CorD magazine 77

THE VICIOUS CIRCLE OF BUREAUCRACY Kjell-Morten Johnsen, President of FIC

DEC ‘10 / ISSUE NO. 77

SUPPORTING SERBIA h.E. Abdelkader Mesdoua, Ambassador of Algeria to Serbia

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EU INTEGRATION IS A PROCESS milica delević, Director of the european Integration Office

interviews opinions news comments events pRICE 250 RSD THE G20 SUMMIT 2010

STOP THE CURRENCY WAR

The G20 leaders did not manage to agree on a single measure to apply PETER SANFEY

FURTHER REFORM IS CRUCIAL

The EBRD analysis suggests that, in Serbia, the biggest challenges lie in the energy, transport and non-bank financial sectors NICK BITEL, CEO OF THE LONDON MARATHON

A PHILANTHROPIC ROUTE

I know Belgrade Marathon well and the race are widely respected by race directors around the world FOOD AND DRINK

CULINARY PLEASURES

Serbs eat with passion and with full enjoyment, without counting calories

DRAGAN ŠUTANOVAC Serbia’S miniSter OF deFence

Captain of the

WINNING TEAM

A Daimler Brand

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December 2010

6 - politics

42 - Economy

‘WIN - WIN’ FOR PRIŠTINA

6

Vladimir Todorić, Director of the New Policy Centre

CAPTAIN OF THE WINNING TEAM

10

FURTHER REFORM IS CRUCIAL

38 41

H.E. Abdelkader Mesdoua, Ambassador of Algeria to Serbia

The G20 summit 2010

42 44

24 THE VICIOUS CIRCLE Opinions

OF BUREAUCRACY Presenation of the ‘White book’

34

Milica Delević, director of the European integration office

EDITORIAL DIRECTOR: Tatjana Ostojić, t.ostojic@cma.rs EDITOR: Jelena Aleksić, j.aleksic@aim.rs ASSISTANT EDITOR: Philomena O’Brien, p.obrien@aim.rs ART DIRECTOR: Ilija Petrović, i.petrovic@aim.rs CONTRIBUTORS: Jelena Jovanović, Vojka Vignjević, Ilija Despotović, Gordana Bulatović, Vera Didanović, Jelena Mickić

4 CorD 77 / December 2010

THE ERA OF COMPETITIVINESS

46 47

Marko Carević, financial services (product) specialist, Telenor

EU INTEGRATION IS A PROCESS

Bosnia and Hercegovina

Montenegro

A PHILANTHROPIC ROUTE

56

Nick Bitel, CEO of the London Marathon

CULTURE NEWS

58

CULTURE CALENDAR

60

WITNESS TO CHANGE

62

Toni Liversage, authoress and translator

EXPATS AND CULTURE

65

A ‘WAVE’ HELLO

FREE TO EU

A MOBILE PHONE INSTEAD OF WALLET

32

Dejan Jovović, scientific advisor a specialist for international economic relations

APOLOGY TO SERBS

ECONOMIC GROWTH IN 2011

28

Alekasndar Kozlica, CEO of G4S Serbia

FREE TRADE ZONE

STOP THE CURRENCY WAR

20

Peter Sanfey, The EBRD lead economist covering south-eastern Europe

CASH PROCESSING BENEFITS

Dragan Šutanovac, Serbia’s Minister of Defence

SUPPORTING SERBIA

16

82 - Profile

BIH and Albania

FACES AND PLACES

66

Restaurant ‘Talas’

CULINARY PLEASURES

48

68

BUSINESS TO BUSINESS & APPOINTMENTS

CHANGE IS GOOD

52

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‘WIN- WIN’ FOR pRIŠTINA

Seemingly, Priština wins no matter which stand Belgrade takes towards the Kosovo elections.

That is why the high level of usefulness of the Kosovo elections for Priština should be stressed before the dialogue begins

T

he question of whether Serbia should boycott the Kosovo elections comes at a very difficult moment because it is very likely that the dialogue between Belgrade and Priština will not begin before the elections. Although after the adoption of the Resolution by the UNSC it was believed that the two parties would soon meet, as was insisted by the EU, the unexpected fall of the Kosovo government seems to have managed to move the date of the beginning of the dialogue. Moreover, arguments that there are urgent matters which do not fall in the area of high politics, such as missing persons, license plates, heating and telephony, which can be discussed right away, have not come across an understanding with the Kosovo authorities which seemingly do not believe that the passing of time can have a positive effect on their negotiators’ position. In this transition of time, the most important role belongs to the forthcoming elections, or better to say the (non-)participation of the Kosovo Serbs in them. Should one look back, one would see that the position of Belgrade has always weakened after the previous Kosovo electoral cycles because there have always been splits in the Serbian political parties, but also among the Serbs in Kosovo. Separate destinies do their thing.

Still, we should first ask ourselves what the reason was for the new talks now, when the very plan of Ahtisaari was called an ‘all-encompassing solution’. The reason is not in the adopted resolution of the UNSC, so the dialogue should be a kind of award for the altered initial resolution, nor is it a matter of the EU’s or USA’s decree. The true reason is dissatisfaction of both parties with the current state - Kosovo certainly expected more on the matter of involvement in international flows and institutions, but also on the matter of concrete progress in the EU in the

Should Serbia recommend Serbs not participate in the elections; it is very likely that once again Serbia will be represented as someone who does not want an agreement, who obstructs the process, continues with the old unsuccessful politics and so on previous two years. Priština realises that, without an agreement with Belgrade, it will not be able to count on either greater independence in the decision-making process without international supervision or on the commencement of the SAA talks and the realisation of visas. There is also the awareness of the impossibility of economic development without solving the dispute with Serbia, and the level of 50% unemployment tells enough about the gravity of the economic-social situation. On the 6 CorD 77 / December 2010

other hand, I feel that the reasons for the dissatisfaction on Serbia’s side should not be especially explained - they are obvious. So, in fact, the reason for the new dialogue is a balance of dissatisfaction which has taken time, from February 2008 until now, to be accomplished.

The Kosovo authorities want access to institutions such as OEBS, the European Council, a contract with the EU, visa liberalisation, but most of all the legitimisation of their own country by Serbia and the very Serbian community in Kosovo which, until now, has not accepted the acts of the independent state of Kosovo. Should there be any concessions before the dialogue, the balance of motivations will be jeopardised and Serbia’s position of negotiation will substantially change for the worse.

The participation of Serbs in the elections should be seen in this light, but it is a more complex matter than the mere question of negotiation techniques. There is pressure from a part of the international community to take a significant part of the dialogue off the agenda - the part Director of the New which concerns the participation of Serbs in Kosovo’s institutions. Should Belgrade Policy Centre agree upon the participation of Serbs, then one of the instruments for reaching a permanent agreement with the Serbian party will be lost. On the other hand, should Serbia refuse it a priori, meaning should it recommend Serbs not participate in the elections; it is very likely that once again Serbia will be represented as someone who does not want an agreement, who obstructs the process, continues with the old unsuccessful politics and so on. Seemingly, it is a win-win situation for Priština who wins in the case of both a positive and negative response from Belgrade. That is why the high level of usefulness of the Kosovo elections for Priština should be stressed before the dialogue begins.

The way in which Belgrade formulated its recommendation for Serbs not to participate in the elections points to the fact that there an awareness about the delicacy of this difficult question. There is the problem of the indecisiveness of the message which springs from the problem of the unclear new platform on which Belgrade now stands, whereas the old platform, formed on international law and support of ‘the third-world countries’, was abandoned after the adoption of the UN resolution. Also, even Belgrade has sent a crystal clear message of the boycott of the elections - the question is to what extent it will be honoured in practice by those very Serbian parties who have already said they will participate in the elections. All this speaks in favour of the fact that Serbia should first formulate a new platform, or a new goal, and then make moves in accordance with that goal and not to eventually agree to the solution reached via extorted moves. n

By Mr. Vladimir Todorić,

8 CorD 77 / December 2010

O

n 03 November an earthquake with a magnitude of 5.4 on the Richter scale hit Kraljevo, and currently the process of the reconstruction of buildings destroyed during the quake is underway.

If you want to join the campaign for the rebuilding of Kraljevo, your donation can be paid to: DINAR ACCOUNT: ACCOUNT NUMBER: 840-2390740-88 ACCOUNT NAME: City of Kraljevo - Resources for Natural Disasters - 2010 earthquake BANK ACCOUNTS: We are pleased to be able to inform you that the National Bank has opened a special bank account number: 01-504102-100003535-000000-0000-RS – City of Kraljevo Donations from Abroad IBAN number: RS35908504102000353587 Through which payments will be recorded and donations used.

• D onors can make payment in euros to the account number: City of Kraljevo 01-504102-100003535-000000-0000 at the National Bank of Serbia, Kralja Petra 12, Belgrade, Serbia.

SWIFT CODE NBSRRSBGXXX through DEUTSCHE BANK AG F / M / DEUTDEFF / ACC.NO.100 9359308 0000 •P ayment in U.S. dollars may be made to account: City of Kraljevo at the National Bank of Serbia through DEUTSCHE BANK TRUST COMPANY AMERICAS. N.Y. / BKTRUS33 / ACC.NO.04415465 • Payment in Swiss francs may be made to the account: City of Kraljevo at the National Bank of Serbia through UBS AG. ZURICH (UBSWCHZH80AXXX) ACC.NO.0230-60294.05V

CorD 77 / December 2010 9

interview DRAGAN ŠUTANOVAC, SERBIA’S MINISTER OF DEFENCE

Captain of the

WINNING TEAM Our army has restored its reputation.Today, this is the institution that Serbian citizens trust the most. It makes me really proud to be the person who leads the number one team.That is a big deal since, only six years ago, we were at the bottom of the list, so to speak, and riddled with problems

By Jelena AleksiĆ Photo: Darko cveTAnoviĆ

exclusive

D

uring Dragan Šutanovac’s term as Defence Minister, the Serbian military industry has concluded contracts worth $1.2 billion. In an exclusive interview for CorD, lion. he reveals that preparations are underway for the construction of a hospital in Libya which will resemble the Military Medical Academy (VMA) in Serbia. The Minister also talks about the professionalisation of the army, the privatisation of military property, government reconstruction and the relations between the Serbian army and NATO.

n At the last NATO summit in Lisbon, the leaders of the 28 NATO countries welcomed and supported “the pronounced commitment of the Serbian government in relation to Euro-Atlantic integrations and strengthening of the collaboration between this military alliance and Serbia”. Your ministry received a lot of compliments at the sum10 CorD 77 / December 2010

mit. What does this tell us about Serbia’s current position? r In the conclusions of the summit, NATO commended the collaboration and expressed a wish to see Serbia establishing even tighter relations with the alliance. This is a great acknowledgement to everybody who is involved in the reform of the army in our country. Only several years ago, our army was far below the level of the modern armies of the world both structurally and training-wise. Today, we have a modern army that has been standardised in line with the highest global standards, which are currently the standards of NATO. All of our neighbours are already in the alliance or only a step from becoming a member. We cannot behave in a way that has no comprehension of the times and the security environment that we live in. On the contrary, we want to build up the strongest possible alliances. I would like to remind you that, back in 2006, we committed ourselves to EuroAtlantic integrations. Our Parliament has made a decision that stipulates military neutrality, but this does not restrict the aspect of collaboration. While adhering to the parliament’s decision, we are also trying to strengthen relations via NATO’s Partnership for Peace programme, which is in our mutual interest. Following the recent opening of an office in Brussels, we now have more opportunities to use the programme’s capacities to a greater extent.

n Is military neutrality sustainable long-term? r Neutrality is sustainable, but only in countries with a strong economy and countries that are able to organise their armies in line with the highest standards and provide the best possible military equipment. Neutrality is much more expensive, and our economy unfortunately cannot provide more money for defence issues. I would like to reiterate that the army is operating within the set coordinates, i.e. it is adhering to the parliament’s decision about military neutrality. At the same time, we are not lagging behind our neighbours, although we have not formed alliances with them. n Should Serbia change its political course toward NATO? r The most important issue is the standardisation of the army and the raising of our operational capacities. We want to meet all requirements in a proficient manner and this is for me, as the Defence Minister, the most important matter. We should not view future political decisions as a burden, since there is enough room to function properly even if we are neutral.

COOpERATION AGREEMENTS “We have signed cooperation agreements covering defence issues, with all the countries in South-eastern Europe with the exception of Albania. I expect the signing to take place next year. I do believe that the security issue in South-eastern Europe should not be divided and that past events have demonstrated the fact that a problem in one country quickly spills over into another. If we don’t come up with a joint formula for dealing with threats, risks and challenges, we are not going to be able to handle them in an appropriate way.” r Of course they are! We have a great potential and energy and I am confident that, with the current pace of work, we are going to become an internationally respected factor in multi-national missions in a year’s time.

n Seven of our soldiers have recently departed for Cyprus.

Could you compare that number to the number of soldiers that are sent to other countries? n You have been very vocal about the Serbian army not r This is a rather symbolic number, but we are striving to participate only participating in UN peace missions, but also in those with higher numbers. In addition to observers, we have a profesof the EU. What are your sional soldier in the mission All of our neighbours are already in the for the first time ever. When plans and what international importance does alliance or only a step from becoming a this person applied for a job that hold for our counin the Serbian army, he probmember. We cannot behave in a way that ably couldn’t even compretry? has no comprehension of the times and hend that, one day, he would r We have made a step forward and pleasantly surthe security environment that we live in be making history in terms of our peace missions. prised our EU partners by offering to participate in peace missions, which is not common for countries that are not EU members. In this way, we have n Is the process of the professionalisation of the army gogained some favourable points from the EU countries. At first, ing to be completed by late 2010, as you have previously this initiative will only be a symbolic one, albeit quite important, announced? since this is the first time in our history that we have participated r Yes! Although the plan for professionalisation was devised in an EU-led civil mission. back in 2003, not a lot has been done since. Still, we are going to carry out this process as planned, i.e. as of 2011 the army will be made up only of professionals. By doing so, we are not abolishn What is currently being done apropos participation in ing compulsory military service, but are only suspending it while civil missions? still giving the chance to anybody wanting to serve the army on a r The Foreign Ministry is devising a framework agreement on voluntary basis to do just this. civil and military missions with the EU, following which we will have a discussion in regards to future participation. The idea is that we will help the Greek or French fleets who have their ships n What effect will this have on the Serbian army’s budget stationed off the coast of Somalia. I believe that the Interior Minand overall efficiency, both materially and operationally? istry will also cooperate with the EU and take part in a civilian/ r We are not going to have any additional costs, and we are going police mission. to spend a smaller amount of money on the professionalisation in the light of the Ministry’s budget in the last few years. We have carried out a serious analysis of the current costs of energy consumpn Are our staff qualified enough and suitably trained for tion, food, and military training and compared that to the costs such missions?

assets The issue of putting together a military assets registry is seldom considered a serious issue either by the army or amongst the general population.

trUmP CarD Our export includes also howitzers and a training fighter jet called the lasta of which we are particularly proud.

ProFessionalisation We are going to carry out professionalisation as planned, and as of 2011 the army will be made up only of professionals.

CorD 77 / December 2010 11

that we are going to have in forming a professional army. With an identical budget, we are now going to have a professional soldier that receives a regular salary, who undergoes training just once and spends the rest of his career perfecting his skills.

r We are all aware of which army facilities have no use for the army, and, together with the Property Directorate, we are mostly exchanging these facilities with the local authorities.

n In 2009, military industry exports reached a figure of $300 million, while n You have said recently that one of the the value of new contracts is close to main operational segments of the Minis$500 million. How much time is needed try of Defence is converting the military to reach the one billion dollar mark, airports in Lađevci, Batajnica and poswhich you have said is quite a realistic sibly in Ponikve. What are your plans accomplishment? apropos this idea? r Following the conversion, the idea is to exr Recently, we received confirmation tend these facilities to serve both civilian and that the last substantial contract, that we military air traffic. The works have already have been working on for over two years, begun at Morava Airport near Kraljevo, and worth $400 million, came to force. With next year we plan to start working this contract, and during my term on Batajnica. In this way, we are in the office, Serbia has concludNeutrality is sustainable, going to help our economy and ed a total of $1.2 billion worth of but only in countries with a strong contracts. Exports have increased provide a boost to these areas that are otherwise difficult to access. economy and countries that are able tenfold compared to a few years and our military industry to organise their armies in line with ago, is now back on the pages of the n Are these projects going to the highest standards and provide most reputable military magabe realised with funding provided by the Ministry of De- the best possible military equipment zines in the world. fence or someone else? r They are partly going to be funded from the Ministry’s budget n What is it that we are offering? What are we exporting? and partly from the National Investment Plan (NIP). There is also r Primarily ammunition. That is our trump card since ammunithe possibility of foreign donations. The Ministry will be the owntion is easily expendable. We also have howitzers and a training er of these airports, and we are currently talking to Nikola Tesla fighter jet called the Lasta, of which we are particularly proud.

Airport about the opportunity to operate the airports and to split the After several decades, we have finally managed to make and exgenerated revenue in line with an agreed share. port such a jet, in addition to infantry weapons. In the future, aside from arms and military equipment, we are going to export know-how and medical knowledge. n You have been criticised for managing military property as though it was your own. r The only thing I can say is that the State Property Directon Could you elaborate on this? rate manages the army’s assets. Those who criticise me do not r There is a realistic opportunity for us to build a hospital in understand how the system works, and they could blame me for Libya, just like our Military Medical Academy (VMA), but with climate changes for all I know. a smaller capacity. n Does the Serbian Army have a military assets registry? r We have been working a lot on putting such registry together and I cannot say with certainty when this process is going to be finished. In the 1990s, the state withdrew arms and military technology from the former Yugoslav republics. At that time, everything was done chaotically and, for two years now, we have been trying to bring order into that area. Also, we don’t have the appropriate software for this process, but we are doing our best to try and finish it. This problem is seldom considered a serious issue both by the army and amongst the general population, and your question is really a million-dollar question. n After you complete that process, are you going to privatise military facilities?

12 CorD 77 / December 2010

n Are you preparing any new products for next year? r In early spring, we are going to start the serial production of an unmanned aircraft called the Vrabac. This is the combination of a civilian and military product. In the West, such aircraft are considered expendable. So, we are not going to be forced to buy this aircraft any longer, but are going to produce it ourselves and sell it to others. n Do you cooperate with military factories in the former Yugoslav republics? r We are cooperating with the Republic of Srpska, and, when it comes to certain contracts that are supposed to be concluded soon, we are going to have to engage production facilities in the region. In that context, it is very important for Serbia to become a centre that

CorD 77 / December 2010 13

will gather forces together and initiate things. In the following few days, we are going to open a metalwork facility in Valjevo which will hire new workers and which is going to produce products that we have had to import in the past. n What are the most important markets that Serbia currently exports to, and, in your opinion, to which countries do we need to export more? r We are literally exporting from Malaysia to Canada to America, while most of our export activities are aimed at the countries of the Non-Aligned Movement, and lately at the North African countries. These markets could be sufficient enough for us, but there is a need to invest more in other markets and factories.

Our problem is

n According to a recently published survey, Serbian citizens put the biggest amount of trust in the army. r Our army has restored its reputation. Today, this is the institution that Serbian citizens trust the most. It makes me really proud to be the person who leads the number one team. That is a big deal since, only six years ago, we were at the bottom of the list, so to speak, and riddled with problems. During my term in the office, there have been no affairs, no unexplained extraordinary situations or situations that are highly dubious, and this is something that citizens have recognised.

n Speculations are rife about the Serbian government going through a restructuring process. Could you comthat an anti-NATO ment on that? campaign is being orchestrated in Serbia, r I am fortunate that our n The project of the condespite the fact that we want KFOR to struction of affordable flats work can be statistically in the Belgrade quarter of remain in Kosovo. This is a situation that is measured; hence I have no Voždovac is pending. How dilemma that we have fully difficult to comprehend many of these flats will be completed the reforms in given to army staff? our defence system. If you look objectively at the work done by my r The Ministry will get 21% of the entire team, you have to admit that the results are constructed area. This is one of the best inreally fascinating. With regards to the refrastructural contracts that the Ministry has construction, the general agreement is that ever concluded. Bearing in mind that, so far, we are going to discuss that matter in more only 12% to 13% of the constructed areas in depth after the New Year. I expect those ofdowntown Belgrade have been allocated, we ficials who are responsible for the governconsider this a really big step forward. ment’s work to make a final decision. n What criteria will be used for allocating the flats? How much will army staff n You have a reputation of being a minpay per square metre and how much ister who doesn’t spend much time on will civilians pay? personal promotion. Is that due to military security or is the reason an entirely r They are going to pay the purchase price different one? for these flats. r If the system that I manage is yielding better results day-on-day, I see no need for n Could you describe for us the relapersonal marketing. tions between KFOR and the Serbian Army? r They are exceptionally good, although n What do you expect from the upcomwe do disagree with KFOR when they say ing elections in the Democratic Party? that there is enough room for them to rer I don’t expect any drastic changes to duce their forces in Kosovo. On the other hand, our problem take place, but certain things are difficult to predict. Democracy is that an anti-NATO campaign is being orchestrated in Serbia, is prevalent in the Democratic Party, and whoever fails to win despite the fact that we want KFOR to remain in Kosovo. This over the trust of other party members, he or she needs to work is a situation that is difficult to comprehend, and where we, as twice as hard to come back. This has happened to me too, and I politicians, do agree with the EU, but have a different approach have managed to be appointed as the Deputy President. to EULEX. n How many days are you personally and the staff of the army going to be off during the holiday season, bearing in n In that context, could we view this as another state’s interest? mind that, in Serbia, the holiday season starts at the end of r Yes, we could. Kosovo and Metohija need to become safe 2010 and lasts all the way until mid-January 2011? zones with developing democracy. All of us in the region are going to breathe a sigh of relief once Kosovo becomes a safe r My team and I are engaged 24/7 and I have grown attached place to live. Currently, this is a safety zone that is engulfed in to the problems that our army faces. I will be in Belgrade both organised crime, human, drug and arms trafficking. during the New Year and Christmas holidays.

■ 14 CorD 77 / December 2010

interview H.E. ABDELKADER MESDOUA, AMBASSADOR OF ALGERIA TO SERBIA

SUPPORTING Serbia

Algeria’s position on the issue of Kosovo is based on the respect of sovereignty, territorial integrity and the principles of international law

By Jelena AleksiĆ

T

he traditionally friendly relations between Serbia and Algeria are being revisited. After two decades of absence, Serbian companies have made an appearance at the international fair in Algeria, and Algerian authorities have taken a determined stand respecting that the sovereignty of Serbia does not recognise Kosovo’s independence. H.E. Abdelkader Mesdoua, Ambassador of Algeria to Serbia shares with to CorD the current preparations for the arrival of the President of Serbia in Algeria. We talk with him about economic, military and political cooperation with Serbia.

n After a languishing for several years, relations between Algeria and Serbia have been re-established. Judging by the decision of Algeria not to support Kosovo’s independence, amongst other things, political relations are good. What are your thoughts on the matter? r Algeria and Serbia have strong ties despite all the difficulties both countries have been through. Ties were never bro-

The Algerian people will never forget the support and the help received from former yugoslavia during their struggle against French colonialism ken and the Embassy of Algeria remained open when Serbia faced political and economic turmoil. Economic relations and the trade volume have not yet reflected the political will and expectations from both sides and need to be enhanced.

The Algerian people will never forget the support and the 16 CorD 77 / December 2010

n Have formal conditions for the promotion of economic cooperation been created - in the sense of signing bilateral agreements to stimulate the promotion of economic relations? r Taking into account the political resolve of both leaderships, Serbia and Algeria are, today, committed to working n At present new premises for the Algerian Embassy to together for the promotion and the enhancement of economic Belgrade are under construction. Is this a sign that you cooperation in order to attain the trade volume of the 80s. are expecting a good deal more work, implying better The joint commission on economic, scientific and culcooperation between the two countries? tural cooperation held r Despite the financial A visit of President Boris Tadić in Belgrade in Novemcrisis and economic dif2009 has achieved ficulties, Algeria has to Algeria is planned and we are examining ber important results that provided a significant amount of funds in or- the possibilities of acceptable dates for both could improve our economic ties by updating der to complete the new sides. M. Mourad Medelci, the Minister of and concluding many chancery which we will legal documents includbe opening in December Foreign Affairs of Algeria will also soon ing the finalisation of the during the visit of the visit Belgrade agreement related to the Minister of Foreign Afpromotion and protecfairs of Algeria. tion of reciprocal investments.

The building of the new Now, we are working to finalise premises for the chancery has the agreement on the non doubeen set as one of the highble taxation and capital gains est priorities to ensure better tax sectors. It was essential for working conditions in terms both parties to update the legal of space and hospitality for the framework in order to overcome Algerian community living in the legal obstacles.

Serbia and for Serbian citizens working or visiting Algeria. n Minister Mlađan Dinkić with a delegation of econon In the area of econommists visited Algeria in ic cooperation, however, March, and in June several there are not many posiThe new premises for the Algerian Embassy dozen Serbian economists tive accomplishments. Last participated in the Internayear, Serbia exported $22 tional Fair of Algeria (Foire Internationale d’Alger). million worth of goods to Algeria, and imported only Have these visits brought about any concrete results? $79,000 worth of helium. How do you explain such humble results? r The latest visit of the Serbian Economic delegation led

by Minister Mlađan Dinkić along with the Minister of Der In the late 80s, the trade volume reached the amount of fence Dragan Šutanovac and Minister of Youth and Sports 500 million US dollars. Currently, the volume does not exSnežana Marković was a good opportunity to identify the ceed 30 million dollars, while the areas of cooperation are tools for the implementation of the joint commission’s recmultiple and the opportunities are enormous. The problems ommendations. In this regard the participation, for the first that have affected our bilateral cooperation are related to the time after an absence of twenty years, of Serbian companies transitions experienced by both countries during the last two at the International Fair of Algiers in June 2010, which is decades and the fact that the legal framework has been inherconsidered one of most important fairs in the region, and the ited from former Yugoslavia.

help received from former Yugoslavia during their struggle against French colonialism. Algeria’s position on the issue of Kosovo is based on the respect of sovereignty, territorial integrity and the principles of international law.

military Our military officers are in process of completing their third cycle of training at the Military Academy in Belgrade.

