CorD Special Edition: Nordic Countries - Partners by CorD Magazine

NORDIC COUNTRIES

Partners

NOVEMBER 2017

No. 5 ISSN 2560-4465

MARKO CADEŽ, PRESIDENT OF THE CHAMBER OF COMMERCE & INDUSTRY OF SERBIA, CCIS: WE’RE READY FOR MORE INTENSIVE COOPERATION ● JASMINA VIGNJEVIC, PRESIDENT OF THE NORDIC BUSINESS ALLIANCE: BETTER COORDINATION OF STATE BODIES REQUIRED ● H.E. ANDERS CHRISTIAN HOUGÅRD, AMBASSADOR OF DENMARK TO SERBIA: THE EU SHOULD NOT BE WRITTEN OFF ● H.E. PERTTI IKONEN, AMBASADOR OF FINLAND: MAKING SERBIA A BORING COUNTRY ● H.E. ARNE BJORNSTAD, AMBASSADOR OF NORWAY: HIGH PRICE FOR STAYING OUTSIDE THE EU ● H.E. JAN LUNDIN, AMBASSADOR OF SWEDEN: THE IMPORTANCE OF BEING A “FRONT RUNNER” ● ANDREJA PAVLOVIĆ, EXECUTIVE DIRECTOR, NORDIC BUSINESS ALLIANCE: SERBIA DESERVES THE INTEREST OF NORDIC BUSINESSES ● PREDRAG RADOŠEVIC, GENERAL MANAGER AT NOVO NORDISK PHARMA D.O.O.: CITIZENS AS AN IMPERATIVE ● JOVANA MLADENOVIĆ, COMMUNICATION MANAGER, CARLSBERG SERBIA LTD: WE ARE FOLLOWING THE VISIONS OF JACOBSEN AND DUNĐERSKI ● Q-FREE ELCOM D.O.O.: STATE-OF-THE-ART TECHNOLOGY & ITS SOLUTIONS ● INGEBORG ØFSTHUS, TELENOR CEO: DIGITAL PUSH FOR GROWTH ● IVANA MILOŠEVIC, DIRECTOR, CITYSCOPE: TEAM THAT CARES FOR INDIVIDUALS

Unity And Economic Success, A Model For The Western Balkans

CONTENTS

06 08

SLOW BUT STEADY GAME CHANGERS

23 24

COMMENT

BETTER COORDINATION OF STATE BODIES REQUIRED

JASMINA VIGNJEVIĆ, PRESIDENT OF THE NORDIC BUSINESS ALLIANCE

JOVANA MLADENOVIĆ, COMMUNICATION MANAGER, CARLSBERG SERBIA LTD

THE EU SHOULD NOT BE WRITTEN OFF

H.E. ANDERS CHRISTIAN HOUGÅRD, AMBASSADOR OF DENMARK TO SERBIA

AMBITIOUS ENVIRONMENTAL TARGETS

19 20

STATE-OF-THE-ART TECHNOLOGY & ITS SOLUTIONS

Q-FREE ELCOM D.O.O.

PEACE, EQUALITY AND TRUST

HOW HAVE NORDIC COUNTRIES ACHIEVED SUCH A HIGH QUALITY OF LIFE?

MAKING SERBIA A BORING COUNTRY

H.E. PERTTI IKONEN, AMBASADOR OF FINLAND

H.E. JAN LUNDIN, AMBASSADOR OF SWEDEN

FACTS OVER EMOTIONS

31 32

CENTENNIAL FRIENDSHIP

CENTURY OF SUPPORT AND COOPERATION

HIGH PRICE FOR STAYING OUTSIDE THE EU

H.E. ARNE BJORNSTAD, AMBASSADOR OF NORWAY

FJORDS OF ISIDORA SEKULIĆ

COMMEMORATING 100 YEARS OF NORWEGIANSERBIAN DIPLOMATIC RELATIONS

ARE SWEDES REALLY PASSIONLESS?

SWEDISH PERSONALITY

TEAM THAT CARES FOR INDIVIDUALS

WE’RE READY FOR MORE INTENSIVE COOPERATION

IVANA MILOŠEVIĆ, DIRECTOR, CITYSCOPE

MARKO ČADEŽ, PRESIDENT OF THE CHAMBER OF COMMERCE & INDUSTRY OF SERBIA, CCIS

DIGITAL PUSH FOR GROWTH

ICELAND

CENTENARY OF A GENUINE FRIENDSHIP

DIPLOMATIC RELATIONS BETWEEN SERBIA AND DENMARK

EDITORIAL MANAGER Neda Lukić n.lukic@aim.rs

GENERAL MANAGER Ivan Novčić i.novcic@aim.rs

PHOTOS Zoran Petrović

PROJECT MANAGERS Biljana Dević b.devic@aim.rs Nataša Trifunović n.trifunovic@aim.rs Nevena Đurković n.djurkovic@aim.rs Vesna Vukajlović v.vukajlovic@aim.rs

FINANCIAL MANAGER Dragana Skrobonja d.skrobonja@aim.rs

PRINTING Rotografika d.o.o. Segedinski put 72, Subotica, Serbia

COPY EDITOR Mark Pullen mrpeditorial@mail.com

OFFICE MANAGER Svetlana Petrović s.petrovic@aim.rs

EXECUTIVE DIRECTOR Maja Vidaković m.vidakovic@aim.rs

BUSINESS PARTNER NORDIC COUNTRIES

DESIGNER Jasmina Laković j.lakovic@aim.rs

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BUSINESS PARTNER

38 42 46 50 54 55

A TRULY PAN-NORDIC RECOVERY

ANDREJA PAVLOVIĆ, EXECUTIVE DIRECTOR, NORDIC BUSINESS ALLIANCE

INGEBORG ØFSTHUS, TELENOR CEO

EDITOR Ana Novčić a.novcic@aim.rs

SERBIA DESERVES THE INTEREST OF NORDIC BUSINESSES

NORDIC BUSINESS ETIQUETTE AND CUSTOMS

DIVERSITY IN NORDIC CULTURE AND SOCIETY

NATURE AND ENVIRONMENT

PREDRAG RADOŠEVIĆ, GENERAL MANAGER AT NOVO NORDISK PHARMA D.O.O.

NORDIC COOPERATION

THE IMPORTANCE OF BEING A “FRONT RUNNER”

NORDIC SOCIETY

WE ARE FOLLOWING THE VISIONS OF JACOBSEN AND DUNĐERSKI

CITIZENS AS AN IMPERATIVE

AHEAD OF EU STANDARDS

Published by: alliance international media Makenzijeva 67, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 Fascimile: +(381 11) 2450 122 E-mail: office@aim.rs www.aim.rs

ECONOMY

NBA ACTIVITIES

ICELAND’S TOURISM BOOM TOURISM

TRADITION IN A MODERN CONTEXT

NEW NORDIC CUISINE

SMALLEST COUNTRY TO EVER MAKE THE WORLD CUP COMPANY REGISTER

BUSINESS PARTNER

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COMMENT

Slow But Steady Game Changers Economic relations between Nordic countries and the Western Balkans are currently at a relatively low level, but the scene is being changed by good spirit and enthusiasm from both the Serbian government and the Scandinavian businesses operating in the country

seen whether this initiative will be short-lived, Although positive changes in economic f we focus just on data related to economic there are enough signs that the EU is ready relations are moderate and not always cooperation between Serbia and Nordic to discuss the opening of more chapters in headed along an upward trajectory, they are countries, we might conclude too quickly the negotiation process with Serbia. still complimented by very good diplomatic that there are not great prospects for Nordic countries show a clear commitrelations and the efforts of Nordic countries better trade relations and investments. ment to support Serbia on its path to EU to support Serbia’s path towards EU accesHowever, numbers are just one part of the membership. For example, many Finnish sion. While Nordic countries are, in the minds story. In real life, there is a vibrant exchange experts are at the disposal of their Serbian of Serbian citizens, synonymous with the of ideas between Nordic companies present colleagues when it comes to the transport high standard of living of their citizens and in the country and their Serbian counterparts, and education sectors. Sweden is active, their social rights, in real life this inclusive as the business climate slowly but steadily among other areas, in supporting Serbia in model of society is built upon a strong and changes for the better. Such dynamics sugthe field of environmental protection. Norway competitive trade-orientated private sector, gest that if Serbia improves its business invests in strengthening the capacities of an efficient public sector open to private climate, i.e. adherence to the rule of law, the Serbian administration for EU accession initiatives, and the presence of business in and the efficiency of the administration, by supporting the work of personnel in local traditionally government-controlled areas, as well as curbing corruption, there will be more Nordic investors on Serbia’s doorstep and more Serbian exportAlthough positive changes in economic relations are moderate ers in the Nordic region. Obviously, economic results and not always headed along an upward trajectory, they are still cannot be changed overnight, but complimented by very good diplomatic relations the dialogue between the Nordic business community in Serbia and government, state and provincial adminissuch as schools and care for the elderly. This the government suggests that there is good tration, public enterprises, development is exactly the model that Nordic companies will on both sides. agencies and other institutions and bodies are seeking in Serbia. Progress in this important field will be established by the Republic of Serbia. Danish Ambassadors of Nordic countries in more than welcome. Nordic companies don’t support is channelled towards building the Serbia have clearly praised Serbia many just bring fresh investments and create capacities of the Serbian defence system. times for exerting a lot of effort aimed at new jobs, rather they also introduce new Obviously, many opportunities exist reforming its society during recent years. They technologies, modern management styles for fruitful and more advanced cooperaalso emphasise that these results are visible. and high standards in the treatment of tion between Serbia and the Nordic counHowever, much more must be done for their employees and in cooperation with tries, in many fields. The modest results Serbia to fulfil the criteria of EU membership. business partners. On the other hand, every of economic cooperation at present can Recent initiatives of the European ComSerbian company that enters the Nordic eventually change for the better, if good mission undoubtedly show good intentions market obviously shows that it is capable intentions turn into serious reform efforts toward faster integration of the Western of living up to high standards and handling of the Serbian government.  Balkan countries. Although it remains to be fierce competition.

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INTERVIEW

Better Coordination Of State Bodies Required The tenth anniversary of Telenor’s operations in Serbia and the launch of IKEA's business represent not only a symbolic, but also an essential, contribution to the development of business links between Serbia and the Nordic region, and are a powerful signal to potential investors that Serbia is a good place to invest. Partnership relations between the economy and the state would make this cooperation even more successful

JASMINA VIGNJEVIĆ,

PRESIDENT OF THE NORDIC BUSINESS ALLIANCE

ith Jasmina Vignjević, president of the Nordic Business Alliance, we spoke about cooperation between Serbia and Nordic countries, and many steps that could make that cooperation even more successful.

• How stable and predictable are conditions for doing buisness in Serbia today, from the perspective of Nordic investors? - General conditions for doing business are satisfactory in Serbia. Testifying to this is the fact that the Nordic Business Alliance has around 50 members. The efforts that the State exerts to attract foreign investors are noticeable. Significant steps forward were taken in the previous period in certain areas, for example in the field of e-permits for construction. We are also witnesses to dynamic changes in the economy at the global level, which is why it’s important for us to have an adequate legal framework that will enable the development of innovative business models and the competitiveness of our economy. When it comes to risks, at the level of local self-governments there is still a very significant risk of introducing para-fiscal charges and very uneven fees and taxes for doing business, which is certainly one of the problems that discourages new investments. One example is the idea of mandatory registrations of prepaid users of telecommunications services, which, according to the current solution, would be financed by mobile operators.

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• To what extent has progress made on the macroeconomic and legislative fronts contributed tangibly to strengthening economic exchanges between the Nordic countries and Serbia? - According to the latest available information from the Statistical Office of the Republic of Serbia, total foreign trade with the Nordic countries in 2016 amounted to about 560 million euros. The volume of trade increases year on year, with macroeconomic stability contributing the most to that, and we hope that in the coming period that growth will be even more dynamic. I would also like to point out that there are positive examples of investments from Serbia towards Nordic countries, such as, for example, the acquisitions made by Serbian company I&F McCann in Norway, Sweden, Finland and Denmark, which to our knowledge is the first investment from Serbia in the Nordic region. • The Serbian Government has made digitisation one of its priorities. How much could this encourage Nordic companies, and what specifically do companies expect in this respect? - Digitisation and e-commerce, which ease and reduce the costs of the operations of traditional industries, are among the most important prerequisites for new investments, paticularly those that create better paid jobs. Nordic companies expect a reduction in bureaucracy, simpler administrative procedures, as well as security and predictability in the

business climate. When considering Serbia as an investment destination, an investor from the Nordic region often also wants to sell products and services beyond the borders of Serbia, in which complicated foreign exchange regulations that are not always justified represent an unpleasant surprise for a country that is on the path to European integration and is advancing on ’Doing Business’ lists. • What did the dialogue with the government – launched after last year’s talks with then Prime Minister and now President Aleksandar Vučić – specifically bring to resolving the challenges faced by Nordic companies in Serbia? - We have made positive progress in this year. First of all, at the actual event we discussed Ikea’s arrival in Serbia. Today Ikea operates in Serbia and we hope that, over time, more domestic companies will be able to sell their products through this global chain. In the domain of digitisation, a visible shift has been made in the establishment of e-government through the regulation of basic databases and their interconnecting. When it comes to digital signatures, the Serbian Government adopted a law that establishes the framework, but substantial improvement is only expected with the introduction of bylaws, while in the area of free (cross-border) flows of data, we expect progress when the new Law on Electronic Communications is adopted. Another of the topics was innovative medicines, and in that we have concrete results. After five years, the list of innovative medicines for

Nordic companies expect a reduction in bureaucracy, simpler administrative procedures, as well as security and predictability in the business climate which costs are covered by the National Health Insurance Fund has been expanded. Apart from that, the Nordic Business Alliance, in cooperation with the Government, has found solutions to improve and accelerate procedures for approving clinical trials of new medicines. Finally, we are involved in amending the guidelines regulating the standards of quality to which building materials must adhere. The idea is for attention to be paid during public procurement procedures to the health of people, the natural environment and sustainability of materials ordered. • How much do events like the 10th anniversary of Telenor’s operations in Serbia and the launch of Ikea’s work contribute symbolically to strengthening Nordic-Serbian business relations? - These events give not only a symbolic, but also an essential, contribution to the development of business links between Serbia and the Nordic region, and represent a powerful signal to potential investors that Serbia is a good place to invest. Telenor is still the largest single foreign investor in Serbia, which has been operating successfully on our market for eleven years and has made investments exceeding two billion euros during that time. On the other hand, the fact that a global Swedish brand Ikea has returned to Serbia after many years represents a recommendation to all other investors. It is for this reason that it is very significant that the President of the Republic of Serbia and ministers visited Telenor on the occasion of its tenth

anniversary of operating in Serbia, just as was the case recently with the opening of Ikea, because in this way a message is sent regarding the state’s strong support for those deciding to invest capital in Serbia. • In which areas could Nordic companies potentially create the most new jobs in Serbia? - Definitely the IT sector, which is also one of the Serbian Government’s most important priorities. There is also energy, in which Nordic companies are mainly focused on renewable energy sources like solar and wind energy. Our agriculture resources are not sufficiently exploited and we consider that another area with the potential to create new jobs. • How much have Nordic business values – such as innovation, openness, trust and responsibility – today become part of the business environment in Serbia; and to what extent do you notice them among the Serbian business partners with whom you have established longterm business relationships? - The mentioned values contribute to improving business standards on the market and our company will continue with business practises based on these principles. When it comes to innovation, I must mention the ICT

but also for partnerships between the economy and the state. In this sense, in Serbia we need better coordination between state authorities. Good will exists for cooperation, but it is almost ‘mission: impossible’ whenever coordination is needed at lower levels within the state apparatus itself. Good laws are often passed, but their positive effects are lacking due to inadequate implementation. In the end, one relevant problem is the existence of state monopolies, the non-implementation of public procurements and the favouring of public enterprises in public procurement procedures. A considerable number of our members face this problem, and this is something Nordic companies can’t understand, as transparency in decision-making and the implementation of public procurements in accordance with the law is beyond question in Scandinavia.

