CorD magazine 78

Excessive administration

Getting Better

Mr. Kjell-Morten Johnsen,

Governor of the National Bank of Serbia

H.E. Ali Riza Çolak, Turkish Ambassador to Serbia

JAN ‘11 / ISSUE NO. 78

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getting Better Things would gradually fall into place and finally we would be in a position to say with full confidence and backed by reality: today is better than yesterday; tomorrow will be better than today

s

ince the outbreak of the financial crisis in 2008, the world has been trying to overcome the economic downturn and to put new systems in place in order to avoid similar episodes in the future. Serbia, as an emerging South-East European country could not avoid the faith of the region. Capital inflows of the past decade halted in 2008 and the embedded economic imbalances have painfully resurfaced. Serbian economic development post-2000 was illstructured and based on growth in non-tradable sectors of the economy - mainly banking, trade and other services. Low investment with high consumer spending biased towards the importation of goods and services created a chronic tendency of high trade deficits without a real increase in the future economic potential of the country.

Monetary policy was targeting the stability of the exchange rate, with, at the same time substantially higher inflation than in the euro zone. The inevitable outcome of such policy was real appreciation of the dinar and a gradual but steady deterioration of competitiveness of Serbian-made products. Serbia became a country almost exclusively to sell to, and not to produce in. In the midst of the global crisis we were a country inclined to spend more than we produced, and to import more than we could export. Capital inflows managed to hide the sour reality for several years. The illusion of rising living standards was based on consumption financed by privatisation income, donations, remittances from abroad and new loans taken by both public and private sectors. The limitations of such a “growth strategy” were obvious, but seem to have been ignored by the Serbian elite. In 2010, Serbia has fewer people employed than in the year 2000, is recording less than 50% of the industrial output of 1989, and less than 75% of GDP of that same year. Namely, of all post-communist countries, only Serbia has not yet recovered to the level of its pre-transition economic output.

A precondition for real economic recovery is being reasonable, making the right moves, being patient and not expecting results overnight Can we go on like this? Theoretically, yes. But, the outcome of such “policies” is rather obvious: continuing impoverishment of the country and its citizens with increased debt burden for our children to shoulder in the future.

Is there a light at the end of the tunnel? Conditionally, yes, there is. A precondition for real economic recovery is being reasonable, making the right moves, being patient and not expecting results overnight. Every stakeholder in the system should do its share of 6 CorD 78 / January 2011

work so that a common positive turnaround could be achieved. Basically, for a while, we should be spending a little less and saving and investing more. The results will come slowly, but will no doubt be positive.

Households should not expect an increase in salaries without the increase in productivity. An improvement in the standard of living should first come from an additional workplace in the family, and not from industrial action – strikes or union pressures. What everyone can do in the meantime is try to increase their capacity through education and further training in order to improve their job prospects and potential income.

Companies should make continuous efforts to engage in industrial production, to export more, and produce goods and services by engaging local suppliers.

Banks should try to do more by offering financial products which are more suitable to agricultural and industrial financing. They should try to renegotiate and reschedule loan agreements in Dejan šoškić order to decrease the volume of nonperforming loans and to support the Governor of the government and the central bank in National Bank of their ‘dinarization’ efforts aimed at conSerbia taining the FX risk exposure of our small economic system within tolerable boundaries.

Our Government should firmly observe fiscal rules, fight corruption and the grey economy and continuously work on improving the business climate. No public company should increase prices before trying to make explicit and substantial internal savings. There must be rule of law.

The National Bank of Serbia should ensure low, single-digit inflation and sustain financial stability. Monetary policy and exchange rate movements should not hamper the export-oriented growth model leading the country to sustainable and long term stability and economic growth.

These things are obviously easier said than done, but still fully achievable if there is a common will. By abiding to these simple rules, we would soon be leaving behind a couple of decades of downturn and turmoil. Things would gradually fall into place and finally we would be in a position to say with full confidence and backed by reality: today is better than yesterday; tomorrow will be better than today.

■

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Našim inovacijama efikasno se stvara i distribuira energija koja nam je potrebna, a istovremeno se drastično smanjuje emisija CO 2. www.siemens.com/answers

Answers for the environment.

Serbia in 2010

The Year as it WAS! January

Politics 6th: Trilateral meeting of the ministers of foreign affairs of Serbia, Bosnia and Herzegovina and Turkey is held.

15th: Serbian Minister of Foreign Affairs, Vuk Jeremić, orders an urgent recall of the Serbian ambassador to Podgorica, Zoran Lutovac, for consultations in Belgrade, due to the decision of Montenegrin authorities to establish diplomatic relations with temporary self-authority institutions in Priština.

20th: Serbia officially joins the EU Strategy for the Danube in Brussels.

the New Year at midnight, between January 13th and 14th 22nd: Bishop Irinej of Niš is elected as the new Serbian patriarch.

Culture 20th: Actor Petar Kralj wins the ‘Zlatni Ćuran’ life achievement award of the Theatre festival of the best comedy plays in Serbia, ‘Days of Comedy’.

29th: The film ‘Ordinary People’ is pronounced the best domestic work in 2009 by Fipresci Serbia, one of the two national sections of the international film critics’ association.

Sport 1st: Athlete Olivera Jevtić wins second place at the New Year’s race in Sao Paolo.

Economy 1st: Serbia takes the presiding position over the Central European Free Trade Agreement, CEFTA, for 2010 18th: Representatives of the CIP Traffic Institute and Chinese Roads and Bridges Corporation (CRBC) sign a pre-contract worth €1.9 million for the conceptual and main project for a bridge over the Danube from Zemun to Borča.

21st: The Government of Serbia accepts Telenor’s offer, worth €1.5 million, to be the second operator of land lines.

Society 1st: The new network of courts and prosecutors offices is established in Serbia.

14th: The Serbian Orthodox Church and its believers welcome 8 CorD 78 / January 2011

February

Politics 4th: Serbian Interior Minister, Ivica Dačić, visits the headquarters of the Central Intelligence Agency (CIA) in Washington and talks with officials about the fight against terrorism and illegal drug trafficking.

18th: The State Revision Institution of Serbia (DRI) files minor charges reports against 11 ministers from the current and previous Serbian governments due to a misuse of the 2008 budget.

18th: High representative of the European Union for Foreign Affairs and Security, Catherine Ashton, visits the Western Balkans for the first time.

Economy 1st: Full application of the Interim Trade Agreement between Serbia and the EU, whose ultimate goal is creation of a free trade zone, is commenced.

5th: Public company Srbijagas and Russian Gazprom sign a contract on the foundation of a mutual company for the underground storage of gas ‘Banatski Dvor’.

24th: Montenegrin air company ‘Montenegro Airlines’ establishes a route between Niš and Podgorica.

Culture 20th: The 38th FEST opens in the great hall of the ‘Sava Centre’.

Sport 28th: The best Serbian tennis player, Novak Ðoković, defends his title at the ATP tournament in Dubai.

March

Politics 5th: Serbia and Bulgaria sign an agreement in Brussels for the construction of a system for the connection of gas lines between the two countries.

31st: The declaration condemning the crime in Srebrenica is adopted

tion Centre in Serbia is opened.

26th: The Serbian government decides to sell 40 percent of Telekom Srbija’s state-owned shares.

Society 3rd: Momo Kapor, one of Serbia’s most famous and widely-read Serbian writers passes away.

12th: Dušanka Kalanj, anchor and host of Television Belgrade, passes away.

28th: Students of the Mathematics High School of Belgrade win two silver and two bronze medals at the traditional Maths Olympiad in Russia.

Sport 4th: The national Serbian football team qualifies for the FIFA World Cup in South Africa, by defeating Romania 5-0.

26th: Jasna Šekarić, of the Serbian national archery team wins the gold medal in small-calibre shooting at the world Cup in Sydney.

27th: At the international archery tournament in Dortmund, Germany, Nemanja Mirosavljev wins the bronze medal in small-calibre rifle shooting in the ‘three positions discipline’ .

April

Economy

Politics

12th: The Board of Directors of the European Investment Bank (EIB) approves the first 10 million euros for the reconstruction of Gazela Bridge in Belgrade.

18th: The first Consumers’ Protec-

8th: Deputy of the American State Secretary, James Steinberg, visits Belgrade and Priština as part of his Balkans tour.

24th: In Istanbul the Serbian President Boris Tadić and Turk-

ish President Abdullah Gul sign a declaration expressing readiness to secure regional peace, stability and prosperity.

27th: The Italian head of diplomacy, Franco Frattini, makes an official visit to Serbia giving another strong signal from Rome that Serbia is welcome in the EU.

Economy 7th: The IMF deposits 180 million euros into the account of the National Bank of Serbia from the ‘standby’ arrangement.

8th: The Minister of Economy and Regional Development, Mlađan Dinkić, hands the first contracts to young volunteers-trainees and employers as part of the ‘First Chance’ programme for 2010.

12th: A purchase contract with Korean factory ‘Jura’, worth about three million euros is signed at the ‘Zastava Elektro’ factory in Rača.

Society 11th: Serbian chefs win second place and a silver cup in the ‘Grand Prix- Black Box’ category at the eighth International Gastronomy Festival in Istanbul.

18th: At Lazarica church in Kruševac, His Holiness Patriarch Irinej presents the Medal of Holy Emperor Constantine to the Serbian Minister of Culture, Nebojša Bradić, for his contribution to the restoration of the historical church complex in Kruševac.

21st: The new Avala Tower, destroyed during the NATO bombing of 1999, is opened.

23rd: Serbian Deputy Prime Minister for European Integration and Minister of Science and Technological Development, Božidar Ðelić, signs an agreement on scientific-technological develop-

ment between the governments of Serbia and the USA in Washington.

Sport 10th: Serbian football selector, Radomir Antić, is presented with the ‘Best European 2009’ award at the Belgrade City Hall.

May

Politics 13th: The Presidents of Serbia and Azerbaijan, Boris Tadić and Ilham Aliyev, sign six bilateral documents which create the legal foundation for the development of Serbian-Azerbaijani relations in Baku.

17th: By signing the Memorandum of Understanding in the Fight against Corruption, Serbia joins the Regional Anti-Corruption Initiative (RAI).

20th: American tourist and business visas for Serbian citizens are extended from three years to 10 years.

28th: Serbian Deputy Prime Minister and Minister of the Interior, Ivica Dačić, and Europol Director, Rob Wainwright, sign a Memo of Understanding at The Hague, as part of a road map for Serbia’s co-operation.

ECONOMY 7th: The National Bank of Serbia (NBS) increases the limit of the monthly credit rate from 30 to 40% of incomes, and for housing loans from 50 to 60% 7th: The Serbian and Austrian governments sign an agreement on the avoidance of double taxation for individuals and companies on property and income.

7th: The first electric car, made on the platform of the Zastava 10, is registered in Kragujevac.

29th: Representatives of leading

companies from Denmark, Finland, Norway, Iceland and Sweden which do business in Serbia establish the Nordic Business Alliance.

Society 3rd: The 90th anniversary of the re-establishment of the Peć patriarchy and 60th anniversary of the repose of Serbian patriarch Gavrilo Dožić, is celebrated at the theological faculty.

5th: Holy Assembly of Bishops of the Serbian Orthodox Church (SPC) decide at their meeting in Belgrade that Patriarch Irenaeus will be officially enthroned on October 3, 2010 at the Patriarchate of Pec. 14th: The first hearing on the report of the State Revision Institution (DRI) against Serbian Minister of Trade and Services, Slobodan Milosavljević, is held in Belgrade Magistrates Court.

Culture 28th: Actor Lazar Ristovski wins the ‘Sergei Bondarchuk’ for an extraordinary contribution to world cinematography at the international film festival ‘Golden Knight’ in Moscow.

30th: Serbian representative, Milan Stanković comes 13th at the 55th Eurovision Song contest in Oslo with 72 votes singing Goran Bregović’s song ‘Ovo je Balkan’.

Sport 22nd: Swimmer Nađa Higl, archer Andrija Zlatić and waterpolo player Vanja Udovičić are laureates of the ‘May Award’ of the Sports Federation of Serbia for their successes in 2009.

14th: Ministers of Foreign Affairs in the European Union decide at a meeting in Luxemburg to suggest the ratification of the Stabilisation and Association Agreement of the EU and Serbia to their countries’ parliaments.

25th: Deputy Prime Minister and Minister of the Interior, Ivica Dačić, and Austrian Minister of the Interior, Maria Fekter, sign a protocol on the application of the Readmission Agreement.

29th: Due to criticism of the Anticorruption Agency, the proposition of changes to the law on the institution are withdrawn.

Economy 8th: The European Bank for Renewal and Development (EBRD) publishes the invitation for public acquisition of the highway project for Corridor 10 in the south of Serbia, from Niš to Dimitrovgrad.

11th: The Agency for Privatisation terminates the purchase contract for ‘1st May’ confection from Pirot, which was purchased in 2007 by Belgrade businessman Ðorđije Nicović.

17th: ‘Orion Telekom’, the second operator of fixed telephone lines in Serbia, starts providing services of wireless in Belgrade.

21st: Pharmaceutical company ‘Galenika’ opens a new factory producing pills and capsules in Zemun, into which more than 50 million euros has been invested.

June

Politics 10th: The memo which will ease the cooperation of Serbian and Argentinean police in the fight against organised crime and illegal drug trafficking is signed in Argentina.

IvicaDačić, Deputy Prime Minister and Minister of the Interior

CorD 78 / January 2011 9

Serbia in 2010

Society 1st: Electronic registries are introduced in Belgrade, Novi Sad, Valjevo, Leskovac and Kragujevac.

12th: Citizens of European Union member-countries, as well as Switzerland, Norway and Iceland, need only an identification card to travel to Serbia.

26th: A group of 1,500 bikers heads to Kosovska Mitrovica as part of the charity event ‘Bike Rock Mission 2010’.

Culture 4th: British pop super-star, Elton John, performs for the second time in Belgrade, after 26 years.

10th: Eric Clapton performs for the third time in Belgrade, with multiinstrumentalist Steve Winwood in a packed Belgrade Arena.

27th: At the Summer Stage in Niš Fortress, Josipa Lisac holds a humanitarian concert within the ‘Art of Giving’ event; the profits of which are used for the construction of the first safe house in the city.

Sport 13th Opening ceremony of the FIFA World Cup in South Africa.

For the first time in history, Serbia was represented as an independent nation in the FIFA World Cup.

Dejan Šoškić, Governor of the National Bank of Serbia

19th: The Serbian male handball national team qualifies for the 2011 World Cup in Sweden.

27th: Serbia’s best swimmer, Nađa Higl, wins first place at the Open Championships.

July

Politics 5th: The 15-year anniversary of The Hague Tribunal raising charges against former President of the Republic of Srpska and former commander of the RS army, Ratko Mladić.

17th: Croatian President Ivo Josipović makes his first official visit to Serbia.

22nd: By a vote of 10 to four the International Court of Justice in The Hague states its findings that “the declaration of independence of the 17th of February 2008 did not violate general international law because international law contains no ‘prohibition on declarations of independence’.

27th: The extradition Court in London refuses to extradite to Serbia the former member of the war Presidency of BiH, Ejup Ganić, charged with war crimes over JNA soldiers in Dobrovoljačka Street in Sarajevo in 1992.

28th: Serbia submits to the General Assembly of the United Nations the draft of a resolution suggesting the proceeding of talks regarding Kosovo, but not the re-opening of status talks about the former province.

Economy 1st Croatian ‘Atlantic Group’ becomes the new majority owner of ‘Droga Kolinska’.

3rd: ‘Elektroprivreda Srbije’ and Italian company ‘SECI Energia’ sign a contract on the establishment of

10 CorD 78 / January 2011

the joint economic organisation of ‘Ibar Power Plants’ which will construct 10 hydro power plants on the River Ibar.

28th: Republic Parliament vote in Dejan Šoškić as the new Governor of the National Bank of Serbia.

30th: Construction of the first section of the Belgrade-Southern Jadran Highway, from Lajkovac to Ub, is commenced.

Society 18th: The constitutive session of the newly established Society of Matica Srpska (MS) in Montenegro is held, and Professor Radojka Vukčević, PhD, is elected as the first president.

Culture 19th: Serbian President Boris Tadić symbolically presents Croatian President Ivo Josipović with an icon of the Holy Mother of God from the church of St. Dmitry in Dalj, within the programme of the restoration of cultural goods brought from Croatia during the war.

Sport 18th: Serbia’s national waterpolo team triumphs at the finals of the World League over the defender of the title, Montenegro, at the final match in Niš.

25th: The Serbian national female volleyball team defends its trophy in the European League.

August

Politics 2nd: According to classification of the American foreign politics magazine ‘Foreign Policy’, based on 12 criteria, Serbia finds itself in the group of countries ‘in danger’.

4th: Italy ratifies the Stabilisation and Association agreement between Serbia and the European Union.

5th: Cable distribution system PTT stops airing an HTV programme during a show about the celebration of ‘Storm’.

27th: The Serbian government adopts the text of the extradition agreement with Montenegro.

30th: American ambassadors to NATO and the European Union, Ivo Daalder and William Kennard, talk with Serbian officials in Belgrade.

Economy 2nd: International agency for determining ratings, Dunz&Bradstreet, maintain Serbia’s DB4d rating (moderate risk) in the July report.

2nd: German media group VAC announces it is ready to withdraw from the entire South Eastern European region.

7th: In Varna, Bulgarian Prime Minister Bojko Borisov and Boris Tadić announce that it has been agreed that Serbia will participate in a project for the construction of a nuclear power plant at Belene.

17th: The first ship to travel on the Budapest-Belgrade -Constance route for the transportation of containers on the Danube sails from the Port of Belgrade.

Society 2nd: European Roma commemorate the Remembrance of the Roma Holocaust Day in Auschwitz with appeals for tolerance.

20th: Former Ambassador of Japan to Belgrade, Tadashi Nagai, is awarded as the ‘Honorary Citizen of Belgrade’.

Culture 13th: With the participation of 2,000 performers, 400 of which came from abroad, the 50th Dragačevo Brass Orchestra Fair is held in Guča.

Sport 1st: Member of the Serbian national archery team, Andrija Zlatić, comes fourth in small-calibre gun shooting at the World championship in Munich, thus becoming our first sportsperson with a visa for the Olympic Games in London in 2012.

28th The opening ceremony of the World Basketball Championship in Turkey. Serbia wins the 4th place.

September

Politics 1st: Serbian President Boris Tadić supports the initiative for establishing a regional commission for determining the facts about warvictims in the Balkans.

9th: The joint resolution of Serbia and the EU concerning Kosovo is adopted in the United Nations General Assembly.

28th: The Israeli Embassy to Serbia states that the agreement on the cancelation of visas between Serbia and Israel will come to fruition.

Economy 1st: The agreement on free trade between Serbia and Turkey is commenced.

Hilary Clinton, USA State Secretary

12 CorD 78 / January 2011

8th: The Serbian government approves the direction for market reserves, in order to stabilise the market, and intervenes by selling five million litres of refined sunflower oil at the price of 119 dinars per litre.

9th: Representatives of the Serbian, Croatian and Slovenian Railways sign in Belgrade a protocol on the harmonisation of the founders’ act of the Alliance of Railways on Corridor 10 and a protocol on the foundation of a new railroad transport company called ‘Cargo 10’.

9th: Serbia drops three places on the list of 139 countries ranked according to their competitiveness and is now at 96th position with an index of 3.84.

Society 8th: New taxes are introduced – a fee is charged for staying in protected natural habitats; taking a car into the area of Kopaonik costs 200 dinars; and hiking the area of Kopaonik costs 100 dinars.

10th: In Vienna, Serbian Patriarch Irinej is given the Charter of the Protector of the ‘Pro Oriente’ foundation, dedicated to cooperation with the Orthodox and Old-Oriental churches.

16th: Proceedings are commenced before the High Court in Belgrade for Dragoljub Draža Mihajlović, commander of the Royal Army in the Fatherland, who was shot on July 17th 1946.

17th: The first ‘Oktoberfest’ is held in Belgrade organised by the German Business Association 17th: A memorial plaque to the Frenchman Brice Taton is unveiled at Obilićev Venac, at the location where he was beaten and killed by hooligans in 2009.

Culture 21st: The leading ballet soloists of the Mariinsky and Bolshoi Theatre perform in the Sava Centre as part of the ‘Days of Russian Spiritual Culture’ in Serbia.

24th: American hardrock band Guns N’ Roses create a spectacle at the Belgrade Arena in front of about 13,000 fans.

Sport 2nd: Member of the Serbian national team, Zorana Arunović, comes first on the September list of the International Federation of Archery Sports in the discipline of the air gun.

12th: Serbia’s national waterpolo team wins the bronze medal at the European Championships.

October

Politics 12th: USA State Secretary, Hilary Clinton, visits Belgrade.

15th: The Serbian parliament adopts the declaration condemning all crimes against Serbian people during armed clashes on the territories of the former Yugoslavia during the 1990s.

24th: The European Union Council of Ministers at the session in Luxemburg unanimously adopts the decision to pass on Serbia’s request for membership in the EU to the European Commission, and at the same time asks the EC to prepare an opinion on the readiness of Serbia to commence membership talks.

Economy 4th: The first cargo train of the joint railroad companies of Serbia, Croatia and Slovenia ‘Cargo 10’, departs from the railway station in Batajnica for Slovenia.

8th: The Board of Directors of the Post Office reaches a decision on the transfer of 80% of Telekom Srbija’s shares to the Serbian government.

15th: Italian ‘low cost’ airline ‘Wind Jet’ cancels flights from Niš to Forli airport near Bologna, in Italy.

Society 3rd: Serbian Patriarch Irinej, the 45th head of the SPC, is solemnly sworn to the position of the head of the Serbian Orthodox Church in the Peć Patriarchy.

5th: The 10th anniversary of the large demonstrations in Belgrade which ended the rule of Slobodan Milošević.

5th: The plaque in the street bearing the name of murdered journalist Slavko Ćuruvija is unveiled in Dedinje, Belgrade.

10th: The Pride Parade under the name of ‘Let’s Walk Together’, organised by the Gay-Straight Alliance and Quiria Centre, is held in Belgrade.

10th: With the aid of the Ministry for the Diaspora, classes of the Serbian language will be organised for the first time in Kuwait, the Czech Republic, China, Ireland and Argentina.

Culture 20th: Belgrade actor Miki Manojlović wins an award for the best acting at the GSIFF (Gotham Screen International Film Festival) for his role in the Croatian movie ‘Keep it Between Us’.

25th: The 55th Book Fair opens in Belgrade.

Sport 31st: Serbia’s national men’s team wins the gold medal in the team competition at the World Championship in karate, in Belgrade.

November

Politics

Economy 1st: Economic summit of Serbia is held in Belgrade 2nd: The biggest zinc factory in the Balkans, worth 21 million euros, is opened in Inđija.

11th: Technical negotiations with the Turkish partners interested in buying ‘JAT Airways’ begins in Istanbul.

12th: Global credit ratings agency

Society 3rd: Two people die and almost 50 are injured in a 5.4 magnitude earthquake which hits Kraljevo, and which was also felt throughout most of the country.

7th: Students of the Belgrade Mathematical High School win first place at the ‘Mathematical All-round Competition’ in Moscow, in both the team and individual categories 8th: The beginning of the work of the communal police, formed by eight cities in Serbia, is marked by their promotion in Serbian parliament.

11th: The law banning smoking in closed public areas and workplaces commences and is accompanied by fines of up to a million dinars for breaching the regulation.

17th: Davor Novović of Belgrade swims 5,540 kilometers of the Amazon in 46 days - swimming 16 hours a day and covering 118 kilometers daily.

Culture 21st: At the eighth competition of the ‘Children’s Eurovision Song Contest’ held in Minsk Arena in Belorussia, Serbian representative, Sonja Škorić (14) wins third place with the song ‘Čarobna Noć’.

26th: President of the Olympic Committee of Serbia (OKS), Vlade Divac, is elected to the Executive Board of the World Association of National

Olympic Committees.

December

Politics 2nd: Serbian citizens will not require visas for Japan from 2011, Minister of the Interior, Ivica Dačić, says after talks with the Deputy Minister of Foreign Affairs of Japan, Hisashi Tokunaga.

8th: Swedish Minister of Foreign Affairs, Carl Bildt, meets with Vuk Jeremić, Serbian Minister of Foreign Affairs in Belgrade. Sweden fully supports the European road of Serbia, says Vuk Jeremić at the end of these talks.

8th: Deputy Prime Minister, Božidar Ðelić, gives the questionnaire from Brussels to MPs. 9th: The Minister of Foreign Affairs decides that Serbia will not to attend the Nobel Peace Prize ceremony. The European Commission has misgivings about Serbia’s choice.

9th: Serbian Prime Minister, Mirko Cvetković, confirms that Ombudsman Saša Janković, will represent Serbia at the Nobel Prize ceremony in Norway.

13th: The Serbian Progressive Party commences collecting signatures for the altering of the Serbian Constitution, so as to reduce the number of MPs to 125. The goal of the SNS is the harmonisation of state administration and the reduction of state expenses, according to the leader of Progressives, Tomislav Nikolić.

cial discipline, are adopted.

10th: Seven companies are competing for the purchase of ‘Telekom Srbija’. The deadline for submissions is 21st February.

Society 2nd: According to the agreement with countries of the former SFRY, all pensioners, regardless of where they are living, will receive a pension from the country into whose fund fees were paid during their working life.

8th: 17 monks, loyal to the unfrocked Bishop Artemije, are returned to the level of laics by the Great Church Court of SPC. A temporary ban of priesthood is also put over them, and as laics, in the future they will belong to the churches where they live. The decision of the Church Court is final.

11th: Due to the shortage of gauzes on the market and in some hospitals and clinical centres in the country, such as those in Pančevo and Kraljevo, operations, except for emergency cases, are postponed.

Serbia in 2010

2nd: Serbia and Montenegro exchange the first people accused or convicted of certain criminal acts, as stated by the Agreement on the Extradition of Citizens, signed in Belgrade.