We are satisfied with the level of training offered.

History In the late 80s, the trade volume reached the amount of 500 million US dollars.

Currently, the volume does not exceed 30 million dollars.

Investment Some Algerian investors are working with their counterparts in Serbia to invest in agriculture and tourism. They are considering the possibility of opening an office in Serbia.

CorD 77 / December 2010 17

organisation of business during this visit, were major steps in building new relations between economic stakeholders.

and culture were created to consider the best ways in which to enhance economic relations

n The Government of Algeria has planned an investn Are Algerian investors showing any interest in investment cycle to run until 2015, which is worth as much ment in Serbia? as $150 billion. Do Serbian comr Some Algerian investors are workpanies stand a chance of particiing with their counterparts in Serbia pating in the developmental proto invest in agriculture and tourism. gramme? In which sector do you They are considering the possibility think the Serbian economy could of opening an office in Serbia. possibly participate? r During the period between 2000 n There have been some anand 2009, the Algerian government nouncements that the Algerian spent 450 billion US dollars on difpresident might soon visit Serferent projects to improve economic bia. Is there any concrete inforconditions. In May 2010, a new five mation about the visit - when it year programme of public investmight take place and what will ments totalling 286 billion US dolbe discussed? lars was launched by the Algerian r A visit of President Boris Tadić to Government and will cover all ecoAlgeria is planned and we are examnomic and infrastructural sectors in ining the possibilities of acceptable the period between 2010 and 2015. dates for both sides. M. Mourad We encourage Serbian companies Medelci, the Minister of Foreign Afthat have expertise, experience and fairs of Algeria will visit Belgrade know-how, I am aware that there in mid-December 2010. This visit are many, in housing construction, will provide another opportunity to dams and infrastructure, reiterate Algeria’s willingto participate, through loness to build a sustainable Now, we are working to finalise the cal partnerships, and appartnership with Serbia. agreement on the non double taxation ply for the international tenders like any local or n A number of Algerian and capital gains tax sectors. It was foreign firm. officers are being trained essential for both parties to update the at the Military Academy n Do you think that legal framework in order to overcome in Belgrade. Are there any other possibilities for Algeria, as a large imthe legal obstacles military cooperation beporter of food products, tween the two countries? may consider purchasing Serbian produce? r Military officers are in process of completing their third cycle of training at the Military Academy in Belr One of the main priorities of Algeria is to ensure its food grade. We are satisfied with the level of training offered security. Agricultural policies, until now, have achieved and are looking to expand cooperation between the two positive results and have contributed to reducing the food countries in this field. bill. The agriculture sector could certainly constitute another field of cooperation between the two countries and I am confident that soon we will achieve some results since concrete n Does Algeria have any intention of investing in the contacts have been established. development of tourism, and do you see any chance for cooperation in this area? n After a long hiatus, the work of the Mixed Committee r Another priority of Algeria is tourism. In this regard, the for Technical, Economic and Cultural Cooperation has Algerian government has developed a 2025 strategic framebeen resumed. Do you expect that we will soon see some work and a vision to address the lack of infrastructure and to tangible results of the group’s work? promote Algerian tourism. Local and foreign operators are planning on building hotels, particularly on the Mediterraner The ministerial contacts we have seen in the last two years, an coast, and in the south of Algeria, especially in the Sahara the organisation of the joint commission, have constituted a desert. Algeria has a great deal to offer in terms of tourism turning point in bilateral cooperation after twenty years of and hospitality, and I think that it’s time for Serbian people interruption. Different working groups dealing with different to see what my country can offer.

■ issues such as agriculture, water resources, archives, sports, 18 CorD 77 / December 2010

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finance THE G20 SUMMIT 2010

Stop the currency war

The G20 leaders did not manage to agree on a single measure to apply, which would be favourable for everyone. State officials, who represent 85% of the world’s economic growth, have declaratively agreed that ‘the currency conflict’ must be stopped

By Gordana BulAToviĆ

T

G20, explaining the reasons for the struggle of South Korea for bigger rights and the better perspective of less developed countries in the world.

- Now we have the chance to be part of the group which gives donations to others – Lee Myung-bak points out.

It might be said that exactly this initiative of the G20 Summit’s host is what could be called the true success of the just-held meeting of the world’s most developed countries. There were only two items on the agenda on which the G20 leaders did not reach absolute consensus, and according to those items the great and the powerful do not have a chance for stable growth, unless it is shared with the poor ones. The G20 Summit in Seoul accepted the fact that there have been some changes in the global economic order. The power of a country is thus no longer measured only by the size of its economy but also by its growth, so global leadership positions of countries such as India, Turkey, Brazil, Argentina, South Korea, Indonesia, and so on, have been definitely acknowledged.

The G20 Group’s acknowledgement of the new economic order was given by a long-expected decision to reform the International Monetary Fund in a way so that the leading developing countries - China, India, Saudi Arabia, Russia and Brazil, will be given greater rights of decision making in this institution.

- This is the most significant reform ever adopted when it comes to managing the International Monetary Fund – Dominique Strauss-Kahn, general director of the IMF, pointed out, just after the publication of the final G2-leaders’ declaration.

According to this agreement, more than 42.29% of the share in the Fund’s quota will be transferred to the countries with dynamic economic development. For example, in this agreement, China will become the third largest member of the Fund, being placed before Germany, France and Great Britain on the scale of voting influence in the IMF. India is ranked seventh, Russia ninth, whereas Brazil is 10th by the power of its votes on the executive board. So far all of these countries have had a

he G20 Summit, which was held in the capital of South Korea, Seoul, on November 11th-12th this year, was historic for many reasons. For the first time this meeting of the most developed countries of the world was held in an Asian country; for the first time a country which is not currently part of the G8 group was the host; and thanks to the great diplomatic mission of South Korea, and above all to its president Lee Myung-Bak, the most powerful ones did not only deal with their own future, but also with peter Brabeck-Letmathe: “Monetary policy what some of the less developed countries of must return to the neutrality principle, whereas the world can do in the years to come. the fiscal strategies of all countries should be - South Korea is the country which, not so long ago, was the one receiving donations focused on the smallest possible budgetary from the world so it could function at all – expenses which will keep the fiscal systems stable” says the president of the country hosting the

20 CorD 77 / December 2010

total share of 14.18% in the IMF quotes, while the USA, for example, has held 17.67%.

However, America is not the biggest loser in the new division of power in one of the world’s most significant financial institutions. Europe is the one to lose in the current casting of voting rights on the IMF executive board. The loss is represented in Europe losing two seats in the Fund’s executive board.

Also, the USA has kept the right of veto in this institution with the new agreement, whereas the possibility of running its representatives as directors of the IMF Board of Directors was given to China, Russia and Saudi Arabia, apart from the USA, Japan, Germany, France and Great Britain.

- Financial markets have been stabilised and the global economy is headed down the road of recovery. Even at the moment of the departing crisis, we know that the reform of international monetary institutions is necessary – the leaders of the most powerful world economies pointed out in their declaration at the G20 Summit.

However, at the peak of the fiercest financial crisis, international financial institutions helped world economies with about $750 billion approved via the International Monetary Fund’s lines, and also $235 billion via multilateral developmental banks.

According to the agreement from the recent Summit, the Fund will have to prepare new credit lines, considering the estimations that everybody, especially developing countries, will need financial injections to truly recover their economies.

It has been suggested that the IMF should elaborate on a system of flexible credit lines (FCL) which would be available to countries which

DESIGN © FREY WILLE

The power of a country is thus no longer measured only by the size of its economy but also by its growth, so global leadership positions of countries such as India,Turkey, Brazil, Argentina, South Korea, Indonesia, and so on, have been definitely acknowledged have been overcome by the global economic crisis - meaning, the poorer countries of the world.

The International Monetary Fund concludes that the dollar is overrated on the currency market, that the euro, yen and British pound are in accordance with the basic factors in those markets, whereas the Chinese yuan is still significantly underrated. All this has been allegedly caused by the fact that there has been a great inflow of capital to the developing countries with faster growth, from where investors are expecting great incomes. Developing countries with a large trade surplus, primarily Asian countries, have responded to the capital inflow with interventions on the foreign currency market, so as to accumulate reserves and limit the growth of domestic currency. According to the IMF’s estimations, such activities have contributed to further significant currency discrepancies compared to basic market factors.

- More recent state interventions on the currency market have contributed to an imbalance, which creates the fear of currency wars with the goal of export protection at the time of the global economy’s recovery – the Fund’s experts state.

Despite attempts to overcome this friction and also the obvious awareness that the problem with the imbalance of currencies’ can cause instabiliCorD 77 / December 2010 21

ties in business for everyone, the G20 leaders did not manage to agree on a single measure to apply, which would be favourable for everyone.

State officials, who represent 85% of the world’s economic growth, have declaratively agreed that ‘the currency war’ must be stopped.

The host of the gathering, South Korean president Lee Myung-bak, invited all head officials to work on the achievement of some kind of agreement, but the meeting still ended with a rather unconvincing agreement about an alternative mechanism of early warning, the detail of which the G20 has yet to discuss at their next meetings. The recent decision of Barack Obama and his of-

Lee Myung-Bak: “South Korea is the country which, not so long ago, was the one receiving donations from the world so it could function at all. Now we have the chance to be part of the group which gives donations to others”

president, Yung Chul Park, claims that the solution for the matter of ‘the currency war’ is exclusively political.

- The United States of America blames China, which has allegedly weakened its currency on purpose, for the obvious imbalance in the world trade and foreign exchange balances – Professor Chul Park comments.

Chinese arguments against the claim that it manipulates its currency to make its products cheaper to the world still seem rather persuasive, especially when that claim is analysed against what America is doing now. Namely, the fact that the USA is injecting $650 billion of fresh money into its economy which will contribute to paying the numerous bills of the American economy in the world, including substantial bills with some suppliers in China. It means that American money will end up in the Chinese monetary system.

The G20 leaders have confirmed the imThe loss is represented in Europe losing two seats in the IMF’s portance of Basel 3 for the stability of the world executive board.The USA has kept the right of veto, whereas the economy which, in national economies, should start being applied on January 1st 2013, and full possibility of running its representatives as directors of the IMF implementation should commence on January 1st Board of Directors was given to China, Russia and Saudi Arabia, 2019. The solution of the matter of financial sysstability was marked as one of the priorities apart from the USA, Japan, Germany, France and Great Britain tem at the Business Forum held before the G20 Summit in Seoul by businessmen. Moreover, thanks to the engagement of the South Korean president Lee Myung-bak, leaders fice to inject an additional $650 billion of fresh money into the American of the most powerful world economies agreed that the business forum economy must have contributed to this ‘meagre’ result of the Summit’s should be a constituent part of the G20 summit in the future. This was attempt to respond to one of the key current challenges of the global greeted with great enthusiasm by the current president of Fu Li and economy. Maybe that is why numerous countries, China and Germany Fung Group, Victor Fung. However, he suggested that the leaders of the being the most vocal amongst them, have refused America’s proposition G20 should in the future pay more attention to the present imbalance in prepared for adoption at this Summit, which is predicted to set the limit to global trade. which a certain country can go as far as the deficit or foreign-trade surplus The head of the multinational company ‘Nestle’, Peter Brabeck are concerned.

Letmathe, spoke about the necessity of politicians to do something more - The whole world wants the USA to recover, but throwing money to create the basis for the good work of the world economy. out of helicopters has no use, because it cannot help economic growth – - Monetary policy must return to the neutrality principle, whereas the Brazilian minister of finances, Guido Mantega, says. the fiscal strategies of all countries should be focused on the smallest In Seoul German Chancellor, Angela Merkel, reiterated the negative possible budgetary expenses which will keep the fiscal systems stable – stance on the moves taken by the USA in their attempt to renew the econBrabeck claims.

■ omy, but also the reasons why she was not willing to accept the USA’s proposition.

- Setting the limits for the surplus or deficit Guido Mantega: of current accounts has no economic justifica“The whole world wants the USA to recover, tions, nor is it politically appropriate – Angela Merkel stressed at the briefing after the final day but throwing money out of helicopters has no of the Summit. Expert in international relations use, because it cannot help economic growth” and former economic adviser of the Korean 22 CorD 77 / December 2010

quotations We are not people who were born as ministers and we will probably not go into retirement as ministers.

Oliver Dulić, Minister of the Environment and Spatial Planning

The increase of prices is not jeopardising our standards.

Slobodan Milosavljević, Minister of Trade

Serbia is, incidentally, the only country in Europe which in the last 40 years has built less than one kilometre of highway a year - which is an overly optimistic assessment. It is difficult to find a similar example in the world.

Dimitrije Boarov, journalist

I am not an astronaut to predict the future, and I am not a hen to lay an egg. But I know what a rotten egg is.

Radiša Urošević, singer, president of the ‘Jedinstvena Srbija’ board in Kragujevac and former member of the Board of Directors of Serbian ‘Post’

We certainly like Medvedev more, but Hilary is a must.

Ivica Dačić, Interior Minister and leader of the Socialist Party of Serbia

Severina might not know it, but I wake up with her. I like listening to Severina, she has some great songs.

Boris Tadić, President of Serbia

As far as power and influence are concerned, believe me, it has not been easy being a minister of agriculture in the last couple of months since we started pointing out the problems of the monopoly in the milk market. You all know how powerful financial lobbies in this country are, how many possibilities of influencing the media they have, and I am very glad that the country has once again demonstrated that it is more powerful than any influence.

Saša Dragin, Minister of Agriculture

I have nothing against the gay parade, but I am not in favour of public expression.

Borislav Pelević, official of the Serbian Progressive Party

Only the army and police have a monopoly of force in Serbia and not a single foreign organisation can interfere with their affairs.

Božidar Ðelić, Deputy Prime Minister

The contract with B92 was typical, but the relationship with Gordan Paunović and Veran Matić was not exclusively typical. I informed them at the beginning of the year that the fund had problems with raising donations and that I would fulfil my obligation by the end of April, but I was arrested in late April.

Katarina Rebrača, owner of a charity fund for the prevention of breast cancer

Nowadays the SPO is a party which still has a great programme and vision, but few supporters.

Vuk Drašković, President of the SPO

I would not say that our relations have chilled, because our coalition is working like a ‘Swiss watch’.

Branko Ružić, Chief Deputy of the SPS-JS

Each of the exhibited portraits symbolises a special historical period and the differences marked beyond physiognomies speak about the differences in a relatively brief period of time, shorter than one hundred years. In my opinion, he saw me in a way which is different from how I feel about myself, but this is simply not the place to discuss whether I look pretty in the portrait or not. Honestly, I think that the beauty of a portrait, done by an artist, is the way in which the artist sees you.

Slavica Ðukić-Dejanović, Spokeswoman of the Serbian Parliament

The government and part of the opposition are competing in the warming of false hope that the solution to all the problems of Serbia are in the fictional accelerated European integration.

Vojislav Koštunica, leader of the DSS

If my portrait exhibited in the foyer of the National Parliament is not changed immediately, I will be forced to ask for its removal, because I do not want to hang so deformed on the wall for the whole of eternity.

Nataša Mićić, MP of the LDP and former Spokeswoman of Parliament

If the Serbs pushed a new boycott, the Serbian government is obliged to offer them an alternative and explain how to protect their interests if they remain outside the institution in Kosovo. Čedomir Jovanović, leader of LDP

The only thing we could have done more was to capture the prime minister and kept him until they reached an agreement.

Ljubisav Orbović, union leader CorD 77 / December 2010 23

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opinions

Economic Growth Last year, the world economic crisis caused a drop in Serbia’s economy of three percent, whereas 2010 was a year of mild recovery. The domestic economy grew about 1.5%, and certain officials have announced that in 2011 the Serbian economy will grow even more.

This is why we have asked the following question of the heads of leading companies and economic experts in Serbia:

Do you expect higher economic growth in Serbia in 2011, compared to 2010, and what are the requirements for this to occur?

Miodrag Kostić, President of MK Group Holding Company

Solve insolvency

so affected the dealings of the domestic economy. The banking system should use its mechanisms to assess who it should help with favourable and stimulative long-term credit arrangements with subvented interest erbia is going through turbulent and dynamic economic times, including the struggle with rates, which are aimed at the revival of production and export.

Nowadays, Serbia needs new jobs and employment, to secure sothe negative effects of the global economic cricial progress. The gist of this is in social partnership and the accomsis. In the last couple of years, the government plishment of common interests, and they can be reached only through has made some significant steps towards the tight cooperation amongst the governpromotion of The banking system should use its ment, unions and employers, because the business climechanisms to assess who it should help they form a single united group and mate and in attracting investments, alwith favourable and stimulative longhave joint responsibility. The new modthough there is always room for further improvement, which, I hope, will take term credit arrangements with subvented el of economic growth and the develplace in the year to come. It is necesinterest rates, which are aimed at the opment of Serbia for 2011 predicts the creation of a new, tighter and safer amsary to find the mechanism for solving revival of production and export bience for investment in the country. general insolvency which is an evident Serbia has the greatest opportunities in agriculture and agrarian indusproblem in the economy of Serbia, and difficulties in loan repayments in the real sector are increasing and are more noticeable. Moreover, the un- try, agricultural production and the export of agricultural products, and I think that adequate measures and subventions might substantially imstable exchange rate and the constant drop in dinar’s value, reduced exports, the drop in the standard of living and the lack of cash flow have al- prove the current state of things.

S

Bojan Radun, executive director of Nektar

Political stability

Milan Kovačević, foreign investment consultant

M

y personal expec- primarily in the food and drinks sector, subtation and the ex- stantially depend.

Beside all this, a small recovery of the pectation of Nektar is surrounding markets has been noticed, that in the next year, which unlike our market, do not have fluceconomic growth will tuations in the exchange rate and which be greater than in are the most important export markets for 2010, but it will be only a tad bigger. The Serbian companies. Here I primarily reprerequisites for this are sustaining ecofer to Bosnia and Herzegovina, Macedonia, nomic and political stability.

Montenegro and Bulgaria.

A very important aspect is sustaining Also, the inevitable prerequisite for the the stability of dinar’s exchange rate, which growth of most of doapart from direct ecoEconomic growth will be mestic companies nomic effects on the economy and inflation, greater than in 2010, but it is the availability of has a strong psychologwill be only a tad bigger sources for the means of funding, which this ical effect on the popyear was substantially aided by subvented ulation which results in smaller or larger credits, which is something we are expectconsumption on the domestic market, on ing to be possible in 2011 as well. which the results of domestic companies, 24 CorD 77 / December 2010

Smaller growth with indebtedness Photo: Dragan Kujundžić

T

he government expects that the growth of gross domestic product to be 1.5% this year and three percent in the following year. The IMF estimates that the economic activity of the entire world will grow by 4.3% next year, the greatest contribution to it, 6.4%, being from developing countries, us being among them. In the not so distant

Walter Reckerzuegl, Member of the Board from Porr Technobau und Umwelt AG

F

vestments. rom my point of Although the financial situation is difview Serbia is on ficult, the Serbian government is pushthe right track to see further economical de- ing very hard for all kind of investments in infrastructure. And these investments velopment in the near will pay off; along Corridor X an economfuture. The year 2010 ic boost will follow after finalising the road was still painfully influenced by the crisis and the railway corridor. but despite all the existing problems you Of course Serbia faces a lot of probcan already identify a few clear indications lems - in particular for a positive postthe enormous levcrisis scenario.

But nevertheless all things el of bureaucracy My optimism considered my conclusion is and slow adminisis based on a few facts: quite stable positive, and based on the healthy trative procedures political circumbasis of this country we will see have to be menstances; EU intehigher economic growth in 2011 tioned here and also the somegration; economeven with an ongoing increasing times problematic figures better tendency in the near future ic legal framework than in many oththat prevents cerer countries; a well tain international investors from investing educated and young population ready to in Serbia. work hard for a better life; a population But nevertheless all things considered used to a higher living standard in the past my conclusion is positive, and based on (which leads them to more consumption); the healthy basis of this country we will renewed interest of international invessee higher economic growth in 2011 even tors in this market; the right political priwith an ongoing increasing tendency in ority - to invest in infrastructure projects; the near future. and a friendly environment for foreign in-

history, probably not a single country has had such a drop as Serbia has; thus, we will need a level of growth above average for developing countries.

Last year, we had a drop in economic activity of three percent; an excuse is the global crisis, but it is largely due to the improper politics of spending above limits, with indebtedness and the selling of assets and capital. We further extend that structural imbalance with the growth of the budget deficit and the speeding-up of inflation, instead of accomplishing balance and stability, encouraging invest-

Stabilisation of exchange rate According to recent estimations, Serbia will score the highest GDP growth in the region in 2010, of 1.5%. It is a good sign, but it is important to keep in mind that the standard of living has significantly dropped. As producers of coffee, which is one of the leading products in the consumer basket, we directly feel that consumers are being exposed to great pressure. Producers are also in an unfavourable situation, and economic growth mostly depends on them. On one hand, it is well-known that growth is a consequence of industrial production, based on advanced technologies, and our economy struggles with great oscillations in the exchange rate, payment problems and the unavailability of financial assets. Under those circumstances, investments are rather questionable. Still, in time, we have learnt how to invest even then when it would not be expected, so there is a chance that the

Next year, the government is counting on growth of three percent whereas the average growth expected in the world is four percent. For us, that is certainly the minimum level of necessary growth ment and export and thus ensuring faster sustainable growth. Next year, the government is counting on growth of three percent whereas the average growth expected in the world is four percent. For us, that is certainly the minimum level of necessary growth, but it might remain just a hope, if we do not head in the right direction. Inflation is speeding

We further extend that structural imbalance with the growth of the budget deficit and the speeding-up of inflation, instead of accomplishing balance and stability

up, public expenditure and the deficit are growing, and elections are getting closer, so the risk from populism is great. And as one cannot spend abundantly and invest more and increase exports, which is the only potential for our growth, at the same time, there is the risk that this growth rate will remain the same for next year as well. And if this is accomplished solely via further indebtedness, spending the loan granted by the IMF and sales in the privatisation processes, we will reduce the possibilities for further growth, or even fall into our own, new crisis.

CorD 77 / December 2010 25

opinions

On the right track

Mihailo StaniĹĄiÄ&#x2021;, General Director of Strauss Adriatic

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opinions economy will find ways to provide additional assets, which will be directed towards development. Bearing in mind market instabilities, I feel that significant economic growth is possible, with necessary foreign investments which will employ the production capacities of our country. Also, without the stabilisation of the exchange rate and the value of domestic currency, more significant growth cannot be expected. Cash

Without the stabilisation of the exchange rate and the value of domestic currency, more significant growth cannot be expected inflow is expected through the privatisation of large public companies, but it is not the kind of progress which Serbia needs in the long run. I believe that the elections’ getting closer will boost the search for investors, so growth might be conditioned by the greater efforts of the state to promote Serbia’s economic ratings.

Dragan Nikolić, president of Tigar AD Corporation

Solution in investments

W

ly possible and logical scenario aimed at the e at Tigar think in necessary recovery of the Serbian economy. the long-term, so However, the recovery of the real sector is not in our projections and possible without new investments, whose development strategy valourisation takes both time and patience. which runs until 2013, we have tended to care- For illustrations sake, in the previous three years, we have established three new facfully and realistically predict the ambience in tories at a new industrial location - for footwhich we will do business in the forthcomwear, technical and rubber recycled products ing period. A realistic attitude is also preva- and the theory that from the moment of the lent when it comes to 2011. A high inflation foundation of the new production halls until rate and an increase of the exchange rate full stabilisation a are apparently someA high inflation rate and an their minimum of a few years thing which we are facing and which will follow increase of the exchange is needed, was repeatrate are apparently edly reaffirmed. In other us in the year to come.

This fact certainly has its something which we are words, to accomplish regrowth, it is necconsequences on the fifacing and which will follow alistic essary to invest, and to nal balance and business us in the year to come valourise investments, success plans, and the and the factor of time is necessary. only solution is in a high rate of exports and That is why I will not say anything new if savings programmes on all levels.

I see economic growth in 2011, but with inAt the same time, a turn in the official nacomplete fulfilment of plans, as well as the tional policy toward companies with export series of paradoxes which will certainly follow aspirations has been announced, which is a us for some time more in the future. good thing, meaning - it represents the on-

Vladimir Gligorov, associate of the Vienna Institute for International Economic Studies

Increased consumption

C

urrent expectations are that there will be some speeding up of growth in 2011.

This year’s 1.5% should be superseded by as much as 3% growth of the GDP in 2011. However, there are some risks on the down side.

One reason is accelerated inflation which will induce the central bank to continue raising its policy rate and to attempt to stabilise the exchange rate. The former will make it more difficult to borrow and invest while the latter will remove the boost to exports that the depreciation of dinar has provided in the last couple of years.

Finally, accelerating inflation will create problems for the intention of the government to increase wages and pensions in real terms and may also put additional pressure on the need for fiscal consolidation in 26 CorD 77 / December 2010

order to stabilise prices.

What will the government do? If experience is any guide in these matters, the government will opt for increased consumption with the view to support higher growth rate in 2011 with the view on elections in 2012. In the current environment of growing unemployment and declining incomes, the government cannot afford to worry about inflationary pressures. Indeed, one way to keep inflation under control is to stabilise the exchange rate and to disregard the growth of imports and the widening trade deficit. In the past, the central

Next year’s growth acceleration will have to be paid by a post-election slowdown bank was happy to support such a policy mix and there is no reason to expect that this time around it will be any different.