• What are the key questions posed by Nordic companies considering starting operations in Serbia and the region? What do they perceive as the greatest risks and potential of this market? - Companies are interested in many things, but primarily legal solutions, the predictability of the business environment, political stability and the willingness of the public administration to cooperate. When it comes to the legal framework, the key question is whether it is harmonised with EU regulations and whether it is implemented in practise. Investors are also always interested in export opportunities, because they often see Serbia as the hub of their regional operations in this part of the world. In that sense, it is precisely the possibility of duty-free exports to EU member states, but also the trade agreements and incentives that Serbia has with other Eastern European and Asian countries, that represents one of the The existence of state monopolies, the advantages of our market. Nordic companies are pleased non-implementation of public procurements and the that people in Serbia are experts in their areas of operafavouring of public enterprises in public procurement tion. Talented people from our country often participate procedures are things that Nordic companies in the work of teams on a global level. When it comes to the business risks that companies emphasise, questions cannot understand always arise regarding improvements to the coordinating of state institutions, legal security and the favouring of industry and the examples of several globally successful IT companies public companies in public procurement procedures. that started their development as small start-ups and succeeded in selling their products on the world market. • In which areas are the Serbian government and Serbian companies As a specific example of the values we’re trying to transfer to all most interested in the transfer of knowhow from Nordic countries? those with whom we operate, I would like to note that we at Telenor - Nordic countries are known for applying sophisticated technologies conclude an Agreement on Responsible Business Behaviour with and innovations to resolve various problems and improve the quality of all of our suppliers. In accordance with this agreement, all suppliers people’s lives. In this, every idea and innovative solution carries within it are obliged to respect strict ethical, environmental, health and other the idea of environmental protection and the highest possible reliance standards throughout the entire production chain or in the provision on renewable energy sources. All these solutions are framed within the of services. Our controls on the application of these standards have recognisable Nordic design that is valued around the world. I see the root shown that they are implemented consistently, which created direct of all of this being in highly developed business ethics and corporate benefits for around 58,000 employees who work for our suppliers. governance, solid working habits, and the enthusiasm with which even the smallest problems are approached and solved. If we are committed • Where do investors see the slowest progress and what could Serbia to change and advancement, then I believe that as a society we need to learn from Nordic countries? look precisely towards the successful Nordic countries and transfer as - The Nordic region is not only known for cooperation among companies, many good practises from them as possible. ■

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CORPORATE PREDRAG RADOŠEVIĆ, GENERAL MANAGER AT NOVO NORDISK PHARMA D.O.O.

Citizens As An Imperative

“Novo Nordisk supports the state in its efforts to promote prevention of diabetes risks in Serbia and develop the healthcare system of better diabetes treatment, both clinically effective and economically efficient” says this company’s general manager, Predrag Radošević

unhealthy and fast foods, as well as similar life a major role here, with its clear commitment to lobal pharmaceutical company Novo habits, certainly having a negative impact on improve the healthcare of diabetes patients. Nordisk A/S, Denmark, which has over the occurrence and development of diabetes. 90 years’ experience in innovations • Diabetes is today at epidemic proportions and the treatment of diabetes, has • Do you see other possibilities for the pharworldwide, while in Serbia it is estimated been operating in Serbia for more than 25 maceutical sector to help the development of that over 600,000 people have it. What is years. “We are a secure partner of the state that healthcare and economic activity in Serbia? Novo Nordisk’s role in raising the awareness has always managed to provide patients with - Novo Nordisk has for years made significant of risks among citizens? modern and necessary therapy,” says Radošević, investments in the research and development - Novo Nordisk has made an indelible mark on before recalling the fact that this company has of new medicines in Serbia, primarily through Serbia when it comes to spreading awareness experienced the different stages in Serbia’s investments in clinical trials for medicines. of all the risks carried by diabetes, primarily recent history alongside the country’s citizens. - The toughest periods, such as the bombing and sanctions imposed Our plan is to remain a responsible and reliable partner of the on our country, we also overcame with state in improving health policy and, primarily, ensuring better extraordinary commitment to our priprevention, diagnosis and treatment of diabetes in Serbia mary goal of ensuring that all patients in need of medicine are able to receive Supporting such activities, Novo Nordisk emunder the slogan “Changing Diabetes®”. We treatment on a daily basis. Novo Nordisk was ploys a large number of young people in a spehave established cooperation with state bodies one of the few companies to actively secure cial sector, and also directly supports the reand organisations, the non-governmental sectherapy, despite all the difficulties facing Serbia search work of a large number of healthcare tor and patient associations, as well as health during those times, and I believe that is deeply workers in Serbia. With the aim of increasing institutions and healthcare professionals, rooted in the philosophy of the functioning and investments in the health sector, Novo Nordwith the aim of spreading awareness about management of our organisation. Serbia has isk also joined the efforts of the Government the importance of the prevention and timely certainly undergone many social, political and of the Republic of Serbia to provide more comtreatment of diabetes. We are always there to economic changes and transitions over these petitive conditions for the registration and imstart or support initiatives that have this goal. past 25 years, and I believe that the system has plementation of clinical studies compared to In this sense, we are also focused on spreadadvanced constantly. In the last two years, the the surrounding countries, and especially those ing awareness among health policymakers, in Government of the Republic of Serbia has also of Central and Eastern Europe. Novo Nordisk terms of encouraging them to take measures taken steps to develop a new programme for the believes that providing better conditions, and that prevent the occurrence and developprevention and treatment of diabetes, with the primarily legal and business predictability, will ment of diabetes – physical activity, proper aim of establishing better control of patients have a wider socio-economic impact in terms nutrition and lifestyle habits. Nevertheless, and reducing the costs of all complications that of increasing GDP, employment figures and today’s world, including Serbia, is confronted comes as a result of failing to treat diabetes. further investments in this sector. ■ by the unstoppable trend of urbanisation, with The Health Insurance Fund also certainly plays BUSINESS PARTNER

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INTERVIEW

The EU Should Not Be Written Off An independent judiciary, a trust-based administration free of corruption and, last but not least, the value of having a free media are indispensable pillars for a country that wants to build a stable democracy – says Anders Christian Hougård

H.E. ANDERS CHRISTIAN HOUGÅRD, AMBASSADOR OF DENMARK TO SERBIA

.E. Anders Christian Hougård arrived in Belgrade in early September and finds the Serbian capital to be a vibrant and impressive city. In this interview for CorD Magazine, he says that his priority is to help strengthen economic ties. - My main priority as Ambassador of Denmark will be to support Danish exporters and investors coming to Serbia. An increase in trade and investments is to the benefit of all in our two countries. Danish export to Serbia is modest – at approximately €150 million – and I will be more than satisfied if it is possible to attract more Danish commercial interest during my time in Belgrade. Another ambition is to follow up on this year’s 100-year celebrations with even more activities in culture and public diplomacy.

take the necessary time, but Serbia has always been an obvious candidate and real membership prospects are already there. Regional stability and a positive trend in the economy will create a strong foundation for Serbia, but joining the EU is also about having viable institutions and “checks and balances”. The latter may sound old-fashioned and tends to be forgotten from time to time. An independent judiciary, a trust-based administration free of corruption and, last but not least, the value of having a free media are indispensable pillars for a country that wants to build a stable democracy. All of these are real challenges for all countries in transition, so we expect Serbia to make progress in those areas – not just for the sake of EU membership, but for the sake of its citizens.

• Why has Denmark taken such a hard line on accepting migrants and do you believe the migrant crisis will continue? - I do not think that Denmark has taken a particularly tough line when it comes to dealing with the migrant issue. Considering the situation in Europe generally, I think our policy is quite sensible. Like other countries, Denmark wants to exercise control over its own borders and the inflow of people. Regional stability and a positive trend in the economy will create a strong It is also important to distinguish between foundation for Serbia, but joining the EU is also about having viable refugees, migrants and asylum seekers, institutions and “checks and balances” which many seem to forget.The integration of foreigners –a majority of whom come and films – as well as the Danish way of life. Right now, you can find an from non-European countries – poses an increasingly tough challenge outdoor exhibition on Kalemegdan, “The Kingdom of Denmark – From for Denmark, and we try to be honest and open about this situation. Copenhagen to the Arctic” and our celebrations culminate in December One should not hide from reality! Having said that, Danes welcome all with an exhibition arranged in cooperation with the Yugoslav Archives. foreigners if they contribute to our society in a positive way. Millions and millions of refugees and displaced persons is a global • Do you believe in consolidation of the EU and is there place in the scale problem that calls for global solutions. In that sense, our planet Union for Serbia? is facing a continuing and even worsening crisis. I am happy to say that - Although the EU is facing numerous challenges and is occupied with Denmark is at the forefront as a donor and one of the world’s leading the regrettable Brexit, it should not be written off. The EU will come out contributors to the United Nations and its agencies, as well as to the stronger, still with enlargement as one of our main political priorities. All many NGOs helping refugees. However, tackling the global refugee crisis countries in this region can join the EU, provided they fulfil the criteria, should not be mistaken for individual countries doing what’s necessary and the road to membership goes through a merit-based process. It will to regulate the inflow of people. ■ • Your Excellency, is the centenary of relations still being celebrated? - Our common celebrations of a century of diplomatic relations between Serbia and Denmark have highlighted and renewed our strong ties. The Embassy experiences growing interest in Danish culture – exhibitions

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100 YEARS

By DR DALIBOR DENDA

DIPLOMATIC RELATIONS BETWEEN SERBIA AND DENMARK

Centenary Of A Genuine Friendship

QUEEN MARGRETHE II and PRINCE HENRIK

Diplomatic relations between the Republic of Serbia and the Kingdom of Denmark have a tradition dating back a century

Serbs, mostly originating in eastern SerDanish honorary consuls in Belgrade during n the years prior to the outbreak of World bia. The pinnacle of diplomatic relations that period included Miloš Petronijević (1923 War I, Ludwig Tegner operated as the honis represented by the visits of Yugoslav - 1925) and Stevan Karamata (1925 - 1936). orary Consul of Serbia in Denmark. Full President Josip Broz Tito to Denmark (1974) Diplomatic relations also continued diplomatic relations were established on and Danish Queen Margrethe II and Prince after the German occupation of Denmark, 1st November 1917, with the naming of Milutin Henrik to Yugoslavia (1977). and following the capitulation of the KingJovanović as the Serbian envoy in Copenhagen, During the 1990s, Denmark adhered to dom of Yugoslavia they continued with who arrived there on 18th April 1918. NATO and EU policies regarding the then FR the Yugoslav Government in London until The primary task of the Serbian mission Yugoslavia. Part of the Danish Armed Forces 24th May 1941, when they were broken in Copenhagen was to monitor the situation in participated in NATO’s “Merciful Angel” operaafter Denmark recognised the Independent Russia following the outbreak of the October tion in 1999, after which diplomatic relations State of Croatia, only to be re-established Revolution, but also to develop cooperation were suspended temporarily. They were after the end of World War II. During the with the Danish Red Cross in order to secure assistance for Serbia’s prisoners of war in Germany and Austria-Hungary. Denmark today openly supports the Republic of Serbia’s EU After just a few months, Jovanović accession process and funds many development programmes in the was replaced as the envoy in Cofields of biomass, biogas, wind energy and the agriculture industry penhagen by great Serbian poet and diplomat Milan Rakić. Denmark renewed after 2001 and began developing Cold War period, the foreign policy of the formally recognised the Kingdom of Serbs, in a positive direction. The most important Kingdom of Denmark was characterised by Croats & Slovenes on 31st October 1919. After Danish investments in the Serbian economy its membership in NATO (as of 1949) and the end of the war, the mission in Copenhagen are the investment of Carlsberg Group in the the EEC (as of 1973), while Yugoslav foreign was abolished, due to budgetary factors, on Čelarevo Brewery, as well as the investments policy was shaped by its membership in 8th December 1920, while Rakić ended his of Grundfos and Ergomade. the Non-Aligned Movement, but also close mission in January 1921. Denmark openly supports the Republic cooperation with NATO. Both countries were Until 1936, the envoy to Denmark was the of Serbia’s EU accession process and funds among the founders of the OSCE. During accredited Yugoslav representative in Berlin, many development programmes in the fields that period, the Socialist People’s Party and then, from 30th September 1936, the of biomass, biogas, wind energy and the agriof Denmark, which was in power from 1953 mission in Stockholm became responsible culture industry. Cooperation in the defence to 1982, viewed Yugoslavia and its politics for the whole of Scandinavia, including Denand security domain – aimed at supporting positively, as the “third way” between socialmark. During the interwar period, the Danish security sector reform, capacity building ism and capitalism. envoy in Czechoslovakia was also accredited and regional cooperation – began in 2004. Economic migrants from the Socialist for Yugoslavia, while the Yugoslav Honorary For Denmark, the Republic of Serbia is the Federal Republic of Yugoslavia began arConsulate in Copenhagen was headed by most important partner in this segment that riving in Denmark in the mid-1960s. This Henry Edgar Tegner, the son of Ludwig Tegner, is in Europe but outside of NATO structures. ■ country is today home to around 10,000 and then – from 1936 – by Torvald Olsen. The BUSINESS PARTNER