10th: The European Commission presents a report on Serbia’s progress toward the EU. The main objections raised are aimed at the arrest of Ratko Mladić and reforms of the judicial system.

12th: Members of the Permanent Delegation of Serbia’s National Assembly participate in the NATO Parliamentary Assembly in Warsaw.

18th: Serbia’s government adopts the rebalance of the 2010 budget, which plans for an income of 660 billion dinars and expenses of 780 billion dinars - a budgetary deficit of $120 billion dinars.

21st: The book of standards for the Republic of Serbia’s emblem and flag appearance is finally adopted. The ‘C’ symbols and the lilies are changed, and the blue colour on the flag is now a darker shade.

24th: The questionnaire of the European Commission is delivered to Serbia.

Fitch improves Serbia’s ratings from ‘negative’ to ‘stable’ in terms of the forecast for a long-term credit rating.

15th: ‘Avala Resources’ daughtercompany of ‘Dandi Plemeniti Metali’, finds a string of gold, 52 metres long, on the Black Peak in eastern Serbia.

Sport 5th: Serbia wins the Davis Cup, beating France in the finals by 3:2. The decisive victory was scored

by Viktor Troicki over Michael Llodra - 6-2, 6-2, 6-3.

Economy

Novak Đoković,

2nd: The Serbian government decides to increase premiums for milk to four dinars per litre. Changes of the Law on Payment Operations, which are to provide greater finan-

member of the Tennis team of Serbia

CorD 78 / January 2011 13

interview JELKO KACIN, oBSeRveR To The eURoPeAN PARlIAMeNT foR SeRBIA

three crucial

indicators The three most important indicators of how dedicated the Serbian government is to the reform effort are cooperation with the ICTY, a positive approach to and the outcome of the upcoming dialogue with Kosovo, in addition to a thorough revision of the achieved results of the reform of the judiciary

By Jelena aLeksić

T

he European Parliament in January is expected to adopt a resolution on Serbia’s progress toward the EU, the draft of which was adopted on the proposal of Jelko Kacin, Observer to the European Parliament for Serbia. In his interview with CorD magazine, Mr Kacin discusses what amendments have been adopted, and responds to the question of what will be the biggest challenges during the integration of Serbia to the EU in the years to come.

We talk with Mr. Kacin about the questionnaire that Serbia is required to answer, and also the situation in Sandžak and the current hot topic of Wikileaks.

■ On your initiative, at the beginning of December, the Committee on Foreign Affairs of the European Parliament adopted, with 51 votes, a draft of Serbia’s European integrations. The Committee also supported the ratification of the Stabilization and Association Agreement. You then said that it was, “until now, the most positive resolution”. What in particular were you referring to?

- The approach to drafting European Parliament (EP) resolutions is that they should start off with commending the positive trends. In the case of this resolution, we have pointed out some of the areas where substantial progress has been achieved. Belgrade’s decision to reach a com-

14 CorD 78 / January 2011

promise with the EU regarding the UN resolution on Kosovo in September 2010 is a very positive turnabout in the Serbian government’s position on the Kosovo issue. The resolution commends this decision and calls for the prompt beginning of a dialogue. Among other things, the EP also welcomes the work that has been carried out by the Ombudsman and other independent bodies such as the Anti-Corruption Agency.

between the countries of the region. This entails that all countries’ institutions are capable of carrying out reforms leading to membership of the EU. This is particularly important in the case of BiH. ■ You have invited the remaining 16 countries, who have not done so, to ratify the Stabilization and Association Agreement with Serbia. What are your expectations, if the remaining countries do ratify the agreement?

- Besides calling on these countries to ratify the Agreement I also warned the Serbian authorities that they have to make sure they will do everything on their part to locate, arrest and hand over the remaining ICTY fugitives to The Hague. Ratification of the Stabilization

■ You have also said that it was Serbia’s opportunity for speedy reforms which would bring it closer to the EU. In your opinion, with which reforms will Serbia have the most work to do on its road to the EU? - Apart from the cooperation with the International Criminal Tribunal for the former Yugoslavia (ICTY) and delivering specific results in the upcoming dialogue with Priština - these two challenges still constitute fundamental preconditions for Serbia’s progress in the European integration process - reform of the judiciary and economic recovery are and will be central challenges of the current and future Serbian governments. It is well known that the rule of law is central Copenhagen criterion which Serbia needs to meet fully. The EU welcomes the beginning of the reform of the judiciary, but there are serious concerns about the way this reform has been carried out. I welcome the assurances the Serbian government gave us that it would thoroughly revisit the whole process of the election of judges I have a professional and excellent and prosecutors.

relationship with Ms. Delević, as well as

and Association Agreement (SAA) will hardly be possible in some member-states unless cooperation with the ICTY is assessed as complete.

■ Prior to the beginwith Ministers Malović and Dačić. As a ning of the voting on political liberal and member of the ELDR I the Resolution, or the also maintain close contact with the LDP Agreement, 18 amendments were adopted.

■ In your opinion, how long will it take Serbia to What did in particular did these amendments refer answer the questionnaire which Stefan Fule, the EU to, and to what extent did they alter the original text enlargement commissioner, recently brought to Belof the resolution? grade, considering the fact that the answers to the - These were 18 compromise amendments, which inquestions are just a formal consequence of a great corporated over 60 original amendments. They largely amount of work which needs to be done prior to focused on specific issues like the danger economic mothis? nopolies pose for the development of a fully functional - Belgrade should take all the time needed to give full market economy, or the influence Belgrade has in BiH and complete answers to all questions. I need to point and Kosovo and how it should use this leverage. We out that Belgrade in a way sends ‘answers’ even now, should go beyond the policy of merely keeping stabilby sending political messages to the region, the EU and ity in the region: both the EU and Serbia should work the world. Unfortunately, the latest case was harmful together at fostering truly friendly ties of partnerships

Reform There are serious concerns about the way judiciary reform has been carried out.

Relationship I have an excellent relationship with Ms. Delević as well as with Ministers Malović and Dačić.

Wikileaks It revealed that the Obama administration's tough diplomacy is working very hard on all contemporary issues.

CorD 78 / January 2011 15

mentioned in several topics on which to Serbia’s image in the EU. The deciBelgrade will state its opinion: getting sion that Belgrade wasn’t supposed biometric passports, Serbia’s tax policy to be represented at the Nobel Peace toward the EU and so on. Which critePrize ceremony in Oslo was a regretria will the EU apply during valorisatable one, and in contradiction to the tion of the answers sent by Serbia?

EU policy. This is the ‘wrong answer’ - As the Observer to the EP for Serbia, sent by Serbia. On the other hand, I I don’t want to comment on the work feel I must express my admiration for carried out by the Commission. the swift and resolute reaction of the Serbian civil society players and the ■ You took part in the European ParOmbudsman. They managed to steer liament monitoring mission in the public opinion in the right direction: Kosovo elections which were held on in a way they made the government Sunday 12th December, and several endorse Mr. Jankovic’s decision to attimes now you have called on Serbs tend the ceremony in Oslo. I welcome to vote in these electhe fact the OmbudsRatification of the Stabilization and tions. How is this elecman and non-governmental organisation Association Agreement (SAA) will hardly tion important for the upcoming dialogue (NGO) representatives be possible in some member-states between Belgrade and rose to this occasion. unless cooperation with the ICTY is Priština, and are you satisfied with the elec■ In this sense, is it reassessed as complete tion process? alistic for Serbia to win - This election was particularly important as it was the candidate status by the end of 2011, as the authorities first parliamentary election since Kosovo declared indein Belgrade have been declaring? pendence. Overall, the elections weren’t marred by fraud - Yes, it is - as long as the crucial benchmarks are fuland widespread irregularities. However, some serious alfilled. I will single out the three most important ones: legations of fraud were brought to the attention of the cooperation with the ICTY, a positive approach to and delegation. We encouraged the authorities to follow the the outcome of the upcoming dialogue with Kosovo, proper legal procedures regarding these cases. All perpein addition to a thorough revision of the achieved retrators should be prosecuted in line with the law. sults of the reform of the judiciary. There are many On the other hand, it is very encouraging that memother important benchmarks that need to be met, but bers of the Serbian community are increasingly particithe three I have just outlined are the most important pating in the election process. This is a positive trend indicators of how dedicated the Serbian government and we welcome it. I hope that Kosovo Serbians living is to the reform effort. in the north of Kosovo will start participating in Kosovo politics as soon as possible, for therein lies their ■ Kosovo is not included in the questionnaire which future and sustainable life in Kosovo. the European Commission sent to Serbia, but it is These elections are key to Kosovo’s democratic tranGreatest challenges sition. I hope that the next government will be stable, that it will include representatives of minorities, and will approach the upcoming dialogue with Belgrade in ■ From your experience and the experience of Slovenia, what do a constructive way. you expect to be the greatest challenges for Serbia on its road to Europe?

- Let me put it this way: Serbia needs to engage in a serious and in■ On several occasions, you have repeated that the depth dialogue with Brussels. We often speak of the European integrarights of the Bosniaks in Sandžak are being jeopardtion process of the Western Balkan countries, and this expression parised. How closely is the EU monitoring the events in tially reflects what is occurring on the ground. However, only with the Sandžak, and what is the biggest objection to the relabeginning of the accession negotiations does European integration tionship of Serbian authorities toward this matter? truly begin. Political necessity is that negotiations are understood as a - Protection of minorities is one of the Copenhagen Cridialogue between genuine partners. I welcome the signs that Serbian teria. When inter-ethnic incidents escalated in Vojvodileadership is becoming more prone to listen to the recommendations na in 2004, the EU sent a fact-finding mission, which recoming from the Commission than to dismiss them for domestic posulted in the stabilization of the situation. The current litical reasons. All specific issues that Serbia faces today stem from this situation in Sandžak is being closely followed by the failure to grasp who her partners are and how she should go about the EU and other bodies; as the Observer to the EP for Sercontemporary political landscape in Europe.

16 CorD 78 / January 2011

bia, I myself keep a close watch on the developments in the region. I welcome the ongoing dialogue between the three Bosniak lists that participated in the June elections for the minority council. On the other hand, the Ministry for Human and Minority Rights did not deal with the situation in an adequate manner.

■ When we talked last year, your relations with the authorities in Belgrade were not great. What are those relations like now? Who do you have best understanding with?

- My relations with Belgrade have been and will be fine. Unfortunately, in the past some politicians found it expedient to attack me for domestic political purposes. This hasn’t been the case recently. As Serbia is inching closer to the EU, I am not perceived any longer as ‘just’ Jelko Kacin, but also as one of the EU officials and partners in the European integration process of Serbia.

Through the nature of my work, I maintain a professional and excellent relationship with Ms. Delević and the Office for European Integration as well as with Ministers Malović and Dačić.

against Serbia joining the EU came to power, Serbia’s progress towards the EU would come to a halt. That is of course hypothetically. I do not think this development is even remotely possible. Otherwise, the EU will encourage any elected official to vigorously pursue the reforms leading to the membership of the EU. ■ What is your cooperation with the opposition parties in Serbia like?

- As a political liberal and member of the ELDR (European Liberal Democrat and Reform Party), I maintain close contact with the Liberal Democratic Party (LDP).

As the Observer to the EP for Serbia, I am also open to meeting all opposition leaders and officials. When Serbia joins the EU, all its citizens will become EU citizens, not just the current governing parties’ supporters, but the opposition ones as well.

Squid fisherman: As the season for squid fishing is approaching, Mr. Kacin will spend part of his Chrismas holiday on the Adriatic

■ General Mladić became the ‘eternal question’ and a permanent obstacle for the better understanding between Serbia and the EU. Based on which arguments do you claim that Mladić is in Serbia and which political forces, in your opinion, are behind his concealment?

- First off all, that’s the basic presumption of the chief ICTY prosecutor Serge ■ What is your opinion Brammertz. All intelliThe Ministry for Human and Minority on the ‘Wikileaks’ affair, gence assessments state that in all likelihood Rights did not deal with the situation in and do you expect this affair to possibly have any Mladić and Hadzić are in Sandzak in an adequate manner influence on future relaSerbia. A majority of secutions within the EU? rity experts thought that - No, I don’t think this affair will have any long-lasting Radovan Karadžić had been hiding in Bosnia, but as it influence on relations within the EU, or in the interturned out he had been in Belgrade all along. Nothing national community for that matter. If nothing else, it indicates otherwise in the cases of Mladić and Hadzić, revealed that the Obama administration’s tough diplobut of course, we will not know this for sure until they macy is working very hard on all contemporary issues are brought to justice facing the world today.

Regarding the political background, I know the fugitives don’t have political protection coming from the ■ It is well known that Slovenians spend their sumcurrent government. I won’t comment on what was gomer holidays looking for mushrooms in forests, and ing on in the past, as the special prosecutor is conductthe winter ones on the snow. How will you spend the ing an investigation into these issues.

New Year’s holidays and what do you hope for yourself in 2011?

■ In 2012, Serbia is expecting new parliamentary elec- As a Slovenian, I will certainly spend part of my tions. Nowadays, is there any political power in Serbia holidays on the snow. I am an avid skier, and I hope which, in your opinion, would be ‘undesirable for the I will have enough time both for alpine and cross EU’? country skiing. I also hope I will manage to go fish- Serbia is a sovereign nation with its electorate free ing in the Adriatic, as the season for squid fishing is to choose whomever they want to represent them. It approaching.

■ is obvious that if political parties who publicly argue

CorD 78 / January 2011 17

interview H.E. ALI RIZA ÇOLAK, TURKISh AMBASSADoR To SeRBIA

time for

cooPEration

After many uncertainties, to have created such a favourable atmosphere between Serbia and Turkey has been such a great accomplishment of the Serbian and Turkish governments

By Jelena aLeksić photo: Darko CvetaNović 18 CorD 78 / January 2011

T

urkey and Serbia have a long and chequered past but of late relations between the two countries have progressed on a solid route and seem to be going from strength to strength.

The new Turkish Ambassador to Serbia, H.E. Ali Riza Çolak, is confident that Turkey’s mutual cooperation with Serbia will continue to grow and has his eye on growing economic and political relations as well as intensifying relations in every field including investments, the economy, defence, culture and education.

Turkish Airlines and Jat Airways Currently there are high level talks taking place between Turkish Airlines and JAT Airways. The goal is to establish a partnership; not a takeover.At this stage it is very difficult to talk in any more detail as it could possibly jeopardise negotiations. This is a very sensitive business matter which involves many things including the destinations and flight rights. It is also too early to discuss when these negotiations will be finalised. economy and other aspects including the achievement of EU membership and cooperation with our allies in NATO. Our goal is to create an environment of peace, development, welfare and cooperation.

■ You have come to Serbia only recently and your arrival has coincided with the establishment of closer ■ In the first nine months of this year, foreign trade cooperation between Turkey and Serbia. What are exchange between our two countries amounted to your first impressions? $304.1 million. To what extent will the Free Trade - I consider myself very lucky to be in this country.

Agreement between the two countries affect the It was my intention to be assigned to Serbia and growth of this foreign so I am very grateful trade exchange? to be here. I have disThe motto of Turkey is “Peace at home, - The Free Trade Agreecovered a very favourpeace in the world” and this is the ment came in effect on able atmosphere, an basis of Turkish foreign policy because 01 September 2010 and extremely charming it makes a distinction people and a charming you need peace everywhere to sustain between industrial and city. We share almost development and cooperation agricultural products. everything – the same In terms of industrial jokes, food, and hospiproducts, Serbia’s exports to Turkey immediately took tality – so I did not really feel like a foreigner when I on a zero tax rating, whereas Turkeys’ industrial prodarrived three months ago. ucts will have their tax levels reduced incrementally and will not reach a zero-rating until 2015, which gives ■ In the last ten to fifteen years, Turkey has recorded Serbia’s industrial products advantage. In terms of agrisignificant economic growth and is now considered cultural products there is a list of preferred goods that one of the leading countries in the world, while also have zero-rated taxes. We expect the free trade agreefortifying its influence in the region. What are Turment to effect a substantial increase in bilateral trade key’s strategic goals for further economic and political between the two countries. development?

- We are still a developing country and have a lot to ■ In the trade exchange with Turkey, Serbia has reaccomplish. We have a goal by 2023, the hundredth corded a trade deficit of $133.3 million. Do you expect anniversary of the Turkish Republic, to be one of the Serbia’s deficit in trading with Turkey to diminish? world’s top ten economies. The motto of Turkey is - Before the global economic crisis our bilateral trade “Peace at home, peace in the world” and this is the bawas around $470 million. Looking at the figures for the sis of Turkish foreign policy because you need peace first nine months of 2010, we expect, with the help of everywhere to sustain development and cooperation. the free trade agreement, to reach and surpass the level We have recently added another important motto, of half a billion dollars in 2011. I think Serbia and Tur“Zero problems with our neighbours”, trying to remove key have a huge potential and it is not being fully realany remaining obstacles to excellent neighbourly relaised. Turkey is only a 70 minute flight away; in 14-15 tions. So we continue along these lines focusing on the

Goals Our goal is to create an environment of peace, development, welfare and cooperation.

Free trade We expect the free trade agreement to effect a substantial increase in bilateral trade between the two countries.

AID TIKA is the Turkish Cooperation and Development Agency; it works with a wide scope and in accordance with the local conditions of each country.

CorD 78 / January 2011 19

hours a truck can travel between the two countries. If Serbian industries and businessmen traded with Istanbul alone, which creates 22 percent of the Turkish GDP, it would double or triple the current level of trade.

Serbian businessmen need to travel to Turkey and also Turkish businessmen need to learn more about Serbia and to understand Serbia more. I hope the hard times are over and this is now a time for cooperation.

In terms of industrial branches, in these types of organised zones, there is no need to restrict the branch of industry - it could be textiles, electronics, automotive spare parts, household appliances, anything that reflects the Serbian government development requirements. Naturally there might be some restrictions based on environmental requirements.

■ So far, the Turkish International Cooperation & Development Agency (TIKA) has participated in the implemen■ The Turkish Labour and Sotation of 15 projects in Serbia, cial Security Minister Ömer with eight projects implementDinçer announced construced in Sandžak alone. What tion of an industrial zone in kind of projects are these and Sandžak County, worth €30 what criteria are used in their million. What kind of indusselection? trial branches will use - TIKA is the Turkish this zone?

Looking at the figures for the Cooperation and De- This proposed develfirst nine months of 2010, we expect,with velopment Agency; opment is in one of the help of the free trade it works with a wide the most interesting scope and in accordand strategic parts of agreement, to reach and surpass the ance with the localconthe Western Balkans level of half a billion dollars in 2011 ditions of each counbecause within 200km try. An office has now there are six capital citbeen officially established in Belgrade and from now ies. So, an industrial zone in this area will enormously on activities will be intensified. increase the economic, financial, and social interaction TIKA projects are extremely varied – from the conin this region and also in Southern Serbia. The amount struction of a school in Novi Pazar, to repairing the of €30 million is only for the start-up of the developroof of a hospital, providing emergency first aid trainment, and if I am not mistaken around 1000 compaing, building a water supply system to providing cernies will take part. taintypes of equipment such as computers and school We have informed the Serbian authorities that we equipment. are ready to support this project. Now it must be put in In terms of criteria, projects need to be development the Serbian development plan and there must be funds projects but the income level of the region is also taken allocated from the Serbian financial system. When it into account. It is always a very transparent process and is announced officially in the Serbian development infor large projects we use a tender process. TIKA’s role vestment and infrastructure programme, then we can is to consider the applications and then, without any start moving forward. discrimination, choose and realise the project.

What I am planning to advise TIKA, rather than Bosnia and Herzegovina waiting for only large projects, is to concentrate on smaller projects that can be completed quickly. In Bosnia and Herzegovina is a very important country. I see it as a smallthis way we can improve the living standards of the er scale of the Western Balkans. The future of this country is important. people, make them happy and give them an underWe approach this area in a positive way and we are ready to be in touch standing that this cooperation is working successwith any of the parties. We have historically close relations with Bosnia fully. This kind of positive environment will have an and Herzegovina, as well as with the Western Balkans and the whole effect on the perception of Turkish businessmen. We Balkans area. Bosnia and Herzegovina is still experiencing difficulties; must not underestimate the psychological effects of however I think that within the general framework, if we achieve comsuch assistance. mon understanding, there are no differences that cannot be solved, not only among Muslim communities but among anybody.

20 CorD 78 / January 2011

27 countries of the EU and ■ To what extent does the for some of them Turkey Serbian-Russian trade is an indispensible memagreement strengthen ber of the European sysSerbia’s capacity within tem so she must become a Turkish investors? member of the European - I think it is an incentive Union. In some countries for Turkish businesssupport for Turkish memmen to have easier acbership is low, in some cess to the Russian marcountries it is high, so the ket. However in terms EU is not homogenous. of Turkey’s foreign trade However the accession with Russia, in 2009 we negotiations will conexported $3.2 billion to tinue. EU membership Russia and imported is one of Turkey’s main $19.5 billion from Rusforeign policy goals. We sia, mostly in natural gas. value and cherish Europe.

In the first nine months Europe cannot be strongof 2010 we exported $3.2 er without Turkey. billion and imported We should concen$15.3 billion. So, altotrate on the way forward gether we have $20 bilThe accession negotiations because there are many islion trade exchange with sues. Some of them are relRussia already. But Serwill continue. EU membership evant to EU accession talks bia has special trade aris one of Turkey’s main foreign and some of them are irrangements with Russia policy goals. We value and relevant but are artificially in terms of tax exempput within the framework. tions etc, so it could be cherish Europe. Europe cannot So we try to convince our very useful. This is not be stronger without Turkey partners and our allies not the main factor however; to mix the two. the most important factor is not only the location of Serbia but also its other ■ What is your view of the current global political and resources. economic relations between Turkey and Serbia?

- After many uncertainties, to have created such a fa■ Turkey is a NATO member. What is your view of vourable atmosphere between Serbia and Turkey has Serbia’s attitude towards NATO? been such a great accomplishment of the Serbian and - I don’t want to comment on Serbia’s attitude towards Turkish governments. The Turkish Prime Minister NATO – this is Serbia’s business. However let me say has visited Serbia seven times within the last two that NATO is the most successful defence organisation, years; Serbian leaders visited Turkey as well. Personal and is not only a defence organisation but also a matter relationships were established. We have initially imof ideals, principles, democracy and human rights. So proved the political environment and created a greatthere are certain values represented by NATO which er understanding between the two countries and from are also Serbia’s values, because Serbia wants to be a now on we are working on intensifying relations in member of the European Union and EU values and every other field including investments, economy, deprinciples match exactly with NATO principles. NATO fence, culture and education. will continue to be successful and there is no alternaThe Serbian economy and social structure must contive to this organisation in the world. tinue to develop and improve, and I think that Turkey will continue to be a good partner and friend through■ For over two decades Turkey has been a candidate out this process. for EU membership, but it seems that Turkey and the EU are not in too much of a rush when it comes ■ What are your favourite places in Belgrade? to this issue. How much will the economic downturn - For the first time recently I visited a Serbian home as and financial problems that certain EU countries a guest, which was a great honour. I enjoyed my experihave been facing speed up or maybe slow down the ence immensely. So I would say that Serbian homes accession process? will be my favourite places.

■ - The Turkish EU relationship is too complex. There are CorD 78 / January 2011 21

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opinions

Balkan relations

Good neighborly relations with the countries of the region is one of the key requirements of EU integration, and of Serbia’s and the entire Balkans’ future in the EU. According to analysts, cooperation amongst the countries of the region has been good for a long period of time. For this reason Cord asked the Ambassadors of regional countries in Serbia:

What will be the priorities of bilateral political and economic relations between your country and Serbia in 2011? What are the prerequisites for achieving these goals?

H.E. Georgi DIMITROV, Ambassador of Bulgaria to Serbia

trans - Boundary cooperation The year of 2010 was marked by some very important steps on the European path of Serbia, most significant of which was the decision of the Council of Ministers of the EU to forward the Serbian application to the Commission.

As you may know, Bulgaria has always been a staunch supporter of Serbia in its bid to become

Work is underway on the Niš-Dupnica gas pipeline interconnection project that has to link our national gas infrastructures and ensure a steady supply of this commodity a member of the EU and in this respect we shall continue to assist with our knowledge and expertise in order to help Serbia prepare itself for the upcoming challenges of the integration process.

Furthermore, it is my conviction that a lot more remains to be done in the field of trans-boundary cooperation between our two countries. We have signed agreements on the opening of two additional border check-points at Salaš-Novo Korito and Bankja-Petačinci and these now need to become operational for the sake of the people 22 CorD 78 / January 2011

on both sides of the border. In today`s world, foreign policy and economy are closely interlinked. Bulgaria and Serbia have no major political issues that have to be resolved so our efforts should be focused on encouraging a more dynamic approach to economic cooperation. Both our countries have experienced serious difficulties as a result of the global financial crisis and I hope that 2011 will be marked by more visible signs of economic recovery in Bulgaria and Serbia which in turn could mark a new beginning in our cooperation. Serbia is steadily becoming part of the common European market with the application of the Stabilisation and Association Agreement and this can only encourage business people from both countries to come closer to each other.

One of the potential areas of increased cooperation is energy. Work is underway on the Niš-Dupnica gas pipeline interconnection project that has to link our national gas infrastructures and ensure a steady supply of this commodity. Both Bulgaria and Serbia are important participants in the South Stream project and the proposal of the Bulgarian government for a Serbian stake in the Belene Nuclear Powerplant project is further proof of the ever-growing integration of our energy systems.

Prerequisites: Political stability comes at the top of the list of prerequisites. Luckily, Serbia today is a country where the major political forces are united in their vision of the country`s future, which undoubtedly lies in the EU. This is a very important sign to all partners and foreign investors. It means that whatever changes happen in the political landscape they will not affect the overall orientation of Serbia and its devotion to the principles of modern Europe. From Bulgaria`s perspective we now have a neighbour who shares the same values as us and it makes it all the more easier to find solutions to all the issues we commonly face.

