H.E. MEHMET KEMAL BOZAY
www.cordmagazine.com
Ambassador of Turkey to Serbia
STRENGTHENING THE PARTNERSHIP
ARCHITECTS OF OUR OWN FORTUNE
PETER N. DUE
MILOŠ JELIĆ
Representative of the SecretaryGeneral and Head of the UN Office in Belgrade
Executive Director of Nelt Group
OCTOBER ’14 / ISSUE No. 121
SOLID AND PROMISING RELATIONS
interviews opinions news comments events PRICE 300 RSD EUROPEAN COMMISSION - SERBIA PROGRESS REPORT
Positive
DEVELOPMENTS THE EURO ZONE
The World’s Biggest
ECONOMIC PROBLEM AUDIT BUREAU OF CIRCULATIONS
Does Serbia Need Media
TRANSPARENCY?
MATIJA BEĆKOVIĆ POET, ACADEMIC
Wrong
SIEVE
ISSN 1451-7833
9
771451
783002
2 |
121 November 2014 | www.cordmagazine.com
cordeditorial@cma.rs |
121 November 2014 | 3
November 2014 • Issue No. 121
PAGE 8
CONTENTS
COVER
Wrong SIEVE MATIJA BEĆKOVIĆ, poet, academic
EDITOR: Saša Marić s.maric@aim.rs
Matija Bećković has long been a classic of Serbian literature, the greatest living poet, who fills halls when he recites his own poems. His verses are among the most quoted in the last century. Some of them are Vera Pavladoljska (named after a poem he dedicated to his wife), Metak lutalica (Stray bullet), Tako je govorio Matija (As Matija said), O međuvremenu (About the meantime)...
ART DIRECTOR: Ilija Petrović i.petrovic@aim.rs
PAGE 6
PAGE 30
PAGE 47
WHERE DID SPORT DISAPPEAR?
ARCHITECTS OF OUR OWN FORTUNE
POLITICAL SUPPORT IN EXCHANGE FOR 5 MILLION WORKPLACES
MILOŠ JELIĆ Executive Director of Nelt Group PAGE 33
SLOBODAN GEORGIEV PAGE 14
SOLID AND PROMISING RELATIONS H.E. MEHMET KEMAL BOZAY, Ambassador of Turkey to Serbia
THE WORLD’S BIGGEST ECONOMIC PROBLEM The Euro Zone PAGE 35
Business Dialogue PAGE 37
INTELLIGENTLY TAILORED
PAGE 18
GLOBAL DIARY PAGE 20
STRENGTHENING THE PARTNERSHIP
PETER N. DUE Representative of the SecretaryGeneral and Head of the UN Office in Belgrade PAGE 23
POSITIVE DEVELOPMENTS
European Commission - Serbia Progress Report
HUNGARY Economic Reforms PAGE 83
ALL THE WAYS DRONES CAN BE USED Drones Become a Reality PAGE 84
TIME TO CREATE NEW VALUES
Creative Industries of Serbia PAGE 90
BILJANA JOVANOVIĆ Owner and Director of Luna Fashion House
HOME GREEN HOME
PAGE 38
PAGE 94
BROAD AUTHORISATION
GET READY FOR CHRISTMAS PARTIES
SAŠA VARINAC President of the Republic Commission for the Protection of Rights in Public Procurement Procedures PAGE 42
SUCCESS EVEN IN TURBULENT TIMES PREDRAG ĆURČIĆ Visan Business System PAGE 46
Green Gadgets
Fashion
PAGE 98
POSITIVE SPIRIT
DINA JANEVSKI Brand & Marketing Communications Director, CMO division of Telenor Serbia
CONTRIBUTORS: Rob Dugdale, Mirjana Jovanović, Radmila Stanković, Steve MacKenzie, Zorica Todorović Mirković, Tijana Jovanović Petrović, Sandra Žuvela PHOTOS: Zoran Petrović, Časlav Vukojičić COPY EDITOR: Mark Pullen TRANSLATION: Snežana Bjelotomić SALES DIRECTOR: Melita Andrejević m.anderejevic@aim.rs PROJECT MANAGERS: Biljana Dević, b.devic@aim.rs Ivana Krsmanović, i.krsmanovic@aim.rs OFFICE MANAGER: Nataša Nešić n.nesic@aim.rs EDITORIAL MANAGER: Tanja Banković t.bankovic@aim.rs FINANCIAL DIRECTOR: Ana Besedić a.besedic@aim.rs EXECUTIVE DIRECTOR: Ruža Ristanović r.ristanovic@aim.rs GENERAL MANAGER: Ivan Novčić i.novcic@aim.rs PRINTING: Rotografika d.o.o., Segedinski put 72, Subotica CorD is published by: alliance international media Makenzijeva 67, 11111 Belgrade 17, PAK 126909, 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 2014
NEW INVESTMENTS IN THE PIPELINE Mineco Limited
This issue is audited by ABC Serbia
Subscribe NOW and save 10% 11 ISSUES FOR ONLY €29 Call our subscription line +381 11 2450-508, 2450-122 4 |
121 November 2014 | www.cordmagazine.com
cordeditorial@cma.rs |
121 November 2014 | 5
COMMENT
Where did Sport
Disappear? by SLOBODAN GEORGIEV
Sometimes it seems that all talk about Serbian sport is associated with violence. Today we are faced with the decision of UEFA to punish Serbian football as a result of the incidents at the qualification match for the France 2016 European Championships between Serbia and Albania
S
they are not exploited by a manager then someone at the club will erbia won, says UEFA, but those points have been deductdo that, because clubs do not exist to enable children to develop ed due to the poor organisation of the match, the pitch innormally, but rather to make multiple earnings from them. vasion of hooligans and the attacks on players of the visitThat’s how it is in football; that’s how it is in basketball, that’s how ing team. The media is awash with pictures of the hooligans it is in tennis... wherever it is possible to turn over a bit more money. running across the pitch, prompted by the “descending drone”. The state has withdrawn and left the sporting halls and pitches After Genoa in 2010, after Kruševac in 2012, now the “Humska to tenants, while sport has been expelled from school because even case” casts a dark shadow on everything positive achieved by the school gym halls have been leased out. There is no possibility that a athletes themselves in the previous year. And there is certainly a lot child can be involved in sport that does not empty the pockets of parof that for such a small and poor country. ents, while at the same time the state subsidises numerous clubs with Novak Đoković is a world tennis legend, our ladies tennis playmillions of euros without any kind of control or without any result. ers are at the top of the world game, our water polo team runs ramPolitical parties convey their mutual friction on the sporting page at international competitions, our basketball players shone pitches and political figures head sporting federations, while hoolithis summer at their world cup – these are just some of the big gans direct the masses of fans using the instigator tactic. things achieved by Serbian athletes recently. Because of that it is possible to more easily identify with the Even these national team footballers represent their country perpetrator behind whom someone powand their sport in the best way at their clubs erful always stands, rather than with some across Europe. Political parties convey footballer or basketball player from Serbia Serbia is a land of sport, but it is also a their mutual friction on who excels every weekend. land of hooligans that the government does the sporting pitches and That’s why it is important to try to turn not want to deal with. things around and to try to put pressure on I have spent years following the “hoopolitical figures head decision makers to implement reforms in ligan – sport” scene in Serbia and the consporting federations, the field of sports and physical education, clusion is clear: organised gangs of hooliwhile hooligans direct with the aim of popularising sport and progans are instrumentalised by people around sport and politics. They carry out violence the masses of fans using moting healthy lifestyles. Here our state and its intervention is more necessary than and terror in the stands and in the streets, the instigator tactic in some other things, where it is heavily inand those who use them as instruments, volved and should not be. politicians and “club owners”, conduct violence in the sport itself. For a start it would be enough to return sport to schools and We all see what hooligans do, but what their bosses do often physical education teachers to school sports hall and give chilremains in the zone of the unknown, because they move in the indren the chance to develop normally. One study by the Ministry of stitutional environment that they created themselves and that enEducation showed that the majority of school directors in Serbia ables them to make incredible earnings from parents and their talare actually teachers of physical education. And then motivating ented sporting children. people with money to invest in sport and not snatch kids from their One study by Deloitte a few years ago showed that Serbia is in the parents and then snatch the future from those kids. world’s top five countries in terms of the number of exported footWhen the children in our schools are again able to go back to the ballers. These are most commonly older teenagers or younger senior “sports section”, when the family can be together and carefree in enplayers, who are in some kind of slave relationship with their “managjoying football or basketball, without fear that someone will hurt them, ers”, who recruited them early and took advantage of poverty strickwhen the government decides that the priority at stadiums will be given en parents to “buy” them for a small amount – though of course, not to spectators and athletes, and not hooligans and managers, then we without the consent of the clubs and sporting association. will perhaps be on the road to healing the culture of sport in Serbia. ■ Nobody could advise those parents, because they know that if
6 |
121 November 2014 | www.cordmagazine.com
cordeditorial@cma.rs |
121 November 2014 | 7
INTERVIEW
■ By Radmila STANKOVIĆ ■ Photos: Zoran PETROVIĆ
Wrong SIEVE MATIJA BEĆKOVIĆ
POET, ACADEMIC
Matija Beć ković has long been a classic of Serbian literature, the greatest living poet, who fills halls when he recites his own poems. His verses are among the most quoted in the last century. Some of them are Vera Pavladoljska (named after a poem he dedicated to his wife), Metak lutalica (Stray bullet), Tako je govorio Matija (As Matija said), O međ uvremenu (About the meantime)...
8 |
121 November 2014 | www.cordmagazine.com
A
sharp satirist during the period of the government of Josip Broz Tito, the author of a sentence first pronounced in the year 1989 – Kosovo, the most expensive Serbian word, which has become part of the national anthologies, a rare example among the academics who has sharply criticised the government of Slobodan Milošević, Bećković offered his public support to only one opposition leader who was later to come to power - Vojislav Koštunica (DSS). Today it is difficult to imagine how much writers meant in the world at the beginning of the 1960s, especially in the Soviet Union, and here Matija Bećković appeared:
POETS
LACK OF FAITH
POLITICS
There is no case of poets writing poems in any other language than their mother tongue. Poets are priests and their church is language, their native language.
We cannot compensate for a lack of selfconfidence and faith in our own by listening to what we are told by those whistles that blow from every side.
Art is deprived of its role. It's all turned upside down in order for politics to be able to dominate and for artists not to be a bother.
“Art in those years struggled for some degree of autonomy. It was believed that you aren’t any kind of artist if you’re not capable of outsmarting the censors. The ball was lifted high under the basket and few were unable to reach it. Over time, poetry exited the jurisdiction of line policemen. Poetry rallies were those that are today rallies for daily needs. Poets were viewed as heroes in culture and freedom”.
■ You did everything the opposite of Andrić. You did not stay silent, you challenged the authorities. And yet you were awarded with the highest state recognitions – the October Award, the Seventh July Award... How come?
- In this struggle for true values, for real aesthetic criteria, one of the victories was to award the works of someone like me. The jury for the October Award included Ivan Lalić, Petar Džadžić, Predrag Palavestra, Milan Vlajčić... They were punished by the party for ■ However, at that time of rigid comawarding that prize to me. That was munism, socialism, it was important their great their courage and their to survive as an artist. Was this was victory. It was much more difficult even true for a Nobel Prize winner for the state to give me an award than like Ivo Andrić, for example? it was for me to receive it. That year - Ivo Andric was a blackmailed man. an award was presented to me by He kept quiet in order to ensure he director Živojin Pavlović [founder of wouldn’t make it impossible to do Serbian film noir] and that presented that for which he was born. That a major problem. was more important than engaging At the City Committee of the around I don’t know what. That is a League of Communists they waited formula for the existence of artists for factory workers to send their in general in the Balkans. But when protests. I remember that some car one thinks of what he achieved, and painter or model maker was very how he succeeded in ensuring noactive in writing letters to Politika body objected to what he had been [daily newspaper]. Fighters from prior to World War II, that nobody New Belgrade said they would not published a single photo from the allow me to receive it, because they time of his diplomatic service, hats would come to swoop on me and off to him. fight against desecration of those awards and that date. Branko Pešić ■ If it had wanted to, the government could have compromised Andrić by We will not impress anyone by [the most popular and longest serving Belgrade mayor] told them that publishing pictures during the presplaying other people’s tunes he had his own police force and that entation of his credentials to Hitler and retelling what we saw and if they came they would have to deal in 1939? heard somewhere with him. It was Pešić, of course, who - It could have, but it didn’t. Ivo presented the award to me, although Andrić was the only member of the according to protocol previously the prize for literature had Association of Writers of Serbia who came to the association been awarded first, this time it was given out last. every 6th January to pay his membership fee for that year and asked for his membership card to be stamped to confirm he’d paid. When he passed away and I went to his apartment, he ■ From the hand of a man who you would later severely critihad a whole collection of bills for the payment of rent, taxes, cise, Slobodan Milošević, you received the 7th July Award in electricity, telephone... because he thought that at any moment 1989. And there was also a problem? proceedings could be launched against him for failing to pay - Then SUBNOR issued a statement in which it strongly prothe rent, and it’s no wonder he didn’t pay when he signed the tested the decision to give me that award, and someone told Tripartite Pact! He was a frightened man, and he was most me that at the time Milošević told the then president of SUBscared when he received the Nobel Prize. NOR, Matijašević, sharply: And you do not have other things cordeditorial@cma.rs |
121 November 2014 | 9
to do than worry about who wins a literary prize?! That was an amazing and unexpected novelty, because that old Montenegrin saying still held: I haven’t read that Dostoyevsky, but if he’s as talented as they say I have nothing against him, let him be published. (SUBNOR)
■ What was the most difficult aspect of those cotton wool times? - It is difficult to present that today. I think there were more informants around me than anyone can imagine. I told them more than they ever asked and more than they expected me to be able to say. They should not have bugged me, because I’d say everything I wanted. I then formulated the thought that my su-
his son after his father who was in the Chetniks and when the committee complained he said: If you have something against it, I will change it. ■ Many were surprised when you supported Vojislav Koštunica,
who has today been left without a function and without a party. What attracted you to him and what do you resent about him today?
- I resent that he ever dealt with that when he was an intellectual and an honest man who was most suited to being a professor and a scientist, and that he loaded onto himself a ball he did not have to wear. And he was not greedy about money, nor about all the stupidity that goes with politics. I was with him along a purely friendly, private line. If someone else had called me, I would have been with him. I didn’t refused to do what I can for someone, and to say what I think, to say what I want. The funniest thing is that he made me a candidate several times for this or that or the other, thinking he was doing me a great honour. Then I always thought of Polish pianist Padarevski when someone in Paris asked him: Maestro, when will you have a concert? And he said: Well, I won’t do so soon. I am now the prime minister of Poland. To which the disappointed Frenchman said: Oh, quelle degradance! The fact that you’re an artist, a poet, means nothing in our country.
pervisor was Goethe. And I even said: The role of SANU in all events Just as I progressed more as a poet, is to that extreme exaggerated ■ Since when have you been friends so my father received higher and higher rank among the Serbian Royand falsified, with some intent with Metropolitan Bishop of the dioalist Chetniks. If I was, for example, cese of Montenegro and the Littothat is difficult to trace, but to receive the Nobel Prize, he would ral, Amfilohije Radović? Why do you could not be defended be Hitler! [Vuk Bećković, Matija’s fathink his place in the Serbian Orthother, was an officer of the Kingdom of dox Church is important? Yugoslavia who joined the Chetniks in 1944 and was killed that - Had it not been for him, there would be no Serbian church same year in Slovenia]. in Montenegro. He and I are childhood friends, and actually You could say that, in fact, my father suffered more than I my mother was friends with his father Ćira, who was the only did. He was the leader in a remote area who no one would have one to send his son to the seminary rather than sending him known about if he hadn’t gone out to vote together with me. to a military academy, so Risto could be a prison warden in Since no one admitted that their father was a Chetnik, my faSpuž, or a commandant of places in Mateševo, while his son studied classical philology and theology. That was great herother was the only Chetnik, and at one time I carried that banner and was branded as such. I could not change myself, but maybe ism in the former Montenegro, where godlessness received I could have changed my destiny. unimagined forms. The church served as a warehouse for cement, a storage space for shovels and spades, where graves had no crosses. ■ How? The government thought that when the church collapsed in - By, for example, sitting from my early morning with the secupper Morača that those in the Vatican, when they saw it, retaries and waiting for their bosses to arrive, all whiny and would follow this example and close the church of St. Mark. promising that I would change. In my area one man named 10 |
121 November 2014 | www.cordmagazine.com
When Amfilohije went as a monk to Greece to Rome, and after a few years we met in Paris. We walked the Champs-Elysees he was in a cassock and unknown people approached him to kiss him on the hand. He is the grandson of Morača duke Mina Radović and he’s done more for Montenegro than those who criticised him for not being a good Montenegrin could even imagine. He resurrected Montenegro when it comes to the Church and before he got involved female monasticism in Montenegro did not exist. The diocese of Montenegro and the Littoral is the largest institution in Montenegro, since it employs 1,200 people. ■ According to the testimony of in-
siders, Amfilohije Radović is a personal friend of Pope Francis and at his invitation he attended the papal inauguration in March last year?
terested. For me SANU remains not what it is now, but what the Serbian people thought and think it is.
■ And that is? - I will illustrate it like this. When Nikola Tesla, at the height of his earthly glory, was selected as a member of SANU, he sent a telegram that exists in the Academy, the content of which is as follows: Back in my childhood I heard about that highest Serbian scientific institution. I never imagined that I would someday have the honour of being a member. If I had not earned that honour to date, I will try in the future to justify the honour you do me. Thus and that much.
- That’s nothing strange. He was in Argentina and I was with him in Russia, where I assured myself that speaks better Russian than the Russians, along with French, German, Greek, considering that he received his doctorate in Greece. We were together in St. Petersburg when they told us that their metropolitan was busy. After we sent a message that he was being sought by the metropolitan of Montenegro, the Russian bishop came immediately. ■ How do you see the role of the
Serbian Academy of Science and the Arts today? Does it have a real influence on political developments in the country?
Now the only thing without an alternative is politics. Instead of culture reforming politics, politics has reformed art and liquidated culture
- There is not a nation that does not have its own academy, but there is not one academy that is exposed to such challenges every day. Someone who does not have enough qualifications to serve on a service counter in a municipality may freely dispute SANU and no one will hold that against him, nor will there be any ramifications. On the contrary, many will commend him for that as brave and heroic. The role of SANU in all events is to that extreme exaggerated and falsified, with some intent that is difficult to trace, but could not be defended. In vain the Academy said that it never published any Memorandum, that it never adopted one, that one was never written or adopted. It is taught in schools that it was written and that it ignited the powder keg. That fact that SANU has never in its history adopted any document and that it is an institution where such a thing is impossible, because it is enough for one to be against for that not to be the stance of the Academy, no one wants to hear that nor is anyone in-
■ How did you resolve your Montenegrin origins and affiliation with Serbian literary tradition? Was it worth it when Andrić said he belongs for life to Serbian literature if that is still disputed today?
- This game is played for a long time. So these years of ours, one hundred years, two hundred years, when we look at them from the perspective of eternity, it is not even a second. And not to mention these lies and nonsense devised for daily needs. Who knows what else he did that has been forgotten, and so much trust in a lie. And, after all, where are the people who were witnesses of how they brought down the state and frameworks that were a thousand times more firmly designed and formulated, where each screw functioned, had its place, but which collapsed like a house of cards. And now they believe how a bubble could be eternal. ■ How would you explain Serbian shyness and Montenegrin re-
straint in marking the 200th anniversary of the birth of famous poet and bishop Petar Petrović Njegoš? cordeditorial@cma.rs |
121 November 2014 | 11
- When Amfilohije Radović declared Njegoš a saint in Cetinje, tion of the poet is like, that is the position of the language. And just as Njegoš declared Petar a saint, the Serbian Patriarchate the fact that poetry reached the position of saying that it is over, protested that it was not canonical and at the convocation they that other media and other art replaced poetry, that also coinrefused the Amfilohije’s proposal, which is unheard of. This cided with the positioning of the language. Before the end of is because when a bishop, a Metropolitan, suggests someone history and the end of man is declared, we have heard of the from his diocese, from his metropolis, that is usually accepted. end the book and the end of art and the final end of the pen and This time it was not so. Since I commented on that publicly ink. In other words, the end of the world has been proclaimed several times, Patriarch Irinej said to Amfilohije: By God, if under other names. Fortunately, we have experienced the end you live longer than Matija, you will also declare him a saint. of such prophets more than the realisation of their prophecies. He liked that so much as a joke that he retold it in numerous places. I met him at the Court of Karađorđević at a celebra■ Once upon a time art had no alternatives? tion of St. Andrej the First-Called - That’s right, but now the only thing and, judging by how he smiled and without an alternative is politics. Inlicked his lips, you could see what stead of culture reforming politics, he would say. And then he told me politics has reformed art and liqhow he had said to Amfilohije that uidated culture. But, without deep if he outlives me he would also dehumiliation and real suffering, there is no art or culture. In other words, clare me a saint. I looked him in the margins and pennilessness could be eye and said: From your mouth to a real challenge for those who have God’s ears. From his reaction, I saw something to say. Good thing there’s that he would no longer be retelling no money, because everything of that anecdote. value was created long ago. What There was no case that some do you need money for if you have saint, like for example the holy nothing to say? This is simultaneBishop Nikolai, who wrote that Njegoš is a saint, said that someone ously also a message. Do not give is holy, while those who are not holy up if you are real, do not seek any say he is not. Njegoš was a saint all excuse if your mother gave birth to those who have been beatified in you, do not surrender if you have the new era. Just not to those who something to fight for, if you have lit are not saints, and who should not your own ember, he will show you even consider that themselves, and light the way. but rather only deliver something Today even your computer asks that is clear to the nation. If Njegoš you if you trust some other program. could be a saint only in MonteneMaybe it should be even worse so only the true ones would remain, gro, there would be no problem. It would not be a mistake though the sieve of today’s times is But since there isn’t a Serb on the to introduce inspections of designed so that the worst survive, globe who would not be pleased and the worst disappear. This is the about that and who does not keep works of art, like inspections sieve through which the biggest fall his image as an icon and his book for product quality, in order and the smallest linger. This is the as a bible, then this cannot be. Beto prevent the art scene from price we pay because we allowed all cause why would they all rejoice looking like a Chinese market values to be disturbed. It would not that, when they otherwise don’t be a mistake to introduce inspecrejoice anything? tions of works of art, like inspections for product quality, in or■ Speaking about language, you wrote recently that the Serder to prevent the art scene from looking like a Chinese market. bian language today can be reduced to two terms - super and fuck it! What is the problem of destroying the mother tongue, as it is here?
throne by those who usurped him?
- There is no case of a poet in the world writing poems in any other language expect their mother tongue. Poets are priests and their church is language, their native language. As was said by Momcilo Nastasijević [a poet who belonged to the modernists between the two world wars] – at what sound you tremble, your of that mother’s son. What the posi-
- That’s right, because in spite of everything, we know what is right. We can pretend we do not know, but everyone knows that we know. How can we more easily tolerate the small and the insignificant? Better a hundred mediocre than one genuine. The greatest have not been spoken about for a long time. We gave a hundred instead of one, and today not even thousands
12 |
121 November 2014 | www.cordmagazine.com
■ Does it mean something that he should be removed from the
How we are treated by the so-called international community, can compensate for that one. We are waiting for a new Njegoš everyone can get to an important place in the political hierarand a new Lubarda, and those right ones we forget and neglect. We cannot compensate for a lack of self-confidence and faith in chy and we will support that and will not ask a question. And our own by listening to what we are told by those whistles that every one of our punks will shoulder this great burden and blow from every side. stagger under it until they find a replacement. There is no kind We know what is original and what is a copy, what is mouldof real movement and there is no hope, and the only thing coned and what is unique. We will not impress anyone by playing soling us is that we do not see that it is no better for others. other people’s tunes and retelling Smart people are concerned about what we saw and heard somewhere. the direction the world has taken and How the people have been But we did not make that up. It is a how the people have been brought to brought to such a position planetary phenomenon. Today most such a position that is not decent to poets write during the day and at that is not decent to tell them tell them the truth, but rather part of night work as security guards at it can only be heard through WikiLethe truth, but rather part of some banks. Now sponsors and pubaks. For us even a lie is sufficient. it can only be heard through lishers are more important than poWikiLeaks ets. Art is deprived of its role, others ■ Recently your daughter Olja have settled in the city centre and it Bećković experienced what you went is known that the circus was never in the centre. It’s all turned through, and very young. Her show Utisak nedelje (Impression upside down in order for politics to be able to dominate and for of the week) has been banned on B92. What did you say to her artists not to be a bother. when this happened? - I told her like this. An Indian poet from the 21st century BC wrote the verses: ■ Is there anyone today on the political scene who you would There is no greater joy in this world, support? Than when a father admires his child. - Who knows who I’ll support me when they ask me? But, that While you doff your cap, and while you bow, drum has turned so many times that there is no longer anyone You feel how you yourself resurrected. ■ who has not already tried and who would be new and unspent.
67
cordeditorial@cma.rs |
121 November 2014 | 13
INTERVIEW
Solid and Promising
RELATIONS H.E. MEHMET KEMAL BOZAY AMBASSADOR OF TURKEY TO SERBIA
According to H.E. Mehmet Kemal Bozay, Ambassador of Turkey to Serbia, current bilateral relations between the two countries could be defined in two words: ‘solid’ and ‘promising’, with prosperous future prospects. The increasing people to people relations between the two countries - through the economy, tourism and transportation - is the main engine of current Turkish-Serbian relations, which brings a more and more human touch to our cooperation
T 14 |
he recent visit of the Minister of Foreign Affairs of Turkey Ahmet Davutoğlu to Serbia, during which he met with President Tomislav Nikolić, PM Aleksandar Vučić, Foreign Minister Ivica Dačić and Minister of Trade, Tourism and Telecommunications Rasim Ljajić, largely defined future political and economic cooperation between the two countries . Despite contrasting views on some current political developments in the region, both sides agree that the common goal of the two countries should be development of their mutual relations in the “economy, sport, culture, sciences, security, defence and crisis response”.
121 November 2014 | www.cordmagazine.com
■ How would you evaluate overall bilateral relations between the two countries today?
- Over the last couple of years Turkish-Serbian relations evolved in all fields. Throughout these couple of years the leaders of Turkey and Serbia have declared their sincere political will to foster relations between the two countries and indeed placed the prospect of this direction before the Turkish and Serbian people. The two main pillars of this prospect are the Free Trade Agreement and Visa Exemption Agreement, which were signed for this reason. The tangible outcomes of signing these agreements are the tripling of the bilateral trade volume from $375 mil-
PRIORITY
INVESTMENT
MINORITIES
The Balkans is a priority for Turkey, not only from the political, economic and geographical perspectives, but also due to historical, cultural and human ties we maintain with the region.
There are three main conditions for our investors to do business in a country: political and economic stability, a clear legal framework and necessary financial instruments.
Turkey favours and supports democracy, rule of law and respect of human rights during the campaign for the election of national councils of minority communities.
lion to $1 billion in three years, and the increase of the number ■ Turkish citizens recently elected their president and gained a new government. Prime Minister Davutoğlu, as a former head of of Serbian tourists visiting Turkey from 80,000 to 200,000, and of Turkish to Serbia from 20,000 to 42,000. diplomacy, is well known in the region. How would you define TurThanks to these agreements, we now have four daily flights bekey’s policy towards the region? What is its aim and on what basis is it defined? Will there be any change in Turkey’s relations with tween Belgrade and İstanbul. We are also proud of the fact that, the region, particularly regarding Serbia? after a break of 25 years, the first regular cargo flights from Nikola Tesla Airport via Istanbul have started. In other words Istanbul, a - Since the Balkans is a region of priority for Turkey, during his global metropolis with connections to 215 destinations, has turned tenure as the Foreign Minister, Prime Minister Davutoğlu pursued out to be one of the strategic gateways of Serbia towards global a very active and visionary policy in the region. He paid several markets. This is a reality on the ground or, to be more precise, in the visits to, and received many delegations from, Balkan countries. air. The first shipment of Turkish Some of these visits can be deAirlines cargo was the export of scribed as shuttle diplomacy in Serbian meat to Turkmenistan. order to contribute to the resoluThis means that a Silk Road from tion of regional issues. The BalBelgrade to Ashgabat has been kans is a priority for Turkey, not established through the skies. only from the political, economic On the other hand, Corridor and geographical perspectives, Serbia, or Corridor 10, is the main but also due to historical, cultural transportation vein of Turkish and human ties we maintain with trade to Europe. Every year more the region. The Balkans, being the than 100,000 Turkish trucks geographical connection of Turtransit Serbia through this corrikey with the rest of Europe, bears AHMET DAVUTOĞLU (left) former Foreign Minister, now Prime Minister of great importance with the special dor, as well as almost two million Turkey and ALEKSANDAR VUČIĆ, Serbian Prime Minister status it had in the historical proof our citizens working in Europe who take the roads during their summer cess that shaped the Turkish nation and Turkey and Serbia have holidays, heading towards Turkey. the potential it carries within the context declared their sincere of regional integration and the EU accespolitical will to foster ■ In recent years, the presence of Tursion objective, which we share with all the region’s countries. key in the region increased noticeably, relations between the While Davutoğlu conducted an acwhile contacts with leaders in the region two countries and indeed intensified. However, it seems that this tive and visionary policy in the Balkans, placed the prospect of this he always underlined that Serbia is one process stopped after some statements direction before the Turkish of the key actors in the Balkans and also of Turkish officials openly supporting Koemphasized that fostering Turkey’s relasovo’s independence. and Serbian people - Turkey’s position on Kosovo is clear and tions and having good cooperation with well known in the region. In the statements of Turkish leaders Serbia would not only be beneficial for both countries and their about Kosovo it has always been clearly emphasized that Turkey peoples, but for the whole region. There is no doubt that H.E. Mr supports the Belgrade-Pristina dialogue process and appreciates Davutoğlu now, as Prime Minister, will keep the same approach efforts of the parties to the process, of course including Serbia. and implement policies based on mutual cooperation accordingly. H.E. Prof Davutoğlu, then Turkish foreign minister and current Prime Minister, visited Belgrade last June. He didn’t meet only with ■ Is it realistic to renew the trilateral agreement, which was frohis Serbian counterpart H.E. Mr Mrkić, but was also received by zen precisely due to Serbia disagreeing with the position of TurkH.E. President Nikolić and by H.E. Serbian Prime Minister Vučić. ish President Erdogan regarding Kosovo and the role of Turkey in During all the meetings the two parties shared their mutual views the region? on bilateral and multilateral issues sincerely and reiterated the po- The foreign ministers of the three countries met recently in New York, on the periphery of the UN General Assembly. The root causes litical will of the two states to foster relations, particularly in the of some political problems are unemployment and a lack of investeconomic field. cordeditorial@cma.rs |
121 November 2014 | 15
ments. Tackling these root causes requires capacity building with regional cooperation. Therefore, the projections for the trilateral mechanism foresee trilateral cooperation in fields such as trade, investment, sustainable development, energy and environment. I believe it is realistic to renew the arrangements aiming at building regional capacities, such as the trilateral mechanism, which will build regional solidarity among countries. ■ Can you announce any high level visits, whether to Belgrade or Ankara?
- The Turkish and Serbian sides have already agreed upon the visit of Turkish Economy Minister Zeybekci to Serbia. During this visit we will organise the Serbian-Turkish Business Forum in Bel-
grade, with the participation of investors and businessmen from our two countries. We are working on fixing a date for this visit before the end of 2014. ■ Despite many announcements, it seems that the economic co-
operation between the two countries is not even close to the possible and desired level. Why is that? Is it true that Turkish investors are first waiting for a Turkish bank to arrive in Serbia and should we expect the arrival of Halkbank, which is allegedly interested in buying Čačanska Bank?
- Turkish investors are all over the globe, including the Balkans. There are three main conditions for our investors to do business in a country: political and economic stability, a clear legal framework and necessary financial instruments. The political and economic stability in Serbia is unquestionable, so our investors are looking for investment opportunities in this country, which will be an EU member in a couple of years. However, when we speak about the second condition, the comprehensive work of the Serbian government on revising the legal framework in order to adapt it to needs was finalised recently. Now it is the beginning of a new era in exploring investment opportunities in Serbia. The new era commenced with the adoption of the new Privatisation Law two months ago, in August. This law stipulates new alternative modalities of privatisation, so that foreign in16 |
121 November 2014 | www.cordmagazine.com
vestors can choose the optimal options among these alternatives. For investors, both foreign and domestic, privatisation goes hand in hand with conditions for employment. The new Labour Law defines the legal framework for these conditions. So, the investment environment in Serbia is different than two months ago and Turkish investors are examining this environment, they are showing a more serious and focused interest to catch possible opportunities. I also checked the trend of Turkish investments in other Balkan countries. In Romania, Bulgaria, Greece and Macedonia, Turkish investments almost tripled in a couple of years after the establishment of a Turkish bank or a bank with Turkish shareholders. Therefore, I encouraged the Turkish banks to look at opportunities in the Serbian banking sector. Halkbank, which is a bank In the statements specialising in financing of Turkish leaders small and medium-sized about Kosovo it has enterprises and which curalways been clearly rently finances 33 per cent of SME scale business in emphasized that Macedonia, has shown inTurkey supports terest in acquiring a bank, the Belgradenamely Čačanska Bank, in Pristina dialogue Serbia. Negotiations with the shareholders of said process and appreciates efforts bank to find a mutually acceptable business deal are of the parties to the still underway. process, of course Establishing any Turkish bank here in Serbia including Serbia would immediately boost Turkish investments, while contributing to the Serbian economy and bringing dynamism to the banking and finance sector. ■ Turkish clothing company “Džinsi Srbija” (Jeanci Serbia) has
announced the expansion of its production capacities in Leskovac. The Serbian government is hopeful that the same investor will open a factory in Krupanj and Vladičin Han. Are you familiar with such plans?