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CORPORATE JOVANA MLADENOVIĆ, COMMUNICATION MANAGER, CARLSBERG SERBIA LTD

We Are Following The Visions Of Jacobsen And Dunđerski Carlsberg celebrated its 170th Birthday this year, while its “younger cousin” Čelarevo Beer Factory has turned “only” 125, but has been part of Carlsberg for almost a decade and a half

n this interview for CORD, Jovana Mladenović, Communication Manager of Carlsberg Serbia Ltd, explains vividly that “while being a young member of the Carlsberg family, Čelarevo Beer Factory’s long tradition has indeed been the greatest similarity between the two breweries.” Both Jacob Jacobsen, founder of Carlsberg and Lazar Dunđerski, founder of the brewery in Čelarevo were visionaries of their time – they invested at the same time in the development of the beer industry and the quality of the products they marketed, and in the development of the society they lived and worked in. Jacobsen was the founder of the Carlsberg Laboratory, which has now been devoted to perfecting the art of brewing for 142 years and is today employing young scientists in this area. In addition, the founder of Carlsberg left his manufacture to Carlsberg Foundation while he was still alive, which still supervises the work of the Carlsberg Group worldwide, and ensures that one part of the company’s earnings goes to the development of science and education. Carlsberg is a unique

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international brewery in that it is owned by a commercial foundation. On the other hand, Lazar Dundjerski, Jacobsen’s contemporary, and his family are recorded in local history as major donors of educational and cultural institutions, mostly in today’s Vojvodina and Belgrade regions. All of us who are part of Carlsberg today have a common task – to live the vision of these founders, that is, to make beer for a better today and better tomorrow. • Carlsberg, which is represented in over 150 countries in the world, concerns itself with sustainable development, following its mission “Together Towards ZERO”. This is a program aiming at reducing any negative impact of the company on the environment. In what ways will this decision be applied globally and in the Serbian brewery? - “Together Towards ZERO” is part of the Carlsberg global strategy named SAIL’22, and this is our response at a time when the whole world is facing challenges such as climate change, water deficiency, and public health problems. This Program is part of our vision

for the beer industry of a better today and better tomorrow, and it includes four main ambitions: ZERO carbon footprint, ZERO water waste, ZERO irresponsible drinking, and ZERO accident culture. How are we going to do this? Through a specific plan and objectives, in a given time period, for each of these four areas. Some of the objectives are, for example, reducing the use of water in Carlsberg breweries by 50%, and reducing the level of carbon dioxide emissions by 30% in the entire beer production and distribution chain, all the way to the end users, by 2030, and using power in our breweries obtained 100% from renewable sources by 2022. In our brewery in Čelarevo, we are well into working towards the set objectives through numerous projects, one of the most recent ones being the start-up of the CO2 Filtering Facility, aimed at collecting raw CO2 produced during fermentation, which is treated and used again in the beer bottling. Indeed, the largest investment in the Čelarevo brewery is in sustainable development. This is the Wastewater Treatment Plant, which is so

designed that, beside other products in the wastewater treatment process, biodegradable substances are decomposed to create biogas, which is then used as a source of heating energy, reducing the consumption of natural gas.

indeed, pioneering in this area, but it must not be the only one, since beside strengthening individual awareness, it is important to raise the awareness of companies about their environmental impacts.

• About your brands, is good tradition, which Carlsberg obviously doesn’t lack, sufficient for the success of a brand, or is something else needed? - Tradition is mostly associated with the quality of the brand, so it is definitely an advantage. Nevertheless, keeping to a tradition doesn’t mean refraining from innovation or ignoring

• Two years ago the Carlsberg and Dundjerski Foundation was established. Among other • ZERO irresponsible drinking is an interesting concept, since it is Carlsberg that produces beverages and lives from selling them. What does it mean exactly to have a plan like this as part of the “Together Towards ZERO” strategy? - The very fact that we are a producer of alcoholic beverages means that we have a higher responsibility to point out the consequences of irresponsible drinking. To do this we communicate with consumers in several ways: on the packaging itself, and on our company’s website pages, via information on responsible drinking and the nutritive values of our products. Then, through a range of activities, both corporate and branding, and through the Brewers’ Association, we strive to raise awareness of the negative effects of drinking too much alcohol. Finally, we have expanded our portfolio by The largest investment in the Čelarevo brewery is in sustainable introducing non-alcoholic types of development. The Wastewater Treatment Plant is designed to beer. I should stress that alcohol produce biogas, which is then used as a source of heating energy abuse and irresponsible behaviour like drunken driving or minors drinking alcohol are often a result of a complex trends when it comes to consumers’ habits. things, the Foundation invests in young talent, combination of social and individual factors, In my opinion, an ideal combination would be science, and education. What are the criteria so Carlsberg cooperates globally and locally keeping the “heart of the brand” and at the governing your decisions on e.g. providing with health and behavioural professionals. same time always being relevant to consumers. assistance to young talented individuals? - For cooperation in supporting science and • Carlsberg takes a great deal of care of the • If we were to make a joke, does Carlsberg education, we chose the University of Novi community in which it operates. In Serbia, Serbia belong more to Lazar Dunđerski who Sad, three departments to be exact, Technoldonations by companies are not stimulated founded the brewery in Čelarevo, or does ogy, Economics, and the Law School. We have by benefits, so it is all the more unusual that Dundjerski belong more to Carlsberg? awarded annual grants to three generations a company that naturally aims to make a - In a figure of speech, I think the brewery of these departments’ best students so far, profit, practically gives away money? belongs to the Carlsberg Serbia team the and we intend to continue this cooperation - I believe that investment by companies in most – that is, to the staff who work in the in the following years. The selection of stusustainable development and the well-being brewery itself or in the field or the offices, who dents is conducted jointly with the university of society should not be considered as giving put a daily effort into presenting consumers departments, and the criteria are related to away money. In fact this is acting responsibly “probably the best beer in the world”. ■ the results achieved by students. towards future generations. Carlsberg is, BUSINESS PARTNER

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NATURE AND ENVIRONMENT

Ambitious Environmental Targets Nordic citizens enjoy rich, untouched wilderness, pure water and fresh air, while the Nordic countries also have a long-standing tradition of working together on matters related to nature and the environment

ordic cooperation on environmental affairs covers everything from health to the marine environment, outdoor life and sustainability. The idea is that environmental issues should not be viewed in isolation, but rather as integral parts of a greater whole. Hazardous materials are not just considered from a public health point of view, but also in terms of their impact on nature. Hazardous chemicals and emissions are dangerous not only for the environment, but also for our health. As a result, the aim is that by 2020 there will be no products on the market or emissions from production processes that are dangerous to the environment or public health. That is the highly ambitious target for Nordic cooperation on chemicals. Achieving it requires more in-depth knowledge of current chemical usage. Better databases and methods are needed to map hazardous chemicals. The results of this work will be used both in the Nordic Region and to provide input for international platforms like the EU and UN. The airborne pollutants that Nordic citizens inhale should not be at a level at which they are damaging to the environment or health. Emissions of dangerous particles from industry, cities and the transport sector must therefore be reduced. The Nordic

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countries will provide input for international agreements and EU directives, as well as working towards creating more stringent limits for emissions in a way that considers Nordic conditions. Most people agree that outdoor life and physical activity are important for good health. The Nordic countries place particular emphasis on acquiring up-to-date knowledge of physical activity among children and young people, and the significance of that on learning potential and motor functions.

HILMER

The Nordic countries also conduct work to protect the nature and environment of the Arctic Region. A strategy has been devised for activities to combat, in particular, mercury, climate change and POPs – the common designation for many organic environmental pollutants that are slow to biodegrade. According to the comprehensive 2004 Arctic Council report (ACIA), the consequences of global warming are likely to be particularly detrimental in the Arctic. This is not just the case for the environment and animal life, but also for health, construction, roads and other infrastructure. The climate in the Arctic circle is changing faster than anywhere else, with average annual temperatures rising approximately twice as fast as at lower latitudes over recent decades, while glaciers and sea ice are melting faster than previously expected. Less sea ice means that larger waves strike

In the Baltic Sea, where algae growth is severe due to eutrophication, efforts are being made to reduce volumes of nitrogen and phosphorous. Work on the marine environment is carried out in close collaboration with international organisations like the EU and the UN, and provides input for international environment conventions. NATURE AND THE CULTURAL ENVIRONMENT The Nordic Region boasts more than 100 national parks governed by the laws of nature. Humans must tread carefully in these areas and ensure they cause no harm. In 2008, Denmark opened its first national park, on the northwest coast of Jutland, while more such parks are due to follow. However, national parks make up a very small part of the Nordic Region’s huge natural areas. It is essential to protect, preserve and, if necessary,

MELONTA

the coast, accelerating the erosion process. The Region is home to more than 100 national parks The area’s indigenous that are governed by the laws of nature. Humans people will suffer major must tread carefully in these areas and ensure that economic and cultural they do not cause any harm upheaval as a result of climate change. resurrect far more areas in order to preserve bioThe Nordic countries are surrounded by enorlogical diversity for the future and counteract the mous marine areas, from the Arctic Sea and the current negative trends. Species, populations and Arctic Ocean in the north to the Baltic and the their habitats are being lost. This has prompted the North Sea in the south. All of the Nordic countries Nordic governments to work together on generatare dependent on the sea in one way or another. ing knowledge, mapping threatened species and Preserving and protecting marine life is therefore monitoring the risks posed by new, aggressively crucial to the entire Nordic Region. immigrating species, such as the king crab. The The Nordic countries have a joint objective of aim is to stem the loss of biological diversity by more sustainable management of living marine 2010 – so there is no time to lose. resources, as well as minimising the introduction The right of citizens to freely access nature of alien organisms that can damage the marine also includes natural and cultural environments eco-system. They work proactively to halt the in and around towns and cities. As such, there is dumping of environmentally harmful substances, a need to document the benefits of preserving and to limit the environmental impact of shipping.

Iceland landscape

Protecting the Arctic Region’s nature and environment

of waste. With an average life span of just 18 months per unit, that means millions of tonnes of mobile-phone waste must be dealt with every year. As a result, manufacturers are now investing heavily in recycling and reusing waste. Experience shows that it pays to recycle. “Waste is money” has become a catchphrase in this industry, which SUSTAINABLE CONSUMPTION AND PRODUCTION is particularly big in Sweden and Finland. The Nordic Region strives to be a pioneer in the developThe mobile phone example is just one of many Nordic ment of production methods that are clean, sustainable and initiatives designed to make consumption more sustainable. use resources efficiently. Goods and services must not damAnother seeks to encourage both the public and private secage the environment or health at any point in the cycle – from tors to consider environmental concerns in their procurement production to waste disposal. policies, while the Nordic Region will also continue to support Discarded mobile phones are no longer as polluting as they once and develop the joint Nordic Ecolabel. were. However, the production of a single handset produces 75kg The Nordic governments will work to meet the climate convention’s long-term target of stabilising Experience shows that recycling and reusing greenhouse gases in the atmosphere at a level that waste pays off. “Waste is money” has become a minimises the impact of human activity on the climate catchphrase in this industry, which is particularly big and the world. In this context, the Nordic Region seeks a in Sweden and Finland broad collaboration with as many countries as possible, especially the Baltic States and Russia. ■ nature in local communities in the region, while work on developing sustainable tourism is also priority for the benefit of local communities.

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CORPORATE

Q-FREE ELCOM D.O.O.

State-Of-The-Art Technology & ITS Solutions

Q-Free is a leading global supplier of Intelligent Transportation Systems (ITS), products and services that provide the funding mechanisms for infrastructureâ&#x20AC;&#x2122;s building and maintenance, as well as its optimized real-time operation. Headquartered in Trondheim, Norway, with twenty representing companies around the world, with more than 30 years of experience

-Free is recognized as a provider of state-of-the-art technology and comprehensive ITS solutions that assist companies and governments in solving important strategic and operational needs and challenges of urbanization and growing transport needs. Fields in which we operates and contributes in different countries are Tolling (Truck tolling, Electronic toll collection, Enforcement, Con-

gestion charging); Parking (Parking guidance systems, Parking access control); Infomobility (Weigh in motion, Traffic count and classification, Cycle and pedestrian classification, etc.); Inter-Urban Traffic Management (Truck parking, Traffic management center solutions etc.); Urban Traffic Management (Traffic controllers and Traffic light system components, Adaptive traffic management, Centralized urban traffic system monitoring and control). In Serbia, Q-Free operates as Q-Free Elcom since October 2013. Our team is made up of experts in the field of electronics, telecommunications,

programming and traffic engineering. Besides acting at the ITS market, our R&D department develops complete systems, including both hardware and software, for urban traffic management and control, access control and management of car parks and garages, and for other enforcemant and access control needs within ITS. â&#x2013; For more information visit our website, https://www.q-free.com/ Adress: 41h Sinjska Street, 11050 Belgrade, Serbia; Phone: +381 1134 75300 E-mail: officeelcom@q-free.com Phone: + 381 63 469 808

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FEATURE

By MAGNUS ITLAND

HOW HAVE NORDIC COUNTRIES ACHIEVED SUCH A HIGH QUALITY OF LIFE?

