CordD Magazine No.88

CASH FALLS - crisis groWs

serBia should Be Brave

Professor at the FEFA Faculty and Chairman of Societe General Bank’s Managing Board

Ambassador of Denmark to Serbia

h.e. Mette kJuel NielseN,

duško vuJošević, Coach and president of JSD Partizan

DEC ‘11 / ISSUE NO. 88

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dr goraN Pitić,

faciNg everythiNg AHEAD

interviews opinions news comments events price 250 rsD

THE PUBLIC PRIVATE PARTNERSHIP LAW PRESENTED BY NALED IS ABOUT TO BE ENACTED IN THE SERBIAN PARLIAMENT

Enable Private Funding

Nebojša Ćirić, Serbian Economy and Regional Development Minister

BRANISLAV GRUJIĆ, PROPRIETOR AND DIRECTOR OF PSP FARMAN COMPANY

We All Have the Same Problems

Maybe it is better to be a foreign investor, but the foreign investors don’t think so

ALEKSANDAR MILOSAVLJEVIĆ, SUPERINTENDENT OF THE SERBIAN NATIONAL THEATRE (SNP)

A 150 Years of Serbian Theatre

Opera Mileva is the ultimate work of art that is based on Vida Ognjenović’s drama Mileva Einstein that was staged at BEMUS A SELECTION OF THE WORLD’S BEST SKI DESTINATIONS

Sensational Skiing

Skiers and boarders will always want their annual fix of the white stuff and there is certainly plenty on offer

mirko cVetkoViĆ PRIME MINISTER oF SERBIA

Turbulent Times

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COVER Mirko Cvetković, Prime Minister of Serbia

Turbulent Times

contents

Page 8

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The government of Mirko Cvetkovic, judging by the current situation, will be the first in a long time that will complete the entire four-year mandate and be the longest-serving government in recent history. Critics state that this would not have been the case had it not been for the global economic crisis

Crisis - Nobody’s Concern VERA DIDANOVIĆ, Journalist

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Turbulent Times MIRKO CVETKOVIĆ, Prime Minister of Serbia

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F aces & Places

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C ulture Calendar & News

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1 50 Years of Serbian Theatre

Serbia Should be Brave

ALEKSANDAR MILOSAVLJEVIĆ, Superintendent of the Serbian National Theatre (Snp)

H.E. METTE KJUEL NIELSEN, Ambassador of Denmark to Serbia

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Global diary

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Cash Falls - Crisis Grows

Public Private Partnership Law

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Focus

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D ifferent Roots – One Spirit Different religions believe that the New Year marks the beginning of new life

Facing Everything Ahead Duško Vujošević, Coach and President of JSD Partizan

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C ontinual Success André Manuel Ladeiro Jacques de Sousa, Marketing Director of Carlsberg Srbija

DR GORAN PITIĆ, Professor at the Fefa Faculty and Chairman of Societe General Bank’s Managing Board

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December 2011

Optimism Prevails Over Pessimism

CONTRIBUTORS: Jovana Gligorijević, Rob Dugdale, Mirjana Zec, Radmila Stanković, Boško Jakšić,Steve MacKenzie Zorica Todorović Mirković,Sonja Ćirić, Vera Didanović PHOTOS: Zoran Petrović, Marijana Šaponjić TRANSLATION: Snežana Bjelotomić PROJECT MANAGERS: Nataša Popović n.popovic@aim.rs Biljana Dević b.devic@aim.rs Vanja Jokanović v.jokanovic@aim.rs Svetlana Okanović s.okanovic@aim.rs

FINANCIAL DIRECTOR: Ana Besedić a.besedic@cma.rs

Business Dialogue

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We All Have the Same Problems

Politics page 6

Profile page 61

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We Felt the Crisis Miloš Milinović, Director of Energoprojekt-Energodata a.d. company which operates within the Energoprojekt system

Eurobonds Sparks New Storm

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Buffett Sees Investment in Japan

n ew moon Restaurant review

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S ensational SKIING A Selection of the World’s Best Ski Destinations

Dispute Over Eurobonds

U.S. Billionaire Warren Buffett visiting Japan

An Overstated Impact The Nba Lockout and the Us Economy

BRANISLAV GRUJIĆ, Proprietor and Director of Psp Farman Company

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ASSISTANT EDITOR: Max Williams, m.williams@aim.rs

GENERAL MANAGER: Ivan Novčić i.novcic@cma.rs

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ART DIRECTOR: Ilija Petrović, i.petrovic@aim.rs

EXECUTIVE DIRECTOR: Ruža Ristanović r.ristanovic@aim.rs

The 2nd Regional Press Media Summit

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EDITOR: Sasa Marić s.maric@aim.rs

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OFFICE MANAGER: Tanja Banković t.bankovic@aim.rs PRINTING: Rotografika d.o.o., Segedinski put 72, Subotica CorD is published by: alliance international media Makenzijeva 67, 11000 Belgrade, Serbia Phone: +(381 11) 2450 508 Fax: +(381 11) 2450 122 E-mail: cordeditorial@cma.rs www.cordmagazine.com www.allianceinternationalmedia.com ISSN no: 1451-7833 All rights reserved alliance international media 2011

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comment

Crisis - Nobody’s Concern The government has been in crisis since it was formed, and the same goes for Serbia, which has been in crisis for the past 20 years, yet it survives

T

Vera didaNoViĆ, Journalist

“Both Europe and Kosovo”. his is how Serbian Deputy PM and Interior Minister, Ivica As if failure in doing “the Kosovo Dačić explained why in Serbia many things defy logic and why homework” properly wasn’t enough, the you shouldn’t always believe in what you see. At least not government has additionally jeopardized its pro-European orientawhen politics is in question... tion by creating the impression that the country is flippant and irreIn the last few weeks, the government has been struggling with sponsible only weeks before the EU Council of Ministers is due to deinternal disputes, but, despite that, the parliamentary elections will cide on Serbia’s candidacy bid. not take place before the official date, sometime in spring.

So, for example, Minister Sulejman Ugljanin wants the Interior Antagonistic political parties share the same goal – make it to Minister Ivica Dačić to resign because the police brought a group of parliament and participate in the government. The price of satisfying juvenile men in for questioning, including Ugljanin’s son, for disorderpolitical interests, which are jeopardizing the government’s work, as ly conduct. Infrastructure Minister Milutin Mrkonjić publicly says that well as the work done by other state institutions, is totally irrelevant. the two governments, with Prime Minister Mirko Marjanović at their “Serbia will survive anyhow,” Dačić explained. helm, from the “dark ages” of Serbian history (18th March 1994 The war between coalition partners erupted once the political pro24th October 2000) were actually better than the current governjections showed that the upcoming elections would be the most unment and its PM Mirko Cvetković. Because of a dispute with their parpredictable ever. Political surveys have shown that the Democrats and ty colleague and Diaspora Minister, Srđan Srećković, MPs from SPO the Progressives a neck-and-neck in ratings and that only a handful of interrupted a parliament session. The reason for this was Srećković’s smaller parties have a chance of making it into parliament. decision to back up official government policy rather than that of the The key pre-election argument of the Democratic Party and its newly formed ‘Reversal’ movement. coalition partners vanished once their former main political adverThe conflicts inside the governing coalition did not cause much of a saries – Tomislav Nikolić and Aleksandar Vučić – transformed themtremor in the government. Putting personal and party interests ahead selves into pro-European politicians. Intimidating voters with “The of state ones has become an everyday occurence in Serbia. According possibility of society returning to the dreaded 1990s,” if the Nikolić to political analysts, Mirko Cvetković’s government is probably going & Vučić team came to power was completely squelched. to be the first government since 2000 to last the full term.

The election campaign actually began in February when the leadBad news for the champions of longevity is that, in summing up er of G17 Plus, Mlađan Dinkić was replaced as Economy Minister. the results of the current government and the parties that make it, The game is becoming tougher by the minute as the elections are the electorate will consider other factors like the fact that, during this approaching. Governing parties have been using all their available means to fight each other, even bringing into quesGoverning parties have been using all their available tion the key aspects of official state policy. means to fight each other, even bringing into question So, for instance, President of the Serbian Renewal Movement (SPO), Vuk Drašković has put his the key aspects of the official state policy signature to the petition for the drastic change of ofgovernment’s term, Serbia’s debt grew by 6 billion euros. Most of this ficial state (mainly Kosovo) policy. The document says that “The parmoney was spent on current expenditure instead of investments and ties in power are responsible for the confusion that the country has capital projects. found itself in. Because of its hesitation and manipulation, the govAccording to nearly every public survey, the citizens’ malcontent ernment has seriously jeopardized the European future of society is overwhelming. They are struggling to make ends meet and are disand the vital interests that closely depend on it.” gruntled with the huge amount of corruption in the country.

Other parties in power are starting to adjust to the fact that EuroHence, the claim that “We are going to survive in spite of crisis” is enthusiasm amongst the electorate is dwindling. The omnipresent not going to be attractive or comforting enough for the voters when Dačić is loudest in stating that Serbia can do without the European they vote on Serbia’s destiny next spring. The governing parties have Union. Some of the Democratic Party members share his opinion. very little time to ponder over that possibility. ■ To refresh your memory, let us just mention that the political platThe Author is the political editor of NIN Weekly form, on which the current government was formed in 2008, was 8 |

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interview

mirko cVetkoViĆ, Prime miniSter of SerBia

Turbulent Times

■ By Jovana gligorijeViĆ

The government of Mirko Cvetkovic, judging by the current situation, will be the first in a long time that will complete the entire four-year mandate and be the longest-serving government in recent history. Critics state that this would not have been the case had it not been for the global economic crisis

W

hen this government assumed office, the situation was completely different from today. There was no economic crisis, the signals coming from the EU were positive regarding the accession process, and the Kosovo and Metohija problem was at a standstill. Four years later, the crisis is in full swing, European Union-scepticism amongst citizens is increasing, Serbian society is concerned about the assessment of the integration process that is due to be heard on the 9th December, and the dialogue with Pristina is taking place in conditions that could escalate into an altercation. In addition, the election campaigns have started long before for the expected springtime elections.

It would’ve been be ideal if we completed the reforms three or four years ago and faced the crisis from the same starting position as other countries

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Reform

The EU

Economy

We have a situation where everyone advocates reforms in principle, but when you go in to details, you find a whole lot of opposition.

I believe that the EU still represents the best alternative for Serbia and that strategically speaking nothing needs changing.

Given that our priority is the EU, the government’s main concern is on improving and strengthening the economy and efficiency.

■ The European Union found itself in an unprecedented economic situation, with daily changes, mostly for the worst. As a result, in Serbia, there is the realization that the economic problems outweigh the political. In addition, the importance of the Kosovo issue amongst citizens is also slowly losing ground. In your opinion, what are the highest priorities of the Serbian Government today?

- I believe that every government must look at things from a strategic perspective, and that everything we do in our present agenda is part of that strategy’s implementation. In that sense, I believe that the EU still represents the best alternative for Serbia and that strategically speaking nothing needs changing. We should observe the current problems as part of a normal cycle, and we should not use daily situations to define and determine strategic objectives.

However, this daily situation needs taking into serious account and that current activities should consider it, although we must always keep in mind our strategic priorities, which for us is the EU. It is our priority because it will secure better living standards for our citizens. Serbia is in an especially unfavourable position because it is dealing with two negative forces: the economic crisis that is hitting us all, and the incomplete transition process to the planned free market economy.

The implemented reforms also have short-term negative effects for many groups. It would’ve been ideal if we completed the reforms three or four years ago and faced the crisis from the same starting position as other countries, however, now we have to go through two painful parallel processes. If you are asking me if we should suspend the reform process during the crisis, my answer is: absolutely not, even at the price of losing popularity. In the long run, it will be clear why this was a good choice.

■ With the aim of maintaining economic stability, how much will the issuing of government bonds help?

- The issuing of government bonds is an activity that a country undertakes for more than two years. It is a usual way for a country to increase debt in order to overcome liquidity problems and budget deficit. The issuing of government bonds is a continuous process.

The news is that we have issued government bonds on the international markets, and that presents a very important step forward. It could have been better if we

did that much earlier, when the situation in the European markets was much better, but still, we were able to sell them under very favourable conditions. There were certain criticisms from the public, but the critics can now conclude that we have made a good financial move. Funds obtained from the issuing of bonds will be partly used to repay old debts, and partly for the payment of current liquidity. Together with some additional reserves, these funds will be enough until mid 2012.

■ In case the situation in the economy deteriorates, will the cooperation with the IMF be stronger than it is through the Precautionary Stand-by arrangement?

- We were always open for cooperation. Both the IMF and World Bank have reduced the growth percentage of the European economy twice, as well as our own. At the beginning, we thought that this year would be the year when we returned to the path of fast growth, but even though we had growth in first quarter of the year,

It is a completely incorrect assessment that it is a good time for reforms. People are scared of the economic crisis, and so the reforms frighten them even more we will end the year with smaller economic growth than planned. Now they are giving us signals that Serbia is an isolated island, that waves of neighbouring problems are hitting its shores and that we should be substantially decreasing our own expectations.

■ Currently research shows that for most people in Serbia, social welfare is more important than our candidacy bid for joining the EU. Hence, once again, we move from the arena of politics to the economy.

What is your view of these rising trends?

- The government should work on raising EU-enthucordeditorial@cma.rs

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siasm amongst citizens, but I think the main reason for the public’s attitude is the crisis in the eurozone and the overall situation in the EU. Furthermore, we have an additional problem because of the situation in northern Kosovo. In all these domains, the government should try to explain that we are dealing with the current problems and that they should be viewed in the wider context. As you can see, when they ask us about the dualism of EU – Kosovo issues, we respond that the EU remains our priority, but in the meantime, the question of Kosovo must be resolved. It is clear to us that we are not dealing with things that can be concluded over night. By putting forth diplomacy, dialogue and peaceful methods as the base for conflict resolution, we provide confirmation to everyone that this is the way we believe problems should be resolved.

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the age limit for retiring, which has brought very strong pressure from syndicates, and hence that part of the reform process has ground to a near halt. It has not fully stopped, but it has been significantly postponed. Over time, we realized that the breadth of reforms which we wanted to implement were not possible.

In addition, the government has completed, and introduced to parliament, the Draft Law on Public Private Partnership, but you have syndicates that are against it, even though it should increase overall efficiency. Hence, it is a completely incorrect assessment that it is a good time for reforms. People are scared of the economic crisis, and so reforms frighten them even more. Still, I think that we have made a few significant moves and we will continue with reforms with the aim of creating a better economic environment.

■ From the foreign investor’s point of view, the objectives of the reforms are feasible and will bring large bonuses.

In short, we are talking about a more efficient administration (regulatory guillotine), less corruption and crime, and more transparency in doing business. What would you add to this list?

- The complaints about bureaucracy, administration, and the length of procedures are all fair. However, it is not something that can be resolved by passing a decree, and then expect that all bureaucrats will suddenly become politer and more efficient. We have to work on that and continuously change regulations, put on pressure and never be content with the current situation because there ■ Instead of wait- What we are trying to do is to introduce fees ing for the out- that will be the same amount as in neighbouring is always room for improvement. I think come of obtain- countries with a similar level of development that the situation is ing the status for much better now than it was three years ago and I joining the EU, which will not change the global believe that in three years it will be even better than picture for Serbia overnight, or reaching an end to it is today. But even then there will be criticisms and negotiations with Pristina, that could last for years complaints, which is normal.

– should we not make use of this climate, which serves well for entering into serious economic re■ There are different assessments of the depth forms. Has the reform program been defined, and and duration of the present crisis. President Boris what are the priorities?

Tadić recently limited the duration to 2-3 years, - The climate for reform is not particularly favourable while other experts state that it will last at least at all. We have a situation where everyone advocates 8-10 years. Disregarding the duration of the crisis, reforms in principle, but when you go in to details, you what will be the key features of this crisis concernfind a whole lot of opposition. Last year, within negoing the everyday life of the citizens of Serbia? tiations with the IMF, we discussed reforming the pen- It is unwise to talk about the assessed duration of the sion system - Serbia is a country where the majority crisis. When it started in 2008, there was a discussion of the population is elderly. The balance between the about whether it will be U or W shaped, which means contributors and users is shifting, and that issue will whether or not we will reach rock bottom, after which be more and more active. We have decided to increase

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mous, with a special highlight on the debt of paythe only way is up, or whether it will be in waves. Those ment from the public and government sector to the that predicted the letter W were right. For now, we do private sector. Will the recent Government Decree not plan a fall, on the contrary rather modest growth. on the 60 day payment deadline be effectual and All the same, it is very hard to say with certainty when can the state stand behind this given deadline? the crisis will end. If in the following year Serbia reach- The state is a multi-layered system. The central level es at least minimum growth, it will be a positive sign. has a large amount of debt, which totals some 10%, Citizens feel the crisis mostly through the issue of which is about 2% of the budget, but it can pay its liunemployment and all the other aspects of the econoabilities. The problem exists on the local government my are in rooted to that issue. If you have direct foreign level and I do hope that this issue can be resolved now investment, it means the building a factory and new job that local self-governments have obtained a reroute for opportunities. Unfortunately, technological progress has income tax, and that they will use those funds for the created a situation where the level of investment does payment of their liabilities. The third level is the public not correspond to the number of new jobs. But that is enterprises and we ought to be fair and say that all the the result of technological progress. One line of defence public enterprises have always been more creditors against the crisis is the creation of favourable condithan debtors. The amount tions for SMEs in order to The country is becoming more of debt of the rest of the absorb the unemployed. organized, maybe not fast enough, but economy toward them is Naturally, SMEs have their own set of problems, they there is definitely improvement and we much higher. If we were to introduce penalties, the rest are vulnerable and they are going in the right direction of the utility sector would cannot follow some proceface a very bad situation, even though they think that dures, hence they need help and support. But we now would not be the case. Above all is the private sector, have a situation in which many, since the procedure for which has more debt toward public enterprises than establishing a firm is now easier, are doing so just to vice versa. The largest public enterprises in general do avoid certain payments. Consequently, we cannot allow not contribute to the level of insolvency. the bad to muddy the situation for the good.

■ Foreign investors also often complain about several additional fiscal fees, and they state that every month their companies give large funds for those fees, for example, they complain that ecological taxes are very high.

- I think these complaints should be welcomed and not be taken for granted. What we are trying to do is introduce fees that will be the same amount as in neighbouring countries with a similar level of development.

However, some of the fees and taxes in Serbia are the lowest in the region, and no one has remembered to give us praise for that. The local level of government is another thing. There was a law in the parliament procedure, which in one of its articles envisaged that the maximum value of local taxes should be limited to a certain amount, but it was not accepted. Hence, local self-government must fight to attract investors and there is not much we can do about it.

■ In the Serbian economy, there is a very high level of insolvency, and mutual debt of payment is enor-

Banks Both the IMF and World Bank have reduced the growth percentage of the EU economy twice, as well as our own.

problem

■ “Stada-Hemofarm” has threatened to close its factory if their debt for drugs delivered to the Serbian Health Care system is not paid, US Steel is in a lot of trouble globally… Do you expect a lot of turbulence amongst foreign investors in 2012, and can the state, under these conditions, bring about an improvement in the business climate, which many foreign investors complain about?

- Foreign investors do not have especially bigger problems than domestic companies. Maybe there is a difference in the observed situation: some prefer to work with losers, and then somehow expect to cover the losses later, while some decide to retreat. Nevertheless, even the retreat of investors does not mean that companies will seize to exist, but rather they will get a new owner. We can provide assistance, but not in the sense that we will give special treatment because they say that they are experiencing difficulties. Everything that is happening to them is also happening to domestic companies. Difficulties exist, and the government will do everything in its power to help if they are transparent and do not deter competitiveness.

The problem exists on the local government level and I do hope that this issue can be resolved.

politics

The politics could help reforms, but reforms in the short term never bring a visible benefit. cordeditorial@cma.rs

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■ Even though Serbia is among the leaders in the region in attracting foreign investment, it is definitely not enough and less than expected. What is the realistic amount of foreign investment that can be expected in 2012?

- The more the merrier. We have some estimates, but this year we attracted fewer investments that planned. Still, it was far more than others had.

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ment of one man, even a prime minister, bring large-scale change to a country unless there is a general consensus?

- The replacement of one man cannot bring that much change, but the change of a complete policy or attitude certainly can. This does not relate to cases when for instance one is replaced due to individual bad moves, scandals etc. For now, we have an attitude that is in line with the mandate entrusted to us and we are implementing that attitude, independently from individual solutions or who is in what position etc.

■ Do you think that Serbia, as is the case in some European countries, has reached a situation where the widest consensus is necessary regarding economic reforms, Kosovo, the EU acces■ Currently, how much is politics sion process, as well as the order interfering with the economy in in prioritization of these issues? implementing measures that - Wide spread agreement is always are of vital importance to the fudesirable, even when there is no ture of the country? crisis. However, our political scene - The politics could help reforms, is such that the opposition criticizes but reforms in the short term everything that the government never bring a visible benefit. It does, and when you ask them what never happens that by changing they would do differently, in most just one legislation citizens imcases, you can see that the steps they would undertake would be With the continuous implementation mediately see a benefit. With the continuous implementathe same. Hence, we have critof small changes, in a few years, we tion of small changes, in a icism just for the sake of critiwill see notable progress few years, we will see notacism, and not criticism that ble progress. However, we easily forget how it was may contribute to an improvement in the situation. In that before, just two years ago we stood in long lines for context, I think that ‘consensus’ is a good thing, and it will visas etc. The country is becoming more organized, provide much help in exiting the crisis. We are approachmaybe not fast enough, but there is definitely an iming the elections, but I think that it would be good to reach provement and we are going in the right direction. an agreement at least regarding the issue of EU integration, in order to successfully pass the checkpoint on the ■ As prime minister, unfortunately you have to deal 9th December, and then enter into a political battle. with some of the most difficult situations since the war. Some say that only a man of your tempera■ Having that in mind, is it realistic to expect that ment and tolerance could complete a whole term the Government of Serbia can respond to the exin office under such conditions. Do you sometimes traordinary demands that the global economic ask yourself, why did I need all of this? crisis brings – together with the pressure from the - I would never say that I wondered why should I need open Kosovo issue, undefined European integration this. I consider it as a very important place that involves process and in the midst of the election campaign? challenges and difficulties that this position brings.

- The question should not be whether the government Those who know me better, know that I am very stubcan do that. It is its duty to do so in terms of its straborn and when I say something it needs to be completed. tegic commitments and principles. I think that we are On the other hand, I am not a person to whom it is improviding those answers, even though some are not portant to be presented in media in one or another. The satisfied with them. For every package of problems, result for me was always more important than whethwe provide answers that our strategic dedications er you give the impression of mild or sharp man. The support, and I think that the new government will also government has a team of several parties and it works, continue this process. guided by the goals, on which it is formed in accordance with the circumstances. It turned out that this govern■ 2011 was not a favourable year for prime minment, under conditions of great global economic crisis, isters all over the world, especially in Europe... is implementing the basic objectives and reforms. ■ Ireland, Portugal, Greece, Italy… Can the replace-

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Gases and know-how for your success www.messer.rs

interview h.e. mette kjuel NielSeN, amBaSSador of denmark to SerBia

Serbia Should be Brave ■ By Jovana gligorijeViĆ

Serbia should not only aim for the minimum necessary, but continue the good trends, and put the clear aspirations and policy choices up front. Serbia should be brave and show clear intentions. This would be noticed

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ultimately buried in Denmark in 1928. For four years .E. Mette Kjuel Nielsen, Ambassador of she was undersecretary for international affairs in Denmark to Serbia, has dealt with the the Danish Ministry of Defence, and political advisor Balkans from different perspectives for to the US General for SFOR in Bosnia in 1997. In the the last twenty years. She came to Serbia early 1990’s she was posted to the Danish Mission from the position of Head of Department at the UN, and then assigned to the Security Policy for Russia, Eastern Europe, Caucasus, Central Asia, the Department in the Ministry of Foreign Affairs. Her Western Balkans, OSCE and Council of Europe. assignment in Serbia is her first ambassadorship.

Ms. Nielsen held that position, when Denmark last had the EU Presidency, with all the challenges that With the present government, the ■ Considering the fact that entailed, including helping to Serbian membership perspective Serbian integration into the ensure that the enlargement has become very concrete, with EU is one of the most imperspective for the countries noticeable milestones reached portant political issues at the moment, what are your of the western Balkans was thoughts on the current position of Serbia and mentioned in the conclusion in December 2002, it’s European future? when the big enlargement of the EU (the fifth en- The next moves are in Serbia’s hands and I am oplargement) was agreed. She had the unusual respontimistic. Serbia is a European country and belongs sibility of being in charge of the reburial of the last in the EU. With the present government, your memCzars mother, Maria Feodorovna, a Danish Princess bership perspective has become very concrete, with (Dagmar), who had to flee Russia in 1918 and was

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Future

Partnership

Corruption

Serbia’s future lies within the EU. The EU has been your close and reliable partner since 2000 to help build up Serbia’s economy and society.