- “Jeanci Serbia” is a success story of Turkish investments in the country. Two years ago the firm started production of textile products with 35 workers. Today it has more than 600 employees. It exports Made-in-Serbia textile products from Leskovac to EU countries. Now the same firm wants to expand its production capacities from Leskovac to Krupanj and Vladičin Han, thereby creating more than a thousand jobs for Serbian workers. “Jeanci Serbia” is actually negotiating with the relevant Serbian authorities on the possibilities of this expansion based on the new Privatisation and Labour laws.
■ Another major infrastructure project that’s been announced is the construction of the Novi Pazar - Tutin - Sjenica road, which should be built using loans from Turkey. This project was halted due to a disagreement about the loan conditions and the engagement of workers. You have recently said that the Turkish government has submitted a new project. Could you tell us
something about that?
■ To end with cultural issues, how do you explain the huge popu-
- Roads are the veins of trade and transportation in a country and, from a broader perspective, in the region, so there would be no circulation without them. Therefore, the aim of this project is to modernise roads in this underdeveloped region of Serbia. After research for better credit conditions to be granted to the Serbian government, the Turkish authorities provided a new credit type for this project and the Serbian authorities are now examining the new conditions. Technical delegations from the two countries will most probably get together soon to discuss the matter.
larity of Turkish TV series in Serbia, where there are few television stations that do not broadcast at least one?
■ In Serbia there is very positive talk about Turkey’s Acibadem
clinic. Can you tell us something about the speculated intention of the clinic’s owners to open a medical centre in Serbia?
I believe it is realistic to renew the arrangements aiming at building regional capacities, such as the trilateral mechanism, which will build regional solidarity among countries
- The Acibadem is an international Health Group chain with hospitals in Macedonia, Singapore, Malaysia and Vietnam. The group would like to increase their health investments in other countries and considers opening branches in Moscow and Belgrade. Belgrade’s central location is attractive for the group to concentrate their activities in the Balkans, making Serbia their headquarters. It is still at the stage of a feasibility study, but this study will be concluded soon. ■ It was reported recently that Acibadem cancelled its sponsor-
ship of Red Star FC due to the burning of Turkish flags during the game against Novi Pazar. How are such incidents viewed in Turkey? Burning flags, both Serbian and Turkish, is virtually a regular occurrence at matches played in Novi Pazar.
- The Chairman of the Acibadem Group signed a health sponsorship memorandum with the basketball clubs of both Red Star and Partizan just a few weeks ago. The sponsorship is continuing. Hooligans constitute a serious problem in sport, but we should not let any provocations hijack the beauty and aesthetic of sporting activities or fair play in any sport.
■ Turkey enjoys great respect from the Muslim community in Serbia. Your country, or alleged Turkish support, has been mentioned in the current campaign for the national council of minority communities. Do you have a “favourite” in Serbia?
- Turkey favours and supports democracy, rule of law and respect of human rights during the campaign for the election of national councils of minority communities. We support fair and free elections with the full participation of all relevant parties in this democratic process.
- Turkish and Serbian societies have so many common features in their social and cultural structures. As two traditional societies where family is the nucleus unit, tensions between modern and traditional values, combined with complicated relations among the wider family members, as well as with friends and neighbours, are the cause of deep dramas. Love, misunderstandings, separations due to tragedy, financial and social differences, these are realities of our societies. There is a very rich potential to put these dramas on stage. The Turkish cinema and TV sectors have advanced in technical and artistic terms enormously
in the last decade and have brilliantly reflected the beauty and richness of Turkey on screen. This is the main reason that Turkish series became popular in the region, including Serbia, which has a likeminded society. It is also very helpful for people to learn and understand each other’s societies. After all, with our common feelings and thoughts, as well as common taste of life, we are all Mediterranean.
■ Do you think there is some Serbian film or TV series that would be interesting for Turkish viewers?
- There are a few that I can think of. However, I would single out the movie “Zona Zamfirova”. The setup, similarity of tradition and family values, humour, music, I like just everything about that movie. I am also looking for an opportunity to encourage the creation of a documentary/drama type of shooting about Serbian castles, similar to the ones we watch on history channels. They are like seven pearls alongside the banks of the Danube. The castles hosted Romans, Ottomans, Serbs, Austro-Hungarians and, in the end, they are historical and cultural sites of Serbia. In their inner and outer walls they carry the tissues of common heritage. I am sure they have many stories to tell us from different ages to this day. We also work well together with the relevant Serbian authorities through Turkish Assistance and Cooperation Agency – TIKA, to reconstruct and renovate these castles. ■ cordeditorial@cma.rs |
121 November 2014 | 17
GLOBAL DIARY
Conditions “We should adapt to changing conditions of society, because God is not afraid of new things” — POPE FRANCIS
Far From Healthy Race
CHINA SPORT AND SMOG ARE NOT COMPATIBLE The 2014 Beijing International Marathon went ahead as planned in spite of the heavy layer of smog blanketing China’s capital city. Runners, 30.000 of them came from around the world, equipped with face masks and sponges. Ethiopian runners took gold in both the men’s and the women’s races. Girmay Birhanu Gebru won the men’s race in 2 hours, 10 minutes, 42 seconds, while Fatuma Sado Dergo won the women’s in 2:30:3. China’s Gong Lihua, who came in third in the women’s race, downplayed the impact of the pollution. ‘Today the smog did have a little impact on my performance, but not a major one,’ she said. China’s pollution is notorious following years of rapid economic development.
God’s Corporate Things ITALY WHAT SISSTINE CHAPEL AND PORSCHE HAVE IN COMMON Pope Francis is allowing the endangered Sisstine Chapel to be rented out for a corporate event, with the proceeds to benefit the needy
– while at the same time cracking down on visitors to the world’s most famous church. Porsche will be the first to hold on outside fundraiser amid Michelangelo’s fragile frescoes. The Vatican would not divulge how much it will earn from the event, but the five-day tour of Rome arranged by the Porsche Travel Club costs up to €5,000 per head, meaning an overall price of €200,000. At the same time, the Vatican said earlier in October that it would cap the annual number of visitors at 6 million to protect the Renaissance masterpieces from the tourist hordes. Participants are promised “a magnificent concert in the Sistine Chapel, with its ceiling frescoes painted by Michelangelo”.
Warhol’s Portraits Worth €186 milion USA MOST ICONIC WARHAL’S FEMALE STARS Sotheby’s New York Contemporary Art sales will present an unprecedented line up of Andy Warhol’s most iconic female stars on 11 and 12 November sales. The selection of seven paintings is headlined by Liz # 3, a rarely seen silkscreen of actress Elizabeth Taylor which is estimated at about €30 million. Joining her are silkscreen of
Brigitte Bardot, Marylin Monroe, Deborah Harry, Jacqueline Kennedy, Judy Garland and the socialite Sao Schlumberger. The seven lots are valued by Sotheby’s at €48, 2 milion to €56,6 milion.
Inappropriate Language in White Sport RUSSIA SCANDAL PROVOKED BY INAPPROPRIATE LANGUAGE Shamil Tarpischev, Russian Tennis
18 |
121 November 2014 | www.cordmagazine.com
Federation head provoked international scandal when he, after The Kremlin Cup, referred to U.S. female tennis stars Serena and Venus Williams as the “Williams brothers”. The Women’s Tennis Association (WTA) ruled that Tarpischev would be fined €17,500, the maximum amount
allowed by WTA rules, and suspended from any involvement with the association for one year. In a letter of apology published on the WTA website, Tarpiscev, who also said that Williams sisters were “scary to look at”, said that his remarks “were wrong and could be construed as discriminatory by the public.”
COLOUR BRITAIN NOW
New research reveals that majority of Brits believe most of the country’s cities are too dull. To help celebrate the power of colour, Dulux has launched an initiative called ‘Colour Britain’, which sees some of the country’s most exciting illustrators produce unique pieces of artwork inspired by UK cities. The giant, hand-painted artworks have been dropped into unusual locations across the country, from giant seaside walls to extra large canvasses in city squares.
New Mexico balloon fiesta hits sky USA THE MASS ASCENSION OF HOT AIR BALLOONS Hundreds of hot air balloons took to the skies above New Mexico in the middle of October at the Albuquerque International Balloon Fiesta. Organizers from Balloonfiesta have equipped all 550 pilots with tablet computers capable of running a mapping application that enabled them to steer clear of the many restricted areas or prohibited zones like airport flight paths, the zoo and other locations. It’s the largest festival of its kind anywhere in the world and tens of thousands of visitors flocked to the city for a closer look which consists of ballooning, photo competition and music festival.
Message “Football should never be used for political messages, instead, it should bring people together. ” — SEPP BLATTER, FIFA president
Dancing American Priests Defence of the Greenwich Mean Time Concept VATICAN THE LORD TELLS US TO LIVE WITH JOY
A video of a pair of dueling, dancing American priests studying in Rome has gone viral, following in the footsteps of a now-famous Italian nun whose Alicia Keyes-esque voice won her a singing contest and a record contract. The Rev. David Rider (29) and the Rev. John Gibson (28) first shot to Internet fame when they were filmed in April during a fundraiser at the North American College, the elite American seminary up the hill from the Vatican. Rider warmed up the crowd with a lively tap-dance routine, only to be pushed aside by Gibson’s fast-footed Irish dance.
At the back of the room, journalist Joan Lewis recorded the event and later posted on YouTube, where the video has nearly 260,000 views. Some commentators wrote that the priests shouldn’t have been dancing under a crucifix and a painting of Pope Francis, calling it “disrespectful.” “We would just refer them to the Bible,” Rider says, “where the Lord tells us to live with joy.”
GREAT BRITAIN SHOULD THE
WORLD MOVE TO ATOMIC TIME
British scientists are prepared to launch a defence of Greenwich Mean Time (GMT) ahead of an international decision on whether the world should move to strict atomic time instead. Currently, it is used the method of adding additional seconds every few years to keep time in sync with the Earth’s gradually slowing movement. A host of countries, including America and France, favour abolishing the method, which has been used since 1972. But others led by Britain oppose the change, saying that it would forever break the link between the current concept of time and the rising and setting of the sun. It is feared that once this link is broken it could never be restored.
Russia's Biotech Innovations Growth RUSSIA BIOMEDICINE STARTUPS TO THE FORE
Royal family celebrates National Day SPAIN FIRST NATIONAL DAY WITH NEW MONARCH Spain has celebrated its first National Day, October 12 with its new monarch, King Felipe VI. The celebrations took place at the Plaza de Cánovas del Castillo, with a reception at the Royal Palace afterwards. King Felipe VI, Queen Letizia and their two daughters, the Princess of Asturias and Infanta Sofía, were present for the homage to the Spanish national flag and the military parade that followed. A number of government officials attended alongside the royal family, including Prime Minster Mariano Rajoy. Around 1,500 guests from a variety of sectors – government, the diplomatic corps, outstanding athletes and winners of the Prince of Asturias Awards among others – then attended a reception at the Royal Palace. The Queen wore a peacock green coat dress designed by Felipe Varela, which had a tweed front and plain back.
At a startup contest “Open Innovations Forum” organized by the Russian Venture Company and Moscow’s Center for Innovative Development, inventors of robotized industrial solutions and new biomedical products took most of the top prizes, entitling them to a €19,400 each in cash and the active interest of venture investors. The winner was The ExoAtlet company which has developed a robotic exoskeleton for the lower body that is able to help patients with leg muscle deficiency get into an upright position unaided. As information technology was once the darling of Russia’s innovation sector, the Russian government has made a commitment to provide €4.5 billion over the next eight years for biotechnology startups in an effort to boost its domestic healthcare industry.
cordeditorial@cma.rs |
ROSETTA SPACECRAFT FINALLY REACHES COMET
After traveling 6.437 billion kilometres over the past decade, the European Space Agency’s Rosetta probe reached its destination: a comet orbiting between Mars and Jupiter. The arrival marks a huge milestone for mankind in space and is a huge step toward Rosetta’s next goal, landing a spacecraft on a comet.
121 November 2014 | 19
INTERVIEW
Strengthening the
PARTNERSHIP PETER N. DUE REPRESENTATIVE OF THE SECRETARY-GENERAL AND HEAD OF THE UN OFFICE IN BELGRADE
The recent regional roundtable in Belgrade “Being a Peacekeeper” showed the complexity of UN peace keeping operations today and the importance of the greater involvement of the Western Balkan countries in these operations
P
eacekeeping is in many respects the flagship activity of the UN. There are currently 16 UN peacekeeping operations and some 125,000 military, police and civilians serving in these operations. That is an all-time high. “Our operations have taken on increasingly significant and challenging roles in response to contemporary threats to international peace and security”, says Peter Due, the Representative of the Secretary-General and Head of the UN Office in Belgrade. This topic and many more were discussed at the recent regional roundtable in Belgrade “Being a Peacekeeper” held on October 20 and 21, in Belgrade, at which, as Due emphasizes, Serbia repeated its willingness to contribute more to the preservation of international peace and security. ■ What is the state of UN peacekeeping today, and what are the challenges of their task today when there are many war ridden places?
20 |
121 November 2014 | www.cordmagazine.com
- Peacekeepers are doing more than ever – our operations
are multidimensional and not only about military and police but also about political negotiations, security sector reform, disarmament, elections, human rights, civil affairs, rule of law etc. Peacekeepers are also peacebuilders. Threats and risks are, however, also increasing. Some operations are in theaters with little peace to keep and with spoilers and extremists or terrorists. Some UN operations have therefore also been given robust mandates to protect civilians. As a result, our operations are coming under significant stress and casualties have recently increased, for example in Mali, where a number of UN peacekeepers have been killed in hostile action over the past year. ■ What are the major messages of the UN Peacekeeping Summit held in September in New York, in that respect?
- The summit brought together some 30 countries, who all play a key role in UN peacekeeping, either as contributors of troops and police, as financial contributors, or as members of the Security Council. The US played a key role in organizing the summit. From this region, Serbia and Croatia participated. The main message
Member State support – the UN has no standing army or peacekeeping force- can we meet the many different tasks and challenges that you mention.
■ The UN Secretary-General has decided to form a high-level panel to undertake a review of both peacekeeping and political missions review peacekeeping. What were the motives behind such decision, and are the expected outcomes?
- It has been some fifteen years since the last comprehensive review of UN peacekeeping – the so-called Brahimi review of 2000. That review led to a significant improvement of the way we do peacekeeping but, as mentioned, peacekeeping is again coming under stress and the world and the challenges and threats we face are constantly evolving. Secretary-General Ban Ki-moon has therefore decided to launch a major strategic review of UN peace operations that should be completed by next summer. ■ Some UN missions, such as the one in Bosnia had their failures. What were the lessons taken after such events?
Our operations have taken on increasingly significant and challenging roles in response to contemporary threats to international peace and security
was - and let me quote from the Joint Statement- that these countries all ”reaffirm our support for UN peacekeeping operations at a time when they are more critical than ever to international peace and security, and yet also under historic stress.” The summit commended the work done by UN peacekeepers, stressed the increasing challenges, noted that reforms are needed to further strengthen UN peacekeeping, and pledged new contributions and support to UN peacekeeping.
■ The UN Secretary General mentioned “six critical necessities” that would define the future of UN peacekeeping. What are they?
- In his remarks to the summit, Secretary-General Ban Ki-moon mentioned the following six critical necessities, which UN Member States need to help us with: 1) rapid response 2) mobility, above all through helicopters 3) strengthened medical support 4) better protection against improvised explosive devices 5) improved information and analysis and 6) strong partnerships with regional organizations. We need these to ensure that UN peacekeeping remains effective and efficient and able to respond to the new and increasing challenges. Only with strong
- Indeed, UN peacekeeping suffered major setbacks in the 1990s, including in Bosnia-Herzegovina, Rwanda and Somalia. Some of these events were among the darkest moments in human history. There were failures on many fronts and levels. The UN made serious efforts to understand these failures. You may recall Kofi Annan’s somber and self-critical report on Srebrenica. These problems and this serious reflection also led to the mentioned Brahimi report, which in very clear language set out the strengths and weaknesses of UN peacekeeping and made recommendations to improve the tool of UN peacekeeping. Many of these recommendations were implemented, and the Brahimi process led to significant improvements in the way the UN conducts peacekeeping. Key lessons learned have been the need to focus more on protection of civilians, and the recognition that robust mandates and action are required to protect civilians. Another key lesson was that the Security Council must issue credible and achievable mandates and that it and Member States must subsequently give UN peacekeeping the required personnel, capabilities and resources to implement the mandates. cordeditorial@cma.rs |
121 November 2014 | 21
■ How do you see Serbia’s contribution to UN peacekeeping and what do you expect in the future? - Serbia currently contributes more than 200 military personnel and 12 police personnel to UN peacekeeping operations. This is a significant contribution. Serbia is the regional leader and in the top ten of all European countries. Serbia is about to make an important new contribution to the UN operation in the Central African Republic. I hope Serbia will also be able to increase police contributions soon. Serbia’s major contribution is of course to UNIFIL in Lebanon and to UNFICYP in Cyprus, but the fact that Serbia is increasing its contributions to our operations in Africa is also much appreciated. Africa is where most of the UN peacekeeping operations currently are and where almost 90% of all UN peacekeepers are deployed. Serbian troops are highly professional and well trained and equipped. They are respected. They are the kind of troops that we need in our increasingly complex and demanding UN peacekeeping operations. ■ What are the major conclusions of the “Being a Peacekeeper” regional roundtable in Belgrade held on 20—21 October?
tions. It was stressed that there is a lot of expertise in the Balkan region for example in terms of medical capacities, and there is already an initiative to create a Balkan Medical Task Force which would be based in Skopje. There was also much focus onregional cooperation in training peacekeepers. Although there are already many different training centers around the region, they can work more closely together. As UN Under-Secretary-General for Peacekeeping Operations Herve Ladsous stressed many times, we do not necessarily need more peacekeepers but rather niche capabilities such as medical capacities, engineering or demining expertise and there we see a possibility of regional cooperation. It was agreed that the next follow up meeting might be in Bosnia and Herzegovina next year in Sarajevo, and that the UN Department for Peacekeeping Operations should be invited to existing regional military and police forums, such as the meetings of the Western Balkan Defence Policy Directors and the South-Eastern Europe Defence Ministerial meetings.. One of the underlying themes of the roundtable was also how this region has gone from being a region of armed conflicts to being a region of stability, and from importing to exporting peace and security. That message resonated very well. The meeting was an excellent start of an enhanced partnership between UN peacekeeping and this region.
- The two-day regional roundtable on the participation of Western Balkan countries in UN peacekeeping operations gathered some 130 participants including United Nations UnderSecretary-General for Peacekeeping Operations Hervé Ladsous and other ■ What is the major role of the UN OfThe idea of enhanced senior officials of the UN Department fice in Belgrade? regional cooperation in for Peacekeeping Operations, officials - UNOB is a political office, which persupport of UN peacekeeping of Western Balkan countries, about 20 forms political liaison and reporting partner countries, and three regional received a lot of expression of functions. Our main focus is on the organizations NATO, OSCE and EU. The interest, Serbia being the most UN Interim Administration Mission key outcomes were that everybody got in Kosovo (UNMIK), but we have also concrete in terms of wanting a better understanding of the combeen asked to monitor and report to to participate more and New York on political developments plex nature of contemporary UN peace in the Western Balkans, and as a rekeeping operations; and it was stressed very soon that for these operations we need well sult I travel throughout the region qualified and well trained military and police, and in particular and also try to explore how we can enhance regional cooperacontributions from the Western Balkans. The idea of enhanced retion. The “Being a Peacekeeper” roundtable is an example of our regional efforts. I report to the Secretary-General through the gional cooperation in support of UN peacekeeping received a lot of Department of Peacekeeping Operations, which I have served expression of interest, Serbia being the most concrete in terms of for many years in New York and as a civilian in several peacewanting to participate more and very soon. keeping operations, and through the Department of Political Af■ In what ways can Western Balkan countries work and deploy fairs. UNOB is separate from but coordinates closely with UN together in UN peacekeeping? Resident Coordinators, UNDP offices and UN Country Teams in Serbia and throughout the region, who focus more on develop- We had a lot of discussion on how the individual countries can work with each other in participating in UN peacekeeping operament and operational activities. ■ 22 |
121 November 2014 | www.cordmagazine.com
EUROPEAN COMMISSION - SERBIA PROGRESS REPORT
Positive
DEVELOPMENTS The EU Commission concluded that Serbia sufficiently meets the political criteria, but it needs to continue to focus on the fundamentals first, in particular on the rule of law, including the full exercise of freedom of expression, public administration reform, together with economic governance MICHAEL DAVENPORT, Head of the European Union Delegation to the Republic of Serbia and ALEKSANDAR VUČIĆ, Serbian Prime Minister
I
t is also crucial for Serbia to continue its commitment to regional cooperation and normalisation of relations with Kosovo through continuous implementation in good faith of all agreements reached in the dialogue, so that EU accession negotiations continue to proceed smoothly. The Commission also acknowledged that Serbia has made a serious start on its programme of economic reforms by adopting new laws on labour, privatisation and bankruptcy, salaries and pensions. Significant efforts are still needed to address the very high budget deficit, by streamlining government spending, restoring fiscal discipline and improving tax collection. A wide range of structural reforms remains to be carried out and progress should still be made on the privatisation and restructuring of State owned enterprises, on the streamlining of State aid and on the improvement of the business environment. The Commission also found that Serbia stayed committed to aligning its legislation with the EU acquis with a 2014-2018 National plan for the adoption of the acquis and continued to implement its obligations under the Stabilisation and Association Agreement (SAA). Serbia needs to develop and implement a robust monitoring mechanism for acquis alignment and significant efforts must generally be made to ensure that human and financial resources are allocated to allow effective enforcement of reforms.
1.3. Relations between the EU and Serbia - The screening exercise
is expected to be completed in 2015.
1.4. Normalisation of relations between Serbia and Kosovo - Serbia and Kosovo have remained engaged in the dialogue and committed to the implementation of the April 2013 First agreement of principles governing the normalisation of relations and other agreements reached in the dialogue, leading to irreversible changes on the ground. However, progress has slowed down. New momentum needs to be generated to tackle key outstanding issues and open a new phase in the normalisation of relations. Progress in this area remains essential for advancing the European future of both Serbia and Kosovo.
2. POLITICAL CRITERIA
2.1. Democracy and the rule of law - The Constitution is largely in line with European standards. Some provisions remain to be put in line with the recommendations of the Venice Commission, in particular concerning the role of parliament in judicial appointments, the political parties’ control over parliamentary office, the independence of key institutions and the protection of fundamental rights, including data protection. Elections - Attention should be given early on in the new legislature to the OSCE/ODIHR recommendations with a view to revising the cordeditorial@cma.rs |
121 November 2014 | 23
electoral framework and provisions on financing political parties and ties, in particular when they express critical views. electoral campaigns before the next elections. Judicial system - Considerable challenges remain regarding indeParliament - The legislative activity was partly held up by the early pendence, impartiality, accountability, efficiency and access to justice, elections but regained momentum afterwards, albeit with a further inincluding primarily through the revision of the Constitution. Attention should further focus on (i) adopting clear rules for the appointment crease in the use of urgent procedures. Parliament continued to perof Court Presidents, (ii) implementing merit-based recruitment (iii) form oversight activities but still needs to develop a genuine relationtackling the significant backlog of cases and adopting a case weighting ship with independent regulatory bodies, supporting their independmethodology allowing for equal and fair distribution of cases. Beyond ence and promoting their findings. legal steps, significant efforts are required to back these reforms with Government - Serbian government remained actively engaged toappropriate financial resources to produce effective results. wards the goal of EU accession throughout the last period, irrespective of early elections in March and demonstrated preparedness and enFight against corruption - Further efforts are needed to establish a convincing track record of investigation, prosecution and final convicgagement in the first phase of the negotiations process. Involvement of the parliament and other tions. A sustainable solution is stakeholders, including the civil needed to address the excessive society, needs to be strengthrecourse to the provision on abuse of position in the private ened. Independent regulatory sector in the criminal code. The bodies’ recommendations need review of the economic section to receive proper follow-up of the criminal code needs to be and their independence needs completed without delay. to be fully respected. The government needs to develop its Fight against organised capacity to anticipate the financrime - Serbia actively particicial implications of policies and pated in regional law enforcenew legislation and to effectivement cooperation, which led to effective results in the fight ly monitor the implementation against organised crime and in of enacted legislation. particular to a high-profile arPublic administration Adoption of the new public adrest in connection with organministration reform strategy, a new dediised crime groups. However, there is no Serbia and Kosovo have overarching strategic threat assessment cated Ministry for Public Administration remained engaged in the of organised crime in the country and fiand Local Government, and the increased dialogue and committed to the nal convictions remain rare. Additional focus on policy planning and coordinaefforts are needed to systematically carry tion following the establishment of the implementation of the April out financial investigations in parallel Secretariat for Public Policies, represent 2013 agreement. Progress in with complex criminal investigations. initial positive steps towards more efthis area remains essential Intelligence-led policing based on crime ficient public administration. Sound imfor advancing the European mapping and systematic use of threat asplementation of the reform strategy together with strong political impetus and sessments remain to be developed. The future of Serbia and Kosovo mechanisms are needed to move towards dependence of the police on the security a transparent and merit-based public service system. Lack of transand intelligence agencies to carry out certain special investigative measures in criminal investigations remains a matter of serious conparency in recruitment and politicisation of public administration employees remain an issue of concern. cern and should be addressed urgently. Organised crime remains a serious concern in Serbia. Ombudsman - The constitutional position of the Ombudsman needs strengthening. The Ombudsman should be allocated sufficient 2.2. Human rights and the protection of minorities - The legislaresources and, in general, his office’s independence needs to be better tive and institutional framework for observance of international hurespected and understood. man rights law is in place. Sustained e0fforts are needed from Serbian authorities to ensure its implementation. Civilian oversight of the security forces - The Ombudsman reiterThree laws under the media strategy have been adopted with a ated the need to adopt a new law on the BIA, to review the current view to improving the situation in the media sector and clarifying regulations giving the security services responsibilities for criminal the legal framework, particularly in relation to state financing and proceedings and the use of special measures. A law on access to state control of the media. However, there are concerns about deteriosecurity files still needs to be adopted. Civil society - The civil society sector in Serbia has continued to rating conditions for the full exercise of freedom of expression. A grow, especially at local level. Civil society organisations and human continued lack of transparency over media ownership and sources rights defenders continued to play a key role in raising awareness of media advertising and funding was accompanied by a tendency about civil and political rights in a climate often hostile to their activito self-censorship in the media. The authorities have an important 24 |
121 November 2014 | www.cordmagazine.com
responsibility to work to create an enabling environment in which this fundamental freedom can be exercised without hindrance, including by reacting to and publicly condemning threats, physical assaults and cases of incitement to violence and hate speech from extremist groups against civil society organisations (CSOs), human rights defenders, journalists and bloggers. 2.3. Regional issues and international obligations - Serbia continues to fully cooperate with the International Criminal Tribunal for the former Yugoslavia. Open bilateral issues with neighbours need to be addressed with a pragmatic and constructive spirit.
3. ECONOMIC CRITERIA 3.1. The existence of a func-
tioning market economy - State
legal system and ensure even implementation of laws, as a crucial part of the business environment. Financial sector development - Lending activity declined and the banking system, although well capitalised and liquid, continued to face challenges. The issues of improving corporate governance and the high burden of non-performing loans still need to be effectively addressed. 3.2. The capacity to cope with competitive pressure and market
forces within the Union
Human and physical capital - The physical infrastructure is underdeveloped and was further damaged by heavy floods. Reducing the budget deficit and improving the performance of publicly owned companies is needed to create space for infrastructure investment.
presence in the economy remains Sectoral and enterprise significant. The private sector structure - The economic strucis weak and unprotected as the ture is changing slowly, driven rule of law is not systematically mainly by foreign direct investobserved. The new government ment, but important sectors of has a mandate for economic rethe economy need further reforms but their implementation structuring and liberalisation. has progressed slowly. Although State influence on competexternal deficits declined strongitiveness - The state continues to substantially and negatively ly, fiscal imbalances remain very influence competitiveness by high and structural rigidities and providing significant and wideobstacles to growth still need to ranging forms of state aid. The be addressed. The functioning of system of state aid needs to be market mechanisms remained thoroughly reviewed. hampered by significant distortions and Commitment to economic legal uncertainty. Economic integration with the EU reform exists, but Economic policy - Fiscal consolida- Economic integration with the EU insignificant efforts are tion needs to be further strengthened creased further and export performance and frontloaded. Overall, commitment to improved, albeit from a low level. needed to strengthen fiscal economic reforms exists, but significant consolidation and accelerate efforts are needed to strengthen fiscal 4. ABILITY TO TAKE ON THE the implementation of the consolidation and accelerate the impleOBLIGATIONS OF MEMBERannounced structural reform SHIP mentation of the announced structural reform measures. 4.1. Chapter 1: Free movement of measures goods - Serbia continued with the alignMacroeconomic stability - The significant fiscal imbalances have led to a further increase of government ment of its horizontal legislation and the adoption of European standdebt, which has approached 70 % of GDP. Overall, despite a series of ards. However, stronger emphasis needs to be put on implementing new measures, fiscal imbalances remain very high. Significant further transposed directives and ensuring adequate equipment and adminefforts are required to reduce government expenditure and impleistrative capacity ment the announced structural reforms. 4.2. Chapter 2: Freedom of movement for workers - Little proInterplay of market forces - The state presence in the economy is gress has been made in the area of movement of workers. significant and the privatisation process was revived only in summer 4.3. Chapter 3: Right of establishment and freedom to provide 2014. Companies in restructuring remain a heavy drain on the budget services - Limited progress was made in the area of the right of and the economy. establishment, freedom to provide services and mutual recognition of professional qualifications. A general law on services remains to Market entry and exit - Some steps were taken to resolve shortbe adopted. comings in bankruptcy legislation. Red tape, parafiscal charges and difficulties in obtaining construction permits remained major obsta4.4. Chapter 4: Free movement of capital - There was little procles to more dynamic business creation and expansion. Further efforts gress in the area of capital movements. Serbia needs to adopt and imare needed to implement the planned reforms in this area. plement outstanding legislation on free movement of capital. Legal system - Legal predictability and enforcement of court deci4.5. Chapter 5: Public procurement - There has been good prosions remain weak. Significant efforts are needed to strengthen the gress in the field of public procurement. The capacity of the PPO needs cordeditorial@cma.rs |
121 November 2014 | 25
to be strengthened further. The national strategy and action plan for upgrading the public procurement system remain to be updated. 4.6. Chapter 6: Company law - Some progress was made in the field of company law. Implementation of the new laws on accounting and auditing has started. The electronic company registration process should become operational as soon as possible to contribute to a better business environment. Independence of the public audit oversight body needs to be ensured. 4.7. Chapter 7: Intellectual property law - Little progress was made in the area of intellectual property law. Formal coordination between different stakeholders has yet to begin with a view to ensuring more effective enforcement.
cy - There has been limited progress in the area of food safety, veteri-
nary and phytosanitary policy. The maximum level of aflatoxin in milk was not realigned with EU standards. The administrative capacity of the national reference laboratories needs to be significantly strengthened. A programme for upgrading agri-food establishments remains to be adopted and the GMO legislation to be aligned. 4.13. Chapter 13: Fisheries - No progress was made in the area of fisheries. The relevant Serbian legislation needs to be amended to establish a national catch certification scheme for imports and exports of fishery products and a system for the collection of market data. 4.14. Chapter 14: Transport policy - Some progress was made in the area of transport policy, particularly on road, rail, inland waterways and aviation. Further strengthening of administrative capacity is required, in particular for enforcement and inspection. Access to the railway market has yet to be achieved. 4.15. Chapter 15: Energy - Progress was made in the area of energy, in particular in the electricity market, renewable energy and energy efficiency. Additional efforts are needed to achieve cost-reflective electricity tariffs. A final decision on the unbundling model of Srbijagas, in line with the acquis, needs to be urgently made. Serbia should not commence work on constructing the South Stream pipeline until the IGA is aligned with A continued lack of the acquis. The administrative capacity 4.8. Chapter 8: Competition policy and independence of the energy and nuLimited progress was made in the area of transparency over media competition. The operational independclear regulators need to be significantly ownership and sources of strengthened. Serbia needs to increase its ence of the CSAC must be ensured. The media advertising and funding efforts to meet its renewable energy tarlegislation on state aid control must be was accompanied by a aligned with the acquis and applied to all gets. Approval of the Action Plan to impleundertakings, including those in the protendency to self-censorship in ment the September 2013 agreement on energy with Kosovo, and signature of the cess of restructuring and privatization the media inter-TSO are positive steps in the process 4.9. Chapter 9: Financial services of normalisation of relations with Kosovo. Serbia should continue to Little progress has been made in the area of financial services. Addiengage constructively in this process. tional steps are needed to align Serbia’s rules with Basel III standards (and the related EU acquis), the Solvency II and UCITS directives. 4.16. Chapter 16: Taxation - Some progress has been made in the area of taxation, notably in the fields of e-declarations, organisation 4.10. Chapter 10: Information society and media - Good progress and transparency. Serbia should continue to align its rules concerning was made in the area of information society and media. A package of excise goods, including on imported spirits, with those in the acquis. three laws implementing the 2011 Serbian media strategy and further Urgent measures are needed to tackle the informal economy in a conaligning Serbia’s legal framework with the EU acquis has been adopted. The digital switchover remains to be implemented. The legislative sistent, lasting manner. These include further simplifying tax proceframework in electronic communications needs to be aligned with the dures and reducing and effectively monitoring the discretionary pow2009 framework. The independence of the Regulatory Body for Elecers of individual tax inspectors. tronic Media remains to be ensured. 4.17. Chapter 17: Economic and monetary policy - There has been little progress in the area of economic and monetary policy. Monetary 4.11. Chapter 11: Agriculture and rural development - There has policy credibility was enhanced but further efforts are required to been some progress in the area of agriculture and rural development. pursue the announced fiscal consolidation. The Agricultural and Rural Development Strategy has been adopted. The Farm Accountancy Data Network was expanded. IPARD operating 4.18. Chapter 18: Statistics - Good progress was made in the area structures need to be considerably resourced and major national obof statistics. Sectoral statistics have been further developed. Work on the preparation of national accounts has continued. The administrastacles for accreditation related to all IPARD bodies should be solved. 4.12. Chapter 12: Food safety, veterinary and phytosanitary politive capacity of the Statistical Office needs to be further strengthened. 26 |
121 November 2014 | www.cordmagazine.com
4.19. Chapter 19: Social policy and employment - Limited progress can be reported in the area of social policy and employment. Developments continued in the area of health and safety at work but have slowed down in the areas of employment policies and social inclusion. Further work is needed to align the Labour Law with the acquis. Social dialogue needs to be strengthened at all levels and the stalemate of tripartite social dialogue is of particular concern. Further efforts are needed to address labour market segmentation and to ensure alignment with the acquis.
