CorD Magazine No.86

Proposing and Not Imposing

Quality Becomes Identity

Irony and Laughter

Carmen Caffarel,

Dušan Kovačević,

Director General of the Cervantes Institute

writer and academic

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OCT ‘11 / ISSUE NO. 86

Vincent Degert, Head of the Delegation of the European Commission to the Republic of Serbia

interviews opinions news comments events Price 250 rSD

EDWARD MCMILLAN-SCOtt, VICE-PRESIDENT OF THE EUROPEAN PARLIAMENT

Return on Assets is Fundamental

The importance ”of property restitution“ should be regarded as a fundamental condition for Serbia’s accession to EU membership H.E. KIM JONGHAE, AMBASSADOR OF THE REPUBLIC OF KOREA TO SERBIA

A Fond Farewell

His Excellency Kim Jonghae is leaving Serbia shortly and it will not be an easy goodbye Mrs. PRENEEt KAUR, MINISTER OF STATE FOR EXTERNAL AFFAIRS OF THE REPUBLIC OF INDIA

World’s Largest Peace Movement

The non-alignment symbolized keeping an independence of policy, not aligning with power blocs or making pre-commitments VIDA OGNJENOVIĆ, CHAIRWOMAN OF THE SERBIAN CHAPTER OF THE PEN CENTRE

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IVAN VEJVODA EXECUtIVE DIRECtOR OF tHE BALKAN tRUSt FOR DEMOCRACY

We Need Positive Signals

FRoM ThE EU

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economy

restitution

profile

October 2011

Proposing and Not Imposing

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incent Degert, V Head of the Delegation of the European Commission to the Republic of Serbia

We Need Positive Signals from the EU

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I van Vejvoda, Executive Director of the Balkan Trust for Democracy

The Real Elections Costs

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Dr. Vladimir Gligorov, Vienna Institute for International Economic Studies

H.E. Kim Jonghae, Ambassador of the Republic of Korea to Serbia

Irony and Laughter

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Regional Exchange Concept

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Žarko Galetin, Director General of the Novi Sad Commodity Exchange

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Business Dialogue

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Andrea Simoncelli, Chairman & CEO, Delta Generali osiguranje

Srđan Lazović, Head of Corporate and Regulatory Affairs, Serbia & Montenegro, British American Tobacco

Traditionally Reliable Partner

H.E. Mr. Aly Galal Bassiouny, Egyptian Ambassador to Serbia

EDITOR: Miloš Zlatić, m.zlatic@aim.rs ART DIRECTOR: Ilija Petrović, i.petrovic@aim.rs ASSISTANT EDITOR: Max Williams, m.williams@aim.rs CONTRIBUTORS: Sonja Ćirić, Jovan Gligorijević, Vesna Popović, Radmila Stanković,

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Neil Macdonald, Financial Times

Quality Becomes Identity

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Carmen Caffarel, Director General of the Cervantes institute

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Vida Ognjenović, Chairwoman of the Serbian chapter of the PEN Centre

The Country’s Brand

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Sport’s Superpower

Cool But Not Cold

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Six of the Best Autumn Beauty Breaks

Smooth Sailing Style

Focus

Strengthening Relations

It’s (trade) War

Books as Universal Communication

Excise

Dušan Kovačević, Writer and Academic

Restitution Challenges

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Mrs. Preneet Kaur, Minister of State for External Affairs of the Republic of India

Lack of Insurance Culture

A Fond Farewell

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World’s Largest Peace Movement

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Stojan Čolakov, Director of Energoprojekt niskogradnja a.d

Vladimir Gligorov, PHOTOS: Boško Karanović, Marijana Šaponjić TRANSLATION: Goga Purić, Snežana Bjelotomić PROJECT MANAGERS: Marija Savić, m.savic@aim.rs; Biljana Dević, b.devic@aim.rs Nataša Popović, n.popovic@aim.rs EXECUTIVE DIRECTOR: Ruža Ristanović, r.ristanovic@aim.rs

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Smooth Sailing Style

Thinking Forward

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GENERAL MANAGER: Ivan Novčić, i.novcic@cma.rs FINANCIAL DIRECTOR: Ana Besedić, a.besedic@cma.rs office MANAGER: Tanja Banković, t.bankovic@cma.rs PRINTING: Rotografika d.o.o., Segedinski put 72, Subotica CorD is published by: alliance international media Makenzijeva 67, 11000 Belgrade, Serbia

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comment Vincent Degert, Head of the Delegation of the European Commission to the Republic of Serbia

Proposing and Not Imposing Property restitution was put high on the agenda of the democratic forces that came to power in 2000 in Serbia

exclusive for CorD

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ore than 10 years later, the time has come to admeans that all claimants should be treated equally and what dress this issue adequately and to come to a comthey get – be it through natural restitution or financial comprehensive and fair solution, since the issue affects pensation – should fairly compensate the value of properties many people, their families and in the larger sense the whole that had been nationalized. From a financial point of view, society. Even though there is no EU legislation on this matthe restitution process should be kept sustainable for the ter in the strict term, property restitution needs to be seen in state budget and compatible with the macro-economic stabilthe wider context of property rights which touches upon both ity, thus avoiding undefined financial liability. Certainly, resthe political and the economic criteria which need to be adtitution should in no way lead to the financial collapse of the hered to by any country aspiring to become a member of the country or create an unbearable burden for the generations European Union. to come. The more restitution in kind or similar, the less burProperty restitution is important for the respect of the rule den for the budget. Finally, compatibility means that this law of law. The legal system of a country must create conditions should be fully compatible with other laws in order to ensure for settling conflicting claims over property rights; otherwise coherence in the overall legal environment. there is no legal certainty over property ownership. The latter But what also remains crucial is the implementation of the is crucial for the sustainable development of market economy. law. One thing is to set a legal framework and the other is to Only with a sound legislative framework will domestic and fordefine modalities that are simple, clear and non-controvereign economic operators want to have their businesses estabsial. In conclusion, the adoption of the whole package of proplished in Serbia! erty laws and their thorough implementation is about definThe work on the draft law on property Non-discrimination and fairness means that all claimants should restitution and the consultation procedure was completed during the summer and went be treated equally and what they get – be it through natural for approval to parliament in September. restitution or financial compensation – should fairly compensate the value of properties that had been nationalized Was there an EU model to follow? We can propose, but we do not impose. This is simply because there are different models followed in our Member ing the future of Serbia on its path to the EU. Only this can States, since there is a large diversity of situations and Serbia redress past injustice, only then can economic prospects imhas to define its own model. prove by stimulating entrepreneurship and investment… And However, for the EU it is very important to respect a only then will it contribute to the overall economic performnumber of basic principles: non-discrimination, fairness, susance of Serbia - for the benefit of its citizens. tainability and compatibility. Non-discrimination and fairness

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interview IVAN VEJVODA, EXECUTIVE DIRECTOR OF THE BALKAN TRUST FOR DEMOCRACY

We Need Positive Signals

FRoM ThE EU

The EU knows that if Croatia, as a locomotive of the Euro-integration process, joins the EU, the “coaches”, that are also in the “train composition”, will have to join the EU too.

Montenegro will probably get the date of the commencement of the preaccession negotiations, since it has met the required conditions by enacting the Election Law and because Montenegrin political parties have reached a compromise.

It is important for Serbia, as the biggest country in our micro-region, to make the next step too. It is the reputation of the European Union that is at stake here since we are talking about enlargement, i.e. the most important project since its foundation 8 |

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e conducted an interview with Ivan Vejvoda, Executive Director of the Balkan Trust for Democracy, Deputy Project Director of the German Marshall Fund and former advisor to the late Prime Minister Zoran Đinđić, he gives us a direct and open opinion about Serbia’s future in European, regional and Euro-Atlantic relations. He appears very optimistic when it comes to EuroAtlantic integrations; however he is also quite realistic, taking into account the aggravating circumstances that Serbia is facing on this path.

Reform

Kosovo

Germans Supportive

Serbia will get its candidacy since it did advance in the domain of the democratic legislative reforms, as it was required to do

It’s been only three years since Kosovo declared its independence, and the dialogue yielded its first results in June, followed by a slowdown in July

The official policy of the German Government and the strongest economy in Europe is that they favour enlargement and there is no doubt about that

■ The date when the European Commission is supposed if it can’t sort out issues under its own ‘roof’. Of course, we to give its opinion about the progress that Serbia has need to do most of the work and we need to be clear on made in Euro integrations is approaching. How much did that – we need to change ourselves. They will help us and we actually do in fulfilling one of the main prerequisites that is really important since, at the time of change, it is dialogue with Priština – as detailed in the message that much easier when somebody lends a helping hand. This is German Chancellor Angela Merkel brought to Serbia? where the EU helps us a great deal, primarily financially, - I don’t think that our candidacy bid is in jeopardy for as well as through dispensing expert advice. several reasons. Serbia will get its candidacy since it did adI also think that it is important to outline that being vance in the domain of the democratic legislative reforms, given the date for the beginning of talks doesn’t mean anyas it was required to do, and that is something that nobody thing in terms of the speed with which we will be moving is contesting. The only contentious issue here is the date forward. The European Union is the one that regulates that of commencement of the accession negotiations. This date speed, as is so evident in the case of Turkey; the negotiais as equally important since it is the last validation that tions are pending, and are very slow indeed. So, the Eurowe are entering the procedure, as was evident in Croatia’s pean Union will not lose anything if it gives us the date of example. It is important that Croatia has managed to get the commencement of negotiations. Lately, there has been where it is today, as it is an indication that other countries a lot of talk about the possibility of being given a proviin the region can do the same.. sional date. I think that whoever in the EU wishes good This is, actually, the upon themselves would Lately, there has been a lot of talk about other reason why I am like to see Serbia being so confident that Serbia the possibility of being given a provisional given this date. Also, I will be successful in its date. I think that whoever in the EU wishes think that it is imporcandidacy bid, i.e. primatant that we don’t reject good upon themselves would like to see rily because it has met the message from AngeSerbia being given this date the required conditions. la Merkel. She came to There is also one political condition too. The EU knows tell us that the EU wants Serbia, there is no enlargement that if Croatia, as a locomotive of the Euro-integration fatigue, and that Serbia should be in the EU. By doing so, process, joins the EU, the “coaches”, that are also in the she invalidated the statements made by German MPs and “train composition”, will have to join the EU too. Monthe statements of many other officials who claimed that tenegro will probably get the date of the commencement Serbia would never join the EU. of the pre-accession negotiations, since it has met the reSo, the official policy of the German Government and the quired conditions by enacting the Election Law, and bestrongest economy in Europe is that they favour enlargement cause Montenegrin political parties have reached a comand there is no doubt about that. I believe that any other Gerpromise. It is important for Serbia, as the biggest country man Government would think the same. We need to repeat in our micro-region, to make the next step too. It is the this over and over again. Angela Merkel came to give us sevreputation of the European Union that is at stake here eral messages, this one being one of the most important. since we are talking about enlargement, i.e. the most important project since its foundation. They (the EU) need to ■ Still, the mood of the top Serbian political circles was prove to themselves that the project is actually functioning pretty grim following her departure. properly. They need to demonstrate that to the world, for - Yes, it was, but that was because they did not expect to the sake of the European Union’s credibility, i.e. to show hear such a firm stance apropos our obligations for jointhat they are capable of resolving problems in their own ing the EU which pertain to regional cooperation. In re“yard”, so to speak. gard to customs seals Serbia failed to do several important How can the EU be expected to help in other regions things before her arrival. When speaking about removing

CoNDITIoNS Serbia will be successful in its candidacy bid, i.e. primarily because it has met the required conditions

gooD WIShES I think that whoever in the EU wishes good upon themselves would like to see Serbia being given this date

gEogRAPhy When you talk to Russian experts, they clearly confirm what is already given – when you look at a geographical map cordeditorial@cma.rs

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the parallel institutions in Kosovo, she did not mean Serbian schooling and health systems. It seems that some of her statements were a bit hasty and that what she really meant was to regulate northern Kosovo in a legal sense and that we needed the area to become decriminalized. And we do know that the collaboration between Serbs and Albanians, when it comes to criminal association, is at a very high level. I think that her point was that they needed to see Serbia’s efforts in solving these issues.

■ How important is getting the date of the negotiations to the governing structures in Serbia, bearing in mind that the elections are around the corner?

- Personally, I think that being given the date of negotiations is very important, regardless of what the authorities think and the upcoming elections. This is my stance when I talk to the European and American officials. Additionally, it is also very important for Europe to send positive signals to Serbia. Being given the date would send a very strong signal to everybody who thinks that it is important to continue with reforms for our own sake.

It is quite understandable that the European Union was not a perfect creation. What we have is a very realistic crea-

I think that it is important that we don’t reject the message from Angela Merkel. She came to tell us that the EU wants Serbia, there is no enlargement fatigue, and that Serbia should be in the EU tion, which, as we have been reading every day, has its own problems, primarily of an economic nature. Youth unemployment is a huge problem everywhere. With that in mind, the EU wants to send out a signal that is strong and motivating enough for everybody here who is trying to do something positive. It is important to note that we have made a huge leap forward in regional cooperation in this part of the world, which was engulfed by war in the 1990s.

■ Still, only a month ago, the diplomatic relations between Serbia and Croatia were quite strained, with rath-

The incident

er frivolous vocabulary used by both sides. How serious was this problem?

- I don’t think that that issue is deep enough to jeopardize Euro-integrations. Yes, there was some friction and strife with Montenegro, as well as with Macedonia apropos the church issues and Bosnia about arresting the persons accused of war crimes. I believe that there will be more friction with Croatia in the future. Still, if you look at the timeline 2000-2011, you can see that the relations have become significantly better and progressive. We need to be aware that this progress is not going to be linear, especially now, prior to the elections. Elections are around the corner in Serbia and Croatia, and politicians usually raise their voices by a whole octave as the election campaign unfolds despite the fact that we frown upon such behaviour in diplomatic dialogue. Strong words are not welcome in a post-conflict society as ours is. However, the politicians are fighting for votes and we should understand that, but not necessarily justify it.

■ Bearing in mind that the panel discussion was dedicated to the global security challenges, with the first association being NATO, this is not the first time that Konuzin reacted strongly when a topic of NATO was mentioned in Serbia.

Maybe that is what provoked him.... Does this mean that Serbia is somewhat torn between Russia and NATO? - I would like to look at that issue from another angle. When you talk to Russian experts, i.e. experts from various institutes, academic surroundings and independent bodies, they clearly confirm what is already given – when you look at a geographical map, Serbia belongs to the European continent, physically, geographically and politically, and they know all too well that we are surrounded by NATO members and that nothing will change in regard to that. We are walking towards Europe and, I would say, Euro-Atlantic integrations. Let’s not forget that, from 2000 to the year when our parliament adopted the neutrality clause, Serbia has been moving in the direction of NATO. ■ But even this neutral status is quite interesting since it hasn’t been internationally verified at all.

- Truth be told, I don’t understand it either, since it doesn’t

■ At the Security Forum, the Russian Ambassador, Alexander Konuzin, had an angry outburst, with you being one of the targets of his anger. In a video clip, we can hear loud and clear what he is saying, but we cannot discern what you were saying, apart from noticing that you kept your cool. What did you tell him?

- I thought he was finished and told him: “Thank you, ambassador.” He then turned around and said that he was not finished. I replied that he talked more than other panellists which had 10 |

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H.E. Alexander Konuzin

much more time allocated to them. He asked me if that meant that I was forbidding him to talk, to which I said that everybody was allowed

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to comment, adding that I thought that he explained everything he had been meaning to.

Then he addressed the panellists and asked them whether they wanted him to continue and we could hear a distinct “No” from them. Out of common courtesy, and despite thinking that he overstepped the boundaries of good practices, I still let him finish, in the spirit of democracy and openness. However, he then decided to address everybody present and asked whether they wanted him to continue, and they declined the offer, more or less unanimously.

have the power of law despite the majority of Serbian MPs voting in favour of it. Historically speaking, I would say that the status is not correct – Serbia has never been neutral and has always taken the right side in global conflicts. In World War I, we were a country that was attacked and sided with the allies.

The same thing happened in World War II when we sided with anti-fascists. It is a well-known fact just how brave our soldiers were in World War I and the price we paid for siding with the right people. The same can be said for World War II, and, let’s not forget, the country’s departure from Stalin’s politics in 1948 when we succeeded in defending our independence. Accordingly, this country, whether it is called Yugoslavia or Serbia, has a strong notion of dignity and independence. In 2000, when political changes took place, all of that was verified once again. Regardless of all of us who survived the bombings being strongly against the air raids, which we cannot forgive or forget, that is not the reason for us, as a country that has survived a tragedy, to stop looking after our own interests and search for allies who are going to treat us with dignity. When you lead a certain state policy, you need to know what your powers and weaknesses are, and where you can get help. Our partners, I mainly mean trade partners, are the countries that have recognized Kosovo’s independence. This is a complicated situation, albeit a realistic one. If we maintain our common sense and a clear point of view, we can create a link between these two issues and find a solution for them.

■ Speaking about Kosovo, how realistic is to presume that the conflict will escalate?

- Bearing in mind what happened in the 1990s, everything that has been done since 2000 was done in an effort to counteract the politics of the 1990s. That entailed having all the relevant factors engaged, including the United Nations, NATO etc. The 2001 events in south Serbia are the perfect example of such policy. A new and democratic Serbia has resolved that issue through peaceful means, in collaboration with international factors. The policy, exercised by President Tadić, is a natural progression of that. He has said on several occasions that violent methods had to be avoided at all cost and wanted everybody to refrain from using

The implications

words that could spark conflicts. He is acting in the spirit of European history, especially post-WWII history. This also marked the beginning of a huge project, i.e. the most successful project in human history... The time has come for Serbia and the region to join that project. That’s why the dialogue between Belgrade and Priština is a personification of such policy and, in European terms, has been instigated quite quickly. It’s been only three years since Kosovo declared its independence, and the dialogue yielded its first results in June, followed by a slowdown in July and a com-

Strong words are not welcome in a postconflict society as ours is. However, the politicians are fighting for votes and we should understand that, but not necessarily justify it promise reached in September. So, the trajectory is correct, and the results are evident.

If there is anything good about the bad events from July it is that everybody is now aware that there is danger present, so both international and domestic players engaged themselves in finding a solution because nobody wants to go back to the situation of the 1990s. As painful as some things might be, we need to take a deep breath, count to ten and find a compromise, which means that both sides need to give up something in order to reach a higher purpose and to maintain stability and peace.

■

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oscow-based daily Izvestia says an incident involving Russian Ambassador Alexandr Konuzin could have “serious implications” on Russian-Serbian relations. The daily said Konuzin had taken offence after he had been interrupted in the middle of his speech at the First Belgrade Security Forum the week before. Izvestia added the incident had made the Russian ambassador leave the meeting.

The daily said that it had been “a major diplomatic incident with serious implications on Russian-Serbian relations.”

Svetlana Shevchenko, Russian Embassy in Belgrade Press Secretary said that the” rebuttals by the meeting's chair had been aggressive and unacceptable for an address to an ambassador of a sovereign country.”

The forum’s Spokeswoman Ivana Ponjavić told Izvestia that the organizers had no intention of provoking or giving offence to the Russian ambassador.

“Mr. Konuzin deviated from the (meeting's) topic in his speech. Instead of speaking on the topic 'Global Security Challenges' he spoke about the situation in Kosovo,” said Ponjavić.

The article further said that the chairman, Ivan Vejvoda, who served as the foreign affairs advisor to assassinated Serbian Prime Minister Zoran Đinđić, was known for his radical pro-Western viewpoint and was committed to bringing Serbia closer to the U.S. and NATO. cordeditorial@cma.rs

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comment DR. VlADIMIR GlIGOROV, VIENNA INSTITUTE FOR INTERNATIONAL ECONOMIC STUDIES

the Real ELECtIONS COStS Growing employment is the key to social and political stability and to economic growth. It needs to take place in the private, and not in the public sector. And needs to be ďŹ nanced by growing domestic savings and driven by exports. That is the reform agenda for the next government

T

ther increases were promised or expectations spurred. The he problem is not so much that this government overall mood was that the transition was all but finished will not be able to introduce any significant reforms and further significant reforms were not believed to be necahead of the upcoming general elections, but that it essary. It was time to cash in as it were. did very little in the past three years and is thereThis quite inappropriate political program was followed fore going to pass to the new government a very long reform with a slow and defensive response to the crisis which agenda and a significantly worse economy. Political and soerupted almost immediately after the government was cial stability have also not improved during the mandate of formed and the decisions on the increases of fiscal obligathis government. Finally, the overall circumstances, at home tions were taken in the autumn of 2008. Though a standand even abroad, are less than helpful for an ambitious reby agreement was negotiform program.

The governing parties basically have no ated with the IMF, its aims How did this current imclear idea about the reforms that are were to stop the run on the passe develop? The initial problem was a strategic er- needed and about the ways in which they banks and to enable the servicing of external obligaror of judgment. After the would be introduced and implemented tions. As for the policy and last general elections, in reform agenda, it was almost entirely concentrated on re2008, the government was formed around a policy agenducing the effects of the increase fiscal obligations. Indeed, da that was premised on the continuation of high growth, during the next three years, the government was mostly which would support a significant increase in social transconcerned with the containment of the fiscal obligations. fers, centred primarily on significantly higher pensions.

These efforts culminated with the adoption of the fiscal Indeed, rather than aiming at the reform of the public and rules, which were supposed to stop the increase of public social obligations, they were significantly increased and fur12 |

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Reforms

Program

Re-election

Throughout the crisis, the government declined to contemplate any serious structural reforms.

The governments long term program, Serbia 2020, which anticipated strong growth, proved to be short lived.

The usual pre-election program of the government is to increase public spending in order to improve its chances to be re-elected.

But even beyond that, the initial program of the government debt to GDP ratio and to reduce the fiscal deficit to 1 perand its handling of the crisis does not give it a mandate to cent of GDP in the medium term. propose and attempt to carry out really significant and far Throughout the crisis, the government declined to conreaching reforms. It is hard to envisage that they would get template any serious structural reforms. As a consequence support, not just in the public but amongst the governing coof the crisis, the fiscal problems, and of the passive attitude alition of parties. Besides everything else, the governing partowards structural reforms, the development in the labour ties basically have no clear idea about the reforms that are market proved to be catastrophic. For the past three years, needed and about the ways in which they would be introemployment dropped by about half a million people. The duced and implemented. unemployment rate jumped On top of that, the politito over 22 percent and there cal debate has so far avoided was a sizable increase in inthe crucial reform issues. The activity. Still, the fiscal situaopposition parties are not oftion did not improve signififering alternative programs cantly and the newly adoptas they judge that they can ed fiscal rules were flouted win on the lousy record of the almost at the moment when sitting government and are they were introduced into not seeking a mandate for the law. The overall social reforms from the electorate. situation deteriorated markThe programs that have been edly and that made reforms offered so far are either frageven less attractive to the mentary or populist. There government. are no comprehensive policy Again, an error in judgreforms on offer, so there is ment followed. It looked as if the economy would start to improve in 2011 and then grow rather The reforms that aim at improved business strongly ahead of the 2012 general elec- environment cannot be expected, which is probably tions. The government adopted a long term the main problem currently and in the medium term program, Serbia 2020, which anticipated hardly anything that the electorate has to choose from. strong growth and a sizable improvement in employment.

The additional problem is that the reform pressure that That optimism proved to be short lived. The first setback is coming from the outside, from the EU and the IMF, does was the failed tender to sell Serbian Telecom. The interest not really go to the root of the problems. The IMF is mostwas not there and the offered price was far below the one ly concerned with fiscal reform, which basically centres on that the government was hoping for (800 million euro rather the reduction of spending. Without a change in the structure than 1.4 billion). Then growth prospects dimmed as the exof spending, however, reduced public expenditures will only ternal conditions deteriorated. Thus rather than a significant lead to a decline in employment and income. Together with speed up of growth, stagnation is more of a realistic pre-electhat, possible tax reforms would lead to higher burden on lation prospect. If these developments indeed unfold, the labour income, which again may produce more social problems bour market picture will continue to deteriorate up until electhan incentives for investments and employment. The EU, on tion time, which is expected to take place sometime in late the other hand, requires reforms that may have long term efApril or early May 2012. fects, but will not address the short and medium term probIn the remaining half a year or more, reforms cannot be lems. In the past, the process of accession to the EU was acexpected. The usual pre-election program of the government companied with significant increases in foreign investments. is to increase public spending in order to improve its chancThis is now unlikely given the developments in the EU econes to be re-elected. Most of the reforms that are needed are omy. Therefore, the reforms need to be targeting economic not popular so they come with a large potential loss of votes. cordeditorial@cma.rs

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adopt a program of rather radical reforms or to continue to muddle through because of the problems that it will inherit from the current government. If economic growth continues to disappoint, employment will continue to decline and social problems will continue to pile up. This is not an environment in which business can thrive, and indeed the problems of liquidity in the public and the corporate sectors can improve.

Thus, the costs of reform may prove to be high for the next government to address quickly and decisively.

In essence, the basic incentive structure of the economy needs to be changed. That means that a far reaching reform of the public sector is needed. The government needs to reform the pension and social security systems and to increase incentives for work and investments. This is not a question of a reduction of budget deficits, which can hardly be achieved anyway with economic stagnation. It is also not something that can be achieved just with a tax reform as long as the level and structure of public expenditures is not changed.

The overall level of tax burden can only be reduced if public spending is reduced.

It is not clear whether the next government will have And that means that much of what is the courage to decisively reform the economic system currently done by the state needs to be and introduce the pro-growth measures left to households and corporations to do. This should increase the level of savings and thus support investments. year. Also, the reforms that aim at improving the business Overall, employment levels need to be increased draenvironment cannot be expected, which is probably the main matically. In the eight or so years prior to the crisis, problem currently and in the medium term. The corporate growth was predominantly driven by improved producsector is facing liquidity problems and needs a rather aggrestivity, which meant that growth of GDP was accompasive and sustained restructure, which is unlikely to happen in nied with falling employment. The crisis shaved off anthe remaining pre-election time. other large number of people from the employment list.