End succession

mote the connection of businesses from BiH and Serbia with a The priorities of bilateral joint approach to other markets (Iraq, Libya, and so on). The adrelations between Bosnia and Herzegovina and the Republic vantages of such participation are earlier experiences with similar jobs, common interests and the absence of language barriof Serbia in 2011 will be the promotion of general relations ers. Economic relations will be primarily sped up with the construction of highways and bridges which will bring the two between the two neighbouring countries. The aim of it is the countries even closer together, then the construction of joint development of comprehensive cooperation in all areas of muhydroelectric power plants on the river Drina which will be bentual interest. eficial for both parties.

At the bilateral level, the process of succession of the joint Prerequisites: Prerequisites for property of the former SFRY countries the achievement of the fore-mentioned and the final definition of the extension The process of succession goals are: trust, mutual respect, openof state borders should be completed, of the joint property of the ness, awareness of common interests, and the legal property rights between former SFRY countries and the and the removal of all barriers which the two countries should be resolved.

Economic relations are fine and final definition of the extension burden the relations of the two neighbouring countries. In the forthcoming cooperation between the two counof state borders should be period, meetings of officials on high and tries mostly takes place via the CEFTA the highest levels, both in Belgrade and agreement. Serbia is a significant partcompleted Sarajevo, are expected, with the aim of ner of BiH, from the standpoint of inbringing the two countries closer together in all spheres of bilatvestments and trade, so it is expected that 2011, economically speaking, will be followed by the initiating and signing of sig- eral relations: political, economic, as well as cultural. It is to be expected that the mutual direction of European integrations will be nificant agreements in the areas of economy, energy and the decided upon those meetings. defence industry. Development of economic relations will pro-

opinions

H.E. Boriša Arnaut, Ambassador of Bosnia to Serbia

H.E. Ljubiša Georgievski, Ambassador of Macedonia to Serbia

Good neighbourly relations

The main principle of our general relationship should be the principle of good neighbourly cooperation, not only because of the fact that this principle is the basic requirement for joining the EU for both countries, but also because it is the natural condition of coexistence for all neighbours. After all this, with what has taken place in the Balkans, even the very notion of good neighbourly relations has gone through at least a few, not only interpretational, but also structural changes, unfortunately for the worse. So, in order to set up good neighbourly relations in the Balkans, we should ‘Europeanise’ ourselves as soon as possible, meaning we should rationalise the possible and resist our emotions which are a reaction to things that are impossible, regardless of their obvious legitimacy. Nonetheless, as far as the forthcoming electoral year of 2011 is concerned, it is

important to say that it will be a ‘crucial’ year, because ‘cruciality’ in the Balkans might represent the only constant.

Prerequisites: The main prerequisite is a partial convergence of the geo-strategic goals of Serbia and Macedonia, mainly in terms of joining the EU. This convergence represents the area of the constant renewal of trust, which results in the renewal of traditionally good relations between

In order to set up good neighbourly relations in the Balkans, we should ‘Europeanise’ ourselves as soon as possible both nations, the field of mutual support in the process, and economic and cultural cooperation. In this sense, in terms of reforms as well as adjustment procedures to the European standards, and in the process of adopting European values in general, Macedonia will always be ready to help its most significant neighbour - Serbia.

CorD 78 / January 2011 23

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opinions H.E. Željko Kuprešak, Ambassador of Croatia to Serbia

More Balanced Trade

The development of bilateral relations with Serbia in 2011 will be aimed at: mutual strategic interest and support in cooperation in Euro-Atlantic integrations; maintaining the stability of the region and the development of good neighbourly relations; further progress in econom-

We are expecting an increase in cooperation between state institutions, especially in the area of internal affairs, the justice system, culture and the economy ic cooperation and the strengthening of regional cooperation, and constructive solutions to outstanding issues.

Croatia will continue to support Serbia’s European perspective, so we are expecting an increase in cooperation between state institutions, especially in the area of internal affairs, the justice system, culture and the economy. With the gradual exit from the recession of both countries, a new, although modest, break-through

might be expected. Our goal is more balanced trade, which is a good foundation for the promotion of other forms of economic cooperation.

There is also the continuation of the investment activities of Croatian businessmen in Serbia, and also Serbian investors more willing to enter the Croatian market. The establishment of air traffic, a better railway service, a greater level of tourism on both sides, energy links, and cooperation on the Danube and the Sava rivers - these are accomplishable goals.

Prerequisites: Political and economic relations will be in the spirit of advocating a more constructive dialogue and the full normalisation of relations. Croatia wants good neighbourly relations with Serbia in order to solve the remaining outstanding issues and to strengthen stability in the region. This requires a mutual willingness, a patient approach and time. Excellent cooperation on the political level, such as the recent meetings of the two presidents, are confirmation of the will and readiness of both countries to promote of good neighbourly relations and are an indication of the determination to solve bilateral issues.

Alongside the businessmen’s interest in the continuation and promotion of business, the states’ role in the creation and promotion of conditions and establishing a stimulating climate for it is also important, while the media should affirm examples of cooperation by providing real information.

H.E. Ion Macovei, Ambassador of Romania to Serbia

A Staunch Supporter tem of values. And I think, both as a neighbour and a future partner Romania has been a within the European Union, we should also encourage and reward staunch supporter of Serbia’s this appropriately, by building upon this momentum. integration into the European There is room for the strengthening of the pragmatic side of Union and will continue to do our bilateral relations with Serbia. The active involvement of both so with the firm belief that onRomania and Serbia in promoting concrete projects, especially ly a European Western Balkans under the umbrella of the EU Strategy for the Danube region, as and a European Serbia can fully contribute to articulating a stable and secure region. Serbia has come a long way these past few years well as on cross-border cooperation, will lend more substance to our bilateral relations. since I have been here. It has developed as a democratic country Prerequisites: I would not with clear European objecBoth as a neighbour and a future partner call them ‘prerequisites’ but more tives and this is a major influence in enhancing our bi- within the European Union, we should also accurately, I would say that a solid construction needs a solid founlateral cooperation both poencourage and reward this appropriately, dation. And by foundation, I mean litically and economically. by building upon this momentum continued consistency with the Also, Serbia’s active involveEuropean values, with the commitment in the process of recments to which we are all obliged, and, more technically, full comonciliation and cooperation in the region is a strong symbol of a renewed and pragmatic approach in the foreign policy, breaking with pliance with the Copenhagen criteria, also in the field of the protection of the rights of persons belonging to national minorities. the shadows of the past and fully consistent with the European sys24 CorD 78 / January 2011

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opinions H.E. Igor Jovović, Ambassador of Montenegro to Serbia

Highway Bar - Belgrade The priority is to nurture friendship, by affirming what connects us and repressing what divides us. Secondly, it is important to continue a very successful state dialogue, to which a contribution was the fact that in 2010 the Serbian president, Mr. Boris Tadić, visited

Traffic infrastructure will offer Montenegro a new continental dimension, and Serbia a quick and easy access to the Mediterranean Montenegro twice. Thirdly, the cooperation will remain to be focused on the exchange of goods and tourism, as well as on the increase of investments from Serbia. Montenegro has a vital interest in that, with its large import of goods, but also with a big number of tourists coming from Serbia (30% are foreigners). Our tourism is one of the best Serbian export products, considering the fact that a great deal of your goods and services, including seasonal work, has been implemented into it. That is why I am expecting that businessmen and citizens will continue nur-

turing that symbiosis. Besides, I hope that requirements needed to start working on the construction of the Bar- Belgrade highway, from both ends, will be met in 2011. It is high time we also sped up the activities on the reconstruction of Bar- Belgrade railroad, which should cost a mere 300 million euros, which is not a substantial sum considering the vast positive effects. Just imagine a situation where people and goods travel 4.5 hours from Belgrade to Bar. That traffic infrastructure will offer Montenegro a new continental dimension, and Serbia quick and easy access to the Mediterranean. The Bar- Belgrade transverse should become an axis of regional development, going through a passive area rich with resources. Finally, a good cooperation in health and education systems and culture, as well as energetics, ecology and so on, should be continued.

Prerequisites: That the states and the Region exit the economic crisis in 2011. We have to work hard for ourselves, but also aid each other by: creating more favourable conditions for investments; cancelation of ‘invisible’ barriers in trade, and improvement of political- security and legal ambience. In the Region, particularly this year, a lot has already been done on strengthening political understanding, legal security for citizens and entrepreneurs, not only in national, but also in broader frameworks, but those remain to be the most complex.

H.E. Franc But, Ambassador of Slovenia to Serbia

Solving Open Questions Prerequisites: In diIn 2010 Slovenia and its economy have been active and sucplomacy the ingredients for cessful in Serbia but also in the EU when it comes to advocating success when solving open Serbia’s European integration. Our main goal, i.e. visa liberalisation issues can normally not for Serbian citizens, was achieved in 2009, thus bringing the EU be defined in specific details. It is understood that the main preand the European way of life closer to people. This year Serbia’s reform process gained additional momentum with the forwarding of requisites are friendly and open relations on all levels of cooperation. The obligations of countries derive from different agreements Serbia’s EU application to the Commission. Our bilateral relations and understandings and we tend to reare friendly, open and future orientIn 2011 our aim will be to ensure spect that and also ask for it. The Prime ed. Open questions that exist mostly from our common past are expected that Serbia will remain strong and Ministers of Slovenia and Serbia have agreed that Slovenia is a great supto be solved partially in 2011, as was dedicated to its European path porter of Serbia’s foreign affairs prioragreed between the prime ministers ity, i.e. its path to the EU. Implementation of European standards on 2nd November. In 2011 our aim will be to ensure that Serbia and norms will result not only in achieving EU membership, but will remain strong and dedicated to its European path. Regardless will most of all will further democratise and develop Serbian socieof some open issues the economic cooperation and investments ty, eradicate the negative elements of corrupt or criminal business between Slovenia and Serbia are progressing in the normal way practices, thus making everyday rules equal and fair for all. and are increasing and strengthening.

26 CorD 78 / January 2011

Policy Without Prejudices

the visa regime for Serbian citizens. In October a delegation of the Ministry of Foreign Affairs, had talks with the Albanian side for the finalisation of agreements in the field of the free movement of the citizens of both countries, responding in time and positively the decision of the European Parliament for unrestricted moveDuring 2010, relations between Albania and ment in the Schengen countries, for the citizens Serbia have developed in the direction of evident of Republic of Albania, too. progress and are encouraging not only for the This is another prerequisite, an additional near future, but also in the long term. prerequisite for the two countries for the develThe designing of a common future, brings opment of their bilateral relations. In addition to this, the Albanian people closer together, it also formats a new civilised and democratic mentality, a new spiritual and material synergy, an attempt at side has proposed a series of draft-agreements covering the spheres of the economy, transport, and education which will furgaining back lost time, which has been characterised by being full ther influence the development of nervousness and traditionally Isn’t it surprising that for almost more of bilateral relations, and now emotional policies, unfortunatewe are waiting for a positive anly, being interpreted in the past, than a century, there has not been an swer from the Serbian side. as the pejorative customs and exchange of official visits, at high state Economic interests constitraditions of the Balkan people. tute the material factor in definIsn’t it surprising that for allevels, between Serbia and Albania?! ing the principles of collaboramost more than a century, there tion. Policy and diplomacy have to pave the way for development. has not been an exchange of official visits, at high state levels, beOne has to accept that policy, without prejudices and with a tween Serbia and Albania?!

Actually, we may with pleasure observe that, during 2010, the spirit of confidence, opens the road of good understanding and the prosperity between the two countries. The ‘economising of the relations between our two countries entered a new phase of mapolicy’ is also a principle which serves the policy, as an indication terialisation on the political plane, due to the new conception of for greater openness, for looking ahead, in a visionary way towards developments and the objective need for elaborating the possiour common future –integration in the European Union – the politbilities, offered by the bilateral interests for Albania and Serbia. ical component which brings us closer to each other.

Prerequisites: In April 2010, Albania abolished unilaterally

opinions

H.E. Shpëtim Çaushi, Ambassador of Albania to Serbia

H.E. Oszkár Nikowitz, Ambassador of Hungary to Serbia

Unique Opportunity We really wish to emphasise the importance of developing our good-neighbourly relations on a bilateral basis. Although the context of our EU-membership and our presidency in the first half of 2010 gives us extra leverage to promote Serbia’s integration, our main objective is to continue building good bilateral relations. We aim at preparing the soil for a number of infrastructure developments and of the energy sector, furthermore for cooperation in the framework of the Danube strategy and common initiatives that involve small and medium size enterprises on both sides of the border. Needless to say, this all will only be enhanced by our presidency in the EU for six months and we hope to be able to exploit this period to help Serbia to gain access to sources coming from the EU. In regards to our direct relations in respect of the field that is so important to us, i.e. national minorities, we are hopeful that the functioning of the Hungarian National Council in Serbia

will not be hindered by finance shortages throughout the year.

We are also optimistic that during 2011 we will get closer to the historical reconciliation of Serbs and Hungarians.

We are also optimistic that during 2011 we will get closer to the historical reconciliation of Serbs and Hungarians Prerequisites: For all this, I would say, are good will and determination of the two governments. The two countries, very simply, need each other as probably never before and it would be a historical miss not to exploit his unique opportunity.

CorD 78 / January 2011 27

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leaders

Economic Priorities in 2011 Unlike developed economies which have been struggling with the pangs of the economic crisis, the Serbian economy is also suffering but due to unfinished structural reforms, which have been exposed by the global crisis. Serbia is entering the new year with an unemployment rate of 20% and with 30% of the economy in the grey zone. Our domestic currency has lost almost a third of its value since the crisis began and about 200,000 people have lost their jobs. In this issue we asked Serbian businessmen and economists the following question.

What do you see as the three priorities for the Serbian government to implement in 2011?

Andreas Binder, CEO of Mercedes-Benz in Serbia

Reliable Business Environment

ed people in Serbia in the future, especially in management positions.

Many companies have to hire people from abroad for their important In my view the most important task for the positions which is a clear sign that the human resource market is curgovernment for the upcoming year is to increase rently not up to international standards and young people don’t have the confidence of investors and consumers alike the opportunity for a proper education. I think this will be a key sucin Serbia which requires certain measures. cess factor for each country in the long run.

First, there must be a reliable and sustainThe development of the automotive business next year depends on able business environment in Serbia for invesseveral factors. Main prerequisites will be the overall economical develtors. This requires clear and understandable opment as well as a proper tax framework which has to be established legislation, a drastic reduction of bureaucracy and last but not least, by the government. strict implementation of anti-corruption measures. Foreign investors For the automotive sector another important role is played by the base their investment decisions mainly on these factors. financial institutions. Funding of goods, especially in commercial vehiSecondly, it is important to stimulate the markets which can be cle business is only possible if banks and leasing houses offer more atdone either by the reduction of trade barriers and taxes, or by incentive tractive products and support the industry. programmes. The introduction of additional taxes as occurred in 2010 is Last, but not least the media companies are also important and not stimulating the market, it is rather counneed to give some confidence to consumers The most important task is to again. With all the above mentioned factors I terproductive for the local economy.

The third important task is to focus increase the confidence of am confident that we will already see a slight much more on human resources. There will recovery of the automotive business. investors and consumers be an increased demand for well educatSusan Fritz, USAID Mission Director to Serbia and Montenegro

More Transparent

and accountable relationship between elected officials and ordinary citizens. Serbia needs to embrace the recommendations of the lats the USAID Mission Director, I’ll answer this est EU Progress Report and adopt electoral requestion from the develop- form legislation. The third priority for the government should be to fulfil its commitment ment perspective. We feel to maintaining and strengthening the judithat Serbia has made great strides over the past few years in making much cial branch of the government. USAID has a long-standing and strong relationship with the needed reforms and moving toward EU inteMinistry of Justice and High gration. There is a danger, The government Judicial Council. The judicihowever, that the momentum could be lost if politicians should maintain and ary has recently undergone get distracted by the upcom- strengthen the judicial significant restructuring that ing elections and do not fobranch of government should lay the groundwork for making the court system cus sufficiently on the reforms more efficient and transparent. A strong judithat still need to be made. So, I would say the ciary is not only the key to effectively dealing first priority is to stay the course on economwith corruption, but also it is important for ecoic reforms. USAID will continue supporting nomic growth. In summary, all three reform arthe government to facilitate the growth of ineas are critical for both the people of Serbia vestments and exports. The second prioriand the country’s European integration. ty should be to establish a more transparent

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28 CorD 78 / January 2011

Tihomir Rajlić, General Director of Siemens Company

Law on Restitution

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he adoption and consistent application of the Law on Restitution is a priority; the solving of which must be raised as soon as possible by the government, which also has to stick to it without compromises. Such a law has long been adopted in countries with socialist order, and which are members of the EU today. The government will demonstrate its seriousness in creating legal security for domestic and foreign

Dragoljub Vukadinović, President of Metalac Holding

Vladimir Vučković, Professor of Economy

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here is a The final realisation of infraunique structural projects. The best way position in re- to help the economy and the lation to pristate is to connect the region orities: reand build infrastructural prereqstraining curuisites for normal business and rent spendthe connection of people. So far, ing for the sake of establishing there has been more talk and pro-investment growth. Whether posing for photos than actual the government is aware of the work. After the funds are distribseriousness of the situation will uted it is necessary to actually show up in the preparation of the work on the field. budget for 2011.

Directing the Based on the funds from the current situation, It is necessary to selling of Telekom the orientation distribute funds for to discharge it toward the satand infrastructurisfaction of the capital investments, al investments. In voters’ appetite is otherwise we might the pre-electoral stronger than deyear, the directing find ourselves in a of funds into provelopment imperatives. It is long crisis as soon duction is a great necessary to dischallenge. If that as 2013 or 2014 tribute funds for happens, moncapital investey will be spent ments, otherwise we might find for nothing and inflation and the ourselves in a long crisis as soon stronger depreciation of the dinar as 2013 or 2014 and there is a will be triggered. This will prove danger of great macro-economthe point of those who were ic instability. against the selling of Telekom. investors with the responsible return of property to its previous owners.

It is my deep conviction that in the year ahead of us, the government will have to contribute to the defining of a realistic exchange rate of the dinar against the euro, based on the clear and precise policy of the National Bank of Serbia. Such monetary policy must be provided with the strong support of the state and inde-

Fight Against Corruption

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eform of the public sector has to be one of the priorities, so that the level of public expenditure will near the strength of our economy. A reform of the efficiency of the systems of the judiciary, education, health care and other institutions’ work is necessary. It is essential to make the work of the republic and local administration more efficient, and then privatise state and local public companies. All this will lead to a better climate for investments which is the key for the increase of state revenues, exports, and employment and so on.

It is very difficult to work for years in economy or deal with any kind of business when you do not know with what exchange rate and inflation rate you will be going to bed with and waking up with. That is not a good business environment,

The grey zone is increasingly present and according to some estimates it makes up over one third of the market nor is it good for attracting foreign investors. We are here and we have to fight this problem, but new investors do not want to start a new business where you cannot make annual plans safely, let alone long-term ones, for 5-10 years, as a realistic deadline for paying off the investment.

The grey zone is increasingly present and according to some estimates it makes up over one third of the market. What does that lead to? I have the impression that the state is benevolent

vestors who are considering the possibility of investment into Serbia. Besides, a stable exchange rate founded on a realistic relationship between demand and supply can stimulate and strengthen the position of domestic exporters on the European and global market.

The unavoidable duty of the government is the fight against corruption without concessions and pardons. Corruption

Corruption is crumbling the foundations of society and is destroying the relationship of trust between citizens and state institutions pendence in relation to various spheres of interest and outside factors.

A variable exchange rate brings a sense of security to Serbia’s citizens, as well as to all domestic and foreign companies and in-

is crumbling the foundations of society and is destroying the relationship of trust between citizens and state institutions and the quality of relations between business partners. The best example of

the harmfulness of corruption is Bulgaria which was denied financial aid by the EU precisely due to the unreadiness of the neighbouring country in fighting corruption and organised crime.

We must not neglect the matter of solving ‘partisan’ people in the head positions of public companies. Namely the old rule that only party members can hold a certain position, which still applies, as well as that membership in a certain party and not values such as expertise, education and management abilities, actually ensure these positions.

This represents a huge problem, especially since we know that in areas with the largest investments such as infrastructure, public companies are led by so-called ‘partisan managers’, who are in those positions thanks to their ‘partisan’ membership and not due to their qualities and qualifications.

CorD 78 / January 2011 29

leaders

Capital Projects

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leaders toward this situation - let them work when we cannot offer them a job; at least they will not be on the street. Those who work and are burdened by high taxes and fees are negatively affected, and are made even less competitive.

Problems are no less significant when it comes to bribery, corruption and crime, so we are covered in affairs with organised crime connected most frequently with state institutions or public companies, on a daily basis. I am concerned about how much of it there is and that it is becoming a part of their profession for too big a portion of the population. Once you add the slow rate of investigations and the inefficiency of the courts, it is forgotten who is being charged, why and when it happened.

Unfortunately, according to the announcements of the state leaders and the moves they are making, we can expect that populist pre-electoral politics will be led in 2011, so I am expecting a much graver situation in 2011 than it has been in 2010.

Nemanja Popov, General Director of Centroproizvod

cy. This means that when the dinar devalues, purchasing power is weakened; companies’ profitability drops considering the fact that most companies are relying on imports, one way or another. I am not talking about the strengthening of the dinar, because I feel that this cannot be acor Serbia’s economic recomplished, except artificially, but make the stabilality, as well for predictity of the exchange rate the task. able changes, existing busiIn order to start the economic wheel it is necness conditions, great illiquidity and other numerous diffi- essary to create new and added values to the economy. The only way to do this is to invest in culties in the foreseeable future, I give the priority to exchange rate stability, economic investment the economy. When I talk about investments, I do not refer solely to foreign investment, but also doand employment. mestic investment. The government should turn The level of the exchange rate does not pose the wheel of investment through its own signifa problem for the economy, as long as it is stable. icant investment in the counEach significant exchange rate In order to start the try’s infrastructure. This provides fluctuation demands the adaption of the import-dependent economic wheel it is traction to a range of industries which rely on that main investeconomy. In the situation of frequent and significant exchange necessary to create ment line.

Employment is a conserate fluctuations the economy new and added values quence of a healthy economy or cannot stabilise, and thus it canto the economy an economy which is being innot grow stronger. I often hear vested into and is recovering. I think that it is diffiit said that a weaker dinar is a good thing for the stimulation of exports. This is true for stable econ- cult to raise the rate of employment without new investments into the economy. It is not necessary omies which are large exporters and whose curto elaborate on how higher employment turns rency is acknowledged in the world sphere. In the second wheel of economy called expenditure, Serbia, the weak dinar implies the reduction of without which not a single economy can survive. I purchasing power, and it has no influence on exwant to stress that this is the only long-term stratports, because each domestic company has its egy for a successful economy. own export price-list expressed in a solid curren-

Exchange Rate Stability

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Aleksandar Stevanović, Associate of the Centre for a Free Market

The Rule of Law

the European road, How to attract at least a few to continue populist politics. This is very the government will large investments, in additionimportant for hardhave to face even to the selling of Telekom? core voters who are more problems and primarily in the pubtry to win the eleclic sector. tions in 2011. So, it comes down to an exhe reform dynamThe second question is how to attract tremely uncomfortable position. It is to be ics are logicalat least a few large investments, in addiexpected that the focus is on matters which ly clear and the three tion to the selling of Telekom, to create are irrelevant for the success of the transimost important principles are the integrity an illusion of success and to slightly slow tion, but important for the re-election of of private property, the freedom of agreedown indebtedness in order to service curthe same or similar team. ment and the rule of law. However, due to rent expenditure. It is difficult to expect Serbia is facing a significant budgetary the fact that in Serbia there is no will to that investors will rush to Serbia, with the deficit. In the electoral year, the question complete the transition, the government’s current rhetoric. will not be whether Serbia will have a defhomework in 2011 should be observed Finally, there is the matter of the exicit, but how that deficit will be financed. from the standpoint of a team which is tinguishing of social discontent, which The government is expecting a series of good with words, but catastrophic when is largely due to the wide gap between negotiations with financers and it will tend putting their ideas inpromises and reality. No matter what the to go further Finally, there is the matter to action. agenda is, the gap is so big it cannot be into debt unof the extinguishing of social der conditions By following only reduced. the consistency of eco- discontent, which is largely which are faAll three burning economic questions nomic politics and the are all but fundamental matters of Serbia’s vourable from due to the wide gap between ad hoc mending of the transition (non-)success for the governthe standpoint promises and reality most visible holes on ment. of the freedom

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30 CorD 78 / January 2011

quotations I do not know if anything more can be done on their (Hadžić’s and Mladić’s) arrest, but I am sure it has to be done.

Snežana Malović, Minister of Justice

I do not know why our party would perceive itself as the centre of corruption. It is hypocritical and grossly uncomfortable to perceive us as someone with the biggest corruption problem just because of the fact that we are the biggest.

Jelena Trivan, DS PR

New dictionaries of slang should be compiled every five years, because that is also the way to overcome the eternal problem of misunderstandings between the generations.

Petar Bokun, writer

If the Deputy Prime Minister sang in Germany, that would cost at least four to five thousand euros, but Ivica Dačić sings for free.

Ivo Visković, Serbian Ambassador to Germany

I do not know where my client has been over the last two years, since the charges were laid.

We haven’t discussed that.

Vladan Batić, Zvezdan Terzić’s attorney

I do not think that Tadić is always right. I am known for criticising us the most at our meetings.

If Dinkić is interested in the place where I live, that does not mean I keep up with where he lives.

I will never be his neighbour in my, Kragujevac way.

Tomislav Nikolić, SNS leader

Marko Ðurišić, President of EB DS

I had gallstone surgery, which was most likely the consequence of stress. Still, I am not complaining because nobody has to do what we are doing. It is a matter of personal choice.

Verica Radeta, SRS MP

There is always room for talks about savings, rationalisation and the reconstruction of the government. However, the merging of certain ministries should not result in some savings, but savings are not, although they should be, crucial in some parties’ assessing

All decisions (to not attend the Nobel Peace Prize ceremony) were in accordance with the law and the prescribed procedure and were made after a lot of consideration. We would not have made such a decision if we were not sure about it. Under foreign policy such decisions are not made within the government of Serbia and it is not government's job.