acquire experience in the management of EU funds under the decentralised implementation system. 4.23. Chapter 23: Judiciary and fundamental rights Judicial system
• In the area of judicial reform, special legislation related to the judicial network in Kosovo, the deadline for which was set by the law on seats and territorial jurisdiction as 31 December 2013, has not yet been adopted. • Work on constitutional amendments to 4.20. Chapter 20: Enterprise and Progress was made in the area improve the position of the judiciary, on legal changes to address the quality and industrial policy - Limited progress has of energy, in particular in the consistency of judicial practice and judibeen made in the field of enterprise and electricity market, renewable industrial policy. The business environcial education is at an early stage. ment remains weak. energy and energy efficiency. • The practice of publicly commenting on trials and announcing arrests and 4.21. Chapter 21: Trans-European Additional efforts are needed detentions in the media ahead of court networks - Serbia has made little proto achieve cost-reflective decisions risks being detrimental to the gress in the area of trans-European electricity tariffs independence of the judiciary and raises networks. The financing of the new inserious concern. terconnections, and various structural • Effective implementation of codes of ethics, disciplinary rules and problems leading to delays in construction, both in transport and legislation on conflicts of interest and the lifting of immunity for energy, need to be addressed. Decisive government action is urgently certain posts are needed to ensure full accountability of judges and needed by the end of 2014 to ensure the construction of Nis-Dimitroprosecutors. vgrad interconnector. • The Academy’s legislative and institutional framework needs to be 4.22. Chapter 22: Regional policy and coordination of structural adapted to allow it to become the compulsory point of entry to the instruments - There has been good progress in the area of regional judicial profession while ensuring compliance with the ruling. Trainpolicy and coordination of structural instruments. Serbia is starting to
cordeditorial@cma.rs |
121 November 2014 | 27
made in the area of science and research. ing capacity and expertise should be significantly increased. • There is a need to further improve the expertise of judges in cer4.26. Chapter 26: Education and culture - Little progress was made in the area of education and culture and significant efforts are tain areas, especially in taxation and financial matters, consumneeded to improve the quality and efficiency of the education system. er protection, state subsidies, competition, asylum and human Participation in the relevant EU programmes in this area has continrights protection. • The number of bailiffs increased, but remains insufficient to meet ued successfully. the target set by the law for its implementation. 4.27. Chapter 27: Environment and climate change - Little pro• A proper case methodology to measure workload and to ensure a gress has been made in the areas of environment and climate change. more equal distribution of cases among judges and prosecutors as Strategic planning, greater administrative capacity and substantial part of the reform of the court network is required. investments linked to strategic priorities are needed to further align • Inconsistency in case-law continues to be a concern, especially in with EU policies in areas of environment, climate action and civil proappeal courts, and represents tection. An effective and permaa challenge to the principle of nent financing system for enviequality before the law.. ronment and climate action is • The draft law on free legal aid needed. remains to be adopted. A uni4.28. Chapter 28: Confied case management system sumer and health protection remains to be established. There has been some progress • The system of awarding comin the area of consumer and health protection. The new pensation to victims of crime law on consumer protection through criminal or civil prohas been adopted. The overall ceedings is not functional. financial sustainability of the • Serious weaknesses in the public health system needs to witness protection system be strengthened. have not been addressed and assistance to victims has not 4.29. Chapter 29: Cusimproved. The Commissioner toms union - There has been for Public Information desome progress in the area of the customs union. However, further efnounced the practice of anonymising There has been good progress the names of convicted persons in judgforts are needed to complete alignment in the area of regional policy in a number of key areas. The customs ments made available to the public. and coordination of structural declaration processing system remains Anti-corruption policy - Implementation of the strategy and action plan for instruments. Serbia is starting to be upgraded. 2013-2018 has yet to mirror the strong 4.30. Chapter 30: External relations to acquire experience in the political impetus to fight corruption. Sev- Limited progress has been made in the management of EU funds field of external relations. Preparations eral measures have been delayed. An efunder the decentralised for accession to the WTO are well adficient mechanism for monitoring implementation of the anti-corruption strategy vanced but move slowly in the final phase. implementation system and action plan needs to be ensured. 4.31. Chapter 31: Foreign, security The comprehensive review of the criminal code being conducted and defence policy - Serbia continued to participate in civil and milito ensure that corruption and economic crimes are precisely defined tary crisis management operations. The country’s alignment with EU and can be effectively investigated and processed needs to be comdeclarations and Council decisions in the field of foreign and security policy significantly declined compared to previous years and needs pleted without delay. The criminal code needs further amendment in to be improved. Legislation on the tracking mechanism for the implethis respect. Fundamental rights - Limited progress was made in the area of the mentation of EU restrictive measures has yet to be adopted. judiciary and fundamental rights. 4.32. Chapter 32: Financial control - Some progress has been made in the area of financial control. Considerable efforts are needed 4.24. Chapter 24: Justice, freedom and security - Serbia made with implementation of PIFC at all levels of the public administration. limited progress in the area of justice, freedom and security. Migration A new PIFC strategy and an action plan need to be developed for 2015management and asylum policies need to be significantly and urgently 2019. In the area of the protection of the EU’s financial interests, the strengthened and asylum procedures need to be streamlined. Further national anti-fraud coordination service needs to become operational. efforts are needed to tackle the phenomenon of unfounded asylum applications lodged by Serbia’s nationals in the EU Member States. A risk 4.33. Chapter 33: Financial and budgetary provisions - No proanalysis system has to be established in order to enhance control of gress can be reported on financial and budgetary provisions. The cothe borders. ordinating body required under the own resources scheme still needs to be established. ■ 4.25. Chapter 25: Science and research - Some progress was 28 |
121 November 2014 | www.cordmagazine.com
INTERVIEW
Architects of Our
OWN FORTUNE MILOŠ JELIĆ EXECUTIVE DIRECTOR OF NELT GROUP
The key to Nelt's success lies in understanding and fulfilling the mutual needs of its principals (suppliers) and buyers (retailers). High business standards, quality management and investing in the company's staff have contributed to Nelt's constant development and growth
N
elt today has over 3,000 employees, does business with the most renowned global companies and systems in seven countries and on two continents, and has advanced its business standards, rules and procedures constantly, while transferring the know-how acquired to its clients/consumers in Serbia, thus contributing to the higher quality of commerce and retail in Serbia and the region. ■ Nelt is one of the very few successful domestic compa-
nies which “takes care of its own business” and functions in line with business principles recognised all over the world. How have you managed to sustain and even develop such a way of doing business in the fairly complicated business environment of Serbia?
30 |
- Nelt has been doing business in Serbia and most Western Balkan countries (Montenegro, Macedonia, Bosnia-Herzegovina) for over 22 years. As of late, we have also been present in Sub-Saharan African countries. The key factor in our business was forging cooperation with Procter & Gamble in the distribution field in Serbia. Collaboration with this company, in terms of transfer of know-how, has always been, and still is, of crucial importance to our organisation.
121 November 2014 | www.cordmagazine.com
Of course, we have upgraded and adapted everything we have gained through this business partnership to our business environment. We can say with reservation that through implementing new standards, rules and procedures, while transferring the know-how acquired to our clients/consumers in Serbia, we have contributed to the higher quality of commerce and retail in Serbia and the region. I would say that the key to our success lies in understanding and fulfilling the mutual needs of our principals (suppliers) and buyers (retailers). We also think our success is linked directly to the activities we undertake, which result in fulfilling those mentioned needs. ■ How much does your development rely on assistance from the state or principles of so-called positive discrimination, which appears to be the favoured channel of communication between the state authorities and a certain segment of businesses? - Our business philosophy entails reliance on our own might and resources. As a socially responsible company, our aim is to help the local community we operate in, in accordance with our capabilities. That applies to all areas of economic and social life. We are very much interested in
seeing the state use regulations to increase market stability. At the same time, we are aware that there are many obstacles on the path to a completely regulated market. We think it is vital for the reforms undertaken to continue and for solutions to be found that would change the economic situation for the better, in addition to creating conditions for predictable and efficient business operations. As an important business system, we are adamant on contributing to comprehensive change through the way we work and we encourage other market players to adopt the same business values. In that regard, we accept and understand that “good pupils” have never been the focus of “teachers’” attentions, so it is somewhat understandable why the state chose to pay attention to less successful companies first. ■ The Government has recently an-
nounced its reform measures. In your opinion, what priorities should the Government have when it comes to the private sector?
ley. Today our portfolio also lists other large and very demanding companies that operate in accordance with the highest business standards and require maximum efficiency in every way. Our principals give systematic support to the growth of their brands by adapting their portfolios to suit different markets, while it is up to our teams to analyse economic and business parameters and implement set plans. Every new market is different and requires a special approach and attention. The Western Balkans is our “backyard” and, thanks to our dedicated long-term work, we have managed to become leaders in the business segments we cover. Africa placed in front of us a new group of criteria and challenges and it was only through joint efforts and synergy among all of our potentials, primarily human resources, that we were able to attain a great position in the SubSaharan cluster in a short period of time. ■ You recently celebrated the first an-
niversary of the company’s operations within the Nelt Group. What advantages lie in this change?
- Just like any other privately owned - This year, we are also marking the company, we want a clear and free eco20th anniversary of Nelt and we made a conscious decision to step boldly into nomic game. The Labour Law is the the future and form a new, thoroughly right step forward in this dialogue bemodern organisational structure called tween businesses and the government. the Nelt Group. Through the synergy of We are active supporters of the fight our know-how and the experience of against various forms of grey and black all our business segments and the mareconomy. In that respect, Nelt, and myDoing business on the African kets we operate on, we want to forge an self personally, have been playing an active role in resolving this problem continent is one of the biggest even better market position, while enand we advocate cooperation between strategic decisions ever made suring the long-term stability of existthe state, professional associations ing business operations. We are aware by Nelt. We formed an African of constant macroeconomic changes and businesses, which should have operations support team three main directions – changes in the and movements in the different terricurrent regulation and its implemenand have also received great tories we operate on. Hence, we have to adapt while also striving to improve tation, changing the way inspection support from our business our competitiveness. Creating this services are structured and educating partners group was a strategic decision that will and reforming all relevant, competent help us confront the challenges ahead and interested stakeholders. Contrary and increase the attractiveness of our companies significantly in to the popular belief that companies are in it only for profit, we the eyes of new potential partners strongly advocate that all our clients, which have been most seriously affected by smuggling and unfair competition, operate under ■ Does this bringing of all Nelt’s segments under one umbrella the same fair conditions, as well as for the employment rate to go up and for the collected taxes to be used to construct infrastrucconstitute a prequel to Nelt’s floating its shares soon? ture and for education and culture. - We have no such plans for now. We are focusing on ourselves. Our operations are stable and at the group level we are going to end 2014 with €500 million in consolidated revenue. The exceptional You have over 3,000 employees and are doing business with ■ structure of our financial resources, where over 60% of the capital the most renowned global companies and systems in seven counis our own, makes for a strong foundation for further development. tries and on two continents. What kind of requirements does the company management need to fulfil in an organisational, logistical and marketing sense?
- I can say with confidence that Nelt has set a distribution standard among companies. For over ten years we have been partnering leaders, multi-national companies like P&G, Kraft Foods and Wrig-
■ Nelt anticipated the economic crisis in the region in a timely fashion and decided to turn its attention to emerging countries. Could you tell us about your experiences doing business in Africa, where you cooperate with clients like Procter & Gamble, Wrigley,
cordeditorial@cma.rs |
121 November 2014 | 31
Nestle, Whirlpool and United Spirits Limited?
- Thanks to exceptional business relations with Procter & Gamble (P&G), which we have been fostering for years, we were able to utilise a one-of-a-kind business opportunity to further improve this cooperation through our operations in Africa. In this way our vision for international expansion became a reality, while P&G continued its strategic determination to cover untapped or insufficiently tapped markets. Entering a market that until recently had been a complete unknown required detailed analysis of its potential, its long-term growth perspective and risk assessment. We chose the Sub-Saharan cluster of countries which, according to the P&G classification, includes Angola, Zambia, Zimbabwe, Mozambique and Malawi. Today this region is home to over 760 million people and it has been estimated that by 2025 its population will have grown to 1.2 billion. We have formed an African operations support team and have also received great support from our business partners. This has helped us to enable our African consumers to gain full access to high quality products at competitive and affordable prices. Still, our mission does not relate only to business – rather we are also trying to improve the general living conditions of the African population. ■ You have expressed interest in expanding your portfolio to include production. What kind of investment interests you?
- The involvement of e-commerce in general commerce has been growing both nationally and internationally, with the last few years seeing continuous and fast development. Considering that we are a company that not only follows trends and keeps up with the times, but is also the leader in innovation, it comes as no surprise that we see e-commerce as a platform for new opportunities and a business segment that we will dedicate a lot of our time to in the period ahead. Our line of business is distribution of consumer goods and this still hasn’t positioned itself on the online market. Its share is rather small, which translates into a huge challenge, but also huge potential. That’s why we are preparing to offer our products in cooperation with our principals that have experience from more mature markets. We have been putting together internal procedures and our offer for an online market launch. In the last few years a number of online shops have been established in Serbia and this business segment is still considered undeveloped here, primarily due to an inadequate offer, high delivery costs and long delivery times, but also because consumers do not really trust online payments and ordering products without first seeing them. Yet, despite all of these obstacles, online shopping is becoming increasingly popular and we will endeavour to increase the offer and improve operations in this segment, as well as educating consumers with the goal of setting new trends and creating new habits and shopping formats together.
- I think market development and con■ Could you tell us something about centration will result in diminished the employee structure of the Nelt importance of distribution in the EuroNelt’s doors are open to Group and what specialised professionpean countries where we operate. We have been thinking strategically and als you most require? talented individuals whose have been planning on developing oth- The employees of the Nelt Group are professionalism, initiative and considered leaders on our developer business segments, which will enteamwork form their able us to sustain and even advance our ment path. They are the backbone of business DNA business positions. Logistic services are our development and a constant that is one of the most important directions of instrumental in accomplishing adequate our future business development and we have already made signifibusiness results. We always do our utmost when it comes to hiring, developing and keeping the best of them at the company. Thanks to cant progress in this respect. Whether we are talking about overall promotions in the company, we are proud to say that quite a few of logistical support or special segments of the process, like storage, our managers have climbed up the corporate ladder. Our energy is custom clearance, freight forwarding or national/international focused on creating a pleasant and animated working environment transport, Nelt is already cooperating with clients like Phillip Morthat will serve as motivation for our employees to give their best ris, Mars, P&G, Ball Packaging, Mondelez, VIP, Ferrero, Samsung, Dr every day, while considering and acting towards the company as beOetker and others. We also plan to invest in food production. Apart from extending existing production capacities and ranges, we are ing their own. Nelt’s doors are open to talented individuals whose also considering acquisitions and greenfield investments. professionalism, initiative and teamwork form their business DNA. A good balance between those who started their careers at Nelt, or spent most of their working years here, coupled with those who ■ This is a time of e-commerce, e-payment and other services priwe recognised as having good potential and made members of our marily based on electronic platforms. In which way has the Nelt team, is the foundation of the stable development of our company. ■ Group been adapting to these trends? 32 |
121 November 2014 | www.cordmagazine.com
THE EURO ZONE
The World’s Biggest
Economic Problem Deflation in the euro zone is all too close and extremely dangerous. The world economy is not in good shape. The news from America and Britain has been reasonably positive, but Japan’s economy is struggling and China’s growth is now slower than at any time since 2009. Unpredictable dangers abound, particularly from the Ebola epidemic, which has killed thousands in West Africa and jangled nerves far beyond. But the biggest economic threat, by far, comes from continental Europe
I
ly the Germans, have been brought up to with unpleasant but not apocalyptic conNow that German growth has stumfear inflation, deflation can be still more sequences for both itself and the world bled, the euro area is on the verge savage. If people and firms expect priceconomy. But the euro zone poses far of tipping into its third recession es to fall, they stop spending, and as degreater risks. Unlike Japan, the euro zone in six years. Its leaders have squanmand sinks, loan defaults rise. That was is not an isolated case: from China to dered two years of respite, granted by what happened in the Great Depression, America inflation is worryingly low, and the pledge of Mario Draghi, the European with especially dire consequences in slipping. And, unlike Japan, which has a Central Bank’s president, to do “whatever Germany in the early 1930s. homogenous, stoic society, the euro area it takes” to save the single currency. The So it is worrying French and the Italians that, of the 46 counhave dodged structurAlthough many Europeans, especially the tries whose central al reforms, while the Germans, have been brought up to fear inflation, banks target inflation, Germans have insistdeflation can be still more savage. If people and 30 are below their tared on too much austerfirms expect prices to fall, they stop spending, and get. Some price falls ity. Prices are falling in as demand sinks, loan defaults rise. That was what are welcome. Tumbling eight European countries. The zone’s overhappened in the Great Depression, with especially oil prices, in particular, have given consumers’ all inflation rate has dire consequences in Germany in the early 1930s incomes a boost (see slipped to 0.3% and article). But slowing prices and stagnant cannot hang together through years of may well go into outright decline next wages owe more to weak demand in the economic sclerosis and falling prices. As year. A region that makes up almost a economy and roughly 45 million workdebt burdens soar from Italy to Greece, fifth of world output is marching towards ers are jobless in the rich OECD couninvestors will take fright, populist politistagnation and deflation. tries. Investors are starting to expect cians will gain ground, and—sooner rathOptimists, both inside and outside lower inflation even in economies, such er than later—the euro will collapse. Europe, often cite the example of Japan. as America’s, that are growing at reasonAlthough many Europeans, especialIt fell into deflation in the late-1990s, cordeditorial@cma.rs |
121 November 2014 | 33
needs to start buying sovereign bonds. able rates. Worse, short-term interest Germany’s chancellor, Angela Merkel, rates are close to zero in many econoshould allow France and Italy to slow mies, so central banks cannot cut them the pace of their fiscal cuts; in return, to boost spending. The only ammunithose countries should accelerate tion comes from quantitative easing structural reforms. Germany, which can and other forms of printing money. borrow money at negative real interest The global lowflation threat is a rates, could spend more building infragood reason for most central banks to structure at home. keep monetary policy loose. It is also, That would help, but not be enough. in the longer term, a prompt to look at It is a bit like the early years of the eurevising inflation targets a shade upro debacle, before Mr Draghi’s whatevwards. But the immediate problem is er-it-takes pledge, when half-solutions the euro area. only fed the crisis. Something radical is Continental Europe’s economy has needed. The hitch is that European law plenty of big underlying weaknesses, bans many textbook solutions, such as from poor demography to heavy debt ECB purchases of newly issued governand sclerotic labour markets. But it has ment bonds. The best legal option is to also made enormous policy mistakes. couple a dramatic increase in infrastrucFrance, Italy and Germany have all esture spending with bond-buying by the chewed growth-enhancing structurECB. Thus the European Investment al reforms. The euro zone is particularBank could launch a big (say €300 billy vulnerable to deflation because of lion) expansion in inGermany’s insistence vestments such as faston too much fiscal auswhen halfer cross-border rail links terity and the ECB’s tisolutions only or more integrated elecmidity. Even now, with fed the crisis. tricity grids—and raise economies contractSomething radical the money by issuing ing, Germany is still is needed. The bonds, which the ECB obsessed with deficit could buy in the secreduction for all govhitch is that ernments, while its opEuropean law bans ondary market. Another possibility would be to position to monetary many textbook redefine the EU’s defeasing has meant that solutions, such icit rules to exclude inthe ECB, to the obvious as ECB purchases vestment spending, despair of Mr Draghi, which would allow govhas done far less than of newly issued other big central banks government bonds ernments to run bigger deficits, again with the in terms of quantitaECB providing a backstop. tive easing. Behind all this sits a problem of poIf there was ever logic to this increlitical will. Mrs Merkel and the Germans mentalism, it has run out. As budgets seem prepared to take action onshrink and the ECB struggles to conly when the single currency is on the vince people that it can stop prices slipverge of catastrophe. Throughout ping, a descent into deflation seems all Europe people are hurting—in Italy too probable. Signs of stress are beginand Spain youth unemployment is ning to appear in both the markets and above 40%. Voters vented their fury politics. Bond yields in Greece have riswith the established order in the EU’s en sharply, as support for the left-wing parliamentary elections earlier this Syriza party has surged. France and summer, and got very little change. Germany are trading rhetorical blows Another descent into the abyss will over a new budget proposal coming test their patience. And once deflation out of Paris. has an economy in its jaws, it is very If Europe is to stop its economy hard to shake off. Europe’s leaders are getting worse, it will have to stop its running out of time. ■ self-destructive behaviour. The ECB 34 |
121 November 2014 | www.cordmagazine.com
MORE DANGEROUS THAN THE LEHMAN BANKRUPTCY The economist and investment manager Max Otte was one of the few economists who predicted, in 2006, the world financial crisis that started a year or two later. He believes that the current economic downturn could prove even more dangerous than the one set off by the Lehman bankruptcy of 2008. “The financial crisis six years ago started with a panic. People realized that the world financial system might break down. We solved the problem with great heaps of cheap money,” Otte told DW. “However, there was a failure to follow up with structural reforms, and a number of fundamental problems were not addressed, let alone solved.” The consequences of these policy failures are now becoming apparent - in an accumulation of negative trends. The national debts of most European countries have risen even further, and southern Europe is in a catastrophic depression with mass unemployment. The existing economic policy package has failed to regenerate growth. International political developments are making things even worse. “The economic war we are stupidly waging with Russia has primarily harmed Germany and Austria. ISIS and the situation in the Middle East are further worsening the mood,” said Otte. Moreover, political instability in Europe has been a “gift” for the United States economy: “Corporations are beginning to shift their investments from Europe to America.” Hans-Werner Sinn, president of the Munich-based Ifo Institute for Economic Research, fears the European economy will stay weak for years to come. He recently told reporters that he saw no easy way out of the bad situation in the southern euro countries, adding: “The crisis is very clearly Source: DW not over yet.”
NOV 2014 BUSINESS LEADER’S MEETING POINT
Intelligently
Tailored
Broad
Authorisation
Success Even in
Turbulent Times
PAGE 37
PAGE 38
PAGE 42
BILJANA JOVANOVIĆ
SAŠA VARINAC
PREDRAG ĆURČIĆ
OWNER AND DIRECTOR OF LUNA FASHION HOUSE
PRESIDENT OF THE REPUBLIC COMMISSION FOR THE PROTECTION OF RIGHTS IN PUBLIC PROCUREMENT PROCEDURES
VISAN BUSINESS SYSTEM
Subscribe NOW! Get a year of CorD and receive your copy each month in additional to all special editions FREE
RECEIVE A SPECIAL GIFT! ONE ISSUE: €29.oo p/a
TWO ISSUES: €50.oo p/a
THREE ISSUES: €75.oo p/a
CONTACT US WITHOUT DELAY! 011.2450-508 011.2450-122 011.2450-204 36 |
office@aim.rs • www.cordmagazine.com
121 November 2014 | www.cordmagazine.com
INTERVIEW
Intelligently Tailored Today Luna is a stable and successful business system managed by modern managerial and design teams. We are eager to share our experiences with other members of the fashion apparel cluster BILJANA JOVANOVIĆ, OWNER AND DIRECTOR OF LUNA FASHION HOUSE
W
henever someone mentions the Serbian textile industry the first thing that springs to mind are ruined textile companies and low wages. Luna is an example that there are successful companies in this sector and that exporting to numerous and demanding markets is possible.
a 3,000-square-metre production facility, Luna is also a stable and successful business system managed by modern managerial and design teams with a highly-developed franchise. We export 40% of our product range and this puts us among the top fashion brands in Serbia, Montenegro, Bosnia-Herzegovina, Slovenia, Croatia, Norway, Macedonia, Slovakia and Sweden. And we are not stopping there. This August we opened our first outlet in Russia and our number one priority in the future is expanding to other markets.
- Our fashion and textile industry has been almost entirely reliant on its own strength to survive on foreign markets, both in the region and beyond. Considering this, we can be very happy with the results Serbian companies have achieved internationally. Still, the need to join forces and strengthen this sector has led to the creation of the Serbian Fashion Apparel Cluster FACTS, of which we are one of the founders and a member of the managing board. The state authorities could help with opening up new markets for fashion industry, just like they used to do in an organised manner back in the day.
■ Since its foundation in 1990, Luna This August we opened our first has always focused on producing el■ You are an active member of the outlet in Russia and our number egant and sophisticated women’s Association of Businesswomen of one priority in the future is clothing. How are you managing to Serbia. What do you think of gender expanding to other markets survive during this huge continuing equality in Serbia? crisis in the domestic textile industry? According to the EBRD, women are - Our guiding notion, which we were mindful A happy customer is an imperative, so owners of every fourth company in Serbia. of when we established Luna Fashion House, selling our clothes successfully in the EU It is really important to have proper gender has not changed – we are designing womis certainly an indicator of our longevity in equality if we want to have a good investen’s clothes which are, at the same time, creating comfortable, elegant, high-quality ment environment. Serbia is still struggling aesthetically pleasing and following the latapparel for modern businesswomen. with huge prejudices against women, who est fashion trends, not to the detriment of are branded as not being adequate entreprecomfort. Although I trust our team of de■ Our fashion industry used to have an neurs and always working in men’s shadows. signers fully, I always like to know how womexcellent reputation in the region, Europe I do hope that gender equality institutions en feel when wearing our clothes, whether and even in the U.S. How can we improve in the country will change that. In my everyeverything has been made to be comfortathis industry today and what role can the day work I try to give my own contribution to ble or whether we should alter some things. state play in that? developing female entrepreneurship. ■ Recognising our customers’ needs for beau“LUNA & WINE” tiful, high quality, comfortable clothes and LUNA fashion house continuously care about their finding ways to satisfy these needs is the customers. Therefore, each season they have spekey to our company’s success. cial events created to exchange experience and forge relations. On Tuesday, 28th of October, in it’s ■ You have been developing your operconcept store on Belgrade’s Nikola Pasic Square, ations in the region and in the EU and, LUNA held an special event, inspired by new auas of this year, in Moscow too. What are tumn-winter 2014/2015 collection. your priorities when entering such large The „LUNA&WINE“ event brought together it’s VIP customers, members of International Women’s Club, Serbian Association of Manand demanding markets? agers and of the Association of Business Women, as well as representatives of the media. - Luna today has over 160 fulltime emSpecial guests of the event were H.E. Mrs. Narinder Chauhan, Ambassador of India and H.E. ployees and as many external associates. Julia Alice Patricia Feeney, Ambassador of Australia. Apart from having our own retail chain and cordeditorial@cma.rs |
121 November 2014 | 37
INTERVIEW
Business Dialogue
Broad
Authorisation SAŠA VARINAC, PRESIDENT OF THE REPUBLIC COMMISSION FOR THE PROTECTION OF RIGHTS IN PUBLIC PROCUREMENT PROCEDURES
The Republican Commission for the Protection of Rights in Public Procurement Procedures has sufficient technical capacities to deal with a wide variety of powers given to it by the new Law on Public Procurement
T
he new Law on Public Procurement has brought a series of new solutions that regulate certain activities undertaken by the purchaser in the procurement process in a completely different way, as well as new powers of public authorities, above all, the management of public procurement and the Republican Commission for the Protection of Rights in Public Procurement Procedures, says SašaVarinac, President of the Republic Commission for the Protection of Rights in Public Procurement Procedures. The purpose of some of these solutions is to speed up and simplify the procedure for selecting the best offer and, on the other hand, efforts were also made to find solutions that will enable stronger and more effective control, especially at the stage prior to launching the procurement procedure and in phase implementation of the agreement on public procurement (specifically the regulation of the procurement plan, the introduction of rules to prevent corruption and conflicts of interest, as well as more rigorous regulation amendments to signed contracts).
38 |
■ The new law on public procurement has expanded the scope and structure of works that encompass the jurisdiction of the Commission. Given the number of staff and decision-making procedures, how much is the Commission able to effectively perform activities under its jurisdiction? - With the new law, the Republican Commission received a series of new powers, which means the scope of work of state bodies is now greatly expanded compared to the previous period, when its only jurisdiction was deciding on submitted applications for the protection of dissatisfied participants in public procurement procedures. Some of these authorisations were previously under the jurisdiction of the courts, such as conducting first instance misde-
sense, we must highlight the support that the Republican Commission receives from the Committee on Administrative, Budgetary, Mandate and Immunity Issues,which gives it approval to engage new employees when it comes to independent regulatory bodies, as well as the Committee on Finances, the State Budget and Control of spending public funds, as a body that supervises the work of the Republican commission. However, in the coming period it is really necessary to realistically consider whether it is possible for a state agency to perform so many different powers in the manner now prescribed, particularly bearing in mind that some of the traditional powers in comparative law relate exclusively to the courts and the way in which they are structured.
meanour proceedings (for which misdemeanour courts were responsible) and the cancelling of contracts (which were under the responsibility of economic courts or courts of general jurisdiction). When it comes to capacities, we cannot say at present thatthe Republican commission has problems that make it impossible for it to enforce its assigned authorisations.In this
■ What are the most common irregularities in public procurement cases? - Irregularities observed by the Republican Commission can be categorised into a few common categories, namely: unclear and imprecise content of tender documentation, which does not allow bidders to prepare an acceptable offer; defining technical specifications in public procurement
National bodies responsible for providing legal protection in public procurement in Serbia, Croatia and Slovenia recently signed a memorandum of cooperation that will enable them to exchange knowledge about characteristic legal issues relevant to their work
121 November 2014 | www.cordmagazine.com
procedures in a manner that is discriminatory character and reduces competition to a limited range of potential bidders; narrowing competition among the bidders by determining additional requirements for participation, which in nature and volume are not adjusted to the item of public procurement or have no logical connection with the same; unjustifiable conducting of public procurement in the negotiation process, which represents the most non-transparent type of public procurement
procedure; and improperly conducting and unjustified expert evaluation of the offers.
■ What is understood by the process of protecting rights in public procurement? - The system of protecting bidders’ rights and public interest in public procurement procedures in the Republic of Serbia functions on the basis of the principle of two levels, which means that a decision on the request for the protection of rights in the first instance by the purchaser, while and in the second instance the decision lies with the Republican Commission, in the case that the purchaser does not approve a submitted claim. ■ What activities does the Republican Commission undertake in order to remedy observedirregularities? - The basic job of the Republican Commission is, primarily, to decide in a short period of time on submitted requests for the protection of rights. In that way disputes arising between the contracting authority and the participants in the public procurement are resolved and observed irregularities are sanctioned(cancelling procedures in whole
or in part), while the Republican commission, through its orders and decisions, educates patrons in order for them to know how to rectify these irregularities.
■ To what extent is there practical implementation of the memorandum on cooperation between public authorities, signed in April this year, which envisages the coordination of the activities of relevant government authorities in combating corrup-
tween Croatia, Slovenia and Serbia? - Memorandum of Understanding signed at the recently held two-day conference dedicated to protection of the rights of the public procurement, organized within the program “Advancing Accountability Mechanisms in Public Finances”, supported by the Government of the Kingdom of Sweden and the United Nations Development Programme. The signatory parties to this memorandum agreed that cooperation between national authorities responsible for the provision of legal protection in public procurement procedures carried out in these countries, in terms of exchange of experiences, expertise and knowledge of the typical legal issues relevant to their work, or for high-quality and effective implementation of statutory jurisdiction. In this sense, it is necessary to highlight that consideration of comparative jurisprudence in countries that originated from the same legal system of the former common state, two of which are already in the EU, can contribute to qualitatively and effectively protecting the rights of participants in public procurement procedures, as well as improving the entire system of public procurement in each of these countries.