The fiscal and reform of public expenditure is long overThis needs to change. Growing employment is the key to due, but is being pushed down the policy agenda simply social and political stability and to economic growth. It because it is becoming more and more demanding as time needs to take place in the private, and not in the pubgoes by. Nothing is done. This will be the main legacy of lic sector. And needs to be financed by growing domestic this government. Tax and expenditure reforms could have savings and driven by exports. been easier to do at the beginning of this government’s This is the reform agenda for the next government. In the mandate and reforms in the labour and product markets time that is left, the outgoing government will unfortunately could have been done speedily under the pressure of the go in the opposite direction in the hope that it will be re-electcrisis. As those opportunities have been missed, the costs ed. As a consequence, it is not clear whether the next governof reforms increased and will be even higher once the new ment will have the courage to decisively reform the economic government is in power. system and introduce the pro-growth measures. ■The incoming government will have the choice to either growth based on different drivers than was the case before.

All that leads to a rather unhelpful state of affairs where the government will not do very much if it does anything at all for the remaining time before the elections. Recent decisions connected with the IMF negotiations, and with the budget revision, indicate that the government will adopt the usual pre-election strategy. It aims to increase current spending and reduce capital expenditures in order to achieve some short term improvement in other segments of the electorate. More of that can be expected in the budget for the next year. Some reforms that redistribute benefits from central to local governments, e.g. the increase of local budgets and an increase in the responsibilities for Vojvodina have either been adopted or will be introduced soon. The implementation of these types of changes usually takes a lot of time and it will really depend on the next parliament and government whether those will be kept, or rather reversed.

Other reforms cannot be expected. Privatization is not going anywhere since the ill-fated attempt of the sale of the Serbian Telecom earlier this

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Passport

quotes

As recently as 1890, almost no country required its nationals to have appropriate documents to travel abroad, and only a few countries (such as Romania, Russia, and Serbia) required foreigners to have passports to cross their borders.

Anti-coruption Harmony Svetlana Vukajlović, former director of Republic Institute for Health Insurance, together with Jugohemija Director Vladimir Gravar and Detap company owner Ljubomir Pavlićević were arrested on the 19th of September under suspicion of being involved in frauds in vaccine procurement in 2010.

The former director of the Republic Institute for Health Insurance is suspected that during

“Which law forbids going on vacation in the first half of September?” – Dragoljub Zarković, Editor-in-Chief of Vreme weekly.

the acquisition of vaccines against influenza AH1N1 in November 2009 he used his official position and his associates to damage Serbia’s budget by about 1.27 million Euros.

According to the indictment, “Jugohemija pharmacy” and “Detap” as intermediaries in the procurement of vaccines, obtained a gain of 855,600 euro’s and 420,000 euro’s and 15 million dinars, and lowered the Serbian state

01. Corruption

“The arrest of Vukajlovic has nothing to do with the fight against corruption but has something to do with the pre-election time and the possible settlement of accounts amongst individuals in healthcare involved in corruption.” - Verica Barać, President of the Anti-Corruption Council

02. Protection

“The Serbian Government and I, as a health minister, did everything in our power to protect the citizens of Serbia following the recommendations of the World Health Organization and an expert working group during pandemics that claimed the lives of 140 people, including ten pregnant women, while thousands of people were in intensive care units and on respirators.” - Tomica Milosavljević, former Health Minister.

03. Information

‘From the very beginning the government was informed in detail about the purchase of the vaccines.” - Svetlana Vukajlović Poprzen, former director of the Republican Institute for Health Insurance.

04. Probe

“The investigation will check whether the former health minister (Tomica Milosavljević) had the correct information given to him by Svetlana Vukajlović Poprzen,” - Snežana Malović, Serbian Minister of Justice

05. Unlawful

September

"It is unacceptable and illegal to publicly disclose information from the investigation of abuse in the procurement of vaccines. I think that the given statements are outside the framework of the law.

Procedures must be respected, which means that the data, while the investigation is ongoing, cannot be disclosed in public."

- Dr. Zoran Stanković, Minister of Health of Serbia.

budget by around 1,270,000 euro’s.

Svetlana Vukajlovic was arrested immediately after her return from a trip in late August and returned to her vacation on the 19th of September.

06. Recognition

"The proposal to the government for the purchase of vaccines was given by the then Minister of Health Tomica Milosavljević, following recommendations from the World Health Organization. If someone falsely reports to me, it's my problem, because I should be able to recognize people who lie to me. In my ministry and elsewhere I also have people that lie to me. If I am aware of that, that person is simply removed." - Dr. Zoran Stanković, Minister of Health of Serbia

07. Interference

"I appeal to all ministers, including Minister Stankovic, to stop making official statements in public.

The Minister of Justice is not interfering in his department, and he should not interfere in the work of the government’s coordinator for the fight against corruption. The statement by Minister Malović is no pressure on the court. She did not say that as Minister of Justice, but as the state coordinator of anticorruption." - Slobodan Homen, State Secretary, Ministry of Justice.

08. Cancellation

“I have initiated the termination of the contract with Jugohemijom. At the beginning of 2010 the interest in the vaccine was less than expected and I suggested to Minister Milosavljević that we should consider cancellation of the contract with the supplier. His response was that it was too early to cancel orders.” – Svetlana Vukajlović Poprzen.

09. Delivery

“Many in this country would like to be the police, prosecutors and judges, including the Minister of Health... The initiative to stop the delivery of vaccines was mine, given to the government on January 12th, 2010.” - Tomica Milosavljević, former Health Minister

10. Unvoiced

“I have no comment.” - Zoran Stanković, Health Minister cordeditorial@cma.rs

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epicentre “The eurozone is the epicentre of a much broader sovereign debt crisis… Signs of stress are evident in many EU government bond markets, while the high volatility in equity market indicates that tensions have spread across Capital markets around the world,” - European Central Bank President Jean-Claude Trichet (www.telegraph.co.uk)

global diary

Reached Agreement to Divide Assets Ex-Yu Affair

Division of 44 diplomatic properties in OECD countries of the former socialist Yugoslavia is due to be completed in August 2012

Two decades after the violent collapse, the former republics are finally accelerating the process of dividing diplomatic property. Representatives of the five successor countries - Serbia, Croatia, Bosnia and Herzegovina, Macedonia and Slovenia - have agreed in principle on the dynamics of the transfer of properties located in 44 OECD countries, worth a total of €47.9 million.

This deal should see Serbia gain 20 buildings or funds from Park Avenue apartment, once the Big Apple foothold of the former Yugoslavia the sold buildings worth from $26 million and up (€19 million). By year’s end Serbia should also become the official owner of embassies in Rome and Berlin, the embassy and residence in Athens, as well as ambassadorial residences in London and Lisbon.

“According to an announcement of the authorized American agency, the Fifth Avenue apartment is worth between between €7.3 and €8.8 million, while the Embassy in Bonn has yet to be valued,“ said Vladimir Curguz, Secretary General of the Serbian Foreign Ministry and the country’s representative in the succession process. “Serbia should receive 40 per cent, or around €3.5 million, from the sale of the New York apartment, after having spent more than €1.5 million to maintain this residence.”

Preliminary talks were also held on the continued division of former Yugoslav assets in the regions of Africa, Latin America, the Caribbean, Asia and the rest of Europe, while it was agreed that the next meeting – likely to be held in Zagreb in November – would see each of the successor states present the confirmed views of their respective governments.

Bouquet of tulips Romanian authorities blocked six trucks filled with flowers from the Netherlands, citing health concerns linked to unspecified “dangerous bacteria” The blockade came just one day after the Dutch government said it would veto the enlargement of the passport-free Schengen zone to Romania and Bulgaria.

The Dutch are not the only sceptics when it comes to expanding Europe’s borders to include the eastern duo, a decision that requires unanimity among current Schengen members. At least a dozen other countries, including France and

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Germany, lined up against Schengen enlargement last year, worried that though Bulgaria and Romania had met the technical requirements laid out in the accession programme, the corruption in both countries had to be addressed first.

But the Romanian sanitary authorities flatly deny the floral hostage-taking and Schengen are related. The flowers will be on their way “in a few days”, one official said.

Source:AFP.

www.cordmagazine.com

UBS Chief Resigns

Don't Worry, Croatia

The chief executive of the embattled Swiss bank UBS, Oswald Grübel, has quit after the bank lost an estimated £1.5bn

The opposition Democrats (SDS) rejected concerns, that they would adopt an aggressive approach towards Croatia

Oswald Grübel

Sergio Ermotti, the bank’s head of Europe, Middle East and Africa, will take over as CEO for now.

The 67-year-old German Oswald Grübel, brought out of retirement to try to salvage UBS in 2009, refused to comment to reporters as he left the lengthy meeting.He came under heavy fire over alleged unauthorised trading by Kweku Adoboli, the 31-year-old charged with fraud and false accounting at UBS. Adoboli has been remanded in custody and has not entered a plea to the four charges.

The bank said it had accepted Grübel’s resignation and paid “testimony to his uncompromising principles and integrity.”

“The SDS is a responsible party that respects international treaties even if they are not to its liking,” the party responded to concerns that it could undermine the implementation of the border arbitration deal with Croatia or block the ratification of Croatia’s EU accession treaty until a favourable arbitration outcome.

On the other hand, the SDS remains critical of “politics lacking credibility”, pointing to the 2001 Drnovsek-Racan border agreement, which the Croatian parliament failed to ratify.

Yet it highlighted that it has always supported a European future for Croatia and other former Yugoslav republics.

“Despite of everything stated, the SDS is of course concerned about that current state of Croatian politics that wants to exclude Slovenia from Adriatic politics and economy - it is this current that we are resisting.”

Women given right to vote Saudi Arabia

Saudi King Abdullah has given the kingdom’s women the right to vote for first time in nationwide local elections, due in 2015

The king said in an annual speech before his advisory assembly, or Shura Council, that Saudi women will be able to run and cast ballots in the 2015 municipal elections. Abdullah says women will also be appointed to “join the all-male” Shura Council.

Women rights activists have long fought to gain the right to vote in the kingdom that applies a strict version of Sunni Islam and bans women from driving or travelling without the consent of a male guardian.

The first elections were held in 2005, but the government extended the existing councils’ term for two more years.

zero hour “So even if Europe’s leaders were to come together tomorrow and agree on all the necessary steps to end the crisis, they would not have solved it until they could demonstrate that they enjoyed full political support…I have never seen Europe’s policymakers as scared as I saw them in Washington last week.” - By Wolfgang Münchau, Fnancial Times (www.ft.com)

Gas Dispute

Turkey / Cyprus

Turkey and the breakaway Turkish part of Cyprus signed a deal to prepare legal grounds for gas exploration around the disputed island in an immediate response to drilling by Greek Cypriots

“Since the Greek Cypriot Administration has

started the drilling activity on Sept. 19, as already announced, a continental shelf delimitation agreement has been signed today (September 22),” a statement from the Turkish Foreign Ministry said. The deal signed by Turkey’s Prime Minister, Tayyip Erdoðan, and Dervis Eroglu, the leader of the Turkish Cypriots, while attending the United Nations General Assembly in New York, “takes into account the legitimate, equal and inherent rights of the Turkish Cypriots like those of the Greek Cypriots over the whole continental shelf of the Island,” it said. Turkey has called the search for gas reserves in the Eastern Mediterranean by the internationally recognized Greek Cypriot state a provocation, when Ankara supports sharing the region’s natural resources equally between the Turkish and Greek communities. The energy reserves in the area have also been explored recently by Israel, which is likely to increase diplomatic and military tensions in the region.

The Answer

Following arrival to the UN HQ on September 22nd, president of Cyprus Demetris Christofias stated:

“My administration remains committed to a mutually-agreed reunification of the Mediterranean island and ending occupation and illegal colonization of settlers by Turkey We seek a solution that reunifies the country and its people and creates conditions of lasting peace and security on the island. Direct negotiations with Turkish Cypriots over the past three years had achieved convergences on various aspects of the dispute, but the Turkish Cypriot side is retracting on the negotiating table, including from previously found convergences.”

Who Owns Most of the World's Gold?

4% of the world controls 12.6% of the gold. It’s no surprise that governments, central banks, and investment funds are world’s largest holders of gold reserves To find out who owns the most gold in the world, we referred to data from the International Monetary Fund’s International Financial Statistics Report. The top ten largest owners of gold in the world are reported to control a total of 24,258.3 tonnes, or over 855 million ounces. At current spot prices, this gold would be worth approximately $804.35 billion The 10 biggest gold owners in the world: 1. United States, 8,133.5 tonnes: The US gold holdings are worth approximately $269.67 billion. This massive gold reserve represents about .9436 an ounce for ever person living in the country. The majority of the American gold is held in the world famous US Bullion Depository in Fort Knox, Kentucky.

2. Germany, 3,412.6 tonnes: Germany’s central bank, is the most influential member of the European System of Central Banks. With a hefty 3,412.6 tonnes of gold reserves, which are valued at about $113.2 billion at current prices, Germany’s gold accounts for almost 70% of the country’s total foreign reserves.

3. IMF, 3,217.3 tonnes: The IMF’s gold policies have changed in the last quarter century, but the reserves remain in place for use in stabilizing international markets and aiding national economies.

4. Italy, 2,451.8 tonnes: The Italian National Bank manages the country’s large gold holdings, which account for 66.5% of its foreign reserves. With approximately 2,451.8 tonnes of gold in reserve, worth approximately $81.3 billion at current prices.

5. France, 2,450.7 tonnes: The Banque De France holds about 2,450.7 (source:MMF).

With the 5th largest gold reserve in the world, France’s gold amounts to about $81.3 billion, accounting for 72.6% percent of the country’s foreign reserves.

6. SPDR Gold Shares ETF, 1,120.6 tonnes: SPDR Gold Shares has been one of the fastest growing ETFs in the world. They are now

trading both on the Singapore and Tokyo Stock Exchange. All of the Trust’s gold is held by the Custodian, HSBC Bank, in their London vault except when the gold has been allocated in the vault of a sub-custodian.

7. China, 1054.0 tonnes: The world’s most populous country also has the world’s seventh largest gold reserve. With a population of 1.33 billion, the country holds about $26 worth of gold per person, worth a total of almost $35 billion. The Chinese gold accounts for only 1.8% of the nation’s total foreign reserves.

8. Switzerland, 1040.1: The Swiss National Bank oversees the country’s 1,040.1 tonnes of gold. The gold is believed to be stored in huge underground vaults near the federal parliament building in Berne. Switzerland’s stockpile would fetch approximately $34.5 billion in today’s gold market, accounting for 37.1% of the country’s foreign reserves.

9. Japan, 765.2 tonnes: Although Japan is the ninth largest gold owner in the world, its 765.2 tonnes of gold accounts for just 2.1% of the nation’s total foreign reserves. On the open market, Japan’s gold reserves would fetch approximately $25.4 billion and are managed by the Bank of Japan.

10. Netherlands, 612.5 tonnes: The Netherland central bank, De Nederlandsche Bank, oversees the Dutch national finances, including the country’s 612.5 tonnes of gold reserves. The Dutch gold is currently worth over $20 billion and accounts for 61.4% of the country’s foreign reserves.

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interview H.E. KIM JONGHAE, AMBASSADOR OF THE REPUBLIC OF KOREA TO SERBIA

A Fond FAREWELL

I

n the region as a whole I would highlight Serbia as a good example of what can be achieved when locals and foreign investors work well together. Serbia is really at the forefront in the region in this context. In other countries of the region, and further afield, there are sometimes problems with the willingness of the local community to adapt themselves to new ways of thinking and vice-versa. Not so in Serbia.

■ Your stay and mandate in Serbia will be remembered as a time in which investors from South Korea entered the Serbian market. Which investments have been realized and which are in progress?

- The biggest investor from Korea to Serbia thus far is the Yura company, which manufactures automotive components, as I am sure you know. They have already employed over one thousand locals and are very happy with the way the investment is working out. Considering that Yura only established its presence here in Serbia a year and a half ago, things have gone extremely well. There will be the fourth factory in Leskovac, which is expected to be completed by the end of February 2012. Yura is expected to employ a further five thousand locals in the very near future. The future for both Yura and Serbia is bright indeed.

Regarding potential investments the situation is similarly bright. There are talks taking place between a number of Korean companies and municipalities in Serbia.

His Excellency Kim Jonghae is leaving Serbia shortly and it will not be an easy goodbye. During his time as the Korean Ambassador, the Yura company has gone from strength to strength and over 1000 Serbians are employed by the company.

This is in no small part due the man himself.

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■ Late last year a large business delegation from your country visited Serbia, including high-level representatives of the automotive, electrical, and steel industry.

What was the outcome of that particular visit?

- The delegation was pleased with what they saw, have started negotiations for the possibility of establishing joint ventures, and looking at potential investment locations. The outcome was therefore very good for all parties involved, and I am personally happy that the businesspeople from Korea got to see, with their own eyes, that Serbia has a lot of potential.

There is a problem though in that Serbia suffers from a somewhat negative image; however the government is on the right path to correct this misconception. Serbia faces a problem with the likes of Korean companies, in that their company headquarters are based very far away and people there have heard negative stories from the past regarding Serbia’s political problems. They are not aware that the sit-

Investment

Ethic

People

Serbian officials are very helpful throughout the various processes that are needed when a company is making a substantial investment.

For a very long time Korean people have understood that a good work ethic is essential to the betterment of society.

Serbian people are some of most welcoming, friendly and warm-hearted people I have ever had the pleasure of living amongst.

uation is in the process of being resolved in a responsible and largely peaceful manner. The conclusion therefore is that the trip was a success and there are definite investment opportunities for Korean companies. The government is positioning Serbia well to attract more foreign direct investment.

Government, i.e. the most needed actions to help attract investors from your country?

- The Serbian Government‘s strengthened and continued efforts to attract foreign investment, including public relations activities could be of great assistance on its path to improving efficiency. EU accession is a very good thing for the people of Serbia and I genuinely believe that, in the not too distant future, Serbia will overcome its present political and financial issues.

■ When someone in Serbia says “the Korean investment” they are usually referring to Yura. What are the experiences of existing Korean companies in Serbia regarding cooperation with local municipalities, and the government, in the preparation and implementation of their investments?

- Korean companies are generally very pleased with their communication with the municipality officials and the Serbian Government. Of course there are minor difficulties that occasionally arise but the Korean companies have expressed a general level of great satisfaction.

Serbian officials are very helpful throughout the various processes that are needed when a company is making a substantial investment. There are rarely problems with the efficiency of the system, although it does crop up; however these problems are now in the The new working age generation want to be employed process of being rectified. Serbia still has some in offices using a pen and paper rather than machines, way to go until it is considered to be a fantastic investment region, but with that being said it is as if there should be some shame attached to that, respected by Korean investors. which there most definitely should not be ■ Foreign investors mainly complain about the working environment in Serbia. What are the most common problems Korean companies are faced with here?

- As I have already mentioned, the biggest problem, I believe, is that Serbia faces a misconception about its current political state and economic well-being. Foreigners are under the impression that the problems of old are still major issues, which to some degree they are, but these days they are political issues rather than out and out conflict. Every country has problems, including my own: South Korea and North Korea have had major issues for around 60 years. That being said Serbia is making the correct steps to build a new reputation in the foreign investor community and the impending accession to the EU is going along way to helping solve this, as it shows that Serbia is willing, able and ready to implement higher standards and push forward in not only its own development, but in that of the global community. Serbia is well on the way to overcoming this prejudice!

■ In order to improve efficiency of the working environment, what would be your major advice to the Serbian

■ There is a long lasting debate in Serbia on the quality of the Serbian labour force. Coming from a country with one of the highest levels of working efficiency, what does it look like to you?

- For a very long time Korean people have understood that a good work ethic is essential to the betterment of society, both in terms of their own living standards but also for the financial prosperity of the entire country. Koreans do not only work for themselves. They work for their loved ones, for their employers, and as I said, most importantly, for their countrymen. The landscape in that respect has changed somewhat of late. The younger generation seem to have a more ‘me first’ attitude that is not in keeping with the traditional Korean way of thinking.

They also have a complex about working in factories. The new working age generation want to be employed in offices using a pen and paper rather than machines, as if there should be some shame attached to that, which there most definitely should not be. Manufacturing is a key element to the Korean financial model and this problem with the younger people must be resolved quickly.

Serbian citizens appear to have the same work ethic as cordeditorial@cma.rs

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the Koreans of old. It appears to me that they understand the importance of working hard for your employer, not complaining about extra tasks or the working hours. Serbia is at a point in its development where the push to drive forward is essential. There is a common understanding amongst Serbians that they have to help out everybody, and not simply themselves. I believe that the sense of belonging to something bigger has not been lost in Serbia.

This debate really ought to be put to bed.

■ When Yura began working in Serbia, there was much talk of an inability to harmonize two different mentalities and approaches to the working rules, regulations and habits.

Being present in many Asian and European countries, do similar problems exist elsewhere?

- First of all, from what I know, Yura is very happy with the way that their work ethic and mentality has been harmonized with their Serbian employees. There are always some difficulties when investing in a new company with regards to habits, regulations and the like, but Yura has said that they are very

I have lived in Europe for around 16 years in total and have always been fascinated at the way in which, after the Second World War, the EU came together glad that their locally based employees have an approach that is similar to what they are used to back in Asia. Serbian people are generally very well educated, not to mention ambitious, and that is a major asset to not only Yura, but to any foreign investor. The unions are very easy to get along with, and so far I have heard absolutely no complaints from the management at Yura.

The “talk” surrounding an inability to harmonize a Korean working philosophy with a Serbian mentality was completely unfounded. Serbians are very open to foreigners, in addition to welcoming ways in which the country and their personal lives can be improved through hard work and just reward. Korean investors are certainly appreciative of this good attitude.

■ Only two decades ago, Korea was in serious financial difficulties, and borrowed a lot of money from international financial institutions, but all of it was repaid in only a few years. What was the major strategy in achieving such success?

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bly the largest amount of money ever borrowed. The problems arised from overspending. The then Korean economy was in a good state in every aspect except for finance. The way I see the problem was like being healthy, but having a problem in your leg - no matter how healthy you are it is still going to hurt. Korean companies were growing at a rapid rate, but without the proper financial support structure that they needed. So when their legs got cut off, they collapsed into a financial mess. In the end, the system effectively imploded and a massive sum of money was needed to rectify the problem. Our saviour came by way of export.

Export was the only way out for the Korean economy, and by taking advantage of a favourable world market situation, and an export surplus, we dragged ourselves back up onto our feet and repaid the money exceptionally quickly in around 3 years. We did not even use the whole of the credit line afforded to us such was the progress we made in those years.

This is why Yura, and Korean investment in Serbia, might show the path the Serbian economy could take. Yura, for example, are a manufacturer and as such are in the business of export. Manufacturing and thus export is the key to Serbia’s success. There is also a lesson to be learnt for Serbia. When you have experience of hardship it is much easier to overcome should it happen again.

■ We have been informed that you have written a book during your stay in Belgrade. What is the subject and where did you get the inspiration for this venture?

- I have lived in Europe for around 16 years in total and have always been fascinated at the way in which, after the Second World War, the EU came together. Yes, certainly, it took some time for that to happen, but it is remarkable how much progress has taken place since and how that continues on today. As I have mentioned, and as you are aware, my homeland has very similar problems to that of what was happening in, say, West and East Germany after the war. I want to find a way to bring a solution to my own country by looking and drawing on the changes that took place in Europe. The ‘Iron Curtain’ is no more and Europe has formed to become a financial powerhouse. I would love to see the same thing happen to North and South Korea. Dialogue and compromise are so important, but in our case it seems that North Korea will not adapt itself sufficiently to form a partnership with South Korea. It is a terrible state of affairs when family members, again like in the old Germany, are split apart.

My book is called ‘The way to European Integration Since 1945’. The title is fairly self-explanatory and it was printed here in Serbia.

■

interview DUŠAN KOVAČEVIĆ, WRITER AND ACADEMIC

Irony and LAUghTER I am starting to look at the world and life from somewhere up above.

That may sound strange, but I am convinced that, with years, a man starts to drift away in a sort of parapsychological way

Y

By Radmila StANKOVIĆ ou could easily compare him to Branislav Nušić, the author of Cabinet Minister’s Wife (Gospođa Ministarka), a book that never goes out of fashion, in order to illustrate just how eternal the work of Dušan Kovačević (aged 63) is. And timelessness is not difficult to verify. For instance, on the day when the 45th BITEF and the 143rd season of the National Theatre began, the participants of the PEN congress were in the audience, watching the ballet Who’s Singing Over There? (Ko to tamo peva?) based on the libretto / scenario which Dušan Kovačević wrote for the film of the same name. The film, directed by Slobodan Šijan and made in 1980 as a fruit of labour, was declared the best Yugoslav movie in the period from 1945 to 1995.

Kovačević became timeless by writing over twenty dramas, with some like The Marathon Runners Run a Victory Lap, Radovan III, The Balkan Spy, St. George Kills the Dragon and The Professional becoming so hugely popular that they are now a part of national folklore. He wrote screenplays for some of the most successful and long-lived movies and could not resist the temptation to direct mov-

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ies based on the screenplays and theatre plays that he wrote. He became immortal when, in 2009, he became a regular member of the Serbian Academy of Science and Art. He had a brief stint as a professor at the Faculty of Drama Arts, from which he graduated, majoring in dramaturgy. He was also the principal of the Zvezdara Theatre for a considerable amount of time.

He also did not miss out on the opportunity to be a diplomat too, just like other giants of the literary world – Ivo Andrić, Marko Ristić, Jovan Dučić, Rastko Petrović and Miloš Crnjanski. During his two-year-term as the Serbian Ambassador to Portugal, which began in 2005, he did not write at all.

These days, he is finishing a new play that will be staged at the Belgrade National Theatre. So, it is very difficult not to ask him – what is it all about?

- In the last ten years, I came to the realization that, in my job, I am getting liberated from life’s everyday problems. I am starting to look at the world, and life, from somewhere up above. That may sound strange, but I am convinced that, with years, a man starts to drift away in a sort of parapsychological way. The body is on the Earth, doing what it should do, and what we call our soul starts to float. That could sound quite mystical, to some even frightening, but my feeling is that, when writing, I look at the world more from a bird’s eye view.

■ Which means....?

- I am setting myself free from stories about a small circle of problems, ancient events and daily politics. All I am interested in is humankind and life on planet Earth. Since, one day, when we leave the Earth, we will not leave our house or a yard or our country, but the planet.