Serbia is our largest bilateral assistance partner in Europe in the defence field.

We have laws and regulations that ensure transparency and minimize the temptation to be corrupt.

■ There is a lot of cooperation on projects between noticeable milestones reached. All these milestones Denmark and Serbia. Which of these projects do have been reached in response to clear progress and you consider to be the most significant? reforms. Recently the EU Commission issued, in my - They are all important. We have a close and longview, a very positive opinion on Serbia. Recognising standing bilateral relationship at many levels and in the considerable progress made, including praising many fields. If I should highlight some, I would menthe closure of The Hague Tribunal list of wanted peotion the close cooperation between our defence estabple. The opinion also pointed to a number of areas lishments, where we assist in modernising Serbian Dewhere continual and systematic reforms are necesfence. Serbia is our largest bilateral assistance partner sary, such as the judiciary, fight against corruption, in Europe in the defence field. structural weaknesses in the economic sector, energy efficiency and environmental protection. The Serbian Government recognises all of these areas equally as priorities in the further reform process.

Following the opinion, candidacy status for Serbia is within close reach. A decision will be made on the 9th December by all the EU countries. The recommendation is on the understanding that Serbia reengages in dialogue with Kosovo and implements good faith agreements. If I may be so bold as to offer a piece of advice, Serbia should not only aim for the minimum necessary, but continue the good trends, and put the clear aspirations and policy choices up front. Serbia should be brave and show clear intentions. This would be noticed.

Serbia’s future lies within the EU. The EU has been your close and reliable partner since 2000 to help build up Serbia’s economy and society. In many ways Serbia is still suffering from The overwhelming investment inflow into a setback in modernization and economic Serbia has come from EU countries. The EU development caused by the Milosevic era, and it countries are also by far the largest trading still hasn’t reached the economic level of 1990 partners for Serbia, with 56% of total trade In South Serbia, we have two major programmes in 2010. And when it comes to financial assistance and that focus on employment and growth. One is focusdonations, the EU is the overwhelmingly largest donor ing on developing SME’s, and the newest is a joint prowith a total of 2.2 Billion Euros since 2001. On top of gramme with the Serbian Ministry of Agriculture. This this comes the sizable bilateral assistance from the inprogram has been running for a year, and has, in my dividual EU countries, including Denmark. view, huge potential. It targets one of the poorest areas of Serbia in need of good news and focussed assistance.

■ On one occasion, you said that although it does The intention is to create employment and income lonot seem to be so, there are similarities between cally, awareness of what is needed to meet EU standSerbia and Denmark. What are those similarities? ards and to increase the value of products and generate - I had in mind the population size, history and backexport income. Serbia is already a very good producer ground – for instance the importance of the agriculof fruit, which is an important export commodity. tural sector in employment and the economy, and also the challenges in green growth, energy efficiency and ■ Based on your experience in Serbia, what are the environmental protection. Serbian cities, public utilimost important issues that Serbian society should ties, households and energy companies can learn from deal with, and which of those should our politiour experience over the last thirty years. Serbia can, so cians prioritise? to “skim the cream” speak, and jump straight into tak- The focus should be on the economy, creating jobs and ing advantage of our experiences and state of the art growth. An improved investment climate and further technological innovations by Danish companies. cordeditorial@cma.rs

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steps to deal with red tape and cumbersome administrative procedures will be attractive for foreign and national investors. The recent White Book from FIC points to a number of areas that should be addressed.

In many ways, Serbia is still suffering from a setback in modernization and economic development caused by the Milosevic years and it has still not reached the economic level it had in 1990. The fight against corruption is also very important.

As for the issues in Serbian society, one should always be careful in making this kind of comment, so I will do so with caution and hope that it is received with the same kindness that it is given. I would recommend a little more positive spirit. Things have changed tremendously since 2000. When I look back on the years

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■ Environmental issues, energy efficiency and ecological topics are very important to you personally, and to Denmark. Since 2009, the Danish Embassy has been a “green embassy”. Can you explain to our readers the concept of a “green embassy”?

- A “green embassy” means being energy efficient and taking care of the environment. Within the first 8 months, we managed to save 30% on our electricity bill. This has happened, primarily, with simple measures. It has actually been a pleasure for me, that in addition to talking about Denmark and Danish companies being at the forefront of green growth and energy efficiency, I can also give a concrete example on how individual decisions matter.

■ What do you think of the ecological and environmental consciousness in Serbia and how much can we learn from your country on that issue?

- We recycle at the embassy. Paper, plastic, glass, aluminium and batteries. We all bring these items from our homes to the embassy and recycle them. The glass recycling we do together with other embassies. When I travel around Serbia, I see a steadily growing awareness in young people about the importance of protecting the environment. And there is so much we, as individuals, can do in addition to government policy and action. Discarded aluminium cans for example take many years to break down naturally, if they are recycled, the raw material can be reused in new productions. With the increasing demands for raw material in a globalised world, recycling becomes an I have been in Serbia; it When I travel around Serbia, I see a asset. What we look at as waste is a positively different steadily growing awareness in young – is actually worth money. This society today than when I arrived in September people of protecting the environment is a completely new attitude to waste. Handled correctly a large proportion of our 2007. It is visible in the streets, in infrastructure, in waste can be sorted and reused, some can be incinerpolitical life, in everyday life, in public debate etc. ated and provide district heating, and only a small proThe Serbian words “strasno” and “nije normalno”, portion will have to go into land dumps. and sentences starting “how come...” should be rationed to a maximum of one a day.

■ Various research shows that Denmark is the country where people are the happiest in Europe.

■ Denmark has the lowest level of corruption. How Is there any recipe for happiness that Denmark do you succeed to achieving such an important goal? could give to Serbia?

- We do not tolerate corruption. We have laws and - The most amazing thing is that we top the list repeatregulations that ensure transparency and minimize edly. We have a well-organized society, with a high dethe temptation to be corrupt. Also institutions and gree of social security. That could be one explanation. big companies have a zero tolerance policy as part Then, we also have one of the highest tax-rates in the of their corporate social responsibility. Public instiworld and our weather is not that great. In Denmark, the tutions have strict rules about gifts – what is approsystem (society) takes care of people who cannot take priate, what is not. If ministers receive gifts on trips, care of themselves. In Serbia, you take care of each other. they have to declare them. Of course, there are rotten Which is best? It is difficult to say. I am happy. Why? Well, apples in Denmark like everywhere else, but I think why not? It is much better to be happy than unhappy. that part of our success in keeping corruption so low If you have a choice: look at the glass as half full – or use is the attitude that has been built and nourished in humour: it does not matter if the glass is half full or half all societal institutions. It is an attitude reinforced by empty, as long as it has got Rakija in it. Preferably dunja. ■ laws, regulations and procedures.

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Writer

global diary

Media is riddled with alien interests

The most famous person from Kyrgyzstan is a writer, Chingiz Aitmatov. He is more known by the world than any sportsmen, politicians and musicians.

Tokyo Sky Tree Last month Guinness World Records officially recognized the 634-metre Tokyo Sky Tree as the world’s tallest tower at a ceremony in the capital

Cross-ownerships, concentration constitute a real and present danger to freedom of expression, says Knesset study The domination of the media by business interests could imperil freedom of expression; warn economist Tamir Agmon and Ami Zadik, director of the Knesset’s Department for Budgetary Control.

Their study of ownership structures in Israel’s media found that some of Israel’s biggest business groups also have holdings in media companies. Four business groups - the Ofer family, the Dankner family, Mozi Wertheim and Yitzhak Tshuva - have holdings in media companies, finance companies and non-finance companies all together.

Cross-ownership in this case refers to owning shares in more than one media company - for instance, a television broadcaster and newspaper. Diagonal ownerships means that the company owns shares in a media company and other business interests.

Agmon and Zadik found the Israeli media scene is riddled with both cross-ownerships and diagonal ownerships.

“Concentrated ownerships and cross-ownerships in the media constitute a real potential danger,” they write.” “Crossownerships break down into horizontal ownership structures (owning interests in multiple media outlets, such as TV and news-

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Lion Air orders 230 Boeing aircrafts!

A decade ago, Rusdi Kirana sat on the grass at an air show in Britain, eating burgers with his wife. “I didn’t know anybody,” he says, “and nobody knew me” That will change now that his company, Lion Air, has announced the biggest order from Boeing. The once little-known Indonesian airline says it is planning to buy 230 planes from Boeing Co. The bill - with a list price of $21.7 billion - is to be paid over 12 years though bank financing.

Dozens of airlines have emerged in Indonesia since it deregulated its aviation industry in the 1990s, making air travel affordable for the first time for many across the sprawling island nation of 240 million, and luring passengers away from ferries and trains.

“Last year we had 21 million passengers, this year I think I can carry 27 million,” said the 48-year-old CEO, adding that with plans for an open-sky arrangement in Asia by 2015, a massive Boeing purchase “is not much of a gamble.”

The biggest market for now is home. The number of air passengers in Indonesia jumped 22% from 43 million in 2009 to 53 million in 2010, according to Indonesia’s statistics agency.

That trend has continued in 2011.

papers ) and vertical ownership structures (owning interests in more than one media type - say, broadcast companies ). Israel has it all. The possible implications include skewed news coverage and suffocation of the very right to freedom of expression.”

There is one underlying reason for the concentrated ownership of media, and that is the fact that returns on investment are so mean, Zadik and Agmon conclude. When a tycoon takes control of a media company, he isn’t in it for the money or the ideological satisfaction of building an excellent media outlet. He has another reason that may augur ill for freedom of expression.

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Alistair Richards, managing director of Guinness World Records, handed a certificate to Michiaki Suzuki, president of Tobu Tower Sky Tree Co., at the event.

“One of the purposes of the towers construction is to let the world learn about Japanese culture and technology, and the allure of a downtown area of Tokyo (in Sumida Ward). The recognition gives us great strength as we strive to meet that goal,” Suzuki said.

The TV broadcasting tower is due to open to the public next May. Guinness World Records recognize the 828-meter Burj Khalifa skyscraper in Dubai, in the United Arab Emirates, as the world’s tallest structure.

The Fat Tax Denmark’s ‘fat tax’ is first of its kind in the world – and the world will be watching the scales Danish experts are sceptical after Denmark introduced the new “fat tax” by increasing prices on butter, cream, cheese and other foods with high levels of saturated fats. But while Danes themselves took the change in their stride, the tax garnered significant international attention.

While other countries have introduced taxes on sugar, Denmark is reportedly the first to introduce a specific tax on saturated fats with the goal of curbing obesity.

Health experts estimate that 10 percent of Danes are obese and that 4 percent of all annual deaths can be attributed to unhealthy eating habits. Mike Rayner of Oxford University’s Health Promotion Research Group is one expert who can’t wait to see the results – if any.

“It’s the first ever fat-tax,” Rayner said “It’s very interesting. We haven’t had any practical examples before. Now we will be able to see the effects for real.”

Portugal Portugal is the oldest country in Europe with defined frontiers (Alcanizes Treaty,1297) and also the oldest nation-state, since the 5th October 1143

Media Monopoly Expands

Media mogul Irena Krasteva and her son Delyan Peevski, who have been criticized for concentrating Bulgaria’s media market, have acquired one more TV channel and four radio stations

Delyan Peevski

The popular music channel The Voice and four radio stations changed their owners in mid November. All five media outlets, which include radio stations Magic, Vitosha and Veselina were previously part of SBS Bulgaria group.

They have been acquired

by AE Best Success Services Bulgaria, which is believed to be linked to Peevski, Member of Parliament on the ticket of the ethnic Turkish party, and banker Tsvetan Vassilev, head of Bulgaria’s Corporate Commercial Bank.

The news comes half a year after the purchase of a large number of titles by media mogul Irena Krasteva and the recent squabbles over ownership of the WAZ assets in Bulgaria - the first ever monopolist on the local media market, dating back to the 90s - left a bitter taste in the mouth of the audience. The beginning of August saw the expansion of the monopoly after one third of the shares of top Bulgarian daily Standart were, allegedly, bought by New Bulgarian Media Group.

New Bulgarian Media Group owns the national BBT TV channel, the Telegraf daily,

Weekend weekly, Monitor daily, Politika weekly, the newly created Vseki Den daily, as well as the local Veliko Tarnovo daily Borba and the Plovdiv daily Maritsa. (Telegraf and Weekend are the highest-circulating daily and weeklies in Bulgaria.)

The monopoly is also said to hold 80% of the newspapers distribution network.

The deals are said to show that shady figures can afford to buy back shares in large numbers or artificially prop up loss-making titles and not because it is economically profitable. They are tempted by the prospect of using the media for money laundering or for promoting other economic activities from public tenders, public works, mobile telephony, energy, tourism etc.

Delyan Peevski (pictured) is believed to be just the man, carrying around suitcases full of cash, the true leader behind the media monopoly being ethnic Turkish leader Ahmed Dogan

Record marihunane smuggling A Mexican soldier stands guard next to packages of marijuana found at a warehouse in Tijuana. Approximately 17 tons of marijuana were discovered in a cross-border tunnel that appears to be one of the most significant drug smuggling passages found between the U.S. and Mexico.

Rebranding Greece Brand strategist Peter Economides known as part of the team that helped create Apple’s “Think Different” campaign in 1997 believes that Greece is at a point where an inspired and properly managed rebranding campaign could turn it into the “Apple of the Mediterranean” At a conference in Thessaloniki in November, Economides presented his ideas on what is holding Greece back and how the country could change the way it is perceived. He recei-

Irish Leprechauns

A crowd of 262 people dressed as Leprechauns gather at the Canal Theatre to break the Guinness World Record in Dublin. Irish leprechauns, tea-sipping Britons, Australian ABBA impersonators and the oldest yoga teacher on the planet were just some of the people setting world records. More than 300,000 people around the world took part in the seventh annual Guinness World Records Day, in which a number of records have already been confirmed.

ved an enthusiastic reception at the event and since then, his presentation has gone viral on the internet.

By Tuesday evening, more than 20,000 people had viewed it via the www.slideshare.net site alone.

The brand strategist says that his presentation - which describes Greece as “One of the greatest brands never to be branded,” was born from an article he wrote last year about “reimagining the future” of Greece. The presentation is an uplifting look at the country’s potential - its history, natural beauty and people - but it does not shy away from being totally blunt about the dire situation Greece finds itself in today. Perhaps the most telling point of his presentation is a look at the result of searches using Google: A search for “Ancient Greece” brings up 15.6 million results while searching for “Greece crisis” leads to 224 million results.

Economides says that any effort to transform Greece’s image must begin by recognizing what has gone wrong and just how badly it has gone wrong. “The presentation is brutally honest,” he says. “Our image is sick right now, really sick.

Branding starts with the truth.”

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interview dr goraN pitiĆ, ProfeSSor at the fefa faculty and chairman of Societe General Bank’S manaGinG Board

Cash Falls - Crisis Grows ■ By Mirjana zeC

Back in 2008, many economy experts and analysts claimed that the economic downturn, which just started to show all over the world, would take the shape of the letter “W“, i.e. the crisis would sharply reduce economic development, primarily in America and Europe, then recovery would ensue followed by another heavy decline and slower recovery

W

The events from the past few months just validate this theory, particularly in Europe. Professor at the Belgrade FEFA Faculty and Chairman of Societe General Bank’s Managing Board, Dr. Goran Pitić warns that the second crisis blow could leave more serious consequences than the first one. The socalled crisis economies would be able to pull through, but only with an abundant helping of European money or the IMF funds.

Hence, we ask professor Pitić for his opinion and forecast on the further development and repercussions of the crisis in Europe, the world and Serbia.

It is quite obvious that the logic of economic policies in financial systems has changed and, undoubtedly, huge stimuli was needed in order to cushion the first surge of the crisis. We have witnessed these stimuli being injected, either from or through monetary policy or via central banks, which reduced 22 |

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interest rates or printed more money. This was a common policy shared by all central banks. The second part of the stimulative measures pertained to supporting programmes which were supposed to absorb the impact on economic growth and employment. In theory, there is something called ’the liquidity trap’, which means that even if interest rates are reduced, businesses will not benefit much from it, or react to it. What follows is a series of dangerous deflation traps, since lower-

Regulation

Politics

Euro

The crisis has opened up all the sore spots of the European system. Greece, Italy, Portugal and Ireland are perfect examples, with bad financial regulation being the most vulnerable.

Politics certainly wriggles its way through the economy. Many economic moves, especially during the time of crisis, depend on political relations.

I am afraid that the value of euro has been pushed up by inflation, which is not visible at the moment, so it is quite possible that the euro will depreciate in the future.

ing interest rates does not result in economic growth.

There is a way out of such a situation, but it requires time and huge sacrifices. Countries are perfectly aware that there has to be an international coordinator that will deal with the problems of large-scale economies and not only emerging ones. In other words, this coordinator is supposed to provide help and make the ‘big ones’ adhere to the rules for overcoming the crisis. The IMF was seen in this role.

■ To what extent can the IMF help in the case of large economies that are experiencing serious problems?

- The trouble is that the IMF proved to be insufficiently capitalized to handle a crisis of such volume and it is only logical if some states contributed to the Fund’s capitalization. The IMF, faced with a crisis as big as this one, has changed its mandate to a certain extent and shown much more understanding for serious fiscal stimuli than in the past. From the typical IMF approach - “Tighten your belt, reduce spending at all levels, increase savings,” we have come to the philosophy “Loosen the control of spending, but still watch over it carefully, and save if and wherever you can.” The increased capitalization of the Fund serves as a guarantee that the crisis will not spread further, i.e. a guarantee that the Fund can swiftly react if the Greek crisis spills over to Europe’s peripheral zones. The most challenging part now is Italy, and this is where the biggest concerns are. In such cases and in that context, the IMF should guarantee stability, hence it shouldn’t come as a surprise that Italy has accepted the IMF as its partner.

Through a combination of different policies, the IMF makes room for policies that are conducive to economic growth, and, on the other hand, shows the necessity for the implementation of serious measures that stimulate saving. This was evident in the Greek example.

Over a longer period of time, for instance 5 to 10 years, these measures will resolve the basic problem that is evident now, i.e. the problem of sovereign debt and reducing this debt to normal levels.

■ When can we expect to see the first results of IMF’s measures in Greece and Italy?

- Currently, unemployment and recession are the main problems and it is evident that we have been hit by the second wave of the crisis. Italy has accepted IMF and its supervision, and, in the case of Greece, it is highly likely that it will follow suit. According to some signals, primarily the data coming from the industrial sector,

Germany is also in the recession zone. Let’s not forget that Germany was the driving economic force and at the core of our belief that we were exiting the crisis.

Now, it is very clear that the crisis is coming back with full force. On the other hand, the U.S. cannot restore its pre-crisis economic rhythm and its problem now is in how to come out of the recession and create new jobs.

The second problem is the issue of public debt and how to deal with it, i.e. how to reduce it. Everything that Europe is currently doing when it comes to the sovereign debt crisis leads towards an accumulation of new sovereign debt and that should be dealt with now and, particularly in the years to come.

The European Financial Stability Facility (EFSF) disposes of €420 billion and aims to increase this amount to €1,000 billion. Italy’s debt alone stands at €1,900 billion, whilst the Greek amounts to €380 billion ■ How much can the European Financial Stability Facility (EFSF), which was recently established, help?

- These two institutions have two different mandates.

The IMF is helping countries in the balance of payments problem, i.e. it renders help in balance of payment flows, strengthens foreign currency reserves and guarantees that certain measures will be applied. The second European fund has been set up with the aim of helping settling with a certain debtor – creditor relations. Its initial budget was €420 billion, which proved to be insufficient, since Italy’s debt alone stands at €1,900 billion, then there are the Greeks with €380 billion and several other similar countries. The EFSF simply cannot deal with such high debts. Hence, the plan is to increase its budget to €1,000 billion which, albeit, is considerably higher, but still not enough to handle a possible big financial shock cordeditorial@cma.rs

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in Europe, which could easily happen if the situation is not kept under control. The EFSF is supposed to prevent the problems which engulfed some EU members (like Greece) from spilling over into entire the EU, rather than solving them where they were created. Hence, the EU is trying to come up with enough capital to secure the stability of the eurozone and to maintain the longevity of the euro as the eurozone’s currency. That, at least for now, is something that all member states are working towards, especially those states that are financially powerful. That is why Germany and France lead the talks.

■ So, why is the U.S. mostly keeping mum to problems in Europe?

■ Where can additional funding be obtained, since it is rather obvious that both the IMF and the European Financial Stability Facility (EFSF) need it?

- I don’t believe that it is in anybody’s interest for the European economy to be weak and I don’t believe in theories that the U.S. ’exported’ the problem to Europe and then left it to fend for itself. I also don’t believe that a weak Europe suits America and that the survival of the entity called “the EU” is jeopardized. There are people who claim that Europe’s economic and political empowerment doesn’t suit a super-power like the U.S. since, apart from China, America would have yet another threat to its world dominance. Economically speaking, I don’t think that anybody wants such huge uncertainty and risk. China is expected to help and that is something that is definitely being discussed since the country has huge foreign currency reserves. Even the BRIC countries and South Africa have expressed interest in helping. The thing is, that with the culmination of the economic crisis the political factor takes over. In other words, they have their own terms, which are not necessarily purely economic. We need to bear in mind that BRIC countries (Brazil, Russia, India and

From the typical IMF approach - “Tighten your belt, reduce spending at all levels, increase savings,” - we have come to the philosophy “Loosen the control of spending, but still watch over it carefully, and save if and wherever you can“

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- At the G20 meeting in Cannes, the U.S. President said that it was in America’s interest for Europe to solve its problems as soon as possible and in a way that would secure long-term stability. We need to bear in mind that America has had its own share of serious problems and that not all of them have been resolved. All countries are involved in dealing with the crisis in Europe. China said that it would help European funds since it is in a good position cash wise and can ‘pump in’ certain funds to the IMF and EFSF. The U.S. needs to deal with its own internal problems and, by doing so, will contribute to global stability. It is very important for America to eliminate its problems and then give Europe a push, primarily through enabling Europe’s exports and thus creating a passage to leave the recession. Let’s not forget that the U.S. President said that he expected Chinese currency to shift since the U.S. is really suffering from an imbalance in trading with China.

For quite some time, the U.S. has been claiming that Chinese currency has been underestimated and that that has enabled China to export to the U.S., generate a huge trade surplus and create big foreign currency reservers, which it then uses to by U.S. state bonds.

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China) have their own problems to deal with and that they will also have reduced GDP in the coming period which will undoubtedly have an effect on their capacity to ’extinguish fires’ in other markets.

■ Is Europe on the right track when it comes to fighting the crisis?

- There was this ‘balloon’ that came from America, because its financial system was badly regulated. Today, we have another ‘balloon’ that is casting a shadow over Europe. Most of Europe is experiencing deflation pressure, and yet there is the grave danger for the situation to turn upside down, i.e. that everything that has been ‘pumped’ (the money) into the system has to be ‘pumped out’ at a certain point. Is everything that is currently inflated, like huge sovereign debts, enormous amounts of money that have been spent, big infiltrated risks, and large demands put on certain countries going to result in the euro’s future being endangered and having to deflate too? I am afraid that the value of euro has been pushed up by inflation, which is not visible at the moment, so it is quite possible that the euro will depreciate in the future. Are we going to have a new financial

balloon that will spoil the balance of power between the euro and other currencies? It is difficult to ascertain how high the deflation will be - 5% or 40% - and what will happen next. At this moment, there are so many new open issues starting from whether the U.S. dollar should still be considered the global currency or should another currency emerge as the global leader, as well as the issue of how stimulating the euro is for those economies that are currently suffering and have no influence on European Central Bank’s policy. In addition, there is the question of the establishment of a new European Government, which should bring order into the fiscal systems of member states and enforce the rule that you cannot behave irresponsibly in your own fiscal system when there is a joint monetary policy in place.

■ Did the U.S., Europe, Japan and some other countries have to give so much of their taxpayer money to save the banks?