One should realistically consider whether it is possible for the Commission to perform a large number of different authorities, especially considering that some of them are traditionally compared as legally relating exclusively to the courts tion in the public procurement system? - Through the exchange of knowledge, experiences and information relevant to authorities in the public procurement system, these bodies will certainly perform their jobs more effectively, and those jobs are directly or indirectly aimed at curbing corruption. In order to apply sanctions at all, it is necessary for all stakeholders in public procurement procedures to be sufficiently trained and for them to know the rules they are required to apply. In this regard, it is important that the competent authorities harmonise their positions in the interpretation of the relevant provisions of the Law on Public Procurement, in order for there to be no dilemma in the application of these provisions. ■ What’s the key significance of signing the Memorandum of Cooperation be-
■ In which way will the legislative framework and national practices in public procurement procedures need to be changed in accordance with standards and directives of the European Union? - The public procurement system in Serbia is largely harmonised with European Union directives, which are still applied. However, we must bear in mind that in April this year three new directives governing public procurement came into effect in the EU, and those are directives that govern so-called“classical procurement”, then a directive that regulates so-called “utility” procurement, as well as a completely new directive that regulates concessions (previously there was no specific directive for that area). The period for mandatory implementation of these directives in the national legislation of member states is two years from their entry into force. ■
cordeditorial@cma.rs |
121 November 2014 | 39
LOCAL NEWS
Business Dialogue 01
MERCEDES-BENZ
Region “Most Albanians want a “Greater Europe” with Albania, Kosovo and all the other countries from the region in which they live, within the EU”. — EDI RAMA, Prime Minister of Albania
02
New Mercedes-Benz M-Class
UniCredit presents UEFA Champions League
The third generation MercedesBenz M-Class offers a high level of comfort, dynamic on-road handling and outstanding off-road capabilities The car’s interior design concept clearly combines an authentic SUV experience with a sense of wellbeing that is usually reserved for top-class Mercedes-Benz saloons. The M-Class scores particularly highly on outstanding energy efficiency and the new model range consumes an average 25 per cent less fuel than the previous models. Further strengths of this premium SUV with permanent all-wheel drive include exceptional safety and well-balanced ride comfort, as well as excellent driving dynamics both on and off the road. A characteristic body design and a variable interior with a high wellness factor, add to the richness of the driving experience in the new M-Class. The Mercedes-Benz ML 63 AMG is also set to become even more distinctive and striking, courtesy of new front and rear aprons with a chromed underguard and a larger AMG radiator grille.
03
The new “Big Tiger” production facility of Tigar Tyres has opened in Pirot and will employ a staff of 500, while the production capacity will enable the production of 12 million tyres annually by the end of 2016. Michelin Group has invested €215 million in expansion of the plant capacity. “The French company’s investment is confirmation that Serbia is a stable and well-regulated country that companies should invest in,” said Serbian President Tomislav Nikolić. With 500 newly hired workers, Tigar Tyres will have a total of 2,700 employees. Construction of the new production unit of France’s Michelin is the largest investment in the past few decades in Pirot, but also one of the largest in Serbia. 40 |
In the period from 14th to 19th October, nearly 15,000 football fans visited the Tour of the UEFA Champions League Trophy, which has been presented by UniCredit on its journey through Serbia Dejan Stanković, former captain of the Serbian national team and official ambassador of UniCredit for the UEFA Champions League Trophy Tour, and Mitchell Salgado, official UEFA ambassador for the Trophy Tour, opened this spectacular event. At the multimedia exhibition “UniCredit Walk of Champions”, organised in the context of this
04
TIGAR TYRES
“Big Tiger” Factory Opens in Pirot
UNICREDIT
event, visitors were able to relive the most important moments of the UEFA Champions League and, thanks to many interactive games, win original souvenirs. During this year’s tour of the UEFA Champions League Trophy around Europe, which is presented by UniCredit, 35,000 visitors had a chance to see the trophy. UniCredit Bank Serbia is a member of UniCredit Group, one of Europe’s leading financial groups, with a strong presence in 17 countries.
VICE.COM
Vicemedia and Antenna Group launch Vice.com Antenna Group, the largest media and entertainment group in Southeast Europe, and Vice, the leading global youth media company and industry leader in producing and distributing premium video content, are announcing the launch of Vice in Serbia in November. “After the successful launch of Vice in Greece, we are excited to bring this powerful digital media platform to the audience in Serbia and other countries in which our Group operates”, said Theodore Kyriakou, CEO of Antenna Group. Serbia is the 36th country in which a local version of digital media platform Vice.com has been launched. Created in 1994 as a punk magazine, “Vice” has expanded into a multimedia network, including the world’s premier source for original online video, Vice.com, a network of digital channels, a television and feature film production studio, a magazine, a record label and a book-publishing division. Antenna Group is the owner of Prva Television in Serbia and has been an investor in Vice through Raine, one of the leading global investment funds. Vice will be launched within the framework of the strategic partnership between Antenna Group and Vice media.
05
ZRENJANIN FREE ZONE
Zrenjanin Industrial Zone Voted the Best in Europe FDI Magazine (Financial Times) has declared the Zrenjanin Free Zone the best in Europe in terms of incentives for investors. Zrenjanin Mayor Čedomir Janjić said that this recognition was awarded to Zrenjanin because investors who are starting business in the Free Zone Zrenjanin can choose incentives as support for their investment. According to Janjić, the Zrenjanin Free Zone offers exemptions from customs duties on the import and export of raw materials and equipment to be used, but also on materials for infrastructure and various other benefits. Free Zone Zrenjanin is one of four free zones in Serbia and operating within free zones significantly reduces costs, by up to 40 per cent. In addition to the free export and import of goods and services, the benefits provided by Free Zone Zrenjanin also include free use of funds for Zone users, as well as import of goods into the Zone customs-free.
121 November 2014 | www.cordmagazine.com
Dialogue
GENERALI
PLACEMENTS & POSTINGS
Success of Generali Insurance in Serbia
appointments@aim.rs
TIM CARTWRIGHT
NEW HEAD OF THE COUNCIL OF EUROPE OFFICE IN BELGRADE
Generali Osiguranje Srbija, the first company for managing voluntary pension funds in Serbia, has marked eight years of operations “Savings in pension funds today is no longer a luxury but a necessity,” says Nataša Marjanović, executive director of Generali’s company for the management of voluntary pension funds. The company manages two voluntary pension funds – Basic and Index, whose assets amount to more than 6 billion dinars. In this fund almost 50,000 members are saving and in 2013 the Generali Basic Fund posted a return above the industry average. These voluntary pension funds have clearly different investment policies and two different mechanisms to combat inflation and depreciation of the dinar. The business of voluntary pension funds is strictly regulated and controlled by the National Bank of Serbia. Generali Osiguranje Srbija is the second biggest insurance company in Serbia and the leader in life, health and travel insurance.
07
SIKA SERBIA
Sika Serbia Officially Opens H.E. JEAN DANIEL RUCH, Swiss Ambassador to Serbia (left), and DRAGAN MAKSIMOVIĆ, director of Sika Serbia
Sika, a Swiss company known for the production of special purpose materials for construction and industry, has officially opened its factory in Šimanovci. This greenfield investment is worth an estimated €4.2 million and the fully automated factory stretches over 4,300 square metres and is equipped with the latest technology. Along with modern equipment, Sika strives to constantly improve its products with a modern on-site laboratory and a team of experts.
The Sika factory was officially opened by Dragan Maksimović, director of Sika Serbia, and the opening was attended by Swiss Ambassador, H.E. Jean Daniel Ruch, and Paul Schuler, director of the EMEA region. Sika Serbia has built its reputation as a key participant in major projects, such as Delta City, TC Ušće, Airport City Belgrade, Belville, Ada Bridge and Gazela Bridge, along with a multitude of other important construction projects.
Tim Cartwright was appointed to Belgrade in October 2014. After an early career in the British public service, Tim joined the Council of Europe in 1986. Over the next 25+ years in Strasbourg, his wide and progressive experience has ranged over running the budget; serving as the full-time elected representative of the staff; secretariat services in the Parliamentary Assembly; strategic and programme planning; and acting as Special Advisor on EU and Inter-institutional Affairs. Between 2005 and 2007 he served as the Special Representative of the Secretary General of the Council of Europe in Bosnia-Herzegovina and from March 2011 to September 2014 was Head of the Council of Europe Office in Pristina. He has also served as the Council of Europe’s anti-Terrorism Coordinator. Tim is married to Ann, an English Literature teacher. They have four adult sons.
CHRISTINE MORO
AMBASSADOR OF THE REPUBLIC OF FRANCE TO SERBIA
Christine Moro, born 1955 in Arles (Bouches du Rhones), was appointed Ambassador of France to Serbia in October this year. She began her career at the French Ministry of Foreign Affairs in 1979 and has served in numerous countries – Canada, Romania, the United Kingdom, Germany, Italy, Turkey and Albania. She has held senior positions in the central administration in Paris and worked on jobs related to the accession of Central European countries to the European Union. Prior to being appointed as ambassador to Serbia, she served as ambassador to Albania. She holds the rank of Minister Plenipotentiary 1st Class. She is also the recipient of two honorary awards – Knight of the Legion of Honour and Officer of the National Order of Merit. A graduate philologist and jurist, she speaks English, Italian and German and is married to Louis Moro.
SRĐAN POPOVIĆ
NEW DIRECTOR OF MARKETING AT CARLSBERG SRBIJA GROUP
Srđan Popović, new director of marketing at Carlsberg Srbija Group, has built his professional career over the course of 25 years engaged in marketing, acquiring knowledge, skills and experience in major corporations both at home and abroad. Popović, who studied in London and Paris, began his professional career at advertising agency Grey Group. He relocated to Serbia in 2004, taking on the position of marketing manager at Coca-Cola Hellenic. After a year he moved to Imlek, where he spent eight years as regional director of marketing. His most significant contributions at Imlek have been the launching of the brands “Balans” and “Bello”, as well as re-launching the brand “Moja Kravica”, which is now among the most beloved brands in Serbia. After Imlek, Popović took over the position of Carlsberg Srbija Group marketing director. cordeditorial@cma.rs |
121 November 2014 | 41
APPOINTMENTS
06
“I certainly do not hate Albanians and am ready to talk with them any time. Some of them are citizens of our state and I will always have an honest dialogue with them”. — ALEKSANDAR VUČIĆ, Prime Minister of Serbia
INTERVIEW
Business Dialogue
Success Even in
Turbulent Times PREDRAG ĆURČIĆ, VISAN BUSINESS SYSTEM
If a company’s operations are based on respecting high quality services and implementing top standards, then such a company can be managed successfully even in an unfavourable economic environment
A
lmost two and a half decades of Visan’s successful operations prove that continuously investing in quality and know-how is the key to the survival and development of any company.
■ How are today’s business challenges different to those prior to the crisis? - Ever since our establishment in 1990, our strategic goal has been to ensure growing market competitiveness through rendering high quality services, to invest our profit in know-how and technology and to operate in such a way that each segment of our business contributes to improving the overall quality of life. This is the business philosophy upon which Visan has been building its market position and its reputation among business partners and clients, both domestically and internationally. When you set up a business in that way from the start, then it comes as no surprise that after two and a half decades of operations we have managed to build a strong business system that bases its operations on an integrated management system with international ISO standards and on the commitment to man’s right to live and develop in a healthy environment, which is 42 |
achieved through constant improvement in quality of services and products and development based on real programmes with support from the local community. It is much easier to navigate difficult times when the economy is declining if you have such a business philosophy.
■ Last year you received the Serbian Chamber of Commerce’s CSR Award. How important is this segment in today’s business environment? - Visan was awarded in the SME category and that was yet another validation of our commitment to continuously contributing to our community. This year, which was the year of catastrophic floods and humanitarian disasters, we sacrificed our personal needs and paid two million Dinars for the flood relief effort onto the special bank account
tant because of the European integration process in Serbia. What made you focus more on this area of business? - For over 20 years environmental and sanitary protection has been the foundation of the business conducted by Visan. We strive to provide the widest possible range of services in this field and participate in raising environmental awareness in our society. In that respect, we are determined to educate staff and implement development programmes, including engaging in publishing, which covers a comprehensive approach to environmental theory and practice both domestically and internationally. ■ What are the most common problems businesses face today and how can chambers of commerce help them in this regard?
This year, which was the year of catastrophic floods and humanitarian disasters, we sacrificed our personal needs and paid two million Dinars for the flood relief effort onto the special bank account opened by the City of Belgrade Assembly opened by the City of Belgrade Assembly. Immediately after that a state of emergency was declared and we sent mattresses and food for the families who had been evacuated from the flooded areas and were accommodated in temporary shelters in Belgrade. ■ The key segment of your business relates to environmental protection, which is becoming increasingly impor-
121 November 2014 | www.cordmagazine.com
- As institutions, chambers of commerce play a very important role in representing the interests of businesses, from organising international business meetings and encouraging economic cooperation to analysing regulations, providing professional opinions and strengthening SMEs in particular, which are the foundation of economic growth and development and a source of new jobs. ■
cordeditorial@cma.rs |
121 November 2014 | 43
REGIONAL NEWS
South Stream
Business Dialogue 01
“In case Serbia continues with the implementation of the project South Stream contrary to the rules of the European Union, it would have an impact on its relations with Washington.” — CHRIS MURPHY, U.S. senator
ROMANIA
02
Two New Bridges Over the River Danube
BOSNIA-HERZEGOVINA
Sarajevo Airport anticipates 800,000 passengers in 2015
Romania’s government has approved the signing of a memorandum with Bulgaria on the construction of the two bridges, according to news agency Mediafax
Bosnia-Herzegovina's Sarajevo Airport is heading for its busiest year on record and is negotiating the launch of several new routes
The press office of the Bulgarian government announced end last month that the Cabinet had adopted the same decision earlier the same day. The new bridges are to connect the towns of Silistra and Calarasi, and Nikopol and Turnu Magurele. The memorandum envisages the launch of feasibility studies for new bridges over the Danube River. A bilateral working group is to be created on issues of transport infrastructure and its activity is to be coordinated by the respective ministers of the two countries. The financing is to be provided under the Romania-Bulgaria Cross Border Cooperation Program 2014 – 2020, according to reports. There are two bridges connecting Bulgaria and Romania at present. Danube Bridge Ruse – Giurgiu was launched in 1954, while Danube Bridge Vidin – Calafat was inaugurated in 2013.
The introduction of new routes depends on the airline’s assessment of the market and is a purely commercial decision. It was already announced that Wizz Air is eyeing up to three new routes to the Bosnian capital next summer season. Furthermore, Alitalia has also expressed interest to launch flights to Sarajevo by 2016 at the latest, while SAS Scandinavian Airlines is considering turning its seasonal summer flights into year-long services.
03
04
CROATIA
Poor Olive Harvest
Olive growers in the country’s best growing regions of Dalmatia and Istria have called this year’s crop as one of the worst in a very long time. After a relatively warm winter, followed by a wet summer this year, olive fruit flies have wreaked havoc on crops up and down the Adriatic coast. With such a poor season, supply levels are set to push the price up, with some speculating that a litre of extra virgin olive oil could pass the 100 kuna (€13) mark. 44 |
Bosnia and Herzegovina’s busiest airport has already secured the arrival of two new customers with low cost FlyDubai to launch services in December. On the other hand, Swiss International Air Lines will inaugurate flights from Zurich next May. During September, Sarajevo Airport handled 71,168 passengers and over the past nine months, Sarajevo Airport has welcomed 555,145 travellers through its doors, up 6.7% on 2013.
KOSOVO
Kosovo Sees Slow Economic Growth According to official data, Kosovo has seen the highest economic growth in the region. This growth is 3%, but according to economy experts, this is not sufficient for the creation of new jobs. Executive director of the Institute for Advanced Studies (GAP), Agron Demi, says Pristina that 3% cannot even be considered a growth. “A 3% growth is not considered to be as growth for Kosovo. The problem is that the government of Kosovo has always compared itself to the governments of the countries of the region and western countries, but, in development countries, a rate of 3% growth keeps the economy stable, whilst in Kosovo, it’s not sufficient”, says Demi. The economy professor, Muhamet Sadiku says that with this small economic growth, Kosovo cannot eradicate poverty and unemployment. According to Sadiku, if Kosovo had a 7 to 8% growth, then this would have an impact on the reduction of poverty. The failure to constitute parliament and the creation of the new government is generating negative effects in the economic processes of the country. Minister of Finance, Besim Beqaj said that the political deadlock, that Kosovo has been going through, will have its economic effects. He said that economic growth for 2014 will not be in line with projections as the start of the year. Source: ibna
05
ALBANIA
Number of Foreign Tourists Increased by 24.8% The number of foreign tourists who visited Albania during the second quarter of 2014 has increased by 24.8 per cent compared to the same period in 2013, while the number of Albanian citizens that have travelled abroad for the same period has increased by 3.6 per cent, according to Albanian Institution of Statistics (INSTAT). The number of foreign tourists that have entered in Albania for holidays and daily visits in the second quarter
121 November 2014 | www.cordmagazine.com
2014 was estimated at 229,632 compared to 184,480 in the same period last year. In the second quarter of 2014, the arrivals of foreign visitors by land comprised 86.4 per cent while arrivals by air and sea comprised respectively 10.7 per cent and 3.0 per cent respectively of total number of arrivals. Source: Xinhua
Project
06
SLOVENIA
“South Stream project, which is to employ several thousand skilled people in Serbia, enable the building of a transport plant and compressor stations, provide comprehensive transit and tax payment into the budge” — ALEXANDER CHEPURIN, Russian Ambassador to Serbia
07
Privatisation of Žito Underway
Bulgarians build Qatar 2022 infrastructure
A consortium of shareholders led by Slovenia Sovereign Holding (SSH) issued an invitation for bids on 21st October for a 51.55% stake in Žito, thus signalling the beginning of the process of privatising Slovenia’s biggest food companies. The shareholders consortium consists of SSH (12.26%), the stateowned Modra zavarovalnica (14.97%) and several private asset management firms and mutual FUNDS. Žito is one of 15 state-owned companies that were in the outgoing government’s privatisation priority list and is a major player in Slovenia and Southeast Europe in the bakery, confectionery, milled products, frozen foods, sweets, pastry, pasta, spices, tea and rice segments.
08
Telekom Austria Group and Telekom Slovenia have announced the merger of their Macedonian branches “VIP Operator” and “One” respectively. Telekom Austria will own 55 percent of shares in the new company, while Telekom Slovenia will possess the remaining 45. The agreement includes options over purchase and sale in case of Telekom Slovenia’s exit from the joint investment within three years. The merger is to be finalized by mid-November, when more details will be available. Moreover, the merger is subject to approval by Macedonia’s competent institutions, whereas the transaction is expected to close in the first quarter of 2015. “VIP” is the second-largest mobile operator in Macedonia with a market share of 28.1 percent and about 630,000 users by the end of 2013, while “One” is the third-largest with a share of 23.6 percent and approximately 528,000 users.
Some 20 Bulgarian companies are involved in the construction of infrastructure for Qatar’s 2022 FIFA World Cup, according to Ziad El Masri, Chairman of the BulgarianArab Business Association Ziad El Masri said that Bulgarian companies had managed to sign contracts in Qatar thanks to the international investment forum “The new economy of Bulgaria - The way to the East”, held in the resort town of Pomorie this spring.
09
FYR MACEDONIA
Telecommunications Operators VIP and ONE to Merge
BULGARIA
During the second edition of the investment forum “The new economy of Bulgaria - The way to the East”, held late last month, companies were be able to establish direct business contacts with organisations from Bulgaria, Russia, Kazakhstan, Turkey, Qatar, Kuwait, Jordan, Egypt, Yemen, Palestine, Morocco, Sudan, Oman and Lebanon.
MONTENEGRO
Average Gross Earnings of €722 in September The average gross earnings in Montenegro in September 2014 were €722, while the average earnings after taxes and contributions (net) are €476. In comparison with August 2014, the average earnings without taxes and contributions (net) in September 2014 increased 0.6%. The average earnings without taxes and contributions (net) in September 2014 compared to September 2013 increased 0.2%, while they decreased 0.6% compared to the average monthly net earnings in 2013. Considering that consumer prices in September 2014 increased 0.5% year-on-year, the result is that real earnings without taxes and contributions (net) in the same period increased 0.1 %, reports the Montenegrin Statistical Office.
10
11
HUNGARY
Audi TT Roadster Production to Start in November
CROATIA
Croatia Sued Over Pre-Independence Debt
The production of Audi’s TT Roadster model will start in Audi Hungarian Motor’s plant in Győr in western Hungary in early November, the company announced. The company declined to tell the planned number of TT Roadsters to be produced in Győr but said the plant operates in three shifts at full capacity and its projected production will be severalfold of last year’s above 40,000. In March, managing director Thomas Faustmann said the Győr-based company plans to triple production from last year’s 42,851. Production in three shifts started in mid-August and the reason specified was high demand for premium models.
Unlike other Balkan nations, Croatia still owes roughly $45 million on debt from its past as Yugoslavia, UBS claims in US Federal Court. The Swiss banking giant claims to have issued the former National Bank of Yugoslavia and other banks an “Alternative Participation Instruments” (API) agreement in late 1998, setting a 10-year deadline to repay some $80 million of refinanced debt. As Yugoslavia collapsed, Croatia and the other newly formed nations divided up its national bank’s assets, and Croatia assumed a portion of its liabilities, UBS says. “To date, the other successor states have all resolved their portions of the debt owed to UBS. Meanwhile, Croatia’s outstanding obligation, which amounts to roughly $45 million inclusive of principal and outstanding interest, remains due and owing.” Croatia acknowledged owing money to UBS twice in writing in 2008, the bank says.
cordeditorial@cma.rs |
121 November 2014 | 45
Business Dialogue MINECO LIMITED
New Investments
in the Pipeline
After investing in the mining industry in Serbia, Mineco Ltd intends to secure active role in the energy sector
M
Veliki Majdan mine near Ljubovija and procedures will be fast-tracked to quickineco has, to date, investthe Bosil-Metal mine near Bosilegrad iner facilitate our planned investments. ed over €30 million into the dependently or with partners. The reviThe Memorandum of Understanding promining industry of Serbia, talisation of the lead and zinc mine Veliki vides a period of 12 months in which the both independently and Majdan, which Mineco took over in 2006 investor must examine the feasibility of with its partners, creating 850 workplacafter it went bankrupt, was highlighted developing and implementing the proes. Mineco has now secured 4 locations by the Serbian Bankruptcy Supervision jects. So far the responsible institutions for building mini hydropower plants Agency as an example of a successful achave made a point of their willingness (MHPP) in the municipalities of Valjevo, quisition and continuity in management. to help investors to obtain permits and Dimitrovgrad and Paraćin, following In Bosnia & Herzegovina, Mineco opother documents easily.” the second public call published by the erates the lead and zinc mine Sase in Mineco Ltd has finished drafting the Ministry of Mining and Energy. Srebrenica, antimony mines in Novo technical documentation for building The investor is the British compaGoražde and the lead mine in the town three MHPPs on the river Rasina in the ny Mineco Limited (Ltd). The planned triof Olovo. Municipality of Brus (total power 2.2 MW) lateral Memorandum of Understanding Mineco Ltd is part of the Mineco and is now waiting for building permits. between the ministry, local governGroup which deals with investment in The company’s business plan is to build ments and investors that is expected to and development of lead, zinc be signed soon includes the and copper mines in South preparation and implementaThe revitalisation of the lead and zinc East Europe and countries tion of projects to build MHPP. mine Veliki Majdan, which Mineco took of the former Soviet Union. Two locations have been asover in 2006 after it went bankrupt, was Since its founding in 2003, the signed to Mineco by the city highlighted by the Serbian Bankruptcy Mineco Group has successfully of Valjevo on the rivers Sušica Supervision Agency as an example of a launched business operations and Povlenska, with an eson five continents togethtimated power of 470 kW. successful acquisition and continuity er with its partners: Europe Another MHPP of 346 kW estiin management (United Kingdom, Switzerland, mated power has been agreed Netherlands, Russia, Macedonia, Bosnia, mini hydro power plants of a total installed in the municipality of Dimitrovgrad and a Serbia, Cyprus), Asia (Turkey and Asian capacity of 40 MW in the Balkan region. further 404 kW MHPP on the river Grza countries of the former USSR), Africa Besides being an investor in the enin Paraćin. Detailed plans are yet to be (Zambia) and North and South America ergy sector, Mineco Ltd is also one of drafted and a final decision on which lo(Canada, Peru, Chile), with plans for furthe largest investors in the region’s mincations will be developed will be made afther expansion into Australia. ing industry. The Serbian Privatisation ter the completion of full feasibility studMineco’s business philosophy is Agency and other responsible instituies. Mineco Ltd’s investment in building based on an ethical approach. This tions have proclaimed the lead and zinc these MHPPs is estimated at €3.3 million. means legal business operations, promine Rudnik near Gornji Milanovac to be “Serbia has been making great eftection of the environment, industrial an example of best business practice by forts recently to create a business friendand commercial growth accompanied by companies that have emerged from rely environment for international invesinvestment in the communities in which ceivership into private ownership. Apart tors” said a representative of Mineco it operates. ■ from this mine, Mineco also operates the Ltd. “We hope that all the permitting 46 |
121 November 2014 | www.cordmagazine.com
HUNGARY: ECONOMIC REFORMS
Political Support in Exchange for
5 Million Workplaces The largest economic development programme in Hungary’s history begins on 1st January 2015, Hungarian Prime Minister Viktor Orbán has announced
Á
dám Jüllich founded the company in 1984 as a “work community” according to the law at that time – with a base capital of HUF 10,000 (€32). Today Jüllich Glass is one of the 5,000 Hungarian companies with revenue in millions of Euro. Orbán would like to create over 10,000 mediumsized domestic companies that are able to export and can build into a force in the national economy; at a time when in this globalised world not only companies but whole countries are threatened by devastating storms that can pull them down into the abyss any time.
lion (€390 million) will be announced this month. Only one third of this money will be used to decrease the unemployment among young people. Before 2020 however, a lot more money will be used to integrate about 340,000 youngsters and young adults on the job market. HUF 8.5 billion (€27.6 million) will be offered for the technical modernisation of small and medium-sized enterprises, and another HUF 4 billion to support young people willing to become self-employed. In the budget cycle from 2007 to 2013 enormous amounts were flowing out under the direct control of the Prime Minister’s Office: In September HUF 165 billion (€536.4 million) was distributed, the third-highest monthly amount this year. The payments of EU funds since the beginning of the year reached
economy can spend up to HUF 12,000 billion, which they have to supplement with 15% of their own sources, as is the standard process. In any case it will be exciting to see what turn the government – further strengthened – will take after the municipal elections held on 12th October. Orbán has already announced that “restrictions” are not part of the economic policy practised by his government. PRIME MINISTER WANTS STURDY HUNGARIAN CAPITAL He envisages a society based on work – in The prime minister sees himself as an fact his government managed to create so economic patriot when he wishes for sturdy many thousands of workplaces only through Hungarian capital. The reorganisation of pubcreating miserably paid public job opportunilic finances, the stabilised state budget, ties, which far outweighed the few tens a new tax system that supports the of thousands of new jobs that opened in In return for political support, the manufacturing sector and the creation Hungarian companies should help to the free economy. of workplaces, the reform of the labour Orbán also notes the success in the ensure that the goal of attaining five fight against inflation on the list of his code and the debt consolidation of cities million workplaces will be realised achievements, although the policy of and towns all serve this goal. “Hungary’s fundamental interests utility cost-cutting is not a guarantee for HUF 1,230 billion (€4 billion). Looking at dictate that the companies founded by Hunprice stability, even if we disregard its effects these amounts, the ambitious goal to reach a garian people should grow, and investments on energy efficiency. In addition, Europe is total HUF 2,000 billion (€6.5 billion) by yearshould be initiated in order that their value currently in a phase of deflation, so we cannot end still seems quite far away. increases and more and more people are able say that Hungary has achieved a miracle. to get work,” Orbán summed up. Experts believe that Orbán will also deal GOAL: 75% EMPLOYMENT RATE In return for political support, the Hungarwith the reform of the healthcare system and Critics say the process of allocating the ian companies should help to ensure that the will modernise vocational training within the funds coming from Brussels is not efficient goal of attaining five million workplaces will education system. Within the last four years enough. The Ministry of National Economy be realised. The government will make availthe national economy managed, according to does not agree: with the help of the euro bilable enormous amounts of money for developthe Prime Minister, to climb up from the cellar lions they want to achieve a 75% employment ing the economy, coming from the increased of Europe to the ground floor, but we cannot rate and a spending of 1.8% of gross domestic EU funding that will be received during the be sure yet if it will be strong enough to climb product on research and development by next budget cycle from 2014 to 2020. the steps to the higher floors. ■ The first tenders in the value of HUF 120 bil Source: The Budapest Times 2020. In the next seven years the Hungarian cordeditorial@cma.rs |
121 November 2014 | 47
WORLD NEWS
Business Dialogue 01
US
Competitors “Extremists on the left and right are nipping at our heels. Our competitors are taking liberties. It is time we breathed a new lease of life into the European project.” — JEAN-CLAUDE JUNCKER, President of the European Commission
02
HP Splits Into Two Companies Hewlett-Packard, a key supplier to the telecoms industry, has announced it will separate into two publicly-traded companies by the end of 2015. Hewlett-Packard Enterprise will consist of the company’s infrastructure, software and services business, allowing customers “to take full advantage” of the opportunities presented by cloud, big data, security and mobility in the “New Style” of IT. HP Inc. will retain the company’s trademark logo and comprise the PC and printing business, with plans to explore new technologies such as 3D printing and “new computing experiences”. The announcement is the latest development in HP’s five-year turnaround plan as the company looks to refresh its business, rebalance its financials and “reignite” company-led innovation.
03
RUSSIA
Limitied Foreign Ownership of Russian Media
President Vladimir Putin has signed into law a widely criticized bill limiting foreign ownership in Russian media assets to 20 percent, according to a document published Wednesday on the government’s legal information website. The law will force some of the world’s largest media companies — including Conde Nast, Hearst Corporation and Axel Springer — to sell off or shut down their Russian assets by Feb. 1, 2017. It will also directly impact The Moscow Times’ owner Sanoma Independent Media, the Russian branch of Finnish media group Sanoma and one of Russia’s largest publishing houses. The media bill galloped from proposal to new legal reality in under a month over the objections of industry players and the companies concerned. An earlier law had limited foreign shares in radio and television to 50 percent but bypassed print media. 48 |
04
CHINA
China Mobile, Deutsche Telekom Sign Connected Car JV Deutsche Telekom and China Mobile have signed an agreement that will see the two operators working together on a connected car joint venture in China. The two operators said the aim is to become a leading telematics service provider based on 4G LTE technology. Each operator holds 50 percent in the JV, which gets under way next year. China Mobile will contribute its LTE network, unspecified “chan-
nel resources” and promised to work with manufacturers and regulators in its home market to bring services to market. Meanwhile, Deutsche Telekom will provide its connected car platform and telematics services, and lean on its experience with European vendors to boost development and create wider market appeal.
05
UK
Amazon to Hire 13,000 Extra staff for Christmas
NORWAY
Real-Estate Boom North of the Arctic Circle
Amazon is preparing for Amazon’s centre at Edinburgh, Scotlands the annual online shopping onslaught by hiring 13,000 extra seasonal staff to work in its UK warehouses and customer service centres over Christmas. The figure represents a fall from 15,000 temporary jobs in 2013, however it hired 1,000 permanent employees in the last year and plans to add a further 1,000 to its 6,000 strong permanent over the next few months. The 13,000 roles will be based at Amazon’s eight fulfilment centres across the UK and its customer service centre in Edinburgh. Last year, on the busiest day in the run up to Christmas, Amazon customers ordered 4.1 million items - that’s about 47 items ordered per second.
06
BELARUS
Central bank acquires Bank Moscow-Minsk The National Bank of Belarus is acquiring the Bank MoscowMinsk, a subsidiary of the Bank of Moscow, Chairperson of the Board of the National Bank Nadezhda Yermakova told media on 18 October, BelTA has learned. It is expected that the deal will be concluded in the near future. “We are waiting for the official document to be adopted by the other party. All necessary decisions on our side have been made,” said Nadezhda Yermakova ,Chairperson of the Board of the National Bank. According to Nadezhda Yermakova, the Bank Moscow-Minsk will not merge with Belinvestbank.
121 November 2014 | www.cordmagazine.com
China and German premiers witnessed the joint venture assignment
Tromsø
More people want to live north of the Arctic Circle, as illustrated by the rising real-estate prices in Tromsø thze capital of the largest urban area in Northern Norway. Whereas Tromsø has previously been lagging behind the markets in Oslo and Stavanger, the expansion into the Arctic region now helps make Tromsø the most robust property market in the country, the Wall Street Journal reports. Prices in Tromsø jumped 8 percent in the first six months of the year, following a 10 percent increase in 2013. Apartments that are 130 sq/m sell for $1.6 million, close to the average price of an apartment in a prime area of Paris’ Left Bank. According to Jan-Frode Janson, president of the Tromsø-based bank SpareBank 1 Nord Norge, the realestate boom in Tromsø reflects the strength of the local economy.
Investment
07
TURKEY
“Countries like Germany, running current account surpluses, can afford to invest more, not only because it would stimulate the economy of the European Union, but because they need to take care of their future economic growth.” — JYRKI KATAINEN, European Commission Vice-President
Koç Holding Makes Offer for Duty-free on Grand Airport
08
First Georgian Company to Become Partner of Google Istanbul’s 3rd Airport - Grand Airport is expected to be one of world’s largest airport
Setur and Lagardere Services submitted the financial elements of their offer to the Istanbul’s 3rd Airport - Grand Airport (IGA) to qualify for the bid, which the IGA has initiated to identify the operator of its duty-free unit. Setur and Lagardare Services will submit the operational elements of their offer in the coming days and will hold a 50 percent share in the partnership, according to the statement. The IGA was established by a consortium of Turkish construction firms Cengiz, Limak, Mapa, Kolin and Kalyon to undertake the third airport project in 2013. The consortium had won the government bid for the airport’s construction and a 25-year lease with an offer worth €22.2 billion in May 2013.