Vuk Jeremić, Minister of Foreign Affairs, at a lecture on Serbian diplomacy to students of the Faculty of Philosophy, Nis The Minister of Foreign Affairs in his jurisdiction and in accordance with the law made his decision. The Serbian government, as I informed Prime Minister Cvetković, did not discuss the issue ... Let's let the institutions do their job. I will announce when the whole process is complete.

Boris Tadić, President of Serbia

In my new home I will have a special musical room with sound isolation, so I won’t affect my neighbours.

Mlađan Dinkić, Minister of the Economy and Regional Development

whether to accept such a preposition. Personally, I do not think they will accept it.

Momo Čolaković, head of the PUPS parliament group

One who is not ready to give up leaving the country in the next 10 years from the moment of coming to power, cannot become a minister.

Nenad Čanak, leader of LSV

My maths teacher Švile failed me, because a student cheated from me. I was thinking about stealing my dad’s car and running him over.

Slobodan Milosavljević, Minister of Trade and Services

In turning toward Russia, China, India and the Arab countries we have a clear like-minded ally only in the DSS, and we are hoping that the others as well will see that the way, which feels that the EU and the USA have no alternatives, leads directly to a political abyss.

Dragan Todorović, Vice President of the SRS

For me it is already known that I am stupid and not nice, so I am not afraid of what will be written in Wikileaks.

What does Ljajić think? That it will say he is handsome and smart.

Aleksandar Vučić, Deputy Chairman of the SNS

”The path toward Serbia joining the EU” The decision to boycott the Nobel Peace Prize was a tactical move to achieve the main goal - EU integration. Maybe this does not appear, but such a decision is not a diversion from the path toward Serbia joining the EU.

Prime Minister Mirko Cvetković, Brussels I’ll go to Oslo for the Nobel Peace Prize, as a protector of the citizens, given the nature of the award.

Prime Minister Mirko Cvetković has asked me to offer congratulations on his behalf.

Saša Janković, Protector of Citizens (Ombudsman) of Serbia CorD 78 / January 2011 31

interview MR. KJELL-MORTEN JOHNSEN, PReSIDeNT of The foReIGN INveSToRS CoUNCIl (fIC)

Excessive

administration There is still too much slow moving administration in place. This may sound unfair to those who are doing a good job in the public administration, but there are still too many of those who are living in the past

By Jelena aLeksić photo Darko CvetaNović

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n late October the 2010 edition of the Foreign Investors Council’s White Book was launched and presented to high-level government officials and the Serbian Prime Minister Mr. Mirko Cvetkovic. FIC President, Mr. Kjell-Morten Johnsen, opened the event and noted that significant changes had been made by new regula-

People are not standing in line to put their money into countries that they perceive as high-risk tions in many fields but also emphasised the need to capture lessons learned and implement the new model of growth by accelerating structural reforms. CorD discusses with Mr. Johnsen how satisfied he is with progress made in the previous year and what they see as the key challenges ahead.

32 CorD 78 / January 2011

■ The White Book comments that in the previous period the business climate in Serbia did not undergo any major changes in order to make it more conducive to foreign investors. What could have been done in this period?

- Last year people were busy dealing with the crisis situation. For many of us it felt like we spent too much time avoiding new initiatives that were introduced and that were negative to the business climate. In all fairness the Government responded positively to this situation, but this means that the fundamental issues were not really tackled. There is still a great deal of uncertainty in regards to property rights, which is often the stumbling block for getting the building permits, and we also still have issues with there being too much red tape, which is a challenge for all businesses, particularly small ones.

We would welcome a more decisive approach to simplifying the relationship between business and the Government, at all levels. There is still too much slow moving administration in place. This may sound unfair to those who are doing a good job in the public administration, but there are still too many of those who are living in the past.

Cooperation with the Government The level of cooperation between FIC, the Government and the biggest foreign investors is, in my view, very good. We have an open dialogue and people are very available if you have real issues to discuss. At FIC we don’t keep a complete scorecard of the total number of recommendations adopted, but we do know the total number for the ‘guillotine project’, which is not the most optimistic reading, to be honest. We also have the individual cases where issues have arisen, which we discuss with different ministries, and they incorporate this into the new laws. So sometimes the results of these discussions are not immediately visible. that in itself will not attract money.

And secondly the situation is basically the same as last year, at least not any better. People are not standing in line to put their money into countries that they perceive as high-risk, and there is simply not that much funding available for the typical FDI that Serbia would like to look for. Due to the sale of Telekom Serbia, 2011 in isolation may not be bad, but the underlying trend is still not good enough.

■ Quite a few chapters of the White Book are dedicated to the amendments of the Labour Law. In your opinion, what needs to be changed about this law and why?

■ It seems that the regulation guillotine has become a - We have pointed out there are many issues that are not handled in a balanced perennial issue. What We would welcome a more way in terms of the Labour hinders the regulation Law and the Collective guillotine the most? decisive approach to simplifying the Agreement. It is impor- I think the Prime relationship between business and the tant that we see a decrease Minister said it himin labour expenses, which self at our conference Government, at all levels will help increase the emin July when he said ployment rate in the country. At 20 percent unemploythat the Government wants to be helpful by making ment we run the risk of an increasing black and grey positive changes but there are very many interests ineconomy, which is fundamentally bad for the economy volved in the system, and the people who defend their and creates a negative spiral. Whatever we can do to right to administer documents are a major obstacle to make it attractive to employ people is positive. the ‘guillotine’.

We have also commented on international compa■ The White Book 2010 states that in 2011, there could nies who have systems that are used for the calculation of salaries throughout the world. If you force these be “a significant decrease” in foreign investments in companies to have a different system just for Serbia, Serbia. What was this projection based on? this creates extra costs and barriers for these investors.

- First of all, the ability to attract investments. Serbia We have also had issues regarding work permits and has dropped from 93rd to 96th on the index of global lengthening the period of validity, as well as the excess competitiveness among investment destinations and of procedure involved in getting business visas. It is if there is no significant improvement in the way in also important to avoid the populist argument that we which the country is seen for all kinds of reasons, then

Employment We need to see this as a web, and protectionism in terms of restricting the ability of people to move in order to find work is generally a bad idea.

Administration I think it is important to work on the competency of administration so they can act as a partner and not an obstacle.

EU Candidacy To align Serbia with the rules of the game in a 27member organisation that is surrounding the country can only be a positive.

CorD 78 / January 2011 33

bile phones. Exactly what taxes are you referring to?

- We mention the mobile phone tax, the forestry tax and the irrigation tax - which was the one we were able to stop. However the principled position of FIC is not related to whether these taxes are for mobile phones, forestry or irrigation. We feel that there should not be industry-specific and ear-marked taxes, because they make the system much more ■ Although the Law on Spatial Plancomplicated and unpredictable. We are happy to see that some of these ning and Construction has come taxes will be removed shortly. We into effect, it is seldom implementalso noted substantial increases in ed, which is also something that some local taxes without any strucFIC has remarked on in the White ture, e.g. the local tax called in SerBook. What are the main obstacles bian “firmarina”. It is to the full implemenimportant to have a tation of this law?

In 2010 for many of us it felt like we spent uniformed implemen- This Law is importoo much time avoiding new initiatives that tation of those taxes on tant in itself, but it is also very important to were introduced and that were negative to the local level and not the examples of differsee that the next step of the business climate ent amounts of local getting the bylaws and taxes depending on the location of a company seat. the implementation and execution of these laws is often devilishly complicated. This is because if the bylaws are ■ To what extent will the announced granting of EU not specific and clear, they will be interpreted arbitrarily. candidacy by the end of next year to Serbia affect the I think it is important to work on the competency FDIs in Serbia? of administration so they can act as a partner and not - I think it can only be positive. It is not up to me to an obstacle. It is about training and, in some cases, it is have an opinion on whether Serbia should be a memabout changing the culture. You often find that public ber of the EU, but to align Serbia with the rules of the administration do not see themselves as a partner in game in a 27-member organisation that is surrounding business but as a controller who is going to check that the country can only be a positive as it brings down everything is done by the book. The only way to deal some of the uncertainly and some of the barriers, and with this is via the leadership of ministers, state secremakes it easier to invest. taries and the top levels of those administrations, and Of course, in some sectors it will lead to stronger until this is done there will continue to be delays. competition, and some people’s margins may be lower, ■ The White Book also talks about tax rates, although but that is a process we all need to go through. Then here will be adjustments and improvements to protect those nobody in Serbia has officially changed tax rates, with margins, and that is part of having more competition. the exception of the introduction of fee on using moshould restrict the ability of foreigners to come in due to the fact that unemployment is so high, as often the people who come in are those filling gaps in terms of competencies that are needed and are not a threat to those who are unemployed. We need to see this as a web, and protectionism in terms of restricting the ability of people to move in order to find work is generally a bad idea.

Building Permits I often hear about the issue of building permits. This is not simply a question of building offices and apartments, it’s also about warehouses and showrooms – everything that businesses need regardless of what industry they are in. There are some good examples of this process working but what I sense is that these positive stories often come with the heavy involvement of people at very high levels in the Government.

So while this is something that deserves praise, on the other hand it is a systematic problem in that, regardless how hard people work, there are limits as to how much they can involve themselves. So we need to make this system work for everyone, otherwise we have a problem.

34 CorD 78 / January 2011

■ Serbia’s credit rating remains poor. How important is this to an investor when deciding to invest in a certain country?

- The credit rating in itself may not be the only determining factor. It is important for the financing of the Government and if the Government collapses, you always have a problem, but I don’t see that happening here. I think people make individual calculations of the market opportunity expecting that the country will continue to operate one way or another regardless of the credit rating. So yes, it is good to have a high credit rating, it shows more confidence in the finances and the Government overall.

■ What is your view of the collaboration between the banking sector and businesses in Serbia?

- Serbia was able to keep the banking system operating throughout the crisis and there was no shutdown on liquidity. My impression is that people feel that cooperation between the banking sector and business worked reasonably well throughout the crisis bearing in mind all the risk factors that people had to think through in stressful moments, particularly one year ago.

that will be needed to handle closer relations with the EU, within the operational parameters of the current public administration, thereby reducing the need for additional spending. This goes into the whole issue of reform where one could implement an electronic platform for communication between the government and the population which would cut down on red tape and the opportunities for corruption, and would make the public sector more efficient. Now is the time to be looking into these initiatives.

■ The forecast for 2011 is pretty ■ In your opinion, what priorities pessimistic, which is something should the government have in that the Serbian gov2011 in order to make ernment disagrees the business environSerbia has dropped from 93rd to 96th on about. What is your ment better and more efficient? the index of global competitiveness among prognosis for 2011 as the director of one - To be very clear on investment destinations and if there is no of the biggest invesfiscal discipline, continue with a respon- significant improvement in the way in which tors in Serbia and the sible macro-economic the country is seen for all kinds of reasons, Chairman of FIC? - I am convinced that policy and to be exthen that in itself will not attract money 2011 will be better tremely conservative than 2010. My conin the area of public cern is that the moves we make in 2011 must be susspending. The opportunity should be taken to refocus tainable. That economic growth will be higher I think the public sector and redirect some of these resources is quite clear, but we need to achieve growth of at least for other purposes. I do not believe it is realistic or even three percent, but ideally more like four or five percent desirable to reduce the size of the public administrain order to start getting people back to work, to reduce tion. What is needed is to move resources away from the grey and black economy, and to raise tax revenues. I excessive and unproductive licensing and control proam not pessimistic about 2011 - I think we can achieve cedures. These existing resources can be retrained and stabilisation and a slight improvement.

■ developed to handle new challenges, like all the work

Profile ■ How have you found adjusting to Serbian culture?

- It has been relatively easy for me to relate to Serbian culture as in some aspects it is similar to Russia, where I spent six years before coming here. There are also more differences than it may appear at first glance. Serbian culture is a little more authoritarian than a typical Scandinavian country, so having lived both in Scandinavia and Russia, I would say that Serbia is somewhere in between.

tree and bring it home, and the parents would then decorate it that night while the children were sleeping. So the children get up the next morning to find the Christmas tree all decorated surrounded by presents. As you can imagine, the time between seeing these presents in the morning and actually opening them at 5pm feels like an eternity. Traditionally, people would also go to church, but this is not so much of a tradition anymore.

■ Can you describe some of Norway’s Christmas traditions?

- Christmas in Norway, as in most countries, is very much a family celebration, with the main day being the 24th of December. The tradition is that at 5pm the boys choir of the first TV station sings and after that the children of the family are allowed to open their presents. In the old days on the 23rd of December the man of the house and his son would go out into the forest and cut down a

■ What will be your New Year’s wishes for your colleagues in Telenor and FIC? - I wish them something that is a traditional Russian toast - good health - simply because, as the Russians say, if you don’t have health nothing else matters. I also hope that people use the holiday period as an opportunity to rest. It’s important to work hard but it is also important to rest hard.

CorD 78 / January 2011 35

interview Dragan Nikolić, President of Tigar Corporation

Investment as

expenditure T

igar Corporation has just celebrated 75 years of business, and the company was recently awarded first prize for its development of investor relations at the Ninth International Conference of the Belgrade Stock Exchange. CorD magazine talks with Dragan Nikolić, the President of Tigar about business practices, philosophies and the reasons behind the company’s success.

You do not exit the crisis through recession, but rather via an energetic approach, and the wellplanned and determined direction of further action. This is what we have applied. We think of investment as expenditure, and of savings as of the art of expenditure. If one invests into real deals and suitable conditions are provided, what you have spent should return more assets than what you have invested 36 CorD 78 / January 2011

■ How important is transparency in reporting to investors?

- The fact that the Belgrade Stock Exchange has recognised the quality of our cooperation with investors, which is based on supplying professionally correct and transparent information to the public about the actual state of the company, its business health, developmental potentials, important events, relevant decisions and projections of plans and future activities is very important. Everything we have done so far has been acknowledged in the best possible way by the investing public, which, at the same time, is confirmation that we have done our job professionally.

The plan

Philosophy

■ You are among the few who Our export aspirations It is necessary to invest make capital on the stock marin the following year are, into technology, branding, ket by issuing long-term corpofirst of all, the markets of market development rate bonds. Will the issuance America, Australia and and what is also rather of bonds be Tigar’s strategy in the future for collecting capital, Russia. important, into personnel. and why is this process still not termined direction of further action. cause investments into infrastructure, developed enough in Serbia?

This is what we have applied. We think production halls and equipment are not - The issuance of corporate bonds is one of investment as expenditure, and of enough per se. It is also necessary to inof the means for collecting investment savings as of the art of expenditure. If vest into technology, branding, market funds. Corporate bonds are an extremeone invests into real deals and suitable development and what is also rather ly firm mechanism and represent the conditions are provided, what you have important, into personnel who will genrather strong obligation of a company spent should return more assets than erate all this. Bearing in mind the level and management to achieve the process what you have invested. This is the baof investment, we have used a long-term in the correct manner, because when a sis of the investment expenditure coninvestment loan granted by the German corporate bond is issued, you have to be cept. At the same time, we have chosen investment and development company ready to answer this obligation in an inthe right moment to rise and reengiDEG under very favourable conditions stant. It is a much harsher mechanism neer our programmes so as to find our for the footwear programme, and Hypothan banking credit. Thus, we, aware of place on the market, and have a better Alpe-Adria bank for the technical rubour opportunities and the company’s position for the times that come after ber programme. The process of the comstrength, and have made the decision to the crisis. We would not get far with plete reconstruction and modernisation collect a part of the funds by using corthe old, out-dated producporate bonds. This mechanism tion halls and inadequate has proved to be rather good, knowledge, savings or no even more profitable than savings. One does not score classical credits which, at this with a defensive, protective moment, are still very expenstand, but becomes history sive. In this way, we have reand gets forgotten. constructed short-term obligations, transferring them to the ■ Tigar products meet the long-term sector. The bottom EU standards and those of line is that it contributes to the other countries. In which stability of the company, and foreign markets have you the consequence of this is good, In just the last two years, via been the most present to positive business dealings, date and are you planning achieving results, conquering developmental programmes, about 140 on any market expansion in the market, accomplishing new products have been made in the 2011? plans, the delivery of services - In just the last two years, via and goods, and of course, makfootwear programme developmental programmes, ing regular payments. about 140 new products have been of the entire system was financed from made in the footwear programme, alinternal funds and long-term loans. In ■ You have invested the money from most 60 in the technical rubber proless than three years, more than 30 milthe transaction with ‘Michelin’ into the gramme, and more than 20 in the lion euros have been invested, which is construction of new factories for footchemical products programme. Alongby far, the most significant investment. wear, technical rubber and recycled side the development of products, we rubber products. How much money make parallel investments into market ■ The business politics of most comwas invested and what are your expecdevelopment and network modernisapanies during the crisis were harmful. tations from this investment? tion. This requires extra funds and extra What was Tigar’s business philosophy, - Two international acquisitions, in Great time, but has created a leader’s position and was investment really one of the Britain and in Denmark, were made, at the European level when it comes to best answers to the crisis? primarily with the aim of gaining ownthe footwear programme, whereas with - You do not exit the crisis through reership over internationally recognised the other programmes we have regional cession, but rather via an energetic apbrands and state of the art technologies, aspirations. Without an innovative ap proach, and the well- planned and deincluding the existing buyers’ bases, beCorD 78 / January 2011 37

knowledge, as well as investments folproach and the continued promotion of lowing the development of the market business performances, there will be no and research. It is necessary to provide expansion in the domestic market, or in mechanisms that ensure the investment exports. means are long-term and at a reasonable According to the results we have price, with stimulative periods, so that achieved and our projections, by the companies can enter this process, beend of the year, about two million pairs cause when you are in a poor position, of footwear will be sold; 1.4 million of you cannot reach the level required to those abroad. In the largest export marpose competition to those who have alket, the market of the European Union, ready achieved their positions and have we are expecting sales of about one milmodernised themselves, in a single step. lion pairs and an income of 13 million The state should catch up and have the euros, whereas the planned value of strength to assist companies with qualsales in other export markets is about ity developmental programmes and three million euros. We are placing a those who are capable of being competilot of pairs of rubber footwear, but extive in exporting. ports still include simple, largely working and low boots, whereas in Europe â&#x2013; What stimulative measures would and Canada protective, sports and you suggest to create a favourfashion styles dominate. The groups of products intended In the largest export market, the market able climate for the increase of exports from Serbia, and also for the special conditions of exof the EU, we are expecting sales of a favourable environment for ploitation satisfy the demands of the European standards, about one million pairs of footwear and investments?

- In general, whatever the govthe Canadian CSA standards, an income of 13 million euros ernment decides on as a means American ASTM standards to promote the economic environment tic businessmen and exporters, what and standards of the market of the Rusin which we do business is good for do you think of the new model of ecosian Federation. ours and any other company. The banomic growth recently presented by Our export aspirations in the folsic expectation of businesses is that the the government, which is based on the lowing year are, first of all, the markets government creates the environment strategy of export growth? of America, Australia and Russia. For and mechanisms which will make busi- For the implementation of such a us, these are new areas and new marness easier and create positions for the model it is necessary to provide sources kets towards which we are directing company to be competitive, or to handle of funding. The fact is that it is necesour plans. Almost the entire area of Eucompetition at the global level more eassary to create opportunities for further rope is covered, while our programmes ily. However, we have never been too atdevelopmental investment, meaning are also present in one part of Asia and tached to what the government should the financing of development and inLatin America. do for us. It would be good to create such vestments. These are not only matea mechanism so that banks and finanrial means, but also the development of â&#x2013; As one of the rare successful domescial institutions are turned toward the financing of the real sector with their in75 years of existence terests, so as to provide, before all, access to long-term investment capital, which e have many reasons for being happy; Tigar survived, developed, created a platis a burden for ours and all other comform to achieve two-digit growth this year, and all this in a difficult year of crisis. panies. Simply, this country lacks longThis is a bigger reason for pleasure than anything else. term investment funds. A development The secret of our success is a clear vision. The essence of the length and quality of bank is one of the solutions and one of our duration is extremely good cooperation with all subjects and factors within the the practical mechanisms which should company, where we have a constructive mutual approach, because a lot of smart peoenable more efficient support for these ple always achieve agreement and understanding. Of course, there have been difficult periods, and we have been struck by the problem of our cashflow as well as the busiprogrammes, all the while removing ness environment which in general has not been the most favourable. However, that is the usurer aspect of business when you all marginal compared to a permanent, long-lasting, persistent, professional and welluse short-term credits to finance longguided business process, which receives quality support from all the factors, and at term ones. We are living with this, and the same time is sensitive to the needs of the community where it achieves profit and we would be living differently if this alongside which it develops. was not the situation here. â&#x2013;

W

38 CorD 78 / January 2011

interview MILKO ŠTIMAC, ChAIRMAN of The SeCURITIeS CoMMISSIoN

stock Exchange

rEcoVEry

“The good thing is that recovery is rather slow, as when it comes to capital markets, just as in life, the faster you climb, the faster you will fall. Speaking longterm, capital markets fare better with a lower but stable growth rate, than a sharp rise and fall”

By gordana BuLatović photo Darko CvetaNović

T

he legislation that regulates the capital market in Serbia has been far removed from practice, and the new act regulating this area is expected to be adopted soon. In the meantime, the stock exchange is slowly recovering from the economic

We have been promised that the procedure apropos the adoption of the new law will be instigated soon 40 CorD 78 / January 2011

downturn, while the media have been reporting on tycoons earning huge amounts of money from trading on the exchange. CorD talks to the Chairman of the Securities Commission, Milko Štimac, about the current situation in the capital market, money laundering via the stock exchange, free shares and market liquidity.

■ What is the current state of the capital market in Serbia?

- The current state of our securities market is typical of a post-crisis one. A year ago, we reached the pinnacle of the crisis, followed by a period of stabilisation and recently, things have become much better. The good thing is that recovery is rather slow, as when it comes to capital markets, just as in life, the faster you climb, the faster you will fall. Speaking long-term, capital markets fare better with a lower but stable growth rate, than a sharp rise and fall.

■ What indications are there that the situation is changing for better?

- Our capital market is typical of a small transitional country. The destiny of such markets depends primarily on global tendencies. If we are talking about the impact of the financial crisis, we could say that, in the case of our country, it was a blessing in disguise since the moment the global crisis erupted, our country was still not fully integrated into the global economy. So, the impact that the crisis has had on our country was tantamount to the level of our integration into the world economy. What is also true for our country, and is typical of countries undergoing transition, is that legislation that regulates the capital market in Serbia is far removed from practice. This is nothing new. For instance, in the last five years, Hungary enacted two laws on capital markets and numerous amendments to these laws.

The Status of Offshore Companies According to the relevant law, every single investor in our country needs to be treated equally, even when they come from offshore zones or tax havens. If there is a money laundering risk present, we usually send a request to their domicile market regulators to send us the information about those companies. If the domicile regulator is a member of the International Organisation of Securities Commissions, then our request is always met. However, if we are talking about tax havens, unfortunately, there is no way of obtaining such information. If we do notice that a certain company is not abiding by the stock exchange rules, we can exclude that company from further trading. The new law will be extremely helpful to us in this respect, since the law stipulates that this is now treated as a criminal offence instead of only a minor business-related offence.

not essentially bad investors. They try to use the difference in price to their advantage. Sometimes they win, sometimes they lose. They bring money to the market and improve its liquidity. The more money there is, ■ When is Serbia expected to enact the new law on the the more active the market becomes. If there is enough money, the market becomes deeper and more appealcapital market? ing for investors that are also speculators in a way, but - We have been promised that the procedure apropos have long-term plans. So, speculating, in itself, is not the adoption of the new law will be instigated soon. bad, since it increases market liquidity. Unfortunately, The law is fully adjusted to the basic EU directives we have been taught that which regulate the capital market speculation has market and investments Speculators are not essentially bad a negative connotation. made on this market. Of investors. They bring money to the The question is whether course, there are slight market and improve its liquidity a speculator can amass differences in the law wealth by speculating that correspond to our on the stock exchange? Yes, for every speculator that practices. For example, the capital market regulator, i.e. becomes rich, five lose big. In that respect, the Belgrade the Securities Commission, will become a fully indeStock Exchange is no different to any other stock expendent institution. This automatically means a wider change in the world. area of authority for the institution and more efficient and stronger instruments applied to the capital market ■ Are you under the impression that Serbia’s wealthiparticipants - and not only them, but also to the issuers est citizens, often called tycoons, are now carefully of securities, i.e. open-end shareholding companies. The monitoring and participating in the Serbian securipractice in the world has shown that the capital market ties market? regulators need to deal not only with brokers, but also - I really cannot say exactly what they are monitoring. with funds, banks and any issuers of securities, includCapital thrives on things being properly arranged and ing high executives in these shareholding companies. stable. These people are the basis of the capital and they ■ Stock exchange trading is often linked to speculative are rich because they follow capital’s interests. Some of them have learned this in school; some just have good capital. Are there many speculators on the Serbian instincts. If you live in a country where legislation is capital market? frequently being changed and the legal framework is - Since we are a rather small market, we do have a incomplete, then you are constantly faced with instabilproblem with speculators. However, speculators are

thE Plan It would be really good if each individual regional stock exchange would add two more listings to its existing one.

frEE sharEs Even if only 10% continue trading, that will create a solid basis for the further development of stock exchange trading in Serbia.

status The Securities Commission has been included in ‘group A’ of the best market regulators in the world.

CorD 78 / January 2011 41

ity. It is absolutely irrelevant whether capital stakeholders are members of the Privrednik business club or an investor from Hungary. Capital is like water, it carves its own way.

The state needs to secure stability for this capital. In addition, the state has to provide protection of private assets which is also stipulated in our Constitution. Once you breach this Constitutional right, investments immediately stop and investors wait to see what is going to happen next.

will get all the profit. So, the solution is to form a regional market and a regional system where companies trading on a stock exchange can count on attracting investors from all over the region. We plan to put all of this in writing in the form of a letter of intent. It would be really good if each individual regional stock exchange would add two more listings to its existing ones that will contain the names of the companies from the region.