■ Can I understand that to be an answer to my question what is your new play about?

Experiments

Sacrifice

Entertainment

I am experimenting in order to find out how far comedy stretches in this wretched world. I am convinced that, when it comes to literature, nobody can catch up to the drama that life is

I have spent important years not doing my job. I sacrificed those years to the idea that I could have done something. Something was done, but not in the way I expected it

The politics of nearly all small countries, is public entertainment. The real politics is the one that is devised by two or three global powers. Everybody with common sense knows this

- Yes. Everything I have said is just a rough explanation of the play that I am currently writing. I am writing a story which we could, provisionally, describe as a story about reincarnation.

■ Did that come from contemplating life and death, which is what we do when we get to certain age?

- I did not become a playwright in a regular, normal way. I was 23 when I wrote a story about people who are on average 100 years old. I am talking about The Marathon Runners which was all about the problems that come when one grows old, and this is the underlining theme of many of my plays. You gain two experiences as you grow older. One is life experience, which makes some problems of youth rather relative. The things that used to annoy me very much, i.e. the things that I thought were of crucial importance in life, now look really ridiculous, if not funny, from this perspective.

forbid if somebody falls in love! Who wants to hear about the unhappiness of a man in love?! The story about an everyday, lovesick man, in an atmosphere of planetary horrors and tragedies that we witness every minute, seems irrelevant.

■ How can we shield ourselves from those horrors?

- A long time ago, I started to shield myself with irony and laughter. Laughter is forever, there is never enough of it, it is terribly precious and it has been proved that it heals. Also, it is not expensive as you ‘buy’ it through reading, watching and listening.

■ Have you eliminated from your life the illusion that, as a writer, you can influence the authorities for instance?

- When I was young, I had that illusion.

Most of the young people think that they can change the world and that is good. The youth should think and hope for that. As we age, we find out that the world has its cycles and that All I am interested in is ■ What is the other experience? these cycles repeat every one or two hunhumankind and life on - The other experience, which is equally dred years. As the cycle of time changes, important, is a story about a trade. Over from the planet first freezing then warmplanet Earth the years, I have mastered the trade of ing up too much, so does the social life of being a playwright to the point where I am now playing humans. We are actually the witnesses of something that has around and having fun with experimenting. And since comalready happened, but now it merely has a different name. edy noir, which hasn’t been written about too much, is my domain, I am experimenting in order to find out how far ■ For years, you were a tough opponent of Slobodan comedy stretches in this wretched world. I am convinced Milošević’s regime... that, when it comes to literature, nobody can catch up to - For twenty odd years, the politics made me sick. I was sick the drama that life is. Life dramas are catching up with us with the various political illnesses – from rather small to seday in, day out, via electronic media, and they are gathering rious ones. When I became gravely ‘ill‘ with political disapsuch momentum and becoming so horrific that writers are pointments, I left the country and, after that, I got drafted to lagging behind the global tragedy. Every day you can watch the military as a ‘reward’ for my political engagement. Don live broadcasts of catastrophes that surpass Hollywood horQuixote is an eternally true and important book. ror movies. Ten years ago there was 9/11 and we also saw how a tsunami in Japan destroyed everything in its path.

■ The second time around, you left the country on your These are planetary tragedies. On top of that, there are variown accord when you were appointed Serbian ambassador ous magazines and other media which flaunt the wealth of to Portugal. Why did you agree to embark on that advencertain individuals, whose money was suspiciously earned, ture? on their front pages. The absurdity of civilization is heading - I took up that position with a proposal and an opportunity towards a major disaster. to do something. Some of it did materialize. That was a pleasAm I therefore supposed to sit down and write about an ant diplomatic story which ended after a year. My thinking average Joe who is unhappy so that you can come to the theawas – if I can help in any way, I will aim to do that until the tre and watch a story about ‘an average misfortune’. And, God story ends. When it ended, I returned to Belgrade and said cordeditorial@cma.rs

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that I had no job since I refused to sit in such a pretty country and behave like a man who took a long vacation from writing. I did not have the time to do that and I said goodbye after a year and a half.

that. I watched how these people changed in a matter of a year or two. In addition to how they start resembling the very people they fought against!

■ These are the people that you protested in the streets with, who are now in the government and who have become a disappointment to their electorate?

- That is the problem. Never can an enemy disappoint me by tricking me since I expect that from them. That is normal. But it is very unexpected when a person that you share a table and ideas with, that you talk to about everything being better when this awful period ends, a person who swears by democracy, justice and honesty, now suddenly starts to resemble the persons you fought against together.

And then you realize that you are actually an amateur, that you have to deal with professionals who look at you like a clown. Back then, we did not know that these people, who were career people, joined politics with the ambition of staying in it forever in order to become state presidents, prime ministers and parliament speakers. To become successful businessmen, to have companies… To have power and money…. I sat with these people as an ordinary man who wanted change and serious democracy, which, when I look back, looks rather naive now. In all honesty, it’s not their fault. They did their jobs from the very beginning and it is us that haven’t recognized what line of work they were in. I was an amateur who did not do enough of his job – writing plays. I did manage to write several scripts, while I wasn’t demonstrating in the to civil unrest and everything Politics is not only a matter of choice; streets, whilst they were preelse that has changed. But, paring their path for getting it is something that a person is from 2000 onwards, we lost to power and accumulating preordained to do in ‘extra time’. The promises capital. Truth be told, there and hopes, that we were given and had when were spending were some signs that that might happen, but to us, the amayears in the streets, did not come to fruition. teurs, it was much more important for the old ones to go, than what these new ones were doing.

■ What lessons did you learn from that time?

- Many. First and foremost, there is a realization that a man ■ Then it comes as no surprise that Milošević’s politicians, with excess emotions should not be a politician. Politics is the new politicians and the tycoons get along so well since not only a matter of choice; it is something that a person is both of them are professionals at what they do. Is that your preordained to do. I think you are either born to be a politiexplanation? cian or not, just like you are born to be a poet, a painter, an - They share a common trait of wanting a career – from the architect or any other profession for that matter, providing time when they were kids to the time when they were Tito’s you are successful. That means sticking with politics all your pioneers. However, there is a little problem here – most of life. Such men have passion, desire and a huge quantity of them have never worked. They did not spend a single day narcissism so that they can withstand the humiliation and doing concrete work; they have always been political party insults and stay in their political position. It is a well-known people. They got truly versed at the ages from 15 or 16 all fact that being addicted to politics is worse than heroin adthe way through to their 50s, which is their average age diction. People get off drugs much easier than they do off today. And they easily vanquish any amateur that dares to power. I believe in that. I saw those people when they first play their game. climbed the political stage and got a loud applause, how it changed them. I watched them change when they were driv■ Today, these party crackerjacks have the final say about en in a limousine with tinted windows for the first time and almost every segment of cultural and social life. We could there was a line of cars with rotating lights in front of them. say that today’s control is even tougher than the communist You have a very difficult time getting into a normal car after ones during the time of Broz and later Milošević.

■ Let’s talk more about your political illness. How would you describe your current condition?

- I am still feeling the consequences of that illness which is understandably rational. I have spent important years not doing my job. I sacrificed those years to the idea that I could have done something. Something was done, there is no doubt about that, but not in the way I expected it. In football jargon, in the 1990s, we won the game, at least when it came

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- Let me give you a concrete answer to that. As a playwright, I have been in Zvezdara Theatre since 1988. In the last decade or so, I am also the principal. My position directly correlates to the relations between political parties and political investment programmes for theatres. We are currently in a building that, some 25 years ago, was a shed with 270 seats and a tree that grew through the roof. Today, this building has two stages, 2,500 square metres of useful space, a beautiful garden and workshops below. Out of all of what I have just mentioned, the state only gave us chairs for the small stage and around 150,000 euro’s. The construction and subsequent reconstruction of the building were done with the help of a loan that we are repaying with our ticket sales. We are also repaying our sponsors with the money from ticket sales, and we somehow manage to survive in a thousand different ways. Certain ‘political’ theatres were built with millions and millions of investments, since the people who run these theatres are members of the governing political party. And that’s it.

There is nothing else to say.

■ There is talk around the town that the Zvezdara Theatre is actually your theatre.

- I know. Those who are saying that are forgetting one small thing – if I was not affiliated with the people who wanted to help and invest in

As a playwright, I have been in Zvezdara Theatre since 1988. In the last decade or so, I am also the principal. My position directly correlates to the relations between political parties and political investment programmes for theatres Zvezdara, the theatre would have been closed down a long time ago, since it was nearly completely destroyed in the 1999 bombardment.

And I plan to leave the theatre soon to become more dedicated to my own work – writing. I am going to leave to the city a theatre with two stages and 700 seats, that was built with the hard work of its employees and actors and, as I said before, my private relations with people who love theatre.

■ What do you mean when you say ‘soon’?

- That means that I intend to withdraw from the position of principal next year. I have been in theatre for almost 40 years. I was a participant and a witness to the construction and reconstruction of Atelje 212. Here, I started from scratch and I am a little tired of making phone calls and begging for somebody to help the theatre. I am also tired of having privileges just because I am in Zvezdara. That’s why I have signed a contract with the National Theatre where I will stage my new play. I don’t think that if I was not in Zvezdara, my plays would not see the light of the day. I have received offers to write new plays until the year 2157.

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■ So, you got rid of politics and now you have a plan to get rid of the principal’s chair too. Does that mean that, in the future, all you are going to do is to write, write and write some more?

- For years, I have been masochistically fighting not to do what I did not know how to do. That is typically human – you are least interested in doing what you know and what God has given you to do. But you are interested in foolish things that you are not talented to do or you should not do at all. That is because of the child that lives in every grown man. When a kid sees a cherry tree, all it wants is to climb it even if that means falling from it. Humans have always been drawn to shiny and colourful objects.

If you pay more attention and see that the best thing to do would be to do what you know, when you realize that, then there is no more time left and you snap out of it and say to yourself: “I had the luxury of wasting all those years when I was young, having no sense of time and spending years like I am a rich man, now I don’t have that anymore.” There is a saying that I grew fond of over time, which goes like this - when you turn 51, you become a majority shareholder in your life and you need to make decisions accordingly.

■ How many times did you fail that class?

- Only once, as is permitted. And it was really beneficial to me to find out what happenes when a man is doing things that are not his ‘cup of tea’.

■ Did you pay the price for that experience?

- I have been organizing protests since 1991, i.e. since the demonstrations near the Terazije fountain. I called the most renowned musicians, actors and singers to join me, which they did, since the people, who were supposed to listen to the politicians, were more inclined towards listening to someone who had something nice to say or sing about, rather than listening to the politicians saying the same things over and over again. I have been doing that for years, and then I got phone threats, menacing notes, warnings through newspapers…. One day, a man from the state security services came to the theatre and warned me that I was getting in too deep and that I needed to “take care of that”. Also, there is this white mage that got somehow involved and told me that his premonition of my life was that it would become a catastrophe. As I later found out, this white mage was collaborating with the state security too.

All of these people are just like the char■ Do you behave in line acters in my plays; I have decided that the best and the wisest thing hence my plays with that saying now?

- I have decided that always have a lot to do should be to sit down and spend the next the best and the wisest of police in them. two or three years writing a book in memory of thing to do should be to This play, that I the friends who are no longer with us sit down and spend the am currently writnext two or three years ing, has two powriting a book in memory of the friends who are no longer licemen, as they are always around us, supervising our lives. I with us and who have been terribly precious for the life of have also had the opportunity to have close encounters with Belgrade and Serbian culture. I was great friends with these people who were professional killers. I was walking my dog people nearly all my life. And these stories are going to be in the street near the park. A small Audi suddenly stopped at much more valuable than me talking about elections bringthe park’s gates, with its back window starting to slide down. ing something new to Serbia, since we all know that nothing A man peaked through, started to stare at me, I stared back important will happen. Serbian politics, just like the politics and that is something that I remember to this day. I saw him of nearly all small countries, is public entertainment. The talking to somebody in the front. All of that lasted for about real politics is the one that is devised by two or three global ten seconds. I walked into the park and expected to be atpowers. Everybody with common sense knows this. Polititacked from the back. And then, the car abruptly drove off cians in small countries are just postmen who deliver letters, into the night. I felt like a dead man walking for a whole postcards and sometimes happy, sometimes sad telegrams. hour. That also happened on my way to Zlatibor Mountain, They ring your door bell and are chased by your dogs. Durwhen my car was intercepted and pushed off the road. Just ing the election campaign, when they take over the media, like in movies, funnily enough… as will happen in the next two or three years, the television At certain points, I became like the characters from my will want you to believe that it is something really important plays which was very dangerous. Instead of writing about since the sentences they say sound so promising. those people, I started living their lives. A writer should never become a character from his book, since, in that case, he is ■ And the same story repeats itself every time before elections… not a writer any longer. I heard a story that a writer’s head - Yes, and we need to learn how not to fail the same class five fell on the keys of his typewriter and that only four letters consecutive times. were on the paper.

■

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Restitution Challenges The European Union finds restitution to be one of the major reforms. Brussels, Strasburg, and also Washington say that the adoption and implementation of just, clear and financially feasible Restitution Law is of utmost importance. Neither does Serbia deny that clear Restitution Law is necessary for important economic reasons. Lack of Restitution Law discourages investments and economic development by casting shadows on property ownership. We asked participants the following question.

If Serbia, judging by the attitude shown so far, is getting closer or further from a just, clear and feasible solution, and is the country making a step forward towards to the European Union?

Edward McMillan-Scott, Vice-President of the European Parliament

Return on Assets is Fundamental

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n January 2011 MEPs voted overwhelmingly in favour of the Association Agreement between the European Union and Serbia, and more widely on the progress Serbia has made towards being accepted into the Union.

The Resolution - passed by the Foreign Affairs committee in December 2010 with 51 votes for, 0 against and 2 abstentions - alludes to the problem of property restitution in Recital 14: the motion “stresses the importance of the restitution of property as an important step in administering justice”.

For years I have been in close contact with many friends who have had their properties taken from them in Serbia, who still have not been granted ownership or suitably compensated. I visited the area in 2006 and saw the situation first-hand; one such example is the Old Mill complex in Belgrade which is sitting unused and derelict in the hands of the state rather than its rightful owner who has been campaigning over the years for restitution.

Unfortunately this is just one of many cases which suggest that

the Serbian authorities are not taking the issue of property restitution seriously. With the passing of the Lisbon Treaty in 2009, all EU Member States became bound to the Charter of Fundamental Rights, which includes the ‘Right to Property’ in Article 17: 1. Everyone has the right to own, use, dispose of and bequeath his or her lawfully acquired possessions. No one may be deprived of his or her possessions, except in the public interest and in the cases and under the conditions provided for by law, subject to fair compensation being paid in good time for their loss. The use of property may be regulated by law in so far as is necessary for the general interest.

2. Intellectual property shall be protected.

It is my opinion that the European Parliament’s Resolution on Serbia only “stress[ing] the importance” of property restitution “as an important step” is not forceful enough; it should be regarded as a fundamental condition for Serbia’s accession to EU membership. It saddens me that my friends in Serbia who have been refused this fundamental human right still do not feel that their government considers the issue of property restitution to be important, and find themselves no closer to a solution.

Let’s all hope that Serbia embraces this most European of values, and then and only then should the EU embrace Serbia in return.

Jasmina Kabadaja, Head of the Property and Endowment Sector at the Belgrade University confiscated property to endowments (article 5), and in part which deals with nationalized property, in line with article 10, the rights of the rightful property owners should not be breached. This part is also quite vague in terms of n 2006, the Belgrade University endownment assets, i.e. in which way are these confiscatsubmitted 86 claims to the Republic ed assets going to be indemnified bearing in mind that they of Serbia Property Directorate for have been privatized in line with a law that does not stipuregistration of the University’s as- late indemnification in kind.

Our opinion is that no law, including this one, should be insets, including endowments, that have been confiscated. Since then, complete in proposing ways and amounts for indemnification, we have been waiting for the Law in cases where indemnification in kind is not possible. Since we are talking about a draft law on Restitution and Indemnification Since we are talking about a draft law here, we expect the text of the to come into force. The law is suphere, we expect the text of the law to be law to be changed or amended to posed to correct a huge injustice changed or amended provide a fair resolution for the towards the donors and their last wishes, as expressed in their wills, and will be an important restitution of confiscated assets and indemnification. In this step forward on the country’s way toward the European Union. way, the assets that were donated to the University would be More precisely, some stipulations of the draft Law on returned, as would the endownment property that was given Restitution and Indemnification envisage giving back the to the University to manage.

Law is Incomplete

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Dr Milan R. Kovačević, economic consultant

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t would have been much better if the indemnification had been done earlier. There would be no negative consequences and the time to do it was better. We should avoid procrastinating. In order to have more foreign investments, we need to consolidate ownership rights, bolster contracts and protect both creditors and small investors.

It would have been better if we had chosen either indemnification or restitution, but that is no longer possible. Now, we are going to let coincidence decide. In reality, restitution costs more than indemnification, since the state could sell and cash in the assets that it would othWe need to limit the amount of individual indemnification and the total amount allocated for the indemnification in general.

Otherwise, our economy would be in jeopardy because of our hastiness

erwise give back. The costs of indemnification will fall on taxpayers, as will the restitution of the assets of those people who masterminded the seizure of those very assets. Countries always spend on indemnification within their limits. Even the people who had old foreign currency savings did not get a full return of their money. I don’t expect the European Union to complain, since there are even EU countries that have done less than required in this respect. Even if we didn’t aspire to become a union member, this is something that we are morally obliged to do.

We need to limit the amount of individual indemnification and the total amount allocated for the indemnification in general. Otherwise, our economy would be in jeopardy because of our hastiness. It would be good to start with applications that have been submitted in line with the existing law and, if needed, ask for proof that hasn’t been provided yet. Also, it is very important to define the procedures as precise as possible in order to narrow the possibility of corruption which could threaten the assessment procedures. The decision making process ought to be carried out by the existing institutions as much as possible in order to cut back on costs.

Neglect for Civil Law

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fter the fall of the Berlin wall, Serbia was labelled as one of the few remaining junkyards of communism. A term was coined describing Serbia in the nineties: cleptocracy. After this freefall of Serbia’s reputation came the 5th of October 2000, the velvet revolution, which gave us a chance to redefine ourselves. Eleven years later we have to admit that Serbia missed this chance to redefine itself - deliberatly. If a country in transition from communism to market economy postpones its property law reform 22 years (from 1989), or 11 years (from 2000), then it is clear that its political class did not want to reform the country by EU standards at all.

It is clear that the Law on Restitution as well as the Property Law and the Law on Public Property will be passed soon under pressure from the EU, in order to get a passing mark

Whilst in government, I led the property law reform on my initiative: passed the Mortgage Law and Church Restitution Law, prepared drafts of Property Law, Law on Restitution and Construction Land and the project on Planning and Construction law was well advanced. I ordered a Law on Public Property to be prepared by lawyers. This work was very well received by the general public and the EU Commission.

When we look at the Restitution Bill, we see that it is actually a law aimed at ratifying the property situation established in a period of time when private property rights and their protection were either anti-systemic (in communism until 1990) or willingly demised by the state (cleptocracy from 1990 to present day). An example of cleptocracy is when the state is simultaneously preparing a law on restitution and selling the property which is the subject of restitution for market price while planning to compensate the claimants by giving them 10% of market value in the next 15 years. It is clear that the Law on Restitution as well as the Property Law and the Law on Public Property will be passed soon under pressure from the EU, in order to get a passing mark. The contents of these future laws reflect a deep neglect for civil law and civic values for freedom and prosperity and are a huge compromise with an ugly past. The rule of law is still far away unfortunately. cordeditorial@cma.rs

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Consolidating Ownership Rights

Dr Milan Parivodić, Former Minister of International Economic Relations

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Bogdan Veljković, President of the Association of Citizens to Reclaim Confiscated Property

The Draft is a Deliberate Deception

sets with appropriate legal consequences, restitution was left to be handled by the law that was yet to be enacted. The draft law, however, does not stipulate implementation of the court orders on rehabilitation, which basically means negating these orders. The Law on Restoring Property Rights to Churches and ollowing the adoption of the Religious Communities stipulates principles of restitution, as 2005 Law on Processing Claims well as substitution or cash indemnification as per market valfor Confiscated Property, as well ue. Instead of the Law on General Restitution being enacted as the Law on Restoring Property along the same principles, the government is now changing Rights to Churches and Religious Communities and the Law on and amending the Law on Restoring Property to Churches in Rehabilitation, the process of restitution has been officially an- order to avoid giving back the property to its original owners.

The draft Law on nounced and instigated. By Restitution is a deliberInstead of the Law on General Restitution being adopting the aforementioned laws, the state, albeit declar- enacted along the same principles, the government ate deception, as it favours atively, undertook to carry is now changing and amending the Law on Restoring cash compensation in the out the restitution of proper- Property to Churches in order to avoid giving back shape of worthless bonds the property to its original owners with low limits and interest ty on behalf of over 140,000 rates, despite the fact that families that submitted claims for confiscated property, but, in reality, the state did every- the state owns most of the property that is being claimed and thing in its power to prevent this process from taking place. that this property could be returned in kind, without any costs According to the Law on Rehabilitation, which served as the to the state budget. In essence, the draft law is legalizing the basis for courts rehabilitating the persons that were unlawful- unlawful transfer of property from the state to authorized inly convicted and annulling the decisions to confiscate their as- dividuals and groups.

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Mile Antić, The Restitution Network

Things Might Change for Better

to be given as a gift to the people who were involved in this process together with the government. If we lived in a properly regulated state, these processes would have been investigated by the anti-organized crime units a long time ago.

The fact remains that, today, the state of Serbia or its political parties own 30 times more forests, 20 times more buildWith its actions and proposals, the Serbian Government is abolish- ing land and twice more farmland than what is actually being ing the existing restitution, while di- claimed and yet the state keeps on avoiding the substitution, minishing the importance and stul- which speaks volumes about an overt intention for this property to actually be given only With the current government proposals, what can to the politically suitable peotifying the future restitution, happen is for these state-occupied assets to be ple in the future. The common thus realistically disabling given as a gift to the people who were involved in denominator of these actions this process together with the government is that the government, at all economic progress and creatlevels, is purposefully avoiding ing even greater legal uncertainty. Such situations suit only those individuals who use compiling an inventory of state assets.

Instead of restitution and substitution, which would rethe fact that Serbia is making an effort to become a regulated country as a practical tool to collect short-term politi- duce the number of indemnification claims to a minimum and cal sympathies and serious cash, while causing huge damag- enable the rule of the law, equality and an increase in the number of self-employed people, it seems that we are going es in the long-term.

During the so-called privatization process, state property to get just the opposite. Never have the culprits paid the price has been mostly pre-empted. With the current government of irresponsibility, but, with Serbia getting closer to EU accesproposals, what can happen is for these state-occupied assets sion, things might change for better.

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Irinej Bulovic, Bishop of Bačka direct confrontation between the authorities in power and traditional churches and religious communities. Also, in Europe and abroad, our country would have been terribly humiliated and its reputation, which had already been damaged through ollowing the news that, in the the fault ourselves and others, would have been shattered. evening on the 23rd September, Hence, we would also like to give recognition to the government the Serbian Government withdrew, for understanding the destructiveness and absurdity of the infrom the parliamentary procedure, famous ’changes and amendments’ that came from utterly amits proposal for the existing Law on ateuristic, both in a legal and civilization sense, workshop of Mr. Restitution of Unjustly Confiscated Božidar Đelić and his nameless team (if such a team even exProperty of Churches and Religious Communities to under- ists). We are acknowledging that the government, because dogo changes and amendments – which, if they were not delet- ing that at the last moment and under the pressure of inevitaed, and, God forbid, were enbility that it could not secure In Europe and abroad, our country would have been acted, would substantially rethe majority to vote for the terribly humiliated and its reputation, which had duce if not render meaningproposal, whether that maalready been damaged through the fault ourselves less this Law. jority was made of parliaand others, would have been shattered First and foremost, we are ment members, from oppograteful to God for such an outcome of debate and polemics, sition parties or their own parties in power. that lasted for several months, about the topic which, under the In any event, all traditional churches and religious communiprism of law, morality and overall interest, should not have even ties in Serbia expect and seek justice to be served not only for taken place since, practically speaking, if the law did dissolve as themselves, but also for all victims of injustice and violence. One a result of the existing divisions and friction in our society, the thing is certain – there is no injustice in God nor does God parinevitable consequence would also be an utterly damaging and ticipate in injustice.

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Stupidity Avoided at Last Moment

comment exclusive

Strengthening Relations

Belgrade hosted, on the 5th and 6th of September 2011, a commemorative meeting of the Non-Aligned Movement (NAM), to celebrate the 50th anniversary of the first summit held in this timeless capital in September 1961 H.E. Mr. Aly Galal Bassiouny, Egyptian Ambassador to Serbia

ers, amongst who are Tito, Nasser, Nehru, Nkrumah and Sukarno. During the two days of the meeting, NAM’s immeasurable contributions over the past five decades were evaluated, particularly in the process of decolonization, achieving independence of many developing countries, encouragement of total disarmament, reduction of the economic gap between the North and South, protection of the principles of sovereignty, territorial integrity and non-interference in internal affairs, equality, peaceful coexistence and peaceful solution of conflicts based on international law and the UN Charter.

