in Ukraine. 35

USA 2022

JACKSON POLLOCK (1912-1956), American painter

Liberating breakthrough Of Jackson Pollock Pollock’s lifelong intensity and, at its peak, sublimity do not pale. The trajectory of his too brief career retains a drama, as evergreen as a folktale, of volcanic ambition and personal torment attaining a liftoff, with the drip technique, that knitted a man’s chaotic personality and, with breathtaking efficiency, revolutionized not only painting but the general course of art ever after

t can be argued, and has been, that the matter-of-factness of Pollock’s flung paint germinated minimalism. There’s even, for anyone susceptible to it, a lingering nationalist sweetness: Pollock’s peak period as the V-E Day of American art.

Paul Jackson Pollock was a major force in the abstract expressionist movement. His abstract mannerisms contained in his action paintings demonstrated Pollock’s great interest in exposing the workings of the subconscious mind through a seemingly incongruous

arrangement of the subject matter. This dream-like art, based on familial memories of his environment, became Pollock’s responsibility to initiate his own personal and spiritual transformation and to influence others with this change towards a new pictographic

imagery. Pollock underwent many changes in his portrayal of artistic imagery demonstrating that life can be layered in many ways but never hidden from oneself. Pollock was eighteen when he arrived in New York from California, in 1930, and began to imbibe the influences of Thomas Hart Benton, who was his teacher at the Art Students League, and the Mexican muralists. The early works in the show are a thrill ride of quick studies, as Pollock devours those models and then suggestions from Picasso, Miró, and André Masson—paying off in lyrically inventive engravings, from the early forties, that are a revelation here. Pollock was always Pollock, though he was long in agonizing doubt, notably about his ability to draw. Dripping brought a rush of relief, as he found a steadying and dispassionate, heavensent collaborator: gravity. Drawing in the air above the canvas freed him from, among other things, himself. “Number 31” is the feat of a fantastic talent no longer striving for expression but set to work and monitored. He watched what it did. We join him in watching. Pollock redefined painting to make it accept the gifts that he had been desperate to give. Any time is the right one to be reminded of that. In October 1945, Pollock married his long term lover Lee Krasner and in November they moved to what is now known as the Pollock-Krasner House and Studio in Springs on Long Island, New York. Peggy Guggenheim loaned them the down payment for the wood-frame house with a nearby barn that Pollock made into a studio. It was there that he perfected the technique of working spontaneously with liquid paint. Pollock was introduced to the use of liquid paint in 1936, at an experimental workshop operated in New York City by the Mexican muralist David Alfaro Siqueiros. He later used paint pouring as one of several techniques in canvases of the early 1940s, such as “Male and Female” and “Composition with Pouring I.” After his move to Springs, he began painting with his canvases laid out on the studio floor, and developed what was later called his “drip” technique, although “pouring” is a more accurate description of his method.

THE KEY, 1946

UNTITLED, 1942-1944

“My painting does not come from the easel. I prefer to tack the unstretched canvas to the hard wall or the floor. I need the resistance of a hard surface. On the floor I am more at ease. I feel nearer, more part of the painting, since this way I can walk around it, work from the four sides and literally be in the painting”

He used hardened brushes, sticks and even basting syringes as paint applicators. Pollock’s technique of pouring and dripping paint is thought to be one of the origins of the term action painting. In the process of making paintings in this way he moved away from figurative representation, and challenged the Western tradition of using easel and brush, as well as moving away from use only of the hand and wrist; as he used his whole body to paint. In 1956 TIME magazine dubbed Pollock “Jack the Dripper” as a result of his unique painting style. In the late 1940s, Pollock’s drip paintings categorically redefined how we understand art. This moment saw the art world’s center of gravity shift for the first time away from the museums and galleries of Paris and into the streets of New York. With his revolutionary new technique, Pollock effectively upended the existing framework of traditional painting practices. True drip paintings were—and still are—the ultimate in mid-century American avant-garde, and are rare to come across in the secondary market. Number 31 is a superb example. It is a fantastic, frenetic combination of rich hues—straight from the paint can. It stands as a brilliant demonstration of Pollock’s rigor and effusiveness. Pollock observed Indian sandpainting demonstrations in the 1940s. Other 37

USA 2022

and would not stop until he saw what he wanted to see. Studies by Taylor, Micolich and Jonas have explored the nature of Pollock’s technique and have determined that some of these works