- There are institutions that are so big and important that they should be protected from anything bad happening to them. If these institutions did fold, then we would have something that is called a “contagion effect”,

tional pressure on the economy and, in the case of Serbia, reduce project funding. Banks will have to get rid of high-risk clients and there will be fewer funds available to good clients. All of this imposes a great need for our state to improve its liquidity and help the companies which are implementing state-funded projects. In other words, the state should insist on the bylaw, which shortens payment terms to a maximum of 60 days, to be implemented immediately since everybody involved in the process should be disciplined and both state and local debts need to be drastically reduced. By doing so, substantial funding for large and small companies alike will be secured, which would help them to survive this period and would also increase liquidity in the entire system. Economic growth depends on available loans and I believe that most banks will try to adhere to the instructions that Societe Generale Bank got from its

The problem with the liquidity of the U.S. dollar is growing in Europe since the capital inflow from American funds has been reduced so Brussels has turned to China and BRIC countries for fresh funding

i.e. the system risk would spread rapidly and would burst at the seams. Simply put, some institutions in the system need to be saved at any cost. The European governments have said that it was imperative for the banks to survive and have sufficient capitalization in order to provide security and maintain clients’ trust. They also had to continue with performing their basic function, which is retail and corporate crediting in order to prevent the side impact to the economic capacity from happening. Now, we have the second impact since banks need to be recapitalized. Large commercial banks have to restructure their portfolios and capital structure because of the reduced capital influx to Europe, especially the ones from certain U.S. funds. The problem of U.S. dollar illiquidity in Europe is growing because of the existing risks. The banks had to write off or reduce their claims toward Greece and that affected their results and increased the need for additional recapitalization.

■ How much of that will influence the Serbian economy?

- Certain banks will have to ‘clean out’ their portfolios and reduce their credit exposure. That would put addi-

headquarters in France which stated that we need to exercise a high level of responsibility towards our clients.

That means that we need to find a way to accommodate our clients during these trying times. In certain cases that means restructuring, and in other cases debt consolidation, but there always needs to be an understanding so we can help businesses since the bank exists to service its clients. Not all banks will have the sufficient capacities to do that since the financial situation in Europe is getting more strained as we speak - much more than two years ago when the crisis was in full swing. ■

New science

This crisis is challenging some established economic theories, but, as it turns out, there needs to be an invisible arm to regulate the market. The state is no longer a good contractor in the market game.

The state needs to lead economic policy and intervene when needed, but only in the short term. The market-orientated proponents are becoming popular again, since it has become obvious that the state’s extensive involvement is not good for the economy’s future. More and more people agree that there should be a limit to state intervention, since, if that doesn’t happen, the private sector will be pushed out. cordeditorial@cma.rs

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focus

Public Private Partnership Law The Public Private Partnership Law, which was publicly presented by the National Alliance for Local Economic Development (NALED), in early December, is about to be enacted in the Serbian Parliament. Legislators say that the law is primarily based on the principle of economic efficiency.

With the aim of presenting our readers with the relevant opinions and stances on the importance of this law, would you be so kind as to answer the following question.

What kinds of legal and institutional infrastructure and projects are needed in order for the public and private sector in Serbia to establish optimal cooperation?

Enable Private Funding Nebojša Ćirić, Serbian Economy and Regional Development Minister

T

he Public Private Partnership and Concession Law is supposed to facilitate construction of public infrastructure and increase the quality of services rendered to citizens and society. Objectively speaking, municipalities and towns don’t have enough money to do everything that they need to do in infrastructure and other facilities they need. This law would enable private funding for the construction of roads, nurseries, health clinics, sports and other facilities through public-private partnerships

Since none of the Serbian municipalities have enough capacity for what they want to build, a committee will be put together to help them with project preparation and in choosing a partner based on strict rules. This should attract both domestic and foreign investors, as well as banks that will fund and manage the projects. The law also enables long-term cooperation between public and private partners in order to secure financing, reconstruction, management or maintenance of infrastructure and other public service facilities.

So far, towns and municipalities have had to obtain the government’s approval for every single project that entailed infrastructure works or in building a facility. Concerning the concessions, local authorities are entitled to assign their natural resources to private partners through concessions, but this pertains only to those resources that these authorities have jurisdiction over.

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The new law introduces a principle, which says that, before a project gains approval, an economic efficiency test needs to be carried out. Only after an implementation approval is obtained, the relevant authority can make a decision whether to go for a public-private partnership or concession. The selection of a private partner is done through public procurement, and, if we are talking about assigning a concession, that is done in line with the relevant law.

In addition, the risks are shared amongst project participants who work in those segments that they are able to manage the best. Since none of the Serbian municipalities have enough capacity to find private partners for what they want to build, a committee will be put together that will help them with project preparation and in choosing a partner. The law can be applied to all public projects and services that come under state, province, town or municipal jurisdiction. The partnership between public and private sectors needs to bring in fresh money, enable the much faster construction of facilities and better quality of services. These are long-term projects, so the shortest duration of such projects is five years. The said projects will be implemented in areas like health, education, sport, tourism, transport infrastructure, utility services, energy efficiency, culture, retirement homes etc.

Improve Legal and Economic Mechanisms

P

Vladimir Čupić, Chairman of NALED’s Managing Board and Hypo-Alpe-Adria Bank’s Executive Board

ublic private partnerships can be organized as institutional or contractual partnerships. The reasons why the enactment of the Public Private Partnership Law is suggested can be found in a growing need for the construction of a new public infrastructure, investing in public resources and offering public services in the Republic of Serbia which would lead to an increased demand for private fund-

Private Capital Needs to be Protected

or form, but even the illusion of misuse. This is also important because the impression that the public gets if misuse happens, even on a small scale, can turn them against public-private partnerships in the long run.

The second thing that is required is independent and competent institutions. We need an expert body that will offer advice to oliVer duliĆ, Environment, Mining local self-governments when establishing partnerships. This body and Spatial Planning Minister can be extremely helpful in making sure that contracts in public-private partnerships protect public interests and point to any possible irregularities in procedures. Apart from that, we need an he things that are crucial for public-private partnerships efficient judicial system that will make both public and private being successful are legal frameworks, institutions and partners feel safe and that, in the case of a dispute, both of them projects. The legal framework needs to be such that it can count on a fast and unbiased resolution. meets several, seemingly conflicting, priorities. One such priorThirdly, we need project ideas and good quality feasibiliity is that the interests of private capital need to be adequatety studies for public-private partnerships. Whenever the public ly legally protected, but not at the The highest standards of transparency, sector has to carry out certain works expense of the public sector’s legitor services, we need to ask ourselves legality and supervision are required to imate interests. The second priority whether the private sector could do prevent not only misuse in any form, but that too, but at lower cost. Hence, we is for the procedure associated with even the illusion of misuse the setting up of public-private partneed to be inventive in identifying arnerships to be quick and efficient enough as to suit the requireeas where public-private partnerships can be formed and be rements of the private sector for fast capital return, as well as the alistic and precise in drafting feasibility studies since the findings needs of the public sector for project implementation. At the in those studies can be instrumental in deciding the way in which same time, the highest standards of transparency, legality and a public service will be performed over a period that can last up supervision are required to prevent not only misuse in any shape to several dozens of years.

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ing of the aforementioned projects. Furthermore, as a result of insufficient public funding and lack of funding from the state which is needed for development and modernization of transport and utility infrastructure, it is absolutely vital to immediately improve legal and economic mechanisms so that we can attract private investments. Global trends show that the biggest PPP projects are realized in areas like energy, green economy and transport.

In addition, new formats for the efficient reduction of investment risks through the implementation of the principle “the end user pays” are needed. Also, new formats of financ-

Despite the occasional re-evaluation of whether the PPP concept is outdated because of the global economic downturn, it is obvious that PPP projects still have a future. ing of infrastructure, like debt securities, are wanted.

Despite the occasional re-evaluation of whether the PPP concept is outdated because of the global economic downturn, it is obvious that PPP projects still have a future. The crisis that has enveloped state finances all over Europe can be viewed as a new chance for PPP since governments are looking to reduce costs wherever possible. This is where new and innovative formats of PPP come in, together with increased mobilization of private capital.

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focus

Possibilities For Capital Investments Đorđe Staničić, Secretary General of the Standing Conference of Towns and Municipalities of Serbia (SKGO)

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part from the Public Private Partnership and Concession Law, Public Procurement Law, Public Utility Law (which is also due to be debated in parliament) and Public Assets Law also make the required legal infrastructure. The new legal framework opens up the possibility for capital investments in towns and municipalities to receive funding by switching services and project funding, whether fully or partially, to the private sector. In order to have balanced relations between the public and private sectors, public interests need to be clearly defined and both sectors have to share the same interests. In the case of a public partner, those are better quality of services, which, in turn, leads to better living standard for citizens. For the private sector, it is economic profit. SKGO thinks that enact-

It is very important to properly train staff that will be engaged in implementing legal regulation and to provide proper interpretation of legal provisions ing the Public Private Partnership and Concession Law is only the first step and that further elaboration of bylaws, that would regulate this area in a proper way and offer equal chances for both public and private sector, should ensue.

Regulatory framework needs to be flexible enough to withstand many variations of cooperation between THE public and private sectors in areas of public interest and construction of infrastructure. PPP could be a vehicle for the implementation of projects which, so far, have been funded by municipal and town budgets like water supply, waste management, hydro-electric power plants, parking lots, schools, nurseries, sports halls and health clinics and not commercial projects like hotels.

Small projects are a limiting factor in the implementation of PPP. Experiences from Croatia have shown that only those projects that are worth 10 million Euros and over are economically profitable since PPP procurement procedures are very demanding and costly.

In order for the legal framework to function properly, we need strong institutions. The institutional structures that support PPP projects are defined by the draft law. At the national level, they are the PPP Committee, and, at local level, advisory bodies. How much will the institutional infrastructure prove to be a good basis for PPP support depends on how willing the state authorities, local self-governments, courts and state administration are, in the widest sense of the word, to apply the law in a way that would result in accomplishing its aim which is in raising the level and quality of invest28 |

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ments in areas of public interest with the end goal being improving the performance levels of public activities. It is very important to properly train staff that will be engaged in implementing legal regulation and to provide proper interpretation of legal provisions.

The state institutions need to give strong support in improving local capacities for preparing, approving, implementing and supervising both contractual and institutional PPPs.

Importance of Coordination Darko Jovanovic, Partner at Karanović & Nikolić Law Firm

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n order to have successful PPP, we need to fulfil many prerequisites, the main one being having an attractive, clear and coherent legal framework that provides the highest level of legal security. Then, there is the question of drafting a PPP project feasibility analysis, which contains an evaluation and allocation of all the risks involved, revenue and cost projections and financing structure. Also, coordination within the public sector is very important for the success of PPP, as is having an efficient administration which is ready to meet complex requirements associated with contracting and realization of this format of cooperation between public and private partners.

Having a supervisory structure, which would monitor the contracting procedure and realization of PPP projects, is also one of the important premises.

European practice has shown that PPP projects can be successfully implemented in areas like transport, infrastructure, energy, water supply waste management and utility sector in general. In their advanced stages, PPP projects can be implemented in education, social and health protection (construction of nurseries, schools, health clinics etc.).

In order to have successful PPP, we need to fulfil many prerequisites, the main one being having an attractive, clear and coherent legal framework The initial stage of putting together a legal framework for PPP in Serbia is based on the new Public Private Partnership and Concession Law. The law stipulates what PPP contracts need to contain, allows assigning concessions by all levels of authority, including public enterprises, and establishes the PPP Committee, which is formed by the government.

I expect that these basic premises for implementation of PPP projects in Serbia will be fulfilled soon. Once this happens, the public sector will have to exercise caution in choosing pilot projects since setting up project goals that are too ambitious, without having previously acquired experience in their realization, could lead to the PPP project structure collapsing and these projects being discredited by their end users for whom they are originally intended.

interview duško VujošeViĆ, coach and PreSident of JSd PartiZan

Facing Everything Ahead ■ By Radmila StaNkoViĆ

In basketball his name is a synonym for success. There are dozens of entertaining and funny testimonials through which basketball fans praise Duško’s personality and work ethic - Dule Vujošević could even make Božidar Đelić a top-notch centre or the zone that Duško Vujošević masterminds is prettier than Zona Zamfirova and stronger than the Twilight Zone....

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city of Montenegro). He was only five when he came to Belgrade. e was only 17 years old when he realized that He remembers his childhood as being happy and ordinary. When he had no talent for actually playing basketball we asked him about his upbringing, he said the following: and was much better at coaching. He says that “My father was a communist, but did not impose his beliefs the realization that he was not of player mateon anybody. He truly believed in those ideas. My mother, who is rial was very painful for him to accept. “The pain still alive, is a religious woman and the two of them had a relaand love for something that you are not good at is equally tionship full of tolerance. Because of that, us, the children, nevstrong,” he says. At the age of 27, he became the head coach of er felt pressured and always had the freedom of choice. From a Partizan and won the Yugoslav Championship. Only two years very early age, I felt completely free. My convictions were not later, Partizan also won the Radivoje Korać Cup and Yugoslav forced on me and I went through life with my eyes wide open.”

Cup. He trained players in Spain and Italy, later in Russia, then went on to coach a rival team, I get very excited when I see that ■ What is the best and most valwhich was frowned upon by Paruable thing that you learned in tizan’s fans and spent some time somebody is talented and has the your family? in his hometown of Podgorica. potential to become a great player - Maybe the said tolerance. And, When he came back to Partizan, in even more importantly, to be ready and boldly face everything 2001, he created a basketball miracle. In the period from 2002 ahead of me. Just like Hamlet said – “Be prepared!” to 2010, BC Partizan won state championships, two Cups and four NLB League championships. Vujošević became the most ■ Do you remember what you dreamed about when you successful trainer in the club’s history. were a boy?

As of October this year, Duško Vujošević (now aged 52) is - Just like any young person, I had romantic expectations. I the President of the Yugoslav Sport Association Partizan. He experienced falling in love and being disappointed. I really is married to Ana, who, instead of pursuing a career following loved basketball and since I had no talent for playing it, I her graduation, decided to stay at home and raise their son started working as a trainer. I loved to travel, and Yugoslavia Luka who recently turned 11. His father has been paying for was ‘the world’ to me. I did not want to live anywhere else Luka to have a coach that he likes, trusts and who will train but Yugoslavia, and I couldn’t do anything when the country him for playing a team sport one day. started to fall apart.

Vujošević was born in Titograd (today’s Podgorica, the capital

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Personalities

Success

Books

I use my time to find out about the personalities of my players to motivate them.

Success can be a very dangerous thing.

You need to know how to handle it.

I love books and I am currently reading a book by the Hungarian writer Tibor Déry called ‘A Long Warm Autumn’.

■ How would you describe your talent for being a successful basketball coach?

- You cannot describe talent in general. It is having a gift for a certain job, like a hidden virus, or in your DNA. You just feel it and know you will be good at it even before you are trained in how to do it.

■ Did you think that being a successful trainer was enough, and did you think that you had an obligation towards young players?

- Most of my career days were spent in Yugoslavia, i.e. Serbia and Belgrade, with young people who were talented for basketball but were not yet “players”. I couldn’t become a successful trainer if I was not a successful educator. That doesn’t apply only to me, it applies to anybody who works with young people. Simultaneously, you have to help them to become the best people possible. Even today, I feel that delight when I create something. I get very excited when I see that somebody is talented and has the potential to become a great player. Of course, I am aware of all the perils that await young people and the complexity of the task in learning how to deal with fame and everything that goes with it.

seen when they drink, but I say that it is even easier to discover their true personality in a game. You can easily discern if somebody is selfish, is vain or is prone to manipulation. When I see that somebody is a bad person, regardless of their talent, I will do everything in my power to stop them from becoming a great player.

■ It’s been almost a year since you’ve stopped training Partizan. Can you see your legacy in players, i.e in their game and the teams atmosphere?

- At the risk of sounding arrogant, yes, I can. I think that I have set up a system, but in order for this system to continue, it needs to develop. My work now does not resemble what I did

■ Apart from hard work, people say that good psychological analysis of each individual player is required in training them to become top players.

- You need to dig deep into the individual personalities of each player you are working with so When I see that somebody is a bad a year or two ago. New techniques that you can motivate them. When person, regardless of their talent, I will are being used all the time, the talking about opposing players, finding out the structure of their do everything in my power to stop them game keeps becoming better. The people who lead Partizan behave personalities is not that easy. It is from becoming a great player in exactly that way. important to have certain assumptions – who is the leader, who takes on the responsibility in ■ What is your reaction to disorderly conduct by fans and crisis situations, who usually withdraws, who cannot deal with is it true that certain clubs encourage such behaviour? tougher games, who reacts aggressively or is additionally mo- Different clubs from different sports behave differently. It tivated if the game does become tough... I use my time to find all depends on who leads them. I really care about our fans. out about the personalities of my players to motivate them.

As you know, one of the main functions of sport is to alleviate accumulated social tension that is a burden to people.

■ Which player, that you’ve trained, has undergone the Bearing in mind that we are sitting on a “keg of gun powder” biggest transformation, both as a player and a human? because of the economic crisis, and other problems like Ko- Many of them, but if I have to single out one I would say (Presovo, it is very difficult to control this type of environment. drag) Danilović.

What we did, and I am talking about the team I worked with, was not negligible. I think that we did a lot, and, together ■ Can you be a top player if you have a bad attitude? with Partizan’s fans, we have succeeded in helping them - Yes, that is possible. But that is more likely to happen in inbecome some of the most reputable fans in Europe. I candividual sports, rather than in team sports. Team sports renot say for sure, but I think that, in some situations, certain quire a player to have certain moral attributes since being a clubs attempt to cause riots and turmoil to put pressure on good person is a required trait if you want to, let’s say, work judges, opponents and their fans in order to justify the monin a submarine. People say that somebody’s real personality is cordeditorial@cma.rs

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ey spent on them. These clubs know how to produce hate and articulate it and that is very dangerous.

■ When somebody wins as many titles as you have and are so successful in their career, does that translate to the person having more responsibility towards their country or do these successes determine them as individuals that are no longer tied to any particular country?

- Success can be a very dangerous thing. You need to know how

the seats are filled and young European players are given a chance to see the champions at work. I am a proponent of the NBA being this vertical driving force that motivates the best European players who hope to play in the NBA one day. The lockout is expected to end around Christmas that means most of the American players will go back. European clubs, who hired NBA players, knew it was only a short run and that they should not base their entire season on it.

■ You were born in Yugoslavia, but your descendants come from the Kuči tribe. You grew up in Belgrade and are a citizen of the world. When is it most difficult for you to articulate what you really are – a Yugoslav, a Montenegrin etc.?

- I have never had a problem with that. I did not choose what I would be. I loved Yugoslavia very much and I still consider it my homeland, I love Belgrade and when I am far away from it, I feel this force in my gut that is pulls me back to it. My father was a Montenegrin, so am I. It would be disrespectful of me to change that at the ripe age of fifty two. That would be crazy. Let’s say that I am a Montenegrin, living in Belgrade, longing for Yugoslavia.

■ If Montenegro is admitted to the EU before Serbia, do you think you will feel sorry for being a Montenegrin in Serbia rather than a Montenegrin in Montenegro?

- No, on the contrary, I would be pleased to see any of the ex-Yugoslav republics becoming EU members, especially Montenegro.

■ What is the to handle it and everyone deals with it in Generally speaking, having the lockout is a first thing that a different way. In my case, every single good thing for European basketball since it comes to mind time I am successful I feel an obligation made the U.S. players come to Europe when you say to repeat that success and raise my bethat the former Yugoslavia was a better place to live in? haviour to a higher level that corresponds to this new success.

What do you miss most about life in Yugoslavia?

I see myself as a citizen of the world and I think that people - This great and beautiful country was a wonderful opportuwho accomplish the most should be the first to respond to an nity for everybody, particularly for sports. It was sometimes invitation to play for their national team. In that light, I really more difficult to win the Yugoslav championship than the don’t understand certain people who are quick to turn down European. The team that was best in Yugoslavia could have the opportunity to play for their national team but this hapconquered the world. If it weren’t for the wars, we would have pens in our country more than in others. stayed together and moved forward in accordance with the time that brought new development imperatives. Yugoslavia ■ Do you know that for fact? would have been a very powerful country. Instead of that, we - Of course I do. saw a sad, tragic and undeserving end.

■ Do you think that the NBA lockout will disrupt the de■ You are one of those public figures that speak their velopment of European basketball bearing in mind that mind. Did it harm your career and if you could have done many NBA players play in Europe and it is highly likely something differently, would that entail not speaking that, once the lockout is finished, they will return to your mind as often?

U.S.A.? What is your view of this problem?

- I despise lies and I think that it is dishonourable to listen - I think that, generally speaking, having the lockout is a good to lies and not react to them. Simply put, I cannot live under thing for European basketball since it made the U.S. players the burden of unspoken words. Of course, everything has its come to Europe. They brought quality, and this quality was price, which is high, but that also gives a person power and beneficial for basketball in Europe, they drew more fans, 32 |

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self-respect. I am not ‘the apostle of truth’ because nobody is completely clean, but I refuse to go below the red line whether it be everyday communication or work.

■ Sport has often played a part in political games. How does that work in practice and have you ever consented to it?

- Apart from football, no other sport in Europe is profitable.

However, there are many other national interests that are tied in with sports. Yet, you cannot do anything without money that usually comes via political channels. I wouldn’t say that politicians were particularly successful in determining sports results. I think that the secret of Partizan’s success is that we were devoid of politics, since it was sports people who managed to club, and the club was only concerned with a ball game, and not some other games. I am not a member of any political party, but I usually vote for the people that I see as being able to secure better future for my children. In that respect, I am not interested in the political interests of the club I belong to.

for those paintings. I am especially fond of Ivan Tabaković who was prone to wonderful experiments, especially in the second half of his life. If we are talking about living painters, I love the work done by painter Vojo Stanić who lives in Herceg Novi. Why is that, I cannot tell you.... It’s just like being in love.

■ What is your view of the road that Serbia needs to take in order to join the EU? - The road is narrow and is made even more difficult due to

■ Money has always been the supreme deity in our lives, especially in sports. How does that relate to players and how did you manage to survive without being so concerned with making money all the time?

- I have never used basketball as an indirect way to get to something that I really love since everything I have ever loved is basketball. The money, of course is needed and I have never run away from it, but it has never been my primary concern in life. I was not that successful in trying to convince the playthe situation in Kosovo. Justice ers that they should play It is quite clear that Europe doesn’t want to has not been done in the case of basketball for other rea- take in just Serbia into their community, since Serbia and the principle of unsons like self-realization, Serbia would then block Kosovo’s accession changeability of state borders. success or luck and that There are even claims that Serbia lost the war with NATO. money is a sort of graph that will follow their success. Getting Like Serbia was the one to start the war! In a conflict with advanced payment is the most dangerous thing.

NATO, small countries usually loose. It is quite clear that Europe doesn’t want to take in just Serbia into their community, ■ Is there any truth to stories that you have no room in since Serbia would then block Kosovo’s accession. On the othyour flat since you have over 10,000 books? What is your er hand, it is not realistic to expect Serbia to renounce a part favourite read these days? of its territory and be happy about it. Since Serbia has more - You should ask my wife about that. She is right to go crainterest in becoming a part of the EU than vice versa, our polizy since our flat looks more like a storage unit. We did buy ticians need to behave in a very delicate manner and properly a somewhat larger flat so we can breathe more easily. I love evaluate what we can optimally achieve. books and I am currently reading a book by the Hungarian writer Tibor Déry called ‘A Long Warm Autumn’.

■ What do you see as the biggest problem in the Serbian political scene today?

■ The public also knows about your hobby of collecting - What I am most concerned about is that, in this very difficult valuable paintings. Which painter do you prefer and why? situation, which is, in a way, crucial for the future of our peo- Some people invest all their money in houses, yachts and holiple, there is no consensus and that most of the politicians put days. I spent most of my money on something that is not liqtheir personal interests ahead of the state, whilst showing no uid capital or a guarantee at a time of crisis when money stops regard for the dramatic situation that we are in. I constantly coming in. But I love these paintings. They serve my need for keep thinking that they will acknowledge what people feel beauty and peace. Actually, my passion for collecting has beand will act accordingly. ■ come rather unhealthy, but it is only based on my immense love cordeditorial@cma.rs

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media the 2nd reGional PreSS media Summit

Optimism Prevails Over Pessimism The second Press Media Summit, organized by ABC Serbia, the Serbian Media Association and Business Dialogue, took place in Belgrade. Štampa System, Serbian Post Office and CocaCola Serbia sponsored the event

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pen to the extent that many had prever 200 of the top repredicted after all. sentatives of publishing “Just like big media companies companies attended the abroad, Serbian media companies have gathering of regional print also experienced severe problems due media leaders from Slovenia, Croatia, to the economic crisis. In Serbia, the Serbia, Bosnia & Herzegovina and Alsituation is far from ideal,” the Head of bania who all assembled at the Hotel the Delegation of the EU to Serbia, VinContinental. cent Degert said. He went to add that After a full day of discussions and national media have survived after all. presentations, the overall impression “All over the world, 1.7 billion peowas that the entirety of the print meple read newspapers, which is a quardia in the region has been subjected ter of the adult population. This inOpto the same kind of pressure of which timism formation the economic cri”Compared to last year, confirms that print sis and local politics are the most nothing much had changed media is far from its demise.” – Degert common. In addiin print media, with the tion, there is a lack exception of lawlessness said.