Moreover, the meeting looked

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has succeeded to adapt itself in response to the new challenges that the world is facing and accordingly has grown from 25 founding nations into a global force comprising 120 countries, today representing one of the biggest groupings next to the United Nations. The common denominators that brought together the movement’s countries will remain binding in dealing with today’s challenges. The event clearly indicated that the same principles and values laid down in this city 50 years ago are still valid in the present world, reaffirming conviction that the movement will continue to play an active role in achieving

ore than 100 members and observers of the movement, as well as all other former Yugoslav republics and guests, participated at the event under the chairmanship of Egypt, the current chair of the movement. This high level participation indicated Over the years, the movement has succeeded to adapt itself the continued strength of the movement and strong in response to the new challenges that the world is facing and commitment to its principles accordingly has grown from 25 founding nations into a global force and values. Moreover, it comprising 120 countries demonstrated the spirit and historic legacy of Belgrade, lasting peace and wellbeing for our into the means and ways to make the site from which the movement countries and peoples. the movement more effective and was launched, and the solid foundaOn the other side, the event has to solidify its stance in the intertions of relations that bind Serbia, come to demonstrate the historic national arena. It also looked into other former Yugoslav republics relations that have existed between how to strengthen the relations and NAM. As the Egyptian Minister Cairo and Belgrade for many decades. between the movement and other of Foreign Affairs, H.E. Mohamed The visit of the chief of Egyptian groupings in achieving the aspiraKamel Amr, put it: “In our movediplomacy to Belgrade has provided a tions of our peoples in all economic ment, Belgrade will remain the great new momentum to the already exceland political fields. The discussions city that hosted the first summit, a lent relations, as it included fruitful covered a wide range of issues, lightening beacon of the sacrifices of discussions with President Tadić as mainly supporting the Palestinian our founding fathers and a source of well as several other ministers. The endeavours for the recognition of pride for future generations of what two sides reaffirmed their strong the state of Palestine and acquirhas been accomplished and what we determination to further deepen ing full UN membership, as well all aspire for in the future.” the cordial level of cooperation in as the reform of the UN, amongst The event highlighted NAM’s conall fields for the benefit of the two other issues. siderable achievements in realizing friendly peoples.

Over the years, the movement the aspirations of its great found■

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comment exclusive

World’s Largest Peace Movement To recall what Prime Minister Nehru said in Belgrade 50 years ago and I quote “The power of nations assembled here is not military power or economic power, nevertheless it is power. Call it moral force”

Mrs. Preneet Kaur, Minister of State for External Affairs of the Republic of India

T

he founding fathers of our movement met to chart an alternative vision of the world order. As our former Prime Minister and a great supporter of our movement, Rajiv Gandhi said: “To return to Belgrade is to return to the birthplace of the Nonaligned Movement.”

The non-alignment symbolized keeping an independence of policy, not aligning with power blocs or making pre-commitments, judging each issue on its merits and not taking decisions based on pre-conceived notions.

They met at a time of great fear and anxiety in the world and fashioned a path of hope out of the morass of the Cold war. They firmly articulated a vision of peaceful co-

racism- an achievement of which the movement can be justifiably proud and draw inspiration from.

NAM kept the newly independent countries away from the military alliances spawned by the Cold war and enabled them to concentrate their energies and resources on their economic development. Prime Minister Indira Gandhi described NAM quite aptly as the largest peace movement in the world. We live in an increasingly inter-connected world and one which is undergoing rapid change. We have noticed a growing predilection for intervention, including military intervention, in the internal affairs of countries even when there is no manifest threat to international peace and security.

terrorism. It is high time that we demonstrate the necessary political will and agree on a Comprehensive Convention on International Terrorism.

There is imperative need for the developing and developed countries to work together to effectively tackle the challenges of food security, energy security, health, education and environment and climate change.

Nowhere are the challenges NAM kept the newly independent countries away from the military humankind faces more pressalliances spawned by the Cold war and enabled them to concentrate ing than in the African contheir energies and resources on their economic development tinent. The Movement must continue to work towards ensuring Africa’s pre-eminence in the global development agenda.

While the international community existence as an alternative to the Cold Our thoughts also turn to the can assist in the process of accommowar and the consequent arms race. people of Palestine, who have endured dation and reform, its actions must be They rejected the inevitability of war great suffering and hardship. With the premised on the basis of respect for and gave hope to others that with latest renewed impetus to the peace national sovereignty. active cooperation and exchanges process in the Middle East, we hope We need to redouble our efforts among peoples, it was possible to that this would lead to a comprehentowards a more democratic, equitable, have peaceful co-existence among sive, just, lasting and peaceful settleand legitimized international architecStates with different political and ment of the Palestinian issue. ture that reflects contemporary realieconomic systems.

For further strengthening our ties. India remains convinced that until This moral force has indeed movement, we need to effectively comprehensive reform of the UN Secutaken the movement from strength exploit the synergies amongst its vast rity Council is undertaken, the overall to strength in the last five decades. membership. Our overall approach reform of the UN can only be regarded As a force representing the newlymust be guided by a new, forwardas piecemeal and incomplete. independent former colonies emerglooking and focused agenda, which Terrorism is one of the greatest ing from variety of national liberation draws inspirations from our convicscourges of our times. India strongly struggles, the movement helped close tions of the past and builds upon our supports the strengthening of the a long and painful chapter of colonialaspirations for the future.

■ global normative framework against ism, imperialism and institutionalized

cordeditorial@cma.rs

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86 October 2011 | 33

Interview Žarko Galetin, Director General of the Novi Sad Commodity Exchange

Regional Exchange Concept Today, the Novi Sad Commodity Exchange is a venue where real market relations are established, i.e. relations that are free from any monopoly, partiality and pressures

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he Novi Sad Commodity Exchange, which has was established over half a century ago, has regained its market position and institutional authority - says the Exchange’s Director General, Žarko Galetin. The Exchange had been operating in line with various system solutions, as imposed by the economic atmosphere in the state, and, in time, lost its main purpose – to organize the exchange market. The U-turn happened in early 2002 when a classic system of exchange trading was introduced through buy & sell order matching and selling on the SPOT market. On 8th November, 2007, the Serbian Government made an official decision to change the Commodity Exchange into a single closed shareholding company with the state as the sole shareholder. The authority of the state, as the proprietor, and a balanced media pr campaign catapulted the Commodity Exchange back into the market scene as an inexorable and necessary piece of the market puzzle, especially in organizing agricultural commodities trade – Galetin says.

■ Aside from its core activity, the Exchange offers other market services.

- Now, more than ever, the Commodity Exchange provides logistics for organizing and implementing various intervention projects funded by the state. The reason why the state trusts us so much lies in a well-documented good, transparent and fair organization of trading that is facilitated by the Exchange’s trading technology in Novi Sad. Both bid / sell aspects are quoted based on the quality of the commodities and the sovereign will

The recent developments give us hope that we will outgrow our national boundaries and become a venue where the wider regional market will ‘battle it out’ 34 |

86 October 2011

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exercised both by the buyers and sellers in forming the bid / sell quote on their own terms. In case this freely expressed will of both buyers and sellers overlap in terms of the commodity quality, price and payment conditions, what happens is stock order matching.

■ Doesn’t the Commodity Exchange have sufficient potential to offer more than it is offering at present, i.e. to expand and grow?

- I do think that the Commodity Exchange has huge potential and an opportunity to become regional leader.

Compared to the similar exchanges in the countries of the former Eastern bloc, our exchange emerged much earlier than theirs – in 1921, and it re-opened in 1958.

The events that transpired by the second half of the 1980s led to the development of a commodity exchange markets in those countries, with us lagging behind.

The recent developments give us hope that we will outgrow our national boundaries and become a venue where the wider regional market will ‘battle it out’. The concept ‘Commodity Exchange – Regional Exchange’ was promoted at the Novi Sad Agricultural Fair in May this year. In early June, we signed a protocol with the Trieste Commodity Exchange, and in August, during our official visit to Rome, we opened up the doors to establishing collaboration with other commodity exchanges in Italy, primarily with the Bologna Exchange with which we are probably going to conclude concrete cooperation by the year end.

■ What do you expect the state to do in order for the Novi Sad Commodity Exchange to develop even faster?

- The position that the commodity exchange has as an international factor in organizing exchange trading will be further improved with the adoption of the Law on Commodity Exchanges and harmonization of the Exchange’s operations with the law. Everything is moving in a good direction, bearing in mind that the reshuffled Serbian Government is now getting involved in this issue and has put together a task force that will draft the said law.

The task force has to do that by the end of this year.

■

Business Dialogue OCT 2011 - BUSINESS lEADER'S MEETING POINT

PaGe 40

ANDREA SIMONCEllI, Chairman & CEO, Delta Generali Osiguranje

Lack of Insurance Culture

PaGe 45

STOJAN ČOlAKOV, Director of Energoprojekt Niskogradnja a.d.

traditionally Reliable Partner

PaGe 44

SRĐAN lAZOVIĆ, Head of Corporate and Regulatory Affairs, Serbia & Montenegro, British American Tobacco

Excise

PaGe 46

NEIl MACDONAlD, Financial Times

It’s (trade) War

Partners

Business Dialogue 01

"We have demonstrated cooperation at various levels to find out who could be our partners to build a modern Serbia. We are not ready to keep power at any cost, which would include a coalition with parties with whom we do not share common values." - Mrs. Jelena Trivan Democratic Party Vice President.

02

Piraeus Bank Group

Profit Increased 19 Percent

The Best or Nothing!

The Group’s organic profitability improved in Q1’11, despite the unfavourable market conditions

Mercedes Benz Serbia and Montenegro signed a contract with Novak Djokovic, the world’s No.1 tennis player Michalis Sallas, Chairman of BoD

“Developments over the past weeks have created a more positive environment in Greece. Importantly, the anticipated implementation of July’s EU resolutions should lead to more sustainable public debt and the stabilisation of Greece’s fiscal balance. This, combined with further strengthening of the banking sector through consolidation and foreign investment, we believe will drive the Greek economy into a new period.” – Stated Mr. Michalis Sallas, Chairman of BoD. At the end of June 2011, the group possessed a network of 866 branches and employed 13,135 people. Piraeus Bank Group’s total equity amounted to €3.3 bn, customer deposits to €26.4 bn, net loans €36.7 bn and total assets to €57.1 bn.

“The pre tax and provision profit amounted to €372 mn compared to €312 mn in Q1’10, an increase of 19%. This was mainly contributed to by the increase in net interest income by 6% at €628 mn and the reduction of operating costs by 4% y-o-y at €403 mn (-5% in Greece).

The group’s steadily increasing organic profitability enables the group to maintain its capital adequacy ratios at a satisfactory level and to further strengthen its balance sheet.”- Pointed out Mr. Stavros Lekkakos, CEO.

03

04

TELENOR

Serbia Permanent Commitment

After five years of operating in the Serbian market, Telenor has expanded its services and mobile telephony, and began its operations in the field of Internet and fixed telephony. Telenor today offers users the fastest network in Serbia, ready to support the most advanced services and devices, and its complete restoration is one of the largest capital investments in Serbia this year.

“Telenor firmly committed to Serbia in 2006 when it entered this market as the largest foreign investor so far. For five years, we continued to invest heavily in our staff, network and relationships with customers.

Recently we released our most recent work in network across Serbia in order to further improve access to the Internet and therefore noticeably contribute to the socio-economic growth of this country. Investing in Serbia is our permanent commitment and we are satisfied that our subscriber base is growing steadily - at present there are more than 3 million.

“Said Kjell Morten Johnsen, CEO of Telenor.

86 October 2011

Andreas Binder and Novak Djokovic

After winning numerous tournaments and rewriting the history of both Serbian and world tennis, the best tennis player of the world and the most popular sportsman of Serbia became the brand ambassador of Mercedes Benz in the territory of Serbia and Montenegro this autumn. The contract undertakes the use of the image and appearance of Novak Djokovic.

This cooperation was desirable and expected by Mercedes Benz since the Serbia Open, as Mercedes-Benz was the official vehicle of the tournament.

Under its motto “The best or nothing”, Mercedes-Benz wanted only the best person to fill the role of ambassador. ”We are more than happy that Novak Djokovic became the ambassador of our brand, especially in this year as Mercedes-Benz, and the whole world, are celebrating a big anniversary of the patenting of the first car in the world. Novak’s appearance and tennis skills fully represent all the values that underlie Mercedes-Benz. We sincerely believe that this is only the beginning of a successful cooperation,” said CEO of Mercedes-Benz for Serbia and Montenegro, Andreas Binder.

“I am pleased that we have achieved this partnership. This year is the best year of my career and I also know that this is especially significant for Mercedes. My family and I love Mercedes-Benz, which is the undisputed leader in the automotive industry; it has a fascinating history and unsurpassed technology and character. I am pleased that this cooperation has been achieved in such a special year for both sides,”said Novak Djokovic.

construction

Turner Construction Arrives in Serbia

Telenor customers get the fastest and most advanced network, innovative and creative services and support for the arts, the disadvantaged, Education and Sports

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Mercedes Benz

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The world’s largest construction company, USA-based Turner Construction (www.turnerconstruction.com), is going to open its subsidiary in Serbia. Turner Construction has made some of the largest buildings in the world, including Taipei 101 in Taiwan and Burj Khalifa in Dubai.

The arrival of the famous company to Serbia is associated with a wide range of investments. Serbia and Turner have reportedly arranged for several minor projects such as the reconstruction of the Continental Hotel in Belgrade.

Turner Construction Company is one of the largest construction management companies in the United States with a construction volume of $8 billion in 2010. It is a subsidiary of HOCHTIEF Germany (www.hochtief.com).

05

IMF projection

So Far So Good

Serbia can expect an economic growth of 2% this year and of 3% next year, according to the International Monetary Fund (IMF)

The inflation rate in Serbia should amount to 11.3% this year, while it should be significantly reduced in 2012, slowing down to 4%, says the IMF September 2011 World Economic Outlook (WEO) that can be found on the IMF website. When it comes to neighbouring countries, the IMF predicts very modest gross domestic product (GDP) growth for Croatia of only 0.8% in 2011 and of 1.8% in 2012, while consumer prices should grow by 3.2 and 2.4% for the respective years.

Economic growth of 3% this year and 3.7% in the next are expected for Macedonia, while the country’s respective inflation rates are projected at 4.4% and 2%.

The projection for Montenegro points to 2% GDP growth in 2011 and 3.5% in 2012, and to respective inflation rates of 3.1% and 2%.

The IMF projections say that Bosnia-Herzegovina should see 2.2% economic growth this year and 3% in the next, while consumer prices are expected to increase by 4 and 2.5% for the respective years.

The analysis and projections given are part of the IMF projection for the 14 European developing economies.

Source: Tanjug

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Pressure

06

Trade

“The EU is abusing Serbia’s trust by using the issue of candidate status to exert pressure and round off Kosovo’s statehood by illegal unilateral actions.” Vojislav Koštunica.

Export to Germany Rose 28 Percent Serbia's foreign trade with Germany in the first seven months of the 2011 rose by 21.4% and reached an amount of €1.4 billion

The deficit on the Serbian side wase € 321.4 million, says the Chamber of Commerce office Srbja (PKS) in Germany.

Serbia January-July 2011 exported goods worth €549.1 million, which is 28.7 percent over the same period last year and imported goods from Germany of € 870.5 million or 17.2 percent more than in the period 2010.

The share of exports to Germany in relation to total exports from Serbia was 11.3 percent, while imports from Germany make 10.7 percent of total imports of Serbian.

Germany is the second largest destination of export for Serbian goods after Italy (€585.1 million), and is also the second largest destination of imported goods after the Russian Federation (€1.1 billion).

Looking at the total amount of foreign trade between Serbia and countries in the European Union, Germany is first place, and only nine million euro’s greater trade with Russia, which is currently in Source: Tanjug first place.

08

Coca Cola Hellenic

The Most Desirable Employer Coca-Cola Hellenic Serbia has been selected as the most desirable employer in 2011, according to research conducted by the student organization AIESEC - fair education, business practices and career days. The research, carried out since 2006 until present, surveyed more than ten thousands visitors amongst whom most were young graduates under 25 years.

09

New Serbian Movement

Businessmen Enter Into Politics Dragoljub Vukadinovic - Metalac

A group of successful Serbian businessmen shall set up a movement soon.

As ‘Blic’ learnt, the founders shall be Dragoljub Vukadinovic (‘Metalac’ President), Branislav Grujic (‘PSP Farman’), Nikola Pavlicic (‘Tarket-Sintelon’ Honorary President), Mirko Todorovic (‘Todor’ owner), Dragoljub Lekic (‘Vitro Group’ General Director) and also the Union of Entrepreneurs of Serbia and Backa Palanka Business Club.

‘They decided to found a movement in order to renew the Serbian economy.’ A ‘Blic’ source close to the mentioned businessmen says. ‘Blic’ had an insight into fact that the founders have already made plans for a change to the economic ambient. The final goal is the simplification of regulations and administration, cutting of taxes on pay and a change in the taxation system.

Placements & Postings appointments@cma.rs

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Diana Dragutinovic, new Vice Governor of the National Bank of Serbia

At the session of the National Bank of Serbia, on September 2nd, at the suggestion of Governor Dejan Soskic, Diana Dragutinovic was elected as Vice Governor of the National Bank. Ms. Dragutinovic is a doctor of Economic Sciences and assistant professor at the Faculty of Economics, University of Belgrade. Ms. Dragutinovic already served as vice governor from 2004 until 2008, and was the Minister of Finance of Serbia from 2008 until 2011.

H.E. Zhang Wanxue, new Ambassador of the People’s Republic of China to Serbia

H.E. Zhang Wanxue (57) was the attaché at the Chinese Embassy in Bulgaria (1976–1982); the Soviet Union and East Europe Directorate at the People’s Republic of China’s Foreign Ministry (1982–1986); Secretary at the Chinese Embassy in Bulgaria (1986–1991); the First Secretary at the Soviet Union and East Europe Directorate, later the East Europe and Central Asia Directorate (1991 – 1995); an advisor at Chinese Embassy in Bulgaria (1995 – 1999); an advisor at the East Europe and Central Asia Directorate (1999 – 2001); Chinese Ambassador to Macedonia (2001 – 2006); Ambassador at the People’s Republic of China’s Foreign Ministry (2006 – 2007); Chinese Ambassador to Bulgaria (2007 – 2010); and subsequently Ambassador at the People’s Republic of China’s Foreign Ministry. Mr Wanxue is married and has a daughter.

Aleksandar Camparević,

new CEO of Delta DMD group

After numerous successful years in FMCG and retail business, Aleksandar Camparević has been promoted to CEO of Delta DMD group.

Building his career, for three years he has been in charge of the retail chain Picadilly in Bulgaria, and then spent almost a year in the head position at Delta Maxi International.

All this valuable experience contributed to his knowledge and ability to cope with the challenges of modern business.

Mr Camparević graduated in economics. He is married and has one child.

Jugoslav Pirić, new Managing Director

Microsoft Serbia

Jugoslav Piric brings more than 18 years of international IT, Sales and Services experience. Hi s tenure at Microsoft started in 1999 when he joined Microsoft WW Notes Compete Center of Excellence – EC3, based out of Toronto, Canada. As member of EC3, he was engaged in a number of Strategic accounts in the U.S. and Europe working on displacing IBM Lotus Notes , followed by over 6 years in Microsoft Canada where he was a part of the Canadian Enterprise services in various roles.

In 2007 Mr. Piric joined the CEE HQ team as Area Business Productivity and Notes Compete Lead, followed by the role of Acting CEE Area STU Lead helping CEE become the top Notes Compete performing area. correction 2

In the July issue of CorD there was an inadvertent error in a report on the electoral Assembly of Serbian Chamber of Commerce held on the 21st July 2011.

The following is the correct information.

The President of the Serbian Chamber of Commerce is Miloš Bugarin. Deputy Chairman is Mr. Dragan Kostic, Managing Director of Free Zone Pirot. The new President of Serbian Chamber of Commerce Assembly is Dr Marko Ćulibrk, managing Director of Belgrade ATEX. New Chairman of the Supervisory Board is Mr. Mirko Stojović, General Manager of FAP Corporation Priboj. Deputy to the President is Mr. Slobodan Lukic, General Manager Prokupac, Belgrade. The new President of the Commission for Financial Affairs is Mr.Milos Nenezic, Advisor to the Director General of PRC Engineering, Belgrade. Deputy President is Mr.Vladimir Malbasic, Managing Director of Metal Tehnik, Sremska Mitrovica.

We apologize to our readers, the Serbian Chamber of Commerce and elected officials. cordeditorial@cma.rs

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86 October 2011 | 39

Business Dialogue

Insurance The world’s first automobile insurance policy was issued in 1897, in Dayton, Ohio, to Gilbert J. Loomis, who purchased a liability insurance policy from the Travelers Insurance Company for one thousand dollars. The policy protected Loomis in the event of his car killing or injuring a person or damaging property.

Interview Andrea Simoncelli, Chairman & CEO, Delta Generali Osiguranje

Lack of Insurance Culture According to Andrea Simoncelli, Chairman & CEO of Delta Generali Osiguranje, the insurance offer in Serbia is large and adequate, but the problem is the lack of insurance culture

“I

nsurance in Serbia is already at a good European standard.

Product specification and coverage are in line with European requirements except in life insurance. The industry is very well controlled, with a good level of competition, but it is possibly overregulated,” says our source at the beginning of the interview.

■ Presently, insurance premium has a very low share in the national GDP – only 1.9%. What trends do you expect to develop by 2015?

- I do not believe that the penetration rate as percentage of GDP will be much higher than it is today due to the present economic situation. 2015 is not too far off; however I am expecting higher growth in Life rather than in Non-Life insurance.

■ To what extent is the economic situation in Serbia going to affect the rather slow development of the insurance sector?

- The industry is firmly linked to the economic development of the country. There is no doubt that the slow growth of GDP translates to slow growth in the insurance market.

The Serbian Government must introduce and implement Solvency II rules.

That measure would certainly close the gap with other European insurance markets 40 |

85 October 86 September 2011 2011| |business www.cordmagazine.com dialogue

■ Do we have the necessary laws and bylaws that would facilitate development of collaboration in the insurance sector, or do we need to substantially adapt our insurance sector to European laws and standards?

- I do not expect a considerable adjustment in the present Serbian insurance regulation to achieve European standards. Undoubtedly, the Serbian Government must introduce and implement Solvency II rules. That measure would certainly close the gap with other European insurance markets.

■ How much does the Serbian Government, through its line ministries, encourage businesses to insure their assets?

- The Serbian Government already does insure state owned companies, and also encourages local industries to protect their assets. Agro business is a good example of government recommendations. We would like the government though to do more regarding property coverage.

This would save public money, as well as provide more private coverage.

■ Serbia holds 66th place in the world when it comes to the share that the insurance premium has in the GDP. Is this ranking a reflection of our citizens’ habits or a shortage of good offers?

- The insurance offering in Serbia is large and adequate.

The question is not a lack of products, but more the lack of an insurance culture. In a country where around 90% of population has a private house, only 2% are protected from fire, theft, or other property accidents. People don’t realize that by spending less than 7 euro’s a month they can protect their asset. This is why our industry, together with the government, should spread more information

Mouse The first commercial use of the mouse was Xerox, which added a mouse to its 8010 Star. Apple’s Mac was the first commercially successful computer to use a mouse.

and know-how about the importance of being insured.

During a bad winter or hot summer, people can lose their savings of 30 – 40 years of hard work, their biggest asset in a matter of moments.

■ In Serbia, there is a big disproportion between the income from vehicle and life insurance compared to that of other types of insurance. In your opinion, what insurance types will have the biggest breakthrough in the upcoming period?

- I do not share the assumption that MTPL and Life insurance are generating a higher profit. MTPL tariffs have been frozen for 3 years ago and with the new bonus-malus tariff introduction we will see a further decrease in premium, which of course will be reflected in profit shrinking. Life has to the current face financial turmoil and the risks are high, this has to be borne by the insurance companies by reducing financial profitability. Having said that, I think that in the near future, property and health will most likely be the fastest growing sectors.

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H.E. Mr. Pekka Orpana,

new Ambassador of Finland to Serbia

The new ambassador presented his Letters of Credentials on the 14th of September, 2011.

Before coming to Serbia, Ambassador Orpana served as Ambassador to Peru from 2007 until 2011. His assignments have also included France, Algeria, United Kingdom, South Africa and the Mission of Finland in the United Nations in New York. During that time he was closely involved in the European integration processes, in the EU membership negotiations with the 12 newest members of the European Union and in building more extensive bilateral relations. Ambassador Orpana graduated with a masters in law from the University of Helsinki.

He is married and has two sons.

H.E. Yossef Levy,

new Ambassador of Israel to Serbia Yossef Levy has worked for The Ministry of Israeli Foreign Affairs for over 15 years. His roles have included being Spokesperson of the Israeli Foreign Ministry for Israeli Media, Deputy Chief of Mission Embassy of Israel in Warsaw, Head of Public Diplomacy Section - Israeli Consulate in Berlin, Charge d’Affaires and Deputy Chief of Mission Embassy of Israel in Belgrade, Political Counselor, Embassy of Israel in Bonn and Deputy Consul General - Israeli Consulate in Berlin. Mr. Levy is the author of 5 books, 3 of which are being turned into movies and achieved a LLB and a BA Cum Laude in History of the Middle East and Arabic at Hebrew University of Jerusalem.

H.E. Roman Waschuk, new Ambassador of Canada to Serbia

The bonus –malus system will probably reduce the average tariff, however it will be a good system if properly implemented ■ What short and long-term changes will the bonus / malus system bring, which is about to be implemented by the National Bank, and how will that reflect onto, let’s say, the automobile market?

- The bonus –malus system, as I said, will probably reduce the average tariff, however it will be a good system if properly implemented.

There is no doubt that risky drivers are going to pay more, and this in turn will be a deterrent for all car drivers. I do not believe the car market will be affected at all.

■ What economy sectors do you see as being potential users of your service?

- There is not just one industrial sector that needs insurance more than any other. Our services are spread throughout the whole economic spectrum. The higher is the risk, the higher is the insurance need. Aviation, energy and oil are definitely the industries in need of more insurance.

■

Roman Waschuk (BA Honours [History], University of Toronto, 1983; MA [History], University of Toronto, 1985) joined the Department of Foreign Affairs and International Trade in 1987. From 2002 to 2007 he served as Political Counsellor and then MinisterCounsellor in Berlin, returning to Ottawa to become the Director in Global Partnerships on Biological Non-Proliferation, Chemical Weapons Destruction and Redirection of Former Weapons Scientists in 2005.

Since 2008, Mr.Waschuk is Director of the department’s Stabilization and Reconstruction Programs Division and Deputy Head of START, the Stabilization and Reconstruction Task Force. He is married to Oksana Smerechuk and they have two children, Anna and Mark.