09
FINLAND
State Cut Stake in Finnair
The Finnish Government has committed to reducing its stake in Finnair in the spring of 2019 in connection to an incentive plan thrashed out by the airline and the Finnish Air Line Pilots’ Association (SLL). The Government will, regardless, remain the majority shareholder in Finnair, with a stake of 53.5 per cent instead of the current 55.8 per cent. The roughly 700 pilots employed by Finnair have agreed to cut their wages and other benefits by a total of €17 million a year. In exchange, they will be entitled to a cash reward of a total of €12 million under the incentive plan provided that the preconditions imposed on the plan are met.
12
POLAND
More FDI
GEORGIA
10
A Georgia-based digital media marketing and application development company LeavingStone has become Google’s first partner from the Caucasus region. The partnership is multifunctional, but as the representatives state, the key feature is that it allows for direct connection with Google’s marketing. LeavingStone specializes in creating digital marketing campaigns, managing digital advertis-
ing channels and developing webbased software solutions that are integrated with different mobile and online platforms like iOS, Android, Facebook and Twitter. In addition, it provides digital media marketing and branding consultancy as a service that has become an integral part of marketing communications for successful companies.
CZECH REPUBLIC
Apple Prices Drop by up to 30% Czech apple prices have dropped by 20 to 30%, mainly due to the Russian ban on imports and to this year’s bumper harvest. According to estimates, this year’s apple harvest should be about 2% greater, reaching 123,000 tonnes. This is about 9% more than the average of the past five years. Retail chains are now paying growers an average of between €0.29 to €0.47 per kilo, while last year the price ranged between €0.40 and €0.58. In stores, the final price for consumers stands most often at between €0.91 and €1.09. Even more significant is the drop in purchase prices of apples for processing. They have dropped by up to 60% over the past two years and the trend is not expected to change. Prices have plunged due to declining demand for juices with a high proportion of fruit. The European Union announced that €165 million would be used to aid European fruit and vegetable growers affected by the Russian ban, but the Czech Republic will receive almost nothing.
11
AUSTRIA
Telekom Austria Tests G.fast Telekom Austria has hit data rates of more than 100MBps using existing copper lines running G.fast technology. The operator’s domestic subsidiary A1 is currently testing the technology ahead of a commercial launch of the fibre to the building service in 2016. Telekom Austria said there are around 400,000 households in Vienna alone that could benefit from ultra-fast broadband, without having to rewire their houses to equip fibre-optic cabling.
The Polish Information and Foreign Investment Agency (PAIiIZ) says it has helped bring 32 new foreign investment projects to Poland with a total value of over €1.7 billion since the beginning of the year. A total of 6,180 new jobs may be created in the country with these projects, the agency said. At the moment, the PAIiIZ says it is working to drum up a further 170 projects worth more than €3.2 billion and promising to create almost 37,000 new jobs. Most of the new investment is expected to come from the United States, followed by Germany, with the modern business services sector accounting for the largest number of projects. cordeditorial@cma.rs |
121 November 2014 | 49
AFTER WORK 26.09.2014
ASSOCIATION OF SERBIAN PRIVATE HEALTHCARE PROVIDERS ESTABLISHED MAJA PIŠČEVIĆ, DR PREDRAG STOJIČIĆ, DR ZLATIBOR LONČAR and MILIVOJE MILETIĆ
The Association of Serbian Private Healthcare Providers, which comprises 107 of the biggest hospitals, clinics and doctors’ offices in Serbia, has been established in Belgrade with the aim of compiling detailed records of all healthcare institutions, the number of people working in them and the health services they provide, which can be integrated into Serbia’s national healthcare system. The founding assembly was attended by Serbian Health Minister Dr Zlatibor Lončar, Acting Director of the Serbian Chamber of Commerce Milivoje Miletić, representative of the Association Dr Predrag Stojičić and Executive Director of the American Chamber of Commerce in Serbia, Maja Piščević.
Award winners with representatives of Siemens and jury members
NIKOLA RAJAKOVIĆ and MIŠA BRKIĆ
08.10.2014
RECIPIENTS OF THE SIEMENS PRESS AWARDS ANNOUNCED NIKITA MIKHALKOV
MILOŠ BIKOVIĆ and VICTORIA SOLOVYOVA
03.10. 2014
WORLD PREMIERE OF NIKITA MIKHALKOV FILM IN BELGRADE
Serbian President TOMISLAV NIKOLIĆ and his wife DRAGICA
The world premiere of the film ‘Burnt by the Sun’, directed by renowned Russian director and Oscar winner Nikita Mikhalkov, was held at Belgrade’s Sava Centre on 3rd October. The film’s director also attended the premiere and prior to screening addressed the audience to explain why he had chosen Belgrade for the world premiere, adding that Serbia was a sanctuary for tens of thousands of people that the film addressed. The film also stars Victoria Solovyova and Serbian actor Miloš Biković. “Burnt by the Sun” will also have a premiere in Russia, after which it will have its general release in Russian and other cinemas. Serbian President Tomislav Nikolić and his wife Dragica, Aleksa Jokić, advisor to the Serbian Prime Minister, and many public figures and celebrities attended the premiere. The possibilities and scope of the eUprava web portal and the benefits of introducing e-government services to both the public and businesses were officially presented at the Serbian Government building on 3rd October. As of this year, the web portal will also show draft laws set to be opened to public debate, which ensures the participation of citizens and NGOs in creating laws by providing their input and opinions. The presentation of the web portal was attended by Željko Ožegović, State Secretary at the Serbian Ministry of State Administration and Local Government, Ivan Radak from NALED, assistant to the Mayor of Loznica, Ljubinko Đokić, who attended as a representative of the municipality with the highest number of e-services rendered, and Director of the Serbian Electronic Government Directorate Dušan Stojanović.
Siemens d.o.o. Belgrade has announced the best journalism work at the traditional press competition Siemens Press Awards 2014. This year’s winners are TV Yu Eco reporter Sandra Iršević, editor-in-chief of Novi Magazin Miša Brkić and editor of the Preduzetnik web portal Rade Repija. The award ceremony was attended by Nikola Rajaković Ph.D., from the University of Belgrade’s Faculty of Electrical Engineering, and the Head of Corporate Communications at Siemens d.o.o. Belgrade, Jovana Žuržin. The jury comprised representatives of Siemens d.o.o. Belgrade and professors from the University of Belgrade’s Faculty of Electrical Engineering, as well as journalists specialising in business and transport.
03.10.2014
EUPRAVA WEB PORTAL PRESENTED
LJUBINKO ĐOKIĆ (left), IVAN RADAK, ŽELJKO OŽEGOVIĆ and DUŠAN STOJANOVIĆ JOVANA ŽURŽIN and NIKOLA RAJAKOVIĆ
50 |
121 November 2014 | www.cordmagazine.com
08.10.2014
SCHOLARSHIPS AWARDED “FOR WOMEN IN SCIENCE”
DRAGANA ILIĆ, SRĐAN VREBIĆ, ALEKSANDRA DIMITRIJEVIĆ, NIKOLA TANIĆ, JOVANA GRAHOVAC and L’Oreal Balkans CEO BRIGITTE STELLER
Three young Serbian scientists, Dragana Ilić, Jovana Grahovac and Aleksandra Dimitrijević, are the recipients of the €5,000 national scholarships for their exceptional scientific and research work. The scholarships were awarded by a global programme called “For Women in Science”. This year’s award winners were awarded on the basis of their scientific and research work in the fields of astrophysics, biotechnology and biochemistry. The scholarships will serve as an incentive for further advancements in their scientific work and the continuation of their work in Serbia. The national scholarship project “For Women in Science” was launched in Serbia in 2010 in partnership with UNESCO’s National Commission, L’Oreal Serbia and the Ministry of Education, Science and Technological Development. The award ceremony was attended by Serbian Education Minister Srđan Vrebić, CEO of L’Oreal Balkans, Brigitte Steller, and Nikola Tanić, deputy education minister responsible for basic research and the development of research staff.
KEVIN REX, Chargé d`Affaires, Embassy of Canada
09.10.2014
TRADITIONAL “AFTER HOLIDAY” COCKTAIL PARTY The Serbian Association of Managers (SAM) held its traditional “After Holiday” cocktail party at the Belgrade Waterfront Gallery, with a total of 150 managers attending the party. The welcome speeches were given by SAM President Milan Petrović, Executive Director Jelena Bulatović and Milovan Savić from the Eagle Hills Company. Apart from the members of the association, the event was also attended by representatives of the economic sections of the embassies of EU countries in Belgrade. Over 150 SAM members and other guests were able to enjoy the renovated venue of Geozavod, where the party was held.
BETTY ANN GERMAN
24.10.2014
FUND RAISING CONCERT AT THE CANADIAN EMBASSY
MILOVAN SAVIĆ, Eagle Hills Company, JELENA BULATOVIĆ, SAM Executive Director, and MILAN PETROVIĆ, SAM President
18.10.2014
“A MILLION REASONS WHY” BREAST CANCER AWARENESS WALK Health Minister ZLATIBOR LONČAR and Dr DRAGAN ILIĆ, Director of the ‘Dr Milan Jovanović Batut’ Public Health Institute
A fund raising concert entitled ‘Music for Serbia’ was organised and staged by the International Belgrade Singers choir, the Canadian Embassy in Belgrade, the B92 Foundation and Hello! Magazine. Three choirs, conducted by Betty Ann German, held a concert at the Canadian Embassy in Belgrade which was opened by Mr Kevin Rex, Chargé d’Affaires of the Embassy. The funds raised at the event will be donated to pedagogical institution “Perka Vićentijević” from Obrenovac.
The traditional breast cancer awareness walk “A Million Reasons Why I Want the World Next to You” took place on Knez Mihajlova Street in Belgrade. The walk was officially opened by a symbolic half-marathon track (21.95 metres long) on which very brave men wearing pink high heels raced against each other, thanks to www.trcanje.rs, and, by so doing, demonstrated to their fellow citizens how important it is for everybody to participate in fighting breast cancer. For the second consecutive year this campaign was realised by Avon, the B92 Foundation and the U.S. Embassy, with the Republic of Serbia’s Health Ministry and the City of Belgrade as patrons. U.S. Ambassador to Serbia, H.E. Michael Kirby, Serbian Health Minister Zlatibor Lončar, Director of the ‘Dr Milan Jovanović Batut’ Public Health Institute, Dr Dragan Ilić, many Belgrade citizens and breast cancer survivors, came out to support the campaign. cordeditorial@cma.rs |
121 November 2014 | 51
CULTURE CALENDAR CONCERTS
OPERA
Zvonko Bogdan
Opera Gala
Sava Centre Great Hall 20th November @ 20:00
Cineplexx Cinema, Ušće Shopping Centre, Georges Bizet’s Opera Carmen, 1st November @ 18.55, and Gioacchino Rossini’s Barber of Seville, 22nd November @ 18.55 For the third consecutive year, but for the first time in the Cineplexx cinema at Ušće Shopping Centre, opera lovers will be able to enjoy live broadcasts from the Metropolitan Opera for the
Legendary Pannonian singer Zvonko Bogdan, with his tambura layers, will hold his traditional autumn concert on 20th November at the Sava Centre in Belgrade, which will be symbolically tiled “From Banat to Srem”. Zvonko Bogdan (born 1942) has recorded 11 LPs, five singles and numerous cassettes and CDs in various editions
Herbie Hancock
Sava Centre Great Hall 27th November @ 20:00
2014/2015 season. The Metropolitan Opera is the first opera house to experiment, back in 2006, with the production of alternative content and is the only institution whose repertoire is screened successfully in more than 2,000 cinemas in 65 countries around the world. FILM
Free Zone Film Festival
The concert of one of today’s foremost musicians will provide an opportunity for the audience to enjoy the presentation of some of the most recognisable jazz themes, with tracks with which he won 14 Grammy Awards, along with numerous other awards during his career lasting more than half a century.
No Smoking Band
Mikser House, 29th November @ 20.30 The group Zabranjeno pušenje (No Smoking) will hold its traditional concert in Belgrade and this time it will not only mark Republic Day, but rather – along with the citizens of Belgrade – it will celebrate three decades of the cult album “Das ist Walter”.
7th-11th November, Belgrade, Niš, Novi Sad @ 20:00 The Free Zone (Slobodna Zona) Festival includes a series of programmes based on engaged, contemporary film production aimed at addressing current social and political issues from around the world. This year’s festival officially opens with the documentary film “20,000 days on Earth” and a documentary-fictional biography of rock and roll star, musician, poet, writer and screenwriter Nick Cave. The film was directed by the UK’s Iain Forsyth and Jane Pollard and won awards at the Sundance Festival, Berlinale and True False.
26th November to 3rd December, Dom Omladine, Belgrade Culture Centre, the Yugoslav Film Archive, Dom kulture Studentski grad, Cinema Fontana
Great Hall of Dom Sindikata 27th November @ 20:00
52 |
Great Hall of Dom Sindikata 6th November @ 20.30 Larry Coryell, but he has also made music for ballet and the Los Angeles Philharmonic, released 40 albums and this year he has issued a new studio album. Many consider him one of the most influential and technically the best guitarists of all time, who has mastered an extremely wide range of styles and genres, including jazz, Indian classical music, flamenco and fusion. He has participated in the work of the Miles Davis group, The Rolling Stones, Carlos Santana and the guitar trio with guitarists Paco de Lucia and The Auteur Film Festival was founded with the intention of familiarising Belgrade with top achievements of the seventh art in the world. This year’s main programme will feature 16 films, 10 of which will compete for the best film of the festival and the Aleksandar Saša Petrović Award. EXHIBITIONS
Exhibition dedicated to the “Lada” society
National Museum throughout November On the occasion of 110 years of the existence and activities of the Lada society, this exhibition will present paintings, graphics prints, sculptures and extended media. Their work is preserved by many museums, with the most
Auteur Film Festival
Beltango Quintet
The Beltango Quintet was founded in 1998 with the aim of bringing music lovers closer to the culture and music of distant Argentina, though the creative opus of the modern tango of Astor Piazzolla. Beltango, at the invitation of the Argentine Ministry of Culture, participated in the International Festival of New Tanga in Udine, where, as the only representative
John McLaughlin
valuable items stored at the National Museum in Belgrade. Particularly noteworthy is the fact that from its inception to date, some 18 members of Lada have been selected to join the Serbian Academy of Science and the Arts. The Lada society of Serbian artists is still active today. The author of the “Founders of Lada” exhibition is museum consultant Ljubica Miljković.
Exhibition of Marko Murat
of the Balkans, it was included in the ten most acclaimed ensembles of this kind of music in the world.
121 November 2014 | www.cordmagazine.com
National Museum throughout November This exhibition of paintings and drawings of Marko Murat, from the collections of the National Museum, has been put together on the occasion of the 150th anniversary of the artist’s birth. The exhibition presents all 27 paintings ex-
ecuted in oil and one watercolour of Marko Murat from the National Museum, which emerged between 1889 and 1936. Murat is important for the development of the arts in Serbia and he participated as an artist in numerous exhibitions, as an art teacher and one of the founders of the Serbian artists’ society Lada. The authors of the exhibition are museum advisors Ljubica Miljković and Gordana Stanišić.
50 artists from the collections of Museum of Contemporary Arts
Heritage House, until 7th December The Museum of Contemporary Art in Belgrade presents the exhibition “50 artists from the collections of the Museum of Contemporary Arts - Yugoslav Art from 1951 to 1989,” which have moved and changed linguistic paradigms of local art in the second half of the 20th century. The selection of works and exhibition are fully based on acquisitions of the Museum of Contemporary Art in Belgrade in a given chronological framework and does not include subsequent acquisitions and donations from the period after the collapse of socialist Yugoslavia. Author of the concept and the exhibition is Zoran Erić, while the curators are Svetlana Mitić and Michel Blanusha. The exhibition includes a rich ancillary programme with original and themed guides on Saturdays, meetings with artists on Wednesdays and weekend workshops for school children. OTHER
Carnival of Cranes
Novi Bečej, 1st-2nd November The Carnival of Cranes (Karneval ždralova) is the only event of its kind in Serbia. It is held in early November in Novi Bečej, home of the Slano Kopovo special reserve, where cranes spend a few months on their journey from Northern Europe to Africa. The programme of the event takes place at several locations in Novi Bečej and includes a costume party, exhibitions, concerts and ethnic bazaars.
CULTURE NEWS
Festival of gold ensembles of Vojvodina
Novi Sad, 9th-11th November The Festival of gold ensembles of Vojvodina is aimed at bringing visitors closer to the tradition and folklore creativity in Vojvodina through concerts of tambura players, folk ensembles, exhibitions of naïve art, makers of folk instruments and folk handicrafts.
success when performed as part of the main programme of the Edinburgh Festival. Performances in our country launch the European tour for this project. The event lasts 90 minutes and in the first part of the programme are musical works by composers from the period of the Great War, such as Ravel, Stravinsky and Rachmaninov, while the second part of the event is dedicated to original music written by Alexander Vrebalov for the Kronos Quartet and the film directed for this occasion by famous American director Bill Morrison.
Dances and sounds of the Balkans
Sava Centre Great Hall, 23rd November @ 20:00 This musical and visual spectacle, based on the modernisation of the original dances, ethnic music and visual aesthetics, seeks to represent the
Festival of the Owl
Kikinda, 27th November Kikinda is the largest wintering spot for the Long-eared owl on the planet. Every November, in honour of this bird, a scientific and entertainment programme is held with the aim of better acquainting participants with this mysterious bird that has chosen to make Kikinda its winter habitat.
International Festival of Animation - Animanima
Sava Centre Great Hall, 6th November, Serbian National Theatre, 7th November @ 20:00 This exclusive event had its world premiere at Berkeley in the States and enjoyed great
Culture House Čačak, 13th-16th November The Animanima Festival presents authors from the country and abroad who will present their works in various techniques from classical animation to modern computer animation. The competitive part of the festival takes place in two categories: author films up to 30 minutes, and animated commercials or music videos.
Lovefest Nominated for Best European Festival Vrnjačka Banja, 8th October “Lovefest”, the biggest festival of love in Serbia, held in on 8th October, has been nominated for the title of Best Mid-Sized European Festival, a prestigious award bestowed by the most influential European prize competition European Festival Awards (EFA). “Lovefest” found itself in competition among 70 other popular events in 20 countries. According to the organizers, following huge success and more than 60,000 visitors this year, the nomination for the
New York’s Carnegie Hall 9th October
The Belgrade Philharmonic Orchestra performed the final performance of its American tour at New York’s Carnegie Hall on 9th October, receiving extended ovations from the audience, who took to their feet to send off the musicians from Belgrade. “Carnegie Hall inspires awe in all musicians in the world and having a full hall in front of you is an amazing feeling. This is the crown of many years of work of the Philharmonic and I hope we can repeat this success soon,” said concertmaster Miroslav Pavlović.
Month of Swedish Culture in Belgrade original heritage of the Balkans in a completely new way. The project involves 49 artists who will perform stylised authentic folk dances of various Balkan regions.
Kronos Quartet
Belgrade Philharmonic Orchestra
best European festival is just another indication that the festival of love has transcended national boundaries and stands shoulder to shoulder with the world's most famous events of this kind.
Parabrod, Yugoslav Film Archive, Ethnographic Museum The Month of Swedish Culture in Belgrade began on 8th October with the opening of the photo exhibition “Different distances – between fashion photography and art” at Belgrade’s Parabrod. “Relations between countries and peoples do not relate only to politics and the economy, but also culture to a large extent, in terms of sharing values and mutual understanding”, said Swedish Ambassador to Serbia, Christer Asp, speaking on this occasion. He noted that this exhibition has already been seen in Paris, New York and Washington, expressing his satisfaction that the audience in Belgrade will now be able to see it. Authors Denis Greenstein, Julie Heth, Martina Hugland Ivanov, Julius Peiron and Elizabeth Tol belong to the new generation of Swedish fashion photographers, who have built a reputation worldwide and whose photographs can be found in the world’s most famous fashion magazines and galleries. The exhibition is organised by the Swedish Institute and the Embassy of Sweden in Belgrade, in cooperation with the Parabrod
Cultural Institute and Belgrade Fashion Week (Perwoll Fashion Week), which included this exhibition in the official programme of the 36th edition of Belgrade’s Perwoll Fashion Week. Cultural programmes within the Month of
cordeditorial@cma.rs |
The Belgrade Philharmonic Orchestra, under the guidance of conductor Muhaja Tanga, was heard by more than 1,500 people in the New York concert that began with Tchaikovsky’s Slavonic March. Performing alongside the Belgrade Philharmonic was famous baritone Željko Lučić, who received special permission to perform with our orchestra from the Metropolitan Opera, where he has performed for years. The Belgrade Philharmonic Orchestra was performing in the U.S. for the first in its 91-year history, visiting Chicago, Cleveland and Washington. In addition to the U.S. ambassador in Belgrade, the concert was attended by members of the diplomatic corps and officials of the State Department. Swedish Culture were held in the Yugoslav Film Archives, the Ethnographic Museum and Bel Expo Centre.
Celebrations of the Liberation of Belgrade
Various locations Chairman of the Organising Committee for the celebration of the 70th anniversary of the liberation
of Belgrade, Goran Vesić, said that the celebration of the liberation of the city, which began on 12th October, ended with a musical-cinematic spectacle, directed by Dragan Bjelogrlić, “The story of the Lump and the sky” at the Sava Centre. The text of this spectacle was written by Vladimir Kecmanović, while it included the participation of the RTS choir and orchestra and more than 100 dancers of Folk Culture Society Ivo Lola Ribar, with music written by Manjifiko, said Vesić. This spectacle, alongside the “Step of the Victor” (Korak pobednika) military parade, was the most important event in the celebration of the liberation of Belgrade, said Vesić. As a part of this major event, the Serbian Post Office issued a special postage stamp dedicated to the liberation of Belgrade, the Yugoslav Film Archive hosted film screenings and the exhibition “Liberation of Belgrade on Film”, the Institute for the Protection of Monuments of Culture organised the exhibition “Life in Belgrade, Life for Victory”, while the Dom Omladine youth centre organised a screening of the cult film “Otpisani” (Written off), directed by Aleksandar Đorđević.
121 November 2014 | 53
FACES & PLACES 01.10.2014
Independence Day of the Republic of Nigeria In commemoration of the 54th anniversary of independence from the UK and 100 years of the formation of the state within its present borders, H.E. Harold Augustus Koko, Nigerian Ambassador to Serbia, hosted a reception at the Crowne Plaza Hotel. The reception was attended by numerous guests, including representatives of political, cultural, diplomatic and public life.
H.E. HAROLD AUGUSTUS KOKO (right) with his spouse and staff of the Embassy
H.E. HAROLD AUGUSTUS KOKO (left) and H.E JUMA RASHID SAIF ZAYED AL DHAHERI, Ambassador of the UAE to Serbia
02.10.2014
Celebration Marks 24th Anniversary of German Reunification
ALEKSANDAR VUČIĆ and HEINZ WILHELM
Speaking at a reception marking the 24th anniversary of the reunification of Germany, the German Ambassador in Belgrade, H. E. Heinz Wilhelm, said that relations between Serbia and Germany have never been better than they are today. The reception was attended by Serbian President Tomislav Nikolić, Prime Minister Aleksandar Vučić, First Deputy Prime Minister and Foreign Minister Ivica Dačić, Serbian Patriarch Irinej, ministers Kori Udovički and Vanja Udovičić, representatives of political parties, ambassadors and numerous representatives of cultural and public life in Serbia.
06.10.2014
Fifth Week of Iraqi Culture
NEBOJŠA STEFANOVIĆ, Minister of Internal Affairs, and H.E FALAH ABDULHASAN ABDULSADA
The Ambassador of the Republic of Iraq to Serbia, H.E. Falah Abdulhasan Abdulsada, has organised the fifth traditional Week of Iraqi Culture event. The event was officially opened at the Yugoslav Drama Theatre with the announcement of the performance of famous Iraqi artist Omar Bashir and his group. Considering that the Republic of Iraq is currently fighting a war against terrorists, the Embassy wants to show that the country is capable of fighting against terrorism and, despite the fighting taking place there, the cultural and artistic creativity of one of the oldest civilisations in the world is able to present to the Belgrade public many valuable and beautiful treasures.
08. 10.2014
Media Cooperation Between the Region’s Countries
HEDVIG MORVAI-HORVAT (left), H.E. HEINZ WILHELM, ZVEZDANA KOVAČ, ERHARD BUSEK and NENAD ŠEBEK
54 |
121 November 2014 | www.cordmagazine.com
Belgrade’s Mikser House hosted a roundtable entitled “Media cooperation between the countries of the region”. Among the participants were Hedvig Morvai-Horvat, Executive Director of the European Fund for the Balkans, Heinz Wilhelm, Ambassador of the Federal Republic of Germany in Belgrade, Zvezdana Kovač, Executive Director of CDRSEE, Erhard Busek, Chairman of the CDRSEE Board and Nenad Šebek, RCC spokesman. Also participating were the chief editors of TV BiH (Sarajevo), TV BN (Bijeljina), TV Vijesti (Montenegro), HRT (Zagreb), TVK (Pristina), Alsat-M (Skopje), TV SLO (Ljubljana) and RTS (Belgrade), as well as the editors-in-chief of weekly publications Vreme (Belgrade), Dani (Sarajevo), Monitor (Podgorica), Slobodne Dalmacije and Europapress Holding (Zagreb).
08. 10.2014
Fuzjko Hemming Concert at Kolarac
Pianist INGRID FUZJKO HEMMING
09.10.2014
Goethe FEST 2014
Renowned Swedish-Japanese pianist Ingrid Fuzjko Hemming performed for the first time in the Great Hall of Belgrade’s Ilija Kolarac Endowment, under the patronage of Japan Tobacco International (JTI) and in cooperation with the Embassy of Japan in the Republic of Serbia. This famous pianist was born in Berlin to a Japanese mother and SwedishRussian father on 5th December 1932 and has so far released 15 CD albums, four of which have been awarded the recognition “Classical Music Album of the Year” at the Japanese gold awards, creating an historical first. The concert was attended by ambassadors of Australia, Lebanon, India and Italy.
Goethe Fest has officially opened with the exhibition “Filmski svetovi” (Film worlds) in the building of the Yugoslav Film Archives. The festival was opened by Nebojša Popović, guest editor of the film programme of the Belgrade Culture Centre, and Dr Matthias Müller-Wieferig, Director of the GoetheInstitut in Belgrade. Goethe FEST 2014 is organised by the Goethe-Institut in cooperation with the Belgrade Culture Centre, the Novi Sad Culture Centre, the Niš Culture Centre, the Yugoslav Cinematheque Film Archives and the Film Worlds project, which is supported by the Ministry of Culture and Information of the Republic of Serbia and the Belgrade Faculty of Applied Arts. The ceremony was attended by German Ambassador Heinz Wilhelm, as well as other members of the diplomatic corps and public figures.
H.E. MASAFUMI KUROKI, Ambassador of Japan
INIGO RAMIREZ DE ARO VALDES, Chargé d'Affaires (left), and H.E. ABDELLAH ZEGOUR, Ambassador of Morocco to Serbia
13.10.2014
Spanish National Day
H.E. HEINZ WILHELM (left), German Ambassador, NEBOJŠA POPOVIĆ, guest editor of the film programme of the Belgrade Culture Centre and Dr MATTHIAS MÜLLER-WIEFERIG, Director of the Goethe-Institut in Belgrade
On the occasion of the National Day of Spain, Chargé d’Affaires of the Embassy of Spain in Serbia, Inigo Ramirez de Aro Valdes, hosted a reception at Belgrade’s Hotel Metropol. The large number of guests at the reception included representatives of Serbian political parties, members of the diplomatic corps and representatives of public and cultural life. Spain celebrates its national holiday on 12th October, in remembrance of the date in 1492 when Christopher Columbus first set foot on American soil.
17.10.2014
Oktoberfest The German-Serbian Business Association and the German Business Delegation to Serbia have successfully organised the fifth Oktoberfest in Belgrade. The event was opened by German Ambassador to Serbia, Heinz Wilhelm, on the premises of New Belgrade’s Emil Frey Auto Centre. Many guests, including members of the diplomatic community and public figures, enjoyed the original atmosphere, with German beer and Bavarian cuisine.
H.E. HEINZ WILHEM (left), German Ambassador to Serbia, RONALD SEELIGER, Chairman of the DSW Board of Directors, and ROLF JUERGEN SEYERLE, Managing Director of Star Import Serbia
cordeditorial@cma.rs |
121 November 2014 | 55
FACES & PLACES 16.10.2014
Military Parade The military parade marking the 70th anniversary of the World War II liberation of Belgrade was held at Serbia Palace and on the Danube for the first time in 29 years, with the participation of around 4,500 members of the Army of Serbia. Alongside motor and combat vehicles, tanks, various artillery weapons and weapons for the support of ground forces, anti-armoury equipment was also presented, equipment specifically intended for electronic reconnaissance, aircraft and helicopters. The military parade was attended by the presidents of Serbia, Russia and Bosnia’s Republika Srpska, Tomislav Nikolic, Vladimir Putin and Milorad Dodik, Serbian Prime Minister Aleksandar Vučić, Speaker of the Serbian National Assembly, Maja Gojković, Serbian government ministers, representatives of the diplomatic corps, World War II combat veterans, church officials, Belgrade Mayor Siniša Mali and many other public figures.
56 |
121 November 2014 | www.cordmagazine.com
22.10.2014
Hungarian National Day In celebration of the National Day of Hungary, Hungarian Chargé d’affaires in Serbia, Zoltan Varga – Haszonits, hosted a reception at the Hyatt Regency Hotel with numerous guests in attendance, including representatives of Serbian political parties, members of the diplomatic community and public figures. The revolution and freedom fight which took place in Hungary in 1956 is the most important historical event in Hungary in the 20th century and the reason why 23rd October was been proclaimed a Hungarian national holiday and the day on which the 1989 creation of the modern Republic of Hungary is celebrated. 24. 10. 2014
UN Day
A UN team in the Republic of Serbia, led by the Representative of the UN Secretary-General and Head of the UN Office in Belgrade, Peter Due, and the UN Resident Coordinator for Serbia, Irena Vojačkova –Sollorano, celebrated UN Day at the city’s Mikser House. The event saw Due speak on the importance of the UN in promoting peace, development and joint progress in Serbia. He also highlighted the contribution of Serbian citizens to the global decision making process within the framework of the My World 2015 worldwide survey. The event was officially opened by the First Deputy Prime Minister and Serbian Foreign Minister, Ivica Dačić. This year the United Nations celebrates the 69th anniversary of the UN Charter, which came into force on 24th October 1945.
MIKI MANOJLOVIĆ (left), actor, IRENA VOJAČKOVA –SOLLORANO, IVICA DAČIĆ and PETER DUE
MAJA GOJKOVIĆ, Speaker of the National Assembly of Serbia, and ZOLTAN VARGA – HASZONITS
25.10.2014
60 Years of Diplomatic Relations Between Serbia and Indonesia Indonesian Embassy in Belgrade, officially marked 60 years of diplomatic relations between Jakarta and Belgrade. The official slogan of this year’s celebration was “Unity in creativity.” The ceremony was opened by the Ambassador of Indonesia to Serbia H.E Samuel Samson. He pointed out that „the relations between the two countries during the 60 years of cooperation, constantly promoted in all fields and that today that collaboration is at a high level“. The ceremony was attended by government officials and ambassadors of many countries of the world.