He outlined thof proper regulabeing more widespread” at the crisis had tion, with existing - Veselin Simonovic, reduced the press laws not applied, particularly in the Chairman of the Serbian media’s revenue by 17%, adding that case of advertising Media Association the drop in circulaacross media. tion figures was much smaller.

On the other hand, the summit par“It is not so bad if we consider how ticipants came to the unanimous conother industries have fared,” Degert clusion that print media in Serbia and said and underlined that the media the region still holds a strong position play an important role in society and and can exert great influence in the rehave a lot of responsibility, hence their porting and information segments, as business interests and the interests well as advertising vehicles. of society need to match. Executive The worst-case scenario, in Director of the European Newspaper which the Internet would push aside Publishers Association (ENPA), Frantraditional print media, did not hap-

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cine Cunningham, was also rather optimistic and said that the fact that 1 in 3 people read newspapers every day was encouraging.

“According to data collated by the ENPA, which assembles around 5,200 newspaper publishers who publish close to 150 million copies of newspapers every day, four out of five highly educated Europeans read newspapers,” she said and added that print media was not a thing of the past, rather the future.

jeleNa drakuliĆ petroViĆ and dragoljub ŽarkoViĆ

milica SteFaNoVic, juergeN berNkopF and robert Coban

final draft of this StratIn opening the second Press MeEconomic crisis egy includes 13 out of dia Summit, Chairman of the Serbian “Just like big media companies 14 recommendations Media Association, Veselin Simonović, abroad, Serbian media companies have submitted by the me- also experienced severe problems due to said that, compared to last year, nothdia. Dragana Milićević the economic crisis. In Serbia, the situation ing much had changed in print media, expects that, in the is far from ideal.” - Vincent Degert, Head with the exception of lawlessness beof the Delegation of the EU to Serbia. following few years, ing more widespread. the Strategy will have “The market is chaotic and has ENPA a strong influence on collapsed, but all print media has “According to the data collated the overall developsurvived” – Simonović said and menment of media in Ser- by the ENPA, which assembles around tioned the frequent “attacks” of NGOs 5,200 newspaper publishers who pubbia. on media. lish close to 150 million copies of newsThe presenta- papers every day, four out of five highEditor-in-Chief of Vreme weekly, tion by Chairman of ly educated Europeans read newspaDragoljub Žarković, is also not pesManaging Board of pers.” - Francine Cunningham, Executive simistic and says that the future of Director of the ENPA. Ljubljana-based ‘Delo’, print media will largely depend on Juri Giacomelli, atthe response to the question – why is Media Development Strategy tracted a lot of attensomething happening and in whose ”The media community, includtion. He talked about interest? a subscription system ing the Media Association, has played “Newspapers need to explain a great role in creating the Media in Slovenia that still Development Strategy since the final events, rather than just write about hasn’t been intro- draft of this Strategy includes 13 out of them,” Žarković said and added that duced in other region- 14 recommendations submitted by the the future of print media has only media.” - Dragana Milićević Milutinović, al countries. Thanks to The State Secretary. just begun. Director of Serbian Post collaboration with the Office, Goran Ćirić, Editor-in-Chief of spoke about the latest trends in the FoNet, Zoran Sekulić Croatian print media, with special emand representatives “Albanian print media suffers from same phasis on the ratio between sales and of Croatian, Slovenian “diseases” as the media in other parts of advertising revenue in the company and Albanian media that publishes “Jutarnji List”, the daily also participated in the region.” - Erl Murati, Editor-in-Chief of with the highest circulation figure in the summit organized Tirana-based daily “Gazeta Shqiptare” the country. This topic is especially

by ABC Srbija. interesting due to the increasingly difSlovenian Post Office, almost 70% of Managing Director of Ringier Axel ficult economic situation and substanthe daily sales of a tabloid called “SlovSpringer, Jelena Drakulić Petrović tially reduced advertising revenue. enske Novice” come from subscriptalked about the company’s experiencEditor-in-Chief of Tirana-based daitions. es a year after a so-called integrated ly “Gazeta Shqiptare”, Erl Murati, gave Media Director at Europa Press newsroom was initiated, which is the an overview of the current situation in Holding from Zagreb, Tomislav Wruss, first of its kind in Serbia. The experiences of Ringier Axel Springer show that a lot of work and effort was required to carry out the project, whilst readership figures, when it comes to print media published by the company, did not change from last year. On the other hand, having an integrated newsroom has increased the number of daily visits to the Blic website.

The State Secretary in charge of media issues from the Culture Ministry, Dragana Milićević Milutinović, pointed out that the media community, including the Media Association, has played a great role in creating the Media Development Strategy since the cordeditorial@cma.rs

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possibilities for advancing that collabothe Albanian print media. According to ration. She also announced an impendhim, Albanian print media suffers from ing meeting between the Group’s memsame “diseases” as the media in other bers and publishers in order to explore parts of the region, with the exception the venues for more efficient cooperaof circulation figures in Albania that detion in 2012. clined much more than those in other Executive Director of Postal Servregional countries. ices at public enterprise Serbian Post Corporate Affairs Director at McOffice, Professor Vladeta Petrović, PhD, Cann Group, Vanda Kučera, opened the drew a parallel between the situation second panel discussion. She talked in Slovenia and Serbia. He gave encourabout the research on the benefits of aging information about the company’s advertising in print media. One of her project, which pertains to introducing conclusions was that print media has a newspaper subscription system realbeen put under a great deal of presized through courier service. Petrović sure from the so-called “new media”, also outlined that the Serbian Post but, still, they are in the top three most Office was already distributing a subeffective advertising vehicles. She also stantial number of periodicals. announced the launch of a campaign At the end of the conference, called ‘Ultimate Newspaper AdvertiseManaging Director of Centroproizment’, which is supposed to draw atvod Holding, Nemanja Popov, gave tention to that form of advertising. a very optimistic presentation. For Editor-in-Chief and Director of FoNet years, sluggish newspapers sales in news agency, Zoran Sekulić, talked about Serbia has been one of Media Development “For years, sluggish the biggest problems Strategy and pointed newspapers sales in of the country’s print to the problems enmedia. Popov talked countered by media Serbia have been one representatives in of the biggest problems about the print retail sales system, imdrafting the final verof the country’s print plemented at newssion of the Strategy.

CEO of Color media” - Nemanja Popov, stands, and promised Managing Director of what publishers have Press Group, Robert Čoban, talked about Centroproizvod Holding been eagerly awaiting for years – reguthe business patlar payment and obtaining daily terns in the contemporary magazine sales results. market and a potential co-existence The conference was very upbeat with digital publications, as well as with over 200 participants from the Color Press Group’s development stratentire region in attendance. Director of egy for the region.

Communis Agency, Ivan Stanković was Senior Research Advisor from GfK the conference mediator.

Austria, Juergen Bernkopf, addressed In summing up this large-scale sumthe summit participants on behalf of mit, we can conclude that nearly all GkF. He gave a presentation of a methregional publishers are facing more or odology used in ascertaining readership less the same problems. On top of the figures for print media and explained political pressures and economic crisis, different research methods used, in adregional print media gets no support dition to various research approaches from society, unlike in developed Eurothat are adapted to different European pean countries. By organizing this sumcountries. mit and as well as other campaigns, the Chairperson of the Advertisers publishers are trying to protect their Group at the Serbian Chamber of Comown interests and have proven their merce, Milica Stefanović, talked about strong resolve to fight for their place on the connection between Serbian adverthe regional media scene. ■ tisers and print media, as well as the

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Dragana Milićević Milutinović, Francine Cunningham and Ivan Stanković, moderator

Zoran papić and jelena Drakulić Petrović

Erl Murati Editor in Chief, Gazeta Shqiptare

Tomislav Wruss, Board member in charge of media EPH

adria media team

DEC 2011 BUsiness LeaDer’s meetinG Point

PagE 40

BraNislav gruJić,

PagE 42

Miloš MiliNović,

Proprietor and Director of PSP Farman Company

director of Energoprojekt-Energodata a.d. company which operates within the Energoprojekt system

PagE 46

PagE 49

Dispute Over Eurobonds

U.S. Billionaire Warren Buffett visiting Japan

we all have the same Problems we Felt the Crisis eurobonds sparks New storm

buffett sees investment in Japan

Business Dialogue 01

Enthusiasm “For every sale you miss because you’re too enthusiastic, you will miss a hundred because you’re not enthusiastic enough.” Zig Ziglar quotes (American motivational Speaker and Author)

Piraeus bank

Donation for Kragujevac Babies From mid November, the Gynecology and Obstetrics Clinic in Kragujevac had a new C2000 Isolette incubator functioning, donated

by Piraeus Bank, as part of the “Battle for babies” action

The Health Centre in Kragujevac was on top of the list of priorities according to a need for new equipment list, and Piraeus Bank has allocated the donation to this institution for that reason.

The ultimate goal of the project “Battle for babies” was fulfilled on the 3rd November Miroslava Nešić Bikić (right), and veran Matić when it was announced that funds for the purchase of 100 new incubators were secured. Some of ordered incubators have already been delivered to health institutions across Serbia, while most of the equipment is expected to be at their intended destinations soon.

On the occasion, Miroslava Nešić Bikić, Piraeus Bank Marketing and PR manager said: “It is my great pleasure that we, collectively, were able to realize this project so quickly and offer help to those who need it most. Piraeus Bank, in its operations, pays great attention to providing assistance to individuals and institutions that need our support. Premature birth is a condition that is unavoidable; however, we must fight for the children. Every baby is a treasure of our country and these are values that we stand for. At this time, we opted for Kragujevac because we became aware that there was a great need for a new incubator in the Health Centre of Kragujevac. I want to emphasize that we are obliged as a society to give our best to fight for what are our essential values, and that is the fight for human life.”

Prof. Dr. Slobodan Obradovic, Clinical Centre Kragujevac Director thanked B92 and Piraeus Bank for the organization and participation in this humanitarian action: “Our need for incubators is met with this donation. I am convinced that at the end of this campaign our Neonatology Centre will get enough equipment so that our babies will have a better chance in their heroic struggle for life.”

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strauss

88 December 2011

MERCEDES

The B-Class: Heralding a New Era Substantially more agile and efficient, but as comfortable and spacious as ever – the new B-Class from Mercedes-Benz is a winner on all fronts. The vehicle's lower height and more upright seat position provide for a first impression that hints at the compact sports tourer's dynamic credentials The entire drive programme is completely new: four-cylinder petrol and diesel engines with direct injection and turbo charging, dual clutch transmission and manual transmission. Several new assistance systems support the driver. The fuel consumption of the new B-Class undercuts its predecessor by up to 21 percent.

This generation features new petrol and diesel engines as well as new manual and automatic transmissions. The simultaneous development process enabled perfect coordination of engines and transmissions, e.g. with regard to implementation of the ECO start/stop function which features as standard on all B-Class models.

This model is a typical Mercedes sports tourer, offering plenty of space combined with impressive dynamic performance as a hatchback saloon. The characteristic lines of the exterior design indicate both of these attributes: both front and rear sport a width-emphasizing design, with a wide, prominent grille and headlamps extending along the sides at the front while the rear end features a wide rear window, two-piece taillights with horizontally offset meander and

Children Paint the Mugs

The drawings made by the children from the Jovan Jovanović Zmaj orphanage and children shelter have found their way to Doncafé mugs

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This campaign was implemented in the framework of the project called “Doncafé and children are painting your view of the world” with the aim of donating 50 dinars from each sold package which contains a coffee mug and two 200 gr packages of Doncafé Moment coffee.

The money will go toward purchasing a central boiler for the orphanage and equipment for a sensor room at one of the wards in the Centre for Protection of Infants, Children and Youth. |

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a large tailgate with low loading sill.

High-quality materials and finely structured surfaces, stylish details, precision workmanship and a new spaciousness – the interior of the B-Class defines a whole new benchmark in the compact segment. Many features have been the reserve of higher classes of vehicle to date and embody MercedesBenz’s special understanding of quality and aesthetics. Four equipment packages (Chrome, Sports, Exclusive and Night package) enable individualization according to personal tastes.

In the interior, the large, threedimensional trim covering the entire dashboard first strikes the eye.

It is available in four variants, covering a broad spectrum from modern through sporty to classic.

Common to all versions is a highclass appeal combining an attractive look and feel with easy care and durability.

The kids painted their favourite themes and eight of those paintings were printed onto coffee mugs.

Apropos 17th November, which Strauss Group marks as the CSR Day in each of the 21 countries it operates in, the employees of Strauss Adriatic painted the rooms in the Jovan Jovanović Zmaj orphanage, replaced lighting in the theatre hall, and planted new thuja greens, while the dogs, which are cared for by the children from the orphanage, were given new houses. The day ended with song, dance and children being given packages full of sweets.

Hard work There are no secrets to success. It is the result of preparation, hard work, and learning from failure.

Colin Powell

04

ENPA’s 50th Anniversary

No Negotiation on Media Freedom

The European Association of Newspapers, at a congress held in Brussels, marked its 50th anniversary

Manuel Barroso (middle), with the members of the ENPAS board Speaking to representatives of newspaper publishers from across Europe, Manuel Barroso, President of the European Commission, stressed the importance of the role the press plays in a democratic society. President Barroso said “(That) freedom of expression and freedom of press are the freedoms around which there is no negotiation because it lies at the heart of European democratic society and you can be sure that the Commission will continue to vigorously defend them.”

In his opening speech at the ENPA congress, the vice president of the European Commission and Commissioner for Justice, Viviane Reding, highlighted the special role of print media in informing and encouraging an active attitude in and towards the society of citizens of the European Union. She pointed out that newspapers are as much relevant today in the digital age as they were 50 years ago when the ENPA was established, and when the EU had only six members. Reding added that “seventh force” should act as a check on the executive, legislative and judicial powers.

Welcoming the representatives of associations of newspaper publishers from 23 European countries, including the representative of the Serbian Media Association Ivar Rusda, ENPA’s president said “The newspaper sector will be equally important in the future as it has been in the past, providing that the legal environment for newspaper publishers ensures the equitable treatment of competitors with new technology platforms, respect of copyright and that it provides a taxation system which will promote and encourage the development of print media rather than hindering it.“ The Serbian Media Association was presented by Zoran Papic, executive director.

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88 December 2011 | 41

Credit

Business Dialogue

‘We have sufficient amount of money on bank accounts, but the NBS is not entitled to tell commercial banks to give credit to enterprises since banks are independent and market oriented.”

— Dejan Šoškić, Governor, National Bank of Serbia

Branislav Grujić, Proprietor and Director of PSP Farman Company

We All Have the Same Problems PSP Farman Company has realized its biggest projects in Russia, but is also operational in several other European states. In Serbia, the company is considered both a domestic and foreign investor, and PSP Farman’s investments have been growing year-on-year

I

n New Belgrade, PSP Farman is building a residential and commercial complex that many have already dubbed ‘the heart of New Belgarde’. The complex is called West 65. In addition, the company is going to start building a hotel in downtown Belgrade soon. Branislav Grujić and his company are among the biggest investors in Serbia and this is what he had to say about the business environment.

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countries have their bad and good sides. Sometimes, the good sides prevail, sometimes the bad. The main line of thought for any investor is whether your business is profitable or not. You go where a profit can be made. You may struggle, but you hope that you can create new values and generate profit.

■ What is your view of Serbia?

- Unfortunately, Serbia is not considered a priority by investors or large companies. We are a small ■ Can you draw a parallel and tell us where, in market, our citizens are poor and the average salterms of doing business, is the most difficult? ary is 350 euros. It is a well-known fact that the av- I would rather not. Russia, where I do most of my erage salary needs to be at least 500 euros in order business, is a huge country with substantial resourcfor investors to be interested in investing in any es and market and the whole world is there. That’s given country. We don’t what attracts investors.

Maybe it is better to be a foreign investor, generate profit, hence we Now, a Euro-Asian union between Russia, Kazabut the foreign investors don’t think so. are not interesting to inkhstan, Belarus and the We both have the same problem in that vestors. Let me rephrase that – we are interesting Ukraine is being formed our environment is not profitable only to those investors and we are talking about who use Serbia as a so-called ‘helicopter destinaa market with 250 million consumers. All of these tion’ where they can produce something at a relacountries are rich in natural resources. That’s why it tively low cost and export their products to more is important for my company and my business to be profitable markets. This is a business segment that in Russia. Concerning the level of difficulty of doing we need to nurture since it can create numerous business in a certain country, I can tell you that all

88 December 2011

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Price ‘Some banks are trying to take advantage of the situation when the money in Europe is cheap to offer at a high price.� — Nemanja Popov, Managing Director of ‘Centroproizvod’

new jobs, at least in the short-term. However, it should not be something that we commit to in the long run since the workforce is not paid much in this case.

â– What is our government doing wrong?

- Both the business community and government see eyeto-eye when it comes to problems and to the underlying ideas, we share the same view. We all agree that agriculture and energy are Serbia’s assets and that these sectors should be further developed. We don’t have enough people who are ready to roll up their sleeves and do that in unison. The late Steve Jobs is the perfect example of how to bring an idea to fruition and transform it into a product that brings profit. We have many clever people with ideas and visions, but we need to materialize them and that is something that we are lacking.

â– Six business associations have appealed to the government and National Bank of Serbia to help the business sector. What kind of reply do you expect to receive?

Now, a EuroAsian union between Russia, Kazakhstan, Belarus and Ukraine is being formed and we are talking about a market with 250 million consumers - The appeal was supported by most of the important professional organizations and the largest companies. Problems are much bigger in other parts of Serbia than in Belgrade, and the biggest problems are low salaries, inadequate infrastructure, low living standards and unemployment. There is no reason for us to wait for the elections and postpone tackling the current problems until a new government is elected.

This government has enough capacities, know-how and opportunities to fulfill its term. â– Is it better to be a domestic or foreign investor?

- I was a foreign investor in all the countries that I have worked in so far. And in all of those countries I had to find a domestic partner, which is a normal and civilized procedure.

In Serbia, I am both. As domestic investors, we receive no benefits and the business conditions are not simplified to any degree. Maybe it is better to be a foreign investor, but the foreign investors don’t think so. We both have the same problem in that our environment is not profitable. â–

do you have a clear

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Business Dialogue

Ups and down Every few seconds it changes - up an eighth, down an eighth -it’s like playing a slot machine.

I lose $20 million, I gain $20 million. Ted Turner

Miloš Milinović, director of Energoprojekt-Energodata a.d. company which operates within the Energoprojekt system

We Felt the Crisis The information technology sector was amongst the first to have felt the consequences of the economic crisis. As the crisis unfolded, the situation in the IT sector changed

O

ne of the most renowned Serbian IT companies is certainly Energoprojekt-Energodata a.d., which was founded over 40 years ago. Energodata is often said to be the nucleus of the IT industry in Serbia. We have asked Miloš Milinović, the director, several questions about the company’s operations.

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and maintain ATMs, and develop software applications related to their functioning. We are also developing our own applications for known users, which cover certain aspects of their business operations. In addition, some of our applications are used in providing services to end users, i.e. citizens. Next year, this business segment will gain in importance through our developing of new products. We also have a sector that is engaged in graphic design and multimedia activities, which we consider especially important.

■ How satisfied are you with the company’s results this year?

- Bearing in mind that the crisis has greatly affected the ■ In which ways do you ward off the crisis and how economy, public sector and the banking system, and that much does the fact that you are a part of a renowned Energodata, to a large extent, cooperates with the users and reputable holding company help in that? from those sectors, we cannot say that we haven’t been af- Being a part of Energoprojekt Holding is somewhat of a fected since the demand for IT products and services has limiting factor since we have strict rules of conduct so we dropped. According to certain statistical data from the past have a bit of difficulty in trying to make the same business few years, the investments in marketing and IT have been moves as our competition. On the other hand, Energoprojekt greatly reduced and some go as is a renowned and recognizable The competition is huge and our far as to say that these sectors name that opens many doors have been most affected by the message to other IT companies is that we to us. Energoprojekt’s managecrisis. On the other hand, we should network and not always view each ment does help us, and we are have a very stiff competition also trying to use Energoproother as competition – the biggest global producjekt’s position to reach the users in the IT industry are operating in Serbia. There is also ers of our products and services easier. strong domestic competition, so it is very difficult to survive The competition is huge and our message to other IT comon the market, let alone develop. We are satisfied with our panies is that we should network and not always view each accomplishments this year since we have not only managed other as competition. In certain cases, we have to be in comto survive, but gradually expand. Our operations are mainly petition with each other, but not always and not to everyfocused on Serbia, but we also have a company Energodata body. Lately, we have been negotiating about the joint access Montenegro in Montenegro. In addition, we have been to African markets, and this is where Energoprojekt comes investing a lot of effort into expanding our business operain since it can pave the way for us. I would especially like to tions to include other countries in the region. point out that Energoprojekt is also a market for us. This is a large system that is a user of our products in terms of equip■ Will you have any novelties in your offer next year? ment and software sales and maintenance, as well as in - In our business, we focus on several things. Apart from terms of using services of our graphic design and multimerepresenting large global companies that produce hardware, dia sector. Energoprojekt is our forerunner, it finds projects software and certain specialized products, and which prodand we then take over the part of the business that pertains ucts are included in our product range, we also sell, install to IT and other services that our company renders. ■

88 December 2011

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Leader

“A leader is not an administrator who loves to run others, but someone who carries water for his people so that they can get on with their jobs”, Robert Townsend, actor, comedian, film director, writer.

The results of Raiffeisen Bank International Group for the first nine months of 2011

Bank profit growth The Raiffeisen Group International Bank profits for the first nine months of 2011 before tax exceeded one billion euros Profit before tax increased by 3.5% yearon-year to 1,032 million euros (1-9 2010: 997 million euros); Consolidated profit fell by 4.8% to 745 million euros (1-9 2010:783 million euros); Net trading income increased by 13.5% to 293 million euros (1-9 2010: 258 million euros); Net reserves for losses on loans declined by 14.4% to 782 million (1-9 2010: 913 million euros); The rate of problematic loans improved by 0.6 percentage points to 8.4% against the end of the 2010; The ratio of coverage of problematic loans improved by 4.2 percentage points to 70.5% against the end of 2010; Return on equity before tax fell by 0.5 percentage points to 13.6% year-on-year; The ratio of cost / revenue 2.6 percentage points higher year-on-year and now stands at 55.8%; The ratio of additional capital (net) declined by 1.0 percentage points to 7.9% compared to the end of 2010; The capital adequacy ratio of the first order (total) fell by 1.0 percentage points to 8.7% in comparison to the end of 2010; Measures to comply with capital requirements of European banking institutions (EBA) in the RZB Group will contribute capital equivalent to 2.5 billion euros to 3.6 billion euros.

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Innovation

Business Dialogue 01

Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations.

Steve Jobs

Albania

Ground Airline Owned by Arrested Businessman Albania’s National Civil Aviation Authority, NCAA, suspended the licence of Albanian Airlines, a company owned by the arrested Turkish businessman Ali Evsen Denion Ndrenika, a spokesperson for the NCAA, told Balkan Insight that the airline’s flight licence had been revoked on the request of the European Aviation Safety Agency, EASA. “EASA was concerned about the company’s financial warranty for its planes, so it asked the authorities to revoke its license,” Ndrenika said.

According to Ndrenika the company has two weeks to convince EASA that its finances are in order before its flights are completely grounded. Ndrenika could not specify whether the airline’s problems were connected to the owner’s legal problems.

Albanian Airlines described the move to strip it of its flight permits as illegal, arguing that the company

03

Ali Evsen

had met all the flight standards required by local and international authorities. Albanian Airlines is owned by the Evesen Group. The president of the company, Ali Evesen, was arrested in June in Spain together with businessman Hussein Salem, a close aide to ousted Egyptian President Hosni Mubarak.

Both man, as well Salem’s son, who was also detained in Spain, are suspected of money laundering.

After the arrest, Albanian prosecutors launched a joint probe with their Turkish and Spanish counterparts, seizing million of Salem’s assets in Albania, including funds from Albanian Airlines.

Last month its shareholders agreed on another recapitalisation for Slovenia’s largest bank. Despite the agreement, NLB’s future remains far from clear Božo Jašovič

The management of NLB – which registered a EUR 113.9m loss for the first nine months this year - secured in October the overwhelming approval of shareholders to issue 5.5 million new shares over five years. This latest attempt to raise new funds follows a EUR 250m capital injection in March, secured almost entirely by taxpayers. The management and supervisors had initially proposed a further injection of EUR 250m, only to increase the figure to EUR 400m in September in the face of poor results and failure to implement the bank’s strategy.