“I continue to get further away from the usual painter’s tools such as easel, palette, brushes, etc. I prefer sticks, trowels, knives and dripping fluid paint or a heavy impasto with sand, broken glass or other foreign matter added” influences on his pouring technique include the Mexican muralists and also Surrealist automatism. Pollock denied “the accident”; he usually had an idea of how he wanted a particular piece to appear. It was about the movement of his body, over which he had control,

mixed with the viscous flow of paint, the force of gravity, and the way paint was absorbed into the canvas. The mix of the uncontrollable and the controllable. Flinging, dripping, pouring, spattering, he would energetically move around the canvas, almost as if in a dance,

display the properties of mathematical fractals; and that the works become more fractal-like chronologically through Pollock’s career. They even go on to speculate that on some level, Pollock may have been aware of the nature of chaotic motion, and was attempting

STENOGRAPHIC FIGURE 1943 38

to form what he perceived as a perfect representation of mathematical chaos - more than ten years before Chaos Theory itself was discovered. In 1950 Hans Namuth, a young photographer, wanted to photograph and film Pollock at work. Pollock promised to start a new painting especially for the photographic session, but when Namuth arrived, Pollock apologized and told him the painting was finished. Namuth’s comment upon entering the studio: “A dripping wet canvas covered the entire floor…. There was complete silence…. Pollock looked at the painting. Then, unexpectedly, he picked up can and paint brush and started to move around the canvas. It was as if he suddenly realized the painting was not finished. His movements, slow at first, gradually became faster and more dance like as he flung black, white, and rust colored paint onto the canvas. He completely forgot that Lee and I were there; he did not seem to hear the click of the camera shutter… My photography session lasted as long as he kept painting, perhaps half an hour. In all that time, Pollock did not stop. How could one keep up this level of activity? Finally, he said ‘This is it.” Pollock’s most famous paintings were during the “drip period” between 1947 and 1950. He rocketed to popular status following an August 8, 1949 four-page spread in Life Magazine that asked, “Is he

YELLOW, GREY, BLACK, 1948

MASK, 1941

NUMBER 17, 1951

the greatest living painter in the United States?” At the peak of his fame, Pollock abruptly abandoned the drip style. Pollock’s work after 1951 was darker in color, often only black, and began to reintroduce figurative elements. Pollock had moved to a more commercial gallery and there was great demand from collectors for new paintings. In response to this pressure his alcoholism deepened, and he distanced himself from his wife and sought companionship in other women. After struggling with alcoholism his whole life, Pollock’s career was cut short when he died at the age of 44 in single car crash in Springs, New York on August 11, 1956. After his death, his wife Lee Krasner managed his estate and ensured that his reputation remained strong in spite of changing art-world trends. 39

USA 2022

VLADIMIR MARINKOVIĆ, DIrector of the Serbian-American Friendship Congress

A Friend In Need Is A Friend Indeed Relations between Serbia and America determine the future of our country and the Western Balkans as a whole. It is a fact that Serbia began making dynamic advances from the moment the U.S. began treating our country as a partner, key ally and factor of stability and progress in the region of Southeast Europe

espite extremely negative events having occurred during these 140 years that have cast a shadow over our alliance, today the time has come when our two countries have excellent cooperation, notes Serbian-American Friendship Congress Director Vladimir Marinković, emphasizing that the Congress has a strong intention to work on developing a strategic partnership and alliance. The Serbian-American Friendship Congress is an organization that deals primarily with improving bilateral relations between Serbia and the U.S., with the main goal being to achieve a strategic partnership between the two countries and peoples. Serbia and

the U.S. staged a series of events to commemorate and celebrate the 140th anniversary of the establishing of diplomatic relations, reminding our two peoples of their common values, shared history, and political, economic and scientific cooperation. Despite extremely negative events having occurred during these 140 years that have cast a shadow over our alliance, today the time has come when our two countries have excellent cooperation and a developing strategic partnership and alliance. Members of the Serbian-American Friendship Congress include individuals, organizations and institutions that recognize the two countries’ shared interest in expanding cooperation in

all areas of social life, with a special emphasis on promoting civilization’s highest and most humane values, such as democracy, liberal economics, human and minority rights, new technologies, innovation, science, education and culture. Members of the Congress are of the opinion that relations between Serbia and America largely determine the future of our country and the whole of the Western Balkans. The fact is that Serbia began making dynamic advances from the moment the U.S. began treating our country as a partner, key ally and factor of stability and progress in the region of Southeast Europe. This has prompted the Congress to implement a series of specific activities with the aim of bringing our countries closer together and showing Serbia’s citizens the huge benefits Serbia gains from this cooperation. The fact is that the United States is among the largest donors to our country, that American companies employ more than 25,000 people in Serbia, that these investments characteristically spill over onto others and signal to all other democratic countries that Serbia is a stable destination and one of the best for investing this part of Europe. The Congress has dedicated itself mostly to organizing events that promote the tangible results of our cooperation that have a concrete posi-