Peace, Equality And Trust

Fyodor Dostoyevsky said something like the degree of civilisation in a society can be judged by entering its prisons. Well, we did just that. Together with experienced, recently retired American prison superintendent James Conway, and a documentary crew, we visited four different correctional facilities in the Nordic countries. One in Finland, two in Sweden, and one in Norway. Here's a clip from him visiting the Norwegian prison in Halden, dubbed "the most humane prison in the world"

n terms of money, only Norway is really ridiculously wealthy, with an income per head higher than the U.S. and Hong Kong. The rest of the Nordic countries are reasonably well off, but not in the top ten. They are, however, very pleasant places to live for ordinary people, and I think this is what the question is about. There are three things that I will focus on, which I believe are essential to this kind of living: peace, equality and trust. Peace is the easiest to understand, but also the hardest to control. If another country absolutely want to attack yours, it cannot be avoided: Denmark, Norway and Finland were all involved in World War II, much against their will. Apart from that, however, the Nordic countries have lived in peace for 200 years now. And, most importantly, they don’t have

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civil wars. The nations are small enough that they do not contain large ethnic groups who don’t get along. Nobody is struggling to gain independence from their country. Some areas with a regional culture have partial autonomy, basically meaning that they are as free as they want to be. There is nothing that poisons a nation more than civil war. Equality is a matter of culture. You cannot just make a law saying that all people are equal and then immediately expect people to behave like that. It takes time to work its way into culture. I am not sure it is even possible in countries where people believe in karma, that your birth is a reward or punishment for past lives. This idea is completely alien to the Nordic peoples, who see life as an opportunity, not as a judgement. Everyone should have the same opportunity, as far as

possible, and then we choose what to make out of that opportunity. Fair elections and fair courts of law are institutions that help stabilise the whole of society, and their effects on society are cumulative: For each generation that these institutions exist, they become stronger and society becomes freer and more prosperous. It takes time for people to get used to the fact that everyone is equal and you won’t get preferential treatment for being a man or a landowner. But over time it sinks in, and people start taking it for granted. Nordic people are still in that process, but have been on the road longer than most other countries, and it shows. Nordic men and women aren’t completely equal in everyday life, even though they have equal rights. Women are still the ones who give

lived through terrible wars and civil unrest. It criminals, but they are rather few, and lately birth, and men are still physically stronger, is uncertain how large-scale immigration will immigrants have taken over much of this niche. while women are more beautiful. Statistics impact on the Nordic countries in the future, If a Scandinavian decides to trust another show that men on average earn more money, but the short-term effect will most likely be Scandinavian, there is a very high chance that while women spend more. In other words, most less trust and less equality. Hopefully, the he is right. Because of this trust, people are women live with a man who earns more than newcomers will gradually see the benefits of proud to be members of the society and want her and pays most of the household expenses, the Nordic model and adjust their own values to prove themselves reliable. So it reinforces freeing her to spend more of her income on in the same direction. itself once it is in place. But it is very hard herself. We don’t know if this will continue into I don’t think the Nordic model can be to get started. Some believe that the harsh the future. Marriages are less and less comimplemented in a very large nation, because northern climate forced people to rely on each mon, but many women still prefer to live with a man, just without the paperwork. This makes it easier to move on to The most difficult part to explain about our societies is the high a better man if they start to dislike level of trust. It is partly caused by the equality, and partly by the one they have, as often happens. being ethnically homogeneous, probably. Most people in a Nordic (The vast majority of break-ups are country feel that they can trust their countrymen initiated by women.) The most difficult part to explain there are simply too many large groups of other: those who did not cooperate died out. about our societies is the high level of trust. people who hate each other and don’t want Even now it is common to leave doors and This is partly caused by equality, and partly to be part of the same society, but I think all cars unlocked in the countryside, but not in by being ethnically homogeneous, probably. nations should at least strive for free electhe cities. Trust does not necessarily extend Most Nordic people feel that they can trust tions and independent courts that cannot to immigrants from faraway countries, and their countrymen. Obviously there are some be threatened or bribed. ■ for their part they trust no one, having often who are not worthy of trust: we have career

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INTERVIEW

Making Serbia A Boring Country It is all about utilising local resources and entrepreneurial spirit, investing in education, intellectual capital, innovations, added value technologies and industries with the goal of creating a thriving and sustainable business environment – Pertti Ikonen

H.E. PERTTI IKONEN, AMBASADOR OF FINLAND

n this interview for CorD Magazine, Finnish Ambassador Pertti Ikonen discusses the significance of domestic entrepreneurship for the success of economic reforms, reveals that new education reforms in Finland imply that children develop leadership qualities, but also empathy, and explains how, alongside membership in Partnership for Peace and the EU, Finland remains out of NATO.

Serbia and the region. This means that the business environment is improving and that Serbia is getting closer to EU standards.

• Finland has a reputation as a country with a high-quality education system. In 2016, Finnish comprehensive schools introduced a new core curriculum focusing on new pedagogy, new learning environments and the digitisation of education. What has been the goal of this reform? • Excellency, you once said that Serbia would become a “boring - Education is a national priority for Finns. We invest a lot in our eduNordic country” if it continues with reforms. In what areas do you cation system and always strive to improve it. The new curriculum feel that they are most needed? focuses on new pedagogy and new learning environments, encouraging - At the Seminar “Sustainable and Innovative Businesses”, organised problem-orientated learning, interaction and responsibility-taking. by the Embassy on 21st September, we continued the discussion that Renowned Finnish educator Pasi Sahlberg believes that schools started a year ago at the seminar “Nordic Innovative Businesses in should teach children skills that are useful in any vocation or situaSerbia”, organised in cooperation with the Nordic Business Alliance. tion, such as communication, interaction, leadership and empathy. The motto of this year’s seminar was exactly “What are the next In our fast-changing world, we need to be visionaries more than steps to make Serbia a ‘boring Nordic country’”? This is all about ever, as most vocations and jobs that be filled by today’s school-goers I am glad to see growing interest among Finnish companies in doing will do not even exist yet.

business in Serbia and the region. This means that the business environment is improving and that Serbia is getting closer to EU standards utilising local resources and entrepreneurial spirit, investing in education, intellectual capital, innovations, added value technologies and industries, with the goal of creating a thriving and sustainable business environment. It is an ambitious goal, but the Embassy and Finnish/Nordic companies are supporting Serbia in improving the business environment and making it another “boring Nordic country”. • Your predecessor didn’t manage to bring company Sisu Auto to FAP in Priboj. Will you succeed in enticing some Finnish investors to Serbia? - I truly hope there will be more Finnish investments in Serbia, as our companies bring their knowhow and intellectual capital alongside investments. That is why it is a pity that negotiations with Sisu Auto did not continue. At the same time, I am glad to see growing interest among Finnish companies in doing business in

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• Considering that NATO membership is a topic discussed a lot in Serbia, what are the arguments of Nordic countries Finland and Sweden for not being members of that alliance? - Finland has maintained a strong defence through its mandatory conscription system. In a crisis situation, more than 300,000 soldiers can be called up to defend the country. Cooperation with NATO started when Finland joined the “Partnership for Peace” programme, which provided the basis for far-reaching synchronisation of the military preparedness of Finland and NATO. Finland is not a member of military alliances, but maintains the option of applying for NATO membership. As a member of the European Union, it is bound by the EU constitution to assist other member states if they fall victim to armed aggression. At the moment, Finland is actively participating in developing the new EU defence structure. Finland is also a provider of international security, with over 50,000 Finnish soldiers having taken part in UN peacekeeping missions since 1956. ■

NORDIC COOPERATION

Ahead Of EU Standards Nordic cooperation nowadays includes almost all policy areas – from tax policy and security affairs, to cultural issues. Cooperation takes place both through formal organisations and informally, for instance at the level of non-governmental organisations. Intergovernmental Nordic cooperation is coordinated by foreign ministries

The basis for cooperation is formed by the Treaty of Cooperaordic cooperation already has a history spanning more than 65 years, with the Nordic Council having been established in 1952. tion between Denmark, Finland, Iceland, Norway and Sweden, i.e. the Over the years, cooperation has evolved and undergone structural Helsinki Treaty (1962), which has been amended several times, most changes. All five Nordic countries – Denmark, Finland, Iceland, recently in September 1995. Norway and Sweden – as well as three autonomous territories – Åland, There are about sixty other joint Nordic agreements. These include, the Faroe Islands and Greenland – participate in Nordic cooperation, while for example, the Protocol concerning the exemption of nationals of the cooperation with the Baltic states has also increased in recent years. Nordic countries from the obligation to carry a passport (1954), the The Nordic countries share a joint history, a similar culture and Agreement concerning cultural cooperation (1971), the Nordic Envisocietal systems, as well as Nordic languages. The Nordic model is ronmental Protection Convention (1974), the Agreement on municipal built largely on a tradition characterised by the strong rule of law, accross-border cooperation (1977), the Nordic Language Convention tive popular movements and civil society organisations, freedom of expression, The Nordic countries share a joint history, a similar culture and equality, solidarity and closeness to nature. societal systems, as well as Nordic languages. The Nordic model is Nordic cooperation can be described built largely on a tradition characterised by the strong rule of law, as successful. The Nordic countries have active popular movements and civil society organisations, freedom been pioneers on many levels and have of expression, equality, solidarity and closeness to nature achieved results that the European Union has yet to attain. The most important accomplishments of cooperation include the (1987), the Agreement Concerning a Common Nordic Labour Market Nordic waiver of passport control, which was introduced in the early (1982), the Agreement on social security (1981), the Nordic Convention 1950s, the common labour market (1954), the language agreement on Social Assistance and Social Services (1994) and the Agreement on (1981) and the agreement on social security (1982). Admission to Higher Education (1997). The aim is to make the Nordic region a single area, where each individual The joint Nordic institutions – of which there are about 20 in the various citizen can move about easily. Individual citizens must be able to study Nordic countries – constitute an essential element of Nordic cooperation. and work across Nordic borders freely, without losing benefits earned The Nordic Investment Bank (NIB) was established by the Nordic or without double taxation. In addition, individual citizens must receive Council of Ministers; its membership has expanded to cover the Baltic services in their mother tongue. This objective is pursued further by the states of Estonia, Latvia and Lithuania. dismantling of remaining border crossing barriers. Through their regional field-specific organisations and information The main official bodies of Nordic cooperation are the Nordic Council (NC), points, the Norden associations carry out Nordic civil society cooperafounded in 1952, and the Nordic Council of Ministers (NCM), founded in 1971. tion and provide ‘Hello Norden’ advice at border crossings. ■ BUSINESS PARTNER

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NORDIC SOCIETY

By JENNY B JORKLUND AND URSULA LINDQIST

Diversity In Nordic Culture And Society “Diverse” is arguably not a term one would have used to describe Nordic society and culture prior to the immigration boom of the turn of the millennium. After all, the region’s modern welfare states, built up during the decades following the Second World War, assumed common sets of national values that varied only somewhat within the region as a whole

hese include a commitment to social issues, which have bolstered claims of tures have arguably rendered visible a equality (with a particular focus on Nordic exceptionalism and moral political significant and longstanding gap that gender and economic class), politi- leadership. For example, Nordic delega- has existed between the Nordic welfare cal transparency, public support of tions took early and decisive stances societies’ lofty ideals and rhetoric on the arts and culture, a fundamental human right against apartheid in Rhodesia (known one hand and their actual policies and to access nature (along with the political, today as Zimbabwe) and South Africa practices on the other. The Nordic countries have for decades social and individual responsibilities to take and have played roles in negotiating lingered at or near the top of global indexes care of it), a universal right to education and peace in armed conflicts from the Congo to the Balkans to the Middle East. Some on human development and gender equality health care, a universal right to access the labor market (in the form of generous family Nordic countries also have contributed (UN Human Development Reports 2015) – leave policies, subsidised day care, and job training and placement Denmark and Norway accepted more refugees per capita than other services), and an expectation that European nations under the United Nations Refugee Convention labour unions and corporations cooperate on pay, benefits, and workers’ rights. Under the auspices of the more foreign aid as a percentage of GDP rankings that have attracted immigrants to the Nordic region in record numbers in Nordic Council of Ministers in Copenhagen, than significantly larger industrial nations. the five Nordic nation states – Denmark, Furthermore, in the decades leading up recent decades. It is this ever-widening gap between the Nordic region’s branded ideal Finland, Iceland, Norway, and Sweden – have to the Syrian refugee crisis that began and its sociopolitical realities that defines cooperated since 1971 on a wide range of in 2015, Sweden, Denmark and Norway accepted more the dimensions of diversity in Nordic culture public policy issues, from work permits to sustainability initiatives to funding for refugees per capita than other European and society in the opening decades of the nations under the United Nations Refugee new millennium. ■ artistic and scholarly endeavours. Furthermore, Nordic-“branded” social Convention (UNHCR 2014; 2015), a move democratic values have been reinforced many have credited with destabilising Abstract from the book the Nordic welfare model. The resulting through international recognition of the “New Dimensions of Diversity Nordic countries’ stands on human rights changes to Nordic societies and culin Nordic Culture and Society”

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NORDIC BUSINESS ETIQUETTE AND CUSTOMS

Facts Over Emotions Nordic countries have similarities when it comes to business etiquette and customs. Generally, the use of emotions, exaggerated gestures and physical contact are usually unwelcomed in business communications. Facts and technical details are appreciated. Punctuality is regarded as a sign of reliability and arriving on time is expected

ordic people are characterised by their Lutheran heritage. They are disciplined and have a strong work ethic, while egalitarianism is the most dominant social value in all Nordic countries. Equality, consensus and compromise are ingrained into business and social life, while Nordic societies are influenced strongly by the concept of the welfare state, with a high level of public social welfare supporting all citizens. Gender equality permeates throughout the administration, business culture and interpersonal relationships. Products are remarkably often aimed at qualitative mainstream, meaning goods in high demand produced in large volumes, but simultaneously of a high standard in terms of quality and design. Deliberate and ambitious actions to support sustainable development are integrated at all levels of business, with detailed process analyses in terms of energy consumption, raw materials, chemical use, recycling, transparency, trust, honesty etc. In international terms, Nordic countries have very low corruption! It is acceptable to treat business partners to dinner and simple gifts, like boxes of chocolates or similar, but not expensive items, luxury trips etc. A Nordic handshake should be firm and fast, while Nordic people are often uncomfortable with cheek kissing and too much hugging. Generally, a very high standard of spoken English exists in the Nordic countries, which often top world ranking lists when it comes to welfare, the economy, production, gender equality or personal happiness. The adoption of internet technologies and internet penetration in Nordic countries are among the highest in Europe. In addition to the aforementioned similarities, there are also some visible difference between the Nordic countries. Dane’s have a long tradition as a trading nation and are known as skilled and tough negotiators who prefer things to be done the Danish way. The hardworking Finns are brought up in disciplined knowledge- and performance-orientated schools, which has an impact on the business culture – gathering information is taken very seri-

ously, ensuring managers are knowledgeable and well-prepared to make quick decisions. Employees show great solidarity with their company, provided they feel justified. Company traditions are important, and people are often sceptical of the value of reorganisations and modern management methods. Norwegians will only do business with those they trust, and transparency is crucial in establishing this connection. You must be willing and open to discuss all aspects of yourself, your colleagues and your business with a potential Norwegian client. Norwegians appreciate those who are reliable, respect deadlines and honour every meeting with prior research, extensive prep and timely communication. If you are late, unreliable or display any other lack of professionalism, this will likely result in trust being lost and the relationship ending. Business communication is direct, with no undue emotion, small talk or flamboyant body language. When it comes to face-to-face negotiations, employ a respectful attitude from start to finish. Icelandic businesses have been encouraged to incorporate CSR into their strategies, which is now a hot topic. The Icelandic banking crisis resulted in reduced confidence in banks and other large companies, which now face demands for greater transparency locally. Although the standards of Icelandic companies on issues like human rights and environmental protection are high, good and ethical standards of corporate governance were not particularly in focus prior to the banking crisis. Swede’s follows applicable rules and regulations. They are practical and seek a result that has practical implications. Making an agreement that is successful in the long term is more important. Swedish businesspeople have firmly fixed ethical norms and prefer making decisions by consensus, while hierarchies are shallow. When it comes to the economy, macroeconomic stability is synonymous with the Nordic countries. Any analysis of macroeconomic indicators demonstrates that Nordic countries are among the world’s richest and most developed, with high living standards that improve constantly.The Nordic model includes support for a welfare state aimed specifically at enhancing individual autonomy, promoting social mobility and ensuring the universal provision of basic human rights. Serbia also has certain characteristic national and regional business practises.