NLB’ chief executive Božo Jašovič told shareholders that the bank needed capital to stabilise it and improve its resistance to external shocks. NLB is one of 16 European banks ordered to raise more capital after being close to failing the required five percent of Tier 1 capital ratios – the key measure of financial strength – when panEU stress tests were carried out on 91 financial institutions last year.

Media reports suggest it is uncertain whether the bank will get the 400m cash injection it wants since the state and Belgian financial group KBC, the principal shareholders, have not yet come to an agreement. Reports suggest EUR 250m is a more likely figure.

Božo Jašovič believes EBA’s calculation that NLB needs EUR 297m in additional capital is well below the actual figure.

Croatia

Good year for Croatian Banks

Importing 90 percent of food Montenegro is in the first nine months of this year imported food for 332.7 million euros, while in the same period, exports of agricultural products valued at only 32 million

Montenegrin agriculture, according to the Chamber of Commerce of Montenegro, still can not meet the needs of the population in food and food stability, depends significantly on the structure of exports. In Montenegrin export of agricultural products, €13.1 million is made from alcoholic beverages , in particular the export of wine with €9.9 million.

The increase in exports was recorded in alcoholic beverages, spices, tea, milk and dairy products, pasta and tobacco, according to Tanjug. The fall in exports was made with meat and fish, fruit and vegetables, while other categories of agricultural products are mainly at the comparative period last year.

The fall in food imports into Montenegro was recorded in meat and offal, tobacco, and other categories at last year’s level or slightly increasing. The largest increase was recorded in imports of live animals, dairy products, cereals and products of the milling industry.

The main problem of Montenegrin agriculture is the lack of financial resources for intensification of production and exports as well as a modest marketing approach of Montenegrin producers in international markets.

Agriculture, along with agro-industry, accounts for about 15 percent of the gross domestic product, employment and about 20 percent.

88 December 2011

Slovenia

Rising Capital Stakes

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Montenegro

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In the first nine months of 2011 the Croatian banks made a total pre-tax profit of 3.76 billion kuna (€522 milion), according to interim unaudited data for credit institutions at 30 September 2011. and released by the Croatian National Bank (CNB).

It is about 9 percent or 309.6 million kuna (€43 million) higher gross profit comparing to the first nine months of the previous year.

Out of the 33 banks in Croatia, 23 banks reported a operating profit and nine banks recorded a loss, totaling $ 89.2 million kuna (€12,4 miluion), while one (Credo Bank) did not submit a financial report within the prescribed time limits.

05

Romania

Stock Exchange manager dismissed The Bucharest Stock Exchange (BVB) fired its general manager Valentin Ionescu through the administration council Ionescu, who became general manager in September last year, was dismissed from his position for not meeting performance criteria and thus the operational risks have unjustifiable increased.

Until a new manager is appointed, the deputy manager Alin Barbu takes on the responsibilities.

BVB operates daily transactions of over 10 million Euros and reported a turnover of 3.93 million Euros (16.9 million RON) for the first nine months this year, up by 54 per cent compared to the same period a year ago. The net profit increased, in the same period, to 3.6 million Euros (15.8 million RON).

Source: Romanian Times

Business If you don’t drive your business, you will be driven out of business.

B. C. Forbes

06

Macedonia

Placements & Postings appointments@cma.rs

www.cordmagazine.com/corporate/appointments.html

Russia investing in Mines

The Moscow-based Solvay firm plans to spend some €150 million on building two new copper mines and a copper processing facility in eastern Macedonia

The Minister of Economy, Fatmir Besimi (left) and Nikolajco Nikolov, head of the newly formed “Kadiica Metali” company

Solvay already owns the “Sasa” lead and zinc mine and the “Bucim” copper mine in eastern Macedonia, where much of the mining industry is concentrated.

The company plans to invest some €75 million in the “Kadiica Metali” mine near the town of Pehcevo and €50 million in the “Borov Dol” mine between the municipalities of Konce and Stip.

The company is currently building an additional copper processing plant near the “Bucim” mine that should be put to work by the end of the year.

“If all goes well the mine [near Pehcevo] will be operational in two or three years” and will offer around 200 jobs, Nikolajco Nikolov, head of the newly formed “Kadiica Metali” company, a daughter firm to Solvay, told the Utrinski Vesnik daily.

Concerning the “Borov Dol” mine the company say it is currently waiting for scientists to carry out archeological excavations at the site.

Once they conclude, planned for next year, the company aims to start preparatory work.

07

Zeljko Vujinović, New General Director of IBM Serbia, Montenegro, Macedonia and Albania

Rolf Reidinger, New General Manager, LEONI Wiring Systems Southeast

Bulgaria

New Tourism Strategy Bulgaria will launch a major new tourism strategy highlighting the wide range of attractions the country has to offer as it attempts to raise its profile in the UK Bulgaria’s participation at WTM coincides with the launch of a new UK advertising campaign which promotes Bulgaria under the banner of “Magic Lives Here” and focuses on some of the country’s lesser-known tourism products including spas and well-being, culture and folklore; and eco-tourism.

The campaign forms part of a wider effort by Bulgaria to position itself as a desirable tourist destination in three of its major markets: the UK, Germany, and Russia.

Addressing a media gathering at WTM, Bulgaria’s Minister of Economy, Energy and Tourism, Mr Traycho Traykov, said: “Nearly 300,000 UK tourists visited Bulgaria in 2010. With the help of the new advertising campaign our target is to increase this number to around 500,000 by 2020”.

He said the Ministry was keen to spread tourism more evenly across the country and to develop diverse and integrated tourism projects, among which is the cross-border project “The Path of the Roman Emperors”, the cycling tourism project “The Path of the Iron Curtain”, the project for the development of the Danube River region as a green tourism area including the provision of cycling routes and campsites.

The advertising campaign is being supported with a wider communications campaign of PR activities. Bulgaria Tourism has also launched an official new web portal www.bulgariatravel.org which is available in nine languages. It covers more than 450 cities, resorts and villages and provides information on everything from conference facilities to UNESCO World Heritage Sites.

Boris Madžarević,

New Executive Director of Nordic Business Alliance in Serbia

In his new role Mr.Vujinović brings over ten years experience from management and consulting positions in the IT industry. He joined IBM in 2007 as a senior consultant for Internet Security Systems - for customers and business partners in the Adriatic region. He was responsible for defining security strategies for different users in order to comply with safety standards.

From 2010, Mr.Vujinovic worked as a senior security consultant in Central and Eastern Europe.

In April 2011 he was appointed as manager of Global Technology Services (GTS) for Serbia, Montenegro, Macedonia and Albania.

Zeljko Vujinović graduated Electrical Engineering from Belgrade University.

Mr. Reidinger joined the LEONI group six years ago and successfully contributed to developing his already extensive professional career. Before his commitment to the LEONI group Mr. Reidinger spent 12 years working for a Japanese company.

After five successful years as Director of Operations at BU BMW of LEONI, he has also been appointed General Manager of LEONI Wiring Systems Southeast doo. On the 1st October Mr. Reidinger began the additional challenge of leading the LEONI – Serbia plant.

Rolf Reidinger is also responsible for the LEONI BU BMW plant sections operating in Slovakia, Romania, Egypt, Tunisia and Mexico.

Following his graduation at the economics department of Corvinus University in Budapest, Mr. Madžarević obtained a masters degree in Business Administration, also in Budapest. Mr. Madžarević began his professional career at Societe Generale bank in Belgrade and, after two and a half years, decided to continue his studies, during that time he was employed by Finpro Hungary, Finland Trade Center- export and internationalization promotion agency of Finland. Since then, until appointment in Nordic Business Alliance, Mr. Madžarević has worked as a Consultant/ Western Balkans Business Specialist. Through everyday work with Nordic companies, and close cooperation with Finnish embassies in Belgrade and Budapest, he acquired a vast knowledge of Nordic values, business culture and people.

SANDVIK Srbija doo Bulevar Mihaila Pupina 10B/2 YUBC 11070 Novi Beograd, Srbija tel: 311 04 45 ; 311 04 46; 311 11 85

cordeditorial@cma.rs

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Business Dialogue

Leaders “Blessed are the people whose leaders can look destiny in the eye without flinching but also without attempting to play God.” — Henry A. Kissinger

Dispute Over Eurobonds

Eurobonds Sparks New Storm Treaty-changing plans for eurobonds as a way out of the economic crisis kicked off a new political storm

G

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erman Chancellor Angela Merkel insisted that ambitious European Commission ideas in the “Green Paper” offered the wrong remedy at the wrong time and made it clear she would not support them.

Dutch finance Minister Jan Kees De Jager said eurobonds were not a magic solution to the crisis “And could even worsen it.”

He and Ms. Merkel both said the focus should be on better supervision and enforcement of eurozone budget discipline - something the commission also proposed.

A package of monitoring measures extends tighter controls announced earlier this year to impose tougher reporting requirements between eurozone treasuries and Brussels - and all euro area governments would have to put in place “independent fiscal councils,” as well as basing their budgets on “independent forecasts.”

The UK Government kept out of the eurobonds exchanges, but a spokesman said: “We’ve been clear that the euro-

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zone has to face up to its responsibilities and that both the individual members of the eurozone and the institutions of the eurozone need to find a sustainable solution to the current crisis, but it is not for us to dictate how they do this.”

UK Independence Party leader and MEP Nigel Farage was more outspoken.

“The Eurobond proposal would render all future general elections within the eurozone totally meaningless,” he said.

“However, it is not going to happen because the Germans have said no, and they are in charge. Commission talk about eurobonds is just eurobluster.”

The options for eurobonds and the economic governance package both “miss the point,” according to Jan Zahradil, leader of the European Conservatives and Reformists group in the European Parliament.

He said the further loss of economic sovereignty within the euro area would strengthen the case for non-euro countries such as his own Czech Republic to reconsider their commitment to joining the euro.

“Instead of fiddling with economic governance structures and abstract debates about whether we need ‘more Europe’, the EU needs to start focusing on the immediate crisis.”

“The only solution is the reduction in the size of the eurozone so that some countries can fully restructure their debts.”

He added: “The EU is doing what it does best: creating new rules and layers of governance that undermine national sovereignty. The eight (EU) countries that are not members of the eurozone but have committed to joining should have the option to rethink their intentions. The Czech Republic did not agree to sign up to a debt union controlled by Brussels, Berlin and Paris.”

A Commission official said most of today’s plans and ideas could be carried out without changing the EU Treaty - except the “Green Paper” idea of replacing national bond issues with Eurobonds. Another option - a mix of Eurobonds and national bonds - would not require a Treaty change.

The crisis has shown that without stronger governance in the euro area it will be difficult, if not impossible, to sustain a common currency The Commission has chosen to call the bonds “Stability bonds” - in the hope of achieving some of the stability the eurozone is desperately seeking.

European Commission President Jose Manuel Barroso told a press conference: “The crisis has shown that without stronger governance in the euro area it will be difficult, if not impossible, to sustain a common currency.”

Now, therefore, is the time to produce eurozone proposals, which, he acknowledged, would be “difficult to accept in good times.”

In a dig at Germany’s outspoken opposition, he went on: “I would like to make an appeal for these discussions

Partners “In the past a leader was a boss. Today's leaders must be partners with their people... they no longer can lead solely based on positional power.” — Ken Blanchard Enviro collection 2012

to be approached by all parties with an open mind and for them to be free of dogma.”

He said eurobonds would be part of the answer to the crisis, helping establish economic governance, discipline and convergence in the euro area.

“Stability bonds will not solve immediate problems, but show to public opinion that we are serious ... implemented in the right way, the joint issuance of debt in the euro area could bring tremendous benefits. It could lead to greater financial integration and to the creation of a much larger and more liquid bond market - comparable to that which exists for United States Treasuries.”

On tighter controls over eurozone national budgets, Mr Barroso said: “Under the new rules, the commission will have greater surveillance powers so that we do not again face the situation where failings in one country endanger the stability of the euro area as a whole.”

He insisted: “National budgets will of course be prepared by governments and voted on by national parliaments. Parliaments will of course have the final say.

“Instead of fiddling with economic governance structures and abstract debates about whether we need ‘more Europe’, the EU needs to start focusing on the immediate crisis”

“The difference with the current system is that the commission will have the right to issue an opinion and may request changes. National parliaments will, for the first time, have the full information on all other countries in the euro area. We must not oppose the national democratic process to the European democratic process. We need both.”

Challenged on the democracy of centralising eurozone economic control, Mr Barroso said: “If now you want a more historical remark, to a large extent from Britain, the principle of parliamentary democracy is sacred: if a parliament decides to ratify a treaty giving some powers to common institutions, those institutions are democratically entitled to use that power.”

Economic Affairs Commissioner Olli Rehn said there was no “silver bullet” that would end the crisis.

But the fragmentation and stress of the European sovereign bond had revived interest in jointly issued eurobonds to improve liquidity.

Mr Rehn added: “Thorough political discussion will be needed.

Therefore, we must now launch a wide consultation, and only after that take stock and decide on the most appropriate way forward.”

Conservative MEP Kay Swinburne, the party’s spokesman in the European Parliament on economic and monetary affairs, warned that eurobonds could be a disincentive for governments facing economic turmoil to make tough but vital financial decisions.

“The danger is that struggling nations which are currently walking an economic high wire will see the bonds as their safety net. They may just continue taking risks because they believe the more stable economies will catch them when they fall. That is not a recipe for stability - it spells more strife, more turmoil, more trouble ahead. Creating more debt is not The Independent the way out of a debt crisis.” - MEP Kay Swinburne. ■

Perfect Ratio

The new furniture collection for 2012 is now available in exclusive Enviro showrooms in Belgrade and Novi Sad

Sofa Tema, three and two seater, fine leather in two tones, polished metal frame, elegant form for perfect comfort. Three seater equipped with bed sofa mechanism and memory foam mattress

Current designer trends are shaped within sofas that offer exquisite comfort, and premium quality materials and skilled craftsmanship are a guarantee of thoughtful choice. Enviro respects the rationality of customers, so a perfect ratio of price and quality characterise the new collection. Luxurious sofas for opulent interiors, as well as compact sofas for small spaces are available.

Bearing in mind the requests of discerning clients when it comes to furnishing, Enviro offers contract furnishing at ready to move in facilities. During December, the new collection is available with special promotional discounts, and select models from previous collections are at a 20% reduction.

Previous collections of classic and contemporary Italian brands Modenese Gastone and Venier are reduced by up to 30%. www.envirointerior.com Showroom Belgrade Bulevar kralja Aleksandra 17, Tel: 011 3241275 Novi Sad, Narodnog fronta 21/c7, Tel: 021 2314758

cordeditorial@cma.rs

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Business Dialogue 01

Woman “If you want something said, ask a man... if you want something done, ask a woman.”

Margaret Thatcher quotes (British Politician and Prime Minister)

Japan

Nippon Steel to Slow Output Nippon Steel Corp. the leading Japanese steel producer, will reduce steel output due to expected falls in demand in the wake of the flooding in Thailand and the stagnating global economy The steelmakers output is expected to be cut by roughly 250,000 tons.

Nippon Steel produces around 30 million tons of crude steel annually, meaning the cut would amount to slightly less than 1 percent of annual output.

The company said if demand revives more quickly than expected, it can increase output by raising the capacity utilization at its other furnaces.

The furnace at the Kimitsu plant is scheduled to undergo maintenance and capacity expansion work between mid-January and mid-May 2012.

The move comes as domestic crude steel output has been recovering from a drop following the March earth-

03

quake and tsunami.

A decline in Japan’s steel output is expected to be worse in the second half of the current business year ending next March than originally projected because of the impact the flooding in Thailand has had on automakers and due to sluggish overseas steel demand.

Finland

Nokia Cuts Jobs Around Finland Mobile telephone manufacturer Nokia announced end November that it would be cutting 300 jobs around Finland mainly in the company’s service operations

Nokia also plans to cut 1,400 people from software development of the Symbian operating system, as, in the coming years, it will be replaced with Microsoft Windows. The job cuts are to be implemented by the end of next year. As part of the phase-out of Symbian, Nokia will outsource 2,800 people to the consultancy company Accenture, of which an estimated 1,400 live in Finland.

On a worldwide scale, Nokia plans to cut more than 10,000 jobs by the end of next year – including those in Finland.

Nokia is offering outplacement help for those who are being let go, in the form of financial aid, training, and support for the starting of businesses through its Bridge programme.

“The first experiences in getting people new jobs have been promising, and we also believe that our programme, which encourages entrepreneurship, will make it possible to establish new growth companies in Finland,” says Ville Valtonen, Nokia’s personnel director for Finland.

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iran

A Woman - Deputy Head of Iran's Central Bank A woman has been appointed deputy governor of the Central Bank of Iran (CBI) for the first time.

Minou Kianirad was appointed by

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CBI director Mahmoud Bahmani as his deputy and head of the foreign currency department.

Kianirad, formerly in charge of the CBI international affairs department, will try to stabilize Iran’s foreign currency market where the exchange rate to local currency are rising.

www.cordmagazine.com

02

Turkey

Techno Centre to Boost Local Defense Industry The Turkish government aims to make Teknopark Istanbul the country’s Silicon Valley for the defence industry, with around 30,000 employees and up to $5 billion in yearly revenues

Minister Nihat Ergün (4th right)

Teknopark Istanbul will probably become Turkey’s most important technology centre, Minister Ergün said. Recalling the government’s targets to reach a gross domestic product of $2 trillion and an export volume of $500 billion, Ergün said “Teknopark Istanbul will contribute to reaching these figures.”

Teknopark Istanbul will operate a 700,000-square-meter indoor space at Sabiha Gokcen Airport near Istanbul, accommodating 30,000 personnel and targeting up to $5 billion in defence and nondefense business annually, to become one of Europe’s largest technology parks.

Its major shareholders are the Undersecretariat for Defense Industries (SSM) with a 45 percent stake; and the Istanbul Chamber of Commerce (İTO) with a 40 percent stake. İTO, which also runs a university with the same name, has some 300,000 member companies. The first resident companies will start operations at the technology park by the end of 2012.

Partners SSM and İTO have earmarked an initial construction budget of $100 million for the project.

04

Ukraine

Banks in Red

Ukrainian banks’ total net profit in October 2011 was estimated at UAH 487 million (44.7 million EUR), whereas the banks were in the red in September 2011 with net losses estimated at 99.8 million EUR in total. As the National Bank of Ukraine (NBU) said on its website, the banks’ net losses in the period January through October 2011 stood at UAH 472.9 million (43.8 million EUR), whereas their net losses in the same period of 2010 were UAH 972.5 million (90.1 million EUR).

Ukrainian banks’ revenues in the 10 months of 2011 expanded by 2.8 percent year-over-year, to €10.5 billion EUR. The banks’ expenses January through October 2011 dropped by 1.9 percent, to €11 billion.

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India

Investors Warn Against 'Policy Paralysis' Asserting that factors like a slow decision-making process and delay in implementing key economic reforms are leading to a slowdown in economic growth rate, the experts have asked the government to immediately gear up to benefit from the underlying positive points of the India story.

CLSA, one of the top investment banks in Asia and a major foreign investor here, has said in a strong-worded report on the country that “the government’s policy paralysis in the last year has added to the cyclical slowdown.”

“Us” and “them” For too long we’ve been told about “us” and “them.” Each and every election we see a new slate of arguments and ads telling us that “they” are the problem, not “us.” But there can be no “them” in America. There’s only us.”, Bill Clinton

07

Czech Republic

Transit Fees

Russian President Dmitry Medvedev

The Nord Stream pipeline was launched on Nov. 8, providing the most direct route for Russian gas into Europe but also sparking opposition from transit countries farther east

“This project was never supported in Poland, and we are of the view that it is a very expensive project under the control of Russia and that it is very dangerous for the energy policy of the European Union and the monopolization of markets,” said Tomasz Chmal, an energy expert at the Sobieskiego Institute in Poland.

The 1,224 kilometre pipeline, which cost around 8.8 billion EUR, goes under the Baltic Sea, bypassing normal East European transit states like Poland, Belarus and Ukraine. It has a capacity of 27.5 billion cubic metres (bcm) for the first year, to be increased to a total of 55 bcm.

The pipeline is expected to play a significant role in increasing gas flows to the European Union as many nations, such as Germany, look to find a lower emissions energy source that isn’t nuclear power to fill the gap before renewable resources become cost competitive. Russian gas giant Gazprom has a 51 percent stake in the pipeline, alongside German utilities BASF and E.ON, which have 15.5 percent each, Dutch gas infrastructure company Nederlandse Gasunie and French GDF Suez, both of which have 9 percent.

For the Czech Republic, the launch of Nord Stream is mixed news.

The Czech Republic will be the only CEE country to benefit from Nord Stream as an alternative gas supplier, as Nord Stream will be connected to the OPAL pipeline, which in turn will connect to the Gazela pipeline meant to be completed next year that will link the north Bohemian town of Hora Svaté Kateřiny to the German town of Waidhaus. On the other hand, the Czech Republic could lose out on transit fees, which amount to around 200 million EUR per year as gas would flow to Germany through the Gazela route. This is shorter than the existing route, which enters the country through Lanžhot and exits via Rozvadov.

But the Czech Republic’s neighbours, including Ukraine, Poland, Slovakia and Belarus, are in a far worse position as it is estimated that Ukraine could lose as much as 700 million EUR per year in transit fees, while Slovakia could miss out on around 174 million EUR worth.

Europe is now closely watching the race between the two Gazprom’s South Stream and the European Commission-backed Nabucco, which is meant to be filled with gas from the Caspian region.

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Germany

Subsidies for Korean Firms

Being one of the only regions permitted by the European Commission to offer subsides to foreign companies, Eastern Germany offers their advantages for Korean firms Michael Pfeiffer, chief executive of Germany Trade and Invest said that the subsidies they offer ― which can be as high as 40 percent of the initial investment ― are more advantageous than tax holidays.

Germany’s federal government invested heavily in infrastructure while building new clusters in promising sectors, including those involved in photovoltaics, renewable energy and industrial chemicals.

Korea, the second largest Asian investor in Germany after Japan, has so far invested a total of $3.6 billion as of 2010. The advantage for Korean firms looking to invest is that eastern Germany also offers a strong pool of qualified, loyal and highly committed workers.

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USA

Buffett Sees Investment in Japan Billionaire investor Warren Buffett said he’s unfazed by the recent scandal at Japanese camera maker Olympus Corp. and is looking for investment opportunities in the nation’s companies

“We’re looking for companies that have some kind of sustainable competitive advantage,” Buffett, chairman of Berkshire Hathaway Inc., said at a news conference in Fukushima prefecture, northern Japan. “The fact that Olympus happens here or Enron happens in the U.S. doesn’t affect our attitudes at all.”

Buffett is visiting Japan for the first time to tour a plant of took maker Tungaloy Corp., after canceling his trip in March when the country was struck by a record earthquake.

“There are lots of opportunities in Japan,” Buffett, 81, said in Iwaki city, adding that the earthquake hasn’t changed his view on investing in the country. He said he is interested in “businesses that will be around for many, many decades.”

“One way or another, Europeans will solve their problems.

But in the process of solving them there already have been very important dislocations and they will have effects on individual countries”

Iwaki is about 40 kilometers from the Fukushima Dai-Ichi nuclear plant that leaked radiation after it was crippled by the March 11 earthquake and tsunami. Buffett, who became the world’s thirdrichest person through long-term value investing, said earlier this year that the disaster created a “buying opportunity.”

“Buffett’s investment is beautiful,” said Yutaka Kobayashi, president of Star Mica Asset Management Co., a boutique Japanese private bank. “Looking at the way he invests in this current market, it may well be a good time to be buying. His style of long-term investment makes sense under the current market climate.”

Buffett also said that Europe will eventually emerge from a crisis that has been amplified by the inability of euro- zone members to print their own currency.

“One way or another, Europeans will solve their problems,” he said at the briefing. “But in the process of solving them there already have been very important dislocations and they will have effects on individual countries” and banks in the region that need capital.”.

Buffett has visited nations including South Korea, China, India, Italy, Germany, Spain and Switzerland since early 2008 scouting opportunities for Berkshire. cordeditorial@cma.rs

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88 December 2011 | 51

after work Promotion of the first photo-monograph of the National Theatre in Belgrade

"The Hidden Beauty” of National Theatre On a large stage at the National Theatre in Belgrade, 21st November, the first photomonograph under the title “The Hidden Beauty”, by Dina Johnsen, was promoted.