H.E. SAMUEL SAMSON, Ambassador of Indonesia to Serbia, and his family
27.10.2014
National Day of Austria
H.E JOHANNES EIGNER, Ambassador of Austria to Serbia
The Austrian Embassy organised a reception at Belgrade City Hall on the occasion of the country’s National Day celebrations. The ceremony was opened by Austrian Ambassador to Serbia, H.E Johannes Eigner, and Susanne Heger, as well as Commercial Counsellor at the Embassy of Austria, Andreas Haidenthaler, and Mrs Andrea Haidenthaler. The ceremony was attended by political officials, numerous ambassadors, other members of the diplomatic corps and public figures. This date has been celebrated as the national holiday since 1955, when Austria declared its long-term military and political neutrality (Immerwährende Neutralität). Neutrality is one of the fundamental pillars of Austrian foreign and domestic policy. cordeditorial@cma.rs |
121 November 2014 | 57
58 |
4 | INTERNATIONAL GERMANY 2012 121 November 2014 | www.cordmagazine.com
S P E C I A L
E D I T I O N
CONNECTING MEDIA WORLD Advertising Sector in Serbia 2014/15
- Advertising is based on one thing: HAPPINESS
— DON DRAPER, “Mad men”
COMMENT
Media Agencies Have a Central Role in Tomorrow’s Connected Media World Apart from its damaging financial impact on agency revenues, the global economic recession has created or accentuated two trends which are having an important effect on agencies generally and media agencies in particular
DOMINIC LYLE
Director General, EACA
EXCLUSIVE
T
he first has been to challenge the truism that agencies and brands should build collaborative partnerships. In the new post-recession world, client/agency relationships are often short-lived in nature, placing greater emphasis on financial results. Simultaneously, the recession caused many advertisers to shift towards digital advertising both to save money and to satisfy the consumer
position, McKinsey have conclusively demonstrated that advertising has fueled, on average, about 15 percent of growth in GDP for the major G20 economies over the past decade— and in some years, the contribution was as high as 20 percent. At the heart of that growth is digital media, which has grown strongly in recent years, when other media have suffered. It represented 17 percent of total media advertising expenditure
BY UNDERSTANDING WHAT WILL MOTIVATE CONSUMERS TO CHANGE THEIR BEHAVIOUR AS WELL AS THE BEST PLACES AND TIMES FOR ANY MESSAGE TO APPEAR, MEDIA AGENCIES ARE HELPING TO MAXIMISE THE EFFECTIVENESS OF THEIR CLIENT’S MARKETING MESSAGES demand for online content. In the face of criticism from some economists that advertising does not benefit the economy because it tends to increase prices, encourage nonessential investment and help leading companies retain their market
ADVERTISING SECTOR IN SERBIA
in G20 countries by 2010, up from less than 3 percent in 2002. Most research shows that half of the money spent on digital advertising is new investment; the other half represents a shift in spend from traditional print and broadcast media to digital media (for exam-
ple, more online postings on eBay at the expense of newspaper classifieds). As the proportion of advertising spend devoted to digital media increases, economic growth also increases. This finding suggests that digital media can provide greater benefits to an economy than spending on offline media, such as print and broadcast ads, alone. Although digital media represented, on average, 9 percent of advertising expenditure over the past decade, it was responsible for 29 percent of advertising’s effect on economic growth. Digital media offer particular opportunities to media agencies because, in today’s complex media world, the role of the media agency is central to the development of effective communications. By understanding what will motivate consumers to change their behaviour as well as the best places and times for any message to appear, media agencies are helping to maxim-
ise the effectiveness of their client’s marketing messages. Ten years ago, if you asked an account handler in a network advertising agency group about cross media production co-ordination beyond TV and press, you would be met with a blank expression. The cross media market place has evolved beyond recognition. And agencies have recognised the need to demonstrate specialist capabilities that span creative and production disciplines. Today the majority of brands have also embraced a cross media approach, striving to connect on a more personal level and are actively creating integrated cross channel touch points. When media agencies were first launched, their main focus was on their ability to buy media space cheaper and more efficiently than the mainstream advertising agencies, which had previously managed the process of media buying. Today, media agency staff will include roles that simply didn’t exist a decade ago, with titles like search specialist, social media technology expert and content creator. These specialists ensure that the data produced by
to content and/or advertising). That said, more progressive countries and broadcasters have recently started to ensure that audience measurement includes 3 additional metrics (particularly within TV): timeshifted viewing (beyond 7 days after transmission), beyond the TV screen (i.e. PC, laptop, tablets, smartphones etc) and integration with other data sources (e.g. merging census data with internet protocols, metadata etc). These efforts and developments are welcome and essential: in our multi-screen world of today and tomorrow, agencies and clients want and need to understand the different viewing and listening patterns of be-
INDUSTRY PARTNERS NEED TO ENSURE THAT ALL PARTIES (I.E. MEDIA OWNERS, AGENCIES AND CLIENTS) FULLY RECOGNISE AND UNDERSTAND NOT ONLY THE CHANGING DYNAMICS OF MEDIA CONSUMPTION AND BEHAVIOUR, BUT ALSO THE REAL IMPLICATIONS FOR, AND GROWING IMPORTANCE OF, OPTIMISING EFFECTIVE MARKETING COMMUNICATIONS ACTIVITIES modern marketing campaigns as well as the on-going conversation via social networks is easily understood. Increasingly, agencies and clients are developing and using planning techniques across all communication channels and need to plan, track, measure, analyse across all media touchpoints with consumers. Historically and currently, the measurement metrics provided by the majority of broadcast media owners across Europe continue to focus primarily on relatively traditional forms of audience measurement (e.g. number of eyeballs watching or ears listening
4 | INTERNATIONAL GERMANY 2012
haviour, interaction, duration and volume across and between all screens, not just on the traditional TV sets. Agencies and clients will continue to utilise traditional metrics, such as actual reported audience measurement, bur largely for trading and reporting rather than planning purposes. In the emerging media world, planning and investment decisions will be based upon the predicted, combined impact of an advertising campaign across all platforms and channels. Planning and campaign evaluation will be tracked using 360 degree techniques, including assessment of the
impact from paid, owned and earned channels of communication. The importance of consumer interaction via social media whilst consuming content (TV or radio) must also be factored into the equation; it is critical to use such dynamics in maximising marcoms effectiveness. Ultimately, agencies and clients are looking for measurement techniques that allow evaluation across converged media channels (including the impact of social media), not just crossmedia analytics. They do recognise that business and revenue models of individual content owners will continue to require silo’d forms of measurement, but encourage all businesses to take a progressive approach to developing converged media metrics. Industry partners need to ensure that all parties (i.e. media owners, agencies and clients) fully recognise and understand not only the changing dynamics of media consumption and behaviour, but also the real implications for, and growing importance of, optimising effective marketing communications activities. This means ensuring regular engagement between the most relevant contacts within each organisation to develop research and analysis techniques together with bespoke ideas and activities to fit this new world and ensuring that certain individuals within the media owner organisations come from a wider marketing/agency background, in order to demonstrate that they fully understand and can respond to the challenges facing agencies and clients. Additionally, there is a need to develop genuine “partnerships” rather than supplier based relationships. The precise form of such partnerships will and should vary enormously, but it needs to be based upon a full understanding of the core objectives for each party involved. Successful partnerships will obviously still need to include baseline terms of engagement, but crucially must go further to include deeper levels of integration between the relevant parties (e.g. bespoke arrangements to deliver unique benefits to each stake-holder). ■
ADVERTISING SECTOR IN SERBIA
INTERVIEW
Leader in Introducing New Standards Direct Media continually confirms its leadership role in mastering new technologies and understanding in changes to approaching media companies with the aim of successfully understanding consumers and representing the interests of advertisers JOVAN STOJANOVIĆ
Managing Director, Direct Media
M
edia companies in Serbia operate under conditions of constant crisis and the expectations of clients to get a better service for less money. Through the constant improvement of its work, investment in the acquisition of new knowledge and techniques, Direct Media succeeds in offering the superior service with a value that can be accurately measured.
• The economic crisis and huge technological advancements have resulted in major changes in the functioning of the advertising, media and media agencies. What challenges await agencies in accordance with these changes?
operate. I think the basic conclusion that emerges from everything is very similar to those in other industries: the consumer has rightly become more demanding – it is necessary to provide quality services for less money. General technological development enormously, perhaps more than in other industries, influence the operations of media agencies. Direct Media was the first agency to recognise digital as a new opportunity, but also as an unavoidable path of development in the coming years. Our digital sector, the largest on this market, is a leader in the region, both in terms of income generated and the innovation which, in cooperation with our partners, we are introducing to the market. We were the first agency to introduce aug-
THE TREND IN THE WORLD, AND SO ALSO IN SERBIA AND THE REGION, IS THE MEASURABILITY OF EACH EURO INVESTED - ROI HAS BECOME THE MOST IMPORTANT PARAMETER FOR ALL CLIENTS - We certainly would not be mistaken if we were to say that the economic crisis of 2008 changed the overall picture of business, but the consequences of the crisis, to the extent to which we have even emerged from it, have lasted for so long that it would be more accurate to defined it as a new reality in which we all
ADVERTISING SECTOR IN SERBIA
mented reality to the region and for that were awarded with regional recognition; we were the first in the region to offer Twitter advertising, and today we provide our clients, again as a first, the possibility of real time bidding as a contemporary way of leasing online media. I would highlight in particular pro-
grammatic buying, or that we are currently working on the implementation of the first campaign of this kind in the region. Technological advances are a major challenge, but we are fully aware that Direct Media, as a leader, is expected to master new technologies before others and to also help raise the quality of the market in this aspect. • The activities of media agencies worldwide play an important role in improving the efficiency of sales and the overall business of a company, hence its high rating in the economic environment. In Serbia, however, this sector is not sufficiently recognised as one of the carriers of development, nor does it have the social status it deserves. What do you think should be done to change this? - With the objective of furthering our understanding of the needs of our partners, Direct Media positioned itself as a communications agency back in 2009, striving to participate even more intensively in strategic planning for brands on the market, because that is the only way to take an extra step towards better quality advertising campaigns. For this market and this time, unusually large investments in additional research, development of its own soft-
ware, that is really useful on this specific market, and a knowledge base that is constantly expanding, we continuously prove that the role of media agencies has changed and that its core business, media buying and media planning, gently turns in the direction of communication planning, with a deep familiarity with consumers, target groups and the markets. I think it is up to the agencies to convince the market that our role has evolved and that we perceive ourselves as being able to offer more and better than traditional media agencies. I think the Direct Media is already partially succeeding in that and for that reason we honestly support and await the development of other agencies on the market in the same direction, because that’s the only way the status of agencies on the market can be changed. • The place of the agency in the contemporary economic environment is at the heart of media-advertiser dialogue. How do agencies carry out this role and what kinds of efforts are exerted in its implementation? - It is true that, viewed as a lump sum, the role of agencies is somewhere between advertisers and the media. I still think that the role of a proper agency is on the side of the consumer, who is at the centre of our strategy. We are aware that the new times, fragmentation of media, and hyper individualism, have led to a completely new approach to developing strategies. Excellent knowledge of the media and their ever greater measurability gives us the advantage of comprehensive knowledge of market trends. Only through understanding the consumers can we put ourselves on the side of the advertiser, and then through absolute familiarity with the needs of advertisers we can find the most efficient way to communicate that message with the help of the media. Some will say that this is just phrase, but from a many years of practice, I can say with certainty that only a partnership between all three parties, with the aim of satisfying the needs of consumers, can lead to many years of success, in what all of us are trying to promote in the best possible way. I can say unreservedly that Direct Media has been privileged to work with companies that are leaders in their cat-
egories and I believe we, at least to some extent, and precisely by building these relationships between all three parties, have also succeeded in contributing to that.
Media Strategy adopted in 2011. The next phase, which will include new harmonisation with European trends, will be even more significant.
• Budgets for advertising should be recognized as an investment, not an expense. How is it recognized in Serbia? - As I said earlier, a large number of market participants have recognised that – certainly advertisers primarily, but together with them all those quality agencies. In order to improve the market, it is up to us to work together to ensure that all participants in the process become aware of that. The trend in the world, and so also in Serbia and the region, is the measurability of each euro invested - ROI has become the
• The opportunities provided by new media in Serbia will be reflected in the schedule of the budget for advertising. How will 2015 look and what challenges await us? - We already know that the reduction in public sector wages will have a negative impact on the purchasing power of the citizens of Serbia. In Serbia, which has been living in a kind of latent economic uncertainty for the last two decades, there exists this strange delayed effects of the crisis, which would probably have been noticed much earlier on other markets. It seems our consumers need time to react to changing circumstances, probably because they have spent years getting used to economic uncertainty.
WE CONTINUOUSLY PROVE THAT THE ROLE OF MEDIA AGENCIES HAS CHANGED AND THAT ITS CORE BUSINESS, MEDIA BUYING AND MEDIA PLANNING, GENTLY TURNS IN THE DIRECTION OF COMMUNICATION PLANNING, WITH A DEEP FAMILIARITY WITH CONSUMERS, TARGET GROUPS AND THE MARKETS most important parameter for all clients. The job of every high quality and transparent agency is to familiarise those clients, who do not have the know-how in the field, with the existing international practice and to suggest this kind of quality control of their work. With that, the work we do will also be recognised in the right way and respected in accordance with the results we achieve together. • What are the legal and regulatory solutions within the framework of existing and future laws that would improve the functioning of the advertising sector in Serbia? - The Law on Advertising, which is under preparation, is the first step towards that. Of course, all laws must follow the real picture of the media and the market, considering that we are still at the stage of adopting media laws based on the
4 | INTERNATIONAL GERMANY 2012
In any case, economic stability and GDP growth are the first factors that will affect spending in 2015, and therefore advertising budgets. Our assessment is that the impact of television, which has really been offering quality and truly professional programming in recent years, will continue to strengthen and that the new digital media will continue to be the winners in terms of growth in their share of the advertising pie. Media measurability is increasingly important and I’m certain the media companies will try, as accurately and convincingly as possible, to prove their impact on the public. Those who succeed in that will emerge as victors, while those who do not manage to do that in an adequate way will lose in the long-term. That’s why market regulations, tools and the research we have available are in the interests of all of us. ■
ADVERTISING SECTOR IN SERBIA
INTERVIEW
Efficiency Must Mean Sales! More, Faster and Cheaper vs. Strategy and Creativity? In crisis conditions clients are increasingly looking for “more”, “faster”, “cheaper”, while creativity and a strategic approach to quality are often ignored. This phenomenon threatens to lead to a complete collapse of the entire industry, without which it is impossible to adequately place products on the market DEJAN RANĐIĆ
General Manager, DNA Communications
O
ne of, if not the, greatest needs of our market is the process of continuous education and improvement of relations between agencies and clients, says Dejan Ranđić, CEO of DNA Communications. The rule “Cash is King” has done its bit, so media agen-
through tenders where bids are judged according to the lowest price, which is devastating for this industry. Primarily they are asking for “more”, “faster”, “cheaper”, and it is precisely these attributes that become the basic criteria for cooperation, while creativity and a strategic approach
ONE OF, IF NOT THE, GREATEST NEEDS OF OUR MARKET IS THE PROCESS OF CONTINUOUS EDUCATION AND IMPROVEMENT OF RELATIONS BETWEEN AGENCIES AND CLIENTS cies are too rarely consultants and strategists, and too often only implementers. There’s not enough partnership. Services that by definition have creativity at their core are procured
are qualities that are often ignored. “This phenomenon, which, if we’re honest, is the fault of both agencies and clients, threatens to lead to a complete collapse of the entire
industry, without which is impossible to ensure an adequate placement of products on the market – an essential element in any sales system,” says Ranđić. However, there are positive examples of small and large companies who enthusiastically approach their advertising strategy and view investments in effective communication with consumers as a serious investment and not an expense. • The economic crisis and huge technological advancements have resulted in major changes in the functioning of the advertising, media and media agencies. What challenges await agencies in accordance with these changes?
NEUROMARKETING IS NOT THE FUTURE, BUT RATHER THE PRESENT Dr Nikolaos Dimitriadis, Brand Advisory director at DNA Communications
People in marketing largely have presumptions about how some things take place in the human mind. It's a gamble, full of risk, with a lot of money in play. Companies invest a lot of money into a campaign and what happens is they pray that it works. Science, in that sense, enables us to eliminate that burden and offer a basis and methodology that we can
ADVERTISING SECTOR IN SERBIA
apply practically. Based on science, we can develop very specific tools and strategies, in order to precisely and accurately define messages that pave the way to the “buy button” in the brains of our customers. I have been investigating neuromarketing since 2005 and I'm very pleased that its global expansion is underway, but for now Serbia is lagging behind the rest
of the world in this area. Neuromarketing brings an entirely new methodology, a new concept of thinking and a change in our way of understanding communication. I am absolutely sure that the concept of neuromarketing will dominate the field of communications, marketing and sales in the next 10 to 20 years, and we want to be leaders in this field.
- The battle for market share is increasingly fierce, and the main focus of most companies in Serbia and the region is increasingly sustaining sales levels. Marketing, advertising and promotions have key parts in achieving those goals. The basis for successful placements is timely and effective communication, along with an increasing need for more precise and individual targeting of customers, because many categories of products are losing the characteristics favourable to mass communication and promotion. Cost-efficiency is a basic demand, but primarily through the establishment of a clear link between advertising and increased sales. • The activities of media agencies worldwide play an important role in improving the efficiency of sales and the overall business of a company, hence its high rating in the economic environment. In Serbia, however, this sector is not sufficiently recognised as one of the carriers of development, nor does it have the social status it deserves. What do you think should be done to change this? - In order to improve the situation and bring about the desired changes, it is necessary to identify the problem clearly, along with key partners – customers. I also believe strongly that clients are fully aware of the fact that in circumstances of constant budget cuts and increased demands for first maintaining sales, and then making it grow, they cannot expect such results without high quality support. This negative spiral is already reflected
on the market, where campaigns are overly aggressive, too similar to one another and, as a rule, contain overly basic calls for action (such as “pork loin 499 din”), which completely trivialises communication.
tic changes that resulted in change in the audience, which, for example, prevents ratings of the electronic media in the future being viewed through the lens of analogies with the same period of previous years.
• The place of the agency in the contemporary economic environment is at the heart of media-advertiser dialogue. How do agencies carry out this role and what kinds of efforts are exerted in its implementation? - The choice of which media outlets are relevant for communication must be the result of a long-term strategy
• Budgets for advertising should be recognized as an investment, not an expense. How is it recognized in Serbia? - We encounter many positive examples. There are a large number of small companies that use their hardearned advertising budget trying to convert into a better sales tool, and the big ones that approach their advertising strategies with great enthusiasm and passion each year. A certain number of clients approach this process too routinely and with complete shallowness, which usually results in great inflexibility and almost complete rejection of innova-
DNA COMMUNICATIONS IS THE ONLY CERTIFIED NEUROMARKETING AGENCY IN THE REGION, MADE SO BY THE VERY PIONEERS IN THIS FIELD, THE WORLD'S FIRST NEUROMARKETING AGENCY, "SALES BRAIN" and plan, not inertia or the distribution according to their market share. Media development is an extremely dynamic and highly unpredictable. There has been a consolidation of the market, with media exiting traditional lines and most of them growing into media companies that offer communication with end users via several different channels (print, digital, special editions). There have also been dras-
tion and new strategic approaches. Unfortunately, there are also many of those who treat advertising as an expense, exclusivity, and accordingly they try as much as possible to reduce it. It is with this category that we usual part ways very quickly, and not because of the low budget, but rather because the approach prevents elementary partnership and cooperation. ■
CHANGE AND INTRODUCING INNOVATION The media are changing rapidly, our market is slowly opening to new methods and channels, some of which have long been mainstream in other developed markets, but there must be perseverance and vision. The clients’ needs for maximum effectiveness of advertising and for the best possible and most precise targeting of target groups are contributing to that. Digital is constantly expanding, while on the other side, BTL/Event in combination with online and social media is having a new life. If you wish to advance on any market, you
need true innovation. We recognised that potential in neuromarketing and on the basis of this model we have developed a unique methodology in accordance with the latest discoveries in the field, allowing each campaign to be a response to the real needs of end users, with the possibility of maximum testing of communication and reducing risk. In parallel we are working to educate the local market and to date we have successfully held two Neuromarketing workshops in collaboration with the world's largest Neuromarketing agency,
4 | INTERNATIONAL GERMANY 2012
“Sales Brain” from San Francisco, and one highly attended lecture at the Weekend Media Festival in Rovinj. All events sparked great interest among local and regional professionals in communications, experts in business development and top management, but also experienced marketing, PR and sales teams, which is further confirmation for us that we identified the potential well. I am proud to note that DNA Communications is the only certified neuromarketing agency in the region, made so by the very pioneers in this field, the world's first neuromarketing agency, "Sales Brain".
ADVERTISING SECTOR IN SERBIA
INTERVIEW
Think Out of the Box
Current consumption in Serbia is low, and from 1st November, with the adoption of new laws on media, limited income will be further reduced. As such, the capabilities of communication agencies are reflected in their ability to adapt to change MARIN ŠIMURINA
Managing Director, Grey Worldwide Belgrade rapid response to consumer habits. It is also extremely important to create a platform that will measure the effectiveness of sales. While that is iKomerc elsewher e in the world, in Serbia that kind of tool does not exist. Changes will only be felt after the establishing and embedding of such a platform on the local market.
N
ew business conditions – reduced budgets and the emergence of new media – forced media agencies to define their approach to the client and design campaigns in a completely different way. • The economic crisis and huge technological advancements have resulted in major changes in the functioning of the advertising, media and media agencies. What challenges await agencies in accordance with these changes?
• The place of the agency in the contemporary economic environment is at the heart of media-advertiser dialogue. How do agencies carry out this role and what kinds of efforts are exerted in its implementation? - Grey agency has been operating on the Serbian market since 1997. Our main interest lies in growing together with the client. Every type of plan, agreement, compromise and idea is conducted in the service of the progress of the business, both our own and the client’s. The core of our business is transparency and creating strong and fair relations with our clients, through creative agencies, suppliers and advertis-
BUSINESS IS CURRENTLY FOCUSED ON INTERNATIONAL CLIENTS, WHO ARE CONSCIOUS OF EVERY DINAR INVESTED, AND THEIR VERY APPROACH IS BASED ON EFFICIENCY - The main challenge for media agencies is to evaluate, to evolve from the standard perception of media buying and become communications agencies, capable of recognising the habits and needs of consum4 | INTERNATIONAL GERMANY 2012 ers. It is very important that media companies have a clear picture of their consumers, target groups: print media is lacking in this respect, digital media has the most precise information. It is crucial to create a
ADVERTISING SECTOR IN SERBIA
ers. In this chain, each element is equally important and nurturing those relations is something we insist on as a serious player. • Budgets for advertising should be recognized as an investment, not an expense. How is it recognized in Serbia? - Digital solutions have led to so-called “out of the box” thinking among agencies. Digital changes the way of thinking, strat-
egy, planning and, ultimately, changes the awareness of how a campaign should look. In this new order only those who are ready for rapid and frequent changes will survive. Business is currently focused on international clients, who are conscious of every dinar invested, and their very approach is based on efficiency. Their budgets are bigger and optimised, and our task is to further optimise them, thereby creating a new goal, and that is an investment, not an expense. Behind every media activity must stand results, i.e., the importance of every dinar invested. • What are the legal and regulatory solutions within the framework of existing and future laws that would improve the functioning of the advertising sector in Serbia? In every country where advertising is developed a Joint Industry Committee has been formed as a body that solves fundamental issues of mutual relations between clients, agencies, the media and advertisers. In Serbia this body would raise the standard and the focus would not be on laws and regulations, but rather on acts governing relationships within the industry itself. • The opportunities provided by new media in Serbia will be reflected in the schedule of the budget for advertising. How will 2015 look and what challenges await us? Increasing investment in the field of digital advertising and advertising on social networks. Budget optimisation, how much global trends can be applied on our market. Don’t receive direct orders, but rather always strive to be a step ahead of the wishes of clients. ■
ANY 2012
INTERVIEW
Exiting Crisis Through Partnership A situation where everybody fears uncertainty is certainly not good. Partnership relations, long-term cooperation, trust and joint investments in new media are the only solution for agencies and advertisers to forge a high quality partnership MILOS SIMIĆ
President of the IAA Serbian Chapter
A
dvertising budgets in Serbia are unfortunately not growing, which is only a natural response to the economic crisis. When you add to this an uncertain market situation and indistinctive economic development in the next few years, it is only natural for investment plans to stagnate. Advertising is an investment focusing on increasing revenue, strengthening a brand's market position, evoking trust in consumers and increasing the credibility of products or services. There is no progress if there are no investments in advertising. Unfortunately, the total amount of money being spent on advertising in Serbia is on the decline and last year – 2013 - was the worst year since 2006 in this regard. In the given market circumstances and considering the current atmosphere, it is very difficult to expect every advertising investment to become profitable. Traditionally, agencies have had pole position in the entire process, linking advertisers to media. Their mutual relations were based on trust, long-term cooperation and innovation. Today these relations are busy changing, which is derived directly from the current economic situation. Price has become the main argument in decisions advertisers make. In this way,
investments in developing new media professionals, which agencies have been a hotbed for over a number of years, has also become unprofitable, and that certainly isn’t good for further development and progress. I think the crucial thing to do is revert back to the time when quality of service was on a par with price. I also think that in the near future partnership will become a very important cooperation format. Solutions will come through partnership relations between all of the industry's players which, I hope, will result in better investments. The IAA (the International Advertising Association), of which I am the president, has been working hard on better defining market relations through modern regulation, the active implementation
boom of our industry worldwide. Today an increasing number of businesses are directly selling online which, it seems, has also become the most interesting advertising channel for them. The print media have found a way to overcome the crisis to a certain extent by partnering digital portals and social networks. Regardless of these new opportunities, Serbian agencies have failed to utilise digital media for advertising and to find an adequate way to be paid for the resources they spend. This primarily relates to social media networks. The agencies also didn’t fully become agents of change, but have rather
THERE IS NO PROGRESS IF THERE ARE NO INVESTMENTS IN ADVERTISING. UNFORTUNATELY, LAST YEAR – 2013 - WAS THE WORST YEAR SINCE 2006 IN THIS REGARD of self-regulation and respecting the code of ethics of this profession. Serbia is still a rather traditional media market. TV remains the most important medium by far, which is contrary to technological development and the expectations of most consumers. Digital media instigate change and take the central position in the new economic
4 | INTERNATIONAL GERMANY 2012
opted for a tried and tested method of selling to traditional media. A situation where everybody fears uncertainty is certainly not good. Partnership relations, long-term cooperation, trust and joint investments in new media are the only solution for agencies and advertisers to forge a high quality partnership. ■
ADVERTISING SECTOR IN SERBIA
INTERVIEW
Trust is Key For a successful relationship between client and agency it is essential to have greater education of all parties, mutual trust and the willingness of the client to recognise media experts as important partners who will assist them in achieving their goals SLAVICA ŠIMIĆ
Director, Media house d.o.o
D
espite the challenging economic situation and the reluctance of companies to invest in advertising, media still provide space for high-quality communication solutions to reach untapped market niches. In this work clients should rely on the professionals, who have knowledge, research and tools, for the
dia and media agencies. What challenges await agencies in accordance with these changes? - The challenges are already present. “New” media demands training and adapting to change, and “old” media are not lost, rather their effectiveness must be found in new formats. It is essential to constantly uncover new and
IN THE COMING YEARS WE CAN EXPECT A SUBSTANTIAL INCREASE IN INVESTMENT IN MOBILE ADVERTISING, BECAUSE OVER 20% OF ONLINE ACTIVITY IS CONDUCTED VIA “SMART” PHONES, WHILE LESS THAN THREE PER CENT OF THE BUDGET IS INVESTED IN THIS CHANNEL money invested in advertising to be converted into a smart investment. • The economic crisis and huge technological advancements have resulted in major changes in the functioning of the advertising, me-
creative solutions and further optimise planning. New models for leasing space, particularly in digital media, are redefining the role of the media agency, placing a focus on consultancy and research. For example, customers can easily lease advertising space directly
on Google, without the mediation of an agency, but certified experts will make a more efficient plan. • The activities of media agencies worldwide play an important role in improving the efficiency of sales and the overall business of a company, hence its high rating in the economic environment. In Serbia, however, this sector is not sufficiently recognised as one of the carriers of development, nor does it have the social status it deserves. What do you think should be done to change this? - It is essential to have greater education of all parties and trust in Agency – Client relations. It is necessary to share confidential information regarding the overall business of clients, and not just that part relating to our job. Clients should be recognised
PROFESSIONALS IN FOCUS clients and associates of agency Media House: ANDREAS WEISS
Dentsu Aegis Network
MediaHouse and Carat have worked together successfully since 2005 – so we are getting close to our 10-year anniversary! Carat has always enjoyed the local market knowledge and pragmatic, as well as professional, approach of Media House in working
together. Paired with our international expertise and Carat´s digital focus, we will focus on quality, efficiency and transparency on the market. ALEKSANDAR POZNANIĆ Jaffa DOO Crvenka:
The dedication with which Media House realises projects, and
4 | INTERNATIONAL GERMANY 2012 ADVERTISING SECTOR IN SERBIA
their sincere attachment to the brands they work for, are something that can be found increasingly rarely in the business environment. As with any house, the foundation is a key element of stability, and in the case of Media House that is definitely Slavica, with her energy, ethics and
rational approach to everyday challenges. NENAD LJUBISAVLJEVIĆ Serbia Bolton Group
A house that knows what it’s doing! MARIJA KARAN TV Prva
If I had the opportunity to put together the next
government I would suggest Slavica as prime minister, because I am sure that, with her team, she’d work honestly to fulfil that which was promised and on the realisation of the goal for all of us. I have been taught that by ten years of experience working with them.
us as important partners who will assist them in achieving their goals. With our clients we have achieved a high degree of trust and partnership relations in which the responsibility for successes and failures is shared. • The place of the agency in the contemporary economic environment is at the heart of media-advertiser dialogue. How do agencies carry out this role and what kinds of efforts are exerted in its implementation? - An agency should have a consulting role on both sides. When it comes to the relationship with the client, the agency has long played a role – based on knowledge, available research and tools – in creating the best communication solutions for its clients. But an agency also needs to play that role towards the media companies and, through transparent communication on the quality and efficiency of services in their offers, advise them on untapped market potential.
desired activities, we can see exactly how much return on an investment there is. If the Client primarily considers itself a trader, and the agency’s aim is just to spend a given budget, then the client will certainly view that investment as an expense. Investing in advertising always carries some risk, and we understand why custom-
• The opportunities provided by new media in Serbia will be reflected in the schedule of the budget for advertising. How will 2015 look and what challenges await us? - Without drastic changes in the structure of investments in 2015, the trend of growth of digital media through all forms of communication will continue, while television will continue to maintain its share above 50%. In the
E-COMMERCE IS NOT SUFFICIENTLY DEVELOPED IN SERBIA AND THERE IS HUGE ROOM FOR IMPROVEMENT, BECAUSE DIGITAL CAMPAIGNS CAN LEAD TO DIRECT SALES OF PRODUCTS AND SERVICES VIA THE INTERNET
• Budgets for advertising should be recognized as an investment, not an expense. How is it recognized in Serbia? - Perhaps through the digital segment it is easiest to understand that investing in advertising is an investment and not an expense. Today we can monitor how many people visited a site, how much and in what they reacted emotionally, whether they filled out a request for more information or eventually purchased a product or service. By introducing the relation between the invested advertising budget and TIJANA BABIĆ
MEGGLE Srbija d.o.o
Professional, Responsible, Precise, Dedicated IVANA TIMOTIJEVIĆ Atlantik Group
Sports and cars are my association with Slavica, which tells me that she recognises the importance of team and speed, which is very important in this business. I'm not
processes, in order to ensure the legal regulations do not hinder the processes and business development. For example, e-commerce is not sufficiently developed in Serbia and there is huge room for improvement, because digital campaigns can lead to direct sales of products and services via the internet.
surprised by the partnership relations, responsibility, reliability, or practicality that characterises Slavica and her team. You feel safe, unburdened, and they know what they are doing. SANJA BUMARIJANA ZONIĆ Oriflame
We have cooperated successfully with the team of
4 | INTERNATIONAL GERMANY 2012
ers are reluctant to apply some of our suggestions and solutions, but it often occurs that after a small-scale test campaign the client opts to increase the level of activity, encouraged by the results achieved. • What are the legal and regulatory solutions within the framework of existing and future laws that would improve the functioning of the advertising sector in Serbia? - Considering the dynamics of change in this sector, it is essential for lawmakers to constantly monitor these Media House for 11 years. Our successful cooperation is the result of deep understanding and joint work. The best results are achieved when the client and agency comprise a unique team dedicated to the same goal. In our case the professionals from the agency are more than associates, they are full support, given that they are familiar with the movement
coming years we can expect a substantial increase in investment in mobile advertising, because over 20% of online activity is conducted via “smart” phones, while less than three per cent of the budget is invested in this channel. New, more sophisticated tools are expected for measuring, for media buying, as well as new advertising formats. As an important example, we can also mention video advertising on YouTube which, in just the six months it has existed, has already had a significant impact on advertising in Serbia and the region. ■
and development of our business. Beside the fact that they have good knowledge of the Serbian market, we are also delighted with the creative side that is offered to us at each meeting, and we’re absolutely certain that we will get the highest quality service that includes the application of the latest technology when it comes to the media market.
RGIC
DPC Multivision
All that the same, but if you could do it a bit differently!” A thirst for variations that never fades away! AS-MEDIA Cooperation with them is enjoyment, because everything is so quickly and easily agreed – it flows like a song!
ADVERTISING SECTOR IN SERBIA
INTERVIEW
Companies should understand that their continuous media presence supports the achieving of their business objectives. All the more so because practice has shown that reducing the budget for advertising, and thus reducing media presence, results in falling sales of products or services
Synergy of Knowledge and Expertise BRANISLAVA CAGRONOV Managing Director, Media Jobs
G
lobal financial crisis affected media market all around the world, so, also in Serbia, we are all faced with reduced advertising budgets. Media Agencies are reliable partners on the media market in all circumstances. • The economic crisis and huge technological advancements have
the region, has been stagnating recently after several years of growth, which is a consequence of the global financial crisis. Companies are attempting to reduce costs and the first area targeted is advertising budget. However, it is extremely important to maintain a level of visibility in the media. Practice has shown that reducing advertising budgets, and thus media
WE KNOW THE HABITS OF CONSUMERS AND THE MEDIA EXTREMELY WELL, SO WE ARE ABLE TO ASSESS HOW THE COMPANIES WE WORK WITH CAN ACHIEVE THE GREATEST BENEFITS IN PROPORTION TO THEIR ENVISAGED BUDGET resulted in major changes in the functioning of the advertising, media and media agencies. What challenges await agencies in accordance with these changes? - The Serbian media market, like in other countries, especially those in
ADVERTISING SECTOR IN SERBIA
presence, results in a decline in sales of products or services. • The activities of media agencies worldwide play an important role in improving the efficiency of sales and the overall business of
a company, hence its high rating in the economic environment. In Serbia, however, this sector is not sufficiently recognised as one of the carriers of development, nor does it have the social status it deserves. What do you think should be done to change this? - A large number of media agencies operate on our market. Media Jobs is a local company that operates within the group Lowe & Friends, giving it access to new knowledge and experiences from other markets. We know the habits of consumers and the media extremely well, so we are able to assess how the companies we work with can achieve the greatest benefits in proportion to their envisaged budget. In our work we use the state of the art tools and local expertise, in synergy with years of experience. Prior to arriving at Media Jobs many of our colleagues gained experi-
ence in international companies and research houses, which has also contributed to us properly understanding the needs of our partners. • The place of the agency in the contemporary economic environment is at the heart of media-advertiser dialogue. How do agencies carry out this role and what kinds of efforts are exerted in its implementation? - Media Jobs cooperates with partners from different fields, from telecommunications, via retail, to banking services, and we are pleased that our partners understand the need for a continuous media presence, as support to the realising of their business goals. The media planning process and negotiating with media companies entails a comprehensive and complex process that companies planning to advertise often do not have the resources for. Media agencies possess those resources, professional skills and experience. In their work, our media experts use research which helps them to come to the knowledge
and, in accordance with the defined target groups, they carefully plan the media presence of their clients and their brands, products or services. In that way the agency secures for its clients the most significant market presence with the least funds invested. In addition to advertisers, media agencies are also inexcludable partners of media companies themselves on the media market all over the world.