H.E. Ammar Ben Lamine,

new Ambassador and Plenipotentiary of the Republic of Tunisia to the Republic of Serbia Mr. Lamine was born in Teboursouk (Tunisia) on the 14th September 1961. He attended elementary and secondary school in Teboursouk and graduated from the Faculty of Law and economic and political sciences of Tunis with a degree in economic and political sciences in 1984. He graduated from ‘Ecole nationale des Services Extérieurs du Trésor’ at Noisiel-Paris in 1987, gained a postgraduate from the national school of Administration of Tunis in 1990. In 2011, he obtained a degree from the National Defence Institute of Tunis. Mr. Lamine assumed several positions of responsibility in the Ministry of Finance, before joining the Ministry of Foreign Affairs in 1998. In 2008 he was appointed Secretary General of the Ministry of Foreign Affairs, a position he held until his appointment as Ambassador. Mr. Ammar Ben Lamine speaks French, English and German. He is married and has one son. cordeditorial@cma.rs

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86 October 2011 | 41

Candidates

Business Dialogue

The elections for the Chinese National People’s Representatives Congress, which is underway, there are more than 100 people who have come forward as independent candidates.

Croatian

Montenegro

Brijuni Goes on Tender Brijuni Rivijera, the most ambitious, most expensive, and probably the most controversial tourism project in the Adriatic has finally been realized Such a conclusion can be drawn from the announcement of the international public call for the selection of contractors for the realization of Greenfield tourist projects at four locations on the Brijuni Rivijera in Croatia.

Four of the seven sites, managed by the Brijuni Rivijera company, are owned by the Croatian and Istrian region. The result of the contest will be published in December.

“Investors should be known in

December. The names cannot yet be revealed, but they are world-renowned companies with whom we have contacted so far,” director of Brijuni Rivijera, Veljko Ostojic said.

Overall Brijuni Rivijera should ultimately have around 6,700 beds in the coastal areas and 800 beds on the actual island of Brijuni.

The total value of planned investments is around one billion euro’s.

Bosnia and Herzegovina

Vienna Insurance acquired Jahorina Osiguranje The Vienna Insurance Group AG, Wiener Versicherung Gruppe has signed a contract to acquire a majority stake in the insurer Jahorina Osiguranje AD Pale ( Jahorina) in the Republic of Bosnia - Herzegovina after successfully concluding due diligence After the closing of this transaction, the leading insurance group in Central and Eastern Europe will be represented in 25 markets in the region. The Vienna Insurance Group acquires approximately 88.5 percent of the capital and approximately 92 percent of the voting shares. The acquisition is subject to regulatory approvals.

“Bosnia and Herzegovina is an upcoming market which, after a period of political and Hungary

New jobs in airport Budapest’s Liszt Ferenc Airport is planning some EUR 300 million worth of investments expected to create addition 10,000 although it’s owner is looking to sell theAirport 42 |

86 October 2011

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economic uncertainty, now has great potential to catch up. The long-term prospects point towards a strong increase in demand and thus suggest strong future growth in the insurance sector,” explains Günter Geyer, CEO of the Vienna Insurance Group. “With entry into the Bosnian market, we have expanded the Vienna Insurance Group’s network to 25 countries and have moved into another white spot on our map of Central and Eastern Europe.”

Apart from a €25 million, 200-room hotel, the main focus of Budapest’s Airport development is the cargo segment, as it has huge potential. The first phase of the project could finish as soon as next year and the cost is expected to be around €14 million. Finally, the developer is looking to build new headquarters and an office park for rent.

However, Budapest Airport owner Hochtief plans to divest itself of its airport assets in

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National Carrier Ready for Sale The Government of Montenegro, is doing all the necessary preparations for the privatization of ‘Montenegro Airlines’, following the same strategy as their neighbours in Serbia

There are several interested parties for the Montenegrin carrier, including ‘Turkish Airlines’ (Turkey), ‘El Al’ (Israel) and ‘Etihad’ (United Arab Emirates). However, the strongest interest was shown by ‘Turkish Airlines’, who are looking to expand their business in the Balkans region (they already own 49% of Bosnia’s national carrier). Their strategy is to use local companies to feed their hubs for transatlantic and other long-haul flights.

TA is already flying to Montenegro.

Originally, the Turkish company negotiated with Serbia’s national carrier, but as the deal didn’t happen, they turned to the Montenegrin company.

The Montenegrin Government is looking to prepare the company prior to the start of the privatization process by using a similar strategy as their Serbian neighbours. The aim is to restructure the airline company, increase the profits as much as they can and write off 3.2 million euro’s of debt in order to stabilize the company’s finances. Further similarity is that ‘Montenegro Airlines’ has been granted a loan of almost 10 million euro’s (in the case of JAT it was over 50 million euro’s), to be used to expand their fleet and to repair existent aeroplanes. A part of the money will also be used to “buy” new routes.

Budapest, Athens, Düsseldorf, Hamburg, Sydney and Tirana. France’s Vinci and China’s HNA Group, which runs China’s Hainan Airlines, have both reportedly bid EUR 1.5 billion for the assets.

Back in July it was reported that HNA Group was interested in the perennial lossmaking state airline Malév, but only if it can acquire at least part of Liszt Ferenc Airport, with an eye toward developing cargo services.

Bulgaria

Workday

Workers

20% of the average workday is spent on “crucial” and “important” things, while 80% of the average workday is spent on things that have “little value” or “no value.”

97% of workers, if they became financially independent, would not continue with their current employer or in their current occupation.

Macedonia & Kosovo

LUKoil investing Simplified Border Procedures $25 bn in Bulgaria

Competent institutions from both coun-

tries have agreed that customs and inspection

Russia’s largest private oil firm LUKoil plans to invest $25 billion in oil refining and petrochemistry in the next 10 years “We are developing oil refining both in Russia and abroad. In the next 10 years we will invest about $25 billion in the development of oil refining and petrochemistry,” LUKoil head Vagit Alekperov said in a video posted on LUKoil’s press office blog.

“Also, a contract to build Eastern Europe’s largest hydro cracker is to be signed at the end of September at the

procedures are conducted at the Kosovo side, taking into consideration the better conditions from a technical point of view.

“The agreement obliges both parties to non-discriminatory competition regarding the free access and acceptance of documents originating from international conventions.

The agreement text has been developed in line Minister of Transport and Communications Mile Janakieski and Fehmi Mujota

Macedonia-Kosovo border procedures in railway traffic have been simplified, since they would be carried out at one point on the Kosovo side, in order to reduce the delays Minister of Transport and Communications Mile Janakieski and Kosovo colleague Fehmi Mujota signed the agreement for border regulation of railway traffic

with all European directives and in accordance with treaties that Macedonia is signing with EU member-states,” said Minister Janakieski.

Annual commodity transport between Macedonia and Kosovo amounts to 1,200,000 tonnes, whereas passenger transport has over 80 percent used capacity.

“The agreement is significant for both countries, demonstrating the path our countries should follow towards European integration. It will link Corridors 8 and 10, enabling the accelerated development of both countries from an economic aspect. The Kosovo government plans to realize this project by 2014,” said Kosovo Minister Mujota.

Slovenia

Prime Minister Vladimir Putin and Vagit Alekperov head of LUKoil

LUKoil Neftekhim Plant in Burgas in my presence and, I hope, in the presence of Bulgaria’s prime minister.”

LUKoil, whose output fell 1.7 percent in 2010 to 95.99 million tons of oil, plans to boost hydrocarbon production by 30-40 percent in 10 years, he said.

“We are getting close enough to the top three leaders, who are now playing in the international oil club. So I am sure that in 20 years we will be one of the leading vertically integrated energy companies,” said Alekperov.

The company relies on Russia’s Timano-Pechora region, a mature petroleum province located north of the Ural Mountains near the Barents and Kara seas.

Tourist in a Suit Slovenia is targeting the tourist in a suit. The summer holidays are over and the meetings industry in Slovenia is about to kick into full swing Last month Ljubljana welcomed 1,600 nurses and doctors for two large European conferences, the biggest professional meeting in Slovenia this year. Soon after the picturesque Alpine village of Bovec will play host to the 20th International Conference on Nuclear Energy for New Europe 2011.

“If seen through the statistics of international association meetings, Ljubljana has more registered events right now for 2011 than for all of 2010,’’ congress manager Tatjana Radović of the Ljubljana Convention Bureau said According to the International Congress and Convention Association (ICCA) yearly world ranking of meetings, Slovenia came in 44th place with 44 registered meetings in 2010 – a huge jump over 1999 when only 25 meetings were counted. Regionally, Serbia placed 43rd last year with 46 meetings and Croatia held 40th place with 50 meetings. cordeditorial@cma.rs

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86 October 2011 | 43

corporate

Excise

According to the Serbian Government budget for 2011, cigarettes altogether will contribute 90 billion dinars or 12 percent of the state budget Srđan Lazović, Head of Corporate and Regulatory Affairs, Serbia & Montenegro, British American Tobacco

T

he tobacco industry plays a significant role in the state budget in Serbia, where excise taxes on tobacco products are one of its essential sources of revenue. For instance, in the EU member states the percentage of the respective Government budgets which is collected from cigarettes is less than 2 percent, while in Serbia, this percentage is much higher.

According to the Serbian Government budget for 2011, cigarettes altogether will contribute 90 billion dinars or 12 percent of the state budget.

Therefore, constructive dialogue between tobacco industry and Government is vital for both parties. Bright examples can be found in past practices, which show how comprehensive communication led to impressive results. As a result of this approach, in the past, Government had very impressive results when it came to cigarette revenues - from 10,8 billion dinars just from cigarette excise in 2003, we came to 62 billion in 2010.

More important is the growing share of tobacco taxes within total Government revenues which went from less than 4% in 2003 to, as already stated, projected 12% of the State budget this year.

On the other side, having in mind the importance of excise for the tobacco industry, a predictable excise and tax environment is a key prerequisite for business planning and future investments on this market. Unfortunately,

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be achieved prior to 2030. In addition, the inadequate excise policy which was Serbia does not implement even the adopted last December without consame methodology as the EU, which was structive consultation with the industry adopted in 2010 with the EU Directive brought us to the two main issues we are 2010/12/EU. This methodology defines facing today. Firstly, big price differences a more transparent Weighted Average in comparison with the neighboring EU Price as a new reference point instead of member states led to the huge outflow the Most Popular Price Category concept of cigarettes, especially the cheapest which Serbia still uses in its Excise Law. ones, from Serbia to the EU. This outflow Bearing in mind all the abovecan seriously affect Serbia’s reputation in mentioned, British American Tobacco the EU, which is of particular importance strongly believes that the only systemgiven the Serbian desire to become a atic solution for the current situation is candidate county in the short term. As the new Excise Law to be effective as of an example of this statement, the EuroJanuary 1st 2012. Secure and constantly pean Commission adopted in June an Acgrowing government revenues could be tion Plan to combat cigarette smuggling provided only if the state becomes less along the EU Eastern border. The second dependant from tobacco industry pricimportant aftereffect is the price war ings which can be achieved only through that we are witnessing on the market in a decrease of the proportional and the last few months, in which, besides the tobacco industry, the State is losing part British American Tobacco strongly believes of its revenues as well. that the only systematic solution for the The current cigarette excise policy puts current situation is the new Excise Law to state budget revenues be effective as of January 1st 2012 into a less secure posiincrease of the specific excise element tion. The main reason for that is the very together with the introduction of EU high proportional excise element which aligned methodology, abovementioned is directly linked with cigarette prices. On WAP. Functionality of this approach was top of that, there is a big difference beseen during the economic crises in EU tween the minimum excise tax in Serbia where 13 out of 27 EU member states and in EU. Minimal EU excise is heading implemented this concept in the last two towards 90 EUR per 1000 cigarettes, and a half years in order to protect and which is far above Serbian minimum secure its revenues which are coming excise tax which is slightly below 30 EUR from the cigarettes. per 1000 cigarettes. As a result of that, We strongly believe that, only with Serbia is among the countries with the this approach, Serbia can accelarate its lowest cigarette prices in Europe, which tobacco taxation harmonisation with has resulted, unfortunately, in the abovethe EU, while simultaneously securing its mentioned outflow of cheap Serbian very importaint budget revenue stream cigarettes into the EU. If Serbia continues and, at the same time, starting to tackle with the current pace of its harmonizathe issue of the outflow of cheap cigation with the EU in the area of tobacco rettes to the EU. excise, full EU harmonization can hardly ■

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Interruption The average person gets 1 interruption every 8 minutes, or approximately 7 an hour, or 50-60 per day. The average interruption takes 5 minutes, totaling about 4 hours or 50% of the average workday. 80% of those interruptions are typically rated as “little value” or “no value” creating approximately 3 hours of wasted time per day.

Interview Stojan Čolakov, Director of Energoprojekt Niskogradnja a.d.

Traditionally Reliable Partner The neighbouring countries have either protected or are still protecting their construction companies Apart from constantly battling to maintain the company’s position in the main markets, renewing equipment and keeping the key personnel at the company are the main ideas that have been guiding civil engineer and Director of Energroprojekt Niskogradnja a.d. Stojan Čolakov this millennium, after spending years working on projects in Peru, Bolivia, Argentina, Malaysia, Kenya etc. The key in civil engineering is continuity and not only concluding big deals that require huge investments on a certain market which, once the contract expires, leave you with all this machinery that you don’t know what to do with. “I am focused on having the right balance and reaching the optimum,” Čolakov says.

■ Apart from Serbia, Energoprojekt Niskogradnja is currently operational in Peru, Uganda and Kazakhstan. To what extent did the current economic downturn increase competition on those markets?

- We have managed to achieve continuity in Peru where we currently have two pending projects – one in road infrastructure and one hydro-technical. We’ve been doing work in Peru for almost 40 years.

Peru today is a country in which development has been very strong and wise. Even during the crisis times, the country managed to have an annual growth rate of between 3% and 5%, so big Brazilian, Chilean, Argentinian and lately Spanish companies have stepped up their activities there. The novelty is that the state has begun to provide more protection to domestic construction companies. According to the draft law, which we have read, this protection will even increase with the new government.

■ Kazakhstan was also one of those countries that were not hit by the crisis. Are you facing the same issues in Kazakhstan as in Peru?

- Last year, we finished building two very important subway stations in Kazakhstan, and this is a particularly complex project since we completed it in specific conditions. For ten years, we were very active there, and now, following the new regulation that favours their companies, we cannot bid at tenders that are funded by domestic financial sources. The conditions for foreign companies participating in such tenders have

worsened and 30% of them are now preferentials and that is not the only limitation that we have had to deal with.

■ Is Uganda any different since its economy is not in the same group as Kazakhstan or Peru?

- We have also been operational in Uganda for a very long time, almost three decades. Currently, we have three projects under construction and we have been developing constantly since 2000. At the time of the crisis, the competition became stiffer, but local companies are not so developed and there are no limitations in a sense of domestic companies being given preferential treatment.

■ Many construction companies in Serbia have become very disgruntled because they are not protected against the fact that companies from neighbouring countries have dumping pricing policies.

- The role played by the state, which is bound to pay the loans granted by the international institutions for the implementation of large-scale infrastructure projects, pertains to adjusting specific tender terms applicable to granted loans and to the capacities of domestic companies.

If we analyze the past decade, we can conclude that the neighbouring states used appropriate measures to protect domestic companies in an effort to secure projects for them. As the result of having to carry out a wide scope of work in a relatively short period of time, they were left with the machinery that they still haven’t paid off and high indebtedness. In such circumstances, these companies usually offer very low prices at auctions in order to win over new contracts and being able to pay for the purchased equipment and machinery that was used in earlier projects.

In market conditions, as complex and specific as these, Energoprojekt Niskogradnja has managed to win new contracts and implement them to the satisfaction of investors in the markets where the company is operational.

■

In market conditions, as complex and specific as these, Energoprojekt Niskogradnja has managed to win new contracts and implement them to the satisfaction of investors cordeditorial@cma.rs

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Great Place

Business Dialogue Comment Neil MacDonald, Financial Times

“We want to extend an invitation to the world to take a fresh look at everything we have to offer. Britain today is simply a great place to visit, study and work. A great place to invest and do business.” — David Cameron, British Prime Minister.

It’s (trade) War The sight of roadblocks and razor wire on the evening news naturally makes investors in the Balkans nervous. To take the current example, a tense stand-off in northern Kosovo drags on, with ethnic Serb protestors showing no sign of lifting their blockade around two hotly contested customs gates

B

ut investors in Serbia – the largest market in the former Yugoslavia – are less concerned about the (remote) dangers of renewed inter-ethnic fighting than about the (real) risk of a protracted trade war.

After a brief respite since last Friday, Kosovo is threatening to slap a ban on imports from Serbia again. The embargo, first imposed two months ago, has been costing Serbian companies something in the order of $50m per month, according to the Serbian Chamber of Commerce.

Normally, Serbia exports numerous processed food and other consumer products – including affectionately remembered ex-Yugoslav brands – to Kosovo. The market of nearly 2m people – even with low average income – makes a substantial add-on to the 7.5m people living in Serbia proper.

The head of the Serbian Chamber of Commerce, Milos Bugarin, was unusually blunt in urging the Serbian Government to find an acceptable, pragmatic solution.

The squeeze on Kosovo trade has united the main streams of big business in Serbia: the American Chamber of Commerce, the Foreign Investment Council, and the exclusive Privrednik, a club mainly for the richest local tycoons.

Such groups prefer to avoid overtly political stances. But all of them want to keep goods flowing freely, regardless of how the over-arching Kosovo sovereignty dispute plays out.

“What we need is predictability,” said the FIC’s executive director, Ana Firtel.

Clashes around the contested crossing points at Jarinje and Brnjak in late July left a Kosovo policeman dead, ap-

Kosovo’s supermarkets – which used to stock a higher share of Serbian brands than stores in Belgrade did – have made connections with Croatian, Macedonian, Turkish and Bulgarian suppliers 46 |

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parently shot by a Serb sniper. Two other crossing points, linked directly with ethnic Albanian parts of Kosovo, have remained open all the while, despite escalating restrictions.

Along with Serbian companies, Serbs in Kosovo have suffered. Simpo, a large state-owned furniture chain based in southern Serbia, has closed down its factory in Leposavic, a north Kosovo town, because of customs disruptions, a source at the company said.

The trouble stems from a struggle between Kosovo – whose ethnic Albanian majority declared independence in 2008 – and Serbia (which does not recognise Kosovo’s independence) over which state should exert authority in the mainly Serb north of part of Kosovo. (This is separate from, yet inextricably related to, their over-arching sovereignty dispute.)

The business associations wrote jointly to the EU to press Belgrade to accept Kosovo’s customs stamp. EU mediation brought about the desired deal on September 2nd.

Yet when Kosovo sent out its own, ethnic Albanian officers as observers with allegedly “neutral” EU customs teams Belgrade considered the stamp deal broken. So just as Pristina triumphantly lifted its embargo on Serbia, Serbian police reverted to turning back Kosovo-stamped goods.

Rejection of the stamp was already choking Kosovo’s few viable exporters for three years. But as Krenar Gashi, head of the Kosovar Institute for Policy Research and Development (and a former FT contributor) points out, the economic damage was slight, since Kosovo still makes little to export, even regionally, anyway.

At the same time, Kosovo’s supermarkets – which used to stock a higher share of Serbian brands than stores in Belgrade did – have made connections with Croatian, Macedonian, Turkish and Bulgarian suppliers. Companies from those countries are intent on increasing their market share at Serbia’s expense, Bugarin says.

The opening of a new highway to ports in Albania, meanwhile, offers another import-export route for Kosovo.

■

Switzerland

07

The name of Switzerland used on Swiss stamps is not in any of Switzerland’s four official languages (German, French, Italian, or Romansch), but in Latin (Helvetia).

Banka Intesa Academy

professional moving & transport service

Tied to Euro The first Intesa Academy, organized by Banca Intesa, took place in Belgrade with the keynote speaker being the Nobel Prize laureate and the creator of the euro, Robert Mandel.

Mirko Cvetković (left), Draginja Đurić and Robert Mandel

Over 400 renowned foreign and domestic experts in areas like macro-economy, monetary and fiscal policy, with the reputable global expert Robert Mandel, the Nobel Prize laureate and the creator of the euro - giving the keynote speech, attended a business conference titled ‘Intesa Academia’.

The conference’s slogan was ‘Euro Vision’ and the topics discussed were the future of the euro, the importance of preserving a strong common currency and development trends in the countries of the Eurozone.

Serbian Prime Minister Mirko Cvetković officially opened the first business conference organized by Banca Intesa, while the Chairwoman of Banca Intesa’s Executive Board, Draginja Đurić gave a welcome address.

The famous football referee Pierluigi Collina gave an address about the importance of fast decision making in crisis situations.

“In terms of global challenges, Serbia is facing a tough road ahead,” said Robert Mandel, the head speaker. “The focus should be on growth, stability of the foreign currency exchange rate and FDI influx,” said professor Mandel and added that the best policy would be to have a fixed exchange rate that would ‘tie’ the dinar to euro, providing that the country has a balanced budget and chooses a competitive exchange rate.

Regardless of Serbia becoming an EU or Monetary Union member, the best start would be to have a fixed foreign currency exchange rate “Regardless of Serbia becoming an EU or Monetary Union member, the best start would be to have a fixed foreign currency exchange rate, followed by the implementation of a currency board system with adjustment mechanisms,” Mandel concluded.

Prime Minister Mirko Cvetković said that “both the government and parliament are rounding off their activities apropos Euro-integrations, which practically means that the conditions for obtaining EU candidate status have been met.” “In order to have a sustainable development we need our GDP to grow by around 5% per annum and this is a strategic goal that we have to reach in the following few years,” the Prime Minister outlined.

“Serbia has a lot of challenges ahead. The availability of resources that originate from the EU is now reduced. Stunted growth in the Eurozone represents new challenges for Serbia too since it reduces the availability of capital sources in the EU,” Chairwoman of Banca Intesa’s Executive Board, Draginja Đurić said. She added that the decisions, on which the economic ideas of new Europe and the common currency idea depend on, would affect the future events. cordeditorial@cma.rs

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renaissance

Business Dialogue 01

"Our politicians believe they are capable to do not two, but five times two functions simultaneously. These are all renaissance persons. They don’t bother to project helicopter one day, another day to paint the Mona Lisa, and after that make a draft for a castle..." - Vladimir Goati, director of Transparency Serbia.

02

amazon DiGital liBrary

Book Prices Pressure Publishers

mcDonalD’S

One Billion on Rebranding

The Kindle maker is trying to get book publishers to buy into a book rental service for digital content

McDonald’s Canada plans a sweeping rebrand of its restaurant chain, announcing plans to spend $1 billion on renovating the bulk of its 1,400 restaurants across the country

However, publishers aren’t excited, believing that such a Netflix-like service could lower the value of books and strain relationships with other book retailers. The service would charge customers a fixed monthly fee.

Amazon told publishers that the service would feature older titles. Publishers would also receive a “substantial fee” for participating.

On a related note, the WSJ has a story on how the price of digital books are edging upwards as publishers adopt the “agency pricing” model originally pushed by Apple. Under this model retailers take 30% of each sale as the agent, returning 70% to the publisher.

The model makes it impossible for a retailer such as Amazon to discount the price without a publisher’s approval. (Bloomberg)

That means bringing free and unlimited Wi-Fi access, fireplaces, flat-screen televisions, double-lane drive-thru’s and interior stone and tile accents in a bid to modernize the chain, which has been battling to gain market share against the coffee and doughnut chain Tim Hortons Inc. Any restaurants with the traditional red mansard roofs will be phased out and replaced with a flatter, more contemporary roof. The restaurants will also have the design flexibility to tailor them to local communities and demographics, McDonald’s said.

Inside the restaurant, changes are being made to kitchen layout and new equipment will help facilitate faster service and more customization of ordering and the expansion of menu offerings such as salads, coffee and beverages.

More than half of the company’s restaurants will be redone by the end of this year, with the majority upgraded by the end of 2012. (Reuters)

03

04

comPetition

India to Topple Japan

Hong Kong, Singapore & Tokyo on Top

India might become the world's third largest economy in 2011 by overtaking Japan in terms of gross domestic product (GDP) measured according to the domestic purchasing power of the rupee

India is now the fourth-largest economy behind the US, China and Japan. Numbers from 2010 show that the Japanese economy was worth $4.31 trillion, with India snapping at its heels at $4.06 trillion. But after March’s devastating tsunami and earthquakes, Japan’s economy is widely expected to contract whilst India’s economy will grow between 7% and 8% this fiscal year. “India should overtake Japan in 2011 to become the third-largest economy in the world at purchasing power parity,” said Sunil Sinha, head of research and senior economist at Crisil (www.crisil.com).

The IMF forecasts show India and Japan neck-&-neck in 2011, but the disasters in Japan have brought the event forward. “Were it not for the earthquake and tsunami, India would have overtaken Japan in around 2013-14,” said Sinha.

The purchasing power parity (PPP) method (www.investopedia.com) measures the size of an economy by levelling price differences between countries that occur in the process of conversion to a single currency.

Under this method, a dollar should be able to buy the same amount of goods anywhere in the world and exchange rates should adjust accordingly.

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the moSt attractive BuSineSS locationS

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According to the CBRE’s 2011 report, which compares the office presence of 280 major companies across 101 countries and 232 cities, 17 of the top 30 most popular company office locations are in emerging markets The CBRE report names Hong Kong, Singapore and Tokyo as the most attractive business locations in the world.

CBRE’s research identified Shanghai and Moscow as the most popular business locations across all emerging markets. Shanghai is home to 172 of the companies profiled (61.4 percent), and is closely followed by Moscow, where 170 (60.7 percent) are present. Beijing is the next highest ranked business centre across all emerging markets, with 169 of the 280 companies (60.4 percent) surveyed having an office presence in the city. Other cities in the rapidly expanding BRIC (Brazil, Russia, India, China) markets which rank among the world’s top 30 business locations include Sao Paulo (52.1 percent of companies surveyed have an office in the city), and Mumbai (43.2 percent).

05

faceBook

Revenue to Soar 100 Percent It is the first time eMarketer has projected total revenue for the privately held Facebook. In the past, it only tracked ad revenue and not Facebook ‘credits’, the NY Post reported Much of the projected total - 89 percent - is from advertising, but ‘credits’ are an increasingly important share of Facebook’s revenue. Partners such as Zynga funnel 30 per cent of the money they make selling through Facebook, where all transactions must be conducted in ‘credits’.

Some experts think ‘credits’ will open the floodgates on spending through Facebook, where members can use the virtual currency to buy everything from electronics to clothing.