The organizers of the project are the National Theatre and Telenor Foundation

Dina Johnsen

The photo-monograph was presented along with performances by Ashen Ataljanc, Milan Rus and Dejan Kolarova in the presence of many great actors, ballet artist, opera singers and distinguished guests.

The author, Dina Johnsen, is also a photographer and an associate member of the Board of Directors of the Telenor Foundation. Her monograph was presented to the theatre, hoping to contribute to the improvement and enrichment of cultural creativity in Serbia. The monograph includes 140 pages and represents a unique presentation of the Theatre and the artists who have left their mark on the life of one of the most important cultural and art institutions in Serbia.

“The project ‘Hidden Beauty’ has given me great joy and I am grateful for the opportunity to work on such precious material. It has provided a unique opportunity to see what goes on behind the scenes of theatrical life.” said Dina Johnsen.

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Ana Krstic, Telenor Foundation Director (left) and Dina JoHnsen

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faces & places

27. 10. 2011 Alliance of Civilizations The United Nations, together with the Serbian Government, embraced civilizations and cultures at a Gala Concert celebrating the Alliance of Civilizations.

The Gala was the peak event that commemorated the 66th anniversary of the UN. The event took place at the Ilija M. Kolarac, hosted by UN Resident Coordinator Willam S. Infante (left), Serbian Vice-Prime Minister Bozidar Djelic, and UN High Representative Jorge Sampaio. The concert featured a program “Under One Roof” which comprised of four works by celebrated Serbian composer Aleksandar Simic.

29. 10. 2011 Voluntary Initiative By planting trees on the Danube bank in Belgrade, the employees of Philip Morris in Serbia have completed their third volunteering initiative. This October, the action “I volunteer, because I love my city” was implemented in 15 cities across Serbia where the company operates. “I volunteer, because I love my city” was first implemented in 2010 thanks to the idea and good will of the employees of Philip Morris in Serbia.

31. 10. 2011 National Day of the Republic of Turkey On the occasion of the National Day of Turkey, Ambassador of the Republic of Turkey H.E. Mr. Ali Riza Çolak and Mrs. Güldal Çolak hosted a reception on the 31st October in the Crystal Ballroom at the Hyatt Regency Hotel, in Belgrade.

02. 11. 2011 50th Anniversary

03. 11 .2011 Tanjug New Services

The U.S. Agency for International Development (USAID) celebrated a decade of development efforts in Serbia and a half century of service worldwide with a reception in Hall Americana at Dom Omladine. Verica Kalanovic (left), Deputy Prime Minister, Lee Litzenberger, U.S. Chargé d’Affaires, Nata Mesarovic, President of the High Judicial Council and Susan K. Fritz, USAID Mission Director.

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Tanjug news agency marked the “on line” presentation of the introduction of new service agencies, which was attended by Mirko Cvetković, Prime Minister, Slavica Đukić Dejanović, President of the National Assembly of Serbia, representatives of political, public and cultural life, business partners and colleagues from the media. (Far right) Branka Đukić, Director of Tanjug.

03. 11. 2011 The White Book 2011 The Foreign Investors Council presented the White Book 2011 to Prime Minister Mirko Cvetkovic and the highest officials of Serbian Government. This year’s edition, the ninth in a row, serves as basis for active dialogue between foreign investors and the government on ways to improve overall business climate.

Kjell-Morten Johnsen, FIC President

06. 11. 2011 Bilateral Relations 03. 11. 2011 Italian Armed Forces Day Celebrating Italian Armed Forces Day, Italian ambassador H.E. Mr. Armando Varricchio and Mrs. Varricchio, and the Italian Defence Attaché organised a party at the Italian Embassy. Mrs. Lallai and Col. Marco Lallai, First Counsellor Deputy Chief of Mission (left) and Mrs. and Mr. Varricchio.

07. 11 .2011 National Day of Algeria At the celebration of the National Day of Algeria, the Abassador of the People’s Democratic Republic of Algeria H.E. Mr. Abdelkader Mesdoua organised a reception at Belgrade’s Hyatt hotel. The event was attended by numerous members of the diplomatic corps in Belgrade.

U.S. Congressional delegation led by Representative Dan Burton visited Serbia on November 6-8. The delegation met with Serbian Government officials and representatives of Serbia’s business sector and the American Chamber of CommerceSerbia to discuss U.S.-Serbia bilateral relations, regional issues, and Serbia’s progress toward membership in the European Union. Dan Burton (left), Mirko Cvetkovic, Primeminister and Marry Warlick, US Ambassador in Serbia.

10. 11 .2011 National Independence Day of the Republic of Poland On the ocassion of the National Independence Day of the Republic of Poland, the Ambassador H.E. Mr. Andrzej Jasionowski welcomed guests at a garden party at the Polish Embassy in Belgrade. In attendance were members of the Serbian Government, diplomatic corps and officials. cordeditorial@cma.rs

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faces & places

11. 11. 2011 Remembrance Day 11. 11. 2011 Carlsberg's Working Day for Nature Gabor Bekefi, General manager of Carlsberg Serbia was in the front row during the voluntary cleaning project “Working day for nature”, held on 11th November on Obedska Bara, organised by the Carlsberg’s employees.

The wreath laying ceremony at the French military cemetery, on the 11th November, to mark Remembrance Day was attended by the French Ambassador to Serbia H.E. Mr. Francois-Xavier Denis, German Ambassador to Serbia H.E. Mr. Wolfram Maas, the Military Attaché of the French Embassy, representatives of the Republic of Serbia Ministries and members of several other diplomatic and military missions of other states.

11. 11. 2011 36th Anniversary of the Independence of Angola At the event for the 36th anniversary of the Independence of Angola, the Ambassador of the Republic of Angola H.E. Toko Diakenga Serao and Mrs. Serao organised a party and welcomed diplomatic officials and members of Belgrade’s cultural, business and public life.

H.E. Mrs. Mette Kjuel Nielsen, Ambassador of Denmark to Serbia (left), H.E. Mr. Toshio Tsunozaki, Ambassador of Japan to Serbia and Willam S. Infante, UN Resident Coordinator.

16. 11 .2011 Mr. Bricolage 15. 11. 2011 King’s Day On the occasion of King’s Day, the Ambassador of the Kingdom of Belgium H.E. Mr. Main Kundycki hosted a reception at the Belgium Embassy in Belrade. H.E. Mr. Main Kundycki (left) welcomes Swiss Ambassador H.E. Mr. Erwin Hofer.

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French supermarket chain ‘Mr. Bricolage’ hosts a visit by the members of Serbia’s diplomatic corps H.E. Mr. François-Xavier Deniau, French Ambassador in Serbia, H.E. Mr. Georgi Dimitrov, Bularian Ambassador in Serbia and Evgeni Angelov, Deputy Bularian Minister of Economy and Tourism, also in attenance was Vesna Arsić, State Secretary of Ministry for Economy.

24. 11. 2011 Focus on Competition

16. 11. 2011 Nordic Days Popular Nordic design, music, food, and also very succesful economic and social model where some of the subjects of “Nordic Days” organised in Belgrade “Supermarket” on the 16th November gathering huge interest of Serbian artist and Belgrades citisens. H.E. Mr. Christer Asp on opening ceremony.

16. 11 .2011 Dufry's New Diplomatic Services Sales Channel

At the launch of the 5th annual “Focus on Competition” publication, Belgradebased law office Karanovic & Nikolic heard presentations from the Agriculture, Trade, Forestry and Water Management Ministry, Vincent Degert, Head of the EU Delegation to Serbia (left), Rasto Petakovic, partner at Karanovic & Nikolic, Andrej Plahutnik, the former leader of a project for the Technical Support for the Commission for Competition Protection of the EU (ACPC) and Željko Rakić, head of trade and services in the Ministry for Agriculture, Trade, Forestry and Water Management.

21. 11. 2011 The International School of Belgrade

On the 16th of November, Dufry celebrated their new Diplomatic Services Sales Channel at Vila Jelena in Senjak. Dufry introduced guests to their company and to their special offers for the diplomatic corps in Serbia. Iain Forrest (right), of Dufry, informing Swiss Ambassador H.E. Mr. Erwin Hofer about the event.

Mr. Eric Sands at the outset welcomed approx. 500 guests at the ribbon-cutting ceremony for the newly opened offices and hall for physical education, at the International School in Belgrade, in the presence of the media and senior officials of the Republic of Serbia and the U.S. Embassy in Belgrade.

22. 11. 2011 68th Anniversary of the Independence of Lebanon For the 68th Anniversary of the Independence of Lebanon, the charge d’ affairs of Lebanon, Ambassador H.E. Mr. Ahmad Osman Abdallah and Mrs. Abdallah welcomed guests at a reception in Aero Klub, Belgrade.

24. 11. 2011 National Day of Republic of Albania On the ocassion of the national Day of Albania, the Albanian Ambassador in Serbia H.E. Mr. Shpetim Caushi and his wife Mrs. Adelina Caushi played host to members of the Serbian diplomatic corps, officials and members of public life. Mr. Caushi welcomes Sanja Ilić, composer. cordeditorial@cma.rs

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culture calendar CONCERTS VIVA VOX CHOIR Sava Center, 1 December @ 20.00 Viva Vox Choir wil perform in Belgrade’s Sava Center on 1st December. Viva Vox is choir almost like no other, imitating the voices of guitars, keyboards, horns ... Special attraction is their beatboxser - their voices producing the sounds of drums and percussion.

ST.PETERSBURG RUSSIAN ARMY CHOIR, BALLET AND ORCHESTRA Sava Center, 12 December @ 20.00 One of the most well known Russian army ensembles, the famous Choir, Ballet and Orchestra from St. Petersburg will perform in Belgrade on 12th December during their European tour.

THE AMERICAN GOSPEL CHOIR Sava Center, 15 December @ 20.00 This year’s American Gospel Choir European tour, named after the Michael Jackson song “Heal the World” has a humanitarian character. Members of the choir will donate half of their revenue from sold cds to local charity in Belgrade.

BALKAN BRASS BATTLE Sava Center, 16 December @ 20.00 Boban Marković Orchestra and Fanfare Ciocarlia, the most popular Serbian and Romanian brass orchestras, will for the first time play on the same stage competing for the title of the best brass orchestra.

THE BELGRADE DIXILAND ORCHESTRA Sava Center, 17 December @ 20.00 Traditional New Year Concert of this respected jazz orchestra will this December again perform in Sava Center.

Belgrade Dixiland Orchestra will also celebrates its eleventh birthday with numerous guests joining them on the stage. The Dixie Dance Show, accompanying dance troupe, will this yearr too add to the richness of the whole performance.

MUSIC FESTIVAL ČAROLIJA Belgrade Arena 25 December @ 14.00 This traditional children’s music festival, for the sixth consecutive year is being held as a music competition for children of all ages.

The final competition involves kids who were chosen by the authors as the most suitable to present their works. This festival contributes primarily to motivate authors and composers in the creation of children’s individual music in Serbia.

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MUSIC BRINGS US TOGETHER Kolarac Foundation Hall 3 December @ 12.00 500th concert of ISON Choir, that gathers children with disabilities and all others interested in being part of this unique Serbian choir. All profits from concert will be donated for purchase of technical instruments for children with disability.

SLOVENIAN PHILHARMONIC ORCHESTRA Kolarac Foundation Hall 10 December @ 12.00 Conductor: Emanuel Bijom Solist: Enfrew von Ojen, piano Program: Mozart, Beethoven

PRAGUE PHILHARMONIC CHAMBER ORCHESTRA Kolarac Foundation Hall 3 December @ 20.00 Trumpet: Gabor Boldocki, Sergei Nakarjakov, Mladen Đorđević

KOLARAC CHAMBER MUSIC Kolarac Foundation Hall 11 December @ 11.00 Nemanja Marjanović, viola Nataša Mitrović, piano Free Entrance

CLASSICAL MUSIC

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KOLARAC CHAMBER MUSIC Kolarac Foundation Hall 4 December @ 11.00 Piano duo: Olivera Jovanović and Maja Mihić Free entrance MOZART GROUP Kolarac Foundation Hall 6 December @ 20.00 Unique music cabare „Mozart Comes to Town!“ by Mozart Group from Poland. Mozart Group plays Mozart and Vivaldi pieces in their unique way by improvising and mixing with pop and rock hits. Surely a concert not to be missed! Concert is organised with the help of Polish Embassy in Belgrade.

CONCERT OF ENSEMBLE KOLO Kolarac Foundation Hall 8 December @ 20.00 Ensamble KOLO collects, adapts and performs Serbian folk dances and songs, its musical heritage.

MIHALIS HATZIGIANNIS Belgrade Arena, 21 December @ 20.00 One of the most popular young singers from Greece, Hatzigiannis Mihalis, will perform in Belgrade Arena on 21st of December.

During the last ten years Hatzigiannis won over 30 awards for his music, which makes him one of the most successful artists of Greece in the past decade. Hits like “xeria Psila”, “Ola and type”, “Pio Poly”, “Mono Sta Oniro” are very popular in Serbia as well. www.cordmagazine.com

FINAL DAY OF YOUNG TALENT COMPETITION Kolarac Foundation Hall 17 December @ 20.00 Young talents in classical music will perform during the final day of competition in Kolarac.

KOLARAC CHAMBER MUSIC Kolarac Foundation Hall 18 December @ 11.00 Symphony Orchestra of Music University Belgrade will perform in Kolarac on 18th December with Vesna Šouc as conductor and soloists – UDE family VIENNA STRAUSS ORCHESTRA Belgrade Arena 14 December @ 20.00

The famous Vienna Strauss Orchestra under the direction of Edwin Marton will perform on 14th December in Belgrade Arena.

The Vienna Strauss Orchestra, founded by Johann Strauss in 1825, traditionally performes masterpieces such as waltzes "On the Beautiful Blue Danube", "Vienna Blood", "Tritsch-Tratsch" polka, "Radetzky March" and many others.

Orchestra is composed from 17 to 40 musicians, depending on the INTERNATIONAL CHOIR DAY Kolarac Foundation Hall 11 December @ 20.00 Program: Donato, Lamber, di Laso, Stevan Mokranjac, Miloje Milojević, Konstantin Babić, Ivan Jevtić, Tchaikovsky, Dušan Maksimović.

TRADITIONAL DECEMBER CONCERT OF JOVAN KOLUNDŽIJA Kolarac Foundation Hall 12 December @ 20.00 Famous Serbian violinist Jovan Kolundžija will perform together with his wife, well respected artist in her own right – pianist Nada Kolundžija.

Program: Bach, Lechkler...

RTS SYMPHONIC ORCHESTRA Kolarac Foundation Hall 15 December @ 20.00 Conductor: Clemens Schult Solist: Dragan Đorđević on violonchello Program: Schumann Symphony no.3 and Prokofiev „Sinfonia Concertante for violonchello andf orchestra“

type of concert. Prominent European artists have performed with the orchestra including the famous tenor Luciano Pavarotti. The Vienna Strauss Orchestra performed on the stages of Paris, Berlin, Rome, Venice, Barcelona, Tokyo, Mexico, Brussels and Salzburg.

Since December 2009, the violinist Edvin Marton, took up the role of soloist. Marton will perhaps be familiar to some as the performer on the Eurovision Song Contest 2008 held precisely in the Belgrade Arena.

The program will include pieces of Strauss and Mozart.

NATIONAL RTS ORCHESTRA Kolarac Foundation Hall 21 December @ 20.00 Concert of young singers.

RTS BING BAND Kolarac Foundation Hall 22 December @ 20.00 New Years Concert „Ladies Sing“ Conductor: Ivan Ilić.

MARKING OF 40 YEARS OF COLLEGIUM MUSICUM Kolarac Foundation Hall 24 December @ 20.00 KOLARAC CHAMBER MUSIC Kolarac Foundation Hall 25 December @ 11.00 Ensemble Metamorphosis New Years Concert.

Free Entrance BISERA VELETANLIĆ WITH GUESTS Kolarac Foundation Hall 26 December @ 20.00

culture news BALLET LA BAYADERE National Theatre 1 & 8 December @ 19.30 SVETLANA ZAHAROVA & FRIENDS Sava Center 3 December @ 20.00 One of the most famous ballet dancers, Svetlana Zaharova and her guests from Bolsoi Theatre, Millan Scalla and Hamburg Ballet will perform in Belgrade Sava Center on 3rd December.

13th NOVI SAD JAZZ FESTIVAL Cultural Center of Novi Sad 16-19 November The 13th Novi Sad Jazz Festival was opened at the National Theatre on 16th November.

The festival was opened by Novi Sad Mayor Igor Pavličić, after which the audience enjoyed an outstanding performance by flute player Laura Levai Aksin.

ALEXANDER National Theatre 6 December @ 19.30 OPERA LUCIA DI LAMMERMOOR National Theatre 3 December @ 19.30 ATILLA National Theatre 7 December @ 19.00 FILM LIGHTSCREEN Kinoteka, 9 December @ 20.15 Lightscreen is a film about Spanish photographer in Mexico, reporting on scubadiving in Jukatan and the gratest fish in the World – White shark. Organised by Instituto Cervantes.

The concert program of the fourday festival will comprise the total of 12 ensembles, and the first to take to the stage after the ceremonial opening was the Vladimir Kovačević New York Quartet.

Ron Carter, Gonzalo Rubalcaba, Duško Gojković, Big Band, the Magnus Mel Quartet and the European Jazz Ensemble are some of the artists that performed during this year’s Novi Sad Jazz Festival.

The preliminary programme started back on November 8 with various concerts, workshops and other events at the Novi Sad Cultural Centre.

Zvonko Bogdan Sava Center 24 November Pannonian chanson legend Zvonko Bogdan traditionally returned once again to Sava Center, with the tam-

NADIR. NARANJITO SHIPWRECK Kinoteka 10 December @ 20.30 “Nadir. Naranjito shipwreck “is a documentary about the secrets of the Naranjito sunken ship on the shores of Cabo de Palos. Organised by Instituto Cervantes.

EXHIBITION “ENCOUNTER WITH THE MEXICAN GRAPHICS” Instituto Cervantes, 23-31 November The exhibition “Encounter with the Mexican graphics”

by Tom Xylander, a versatile artist strongly influenced by the Mexican art, opened on 23rd November at the Instituto Cervantes.

Seventeen works from Mexico were displayed during the eight day exhibition. Most of them were made with a very demanding calligraphy technique.

The name of the exhibition, according to the artist, describes the best its essence - an introduction of Mexican graphics to visitors, but also an encounter that he experienced himself, as an artist, 15 years ago. Xylander is a landscape architect, photographer and graphic artist born in Munich. Traveling artists

bura orchestra performing classics such as “When the first snow falls,” “When I was a young hunter” or “Here’s my bank Gypsy”. Concert was enjoyed by many of Zvonko’s loyal fans of all ages.

Zvonko Bogdan is a singer and author, and some of his songs

7th INTERNATIONAL ARCHAEOLOGICAL FILM FESTIVAL, Sremska Mitrovica 14-25 November The 7th International Archaeological Film Festival opened on 14th November in Sremska Mitrovica, with the screening of a German film dubbed ‘Die Schlacht am Harzhorn. Roms letzter Feldzug nach Germanien’ (Battle at Harzhorn. Last Roman attack on Germania).

During the Festival, the audience had the opportunity to watch 14 film creations from Germany, Italy, Mexico, Greece, China, Belgium and Serbia.

Five films were from Germany, three from Italy and Serbia present film ‘Research in Montenegro 2010’. The film is about how the authors undertook an underwater research in the Bay of Kotor, in cooperation with the Montenegrin Ministry of Culture and the U.S. Embassy, using the latest methods of underwater archaeology.

The festival was organized in collaboration with the National Museum in Belgrade. have long been considered traditional such as “Hey, farms in northern Bačka”, “They told me you are cheating”, “At the end of the lake a small house” and many others.

10th Italian Festival of Contemporary Film Kinoteka 23-27 November Tenth Festival of contemporary Italian film offered this year selection of the best Italian film productions of the last season. Among the numerous film titles presented to Bel-

grade audience, titles that took part in Venice and Cane film festival were screened as well. Collaboration between the Italian Institute of Culture and IFKK-Italian Federation of Cinema Clubs made this event possible.

La Folía: “O Sacrum convivium” National Mesuem Belgrade 25 November La Folia is a Spanish group that has a long tradition performing authentic music from the era with antique instruments. On this occasion, group performed in five-member composition (two piccolo flutes, two violas, one vihuela and lute), dedicating their performance to To-

mas Luis de Victoria (1548-1611) whose death marks the fourth centenary this year.

The concert includes pieces from Kabesona, Victoria, Virhilijana, Bovičelija, Guerrero, Denso, Palestrina (Ronjoni, Selma), among others.

who out of curiosity came to Latin America to discover the inspiring culture of the continent. By 1995 he began studying with the famous Mexican Professor of graphics Miguel Alvarado.

He has exhibited in Mexico, USA, Cuba, Switzerland and now, for the first time in Belgrade. cordeditorial@cma.rs

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interview Aleksandar Milosavljević, Superintendent of the Serbian National Theatre (SNP)

150 Years of Serbian Theatre ”We need to maintain high artistic standards, and nurture new drama, opera and ballet audiences.

An opera like Mileva, a ballet like Don Quixote, or dramas like Nahod Simeon or The Doll Ship demonstrate how we can accomplish both goals” Aleksandar Milosavljević, superintendent of SNP 60 |

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heatre is something that we need, but don’t have. We are not a nation, we are not Serbs, nor shall we ever be or become that without theatre. The National Theatre will restore dignity in us and raise our self-awareness, bring us back to ourselves, reconcile with the past and the future. In short, only theatre can save us from moral death...”

This is what Jovan Đorđević wrote in “Srbski Dnevnik” (The Serbian Journal), in 1860, where he was editor-in-chief. Đorđević realized the idea of founding a professional national theatre, with the help of nine actors, a year later. The institution

www.cordmagazine.com

■ By Zorica Todorović Mirković

was born on the 28th July 1861, which is important to Serbian people. At the time, Serbia was a part of the Austrian Empire, which greatly determined the mission of the Serbian National Theatre – cultivate Serbian heritage, language, customs, traditions... As governments came and went, the Serbian National Theatre managed to survive. Today, the theatre functions in a completely different social and political environment, whilst still representing the culture of the Serbian nation. On the other hand, a lot has changed in the development of theatrical institutions, so the Serbian National Theatre of the 21st century has a very different mission. During this celebratory season, in which SNP marks its 150th

anniversary, its superintendent Aleksandar Milosavljević gives an exclusive interview for CorD.

Hence, it was important to show to Hungary that the Serbian national minority was very much alive.

However, if it were up to me, I would never change the name, just like the Yugoslav Drama Theatre never changed its name. This theatre, just like Serbian National Theatre, has developed into a real brand, not only domestically, but internationally. I am very proud of that tradition.

- We are a national institution that is financially helped by the state – Vojvodina’s Government and the Novi Sad local government, to be precise – and to some extent by the Serbian Culture Ministry.

Because of that, we are obliged to preserve the dignity and quality of artistic and theatrical creativity and represent this art form not ■ Also, the theatre changed addresses a number of times. only in local cultural and theatrical terms, but also abroad.

- SNP staged its very first plays at Novi Sad’s restaurants and I am underlining this since we are living in times when hotels – which was rather usual for that time. Later, landowner state authorities, by that I don’t mean only the Serbian authoriLaza Dunđerski built a theatre building in what is today the ties, are slowly but surely distancing themselves from cultural garden of the Vojvodina Hotel. institutions and leaving them to the market. In my opinion, The man who founded the Serbian National The building was built with the Theatre in Novi Sad in 1861 and its first purpose of housing a theatre the Serbian National Theatre and nothing else. It had special and several other cultural insuperintendent, Jovan Đordjevic, later stitutions should not be left founded the Croatian National Theatre in floors, the required equipment, 600 seats and electric lighting, to battle it out on the market, Zagreb and Belgrade National Theatre which was rare back then. Unthe state needs to take care of fortunately, this building perished in a fire. However, the theathem. In order to be able to preserve the drama, opera or baltre, just like a Phoenix, was reborn from ashes. In the following let ensemble, and this is something in which we and the Bel120 years, the Serbian National Theatre lived under somebody grade National Theatre are unlike anybody else, we need to else’s roof. For a very long time, it was located in Sokolski Hall be allowed to nurture new ballet, opera and drama audiences, (today’s Youth Theatre). It had the Ben Akiba stage at what is while maintaining high artistic standards, which is something today Újvidéki Színház Theatre. And finally, on the 28th March, I insist upon. An opera like Mileva, or a ballet like Don Quixote, 1981, the theatre relocated to the building where it remains to or dramas like Nahod Simeon or The Doll Ship demonstrate how we can accomplish both goals. I always keep asking myself the same question – who, if not a subsidized national theatre, is going to stage elaborate ensemble plays? That is our goal and our core mission at the beginning of the 21st century.