IT IS ESSENTIAL THAT ALL LAWS REGULATING THE FIELD OF ADVERTISING IN ANY ASPECT, SUCH AS, FOR EXAMPLE, THE LAW ON MEDICINAL PRODUCTS AND MEDICAL AID DEVICES, THE CONSUMER PROTECTION ACT, LAWS GOVERNING TRADE OF FOOD PRODUCTS AND OTHERS, MUST BE MUTUALLY HARMONISED AND, OF COURSE, COMPLIANT WITH THE LAW ON ADVERTISING of consumers, as well as all the necessary tools for strategic planning and budget optimisation. Using this research and these tools requires huge investments. When we take into account all of the above, the most rational solution for a company is to engage specialised media agencies, which are the only ones to have all the necessary resources. • Budgets for advertising should be recognized as an investment, not an expense. How is it recognized in Serbia? - Agencies analyse the habits of end users in the consumption of media
4 | INTERNATIONAL GERMANY 2012
• What are the legal and regulatory solutions within the framework of existing and future laws that would improve the functioning of the advertising sector in Serbia? - When it comes to the media market and its regulations in Serbia, it is essential for advertising to be regulated as clearly as possible by legal regulations. We have a valid Law on Advertising, but in some aspects it is still unclear and requires improving and modernising. The new Law on Electronic Media also recently came into force and is harmonised with the EU Directive on audio-visual media services, which is also of great
importance to our business. However, the problem is the incompatibility of legislation that regulates this area and their common contradictions, which result in different interpretations. It is essential that all laws regulating the field of advertising in any aspect, such as, for example, the Law on Medicinal Products and Medical Aid Devices, the Consumer Protection Act, laws governing trade of food products and others, must be mutually harmonised and, of course, compliant with the Law on Advertising. It is also necessary for jurisdiction to be clearly divided, in order to be able to create a clear framework for the operations of all media market participants. • The opportunities provided by new media in Serbia will be reflected in the schedule of the budget for advertising. How will 2015 look and what challenges await us? - The crisis prompted us to adapt to current circumstances and find adequate solutions to the problems we are facing. In recent years we have witnessed online media constantly recording growth and influence. This brought changes in the business of advertisers, media companies and media agencies themselves. We also expect the growth of mobile advertising (advertising aimed at mobile phone users). Global online media companies, such as Google, Facebook, YouTube and others, will further improve the targeting and optimisation of campaigns. That’s a challenge, but also provides great potential for the media industry. Media Jobs is an agency that monitors all global trends and applies them to our market. In this way we improve our operations and provide new opportunities for our clients’ advertising. ■ CONTACT: MEDIA.JOBS Tel: +381 11 6556 800 Mail: office@mediajobs.rs Airport City Belgrade Omladinskih brigada 90v/VIII 11070 New Belgrade, Serbia
ADVERTISING SECTOR IN SERBIA
INTERVIEW
MIROSLAV ŠUTIĆ Director, Partner Research Solutions
Advertising (Does) Not Multiply Economic Development Fifty experienced marketing specialists would completely change the image of the national market and national products at the global level in just a year. However, both businesses and the state are short-sighted when it comes to this and have no courage to accept it
T
here is an old dilemma between whether advertising realistically increases spending and capital turnover or is just a necessary evil used by manufacturers to attract consumers who are being inundated by piles of useful/useless products. Of course, this is an artificially created dilemma.
consumers (information-persuasionseduction) has been going on for over a century, as long as mass production. An increasing number of products have been trying to win over a relatively limited consumer space (budget). In most cases, and in order to accomplish this rather unattainable goal, manufacturers have had to choose
A NEW GENERATION OF BUSINESSMEN, WHO SEE CAPITALISM AS A SYMBOL OF ABSOLUTE POWER IN THEIR 'BACKYARD', ARE NOT EVEN AWARE THAT THE ONLY REAL SOURCE OF (LONG-LASTING) POWER IS A SATISFIED CONSUMER WHO RETURNS FOR ANOTHER PURCHASE Why do chicken eggs sell much one of three basic combinations or better than duck eggs? Because strategies: high quality and/or affordable price and/or good presentation. whenever a hen lays an egg she announces it with a cackle. In cases where consumers were 4 | INTERNATIONAL GERMANY 2012 Active communication with forced to dig deep into their secret
ADVERTISING SECTOR IN SERBIA
savings or break their piggy banks, high quality is a given. So is efficient communication, which underlines all real benefits for consumers with an addition of the exceptional “pleasure” they will derive from making the right choice. Communicators are competing to see who is going to have a more creative presentation and not who is going to imagine the advantages of one product over another. However, when pockets are empty, low price becomes the most important argument, while product quality and its comparative advantages are only virtual issues. Still, active communication with the consumer remains the common denominator in both situations. This thesis is proven by the situation in the Serbian advertising industry, which achieved an annual turnover
of around €100 million several years ago and is showing no signs of being left defeated. The infamous 2008 financial crisis had the least effect on the advertising industry. The growth of this sector did slow down, but it never stopped thanks to two factors which are objective and subjective. The first factor is a continuation of the story about 'cackling hens'. Regardless of the reduced purchasing power and lower prices (and lower quality), supply still outweighs demand and each product needs to be pushed as much as possible in order to entice consumers to reach into their wallets. The communication is probably not so flattering any more, with aggressive advertising pushing out the sophisticated model and the quantity of media pressure over-
development? The weak influence of top marketing (and advertising) professionals is a result of extremely undeveloped entrepreneurial spirit on the whole. A new generation of businessmen, who see capitalism as a symbol of
OUR BIGGEST CAPITAL – CREATIVITY, INNOVATION, VISION, RESOURCEFULNESS, COURAGE, GOOD COMMUNICATION SKILLS AND UNDERSTANDING OF MODERN MARKET RELATIONS – HAS BEEN TRAPPED ALL THESE YEARS shadowing the quality. Nevertheless, it seems that advertising has never been stronger than it is now. The subjective factor, which should be credited for the resilience of the advertising industry during the time of general recession, comprises pronounced creativity, excellent craftsmanship, exceptional ability to cope and quick adaptation to the new business environment. All of this is applicable to the Serbian advertising industry too, not only during the past decade, but the past two decades. Our advertising agencies are on an equal footing with the biggest global advertising players and, for a number of years, they have been the hotbed of advertising talent in the entire region (and wider). Their victories at various advertising festivals have almost become routine. We could even say that the potential of our advertising industry far exceeds the level of development of our market economy. So, why is it that this potential doesn't emerge at the forefront even more and have a more significant impact on economic
4 | INTERNATIONAL GERMANY 2012
absolute power in their 'backyard', are not even aware that the only real source of (long-lasting) power is a satisfied consumer who returns for another purchase. A satisfied consumer demands (to a certain extent) a fair supply and careful communication. Just think back to all futile attempts of advertising Serbia or its products abroad through raising national awareness. The commissions placed in charge of doing this comprised eminent and renowned people from music, artists, businessmen,
professors of economics, doctors and state representatives who didn't have a clue about communication or 'seduction' skills, the whole purpose of which was to change awareness and behaviour. There were no professional communicators or masters
of a new skill of shaping (functional) behaviour in sight. Marketing was and still is an untapped opportunity for repositioning companies and products on both the domestic and global markets. The economy is the one segment that really needs new ideas, new strategies, new skills, new markets and new consumers. The economy is not able to tackle this problem by itself, since it is drowning in old-fashioned or immature notions of contemporary market behaviour. Fifty experienced marketing specialists would completely change the image of the national market and national products at the global level in just a year. No 50 businessmen or 50 state officials are able to accomplish this, regardless of how powerful they might be. Our biggest capital – creativity, innovation, vision, resourcefulness, courage, good communication skills and understanding of modern market relations – has been trapped all these years. Both the businesses and the state are short-sighted when it comes to this and have no courage to accept it. Today's version of the old saying “a bird in the hand is worth two in the bush” could well read “no bird in the hand and I certainly don't want two in the bush”. ■
ADVERTISING SECTOR IN SERBIA
INTERVIEW
Time is the New Currency
Media agencies are increasingly faced with two challenges: one is a limited budget for advertising and other is limited time in which to carry out a campaign. Real time planning has become inevitable, not only in so-called new media, but also in those we call traditional media VIOLETA GRUBIŠIĆ
Managing Director, MEDIAPOINT
T
he challenges that media campaigns will confront in the next year are related to the continuation of the crisis and balancing client-media relations in these circumstances. However, many years of experience teaches us that the client will always find the money for a good and original idea.
• The place of the agency in the contemporary economic environment is at the heart of media-advertiser dialogue. How do agencies carry out this role and what kinds of efforts are exerted in its implementation? - I think it is primarily important to answer all strategically important issues for the realisation of the determined goals of marketing clients. We
best reach their target audience and, in addition to that, develop content that both the media and the client will be satisfied with – the media company because it will thus increase the quality of its own content and the client because that content will attract the target group in the right way. Contemporary economic conditions at this moment are such that reducing advertising budgets is a mass phenomenon. However, most clients will gladly accept innovation, provided that means reducing, or at least not drastically increasing, costs and provided it does not deviate from the company’s corporate identity. On the other hand, there are clients who are always looking for something that has never been seen before, where the task of agencies is to create, with the help of new technologies, something that does not already exist in the world of advertising.
AN EXPERIENCED TEAM, WITH KNOWLEDGE AND EXPERIENCE IN ALL MAJOR MARKET CATEGORIES, ALLOWS US TO RECOGNISE THINGS ON TIME AND WORK TOGETHER WITH OUR CLIENTS PROACTIVELY are one of the links in this process, but with the globalisation of media the digitization process and lifestyle changes, the role of the media agency receives additional complexity and importance. We are the ones who will find for 4 |the INTERNATIONAL GERMANY client the right place, right time 2012 and right intensity of advertising in the right media, which will enable them to
ADVERTISING SECTOR IN SERBIA
• Budgets for advertising should be recognized as an investment, not an expense. How is it recognized in Serbia? - Advertising as an investment is largely recognised among the greatest number of clients. However, time is also viewed as the new currency. We are often confronted by two challenges: a limited budget, but also lim-
ited time in which everything should be realised. Real time planning has become inevitable, not only in socalled new media, but rather also in those that we call traditional media. The advantage of Media Point is in the fact that it is able to respond flexibly and quickly with the aim of achieving the best possible Returnon-Investment for the client. An experienced team, with knowledge and experience in all major market categories, as well as experience working on the side of the advertiser, allows us to recognise things on time and work together with our clients proactively. • The opportunities provided by new media in Serbia will be reflected in the schedule of the budget for advertising. How will 2015 look and what challenges await us? - New media actually aren’t that new anymore. We increasingly witness companies directing their campaigns towards Facebook, Twitter and mobile applications. The development of these media brings with it many advantages, such as precise targeting of the target group and the possibility of finding a more precise niche. However, regardless of the growth of this type of advertising, relatively small budgets will continue to be allocated for this aspect. Most of the challenges we will face in the next year will be related to the continuation of the crisis and balancing client-media relations under these conditions. ■
INTERVIEW
In Step With Changes Agency Media S SMVG has spent many years investing in the development of the digital sector, from community management to performance marketing, which is becoming an increasingly important advertising segment in Serbia BRANKA MALETIĆ
CEO & Regional Manager Media S SMVG
R
egardless of the fact that technological changes are overdue in comparison with the UK and the U.S., our market is adjusting by developing services essential to serving the client. Agency Media S SMVG has spent many years investing in the development of the digital sector, from community management to performance marketing. Although there is now more and more talk about internetbased advertising, we have been doing digital campaigns for our clients since 2009 and the percentage of the agency’s total turnover in digital media (social, display, google etc.) has been growing rapidly over the years. The growth of digital advertising budgets in CEE in 2013 was 21% year-on-year, while during the same period in Serbia it was 13%, according to IAB statistics. It is interesting that now there is increasing talk about predictions for digital advertising on digital portals in 2015, while next year our market expects equal or reduced growth compared to the previous year – of 10 to 13 per cent. Growth is expected in video advertising, mobile phone advertising, Google and social networks (Facebook and Twitter), while display advertising stagnates. TV remains the dominant medium on our markets, with the fastest ANY 2012 building of reach and awareness, and there is a big question of how to measure the combined reach of all video formats, because they are not
now only a privilege of TV, but rather also internet portals and YouTube. Media S SMVG Agency has started to apply ISP (integrated screen planning), which is one of the key elements in increasing the efficiency of video campaigns. Depending on the market and target groups (younger or older), if we placed 85-90% of the total budget on TV, and the rest on internet-video format, we get 3-5% higher overall reach of the campaign. In developed countries, like the UK, U.S., Norway etc. this percentage is even higher. These are data for the FMCG category, which means that for technology or auto categories they could be even higher.
THE ONLY THING THAT HAS NOT CHANGED IN OUR WORK SINCE THE BIRTH OF ADVERTISING IS CONSTANT CHANGE Conversion is another important element for measuring the efficiency of a campaign, the relation between the amount invested in advertising and what is gained (sales, orders etc.). Here we are lagging behind the developed markets that have systems for measuring conversion and for media companies that are not developed for performance marketing. All these tools and research are expensive and for our clients that would be a serious additional expense to the overall cost of the campaign,
4 | INTERNATIONAL GERMANY 2012
where the profitability of measurement itself comes into question. Media agencies desks are occupied by “maths men”, a term increasingly used in the media, and for us numbers indicate the effectiveness of campaigns. Technological development and developed internet analytics media, as well as consumer behaviour on them, led to the conclusion that it is not enough to merely reach consumers through proper targeting, but rather it is also necessary to motivate consumers. That means the Content that should represent the organic growth of an agency. The role of media agencies overlaps with the creative agencies, where we produce high quality content that must be original and make sense to the consumers who will consume it. The only thing that has not changed in our work since the birth of advertising is constant change. Due to the aforementioned technological changes and economic crisis, agencies change. That is not a simple process and for this reason we have launched various seminars within the auspices of the agency that provide our people with the opportunity to develop with the demands of the market. ■
ADVERTISING SECTOR IN SERBIA
MEDIA: ABC COMBINED CIRCULATION
A Step in the Right Direction In a move already dubbed a “new dawn” for the print industry, the Serbian Audit Bureau of Circulations, a member of the global IFABC, has started combining print and digital sales figures into a single audited figure for the first time in its eight years of operating
P
ublishers now have a single, audited, trusted figure to take to advertisers that represents both print circulation and growing sales of digital editions. This merging measure is certainly a step in the right direction. ABC Serbia has accelerated its decision to join the rest of the world in creating a transparent environment within the Serbian media industry. The question that still remains is how deep the divide is in Serbia in terms of transparently conducted media business - between media own-
growing fast, but not as fast as everyone expected. Forecasts suggest there will be no extreme changes in the advertising market in the year ahead. We can expect further growth of internet advertising, while television will continue to hold its market share of almost 50% strongly. What is the future of the Serbian print industry? This depends on how soon publishers recognise the importance of transformation from a publishing firm to a global media company, with the introduction of new forms, formats, platforms and channels of communication.
THE QUESTION THAT STILL REMAINS IS HOW DEEP THE DIVIDE IS IN SERBIA IN TERMS OF TRANSPARENTLY CONDUCTED MEDIA BUSINESS - BETWEEN MEDIA OWNERS AND ADVERTISERS, WHO SHOULD HAVE A CLEAR PICTURE OF THE MEDIA IN WHICH THEY ARE INVESTING ers and advertisers, who should have a clear picture of the media in which they are investing. But is the industry moving fast enough to produce better metrics? With the economic crisis, the Serbian media market has faced falling advertising spending and over the previous five years total annual advertising revenue ranged from €155 up to €175 million. Spending through different communication channels has remained largely unchanged: TV is on top, while print is in constant decline, internet revenues are
ADVERTISING SECTOR IN SERBIA
The new laws on electronic media and public service media were adopted in August. Superseding legislation that was more than a decade old, the new laws introduce some significant changes, either as a result of harmonisation with the European regulatory framework or by addressing specificities of the Serbian media market. What will happen in the next few years depends greatly on the rearranging of the media industry and the pace of economic progress, as well as the capacity of the industry to carry out
reconstruction and catch up with technological developments and modern regulatory practices. In the meantime, but more than ever, the Serbian media market needs transparent measurement systems that are designed to adapt to the increasingly diversified media landscape, focused on transparency and enabling the media, marketing and advertising sectors to gain greater insights and control over their audience data. ABC remains firmly entrenched as the print media industry's chief bean counter. ABC and all other such measurement systems are made to improve advertiser efficiency and profit. Only then can media owners or media agencies expect to receive higher advertising budgets as recognition. As long as advertisers feel the benefits of advertising through a higher return on investment due to successful media campaigns they will continue to push and increase budgets. At this stage advertisers are generally confused by various measurement tools and methods, publishers’ claims about millions of copies sold and being a high quality vehicle for the promotion of their products and services. The future role of the Audit Bureau of Circulations will be the same as that of its very first day: • Bring the industry together to agree on measurement processes that define what counts and to determine best practices. • Offer independent audit and compliance services, delivering certification that verifies data • Inspire confidence in the market by delivering a valued stamp of trust across the media world. ■ ABC, governed by the industry, for the industry
INTERVIEW
Ride the Wind
The future of media and marketing will belong to those who are able to process a large amount of information, to shape it with meaningful logic and create content that the client will profit from in a world where consumers are changing rapidly MARKO KOSOVAC
Managing Director, Plus Media
T
oday's changes are so rapid that in such circumstances the only ones who can find their feet are those who are willing to adapt accordingly and who manage to cope in the competition of an ocean of online content and create an authentic product for their clients. This approach is called adaptive marketing and it has been embraced by one of the world’s biggest media agencies, Mindshare, of which Plus Media is a member.
ing. Simultaneously, this is also the vision of one of the world’s biggest media agencies – Mindshare – of which Plus Media is a proud member. • The activities of media agencies worldwide play an important role in improving the efficiency of sales and the overall business of a company, hence its high rating in the economic environment. In Serbia, however, this sector is not sufficiently recognised as one of the carriers of development, nor does it have the social status it deserves. What do you think should be done to change this?
a media agency and in the field of innovation in media companies themselves. • The opportunities provided by new media in Serbia will be reflected in the schedule of the budget for advertising. How will 2015 look and what challenges await us? - The domestic market is trying to keep pace with developed markets. However, this level is still lower. It is primarily for this reason that I believe the general picture of the market will not change drastically in 2015 compared to the previous year. Television will continue to be the dominant channel
• The economic crisis and huge technological advancements have resulted in major changes in the functioning of the advertising, media and media agencies. What challenges PLUS MEDIA, AS PART OF THE MINDSHARE SYSTEM, HAS A await agencies in accordance with COMPARATIVE ADVANTAGE ON THE SERBIAN MARKET BECAUSE IT these changes? IS UP TO DATE WITH THE LATEST MEDIA INDUSTRY TRENDS - Today media, consumption of media and forms of advertising in new media - The advertising market in Serbia can are changing, we can say every day. The of communication, although it is a fact still be considered a young market in impact of digital media on society in that room exists for the further development of online media. However, this this area. I consider constant training, general is huge and ultimately delivers will primarily depend on investment in of employees in media agencies and what no traditional media ever even online media and the ordering of the the clients themselves, is the first came close to hinting at – for each general situation on the market. criterion that must be fulfilled in order person to be a source of information, Our task is to monitor the latest for the market to improve and develop or it is a type of media that led to the trends in the field of media on a daily further. I believe that from the moment emergence of new advertising goals, basis and recognise those that we we are able to follow the developa person whose words are considered ment of the global market to a greater can use effectively in our clients’ caminfluential in a digital world. paigns. The advantage of Plus Media extent, the work of media agencies The future of media and marketing is certainly the fact that we are part of will also be recognised as a carrier of will belong to those who are able to Mindshare’s worldwide network and development to a greater extent. process a large amount of information, because of that we have easy and swift Plus Media, as part of the Mindarrange it in such a way that it has a 4 | INTERNATIONAL share 2012 system, is fortunate and has a access to a huge number of ideas, data logical meaning and use it to create GERMANY comparative advantage on the Serbian and technology from around the world activity that the client will generate a market to keep up to date with the latthat we can apply on the local market profit from in a world where consumer est trends in the media industry, both in the new media domain. ■ awareness is also changing fast. Such from the position of the operations of www.plusmedia.rs an approach is called adaptive market-
4 | INTERNATIONAL GERMANY 2012
ADVERTISING SECTOR IN SERBIA
INTERVIEW
Optimisation at all Levels
The crisis has prompted companies to view the countries of the former Yugoslavia as a single market of similar habits and purchasing power. Universal Media has responded to such needs of its partners with an integrated regional service that encompasses multiple markets BILJANA KOLAKOVIĆ
Regional Managing Director, Universal Media
A
s one of the leading media agencies in Serbia and the region, the first signs of the crisis prompted Universal Media to develop a long-term strategy enabling optimisation at all levels. Along with its clients, who decided that in crisis conditions they should view the countries of the former Yugoslavia, along with Bulgaria and Albania, as a single market of nearly 30 million people who are economically even, with similar habits, purchasing power, cultural connections and with an offer of similar brands, Universal Media offered to its partners an in-
with these changes? - Technological advances contributed to the automation of work processes, which ultimately leads to time savings and better use of human resources, as well as better control of the effect and results of operations. Long-term growth requires continually investing in people, education, data, i.e., understanding consumers, media and trends. Our partners recognise that media planning is a strategic process that involves the possession of knowledge, tools and data, coupled with the implementation of media
UNIVERSAL MEDIA OFFERS ITS REGIONAL PARTNERS AN INTEGRATED SERVICE THAT ENABLES THEM TO HAVE A CLEARER OVERVIEW OF OVERALL MEDIA ACTIVITIES, SAVE TIME, HAVE GREATER CONTROL OVER THE ENTIRE PROCESS AND BETTER CONDITIONS FOR ADVERTISING tegrated regional service that allows them to clearly perceive overall media activities, saving time, having greater control over the entire process and better conditions for advertising. • The economic crisis and huge technological advancements have resulted in major changes in the functioning of the advertising, media and media agencies. What challenges await agencies in accordance
4 | INTERNATIONAL GERMANY 2012 ADVERTISING SECTOR IN SERBIA
activities that result in sales growth and savings through optimisation of the media, or so-called smart planning. All this helps us to look at the link between investment in media and achieved results in sales, which is crucial in times of crisis. We are witnessing a change in the media sphere, the appearance of regional media, as well as those that develop on different platforms, and we cooperate with all of them.
• The activities of media agencies worldwide play an important role in improving the efficiency of sales and the overall business of a company, hence its high rating in the economic environment. In Serbia, however, this sector is not sufficiently recognised as one of the carriers of development, nor does it have the social status it deserves. What do you think should be done to change this? - Long-term cooperation with the largest international, regional and local companies, as well as constant expansion of cooperation, are proof that media agencies play an important role for companies, especially those in the FMCG sector. We recently started cooperation with very important clients, where our task is very complex and, in addition to media strategy work, includes coordination for as many as 15 countries. The best example of how the media agency is a key factor in the life of a brand is the “Share a Coke” campaign, which won us the Grand Prix at the SEMPL Media Festival in Portorož. Unfortunately, some still see media agencies as “resellers”. The reason is that there is still a relatively small market and needs of companies, and it is much easier to simplify process of strategic media planning and buying
and say that media agencies are “resellers” than to understand or learn about all the specifics of this complex practice. So it’s not like we blame others, but the agencies themselves are responsible because we have to work harder on education of clients, media, consulting companies, ministries, various associations and, ultimately, the general public. Through various initiatives and activities we strive to build the image of the profession: through the education of students, practical programmes, publishing professional articles, participating in panel discussions. There is also a problem that cooperation between media agencies is, unfortunately, at a “very shy level”. I have the impression that we have not agreed among ourselves that we are all doing a responsible job that requires extensive knowledge and experience. Once we have succeeded in doing that, we will find it easier to present the entire profession. • The place of the agency in the contemporary economic environment is at the heart of media-advertiser dialogue. How do agencies carry out this role and what kinds of efforts are exerted in its implementation? - We have been on the Serbian market for 17 years already and we nurture good relations with all partners.We openly discuss with media the needs of our clients and we clearly communicate what the key parameters will be in the creation of a media mix. With clients we set clear communication objectives for the coming year for their brands, with defined parameters of success and monitoring these brands, which is often also followed by an independent auditor. There are media parameters of the success of a campaign, but also parameters of success of the brand in communicating with customers and business parameters, sales, market share growth. In that sense our task is to cooperate with media outlets that will achieve the goals of our clients in the quickest and most efficient way.
- A positive trend exists and there are a growing number of companies with a clear view that an advertising budget is an investment, but there are some companies where marketing colleagues are seen as those who “spend”. It is up to the top people in each company to clearly communicate the goals and everything that is required to achieve them. We are exposed to a large amount of products and services and in order for your product to find its way to consumers it is necessary to communicate the key benefits in order for the consumer to have a clear reason to opt precisely for your offer. That’s why investing in communication is very important, it’s not an expense at all, it is only the final step in the total investment of creating a product.
THE BEST EXAMPLE OF HOW THE MEDIA AGENCY IS A KEY FACTOR IN THE LIFE OF A BRAND IS THE “SHARE A COKE” CAMPAIGN, WHICH WON US THE GRAND PRIX AT THE SEMPL MEDIA FESTIVAL IN PORTOROŽ
• Budgets for advertising should be recognized as an investment, not an expense. How is it recognized in Serbia?
4 | INTERNATIONAL GERMANY 2012
• What are the legal and regulatory solutions within the framework of existing and future laws that would improve the functioning of the advertising sector in Serbia? - In addition to new laws that are already active, it is essential to introduce clear bylaws (especially for the Law on Electronic Media). We also need a new law on advertising, which would be harmonised with the latest developments and would take into account the experiences of other countries. It must be clear, efficient and, first and foremost, effective. Harmonised with
it there need to be all specific laws and regulations governing advertising in the business of other industries. In that way we will not have the legal gaps, which then create the possibility of different understanding and interpretations. It is also necessary to organise the profession more seriously and actively engage in self-regulation in the process of managing operations. The Codex is already written, the process of organising a selfregulatory body that would monitor the implementation of the Codex is underway and in order for all of this to function it is essential that self-regulation is legally recognised. Through membership in, and activity with, the IAA, we are actively engaged in these processes. One of the most important postulates of our work is to improve the quality of operations on the market and to strive for its management with a view to the models of other more developed markets where Universal Media operates. • The opportunities provided by new media in Serbia will be reflected in the schedule of the budget for advertising. How will 2015 look and what challenges await us? - Less local, more global. That is an unstoppable trend. The method of leasing on digital media has completely changed the working methods of media agencies. For me, as someone who started working in this industry 15 years ago, Real Time Biding is something that inspires adoration. All “players” will have to adapt to new trends, agencies primarily, followed by media companies and advertisers. I was sceptical a few years ago when we had discussions on this topic with our global agency Cadreon, because some global trends in some cases simply do not come to life in our country. However, the results of campaigns speak for themselves. We succeed, through the process of “finest” targeting, with the maximum optimisation of investment, deliver for our partners much better results and cheaper conversions, around which everything revolves in a digital world. ■ CONTACT: www.universalmedia.rs
ADVERTISING SECTOR IN SERBIA
INTERVIEW
The Skill of Understanding Challenges
We cannot expect greater investment in online advertising until we have better quality harmonisation between databases on consumer players on the market LARISA ZDRAVKOVIĆ Client Service Director, Zenith Optimedia Adriatic
T
he greatest challenge of modern marketing is to understand the nature of rapid technological change and utilising these changes for the benefit of brands. In our case, we must be realistic and say that we are still in favour of advertising in traditional media and that the share of online advertising, although on the rise, is slightly exaggerated at this point.
• The economic crisis and huge technological advancements have resulted in major changes in the functioning of the advertising, media and media agencies. What challenges await agencies in accordance with these changes? - During 2009 the Serbian media experienced a significant decline in revenue from advertising and it will take time to recoup that. On the other hand, during the same period we faced major technological changes. One of them is the internet, the development of which represents a new source of human imagination and, thus, awareness of products and ways to connect consumers with them. The level of these changes is dramatic and will continue in the coming years. Exploiting all of this in the sense of benefits for brands represents a major challenge to modern marketing.
- By analysing the development of internet advertising in Central and Eastern Europe we see that there is growth, but in the last 10 years the share in advertising has not exceeded 20%. On the Serbian market, as well as the entire Adriatic, the situation is similar. Thus, online advertising is growing steadily, although I would say that the significance of this trend in the last three years exaggerated. I think that media agencies have an obligation to the real perception of the market and in this sense we should appreciate the fact that we are still in favour of advertising in traditional media. Here exists a very clear explanation which concerns the quality of the databases that we have on, for example, television, as well as the print media, which is much more detailed than those offered by digital advertising. This
2015 WILL BE EQUALLY AS CHALLENGING AS THE PREVIOUS YEARS, BUT THAT’S WHAT THE BEAUTY OF OUR WORK IS MADE OF gives us the possibility of Live tracking campaigns, but also many other features related to so-called Owned and Earned media. However, the lack of quality harmonisation on a common database on consumption players on the market with which we could better monitor development and online advertising.
• Today the importance of digital media is at the top of the agenda for most, while at the same the death of traditional me• Budgets for advertising should be rec4 | INTERNATIONAL GERMANY 2012 dia is predicted. How would you comment ognized as an investment, not an expense. on this? How is it recognized in Serbia?