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06

the moSt larGeSt emPloyeeS

The World’s 10 Largest Employers 1. U.S. Department of Defence 3.2 million employees 2. Chinese Army 2.3 million 3. Walmart - (US supermarket chain) with 2.1 million 4 & 5. McDonald’s 1.7 million and China National Petroleum Corporation 6. Chinese State Grid Corporation (electricity), 1.6 million employees 7 & 8. British National Health Service 1.4 million, sharing its place with Indian Railways 9. China Post Group with 0.9 million 10. Taiwanese Hon Hai Precision Industry (electronic components) 0.8 million employees.

Radio + guns = Prizes

07

An islamist-backed Somalia radio station has awarded assault rifles and hand grenades to the winners of a children’s Koran recital competition. The first prize was an AK-47 and £450. The runner-up received an AK-47 and £320, while the child who came third received two F1 hand grenades and £250. The three children also received religious books.

renewal of London's Tube stations

08

SPAIN

Looking for £100 m Profit

Reinstate Wealth Tax

Ajit Chambers, a former JPMorgan Chase executive, currently chief executive officer of Old London Underground Co, has raised £200 m from investors in a bid to turn unused Tube stations across London into shops and museums

The Spanish Government plans to reintroduce a wealth tax that it scrapped just three years ago as it scrambles for ways to reduce the budget deficit and avoid becoming the next victim in the European sovereign debt crisis

The London mayor’s office revealed that Boris Johnson had discussed the plans with Chambers, with the conclusion that more details would be put forward on potential sites and the level of work required for the renovation plans.

Ajit Chambers revealed that he is aiming for a pre-London 2012 opening for the first site - Brompton Road station, which has been out-of-use for several decades. The renovation plans would see a members’ club opened at the site, with its tunnels and shafts being filled with the artefacts of the London Fire Brigade museum.

Chambers added that a five-year target has been set for opening all the stations, which will each cost between £17 million and £34 million.

On the other side, Transport for London stated they “already looked closely at these proposals and highlighted the huge safety challenges.”

But Chambers claims the plan to redevelop unused sites on what TFL calls the world’s oldest subterranean rail network - into restaurants, museums and shops could bring in more than £300 million.

However, the development first has to secure approval from Boris Johnson.

10

Lloyd's of London

Loss After Disaster Claims The Fukushima tsunami in Japan was one of the events that made the first half of 2011 the most expensive on record

Lloyd’s of London, the world’s largest insurance market, says major catastrophes made the first half of 2011 the most expensive on record.

It saw claims totalling £6.7bn from disasters such as the Japanese tsunami, floods in Australia and the earthquake in New Zealand.

This year already ranks as the second most destructive on record for catastrophe losses after 2005, with the insurance industry as a whole absorbing $70bn in claims, according to Swiss Re, the world’s second biggest reinsurer.

Lloyd’s reported a loss of £697m for the six months to June, against a profit of £628m last year. Despite this, Lloyd’s reported it was in good shape financially, with record central assets of £2.47bn, up from £2.23bn last year.

Lloyd’s said the market was “well-capitalised”. It reported a return on its investments of £548m.

Elena Salgado, Spanish finance minister

Elena Salgado, the finance minister estimated that the tax could yield about 1.08 billion euros in additional revenue from some 160,000 of Spain’s richest taxpayers, those with more than 700,000 euros in declared assets.

In 2007, the last year that the wealth tax was collected, revenue from the wealth tax reached 2.12 billion euros, after more than 900,000 people were charged 0.2 percent to 2.5 percent of their declared assets.

The Spanish Government removed the tax in April 2008, shortly after José Luis Rodríguez Zapatero was re-elected as prime minister. Its reintroduction is likely to be the last legislative measure taken by the Socialist government before a general election on 20th November. Opinion polls indicate that Mariano Rajoy, leader of the main center-right opposition Popular Party, will defeat the Socialist candidate, Alfredo Pérez Rubalcaba, and replace Mr. Zapatero as prime minister.

As it fights to regain the confidence of financial markets, Mr. Zapatero’s government has pledged to lower the budget deficit to 6 percent of gross domestic product this year, from 9.2 percent last year.

09

Online bank fraud

Hacker Sells Home to Pay RBS Viktor Pleshchuk

A Russian hacker who breached the security of Royal Bank of Scotland's WorldPay service and stole £6 million has had his property sold to compensate the bank

Viktor Pleshchuk’s two flats and two cars, a BMW and a Lada, were auctioned off in Saint Petersburg. According to a Russian news portal RIA Novosti, the sale raised 10 million roubles (£200,000). It reported that the money had been transferred to RBS, something the bank was unable to confirm.

Viktor Pleshchuk and seven other Eastern European hackers managed to get their hands on the personal data of thousands of RBS customers in 2008. They used the information to create fake debit cards and withdraw huge amounts of cash from ATMs in as many as 280 cities around the world. The money was taken from 2,100 bank cash machines within 12 hours in the US, Russia, Estonia, Italy, Hong Kong, Japan and Canada.

Once arrested, Mr Pleshchuk pleaded guilty. In 2009, he and the rest of the hackers were also pursued by authorities in the US. In September 2010, Mr Pleshcuk received a six-year suspended sentence and an order to pay £6m in restitution. He managed to avoid jail by pledging to sell his property and compensate the bank for the damage caused.

Brian Krebs, an American journalist specialising in cybercrime and computer security explained that the attackers managed to get into the US-based FIS - Fidelity National Information Services - one of the world’s largest processors of prepaid debit cards. They then planted a remote access “trojan” virus and used the data that they obtained to top up the reloadable prepaid debit cards they had compromised.

After that, they cloned the stolen debit cards, sent copies of them to coconspirators in more than six countries, and raided the bank’s accounts. cordeditorial@cma.rs

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after work

Percentages We retain 10% of what we read. We retain 20% of what we hear. We retain 30% of what we see. We retain 50% of what we hear and see. We retain 70% of what we say. We retain 90% of what we do.

merceDeS-Benz

The first smart Club in Serbia Mercedes-Benz Serbia and Montenegro doo organized on Friday, 9th September at Belgrade’s “Sound” club - smart-Party for fans of the world’s smallest two-seater, promoting the most attractive and least urban vehicles.

The organizer known for its unusual events, Mercedes-Benz S & M Company made an effort to provide its visitors yet another interesting evening. Among the invitees were clients of the popular vehicles and guests from public life.

lafarGe Bfc

Birthday Party

Costin Borc and Duško Vuković, Lafarge BFC

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Lafarge BFC, a leader in the manufacture of cement and a leading supplier to the construction industry in Serbia, celebrated the 172nd birthday of the factory on the 8th of September.

After nine years of successful cooperation with minority shareholders, the Lafarge cement plant in Beocin has become wholly owned.

“We have been present in the Serbian market for almost a decade, during which time we continuously invest in the development of our business by relying on the long tradition of the factory, bringing innovation and successfully overcoming all the challenges,” said Costin Borc, CEO of Lafarge BFC.

Berlusconi

renault niSSan SrBija

Two of the heaviest losers on the Italian stock exchange in recent months have been the key Berlusconi companies, publishing house, Mondadori and TV holding company Mediaset (closing last week at €2.18. At their strongest, in the years 2005 and 2006, the Mediaset shares were worth between nine and €10.

Record-breaking Party On the occasion of breaking the Guinness World Record in the category of longest column of the ‘moving Dacia vehicle’, Dacia organised a big party on Saturday, 17th September for all participants of the record breaking event and fans of Dacia cars. The party led by renowned Dragan Ilic, distributed special awards and the original Guinness ESOL certificate to all participants.

Under the motto “break the record together,” Renault Nissan Serbia organized on the 28th May a gatheringof Dacia owners at Navak Centre, Subotiste with 258 Dacia moving vehicle! The previous record was 152 Dacia vehicles. The advent included a 3.2 mile run without interruption, and the distance between any two cars was no more than two vehicle lengths.

erSte GrouP

The Bee as its Symbol The Bee, which has been the symbol of savings banks in Austria and in Central and Eastern Europe since the 19th century, will be revived to become part of Erste Group’s logo in all the countries where it operates. Following the Management Board’s decision, the new symbol will be rolled out in the autumn of 2012 as the first joint logo for the entire Erste Group.

Andreas Treichl, CEO of Erste Group

knjaz miloŠ

The First 200 Years On the 21st September, the Knjaz Milos Company celebrated the 200 year anniversary of the mineral water Knjaz Milos.

The “Privrednik” club has been specially decorated for the occasion and guests were addressed by Jeff Eugene, President of Investment Company "Salford", Milos Bulgarian, President of the Serbian Chamber of Commerce, Dusan Puača President of the Regional Chamber of Commerce Sumadija & Morava and Mihailo Jankovic, CEO of Knjaz Milos.

Mihailo Janković and Miloš Bugarin

after work

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faces

& places the champion

Following the great victory of Novak Djoković at the U.S. Open ATP tournament, last month, a huge celebration party was organized at Mondrian Hotel, in Soho, New York City, attended by Djoković’s family, closest friends and members of his team, in addition to celebrities and representatives of the Serbian diplomatic corps.

Milka Forcan, Novak Djoković and Desko Nikitović, Consul General of Serbia in Chicago.

cocktail party

The U.S. Ambassador to Belgrade H.E. Mary Warlick hosted an informal cocktail party for her associates and friends in her official residence. On the occasion, Ambassador Warlick met with Serbian Foreign Minister Ivica Dačić, as well as the Director of the Belgrade Philharmonic Orchestra Ivan Tasovac and Danish Ambassador to Serbia H.E. Mette Kjuel Nielsen.

Ambassador of the Netherlands H.E. Laurent Stokvis (left) and the Ambassador of Albania H.E. Shpetim Caushi having a conversation.

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Mary Warlick with the Ambassador of Ghana H.E. Samuel Valis Akyianu and his wife.

THE ACADEMY

Banca Intesa put together its first business conference titled 'Intesa Academia', which assembled renowned national and international experts, macroeconomic, monetary and fiscal leaders, with one of the most reputable financial experts in the world, the creator of euro and the Nobel Prize laureate Professor Robert Mundell chairing the conference. The motto of this year's conference was 'EuroVision' and it covered topics like the future of the European currency, the importance of preserving the euro and development trends in the Eurozone countries. During the conference's break, the Chairwoman of Banca Intesa's Executive Board, Draginja Đurić talked to CEO of MK Group, Miodrag Kostić and Director General of Dallas Company Džemo Šahović.

National Day of Brazil

Apropos the National Day of Brazil, a reception was held at the Brazilian Embassy in Belgrade. The Brazilian Ambassador to Serbia H.E. Alexandre Addor Neto was the host to the Russian Ambassador H.E. Alexander Konuzin, as well as other members of the diplomatic core in Belgrade. Princess Jelisaveta Karađorđević was also present.

faces & places

Polish Army Day

The Polish Army Day was celebrated with a big reception at the Polish Embassy in Belgrade. The Polish Ambassador to Serbia H.E. Andrzej Edward Jasionowski welcomed the ambassadors and military attachés accredited in Belgrade, as well as Serbian Army officials, political officials and public figures.

The reception was also attended by the British Ambassador H.E. Michael Davenport. cordeditorial@cma.rs

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faces

& places MEDICAL DIASPORA

The Second Conference of the Serbian Medical Diaspora has been organized by the Foundation of Her Royal Highness Princess Catherine and the charity organization Lifeline, in collaboration with the Serbian Ministry of Health and Ministry of Religion and Diaspora, the Belgrade Faculty of Medicine, the Serbian Medical Society and the World Health Organization (WHO) in the Hyatt Regency Hotel Belgrade. During the conference’s break, Princess Catherine Karađorđević met with the Serbian Health Minister Dr Zoran Stanković and Mr. Konstantinos Konstanidis from Athens Medical Centre.

77th PEN Congress

The Egyptian delegation at the 77th PEN Congress, which took place in Belgrade from the 12th to 18th September, held a cocktail party at the residence of the Egyptian Ambassador to Serbia H.E. Aly Galal Bassiouny.

On the occasion, the Ambassador welcomed guests and congress participants, including many Serbian artists and public figures.

farewell reception

After his three years of service as the Korean Ambassador to Serbia, H.E. Kim Djonghe had a farewell reception at his residence. Swiss Ambassador to Serbia H.E. Erwin Hofer.

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The Greek Ambassador Dimosthenis Stoidishad (left) in a lively conversation with the Governor of the National Bank of Serbia Dejan Šoškić and Korean Ambassador to Serbia, H.E. Kim Djonghe.

Mexico’s independence day

The 201st anniversary of Mexico’s independence was celebrated at a lavish reception that took place in Belgrade’s Hyatt Regency Hotel. The Mexican Ambassador to Serbia H.E. Mercedes Felicitas Ruiz Zapata welcomed many guests including the U.S. Ambassador H.E. Mary Warlick, the Russian Ambassador H.E. Alexander Konuzin, as well as representatives of the diplomatic core in Belgrade. In addition many Serbian public figures and political officials attended the reception.

ballet school

Milan’s La Scala Theatre Academy has opened a ballet school at the Children Culture Centre in Kozjačka Street 5, Belgrade.

The school was officially opened by the Director of the National Dance Foundation, Aja Jung and the Academy’s Director of Dance Frédéric Olivieri. Italian Ambassador to Serbia H.E. Armando Varicchio welcomed many guests from the world of arts and education, as well as artists from Milan.

Slovakia’s Constitution Day

On the occasion of the celebration of the Republic of Slovakia’s Constitution Day, a reception for the diplomatic core in Belgrade and Serbian political and public figures was held at the Slovakian Embassy in Belgrade. The guests were greeted by the Slovakian Ambassador to Serbia H.E. Jan Varso and the Slovakian military attaché Jozef Vystavel, together with their spouses.

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faces & places

UNDERGROUND WATERS

The Water Institute Jaroslav Černi, which is the leading science & research organization in Serbia in water matters, put together a special international conference on underground waters which took place in Belgrade’s Sava Centre. The renowned national and global experts shared their latest experiences and research results, as well as contemporary methods in the use and protection of underground waters. The conference was chaired by Dr. Milan Dimkić (left), the leading expert of the Jaroslav Černi Institute. The conference was also attended by Education and Science Minister Žarko Obradović.

interview CARMEN CAFFAREl, DIRECTOR GENERAL OF THE CERVANTES INSTITUTE

Quality Becomes Identity demic career during which she lectured Spanish language, literature, audio-visual communications and marketing at King Juan Carlos University. In the period from 2004 to 2007, she was Director of Spanish Radio and Television (RTVE).

In the same period, she instigated many reforms like modernizing technology and transforming this public service into the RTVE corporation.

■ What goals did you set for yourself when you were appointed at the helm of such a successful and renowned institution, as the Cervantes Institute was?

- You are quite right. When I came to the helm of the Cervantes Institute, it had already been a successful institution which made my job easier. The Institute is a so-called ‘public institution’ which promotes Spain abroad, so it carries a diplomatic function too. It is quite normal that when you are appointed to run Director General of all the centres that operate under an institution as successful as this one, the Cervantes Institute, Carmen Caffarel visited the you want to introduce some novelties and changes in order to make it even Cervantes Institute in Belgrade in early September better. And in all of this, my previous job and education were of great help to me, as was the fact that I was a woman,

By Jovana GLIGORIJEVIĆ to gain a degree in the language, on which determined the goals I set before top of a number of various culture-remyself. Maybe it is important to outline n the space of only 20 years, over 78 lated activities. The centre in Belgrade the most important goal and that is my such centres have been opened all was founded in 2004. desire to make the Institute even more around the world. Thanks to a large Carmen Caffarel visited the Belgrade visible, i.e. to have more media exposure number of activities and the so that people can get acquainted constant promotion of Span- Serbia is important, regardless of its with our work even more. Both ish language, the Institute has size, since the demand for Spanish internal and external communicabecome one of the most recogtion has become very important, language and culture here is great nizable symbols of Spain in the so we have introduced something world. Every year, the number called Cervantes TV, which you of people wanting to learn Spanish is centre for the first time since she was apcan watch on our website and broadcasts growing, as does the number of candipointed the Institute’s director. Before clips about our activities and events in all dates that are passing exams in order that, she had a rather impressive acaCervantes centres around the world.

I

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As I have mentioned before, as a woman, it was important to me to present the creative work done by women from Latin America and Spain who are engaged in various disciplines like painting, arts and literature.

■ In Serbia, the Cervantes Institute is one of the most visible institutions of its type, and, yet, the programmes and activities are promoted in an utterly non-aggressive way. Still, everybody has heard of Cervantes and it is the first place a person thinks of when it comes to learning Spanish. How do you manage to have such wide exposure and public presence without using aggressive and intrusive marketing methods?

- Primarily, we have achieved that through building a recognizable identity for the Institute by broadcasting programmes whose main feature is high quality. On the other hand, the Cervantes Institute is a reflection of a modern country that has modern culture. However, the most important thing for the Institute, both in this and other countries, is to establish good collaboration with local institutions. It is important to us that

the Internet. All of this makes the Spanish language a link between 25 countries where it is an official language. That is a formula for success.

■ Serbia is a small country, and the Cervantes Institute here is in category ‘A’, i.e. shoulder to shoulder with the institutes in Paris, New York and London.

What is the Institute’s structure like

■ Bearing in mind that Serbian and Spanish culture are not that close, how do you explain such a big interest in Spanish language and culture?

- In the past, historically speaking, Serbia and Spain have been very distant primarily because of political circumstances which occupied both countries. Serbia

We have introduced something called Cervantes TV, which you can watch on our website and which broadcasts clips about our activities and events in all Cervantes centres around the world cultural and academic institutions are not perceived as something that is above everybody else, but as institutions that cooperate with people and I think that that is the bottom line. Also, if we are talking about our courses and academic curriculum, our methods have always been very advanced and we always try to have the most contemporary methods as possible.

All of this is helpful when you have high quality, good methods and excellent cooperation. In a case such as this, marketing is done through word of mouth.

We are lucky in a sense that the Spanish language has been growing day-by-day, is the second most prevalent language in the world and amongst students, and the third most frequently used language on

of classes which are set up in the cities where these centres are located. Serbia is important, regardless of its size, since the demand for Spanish language and culture here is great. We always listen intently to the needs of the countries where our centres are located and we are trying to meet those needs and adequately respond to them. The Belgrade centre is very important for us.

and what criteria do you use when ranking the centres in other countries?

- Although it does seem that the Cervantes Institute was established ages ago, it’s been only twenty years since its formation. When the first centres were opened, all of them were of category ‘A’, and those that were opened later got category ‘B’, depending on the size of the country, the population etc. In the last few years, the Institute’s policy has been for all centres to be categorized as ‘A’, so there is no difference between them.

The main difference between category ‘A’ and category ‘B’ centres is in the number of employees and the number

had its own specific problems, so did Spain. Although, Spain had been under dictatorship for a very long time, in a quite short period, the country and the society managed to undergo a great transformation that has been recognized all around the world. Today, both countries are open, have many more opportunities and will to connect and get to know each other. On the other hand, if we are talking about the success and popularity of Spanish language and culture in Serbia, we can reiterate that Spanish is a great language spoken by a huge number of people in the world, and Spanish culture is significant which can be seen in a substantial number of artists and writcordeditorial@cma.rs

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ers who take an important place in global and European cultural heritage.

But above all, I would like to single out the fact that Spain has undergone really deep-rooted changes – cultural, political and social. This is what the rest of the world has recognized. During the dictatorship, Spain was a very closed country and today it is completely open.

What everybody finds fascinating is how fast Spanish society has carried out this transformation.

Not much time has passed, and the changes that we have made are very profound and comprehensive. Maybe that is the secret of success.

■ You have been the director of the Spanish public broadcasting service.

The position and the role of such public services are hot topics here in Serbia.

In which way is that area regulated in Spain? What is the legislation regulating the media, the advertising laws, and the tools like that media use to become independent from political and economic influences?

given to the programmes that are broadcasted. At the time when I was appointed the head of the public broadcasting service, an important change occurred – a decision was made by parliament, and not the government, to appoint the director and I am the first person that has been chosen by parliament to perform the duties of director of the Spanish Radio and Television. Up until that moment, my predecessors – the television directors – had to be very careful as to what kind of relations they had with the cabinet members, so that television would continue receiving funds from the budget and public service could continue to run. Today, things are ■ You have not been in Belcompletely different – the Spangrade very long, so it is too ish Radio and Television is a comearly to talk about imprespletely independent from any ausions, but, based on what you thorities in power. have seen so far, what are your In terms of marketing and adimpressions of the work done vertising, we do allow advertising by the Cervantes Institute in on public service television and raBelgrade? dio, but the rules apropos quality - Very positive ones, indeed. The and quality of advertising are very first thing that I have noticed is strict. Of course, privately owned just how easy it is to communitelevision stations have much cate and work with the people more room to advertise, but, nonehere. My impressions are so theless, the advertising laws apwonderful that I can’t ply to everybody, with The most important thing for the Institute, both wait to come again. one exception – not all in this and other countries, is to establish good Of course, this is a stipulations of this law working visit and my pertain to the public collaboration with local institutions thoughts about the broadcasting service and working part of my visit are also posi- That is a very complex issue, and the private television stations. tive. Above all, I am very happy with answer to that question should include Spanish Radio and Television has the team which has an excellent internal the details about the entire history of the undergone a great transformation in a communication and is doing its work Spanish Radio and Television which, sense that, in the past, we had a monopwith a vision and enthusiasm. I can at the time when I was appointed dioly in the truest sense of the word, since see that the Institute’s employees here rector, celebrated its 60th anniversary. this was the only radio and television are satisfied, which is especially nice to One of the main goals that were set station in the country. Following digihear for me, as its director. It is very imbefore me, as the director, was to make talization and technological advanceportant to me to see that the Belgrade the public broadcasting service, i.e. the ments, private televisions arrived. This team has been listening intently to the Spanish Radio and Television, free from enabled the public service to be restrucneeds of the Serbian society, not only in any influence that would serve the intured, and has led to the modernization, the area of cultural activities, but also in terests of somebody else instead of digitalization and everything else that is terms of enrolling in Spanish language Spanish citizens. In fact, and bearing in beneficial when you have healthy comcourses, taking care of students’ needs mind that Spanish citizens, and not the petition. Today, Spanish Radio and Teland the cultural particularities of the sogovernment, pay for this public service evision is a good reference point for all ciety that they are interested in. So, the through their taxes, its need is to serve public service televisions in the world, Belgrade Institute is serving the public the interests of the citizens, and not the since it enjoys a great reputation and and has established a good dialogue government. Hence, budget funds are popularity amongst Spanish citizens with the Serbian society. carefully spent and a lot of attention is which perceive it as their own.

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culture

calendar CONCERTS JEAN MICHEL JARRE Belgrade Arena, 10 October @ 20.00 Revolutionary musician, Jean Michel Jarre will perform in Belgrade Arena on 10 October as part of his world tour “World Tour 2011”. This is the second appearance of this artist in the Arena.

Unforgettable audio visual experience is expected with the perfect merging of amazing stage effects and the latest technology sound and lighting.

Jean Michel Jarre contributed a lot to the musical revolution in the twentieth century and the development of electronic music, based on sounds rather than notes, allowing the composer to become his own master.

His albums “Oxygen”, “Equinoxe”, “Magnetic Fields”, “Zoolook”, “Rendezvous”, “Waiting for Cousteau” sold over 80 million copies.

THE MOST BEAUTIFUL SONGS OF RUSSIA Sava Center, 10 October @ 20.00 Gala concert of “The Most Beautiful Songs of Russia” is held with the support of the Russian Federation embassy in Belgrade two soloists performed well-known brands: ENSEMBLE Sergei Aleksandrov-Putilin and Bolshoi TheatrePetr Glubokij.

Sergei Putilin, golden tenor ensemble Alexander, his angelic voice, charisma and energy that vibrates carrying concealed flashes big Russian soul leave viewers breathless.

Glubokij Petr - People’s artist of Russia. His brilliant career began in 1973 in boljša theater, where he still inspires all art lovers. Music critics consider Glubokog the great Russian bass pleiad: Saljapin, Rejzena, Pirogova, Peter...

THE KUBAN COSSACK CHORUS Sava Center, 20 October @ 20.00 The Kuban Cossack Chorus is the brightest representative of the folk Cossack culture.

It can be likened to a sweeping cavalry onslaught! The Chorus simply bursts out in the spectacular, capturing show in which the powerful energy of masterful, dynamic dances, recklessness of daring Cossack songs and touching sentimentality are combined. This is a veritable theatrical performance. There are at times up to 120 performers on the stage, for the Chorus consists of the vocal group, dance group and the orchestra of folk and wind instruments.

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The motley picture of flamboyant Cossack costumes and properties, such as sabers, daggers, lances, maces, etc. is breathtaking. And no wonder. In one show the audience can see as many as about 840 different costumes. The history of the Kuban Cossack Chorus dates back to October 1811 when the Black Sea Cossack Army founded its Military Choir. The new-born choir differed from other similar choirs mainly in repertoire which was a combination of both religious chants and folk songs as well as pieces written by composers.

BORIS BEREZOVSKY Belgrade Arena, 26 October @ 20.00 Featured pianist, Boris Berezovsky, will perform at the closing gala of this year’s 43rd BEMUS which will be held on 26 October at the Belgrade Arena.

According to British magazine “Gramophone”, Berezovsky has gained a reputation worldwide as the most powerful virtuoso on the piano as a musician and a unique understanding and sensitivity.

Boris Berezovsky has been studied in the hometown of Moscow, the Moscow Conservatory. After its debut in Wigmore Hall in London in 1988, the daily “Times” described it as "very promising."

PAT METHENY GROUP Sava Center, 27 October @ 20.00 Pat Metheny appeared on jazz scene in 1974 in cooperation with the then young, and now legendary vibraphonist Gary Burton.

Through his work Pat Metheny has reaffirmed the traditional sound of jazz guitar, and also redefined the genre by using new Percossa Dom Sindikata, 1 October @ 20.00

Dance, magic, story and beat.

Here the words dont matter but the gestures.

Percossa guide us through the diversity of music. We can hear African rhythms, hypnotic dinginess of the Australian folk music or hot Latin music. No compromises, no breather, no mercy...but an unstoppable roller coaster of hard hits, piercing humour and acrobatic stunts, all bundled up with such theatricality it’s uncanny. Percussion is not the goal of these guys; it is a means to spur the imagination.