■ How important is SNP for Serbian culture?

- Unbelievably important! This theatre is an institution that gave ‘birth’ to all other theatres, not only in Vojvodina. Let’s not forget that Jovan Đorđević, who founded the theatre in 1861 and was its first superintendent, later he also founded the Croatian National Theatre in Zagreb and Belgrade National Theatre. That, of course, does not mean that SNP was the founder of those institutions, but they did emerge thanks to the people who originated from this theatre. True, that was the time of the Illyric movement, but we cannot deny the fact that Matica Srpska is the only institution that is older than the Serbian National Theatre and from which the theatre emerged. If Matica is considered the hub that has initiated all other cultural institutions, including SNP, then we need to say that our theatre is at the root of Serbian culture and artistic life.

■ Although, during its history, the theatre changed its name several times, the Serbian National Theatre proved to be the only authentic name.

- Many social and political circumstances led to the name changes. SNP was founded in the Hungarian Empire, i.e. during a time when theatre ensembles from Serbia proper and Hungary often came to Novi Sad to stage plays in Hungarian and German too.

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this day. The building spans across 24,000 square metres and it has the biggest stage in Serbia – the Jovan Đorđević Grand Stage with 940 seats, as well as the Pera Dobrinović small stage with 373 places and the Chamber stage with 118 seats.

Let me remind you that this building was built at the time of the former Yugoslavia when SNP was the only host of the national drama festival called Sterija’s Theatre.

■ You celebrated the theatre’s birthday in the renovated and reconstructed building. The works were funded by the Vojvodina Government. Vojvodina’s Prime Minister Bojan Pajtić said that SNP deserved to look superior for its 150th anniversary.

- For three decades, nobody invested a penny in the building’s infrastructure, the only work that done was the replacing of light bulbs and painting walls. Vojvodina’s Government and its Capital Investments Fund have made sure that our theatre, in this jubilee year, really shines. Approximately 450 million dinars was spent on reconstruction. Our roof no longer leaks, some of the installations were fixed or replaced, the bathrooms were refurbished, the stages were reconstructed and the wardrobe renovated. We also got two new rehearsal rooms, the lobby has a new glow and the seats were re-upholstered.

I was so touched by this good will gesture and Mr. Drobnjak’s readiness to invest in the culture of his people.

■ SNP’s opera ensemble gave its contribution to the celebration with the world premiere of the opera Mileva.

- Mileva was composed by Aleksandra Vrebalov based on Vida Ognjenović’s drama Mileva Einstein. We have commissioned this opera purposefully for our 150th anniversary. Apart from Novi Sad, audiences in Belgrade also saw the opera, inspired by the life and work of Mileva Marić Einstein, at the BEMUS festival. This opera is the ultimate work of art, a gift to Serbian opera and has fully validated our decision to commission it.

■ Is Mileva an exception or does SNP regularly commission art work?

- There are several examples of that in drama. Opera is somewhat more demanding. Composing an opera is a long process, with many participants, and is a rather costly project. For years, we have been commissioning dramas since SNP’s mission is not only to nurture new audiences but also to invest in new creative artists and make it possible for their work to be seen in a very serious national institution with the goal of becoming a classic. Some of the Serbian National Theatre’s repertoire is based on commissions which is our legaOpera Mileva is the ultimate work of art cy for the future – like Mileva or that is based on Vida Ognjenovic’s drama dramas Nahod Simeon and Me Mileva Einstein that was staged at BEMUS or Somebody Else.

■ Is it correct that the next phase entails acquiring new technical equipment?

- That is true and very important. Everything we did would be in vain if the plays took place in the dark. We need technological and technical support that will put us shoulder-to-shoulder with our European contemporaries. Vojvodina’s Government and Capital Investments Funds promised to provide funding for technical equipment and, next year, will allocate 120 million dinars for that purpose.

■ Have any business people or company owners offered to help SNP in its jubilee year?

- I am very disappointed to see that, in this jubilee year, none of the businesspeople in Serbia gave a penny to the national theatre. We did offer an opportunity to become our exclusive donors to several reputable companies, but were promptly refused. Only a Serbian – Belarus joint venture company, owned

by Mr. Dragoljub Švonja, helped us. We also received a donation from DDOR insurance company, but none of the big local businesspeople offered to help. And then something truly wonderful happened – the former SNP’s protégé and now retired doctor who lives in Germany, Mr. Momčilo Drobnjak, called us.

He said that he was willing to give a small donation. Lo and behold, a 50,000 euro cheque arrived to SNP soon after that!

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■ Drama and ballet ensembles also have their own premieres to celebrate the century and a half of the oldest theatre in Serbia.

- Every art unit will have its own premiere to mark the jubilee.

In the case of drama, that is Migrations by Miloš Crnjanski, directed by Vida Ognjenović, and in the case of ballet, it is The Destiny of Bard’s Wife (which is still a working title), choreographed by Staša Zurovac, which will premiere in March of 2012. The money to stage Mileva and Migrations was given to us by the Serbian Culture Ministry, and the culture minister promised that his ministry would finance the ballet too.

■ Does this theatre have what it takes to keep up with the 21st century and make it in Europe?

- Since the SNP was founded, several countries and organizational formats came and went. All of these formats, each in their own way, are present to this day in the mechanisms that make the theatre work, including the socialist self-governance.

Serbia is waiting to enter Europe, but the Serbian National Theatre did that a long time ago. And I am not talking only about the SNP from Hungarian or Austro-Hungarian times, but in contemporary Europe. ■

profile

Continual Success Raised in Porto, Portugal, where he gained a university degree in Management at Universidade Lusíada, Mr. Sousa started out as a real estate consultant and after just one year, was working in the private office of the largest real estate company in Portugal.

C

orD asks him about his successes, satisfaction and journey in becoming marketing director of Carlsberg Srbija.

■ Which experiences in the beginning of your business life built the foundations for your career in marketing and what were your roles?

- Whilst at the real-estate company I dealt with private investors, managing contractors looking for land and other corporate clients. During my final year of university, I worked as a financial consultant in a bank for a year. My first two experiences in sales, both in very particular and troubled industries, later proved to be fundamental for my understanding of client thinking and were crucial for raising my interest in marketing, which resulted in participating on a post-graduation at IPAM, at the Portuguese Institute for Marketing and Administration. I was fascinated by this discipline since I understood marketing as an essential tool to make salespeople’s lives easy... since every product or service with great marketing requires a lot less push or effort from sales than others.

anDrÉ manuel laDeiro jacQueS de SouSa, Marketing Director of Carlsberg Srbija

■ Can you tell us about your successes?

- Some of my professional successes were, for instance, Carlsberg’s sponsorship of UEFA EURO 2004, seen as case study of good activation, with significant sales and market share increase, but also the recognition from Coke, another sponsor and obviously one of the most experienced in the field. In the words of their CEO who said: “You kicked our... !” Another recent success was the full repositioning and long term strategy for “Água das Pedras” that resulted in sustainable growth from an almost even position in the market to absolute leader (>50%) in the Portuguese sparkling water market, in addition to the launch in Spain, the U.S. and more recently the introduction in Brazil, together with significant growth in markets like Angola, France, Canada and many other markets all over the world.

On a personal level, I consider myself very successful for having three beautiful daughters and for being, slightly, recognized as an amateur photographer by having the chance to display my work for the first time at a gallery in Portugal during last September. The importance of improvement for me comes from the fact that in order to fully taste success and be accomplished at work you have to be fulfilled in your personal life. Both things come together, inevitably, as a person cannot progress in only one of them...

Some books I would recommend are the “Tipping Point” by Malcolm Gladwell, “Winning” by Jack Welch, “Blue Ocean Strategy” by W. Chan Kim and Renee Mauborgne, “The Art of Possibility” by Rosamund Stone Zander and Benjamin Zander, “Super Freakonomics” by Steven D. Levitt and Stephen J. Dubner, “Four wheels round Africa: the first trip round Africa by car” a autobiographic documentary by the recent-

■ How did you come to be employed by Carlsberg?

- During my post-graduation I had already applied to Unicer Bebidas SA, the leading beverage company in Portugal, and was very fortunate to be chosen for a marketing position in the operational marketing team. After ten years of being involved in different marketing roles and projects and another two post graduations - one in Marketing at Universidade Lusíada and another in “Managing Internationally” in a joint venture between Oporto Business School and Erasmus University in Rotterdam - Carlsberg Group, that owns a minority “Some of my professional successes were stake (44%) of Unicer Bebidas SA, invited me for an exCarlsberg’s sponsorship of UEFA EURO 2004, seen pat experience. This was something that I was in search of for a long time. as case study of good activation, with significant ■ What do you find most satisfying and motivat-

sales and market share increase...”

ing about your job?

- This job gives me the unique experience of pushing my skills to the limit and being able to apply my know-how in a different culture, market and working environment. By doing it, not only have I consolidated my know-how, but I also learn a lot on a daily basis from my new colleagues. What motivates me most in my everyday work is the possibility to make a change. A change in the working environment of my team that will motivate them to go that extra mile and therefore win the competition in the marketplace at the end of the day. I believe that winning is not sustainable without real joy and pleasure in what we do.

ly deceased Portuguese reporter Fernando Laidley, a story of bravery and courage that I admire a lot because it represents the contemporary discovery spirit that still exists in the Portuguese essence and, finally, “My Secret” by Cláudia Jacques - my sister, that talks about how to live a positive and healthy life, which unfortunately is only available in Portuguese. I’m also a big fan of Winston Churchill’s quotes and find them very inspiring even today, regarding many subjects in life.

My motto in life is from Mahatma Gandhi - “Live as if you were to die tomorrow, learn as if you were to live forever.” I remember those words very often. ■ cordeditorial@cma.rs

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feature Different religions believe that the New Year marks the beginning of new life

Different Roots – One Spirit New Year is all about new beginnings, new desires and new thoughts.

All religions celebrate New Year as per their own traditions and customs but the enthusiasm is shared. It is said that New Year gives us a chance to leave behind the memories of the old year and regenerate, by promising to lead a better life in the year ahead. Some religions observe New Year with prayers whilst others welcome it with the boisterous bursting of fireworks 64 |

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D

ifferent customs and traditions give special importance to New Year celebrations. New Year falls on almost every month as per different religions. Some celebrate it in spring while others celebrate it in autumn.

Jewish New Year celebrations begin at sundown on the first day of September or October and end on sundown of the 10th day. The Gregorian or Christian New Year celebrations begin with parties, carnivals, dinners and ends with family visits. Hindus celebrate New Year almost every month because of the diversity in their culture. New Year is celebrated with a lot of jollity and vigour across India.

The way of celebrating New Year is a little different in the Celtic religion. They welcome their ancestors and offer them food and drinks. Muslims celebrate the day in remembrance of Prophet Muhammad’s flight from Mecca to Medina. Bahai New Year begins at sunset rather than midnight. In contrast to this, Buddhist New Year is celebrated in January (Mahayan countries) and April (in other Buddhist countries). According to Parsi mythology, New Year is the time when the universe is recreated. Parsis start their New Year by viewing auspicious items.

The tradition of the Julian calendar has been kept up in SERBIA, Armenia, Ukraine, Moldova, Georgia, Belarus, Kazakhstan, Bosnia and Herzegovina, Montenegro and the Republic of Macedonia

Christian or Gregorian New Year falls on January 1st. Countries following the Gregorian Calendar celebrate the New Year on this date. The Gregorian Calendar is a modification of the Julian Calendar established by the Roman Emperor, Julius Caesar in 46 BC. In 1582, Pope Gregory XIII of Rome, abolished the Julian Calendar as it was slightly long and caused vernal equinox to drift backwards in the calendar year (January 1st to December 31st). Gradually the Gregorian Calendar gained acceptance in several countries across the world as it created a balance between seasons and the calendar.

New Year traditions create a sense of responsibility and tie an emotional bond of togetherness, belief and faith. New Year traditions are followed with immense devotion and joy by the people of the Christian community.

The tradition of the New Year Baby is used as a symbol of rebirth by many Christians. The image of a baby with a New Year banner is displayed in many homes.

New Year ushers in the festive spirit. People splurge in New Year activities with fun and excitement. New Year brings happiness and so people makes a grand affair to welcome the coming year. New Year celebrations begin on New Year’s Eve. Christians attend balls, themed and private parties to celebrate the New Year. At the stroke of midnight, people make a lot of noise, hug, kiss and wish each other “Happy New Year”.

Serbian New Year, commonly called the Orthodox New Year or the Julian New Year. The Serbian Orthodox Church continues to celebrate their feasts and holidays according to the Julian calendar. A large part of the population celebrates Serbian New Year in a similar way - on January 1st.

At this time a concert is normally organized in front of either City Hall or the National Parliament in Belgrade, fire-

The popular name of the Hindu New Year is Vikram Samvat

works are prepared by the Serbian Orthodox Church and fired from the Church Cathedral of Saint Sava, where people also gather. Other cities also organize such celebrations. Restaurants, clubs, cafes and hotels are usually fully booked and organize New Year celebraNew Year celebrated by Muslims tions with food and is not a gala affair, rather it’s live music. a quiet and sober celebration A traditional folk name for this holiday, as part of the Twelve Days of Christmas, is Little Christmas (Mali Božić). Some families continue with the procedures of Serbian Christmas traditions.

The tradition of the Old New Year has been kept up in Armenia, Ukraine, Moldova, Georgia, Belarus, Kazakhstan, Bosnia and Herzegovina, Montenegro and the Republic of Macedonia. In the first half of the 20th century, segments cordeditorial@cma.rs

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of the Scottish Gaelic community still observed the feast, and today groups such as Edinburgh’s Am Bothan see this as a convenient date for Gaelic events.

Hindu New Year is celebrated according to the Hindu Lunar Calendar-Panchanga. The popular name of the Hindu New Year is Vikram Samvat. In the Indian Calendar, seasons follow the sun, months the moon and days both the sun and moon. This era of Vikram Samvat began in 57 BC. To correspond with the solar calendar, 57 years are subtracted from the Hindu Year. Thus, the New Year begins with the first day of Kartik Maas following Deepawali Amaavasya. The origin of the Hindu New Year relates to the legendary Hindu King Vikramaditya in 57 BC. Multifarious religions are practiced in India and so are the celebrations of various festivals. Hindu New

Medina to Mecca). This story is also broadcast on the radio.

Maal Hijra or the Islamic New Year is spent reflecting on how one is leading his or her life and their own mortality.

Punjabi / Sikh (Nanakshahi) New Year. The Baisakhi Festival, also called Vaisakhi, holds great importance for the Sikh community and farmers of the Punjab. Baisakhi falls on April 13th or 14th, the first day of the year according to the Nanakshahi Calender. Sikhs also celebrate this day in honour of their tenth guru, Guru Gobind Singh. Baisakhi commemorates the day when the Sikh Guru elimi-

New Year celebrated by Muslims is not a gala affair, rather it’s a quiet and sober celebration. More of a cultural event

nated caste differences and founded Khalsa Panth in 1689. For the large farming community of the Punjab and Haryana, Baisakhi marks harvest time. Farmers celebrate it with immense fervour, as they are loaded with cash at this time. Men and women run over the fields shouting “Jatta aayi Baisakhi.”

Jamshedi Navroz is the The sound of the shofar in the Parsi New Year. It ususynagogue is an important ally falls on the 21st March. aspect of the holiday Parsi New Year was named On Baisakhi, farmers thank god for the bountiful crop and pray after the legendary King of for good times ahead Persia, Jamshed who started the Parsi Calendar. As Year is celebrated with gaiety per Parsi mythology, the and pomp all over India. The enuniverse is recreated on ergy of the festival is mostly seen this day, and life, with all its among the people of North India glory, is cherished. Navroz and Gujarat. New Year in Southmeans spring and it is beern India also emphasizes the lieved that Mother Nature Hindu New Year, but the date and casts her spell by dressing traditions vary. up like a young bride. Thus, Islamic New Year has a lunar The Parsi community observs Navroz or New Year Navroz gives a new vision to based calendar, with 354 days. The in the city with fun and fervor everyone’s life. Parsis celeNew Year date also changes every brate the day with jollity and mirth. year, as the Islamic Calendar is 11 days shorter than the soParsi delicacies play a very important role in the New lar calendar. Maal Hijra or Islamic New Year is celebrated on Year celebrations. A sweet Ravo (made from sugar, milk the first day of Muharram (first Islamic month). The word and suji) and vermicelli are the best breakfast for Navroz.

Muharram also means respect. It is more of a cultural event After breakfast, whole families visit a nearby Fire Temple than a New Year celebration. People welcome the New Year or Agiary. Priests perform a thanks-giving prayer in the with peace and prayers. temple called Jashan and the congregation offers sandalNew Year celebrated by Muslims is not a gala affair, rather wood to the Holy Fire with covered heads. They wish each it’s a quiet and sober celebration. People gather in mosques other “Sal Mubarak.” and dargahs to offer special prayers. Muslims celebrate this Jewish New Year. The New Year for Jewish people is the day to pay homage to the Prophet Muhammad. The most most important event to them. The months of September important part is to tell the hijra (Muhammad’s flight from

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begins at sunset rather than midnight. So, New Year celand October (according to the Gregorian calendar) are for ebrations begin on the evening of March 20th. This feswelcoming the New Year. Everybody is in high spirits as is tival is the most widely celebrated by the Iranian and the mood of the festival. Festival celebrations begin with Zoroastrian communities.

Rosh Hashanah and end with Yom Kippur. Good health, Naw-Ruz falls in the month of Bahá. It is also associated long life and prosperity for all is the New Year wish of every with, ‘Him Whom God shall make manifest, the Promised Jewish person. A grand New Year celebration takes place One of the Bab’. The remaining 18 days of the month are and a lot of enthusiasm can be seen on the faces of all Jewassociated with the eighteen Letters of the Living. This inish people. There are many religious beliefs associated with dicated that the Bab wanted Naw Ruz festivities to encomthe celebrations of New Year. It is on this day that God recpass the nineteen days of the month of Baha. A week before reates the fate of his creatures. the New Year, lentils are placed in a dish to sprout. Bahais It is a 10 day long celebration. It begins at sundown of consider Naw Ruz as a day of gift giving and do not observe the first day and lasts untill sundown of the tenth day. Rosh this day as longer than one period.

Hashanah is celebrated in the first two days - meaning New Buddhist New Year occurs on different days in difYear according to the Jewish tradition. Yom Kippur is celferent countries following Buddhism. New Year in Theebrated on the tenth day of Tishri. The time between these ravadin countries - Thailand, Burma, Sri Lanka, Camtwo days is called Shabbat Shuva.

Rosh Hashanah and Yom Kippur are the two major festivals ritually performed during the ten day celebration.

Celtic New Year. Celt is a community of people in European countries speaking Celtic languages (mainly Indo-European languages).

These people celebrate various festivals, the most important amongst them is Samhain, the Celtic New Year. ‘Samhian’ is the word for November in the Irish The Hogmanay Parade celebrating the Celtic New language. November 1st is Year in Edinburgh Bahai New Year usually occurs on the 21st March every year

Good health, long life and prosperity for all is the New Year wish of every Jewish person. Everybody is in high spirits

bodia and Lao - is celebrated for three days from the first full moon in April. In the Celtic feast of Samhain. Celtic New Year is named Mahayan countries, after Sama - the Aryan God of the Dead. Samhain in New Year celebratiGaelic (Scottish language) means ‘summer’s end’. ons start on the first Samhain begins with An Geamhradh (the beginning full moon in Januaof the dark winter) and ends with Am Foghar (the ry. These countries Celtic harvest). celebrate the day The Celtic New Year has an important feature of according to their ‘divination of events’ - they use hazel nuts and symbols Buddhist New Year depends on the of origin: Chinese, Koreans ethnic background of wisdom for fortune telling. There were also some country and Vietnamese celebrate late and culture. People other Samhain traditions which referred to the Celtic January or early February of China, Korea and Emhain Abhlach (Paradise of Apples) where the dead Vietnam celebrate it in the month of January or early ate the scared fruit and became immortal.

February, while Tibetans usually celebrate a month laBahai New Year occurs on the date of the vernal ter. New Year is the time to hope for the best from the equinox. It is usually celebrated on the 21st March evecoming year. People reflect upon their past and rectify ry year. Bahai people have their own nine month calentheir mistakes. It is observed with the same spirit and dar of nineteen days. Naw Ruz is also called ‘The Day gaiety in most countries and regions. ■ of God’, ‘Yawmu’llah’ or ‘the Day of the Point’. This day cordeditorial@cma.rs

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sport The NBA Lockout and the US Economy

An Overstated Impact 68 |

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The last Collective Bargaining Agreement (CBA) of the NBA (http://www.nba.com) signed in 2005 guaranteed six seasons of play and had an expiration date of July 1st, 2011. The expiration date passed with no further contract signed, resulting in the cancellation of games until at least the end of November. This is only the second time in the league’s 65-year history a lockout has occurred

M

oney is the primary issue facing the continued lockout.

Under the old CBA, league commissioner David Stern announced at a press conference in late 2010 that, “... the league lost a total of $1 billion in the last six years of play.” The loss of revenue continues despite the league’s popularity steadily increasing during the same period. Last season alone, Stern stated the league had “losses that were approaching the $400 million mark.”

With the NBA keeping private financial records, it is difficult to know the exact amount of revenue lost, provoking the NBA players’

monetary bleeding. For Hunter, doubts regarding the league’s actual financial direness is leading him to do what he can to retain player earnings for the next few years.

There are a few main points of contention between the players’ union and the league’s owners, including the revision of the current salary cap and its inherent exceptions, the percentage of basketball-related income the players should receive, an effective way to share revenue among the 30 teams, a revision of guaranteed contracts and the slight possibility of league contraction.

The lockout won’t affect college and university players who have hopes of someday playing pro-basketball - the draft for this season has already happened.

The NBA lockout keeps eating away at the regular season, like the revolting tapeworm that it is. Regular season games had been re-scheduled and all November games were cancelled. As the stalemate drags on, officials lament the lack of basketball - but don’t believe it’ll do major damage to local economies.

Conventional wisdom has it that the NBA lockout is bad news not only for basketball fans, but also for the whole of theUS, with its already suffering economy.

Conventional wisdom has it that the NBA lockout is bad news not only for basketball fans, but also for the whole of the US, with its already suffering economy. Mayors from 14 NBA cities recently penned an open letter to NBA commissioner David Stern and players union chief Billy Hunter, pleading with them to end the lockout Mayors from 14 NBA cities recently penned an open association executive director Billy Hunter, who also letter to NBA commissioner David Stern and players represents the players’ union, to openly question the union chief Billy Hunter, pleading with them to end the league’s accounting principles and the validity of such lockout. “Lost in the debate over a new NBA collective numbers. bargaining agreement,” the letter reads, “has been “There has been ongoing debate and disagreement regarding the numbers,” Hunter said. “We Dissgrement: do not agree that the stated loss figures For Stern and the league owners, a new NBA needs to be reflect an accurate portrayal of the financrafted to stop the monetary bleeding. For Hunter, doubts recial health of the league.”

For Stern and the league owners, a garding the league’s actual financial direness is leading him to new NBA needs to be crafted to stop the do what he can to retain player earnings for the next few years. cordeditorial@cma.rs

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Validity: The NBA players’ association executive director Billy Hunter, who also represents the players’ union, openly questions the league’s accounting principles and the validity of such numbers.

“There has been ongoing debate and disagreement regarding the numbers,” Hunter said. “We do not agree that the stated loss figures reflect an accurate portrayal of the financial health of the league.”

Michael Jordan: NBA players say their idol, Michael Jordan, let them down at a critical stage in the NBA money row. Lakers star Metta World Peace, who changed his name from Ron Artest in September, said that players feel the hoops legend failed to support them “He’s an owner now, so I guess [as] an owner, he’s on the other side,” World Peace said, while dismissing reports that “All the players are hating on Jordan.”

Disappointment: Jan Vesely of the Czech Republic came to Washington for his introductory news conference and hasn’t been back since because of the NBA lockout. After helping Partizan Belgrade win its 10th consecutive Serbian title, Vesely’s dedication to joining the NBA has come up empty thus far, with the league and its players’ union still unable to negotiate a new collective bargaining agreement. The first month of the regular season has already been cancelled.

“It’s disappointing,” he said. “I was ready to play in the NBA. You wait one more season for Partizan, then you have lockout and you have to wait longer. It’s November and nothing is happening for me. It’s really sad, you know?”

Boris Bakovic: Fifth-year forward, Sarajevo-born Boris Bakovic, who recently had the privilege of representing Canada for the 26th Summer Universaide in China, thinks it’s not a good idea for the league to get rid of teams to save money, “but if Stern thinks so then maybe it should happen.”