This will result in more securities being available on the market, and investors will be able to buy shares of any company that trades on the regional stock exchanges.

■ Bearing in mind that we are a rather small capital market in transition, how appealing are we to global and local money launderers?

- If we are talking about ‘dirty mon■ Free shares were alloey’, i.e. the money generIt is absolutely irrelevant whether cated to 4.8 million Serated from illegal activities, bian citizens. Did this we need to consider that capital stakeholders are members revive the securities marour country is one of the of the Privrednik business club or an ket? signatories of the so-called investor from Hungary - What the various organBrussels Protocol which isations and enterprises binds us to closely cooperon the capital market, including the National Post Ofating with anti-money laundering institutions. Having fice, have demonstrated is that they dispose of capacisaid that, for many people, dirty money is not someties that can serve a substantial number of shareholdthing that they are repulsed by. If ‘money launderers’ ers. This is proof that we will be able to meet the needs notice that they can legalise their money via the capital of a huge number of shareholders and to trade in high market in a certain country, they will immediately relovalues once the crisis on the capital market subsidies. cate their activities to that country. Several years ago, we noticed strange things happening in the acquisition of ■ Do you think that some of those citizens will concertain hotels in Subotica and Palić. We reacted in time tinue trading on the stock exchange? and contacted both the prosecution office and the police.

- That is difficult to say, especially when we know that As it turned out later, the organised crime network run the only shares they have been trading in are the ones

by Darko Šarić was involved. We have reacted in a simiof Petroleum Industry of Serbia (NIS). Even if only 10% lar manner many times and have completely institutioncontinue trading, that will create a solid basis for the furalised cooperation with the Directorate for the Preventher development of stock exchange trading in Serbia. tion of Money Laundering and the Counter-Organised Crime Service. At this moment, we are investigating sev■ Do you think that trading on our securities market eral cases together with our colleagues. is transparent enough?

■ Recently, you and your counterparts from ex-Yu- Together with other capital market stakeholders, the Securities Commission insists on the state applying the goslavia announced the possibility of regional coopstrictest possible rules in trading in securities based on eration becoming institutionalised too. What benefits the existing legal framework. The whole process also will that bring? needs to be absolutely transparent. When I say ‘trans- We need to provide safety in trading in securities, parent’, I don’t mean only financial police and similar i.e. for individuals and companies to feel free to issue institutions having access to certain data, but also citisecurities and generate the money they need. Each of zens who are trading on the securities market or have the aforementioned countries has outgrown the marexpressed an interest in doing so. Because of this, the ket rather quickly, since we are talking about rather Commission has been included in ‘Group A’ of the best small markets. In order to recapitalise such compamarket regulators in the world. We are even ahead of nies, you need capital that you cannot find on the dosome of our EU counterparts.

■ mestic financial market. If you go to a bank, that bank 42 CorD 78 / January 2011

interview Nikola Milačić, Cash Processing Manager G4S

Assumption of risk As of January 2011, we are going to start offering services pertaining to the company assuming complete risk, and we expect this to create a great deal of interest amongst all of our clients, both existing and potential ones, due to the benefits they stand to gain

I

handling?

- We are living in times where cutting back on costs is the primary goal of every company executive. We are providing a service that makes our clients more relaxed about their cash being handled in more ways than one. Financial cutbacks are reflected in the reduction of the number of employees that are responsible for carrying out cash processing activities, as well as the reduction of leases on business premises, investments in ■ When increasing the quality of your security and processing/counting equipservices did you take into considerament and the costs associated with intion the experiences of your colleagues, suring money. A very important bearing in mind that you are a segment of cash processing servmulti-national company?

G4S was the first company in ices, in terms of reducing costs, is - The knowhow, which we reSerbia to open a Cash Centre the service provider assuming the ceived from within the Group, was of exceptional value to us and our which is standard practice abroad entire risk. In our case that is G4S. Operationally wide, this will exbusiness operations. Just like most pedite work procedures which, in multi-national companies, we are turn, will result in the reduction of cash global practice which involved the carin a position to implement the experihandling time and, as a result, increase rier providing insurance for the valuaence of our colleagues in order to render cash availability. bles being transported, and then the latthe best quality services on the Serbian est service of cash processing. G4S was market, which are primarily based on ■ Who is your target group when it the first company in Serbia to open a high standards in all areas of our opercomes to these services?

Cash Centre, which is standard practice ations like security, work procedures, - These services are primarily designed abroad. G4S provides cash processing training, quality and similar. for banks, retailers and all companies services in the company’s cash centres that operate their business with cash. located in regional countries in which ■ The Cash Handling sector all over the We are confident that these new servthe company operates. We have over world involves the transport of money ices, which we will begin to offer as of 25 cash centres in Hungary, Romania, and is known as ‘cash-in-transit’ (CIT). the 1st of January 2011 to selected cliBulgaria and Greece.

At the end of the 1990s the company ents, will create a great deal of interest Progard began providing cash transamongst all of our clients, both existing ■ Have you started offering additionport services. Prior to this the transand potential ones, due to the benefits al services in order for your clients to port of money was handled internalthey stand to gain.

■ feel even more relaxed about their cash ly by the organisations of their clients. t’s been two years since G4S Company, the global leader in the security industry, bought a controlling stake in the Serbian security company Progard. Since mid-November, the company has gone by the new name of G4S Secure Solutions. We talk with Cash Processing Manager at G4S, Nikola Milačić about the company’s strategy, business philosophy and new services.

Did this result in the higher quality of cash handling services?

- Outsourcing - using CIT services our customers have achieved significant cost savings and the benefits of safety in transportation to a higher level. When the volume of CIT (cash-in-transit) services reached a certain level and a certain market share, the next step was to develop other segments of the cash handling business. What began merely as the transport of money, developed into security agencies servicing ATMs, after that we introduced a very important

CorD 78 / January 2011 43

44 CorD 78 / January 2011

interview hUgh MCReYNolDS, MANAGING DIReCToR of CARNeX

An Ecological Focus The leading position of Carnex is founded on constant efforts invested into improving the quality of our products Carnex has invested great efforts into expanding its range of products. What is new in this respect?

- We always try to follow the trends and present new products to our consumers. At the start of this year we launched three new pates, ast year was full of innovation for then new frankfurters, a brand new chicken Carnex. Apart from the new products program named PILINO, as well as two new which refreshed the domestic martuna pates lately. Besides this, we have redeket, a lot was invested into ecologisigned the packaging for our ready meals. cal projects, and also into the moderniThe leading position of Carnex is sation of production plants. Since 2006, At the beginning of 2010, we founded on constant efforts invested into the majority owner of Carnex has been started exporting to the market improving the quality of our products, but the financial institution Ashmore from also on presenting new trends on the meat London, which deals with investment of the Russian Federation market. The requirements of our consumfunds management. ers always points us in the direction in which to maintain and expand the leading position of “One of the most important goals of our we are to develop new products.

Carnex on the domestic market, as well as to business is to become an ecologically responenable the company to enter foreign markets. sible business. We are faced with the fact that ■ Is one of the goals of the business policy We have the ability to become a more suslittle has been done for three decades when it tainable farming enterprise and not only decomes to ecological issues, so we decided to investing into ecology? pend on chemical fertilizers. Farming techchange this fact. However, no one can com- The above mentioned investment plan foreniques have progressed in this area and we pensate for thirty years of neglect in just three saw the investment of more than 2.5 million can learn from our neighbours in the European years,” the Managing Director of Carnex, Hugh euro into solving ecological problems. This Union in this matter.

McReynolds points out to CorD magazine. year, the biggest investment is by far the primary waste water treatment plant, which is ■ How much did Carnex invest during 2010 ■ When you speak about exports, which to help Carnex improve the releases into one of the most polluted water courses in Europe and what were these investments? markets are you referring to?

– the Great Bačka Channel. The master de- The overall plan of capital investment ap- Carnex exports mostly to the traditionsign has been finished, all the necessary docproved two years ago has been revised due to al markets such as Montenegro, Bosnia and uments have been collected, while the tender the economic climate. It foresees the investHerzegovina and Macedonia. At the beginning for construction work is currently in progress. ment of nearly 30 million euro over the period of 2010, we started exporting to the market of We expect that the construction of the treatthe Russian Federation ment plant will be finished early in 2011. The while recently we have IPPC ecological licence design phase, together with the construction even sent one shipphase of this project, is planned to require an ment of our products to Carnex is currently in the middle of the procedure of filing a reinvestment of 1.5 million-euro.

Australia. Beside this, quest for the integrated licence of IPPC, which is Integrated We are proud of the fact that we have finour management has Pollution Prevention and Control. This is a piece of legislation ished the installation of a separator on one of invested great efforts which is very similar to that used in the European Union and is our pig farms. This separator unit enables the into conquering the difficult to achieve even for those countries with a greater abiliseparation of liquid slurry from solid manure, Belorussian market. ty to invest and improve. We have requested the licence for perwhich is to be spread over our fields as fertiforming activities in our meat processing plant and the farms in ■ lizer by means of special machines.

■ It is obvious that Vrbas, Bačko Dobro Polje and Savino Selo.

CorD 78 / January 2011 45

Photo: M. Milenkovic

l

of five years. For 2010, the plan was to invest 10 million euro, with a large percentage into ecological projects.

In general, our plan from 2008 was to invest into expanding the existing and constructing new production capacities, purchasing modern machines and equipment, while special focus was placed on ecological issues.

These investments were planned with the goal

region Montenegro receives EU candidate status

New Homework Montenegro should demonstrate measurable results in the fight against corruption and organised crime, with concrete verdicts. Judges and prosecutors should be chosen on professional merits, and the state has been ordered to strengthen the management directory and the State Revision Institution

By Ilija Despotović

M

ing electoral law with the OEBS’ recommendations ontenegro reand the strengthening of ceived the staguarantees for greater metus of a candia freedom. Generally didate-counspeaking, this is the try for membership in the ‘homework’ stated in the European Union by a formal European Commission’s decision of the European findings about the process Council, which paid tribof European integrations ute to Montenegro for its in Montenegro, which current accomplishments were remarked on by on the road to Brussels, but Stefan Fule, the European also set it new tasks, in orenlargement commissionder for it to become a full er, during his November member of the European visit to Podgorica. community. However, the Some of the assigngranting of candidate staments were presented in tus without the exact date even more detail, for exof the beginning of the asample, that Montenegro sociation talks is not what In the EC’s recommendations it is said should demonstrate measwas desired. that ‘a strong political will is needed, so urable results in the fight Milo Ðukanović, Prime Minister of the Montenegrin as to improve the results in the area of the against corruption and organised crime with concrete government, pointed out on fight against corruption’ verdicts. Or, it should deposeveral occasions that it was much more effective if a country has, next year. Until then, Montenegro will liticise the judicial system, by electing have plenty of work to do, and the assign- judges and prosecutors on professionalong with candidate status, the date of ments given can be grouped into seven ar- al merits. The state should strengthen the association talks at its disposal.

Still, in Podgorica, they are hoping that eas. They refer to the more efficient fight the management directory and the State the invitation for the commencement against corruption and organised crime, Revision Institution, to remove discrimof association talks can be gained in the strengthening of the rule of law, strength- inatory barriers for minority communiening of the legislative ties, such as for disabled people or the Baković: “Montenegro will be and supervision func- homosexual population.

Montenegro should demonstrate the tion of Parliament, reable to fulfil the strengthening form of public admin- results in a year’s time, but, realistically, of the freedom of the media istration, easing cer- there is enough time to fulfil the tasks, beand the protection of minority tain disbalances in the cause the association talks could last a coueconomy, harmonis- ple of years, even five or more. communities”

46 CorD 78 / January 2011

Jovićević: “Thorough reconstruction of the government, judiciary system and police structure is needed” Political analyst, Svetozar Jovićević, when commenting on political requests from Europe, feels that the Montenegrin political establishment does not have the capacity to achieve them. He says that ‘a thorough reconstruction’ of the government, judiciary system and police structure is needed. According to Jovićević, ‘new people’ are needed, so that Montenegro can fulfill the new European tasks.

Montenegrin human rights ombudsman, Šućko Baković, is not certain that Montenegro will be able to fulfill the two tasks: strengthening of the freedom of the media and protecting minority communities from discrimination, in only a year, starting with the potential commencement of association talks.

“European standards have to be met”, Baković says.

University professor of sociology and political analyst, Srđa Vukadinović, gives a rather skeptical assessment for CorD, primarily on the meaning of Montenegrin membership in the EU, even on the Union itself.

Vukadinović warns that becoming a member of the EU, and its enlargement, are on “the wrong construct” when it comes to the South-European area. “A single community (former Yugoslavia) could not have been broken, in order to create another one”, Vukadinović says.

He claims that people in Montenegro tend to create idols and accept what the political leaders are saying.

‘That has always been the case, and it is like that now, when the story about membership in the EU is being accepted. However, the citizens do not know what awaits them, and neither do the political leaders’, Vukadinović says. According to his forecast, Montenegro’s joining the EU represents the end of the transition. Practically, it means the extinguishing of a large number of domestic firms and losing jobs for a lot of people.

‘The quality of life will drop, because it is necessary to adapt to strict standards of questionable value’, Vukadinović assesses.

In his opinion, Montenegro will lose a great deal of its specificity. Its ‘Njeguš cheese’, for example, will not be able to enter Europe, and will be replaced by “some kind of gouda”.

‘The story about the fact that the EU membership will have an influence on smaller expenses, for example, on traveling without visas or canceling business barriers is hypocritical’, Vukadinović states.

He says that the European Union does not have a perspective ‘because it was built on the misfortune of some people’.

■

organ trafficKing in kosovo

Report of Dick Marty The CoE adopt Dick Marty’s report which has found that Serbs and other civilians were kidnapped, trafficked to Albania and had their organs removed for sale on the black market by Hashim Thaci’s Kosovo Liberation Army

M

idway through December the Council of Europe (CoE) adopted the draft report by Dick Marty, the special rapporteur of the CoE, on human organ trafficking in Kosovo.

This report has found that Serbs and other civilians were kidnapped by Hashim Thaci’s Kosovo Liberation Army in the wake of the 1999 war, and were taken to Albania where their organs were removed and sold on the black market.

The document names current Kosovo Albanian PM Hashim Thaci, formerly one of the leaders of the so-called Kosovo Liberation Army (KLA), as being responsible for these, and other serious crimes.

Marty stressed that he was “particularly shocked” to find out during his two-year investigation that a large number of people, and or-

“Everybody knew about the crimes of the KLA” ganisations, knew about the crimes but “did not wish to talk about it”.

Marty noted that his report “said nothing new”, and that “everybody knew about the crimes of the KLA”. Marty told Dick Marty reporters that his task was to determine the facts related to a book written by former Chief Hague Prosecutor Carla Del Ponte - who first publicly mentioned the organ trafficking allegations in early 2008 - and that his job was “very delicate”, because many people chose not to talk to him or his associates.

The CoE rapporteur added that “these crimes have never been the subject of a serious investigation.”

“Another revelation is that they include the territory of Albania. In that absolutely chaotic period in 1999 and 2000, that is, after the end of (NATO) bombardment and establishment of UNMIK, the KLA exercised power in the entire territory (of Kosovo), and that is when the crimes were committed. People were kidnapped, deported to Albania. EULEX has opened an investigation related to secret prisons, and Kukesh in northern Albania is mentioned.”

Marty went on to say that some parts of his report document “open ties between organised crime and politics, including representatives of the government”, and that he was “not guided by rumors, but described the crimes based on many testimonies, documents and objective findings”.

■ CorD 78 / January 2011 47

region New Government of the Republic of Srpska

Dodik’s politics

Most observers and authorities on the situation in the Republic of Srpska estimate that, after Dodik’s election as the President of the Republic of Srpska, the centre of power will shift from the prime minister’s to the president’s position has been the strongest party as well as being the ruling party in the Republic of Srpska for years.

With his initial reaction, Prime Minister Aleksandar Džombić, assessed that this will be a “challenging mandate” which will be characterised by the preservation of social and fiscal stability in the first eighteen months to two years, and in the following Aleksandar Džombić two to two-and-a-half years by the positive

By Vojislava VIGNJEVić rate of economic growth, just as it has been in the previous period. The President of the SPRS, Petar Ðokić, said that the SPRS and leksandar Džombić, formerly DNS accepted the policy of the SNDS in rethe Minister of Finance, will gards to mutual action at the state level bebecome the Prime Minister recause “it is necessary to have a harmonised sponsible for putting togethstand of the Republic of Srpska in the instier the new government of the Republic tutions of Bosnia and Herzegovina”. of Srpska. This decision was reached by Most observers and authorities on the the Executive Board of Dodik’s ruling situation in the Republic of Srpska estiUnion of Independent Social Democrats mate that, after Dodik’s election as the (SNSD) and the mandate for the creation President of the Republic of Srpska, the of the new government of the Republic centre of powof Srpska (RS) was er will shift from given to Džombić Prime Minister the prime minisby the President Aleksandar Džombić, ter’s to the presof the RS, Milorad Dodik. The new assessed that this will be a ident’s position.

While he was the government will “challenging mandate” prime minister, be formed by the the centre of the two functions of power present coalition which won an absolute was on Dodik’s side and his seat was ‘heavmajority in the RS at the general elections ier’ than the presidential one. That is why in Bosnia and Herzegovina on October Džombić’s cabinet is unofficially being re3rd, and will be made up of the Union of ferred to as Dodik’s government because, Independent Social Democrats (SNSD), obviously, the former prime minister and the Democratic National Union (DNU) the current president will have the biggest and the Socialist Party of RS (SPRS). These influence on the new government of the three parties will distribute the division Republic of Srpska. of power in accordance with the electoral Milorad Dodik has been the strongest results, and the most departments will be political figure in the Republic of Srpska, given to Dodik’s party (the SNSD) which

A

48 CorD 78 / January 2011

Milorad Dodik

as has been estimated by numerous foreign political and diplomatic analyses - an absolute ruler, both in the economic and

CROATIA

Sanader’s Dossier Many businessmen are worried because they conduct most of their business with the state and state-owned companies, while various officials are shaking in fear from not knowing whether they work for Sanader’s government or Sanader’s gang

for independence.

Medvedev’ in articles referring to the new political sense. This is why the president of The arguments which have been, and prime minister. the RS, Milorad Dodik, is the most interare being made by the international comWhen it comes to relations between esting of all regional politicians in the eyes munity, especially by the EU and USA, in Banja Luka and Sarajevo and the two govof American diplomats, at least, judging by favour of constitutional changes which are ernments - one ethnic (Serbian) and the the total number of secret and confidential also supported by the BiH Federation, say other of the BiH Federation - they are burdispatches which deals exclusively with that as a functional country, Bosnia and dened by constant tension. Especially in rethe man and his politics, and which have Herzegovina, will join European-Atlantic lation to the constitutional changes, initialso been infringed upon by Wikileaks in integrations before this, and that it can onated by the international community and the ongoing affair. Dodik is the topic of as ly be achieved with constitumany as 79 secret American analtional reform which will reyses, and for comparison sake, The new government forming by inforce the central power in there are 31 documents about the the present coalition which won an Sarajevo.

Serbian President Boris Tadić, 29 Dodik, with convictions concerning the recent President absolute majority in the RS at the general that the RS will not jeopof Croatia, Stjepan Mesić, and elections on October 3rd ardise BiH, pushed through 33 documents referring to Haris a law on the referendum which was votsupported in the Federation of Bosnia Silajdžić, until recently a member of the ed on last spring in the RS parliament. and Herzegovina and simultaneously opBiH Presidency.

This law, whose adoption stirred severe reposed by the Republic of Srpska. In this Dodik has imposed a more active role actions from officials in Sarajevo and the context, the so-called ‘Butmir talks’, organof the president and he has emphasised the high representative Valentin Inzko, will ised by the EU and the USA in October importance of the functions of the presihelp Džombić and his office defend the sta2009, have failed. Since then, Dodik, from dent “holding a significant amount of retus of the Republic of Srpska with more the prime minister’s seat, has repeatedly sponsibility for the executive power” in persistence in the further talks on constituwarned that the Republic of Srpska will the electoral campaign, as he himself stattional reform, which are not to being given not agree to the centralisation of Bosnia ed during one of his pre-election speechup by the international community, meanand Herzegovina and the alternation of the es. Incidentally, in line with this politiing to carry out Dodik’s politics to an even Dayton Agreement, and that, if this stand is cal trend, certain media in BiH emerged greater degree.

■ not respected, he will call for a referendum with the headline ‘Džombić as Dodik’s since they will probably produce concrete evidence and testimonies that Sanader received cash compensation for the favours he did. What will happen with the wrongdoings that nobody can prove like that the cash he received from Ježić (Robert Ježić, fter crossing the border into CEO of oil company Dioki) for favours that the Croatian state Slovenia on 09 December, Ivo electricity company (HEP) did for Dioki?

There are many other ‘privileged’ buyers of HEP’s electriciSanander, ex Prime Minister of Croatia, was arrested near Salzburg, ty like Dioki, and the Croatian Interior Minister, Tomislav Ivo Sanader Karamarko, says that the investigation continues and new arAustria on 10 December.

When ‘the arms of Sanader’s octopus’, i.e. the people working rests will follow.

At the aforementioned meeting of small and medium entrein ministries, public and state-owned enterprises ended up in prison one by one, most of the management structures of state preneurs at which Božo Prka issued his warning, the meeting’s host and the owner of the Antunović Hotel tried to joke about administration and public enterprises simply ‘froze in place’. the whole thing and said that “we all know At the working lunch organised by the who and why we had to pay, but I cannot Croatian Employers’ Association (HUP), the The investigation talk about that since most of the people that I CEO of PBZ Bank, Božo Prka warned that businessmen should avoid doing business is continuing and new paid money to spent that money in my hotel”.

Nobody laughed out loud and there were onwith the state and its companies as much as arrests will follow ly a few forced smiles. possible. Otherwise, they risk being invesSuch grim businessmen can also be seen at pre-holiday gathtigated by Uskok (The Bureau for Combating Corruption and Organised Crime) and the DORH (Croatia’s State Prosecutor’s erings. Quite a few of them are gloomy because the recession Office). From Sanader’s cry – “I did not run a gang, but a govern- has taken its toll. However, many businessmen are worried bement” – we can conclude that his defence will be based on prov- cause they conduct most of their business with the state and ing that he conducted his prime ministerial duties in a system state-owned companies, while various officials are shaking in that operated in the same way before, during and after his term fear from not knowing whether they worked for Sanader’s govSource: www.business.hr in the office. This will be easily disputed by Bajić and Uskok ernment or Sanader’s gang.

“I did not run a gang, but a government”

A

CorD 78 / January 2011 49

& faces

places Jean Gachassin, President of the French Tennis Federation; French Ambassador to Serbia, H.E. François Xavier Deniau; Francesco Ricci Bitti, President of the International Tennis Federation (ITF); and Slobodan Živojinović, President of the Serbian Tennis Federation, at the reception celebrating the occasion of the Davis Cup final between France and Serbia on 01 December at the French Embassy.

H.E. Dimostenis Stoidis, Greek Ambassador to Serbia at the 10th annual International Women’s Club Charity Bazaar on 04 December at Belgrade Fair. Over 5000 visitors ate, drank and bought Christmas gifts from the 40 booths run by Embassies and local businesses.

Diana Dragutinović, the Minister of Finance and Skip Bornhuetter, President of the American Chamber of Commerce in Serbia at a business lunch with representatives of the largest foreign and local companies, and members of the American Chamber of Commerce on 14 December

H.E. Ion Macovei, Ambassador of Romania to Serbia welcomes H.E. Jonghae Kim, Ambassador of the Republic of Korea, on the occasion of the National Day of Romania at Aeroklub.

Prime Minister of Serbia, Mirko Cvetković, speaking at ‘Days of Scandinavia’, which was celebrated on 02 December at the Hotel Zira. The event was attended by Ambassadors of the Scandinavian countries, business people and guests.

50 CorD 78 / January 2011

H.E. Mary Warlick, U.S. Ambassador to Serbia and H.E. Helena Studdert, Australian Ambassador to Serbia at the concert of Australian musician Joe Robinson on 30 November at the Belgrade Cultural Centre.

His Holiness Serbian Patriarch Irinej and H.R.H. Crown Prince Alexander II break the Slava cake (slavski kolač) to celebrate the patron saint of the royal family on 13 December at the Royal Chapel

On 13 December in the lobby of the RTS National Alliance for Local Economic Development NALED awarded four awards for achievers in 2010.

From left: Dragan Đilas, Belgrade Mayor (award winner); Rodoljub Šabić, Commissioner for Information of Public Importance and Data Protection (award winner); Mary Warlick, U.S. Ambassador to Serbia; Dragan Šutanovac, Minister of Defence (award winner); Adrian Martis, Deputy Head of the European Commission delegation in Serbia; Vladimir Čupić, Board Member of NALED and Zoran Radoman, Director of the Regional Tax Office in Novi Sad (award winner).

Vincent Degert, Head of the E.C. Delegation in Serbia; Head of the U.N. Mission in Serbia, William S. Infante; and Milan Antonijević ,YUCOM Executive Director celebrating Human Rights Day on 10 December at Aero Club.

faces & places

Ambassador of Finland to Serbia, H.E. Kari Veijalainen welcomes H.E. Wolfram Maas, Ambassador of Germany to Serbia, to the celebrations for the Independence Day of Finland on 07 December at the Embassy of Finland.

CorD 78 / January 2011 51

& faces

places Their Royal Highnesses Crown Prince Alexander and Crown Princess Katherine with Mr. Vladimir Cucic, Commissioner for Refugees cutting the ribbon to open the Princess’ Xmas Charity Bazaar on 10 December.

Miša Lukić, founder and owner of the advertising agency Leo Burnett was declared the ‘Marketing Person of the Year’ on 10 December and was presented with his award by Joseph Ivan Loncar, founder of the magazine TABOO, who each year bestows this award in recognition for achievements in marketing.