Current policies will fall short of these goals. Next year’s growth will be based on higher consumption and higher prices The key issue when judging short term growth prospects is whether the foundation will be laid for sustained growth in the medium term (next few years) and in the long run? Current policies will fall short of these goals. Next year’s growth will be based on higher consumption and higher prices. This should subdue the growing social tensions and increase the chances of the governing coalition to get through the next elections. Afterwards, the existing policy mix will have to be reassessed if growth is to be sustained in the coming years.

In other words, next year’s growth acceleration will have to be paid by a postelection slowdown.

Challenges ans Perspectives of the United Rail

UNDER THE INSTITUTIONAL AUSPICES OF MINISTRY OF INFRASTRUCTURE OF THE REPUBLIC OF SERBIA

Business Dialogue is pleased to announce the First Regional Ministerial Conference

Cargo 10 „Challenges And Perspectives of the United Rail“ which will be held on February 25, 2011 Crystal Ballroom, Hyatt Regency Hotel, Belgrade

The conference will tackle some of the following issues: • Strategic advantages, benefits and challenges of the united rail in the Cargo 10 Project • Strong regional cargo group and competition in the European market • Investment priorities in the Cargo 10 infrastructure • Harmonization of transport regulations with EU laws • Legal, infrastructural and political issues within the Cargo 10 Project • Modernization in service of competition – investments in new rolling-stocks • Construction of high-speed lines at Corridor 10 • Intermodal traffic development and terminals improvement in the region • PPP as one of possible financing models • Application of global standards in the fields of technical and IT solutions in the Cargo 10 project Some of the speakers of the conference: • Robert Vuga, Director, Cargo 10 • Milutin Mrkonjic, Minister, Ministry of Infrastructure, Republic of Serbia • Patrick Vlacic, Minister, Ministry of Transport, Republic of Slovenia •B ozidar Kalmeta, Minister, Ministry of the Sea, Transport and Infrastructure, Republic of Croatia •N ail Seckanovic, Minister, Federal Ministry of Transport and Communications, Federation of Bosnia and Herzegovina •A ndrija Lompar, Minister, Ministry of Maritime Affairs , Transportation and Telecommunication, Republic of Montenegro •M ile Janakieski, Minister, Ministry of Transport and Communication, Republic of Macedonia • Goran Brankovic, Director General, Slovenian Railways • Milovan Markovic, Director General, Serbian Railways • Zoran Popovac, CEO, Holding of Croatian Railways •N edzad Osmanagic, Director General, Railways of the Federation of Bosnia and Herzegovina • Zdravko Savic, Director General, Republika Srpska Railways

Who should attend: • Infrastructure Managers • Transport Ministries • Safety Managers

• Risk Assessment Experts

• Engineers

• Telecoms & IT Engineers

• Signalling Experts

• Consultants

• Technical Directors/Managers • Regulatory Bodies & Law Firms • Rolling stock Manufacturers

• Track Maintenance Companies • Suppliers • Business Developers • Lawyers / PPP specialists • Bankers /Investors

Contact us for more details: Knjeginje Zorke 11b 11000 Beograd, Serbia Tel: +381 11 308 99 77 Fax: +381 11 308 99 88 office@aim.rs www.business-dialogue.eu CorD 77 / December 2010 27

economy PRESENTATION OF THE ‘WHITE BOOK’

ThE vICIOUS CIRCLE OF BUREAUCRACy

Participants in the panel (from left): Slobodan Milosavljević, Minister of Trade and Services; Jasna Matić, Minister of Telecommunications; Božidar Đelić, Deputy Prime Minister for European Integration; Dejan Šoškić, Governor of the Serbian National Bank; Milica Bisic, Professor of Economics; Kjell-Morten Johnsen, FIC President; Goran Pitic, Vice President of FIC; Costin Borc, FIC Board Member; Vassilis Glinos, FIC Board Member

The main macro-economic risk that the Serbian economy will be facing in the forthcoming years is an abrupt and significant decrease in foreign capital inflow and a balance of payments crisis

Prepared by Jelena AleksiĆ

Book’, stating that predictability is the key element of each decision made in regards to investment. For the seventh time in a row, the ne of the key arguments authors of the publication have analysed the used by domestic officials business and legal environment and, as peoto explain how Serbia is atple of practice, have recommended to the tractive to foreign invesGovernment the steps it should take in order tors is the low value addto make Serbia more competitive. At the very ed tax rate and the cheap labour force. These beginning of the book, Kjell-Morten Johnsen, very foreign investors as part of the Foreign the president of the Council, writes: Investors Council clearly define their stand on - From a business perspective, it is clear this argument in their publication the ‘White that predictability is a crucial eleThe major problems in the energy sector are ment of any investment decision.

Many countries make the mistake insufficient electric power generation capacity of thinking that attracting investors and energy import dependency is a question of tax breaks, glossy

28 CorD 77 / December 2010

O

in the form of employment subsidies for new jobs created in the course of realisation of investment projects. Investment incentives in the form of financial grants have been especially promoted.

The Council reminds the public that the position of Serbia on the international market deteriorated last year. According to the last Global Competitiveness Report, Serbia dropped from 93rd to 96th position, out of 139 countries.

What is particularly worrying for foreign investors is the fact that the low ranking is greatly owed, to some parameters that are particularly significant from an investor’s point of view, such as: property rights (122nd place), burden of Government regulation (131st), efficiency of the judiciary system in settling disputes (132nd), efficacy of corporate boards Kjell-Morten Johnsen, (134th), effectiveness of anti-monopoly poliPresident of FIC gives an introduction speech cy (137th), cooperation in labour-employment relations (135th ), reliance on professional ing ownership rights over construction land. management (128th), and so on - the Foreign In some areas, administrative procedures are Investors Council comments. still complicated and difficult to understand Despite the Government’s oral commitfor foreign investors.

Risks ment to decrease all unnecessary business bar- The existence of numerous and compliThe main macro-economic risk that the riers and further liberalise the market, it has cated procedures for obtaining a licence for the Serbian economy will be facing in the forthbeen evident that the number of non-tax financonstruction of different facilities and the long coming years is an abrupt and significant decial burdens has multiplied and the amounts time needed for their approval, increase the risk crease in foreign capital inflow and a balance of existing fees and taxes have inof payments crisis. For several years now, the Serbian economy has been The new Law on Construction adopted in creased in the last few months.

- The Serbian economy has been recording a high and ever-growing September 2009 remains the main object hit hard by the financial crisis whose deficit in the current payment balance of interest for the FIC. Namely, this Law roots are not just driven by the glothat has been covered by foreign inbal economic crisis but more by the vestments and loans. has brought several important changes clumsy economic policy that Serbia - In addition to the aforementioned whose definite effects after only one year of has led in the last decade and continsystemic risk, the economy is facing application are still to be seen ues to do so even today – the foreign some other risks, such as the slower investors state. growth of the global economy, (which Years of heavy borrowing on the national of corruption in this field, decrease predictabilitranslates into smaller FDI, slower growth of and international market and the lack of systy and represent significant obstacles for investexports), financial crisis in the world (high intematic reforms which would direct these borments in Serbia – the Foreign Investors Council terest rates), rise in oil and other raw material points out. prices in the world market, smaller export derecommendations They conclude that mand and worsening of trade balance (about Serbia made progress two fifths of Serbian exports consist of metals in the EU integration and agricultural and food products – warns the • Reduce the rate of income taxes or social contributions so as process but also point Foreign Investors Council. to reduce the expenses of the work force out that there were no • Temporary working permits should last three years • Salaries paid during sick leave, public holidays, vacations, changes in the investLegal framework paid-leave should be paid in the amount of a basic salary, inment incentives sys(business climate) creased on the basis of previous work tem in the previous Slowness and delays in proceedings be• Abolish the obligation of paying severance pay for all the year. The existing tax fore the courts still represents an obstacle, and years of service. The employer should pay only for those and customs incenthe arbitration process is still insufficiently deyears the employee spent at his company, and the rest tives are still in force, veloped, the ‘White Book’ comments. One of should be possibly paid by the state. as well as incentives the positive aspects is the possibility of gainadvertisements and lofty statements. The reality is that most investors will look beyond tax rates and statements to evaluate the sustainability of a favourable tax system and the sincerity of upbeat statements - writes Kjell.

However Mr. Johnsen comments that Serbia is at an important crossroads.

- Moving in the direction of open markets, transparent regulations, consistent tax and legal frameworks and an efficient and fair judiciary, brings the realistic hope of a much more vibrant economy and a substantial improvement in living standards for the population. It is not easy to get there, but some of the ground-work has already been done. Going forward, it is important to stay the course and avoid easy, short-term solutions. The FIC is ready to continue being a constructive and reliable partner in this process, as we share the same goals – he writes.

The White Book’ mostly deals with problems of the legal system, infrastructure and employment.

CorD 77 / December 2010 29

rowings towards modernisation and improvement of the economy, (and ultimately to new foreign investments and economic growth), resulted in increased public debt requiring regular servicing. In order to provide the lacking finances for debt servicing and day-to-day management while at the same time avoiding taking unpopular measures such as increasing VAT and corporate profit tax, the Government is either introducing new fees and taxes or increasing existing ones. By their legal nature, these burdens are predominantly various administrative fees and taxes, with few ones being payable as a cost for the use of certain public goods.

energy sector which are direly needed. As it stands now, the NIS monopoly will end on 1 January 2011, despite requests for extension of this deadline.

Real estate and construction The new Law on Construction adopted in September 2009 remains the main object of interest for the FIC. Namely, this Law has brought several important changes whose definite effects after only one year of application are still to be seen. This Law is very complex since it makes an impact on five very important fields: spatial planning, construction, urban construction land, restitution and legalisation, which could cause problems in the Law Infrastructure implementation and acting practice.

There are major deficiencies as well as - One of the most important innovations opportunities in the transport sector in Serbia. of this Law is the transformation of land usage Unsustainable tariff and financial policies and rights into ownership (freehold) rights over inadequate use of existing funds have resulted construction land. The companies that gained in a significant de-capitalisation of the sector land in the past (under privatisation, bankruptand deterioration of the quality of infrastruccy or execution procedures, or based on previture and equipment. The institutional capacity ous construction land regulations in effect prihas also much weakened, as systems and proor to 13 May 2003) will be able to transform cedures for planning, monitoring and managMirko Cvetković, Prime Minister of Serbia the usage rights into ownership rights by paying transport activities have been neglected or at the presentation of the ’White Book’ ing a fee representing the difference between even misused. the market value of construction land and the capacity for natural gas used in households - Over the past few years, institutions have costs of acquiring the land right - concludes for heating and in the industry is a burning ishad to focus on coping with emergencies, leavthe Foreign Investors Council. sue every winter. The Government recognizes ing little room for developing and implementThe minimum price of the majority of urban these problems and is investing significant efing long-term plans. This has resulted in inland is still determined by the Government’s forts to override them – according to FIC. efficiencies and bottlenecks which are bound regulations, instead of being regulated to slow down economic recovery if The Serbian economy has been hit by the market. Moreover, prices difnot addressed soon – explains ‘The hard by the financial crisis whose roots are fer from one municipality to the othWhite Book’.

The major problems in the en- not just driven by the global economic crisis er, which is a consequence of the fact local regulations are unclear. They ergy sector are insufficient electric but more by the clumsy economic policy that that include a lot of imprecise procedures power generation capacity and enSerbia has led in the last decade and which regulate the tenure fees and loergy import dependency. cation permits.

- Also, insufficient generation continues to do so even today A great problem with the construction process is poor infrastructure and bureauNumerous projects Advice: Abolish the monopoly cratic procedures in public utility companies are envisaged to iminvolved in this process. The reform of this prove the energy sup• Institution of ownership-legal relations sector is crucial for the entire procedure. ply on the Serbian • Introduction of competition to the markets of the infrastrucAn additional problem in respect to the market.

However, the ture and utility sectors, and starting the privatisation of pubprocedure of construction permits is the fact low price of electriclic companies that the right of ownership over the location ity and present mo• Creation of conditions for competition in a regulated maris to be acquired prior to applying for the connopoly of Oil Industry ket, where all participants are equal and monopolies are adestruction permit.

In most cases this means that of Serbia (NIS), now quately regulated the conversion procedure should be executmajority owned by • Reforms of the Serbian education system and its harmonisation with the economy’s needs ed prior to obtaining the construction permit, Gazprom, disables fur• Stimulation of applied science development which significantly prolongs the procedure ther investments and • Greater efficiency of local self-authority communities and may cause additional costs.

■ improvements in the 30 CorD 77 / December 2010

CorD 77 / December 2010 31

corporate MARKO CAREVIĆ, FINANCIAL SERVICES (PRODUCT) SPECIALIST, TELENOR

A MOBILE phONE INSTEAD OF A WALLET It was very important to us to deliver a service to our users that would be totally simple, yet completely reliable

By Gordana BulAToviĆ Photo: Darko cveTAnoviĆ “You can apply for this service, which is available to all Telenor’s post-paid subscribers, in any Telenor shop and after that in one of four the banks supporting the service – Komercijalna Banka, Raiffeisenbank, Erste Bank and Credit Agricole Bank. We are absolutely confident that other banks will become partners in this service, soon after the promotional period expires on 1st April, 2011”, our interlocutor explains.

Instead of the usual SIM card, the PlatiMo user will get a special SIM card (called a WPKI SIM) with a qualified e-certificate. Once the card has been activated, the mobile phone display will show Telenor’s SIM menu which contains the mCertificate, after which the subscriber enters the sPIN code in order to sign it. After the certificate is activated, the subscriber forms a link behanks to the new Telenor servtween the phone and his bank account, or up ice called PlatiMo, Serbian moto three bank accounts. bile phone users are now able In addition to the card, the subscriber to pay their bills via their mowill also receive sPIN and sPUK codes that bile phones, directly from their are used for authentication. These codes are bank accounts. covered in a protective film, so nobody, ex“We believe that this service will decept the subscriber, can see light our clients who don’t have much spare time and who are ac- ”We believe that this service will delight our clients who them. For additional proteccustomed to having their mobile don’t have much spare time and who are accustomed to tion, once the subscriber activates the certificate and when phones within reach”, says Marko having their mobile phones within reach” he uses the PlatiMo menu for Carević, Financial Services the first time, he will be forced to change which will facilitate faster development of (Product) Specialist at Telenor. “Also, we are the sPIN code that has been supplied. payments via mobile phones, in comparison confident that this new payment system will In Carević’s words, this provides absoto other countries. be widely used amongst the younger populute protection to the subscriber even if he According to Carević, the activation of lation who is used to communicating via the loses his mobile phone. The system is set in ’Pay by Mobile’ (’Plati Mobilnim’, in Serbian) Internet”. When devising this service, the such way that if you fail to enter the correct or PlatiMo, for sure, is very simple. main objective of Telenor’s project team was

T

32 CorD 77 / December 2010

for this new product to satisfy two basic criteria.

“It was really important to us to supply a service to our users that would be totally simple, yet completely reliable”, Carević outlines. “Our goal is for the Serbian general public to gradually replace their wallets with mobile phones.

It was really encouraging for us to see that, in the countries like Norway, where service based on identical technology has been used for the past nine years and which has proved to be very popular amongst users.

There has not been any misuse or frauds of this system so far”.

In Europe, usually mobile telephone operators have launched similar services in cooperation with just one bank which is a limiting factor for both users and vendors.

In Serbia Telenor has been cooperating with four biggest banks from the very beginning,

sPIN code in three consecutive times, the For the first time ever in Serbia, halcom application is locked. If you keep on enterand Telenor will start issuing qualified ing the wrong sPUK code, the card’s cere-certificates that will be available on the tificate will be terminated, so there is no window of opportunity for misuse. mobile phone cards Telenor produced these special SIM ers the option of paying their utility and Not long ago, Telenor conducted a market cards in cooperation with the German electricity bills, cable TV and Internet, hosurvey regarding mobile phone payments. company G&D, while the solution itself tel accommodation and restaurant and shop“Based on this survey, which was conhas been designed in collaboration with ping bills via a mobile phone. We would alducted last year, we came to the conclusion the leading company in the area of moso like to be able to offer to our users the that people want to pay their monthly utility, bile payments and e-commerce in South opportunity to pay for cinema, theatre and phone, Internet bills, as well as for goods and East Europe, Halcom from Slovenia. For concert tickets, taxi rides, supermarket purservices in boutiques and restaurants, in a the first time ever in Serbia, Halcom and chases and everything else that is at disposmuch faster and simpler way. They also want Telenor will start issuing qualified e-certifal to people living in countries where this to have a simpler and more secure method of icates that will be available on the mobile kind of service has been available for a long shopping online, to pay their loans or leasphone cards. time”, our interlocutor says. ing instalments, insurance policies, withdraw For now, by using the PlatiMo application, Telenor says that two out of the ten most money from ATMs and send money to other subscribers can pay mobile phone bills issued important mobile phone applications (acpeople”, Marko Carević adds.

by Telenor, send money to other PlatiMo cording to the Gartner survey), that will have Prior to the introduction of the PlatiMo users, buy online, purchase airplane ticka significant impact on the telecommunicaapplication, ets via JAT For now, by using the platiMo application, mobile phone tion sector from 2012 onwards, are already Airways’ included in PlatiMo service. These are paycall cen- subscribers can pay mobile phone bills issued users were ments and money transfer via mobile phones. only able to tre and buy

by Telenor, send money to other platiMo The company says that it has implemented utilise servcredit for users, buy online, purchase airplane tickets ices like purthe basis for using other applications that are any pre-paid on the top ten mobile phone applications list. number in via JAT Airways’ call centre and buy credit for chasing moBy introducing this service, Telenor has dethe Telenor any pre-paid number in the Telenor network bile phone veloped a platform that links telecommunicredit, mParknetwork. Of cations to the finance sector. ing or SMS banking (i.e. acquiring your bank course, all of this is paid directly from a bank “The Ministry for Telecommunications account balance via the phone or getting varaccount. The number of vendors that are part and Information Society supported our servious notifications from a bank). Discouraged of PlatiMo system is growing day-on-day. ice, believing that this is an important step by the frequent misuse of credit cards, people In addition, the SIM card certificate towards the development of e-commerce in and financial institutions have been contemcan be used to access e-government and Serbia”, Carević outlines. “Also, thanks to plating going back to the old methods of payfor VPN log-in and authentication (such as cooperation with e-government, all PlatiMo ment. Credit and debit cards with magnetic with Smart Card or a token). users will have access to e-government and strips are very easy to misuse and credit card “All transactions, before being procwill be able to order personal documents, abuse is developing at such an alarming rate essed in a bank, have been digitally signed such as birth or citizenship certificates”. ■ that even law enforcement agencies cannot on the SIM card”, Carević explains. “A subkeep up with it. scriber needs to take three steps. The paypROMOTIONAL pERIOD “Insufficient sement order is sent to the user’s mobile phone curity when using and this order contains needed information credit cards for on(payment amount, vendor’s name and simiIf a user wishes to activate the PlatiMo service, Telenor will replace his SIM card free of charge. line shopping, as lar details), offering a choice for a customer Likewise, during the promotional period, which lasts unwell as a very low whether to approve or reject payment. Next, til April 1, 2011, monthly maintenance of this service is also free number of Internet the user needs to enter their sPIN code after of charge, while each successful transaction will cost five dinars vendors are the which the payment order is digitally signed which will be added to the subscriber’s mobile phone bill. main reasons for and forwarded to the bank via secured chanAt a later stage, the price of this service will be 50 dipeople being scepnel. The last step is when the user receives nars charged to the users monthly mobile phone bill, while tical about this opinformation on transaction status. All text the fee for each successful money transaction will be seven dinars”, Carević says. “The service will be available to our users tion, otherwise, it messages used for this purpose are sent via even when they are abroad, but, due to roaming, they will be is a very attractive a special encrypted channel from the user’s charged for the encrypted text messages which are exchanged way to shop. Hence, SIM card to the bank and vice versa. The between the user and PlatiMo system in-line with valid text Telenor will soon whole transaction takes less than 15 secmessage price for the particular country”. offer to its subscribonds to complete”.

CorD 77 / December 2010 33

interview MILICA DELEVIĆ, DIRECTOR OF THE EUROPEAN INTEGRATION OFFICE

EU INTEGRATION is a process It is best to think in the short and mid-term. At this moment we are thinking about how to adopt the action plan which will transform the report into the time frame needed for its adoption. When the questionnaire arrives, I expect that we will have the answers in the first quarter of next year

exclusive

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he European Commission has published another report on Serbia’s progress toward the EU in which the authorities have won laurels for regional cooperation, but also received some criticism on the reforms of the judicial system and the level of corruption in the country. Milica Delević, Director of the European Integration Office, is not surprised with the European findings and feels that the report is positive overall. In her interview for CorD, she talks about Serbia’s European future, relations toward Kosovo, the reforms before us, and also about the benefits which Serbia will obtain if it receives candidate status next year. n How do you estimate the new report of the European Commission? r The report is not surprising. It shows what we have done in the last 12 months and systematises and demonstrates how much that is in the function of upgrading the European path. Overall, it is positive with an emphasis on some areas where it is necessary to speed things up. For us, the report represents a kind of a ‘road map’ which shows what areas require more work. n The most severe criticism was levelled at the reforms of the judicial system and the fight against corruption. r I was not surprised by that either because these are the processes which take continuous work over a longer period of time and they will be the areas which will be crucial for our integration in the European Union.

The reform of the judicial system is extremely large and will last a long time. The main thing is to com-

34 CorD 77 / December 2010

plete the adoption of European standards, so all criticism should be understood as an attempt to correct the ongoing process. Corruption-wise, it can be seen that it is a problem for all the countries in the region and the Commission realises that all of us have a legal framework which needs to be promoted, but state in addition to this that investigations, verdicts for cases of arrests or suspicion of corruption need to be looked into as well.

IMpORTANT ISSUES There are many important issues which should be solved - from electoral system reform to the matter of MPâ&#x20AC;&#x2122;s ownership over mandates, return of property, the application of free competition rules, and establishing a system which guarantees the freedom of media. Those are all big tasks.

Still, one should be aware that it is a process which takes time just like any other, and it will be faster if we are a bit more dedicated to it.

n The process of the European integration of Serbia was encouraged by the latest EU decisions, but there is a long way ahead of us. How much time and energy does Serbia, with weak production, huge debts and other economic and political problems, need to reach the desired European standards? r We are not in any worse position than other candidatecountries and potential candidates. The crisis has struck even the members of the EU and the countries in the region. We have managed to accomplish the smallest possible drop in national production in the year of the crisis and to n Where do we stand in The Kosovo issue will be based head down the road of rethe focus of that magnion the Serbian Constitution. We will not covery. The issues which fying glass? r Our report is among the take responsibility for reforms in the part the European Commishas observed in the better ones which shows of the territory over which Serbia currently sion report are valid, meaning that we are catching up has no authority that the crisis has bought with our neighbours. Of into plain sight numerous course, there is a lot to be structural problems. That is why it is important to speed up done because it is a series of events which takes time. The precisely these structural reforms so that stronger economic report shows whether you are still dedicated to that goal, at growth and better employment can take place. It is especially what speed you are moving ahead and which areas require an important to use this period of political stability to accomextra effort. plish the set goals. n Which criteria did the European Union apply this year n Do you have a projection on how much time we need to while assessing Serbia? achieve the European standards? r As an example, last year they compared us to the progress r It is best to think in the short and mid-term. At this moment made in 2008, which was largely taken up by political events we are thinking about how to adopt the action plan which will such as the elections and Kosovo. Realistically speaking, there transform the report into the time frame needed for its adopwas not a lot of time or opportunity to pay attention to the tion. When the questionnaire arrives, I expect that we will have adoption of laws. Last year, a great move ahead was estabthe answers in the first quarter of next year. Things should be lished by speeding up the judiciary agenda, but this year, it was done so that the findings of the European Commission on canbased on observing the way in which the laws are applied and didacy status, which has been announced for the second half of whether the bodies under those documents are being formed.

2011, will be positive and that we will then really be given the On that criterion, we are one step ahead and those criteria are status of a candidate. more complex. The next step will be more difficult because it is much harder to apply laws and alter concrete behaviour than n And the answer to the question of when Serbia could it is enacting laws. n Still, could we have done better? r Things can always be better. On the other hand, when we look at the processes of integrations of other countries, it is clear that it is not an act, but a process. So, so far, nobody has managed to finish everything in just a year, and neither can we. Besides, the rule is that the closer you are to the European Union, the stronger the EUâ&#x20AC;&#x2122;s magnifying glass to observe you is. Conversely, the state brings in more and more laws whose enactment is checked by the Commission, which is the gist of the approaching process.

FUnDs Annually about 200 million euros is available to us, which means that so far we have received about two billion euros.

laWs everybody is obsessed with numbers and the conviction is that there is a final number of laws which should be adopted, and then that is it.

rePort The european Commission has observations in the report that are valid, meaning that the crisis has bought into plain sight numerous structural problems.

CorD 77 / December 2010 35

become a member of the EU? r It depends on how we work. That is why it is important that ‘lap times’ in all preceding phases be as good as possible.

r It has been mentioned several times in the earlier reports on progress as our unperformed obligation. It has been mentioned in the same fashion in the document about European partnership.