The nba: The National Basketball Association (NBA) is the preeminent men’s professional basketball league in North America. It consists of thirty franchised member clubs, of which twenty-nine are located in the United States and one in Canada. It is an active member of USA Basketball, which is recognized by the International Basketball Federation (FIBA). The league was founded in New York City on June 6, 1946 as the Basketball Association of America (BAA). The league adopted the name National Basketball Association in 1949 after merging with the rival National Basketball League.

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the perspective [of city] residents and the negative impact a cancelled season might have on them, our cities, and our local economies.”

Without question, sporting events generate sizable, if often overstated, amounts of game-day spending in cities.

According to the Oklahoma City Chamber of Commerce, for example, every Oklahoma City Thunder game pours $1.3 million into the local economy. As The Atlantic recently pointed out, Spurs games generate $95 million for San Antonio, the Portland Trail Blazers made a $2 billion local impact between 1970 and 2004, according to a study, and in 2010 the Greater Memphis Chamber of Commerce estimated that the Grizzlies and their arena, the FedEx Forum, generate an annual economic impact of $223 million.

So, if these games are lost in a lockout, the thinking goes, NBA cities lose out on big money. The empirical work of a few sports economists, however, has proven otherwise. For example, a 2000 study by University of Maryland-

With the NBA keeping private financial records, it is difficult to know the exact amount of revenue lost

Baltimore County economists Dennis Coates and Brad Humphreys found that work stoppages in baseball and football between 1969 and 1996 - the NBA had experienced no labour disputes in that time period - had no impact on the economies of 37 metropolitan statistical areas with pro sports franchises. In fact, the models showed that cities saw a very slight increase in real per capita income during years with a work stoppage. Robert Baade, a sports economist from Lake Forest (Ill.) College, led a 2006 study that examined sales tax data in Florida. The study found that the lockouts and strikes since 1980 had no statistically significant effect on sales tax receipts in metropolitan areas that house pro sports franchises.

Why do lockouts seem to have no adverse impact? Start with substitution: Instead of spending a fortune at the NBA arena, fans may go out to dinner, a

the Dallas Mavericks won the championship 2010-11 and german movie, or a bowling alley, providing additional income Dirk Nowitzki was named most valuable player of the finals for other local workers and business owners. Spending gets redistributed within a city during a work ers spend time discussing the outcome of last night’s stoppage, but overall levels remain the same. “The game rather than devoting this time to job related acidea that, somehow, the only discretionary income tivities, then those workers will be less productive, in that people have is spent on pro sports is just wrong,” terms of output produced per unit of time,” Coates and Baade says. He does acknowledge that in today’s era Humphries write. “Less output will be produced, and of austerity, people might be more likely to save the less income generated. Fewer such opportunities exmoney that they otherwise would have spent on NBA ist during sports strikes. Therefore, other things being games, putting less fuel in the local economic engine.

But you can’t completely ignore The Atlantic recently pointed out, Spurs games generate $95 substitution when evaluating the million for San Antonio, the Portland Trail Blazers made a $2 billion economic impact of the lockout.

Secondly, as Coates and Hum- local impact between 1970 and 2004, according to a study, and in phreys point out in their paper, a 2010 the Greater Memphis Chamber of Commerce estimated that reduction in public spending dur- the Grizzlies and their arena, the FedEx Forum, general an annual ing a lockout can offset a drop in economic impact of $223 million private spending. “Professional equal, during these strikes one would observe higher sporting events increase metropolitan government productivity, production, and income.” In an interview, spending by driving up spending on public safety, Coates is more succinct. “After an important game,” crowd and traffic control etc.,” the authors write. “If Coates says, “how many people show up hungover?” this category of public spending declines during a The lockout will do some damage. On a more microstrike, and the metropolitan government either borlevel, arena support staff - the vendors, the concessionrows less or collects fewer taxes or fees as a result of stand operators, the security guards, the ticket takers this decrease in spending, then additional money will will be out of work, at a time when low-skill workers are remain in the pockets of private citizens.” having trouble finding other employment. The burger A third explanation offered by Coates and Humjoints and bars near the arenas will take a hit. These phreys (http://userpages.umbc.edu/~coates/work/ adverse effects are very real, and should not be marlockout200.pdf) is that it is impossible to quantify, but ginalized. Select individuals will suffer and will have to makes some intuitive sense. Without NBA games to obscramble. But cities will survive without basketball. ■ sess over, people will actually do their jobs. “If workcordeditorial@cma.rs

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88 December 2011 | 71

restaurant

New Moon ■ By Max williams

T

I have long been a fan of this refreshing, healthy and satisfying Japanese speciality. I am now even more enamoured. Moon Sushi & Fusion Food is the best offering of its type in Belgrade, albeit with minimal competition, and it even competes with far more established restaurants in Europe.

There is a culinary shift happening in Serbia right now, portions are shrinking and quality is rising. Moon is at the forefront of this rise in standard

here are lots of restaurants like Moon Sushi & Fusion food in the world. It’s just that there are very few of them are in Belgrade.

Or the Balkans. To be sure of finding another place like this you will have to head to a major European city, where they cluster like pigeons around a split sack of seed.

Here, restaurants like this are an exception to the rule. But it really couldn’t be simpler: a great kitchen where the chef does his intense, detailed, obsessive-compulsive thing to produce the best sushi in Belgrade.

So should you go? Yes, So should you go? Yes, though not though not for its novelty. for its novelty. Those with a sweaty, Those with a sweaty, overheated love of Japanese food overheated love of Japanese food will will find a lot to get frisky find a lot to get frisky about here about here. But there is one Moon just isn’t all that as the kids say: cold and slightly under-flasmall problem that seems to be the rule in Serbia and therefore voured. Not terrible, but not the best I have ever tasted. However, not a reflection on the quality of this restaurant. It is not a masas rice goes in Serbia, it is certainly above the standard. sive problem, and certainly not one that should deter you from It is a shame, because everything else is of such high quality. dining at Moon but it needs mentioning early. The problem is And with my only criticism out of the way, we need to move on this: the rice. I have heard certain sushi aficionados claim that to all that is good. the good stuff is “all about the rice”. This has always seemed a Moon Sushi & Fusion Food in Senjak, Vase Pelagica 54, is one rather silly, pompous thing to say. How can it be about the rice, of three restaurants in the Moon chain – the other two are locatwhen the thing that goes on top of it costs so much more? ed on Makedonska and Strahinjica Bana streets. I have eaten at Then I tried the sushi – the thumb-length pillows of rice with the Makedonska restaurant and can report that the food is equalraw fish on top – and I realised it really could be all about the ly as good and the decor (renovated earlier this year) in keeping rice. Good sushi rice should be warm, each grain capable of letwith the more relaxed atmosphere of the city centre location. ting go of the next with barely a shrug. Unfortunately, the rice at

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vourite dishes. What I did at Moon was have the equivalent of a Moon in Senjak is a different prospect to its sister restautrough full. With so contemporary and traditional dishes to choose rants. Very recently opened, it is geared towards the residents from, the healthy meal that sushi is supposed be flew out of the of this affluent corner of the city with its contemporary decor of window on a jet engine. Rakel, being the healthy Viking that she is, grey tones coupled with the large windows and high quality takept her greed far more in check. Between us, or more accurateble ware you cannot help but feel you are in a first rate joint. To ly between my lips, we had the delicious Gyoza (Japanese style open what was to become one the nicest sushi dining experiencdumplings), Saikoro Beefsteak – fine and tender strips of beefes I have had in a long time - the last being a poor meal at YO! steak, grilled and cut into bite sized pieces, the Tori Katsu – deepSushi in London - I had the spring rolls, whilst my Norwegian fried, breaded chicken Japanese style, sliced into strips, which was reviewing partner, Rakel served on a bed of fresh shredded cabbage with sautéed vegetawho certainly knows good bles and, to add to this exceptionally long list, various sushi, infish coming from a country cluding California and rainbow rolls. It would be a lie to say that where only the best will we ate everything, but we certainly ‘woulda’ if we ‘coulda’. do, had the salmon sashIt goes without saying imi with cucumber and that the key to good sushi fresh cream cheese. My is freshness, whatever the rolls (the spring not fat... fish. All the dishes that we actually maybe both) were chose could not have been filled with baby shrimp fresher. Presentation is a and vegetables. The key personal thing, but hapto fried food is that it pily, great minds seem to should be crisp, but never think alike as the chef and greasy, and they weren’t.

I were on the same wave The salmon sashimi was length in this department. that beautiful colour of orConsidering the number of ange that makes you know dishes we chose, it would it has not long been out of What I would normally do at sushi restaurant is be near impossible to make the water. If a Norwegian have a handful of my favourite dishes. What I did a list of every individual flasays that salmon is good, vour, and I think that with then you know it is bloody at Moon was have the equivalent of a trough full a restaurant of this type, it fantastic. Next to come is slightly pointless due to was something colourful the fact that in essence it is to wet the appetite. the quality of the ingrediI am not a big drinker, ents that make the impresand would never profess sion, not the way in which to being an expert in alcothey are prepared (someholic matters, unless famiwhat debateable I admit). ly members and stupid anThe highlight of the meal tics count, but I do know was the Moon special. The a good drink when I taste various elements blended one. The cocktails at Moon themselves into a taste unare a treat. Belgradians like any of the standard fare do love a good drink and usually on offer at your avcocktails are a tipple of choice for much of the younger populaerage sushi restaurant. tion and foreigners alike, that is why I think Moon has made such Moon Sushi & Fusion an effort in making sure their bar staff know how to make a good Food does something that mix. I am fully aware that a sex on the beach is not necessarily many Japanese style restaurants fail to do – produce quality the cultured accompaniment to sushi, but my word Moon knows dishes at a fair price. There are other places to eat raw fish and how to make one or three. It is very nice to see that Moon has speciality meals in Belgrade, but none of them offer this mix, made the effort in this area. Far too often, especially in smaller except of course for the other two Moon restaurants. As with countries, very little endeavour goes into cocktail making at resany business, there are areas for improvement, but they are mitaurants. Appetite wetted, hunger needing to be satisfied it was nor elements in what is a fresh take on Japanese food in Serbia. onto the main menu.

There is a new gastronomic star rising in Serbia. Who said a The menu at Moon is extensive to say the very least. What I moon can’t be a star? ■ would normally do at sushi restaurant is have a handful of my facordeditorial@cma.rs

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88 December 2011 | 73

travel A selection of the World’s best ski destinations

Sensational D

Skiing ■ By Max Williams

1/10

espite the cold financial front, some ski nations, including France, are hoping to replicate the record levels of business they enjoyed last year - even though warning signs such as the unusual early discounting for the peak New Year week might suggest differently. Skiers and boarders will always want their annual fix of the white stuff and there is certainly plenty on offer that’s exclusive enough - particularly for the readers of CorD - on the mountains to keep everyone entertained. We have located the best ski resorts across the world.

Borovets, Bulgaria The oldest Bulgarian winter resort is Borovets, dating back to1896. Today Borovets is the biggest and most modern resort in Bulgaria. It is situated on the northern slopes of the Mousala ridge in the eastern part of Rila. Huddled in venerable pine woods 1390 meters above the sea level makes it a great place for relaxation and recreation. The climate is also considered to be healthy.

Price Guide: 3/4* 1 room 2 persons (double room with breakfast) January avg.

7 nights - €600 5* 1 room 2 persons (double room with breakfast) January avg. 7 nights- €850 Ski pass 6 days p/p - €170

2/10 Bohinj, Slovenia A collection of small villages that surround the beautiful Lake Bohinj are dominated by the magnificent Julian Alps, affording some spectacular scenery. A superb ski school is on hand for those wishing to improve their skills. At the end of an active day there are a small selection of restaurants ideal for relaxing, sampling local drinks and specialities. The tranquility and stunning views give this ski resort a special charm.

Price Guide: 3/4* 1 room 2 persons (double room with breakfast) January avg.

7 nights - €600; 5* 1 room 2 persons (double room with breakfast) January avg. 7 nights - €1500; Ski pass 6 days p/p - €170 74 |

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3/10 Pelion Mountain, Greece While talking about beautiful locations for skiing, Pelion Mountain is easily one of the noteworthy locations. The best part about the ski resorts here is that not many people know about it and skiing here is still not explored completely. Greece has been gaining popularity for skiing among other winter sports. Pelion Mountains offer majestic scenes and is one of the most preferred destinations for those who have discovered the ski terrains here.

Price Guide: 3/4* 1 room 2 persons (double room with breakfast) January avg. 7 nights - €650; 5* 1 room 2 persons (double room with breakfast) January avg. 7 nights- €890; Ski pass 6 days p/p - €100

4/10

Årefjãllen, Sweden Skiing in Sweden is different from skiing in the Alps, the resorts are set in a landscape of forests, lakes and unspoiled wilderness. Åre, short for Årefjãllen, is where the slopes and ski accommodation is set along the shore of a frozen lake. Åre will suit beginners, intermediates and families skiing in Sweden as it is made up of green and blue runs. Åre is somewhat reminiscent of St Moritz - just as vibrant but in a much more remote setting.

Price Guide: 3/4* 1 room 2 persons (double room with breakfast) January avg. 7 nights €1100 5* 1 room 2 persons (double room with breakfast) January avg. 7 nights - €2000 Ski pass 6 days p/p - €190

5/10

Levi, Finland The mountains are not very high here, but Levi has a northern location that almost guarantees snow right down to the bottom of the mountain. The trade off for this is the cold and the dark. Some will love this at Levi, some won’t, but it is different! Don’t despair, the sun does give off some light from mid-January that allows you to ski without floodlights. Levi terrain parks are some of the best in Europe and put many of the big Alpine resorts to shame!

Price Guide: 3/4* 1 room 2 persons (double room with breakfast) January avg. 7 nights - €7000; 5* 1 room 2 persons (double room with breakfast) January avg. 7 nights- €1100; Ski pass 6 days p/p - €200 cordeditorial@cma.rs

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6/10 South Lake Tahoe, Utah, USA South Lake Tahoe is a magical landscape of water, ice and mountains and whichever resort you choose in this area, it will more than live up to your expectations of skiing in California. But what’s really different about South Lake Tahoe is the unique glitzy feel of the place. It’s located astride the borders between California and Nevada, where gambling is legal. Stay here if you like the sound of big Las Vegas-style casino hotels and some very glam après-ski!

Price Guide: 3/4* 1 room 2 persons (double room with breakfast) January avg. 7 nights - €1400; 5* 1 room 2 persons (double room with breakfast) January avg. 7 nights - €2100; Ski pass 6 days p/p - €230

7/10

Trysil, Norway Trysil boasts one of Norway’s largest ski areas set within the heart of Scandinavia. The imposing Trysil Mountain offers 64 runs in total with slope types to suit every standard and discipline. Trysil’s northerly location and 1132m altitude creates a snow sure ski destination. Trysil is exclusively for everyone who enjoys the mountain atmosphere and fantastic skiing.

Price Guide: 3/4* 1 room 2 persons (double room with breakfast) January avg. 7 nights - €1500 5* 1 room 2 persons (double room with breakfast) January avg. 7 nights - €3000 Ski pass 6 days p/p - €225

8/10

Niseko, Japan The ski resorts of Hokkaido, Japan’s northerly island have some of the best powder snow in the world. This island of extinct volcanoes provide a skiing heaven with an excellent range of runs set amongst silver birch woodlands. The Niseko mountain has three ski areas and three villages. Japan should feature on everyone’s list of unmissable ski destinations - no other area offers such a unique blend of culture and fantastic skiing.

Price Guide: 3/4* 1 room 2 persons (double room with breakfast) January avg. 7 nights - €1600; 5* 1 room 2 persons (double room with breakfast) January avg. 7 nights- €2400; Ski pass 6 days p/p - €210 76 |

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9/10

Tremblant, Canada In Tremblant, ski holidays come with a little something extra – this is a North American ski resort with a touch of French! Located in the beautiful Laurentian Mountains, Tremblant’s unique character, userfriendly approach and well-groomed slopes have earned it the title of number 1 ski resort in eastern North America for the past 8 years in a row. With over 600 acres of skiing and snowboarding terrain, this is the biggest ski resort in eastern Canada.

Price Guide: 3/4* 1 room 2 persons (double room with breakfast) January avg. 7 nights - €1700; 5* 1 room 2 persons (double room with breakfast) January avg. 7 nights- €3000; Ski pass 6 days p/p - €220

10/10

St. Moritz, Switzerland What is it with the Swiss and skiing that just go so well together? Located on the shores of an ice-cold lake in the Engadine Valley, St. Moritz is as exclusive as ski resorts get; with designer shops, Michelin-star eateries and hotels you need to book months in advance. In fact, if you half-closed your eyes, you may just think you’re in Hollywood.

Guide Prices: 3/4* 1 room 2 persons (double room with breakfast) January avg. 7 nights - €2000 5* 1 room 2 persons (double room with breakfast) January avg. 7 nights - €4000 Ski pass 6 days p/p - €250

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88 December 2011 | 77

techno talk

snowtastic W

hat can make skiing, boarding, and bruising more enjoyable? Having the most up-to-date technology, that’s what. Techno Talk does advise though that you have some level of basic proficiency at say, skiing, before donning a PoV camera for example. It is one thing to look like an idiot once, it is another thing to do so over and over agian in glorious HD. On the other hand, if you have the money and the skills, the tech to follow can help you look as cool as the wind feels as you slalom past the amatuers.

griffin survivor €38 The cheapest item here comes courtesy of Griffin. The survivor case - designed to protect the iPhone 4s and iPad2, is one of the toughest cases on the market. The case was tested and passed both U.S. and UK military standards. Although you wouldn’t want to use this case on a daily basis, there is no better case to protect your Apples on your snowy adventures.

Porsche bobsleigh €250 Traditionally, Porsche isn’t a name commonly associated with snow, although the German automaker has got into the SUV game. A couple of years ago, Porsche Design rolled (slid) out its award-winning aluminum sled for kids, and has now followed up with an advanced composite bobsled. It is certified to TÜV safety standards and weighs only 3.9 kg.

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transcend goggles €370 Goggles and sunglasses designer Zeal Optics has partnered with Recon Instruments to produce the Transcend GPS snow goggles. These are the first goggles to feature built-in GPS capability and an onboard display. The Transcend goggles provide realtime location, speed, and altitude data while you ski, snowboard, or snowmobile.

Contour + Camera €370 With the largest lens of any PoV camera, the Contour+ captures beautiful 1080p video and your spectacular fails in all their Full HD glory. The 2.8" aperture, 170° wide-angle rotating lens delivers the truest, high quality images with minimal distortion and fish-eye. The Contour+ is easily one of the best PoV cameras on the market. Not just for snow sports...

rossignol experience €590 The new Experience 98 is a powerful allmountain charger that combines beefy construction with a surprising versatility and ease-of-use for strong expert skiers. Whether charging powder, bowls or hardpack the Experience 98 is a true one-ski-quiver and a new breed of all-mountain high performance skis.

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techno talk

fischer soma vacuum €620 The plastic shells of these trail slayers are formed to your feet in the ski shop to ensure a perfect fit all season long. Better fit means closer contact to the shell, and better communication between boot and ski. All of this means you carve harder and stay out longer.

Not cheap for plastic, but definitely worth the money.

burton fish €640 Burton is best known for its clothes, but it certainly knows how to make a cool snowboard. The Terje Haakonsen and JG-designed Burton Fish is built for speed and combines a S-Rocker with a swallow tail to enhance float, punch, and acceleration.

This pocket rocket increases tight-terrain mobility without sacrificing float or crud-busting stability.

audi Carbon ski concept € tbC If you can buy Porsche bicycles, Lamborghini hard drives, or spend a day at the Ferrari World amusement park, then why shouldn’t you be able to snap on a pair of Audi skis? You may soon have the chance, given the reported success of the German automaker’s experiment with its Audi Carbon Ski concept. Designed and developed at Audi Concept Design in Munich, the downhill skis were created in collaboration with specialists from ski-making company Head, and the German Ski Association. The result is an ultra-lightweight ski that is said to offer premium performance.

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yamaha apex se €10,890 If comfort, reliability, and on-trail manners are what counts for your ride, then this state of the art snowmobile must be on your shopping list. Yamaha's designs offer onboard convenience mixed with durable power from a company that has decades of hands-on engineering expertise. Leave the sledges for the kids. This is a big boy toy!

brabus unimog u500 black edition €200,000 The Black Edition is suitable for a wide range of applications, including day-today use in the city (perhaps if one's goal were to demolish the city) and excursions to rough, snowy mountain areas (perhaps if one's goal were to demolish the mountain).

Indeed, the Brabus Black Edition gives new meaning to the phrase, "Go anywhere."

koenigsegg agera r – base €1.2 Equipped with special Michelin tires and a custom made Thule Roof Box, the Speed Racer is ready to attack the ski resorts. The R comes equipped with a special roof section featuring an integrated Thule carbonfiber ski-box containing two pairs of Koenigsegg skis. This €20,266 roof-box can be easily swapped for a conventional roof section when not required and has a top speed rating of 186 mph. Winter wheels and tires are another €8,460 option. Bargain.

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fashion

Functional Fashion W

Winter is upon us. Unlike in the summer, when you can get away with fashion over function, this season is very nearly the opposite... not quite though. This is the time of year to thaw out the bank account and look as cool as the weather feels

arm, luxurious and fashionable winter wear is always a prerequisite and this year is no exception. Your coat for a kickoff is the first thing people see when they meet you. And you'll probably wear it nearly every day, hence it needs to be versatile. The purchase of a winter coat is perhaps the biggest of the shopping year. This is one item to spend as much as you can on, with regards to cash and time.

The secret to buying winter wear is that it should give your body shape. You use the same principle when buying your summer wardrobe, so why stop in winter? The material, whether it be a Gortex shell for the slopes or wool for Strahinjica Bana, also need to be functional. Avoid the temptation to stick to classic black when it comes to your winter wear.

The season will seem a lot less dull if you infuse some colour into your wardrobe. Follow our guide to be at your warmest and most definitely coolest.

Old-Fashioned Fur For men a little good old-fashioned fur along the edge of your nylon jacket’s hood will catch snow as it falls and hugely improve visibility. This comes in handy when climbing mountains.

Or, you know, walking to work. Either, really. For women, the real news this season is faux fur. From all over impact to just a touch on a collar or cuffs, it’s the easiest way to elevate your look (night or day) with a little bit of glam to go.

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Down It’s the warmest stuff on earth, for one, with each cluster of down containing dozens of filaments that trap warm air. For another, a down jacket’s insulating ability is measured in “loft,” the number of cubic inches an ounce of down fills. In general terms, 500 is a low loft, and 800 is a high loft. The best jacket to pick will have the lowest weight, for ease, and the highest loft.

Mix Wool is warm as hell and comes from nature. Nylon, also sometimes known as polyamide, is incredibly strong and made by man. Combine the two in a blended cloth and you get the best of both worlds. Also, cotton and wool are two fabrics that benefit from the inherent qualities of each other after blending. It gives better comfort, better aesthetics and better performance.

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Accessories Accessories are important. Gloves, scarves and hats will keep you warm and protected from the elements while completing your outfit. A quality pair of lined leather gloves in a classic black or dark brown will complement most outfits. A basic selection should include dark, neutral and at least one colourful scarf whilst hats should be selected to suit your style.

Boots There are hundreds of different styles of winter boots, and therefore it can be rather difficult to find the best winter fashion boots. Also, the troubling thing in winter is that it’s always your feet that get cold first. Don’t get caught shivering this winter. Find yourself some new winter boots and keep those feet toasty warm.

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Ski F Essentials

ollowing on from our travel guide, we feel it only right to give you the list of basic accessories that are must for your time on the slopes. Of course, as with any sport, there are a myriad of things to help you look as good as you’d like to be, but without the list below you are better off staying in the spa.

Goggles Eye protection is a must and there’s no question that good ski goggles should be an essential on everybody’s skiing checklist, especially in the cold and high wind of mid-winter.

Sunglasses Sunglasses can be worn whilst skiing, but these will look much better and won’t get damaged while you sip a hot chocolate at a mountain top bar.

Jacket The most obvious and essential piece of skiing kit. There is nothing worse than being cold, wet and miserable on the slopes. Quality is the key.

Boots After a long day of skiing, why spend unnecessary time in your ski boots?

Indulge your feet and put on a comfortable pair of après-ski boots. cordeditorial@cma.rs

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DIPLOMATIC

Services

Dufry Diplomatic Services Serbia Phone: +381 11 205 41 47 Fax: +381 11 205 41 47 E-mail: diplomatic@rs.dufry.com http://diplomaticservice.dufry.rs

DIPLOMATIC

Services

cordeditorial@cma.rs

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