Ambassador of the Republic of Turkey H.E. Ali Riza Colak and Director of Turkish Airlines in Serbia Mr. Umit Kurtar, at a cocktail party which was organised by Turkish Airlines for all their clients and partners at the Hyatt Regency Belgrade on 09 December.

Nenad Prokic, President of the Group of Friendship with the Sovereign Military Order of Malta, who at the National Assembly of Serbia received the newly appointed Ambassador of the Order of Malta to the Republic of Serbia, H.E. Alberto di Luca, on 4 December.

At the celebrations for the 70th anniversary of the British Council in Serbia on 14 December at restaurant Comunale were Andrew Glass, Director of the British Council of Serbia, Ivana Đurišić, Projects and Communications Manager at the British Council and Nebojša Bradić, Minister of Culture.

52 CorD 78 / January 2011

H.E. Mario Eduardo Bossi de Ezcurra, Ambassador of Argentina to Serbia; H.E. Toshio Tsunozaki, Japanese Ambassador to Serbia and his wife Mrs. Etsuko Tsunozaki; H.E. Abdelkader Mesdoua, Algerian Ambassador to Serbia; H.E. Dante Coelho de Lima, Brazilian Ambassador to Serbia; and H.E. François-Xavier Deniau, French Ambassador to Serbia celebrate the birthday of the Japanese Emperor on 10 December at the Belgrade City Council.

air conditioning acadEmy

The LG Air Conditioning Academy was officially opened at the offices of LG Electronics Serbia in New Belgrade. This is the first specialised institution for the free development of students and experts of different profiles in the field of thermodynamics. The opening ceremony was attended by the Managing Director of LG Electronics in Serbia Predrag Todorović, the Director of LG Electronics Air Conditioning in Europe, Alan Song and numerous partner companies, the media and future teachers at the academy.

EfG scholarships

12 codEs Telenor's fourth consecutive calendar titled "12 Codes", showing the online identities of 23 young Serbian artists, was presented on 16 December at TC "Usce”. A large number of artists, public figures, partners and friends of the company attended the promotion of this unique calendar. The party continued afterward with DJ Gramofodzi, part of the global music scene and who arrived in Serbia for the occasion of this event.

For the fifth year in a row, Eurobank EFG granted scholarships worth 1,000 euros each to the best students of state universities in Serbia. The group of the 50 best students received their scholarships from Božidar Đelić, the Deputy Prime Minister, Žarko Obradović, the Minister of Education, and Philippos Karamanolis, President of the Executive Board of Eurobank EFG. The ceremony was held in the hall of the Serbian Academy of Science and Arts, in the presence of various government officials, representatives of the diplomatic corps, members of the NGO sector, academics and media representatives.

Working BrEakfast

The German Business Association organised a working breakfast for its members to discuss the laws on the subject of intimidation and the new smoking ban. The working breakfast was organised in cooperation with the Karanovic & Nikolic law office and also discussed the Law on Volunteering in the presence of about 40 interested members.

On 13th of December the Belgrade Cultural Centre formally launched the programme for "Days of Slovak Film”, which was officially opened by the Charge d'Affaires of the Embassy of the Slovak Republic in Serbia, Jan Pšenica. "Slovakian film making may not be so well known in Serbia as films from other countries, but this says more about the economic prospects than the values.

Therefore, I am extremely pleased that the Film Centre of Serbia and the Slovak Film Institute launched an initiative which has resulted in this programme", Mr. Pšenica said, addressing the many members of the audience in the Serbian language.

after work

days of sloVak film

CorD 78 / January 2011 53

“Green Initiative” Award Piraeus Bank ing ATM receipts, using electronic monthly was a w a r d - statements instead of printed ones.

The award for its Winbank Green ed with a special prize at the annual competition of the Banking initiative is the result of the com“2010 Banking Technology Awards”, which prehensive “green” environmental policy was held in London and organised by “Banking” magazine. Among the other participants were some well known and large banks such as Barclays, RBS, UBS, Deutsche Bank, Citibank, HSBC and Nomura.

Piraeus Bank was ranked first in the category of “Green IT Initiative by a Financial Institution”, for its actions that highlight its “Green Banking” philosophy, especially through The Piraeus Bank “Green Banking” branch in Athens Winbank, i.e. the bank’s alternative service channel.

Piraeus Bank was ranked first in Through a complete sethe category of “Green IT Initiative ries of “Green Banking” acby a Financial Institution” tions, Piraeus Bank informs, enables, and helps its customers and personnel become participants of Piraeus Bank, which is being continuin a comprehensive effort to reduce their ously enriched with new actions, since the environmental impact, by encouraging en- protection of the environment is a pivotvironmentally friendly behaviour, such as al philosophical position and a stable eththe use of electronic banking, not print- ical stance.

Eurobank EFG

Winner of Virtus Award

Filipos Karamanolis and Bozidar Djelic

Eurobank EFG has been awarded the Virtus Award for its contribution at the national level in the field of corporate responsibility in 2010 and has been credited for a comprehensive programme of ‘investing in European values’.

In addition to the main award, Eurobank EFG has been awarded in the category of inventive design for the “Moving Inclusive Museum”.

This is the fourth year the Balkan Fund for Local Initiatives has awarded the prestigious Virtus Award, which is intended for companies and individuals who have supported the most important projects of social significance to Serbia.

“Receiving the Virtus Award at the national level is a great tribute to all the initiatives that Eurobank EFG, together with its partners,

Largest Retail Chain

The Virtus award is for companies and individuals who have supported the most important projects of social significance to Serbia

Delta Maxi, with almost 835 million euros in sales, achieved the status of the largest retail chain in Serbia in 2009, a fact confirmed by Deloitte in its analysis of the retail sector. Deloitte’s research has found that Delta Maxi collected 1.089 billion euros in revenue in all markets in which it operates, and is also one of the three largest commercial chains in the Adria region. The largest regional trade group is Agrokor Retail ie. Konzum and Idea, and the other large player in the region is Mercator.

Agrokor’s consolidated retail revenues in 2009, amounted to 2.670 billion euros and the consolidated income of Mercator in the Adria region amounted to 2.643 billion euros.

As for the Serbian market, behind Delta Delta Maxi collected Maxi, second and third place amongst the larg1.089 billion euros in est retail chains in the country were occupied revenue in all markets in by Mercator-S and Idea, followed by Metro Cash & Carry, Univereksport and Shower Trade. which it operates

have undertaken in the field of corporate social responsibility in recent years, “ said Filipos Karamanolis, Chairman of the Executive Board of Eurobank EFG, who on behalf of the bank accepted the award presented by Božidar Đelić, Serbian Deputy Prime Minister and Minister of Science and Technology.

The prize was awarded to Eurobank EFG for its responsibility for programmes in which the bank has assisted a number of projects and actions in the field of education, public health, environmental protection, the integration of persons with disabilities into everyday life and working life and culture.

Delta Maxi

54 CorD 78 / January 2011

APPOINTMENTS@CMA.RS

Exporter of 2010

Svetlana Glumac, until recently the New Business Director & Client Service Director at Direct Media, will continue to build her career with Danube Foods Group, as their Corporate and Regulatory Affairs Director.

Her new position, which she commenced at the beginning of November, comes after working as the development director of all regional Direct Media companies (with offices in Belgrade, Skopje, Banja Luka, Sarajevo, Zagreb, Podgorica) for over eight years, where she worked as a key negotiator responsible for representing the agency in public. In this role her main activities included strategic positioning and annual planning, as well as creating strategies for maintaining the agency’s superior position against the competition.

Svetlana has BSc degree in Economics and is well known for her professional approach combined with great personal drive, interpersonal and instruction skills. She is married with two children.

David J. Rintoul, Vice President – European Operations, US Steel Corporation

Prime Minister Mirko Cvetković, hands the award to Vladimir Nikolić, Director of Tigar Tyres

THE Exporter of the Year FOR 2010 is the company Tigar Tyres and the award for the Best Export Product went to Aling-Conel medium sized enterprises the award went to the domestic producer of furniture Kolarevic, which generated 90% of its profit in the markets of Switzerland, Germany, Austria and Spain. Special recognition in this category was awarded to the Ice Cream Factory. Conquering the New Market Award went to Quadra Graphic, which managed to sell its products on the markets of Azerbaijan, Nigeria, Togo, Finland and Poland, despite fierce competition among producers from all over the world.

seven companies interested in Telekom A total of seven companies have applied for a tender to buy a 51-percent stake in Telekom Srbija, the Finance Ministry has announced.

Deutsche Telekom, France Telekom, Telekom Austria, America Mobile, Weather Investments, Turkcell and Wimpelcom were interested in buying a stake.

“The companies have until February 21, 2011 to submit a binding offer to buy Telekom Srbija; if there are several offers, an auction will be organised late in February in front of television cameras,” Vuk Đoković, State Secretary at the Finance Ministry, said.

US Steel has announced the appointment of David J. Rintoul who as of 1st January 2001 will be overseeing U. S. Steel’s two European operations: U. S. Steel Serbia and U. S. Steel Košice in the Slovak Republic. Mr. Rintoul, (53), joined U. S. Steel in 2007 as General Manager-Granite City Works in Granite City, Ill., after having spent 30 years advancing through increasingly responsible management roles at Algoma Steel Corporation in Sault Ste. Marie, Ontario; Rouge Steel Corporation in Dearborn, Mich.; Acme Steel Company in Riverdale, Ill.; and North Star BlueScope Steel in Delta, Ohio. In 2008, he advanced to General Manager – Great Lakes Works in Ecorse and River Rouge, Mich. In March 2009, he was appointed President – U. S. Steel Canada Inc., adding management oversight for all U. S. Steel Canada operations to his existing responsibilities at Great Lakes Works.

VLADIMIR OGNJENOVIC, Acting ceo of jat Airways Vladimir Ognjenovic (42) has, to date, been in the position of Deputy CEO of JAT. He graduated from the Faculty of Transportation in Belgrade, in the Department of Air Traffic.

He has worked at JAT Airways since 1995.

He has previously been the chief engineer for transport in the Operative Center, the Assistant Director in Ground Affairs, and the Director of Commercial Affairs in the branch office in Copenhagen. By the decision of the Managing Board, he was appointed as the Deputy CEO of JAT in July, 2009. According to the coalition agreement, the post of the CEO at JAT belongs to the Democratic Party.

CorD 78 / January 2011 55

appointments

The SIEPA Exporter of the Year for 2010 is the company Tigar Tyres from Pirot. The award for the Best Export Product went to Aling-Conel from Backa Palanka, while the award for the Best New Export Market went to Quadra Graphic from Belgrade. SME Exporter of the Year is the company Kolarevic from Pojate and special recognition in this category went to Ice Cream Factory from Nova Pazova and FSO Gosa from Simicevo. The Corporate Social Responsibility Exporter of the Year was awarded to Amiga from Kraljevo. Company Tigar Tyres was selected as Exporter of the Year primarily due to the large participation of export activities in the company’s gross revenues totaling 92.6%, but also for increasing the number of employees and investment in production. The Best Export Product of the Year was won by Aling-Conel for their programme consisting of installation switches, electrical connectors, and switch boards, which found a large number of buyers in the markets of the Russian Federation and EU. In the category of small and

Svetlana Glumac, Corporate and Regulatory Affairs Director at Danube Foods Group

higher tAx on toBACCo

Mercedes BenZ

BirthdAy CeLeBrAtions In1886 Mr. Karl Benz applied for a patent with classic engineering methods: a small for his Motor Car; the vehicle’s holistic de- horizontal, single-cylinder four-stroke ensign made it the first automobile. Even to- gine running on gasoline, electric ignition, a day Mercedes-Benz remains oriented to this carburettor, water-cooled radiator, steering and a tubular frame. With these features, the originality that dates back over 120 years.

The automobile celebrates its 125th first motor car came into being.

It was the Benz Motor Car’s holistic debirthday on January 29. On this date in 1886 Karl Benz applied for a patent for his sign that made it worthy of a patent. The vemotorised vehicle. With the German Reich hicle is thus an absolute original: all automoPatent No. 37435a, granted in November biles produced since that time stand in the tradition of the of the same year, his Patent Motor on january 29 in 1886 karl BenZ Patent Motor Car. applied for a paTenT for his Originality – a qualCar, as this threeity that constitutes wheeled vehicle MoTorised Vehicle the basis of the enhas since been tire brand philosophy. known, received official The further biography recognition as the world’s of the Patent Motor Car is first automobile. history. Three vehicles were It was the individualcompleted by 1888. One ised technology that sewas secretly taken out by cured the Benz Patent Bertha Benz, the inventor’s Motor Car this status. wife, who drove it with her Unlike other inventors, sons, 100 kilometres from Benz did not merely inMannheim to Pforzheim; stall an internal combusthis journey earned the vetion engine into an existhicle much publicity, and ing coach chassis, thereby Benz sold a number of cars making it capable of auto customers as a result. A tonomous motion (Greek/ Latin: auto/mobil). His design extended to four-wheeled vehicle, the Benz “Victoria”, folthe entire vehicle: it was quite clear to him lowed in 1893. This again incorporated nuthat a vehicle powered by an internal com- merous innovations, including double-pivbustion engine was subject to engineering ot steering, which is still employed in today’s principles quite different from those apply- automobiles. And so it continues: with each new vehicle, the automobile improves just ing to a horse-drawn carriage.

Benz created innovative technology that much more – to this very day.

baNCa INTESa

Best BAnk in serBiA

At a ceremony in London, the world renowned financial magazine ‘The Banker’, part of the publishing house Financial Times Group awarded the Intesa Sanpaolo Group with three prestigious awards: the Best Bank in Serbia, the Best Bank in Italy and the Best Bank in Western Europe in 2010.

“In the very complex conditions that have marked the economy in 2010, Banca Intesa has tried to remain a reliable partner for our customers, continuing with the same intensity to provide loans to business and citizens. We are es56 CorD 78 / January 2011

pecially proud of the fact that in the crisis period we made a significant contribution to the impleDraginja Đurić, mentation of macrCEO of Banca Intesa oeconomic stabilisation,” said Draginja Đurić, CEO of Banca Intesa.

In addition to the award for Best Bank in Serbia and Italy, the success of Intesa Sanpaolo Group was confirmed by the award for Best Bank in Western Europe.

The present law on excises on cigarettes shall be changed in January at the proposal by the IMF mission which was in Serbia in September, the Ministry of Finance of Serbia has decided. The excises on cigarettes will be higher in order to be equalised with those in the countries of the region. Representatives of three world tobacco companies - Philip

Diana Dragutinović, Minister of Finance

Morris, British American Tobacco and Japan Tobacco International - have announced that if excises on cigarettes are increased they will be forced to reconsider their business plans in Serbia in view of investments, prices and labour. ‘’I do not know if the IMF is aware of the fact that at privatisation of the tobacco industry the Serbian Government undertook the obligation to secure tax predictability’’, Skip

cigareTTe ManufacTurers explAIn THAT THeY ARe noT opposing The new excises, BuT ReQuIRe pReDICTABle regulaTions Bornhuetter, Philip Morris Regional Director for Southeast Europe says.

Cigarette manufacturers explain that they are not opposing new excises, but require predictable regulations. They have suggested to the Ministry of Finance an alternative solution which would secure the increase of budget income without the change of excise rates, but that proposal was rejected. If the the government happens to refuses to talk with them, the tobacco companies shall reconsider their business plans in Serbia and ‘’that shall be a very bad signal to all investors’’.

Bath and body products. Rich, indulgent, nourishing.

New store opened in Belgrade, 15 Cika Ljubina Street.

APPOINTMENTS@CMA.RS Srećko Nakić, Divisional Vice President of Droga Kolinska, Atlantic Group

The international financial magazine ‘The Banker’ which is part of the Financial Times Group, has awarded Erste Group Bank AG (Erste Group) with ‘Bank of the Year in Central and Eastern Europe’ at an official ceremony in London. In adthe bank also dition, to being named ‘Bank of received a country 2010’, it also received country awards for the Austrian subsidaward for its Austrian subsidiary iary of Erste Bank Oesterreich (for the second time in a row), and its Czech subsidiary (for the sixth time in a row).

Andreas Treichl, CEO of Erste Group, believes the awards presented to Erste Group are an acknowledgment that the “international banking community has recognised that we care about our customers in the retail sector and small and medium enterprises, especially in tough economic times.

“This has represented, and still represents a challenge and responsibility and we are proud to know that we are doing well. We are very pleased that ‘The Banker’, such a renowned magazine, has recognised our efforts in the area of the retail industry which is at the heart of the economy. “, said Andreas Treichl.

Andreas Treichl, CEO of Erste Group

Srećko Nakić has been appointed as the new Managing Board Chairman at Droga Kolinska and Vice President of Atlantic Group, Droga Kolinska Division, following the merger between the two companies. Mr. Nakić is a manager with many years of experience in managing sales, distribution and brands. He began his career at Atlantic in 1994 and has participated in all stages of the company’s development. Initially he was a sales representative in Atlantic Trade, and in 1995 he was appointed as Director of the company’s distribution centre in Split, two years later becoming the Director of the distribution centres in Istra and Kvarner. In 2002, he became the Vice President of the Sales and Distribution Division in Atlantic Group for the Croatian market. As of April 2005, i.e. until the takeover of Droga Kolinska, he was Vice President of the Distribution Division in Atlantic and in charge of managing the company’s distribution network in the entire South Eastern Europe area. Mr. Nakić studied at the Faculty of Maritime Studies in Split and completed the General Management Programme at IEDC Bled Business School.

CEE Bank of Year

THE Grey Book The new edition of the Grey Book from the National Alliance for Local Economic Development (NALED) states that out of 75 recommendations of simplifying bureaucratic procedures only six were fully accepted, and it has been estimated that when all the excessive administrative procedures are abolished, the Serbian business sector will save up to €80 million! Only submitting Loup Brefort annual financial statements in one instead of two stops can save €2 million, abolishing daily cash transfers to bank accounts will save €38 million, introducing the option of the electronic submission of VAT applications to the Tax Administration would amount to €3.5 million of savings! World Bank Country Manager in Serbia, Mr. Loup Brefort said out of 75 recommendations that the private of simplifying bureaucratic sector has the main role in the procedures only 6 was opening of new fully accepted jobs where SME has the key role, but they also can not operate if the business environment is not business friendly. In his words, competitiveness is a key factor and it will be the base after the crisis, and the state can assist by eliminating excessive regulations. Local Economic Development Expert from Croatia, Andrea Vugrinovic said that in Croatia about 500 recommendations were suggested to abolish administrative obstacles to doing business which would save between €20-900 million.

Dušan Bajić, New Chairman of the Board at JAT In early December, Mr. Bajić was elected as the new Chairman of the Board of the national carrier JAT Airways. Born in 1956 in Novi Sad, he had been a member of the Board of Directors at JAT since February 2009. He has had a rich 30-year career of which most of his time has been spent working in the economic sector of utility companies in Novi Sad and also public companies. Between 2000 and 2004 he was the Director of the Sports and Business Centre of Vojvodina, and in 2002 also served as a City Council member in charge of traffic. Mr. Bajić attended the engineering high school in Novi Sad, and later graduated from the Faculty of Economics.

Dušan Spasojević, New Ambassador of Serbia to Turkey Prior to becoming the Serbian Ambassador to Turkey, Mr. Spasojević had held the position of the State Secretary in the Ministry of Defence since July 2008, and prior to this in 2005, he was named the Vice-president of the Coordination body for the municipalities of Preševo, Bujanovac and Medveđa. He was appointed as the adviser to the President of the Republic in 2004, and subsequent to the democratic changes in 2000, he was employed in the Ministry of the Interior of the State Union, where he, among others, performed the duties of the chief of staff to the minister. Spasojević was born in 1974 in Belgrade, where he graduated from Law School, and gained a masters degree at the London School of Economy and Political Sciences (LSE). He has published essays in the area of international relations in the expert magazine ’International Politics’. He speaks English, and is married and has two children.

CorD 78 / January 2011 57

appointments

Erste Group

Petar Dobrović’s legacy

Behind the Iron Curtain

T

he partially restored Belgrade gallery - Petar Dobrović’s Legacy - after an absence of several years, has opened its doors again and is showing some of the most representative works from Petar Dobrović, one of the main protagonists of Serbian modernism.

The exhibition ‘Petar Dobrović’s Masterpieces’, which will run until November 2011, encompasses 27 oil

A

The exhibition ‘Petar Dobrović’s Masterpieces’ encompasses 27 oil on canvas paintings from various periods throughout the artist’s stylistic development

ena which are characteristic of the development of art from the second half of the twentieth century in the two biggest former communist European countries - Poland and the former USSR. The exhibition includes 200 works from private collections in Poland; most of which are from the collection of Pole Piotr Nowicki. The exhibition has been divided in to sections: ‘Triumph of Ideology’, ‘The Art of Opposition’, ‘II Avant-garde’, ‘15% of Abstraction’, ‘Symbols and Meaning’, ‘Figurations’ and ‘Transformations’.

The exhibition was organised by the Polish Foundation for Contemporary Art and the Museum of Yugoslav History, under the sponsorship of the Serbian and Polish Ministries of Culture, with the financial as-

on canvas paintings from various periods throughout the artist’s stylistic development. The organiser of the exhibition is curator Žana Gvozdenović.

Petar Dobrović (1890- 1942) was one of Serbia’s most significant modernist painters; an expressive colourist whose opus includes numerous portraits of intellectuals, women, friends, significant and ‘everyday’ people, as well as various still-life paintings and scenes of Dalmatia, Venice and Dubrovnik.

The gallery of Petra Dobrović’s Legacy is located at 36/IV Kralja Petra Street, and is open on Fridays and on weekends from 10.0017.00. Entrance is free of charge.

n exhibition of selected works of Polish and Russian art from the time of communism, created in both the official and independent scene, was opened at the Museum of Yugoslav History (Museum 25th May) in December. The exhibition presents phenom-

The exhibition presents phenomena which are characteristic of the development of art from the second half of the twentieth century

sistance of the Polish Ministry of Foreign Affairs and the Polish Foundation for Contemporary Art. The exhibition will run until February 15th.

Serbian culture in Zagreb

T

he Serbian cultural society ‘Prosvjeta’ held the ‘Days of Serbian Culture’ in Zagreb during December. In the cinema ‘Europe’ a retrospective of Marko Babac’s films, the Croatian premier of the ‘Belgrade Phantom’, and the prizewinning movies of the students of the Faculty of Dramatic Arts from Belgrade were shown. The ITD Theatre showed the movie

‘Days of Serbian Culture’ represents a platform for cultural exchange and cooperation between the Serbian and Croatian cultural environments ‘Hypertension’; directed and written by Svetislav Basara, and starring Predrag Ejdus and Branislav Trifunović.

‘Days of Serbian Culture’ has been held since 2006, and represents a platform for cultural exchange and cooperation between the Serbian and Croatian cultural environments, mindful of the traditional bonds between these two cultures, and their significant complementary and firm mutual affinities.

Serbian writers for IMPAC award

T

The Serbian novels ‘Lake Como’ by Srđan Valjarević, ‘Adulterers’

by Vida Ognjenović and ‘Hamam Balkania’ by Vladislav Bajac, the English translations of which were done by ‘Geopoetika’, a publishing house from Belgrade, are competing for the award.

Among the 162 books which are in the competition for the award this year are works from famous authors from around the world including Margaret Atwood, Paul Auster, Dan Brown, Orhan Pamuk, William Trevor and Carlos Ruiz Safon. Only 42 books by authors who are not from an English-speaking country are in the selection. The books by the three Serbian authors were put This is the first time in the history of world literature forward by the Belgrade City Library and Herceg Novi City Library. that three Serbian authors have found themselves The IMPAC Dublin Literary Award simultaneously in the wider selection for one of the will be presented in June 2011 in five most important world literary prizes Dublin, Ireland.

he works of Serbian writers Srđan Valjarević, Vida Ognjenović and Vladislav Bajac, have found themselves in the wider selection for one of the most important global literary awards – the IMPAC Dublin Literary Award. This is the first time in the history of world literature that three Serbian authors have found themselves simultaneously in the wider selection for one of the five most important world literary prizes.

58 CorD 78 / January 2011

Russia’s UNESCO donation

T

he Russian government has donated two million dollars to UNESCO for the renewal of the Serbian monasteries of Dečani, Gračanica, Peć Patriarchy and the Church of Ljeviš Virgin, in Kosovo and Metohija.

The agreement for the donation was signed in Paris by the General Director of UNESCO, Irina Bokova, and the permanent delegate of Russia to the UN agency, Eleonora Mitrofanova. The agreement stipulates that the assets, worth $2 million, are used for the restora-

Month of science

T

he fourth Festival of Science was held on December 3rd- 5th in Belgrade, under the slogan of ‘Face to Face with Science’. The festival was opened by Catherine Brechignac, the French Ambassador for Science, Technology and Innovation, and also present at the opening was Božidar Ðelić, Serbian Minister for Science and Technological Development and Deputy Prime Minister.

The Festival of Science was held at the Students’ Cultural Centre, at DS ‘Kluz’ in Masarikova Street, and at the gallery of the National Bank of Serbia. It offered interactive exhibitions and presentations in mini-laboratories, exhibitions, children’s workshops, films and lectures.

The French Cultural Centre in Belgrade dedicated its entire

The French Cultural Centre in Belgrade dedicated its entire December programme to science December programme to science. Catherine Brechignac visited the Institute of Economic Sciences where, at a lecture she gave together with Božidar Ðelić, she spoke about scientific research in Europe, and in particular about French-Serbian cooperation in the field of science.

The festival also included an exhibition of photographs by Stefan Kerves titled ‘Chemical Gardens’, and at the French Cul-

tion of the monasteries in accordance with the project which is an essential part of the contract.

The monasteries of Gračanica, Peć Patriarchy, as well as the Church of Ljeviš Virgin in Prizren were added to UNESCO’s World Heritage List in

The agreement stipulates that the assets are used for the restoration of the monasteries in accordance with the project which is an essential part of the contract 2006, under the reference of ‘Medieval Monuments in Kosovo’. Dečani monastery was individually added to the list in 2004. The medieval monuments in Kosovo have also been on the World Heritage List’s - Endangered sites since 2006.

tural Centre an exhibition dedicated to the International Year of Biodiversity, organised by the Parisian scientific centre ‘La Villette’, was held.