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technologies and working on improvisation and the evolution of the sound potential of guitar.

He is also one of the few guitarists who play twelve strings jazz guitar. Pat Metheny is known for playing at forty two strings guitar Picasso. One of the most important jazz guitarist whose work includes compositions for solo guitar, small ensembles, electric and acoustic instruments, large orchestras, ballet and film scores in the range that ranges from modern jazz through rock to classical.

piano, Elegia no.2, Die Zelle in Nonnenwerth, Ligetti – Sonata for cello Jovan Kolundzija’s Creative Master Workshop 19 October @20.00 Jovan Kolundzija, violin, Nada Kolundzija, piano. Program: Bach, Corelli, Vivaldi SADE Belgrade Arena, 30 October @ 20.00

Thanks to sensational media reviews and fantastic audience reactions to the recently completed tour, Sade has announced new performances as part of her world tour beginning this fall.

Her concerts are often described as a two-hour “spell” during which Sade takes his fans on a journey from one hit to another, from the famous poem ‘Smooth Operator’, the blues ballad ‘Jezebel’, to the best songs from her album ‘Soldier of Love’.

With her unique voice colour, Sade has experienced phenomenal success on the international scene during the twentyseven year career.

Since the release of her debut album ‘Diamond Life’ in 1984, Sade released CLASSICAL MUSIC 43rd BEMUS Opening Night, Sava Center, 15 October @20.30 L’Ensemble Orchestral De Paris & Chamber Choir accentus Laurence Equilbey, conductor Mireille Delunsch, soprano & Matthew Brook, baritone.

Program: Berlioz – Tristia and The Death of Cleopatra Belgrade Philharmonic Orchestra Kolarac Foundation Hall, 16 October @20.00 Lara Sen John, violin Gabor Chalog, piano Program: Liszt – Elegija no.1 for cello and piano, La Lugubre Gondla for cello and

five studio albums, all of them reaching the Top 10 on Billboard ‘Top 200 Album Chart’. Since 1984 to date she has sold more than 55 million copies.

Her last studio album “Soldier of Love ‘has achieved remarkable success worldwide and debuted as No. 1 in America for three weeks, it sold more than two and a half million copies and reached Diamond circulation.

In May this year, Sade released album ‘The Ultimate Collection’ which includes her most famous hits, as well as three previously unreleased songs.

The album includes 29 classic compositions, including “The Moon and The Sky” remix with Jay Z. After only a month the album reached platinum twice.

In her long career, Sade and her band won four Grammy awards. The first in 1986 for Best New Artist, 1994 for best R & B performance of “No Ordinary Love”, 2002 for the best album of pop performers and the 2011 for best R&B performance of “Soldier of Love.“ Camerata Serbica 20 October @20.00 Aleksandar Marković, conductor Srdjan Grujić, violin Maja Rajković, piano Szmhonic Orchestra and RTS Mens Choir 22 October @20.00 Franz Liszt Bojan Sunđić, conductor Peter Balko, solists tenor Program: Faust Szmphony St George String Orchestra 23 October @20.00 Robert McDuffie, violin Maria Spengler, violin

news BALLET The Palić Vintage Days 17 September The Vintage Days in Palić are traditionally organized during the third weekend of September. This year the manifestation was held on 17th of September.

Vintage days are organized after ending works in vineyards and orchards and present a colorful parade of vintages and crops.

ART Kuhn, Baruch, to the same human destinations Instituto Cervantes Belgrade, 10 October – 15 November To mark 75 years since the beginning of the Spanish Civil War, the Cervantes Institute in Belgrade is organizing an exhibition devoted to the painters Đorđe Andrejević Kun and Bora Baruh. These Yugoslav painters had a direct connection with the war in Spain - Đorđe Andrejević Kun fought in the International Brigade and the Bora Baruh from Paris organized volunteers in the Civil War, which were expelled from France. The works displayed in this exhibition were selected by Mira Kun, daughter of painter Đorđe Andrejević Kun, and Ljubica Miljković, curator of the National Museum in Belgrade. Đorđe Andrejević Kun (1904-1964) is known for monumental realistic compositions and graphic maps showing where crimes were committed during World War II. Bora Baruh (1911-1942), although a lawyer, painted from childhood that he later studied at the Art School in Paris. In addition to painting, in France, he also engaged in political activism.

He participated in the Spanish Civil War as one of the organizers of International Brigades.

Festival of street performers Novi Sad, 8 September

The Festival of street performers brought together musicians, dancers, actors and circus artists, who together created a magical world in which they draw in both artists and audiences. Over a hundred artists from Serbia and abroad performed this year in the streets of Novi Sad and at eight points set in the heart of the city.

Malabar troops participated in the

The parade is usually followed by a celebration of wine, providing opportunity to taste wines and freshly pressed must, and an exhibition of fruits and vegetables.

Crushed grapes are pressed and an exhibition of fruit and vegetables is organized. Along the promenade there is a bazaar of handcrafts and a fair of honey, medicinal herbs and fruit.

National Theatre Backstage r 17 September

The National Theatre in Belgrade organized two tours of their backstage premised on 17th September. Guided tours started at 11:00am and 13:00 gave public rare opportunity to be taken to different parts of the theatre and see what is normally off limits to the public.

European Heritage Days 17 – 25 September European Heritage Days is an international event with a long tradition that aims to give the citizens an opportunity to visit places of national importance and value that are unreachable to them during the year.

As a part of a major European event, always held in September, it has a goal to promote common European values that are contained in these monuments. Citizens, guests and visitors are able to visit the city buildings, houses under the state protection, museums and Rebellion and Passion Dom Omladine 23-25 September

This is a showcase of French films of the newer production that cover topics of rebellion and passion, ranging from the political to the most intimate.

This event offered audience a chance to get acquainted with the new directors of French cinematography, as well as the actors of the new generation. All of the films have been shown at numerous and prestige festivals around the world, from Cannes to Toronto.

Event was organized by Dom Omladine in cooperation with the TV 5 Monde and French Institute in Belgrade. other cultural institutions. During the event, tours of city landmarks, monuments and protected areas are getting organized so it is always a great opportunity to promote Belgrade as a bridge between the past, present and future.

Everything is worth visiting.

parade opening ceremony, which run from Petrovaradin bridge to City Hall and the Freedom Square. For 25 years Malabar Troup realized projects that bring together European circus artists, acrobats, actors, musicians. Featuring imaginative scenes on the streets, Malabar brings constant movement in urban plays in which priority is given to interaction with the audience.

culture

Young Ballet Theatre Scala Sava Center, 1 October @ 20.00 Belgrade Dance Festival, the National Foundation for Dance and Theatre Academy Scala, in cooperation with the Italian Institute of Culture and the Sava Center present youngest ballet stars from renowned Scala Theatre Academy.

The program includes the most important choreographers of the twentieth and twentyfirst century, Georges Balanšina, Jiri Killian, William Forsythe and Angelin Preljocaj.

Proceeds from the tickets goes for education of exceptional ballet talents in Serbia.

Museum of History, Serbian Orthodox church museum, Ethnographic museum, Natural history museum, Belgrade city library, Serbian National Library, Archives, Jevrem Grujic home, memorial museums of Jovan Cvijic, Ivo Andric, Princess Ljubica’s residence. But also National assembly, Old and new Royal palace, French embassy building and National bank of Serbia, Belgrade fortress, Zemun old town, Botanical garden etc.

Belgrade Flower Festival 24 - 25 September First edition of Belgrade flowers festival was held on 24th and 25th of September 2011 in the Park Manjež.

Belgrade Flower Festival is a multimedia and multidisciplinary manifestation that animates and gathers a wide range of population in Belgrade and its environment.

The Festival indicates and initiates “the opening” and usage of park and garden spaces through promotion of its content, history and development solutions. This is the event which gathers in one place, all those who are directly or indirectly involved or inspired by topics such as nature and flowers, ecology end protection of environment.

Researchers Night Instituto Cervantes, 23 September Geneticists, chemists, biologists, psychologists, physicists have proven to us that the research can be quite entertaining.

Scientists gave us opportunity to pass through all stages of the experiments while walking through Knez Mihailova Street this September.

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77th Congress of PEN International

INTERVIEW: VIDA OGNJENOVIĆ, CHAIRWOMAN OF THE SERBIAN CHAPTER OF THE PEN CENTRE

Books as Universal Communication “Literature is a kind of linguistic treasure. This gathering is supposed to remove ourselves from this excessively vociferated atmosphere, at least a little, and serves to remind ourselves that there is a very complex and rich world of literature for which Facebook certainly cannot be a worthy replacement“ Vida Ognjenović (2nd left) with the guests of the Congress

By Sonja ĆIRIĆ

T

his September, the Serbian chapter of PEN Centre hosted the 77th Congress of the International PEN. This was the first ever PEN congress that was held in Serbia and it was the reason why we asked Mrs. Vida Ognjenović, Chairwoman of the Serbian chapter of the PEN Centre, renowned writer and professor, and current Serbian Ambassador to Denmark, for an interview.

■ Why was Belgrade chosen to host this year’s congress?

- We applied to host the congress several years ago, carried out the required preparation and got ourselves qualified with really good working ideas. Our biennial regional congress, which was solely about literary subjects, has been given a great deal of support from the participants and was a successful testimony to our PEN Centre being a serious organization. Last year, at the congress in Japan, our presentation received a standing ovation and our candidacy bid was unanimously accepted. So, for the first time in history, Belgrade became the host of the International PEN Centre congress.

■ Considering the theme of this year’s PEN Centre’s congress, the writers were advocating ‘global language’. How do you interpret that metaphor?

- The slogan – Literature as the language of the world – is a metaphor that we used to underline the need for universal communication, and literature does have the power to establish this communication by provoking the readers’ curiosity 62 |

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around the planet. After all, the exchange of literary work is much bigger than we can assume at first glance, which is quite understandable since there isn’t a writer who doesn’t want to be widely recognized. Writers from Brazil, New Zealand, Japan, China, Israel, and Egypt to North Norway all took part in the congress. Many of them have came to promote their books in Serbian language. The slogan is metaphorical support for that exchange.

■ How can we preserve so-called ’small languages’ in this era of globalization?

- We can preserve them by, first of all, having expert codification, and through literature. As we all know too well, language is a live activity, susceptible to various influences and changes brought on by different circumstances. Literature is a kind of linguistic treasure. This gathering is supposed to remove ourselves from this excessively vociferated atmosphere, at least a little, and serves to remind ourselves that there is a very complex and rich world of literature for which Facebook certainly cannot be a worthy replacement.

■ The Chairman of PEN International, Mr. John Ralston Saul, underlined the intention of this congress, which was to concordant to that of PEN International, i.e. to establish regional reconciliation and collaboration. What is the main tool that writers can use in reaching this goal?

- That’s right... Several direct steps in that direction were made at the congress. The main tool that the writers can use, as you’ve mentioned, is to establish better connections amongst

themselves and have livelier literary cooperation, regardless of political limitations and differences. Translating books and presenting authors in diverse environments enable the free circulation and mutual verification of new ideas, which is very important for any artistic venue, primarily literature, which is based on a mythical superstructure of life assumptions.

■ The Belgrade congress, and the general activities of the Serbian PEN Centre, just prove that the proponents on the nationality-based cultures are losing their following and that their ideas are both short-lived and short range. Could you comment on that please?

- Yes, PEN is an international organization that connects writers from different nations, bringing them together into a wide literary nation, so to speak, based on a wealth of differences from racial, national and traditional to political and linguistic.

All of them are united by literature, as a joint work platform, and by the effect they have on the world.

comprehensive communication than politics. Sometimes, even culture is not aware of this fact and is often unnecessarily tuned to a political tone which is something I strongly object to.

■ How much has your diplomatic activity helped with brining great writers to this year’s congress in Belgrade?

- I think that the activities carried out by my colleagues and I, in PEN, contributed the most. We have always attended international gatherings on a regular basis, not only as passive observers, but as debate participants and proponents of change.

By doing so, we have won over the trust of our colleagues in terms of both the regional conference and the congress at large.

■ Are you under the impression that, every day, culture is overpowering the attitude that we can live without it, i.e. that culture is not in a position to affect current affairs?

- If we look at what is happening around us, sometimes we get overwhelmed with a fear for the public being so swamped in ‘fast-food’ culture, superficial and ■ Bearing in mind that you Language is a live activity, susceptible loud entertainment and a patchwork of pornography - in one have been promoting culture alto various influences and changes word, pseudo-culture. We are most all of your life, how would you describe the reactions of brought on by different circumstances under the impression that there isn’t a tiny bit of usurped space your colleagues to culture in available for culture. But, that is not true. If we take a closer look, today’s Serbia compared to a decade or two ago? How much we will see that all this noise and so-called entertainment are does the political situation affect the image of our culture? very fleeting, and the real things are those that have managed - Things have substantially changed. A decade and a half ago, to maintain their dignity and to stay afloat in this sea of deciduPEN’s congress in Belgrade was a bold move, and, according to ous noise and false success. This is a difficult road that we have many, a wayward desire of a few of us, the tireless fast walkers. taken, full of temptation, conflict, misunderstanding and lone If our walk had been slow and reserved, we would still be a very voices. However, long way from the crossroad. In many aspects, even the Leipzig its influence is Book Fair became a very visible milestone. Yes, political situamuch stronger tions do affect culture. In Milošević’s Serbia we could not have and more permahad a PEN congress, regardless of the fact that, if it happened, nent. This is provit would be organized by the opposition. But allow me to outen to be true.

■ line a very important thing – culture provides much deeper and

Just Like the Olympics

B

elgrade was selected to be the host of the 77th Congress of PEN International in a year when the organization’s Serbian chapter is celebrating its 85th and PEN Internationals 90th anniversary.

The Belgrade congress, of the biggest global association of writers, lasted for seven days, with 250 writers and interpreters and 88 representatives of international PEN centres from over one hundred countries in attendance including Konrad Gyorgy, Andrei Bitov, Christopher Hope Ana Blandiana, Drago Jančar, Alek Popov, Adrienne Clarkson, Amir Or, Baraka Ekbai, Hossam Nassar, Titos Patrikios, Anastasis Vistonitis, Mohamed Salmawy, Dimitar Baševski, Alexey Slapovskiy, Wang Juaxin, Dionis Siotis, Dario Fo and David Grossman, to name just a few. The slogan of the congress was ’Literature as the language of the world’, which was also the guiding idea for debates about the current affairs that affect not only the status of today’s writers and literature, but also the freedom of public speech and freedom in general, i.e. world peace. Hence, a manifesto called ’Geronimo’ was

77th Congress of PEN International - opening ceremony written with the aim of preserving and protecting small languages of the world. The manifesto also advocates that the nationalities, which use these small languages, should have freedom of speech. Additionally, regional writers have reached an agreement about facilitating a better exchange between writers and of books, more translation work and opening a library with books translated into Balkan languages. According to the Chairman of PEN International, John Ralston Saul, “the fact that this gathering is taking place here is an important act of reconciliation in the region and a great message to the whole world that the people, who have survived horrific things and had everything turned against them, found a way to be together. That wasn’t easy since, even today, there are even parts of the world that haven’t managed to do that“.

Apart from the aforementioned results, the Belgrade congress will be remembered for many important resolutions about freedom of speech. For instance, the congress adopted the resolution on the situation in Mexico which, as it was noted, is one of the most dangerous places in the

world for writers and journalists. The Mexican authorities were petitioned to urgently make concrete steps in order to provide proper protection to both writers and journalists.

The hosts put together a really busy and diverse unofficial programme. One of the programme segments was an international festival called ’Free the World’, which took place at the same time as the working part of the Congress, and which was a travelling show of the written word which turned Belgrade, Novi Sad and Niš into cities of writers and books, since the guests from all over the world and Serbia read excerpts from their books.

The impressions of the congress participants were very positive, judging by their statements. To illustrate this point, we would like to single a out a widely quoted statement by Andrey Bitov: “To host the world PEN congress is the same as hosting the Olympics.“

cordeditorial@cma.rs

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sport SPORT'S SUPERPOWER

the Country’s Brand

In regard to sports, a long time ago Serbia became a ‘member’ of the European and world elite on its own accord whilst defying the laws of logic

By Vladimir StANKOVIĆ

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hile Serbian politicians are doing everything in their power to try to get the European Union to give us the date of the beginning of negotiations about (possible) accession to the EU, and with Croatia becoming the 28th EU country, Serbian athletes have made it to both the European and world summit in many sporting disciplines, without needing anybody’s permission to get to there. They pushed themselves forward with their skill and results. The success of Serbian athletes was usually an antithesis to the country’s economy and overall reputation, investment made in sports and the conditions under which the athletes had been training and playing. Truth be told, it seems that Serbian sport has never been in better order, had as much money or better organization and that should be credited to the Ministry of Sports, the Sports Federation and the Olympic Committee. However, that is just an improvement on previous years which is still not sufficient compared to other more developed countries where 64 |

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Serbian athletes are competing and winning. Sport is still the unexplained phenomenon in Serbia since the results are ‘out of step’ with the conditions under which they are accomplished. Yes, ten or so football stadiums in the country are being renovated, a modern sports centre in Stara Pazova has been built with the help of FIFA and UEFA, several other sports halls are being reconstructed, as have some swimming pools etc. Today, Serbia has 54 athletes that are definitely going to the 2012 Olympics in London and it is highly likely that this number will exceed 100. In many sporting disciplines, the best results and getting to the top are usually out of balance with the conditions under which they are accomplished and thus sport has become Serbia’s most formidable export brand.

In the last few weeks, and pretty much throughout the summer, Serbian athletes have accomplished to achieve following notable results: - The national volleyball team became European champions by winning all their games at the championship, beating Russia in the semi-finals (3-2) and Italy in the finals (3-1).

- At the European rowing championship in Plovdiv in late September, Serbian rowers had a very successful run, winning four medals. Iva Obradović and Ivana Filipović took second place in the double scull, Marko Marjanović and Dušan Bogićević also won second

place and the Crystal Globe in the discipline of MK pistol.

- At the same competition, Nemanja Mirosavljev won third place in the discipline MK rifle 3 x 40 match.

- The national 17 and under basketball team was second at the World Championship in Riga.

Today, the Serbian Volleyball Federation is organized just like the basketball federation of the past – the people who are at the organization’s helm are the right people for the job place in the men’s double scull, Nikola Stojić and Jovan Popović were third in pairs, just like Miloš Tomić, Miloš Stanojević, Nenad Babović and Nemanja Nešić in light-weight-four-oars.

- At the US Open, Novak Đoković won his third Grand Slam this year by beating Roger Federer and Rafael Nadal in the semi-finals and finals respectively, as well as Janko Tipsarević, who is now in 13th place on the ATP list.

Viktor Troicki is in the 16th place.

- The national women’s volleyball team participated for the first time ever at the Grand Prix (the women’s version of the World League) and won third place by beating the world champions – Russia – twice. The European Championship, organized jointly by Serbia and Italy, is pending, and winning medals is no longer a dream but reality.

- The national junior water polo team won the world champion title by beating Spain in the finals 9-6 in Volos (Greece). In 1989, the then Yugoslavia’s national team won the same title, as did the national team of Serbia and Montenegro in 2003 and 2005. This is the first such title for Serbia as an independent country.

- In late August, the national cadet volleyball team took the world champion title in Argentina for the second consecutive time.

- At the World Championship in Brazil, the national junior volleyball team won a bronze medal.

- At the World Cup in shooting, which took place in Wroclav at the end of September, Andrija Zlatić won first

- The national junior basketball team was also second at the European Championship in Poland.

- The players of Partizan handball club managed to join the Championship League by beating AEK (2625) and Porto (33-26). They are now about to ‘battle’ some of the greatest European handball clubs like Kiel, Montpellier, Copenhagen and PIK Szeged.

- At the World Rowing Championship in Bled, our coxless pair Nikola Stojić and Jovan Popović and coxless four Miloš Vasić, Radoje Đerić, Miljan Vuković and Goran Jagar all achieved Olympic norms.

- At the World Championship in athletics in South Korea, the young decathlon competitor Mihail Dudaš took 6th place and broke the Serbian record. Also, his results in all 10 disciplines broke either his personal records or the season’s records. This young fellow has a great future ahead of him.

- Dragana Tomašević was 7th in discus (throwing 62.48 m), Biljana Topić was 10th in triple jump (14.03 m), Asmir Kolašinac 11th in shot put (19.84 m), while Emir Bekrić made it to the semi-finals in the 400 metre hurdles - earlier, at the Universiade in Shenzhen, he set a Serbian record of 49.55 seconds. cordeditorial@cma.rs

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Today, Aleksandar Boričić is one of the most reputable and influential Serbian officials in international sport organizations. He has been Vice President of the European Volleyball Federation for a long time, and recently, at the Vienna congress, he was re-appointed to that position by getting 48 out of 51 delegate votes. This means that he is about to become head of European volleyball. Owing to Boričić, Serbia, together with Italy, has organized the last two European Championships – the men’s European Championship in 2005 and, this year, the women’s championship. Aleksandar Boričić is also one of the 15 members of the Executive Committee of the International Volleyball Federation.

Today, the Serbian Volleyball Federation is organized just like the basketball federation of the past – the people who are at the organization’s helm are the right people for the job, they have influence in the international federation, they are good at working with young people, they have a vision for the future, they are willing to provide additional training for experts and know how to market volleyball. The volleyball federation is competent in another sense – the women’s national team has also been very successful and it has won medals at the world and European championships, as well as at the Grand Prix. So, it would come as no surprise if the women’s team brought back medals, just like their male counterparts.

Zoran Gajić, the national volleyball team trainer, who was instrumental in raising Serbian volleyball from the Serbian athletes have made it to both the European ‘ashes’ and helping it all the and world summit in many sporting disciplines, way to the top, coached our team to become the number without needing anybody’s permission to get to there one at the Olympic Games in Sydney, points to several crucial moments in the development of Serbian volleyball: of the Volleyball Federation at the worst time – Serbia was - Raising our volleyball clubs to a higher professionunder economic sanctions, isolated and removed from all al level in the mid-1980s, first in the Vojvodina volleysport events. After this three-year-period, which was one ball club, and later in clubs like Red Star and Partizan. of the worst in the country’s sporting history, Serbia manBefore that, players trained while working or studying aged to participate at the 1995 European Championship at the same time. in Athens, at which it won a bronze medal. A year later, - Applying the world level of training methodology at the Olympic Games in Atlanta, our national team alin line with the most up-to-date training formats. so won third place, with the pinnacle reached in 2000, - Continuous good results – from 1995 to 2002, sevwhen they won a gold medal at the Olympics in Sydney en medals were won at seven competitions. and first place at the European Championship in Ostrava - Coaches constantly perfecting their training skills. (the Czech Republic) in 2001. Ten years later, Serbia is - Players playing abroad, in very strong volleyball again at the European throne, while not being too much leagues where they improved their talent. away from it all these years – our national team has won - Great enthusiasm and patriotism instilled in playa string of medals at the European and world championing for their country. ships, as well as in the World League.

- Our basketball and water polo players took first place at the Universiade in China.

- The national junior football team played at the semi-finals of the European Championship in Romania.

The volleyball players have added one more success to a string of recent achievements - they were sent off to the European Championship in Austria and the Czech Republic without fanfares, with modest expectations, while you could count the number of journalists that saw them off on one hand (unlike the 20 or so journalists that accompanied our basketball team to the Championship in Lithuania) and the volleyball team came back with a gold medal. There was a certain dosage of pessimism present due to the fact that the trainer of our national team Igor Kolaković replaced many of the ‘old’ national team players with new ones, keeping only the team captain Ivan Miljković (age 32), out of the older players, in the team. Before winning the gold medal as a senior, the youngest player, Uroš Kovačević (age 18) won his own world title at the cadet’s championship and a bronze medal at junior championship. The gold medal in volleyball is the crowning achievement of the work done by the Serbian Volleyball Federation which has been managed by Aleksandar Boričić (age 63) from 1992 onwards. Boričić is a former player of the Red Star volleyball team, former national team member (103 times) and belongs to the generation who won the first medal (bronze) for our volleyball at the 1975 European Championship in Belgrade. Boričić came to the helm

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On top of that, there is great marketing provided

by TV stations and the press. “I live and work in Spain, and I know for a fact that there is no force in this world that would make TV Espagna headline the 9 o’clock news with information that the Spanish volleyball players became the European champions (which they did). In Spain, sport events are reported about in order of importance – first, the football, followed by football and more football, then car and motorcycle racing, maybe cycling and then everything else, including basketball - they won the European championship two consecutive times, are getting broadcast time ‘by merit’, i.e. if they manage to achieve an exceptionally great result. Pushing football off the front pages of newspapers, even where there is nothing interesting happening in football, is almost mission impossible.“ - Gajić said.

And this is where Serbia is different. Our national television has a very good attitude when it comes to broadcasting games played by our national teams, and our newspapers spare no pages to report about the successes of our water polo, volley ball and tennis players, i.e. any athlete that makes our nation proud, and is deserving of appearing on the Belgrade Assembly balcony whilst being greeted by thousands of people. Thanks to these sports stars, a nicer and better Serbia is being shown to the world. The treatment that so-called ‘little sports’ get has led to children aspiring to become like Đoković, Filipović, Vujasinović, Grbić and Miljković, as well as Bodiroga, Đorđević and Divac of the past. Tennis, water polo, basketball, handball and volleyball have all been recruiting a slew of potential sport stars after every success they had. Sport halls and swimming pools are becoming too small to take every single child who wants to play. This is a natural process in the regeneration of sport. The state, through its sport federations and clubs, is providing the basic conditions, but it is the parents and devoted coaches that are doing all the rest, i.e. teaching little boys and girls about the biggest secrets and skills of the sports they have chosen to play. Serbian sport relies on the formula - ‘state-parents-enthusiasts’. In most cases, the load is

not equally distributed amongst the three, but the only thing that counts is the result, which is the fruit of working together on developing what is probably a genetic talent for sports, especially ball games, even if the ball is as small as tennis one.