Despite some specificities, the business culture in Serbia is very similar to the dominant European business culture. On the other hand, when it comes to the macroeconomic situation, Serbian lags behind the EU average in almost all important indicators. This difference is even greater when it comes to comparing Serbia with Nordic EU countries: Denmark, Sweden and Finland, which are all superb examples of exceptional business culture and macroeconomic stability. Analysis emphasises the similarities between the countries of this region, but also differences that did not prevent strong cooperation and the formation of the Nordic cluster. These examples of different business practises and culture serve to highlight several areas that must be considered when doing business internationally. Doing business abroad brings cross-cultural challenges for international businesses. Understanding a country’s business culture and work ethic means showing respect for your colleagues or business associates, and represents an important ingredient in establishing relationships and long-term cooperation. Intercultural sensitivity is today necessary, because it represents the essence of professional behaviour that is the key to good business success. Cross-cultural understanding is an important tool for any international businessperson, company or organisation doing business abroad to acquire. Examples highlight several areas that must take into consideration when doing business internationally and that will help avoid misunderstandings and promote better communication. The cooperation demonstrated by the Nordic countries should serve as an example to Serbia and all countries in the region as a model for organisation, connections and operations, as well as representing a successful model that could be implemented in this part of Europe. Connecting different countries in the European Union is certainly one way to improve all forms of cooperation. In the future, the integration process and globalisation will be reflected in growing regional economic activity. To speed up these processes that contribute to macroeconomic stability, knowing and respecting business customs and the culture of foreign business partners are part of business ethics and the kind of professional behaviour that will contribute to better collaboration and the successful realisation of common interests. ■

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INTERVIEW

High Price For Staying Outside The EU Serbia is dependent on the EU market and EU products – neither Russia, China nor anyone else is in a position to offer a realistic alternative

H.E. ARNE BJORNSTAD, AMBASSADOR OF NORWAY

orwegian Ambassador to Serbia H. E. Arne Bjornstad belongs to the group of diplomats who believe that Serbia has become a pillar of stability in the region, and that President Aleksandar Vučić deserves Europe’s support in its efforts to improve cooperation among the countries of the region. Ambassador Bjornstad has repeatedly spoken publicly about his belief that regional cooperation, alongside Euro-Atlantic integration, represents the key to stabilising the situation in the Western Balkans. Although he comes from a country whose citizens have voted twice against joining the European Union in referenda, CorD’s interlocutor believes that membership is actually the best solution for Serbia. He adds that Norway pays a price for staying out of the community, even though it has strong economic ties and cooperation under the framework of the Schengen zone. Most

tion had won, as there is a broad consensus on Norway’s membership in the European Economic Area and the Schengen cooperation, as well as close cooperation with the EU in a number of other fields without joining the Union.

• It is noticeable that you encourage Serbia’s membership in the EU although Norway is not a member. Why is that? - We support the Serbian government’s decision to join, but the choice is Serbia’s own. That being said, Serbia is dependent on the EU market and EU products and neither Russia, China nor anyone else is in a position to offer a realistic alternative. Norway is in many ways in a similar position, but with a much stronger economy and with less importance given to agriculture. Norway is a great net financial contributor to the poorer EU member states, while Serbia is a recipient of EU funds and would be an even greater one as a member. The short answer is that Norway is a great net financial contributor to the poorer EU Norway is paying a high financial price for staying outside the EU, which Sermember states, while Serbia is a recipient of EU funds and would bia cannot afford to pay.

be an even greater one as a member

Norwegian citizens support this kind of cooperation. However, the campaign that preceded September’s parliamentary elections saw several parties, from the left and the centre, seeking a review of relations with the EU and a complete breakaway based on the Brexit model. Still, the most votes were secured in the elections by Norway’s governing right-wing bloc, headed by Conservative Prime Minister Erna Solberg. • On the eve of your country’s recent parliamentary elections, one of the topics was reviewing relations with the European Union, with which Norway has strong ties despite not being a member. In your opinion, how will election results impact on that relationship? - The election results will not affect Norway’s relationship with the EU, and I don’t think it would have been otherwise if the opposi-

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• Telenor is the best-known Norwegian investment in Serbia. Do you see any other areas in which investors from your country could be interested? - We have seen increasing interest from Norwegian companies, mostly in the engineering and environmental sectors. This trend continues. • Norway is one of the countries to which Serbian citizens emigrate, especially doctors and medical staff. To what extent has Norway remained open to immigrants, considering the migrant crisis that has hit Europe? - Norway’s immigration policy is “strict, but just”. Refugees are, of course, accepted based on their need for protection. For others, their skills or family relations to legal residents will be decisive, with the exception of EU/EEA citizens that benefit from free movement within the EEA area. ■

100 YEARS COMMEMORATING 100 YEARS OF NORWEGIAN-SERBIAN DIPLOMATIC RELATIONS

Fjords Of Isidora Sekulić

Norway and Serbia this year celebrate a century of diplomatic relations that were established during and after World War I, when the Norwegian army assisted Serbian soldiers. On one occasion, in 1915, Norwegian colonel Carsten Angel said “We arrived with little respect for Serbian soldiers, and we return full of admiration. We’ve seen a calm, confident, patriotic people. We have found the best soldiers in the world – brave, obedient, sober, resilient, willing to sacrifice their lives for their country and national idea.”

ust a year previously, Serbian novelist, essayist, adventurer, polyglot and art critic Isidora Sekulić wrote the book “Letters from Norway”, in which she describes its beauty, particularly that of its fjords, with much love and feeling.

HERE ARE SOME EXCERPTS FROM HER BOOK Very superficially stated, the fjord is a long, wider or narrower body of water in a stone gorge; but it is very complicated to determine where the particularity of these two elements lies. The fjord cuts into the earth for a length of a few hundred metres, over an area of several hundred kilometres, and curves just like a river. But in many places a fjord is so wide you have the impression you’re seeing a sea; while in other places it is closed in by walls and you have the impression of a lake; and finally the mountain massifs can come together fully, giving a fjord two more or less parallel banks, and the appearance of a river. But fjords in all forms are tidal, and thus possess all strange phenomena and dances of the sea. And as you cross in an unusually narrow way from the open sea to the very heart of the country, you come across all degree of coastal and continental climates, and all characteristics and peculiarities in natural phenomena and the way of life in the most contrasting climatic conditions. Finally, one of the most important circumstances, which interprets magnificence, nonvulgarity, even some sublime inaccessibility of

these waters, lies in the rock walls that hem in the fjords. The mountains are almost exclusively very tall, and don’t have what would usually be understood as ‘steep walls’, rather a sudden perpendicularity that’s absolute and scary in its verticality. The fjords are, thus, mostly shoreless bodies of water, and in that, I would say, is the mystery of the picture and the mystical life around these waters. There are places actually located on fjords, but they are so dispersed that you travel for hours and don’t find a bank where you could place a foot on dry land. The imposing stone walls, straight as candles and often as deep under the water as they are high above it. And if you ride a boat on a fjord and move it right next to the rock, then you have the terrible experience of grabbing rock and being unable to stop anywhere, and through clear water you view the black continuation of the rock down into the depths, and it is unconsciously in your senses and in your awareness, because you cannot see or even imagine where and what that terrible wall stands on... ... But to get the strongest understanding of the fjord it is necessary to imagine all the calmness and restlessness of its picture in strange, unique northern lighting. I don’t precisely know what those northern lights are. Are they the traces of the sun that never fully sets, are they the souls of things that can never completely sleep? Through the fog you see, through the darkness you see, and in the sky there is always a lithium colour... The waters take on those brilliant metallic shades that are so

strangely composed of warmth and cold. The sky takes on the colours of fruit and flowers. And the air that strange visible translucency that causes the eyes to strain, enchanting the sense of sight and raising all curtains to distance. And then you see everything with the whole palette of colours, lines and some strange sleepy motion, and you need simply shift and, through that intense, new light, you will suddenly see how the earth spins... ... And that all stands completely untouched and spared from the banality of man’s life … and if somewhere, on bare stones, squats a little house or an empty fisherman’s cabin, they are so lonely that they even intensify the silence of the fjord and the passion of silence. On the shores one does not lie, bathe or fish, in the water one does not throw food leftovers and old rags, there is no bridge, there are no barrels and chests, no human profanities. Just ships and boats floating quietly, and when passing their crew do not smile and greet, but do resemble aquatic birds that could soar into the air momentarily. On Sognefjord there is so much beauty that a man grows tired of being tired, wanting everything to be brought into the eye and received in the soul... ■ Isidora Sekulić (16th February 1877 – 5th April 1958) was a Serbian prose writer, novelist, essayist, adventurer, polyglot and art critic. She graduated from the pedagogical school in Budapest in 1892, earning her doctorate in 1922 in Germany. Her travels from Oslo through Bergen to Finnmark resulted in the 1914 meditative travelogue Pisma iz Norveške / Letters from Norway.

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CORPORATE INGEBORG ØFSTHUS, TELENOR CEO

Digital Push For Growth

The further development of e-Government in Serbia is an important step in the digitisation process. We at Telenor can share knowledge and best practises, which can support the further development of the market. With the talent that Serbia has, we see digitisation as an opportunity to create new jobs and push the whole society forward

e spoke with Ingeborg Øfsthus, Telenor CEO, about the Nordic spirit, the goals of the Nordic Business Alliance and Telenor’s expertise in digitisation. • How much of the Nordic spirit of business and culture has Telenor been able to transfer to Serbia throughout all the years that the company has been doing business on the Serbian market? - Personally, I don’t find it easy to talk about our influence - I always prefer others to do so. But what I have noticed on many occasions is that the image of Norway and the Nordic spirit has been like the wind at our backs. Serbs see Norway as a country of high values and working ethics. And Telenor is one of the biggest Norwegian companies, with those same principles at the core of its corporate culture. Norway is perhaps not the world’s biggest country, but it has an extremely positive image. The same goes for Telenor – I lead a business unit that is one of the smallest within the Telenor family, but our influence and the huge impact we make every single day in Serbian society does not equate to our size. Having that starting position, along with our dedicated work in different organisations, has placed us high on the list of desired participants in constructive dialogue with the Government. • What do you see as necessary preconditions for the Government to realise its planned acceleration of the digitisation process?

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- What is really important going forward is that digitisation remains high on the Government agenda, as has been the case to date. For the public sector, this means more efficient interaction with citizens and, at the same time, more efficient business. For a real step-up in the digital environment we need to enable people to have a digital identity, just as they have their physical identity in the physical environment. We do see progress – the draft Law on electronic documents, electronic identification and trust services in e-commerce has been adopted by the Government and is expected to be approved by the National Assembly very soon. With the talent that Serbia has, we see dig-

best practises that can support the market’s further development. Our key recommendation is to develop all e-services simultaneously on mobile platforms as well - mGovernment. In Serbia, mobile phone penetration in relation to the number of citizens stands at 129%. This percentage will only increase, and the trends in Serbia – according to the Statistical Office of the Republic of Serbia’s report on ICT usage in the country in 2016 – show that the internet is more frequently used on mobile phones than on computers. Apart from flexibility, mobile devices offer numerous advantages, such as the possibility of introducing personalised electronic services.

Our key recommendation is to develop all e-services simultaneously on mobile platforms as well itisation as an opportunity to create new jobs and push the whole society forward. • How can companies like yours help the Government when it comes to introducing m-government? - The further development of e-Government is an important step in the digitisation process. As part of the Telenor Group, which has operations in 12 European and Asian countries, we believe that we can share knowledge and

• What can the Nordic Business Alliance do to entice more investors to Serbia’s digital sector? - Exactly what it has been doing so far, with even more passion and devotion - promoting Serbia as great investment destination. At Telenor Group we have organised events with such a goal on several occasions. What we can also do, as the biggest single investor in Serbia, is to offer our knowledge and experience of other markets, in order to improve the business climate in Serbia even further. ■

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INTERVIEW

The Importance Of Being A "Front Runner" The signal provided by the European Commission declaring Serbia and Montenegro as the "Front Runners" in a Balkan EU-integration context will serve to accelerate the arrival of foreign investment in Serbia, as well as integrating the country into global trade patterns – Jan Lundin

H.E. JAN LUNDIN, AMBASSADOR OF SWEDEN

wo months after the opening of the retail outlet of well-known Swedish brand IKEA, which gained economic and political importance in Serbia, Swedish Ambassador Jan Lundin emphasises in this interview that Belgrade not only gain a retail store, but also became IKEA’s headquarters for Southeast Europe. Ambassador Lundin does not believe in the thesis that Serbia is a potential crisis hotspot and would rather talk about Serbia as a country that’s on the path of economic growth, membership in the European Union and establishing better relations with the other countries of the region. • Excellency, you are already “local” in Serbia, as this is your third time serving in Belgrade, and you finally succeeded in bringing IKEA to Serbia. Were you surprised by the importance – not only economic, but also political – given to the opening of IKEA’s first retail outlet in Serbia? It’s not often that an IKEA store is opened by a national president.

al of not only an IKEA store, but also IKEA’s headquarters for Southeast Europe, is a sign of this happening. • What next? What are the chances that IKEA will develop from retail to partnering that part of the Serbian economy that deals with wood processing or furniture production? - I believe the chances are good, but hard work lies ahead; IKEA is a global company that purchases furniture on the basis of hard calculations. Still, there are plenty of arguments in favour of Serbia as a sourcing country, and there is already the happy case of a factory in Ćuprija that provides “Oklagije” and some other items.