The adoption of this law is part of the road map for achieving candidacy status.

n Are all new laws being created on the basis of European ones, as has been agreed? n One of the key provisions in the r We began harmonisation in 2003 on ‘identification card’ for candidates a voluntary basis. Ever since the Stawhen joining the EU is their borbilisation and Association Agreement ders. In what way does Serbia idenwas signed, the harmonisation process tify itself when filling in the neceshas become mandatory for all areas sary documents? specified under the agreement. We have r If you mean to ask whether the broadened the testing of harmonisation answers to the questionnaire will into all the laws which are being enacted. clude Kosovo, it is clear that it will By this, I refer to the obligation of minbe based on the Serbian Constitution. istries to submit harmonisation charts, At the same time, just like when we which show what relevant European negotiate on the Stabilisation legislation has been consulted and Association Agreement and applied, alongside the drafts The EU mutual stand is that the or the CEFTA agreement, we of laws. However, the complete entire region should move toward will not take responsibility for harmonisation of all laws and deadlines is something that will the EU and should be included in the reforms in the part of the territory over which Serbia curbe the topic of negotiations and process of regional cooperation rently has no authority, with which will be present the moour answers. The questionment we join the EU. naire is not the way to solve the problems, but it gives an overview of the current situation and a way to detect a problem, and n How many completely harmonised laws are there? this will represent a wider framework for the solution. r Everybody is obsessed with numbers and the conviction is that there is a final number of laws which should be adopted, n In this phase, the recognition of Kosovo is not a condition and then that is it. It is a straightforward way of thinking, for joining the EU. Can that happen at a later stage and which does not reflect the gist of the process. The adoption what will our response be to this? of laws, sublegal acts, whether one law will encompass sevr Within the EU, there is no consensus on whether Kosovo is eral areas or just one, is eventually a question each country a state or not. Five members do not agree with its independhas to decide for itself. If one is aware that European legislaence. Still, the mutual stand is that the entire region should tion encompasses more than 150,000 pages, it will be clear move toward the EU and should be included in the process of that counting will not get us anywhere. The important thing is regional cooperation. In this sense, the EU wants to keep its that the adoption of laws takes place with the consultations of influence over the entire region, following the reform procEuropean legislation and the most important thing is that the esses in each country. For Serbia it is important that it is aware adopted laws are applied. of the issues over which there is no consensus, as well as where there is a consensus, and this is that everybody should move n Should we move straight to the harmonisation of all toward the EU. In this regard one should bear in mind that the laws, regardless of the fact that it is not a requirement to dialogue between Belgrade and Priština, will deal with many do so now? open issues which we will have to solve, not only for the EU’ r Setting priorities in the harmonisation process is, up to a sake, is coming closer. point, decided by the Stabilization and Association Agreement, but it is largely defined by the reformation dynamics back n In what areas has the most been done? home. Regardless of the priorities, it is important that progress r This year, according to the report, these are the areas of regionis uniform and that system laws which do not have grounds for al cooperation, the application of the Transient Trade Agreement, further harmonisation, are not running late. Complete harmocustoms, the environment, transport, and the fight against crime. nisation at this moment is not expected by anyone.

However, sometimes the report only detects substantial progress in this year, but it says that this is a small step toward the establishn What about the law on restitution?

36 CorD 77 / December 2010

ment of European standards. We are aiming for a positive assessment on this year’s progress, but also a cumulative one. n In that sense does Serbia utilise the experiences of the foreign investors in Serbia with creating European standards enough? r It all depends on which area we are talking about. There are areas where there is not much of a choice, such as for example, areas which regulate the functioning of unique market and competition protection. In areas where you can choose, such as social politics, regional politics, employment and so on, we definitely want second opinions. Then we consult the various experiences which other countries in the European Union have had. n Which methodology will be used to answer the required questions? Do we have capacities and people with experience to do this? r This work will be done by all the ministries, just like when it comes to the national integrations programme and preparations for negotiations. Our office will coordinate the task and we have people to do it in a quality manner. n To what extent will the global economic situation and the problems within the EU (Greece, Ireland, Spain and Portugal), regardless of Serbia’s efforts, realistically slow down the EU’s further enlargement? r Of course, the situation is nowadays much harder than it was when countries of Central and Eastern Europe became members of the Union. The EU itself faces the problems you have just listed. This automatically means less time and effort, but also less solidarity to be invested in the enlargement process. However, I have no doubts that the countries of the Western Balkans will become members of the EU since enlargement is not something which the regional countries have entered into for pure idealism.

It is a strategic evaluation of long-term interests. n Do you think the EU will be more rigorous when accepting new members? r Nobody is happy to turn the enlargement process into the import of new problems, whether they are problems with statistics, neighbours or corruption. I do not think that there will be any new conditions, but I believe that there will be a stricter examination of the existing conditions so that countries join the EU only after they have really fulfilled all standards and demands. That is the best way to secure support within the EU for the enlargement process, and for us that is the best guarantee that we have achieved the European standards. n What are the associated benefits of us accomplishing candidate status next year? r When we accomplish the status of a candidate, but also the confirmation of the Commission that we can manage assets on our own, we will have the opportunity of using more money from the pre-accession funds. At the same time, a country with the status of a candidate is more interesting for investors

The situation is nowadays much harder than it was when countries of Central and Eastern Europe became members of the Union. This automatically means less time and effort, but also less solidarity to be invested in the enlargement process who see a clear course and direction. Experiences of countries which have recently joined the Union show a growth of investments from that moment on. n What level of funds will be available to us after that term? r We are interested in the budget period from 2004 to 2020, and the decisions for that are expected in 2012. If Croatia becomes member before that, I think we can, with the other countries from the region, count on ‘inheriting’ a part of their money from the funds. n How much money is available to us now? r Annually about 200 million euros, which means that so far we have received about two billion euros. That money has been invested in infrastructure, energy, civil society, and the foundation of institutions and so on. The process of preparation and the application of projects has helped us build capacities in ministries and evaluate the needs for developmental help in the right way. n At this moment, considering the Kosovo problems and Serbia’s specific situation because of it, how hard is it to be the head of the EU Integrations office? r The specificity of the Serbian European integrations process is in the fact that it has been largely dominated by topics from high politics. However, reformation topics are now becoming more and more important.

■ CorD 77 / December 2010 37

interview PETER SANFEY, THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT’S LEAD ECONOMIST COVERING SOUTH-EASTERN EUROPE

FURTHER REFORM is Crucial

By Jelena AleksiĆ

exclusive €2.7 billion from other sources. Cord magazine takes the opportunity to discuss with the ERBD’s Lead Economist covering south-eastern Europe, Peter Sanfey, about where the organisation is currently providing assistance to Serbia and what he sees as the current and future status of the county’s development. n In 2010 the EBRD has assisted with 15 projects in

Serbia. What have these projects involved?

The analysis suggests that, in Serbia, the biggest challenges lie in the energy, transport and non-bank financial sectors. Even in these areas, much has been done in the past ten years, but much more remains to be done to bring these sectors up to the standards prevailing in most EU countries

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he European Bank for Reconstruction and Development (ERBD) plays an active role in the development of Serbia’s economy with projects in numerous areas. Since the beginning of the year the Bank has committed close to €500 million in 15 projects in Serbia, and in total since the beginning of its operations in Serbia, the EBRD has committed over €2.3 billion in various sectors of the country’s economy, raising additional investments in excess of

38 CorD 77 / December 2010

We believe that the country can return to more sustainable growth, provided the pace of structural reforms is accelerated in the coming years r In the past year the EBRD has continued its active en-

gagement in Serbia, supporting further development of the economy through projects in virtually all key sectors. In the current economic environment the Bank has supported Serbian banks in maintaining the availability of financing to the real economy with over €160 million in credit lines to key banks in the country for on-lending to local small and medium enterprises. In July the EBRD launched the first facility for agricultural commodity financing in Serbia, aiming to improve the access to funding for agribusinesses and promote the use of warehouse receipts. The Warehouse Receipt Programme developed by the EBRD in close cooperation with Serbian authorities is a €70 million risk sharing framework that is used to finance capital needs of Serbian agricultural companies through participating Serbian partner banks.

The EBRD has continued to support the development of Serbia’s infrastructure, having signed a €100 million loan with the Serbian state-owned railway company Zeleznice Srbije, which is used to finance the upgrade of over 111 km of track on rail Corridor X and the purchase of new locomotives.

The Bank provided a €150 million loan to Srbijagas, to support the modernisation of the country’s gas transmission network and the construction of a new gas storage facility that would enable Serbia to become more resilient against gas supply disruptions and the impact of seasonal consumption swings.

In addition the EBRD has provided €40 million to Elektroprivreda Srbije to upgrade the electricity system and install modern meters, contributing to a significant reduction in the level of electricity losses, and raising the company’s overall operational efficiency.

The EBRD is also supporting local private corporates in Serbia through both debt and equity financing. n The World Bank has repeatedly complained that Ser-

bia does not use the funds that have been approved for use. Is this also the experience of the EBRD? r The EBRD is monitoring closely the implementation of the projects it finances as well as the use of the loans. The utilisation rate of the EBRD projects is very high and we do not have such complaints.

– was less than in Bulgaria, Croatia or Romania – and the economy is showing distinct signs of recovery this year.

The authorities recognised early that the country would benefit from formal IMF support and they have managed to remain on track with this programme, which is commendable given the harsh economic climate. Monetary policy has also been prudently managed throughout. The European Bank Coordination Initiative – sometimes known as the ‘Vienna Initiative’ – was important in ensuring that foreign parent banks remained fully committed through the crisis to their subsidiaries in

Any delay in the implementation of privatisation programme is not a good signal an economy sends to potential private investors Serbia. For these reasons, we believe that the country can return to more sustainable growth, provided the pace of structural reforms is accelerated in the coming years. n What are Serbia’s growth projections for next year and what risks do you see the domestic economy facing?

n What do you see as the key weaknesses of our economy, and what are its strengths? r The Serbian economy is well placed to benefit from the global economic recovery, once that takes place. Serbia occupies a strategic location in south-eastern Europe; its capital, Belgrade, is a vibrant, cosmopolitan city and a natural hub for international businesses; and the economy is quite diversified with potential for expansion in a number of areas. However, Serbia’s main weakness is that it came late to the transition after the lost years of the 1990s and, as a result, there is still a major reform agenda ahead in terms of restructuring and privatising major enterprises, moving towards EU standards in legislation and regulation, and creating a smaller but more efficient public administration. n How do you assess Serbia’s position over the past two years of the crisis as compared to the other countries in the region? r The past two years have been difficult for all countries in the region, but Serbia has actually managed to weather the crisis somewhat better than some of its neighbours.

The decline in economic output in 2009 – by 3.1 per cent CorD 77 / December 2010 39

r After a 3.1 percent decline in GDP in

r Exchange rate policy is complicated, 2009 driven by a large drop in industrial and it is not possible to say whether a activity and by falls in construction and central bank should intervene in the martrade, we expect Serbia’s economy to ket or not without knowing much more slowly pick up this year by 1.6 per cent. about the prevailing circumstances. The The growth will continue in 2011 – we past two decades of transition have shown are projecting a further 2.9 per cent inthat different exchange rate regimes can crease in GDP for next year. all be successful in delivering stable and Perhaps the biggest risk is on the fiscompetitive economies, provided the cal side. It is vital that the government right structural reforms are in place. remains fully committed, as it has been up to now, to a fiscally responsible path; n In addition the report states that otherwise investors are likely to lose Serbia entered into transition later confidence in the ability of the authorithan most countries, but reforms are ties to deliver a stable macroeconomic still structurally weak. What are your environment. The economy thoughts in regards to this could also be adversely affect- ”There is still a major reform agenda issue? ed if the eurozone were to slow r As mentioned earlier, furahead in terms of restructuring down or even enter a ‘doublether implementation of redip’ recession, although we and privatising major enterprises, forms is crucial for Serbia’s think the prospects for that are economic growth. For the moving towards EU standards unlikely. first time, the Report presents in legislation and regulation, and a comprehensive overview n The EBRD’s Transition Report 2010 says that the proc- creating a smaller but more efficient of the transition challenges ahead in 16 different sectors ess of privatisation in Serbia public administration” in each country. The analysis is slow. Currently a tender for suggests that, in Serbia, the the sale of Telecom is underbiggest challenges lie in the energy, transport and nonway, but there is still no strategy for the privatisation bank financial sectors. Even in these areas, much has been of public utility companies. The privatization of sports done in the past ten years, but much more remains to be clubs has not even begun yet. How important are these done to bring these sectors up to the standards prevailing processes and how is Serbia missing out due to the fact in most EU countries. that the processes are not being implemented? r Any delay in the implementation of privatisation programme is not a good signal an economy sends to potential n Should Serbia be required to sign another agreement private investors regardless of the sector they are targeting. with the IMF, on the basis of next year’s elections, or do Investors need to see sound frameworks in place in order to you think that the authorities in Serbia will be able to be confident about channelling their capital into the country. independently restrict public spending?

The implementation of the privatisation programme would r This is really a matter for the authorities to discuss with benefit companies through enhanced efficiency, stronger the IMF. One of the main priorities for any government is to management, strategic development and growth. It would maintain a stable economic environment through careful fiscal also boost investor confidence. policies and budget spending control. This task can involve Recently we have seen a number of steps to revive the unpopular decisions and thus can be challenging in pre-eleclarge-scale privatisation programme in Serbia – efforts to toral periods. However we expect that Serbia will stay on track privatise the national airline carrier JAT were renewed, prepwith the needed measures in order control budget deficit and to arations for the sale of a 51 percent stake in Telekom Srbija lay a long-term foundation for economic recovery. are under way. We hope to see a successful implementation of these projects that would be a positive sign of Serbia’s n Statistics show that there are more than 700,000 peocommitment to completing the privatisation process. ple in Serbia on the verge of poverty. What are your views on what the Serbian government is working on in terms of social policy? n The Transition Report also points out that the dinar has steadily fallen. Local businessmen are complaining r The EBRD’s mandate is to support the development of saying that they are losing out due to the differences in economies and is focused mostly on economic and business the exchange rate. Should the NBS continue with interfactors. However through our projects we are also seeking ventions or let the dinar depreciate? In your opinion is to improve the overall living standards in the countries the dinar is overrated and why? where we operate, including in Serbia.

■ 40 CorD 77 / December 2010

interview MR. ALEKSANDAR KOZLICA, CEO OF G4S SERBIA

CASh pROCESSING BENEFITS

By Cash Processing outsourcing the complete responsibility for processing and money insurance stops being the obligation of our clients and becomes the obligation of G4S

G

4S is the world’s leading security solutions group striving to ensure the safety and welfare of millions of people worldwide with over 600,000 employees in the group working to provide excellent service to their customers. G4S secures airports and embassies, protects cash and valuables for banks and retailers across the globe, safeguards some of the most exciting events in the global sporting and entertainment calendar, and is a trusted partner to governments worldwide, keeping personnel and some of the world’s most important buildings safe and secure. G4S employs over 4,000 people in Serbia and as the absolute security market leader provides the full scale of security services nationwide. They have recently introduced a new service in Serbia and CorD takes the opportunity to learn more about ‘Cash Processing’ in an interview with Mr. Aleksandar Kozlica, CEO of G4S Serbia.

n In what way is the reduction of costs and reduction of risks for your clients achieved? r The clients of Cash Center are banks, retailers or companies which deal with a substantial amount of cash. The advantages and savings which the G4S Cash Center offers to its clients are seen in several directions: operatively, that is the promotion of business through expanding the time interval for providing Cash Processing services, momentary processing of money and promotion of the speed of work, and by that the availability of cash are the greatest advantages of Cash Processing outsourcing.

Financial savings are represented via the reduction of the number of employees who are engaged in the work of bank vaults, via the reduction of investments into vault and security equipment, the reduction of space rental expenses and reduction of money insurance expenses.

When it comes to risk, our clients completely eliminate the risk of attack to their

recognised by our clients, so we can say that the CIT service with G4S insurance is already been used by 50% of our clients.

n Does it imply the construction of new infrastructure? r As far as infrastructure is concerned, each new project implies a certain investment.

We invested substantial means into the opening of Cash Center. This was directed in several areas, such as Security, Cash Processing equipment of the highest standards and investments into the reconstruction of objects. We completely adjusted the security structures to the rather high standards of our group, wheren A completely new service for your clias the equipment was purchased from the most ents, Cash Processing, has been announced. famous world producers.

When does it commence and what are Workers with a long banking exthe advantages of this service for your When it comes to risk, our clients perience in Cash Processing posiclients? completely eliminate the risk of attack to tions will be employed in the G4S r With great pleasure I wish to say that, their vault and eliminate the possibility Cash Center. The technology of as a part of the G4S Company, the inCash Processing is developing daiternational leader in the area of Security of internal fraud ly and the need for people is reducSolutions and Cash Handling, we will vault and eliminate the possibility of internal ing. Machines are taking over, but the human start providing the Cash Processing service in fraud, which is becoming increasingly present factor and the quality of employees is crucial.

Serbia starting in the New Year. at this time of crisis in our country. By Cash By developing and broadening the work of May I remind you that our company was Processing outsourcing the complete responCash Center, the possibility for increasing the the initiator and originator of the idea of the sibility for processing and money insurance number of employees will arise, so we are exoutsourcing of the ‘Cash in Transit’ servicstops being the obligation of our clients and pecting the hiring of a number of employees in es in Serbia which until then had been done, becomes the obligation of G4S. Last year, the forthcoming period. only internally by banks and retailers. By usG4S introduced a significant novelty on our It is our honour to be a part of such a large ing the CIT services outsourcing, our clients market, and started taking the responsibility company and to be able to rely on the long had made significant savings compared to the for the insurance of money while transporting history of experience of our colleagues from practice until then. as a part of its CIT services. This innovation abroad.

By providing its services, G4S Cash has brought serious savings for our clients.

We hope that, due to its benefits, the Cash Center offers significant advantages to its cliThe world practice that the company insures Processing service will be appealing to a large ents as well as the possibility of the complete the money which is being transported has been number of our existing and potential clients. ■ outsourcing of Cash Processing services.

CorD 77 / December 2010 41

comment DURING 2010 SERBIA PRESIDED OVER CEFTA

Free trade zone

In the conditions of the global crisis, the biggest chances for the growth of Serbian exports are in the market of the Region, bearing in mind the export structure of goods, so regional cooperation is a priority

O

n December 19th 2006, together with eight other countries (Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Macedonia, Moldova, Montenegro, Romania, Serbia and UNMIK/Kosovo as a customs territory according to the UN SC Resolution 1244), Serbia became a member of CEFTA 2006 (Central Europe Free Trade Agreement), the first united multilateral Free Trade Agreement in South-Eastern Europe. On January 1st 2007, Bulgaria and Romania became members of the EU and they left CEFTA. All members of the Agreement started applying it on November 22nd 2007.

The new CEFTA 2006 agreement has replaced the network of 32 bilateral agreements on free trade, which were in force from 2001 and which contributed to the liberalisation and easing of the conditions of regional trade. It represents an altered and modernised version of the previous CEFTA agreement which was applied by the Central European countries.

A significant advantage of the CEFTA agreement is that it makes the Region much more attractive for foreign investments, because a common legal framework for investment has been established, which should be a decisive factor for foreign investors.

The agreement specifies the obligation that all signatories shall establish a free trade zone in accordance with the CEFTA agreement articles and the relevant rules and procedures of the FTA, by December 31st 2010 at the latest. The CEFTA agreement and the establish-

Particular problems in the application of the CEFTA agreement, or the free trade agreement, are various kinds of noncustoms barriers which, according to some researches, amount to one hundred different kinds ment of the free trade zone will contribute to making the Western Balkans (Serbia, BiH, Croatia, Macedonia, Montenegro and Albania) an integrated area in the foreseeable future, which will be recognised as a destination for foreign investments and would have its own economic identity.

The most important novelties of the CEFTA agreement compared to the previous bilateral agreements, and which hold special interest to the economy, are: • Possibility of application of diagonal accumulation of the goods’ origin, • Incorporating gradual liberalisation of the ser42 CorD 77 / December 2010

vices’ trade, • Obligation of equalling investments conditions via application of the FTA rules and providing equal treatment for domestic and foreign investors from the Region, • Gradual opening of the public supplies market and equal treatment of domestic and suppliers from the Region, • Providing intellectual property rights in accordance with international standards, • The mechanism for resolving disputes which take place during the Agreement application has been improved, • Obligation of sticking to the FTA rules, regardless of whether the country is or is not the member of this organisation.

Serbia, as well as the other CEFTA members, has completely scientific advisor a specialist liberalised trade in industrial products since January 1st 2007, and in for international economic the trade of agricultural products relations a certain level of protection has remained only in trade with Croatia. A phase reduction or cancellation of preferential customs has been agreed between the two countries, as well as an increase of contingents within the specified two-year time period. The negotiated additional liberalisation of agricultural products trade will be applied after the ratification of the Agreement’s Annex on the further liberalisation to the existing CEFTA Agreement.

The market of the CEFTA Agreement signers covers a population of over 30 million people. Their chief characteristic is that they are mostly small economies with a foreign-trade and budget deficit and insufficient competitiveness of their products. Furthermore, they have a lack of revolving capital and insufficient credit support, unsatisfactory infrastructure, a high rate of gray economy and corruption.

They predominantly export agricultural-food products, industrial raw materials and semi-manufactured products, and they import machines, equipment and industrial products of a high-level of processing. These countries have an economic cooperation with foreign

By Dr Dejan Jovović,

The market of the CEFTA Agreement signers covers a population of over 30 million people

countries primarily oriented at the developed Western countries, especially in the EU (participation of EU trade is 50-80% of the total foreign trade), while they have a relatively small participation of mutual trade. Croatia scores the highest foreign-trade exchange among the CEFTA members, while Montenegro scores the lowest.

In the last couple of years, Serbia has realised a substantial share of its total export on the CEFTA market, the annual average being about 30%. It imports about 8% of its total imports from the Region. In total, it continuously scores a foreign-trade exchange surplus with the Region. It has scored a deficit only with Croatia and a slight one with Moldova. About two thirds of the trade exchange of the CEFTA region is being done amongst three countries - Serbia, Bosnia and Herzegovina and Montenegro, which are still not members of the FTA. Products of black and coloured metallurgy, chemical industry, agriculture and the food industry, electric power et al mostly dominate the structure of the goods’ exchange of Serbia and CEFTA. The surplus is, above all, the result of the greater export of agricultural products to these countries. The share of agricultural products in Serbian exports to the market of CEFTA members is about 30%, while imports are 24%. The structure of Serbian goods’ exchange with these countries has not generally changed in the last years.

In the conditions of the global crisis, the biggest chances for the growth of Serbian exports are in the market of the Region, bearing in mind the export structure of goods, so regional cooperation is a priority.

Particular problems in the application of the CEFTA agreement, or the free trade agreement, are various kinds of non-customs barriers which, according to some researches, amount to one hundred different kinds in this Region.

The most common non-customs barriers in the Region are: • Complicated procedures on the borders - significant administration and non-coordination of the work performed by customs and inspection services (sanitary, veterinary, radiology), • Lack of internationally recognised accreditation and certification bodies and insufficient authorised laboratories and institutions, • Not recognising quality certificates - agreements on the mutual recognition of these documents amongst the countries in the region have not yet been reached, so this kind of control is performed by each country individually, • The problem of non-coordination between domestic standards and technical regulations and international standards, • Lack of adequate traffic and other infrastructure, • Rather complicated visas regime, corruption and smuggling.

Certain measures, procedures and

initiatives for solving and removing these barriers are currently in the process of being adopted. This particularly refers to the problem of international non-acceptance of quality certificates (sanitary, phytosanitary, veterinary) for agricultural products, which makes the trade of these products in the Region difficult.

During 2010 Serbia presided over CEFTA. Four main priorities in the further application of CEFTA have been determined: • Potential opening of negotiations on the liberalisation of the services’ area. The first priority encompasses the preparation and the beginning of talks in accordance with the FTA, whose ultimate goal is the progressive liberalisation and opening of the services’ market among the CEFTA countries, • Creation of equal investment conditions. This is the second priority which should provide conditions for attracting the greatest possible volume of investments in the CEFTA region. That is why administrative and other barriers should be removed, and the ultimate goal is the establishment of the common investment market with coordinated investment policies of the countries of the Region, • Opening the public supplies’ market. The third priority should provide the progressive and efficient opening of the public supplies’ market of CEFTA countries with the application of the national treatment principles (same conditions for domestic and foreign bidders), • Reaching competitiveness and coordinated trade liberalisation.

This fourth priority should supply the application of the adequate competition protection policy of the CEFTA countries so that the effects of the market liberalisation can be fully used.

In Belgrade, within CEFTA week - 9th-12th November 2010 - the Business Forum of the Chambers of Commerce of the CEFTA region, the meeting of the chairmen of the former Yugoslavia’ countries’ Chambers of Commerce, and the meeting of the CEFTA Joint Ministers Committee and its subcommittees took place. On the agenda were significant topics, such as the creation of conditions for establishing a regional investment market, removal of non-customs barriers, services trade liberalisation, regional clusters and so on. The event included a number of meetings, seminars, workshops and other events dedicated to joint efforts for the removal of all barriers in the Region, as well as to the promotion of economic cooperation.

The efficient application of the CEFTA agreement, that is to say of customs-free trade and the balancing of business conditions, as well as the greater application of the diagonal accumulation of the goods’ origin, in accordance with the FTA rules and the EU standards, should contribute to the increase in production, trade and employment, a wider range of goods, greater competitiveness and a more substantial inflow of investments in the Region, as well as to general economic development.

■

In the last couple of years, Serbia has realised a substantial share of its total exports on the CEFTA market, the annual average being about 30%. It imports about 8% of its total imports from the Region

The event included a number of meetings, seminars, workshops and other events dedicated to joint efforts for the removal of all barriers in the Region, as well as to the promotion of economic cooperation

CorD 77 / December 2010 43

region BOSNIA AND HERZEGOVINA

ApOLOGy TO SERBS Bakir Izetbegovic,Vice-president of the Party of Democratic Action and the newly-elected Bosnian member of the BiH presidency, is the first Bosnian official who has apologised to Serbs, since the end of the war in Bosnia and Herzegovina 15 years ago

By Vojislava viGnjeviĆ

cal life. The office states it hopes that, after this statement, political leaders will seize the For the first time since the end of the war chance to take the step forward which will in Bosnia and Herzegovina 15 years ago, make BiH a different country. a Bosnian official has apologised to Serbs.

- This statement does not come in a vacuBakir Izetbegović, Vice-president of the Party um. The adoption of the Srebrenica Resolution of Democratic Action and the newly-elected

by Serbia, as well as the efforts made by the Bosnian member of the BiH presidency did president of Serbia, Tadić, and president of this in an interview with B92 RTV by saying: Croatia, Josipović, show that the region is go“I apologise for every innocently murdered ing through changes and that its future is in man killed by the BiH army, because each inthe EU, which was established after WWII nocent victim is equal”. He added that “an inbased on reconciliation, dialogue, tolerance ter-Bosnian compromise is needed as an inBakir Izetbegović and healthy compromise stitutional apology for the vic“I apologise for every innocently murdered the office of the high reptims of the Bosnian war.”