ADVERTISING SECTOR IN SERBIA
- I believe that today every serious advertiser recognises advertising as an investment. As such, back in 2003 Zenith Optimedia developed the concept of ROI (Return of Investment) as the most relevant concept of understanding the needs of advertisers, and that is monitoring their return on investment by ensuring its optimisation. Today Live ROI is one of the most powerful concepts in the sphere of operations of global media agencies that we have successfully applied on 79 markets, including the markets of Serbia and the entire Adriatic region. • The opportunities provided by new media in Serbia will be reflected in the schedule of the budget for advertising. How will 2015 look and what challenges await us? - First and foremost, I do not think investments in new media will increase significantly in the coming year. For this to happen it would require the market to make a lot more investments in both technology and personnel. Also, I have mentioned already the dominance of traditional media and this position, despite the rise of new media, cannot be significantly endangered anytime soon. 2015 will be equally as challenging as the previous years, but that’s what the beauty of our work is made of. ■ CONTACT: ZenithOptimedia Serbia Kralja Petra 13/1, Belgrade 11000 Serbia T: +381 (0)11 3036446 larisa.zdravkovic@zenithoptimedia.rs www.zenithoptimedia.com
Successfully different.
www.cordmagazine.com
www.abcsrbija.com
DRONES BECOME A REALITY
All the Ways Drones
Can Be Used
German logistics company DHL recently announced it is launching a new drone delivery service to get “urgently needed goods,” such as life-saving medicines, to certain remote locations
T
he company’s plan is to use small, parcel-carrying drones has championed an initiative that aims to extend the reach of to deliver medications and emergency supplies to Juist, Internet connectivity across the entire planet. Facebook intends an island in Germany’s North Sea, where more traditional to use the high-altitude flyers as part of a network of linked satellites, drones and lasers that can beam Internet to remote comdelivery options (such as ferries or trains) aren’t always munities from the sky. available. The drone service is a continuation of DHL’s “parcelcopter research project,” which launched in December 2013. • In April 2014, Google purchased its own solar-powered drone And the company has good reason to keep moving ahead company: Titan Aerospace. The company designs ultra-lightweight, solar-powered planes that fly high above commercial with its drone delivery option. Several other companies, including air traffic and can remain aloft for up to five years. While Google Amazon and Google, have already begun testing their own versions of parcel-delivery drones. has not made its plans public, tech commentators say Titan In December 2013, Amazon announced its futuristic Prime Air Aerospace’s drones will likely be used to bring Internet access service, which would use drones to deliver packages straight from to parts of the planet without reliable access to the Web the online retailer’s warehouses to customers’ doorsteps — and • Researchers at the Harvard-MIT Division of Health Sciences and quickly. In an interview with “60 Minutes,” Amazon founder Jeff Technology are developing drones that can deliver vaccines and Bezos said the company hopes to get goods into the hands of other critical medical supplies to remote locations in the developing world. In January 2014, the project won a $100,000 grant shoppers in 30 minutes or less from the time of purchase. from the Bill and Melinda Gates Foundation. Following on Amazon’s heels is Google, which revealed its • Matternet Inc., a Silicon Valley-based tech firm, is working on a own drone delivery project in August. Dubbed “Project Wing,” the similar venture to design drones capable of transporting supGoogle effort is still in an early phase of development, according to the company, but the concept will likely be similar to other plies to remote areas that are inaccessible by roads. A team drone-delivery systems. of archaeologists uncovered structures thought to be from an Unlike the Germany-based DHL, howancient Native American village in New ever, efforts by Amazon and Google have Mexico using drones equipped with heatLast year Amazon been stalled by the U.S. Federal Aviation sensing cameras. The thermal images enannounced its futuristic abled the researchers to see beneath the Administration (FAA), which oversees the Prime Air service, which desert floor, which helped them locate the country’s civil aviation but has yet to establish official regulations for the comburied structures. would use drones mercial use of drones. The FAA is expect• In Japan, helicopter-style drones deto deliver packages ed to announce its rules in 2015, but until signed by the Yamaha Motor Company straight from the online then, the development of delivery drones have been reducing labor and operational retailer’s warehouses to in the U.S. remains in regulatory limbo. costs on farms since the early 1990s. The But today there are also many other radio-controlled RMAX drones are used to customers’ doorsteps Surprising Ways Drones Could Be Used spray crops with fertilizers and pesticides, • W hen a Silicon Valley start-up angiving farmers a more affordable alternanounced plans to use drones to deliver tacos to its customtive to using traditional airplanes. The unmanned flyers are effiers, foodies in the Bay Area rejoiced. Unfortunately, the Federal cient workers, and since they can hover low to the ground, the Aviation Administration is blocking the so-called Tacocopter drones are able to carry out more precise work, company officials from getting off the ground —1 at least until regulations are have said. In recent years, Yamaha’s RMAX drones have also been formally issued in 2015 for private and commercial drones. Still, used on farms in South Korea and Australia. the clever venture offers a glimpse into the innovative services • Finally, the football game between Serbia and Albania was abandoned before halftime after an Albanian nationalist banner was that could come out of the commercial drone industry. flown into the stadium by a drone, triggering fighting among • In March 2014, social media behemoth Facebook purchased players and fans. The Serbian and Albanian federations were Ascenta, a solar-powered drone company based in the United each fined by UEFA $105,000. ■ Kingdom. Mark Zuckerberg, the company’s chief executive, cordeditorial@cma.rs |
121 November 2014 | 83
CREATIVE INDUSTRIES OF SERBIA
Time to Create
New Values
I
The Belgrade Design Week (BDW) took place from 6th to 12th October in the old Staklopan factory in Dorćol, bringing together more than 20 speakers from different areas of the creative industries worldwide and presenting exhibitions of international and domestic creative and professional workshops intended for future professionals
The most represented sectors of the creative industries in n today’s globalised and over-saturated society, in which Serbia are architecture, fashion design, publishing and adveritems repeatedly lose their character and significance, the tising. However, it is a long journey from creativity to the creamain role of design is to create new value. It should also be tion of creative industries in Serbia. Accelerated work is currentconsidered that design is not art, but rather a very profitaly being done to raise awareness of the importance of this area, ble business of the modern era that is based on ideas and crealocal potential, legal and strategic frameworks, all of which was tivity. In this new economy one can no longer sell products and contributed to significantly by this autumn’s Belgrade Design services, but rather events that are created around products Week (BDW). Since it was founded in and services. Design has become a 2006, BDW has slowly emerged from powerful tool because it is ubiquitous. For the first time Serbia its format of a seven-day festival and In a study published by the European is following current has today grown into an event with evCommission in 2006 the socio-ecoer increasing social significance. nomic impact of the new economy was trends, because from this measured for the first time through year it has become part BRAND NEW WORLD analysis of the cultural and creative secof the Creative Europe Under the slogan “Create new valtor of the EU. The result is a turnover programme, which has ue”, this year’s BDW, which is the largof close to €654 billion a year and nearest event of the creative industries in ly six million new jobs. That’s why it’s earmarked €1.46 billion for this part of Europe, presented the latno wonder that the 2014 to 2020 periprojects in the field of the est trends in design for the ninth time. od has been declared the years of the creative industries in future The contemporary world has many creative industries by the EU. These inEU member states problems - environmental, ethical, dustries are expected to help progress economic, political, with an ever-prein all spheres of life and first and foresent need for new and better solutions. Some possible solumost lead to an exit from the economic crisis. Architecture, multions were this year offered by lecturers, artists and designers timedia, fashion, visual arts, traditional crafts, publishing, media, from Israel, Japan, the Netherlands, Switzerland, Germany and film, advertising and performing arts have gained a very responMexico. For the first time, side by side with the world’s creative sible position in the recovery of western economies.
84 |
121 November 2014 | www.cordmagazine.com
minds, presentations were also made by authors from Serbia who live and work here, but also those based abroad. They provided a new perspective on architecture, branding, business, communication, design, film, fashion and publishing. Speaking about this year’s festival, BDW founder and programme director Jovan Jelovac stressed that “For the first time Serbia is following current trends, because from this year it has become part of the Creative Europe programme, which has earmarked €1.46 billion for projects in the field of the creative industries in future EU member states.” For the first time in the nine years of its existence the importance of this event was also recognised by the state, which is why the BDW was this year held under the patronage of the President of the Republic of Serbia and the Mayor of Belgrade, in cooperation with the Serbian Chamber of Commerce and with the support of embassies. CREATIVE MINDS OF THE 21ST CENTURY The central part of this year’s event was that international conference that was this year held under the slogan “Brand New World”, alongside the obligatory “Design Park” exhibition and the “Design Labs” professional workshops. The new platforms “Serbian Innovation Session” and “100%
The key to domestic development of the creative industries is primarily to be found in professionalizing and advancing the standard of excellence, as well as affirming creativity and knowledge as positive values in our society Future Serbia” were also presented. The conference was divided into three thematic days – architecture, design and communications. The best lecturer was singled out as Swiss architect Christian Kerez, creator of the dual family home with only one wall, and that a dividing wall, which he built in Zurich’s Witikon quarter. Kerez is considered an architect of the new wave, whose work is often linked with “Konkrit Kunst”, i.e. concrete art with the nakedness of infrastructure works which he admitted fascinate him. According to Kerez, “the key to the problems of the modern age are to be found in simplicity and functionality.” Guido Woska, creative director of studio Designit from Copenhagen, gave a presentation entitled “The human sensor - Data in the age of wearables”, in which he posed a very important question – will technology change human evolution? In his opinion, the most important factor in contemporary design is feeling, because people and technology will be increasingly connected. With “wearables technology” that relationship already represents an inseparable symbiosis. Other participants of the conference included Swiss ar-
CREATIVE PLAYGROUNDS, SERBIA This year, as a continuation of BDW, the project “100 Creative Playgrounds for Children” was initiated and resulted in the first design of a playground that opened in Kalemegdan Park this year. It is also a successful example of public-private partnerships that can be seen as one of the models of development projects in the field of culture in Serbia.
SATYA SHEEL - METRO VALLEY, INDIA Architect Satya Sheel believes that cities must follow the dynamics of social change and become spaces for the integration of people and ideas, but they must also transform with the establishing of new models based on understanding society and local conditions.
JEREMY ETTINGHAUSSEN, BBH The Audi commercial’s slogan “Vorsprung durch Technik” (progress through technology) was celebrated by car manufacturers and marked the beginning of the global rise of its creator: London-based creative agency Bartle Bogle Hegarty (BBH). Jeremy Ettinghausen is the creative director and a partner at this agency, which has received 32 international awards and employs more than 1,000 workers worldwide.
TOM STRALA, SWITZERLAND In the framework of his exhibition of furniture “Strala is Present”, architect Tom Strala announced that people today “must start imagining and that it is essential they have passion, desire and intensity, which cannot be reached through compromise”.
UGLJEŠA VRCELJ, SRBIJA The founder of the Dvoika creative studio, Uglješa Vrcelj, deals with the design of modern bicycles. He presented his new handmade wooden model at the Paris Design Week and the Eurobike Exhibition Show, where he received positive reviews.
OUT OF THE BOX, ISRAEL This is an exhibition of innovative wooden items made by Israeli designers. They are characterised by simplicity, functionality and unexpected solutions.
STUDIO APPETIT, NETHERLANDS Ido Garini from Studio Appetit makes jewellery from food like a real goldsmith – rings, bracelets, hair grips and earrings. These pieces of jewellery are really solid, comfortable, beautifully designed and, primarily, edible.
cordeditorial@cma.rs |
121 November 2014 | 85
Saatchi & Saatchi, which has enjoyed a decade of success and chitect Tom Strala, who designs chairs, tables and lamps inreceived its latest award this June at the Cannes Liones World stead of buildings, and Jeremy Ettinghausen, a representative Festival of Creativity, where it received a Bronze Lion for its of British independent advertising agency BBH, which has the “Hronika Pretnje” (Chronicles of Threats) campaign, realised in most awards in the world and is famous for its commercials for cooperation with the Commission for Investigating Murders of Levi’s, Audi, Johnnie Walker and PlayStation. Journalists and the OSCE. In cooperation with the Serbian Chamber of Commerce, Within the regular session of the Serbian Chamber of “Design Labs” - workshops and master-classes were organised Commerce it was noted that “in the last three years Serbia for future professionals. From the design of clothing, textile prohas exported more software than raspberries,” which was asduction management, urban planning, urban development dysessed as a sign that Serbia should expand the focus of its econamics, financing culture and the management of museums, dignomic activity. The result was this year’s establishment of the ital design and start-up entrepreneurship, these workshops folCouncil for the Development of the Creative Industries within lowed very current topics. Most notable among them were workthe Serbian Chamber of shops on the development Commerce. Its task is to and planning of cities by establish the “Strategy Indian architect and urban for the Development of planner Satya Sheel and the Creative Industries food designer Ido Garini from 2015 to 2020”. from the Appetit studio. In conjunction with In the context of the the Serbian Chamber of BDW “Design Park” exhiCommerce, the National bitions of photographs, Library of Serbia and the everyday objects, instalMinistry of Culture and lations, glass items and Information, this year alexperimental works in the so saw the release of field of digital and graphthe publication “Creative ic design were presented. Industries Serbia”, which The stand-out exhibition presented the research of among them was entithe Group for the Creative tled “Out of the box” and Economy. Based on the results of the showcased innovative wooden items group, which comprises renowned made by Israeli designers. The most represented speakers from the field of culture and sectors of the creative the arts, some 35 authors, companies CREATIVE POTENTIAL industries in Serbia are and products from the local creative OF SERBIA architecture, fashion design, sector were selected and presented Within the BDW’s “Serbian in September at the 7th China Cultural Innovation session” local authors had publishing and advertising the opportunity to present their latIndustry Expo in Xi’an. China was choest projects. Architect Miloš Dimčić currently works at one of sen because it today represents the fastest growing market for the largest research centres in the world, “Kapsarc” in Riyadh, products and services of the creative industries. according to the design of the Zaha Hadid studio. He deals According to Hristina Mikić, executive director of the Group for with programming in architecture that eases the design and the Creative Economy, the key to domestic development of the construction process. In his opinion, “the 21st century will be creative industries is primarily to be found in “professionalizing marked by work on the improvement of energy efficiency in all and advancing the standard of excellence,” noting that they are, aspects of engineering activities,” and his recommendation is first and foremost, “essential mechanisms confirming and affirmthat a new generation of architects can control the entire proing creativity and knowledge as positive values in our society”. duction process. Belgrade Design Week began spreading ideas about the imSaša Vidaković leads his team at the SVI Design studio in portance of the creative industries and as a result today there London’s Notting Hill. He deals with communication stratare several independent projects that run on the same track – egies and the branding and presentation of products and the “Mikser” platform “Nova Iskra”, “Share conferences”, “TEDx services, which was the main theme of his “Branding and conferences”, the film festival “Cinema City” from Novi Sad, the Entrepreneurship” Master-class. Uroš Otašević recently comResonate festival of new media and digital art and several depleted his work on special effects within the production of sign and technology incubators – all aimed at developing the Darren Aronofsky’s new movie spectacle “Noah” with a budgsociety of knowledge in Serbia. It was necessary for the spread et of $125 million dollars, of which only $45 million was set aside of ideas to include the state, in order for Serbia to expand the for visual effects. A presentation was also made by agency focus of its economic activity. ■ 86 |
121 November 2014 | www.cordmagazine.com
• Find the perfect municipality for your Investment • Review of all 146 municipalities in Serbia • Available 24/7 • All useful contacts, information, opportunities, benefits, terms & conditions • Daily updates of all changes in the field • Indispensible hub for all potential investors in Serbia • Latest news about local events and on-going projects • Easy and friendly search based on your personal requirements
The Ultimate Guide for Investors Investment Opportunities In Serbia
www.invest-serbia.info
CHILL OUT
Folk Tale Pumpkin Village USA VISIT AMAZING PUMPKIN HOUSES
Every year on the weekend before Halloween the Dallas Arboretum becomes a proper pumpkin village. This year’s pumpkin village in Dallas has grown to include an astounding 50,000 pumpkins. Some 45 different varieties of pumpkin and gourd have been formed into houses and other structures at the Cinderella-themed pumpkin village. The pumpkin village was launched by the Dallas Arboretum a few years ago and has since swelled in size as its popularity has grown. Using about 1,200 pumpkins and gourds, garden workers constructed whole houses that are meant to resemble Cinderella’s ballroom and other fairy tale homes. Throughout the rest of the Arboretum, pumpkins are found scattered throughout the gardens, lining freshly-planted beds. These amazing pumpkin houses will be on display until 23rd November.
ELECTRICITY FROM THE SILK MOTH
Scientists in India have discovered that silk moth cocoons can be used to generate clean electricity to power electronics and possibly provide a source of power in nuclear power plants.
88 |
Monkey Buffet in Thailand BANGKOK ALL FOR THE
BENEFIT OF MONKEYS Set up in the province of Lopburi, North of Bangkok, the Monkey Buffet Festival is held for the benefit of monkeys. On tables set up in front of temples, some 4,000 kilograms of fruit, vegetables, cakes and sweets are laid out in pyramid shape or just on a simple mat for the delight of the 3,000 monkeys living in the area. The Monkey Buffet Festival also hosts plenty of activities related to monkeys: music and dances with young people dressed like monkeys, in monkey costumes and monkey masks. Monkey sculptures also adorn the entire area. The Festival was first held in 1989, the brainchild of a local businessman seeking to boost tourism in the Lopburi province. Since then thousands of visitors have come every year to see the numerous monkeys filling their stomachs.
Tianzi Hotel’s Gods
Sushi Socks, Fun and Delicious
CHINA REFLECTION OF ANCIENT GODS SYMBOLS
JAPAN ONLY FOR SUSHI LOVERS
The Tianzi Hotel in China’s Habei Province is a strange location for some travellers, because at first sight or from a distance you will think this building is a statue rather than a hotel. Located in the Son of Heaven Garden, the Hotel captures the traveller’s eye through its depiction of three Chinese men standing one beside the other. They are symbols of the ancient gods of fortune, prosperity and longevity, Fu, Lu and Shou. If you want to enter the 10-storey hotel, the entrance is located in the first man’s shoe. Another unusual fact is that the hotel has strangely positioned rooms. One of the three men, the one on the left, Shou, is holding in his hand a peach, the fruit that represents a fully liveable room.
Sushi Socks are a series of fun and delicious pairs of socks from Tokyo Otaku Mode that are made to look like various types of sushi. Each of the seven versions (masuzushi, shrimp, octopus, red caviar, tuna, salmon and egg) is available to purchase online. Fun to look at and to wear, when rolled up the Sushi Socks look resemble delicious sushi. They are also comfortable and durable. The sushi detail is knitted into the sock with coloured thread instead of being printed.
121 November 2014 | www.cordmagazine.com
THE HOTTEST CANDY EVER
This chocolate is made using the world’s five hottest peppers. The Scoville scale, which measures the spicy heat of chilli peppers, rates these candies as having two million Units.
Pedestrian Lane tor Texting
Musical Veggy Instruments
CHINA WALK THIS WAY AT YOUR OWN RISK
USA BEETS CAN PLAY TOO
In a country with a population as large as China’s (over 1.3 billion), unique solutions are sometimes required for managing pedestrians. With the practice of texting while walking becoming increasingly common, the city of Chongqing recently came up with an idea that may at first seem ridiculous, but could ultimately catch on: separate cell phone lanes for pedestrians. The 100-foot stretch of footpath is emblazoned with large signage, in Chinese and English, warning pedestrians to walk in the proper lane. “Cell phones, walk in this lane at your own risk,” says one, right next to the other lane, which reads, “no cell phones.”
At first glance, the ‘Beet Box’ by Scott Garner looks like little more than some odd sort of storage and display system for root vegetables. But look closer and you’ll notice a speaker and a wire or two. This wooden contraption is actually a high-tech musical instrument disguised with humble materials and simple shapes. Hidden within that wooden box is a Raspberry Pi (a creditcard-sized computer), a capacitive touch sensor and an audio amplifier. Hiding this technology within the wooden box makes the device appear much less complex than it really is, rendering its true usage all the more surprising. Touching the beets – whether you tap them like delicate drums or strum them like strings – activates sound samples that play through holes in the lid of the box.
Phone Boxes Go Green UK SOLAR ENERGY FOR THE MASSES
While the iconic red phone boxes around the UK are still considered national fixtures, mobile phones have largely rendered the big red booths obsolete over the years. However, thanks to Solarbox, London‘s ambitious plan to bring solar energy to the selfie-addicted masses, the solitary boxes have been reborn as free solar-powered phone charging stations and have even been repainted with a fresh coat of green paint to celebrate the upgrade. At the beginning of October Solarbox London inaugurated the first of six solar-powered charging stations on London’s Tottenham Court Road, providing free charging for devices for local commuters and tourists. The charging stations are perfect for those looking to charge-and-go, with tests showing a 20% battery charge in about 10 minutes depending on the phone model.
Sleep Tight in the Alps ITALY EXTREME FESTIVAL
HUNDREDS OF FEET UP The International Highline Meeting festival is very unusual and somewhat terrifying because attendees spend most of their time strung up on tightropes stretched across the Italian Alps in Monte Piana. The attendees call themselves “slackers” because of the slack-lines they balance themselves on. This extreme sport differs from tightrope walking in that the rope has a slightly flattened shaped and is slack, meaning that it can move sideto-side or bounce. In addition to the fact that slackers spend a good part of their days (and nights) on slack-lines suspended hundreds of feet above the Italian Dolomite Alps, the gathering also has all the trappings of a normal festival – a kitchen, a bar and awesome musical jam sessions. Attendees can also attend a Yoga workshop or take tandem paragliding flights.
cordeditorial@cma.rs |
121 November 2014 | 89
TECHNO TALK - GR EEN GAD GETS -
HOME
GREEN HOME
With increasing awareness of the need for a healthy lifestyle, people want to know how to live better and how to do things better. Therefore it is essential that our home becomes a real small eco oasis that will support our healthy habits - eating better, fitness activities and promoting eco design in everyday objets. Since modern world constantly force us to be networked, our gadgets should be the greenest possible but also to allow us to be healthy, eco aware and informed. With eco-friendly gadgets in our daily lives, we would be able to cut a lot of electric energy wastage and reduce pollution. Here we present some very carefully picked green gadgets for our everyday healthy habits and activities at home.
Water Powered Can Clock PRICE: €120 Manufactured by H2O Power, this can shaped clock is powered solely by water and incorporates the latest long-life hydro-power technology. All you need to do is to water and check levels every six months or so to enjoy the clock and save on the free energy it runs on.
iBamboo Speaker PRICE: €68 iBamboo is an electricity-free speaker made from a single piece of bamboo -- a natural material. The natural resonance of the bamboo amplifies the sound produced by the built-in speaker in the iPhone 4/4S and the iPhone 5. These speakers combine the high-tech of the modern day with the simplicity and aesthetics of nature.
Electree Mini+USb+LED PRICE: €249 Electree Mini is a multi-functional lamp that illuminates spaces with sun’s rays while charging your smartphone. The 27 solar panels installed at the tip of the branches capture the solar energy which is then stored in the 2 500 mAh battery located under the panel of the bonsaÏ. Once charged, this accumulator feeds a USB port.
90 |
121 November 2014 | www.cordmagazine.com
Garmin Vivosmart PRICE: €117 Garmin takes smart wearable tech which does just about everything we’d ask an activity monitor to do. It not only tracks steps, distance, calories and sleep — it also tells you when to start moving after long periods of inactivity, provides notifications from your phone that you can swipe through on the OLED touchscreen.
Zeta Fireplace PRICE: €8.518 Designed by John Dimopoulos, director of Geoform, the Zeta is a clever fusion of leather, stainless steel and glass. The body of the fireplace is shaped from a high frequency heated aluminium. This modern fireplace as energy uses bioethanol, a renewable energy source made by fermenting the sugar and starch components of plant by-products.
BluFit Smart Water Bottle PRICE: €35 A smart water bottle that determines how much water you need, how much you’ve drunk and when it’s time to hydrate. The cap of the 950ml water tracks your drinking habits through a built-in water sensor and Bluetooth chip. The data is set to your phone and then to cloud servers.
The Foldaway Exercise Bicycle Desk PRICE: €470 This is the folding exercise bicycle with an integrated desk that lets riders work and get in a workout simultaneously. A strong elastic cord secures a laptop to the platform. The bike’s magnetic resistance adjusts easily with a turn of a dial and an onboard computer displays time, speed, distance, and calories.
cordeditorial@cma.rs |
121 November 2014 | 91
TECHNO TALK
Andrea Air Purifier PRICE: €370 The purifier is able to amplify the air cleaning ability of a plant with the help of a mechanical fan that moves air past the plant’s leaves, through the soil and roots and out through a water tray that collects toxins. Andrea can work with many a species of house plants.
Intutive SmartBulb PRICE: €140
Headphones With a Rainforest Festure
Alba bulb is the latest in whip-smart lighting systems, integrated with sensors and intuitive learning tech to adapt and react to our individual schedules and behavior. It seamlessly adjusts from cool whites to warm-yellow tones to suit the situation. Your average annual savings could be €570 to €670.
PRICE: €170
Notion Keeps Your House Safe
Urbanears Editions are special models with a little something extra. The Re:Plattan uses scrap parts from previous color collections. By working together with Pax, every pair of headphones comes with the GPS coordinates of five square meters of rainforest in Costa Rica that is protected with purchase. Because every little part counts.
PRICE: €370 Notion is a home intelligence system that packs 8 powerful capacities into one small sensor. It can detect acceleration, water leaks, sound, temperature, light, orientation, natural frequency, and proximity. Notion only sends you relevant alerts of things going on in your home, and learns more about you over time.
ASUS Ecobook PRICE: €670 The cover of this ASUS Ecobook is made of bamboo and is truly a decent way of getting your compute power while lowering your electricity costs. All of the plastic inside this Ecobook is labeled and recyclable. The components are lined with cardboard and there are no paints, sprays or even electroplating used on its components.
92 |
121 November 2014 | www.cordmagazine.com
Tempo Wristband PRICE: €180 Tempo wristband looks to identify early warning signs of health issues that usually begin as changes in normal behavior patterns. The wristband works with room sensors that track the user’s movement throughout the home. The data is transmitted to a communications hub that analyzes it and triggers notifications to a mobile device or computer.
Samsung Blue Earth PRICE: €187 The Samsung Blue Earth is a new mobile phone which has a solar panel on the back for charging. The phone can be charged just by exposing the solar panel towards sunlight. It features an ‘eco walk’ facility with pedometer which counts your steps and calculate how much CO2 has been used. The phone is made entirely from recycled plastic bottles.
Withings Wireless Blood Pressure Monitor PRICE: €130
As opera in music represents harmony between music and performance, the Opera Restaurant, in a classy yet casual enviornment, offers an authentic taste of Belgrade through the bond of good food and drinks, tradition and modern times, love and the spirit of the city. A place where you will feel at home regardless of where you come from. Embraced by the Obilićev Venac, just next to the refined Knez Mihailova Street, the Opera Restaurant is a perfect place for new romances, reconciliations, friendships, business meetings and pleasant family lunches.
The Withings Wireless Blood Pressure shares data with your smartphone. The monitor has no hoses that run to the cuff making it very clean and compact.The wireless device supports iOS devices and Android. The readings from the monitor are displayed on the smartphone via an application. The cuff is pre-curved to make it easy to put on and has the inflator attached to the side of the cuff.
Obilićev venac 30 Tel: +381 11 303 62 00 office@operarestoran.com
cordeditorial@cma.rs |
121 November 2014 | 93
FASHION FOR HER
Get Ready for
Christmas Parties
PRICE:
€125
Michael Kors Chevron Stay on-trend in Michael Kors' fit & flare dress, featuring a textured chevron design and a belted waist for a stylish touch!
IT IS TRUE that we are only in November, but it is also true that the festive season begins as early as 10th December and will only culminate on 15th January. Up until the 1990s companies in Serbia did not organise what we today call Christmas Parties or Christmas Dinners. It was normal on New Year's Eve, on 31st December, to organise a modest celebration on the premises of companies
and for employees to wish each other a happy new year. During the last fifteen years, however, much has changed, and the Christmas party has also taken on a different meaning and more festive form. Among other things, there is a difference in the fact that celebrations of Christmas and the New Year holidays has become much more festive and the most elite hotels in the cities of Serbia are booked well in advance. Perhaps because we are one of the few countries in the world TO CELEBRATE TWO CHRISTMASES AND TWO NEW YEARS, and when you add up all the other non-working days between these four holidays, there is really plenty of reason to celebrate. In this issue of CorD we provide suggestions for some possible options, in order for you to feel beautiful and comfortable during one or more of the celebrations of Christmas and New Year. PRICE:
€350
Diane von Furstenberg For of-the-moment evening glamour where sheer lace sleeves and lustrous satin trim lend notes of luxe to the retro-revived silhouette. A shining snakeskin clutch and strappy stilettos add the perfect ending. 94 |
121 November 2014 | www.cordmagazine.com
Valentino Rome Safari Silk Scarf Crafted in super soft, lightweight silk, drape yours around the neck or attach to a favourite handbag for a personalised finish. Price: €326
Michael Kors Wren Chronograph Watch
Dolce & Gabbana Crocodile And Alligator Tote
The Wren is a bold and contemporary chronograph watch from Michael Kors with an elegant golden round case and bracelet strap. Price: €295
Chloé Reversible Shearling Coat Designed in a Tinted White colourway with a contrast black trim, its long crossover silhouette is accented with a striped hem to one side and a quilted hem to the other, allowing you to mix up your look all season long. Price: €5,570
Dolce & Gabbana bring an exotic edge to their classic Sicily tote in this striking two-tone design in glossy crocodile an alligator skin. Price: €16,585
Nicholas Kirkwood Mercury Elaphe Pump Handcrafted in Italy, the point-toed pumps see a combination of elaphe and two tones of suede create glorious contrast in texture and colour. Price: €695
cordeditorial@cma.rs |
121 November 2014 | 95
FASHION FOR HIM
Festive Fashion
White Shirt and Tailored Striped Tie Price: €107
for Him
DURING ALMOST THE WHOLE of December and the first half of January 2015, Serbia will host plenty of corporate Christmas dinners, followed by one Christmas and New Year holiday, then – in early January – Orthodox Christmas and Orthodox New Year. When it comes to fashion, this month of celebrations is certainly the MOST DYNAMIC PERIOD OF THE YEAR. Virtually everyone has to appear at a minimum of four or five Christmas parties and dinners, and each time we should turn up looking as though we’ve been saving ourselves precisely for this occasion. Details mean a lot on such occasions, so here are a few suggestions.
PRICE:
Hugo Boss Silk Pocket Square
€1,350
Paul Smith Wool Suit
Gingham checks define a dapper Italian pocket square cut from pure silk. Price: €40
A tailored two-piece suit features a lean-fitting, two-button jacket with stitchtrimmed notch lapels and slim, sharply creased flat front trousers.
David Yurman Rubber Bracelet Sterling silver,Woven rubber, 6mm wide. Magnetic clasp. By David Yurman. Price: €253
Accessories Billionaire Cufflinks
Burberry Long DoubleBreasted Trench Coat
Sleek and elegant, a flash of these cufflinks on a tailored shirt cuff will send a powerful style signal. PRICE:
€315
PRICE:
€1,285
96 |
121 November 2014 | www.cordmagazine.com
Classically styled for a structured fit, it features set-in sleeves and a belted waist with epaulettes, a storm flap, throat latch and rain shield referencing the original.
Salvatore Ferragamo Cap Toe Oxford A serrated-edge toe cap adds a smart visual break to a sleek oxford sculpted from high-quality calfskin leather.
PRICE:
€430
Nordstrom Reversible Leather Belt
Barker Flynn Brogues
Zilli Wool Twill Jacket
The Flynn is a traditional Oxford half brogue in Brown Calf leather with intricate toe cap and centre design.
Smooth, full-grain-leather belt is superversatile: not only does it reverse, but it works with both casual and polished styles.
Ensure firstclass style and sophistication with a tailored jacket by Italian label, Zilli. Wear with a crisp white.
PRICE:
€250
PRICE:
PRICE:
€4,180
€40
PRICE:
€795
Navy Stretch Wool Suit
Prada Sunglasses A metallic double bridge heightens the suave, modern style of lightweight Italian sunglasses. Price: €245
A notch-lapel jacket and flatfront trousers are cut with a slimmer fit for an undeniably modern look. A hint of stretch eases the fit for added comfort.
Shirt Navy Stretch Price: €145
Gucci Diamond Dial Bracelet Watch PRICE:
€710
Stretch Virgin Wool Suit
Twelve radiant diamonds mark the patterned dial of a sophisticated stainless steel watch completed by a classic bracelet band. Price: €1,050
This extra slim fit suit by BOSS is crafted from virgin wool with a hint of stretch for comfort. It features a fine check pattern, notched lapels, two front piped pockets, and a diagonal chest welt pocket.
cordeditorial@cma.rs |
121 November 2014 | 97
PROFILE
Positive
Spirit DINA JANEVSKI Brand & Marketing Communications Director, CMO division of Telenor Serbia
Apart from all the campaigns and communication we create at Telenor, what really matters to me is that there is an honest vision behind that. I admire the collective spirit to positively impact on the lives of people in Serbia every day
T
he greatest pleasure of working in marketing is the abiliof thinking and involves a true customer-centric approach. To me, ty to keep a person playful and curious. It is this required working on customer experience and actually branding customer passion and creativity that drew me to studying marinteractions is what makes my job very innovative and exciting. It keting in the first place – it’s a discipline that revolves is not a task you can simply see and copy from others, but makes around people, always challenging you to think differently and seek you seek innovative concepts and develop very deep understandstimulating ideas. And as long as you aim to ignite a spark in peoing of customer insights. Our key task is to build promoters on ple, the task is never easy and thus never dull. this market, so I am very proud to see that the Telenor brand is Since I lived and studied in Vienna, the decision to come back not just building business success, but also staying truly loved by to work in Serbia was a big one, yet for me perhaps also the right customers over the years. one. In a developing market, it is very exciting to be a part of A special benefit of working at Telenor has been the opporsomething new, to participate in the “first” time a product or contunity to develop and grow professionally – both on the job and cept is being launched. I have been lucky to work for big, dynamalso through executive education. I have had a chance to attend ic advertising agencies - Publicis and Leo prestigious education programmes in the Burnett, where I gained very solid experiarea of marketing strategy and leaderI am very proud to see ence in brand building, strategic positionship development, and learn from the bigthat the Telenor brand is ing, creative work and new business degest global marketing thinkers, such as not just building business the London Business School faculty. That velopment. Collaborating with senior insuccess, but also staying ternational experts has been a unique is simply precious, largely influencing the learning experience and made me fall in way I think and work. truly loved by customers love with powerful brands that have purI believe that the most important over the years pose and character. thing for my career is to feel good – not Over the past eight years I have been working on building the just about the actual work I do, but also about the larger conTelenor brand – three years from the agency side and five years text and setting in which I work. So, apart from all the campaigns within Telenor. Throughout this time I have felt both proud and and communication we create in Telenor, what really matters to very excited to be part of such a team. Telenor Group brings a set me is that there is an honest vision behind that. I admire the colof inspiring values and a unique culture that is very stimulating. lective spirit to impact positively on the lives of people in Serbia The telecommunications industry is one of the most dynamic, ever every day. I am motivated by the commitment to listen to the changing fields, always keeping a person on their toes. I feel privvoice of customers, provide internet for all and especially the long ileged to be able to practice marketing in so many different fields term support of our country’s young artists. Thus, at work I get - ranging from consumer propositions, business solutions, new a chance to collaborate with artists and creative people on many digital services, even to mobile banking today. Communication projects and we sit every day surrounded by beautiful artwork of such innovative propositions requires great understanding of from the Telenor Foundation in our building. I also devote a lot of customer trends, the utilisation of advanced segmentation and time outside work interacting and speaking to students at various planning, and a strong digital focus in execution. The most interforums, universities and associations. Experiencing the energy of esting aspect of working at Telenor for me is the creation of our youth and the power of talent is what brings true joy and inspiramarketing strategy and value network. It requires a specific way tion and gives fuel to my professional life. ■
98 |
121 November 2014 | www.cordmagazine.com
cordeditorial@cma.rs |
121 November 2014 | 99