Mexican Ruben Acosta, should be credited for volleyball exploding in our country and abroad. Acosta was the President of the International Volleyball Federation for 25 years and has practically been the boss of world volleyball. He has been accused of being a dictator, but the people who attacked him the most had to eventually admit that he turned a new page in world volleyball. He should be merited with changing the existing game rules, and instead of having the boring serve rotations, which made the game and its length unpredictable, and, in turn, agitated TV stations, which did not dare to broadcast volleyball games for not knowing how long would they last, Acosta made the rule that every ball in the game would bring a point. Also, as a form of compensation, game points were increased from 15 to 25, but sets have become shorter.

The term ‘net’ was abolished, so if a player touch-

Thanks to Serbia’s sports stars, a nicer and better Serbia is being shown to the world es the net in order to put the ball to the opponent’s half, the game would continue as usual. Also, playing with legs is now allowed. The rules, put forward by the World League, stipulate guaranteed TV broadcasts, and the national federations that are participating in championships need to bring at least one journalist with them. Beach volley has had unprecedented media coverage, and it even became an Olympic sport. In the last few years, volleyball has enjoyed unimaginable media exposure, and our volleyball federation has recognized that. If you visit its official website, you will be able to see for yourself the good work that the Federation has been doing and conclude that the accomplished results are no accident.

■ cordeditorial@cma.rs

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travel SIX OF THE BEST AUTUMN BEAUTY BREAKS

Cool But NOt COLD

A

ll the countries on the following pages are alike, with harsh winters, ski resorts, open spaces, magnificent scenery and snow. On the other hand, when the mercury is above zero, they each offer tourists a very special experience. If you are a fan of spectacular landscapes, great shopping, adventure sports, spas and culture then these countries in Northern Europe are amazing places to spend some of your well-earned holiday time, and are also great places for children. We do not recommend long-stays at these destinations for two reasons: they get bitterly cold and are quite expensive. However, if you like to be somewhere “cool”, but not cold, then plan a short break to any of our following recommendations.

6/6 Finland www.finska.co.rs The home of Father Christmas has much more to offer than reindeers and snow.

Finland is not known for its cultural variety and neither should it, with perhaps the exception of Helsinki. When travelling to Finland you should be prepared to be either very relaxed or very active, you would hardly visit the land of former F1 Champion Mika Häkkinen, bad boy and former F1 Champion Kimi Räikkönen and Father Christmas without expecting some action or ‘relaxtion’!

During autumn Finland is a great destination for activities like hiking, camping and biking. For the more daring amongst you there are some of the best motorsport courses in the world, Finns are renowned for their driving talent, and there are plenty of water sports on offer – Finland boasts 188,000 lakes.

After all the physical pursuits there is only one way to relax in Finland – a sauna. Saunas in Finland are treated with an almost religious reverence.

Finland is for the fit, fun-loving and free spirited.

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5/6 Sweden www.swedenabroad.com On the official Swedish tourist website, the Swedes themselves describe their capital city, Stockholm, as ‘cool’. And ‘cool’ it is, with average winter temperatures hovering around 0 °C and the nickname of ‘Venice of the north’, Stockholm is a city of culture and Scandinavian style.

A big plus for Stockholm is the fact that nearly everything you could want to see or do is within walking distance and with the weather far more forgiving in autumn it is the ideal time to take in the interesting sites to visit - parks, museums, and the general vibrancy of the city.

Stockholm is 700 years old and as such is full of historic treasures including three sites which are listed on UNESCO’s World Heritage List: the stunning Skogskyrkogården (the Woodland Cemetery); Drottningholm Palace, referred to as the ‘Versailles of the North’ and home of the Swedish Royal family; and the remains of the Viking settlement, Birka on Björkö island in Lake Mälaren. If all of the above hasn’t enticed you enough and you happen to be male, single and... need I say more? Yes? Well, Sweden is the third largest country in Western Europe so you won’t have the obligations of a family man and will be able to experience more of Stockholm....’s blonde bombshells.

4/6 Norway www.visitnorway.com Norway is one of the rare countries in the world where it is a struggle to find a place that is neither beautiful nor interesting. From Oslo in the south, to Trondheim in the north, to the vast wilds in the remote far north, Norway has stunningly beautiful scenery like London has taxis. Of course beauty is a cruel mistress and she will do her best to extract every last Kroner from your wallet, even in regions as remote as Kamsvåg. Although Norway has some of the highest prices anywhere on earth, you get what you pay for.

To name one thing to experience whilst visiting Norway is near impossible. Oslo alone can entertain for weeks on end with sights and locations such as the Royal Palace, Aker Brygge wharf, Kvadraturen, the Emanuel Vigeland Museum and Linderud Manor to name but a very few of its myriad of attractions. Venture beyond the vibrancy of Oslo and experience Norway’s famous fjords, northern lights, canoeing, riding, sailing and many more tourist attractions. Remember to pack a little bit of energy and a whole lot of cash.

CorD extends its condolences to the whole of Norway and its citizens following the tragedy in July. cordeditorial@cma.rs

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3/6 Switzerland www.myswitzerland.com Chocolate and watches for the ladies, watches and banks for the men, penknives and chocolate for the children, and mountains and cheese for the whole family. Switzerland, although small, has something on offer for anyone who enjoys class, money, culture, and of course shopping.

The Swiss are famous for their love of skiing, and why would they not be when they have the beautiful Alps at their disposal. In fact, it would be unusual if they weren’t, but then again Jamaicans aren’t exactly known for their talented swimmers.

Moving on however, when the snow recedes for a few months of the year, the Swiss, and tourists alike, enjoy the magnificent hiking trails, historical monuments, lakes and museums.

Remember to take a credit card.

Swiss people do not generally baulk at the high prices - in 2010 Switzerland had the highest average wealth per adult followed by Norway.

2/6 Austria www.austria.info The Sound of Music and Mozart are usually the first thoughts when Austria comes to mind, but with remarkable alpine landscapes, tranquil lakes and a wealth of charming towns to explore, a holiday in Austria is far more than that. If you are an enthusiastic hiker, visit Hohe Tauern, If that sounds too much like hard work, and you are simply looking for a cultural family holiday, take a trip to Graz complete with delightful shops and cafes, or the mountains of Vorarlberg, or perhaps Vienna, the 4th “UN City”.

The cultural attractions in Austria are extremely impressive taking into account the size of both the population and territory. Vienna alone offers a blend of tradition and stunning modern architecture. It is famous for its cultural events, imperial sights, coffee houses, wine taverns, and Viennese charm. Salzburg and the Theresa Wellness Hotel in Ziller Valley, the ‘world’s most active valley’, are well worth a visit, as are Austria’s hidden gems such as the Alpbach valley in Tirol and the stunning Burgenland.

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1/6 Iceland www.icetourist.is The relatively recent volcanic explosions at Eyjafjallajökull and Grímsvötn, try saying those names with a mouth full, should not put you off visiting the small, yet majestic north European island. Iceland is oddly greener than Greenland, and the weather is quite comfortable until October when it takes a turn towards the extreme. The break in the harsh climate conditions provides a chance to enjoy some horse-riding, hunting, fishing, kayaking, scuba-diving and even a round of golf.

For the less active there are some lovely boutique shops in the capital city Reykjavík, and plenty of restaurants and bars to sample and enjoy. Iceland has also become somewhat of a tourist hotspot after the global economic crisis – prices have plummeted in the wake of the banking collapse. Our advice for anyone travelling to Iceland is to rent a car and discover some of the gems off the beaten path - the scenery is spectacular.

There is a very good as to why the likes of Mercedes and Aston Martin launch new models in Iceland. Also, be sure to take a trip to one of Iceland’s spa’s. cordeditorial@cma.rs

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chill

out!

Creepy cuisine

tal source of nutrition which will not only solve food shortages but also help save the environment.

They have launched a three million euro (£2.65 million) project to promote the eating of insects while also asking national watchdogs like the UK’s Food Standards Agency to investigate the issue. Proponents of entomophagy – insect eating – argue that bugs are a lowcholesterol, low-fat protein food source.

Fancy some scorpion soup? How about a mixed locust salad with bee crème brûlée for dessert?

It may not sound like the most appetising of prospects but the European Union thinks all these could soon be on the menu.

Experts in Brussels believe insects and other creepy crawlies could be a vi-

Star wars planet Astronomers have discovered a new planet and christened it with a typically uninspiring name. But to millions of Star Wars fans, “Kepler-16b” might as well be called Tatooine, since it shares an unusual feature with Luke Skywalker’s home: Each planet orbits two suns. Besides the discovery’s “wow factor,” it’s rewriting the book on such phenomena. Aside from confirming that stable two-sun planets like Kepler-16b actually exist, it disproves something astronomers had long believed: That a two-sun planet would have to be at least seven times as far from its suns as the two suns were from each other. “This planet broke the rule,” says astronomer Sara Seager as quoted in The New York Times.

Nasa haulage The space agency is developing the new generation of airships, which it believes will replace trucks, trains and ships as means of carrying freight.

The first prototype is expected to make its maiden voyage next year and scientists leading the project predict airships capable of carrying hundreds of tonnes of cargo at a time will be airborne by the end of the decade.

It comes more than 70 years after the Hindenburg disaster, which brought an end to the earlier airship era.

However, the development of modern materials and aerodynamics knowledge gained from the space race means that the new generation will be capable of safely carrying loads that could not be managed in the past.

Russian space hotel Russian company Orbital Technologies wants to take luxury hotels to new hights - orbiting 217 miles above the Earth - by 2016. The proposed Commercial Space Station (CSS) would house seven guests in four cabins, including such space luxuries as precooked gourmet meals, sealed showers, and spectacular views of the home plan72 |

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et (see images below). Though the accommodations are more likely to evoke a high-tech dentist’s office more than a chic Miami getaway, the space hotel will be “far more comfortable” than the even more spartan International Space Station, says Orbital chief executive Sergei Kostenko. At about $165,000 per person for a five-night stay, experiencing the final frontier from your bedroom window won’t be cheap.

Carlsberg’s father birthday In early September, Carlsberg celebrated the 200th anniversary of the birth of its founder, J.C. Jacobsena, the holder of the revolution in brewing, and the man who provided the global success of pilsner beer.

Jacob Christian Jacobsen (1811 1887) was a Danish industrialist and philanthropist, who in 1847 founded the

Carlsberg brewery. J.C. Jacobsen in 1875 founded the Carlsberg Laboratory, this was where he discovered a revolutionary method of the identification and separation of pure yeast. Traditionally, as Carlsberg always has, it has once again launched an innovation in the market: by giving the yeast a new structure it gives the beer an extra feeling of freshness. A new barley called Null-Lox helps keep beer fresh for extended periods.

Americool image They may be witnessing their global superpower influence decline in the face of challenges from other emerging players on the world stage, but Americans have been voted the world’s “coolest nationality” in an international poll.

Social networking site Badoo.com asked 30,000 people across 15 countries to name the coolest nationality and also found that the Spanish were considered the coolest Europeans, Brazilians the coolest Latin Americans and Belgians the globe’s least cool nationality.

THE FIVE COOLEST & FIVE LEAST COOLEST NATIONALITIES: 1. Americans 1. Belgians 2. Brazilians 2. Poles 3. Spanish 3. Turks 4. Italians 4. Canadians 5. French 5. Germans

Albu-quirky

The black and tan Coonhound lives in Boulder, Colorado, in the US, and at first his giant ears caused quite the headache as a small puppy. Harbour is able to walk around without much fuss - except when he goes for a walk in the park.

When measured by officials Harbour’s ears were 12.25 inches (31.1 cm) for the left ear and 13.5 inches (34.3 cm) for the right.

Amazingly, Harbour’s ear-span is longer than the world’s smallest man Junrey Balawing, from the Philippines, who stands at just 23.5 inches.

The extra-long ears displayed on most hounds, particularly the Coonhound, are used not for hearing but primarily for smell. Harbour uses his ears close to the ground to sweep odours up into his nose.

newable energy innovations to intelligent traffic systems, next-generation wireless networks and smart-grid cyber security systems.

Pegasus Global Holdings CEO Bob Brumley says the $200 million project will create a place for scientists at universities, labs and military installations to test their innovations for upgrading cities to 21st century green technology and infrastructure.

chill out!

Albuquerque - New Mexico, home to several of America’s premier scientific, nuclear and military institutions, is planning to take part in an unprecedented science project - a 20-sq mile model of a small U.S. city.

A Washington, D.C.- based technology company announced plans to build a ghost town to test everything from re-

Dog-eared

cordeditorial@cma.rs

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techno

talk

“Money can’t buy you happiness, but it can buy you a yacht big enough to pull up right alongside it “ (David Lee Roth)

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hat do you do if you are an enormously wealthy businessperson with some spare change in your wallet, a penchant for opulence and want to show the 'commoners' what being truly rich means? You get yourself a fabulously lavish floating home and shout, ‘Titanic’ style, off the bow; “I have the biggest d...inghy,” most likely in Monaco’s famous harbour. More often than not the word ‘excessive’ springs to my mind, however there is no doubt that if you have the cash to splash there are very few more extravagant ways to spend your hard earned income, be it inheritance, drug money, and or, oil money... So drop anchor, get comfortable in your captains chair, set your course for the’ Isle of Envy’ and take a look at some of the most luxurious and technologically advanced yachts the seas have ever seen.

Hedonist The Art of Kinetiks Hedonist is a 20 metre (63 foot) motor yacht that can cruise at speeds of up to 40 knots, doing so in nearly unparalleled style all for a very low price. The exterior is cloaked in fine mahogany, with glass and metal accents, while the interior is as refined and detailed as a luxury hotel. Hedonist is powered by a set of Rolls Royce water jets. The yacht is designed to be seamless and pure. No screws or plastic are visible at any point.

Ocean Emerald This spectacular and contemporary 41 metre (135 feet) masterpiece is the first of four identically designed super yachts and has been designed with a strong emphasis on space and light. The guests are looked after by a permanent, highly trained crew of seven to cater for their every need. The internal planning of the yacht offers total flexibility to respond to the most discerning requirements of the owners and their guests. All furnishings and fittings are provided by the Italian manufacturer Cassina. * for 1/8th ownership + €200,000 maintenance 74 |

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Wally 118 Nearly every man wants to be James Bond. And if James was not fictional and happened to be an exceptionally wealthy man he would no doubt choose the Wally 118. If any dictators or their henchmen think they can him, they would be dead wrong, Wally 118 is a superfast yacht with a maximum speed of 60 knots (70 mph, 110 km/h) from three gas turbine engines. Not only is Wally fast, it is also ideal for entertaining a few of the lady friends, you would, no doubt, invite on board.

Leopard 43 m The leopard is a 43m motor yacht launched from the Leopard Shipyard in 2010 and won the World Yachts Trophy 2010 for the best lay out. If speed is what you need from your yacht then Leopard has it covered with three 2400 horse powered engines. In addition to its super sleek design, upper deck jacuzzi, art galley and phenomenal speed, Leopard, is also technologically above and beyond nearly everything else in its category. Possibly the best thing about this particular yacht is the relatively low price. Buy it, but don’t tell your posh friends for how much.

Strand Craft SC122 or 166

* at least

technotalk

The highlight of either model is the outstanding design and technical features in creating these fully usable and fast mega yachts. So what do you get for your millions? Art Deco interiors, four big staterooms, a reception and salon areas for entertaining, 52-inch LED TVs and Bang & Olufsen sound systems in every room, as well as some serious wave making power (14,000 horsepower) and a high top speed (both boats can hit 50 knots).Oh and don't forget the 800-horsepower twin turbo V12 supercar that the company is throwing in for free. It even has its own parking parking spot inside the yacht.

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techno

talk JoyMe The unique and eye-catching 50 metre (164 feet) yacht JoyMe launched earlier this summer by Philip Zepter Yachts, has an impressive tri-deck displacement. JoyMe features a distinctive and highly personalised exterior and interior design by the Milan based studio Standby/Marijana Radovic. The unsual yacht has a cruising speed of 14 knots, max speed of 15.00 knots and a range of 4000 nm from her 65000-litre fuel tanks.

If you get the urge for a very expensive holiday, JoyMe is available for charter.

Maltese Falcon The Maltese Falcon is currently owned by Elena Ambrosiadou founder of IKOS Asset Management, a London-based hedge fund.

Originally commissioned by venture capitalist Tom Perkins and built by Perini Navi - Italy, the 88 metre (289 feet) sailing yacht is one of the largest in the world. Most likely to the annoyance of Elena there is now a new and improved Maltese Falcon sailing yacht design. The new 110 metre Falcon yacht design is faster, better and larger according to Perini.

Superyacht ‘A’ The extraordinary shape, courtesy of designer Philippe Starck, has been likened to both a First World War battleship and a submarine. Launched by the same German company that built the Bismarck - the Second World War battleship - the 119 metre (390ft) steel yacht is like a modernday dreadnought. The razor-sharp bow will cut through Arctic ice.

Clamshell doors, at the rear, open upwards to release two 30ft speedboats, ideal tenders for the Mediterranean.

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Pelorus From the Greek word ‘pelrios’ meaning ‘vast’, Pelorus is the nineteenth largest yacht in the world. Built in 2003 in Bremen, Germany, it was originally owned by a Saudi businessman who then sold it onto Roman Ambramovich, owner of Chelsea F.C. Perolus is 115 metres (377 feet) in length and was upgraded by Ambramovich, who had modifications made to the exhaust, stern and mast, plus the minor addition of a second helicopter pad. Perolus is now owned by Hollywood tycoon & yacht ownerDavid Geffen. Why have one when you can have two?

Dubai Owned by Shiek Mohammed bin Rashid Al Maktoum, ruler of Dubai and Prime Minister of the UAE, Dubai is one of the most lavishly furnished yachts on earth. There is a glass spiral staircase connecting the VIP suites, and the, no doubt, cheap additions of a landing pad for a Blackhawk helicopter, and a garage for the submarine. Dubai, which was first completed in 2006, has had numerous additions and enhancements since its first build; anchoring is position amongst the world’s elite yachts.

Eclipse

technotalk

Eclipse, as her name suggests, is the biggest private yacht in existence and comes with a missile-detection system, two helipads, a luxury spa, swimming pool and a miniature submarine. One of the most advanced pieces of technology on board are giant stabilisers – effectively motorised paddles. The stabilisers are believed to be a first in yacht technology and extend from the vessel’s sides when at anchor, to prevent the yacht from rocking. They move in response to the waves to keep the vessel level at all times, ensuring no champagne is spilt on the beautiful decks. Onboard computers even monitor and memorise the wave patterns to predict pressures on the hull, so ensuring the stabilisers react before a wave hits the vessel. Eclipse is the ultimate mega yachtski - As Roman would probably tell you. cordeditorial@cma.rs

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fashion

In the bAG What an appropriate bag offers is a suave and sophisticated look, and most importantly, a stylish statement of organisation and importance Male

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or a man, a bag is like a tool belt for the business site. For a woman a bag is an extension of her creature comforts. Both sexes need to carry a phone or two, documents, newspapers (read - ipad if you are up to date), essential cosmetics and maybe the odd personal item, however that flyer from the new gym has no place in your bag, or even your home for that matter, colleagues won’t be impressed with your enthusiasm and the inevitable trying to impress sentence “Oh, I forgot all about this. Have you seen it?”

If you are a man then ditch the idea that you are a woodsman on his way for a days work in the forest. Leave the rucksack at home. Keep it for hiking, not the walk to a business meeting. If you are a woman, please do not treat your bag as a suitcase, there are times, for sure, that you will need to be prepared for the apocalypse or a drastic make-up fail, however in a business environment sleek and sophisticated wins over ‘mom of the Year’.

Leave the rucksack at home. Keep it for hiking, not the walk to a business meeting

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Briefcase Briefcases are probably the oldest form of “acceptable” handbags for men.

Modern-day briefcases, however, have evolved a great deal since the days of your father’s sharp-cornered case. They’re no longer boxy; in fact, that’s about the only traditional element discarded in the modern briefcase. The classic shape (without the sharp corners), buckles, leather exterior, and practical interior compartments help make this bag a timeless addition to any working-man’s wardrobe.

Use: Business attire |

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Any travelling man needs a holdall for those weekend jaunts or three-day business trips

Messenger bag Aptly named, the messenger bag is designed after the bags traditionally carried throughout history by - whom else? - Messengers. Often made from canvas and swung across the shoulder, messenger bags have taken on a whole new meaning in urban fashion. From students with canvas bags to urban hipsters with modern leather bags, the messenger’s laid-back style will always have a classic casual flair, but today’s leather messenger tote also exudes a hint of uptown sophistication.

Use: Slick street clothes, casual Friday’s

Holdall Any travelling man needs a holdall for those weekend jaunts or three-day business trips. Big, bulky luggage has transformed into sleek, stylish holdalls (or carryalls). Its design is inspired by the duffel bag, but its predominantly leather exterior and more refined appearance attribute a classic look to this practical tote.

Use: Appropriate if you work-out after/during work

Tote A tote is the modern approach to the classic briefcase. Resembling an artisan’s bag, the tote is the utmost in casual business attire. Its basic design and usual soft leather exterior allots it a classic status, while its long handles give it a contemporary edge. If purchased in a chocolate brown or black, this bag can add a touch of laid-back masculinity to any casual work wear.

Use: Business-casual clothes cordeditorial@cma.rs

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FEMale

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women’s handbag is the ultimate fashion accessory. Without it women are lost in a sea of despair. Designer handbags are the fashion must have item par excellence, however since women require a range of bags for different occasions, having a stylish bag to suit every requirement is a must. With the high street offering so many fabulous bags, women can afford to have one for every occasion, hooray! Remember ladies it should be sleek and sexy, not, cumbersome and childlike.

Tote Totes are often called a carry bag. They are used to hold personal belongings that are too large for a purse. Casual and practical at the same time, they should be an accessory staple. Most women use them for their daily hang outs as they are comfortable, but they can be a very stylish addition to your look.

Go for understated cool.

Use: Anytime

Clutch A clutch is intended to be carried in the hand because it has no handles, although they look very sexy casually held between the elbow and ribs. Very feminine and generally small bags, all the essentials cosmetic products can be placed in them to make you stay fresh and looking beautiful all day long.

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With the high street offering so many fabulous bags, women can afford to have one for every occasion

Satchel Basically a handbag that has one, sometimes two, large straps that go over one shoulder and across the body. This type of handbag is most appropriate for women who work in a busy office. Use of this handbag should be to carry important files and not to knock people out of the way on the way to and from work. Although, fashionistas know the use of a satchel is not only to hold bulky files.

Use: Office files etc.

Duffel Large and with practical compartments where you can place several necessary items such as a scarf, change of shoes and other items that you may need on an average work day. After all not every day is the same.

Use: The active working woman

Fashionistas know the use of a satchel is not only to hold bulky files

Hobo Another typically large bag and defined by a crescent shape designed to be carried over the shoulder. Do not be put off the name. Hobo handbags are feminine and stylish by design, and can be a real eye-catching accessory.

Use: Work place cordeditorial@cma.rs

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profile

thinking Forward The recent Intesa Academia business conference brought together over 400 business executives, economic policy makers, opinion leaders and financial experts for constructive debate on the challenges facing the Eurozone, generating strong media interest and confirming Banca Intesa’s position as an active participant in the creation of Serbia’s economic life

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Maja Kolar, Head of Marketing and Communications, Banca Intesa

ing marketplace,” Maja says. “The secret is to love challenges, always strive for excellence and perfection, seek creative ideas and innovative solutions and constantly work on improving yourself,” she adds.

So, what was the road that led her to where she is today?

After completing high school for mathematics in Novi Sad, Maja planned on studying electrical engineering or maybe IT, but opted for economics instead.

“As Serbia embarked on the painful road towards a market economy, I felt the yearning to be part of a brand new generation of managers who would help reshape, improve and modernize the market and make deep and lasting changes,” Maja says. “To me, the word ‘manager’ held the promise of change, of a new economic prospective and of a better future for Serbia,” she adds.

This is why she decided to enrol at the Novi Sad University Faculty of Economics and pursue a degree in marketing. Soon enough, she developed a strong interest in PR and started exploring the complex world of public relations through professional literature.

During her studies, she spent nearAs Serbia embarked on the painful road towards a market ly a year in Italy, working on her proeconomy, I felt the yearning to be part of a brand new fessional advancement in the internageneration of managers who would help reshape, improve and tional business environment. Soon she modernize the market and make deep and lasting changes felt the need to perfect her skills and further build on her knowledge, so she continued her education by completing postgraduate studies in regulators, legislators, the media and customers, and it seems PR at the Faculty of Organizational Sciences in Belgrade. And she that no sector is as exposed as banking. Since we face greatdoes not plan to stop there, but rather go for a doctorate degree. er marketing challenges than most companies, it is essential to “Working at Banca Intesa, I feel lucky to be cooperating with think forward and craft, maintain and protect reputation and talented people who love their jobs, whose enthusiasm and brand image through continuous dialogue with multiple, largededication to work is continuously fuelling my drive for us to scale audiences. At the end of the day, a successfully managed make this department the hub of the best marketing and comreputation is one of the company’s greatest assets,” she says. munication practices in the entire Intesa Sanpaolo group,” Maja “To say that my job is dynamic and challenging is an unadds. “The fact that we have the best brand image of all banks derstatement, but I see it as a great chance to help the bank in the group and that our marketing campaigns, creative solumeet its business objectives through brand strategy developtions and CSR projects are often taken over by group members ment and implementation, communications planning and exein other countries, which tells me that we are well on our way to cution, and corporate identity management, which have stragetting there,” she notes.

■ tegic importance in today’s fast-paced and constantly changroving once again that creativity, innovation and an ability to put great ideas to work is the true path to success, Maja Kolar, Head of Marketing and Communications at Banca Intesa (www.bancaintesa.rs), tells us more about the idea and rationale behind Intesa Academia.

“Intesa Academia was an attempt to create an engaging dialogue with all our stakeholders and stimulate their interaction with the brand,” Maja says. “For brands of all shapes and sizes, one of the most pressing demands is to create engaging communication interfaces for the audience. Whether that is a business conference on a hot topic, a vibrant CSR program or a social network interaction, the art of connecting with the customers has never been a more critical component of every businesses strategy for growth,” she adds.

Maja spent more than 10 years at the helm of the marketing and communication teams in a wide spectrum of highly-regulated industries. Today, she is leading the marketing and communications department of Serbia’s number one bank.

“Highly regulated industries are under daily scrutiny from

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