Among other things, man killed by the Bih army, because each innocent resentative of BiH states, and concludes that, “the Izetbegović said that a strugvictim is equal. An inter-Bosnian compromise is leaders of BiH can and gle for position among three should use this positive people has continued after needed as an institutional apology for the victims atmosphere created by the Dayton Treaty, but “it is during the Bosnian war” prospects for memberbetter to negotiate for a hunship in the EU, and turn the October elections ber of the BiH presidency, Milorad Dodik, dred years than wage war for a single one”. into a new beginning for BiH”. would be harmonious and that they would According to him, the relations between Serbia The apology of Bakir Izetbegović was met work together. and Bosnia and Herzegovina have been much by fierce reactions in Sarajevo. Thus, Nijaz The office of the high representative of better after the adoption of the Srebrenica Duraković estimated in ‘Dnevni Avaz’ that BiH saluted Izetbegović’s move as a step toDeclaration and the visit of Serbian president Izetbegović’s move looked like an equalization ward reconciliation which represents a welBoris Tadić to Srebrenica, as well as this he by the ‘all of us are guilty and we all waged come and significant change in BiH politibelieves it is necessary to stay on the track of war’ principle. Duraković the normalisation of further “I salute that statement, it is a big step assessed that nobody is relations. The Bosnian member of the BiH presidency forward and with it, in a way, all of us can contribute disputing his right to say that, but the statement feels that agreements between to the mutual reconciliation” was tacky and came at a Bosnia and Herzegovina and time when Izetbegović had just been elected Serbia, the adoption of new declarations and to the BiH presidency. Academic Muhamed the solving of open issues between the two Filipović has an extremely critical stand on countries, such as the matter of borders, are Bakir Izetbegović’s move, because Izetbegović needed. In addition to this he believes that one has not yet been inaugurated into the BiH presof the steps should be the mutual visits of the idency. He added that it was impossible for the high officials of BiH and Serbia. He suggested victim of the genocide to apologise to the one the signing of a mutual declaration between who committed the genocide.

Serbia and Bosnia and Herzegovina which - This shows the political, psychological would declaratively turn both countries toand mental immaturity of Izetbegović who ward the future. Talking about the current sitgave himself the right to speak in the name of uation in BiH Izetbegović announced that reall of us, Filipović said. lations with the newly elected Serbian memIvica Dačić 44 CorD 77 / December 2010

A professor of the Sarajevo Faculty of Philosophy, Enver Imamović, feels that the citizens of BiH and Bosniaks do not have the obligation to apologise to anyone, but on the contrary - everybody must sincerely apologise to them for the evil deeds done. The president of the organisation ‘Mothers of Srebrenica and Žepa’, Munira Subašić, feels that “as far as the victims are concerned, nobody can and should apologise for us”.

Beside these critical responses coming from the Bosniaks, the other ones in BiH who are rather vocal respond to Izetbegović’s critics like this: “15 years after the war, what should we do?”

- Should we add fuel to the fire? We cannot create a trusting relationship between Sarajevo and Belgrade if we constantly tighten them, if we hand slap each other. It will go on forever - Sinan

The apology of Bakir izetbegović was met by fierce reactions in Sarajevo. In the opinion of some, the apology shows the political, psychological and mental immaturity of izetbegović

MONTENEGRO

EU CANDIDATE STATUS

O

n 09 November the european Commission gave the opinion that Montenegro had fulfilled the required conditions and recommended EU candidate status for Montenegro. In addition to the positive opinion, the Commission advised Montenegro to improve on seven points, most notably in the rule of law area. Prime Minister Milo Djukanovic has expressed optimism about meeting the priorities, especially because Montenegro does not see them as just as ‘EU homework’, but as something that Montenegro needs to do to improve the lives of its citizens. Djukanovic estimated that Montenegro “can quickly fulfil all necessary conditions and start negotiations during the next year.”

GREECE

hISTORIC vICTORy

A

Alić, president of the ‘Truth, Justice, Reconciliation’ foundation from Tuzla, thinks.

On the other hand, Izetbegović’s apology was met by approval in Serbia. So, the deputy Prime Minister and Interior Minister Ivica Dačić stressed that it was a positive step closer to general reconciliation in the region.

- I salute that statement, it is a big step forward and with it, in a way, all of us can contribute to the mutual reconciliation - Dačić said.

He mentioned that Serbia dedicated itself to the development of good relations with Bosnia and Herzegovina, as well as that political events and statements like Izetbegović’s one are handy for the promotion of general relations of the two countries. Dačić said that it was of a much greater interest of Serbia to find a mutual language with the surrounding countries and people with whom it lives, than with some countries thousands of kilometres away.

All in all, Izetbegović’s apology has a greater significance than just a symbolic one, when considering the processes that the region is undergoing, especially the recent visit of Serbian President Tadić to Vukovar which represents, just like Izetbegović’s gesture, another link in the chain of reconciliation in the ex-Yu territory, which is much needed by the people from this area, be they victims of past wars or not.

■

fter a hiatus of 24 years, a socialist candidate has been elected as mayor of Athens.

PASOK-backed candidate George Kaminis, who is a former Deputy Ombudsman for Human Rights in Greece, overcame New Democracy candidate Nikitas Kaklamanis and won the elections in the Greek capital. During the elections held in mid-November, the governing socialist party PASOK won eight of the total 13 municipalities in the second and final round of elections. The elections however were marked by a record low voter turnout across the country, including a record 10 percent of ballots left blank and an overall voter turnout of 47 percent nationally.

CROATIA

JUDGE SENTENCED

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former judge in Croatia has been sentenced to jail for the abuse of power. zvonimir Josipovic, who was also the president of the Municipal Court in Gvozd, has become the first judge to be sentenced to jail in Croatia. Josipovic fled to Banja luka (Bosnia and Herzegovina) and so was tried in absence on the charges of abuse of position and power, and after being found guilty, was given a sentence of four and a half years in jail. There were complaints by Josipovic about irregularities in the procedure of the trial but these claims have been disputed by the court.

CorD 77 / December 2010 45

region MONTENEGRO

ThE ERA OF COMpETITIvENESS Scientists at the Montenegrin Academy of Sciences have produced a study attempting to answer the basic question of: “How do we modernise Montenegro and its society; how do we make it more competitive with the European and world community?”

By Ilija desPoToviĆ

The academics have attempted to answer the basic question of: “How do we modernise he Montenegrin Academy of Montenegro and its society; how do we make Sciences has recently published a it more competitive with the European and worthy study titled ‘Montenegro world community?” Several problems have in the 21st Century in the Era of been detected.

Competitiveness’. It initiated the project itself, and the Montenegrin government has ac- In more than 250 rural settlements the average cepted it. The study age of the population is 50. Every fourth man in represents a sweepMontenegro, aged 35 to 39, is single ing view of the gen-

T

al politics, particularly the electoral system.

The academy is worried about the demographic situation, which is reflected in a rather low birth rate.

BIH AND ALBANIA

Officials of both countries have saluted the decision of Brussels to cancel visas for citizens of Bosnia and Hercegovina and Albania

eral condition of the state and society, of all resources, institutional and any other infrastructures, all the way to the analysis of political relations and mentalities, educational and cultural circumstances, the status of the younger generation and all other relevant matters.

46 CorD 77 / December 2010

Demographic devastation, an economic model based on the use of a semi-qualified labour force, a political culture with a dominant consciousness of submissiveness to the state, insufficient transparency in decision-making processes in the country and society, irration-

As of the 15th of December, citizens of Bosnia and Herzegovina and Albania will be able to travel to the countries of the European Union without visas. Interior ministers of the EU reached this decision at the beginning of November, and this move has delighted officials and citizens in both countries.

Counting on the fact that the cancellation of visas might be abused, two control mech-

Podgorica coffee shops are filled with young politics. The application of innovation is inExperts say that the biological substance people at any time of the day. Or, for examsufficient. Young people are employed mostof Montenegro has been endangered. Deple, there are warnings against the immigraly in state administration. In general, peopopulation across a range of areas in the countion of foreigners. In particular ‘a significant ple turn to the state too much and ask for try has occurred. Numerous villages are rapnumber of immigrants from Russia, especialhelp and solutions for their problems from idly disappearing, and elderly people are the ly in the municipalities close to the seaside’ it. This is how a political culture is created. prevalent population in the remaining villaghave been registered. Nobody knows es. In all the municipalities, exfor sure how many Russians there people turn to the state too much and cept for Rožaje, during the period between 1961 to 2003, when the ask for help and solutions for their problems are. The figures go from four to forty thousand. Xenophobia is not advolast census took place, the popufrom it. This is how a political culture is cated, but it is being pointed out that lation went from the categories of this opens a whole range of problems young or rather young, or mature, created. ‘Clientelism’ is present in the for which Montenegrin society is not to the category of old. In more political decision-making process, which is ready. It is being warned that climate than 250 rural settlements the avchanges could also make Montenegro erage age of the population is 50. far less administrated by quality an ‘invasion country’ for foreigners.

Every fourth man in Montenegro, What would happen if 100,000 foreigners ‘Clientelism’ is present in the political deciaged 35 to 39, is single. settled here? In a country with 700,000 citsion-making process, which is far less adminThe Montenegrin economy, according to izens, such as Montenegro, a hundred thouistrated by quality. set conditions, rests on the production of lowsand could substantially influence numerous These analyses go as far as everyday pervalue-added items. The management of busichanges.

■ ceptions, so it is, for instance, stated that in ness companies is even more turned toward

FREE TO EU Sali Beriša

“This represents the greatest success concerning the freedom and dignity of Albanians since the fall of the Iron Curtain” anisms - the monitoring of which will check whether the agreed and achieved standards are being continually respected and the mechanism of an early warning shaped as a constant dialogue which will be focused on the matter of asylum seekers - have remained in place.

Regardless of these ‘Brussels fences’, both countries’ governments have congratulated their citizens. The Chairman of the Ministers’ Council, Nikola Špirić, said today that the decision on the cancellation of visas was reasonably expected for BiH. - It is a very good result, but what is not good is the way in which certain international institutions treat BiH - Špirić said while criticising the negative words and assessments

Valentin Inzko

coming from international sources about the successes accomplished in BiH. The High Representative for BiH, Valentin Inzko, said that cancellation of visas took a heavy load off the citizens of BiH. - Numerous citizens of BiH have seen visas as a kind of isolation and humiliation, which will no longer be the case. With this action, Europe has strongly knocked on BiH’s doors. The gates are now open for the citizens of BiH, and the gates are even more open for BiH as a country − Inzko stressed.

In Albania, according to stories in the local press, the decision on the cancellation of visas achieved the impossible - uniting the warring Albanian politicians. Although they agree on few things, they were united in saluting this EU move.

President Bamir Topi has assessed it as “the most significant day for Albanians, after the proclamation of independence and the fall of communism”.

- This represents the greatest success con-

“Numerous citizens of Bih have seen visas as a kind of isolation and humiliation, which will no longer be the case” cerning the freedom and dignity of Albanians since the fall of the Iron Curtain − Prime Minister Sali Beriša said.

His main rival, the leader of the Socialist Party, Edi Rama, said that it was high time to leave all the debates aside and enjoy the moment. He also invited Europe to “tear down the visas wall” for neighbouring Kosovo, the only country in the region which was left out of the visas regime liberalisation process.

Cecilia Malmström, European Union Commissioner, responsible for Home Affairs, who visited Tirana in November, warned that the decision about White Schengen could be re-evaluated if there are any abuses.

■ CorD 77 / December 2010 47

& faces

places H.E. Armando Varricchio, Italian Ambassador to Serbia welcomes Jadranka Jovanovic, the Serbian prima donna at the reception which was organized on 04 November at the premises of the Italian Embassy on the occasion of the National Day of the Army of Italy

H.E. Charalambos Hadjisavvas, Ambassador of Cyprus to Serbia and H.E. Mary Warlick, U.S. Ambassador to Serbia at the reception which was organised at the Embassy of Cyprus for the 50th anniversary of the independence of Cyprus on 09 November.

H. E. Shpëtim Çaushi , Ambassador of Albania to Serbia and Sulejman Ugljanin, minister without a portfolio on the occasion of the National Day of the Republic of Albania, at Aeroklub on 24 November.

H.E. Toko Diakenda Searo, Ambassador of Angola to Serbia, officially opened the exhibition of photographs and images titled ‘Calling from Angola’, on 09 November at the GUARNERIUS, Fine Arts Centre.

H.E. Wolfram Maas, the German Ambassador to Serbia, pictured here with his wife, invited a large number of guests to a concert held on the occasion of the 21st anniversary of the fall of the Berlin Wall on 09 November at the Bitef Theatre, including H.E. Mr. Jonghae Kim, Ambassador of the Republic of Korea.

48 CorD 77 / December 2010

Patriarch Irinej with H.E. Moustapha Hamdan, Ambassador of Lebanon to Serbia at the reception celebrating the 67th Anniversary of the Independence of Lebanon which was held on 22 November at the Aero Klub.

H.E. Stephen Wordsworth, the British Ambassador to Serbia, hosted a reception on11 November which was organised to mark the completion of the Belgrade office of the Department for International Development of Great Britain (DFID).

At the opening of the art exhibition titled ‘Exhibition Figures Tradition NATIONS’ at Dom Vojske on 04 November, from left: Dejan Djoric, art critic and author of Reality Art; Milenko Jankovic, founder and president of BARTI and organiser of the exhibition; Gordana Savic, organiser and project director of the exhibition; Dragan Jovanovic Danilov, art critic and writer; and Bubanja director of the gallery Media Centre Reconstruction.

Diplomats, business people and guests at the reception celebrating the National Day of Turkey on 29 October at the Hyatt Hotel.

faces & places

H.E. Ali Riza Colak, Turkey’s Ambassador to Serbia and Nebojsa Bradic, the Minister of Culture celebrate the National Day of Turkey on 29 October at the Hyatt Hotel.

CorD 77 / December 2010 49

& faces

places H.E. Mr. Mesdoua, Ambassador of Algeria and Mrs. Mesdoua greeting M. Stevan Labudoivc, photographer of the Algerian Revolution at the celebration of the National Day of Algeria on 15 November at the Hyatt Regency.

Cutting the cake at the reception celebrating the National Day of Algeria on 15 November at the Hyatt Regency, from left: The Imam of Belgrade, Mustafa Jusufspahić; Zdravko Ponos, Assistant Minister of Foreign Affairs; Tomislav Nikolić, Leader of the SNS; H.E. Abdekader Mesdoua, Ambassador of Algeria to Serbia; H.E. Moustapha Hamdan, Ambassador of Lebanon to Serbia; H.E. Mohammed Khalil Nabhan, Ambassador of Palestine to Serbia; and H.E. Majed Shadoud, Ambassador of Syria to Serbia.

Film director Rodoljub Zelenovic, Italian ambassador to Serbia, H.E. Armando Varicchio, and film director Karlo Macakurati whose film ‘Passion’ opened the Italian film festival that was sponsored by the Embassy of Italy and opened on the 22nd of November at the Yugoslav Film Archive.

At the celebrations of the eight year anniversary of Ninamedia held on 18 November in Belgrade, from left: Martin Kukacka, Board Member of Porr Group Serbia and Montenegro, Dragan Radic, owner of Ninamedia, and Budimir Raičković, Development Division Manager of SEE Porr.

H.E. Wolfram Maas, German Ambassador to Serbia and Jochen Ewert, Defence Attaché of Germany in Belgrade lay wreaths at the monuments of the German and Serbian heroes at the ceremony of the ‘Day of Mourning’ held on 14 November and organised by the German embassy.

50 CorD 77 / December 2010

Corridors

yelloW, PUrPle, BlUe

On 15 November the play ‘Corridors, Yellow, Purple, Blue’ was performed for employees and partners of the pharmaceutical company Actavis. Actavis was also the main partner in the project, and continuously provides support to the activities of the Integration Workshop, and this time contributed by donating a car to transport the blind and visually impaired actors. The workshop was created by the prominent Serbian actor Miki Manojlović, who creates cultural programmes dedicated to the blind, the visually impaired and people with various other disabilities. To date 40 workshops have been run that have been open to the public and free for visitors.

Chivas

tastinG

On 19 November a luxurious villa in Vozdovac hosted an exclusive tasting of Chivas’ 18 Year Old whisky. The special guest of the evening, Mr. Colin Scott, master blender at Chivas who creates the unique flavours of Chivas’ 18 Year Old and 25 Year Old whiskies, gave an interesting presentation about this famous whisky of supreme quality. In addition to enjoying the tasting of the famous Chivas Regal whisky, the drink of modern knights, guests also had the opportunity of participating in a charity auction for three bottles of Chivas 18 YO from the limited series designed by the late Alexander McQueen, a world famous fashion designer.

Colin Scott, master blender at Chivas Regal

Bread of

Beer

Nenad Okanović, (from left) Ivan Ivanović, Nikola Lazetić and Ivan Zeljković

after work

Carlsberg Serbia has celebrated two years since the opening of its ‘Museum of Beer’ which is located within the premises of its brewery. The museum is reminiscent of the history and tradition of Čelarevo where the brewing of beer from barley and hops was established nearly 120 years ago. On this occasion, associates, numerous guests and media representatives were presented with the book entitled "Bread of Beer."

CorD 77 / December 2010 51

TURKISH AIRLINES

SpreadS iTS WingS

leading in reSale Value The Mercedes-Benz E-Class and the this important segment. In terms of absoSLS AMG super-sports car have the low- lute euro figures, Mercedes-Benz also has est value depreciation in their segment, the lowest value depreciation in this vehiand have accordingly been dubbed the cle segment.

The rankings for the ‘2014 residual ‘2014 residual value champions’ by the German internet news magazine ‘Focus value champion’ tables are the result of Online’. Moreover, ACCORDING TO ‘FOCUS calculations by the Saarbrücken-based Mercedes-Benz vehicles have been ONlINE’, THE MERCEDES- market research institute Bähr & Fess proven to have the BeNz e 200 CDI highest value reBlUEEFFICIENCY WIll BE Forecast. This highly respected company tention in a 2010 study by the mo- THE UPPER MEDIUM-ClASS has regularly examtoring magazine CAR WITH THE lOWEST ined the residual val‘Auto Bild’, an inVAlUE DEPRECIATION IN ues of used vehicles on the basis of vardependent assessTHREE YEARS TIME ious data for many ment confirming a years. On behalf of ‘Focus Online’ the inmajor financial advantage.

According to the residual value fore- stitute established which vehicles could cast by ‘Focus Online’, the Mercedes-Benz E be expected to have the highest residual 200 CDI BlueEFFICIENCY will be the upper values if purchased new in October 2010 medium-class car with the lowest value and resold in October 2014.

At the beginning of this year the modepreciation in three years time. As a used car the saloon will still achieve 53.5 per- toring magazine ‘Auto Bild’ had already givcent of its current new value, easily taking en its ‘Value Champion 2010’ award to the the top posi- Mercedes-Benz E, C, S and R-Class for the tion in highest value retention in their segment.

This confirmed the findings of studies that have regularly shown MercedesBenz vehicles to be among those with the highest value retention.

Turkish Airlines, Turkey’s national flag carrier, as one of the fastest growing airline companies of Europe has put its signature to the record with new routes.

With a fleet consisting of 149 aircraft, Turkish Airlines organises flights to total of 167 points including 128 international and 39 domestic routes. The airline is also a member of the Star Alliance network which was established in 1997. Turkish Airlines acts with the awareness and responsibility of being the flag carrier of Turkey, regarding flight safety and service quality as its two indispensable items.

In order to keep alive its brand equity, which provides a serious advantage in terms of competition, Turkish Airlines focuses on the investments that support its brand equity such as offering quality, entertainment systems within their aircraft, comfortable seats, aesthetics and quality of presentation, and investment in their personnel.

TURKISH AIRlINES HOlDS A STRATEGIC POSITION BETWEEN THE eAST AND WeST AROUND THE GlOBE In addition to Europe, Turkish Airlines also has strategic network expansion into Russia, Central Asia, Far Eastern Asia, the Middle East, Africa and North and South America.

Turkish Airlines has been named the ‘Best Airline in Southern Europe’ in a survey conducted by wellknown market research company Skytrax.

appointments

AppOINTMENTS@CMA.RS DONALD MACLAREN, New Chairman of IMlEK

JAN WILLEM vAN DEN BROEK, New Assistant Resident Representative at UNDP

Donald MacLaren, (56), was appointed as the Chairman of IMLEK on the 23 November, 2010.

After training as an accountant with Thompson McLintock in the City of London he joined the Foreign and Commonwealth Office (FCO) in 1978.

As a professional diplomat he specialised in Eastern Europe, serving in the British Embassies in Berlin, Moscow, Kiev and Tbilisi – the latter where he was Her Majesty’s Ambassador from 2004 to 2007. On leaving the FCO in 2008 he formed a partnership called Perfect Pitch, training mainly commercial clients on how to speak persuasively. As a foreign policy consultant, he has also given advice to companies on government relations in Eastern Europe. Mr MacLaren was educated at Oxford and in Scotland, graduating from Edinburgh University in 1977 with a MA Honours degree in Latin, Greek and English. He is married with five children and a granddaughter. He is the 52nd hereditary Chief of the Clan MacLaren, and enjoys playing chess, rugby and the great highland bagpipe.

Mr. Jan Willem van den Broek started in September as the Assistant Resident Representative – Program Development, Support, Monitoring and Evaluation Specialist for UNDP Serbia. He was previously employed as Donor Relations Adviser for UNDP in New York within the Partnership Bureau, Division for Resources Mobilisation. There he supported UNDP senior management in the mobilisation of core resources by maintaining effective working relations with relevant Liaison Offices and the governments of the Netherlands, Germany, Australia, New Zealand and Austria. His first assignment with UNDP was as the Growing Sustainable Business (GSB) Broker for UNDP in Malawi.

Jan Willem van den Broek finished his MBA at INSEAD with distinction in 2004 and prior to that he worked for nine years at Davinci Groep, a small strategy consultancy firm based in Amsterdam.

52 CorD 77 / December 2010

APPOINTMENTS@CMA.RS

Soema organises your space

SOEMA has solved this problem by devising and planning pre-fabricated modular partitions that are assembled on the spot tem, water connection points, electric installation complete with board, a forced aspiration system inside the toilet bowl, a boiler if necessary.

And secondly INSPECTIONABLE PARTITIONS (width: 25cm) which unlike Cavedio do not allow walk-through. The installations can be easily reached by removing the panels placed on the back of boxes fitted with special hooks.

Alex Brooks, Head of UKTrade & Investment (UKTI), British Embassy Belgrade Alex Brooks has been appointed as the new Head of UK Trade & Investment (UKTI) at the British Embassy in Belgrade and as part of his new role is also the second political secretary, covering EU integration and economics, with time being split equally over the two roles. He began at the Embassy on 04 October 2010 and will be in the post for at least three years. Alex joined HM Diplomatic Service and the Government Economic Service in 2008, and previously worked in the Foreign & Commonwealth Office in London on EU economic reform, and prior to that on Latin American economic affairs. Prior to this he spent a year in HSBC Investment Bank’s equity strategy team in Canary Wharf, London between 2006 and 2007. UK Trade & Investment’s role is to assist UK firms and their subsidiaries interested in exporting to, setting up or expanding operations in Serbia.

As of the beginning of November the new General Manager of British American Tobacco for Serbia and Montenegro has been Douglas Lafferty; the position was previously filled by Kristian Kornerup. Prior to taking up this new position, Lafferty, who is British, was Head of Finance for South-East Europe in the SEE headquarters in Bucharest. Lafferty started his BAT career in the company’s global headquarters in London back in 2001. In the course of his work for BAT, Lafferty occupied several positions, including Finance Director for Greece, Malta, Cyprus and Israel. He is married and the father of one child. “Serbia is a very challenging market, particularly now at a time of transition and intensive changes on its path to the European Union. I’m especially pleased that I’ll have an opportunity to get to know your country, and to work together with a talented team in BAT in Serbia,” he says.

Aleksandar Ćosić, New Director at Miele Serbia Before becoming Managing Director of Miele - now responsible for several countries including Croatia, Serbia, Slovenia, Bosnia and Herzegovina, Montenegro - Aleksandar Ćosić was the Sales and Marketing Manager at LG Electronics and the Key Account Manager at Philips Electronics. Born in 1972, he developed his university education in two fields: electro-technical science, followed by management studies. He continued his education at the prestigious Mercuri International in Zagreb and Prague, and Krauthammer International in Prague. Mr. Ćosić develops close professional relationships with business partners and key participants in the market, building networks which not only boosts B2B relations, but which also contribute to many aspects of the economy, business and society as well. He speaks English and German, is married and has one child. His hobbies include water polo, diving, skiing, football and golf, while his interests spread to cars, foreign languages and travel.

Ivan Vujačic, Independent member of the Board of Directors of Eurobank EFG Eurobank EFG has appointed Dr. Ivan Vujačic, Assistant Professor at the Faculty of Economics of the Belgrade University, as an independent member to its Board of Directors.

Professor Ivan Vujačić served as the Ambassador of Serbia to the United States from 2002 to 2009. Since 1989, he has been an Assistant Professor at the Faculty of Economics at Belgrade University, where he also obtained his PhD, MA and BA academic degrees. Professor Vujačić attended courses while on a Fulbright scholarship at the University of Michigan, Ann Arbor, USA (1983-1984). He also gained professional experience by participating in numerous economic seminars, and as a guest lecturer at renowned international institutes and universities – University of California, Berkeley, Columbia, University of Virginia, and Harvard among others. Apart from his diplomatic engagement in the Unites States, Professor Vujačić is also known to the Serbian public as a renowned economist, recognised for economic forecasts during the transition and privatisation process.