tive impact on our countries and peoples. We have established excellent cooperation with the U.S. Embassy in Serbia, and organizations such as the NDI (National Democratic Institute), IRI (International Republican Institute), USAID, the U.S. Congress, Senate, State Department, the U.S. administration and AmCham, but also an entire series of individuals and the business community, not only representing American companies, but also domestic firms wanting to establish cooperation with American companies and compete in the large American market. Public opinion polls on SerbianAmerican relations are conducted continuously and aim to define key points and problems that could hinder the development of our relations. The Congress has organized a series of conferences on the topic of cooperation between the entire region and the United States through the Open Balkan initiative, which is being strongly supported by the U.S., covering the areas of energy and cooperation in the area of energy and the development of renewable energy, cooperation in the area of security, with special emphasis on intensive relations between the Ohio National Guard and the Serbian Army. The Congress also pays great attention to cooperation in the fields of culture and art, in the belief that this form of cooperation is very important in the rapprochement process between the two countries and peoples, and that it can have a great impact on improving Serbia’s standing among the American public, but also on advancing political and economic relations. We would single out specifically cooperation between the U.S. and Serbia at the height of the Covid-19 crisis, when both countries demonstrated an extremely high level of solidarity and empathy. Even during that crisis period, the Congress worked with its partners from Diplomacy&Commerce to organize online conferences with the goal of informing our citizens about the very close cooperation between our two countries in crisis situations. These initiatives received wholehearted

Members of the Congress are of the opinion that relations between Serbia and America largely determine the future of our country and the whole of the Western Balkans support from our country’s highest officials and the U.S. Embassy in Serbia, but also from our partners and friends in America, who showed that reliable partners always show their true colors in crisis situations. Our Congress is especially proud of the educational program and the

Serbian-American Leadership Academy, which focuses on young people who want to learn about America and become future leaders of the development of our relations and cooperation. The Academy’s most important quality is its program, but also lecturers with the capacity to transfer practical knowhow on key segments of the functioning of American society. Testifying to how well recognized the Academy is as an important segment of advancing future cooperation is the fact that the lecturers at our Academy are also the highest officials of both countries. Lecturers at our Academy to date have included U.S. Deputy Assistant Secretary of State Gabriel Escobar, National As41

USA 2022 sembly of Serbia Speaker Ivica Dačić, Serbian Deputy PMs Zorana Mihajlović and Branko Ružić, State Secretary at the Serbian Ministry of Foreign Affairs Nemanja Starović and other experts and specialists on U.S. politics, economics, security systems, history, culture and religion. Our Academy has so far been completed by more than 200 young, highly-educated people, who we are sure will give their all in their future jobs

The Congress is especially proud of the Serbian-American Leadership Academy, which focuses on young people who want to learn about America and become future leaders of our relations and cooperation

to strengthen this type of cooperation. Together with partners from the National Democratic Institute (NDI), we are implementing the project “Ambassadors of the Serbian-American Leadership Academy,” the goal of which is to broaden cooperation with young people, with a special emphasis on promoting Serbian-American relations and cooperation across the whole of Serbia, in order to provide young people from the provinces with a chance to influence such important processes, and to give their own contribution to realizing their country’s highest interests. In the end, the essence and key to the success of any organization is the people and their level of commitment to the idea, which is completely inherent to our Congress and our members, who are able – despite their differences – to come together around common goals that are important for our citizens and our state to achieve. Speaking volumes about this is the very fact that the Congress is managed by people from different spheres of social life, different political parties, businesses, non-governmental organizations and universities, and who fight hard for a better Serbia and a better future for our children.

INTERVIEW USA 2022

CorD Magazine, July 2022, Issue No. 213

Articles inside

CHILL OUT

SUMMER TIME

MAXIM VENGEROV

BUSINESS DIALOGUE

THE RAILWAY STATION RENAISSANCE TRENDS

RETHINKING SUPPLY CHAINS

GLOBAL DIARY

JELENA BOJOVIĆ

SCHOLZING

DIMITAR KOVACHEVSKI

H.E. TOMÁŠ KUCHTA