• As someone who knows Serbia well, do you believe there is a period of stabilising relations in the region ahead of us, or new tensions, which have led to some analyses identifying the Western Balkans as a possible crisis hotspot? - I believe Serbia is now destined for a long period of sustainable economI believe Serbia is now destined for a long period of sustainable ic growth. The signal provided by the economic growth. The signal provided by the European Commission European Commission last week delast week declaring Serbia and Montenegro as the “Front Runners” claring Serbia and Montenegro as the in the Balkan EU-integration context will serve to accelerate the “Front Runners” in the Balkan EU-integration context will serve to accelerate arrival of foreign investment in Serbia, and integrate the country the arrival of foreign investment in Serinto global trade patterns bia, and integrate the country into global trade patterns. A good example that - To be honest, I hadn’t expected the very positive article writalready exists is Swedish company Tetra Pak, which has for many ten by your Head of State just a few days before the opening, years had one of its biggest factories worldwide in Gornji Milanovac, but I certainly feel the arrival of IKEA does hold symbolic sigand which recently doubled the production capacity at this factory. nificance, as well as being one more step in reinforcing closer economic ties between Sweden and Serbia. For me personally, • Do you believe the countries of this region can ever attain the IKEA represents a nostalgic “what might have been?” memory, level of mutual understanding that the Nordic countries now have? as it was in 1991 that I went as a Swedish representative to vis- Absolutely, but it is a long-term process. Sweden and Denmark didn’t it the plot to the north of Belgrade that had then been identialways have good relations, and used to regard each other with suspified as the site to establish an IKEA store, planned for 1992. We cion. Today we are working closely together on the world scene. I beall know what happened instead, and Serbia – due to wars and lieve the same is certainly possible in the post-Yugoslav space, and sanctions – lost nearly a generation’s worth of economic develyou already have networks and organisations facilitating this. In a opment. Catching up is always possible, however, and the arrivglobalised world, neighbours are a factor of trust and cooperation. ■

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100 YEARS CENTURY OF SUPPORT AND COOPERATION

Centennial Friendship November 2017 marks the centenary of the establishing of diplomatic relations between Sweden and Serbia. It was a hundred years ago that the Kingdom of Serbia decided to open a mission in the Kingdom of Sweden, and the oldest document testifying to this is a decree by which the government in exile in Corfu, on 1st November 1917, named Bogoljub Jevtić to the post of secretary of the mission, for which the Red Cross allocated an additional 3,000 krona

hat money was used to finance the also helped Serbia with devotion in World products to Serbia’s agricultural market, in equipping of a new medical mission War I. Their charity was particularly pro- April 1914 the Swedish Chamber of Commerce hired engineer Eric Neumann as its to Serbia during the Second Bal- nounced in the difficult days that followed kan War. This mission, comprising the occupation of Serbia. Skilfully utilising agent. Neumann had until then worked, the possibilities provided by Sweden’s since June 1909, as the technical director four doctors and four nurses, worked in the 1st surgical reserve hospital in Belgrade from mid-July to the The new medical mission to Serbia in the Second Balkan War, end of August 1913. The money comprising four doctors and four nurses, worked in the 1st surgical allocated by the Swedish Red reserve hospital in Belgrade from mid-July to the end of August 1913 Cross was also a contribution of the Hultqvist family, and Draga of the Čukarica sugar factory. Examining Hultqvist provided special assistance dur- neutral status, these friends of the Serbian ing the 1912-1913 period, when she helped people regularly sent aid – in the form of the political and economic importance that Serbia had gained after the Balkan food, clothing and footwear – to Serbian the patriotic organisations Kolo of Serbian Wars, the Swedish government decided Nurses and Serbian Mother. In March 1913, prisoners of war and internees in Germany to establish direct non-residential diploDraga published an inspired article in daily and Austria. During 1916, Draga led the work newspaper Svenska Dagbladet about the of the section tasked with helping Serbian matic relations with Serbia on 4th April importance of helping the Serbian army. prisoners of war. Showing appreciation for 1914. At the beginning of May, the Serbian Draga also represented Serbia at the VI their efforts and devotion, the new Serbian government issued an agreement to the Congress of the International Alliance for government awarded these volunteers with Swedish Ambassador in Vienna, Joachim Beck-Friis, but he did not manage to subWomen’s Voting Rights, held in Stockholm the highest decorations. After several attempts, the Kingdom mit his accreditation prior to the outbreak in June 1911. Apart from that, together with Jelena Lozanić, Draga also represented the of Sweden finally opened a general hon- of the Great War that July. Thus, the establishing of direct diploSerbian Women’s National Alliance at the orary consulate in Belgrade in August International Women’s Congress, which 1911. The post of the General Consul was matic relations between the two countries was also held in the Swedish capital in entrusted to Belgrade merchant David L. came with the opening of the Serbian mission in Stockholm. ■ September of the same year. Both consuls Simić. Endeavouring to bring its industrial BUSINESS PARTNER

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SWEDISH PERSONALITY

Are Swedes Really Passionless? Ask anyone in the world to describe a typical Swede, and there's a safe bet you will soon be hearing about blonde, beautiful women, passionless and perhaps Vikings with big beards and pointy helmets Sweden didn’t start or join any war for more than 200 years. It’s a war-free country since 1814. Look at that likes of the Germans or Americans or, well, most other nations on this planet. Swedes hate wars so much that they even send some of their own people to conflict countries to tell them about the benefits of not having war. Those diplomats have achieved international success and recognition. And when you speak with Swedes about politics (which is unlikely to happen, unless you’re a politician), you will see a shine in their eyes when you mention names like Dag Hammarsköld. One way for Sweden to stay out of conflict has for many years been to remain free from alliances like NATO. They also considered it unnecessary to make investments in a strong defence. Why buy arms if there’s no one to shoot at? Now that the geopolitical climate has got a bit rougher, Swedes decided it might be good to join the side that appears to be stronger – it’s a political path they already traversed successfully in the past.

hile it is true that Sweden has not been at war for 200 years and that most of their political debates lack the passionate arguments and conflict of many of their Anglo-Saxon counterparts - is it true that Swedes are less keen to argue with one another or to start a fight? Anyone who says Swedes lack passion is wrong. They’ve just concentrated it in very specific areas, like minimalistic home decoration, drinking games, midsummer celebrations and practising silence. Swedes take care of their own agenda. They don’t want others to Yes, Swedes may come across as shy. comment on it. They will also not comment on yours. It’s your life If in the subway or on a bus in Sweden, and they respect your personal integrity you will notice it’s rare for two unfamiliar Swedes to sit next to each other as long Although Swedes have been strictly sticking to their “free from as there is at least one unoccupied double seat. Swedes really don’t alliances” policy, political discussions about joining NATO arise as like to be close to strangers, or even establish eye-contact with them, regularly as foreign planes intrude into Swedish airspace or submacertainly not on their way to work. This is just one example of when Swedes may come across as distant or even antisocial. rines occupy Stockholm’s archipelago. But don’t mistake this behaviour as rudeness. What’s often perSwedes try to avoid confrontation, and you will barely recognise if they are angry. They make almost exactly the same facial expression ceived as coldness is actually a way Swedes behave because they when they are enraged as they would if they’d just won the lottery. don’t want to bother others. “I don’t want to interfere with your stuff. When they feel that they have to express something that could And I will take care of my own.” be perceived as confrontational, they skilfully wrap it in soft words Swedes take care of their own agenda. They don’t want others to and phrases. comment on it. They also won’t comment on yours. It’s your life and Shouting Swedes are rarely heard in public as well. Pass a constructhey tend to respect your personal integrity. So you shouldn’t just sit down next to a Swede in any public tion site or walk through the main shopping street of any Swedish city transport and start telling them your life story, or ask them where and you will find that nobody is screaming or shouting. To hear them they’re headed. raise their voices, you have to go to a football match or a night club. ■

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CORPORATE IVANA MILOŠEVIĆ, DIRECTOR, CITYSCOPE

Team That Cares For Individuals

“Human potentials and their management are one of the key factors of success for every company,” explains Ivana MIlošević, director of CityScope, speaking to CorD

he CityScope Enterprises began working during a very turbulent period in the development of the Serbian market. “As such, as a team of consultants with excellent knowledge of both the local and regional markets, we decided that we would focus on the field of human resources,” says Milošević, speaking about the beginnings of

the office’s work, emphasising that special attention is directed towards the process of selecting and recruiting professionals from different fields. - Understanding the specific needs of the client is a prerequisite for the beginning of every process we conduct. We are primarily dedicated to providing high-quality and efficient services and building long-term relations with both companies and our candidates. We nurture a strong professional reputation that ranks us among the leading companies in the field of human resources in Serbia and the region.

• What differentiates CityScope from similar companies on the market? - The key difference in relation to the competition, regardless of whether it comes to companies or individuals, is not ‘what’ you do, but rather ‘how’ you do your job and ‘why’ you do it. If you have the privilege of loving your job and being surrounded by young and energetic professionals who share and respect the same values, you have an advantage over others from the start. We always deliver on what we promise, and we greatly value and nurture consistency, honesty and integrity, and primarily teamwork and humour. ■

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INTERVIEW

We’re Ready For More Intensive Cooperation I believe that, thanks to progress in improving the business and investment climate and strengthening the local economy’s production and export capacities, we are ready to open a new chapter in cooperation with the Nordic region, in which we will increase and balance our exchange with each country and the region as a whole, as well as attracting a new wave of investments

MARKO ČADEŽ,

PRESIDENT OF THE CHAMBER OF COMMERCE & INDUSTRY OF SERBIA, CCIS

e spoke with CCIS President Marko Čadež about the potential for expanding cooperation with Nordic economies.

• What is of the greatest importance to Serbia of economic exchange with the Nordic region and the Nordic markets? - There are at least three major economic reasons why it is important for Serbia to strengthen economic cooperation with the Nordic region. The first is a market of 26 million potential consumers – bigger than our entire region, including the Western Balkan countries as well as Croatia and Slovenia. The second are investments by serious companies, such as the Nordic companies that already operate in Serbia. The third reason is the transfer of modern technologies, business models, standards and, for Serbia, the invaluable knowledge and experience of the entire Nordic region and each country individually. That’s because in order to sell more goods on the demanding Nordic market, a market of refined tastes and high criteria, which knows exactly what it wants – high quality, healthy, simple and attractive – Serbian manufacturers have to satisfy the standards

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that local consumers are accustomed to, find their niche when it comes to their offer, or their assortment of products, and present them appropriately and bring them closer to customers. In order for Serbia, as an investment and business destination, to attract new major Nordic investments, companies from that region must be provided with enough motivation to invest in our economy – conditions for doing business that are similar to those to which they have grown accustomed in the developed world. I think that, thanks to progress in both improving the business and investment climate and strengthening the local economy’s production and export capacities, we are ready to open a new chapter in cooperation with the Nordic region, in which we will increase and balance our exchange with each of the countries and the region as a whole, and attract a new wave of investment. Good foundations for that are provided, on the one hand, by the good political relations and agreements we have with the countries of that region, while on the other hand are Serbia’s existing agreements with other countries that enable Nordic companies – as investors in the Serbian economy – to access markets boasting more than a billion consumers.

exports to this region. Thus, among the top 10 exporters from • Which trends in the foreign trade exchange with the Nordic Serbia to the Nordic region is the Sirogojno company, but also countries would you single out? Pirot-based Tigar, thanks to the export of rubber boots. The - Our foreign trade exchange is, in a word, modest – below the list of goods that are most exported are circulation pumps, realistic potentials, and Serbia is burdened by the deficit in trade paper, cardboard and conductor sets, which this year replaced that it has with the Nordic region. Last year we exchanged with raspberries at the top of the list of the 10 best-selling products, the Nordic economies, according to the data of the Serbian Stathen car tyres, polymer ethylene bags and sacks, combined tistical Office, goods worth just over 550 million euros. Although fridge-freezers, engines and generators. the list of exporters to this region includes 1,028 companies, The fact is that both import and export lists are actually total exports to Sweden, Denmark, Finland and Norway barely dominated by foreign companies exceeded 163 million euros, or 164 if that have invested in Serbia, including we include the negligible 1.2 million Nordic companies. The list of the ten euros worth of goods sold to Iceland. largest exporters to the Nordic region With exports we covered only 42 last year was led by Danish company per cent of imports, which largely Grundfos, and also includes Ergomade relate to procurements by Nordic (Danish-owned furniture factory), as companies operating here. well as Swedish company Tetrapak Observed by country, while we Production. Tetrapak and Grundfos have negligible trade with Iceland also feature on the list of Serbia’s 15 worth €2.7 million, we traditionally largest exporters worldwide this year. realise the largest commodity Our analysis, apart from showexchange with Sweden, which last ing ample space to further increase year totalled around €223.6 million raspberry sales in the countries of euros. Sweden also buys the most the Nordic region, also identifies goods from Serbia (exports last significant opportunities to sell other year totalled €78.9 million), but fresh and dried fruit, products with also sells the most goods of all protected geographical origin, as Nordic region countries on our well as healthy, organic food. market (Swedish imports last year totalled €144.7 million). • Nordic investments in Serbia are Although the volume of trade still at a relatively low level. What is small, with several major exportare the prerequisites to increase the import jobs providing proportionally economic share of Nordic countries? high percentage growth, it is encouraging that from the beginning of this year until the end of August, compared to the first eight months of last year, Serbia recorded a significant increase in sales In order for Serbia to attract new major Nordic investments, companies from that region must be provided with on the Nordic market – by as much as 46 per cent. Imports also grow, albeit more slowly and only by five conditions for doing business that are similar to those to per cent – thuse the coverage of imports by exports which they have grown accustomed in the developed world increased to 56 per cent. Exports to Sweden during the first eight months of this year also increased by - There are 343 active companies with a smaller or larger share as much as 87 per cent compared to the same period last year. of Nordic capital registered in Serbia today and I think that Despite relating to considerably smaller amounts, there has shows good potential. In the years behind us, we have recorded also been significant growth in exports to Finland (26.4%) and very important investments for us from each of the countries Denmark (12.3%), as well as imports from Finland (55%). of the Nordic region in various sectors – from manufacturing to telecommunications. It is our wish, of course, for there to • The recent period has also been marged by the emergence of be significanttly more Nordic investment projects. Of course, Serbian companies that have managed to appear on this market we still have work ahead on further improving the business with their products (honey, prefabricated houses etc.). What climate, strengthening the local economy and internationallessons can we draw from these examples when it comes to ising and linking our companies. We are working on this with the possibilities of placing goods on these markets? our Nordic partners bilaterally and with the Nordic Business - The first Serbian export product last year, as in previous Alliance in Serbia, which is also part of the CCIS’s Mixed years, was frozen raspberries, with sales of 12.6 million euros Chambers Council.■ on the Nordic market in 2016, which is 7.7 per cent of our total BUSINESS PARTNER

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INTERVIEW

Serbia Deserves The Interest Of Nordic Businesses Serbia hasn’t been on the radar of mainstream Nordic business, but when it receives the focus it deserves, we predict major growth of interest in terms of trade and investments. The greatest potential for development lies in the IT sector, sustainable development and energy. Cooperation in these fields, as well as adoption of the Nordic business model, will bring many benefits to Serbia

ANDREJA PAVLOVIĆ,

EXECUTIVE DIRECTOR, NORDIC BUSINESS ALLIANCE

- The general impression of NBA members is that Serbia represents a very successful investment location when it comes to the quality of the business environment, despite the shortcomings present in the form of symptoms of a transitional society. Evidence supporting this opinion lies in the fact that, whenever possible, our members invest additional funds in their operations here every year. The challenges we would point out as obstacles to all members are matters concerning a lack of transparency, the occasional occurrence of unfair competition and, where applicable, slow administration.