Serbian comics in Leipzig

T

he National Library of Serbia will present three exhibitions at the International Book Fair in Leipzig in 2011, where Serbia will be the guest of honour. The first

The second exhibition is a sort of analysis of the alternative comic scene during the 1990s in Serbia exhibition displays comics which have been created in the last 15 years, where the stories take place in Serbia or Belgrade, or their protagonists are characters from Serbian history and culture. The second exhibition is a sort of analysis of the alternative comic scene during the 1990s in Serbia.

The ‘Two Radoslavs, Two Times’ exhibition, created in 2004, represents two parallel stories which describe two eras of history in Serbia.

All three exhibitions will be set up under the cupolas of Leipzig Fair in a hall entirely dedicated to comics.

Serbia, as the guest of honour of the fair, is preparing a range of literary promotions, lectures, workshops, meetings of authors with readers and other programmes which

will present contemporary Serbian culture and Serbian heritage to fair attendees.

Ten centuries of Serbian literature

T

he first edition of the anthology ‘Ten Centuries of Serbian Literature’, which encompasses the most significant works of Serbian literature (from medieval to the twentieth century) and which is published

by Matica Srpska, was presented in Belgrade in December. This is the first publication in 40 years which collects in a single location, all the greatest achievements of Serbian literature. The last edition which represented Serbian literature in its entirety was ‘Serbian Literature in One Hundred Books’ which was published in the 1960’s.

This year’s edition includes the literary

This is the first publication in 40 years which collects in a single location, all the greatest achievements of Serbian literature works of Saint Sava, national literature, poetry from Dubrovnik and Boka Kotorska, the works of Dositej Obradović, Jovan Sterija Popović, Njegoš, Bora Stanković, Ivo Andrić, Miloš Crnjanski and ‘the Anthology of Serbian Poetry’ by Miodrag Pavlović.

This anthology involved the efforts of some of the greatest authorities from the area of literature.

CorD 78 / January 2011 59

CLASSICAL MUSIC Strauss Festival Orchestra - Gala Concert Sava Center, Great Hall 13 January, 20.00 The Strauss Festival Orchestra is a production created in cooperation with several established ensembles of the highest quality and reputation, bringing Strauss’s music to a growing audience each New Year.

Made up of musicians of the highest professional and musical standards and qualifications, the Strauss Festival Orchestra has managed to keep the typical Viennese artistic expressions alive, awakening the interest of the most demanding audiences all over Europe. The Strauss Festival Orchestra and the Strauss Ballet Ensemble with full choreographies and beautiful ballet costumes will make this version of the New Year´s Concert a unique and a spectacular event to start the new year with.

Programme: First Part 1. Overture The Bat 2. Emperor, Waltz, Op. 437 3. Couplet of Adele The Bat 4. Be United Millions, Waltz, Op. 443 5. Spanish March, March, Op. 433 6. Flower Festival, Polka, Op. 111 7. Roses from the South, Waltz, Op. 388 8. Furioso, Polka, Op. 260 9. Champagne, Polka, Op. 211 10. Tales from the Vienna Woods, Waltz, Op. 325 11. Magic Bullets, Polka Schnell, Op. 326 Second Part 1. Overture Carnival in Rome 2. Artist’s Life, Waltz, Op. 316 3. Seconds, Polka, Op. 258 4. Couple of Arsena The Bat 5. Thunder and Lightning, Polka, Op. 324 6. Wine, Women and Song, Waltz, Op. 333 7. Rider’s March, March, Op. 428 8. Klipp Klapp, Galop, Op. 466 9. Lawsuit, Polka Schnell, Op. 294 10. Voices of Spring, Waltz, Op. 410

Tickets available from BILET Servis, Trg Republike 5, (011) 30 333 11 and at the Sava Centre, Milentija Popovica 9 Phone – (011) 220 60 60 www.savacentar.net Concerts in Kolarac Concert Hall New Year`s Concert 03 January, 12.00 Classical guitar player 60 CorD 78 / January 2011

Vojin Kocić, guitar Entrance is Free Ensemble for the Old Music “Flauto Dolce” 09 January, 11.00 Baroque music and music from Shakespeare Theatre Entrance is Free Belgrade String Orchestra “Dušan Skovran” 31 January, 20.00 Conductor - Predrag Gosta Programme - Viren, Sostakovitch, Maksimovic Belgrade Philharmonic Orchestra Concerts All concerts are in Kolarac Hall 14 January at 20.00 Conductor: Darko Butorac Soloist: Darko Piler, violin Programme: P. Konjovic: Kostana Symphonic tryptich Casa Mare, Frank Gaudlitz Photo exhibition Ethnographic Museum, Studentski Trg 13, Belgrade Until 06 February Frank Gaudlitz (born in 1958 in Vetschau) became well known for his photo project Warten auf Europa (Waiting for Europe), in which he travelled along the Danube River from the Black Forest to the Black Sea, photographing portraits of people he happened to meet on the way. In a deliberately contrasting new series, Casa Mare, Gaudlitz asked people in southern and central Eastern Europe (Hungary, Serbia, Romania, Moldavia) to pose for him in their living rooms, dressed in their most festive clothing. In this series, Gaudlitz shows us different cultural traditions that are threatened due to the eastward expansion of the European Union.

S. Hristic: Legend of Ohrid Lake - Grlica P. Sarasate: Zigeunerweisen Op. 20 K. Blagojevic: Balkan Dances No. 1 and 2 S. Binicki: March on the River Drina N. Rimski-Korsakov: Snowmaiden - Dance of the Tumblers N. Rimski-Korsakov: Tsar Saltan - Flight of the Bumblebee M. Mussorgsky: The Fair of Sorochinsk – Gopak 21 January at 20.00 Conductor: Francesco La Vecchia Soloist: Yossif Ivanov, violin Programme: G. Verdi: I Vespri Siciliani, overture E. Lalo: Symphonie Espagnole G. Mahler: Symphony No. 1 D major 28 January at 20.00 Conductor: Yunsung Chang Soloist: Kyungeun Kim, piano Programme: B. Smetana: The Bartered Bride, overture F. Chopin: Piano Concerto No. 1 Op. 11 E minor J. Brahms: Symphony No. 2

Tickets available at Kolarac Foundation Hall Studentski Trg 5 Phone – (011) 263 05 50 www.kolarac.rs

ART Ethnic Chic & I Love Belgrade In the ‘Belgrade Window’, Belgrade Cultural Centre, Trg. Republike Until 31 January Saleable Collections of Souvenirs The collection of souvenirs ‘Ethnic Chic’, created by artist and designer Ivana Kalina Mitrovic, consists of T-shirts, cups, coasters, bags, alarm clocks etc. Kalemegdan Fortress is a dominant motif, with stylised human designs taken from old carpets and motifs of animals and tools, from the 18 century, presented in a contemporary fashion.

The second collection of ’I Love Belgrade’ grew out of the creator’s personal relationship with the city and consists of unique items including plates, mugs, shirts, bags and pens. The creator of the collection is graphic designer Ivana Radenkovic.

Behind the Iron Curtain Museum “25 May” - Boticeva 6, Belgrade Until 15 February This exhibition presents the official and independent art scene from the

USSR and Poland, of the period between 1945 and 1989, and features various pieces of art from private collections and museums. The exhibition has been organised by the Poland Foundation for Contemporary Art and the Museum of Yugoslav History under the patronage of Ministry of Culture of Serbia and the Ministry of Culture and Cultural Heritage of Poland.

Tron Legacy Premiere: 05 January, Cinema RODA Starts: 06 January Director: Joseph Kosinski Stars: Jeff Bridges, Garrett Hedlund, Olivia Wilde, Bruce Boxleitner, James Frain, Beau Garrett, Michael Sheen Science Fiction, Adventure A virtual-world worker looks to take down the Master Control Programme.

Green and Black - A Story about Tea Scientific exhibition Natural History Museum Gallery, Mali Kalemegdan 5 Until 30 March The Chinese plant ’camellia sinensis’ is a species whose leaves and leaf buds are used to produce Chinese tea. It is of the genus of flowering plants in the family Theaceae. White tea, green tea, oolong, pu-erh tea and black tea are all harvested from this species. This exhibition presents The St. Petersburg State Ballet on Ice - “Nutcracker” Sava Center, Great Hall 22 January The Saint Petersburg State Ballet on Ice (formerly the Leningrad State Ballet on Ice) founded in 1967 by the outstanding choreographer Konstantin Boyarsky, is the successor of the remarkable traditions of the St. Petersburg School of Classical Ballet. Konstantin Boyarski founded the state ice ballet and established it with a rendition based on Tchaikovsky’s ‘Nutcracker” combining figure skating with classic Russian ballet for the first time. The dancers of the St. Petersburg state ballet on ice also stem from the ’forge’ of the most famous Russian figure skating dynasties. After

Dylan Dog: Dead of Night Starts: 13 January Director: Kevin Munroe Stars: Brandon Routh, Peter Stormare and Taye Diggs, (Thriller) The adventures of supernatural private eye, Dylan Dog, who seeks out the monsters of the Louisiana bayou in his signature red shirt, black jacket, and blue jeans. a new look at tea, and also follows the path of tea throughout history - from China to the rest of the world.

It also includes various types of tea pots, cups, and methods of preparing tea. Organisers of the exhibition are Desa Đorđević Milutinović, Olja Vasić, and Balša Đurić.

FILM PREMIERES The Green Hornet Starts: 13 January Director: Michel Gondry Stars: Seth Rogen, Jay Chou and Christoph Waltz Action By night, debonair newspaper publisher Britt Reid fights crime as a masked superhero known as The Green Hornet.

At his side is martial arts expert Kato.

Love and Other Drugs Starts: 20 January Director: Edward Zwick Stars: Jake Gyllenhaal, Anne Hathaway and Judy Greer Drama Maggie (Hathaway) is an alluring free spirit who won’t let anyone - or anything - tie her down. But she meets her match in Jamie (Gyllenhaal)...

Hereafter Starts: 20 January Director: Clint Eastwood Stars: Matt Damon, Cécile De France and Bryce Dallas Howard A drama centred on three people - a blue-collar American, a French journalist and a London school boy - who are touched by death in different ways.

Morning Glory Premiere: 12 January, 20.00, Dom Sindikata Starts: 13 January, 20.00 Director: Roger Michell Stars: Rachel McAdams, Harrison Ford, Diane Keaton, Patrick Wilson, Jeff Goldblum Romantic comedy An upstart television producer accepts the challenge of reviving a struggling morning show programme with warring co-hosts.

The Dilemma Premiere: 26 January, 20.00, Ster Cinemas Starts: 27 January Director: Ron Howard Stars: Vince Vaughn, Kevin James, Winona Ryder, Channing Tatum Comedy A man discovers that his best friend’s wife is having an affair. their successful sports careers the dancers of “Swanlake on Ice” decided to devote their sporting talents and their performing capabilities to the artistically demanding St Petersburg State Ice ballet that remains unique throughout the world to this day.

Tickets available from BILET Servis, Trg Republike 5, (011) 30 333 11 and at the Sava Centre, Milentija Popovica 9, Phone – (011) 220 60 60 www.savacentar.net CorD 78 / January 2011 61

Serb adventurers Certain Serb adventurers have left century-long trails behind them; some have acquired false identities, some of them have been rulers, diamante hunters, and double agents

the chamPaGnE of life

By Jelena aLeksić

“A

dventure is the champagne of life” someone once said. Stories about Serb adventurers confirm this claim and testify that even without any knowledge or pedigree, one can successfully rule a country where people believe their emperor is Peter III who happens to be dead at the time. Little is known about the fact that a Serb was the founder of the American branch of the Masonic Lodge or that the movies about James Bond were based on the life of none other than a Serbian spy.

Count Sava

Founder of the Russian Intelligence The list of such self-proclaimed rulers, medicine men, scientists and warriors starts with the name of Sava Vladislavić Raguzinsky, or ‘Count Raguzinsky’, as he was known in Russia. Adventurer, spy, diplomat, trader and the personal middleman of emperor Peter the Great.

Sava was born in 1668 at the feudal property of Vladislavić in Jasenik, near Gacko in Herzegovina. When Turks attacked the property, Sava went to Dubrovnik with his father, and later 62 CorD 78 / January 2011

to Istanbul to broaden their trading relations. Due to his good negotiation skills, the Jerusalem patriarch recommended him to the Russian ministry of foreign affairs.

Count Sava acquired the contract of the government with France, Venice, England and Austria. These contracts contributed to the creation of the Russian-Turkish peace treaty, and opened Vladislavić’s way to the Great Court of Emperor Peter.

On Sava’s suggestion, the emperor, at the beginning of the 18th century, sent the first grammar book and spelling book to Sremski Karlovci, which was brought by teacher Maxim Suvarof to the future centre of Serbian spirituality. This marked the foundation of the first Serbian school in Sremski Karlovci.

Engaged as a trading and diplomatic middle-man for Russia (together with Count Peter Tolstoy, whose descendent is the famous writer Leo Tolstoy), Sava Vladislavić had another connection to Russian literature: in Istanbul he bought a young Ethiopian slave, Ibrahim Hannibal, and sent him to Peter the Great in Russia. Ibrahim Hannibal was great-grandfather of Alexander Pushkin. Count Sava Vladislavić was the founder of the Russian intelligence service, and he received a grant worth 325 roubles a year for his intelligence work. Peter the Great gave him a castle in Moscow, on the River Pokrivna, and a tenyear long right of free trade.

Thanks to his engagement in 1725, a border between Russia

and China was drawn up. The borders created then are still valid to this day. He negotiated with the Chinese emperor himself and was one of the first foreigners to enter the ‘forbidden city’.

Even nowadays, the saying ’He who does not throw money out on the street, will never find it’ is well-known in Russia, and was Sava’s response to critics who, at the time, were telling him that dealing with China was a waste of time. In his last years, devastated by the deaths of his three daughters, Vladislavić was given permission to found the city of Troicosavsk (nowadays Kiahta) in Siberia. There, he erected a temple, naming it the Church of Serbian Saint Sava Nemanjić. He died in Saint Petersburg in 1738.

šćepan Mali (Stephen the little) A false emperor

Two adventurers are connected to the name of Šćepan Mali. One of them left quite a permanent mark on the history of Montenegro, and the other has left behind a livelier personal history.

A hobo, tramp and man of unknown identity appeared in the Montenegrin hills in 1766 and started presenting himself as Peter III, ‘the third miraculously surviving husband of the Russian Empress Catherine’.

A great love for the protector of Russia led the isolated and uninformed Montenegrin tribes to elect this man as their lord.

With hails of “long live the emperor” at the session in 1767, he went on to rule Montenegro from 1767 to 1773. Although one would have expected this con-artist to behave in an utterly unreliable fashion, he turned out to In 1766 Šćepan started be a rather capapresenting himself as Peter ble ruler for that III and the people elected time. He organised Montenegrin him to be their ruler tribes in a fashion which had eluded all previous rulers. He visited and made peace among the feuding tribes with ‘his royal’ authority; he eradicated blood revenge under the threat of death sentence; he started the population census and established the first permanent court in Montenegro. Although he had adversaries among the Montenegrins, his greatest enemies were among the powerful neighbours who clearly understood he was a self-proclaimed man who did not fit in with their interests. He survived several poisoning attempts by Turkey and the Venetian Republic.

By the irony of faith, the man who was trusted by tens of thousands of people was killed by the man he trusted the most - his barber, bribed by the Turks.

šćepan Mali (Stephen the little) The Second Con

A few years later, a new self-proclaimed man appeared amongst the Montenegrins, named Stefan Hannibal Zanović,

but Montenegrins did not trust him. He wandered around Europe and presented himself as the Russian emperor Peter the Third (Šćepan Little), claiming he was the descendent of old Serbian rulers who wanted to renew the Serbian empire. He corresponded with philosophers Walter and Russo, and was friends with Casanova. A German baroness wrote that he was the most beautiful creature on earth she had ever seen. He published 20 books under various names. Our great adventurer finally went to jail where he committed suicide.

Duško Popov

James ‘the Great Serb’ Bond Dušan-Duško Popov was born in Titel, Austro-Hungary, now Serbia, in 1912. He was a charismatic spy with the code name of Tricycle, which was also the name of the spy-web he was Many claim that included in. Many claim that writer Ian Fleming writer Ian Fleming based the fabased the famous mous character of secret agent James Bond on his personality. character of secret Fleming worked in the agent James Bond British navy intelligence servon his personality ice during the Second World War and he was in charge of following the charismatic spy, who had been recruited to work as a double agent for the British. Duško Popov was a young, wealthy Serbian businessman, who managed to continue his career of a being playboy even during the wartime while also conducting deathly missions for the United Kingdom.

He was scouted to work for the Nazis at the beginning of the war, but Popov, who hated them, instantly offered his services to the British intelligence service. They accepted him as a double agent and he went to live in London. His international business activities provided him with a screen for visits to neutral Portugal, which was connected to Great Britain with weak air traffic throughout most of the war. From there, Popov sent to the Germans enough information approved by the MI5, British Intelligence service, that the Germans were pleased with him and richly rewarded him for his services. The information they provided him with, during his assignments, was significant for the British in the prevention of enemy plans, as well as for their own planning. Popov was sent to the United States for the acquisition of new information. He then made contact with the FBI and explained to them that one of the things on his list was information about Pearl Harbour.

Popov was a notorious womaniser, and it seems that he was given the codename ‘Tricycle’ because of his tendency to make love to two women at the same time. However, it is more likely that his previous codename ‘Scoot’ was altered to ‘Tricycle’ when his two subagents (‘Balloon’ and ‘Jelly’) were hired, so that the three of them would function as three wheels of a tricycle. He is known for having had an affair with the actress Simone Simon.

CorD 78 / January 2011 63

Unfortunately, the head of the FBI, Edgar Hoover, probably for the above-mentioned reasons did not like Popov and so he ignored the information that was being delivered to him. Popov stayed at the finest hotels, visited the best casinos and was a bohemian. He died in 1981, at the age of 69, leaving a widow and three sons behind.

Richard M. Milanović A Serb with Indian blood

Richard Milanović is a modern-adventurer. His father Steven Milanovic Milanovic, a Serb from Zagreb, moved to the USA in the 1920s and worked in a steel mill in Gary, Chicago. Being an adventurer himself his father explored the American West, journeying Milanović is to Palm Springs where he met Lavern Miguel of the currently serving Indian tribe Agua Caliente. his 25th year as Friends told how he met an Chairman of the Indian princess with whom Agua Caliente Band he “had to marry”, and Richard Milanović was a reof Cahuilla Indians sult of this union.

Richard Milanovich has played a strong and ongoing role in the tribal lives of local American Indians. His lengthy service on the Tribal Council started as a member in 1978, then as secretary (1982-1984) and then Tribal Council Chairman.

A testament to his unwavering leadership, Milanović is currently serving his 25th year as Chairman of the Agua Caliente Band of Cahuilla Indians. Many important tribal and community projects have been undertaken during his tenure and these have brought a much-needed boost to the Palm Springs and Coachella Valley economy and to the tribes themselves, allow-

Death on the Titanic

N

ot even the greatest peace-time adventure, such as the catastrophe of the ship Titanic, on April 14th 1912, could pass without Serb involvement. Nineteen people of Serbian origin went to the bottom of the Atlantic Ocean together with about 1,500 unlucky passengers. There is an interesting story about how a famous trader Petar Krstić was exporting wines from Fruška Gora to England and Finland at that time. He was trying to push his finest wines to the States as well. This wine was shipped over the Atlantic on the Titanic, but Petar’s product never reached the New World.

64 CorD 78 / January 2011

ing self-sufficiency through education, cultural preservation, housing and health care programs. Mr. Milanovich is also part of the Native American Stewardship Committee for the prestigious Autry National Centre, and has served as a member of the Bureau of Land Management’s California Desert Advisory Council, and the Native American Heritage Commission.

Ðoka Fisherman

Originator of Adventure Prose After the great discovery of America, explorers from all around the world sailed across the ocean. It was a great adventure to which Serbs were not im- He was a man with mune. Ðorđe Šagić was born eight names and near Budapest, and came to four wives Serbia in 1813 to fight in the Second Revolution. He is said to be the first Serb who set foot on American soil, in 1815. He was discovered as a blind passenger on the ship and presented himself as ‘Ðoka Fisherman’.

He was a man with eight names and four wives. He was also a Mason, who is known for opening the first Masonic Lodges in Mexico and the USA. In America, he was the director of customs, the war commissioner, the owner of a printing house, a magistrate for hanging rustlers and thugs, and at the time of gold fever he dug out two saddlebags of gold. He participated in the American-Mexican War and in the establishment of the independence of the State of Texas in 1836. His memoirs are said to be the beginning of adventure prose in the USA.

Sreten Božić

A European amongst Aborigines Even nowadays in the Australian desert people are still looking for precious stones. The richest precious stones’ mine is in Lightning Ridge, and it is here that the most beautiful and expensive black opal is extracted.

Sreten Božić (Bog Vognar), from the village of Gornja Trešnjevica near Aranđelovac, went to Australia in 1960 without knowing a word of English. He found a job on the opposite side of the continent to where he was, and the shortest way there He was proclaimed a was through was holy messenger and the Tanami Desert.

He almost died, and was given an Aborigine was saved by an woman for a wife Aborigine. He was the first European to enter his rescuers village and he lived with them for 10 years. Being the first white man in their tribe, he was proclaimed a holy messenger and was given an Aborigine woman for a wife. He wrote dozens of books about them.

Today, he lives in the surroundings of Melbourne with his dingoes and writes. The Australians call him the Dingo Man. ■

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ELECTRICIAN STUNS ART WORLD

Pablo Picasso was hugely prolific and famously generous with his work, but was he enough of a free spirit to give hundreds of his early works to his electrician?

That question lies at the heart of a court case over the origin of 271 Picasso works recently unveiled to the public. Experts have yet to appraise the full collection, but there is little dispute so far over its authenticity.

The works could fetch more

than 60 million euros at auction. The mystery is how such an extensive collection has wound up in the hands of a retired electrician in the south of France who once worked for the Picasso family, or why he chose to hold onto it for so many decades. The electrician claims the paintings were given to him by Picasso’s wife, and has denied stealing them and says he is now only asking about their value as a possible inheritance for his children.

(Source: www.reuters.com)

VACATION WITH CLOONEY

Americans would invite comedian Ellen DeGeneres to a holiday party, take a vacation with actor George Clooney and ask first lady Michelle Obama to decorate their Christmas tree, a survey has revealed. The first lady got 38 percent of the vote among Americans asked who should decorate their home for the holidays, followed by Sarah Palin Four clones of Dolly the Sheep have been made with 22 percent. Also on the decorating wish list, Playboy foundby the scientist behind the original genetic research, it er Hugh Hefner got 16 percent, comedian Joan Rivers 13 perhas been reported. The quads, nicknamed ‘The Dollies’, are cent and entertainer Lady Gaga 11 percent. Given a list of cesaid to be exact genetic copies of their predecessor, who was lebrities to select from, 39 percent picked DeGeneres put down seven years ago. The original Dolly was plagued by as their number one party guest, followed by comedihealth problems and suffered from premature arthritis. She an Whoopi Goldberg with 29 percent. As for a holiday was put down in 2003 after contracting lung disease. “Dolly getaway, 43 percent said they would like to spend a day is alive and well. Genetically these are Dolly,” Professor at Clooney’s Lake Como villa in Italy, 27 percent chose Keith Campbell, who keeps the Dollies as pets on land (Source: Oprah Winfrey’s Santa Barbara estate and 20 per cent at Nottingham University, told the Daily Mail. “We are www.reuters.com) picked the French chateau of Brad Pitt and Angelina Jolie. not doing anything to them, they have no health concerns and they show none of the signs of task force sent to recover the Falklands in 1982 afBritain, undeveloping the arthritis that Dolly had.” ter the islands were occupied by Argentinean forces.

Queen der pressure to (Source: www.telegraph.co.uk) ter pilot raise money to cut a Elizabeth’s son, Prince Andrew, served as a helicoprecord peacetime budg- on the ship during that conflict. The Invincible was decommissioned ALL et deficit, has put an old air- and mothballed in 2005.

BIDS CONSIDERED craft carrier up for sale on a govBidders have until January 5th to make an offer, the ernment website, the Ministry of Defence has said. The ministry is Ministry inviting bids for the HMS Invincible, which saw action in the 1982 of Defence Falklands war, on its ‘disposal services’ website, set up to sell surplus military equipment. The ship, completed in 1980, was part of a British said.

DOLLY CLONES

(Source: www.reuters.com)

PONTIAC - DEATH OF AN AMERICAN ICON It’s unlikely to cause much lamenting in this part of the world but Pontiac, one of the American car industry’s best-known names, has gone out of business.

The closure comes a year after parent company General Motors announced its shutdown as part of a major restructuring to save itself from bankruptcy. The last model was built in May 2010 and the year’s sales were less than one per cent of the 2.2 million cars and trucks GM was expected to sell. The brand is best-known in the UK for the occasional special import – it was nev-

66 CorD 78 / January 2011

er sold directly by GM in Britain – but also as the car driven by Burt Reynolds and Sally Field as they fled the law in a Pontiac Firebird TransAm in the 1970s film Smokey and the Bandit.

By the late 1980s Pontiacs had already shed their muscle-car image and were becoming more sober-suited after a GM reorganisation that saw the brand forced to share manufacturing, engineering and design operations with those of other GM brands.

“There was no passion for the product,” recalled Bill Hoglund, a retired GM executive who led Pontiac during its ‘We Build Excitement’ advertising campaigns of the 1980s. “The product had to fit what was going on in the corporate system.”

Pontiac was formed in 1926 and made cars for the working class until sliding sales in the 1950s nearly killed the marque. It was only by linking it to the exciting world of drag racing that GM managed to prevent Pontiac from folding. One of the best-known Pontiacs was the ready-to-race GTO (produced from 1964 to 1974), driven by a powerful – and thirsty – V8 engine, in the days before fuel consumption mattered.