CorD 77 / December 2010 53

appointments

Organising space adequately means separating premises in the most rational way. Such separation is traditionally carried out either in brickwork or in plasterboard. Italian manufacturer SOEMA has solved this problem by devising and planning pre-fabricated modular partitions that are assembled on the spot.

The surfaces of the partitions are made of stratified HPL, while the core is made of polystyrene (for thermo-acoustic insulation). Assembly is done using rapid clutch hooks. Stiffeners consist of section bars in anodized aluminium (SOEMA project).

Advantages of this product include: resistance to moisture and mildews; the possibility of including plumbing and installations; rapid, simple installation without any production of unwanted materials; finished surfaces requiring no further treatment; and a wide choice of finishes and colours.

Soema equipped partitions are an innovative system, which place plumbing and electric installations outside the partitions and makes their installation remarkably easy. Two types are available. Firstly CAVEDIO with a service corridor (min.width:50-60cm) between two partitions for performing maintenance work which contains drain pipes and a ventilation sys-

Douglas Lafferty, New General Manager of British American Tobacco

peace oF mind

raiSing €800 million

T

he Board of Directors of Piraeus Bank has an- the Bank, Mr. Michalis Sallas, stated: nounced its intention to proceed with a cap- This is an important step for Piraeus Bank, allowital increase in cash via the offering of preing us to further strengthen our capital base in the emptive rights to existing shareholders, for face of a challenging environment, and putting us in a approximately €800 million, subject to shareholders’ approval at the EGMs. The Bank has received underwriting commitments, subject to customary conditions, in respect of the full amount of the Rights Issue from Barclays Capital, Credit Suisse, Goldman Sachs International and Morgan Stanley, which will act as Joint Global Coordinators (JGCs) for the Rights Issue. The subscription price for the capital increase will be determined prior to the launch of the Rights Issue (expected to be in January 2011).

The proposed capital increase aims to: strengthen the Bank’s capital position in anticipation of a stricter regulatory environment and to fulfil higher investor expectations; enhance the Bank’s position in the context of the macro-economic conditions in Greece; and allow the Bank to take advantage of attractive organic Piraeus bank headoffice, Athens growth opportunities in the region.

The Bank has agreed to a 180-day customary position to benefit from an improvement in economic lock-up provision following the date of completion of conditions - he said. the Rights Issue.

Key trends in the Bank’s performance have not In order to effect the Rights Issue, the Bank will changed significantly compared to first half of 2010. call extraordinary meetings of the ordinary and preCustomer deposits saw positive net inflows (at ferred shareholders of the company (collectively, the the level of €300 million) during the third quarter re‘EGMs’), in order to resolve (i) a capital increase by way flecting greater macroeconomic stability. Loans have of a Rights Issue, and had a small decrease since THE BANK IS SEEKING (ii) a reduction of the 30 June 2010, as such impar value of the ordiSHAREHOlDERS' APPROVAl FOR THE proving the loans to denary shares of the Bank posits ratio by approxiISSUANCE OF CONVERTIBlE BONDS mately three percentage without increasing the FOR UP TO €250 MIllION WITH THE points compared to the number of shares outstanding. end of the first half. ECB WAIVER OF PRE-EMPTION RIGHTS At the same EGMs, funding has remained at the Bank also intends to seek shareholders’ approval the same level as at 30 June 2010. for the issuance of convertible bonds for up to €250 Net interest income grew by a small amount in million with the waiver of pre-emption rights, in orcomparison with the third quarter of the prior year, der to further improve the financial flexibility of the primarily as a result of loan book repricing more than Bank, and to increase the ability to strengthen its capoffsetting a higher cost of funds. Overall, cost develital base as appropriate. The specific terms of any opments are in line with the trends in the first half convertible bond offering will be set by the Board of of 2010 and cost containment is amongst the Bank’s Directors of the Bank prior to the launch of any such top priorities. NPL formation increased over the third offering, which will also be subject to the above menquarter, partly due to seasonal trends, thus the cost tioned lock-up period. of risk is expected to be at a marginally higher level Following approval by the EGMs, the Rights Issue compared with the first half of 2010 at around 140is expected to be launched in January 2011. The spe150bps. The Bank’s coverage ratio has been maincific terms of the Rights Issue will be set by the Board tained at approximately 50%. of Directors of the Bank prior to the its launch.

Capital ratios have remained at the same level as With respect to the Rights Issue, the Chairman of at 30 June 2010.

Mr. Michalis Sallas: ”This is an important step for Piraeus Bank, allowing us to further strengthen our capital base in the face of a challenging environment, and putting us in a position to benefit from an improvement in economic conditions” 54 CorD 77 / December 2010

Delta Generali is the first insurance company in Serbia to have opened its own health facility known as ‘Jedro’ (The Sail), with Svetlana Vukajlović at its helm.

With the assistance of the Medic Call Centre, which is available to clients 24 hours a day/365 days a year, for the first time ever in Serbia patients at Jedro can obtain free medical advice at any given time, schedule a doc-

Nebojsa Divljan, Chairman of the Board and CEO of Delta Generali Insurance and Svetlana Vukajlović, Director of the new facility ‘Jedro’

tor’s appointment and get detailed information about the services and experts available. This institution has an established team of top doctors who specialise in general practice, internal medicine (cardiology, nephrology, gastroenterology, haematology, rheuma-

FOR THE FIRST TIME EVER IN SeRBIA PATIeNTS AT JeDRO CAN OBTAIN FREE MEDICAl ADVICE AT ANY GIVEN TIME, SCHEDUlE A DOCTOR’S APPOINTMENT AND GET DETAIlED INFORMATION ABOUT THE SERVICES AND EXPERTS AVAIlABlE tology, endocrinology, pulmonology), neurology, psychiatry, dermatovenerology, physical medicine and rehabilitation, urology, ENT, gynaecology, paediatrics, laboratory, and complete ultrasound and Doppler diagnostics.

Bath and body products. Rich, indulgent, nourishing.

New store opened in Belgrade, 15 Cika Ljubina Street.

APPOINTMENTS@CMA.RS

Tigar doubles exports The company of Tigar, which includes factories for footwear, rubber-technical products, products of recycled rubber and chemical products, commercial companies in Serbia and abroad, as well as many service companies which represent non-core business, scored an export increase of 56% in the first nine months of this year compared to the same period in 2009. Income from foreign markets makes up more than a half of the company’s total income from achieved sales. The dominant markets for the products from Tigar’s factories are the countries of the European Union, where more than 80% of total exports were placed in this period. In terms of rubber footwear, which is the most prominent exported product, sales were 56% higher in the first three quarters of this year than in the same period last year. The largest markets for high-quality rubber footwear are in the countries of Western

The dominant markets for the products from Tigar’s factories are the countries of the European Union, where more than 80% of total exports were placed in this period Europe, where sales grew by 59% in this period. The rubber-technical goods of the ‘Tigar Technical Rubber’ factory have the best placement in the region and in the countries of Western Europe, whereas products made of recycled rubber were delivered primarily to buyers in Scandinavia.

The company has referential and renowned buyers, especially for its rubber footwear products, such as French companies Decathlon and AJS, Italian Martinel and the Danish company Illse Jacobsen. Due to the fulfilment of demands from existing and new buyers, more than one hundred new products - from new models of protection boots to the new collection of fashion boots ‘Maniera’have been developed since the beginning of this year. The company tends to win new markets, such as those of the Russian federation and Australia, via the certification of existing ones and the development of new products.

Jürg Staudenmann, New Deputy Resident Representative of UNDP Jürg Staudenmann has been appointed as the New Deputy Resident Representative (DRR) of UNDP. He holds a Masters degree in Environmental Sciences and Engineering (1994), followed by a Master of Advanced Studies on Development Countries from the Swiss Federal Institute of Technology Zürich (2003). After his initial career in Academia and Applied Science in the area of (waste-) water recycling and natural resources management, Mr. Staudenmann joined UNDP Middle East as Junior Programme Officer (Environment) in 2001, followed by a headquarters assignment as Evaluation Specialist (New York; 2003). Prior to his appointment as DRR at UNDP Serbia in September this year, he served as Policy Advisor for Water Governance in UNDP’s Regional Centre Bratislava, Slovakia. There, his responsibilities included providing policy and technical advice to UNDP clients and country offices, the development and implementation of multi-country projects in Eastern Europe and Central Asia, and the active facilitation of ‘Community of Practitioners’ in the Water Sector. He is married and has a daughter.

Oszkar Nikowitz, New Ambassador of Hungary to Serbia H.E. Oszkar Nikowitz was born in 1949. His previous postings and work experience include the Government Office for Hungarian Minorities Abroad, in Hungary as Head of Department for former Yugoslavia; Ministry of Foreign Affairs, Hungary as Senior Adviser, Department for SE Europe, Embassy Counsellor (Perm. Rep. of Hungary at NATO), Brussels; and European Commission, DG Enlargement: National Expert on Western Balkans. He has also been a dubbing editor, translator, interpreter, teacher, and secondary school headmaster. Mr Nikowitz’s education includes the University of Sciences, Szeged, Faculty of Arts, majoring in Classical Languages and Applied Linguistics. He also Speaks Serbian. He is married and has three adult children. His hobbies include chess, tennis, kayaking, and horse riding.

Panagiotis Divriotis, New Branch Banking Division Director at Piraeus Bank In late October, the Piraeus Bank Executive Board appointed Panagiotis Divriotis to the position of Branch Banking Division Director. Mr. Divriotis is now responsible for the Branch Network, the Branch Network Operations Department, SME Department, Bank Assurance and the Call Centre Department. Mr. Divriotis has been employed at the Piraeus Bank Group since 2002. Within the framework of the ’regional talent pool’, he was expatriated to Piraeus Bank Belgrade in 2006 as the Assistant Manager of the Credit Cards and Consumer Loans Department and was promoted to the position of Department Manager in 2007 and Assistant Director of the Retail Division in 2009.

CorD 77 / December 2010 55

interview NICK BITEL, CHIEF EXECUTIVE OF THE LONDON MARATHON

A phILANThROpIC ROUTE In my experience not many countries in the world have the same tradition of personal charity giving through personal challenges

exclusive By: Philomena O’BRIEN

T

The race is currently sponsored by Virgin Money (after a five year, £17m deal was signed on 16 May 2008), and so is known as the Virgin London Marathon. The original sponsors were Gillette who sponsored the event from 1981 to 1983, and other sponsors have included Mars (19841988), ADT (1989-1992), NutraSweet (1993-1995), and Flora (1996-2009). The event is also used by a number of other companies and organisations for marketing and brand association purposes such as Adidas, Lucozade Sport, and Holiday Inn. With preparations underway for the 2011 event, CorD speaks with the Chief Executive of the London Marathon, Nick Bitel, about the original goals of the race, what makes it so successful and how Belgrade can potentially head down a similar path.

he thirty-first London Marathon will take place on Sunday, 17 April 2011. Known as one of the biggest running events in the world, it offers generous prize money and is a ‘who’s who’ of elite athletes from across the globe. It is one of the five top world marathons that make up the World Marathon Majors competition which has a one million dollar prize purse, and has been held each spring in London since 1981. n The London Marathon is far more than just a race; it As a fundraising event, there is no race in the world that is now one of the largest humanitarian campaigns in Engcomes close to the London land. How did you come up Marathon. In the words of with the idea of including a i know dejan nikolić, the founder and Virgin’s Richard Branson Director of the Belgrade Marathon well, humanitarian cause within it is the “the single biggest a sporting event? fundraising day on the plan- and he and the race are widely respected by r When the race was foundet”, and after a new charity race directors around the world. We are also ed by Olympic medallists programme was commenced aware of all the difficulties he is being faced Chris Brasher and John Disin 1993, 78% of runners ley they established six purwith in order to keep Belgrade Marathon poses: To improve the overall now raise money for charifunctioning at the highest level ty as part of their reason for standard and status of British running. Subsequent to the marathon running by provid2010 race over £500 million has been raised for charity since ing a fast course and strong international competition; to the beginning of the event and it holds the Guinness world show mankind that, on occasions the ‘Family of Man’ can be record as the largest annual fund raising event in the world. In united; to raise money for the provision of recreational facili2011 the official charity of the London Marathon is Oxfam. ties in London; to help London tourism; to prove that when

56 CorD 77 / December 2010

it comes to organising major events ‘Britain is best’; and to have fun and provide happiness and a sense of achievement in a troubled world.

Therefore the principles of using a marathon to promote wider social purposes were at the core of the event from the start. In 1993 we started a new charity programme and now 78% of our runners raise money for charity as part of their reason for running.

tion of personal charity giving through personal challenges.

I do not know whether this will work in Serbia but the experience of other countries is that they can only engender change in this area by the use of iconic figures within the local market.

■

n To what extent and in what capacity do City of London officials support the London Marathon? r London has a diverse governance system with the result that we have to deal with seven different local authorities, three different police forces and many different transport authorities. We are delighted with the support that we receive from all of these organisations. The local authority support is largely limited to giving permissions rather than delivery of services. n How many in runners took part in the 2010 London Marathon, how much money has been raised for charity, and how many people work within the organisation of the London Marathon? r In 2010 we had 36,549 finishers. Between them the runners raised £50.6 million for their own charitable good causes. We have 24 full-time staff. n Do you have any knowledge of the Belgrade Marathon? r I know Dejan Nikolić, the founder and Director of the Belgrade Marathon well, and he and the race are widely respected by race directors around the world. We are also aware of all the difficulties he is being faced with in order to keep Belgrade Marathon functioning at the highest level.

ExTRAORDINARy The London Marathon is not without its quirky side. The bulk of runners in the marathon are ‘club’ and ‘fun’ runners - the latter sometimes in ludicrous fancy dress - and they help draw crowds of half a million onto the streets.

In 2002, Lloyd Scott completed the marathon wearing a deep sea diving suit that weighed a total of 110lb and each shoe weighed 11kg; he also set a world record for the slowest ever marathon time. On 19 April 2003, former boxer Michael Watson, who had been told he would never be able to walk again after a fight with Chris Eubank, made headlines by finishing the marathon in six days, becoming a national hero in England.

In 1993 we started a new charity programme and now 78% of our runners raise money for charity as part of their reason for running n What would your advice be to the organisers of the Belgrade Marathon in terms of how to increase the number of participants and the number of charity runners? r It is difficult to take a concept that works in one market and apply it in the same way in other markets. In my experience not many countries in the world have the same tradi-

CorD proudly announces the 6th Charity Masters 2011 to be held as the part of the 24th Belgrade Marathon in April CorD 77 / December 2010 57

UNESCO assists Kraljevo

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irector-General of UNESCO, Irina Bokova, expressed the willingness of the organisation to assist with the repairing of damage done to cultural objects after the recent earthquake in Kraljevo. The Serbian Minister of Culture, Nebojša Bradić, visited Kraljevo after the earthquake and approached UNESCO with the proposition of supporting the repairs of endangered cultural objects. While visiting the Žiča monastery, Bradić announced that, after the team of experts evaluates the level of damage caused by the earthquake, the Ministry The Serbian Minister of Culture, Nebojša Bradić, visited Kraljevo after the earthquake and approached UNESCO with the proposition of supporting the repairs of endangered cultural objects

of Culture will provide additional funds for remediation and removal of the damage.

Some cultural institutions in Kraljevo have also sent individual appeals requesting assistance from anyone who is able to help mend the damage.

Free Zone Festival

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he documentary film ‘The World according to Ion B’ by Alexander Nanau, a story about a homeless person in Bucharest who became an internationally acknowledged

pop-artist, won the most votes from the audience at the sixth ‘Free Zone’ film festival held in Belgrade between the 5th and 10th This year,the popular Belgrade festival presented 26 documentary and feature films from all over the world

of November. This year, the popular Belgrade festival presented 26 documentaries and feature films from all over the world.

The documentary ‘The World according to Ion B’ won an award in the form of the buyingof television rights. In terms of audience votes the second best film was the Spanish film ‘Me Too’ (Antonio Naharro, Alvaro Pastor) about 34-year old Daniel, the first European with Down Syndrome to graduate from university, and third place belonged to the film ‘The Kinshasa Symphony’ (Martin Baer, Claus Wischmann) about a symphony orchestra in Congo which manages to operate under incredible circumstances of poverty and political instability.

In fourth place was the domestic film ‘Village Without Women’ by Srđan Šarenac which is about three bachelor brothers in a village near Novi Pazar, and in fifth place was the film ‘Dear’ by Lee Daniels about the troubles of an illiterate teenage-girl in New York, Harlem.

The sixth edition of the ‘Free Zone’ festival, organised by the ‘Rex’ cultural centre, was held in the hall of the Belgrade Cultural Centre and in the Yugoslav Film Archive, and had almost 10,000 visitors.

Homage to Ivan Radović

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n exhibition of Ivan Radović (1894-1973), a Serbian painter who marked the period in the development of Serbian visual arts in the 20th century, is being held in the Belgrade gallery ‘Chaos’ until December 17th. The exhibition encompasses over 230 works, alongside 320 drawings which are being shown on the gallery’s monitor, and can be found in the artist’s sketchbooks and notebooks.

These works have never been exhibited before, and are part of Olga Radović’s legacy, which is kept in the SANU. Ivan Radović, one of Serbia’s most significant modernist artists, was born in Vršac in 1894 and studied painting at the Budapest Academy. He also studied painting in various The exhibition encompasses over 230 works, alongside 320 drawings which are being shown on the gallery’s monitor, and can be found in the artist’s sketchbooks and notebooks

European centres including Prague, Paris, Munich, Venice and Vienna, and for a while, he was a professor at the Arts School in Belgrade. He has been a laureate of numerous significant awards and a corresponding member of the Serbian Academy of Sciences and Arts.

Expert guidance through this exhibition is being offered each Thursday until December 17th, where visitors are escorted by art historian, Vladana Spaić.

Green Screen Fest

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he first international festival popular side programme. As part of the ‘Green Square’ project in the Sava of ecological films, the ‘Green Centre, visitors could become acquainted with ecological projects, and Screen Fest’ was held in Bel- over all three days of the festival, a ‘Climate, Culture, Changes’ programme was organised in cooperation with the Goethe Ingrade in Over all three days of the stitute of Belgrade. Within this programme 11 short the middle festival, a ‘Climate, Culture, and full-evening international films were shown. of November.

Changes’ programme was Part of the festival featured the film ‘Bay’, thisDocumentary films organised in cooperation year’s laureate of the Academy Award, then the from all over the world with an with the Goethe Institute awarded documentary of Irena Salina ‘The Flow’ ecological theme, as well as amateur and of Belgrade (which deals with the problem of the lack of drinkshort films which were sent in as part of the festival’s competition were presented to the audience. All the films featured dealt ing water) and the Austrian documentary ‘We Feed the World’ by Erwin with the theme of environmental protection. The festival also offered a Wagenhofer (which focuses on the world problem of food globalisation).

58 CorD 77 / December 2010

Serbian Culture in Egypt

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he event ‘Days of Serbian Culture in Egypt’, music for which was written by Voki Kostić which was held in Cairo during Novem- and the libretto was based on the screenplay ber, was opened with the exhibition ‘Tanjug: for Dušan Kovačević’s movie of the same title.

A Look into History’s Apple of the Eye’, which The Cairo audience also had the chance to fafeatured over 60 photographs from the ar- miliarise themselves with contemporary Serchives of Serbia’s oldest news agency Tanjug. bian cinematography - films such as ‘Tito and Within the event, I’, ‘Trap ’and ‘Love Within the event the ballet held on November and Other Crimes’ ensemble of the Belgrade National 14th and 15th in the were screened. The Cairo Opera House Theatre performed the play ‘Who is Serbian contempoSinging Over There?’ and at the Alexanrary literary scene dria Festival, the ballet ensemble of the Bel- is represented in Cairo by the writers Vida grade National Theatre performed the play Ognjenović, Mihajlo Pantić, Vladislav Bajac ‘Who is Singing Over There?’; the ballet the and Laslo Blašković.

Slavimir Stojanović exhibition

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n exhibition of Slavimir Stojanović entitled ‘STOP - Instructions, Directions and Other Cases’, opened in the middle of November at the New Gallery in Belgrade at Andrićev Venac 6. The works on display deal with the influences of mass

The exhibition features over 30 pieces made during the 25 years of the creator’s employment within the field of commercial visual communications

communication on the individual and his understanding of life in the contemporary world.

The exhibition is open until December 18th, and features over 30 pieces made during the 25 years of the creator’s employment within the field of commercial visual communications, and the special perspective of these works from the standpoint of the contracting parties. Slavimir Stojanović, one of Belgrade’s most significant designers of the younger generation (he is 41), has won such prestigious European awards such as: ‘Epica’, ‘Cresta’, ‘Clio’, ‘Eurobest’, and ‘Golden Drum’ for his posters. Stojanović has also been included in the Taschen Books publication ‘Contemporary Graphic Design’, as well as in the American publication ‘30 New Masters of Poster Design’.

Vancouver’s Festival of Serbian Film

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ith the screening of Srđan Koljević’s film ‘Woman with the Broken Nose’ the fourth Festival of Serbian Film was opened in November in Vancouver.

Over the four days of the festival, held in the cult Vancouver cinema ‘Hollywood’, contemporary Serbian films were screened.

The four feature and two documentary films presented included ‘Hair Cutting’ by Stevan Filipović, ‘The Blue Train’ by Janko Baljak, ‘Besa’ by Srđan Karanović and the documentaries ‘Six Hours Earlier’ by Dragana Kanjevac and ‘The Story of Bijelo Dugme’ by Igor Stoimenov.

The festival was supported by the Ministry for the Diaspora, and media sponsors included the immigrants’ monthly publication with highest circulation ‘Umbrella’ which has Canadian media including two leading daily newspapers in British Columbia the ‘Vancouver Sun’ and ‘Province’ gave a significant amount of publicity to the festival

been published for almost a decade and a half in Vancouver, a Serbian television station in Vancouver, and RTV B92. Canadian media including two leading daily newspapers in British Columbia the ‘Vancouver Sun’ and ‘Province’ gave a significant amount of publicity to the festival.

Atelier 212 Awards

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he ‘Day of the Atelier 212’ was celebrated on November 12th with the presentation of annual awards to the best artists of this theatre. Gordan Kičić, for his role in the muSpecial awards were given to the dramatic artist Dara Džokić for 30 years of loyalty to Atelier 212, and Svetislav Goncić for ten years of continuous work in this theatre

sical ‘Hair’, and Branka Šelić for her part in the play ‘Waiting Room’ were voted as the best actors in the previous year, and the award for best direction was given to Boris Liješević for the play ‘Waiting Room’.

Special awards were given to the dramatic artist Dara Džokić for 30 years of loyalty to Atelier 212, and Svetislav Goncić for ten years of continuous work in this theatre.

This year was the first time that the day of November 12th was celebrated as the ‘Day of the Atelier’. This date was chosen because on November 12th in 1956, Goethe’s play ‘Faustus’, directed by Mira Trailović was performed for the first time, and also a new Belgrade theatre officially started running.

The foundation of Atelier 212 was initiated by director Radoš Novaković, along with a group of Belgrade intellectuals, actors, directors, writers and musicians who thought that Belgrade needed a new theatre to feature modern avant-garde drama.

CorD 77 / December 2010 59

ANNUAL EVENTS The Author’s Film Festival 30 November - 07 December The presentation of a competitive selection of author’s films which has been run for the last 16 years.

This year’s festival will be held in the spirit of the slogan ’Freedom Costs Dearly’.

In the Belgrade Cultural Centre Movie Theatre, the Sava Centre (opening), and the Cultural Centre GRAD

Tickets available at the Belgrade Cultural Centre www.faf.rs

POP, ROCK, JAZZ Sergej ćetkoviĆ Belgrade Arena 10 December, 20.30 Popular pop singer for the younger generation.

Tickets available at Belgrade Arena, Bulevar Arsenija Čarnojevica 58 www.arenabeograd.com Phone - 0900 11 00 11, 011 307 77 86

The Belgrade Dixieland Orchestra Traditional New Year’s Concert Restaurant Sava 18 December, 20.00 The Belgrade Dixieland Orchestra was founded in 2001 and as the only orchestra of its type in the country it is directly responsible for Dixieland’s triumphant revival from the foundations built by decades of jazz men from the Balkans.

Massimo Savić Sava Centre, Great Hall 21 December, 20.30

lar actor and also a musician with several CDs. He performs unique music based on various Balkan ethno sounds and traditional music from Istra (the Croatian peninsula).

Tickets available from BILET Servis, Trg Republike 5, 011 30 333 11 and at the Sava Centre, Milentija Popovića 9 Phone- 011 220 60 60 www.savacentar.net

CLASSICAL MUSIC Carmina Burana Sava Centre, Great Hall 02 December, 20.00 A musical-stage spectacle involving the performance of soloists, a choir, orchestra and the ballet of the Serbian National Theatre in Novi Sad Conductor: Željko Milanović Choir director and choreographer: Sonja Vukićević

Belgrade Philharmonic Orchestra Concerts All concerts are in Kolarac Hall 03 December at 20.00 Conductor: Robin O‘Neill Soloist: Boris Berezovsky, piano Programme: Khachaturian: Spartacus, suite no. 2 - Adagio of Spartacus and Phrygia B. Khachaturian: Piano concerto S. Rachmaninov: Symphony no. 3 op. 44 A minor 10 December at 20.00 Conductor: Emin Güven Yaslicam Soloist: Priya Mitchell, violin

Vlatko Stefanovski & Stefan Milenković

Sava Centre, Great Hall, 22 December, 20.00

This Croatian musician and singer will hold his traditional December concert in Belgrade.

Savic, born in 1962, started his musical career in Zagreb in 1983 as the lead singer of pop group Dorian Grey.