• How do your members assess the quality of the business environment in Serbia and what are the most important challenges they face in everyday business?

• How satisfied are you with the possibilities to cooperate with the Government of Serbia in resolving such obstacles? - The Serbian Government has shown a readiness to discuss and support initiatives coming from the private sector. We’ve had a number of successful initiatives realised thanks to their support in the past. They have an open approach and good understanding of the challenges we face while investing in Serbia and/or doing business. We expect cooperation and support from the Serbian Government to continue in the future.

lthough the current size of Nordic companies’ investments in Serbia is below the potential, as is economic exchange between partners, both sides see great opportunities for further cooperation. Serbian Government support to the Nordic business community is appreciated as a way of creating a more transparent business environment. While Serbia is not in the focus of the most advanced Nordic companies, there are good chances that this will change in the future. The Nordic Business Alliance (NBA) in Serbia has a number of initiatives aimed at bringing Nordic investors to the region, says Andreja Pavlović, NBA Executive Director.

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• Which digital services of the state could facilitate the operations of companies in Serbia and which Serbian institutions would you point out as good examples of introducing e-services? - Business operations in Serbia would be greatly facilitated by the introduction of more digital services by the State. Here I primarily mean services like wider application of electronic signatures, e-accounting, automated support programmes for SMEs and so on. As a good example of the introduction of electronic services provided, I would single out the Business Registers Agency and its electronic database. • There are many debates about the quality of foreign investment in Serbia, including the attitude towards the state, domestic partners and employees. What did the Nordic companies bring to Serbia? - Nordic companies have a good reputation in Serbia. They are valued because of their habit of sharing knowhow and innovating with local stakeholders. If we were to look at it across the board, Nordic companies are usually at the forefront of their respective branches in terms of standards of quality, business ethics, competitiveness, social awareness and sustainability. Deconstructing the base values of the Nordic business culture is the best way to decipher how it is already influencing our day to day way of doing business, both in Serbia and beyond. Nordic companies take care of their employees – everyone is significant and their voices are judged solely based on merit. Deliberate and ambitious actions to support sustainable development are integrated at all levels in the business enterprise. Detailed process analyses, in terms of energy consumption, raw materials, chemical use, recycling etc.; transparency, trust and honesty; a very low level of corruption in international terms. At the same time, the main drivers in decision making are long-term perspective, optimal efficiency and maximal performance.

• The Nordic Business Alliance (NBA) is organised with the vision to become a platform for the exchange of ideas and experiences between the Nordic business community and Serbia. In which areas do you see the greatest interest in Nordic business experiences and how often are you contacted by Serbian companies interested in doing business in Nordic countries? - As I already mentioned, Nordic companies enjoy a great reputation in Serbia, and interest in cooperating with them is very high, especially in the areas of sustainable development, energy and the IT sector. • In which areas are your members seeking the most support from the NBA and which of the NBA’s previous activities have proved most attractive to members? - Our members in Serbia most often seek the opportunity for public-private dialogue and the expansion of their business network to include companies from related industries. These are the areas that have proved the most efficient and can be considered the most attractive for members in the previous period. We also pride ourselves on having a hands-on approach, so we

Nordic investors present in the country see Serbia as a very successful investment location when it comes to the quality of the business environment, despite the shortcomings present in the form of symptoms of a transitional society

• Where do you see the most room for cooperation between Nordic and domestic companies? - I see plenty of room for greater cooperation between Nordic and domestic companies in all areas. The current state of affairs is that Serbia hasn’t been on the radar of mainstream Nordic business. While this is a sad fact, with ad hoc exceptions to the case, the fortunate thing is that when Serbia receives the focus it deserves, we predict big growth of interest in terms of trade and investments. I consider, however, that the greatest potential for development lies in the IT sector, sustainable development and energy. Cooperation in these fields, and the adoption of the Nordic business model, will bring many benefits to Serbia.

are there to support our members in their efforts from the planning phase, through implementation, to execution. • What are the NBA’s ambitions in the period ahead? - Guided by the potential we’ve recognised and the priorities we’ve set, we are bringing the Nordics here through both good practise and literally. We are in the process of implementing different projects that will use Nordic knowhow as a key value, but we’re also planning on organising different activities that will yield direct results, key among which is our doing business & investment conference in Stockholm. With a target of attracting 200-plus companies, with the support of partners in the public and private sectors, both Nordic and Balkan, we are working on creating the biggest Nordic-Balkans business event to date. ■ BUSINESS PARTNER

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ECONOMY

A Truly Pan-Nordic Recovery

This year has so far been one of mostly pleasant surprises in the Nordic economies. In particular, growth in Finland has staged a remarkable comeback driven by increasing demand from consumers, investments and exports, and Finnish growth will be significantly above the European average this year. Norway has clearly turned the corner after the slowdown caused by lower oil investments, as other sectors are taking over. Danish growth has been above expectations, in line with what we see in most of Europe. The exception is Sweden, where growth has slowed, but there are signs that it is becoming more balanced and thus sustainable. Nine years after a giant banking crash made Iceland a symbol of the global financial crisis, the government declared that financial stability had been restored. After several years of very different outcomes across the Nordic countries, we now have convergence in growth of around 2% or better 38 |

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DENMARK Denmark’s recovery surprised positively going into the New Year and 2017 looks set to produce the highest GDP growth for seven years. Consumers in Denmark and abroad are turning rising real income into rising consumption and housing investment is increasing

policy – more the reverse. Hence, any easing in 2018 should be financed by cutbacks or tightening in other areas. Our forecast has the potential for both upside and downside surprises. The investment upswing could materialise faster than we expect if corporate faith in the future is significantly restored. In addition, households could begin to increase their levels of debt and hence their consumption at a faster pace. In contrast, the slowdown in income growth could also cause consumption to slow, while the global situation is extremely uncertain. Our forecast for growth also presumes sufficient labour is available.

FINLAND After a disappointing 2016 for foreign trade, exports have had a great start in 2017. Exports of goods and services rose 8.8% in Q1 and business surveys imply growing order books

PORT OF AARHUS, the largest container port in Denmark

Business investment is also picking up fundamentally, although the overall growth rate for this year is unlikely to be particularly impressive. Employment has now risen for five consecutive years and job growth has not yet stalled – even though the pool of unemployed ready to be hired is not as large as previ-

The Danish government has presented its 2025 plan, which aims to increase underlying GDP growth from 1.5% to 2% annually ously. So, the Danish economy is doing well as such. On the other hand, growth of around 2% looks set to be as good as it will get this time around. Real incomes are being squeezed by gradually rising inflation and a global outlook that is being weighed down by the Chinese economy, which is slowing. Even though we expect investment to accelerate further, our overall forecast is for growth to slow a little in 2018. Looking further ahead, we clearly cannot have a perpetual upswing with rising employment. Unless we see a marked improvement in productivity, the longterm outlook is for lower GDP growth than at present. The Danish government has presented its 2025 plan, which aims to increase underlying GDP growth from 1.5% to 2% annually. The proposed path to this is reform and tax cuts that would boost the labour supply by 55-60,000 and raise annual productivity by 0.2 percentage points. If this becomes a reality, growth could continue at its current level for a number of years, including beyond our forecast, but the government is setting the bar high. Government finances are in a healthy state and there is scope for investment, tax cuts or increased consumption over the next eight years. However, given where we are in the economic cycle, we do not need a more accommodative fiscal

The outlook is better thanks to growth in export markets (especially Russia), improving price competitiveness, several large ship orders and new production facilities in forest and automotive industries. Growing demand, higher confidence and low interest rates have boosted manufacturing investment too. Preliminary figures for April were not as good, but the timing of Easter may have distorted foreign trade flows. A ship delivery in May should keep Q2 export figures elevated, before more modest growth in H2. We expect slower global growth in 2018 to create some headwinds and export growth is likely to moderate. One large ship delivery and more forest export shipping from the new Äänekoski bioproduct mill should help to keep exports on a modest growth track.

Structural reforms may slow down, even if the government now seems to be holding together until the next parliamentary elections in 2019. Finnish economy steamed ahead stronger than expected in Q1 2017 In addition to global risks, there exists moderate domestic political risk. The Finns Party, one of the coalition government parties, elected a new leadership with strong anti-immigration and anti-EU views in June. Other parties in the government stated that cooperation had become impossible, their values are too different and Prime Minister Juha Sipilä planned to break the government. The situation was salvaged by a split of the Finns party; more than half of their members of parliament left the party and chose to stick with the government. Thus, Finland averted a government crisis but the government still has a weaker mandate to rule. Structural reforms may slow down, even if the government now seems to be holding together until the next parliamentary elections in 2019. Finnish

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The government, working with the IMF, took steps to ward off future crises, including strengthening regulatory oversight of banks and curbing foreign currency loans

Technology industries is the most important industrial sector in Finland

economy steamed ahead stronger than expected in Q1 2017. GDP rose 2.7% y/y after rising 1.4% in FY2016. Leading indicators remain elevated. We have raised our forecast for this year so now expect GDP to grow by 2.8% in 2017 and slow down to 1.5% in 2018. Finnish GDP is still well below its previous peak and the economy is cruising towards potential output, which is limited by the ageing population and weak productivity growth. Improving growth potential depends partly on structural policies and the labour participation rate, which is well below other Nordic countries.

contrast to the efforts of Greece, which uses the Euro and does not have its own currency to manage. Iceland did not have a huge national debt overhang, although corporations and individuals owed large sums after the financial crash, which some are still working off. The authorities forced creditors to take some losses, and among other things, the top executives of one of the biggest failed lenders, Kaupthing Bank, were sentenced to prison. The government, working with the IMF, took steps to ward off future crises, including strengthening regulatory oversight of banks and curbing foreign currency loans. The authorities also sought to tamp down the oversize presence of banks in the economy by encouraging growth in tourism, fisheries, tech start-ups and renewable energy.

ICELAND

NORWAY

Nine years after a giant banking crash made Iceland a symbol of the global financial crisis, the government declared that financial stability had been restored as it ended longstanding restrictions on the flow of money into and out of the country

Growth in the Norwegian economy is gaining real momentum. Mainland GDP climbed 0.6% q/q in Q1. Together with an upward revision of the figures for Q4 last year, this pushed the annual rate up to 1.6%, its highest for two years.

With the cheap krona, tourism took off much faster than other new ventures

Iceland’s growth surge — the economy expanded 7.2 percent last year — represents a remarkable comeback since 2008, when the country’s three main banks failed and its currency and economy fell into a tailspin. To prevent an outright collapse, the government imposed capital controls on businesses, pensioners and individuals. The capital controls have hit companies by deterring investment and raising borrowing costs. Their removal should help Icelandic firms that had not been allowed to invest in new operations outside the country. Yet the controls ultimately prevented a widespread economic crash in Iceland and shielded the economy from severe depreciation, the government said in a statement before their removal. The country’s success in engineering a recovery stands in

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Growth was broad-based, with solid increases in private consumption and housing investment, further brisk government demand and very strong export growth. Although business investment fell, this came on the back of two very strong quarters, and the investment rate is close to the historical average. On the other hand, oil investment increased for the first time since Q4 13. This was probably something of a fluke, but it cannot rule out the possibility of investment activity in the Norwegian sector actually having bottomed out. The oil investment survey points to a substantial decrease again this year but is measured in

nominal terms, so the decrease could be a result of lower costs. The results of Norges Bank’s regional network survey for Q2 were also very strong. The aggregated output index for the next six months climbed from 1.02 in Q1 to 1.29, indicating growth in mainland GDP of 0.64% q/q in Q2 and Q3. The underlying data was also very positive, with the employment index hitting its best level since November 2012 and clearly signalling that unemployment is falling as a result of stronger employment rather than a weaker labour supply.

The results of Norges Bank’s regional network survey for Q2 were also very strong. The aggregated output index for the next six months climbed from 1.02 in Q1 to 1.29, indicating growth in mainland GDP of 0.64% q/q in Q2 and Q3 The capacity index, normally a good indicator of developments in the output gap, climbed to 28.97, which is its highest since August 2013 and largely confirms our view that we are 18 months ‘ahead of schedule’ when it comes to capacity utilisation. Firms’ profitability expectations are also stronger than at any time since January 2012, which bodes well for employment and investment. A number of leading indicators suggest that growth is set to accelerate further. The growth forecast for the Norwegian economy for 2017 was revised up from 1.8% in March to 2.0%. A slightly faster recovery has also led to adjustment of growth forecast for 2018 up marginally to 2.3%. This is above the trend rate and means that capacity utilisation will rise further and unemployment will fall further.