In 1968 Pontiac’s sales hit nearly one million, but it was a feat that was never to be repeated.

(Source: www.telegraph.co.uk)

SPIDERS BY MAIL

Service agents then intercepted two more packages, one containing nearly 250 live tarantulas, wrapped in coloured plastic straws. The second package was found to hold 22 Mexican red-kneed tarantulas, a species formally known as Brachypelma Smithi that is protected under an international treaty. According to the criminal complaint, agents believe Koppler has received about $300,000 for selling tarantulas to individuals in dozens of countries throughout the world.

A German man who allegedly shipped hundreds of live tarantulas into the United States through the mail has been charged with illegally importing wildlife. Sven Koppler, 37, was arrested by federal agents late on Thursday, shortly after arriving in Los Angeles to meet an associate. The investigation into Koppler began in March, when a routine inspection turned up about 300 live tarantulas in a package mailed to Los Angeles. US Fish and Wildlife

WORLD’S PRICIEST HOME

POLICE EAT EVIDENCE Blundering police ‘ate court evidence’ after buying pizzas meant for their suspects. The police officers dined on pizzas at a crime scene before realising they had been ordered by a gang of suspects and should have been kept as evidence, a court heard. Prosecutors said the pizzas were ordered by a gang who had lured their drug dealer victim to a house. The alleged attackers fled the house before the officers arrived but only after calling their local Domino’s Pizza branch to order dinner. On arriving at the scene the officers came across the confused delivery boy, who offered to sell the pizzas for a reduced rate. The officers then ‘ate the evidence’ after failing to realise the pizzas were linked to the house they were meant to be investigating.

(Source: www.telegraph.co.uk)

(Source: www.reuters.com)

Indian billionaire Mukesh Ambani has hosted a lavish ‘open house’ party at his opulent new skyscraper residence, believed to be the world’s most expensive private home. Around 80 of India’s rich and famous attended the festivities at his justcompleted 174 metre tall home, which dominates the skyline above Mumbai’s traffic-choked roads, the Times of India reported. The building is said to be the world’s priciest private residence, with a price tag of over $1 billion. Top-selling Indian novelist Shobhaa De, who attended the party, called the building “the Taj Mahal of the 21st century”. Mr Ambani, who heads India’s largest private company, petrochemical giant Reliance Industries, will need 600 employees to maintain the palatial residence, reports have said. Mr Ambani, 53, is India’s wealthiest man with a $27 billion fortune, according to Forbes.

(Source: www.abc.net.au)

ECO-FRIENDLY CHRISTMAS An aquarium in Japan has been shocking visitors with its Christmas tree display - using an eco-friendly electric eel to illuminate the lights on its holiday tree. Each time the eel moves, two aluminium pan-

NO HOLIDAY FROM EMAIL

(Source: www.reuters.com)

noyed, frustrated or resentful over receiving work emails from a co-worker or a client while on vacation. Nineteen percent, on the other hand, said they were thankful or relieved at having the distraction of receiving work emails while on holiday.

Forty-two percent of those who check work email while on vacation said staying up-to-date on email eases their workload when they return to the office.

chill out!

Americans will take a break from the office over the holidays but most won’t stop checking their work emails, according to a recently released survey. The survey conducted for an email software firm, found that 59 percent of employed American adults will consult work emails over the holidays. Fifty-five percent will check work emails at least once a day and 28 percent will do so multiple times throughout the day. Forty-one percent said they were an-

els gather enough electricity to light up the two meter tall tree in glowing intermittent flashes. The aquarium in Kamakura, just south of Tokyo, has featured the electric eel for five years to encourage ecological sensitivity.

(Source: www.independent.co.uk) CorD 78 / January 2011 67

travel

Putting a smile on your face!

TUI, the world’s leading tour operator from Hannover, Germany has recently commenced operations in Serbia, by opening their own branch of TUI ReiseCenter in Belgrade, at Simina 21 68 CorD 78 / January 2011

T

he citizens of Serbia can now travel with a smile on their face with this well respected company, which holds numerous awards for innovations in the world of modern tourism, and whose logo is simply a smile!

Regardless of whether TUI’s ‘friendly smile’ logo charms you, TUI ReiseCenter prides itself on “putting a smile on people’s faces” with their exacting standards, and their offering of exceptional comfort, convenience and the

first class service, sip your favourite cocktail on a white safety of organised travel. For these reasons they are consandy beach and finally know what it feels like to trufident that you will end up travelling with a smile! ly relax? If this sounds more like you we can suggest, as This world renowned tour operator ensures that, no an example, 14 days at Punta Cana in the Dominican matter what destination or travel arrangements you seRepublic at the 5-star RIU Hotel (all inclusive), from just lect - you will always enjoy a sense of security and be as€899 per person! sured of the fact that you will be getting the best value for For culture lovers we know that you might want your money. to experience something a little more refined than Wherever you decide to go for your winter holiday, the beach. Why don’t you let us take you to Cuba or TUI will make sure that even prior to your departure, Thailand, or just to Egypt ... and we know you will cerreliability is secured through the ‘snow guarantee’ or tainly be thrilled! will take care that your winter sports equipment is covAt the beautiful Canary Islands, you can swim in the ered by the relevant travel insurance. sea throughout the year. We The friendly and smiling can organise a holiday for you staff at TUI will help you select TUI specialises in individual the most suitable winter destravel, understanding that this is to Lanzarote, with a very special offer at the 4-star plus RIU tination and accommodation, what most customers want - to Olivina Resort (all inclusive) just right for your tastes and refor seven days from just €389 quirements. They will be assistpersonally create a holiday of per person! ed by sophisticated catalogues their choosing!

Of course, these are just that will fulfil your every pera small selection of the many sonal request, to enhance your ideas we have at TUI. No matter what destination you long-awaited holidays. For example, for a seven-day holchoose and which method of transport you select, TUI iday to Austria, at the 4-star Hotel Alpina on a half board will always be with you to assist and solve any probbasis, prices range from only €399 per person! lems, so you can enjoy your holiday and return home TUI specialises in individual travel, understanding relaxed. that this is what most customers want - to personally Welcome to the world with a smile! create a holiday of their choosing! At the same time customers also want to have a wide choice of hotels, apart TUI ReiseCenter, www.tui-reisecenter.rs ments, and villas, and TUI is able to provide all this.

Maybe you’re not such big a fan of winter? How would you like to escape to the warm tropics; to enjoy

CorD 78 / January 2011 69

christmas & new year

steeped in tradition A great deal of importance is given to the first visit a family receives on Christmas Day. People expect that it will summon prosperity and well-being for their household in the following year prepared by philomena o’BRien

C

hristmas in Serbia surpasses all the festivities celebrated by Serbians in regards to the diversity of folk customs and rituals. These may vary from region to region, and some of them now have modern versions that have been adapted to the contemporary way of living. There are a lot of old Serbian traditions associated with the countryside, which have now lost their mean-

Gift giving It is not a part of Serbian tradition to exchange gifts during Christmas.

Gift giving is, nevertheless, connected with the holiday, being traditionally done on the three consecutive Sundays that immediately precede Christmas. Children, women, and men, respectively, are the specified gift-givers on these three days. Most Serbian families also give presents on New Year’s Day. Santa Claus (Deda Mraz or Grandpa Frost) and the Christmas tree (often more associated with New Year’s Day) are also used in Serbia but more as a result of globalisation.

70 CorD 78 / January 2011

ing because more people tend to live in towns and cities.

Serbians celebrate Christmas for three consecutive days, and during this festive time, people greet each other with “Christ is born,” which should be responded to with “Truly he is born”. The Serbian name for Christmas is Božić, which is the diminutive form of the word bog, meaning ‘god’.

The reason Serbia celebrates it’s Christmas Day on a different day to many other countries around the world is due to the fact that the Serbian Orthodox religion uses the traditional Julian calendar, rather than the Gregorian one.

This means that Christmas Day falls on 7th of January, with Christmas Eve on the 6th of January.

Christmas eve The Serbian name for Christmas Eve during the daylight is Badnji Dan, and after the sunset it is known as Badnje Veče. On this day the family makes preparations for the oncoming celebration.

The Badnjak and straw An important part of Christmas Eve is the ‘badnjak’, and there are many regional variations surrounding the customs and practices of this. Traditionally early in the morning the head of each family, usually accompanied by several male relatives, selects and fells the tree from which the log will be cut for their household. When the head of household finds a suitable tree, he stands in front of it facing east.

After throwing grain at the tree, he greets it with the words “Good morning and happy Christmas Eve to you”, makes the sign of the cross, says a prayer, and kisses the tree. He then cuts it slantwise on its eastern side, using an axe. Some men even put gloves on before they start to cut the tree, and from then on never touch the badnjak with their bare hands. The tree should fall to the east, unhindered by surrounding trees. Its top is removed, leaving the badnjak of such a length that allows it to be carried on a man’s shoulder, up to about 2.5 meters long. Once in the home, each badnjak is leaned vertically against the house beside the entrance door. In the evening, a man of the family brings their badnjak into the house. Stepping across the threshold, right foot first, the man greets his gathered family with the words “Good evening and happy Christmas Eve to you.” The woman of the house greets him back, saying “May God give you well-being, and may you have good luck”, before throwing grain from a sieve at the man and the badnjak he carries. Immediately after the badnjak has been brought into the house, or immediately before in some places, an armful of straw is spread over the floor. The reason behind this tradition is simulating the connection of the household with the earth, (or others say this is a symbol of the stable/cave where Jesus was born).

Dinner Christmas Eve in Serbia is the last day of the Christmas fast, so after the ceremony of the badnjak and the straw has been completed, families gather and share a Christmas Eve dinner. The head of household makes the sign of the cross, lights a candle, and incenses the whole house. In some regions it is a custom that he then goes out into the yard, and calls by name pest animals (e.g. wolves, foxes, and hawks) and his personal enemies, inviting them, “Come to dinner now and again in a year, God willing.” This is intended to protect the household from them for a year.

Before dinner is served the table is covered with a white cloth, and prior to starting the meal the family all rise and a man or boy among them says a prayer, or they may sing the Troparion (a short hymn). With Christmas Eve being a fast day, the dinner is prepared accordingly, but true to

Serbian tradition there is no shortage of food or diversity.

One very interesting tradition of this evening takes place once the household members have gone to bed - an elderly woman of the family sticks a knife into the house door from the inside, or alternatively, she might put a hawthorn stake by the door, hanging a wreath of garlic on it. This is done as a protection against curses, witches, and demons. In some families children are rubbed with garlic on the palms, armpits, and soles before going to bed for the same reason.

In some regions, men keep watch in shifts by the ognjište (the oak log) during the night, to keep the fire burning.

Christmas Day Christmas Day is called by Serbs the first day of Christmas.

On Christmas Day, the celebration is announced at dawn by church bells and in country areas, by shooting into the air. During the entire Christmas Day a custom is

The laying of a badnjak on the fire is considered the least a Serbian family can do to show their devotion to Serbian tradition to replace a classic: “Hello” or: “Good day” with: “Hristos se rodi” (Christ is born!) and as greeting in reply: “Vaistinu se rodi” (Really born!). Nowadays it’s a habit to call relatives or friends by phone and instead of saying “good morning”, one says: “Hristos se rodi!”

Breakfast and the cicvara A traditional Christmas Day breakfast always includes cicvara (a dish made of flour, eggs, butter and cheese). One will also find small dry cakes, dry figs and the well known Serbian plum brandy called sljivovica. Sljivovica is a common drink throughout the year however quite often the one served on Christmas Day will be home made and at least ten years old. Another custom is to prepare a bowl in which young wheat is planted to grow during the forth-

CorD 78 / January 2011 71

coming year. This conveys the meaning that the household should be fertile and that the family will have luck.

Položajnik A great deal of importance is given to the first visitor a family receives on Christmas Day this person is known as the polozajnik. People expect that this visit will summon prosperity and well-being for their household in the following year; and so this visit is often pre-arranged. Tradition requires that this person should stoke the fire in the fireplace and say “How many sparks, that many

Christmas Eve in Serbia is the last day of the Christmas fast, so after the ceremony of the Badnjak and the straw has been completed, families gather and share a Christmas Eve dinner sheep. How many sparks, that much money. How many sparks, that much health!” The polozajnik is then offered zito (a Christmas speciality made from boiled wheat) and red wine.

The Christmas meal The meal that is enjoyed on Christmas Day is the most celebratory meal a family has together during the year, and is therefore often a veritable feast. The tradition-

Christmas terminology • Badnjak: The oak log that burns on an ognjište during Christmas Eve and Day, or in church yard on Christmas Eve; leaved oak twigs burnt instead of the whole tree, or used as an ornament in the house during Christmas • Badnjačar: The man who takes the Badnjak into house on Christmas Eve • Badnjački kolač: A loaf for Christmas Eve dinner • Badnje veče: Christmas Eve after the sunset • B adnji dan: Christmas Eve before the sunset 72 CorD 78 / January 2011

al Christmas Day menu will include a piglet roasted over the fire of oak tree logs. As this is possible only in the countryside, families in cities will order their Christmas roast pork roast from special bakers who exclusively use oak for the fire. Symbolically the Christmas day meal marks the end of the period of abstinence as well as a ritual in which the food and the pork is considered a sacrifice made to god. Other traditional Christmas table foods include sarma made of stuffed sauerkraut leaves, soup and, in the area of Serbia once ruled by the AustroHungarian Empire, a dense soup dish called corba. Dessert usually includes three kinds of cakes and small cookies.

Česnica The most important part of the Christmas meal is česnica, a special festive loaf of bread baked especially for this occasion. The bread contains a coin, and during lunch the family breaks up the bread and the one who finds the coin is said to be assured of an especially happy year. Traditionally the česnica was prepared using the stalks of the last wheat harvest filling them with kernels of different grains. It is always decorated with braids, birds or roses made of dough.

In addition to a česnica, other kinds of Christmas loaves may be regionally baked, each with its specific name and purpose within the celebration. For each male member of the family a round loaf named ratarica is made – the biggest one for the head, and the smallest one for the youngest boy.

As for the female members, for each of them a pletenica is prepared, a loaf shaped like a three-strand braid – the biggest one for the woman of the house, and the smallest one for the youngest girl.

■

• Božić: Christmas • Božićni kolač: A kind of Christmas loaf • Česnica: A Christmas loaf, necessary for Christmas dinner • Detinjci, Djetinjci: The third Sunday before Christmas, when children give presents • Koleda / Korinđanje: A Christmas custom • Koledari/ Korinđaši: Participants in the koleda • Mali Božić: A folk name for New Year’s Day according to the Julian calendar, literally Little Christmas; coincides with the Feast of Saint Basil the Great • Materice: The second Sunday before Christmas, when married women give presents

• O ci: The Sunday immediately before Christmas, when married men give presents • Ognjište: An indoor fireplace without a vertical surround, so the fire burning on it is similar to a campfire.

• Pečenica: A whole pig roasted for Christmas dinner • Pletenica: A kind of Christmas loaf • Položajnik: The first person who visits a family during Christmas • Tucindan: The day before Christmas Eve, when the pig for a pečenica used to be slaughtered • Vasilica: A little round loaf made with cornmeal and cream, eaten for dinner on Mali Božić

CorD 78 / January 2011 73

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Rémy Martin Louis XIII Cognac in a Baccarat Crystal Decanter A legendary cognac from the prestigious house of Remy Martin, containing Grande Champagne eaux-de-vie aged between 40 and 100 years and packaged in a gorgeous Baccarat decanter. This same cognac was served English royalty in 1938 and again in 1957.

€1,600

Bugatti Diva Espresso Machine A statement espresso machine is a must-have in the contemporary kitchen and there are few finer than Bugatti’s Diva Espresso. This exceptional machine pulls two shots at a time, either through fresh packed grounds or pods, and has an attached steam wand for frothing milk. Heat cups on the warming plate and serve up a superb Italian espresso, every time. Features a heating top for coffee cups, a unique drop system for great tasting coffee and a two year warranty.

€715

Santiago Gonzalez Crocodile Wallet

The One Gentleman (EDT, 100ml) Dolce & Gabbana introduces The One Gentleman. Brimming with luxurious appeal, it is a scent for the man who is courteous, considered, with an instinctive feel for chivalry.

The One Gentleman is the ultimate connoisseur’s scent: an oriental fougere with understated allure. Includes notes of pepper, lavender, grapefruit, patchouli, fennel and cardamon.

This exquisitely finished, polished crocodile leather wallet from Santiago Gonzalez is the epitome of everyday luxury. An exceptional gift for the man who appreciates keepsake items with timeless hand-craftsmanship. The wallet is handmade and is made exclusively for Harrods.

It has eight card pouches, two openings to store notes in and is made from authentic Caiman crocodrilus fuscus skins.

€600

€59

Ralph lauren Yarmond Slipper A great gift for the man with cold feet, a shearling-lined slipper in All-American plaid.

Choose from black/red or dark brown/green/ blue flannel, with a contrast whipstitching outline square toe. The slippers are manufactured in Italy with a lining made of natural shearling from Australia.

€150

Guess Women’s Leopard Edged Pink Scarf Founded in 1981, Guess started as a jeans company and since then has grown continuously, becoming a brand representing a universal lifestyle. This fifty centimetre square-shaped stylish scarf is made of one hundred percent silk and features the distinct style that Guess is known for.

€39

Classic Corset Traditional lace up black heavy weight satin corset with front fastening for easy access. Steel spiral boning moulds to your body creating the ultimate hourglass shape. Comes with detachable suspenders.

€300

STEKLARNA ROGAŠKA d.d., Ulica talcev 1, 3250 Rogaška Slatina, Slovenia, EU

We Make Senses Last Forever.

Creating sublime ambience with functional and decorative crystal pieces. Europe’s foremost crystal creator is the clear choice. www.rogaska-crystal.com Rogaska Shop: Novi Sad, Jevrejska br. 25 tel. 021 523-449

Cordmagazine_dim_220x135+5mm.pdf 9.12.2010 10:46:37

Miss Dior ‘Chérie’ eau de Parfum (3.4 oz, 100ml)

Agent Provocateur ‘Kiki Kimono’

In 1947, the classic fragrance Miss Dior, launched with Dior’s ‘new look’.

Today, Dior designer John Galliano unveils his modern take on the classic fragrance with Miss Dior ‘Chérie’.

In the words of Galliano, “as fashion evolves, so must its scent, and the essence of the new fragrance must be as modern as the fashion”.

€72

estee lauder Sensuous hibiscus Compact A brilliant flower in full bloom, so exquisitely sculpted it looks freshly plucked. Each petal gleams with tones of red, pink, and purple, while the centre glitters with diamond-clear crystals. Inside find Sensuous in long-lasting solid perfume – warm, luminous and feminine. Elegantly boxed in a velvety pouch.

A smooth luxurious kimono made with sumptuous heavy weight crepe silk. This enticing gown has oversized sleeves, a satin tieup sash and charming pink lining.

€720

Agent Provocateur Large & Small Suitcase Stylish and luxurious, and perfect for business liaisons and romantic rendezvous. These ultra chic suitcases are available in matt black with black patent leather details and gold brass clasps. Open the case to reveal an exclusive illustrated Agent Provocateur travel print on a baby pink silk fabric. Large suitcase dimensions: 75 x 44 x 24 cm, 5.2kg. Small suitcase dimensions 54 x 38 x 18cm, 4.2kg.

Large €1595, small €1275

€135

Classic wooden Scrabble Set The Girl who Kicked the hornet’s Nest (hardcover) Stieg Larsson’s exhilarating conclusion to his bestselling ‘Millennium trilogy’. We find Lisbeth Salander, the brilliant computer hacker, still the prime suspect in three murders in Stockholm, and journalist Mikael Blomkvist working to unravel the decades-old cover-up. This novel is testament to the fact that Larsson (1954–2004) was an undeniably powerful voice in crime fiction that will be sorely missed.

€10

Chloé Paraty Leather Bag Crafted from sumptuous leather, this well known bag by Chloé is the ideal tote for daytime with a detachable long strap and a shorter arm strap so it can be worn across the body or over the shoulder. Also features gold hardwearing detailing.

€860

A favourite for young and old alike. Fans of the world-famous word game will love this Classic Wooden Scrabble game. The set includes wooden tiles, wooden racks and the classic linen-hinged playing board.

€30

Kusmi Tea Tasting Box Founded in 1867 in St Petersburg and then moving to Paris in 1917, Kusmi Tea creates delicious blends of green, black, or flavoured teas presented in beautifully decorated boxes. This gift set contains a Japanese cast iron teapot 0.6l and five 25g boxes of assorted Russian teas: Prince Vladimir, Anastasia, Saint Petersburg, Samovar and Troika.

€120

E

ight years ago, on May 25th 2002, the first store in Belgrade producing and selling hand-made chocolate pralines in Belgrade was opened. For the first time, the people of Belgrade had the chance to taste exclusive chocolates made just the day before. The basic philosophy of Adore Chocolat pralines is mirrored in the use of the finest Belgian chocolate made from a mixture of the highest quality cocoa grains and fillings made onsite, from fresh ingredients. Sour cherries, strawberries and raspberries are cooked, chili peppers are chopped, oranges are grated and almonds and hazelnuts are baked in the store. The pralines are crafted using original recipes unique to Adore. Each praline is made to evoke emotions: vanilla conjures the sweet smells of childhood; cinnamon evokes memories of winter nights in a warm room; chili stirs passions and the intoxicating smell of a wild rose stimulates the imagination. Just as the great masters have woven silk tapestries with subtle transitions between the shades, the chocolate is made by adding ingredients in shades, a piece too much, a drop too small and the desired emotion is lost.

There are a number of different specialty packages. For those who are madly in love, Adore chocolates create beautifully

ADORE CHOCOLAT D.O.O. Vojvode Dobrnjca 34 11000 Belgrade Tel. 011/220-3832 Fax 011/339-1254

nested chocolate packages, which leaves little room for misunderstanding. This is why ‘love in small bites’ is written on the box - to be carefully dosed and to last a long time.

For friends, cherished relatives and subtle courting, irresistible Adore pralines in refined black boxes are a beautiful gift.

For girls there are chocolate bars. The five types of bars are already a necessary accessory item for Belgrade’s young ladies.

Crunchy mint for chilling out and resetting your thoughts, Orangela for floating through a fantasy world, J’adore Mocha for the magic of exotic journeys, Canelle with cinnamon in milky chocolate and Sicily, a sunny mix of almonds, hazelnuts, nuts, candied orange and lemon peel.

A recent addition is the unique bar BG ČO KO, a New Year’s souvenir for friends who are not from Belgrade- dark chocolate with sour cherries, as a memory of a perfect Belgrade night out.

Have you considered what you will drink your New Year’s midnight champagne from? Forget a glass - that is passé.

Give your sweetheart a chocolate stiletto shoe wrapped in a chic purse, and then she could drink champagne from her chocolate shoe. We are certain she will let you to take a bite of her heel, maybe even more!

For those not in the know, in addition to the store in Delta City shopping mall, there is an Adore store on the ground floor of Beograd department store in Terazije, and you can also buy Adore products in The Taste of Passion store, 4 Knjeginja Ljubica Street, and in Univerexport Exclusive store, 25 Pašićeva Street, Novi Sad. If you get tired while doing your holiday shopping, you can enjoy a cup of white hot chocolate spiced to your liking, or pure chocolate, with no additives, in the Delta City store.

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life gives Directions When selecting staff, I take into consideration their professional competency, but also rely on my intuition which is nothing but unconsciously sublimated and compiled data, registered in our subconsciousness

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rđan Popović always tries to enjoy what he is doing. He feels that success is defined by strong will, establishing feasible goals, obstinacy, perseverance and above all team work. To him the process of selecting employees is not just a mere appraisal of their competencies.

- When selecting staff, I take into consideration their professional competency, but also rely on my intuition which is nothing but unconsciously sublimated and compiled data, registered in our subconsciousness - Popović says.

He believes that great work and effort, a certain dose of talent, as well as luck are needed for success. It poses no difficulties for him to perform his work with a great deal of enthusiasm, since his company is defined by a high level of business ethics.

- Imlek has proclaimed ‘quality’ as the highest value in its business and the company’s entire developmental activity is based on this. Providing quality and safety in the entire chain, from primary production to the final product, is facilitated by the controlled management of all processes which influence food safety.

That is followed by a permanent raising of the level of consciousness and the knowledge of employees – explains Popović.

He adds that Serbia is a country known for many things, before all, for its cheerful people and the great potentials of its agriculture and staff.

Training is a continuous process which in my opinion takes a lifetime. I improve my communication skills in different settings and situations - Dairies within the DFG system have modernised primary milk production and have raised the level of quality of fresh milk in Serbia through systematic investment primarily in farms Popović points out.

The matter of bonding with consumers is not difficult for him at all.

82 CorD 78 / January 2011

- There is not a lot of philosophy there, only the establishment of firm trust. That is primarily accomplished via continual quality of products, and extended through responses to the needs and desires of consumers in accordance with which, we are building a strategy of innovations, whether related to production or via package design – reveals Popović.

Educated in Paris, where he graduated from Institut Supérieur du Commerce (ISC) business school, his studies taught him discipline and thoroughness. He says that for his career and ability to work as part of a team, the education he acquired was crucial. After graduating, just like most people, he put together his CV and sent it off to various companies, and this is how he ended up in marketing Regional marketing director and gained his first work of IMleK Company experience at the agency ‘Grey’ in Paris.

- Training is a continuous process which in my opinion takes a lifetime. I improve my communication skills in different settings and situations, and also skills in order to be able to estimate the value of everyone, and to be able to deliver the best for the job - says Popovic.

He works on himself in order to let life show him the way forward, he does a lot of reading and analyzing of his own and others’ experiences. He also discusses his views with other people so they can learn something.

Srđan Popović recommends reading ‘Funky Business’ by Kjell Nordstrom and Jonas Ridderstrale and ‘The New Rules of Marketing and PR’ by David Meerman Scott.

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