Dragoljub Đuričić

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24 December at 20.00 Conductor: Stephen Gunzenhauser Soloist: Corky Siegel, harmonica Programme: G. Gabrieli: Canzon XVI for Brass A. Marquez: Conga del Fuego Nuevo P. I. Tchaikovsky: Nutcracker, Suite no. 1, op. 71A W. Russo: Street Music Concerts in Kolarac Concert Hall

Humanitarian Concert 07 December, 20.00 For the children of Orahovac, Gorazde and Velika Hoča Participants: Vasil Hadzimanov, Vasilisa, Merima Njegomir, Jelena Tomasevic, Ljuljana Popovic,

Katarina Kacunkovic The Mambo Stars 11 December, 20.00 Tribute to Mirko Šouc

In Honour of Brahms Kolarac Hall 21 December 2010, 20.00 Jovan Kolundžija, violin Patrik Jablonski, piano (Sweden) Programme: all of Brahms’s Sonatas for violin and piano

Tickets available at Kolarac Foundation Hall Studentski Trg 5 , Phone - 011 263 05 50; www.kolarac.rs Concerts organised by Jugokoncert

Rade Šerbedžija

One of the best Yugoslav actors, Rade Šerbedžija (born in 1946) will have his traditional December concert in Belgrade. Šerbedžija is a significant and very popu-

17 December at 20.00 Conductor: Alexander Rahbari Soloist: Elisabeth Leonskaya, piano Programme: Popovic: Einstein’s Dreams (commission) F. Schubert (arr. F. Liszt): Wanderer Fantasy D. 760 op. 15 B. Smetana: My Fatherland - excerpts

This is the next project in the series of great concert achievements of the distinguished Serbian violinist Jovan Kolundžija.

He will share the stage with the famous Swedish pianist Patrik Jablonski, who is a graduate of the distinguished school of the Royal College of Music in London, and who has performed in prestigious music halls around the world.

Sava Centre, Great Hall 29 December, 20.30 The Belgrade musician Dragoljub Djuricic belongs to the small number of drummers who have succeeded in making the drum a leading solo instrument.

Gala New Year’s concert Sava Centre, Great Hall 30 December, 20.00

Programme: W. A. Mozart: The Abduction from the Seraglio, overture U. C. Erkin: Köcekce F. Say: Violin concerto ‘1001 Nights in the Harem’

Serbian Music in the World Currents The concert of these two great artists will create a unique event. The concert will present the unique combination of guitars and violins and the collaboration of two prominent artists who are sure to impress with their technique and charm.

06 December, 20.00 City Hall Miloš Veljković, piano Borislav Čičovački, oboe Julija Hartig, violin

Composer Rajko Maksimović

Nobuyuki Tsujii

The Saint Prince Lazarus Passion 09 December Kolarac Hall

15 December, 20.00 Programme: Chopin, Schuman, List, Musorgsky Nobuyuki Tsujii (born September 13, 1988) is a Japanese pianist and composer. He was born blind but was gifted with a talent for music. At the age of two, he began to play Jingle Bells on a toy piano, and began his formal study of piano at the age of four. Tsujii shared the First Prize at the Thirteenth Van Cliburn International Piano Competition in 2009 in a tie with co-winner Haochen Zhang of China.

Featuring a narrator, four soloists, two choirs and an orchestra Gojko Šantic, actor Mihajlo Šljivić, bass Nataša Jović, mezzo-soprano Vladimir Andrić, baritone Dragoslav-Pavle Aksentijević, chanteur The RTS Choir and Symphony Orchestra The Academic Choir ‘Obilić’ of the ‘Branko Krsmanović’ Society, Conductor: Bojan Suđić

‘KOLO’ Originated from traditional dance, music and costumes and the style of the dances and main choreographic features have been preserved.

Academic Choir Collegium Musicum 12 December, 20.00 Kolarac Hall

Tickets available from BILET Servis, Trg Republike 5, Phone - 011 30 333 11; and at the Sava Centre, Milentija Popovica 9, www.savacentar.net Phone - 011 220 60 60

Dedications – retrospectives Academic Choir Collegium Musicum Belgrade Stringsgo ‘Dušan Skovran’ Dirigent: Darinka Matić-Marović

ART Jovan Bijelić, exhibition of paintings

Free entry to all concerts in December organised by Jugokoncert Free tickets at the Kolarac Hall Box Office.

From the collection of the Belgrade National Museum Until 13 December Gallery RTS, Takovska 10

ETHNO The Academic Cultural and Artistic Society ‘LOLA’ Sava Centre, Great Hall 17 December, 20.00 The Academic Cultural and Artistic Society ‘Lola’ has dedicated itself for over six decades to the nurturing and affirmation of the traditional educational, cultural and artistic values of Serbia and their presentation both at home and abroad.

National ensemble ‘KOLO’ -‘The Balkan Odyssey’ Sava Centre, Great Hall 24 December, 20.00

Bjelic (1886-1964), was one of the most important Yugoslav artists between the wars. He studied in Sarajevo, Cracow, Paris and Prague and since 1919 he has lived in Belgrade where he has been an art director, head of the painting workshop of the National Theatre and an art professor. He was also one of the founders of the significant art groups in the second half of the twentieth century in Serbia and has been a member of the Serbian Academy of Arts and Sciences since 1963.

FILM PREMIERES Due Date Starts: 02 December Director: Todd Phillips

Moscow City Ballet Sava Centre, Great Hall, 07 December and 08 December Swan Lake, Peter Ilyich Tchaikovsky - 07 December, 20.00 The Nutcracker, Peter Ilyich Tchaikovsky - 08 December, 20.00 The Moscow City Ballet was founded in 1988 by distinguished Russian choreographer Victor Smirnov-Golovanov. The company is renowned for the perfection of its corps de ballet in the best traditions of the Russian school of classical ballet. It is a private enterprise and is not subsidised by the government and its success outside of Russia makes it one of the country’s most extensively touring ballet companies. Since 1988 Moscow City Ballet has appeared in Belgium, Cyprus, Egypt, Holland, Hong Kong, Ireland, Israel, Japan, Estonia, the Peoples Republic of China, the Philippines, the Republic Korea, R.O.C. Taiwan, Singapore, the United Kingdom, and in Russia.

Stars: Robert Downey Jr., Zach Galifianakis and Michelle Monaghan Comedy

Paranormal Activity 2 Starts: 02 December Director: Todd Williams Stars: Katie Featherston, Micah Sloat and Molly Ephraim Horror

The Chronicles of Narnia: The Voyage of the Dawn Treader 3D Starts: 09 December Director: Michael Apted Stars: Ben Barnes, Skandar Keynes and Georgie Henley Directed by Michael Epted Adventure/Fantasy

Megamind Starts: 16 December Director: Tom McGrath Stars: Will Farrell, Jonah Hill and Brad Pitt Animated Comedy

The Tourist Starts: 30 December Director: Florian Henckel von Donnersmarck Stars: Johnny Depp, Angelina Jolie and Paul Bettany Drama/ Thriller

Gulliver’s Travels 3D Starts: 30 December Director: Rob Letterman Stars: Jack Black, Emily Blunt and Jason Segel Adventure/ Fantasy

Life As We Know It Starts: 23 December Director: Greg Berlanti Stars: Katherine Heigl, Josh Duhamel and Josh Lucas Romantic Comedy

Little Fockers Starts: 23 December Director: Paul Weitz Stars: Ben Stiller, Teri Polo and Robert De Niro Comedy CorD 77 / December 2010 61

interview TONI LIVERSAGE, AUTHORESS AND TRANSLATOR

WITNESS TO ChANGE

I hope that the cultural cooperation between Denmark and Serbia will intensify in the years to come with mutual translation and visits etc., because - among other things culture is a very good way to get to know each other better

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oni Liversage, Danish authoress and translator, is a regular guest in Belgrade and a good judge of the situation in the territory of former Yugoslavia.

She translated the novel ‘Na Drini Ćuprija’ (‘The Bridge on the Drina’) in the same year that piece was awarded the Nobel Prize for Literature. She is also the author of

62 CorD 77 / December 2010

16 thematically varied books, one of them being ‘Yugoslav Tragedy’. With this book she tried to break the stereotypical interpretations of the wars in the territory of former Yugoslavia and to explain the way in which political dignitaries used the nationalistic feelings of citizens. She published the book while those conflicts were still occurring, and she was an active participant in the peace movements during those years. This time, she was in Belgrade during the Belgrade Book Fair, where she attended the promotion of her book ‘The Great Goddess’ published by Archipelago. n You deal with the position of women from pre-historic times until now in your book ‘The Great Goddess’. How do you explain the change you talk about - from a woman as a positive symbol to woman as a dangerous and bad symbol? r The period I describe in my book ‘The Big Goddess’ is an extremely long period, from 25,000 years before Christ.

The first figurine of a human being is namely 25,000 years

ers, who at the same time were Yugoslaviold - it is Venus from Willendorf - and what an writers. But since the disappearance of struck me when I began to work with this Yugoslavia you can’t of course any longer theme was that during this long period 90 talk of Yugoslavian literature. percent of the figurines were female.

How to explain that? I am convinced that it has something to do with the role n You have translated the works of which women played in these early preAndrić, but also of other authors from historic societies. In the earliest hunter and the territory of former Yugoslavia, as gatherer societies, women were gathering selected by publishers. Would that seroots and plants, while the men were huntlection have been any different if it had ing, and later the women found out how to been up to you? cultivate the soil with a stick together with r When Ivo Andrić received the Nobel other women. As it was the women’s way Prize in 1961 for his novel ‘The Bridge of providing the food that was the most seon the Drina’ with my translation, the cure compared to the hunting, it gave them publishing houses became interested in an important role in these societies. And publishing other Yugoslavian writers, and being those who gave birth to the children throughout the 1960s several novels were combined with their connection to the soil published by Miodrag Bulatović, Dobrica - made them a symbol of Ćosić, Grozdana Olujić, fertility, which is obviMihailo Lalić and others, “Now the situation is quite different, ous when you look at the some with my translabecause today the publishing houses many figurines from this tion. But it was always long period, and it is from the choice of the publishare not interested in publishing books these female figurines ing houses, not mine. that the female goddesses translated from so-called minor languages Now the situation gradually evolved. is quite different, belike Serbian, Romanian, Albanian etc” But then things began cause today the publishto change; the tribes became more settled, and men began to play a more important role in cultivating the soil with the plough; it is always men who plough. At the same time land became a scarce resource, which could be owned and inherited. And as the male wanted to be sure that the land and the cattle were inherited by his sons, the control over the women’s sexuality became important.

All this meant that at the religious level the female goddesses were slowly suppressed by the male gods, who little by little assumed a dominating role. The patriarchy became at this historical time increasingly consolidated, which also meant the development of a negative view of women, with Eve leading Adam into temptation representing the negative pole, while the Virgin Mary represented the positive, but passive female figure. n You studied Yugoslav literature, which no longer exists.

In your opinion, was the term Yugoslav literature ‘artificial’, or is it correct to make the claim that today Yugoslav literature does not exist? r I don’t think that this term was artificial at the time. Yugoslavia existed, and at the same time Yugoslavian literature existed consisting of Serbian, Croatian, Bosnian etc. literature.

In 1969 an anthology called Yugoslavian Short Stories was published in Denmark. I chose the stories and translated them for this compilation, and in the introduction, introduced the Serbian, Croatian, Bosnian, Macedonian and Slovenian writCorD 77 / December 2010 63

ing houses are not interested in publishing books translated from so-called minor languages like Serbian, Romanian, Albanian etc., and it is very difficult to make them interested even in very good novels. But I am doing my best. I have just translated an excerpt from ‘Adulterers’

by Vida Ognjenović to be published in a Danish literary magazine, and I hope that in the long run both this very good book and others like Vladimir Pištalo’s ‘Millennium in Belgrade’, and Dragan Velikić’s ‘The Russian Window’ sooner or later find a Danish publisher.

Beograd. So Belgrade is also the town of my youth, and I enjoy coming back very much because of the warmth of the people and the whole atmosphere.

n You regularly came here during the 1990s, participated in the peace movement, and wrote about the causes of Yugoslav tragedy. You followed all the turbulent changes the country went through. How do you perceive the situation in Serbia these days? r The situation is of course very different from the period in the 1990s, when I started to visit Belgrade every year and also came down in December n You have written about your 1996, when those enormous relationship with Yugoslavia, daily demonstrations were takSerbia in particular. What ing place, which made a big immotivated you to dedicate so pression on me. I was also here much time and energy to this again a few days after the 5th of region - does it attract you as October 2000, where one of the something that is near, or as big differences I noticed something that is far, dif“The activities of right wing groups such was the change in the telficult to understand, and which before had exotic? as those who tried to prevent the ‘Pride evision, been so full of hatred and r Many years ago when Parade’ are very worrying, and it was sad propaganda.

I was still in high school, things are changI saw an advertisement in that so many policemen were needed to ing.And I was very glad when a newspaper for a youth defend it. Conversely it is very positive I heard that people from festival in Bucharest, Rono longer need mania. I was very well that the authorities were ready to do it” Serbia a visa when they want aware that it was a comto visit the EU after all munist manifestation and these years of isolation, and also the latest development I have never been a communist, but on the other hand it concerning Serbia’s possibility of joining the EU is a very was very cheap, and it would then be a possibility to meet positive development. young people from many different countries, so I decided to On the other hand the activities of right wing groups participate. At that time - I was 17 - I had never been outside such as those who tried to prevent the Pride Parade are Scandinavia, and the whole Balkan atmosphere made a very very worrying, and it was sad that so many policemen big impression on me; the music, the people, the culture, were needed to defend it. Conversely it is very positive the warmth. that the authorities were ready to do it.

So after finishing high school I wanted very much to go Anyhow - when I look at my own ongoing connection back again, which was of course impossible because of the with Serbia, I do hope that the cultural cooperation between iron curtain, but then I was given the opportunity to go to Denmark and Serbia will Yugoslavia instead, and that is where it all started.

“Belgrade is also the town of my youth, intensify in the years to come with mutual transSo from 1957 to 1959 I and I enjoy coming back very much lation and visits etc., behad a scholarship to study Serbo-Croatian at the uni- because of the warmth of the people and cause - among other things - culture is a very good versity in Belgrade and the whole atmosphere” way to get to know each stayed for two years in other better.

■ Studentski Grad in Novi 64 CorD 77 / December 2010

expats

& culture

‘EXPAT’ CLUBS Internations

www.internations.org InterNations is an expatriate community for people living and working abroad as well as all ‘global minds’. On the InterNations website you will find a local guide and useful forums.

Each month in Belgrade there is a social/ networking event. Membership is invitationonly - jump on the website for your invitation. Internations events are held on the last Thursday of each month.

For more information contact Katica Steubl on 063 429 232 or katicasteubl@yahoo.com

Belgrade Foreign Visitors Club

www.belgradefvc.com Belgrade Foreign Visitors Club is a social club and information resource for foreign residents and visitors to Belgrade. Regular social meetups are held the first Friday of each month. The

group is about connecting like-minded people and having a good time. Social events are updated on the website. Next meet-up is Friday 03 December. For details contact Jules on 064 398 8025 juleskovacevic@yahoo.co.uk or Philomena on 062 767 323 philomena@belgradefvc.com

International Women’s Club, Belgrade

www.iwcbelgrade.wordpress.com The IWC of Belgrade welcomes and assists newcomers to Serbia; promotes knowledge and understanding of Serbia; fosters friendship among members and raises funds for community and humanitarian projects.

New members are welcome. The next ‘newcomers coffee morning’ will be on Tuesday, 07 December. For further information regarding new memberships or coffee mornings, contact

Laetitia Gardt on 063 249 460 or laetitia179@gmail.com + The famous IWC Charity Bazaar will be held on Saturday, 04 December at Belgrade Sajam, Hall 3. For more information contact Christine Skrutkowska, Bazaar Coordinator, on 061 318 3765.

YDA Serbia - Young Diplomats Association of Serbia

Available exclusively for Diplomatic and Embassy staff (for non Diplomatic and Embassy staff we offer ‘Friends of The YDA’). Bringing you: diplomatic nights, networking nights, bar nights, tours through Serbia (single day and full weekend trips), VIP entry to events, concerts etc Website coming soon...

Contact: Vik on 064 397 0070 or VikJensenyda@gmail.com

Foreign cultural institutions in Belgrade British Council CELEBRATION: 70th anniversary 14 December

As a way of marking the 70th anniversary of its constant presence in Serbia, the British Council is organising a celebratory event that will take place on December 14th at COMUNALE. This event will be dedicated to all the people the British Council has collaborated with over the last seven decades, who have helped the numerous projects and activities that have brought Serbia and the UK closer together. As Andrew Glass, Director of the British Council Serbia mentioned in his interview published in CorD earlier this year “People are essential to the work of the British Council”. This event will be the premiere of the short film featuring a couple of British Council collaborators over the years and their professional and private reflections of the British Council and UK in general. www.britishcouncil.rs

Italian Institute of Culture EXHIBITION: Puccini and Lucca - images and documents from the maestro’s life

09 November - 20 December This exhibition clearly shows the strong relationship that existed between Giacomo Puccini and Lucca, his hometown. Visitors to the display will be able to review his relationship with the city as a confirmation of the strong attachment to his homeland. The exhibition has been prepared by the Giacomo Puccini Foundation in cooperation with the Municipality of Lucca, the Secretariat for Culture and Youth, and with the support of the Ministry of Foreign Affairs of Italy.

Entry to the exhibition is free.

Italian Institute of Culture: Kneza Miloša 56, Ph: 362 9356, iicbelgrado@esteri.it, www.iicbelgrado.esteri.it

Instituto Cervantes SCIENCE FESTIVAL: ‘Face to Face with Science’

03 - 05 December This festival includes 25 interactive exhibitions, small labo-

ratories, exhibits, a number of fun workshops for children, 27 inspirational lectures on life and everything that surrounds us, and a festival of science films. This is the fourth year of the festival

which is again being supported

by Instituto Cervantes with the showing of scientific films as part of ‘Lights, Camera ... and Science’ which has been organised in cooperation with the Spanish Association of Film and Image Science (ASECIC).

For more information about the festival as well as the schedule for movies go to www.festivalnauke.org The Science Festival is being held at the following locations: RK Kluz (Masarikova 4), the Student Cultural Centre (Kralja Milana 48), and the NBS Gallery www.belgrado.cervantes.es

Instituto Cervantes FILM FESTIVAL: International Underwater Film Festival

Friday, 10 - 12 December Instituto Cervantes will again support the International Underwater Film Festival which is being run for the 14th time. This is a unique festival in Southeastern Europe and is part of the Environment and Sustainable Development Network, and is also supported by the United Nations. As is the case each year, there will be a number of Spanish films on offer such as Leandro Blanco’s ‘Demons from the Deep’ and ‘The Perfect Attack’, and Jose Maria EstebanInfantes San Martin’s ‘A Sea of Sharks’. Tickets are available from the Yugoslav Film Archive.

More information available at www.kpa.co.rs The film festival is being held at the Yugoslav Film Archive (Jugoslovenska kinoteka) www.belgrado.cervantes.es To be included in this monthly summary please contact Philomena O’Brien at p.obrien@aim.rs CorD 77 / December 2010 65

restaurant talaS

A ‘WAvE’ hELLO Zemun can pride itself on a new fine dining spot

By Jelena mickiĆ

O

n the Zemun bank of the Danube, beneath the town’s historic quarter of Gardoš, lies a wellknow foodie strip where a new restaurant has found its home. This new eatery has been given the highly appropriate name of ‘Talas’, which translates into a ‘wave’ in English. Visitors can easily recognise it by the creamy painted beams that give the place its personal visual identity. If you are familiar with this neck of the woods you’ll remember that there used to be a short-lived restaurant here, but since Talas is a brand new concept, the premises have been completely redone to give a modern swish look with quite a few contemporary details. The restaurant itself is divided into two levels with a spacious patio overlooking the Danube’s promenade. The patio has been done in a soothing

The menu consists of only four pages, which is a good sign, as every long or very long menu is a warning of a restaurant’s lack of clear cuisine vision beige tone, has an eating section and a drinking one, while the tables are arranged in such a way to give you enough privacy, but not to make you feel isolated.

The menu consists of only four pages, which is a good sign, as every long or very long menu is a warning of a restaurant’s lack of clear cuisine vision. Talas’ menu is made up of two sections that are inspired by cooking ingredients,

66 CorD 77 / December 2010

mostly protein, that come from water and live on land. The first section lists a selection of sea and fresh water fish, which is not a very common occurrence in that most Belgrade restaurants offer mostly frozen seafood. Being near the Danube and in Zemun, which prides itself on having a great fishing and fish-mongering tradition, fresh water fish is a must.

The menu’s second section flirts with the Serbian fondness for meat, especially the red sort. There are some less common sweet and savoury combinations of tastes such as pork shanks with pineapple or veal rolls with figs, but there are also some all-time restaurant favourites like turkey with mushroom sauce or lamb. If you need a little help with food and wine pairing, a trained staff member will be at your disposal.

Speaking of the wine list, it is extensive and includes an offering from well known domestic producers and some carefully chosen foreign ones.

I opted for veal rolls stuffed with figs accompanied by As the restaurant has a nice selection of fresh water fish vegetables as a side. A piece of a dried fig was rolled in veal, we decided to start off with a catfish and pike-perch pate. then rolled in prosciutto, pan-fried and coated in a balsamThe dish was creamy in texture, just of the right consistency, ic vinegar reduction sauce. The vegetable selection of carmildly seasoned and of a slightly pleasant tart taste. It was rot, broccoli, potato in a skin and courgette, was steamed and plated in a simple and contemporary manner without unnecit lacked salt, which I was later grateful about but was not essary and inedible old-fashioned garnishing. I always pay aware of it at the time. What actually happened was that the attention to the bread selection in a restaurant. Although very vegetables managed to balance the extreme saltiness of my often a simple accompaniment, the bread basket content is a meat to some extent. Prosciutto already being salty and in telltale sign of how detail oriented and dedicated to the clicombination with the almost intolerably salty balsamic vinent’s enjoyment the chef is. This bread basket had a selection egar sauce was too much. From the moment the sauce was of white and whole grain bread. To my disappointment these in my mouth I could hardly taste or feel anwere not the artisan kinds, but the ones that are industrially mass-produced.

If you need a little ything else from the plate. I am not very on a balsamic reduction sauce in genIn choosing our mains we relied on the help with food and keen eral, as its black colour does not look apwaiter’s recommendation and we highly appreciated his sincerity when he told us they wine pairing, a trained petising to me at all. This time I had to rewere out of some ingredients for the dish- staff member will be move this sauce somehow, which involved unrolling and dissecting the roll in order to es we were interested in, as they could not at your disposal eat its edible inner bits. I could barely taste find the fresh produce. That fact ruled out the mild sweetness of the fig and the softour first dish choice and I sincerely hope ness of nice veal meat, and unfortunately the that it will not become the restaurant’s comquality of this dish was complete lost due to mon practice. Meanwhile while waiting for the unfortunate sauce. our mains to arrive we were sipping our aperiSpeaking of sweets and our waiter agreed tifs. My martini bianco was moderately strong with us, the restaurant has a small choice but came without an olive for some reason unof desserts, a cranberry baklava being one. known to me. As this has already happened Cranberry is all the rage in some Belgrade several times in other restaurants I’ll have to restaurants, as cranberries are still a relacheck if there is some new cocktail trend. Call tively new ingredient to the local food marme a traditionalist, but I always look forward ket and diet. I’ve tried a cranberry baklava to an olive at the bottom of my glass. Another in another restaurant and have to say that in thing I noticed was a rather modest choice of my opinion the sweet, sticky sugary baklalady’s aperitifs. va syrup and phyllo pastry texture do not pair We did not have to wait too long for our well with acid and watery cranberry meat. mains to arrive. My companion’s choice was Other dessert choices were a good old cheesecake, which a generous-sized turkey breast dish that came out as a layhaving made it to the Belgrade restaurants and cafes menu ered cake with tomato, mozzarella and kackavalj cheese on have not stepped down since, then there was a chocolate gathe top. The meat was tender and moist; mozzarella gave the teau, a standard offer of seasonal fruits and a factory made dish a mild milky and creamy taste, while the tomato’s acidice-cream. Unfortunately the restaurant either has no a pasity broke the one-dimensional mildness in taste and gave it try chef or has one who is not particularly inspired. The desa needed and balancing freshness and edge. The kackavalj sert list is an important part of a restaurant menu and identimelted on the top rounded the dish up with its squeaky and ty, and a short, but effective one can make the difference. gooey crust. There was no side of any kind with this dish, We experienced polite and discrete service. Some evebut even the simplest and freshest salad would make this nings there is live music performed by a tamburica ordish a complete and satisfying meal. My companion’s salad chestra and a DJ. An available parking spot is not easy to had all the traditional ingredients of a šopska, but they came find nearby so think about parking your vehicle in a nearwith a twist, creating a construction of carefully jointed toby street. The prices are on the higher end of mid-priced mato and cucumber slices topped with onion, paprika and Belgrade restaurants.

■ grated feta cheese.

CorD 77 / December 2010 67

food and drink

CULINARy pLEASURES Serbs enjoy food that is full of flavour, sometimes spicy and often greasy. They eat with passion and pleasure, without counting calories.

Serbian cuisine is a paradise for foreigners to enjoy

By Philomena O’BRIEN

I

t’s no secret that Serbian’s love food. There is a genuine passion for eating and sharing food with friends and family. Meals are to be enjoyed and savoured - everything else is secondary. In fact aside from the friendliness of the locals in this rather unique corner of the world, it is the country’s approach to eating and the heartiness and flavours that appeals to me most. Serbians are not shy about using meat, bread and cheese and I’ve yet to meet a vegan Serbian – though I do know they exist, somewhere.

CELEBRATIONS

P

eople did not save on food for holiday celebrations even in times of poverty. A celebration table in Serbia includes ham, bacon, cooked eggs, young kajmak and pihtija (jelly) for starters.

When things warm up a little and the laughter has begun various stews (čorbe) are served, as well as sarma (sauerkraut rolls filled with minced meat and rice), prebranac (baked beans), podvarak (a dish made from sauerkraut, onions and pork roast) and finally roast meat to crown the evening. No meal in Serbia is complete without traditional Serbian cakes. There is a special dish for each religious holiday.

68 CorD 77 / December 2010

In terms of its heritage, Serbian fare is a real mish-mash of influences and is basically a cuisine that has been shaped by the inspirations of its neighbours from the East and West.

In the north, particularly the Vojvodina area, it is easy to recognise typical Hungarian influences and in the south a lot of Turkish. Fusion may be a fashionable term used in all the best restaurants, but here in Serbia it is alive and well and is evidenced in even the humblest of meals.

In Serbia people still live and eat at a slow pace - food is to be enjoyed and conversation comes later. In fact it is not uncommon to see a couple on a date silently enjoying their meal, with conversation being kept until later. Serbs enjoy full-flavoured food - often spicy, more often than not fatty, roasted meats cooked slowly, homemade spirits and preserves, and rich, rich deserts that need washing down with copious amounts of coffee or rakija. Hedonism is alive and well in Serbia.

We are all familiar with the Serbian culinary ‘standards’ of pljekavica and chevapi but for people who want to experience the true flavours of Serbia, below are some examples of meals that will be put before you in a Serbian home or will appear on a ‘kafana’ table.

GIBANICA

My initial introduction to Gibanica was sitting in the back of a Jugo on the prowl for a late night bite to eat, when some-

one called out “We’ve got Coke, we’ve got pizza, where the hell’s the Gibanica?” That night we ate road-side pljeskavica and it wasn’t until months later that I finally got to try my first taste of this traditional Serbian pastry delicacy. It’s possibly not a dish that would feature on the Weight Watchers ‘recommended foods’ list ... and that’s why it tastes so damn good. Usually made with a white cheese, a pastry called ‘kore’ which is similar to phyllo pastry and eggs; it looks something like a strudel, or can sometimes be served in individual snail-shaped rolls. Aside from burek it is probably one of the most popular and recognisable pastry dishes in Serbia, and is made most often for festive occasions, or simply as a comforting snack. Although gibanica is most commonly made with white cheese, other varieties are made with spinach, meat or potatoes and onions. So cherished is gibanica in Serbia, there is even a FaceBook page devoted to the pleasures of consuming it.

each roll is usually from five to 15cm, depending on what is preferred. Many folk use their own homemade whole heads of pickled cabbage (sauerkraut) known as ‘kiseli kupus’ when making their sarma but it is also possible to buy the product and then do the final preparation at home.

The dish is eaten year round My initial introduction to Gibanica but due to its ‘comfort food’ Prebranac and Pasulj was sitting in the back of a Jugo on the qualities and strong favour it tends to make more of an ...or ‘Serbian beans’. Yes prowl for a late night bite to eat, appearance over the colder there is a difference and it took when someone called out “We’ve months. It is said that sarma me a while to figure it out. Both recipes use white or the Great got Coke, we’ve got pizza, where the are always best if you prepare them in a large quanNorthern bean but the differhell’s the Gibanica?” tity, which I think is just a ence is all in the method of how good excuse for Serbians to cook plenty and share them it is cooked. Prebranac is baked and pasulj is prepared on the with their neighbours and friends. stove-top. These two dishes are in my opinion the ultimate ‘comfort food’. It’s sort of like the notion of mashed potato...but made with beans instead. Prebranac is quite simply Riblja čorba known as ‘Serbian baked beans’. The most basic of recipes A common saying in Serbia is “I have not eaten, if not stipulates white beans, a lot of onion, salt, pepper, dry ground eaten with a spoon!” – in other words it is difficult to impaprika and oil. It is usual to include some sausages too. It agine a meal, particularly lunch, without a soup or broth. If can be served warm or cold, and is one of the dishes tradiyou enjoy the taste if fresh-water fish and are looking for a tionally eaten at Christmas time. Pasulj is effectively a very hearty winter warmer, riblja čorba (fish stew) is irresistible. thick soup and is considered by many to be one of the nationTraditionally made with fresh-water or river fish, it can have al dishes of Serbia. It is normally prepared with meat (idealquite a strong flavour but is balanced nicely with the addily smoked bacon or a smoked sausage, or sometimes even tion of tomatoes and paprika. More often than not it can have smoked ham hocks, pig’s feet or ribs.). It is eaten mostly dura bit of a kick in terms of spiciness too. Connoisseurs claim ing hotter periods of the year due to its low fat content. the best riblja čorba should be cooked for a long time in order for the flavour to combine; should contain a variety of different fish; and should be spicy but not excessively hot.

Sarma Being a Serbian speciality of course means that many famiSarma is one of those dishes that visitors to Serbia lies have their own ‘secret’ recipe that has been handed down either seem to love or hate - either way it elicits a rethrough the generations and, naturally, improved upon with sponse! Sarma is the Serbian version of stuffed cabbage and many Serbs serve it for special occasions like their Slava Pržena somovina (saints day). From my personal experiences with the dish, it For those who find the bones riblja čorba is all about the quality of the daunting, why not try pržena somovina, or meat and the pickled cabbage.

Sarma is made from chopped fried catfish. Catfish steaks are fried in oil beef and pork meat, rolled into and served with boiled potatoes and lemon. a pickled cabbage leaf and then Great flavours sans bones! cooked in the oven. The size of CorD 77 / December 2010 69

Duvan čvarci

A special variety of čvarci, known as duvan čvarci are produced in the Šumadija region of central Serbia, where the cooking process results in the end product resembling finely chopped tobacco. time. And it’s not just for amateurs either. There are numerous competitions every year to award a prize for the best fish broth, which suggests that there is no standard recipe, only excellent chefs and their well-kept secrets. One word of warning ... the čorba more often than not has bones in it (and not just one or two!) so consume with caution and don’t be dainty about how you approach it as there will be a pile of bones on the side of your plate at the end.

Podvarak

ten hear Serbs wax-lyrical about how their own family makes this dish better than any other.

Čvarci

Čvarci are effectively deep fried bacon pieces and are a kind of rustic countryside specialty. They are often homemade but can also been found at the green markets. The process of making čvarci involves the bacon being cut into blocks of about two centimetres in size and slowly fried in their own fat - the frying lasts until all the fat has melted away and only the tough crispy pork rind remains. Onion or garlic is sometimes added as a spice but regardless, these little morsels are packed with meaty flavour. As with most traditional pork products, they are considered to be winter food due to the fact that the traditional time for pork processing in the Balkans is late November and early December. They can be eaten on their own as a snack, enjoyed with Rakija or beer, and are often used as an ingredient in other food recipes. This dish will not be found on the Weight Watchers menu any time soon.

Podvarak is basically roast meat with cabbage. Like many Serbian dishes the ingredients are very simple and involve usually roast pork (or chicken), sauerkraut (pickled cabbage), onions, and some seasonings, which are then combined and Vanilice baked in an oven. Podvarak can also be made with a variety This delectable morsel is a favourite of mine - butter of other vegetables and additional meats such as bacon, and biscuits sandwiched together with jam, usually apricot, and I’ve even got a friend who says the best-ever podvarak is dusted lightly with icing sugar. They come in dainty bitemade with turkey. It is a favourite winter food for Serbians sized circles and I am partial to them not just because they and you will often experience it are so small and one can conas a Sunday lunch when visiting Podvarak is a favourite winter food sume a larger number with less locals. In fact for many Serbs guilt, but they also look very for Serbians and you will often one of the highlights of winter is pretty on a table with tea or cofexperience it as a Sunday lunch being able to eat podvarak – and fee. Vanilice are perfect to take I have heard people joke (or not) to someone’s house if you have when visiting locals that they would it eat every day been invited for a visit, are great if they could. In more traditionas a small gesture to say soral families there is often a ‘family recipe’ for podvarak that ry and are perfect for gossiping over. Oh...and did I menhas been handed down from grandma, or previous generation that they also have a tendency to melt in the mouth? tions, and so with it being such an institution you will ofYummmmmmm.....

■

World Testicle Cooking Championships

O

ZREM, Serbia - In a remote Serbian mountain village, they cook up delicacies to make your mouth water - or your stomach churn.

At the seventh annual World Testicle Cooking Championships, in 2010, visitors watched - and sometimes tasted - as teams of chefs cooked up bull, boar, camel, ostrich and even kangaroo testicles.

“This festival is all about fun, food and bravery,” said Ljubomir Erovic, the Serbian chef and testicles gourmand specialist who organises the bizarre cooking festival and has published a testicle cookery book.

The food - politely called ‘white kidneys’ in Serbian - is believed to be rich in testosterone. In the Balkans, it is considered to help men’s libido.

The festival includes dishes like testicle pizza and testicles in béchamel sauce flavoured with a variety of herbs found in the region.

(Source: The Associated Press)

70 CorD 77 / December 2010

techno

talk

WhAT’S hOT IN GADGET WORLD

Let the Sun Shine WHaT: Logitech has just released a solar-powered keyboard. The Wireless Solar Keyboard K750 features two sets of solar panels which will gather energy whenever there is light. On a full charge it can last up to three months in complete darkness.

You can download an application that tells you how much light the device is getting, and how long the battery is estimated to last.

WHen: Was released in the USA at the end of November.

ThE DAMAGE: $80 USD (approximately €60)

One for Aqua Teen Fans WHaT: Casio outs a new co-branded G-Shock watch, this time in collaboration with Adult Swim for an Aqua Teen Hunger Force themed DW6900AS-8 model. The design of the new timepiece gets inspiration from the Aqua Teen Volume 6 DVD cover and comes in white casing with pink and black accents. As for the features, the DW6900AS-8 includes shock resistance, water resistance to 200 metres, flash alert, a multifunction alarm, countdown timer, 1/100 second stopwatch and 12/24 hour formats. This model for the fans is produced in a limited quantity, will feature a custom back-case engraving and available for $200.

WHen: Available now.

ThE DAMAGE: $200 USD (approximately €140) 72 CorD 77 / December 2010

Golfer’s Best Friend WHaT: In late October Garmin unveiled the first GPS wristwatch designed specifically for golf. It gives players precise distances to the front, back and middle of greens, measures individual shot distances, functions as a high-quality, everyday watch and it has an odometer to tell you how far you've travelled - on or off the course.

WHen: Available now.

ThE DAMAGE: $240 USD (approximately €170)

Mobile Phone Sanitizer WHaT: If you happen to suffer from some form of obsessive compulsive disorder where the fear of germs is something that bugs you the brand new Violight Cell Phone Sanitizer is for you.

The first ever UV Cell Phone Sanitizer keeps your cell phone as germ-free as possible using proven germicidal UV light to safely kill up to 99.9% of certain surface bacteria on your phone. And it's fast and easy to use. Just place your phone in the sanitizer, and replace the cover. The UV bulb goes to work, killing most germs in minutes.

WHen: Available now.

ThE DAMAGE: $50 USD (approximately €35)

Small Speaker, Big Sound

ThE DAMAGE: $200USD (approximately €140)

CorD 77 / December 2010 73

technotalK

WHaT: Jawbone is launching an interesting new gadget for the Christmas season - the JAMBOX is a small loudspeaker designed to be the perfect companion for Bluetooth-enabled mobile devices that let people stream and share music, movies, games, phone and conference calls. The powerful sound delivered by such a small loudspeaker is very impressive, and part of the technology behind it has been developed for over 10 years by a NASA scientist.

The battery is part of the acoustic technology and is used to move the air to enhance the audio quality, which also helps to reduce the size and weight of the device. The polycarbonate material with 30% infused glass plays a significant role in the audio quality by preventing audio loss. The company claims that "the two highly powerful acoustic drivers and ultra-small dome produce an audio spectrum almost as wide as the human ear itself."

WHen: Available mid-November.

techno

talk

TOp

5

INTERNET READy Tvs

Looking for easy internet access from your entertainment system? Internet-ready TVs are the answer.

They’ll give you full access to selected websites, all while you watch your favourite TV shows. These top five internet-ready televisions below are at the top of their league not only because of their exceptional internet access capability but also because of their excellent technological features. If you’re looking for the best, one of these five choices will surely meet your needs.

Samsung LED HDTV Latest internet access, 3D viewing experience, easily shared content and environmental friendliness - these features make the Samsung LED HDTV stand out. It allows access to a huge range of sites, with up-to-date content ready for your enjoyment. Other than content from the internet, it’s easy to view all the content from your other gadgets (camera, mobile phone, and even your PC) with AllShare. You can also enjoy using the TV’s 3D Active Glasses, and because it’s Energy Star compliant, you know you’re also protecting the environment.

Sony Internet TV Being the first TV to be powered by Google TV, this Sony innovation offers access to a wider array of websites and applications to bring you a higher level of entertainment.

This is made possible with Google TV’s automatic upgrades to bring the latest to your internet TV. The device is also DVRcompatible, so you can have your recorded content available for viewing. And, you can also connect the TV to your iPhone or Android phone and share content. The TV also allows you to access the web while you watch your favourite TV shows, so multitasking is easy.

74 CorD 77 / December 2010

Panasonic VIERA Plasma HDTV If there’s one thing that makes this Panasonic TC-P65VT25 65-inch 3D Ready 1080p VIERA Plasma HDTV stand out, it would be its full HD 3D feature. It’s packed with the latest technologies that make the best 3D viewing experience - from the frame sequential technology that controls the images sent to the eyes, to the 3D eyewear that controls shutters for both eyes between images. Other than this, this plasma HDTV offers popular internet content without any PC required. Plus, it allows home video and audio conferencing with Skype.

LG Infinia LED TV This HDTV combines internet capability with a modern and unique style. To start with, it’s a wireless television - you don’t have to deal with a lot of wires and you can place it anywhere. Plus, being LED and slim, it’s got a great profile that makes it a perfect addition to any setting. It features NetCast Entertainment Access technology that brings the internet right to your fingertips - you can browse a wide array of content including a huge selection of movies upon subscription. This LG INFINIA 55LE8500 55-Inch 1080p 240 Hz Full LED Slim LCD HDTV with Internet applications offers content in rich detail and with excellent quality imagery.

Vizio XVT553SV LED HDTV

(Source: www.geekiegadgets.com) CorD 77 / December 2010 75

techno technotalK

The VIZIO XVT553SV 55-Inch 240 Hz TruLED LCD HDTV with VIZIO Internet application will give you quick wireless access to the Internet through its built-in WiFi 802.11n dual-band. All the content that you access, whether from your TV or from the internet, can be enjoyed with the various technologies embedded into the device. Its Smart Dimming technology and Dynamic Contract Ratio guarantee clarity and defined colours. Plus, you’ll also get rich sound with its combination of SRS TruSurround HD and SRS TruVolume... and with the Bluetooth remote that comes with the device, you can control everything, even from a distance.

chill

out!

BLIND CRICKET COMMENTATOR

A blind cricket commentator in Zimbabwe manages to judge the power and direction of a shot – and rarely makes mistakes. Dean Du Plessis hears the power and direction of the hit. He listens to the speed and spin of the ball, along with the players’ exertions and their cries of elation or frustration. He senses the excitement – or other-

wise – of the play on the cricket field and collates the scores with a computer-like memory. He also produces a delivery so polished that most listeners are unaware that he can’t see. “I have to ensure I am totally accurate,” he told The Associated Press. “I’m generally spot on or very close. I think I have a pretty big hard drive in my head,” says the 33-year-old.

(Source: www.telegraph.co.uk)

SPACE TOURISM AFFECTS CLIMATE

ORACLE OCTOPUS FOUND DEAD

Paul the psychic octopus, who gained fame predicting winners in this year’s Football World Cup in South Africa, has died at an aquarScientists are ium in Germany. He died in the Oberhausen aquarium tank in warning that black soot which he shot to from sub-orbital flights could stardom, corcause major disruption to climate rectly presystems. Environmentalists have aldicting the ready raised concerns about the carbon winners of footprint of proposed space tourism flights, such as those planned by British billionaire all of Germany’s Richard Branson, but according to new research the controversial flights World Cup clashcould have an even more immediate impact on the world’s climate. A es, even risknew study, accepted for publication in Geophysical Research Letters, ing ending up predicts that soot emitted by rockets in the upper atmosphere would as dinner when lead to significant disruption to the world’s climatic system resulthe tipped against ing in a net increase in temperatures. The report, which was fundit. “His success made him almost a bigger story than the World ed by NASA and The Aerospace Corporation, assumes that the Cup itself,” Sea Life manager Stefan Porwoll comments. After Paul’s space tourism industry makes good on its plans to carry out up to 1,000 suborbital rocket flights a year by the end of eighth accurate forecast of Spain to beat the Netherlands in the fithe decade. nal, he went into retirement. His body is in cold storage while the aquarium decides how best to farewell him.

(Source: www.guardian.co.uk)

(Source: www.abc.net.au)

ROYAL MAIL CAT ATTACK Royal Mail officials are refusing to put a family’s letters through their door in case their cat attacks the postman. The postal service claims Lana - a tortoiseshell coloured cat - is a risk to its staff after she scratched a postie’s

INTERNET ON EVEREST

76 CorD 77 / December 2010

A private Nepalese telecom firm has taken high speed Internet facilities to the top of the world by launching Nepal’s first 3G services at the base camp of Mount Everest. The installation could help the tens of thousands of mountain climbers and trekkers who visit the Mount Everest region in the Solukhumbu district every year. They have to depend on expensive satellite phones to remain in touch with their families as the remote region

hand when he pushed letters through the letterbox. Now the postman has to knock on the door each morning and Lana’s owner, Carl White, has to collect the mail in person. The family say Lana was just being playful but Royal Mail say they have to keep staff safe from ‘animal attacks’.

(Source: www.telegraph.co.uk) lacks proper communication facilities. Nepali telecom company Ncell said its new facility is the first 3G setup at the base camp of Mount Everest, the world’s tallest mountain at 8,850 meters (29,035 feet). Ncell is a joint venture between local investors and TeliaSonera.

(Source: www.reuters.com)

VENDING MACHINE ART An artist who wanted to make art more accessible has installed vending machines across Germany offering unique art miniatures in small boxes. Lars Kaiser, a 35-year-old artist from Potsdam, said he came up with the novel idea to give art lovers the chance to buy the inexpensive art samples from vending machines around the clock. He has installed about 100 of the uniquely decorated art vending machines in pub-

BRITISH BOBBIES TRAINED ON TWITTER British police are being taught how to track criminals from the comfort of their own desks, using Facebook and Twitter. The 3,500 trainees taken on each year by the force will be shown how to monitor the movements of suspects using Twitter. They will also be taught how to search Facebook pages for incriminating posts as well as potential witnesses. “These improvements are exactly what detectives need to tackle the challenges and complexities of modern policing effectively,” says the acting chief executive of the National Policing Improvement Agency, deputy chief constable Nick Gargan.

(Source: www.tgdaily.com )

lic buildings, bars and on exterior walls throughout Germany. The refurbished vending machines once sold cigarettes, chewing gum or condoms in the 1960s and 1970s. “We wanted to get art into places that don’t have anything to do with art so that it would become a part of everyday life,” Kaiser told Reuters. Kaiser said he did not make any money from the initiative.

(Source: www.reuters.com)

LEBANON WITH LARGEST WINE GLASS Seeking to brush off its political troubles and burnish its reputation for good living, Lebanon has claimed a record for the world’s biggest glass of wine. Organisers of a wine festival in Beirut poured around 100 bottles of Lebanese wine into the giant glass, 2.4 metres high and 1.65 metres wide. “The previous record was set in Portugal 12 years ago, and I’m proud to announce that Lebanon has achieved a new record,” Guinness World Records adjudicator Liz Smith said at the festival on Friday evening (local time). In recent years Lebanon has claimed the world’s biggest servings of kibbeh and tabbouleh, traditional meat and salad dishes, and the biggest bowl of hummus.

(Source: www.reuters.com)

WORLD’S FASTEST ROLLER-COASTER At 240 kilometres per hour, Formula Rossa is officially the fastest roller-coaster in the world. Built high above Abu Dhabi’s Formula One track, the ride aims to accurately recreate the sensation of driving a

Formula one car, with drops and turns that generate 1.7 G’s, pinning people down into its 16 seats. Using the same technology that propels fighter planes from warships, it accelerates into the burning desert from 0 to 100kph in two seconds flat; and takes less than 90 seconds to travel its full length of 2.07 kilometres.

(Source: www.telegraph.co.uk)

HARRY POTTER ‘INVISIBILITY CLOAK’

(Source: www.telegraph.co.uk)

chill out!

A new material that could be used to create a real-life Harry Potter-style ‘invisibility cloak’ has been designed by British scientists. The material, called ‘Metaflex’ may in the future provide a way of manufacturing fabrics that manipulate light. Metamaterials have already been developed that bend and channel light to render objects invisible at longer wavelengths. So far such small light-bending atoms have only been produced on flat, hard surfaces unsuitable for use in clothing. But scientists at the University of St Andrews in Scotland believe they have overcome this problem by producing the flexible ‘smart fabric’ that may provide the basis of an invisibility cloak.

CorD 77 / December 2010 77

Trench Coat

The trench coat has been around for many, many years and this winter it is one of the hottest trends. It is capable of being re-imagined in an infinite number of ways - shrunken to jacket length and crossed with the soonto-be-ubiquitous utility jacket, decorated with gilt buttons, worn with skinny crop pants or romantic lace dresses.

78 CorD 72 77 / June December 2010 2010

As we head toward the middle of winter, now is the time to take stock of the essentials and make sure you have enough layers and warmth to get you through the cold months.

Handbag-a-mania Don’t let the grey days of winter get you down. Fight back with the essential fashion item in the ‘lariest’ and brightest colours you can find.

CorD 77 / December 2010 79

Lady-like gloves You can look like a million bucks with gloves. It might remind you of your grandma or the old ladies with their matching bucket hat and oversized coats, but if you mix it with modern pieces you can look up-to-date and sophisticated. Two hot glove fabrics this season are leather and suede in black (of course, a classic), dark brown, tan brown, deep purple and olive green. Make sure you buy genuine leather as it will last a very long time.

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Charm Jewellery Add a little vintage charm to your moderncut outfit! Soften a black sweater and dress pants with a cute charm bracelet or necklace. Avoid wearing other frilly accessories with the charms. Instead, go for simple earrings, leather belt and shoes. You can also mix the charms with chain jewellery together for an interesting and slightly edgy style blend. Also try pearls.

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profi profi le le

ChANGE IS GOOD “I started a Charity Forum in our office made up of wonderful lawyers giving all their legal advice to NGOs pro bono. I believe that this model of creating small groups of employees who work for charity can be replicated throughout businesses”

P

atricia Gannon loves challenges and believes that change is a good thing. This attitude toward life contributed to her arrival in an unfamiliar environment in which she has carved out a successful career. She now considers herself to be one of the ‘old timers’ as she has been living in Serbia on and off for over 10 years.

“I have always been driven to do something new and have fun doing it. I still believe that change is good and try to challenge myself to do things better all the time. I am a proactive person and do not wait for things to happen,” Patricia says.

Her reasons for coming to Belgrade during the Milosevic era were purely personal. “I met my husband Dejan by chance in Dublin and clearly the Balkan charm had an effect so I came to explore his country and stayed. The life I have lived in this country is very different to that which I had planned for myself but despite all the obstacles that we faced over the past number of years I consider myself lucky to live in interesting times, as they say, and I have made the most of the opportunities that presented themselves along the way”.

Today, Patricia is a Partner in the law firm that she founded together with Dragan Karanovic and Dejan Nikolic back in 1995. “It’s grown a lot since our first grimy office in Brankova Street - now KN has 100 employees and five offices in countries of the former Yugoslavia. The principles that motivated us back then have remained the same. We wanted to offer an international style of legal service to incoming investors. We believed that one day they would come because there seemed to be so many opportunities for them in this still undiscovered part of Europe. Although we have been hit by the

Developing our firm into a strong regional player is challenging but we are convinced that it is the right thing to do as we see more and more integration and more Serbian companies expanding beyond their borders global crisis as all service providers have, we still believe that things could be worse so we focus on developing our business, our lawyers and our service to clients”.

What she enjoys most about her work now is the time spent travelling in the region - from Sarajevo and Pristina to Podgorica, Banja Luka and Skoplje. “Each market is similar but with a particular flavour and style of its own and as I enjoy meeting people I see how they live, what motivates them and I try to share experience and promote 82 CorD 77 / December 2010

empowered professionals. Developing our firm into a strong regional player is challenging but we are convinced that it is the right thing to do as we see more and more integration and more Serbian companies expanding beyond their borders. This will be my focus for the next few years,” Patricia says.

KN has grown its business and a team over a relatively short period of time. “Today we all spend a lot of time on management which is essential when you develop structures. As lawyers we clearly have a certain set of skills - but management is something which we all picked up along the way and we are always striving to improve on that”.

Patricia says that while recruiting new people for the firm KN try where possible to find people who are self-starters and who are focussed on quality. “We enjoy a good relationship with the Law Faculty and every year the graduates get better and better with excellent language skills and more business skills.

We train them intensively so that they can advise in the commercial world around them”.

This year Patricia has focused Partner at Karanovic more on charity work. “In Serbia & Nikolic Law office we do not have a well defined culture of giving and charity. Clearly the time of communism has taken its toll but it is now time for us all to do what we can to develop this community culture more. I started a Charity Forum in our office made up of wonderful lawyers giving all their legal advice to NGOs pro bono. I believe that this model of creating small groups of employees who work for charity can be replicated throughout businesses,” she says. “This year we will be organising a bigger Charity Forum in the Hyatt on 12th December to bring together all who work in the charity sector- to learn about the new law on foundations, to view a new interactive website designed to make the process of giving more transparent and to network each other to find out new ways to cooperate and develop this culture of Charity”.

At the end of a long day, Patricia spends her time with her teenage children. “They remind me again of how nice it is to bring up kids of mixed culture - they should inherit the best of both traditions and feel that they can fit in anywhere in the open world”. n

Patricia Gannon,