SWEDEN Global GDP growth is one measure of international demand but when gauging Swedish exports, we need to take into consideration that Swedish export markets have a different composition than global GDP. Hence, we try to construct some crude measure of tradeweighted imports growth on Swedish export markets: Swedish world market growth. Danske Bank’s forecasts for import growth on typical Swedish export markets suggests a decrease from 4.5% y/y this year to 4% in 2018. When balancing the Swedish exports outlook, we also need to take into account the international demand for input and investment goods, which make up the lion’s share of Swedish exports. Here, Danske Bank’s forecasts are actually less sombre and global investments growth should reach 1.5% y/y this year and exceed 4.5% y/y in 2018. A final consideration in estimating the outlook for Swed-

Swedish manufacturing confidence hits 20-year high

ish exports is of course how competitive the Swedish exports sector is, in which the often discussed weakness of the SEK is a fundamental element. However, we must also take into account other important developments affecting competitiveness, such as labour costs. In the wake of the financial crisis, Swedish labour costs developed in line with historical cyclical patterns whereas many of our harder-hit competi-

When balancing the Swedish exports outlook, we also need to take into account the international demand for input and investment goods, which make up the lion’s share of Swedish exports tors posted only modest, even negative, labour cost growth. In conjunction with rather weak post-crisis Swedish productivity growth, the relative cost base of Swedish exporters deteriorated dramatically, helping to explain why the Swedish exports sector has experienced a protracted slump in sales. Despite low wage agreements, we have yet to see a meaningful improvement in competitiveness. However, as we expect the SEK to stay on the weak side for the remainder of the forecast horizon, this should alleviate some of the difficulties the Swedish exports sector is facing. Altogether, the outlook for Swedish exports remains optimistic. Alas, the case for increasing international demand has weakened somewhat on the back of a less buoyant outlook for economic policy. This is particularly true for two of Sweden’s largest export markets: the US and China. In quantitative terms, we have therefore been forced to lower our exports growth estimate somewhat: down to 3.6% y/y in 2017 and to 3.2% y/y in 2018. The contribution to GDP growth from net exports is thus lowered to 0.3pp in 2017 and 0.1 in 2018. This revision is first and foremost a result of weaker exports growth, but the foreseen stronger growth in housing investments also pushes up imports to some extent, decreasing the net contribution from external trade further. Sources: Danske Bank A/S; National Statistics; OECD

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NBA ACTIVITIES

VISIT TO THE CITY OF ŠABAC

25.10.2016

BEYOND BUDGETING CONFERENCE The Nordic Business Alliance organised a visit to the city of Šabac. Upon arrival, the delegation was ffirst addressed by the mayor of Šabac and Finnish Ambassador to Sebria H.E. Pertti Ikonen. The delegation was presented with local investment capacities, examples of good practise and local business conditions, while delegates also toured the city’s free trade zone and space was reserved at the very end for networking.

17.10.2016

The Nordic Business Alliance and company Trizma, in partnership with the Norwegian Embassy in Belgrade, organised a lecture entitled “Beyond Budgeting” at the Norwegian ambassadorial residence. The lecture was delivered by Bjarte Bogsnes, creator of the Beyond Budgeting system and vice president of Statoil, the largest oil company in the Nordic region, who presented a new management model from Norwegian oil and gas company Statoil in Belgrade.

09.11.2016

HELLENIC BUSINESS ASSOCIATION, SLOVENIAN BUSINESS CLUB AND NORDIC BUSINESS ALLIANCE

The Hellenic Business Association, Slovenian Business Club and Nordic Business Alliance jointly organised a “SPEED BUSINESS MEETING” event for their members at the Hyatt Regency Hotel. This event has a concept that provides participating companies with the opportunity to present themselves, their services and products efficiently to all event participants. The event was followed by a cocktail reception.

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Norwegian Ambassador H.E. Arne Sannes Bjornstad said “you get more responsibility, but at the same time more freedom. Your work is judged on the basis of results, not on the basis of how much money you have spent”. He noted that Statoil is public-private company, but that its model of only regulatory management can be applied in companies in Serbia. “It is easier to apply in the private sector, but it is not impossible for it to also be applied in the public sector, and that’s what we are trying to do here at the embassy,” he added. Statoil Vice President Bogsnes said that this oil company abandoned its traditional management system in order to secure a leadership position. “Our guiding star mustn’t be to take the easier route, rather to do that which is good for the company’s position. A leadership position shouldn’t be easy,” he said. Statoil is a Norwegian oil and gas company that operates in 34 countries and has 20,000 employees and a turnover of around 90 billion U.S. dollars.

VISIT TO THE CITY OF SMEDEREVO

09.12.2016

The Nordic Business Alliance organised a visit to the city of Smederevo. The visit began with addresses delivered by Smederevo Mayor Dr. Jasna Avramović, Swedish Ambassador to Serbia H.E. Jan Lundin and the Executive Director of the Nordic Business Alliance in Serbia, Andreja Pavlović. The Director of Smederevo’s Free Trade Zone, Milica Mijatović, presented local investment capacities, examples of good practise and local conditions for doing business. The free trade zone was also visited, while the visit culminated in the organising of a B2B part, at which members had the opportunity to acquaint themselves with foreign investors and public companies in the city of Smederevo.

20.04.2017

EU NETWORKING RECEPTION

Belgrade’s Vizantija raft restaurant provided the venue for a large business gathering of eight European chambers of commerce present in Serbia. The reception was attended by 250 people, including members of chambers, foreign and domestic businesspeople and managers. This was the first and most important gathering to date of European chambers of commerce organised with the aim of networking members and strengthening cross-chamber cooperation.

21.12.2016

MEMBERS’ ASSEMBLY & CHRISTMAS RECEPTION

The regular assembly of Nordic Business Alliance members was held at Belgrade’s Radisson BLU Old Mill Hotel. Alongside the submitting of reports to members, priorities were set that will guide the Nordic Business Alliance throughout the next calendar year. Following the Assembly, members had the opportunity to summarise their positive impressions of the current year at a cocktail reception held in the spirit of New Year’s holidays.

The event was attended by members of the Hellenic Business Association, the French-Serbian and German-Serbian chambers of commerce, the Chamber of Italian-Serbian Businessmen, the Belgian-Serbian Business Association, the Slovenian and Croatian business clubs, as well as the Nordic Business Alliance. This event is just the first in a series of joint events planned to be organised by representatives of the European economy in Serbia, which is the most prominent on the Serbian market, with the aim of promoting joint appearances, improving the business environment and supporting local institutions through transferals of the best European practises. This reception of European chambers was held on the Vizantija raft restaurant at Belgrade’s Ušće confluence. BUSINESS PARTNER

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VISIT TO THE CITY OF NIŠ

03.04.2017

A delegation of the Nordic Business Alliance, led by Norwegian Ambassador in Belgrade H.E. Arne Sannes Bjornstad, met with Niš Mayor Darko Bulatović and representatives of the city authorities to discuss possibilities for cooperation and local projects that could include the participation of members of the Nordic Business Alliance. This was followed by a meeting of delegation members with companies that operate in Niš, both public enterprises and private companies, including foreign investors present in Niš.

06.04.2016

BUSINESS SPEED MEETING WITH AMCHAM AND FRENCH-SERBIAN CHAMBER

ute business meetings that aim to contribute to the development of business and the establishing of contacts between participants, the presenting of companies’ activities and the establishing of business cooperation with some of the most successful national and international companies. Over 40 participating members of the three Chambers had the opportunity to speak “one on one” and consider potential forms of cooperation. Nordic Business Alliance Executive Director Andreja Pavlović opened this year’s first Business Speed Meeting, emphasising the importance of cooperation between chambers of commerce in order to strengthen cooperation and links between SMEs and large corporations. “The Business Speed Meeting concept proved to be very productive in past iterations that focused us on organising these types of activities more frequently. We are pleased to have the opportunity to provide access to a broad and diverse portfolio, from AmCham member companies and French-Serbian Chamber of Commerce member companies, to our own members. We are happy to have witnessed the signing of various forms of cooperation between participants of previous “Business Speed Meetings”. The fact that the members merged with both targeted partners and those who were out of sight until the beginning of the event is an especially attractive fact for us,” said Pavlović.

06.06.2017

SWEDISH NATIONAL DAY AND THE CENTENARY OF DIPLOMATIC RELATIONS BETWEEN SWEDEN AND SERBIA

Representatives of Nordic Business Alliance (NBA) member companies met with representatives of the American Chamber of Commerce in Serbia (AmCham) and the French-Serbian Chamber of Commerce (CCIFS) for a series of Business Speed Meetings. During the event, members of these business associations had the opportunity to expand their contact network and establish a good base for future cooperation through the innovative format of informal meeting. Business Speed Meetings consist of a series of short ten-min-

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On the occasion of the anniversary of a hundred years of the establishing of diplomatic relations between Sweden and Serbia, Swedish Ambassador H.E Jan Lundin organised a celebration to coincide with Swedish National Day, inviting all members of the Nordic Business Alliance to attend. During the celebration, the RTS Children’s Choir Kolibri performed, then Ambassador Lundin delivered a speech that was followed by the festive cocktail reception. The event was attended by many members of the diplomatic community and figures from the economic, cultural and political life of Serbia.

SUSTAINABLE AND INNOVATIVE OPERATIONS

21.09.2017

Innovation, education and sustainability were the three key words of the seminar “Sustainable and Innovative Business”, organised jointly by the Finnish Embassy, Suomi Finland 100 partner companies, with the support of the Nordic Business Alliance. The goal of this business event was to share experiences of the sustainable and innovative operations practised by Finnish companies and their distributors in their activities.

THE BULLET PROOF® MANAGER - RESISTANT TO ALL BUSINESS CHALLENGES!

13.06.2017

The Nordic Business Alliance and the Centre for the Economy jointly organised a short presentation and workshop at Belgrade’s Saint Ten Hotel on 13th June 2017, aimed at better familiarising those interested with The Bullet Proof® Manager programme, from CRESTCOM, one of the world’s leading business education systems, which is now available in Serbia. The event was organised with the objective of ensuring that relevant business experiences, examples of good practise and success stories are heard in Serbia, along with the possibility for many ideas to be applied to daily operations immediately.

28.09.2017

VISIT TO THE CITY OF NOVI SAD

A 30-member Nordic delegation, led by the Ambassador of Finland and including representatives of the Nordic Embassies and Nordic companies operating in Serbia, visited Novi Sad. The delegation was welcomed to the city by Zdravko Jelušić, president of the city assembly, then Igor Mirović, First Minister of the Vojvodina Provincial Government, after which a meeting was also organised with Nikola Žeželj, Director of the Development Agency of Vojvodina, and finally also a meeting with Boško Vučurević, president of the Vojvodina Chamber of Commerce. The last working segment was a B2B session with companies from Vojvodina. BUSINESS PARTNER

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TOURISM

Iceland’s Tourism Boom

THE COSY, turf-topped “Hobbit-homes” are traditional in many Nordic countries

With its volcanic mountains, black sand beaches, and number of natural hot springs, Iceland's unique and dramatic landscape was ranked the 8th most beautiful place in the world in the Rough Guides list. Iceland’s blue bubbling geysers, rugged lava fields, and spectacular glaciers create a visual spectacle that seems out of this world. Natural splendor aside, the Land of Fire and Ice is also home to one of the world’s quirkiest nations, with warm, creative, and forward-thinking residents with a strong sense of national pride 46 |

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GEYSIR IN GOLDEN CIRCLE, Iceland

growing exponentially -- from 490,000 in 2010 to an estimated 2.3 million ourism is an increasingly important industry in the Nordic this year. That’s a lot, considering Iceland’s population totals less than countries and integral part to economic, social and sustainable 340,000. Tourism is now the country’s main export, bringing in a forecast development in Iceland. 45 per cent of foreign exchange -- or 560 billion kronur (€4,3billion) -- in But overwhelmed by a record number of visitors in spite 2017, according to Islandsbanki, the country’s second-largest lender. of its far-flung location, Iceland’s government is considering ways of raising taxes in the tourism sector. The alternative would be to limit sightseers’ access to the country’s A currency plunge and its location for scenes featuring in the most popular spots. popular TV series Game of Thrones helped create a tourism A currency plunge and its location boom, with visitors’ numbers growing exponentially - from for scenes featuring in the popular TV 490,000 in 2010 to an estimated 2.3 million this year series Game of Thrones helped create a tourism boom, with visitors’ numbers

THINGVELLIR

Still, many Icelanders worry that overcrowding may ruin the experience for visitors and spoil natural treasures. Among the country‘s most popular destinations are Thingvellir, a UNESCO World Heritage Site, and Jokulsarlon, an otherworldly glacier lagoon on that island’s southeastern coast that is currently at the center of a legal dispute. The coalition government is considering a number of options. They include forcing bus companies and tour operators into buying a special license or hiking the existing levy on hotel rooms. Ministry officials say the hotel tax generated 400 million kronur in revenue in 2016 and could bring in as much as 1.2 billion kronur this year. Iceland’s previous government attempted BUSINESS PARTNER

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JOKULSARLON

Many Icelanders worry that overcrowding may ruin the experience for visitors and spoil natural treasures. Among the country‘s most popular destinations are Thingvellir, a UNESCO World Heritage Site, and Jokulsarlon, an otherworldly glacier lagoon on that island’s southeastern coast

THERMAL GLASS IGLOOS, Finland

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and failed to pass a bill that would have required all visitors -- Icelanders and foreigners -- to purchase a “nature pass” priced at €12. Any tax hike would add to the already considerable bills tourists have to foot when visiting the country. A taxi ride from the airport to the city centre costs around €127; while hotel rooms are as much as a third more expensive than comparable accommodation in other Nordic capitals and the price of alcoholic beverages is more than double the EU average, according to Islandsbanki. Tourism officials are aware they can’t push their luck. Since the start of the tourism boom, Iceland’s currency has surged, making it an even more expensive destination than it already is. The recent lifting of capital controls, while bringing a degree of normalcy to the economy, has so far failed to reverse the trend. That in itself may be enough to curb foreigners’ enthusiasm.

NORTHERN LIGHTS at Jökulsárlón Glacier Lagoon

Since 2010, cruise ship passengers to Iceland have increased significantly from 72,000 in 2010 to 101,000 in 2016. The mean annual increase has been 7.3% per year. Approximately 97% of cruise ships stopover in Reykjavik, but many ships stay in more than one port. The total number of foreign visitors was around 1.8 million in 2016, a 39% increase from 2015, when foreign visitors numbered around 1.3 million. Around 1,790,000 tourists came on flights through Keflavík International Airport in 2016, or 98.7% of the total number of visitors. Around 20,000 came with Norræna through Seyðisfjörður, or around 1.1% of the total. Around 3,800 came on flights through Reykjavík Airport or Akureyri Airport, or 0.2 % of the total. It must be assumed that there are variations in counts at Keflavik International Airport, as they cover all departures, including foreign nationals resident in Iceland. ■

TOURISM SECTORS Tourism’s share of foreign exchange earnings has grown from 23.7% to 39.2% between 2012-2016 according to measurements on the export of goods and services. Tourism generated higher foreign exchange earnings than exports of marine products and industrial products in the years 2013–2016. The total number of people employed in tourismrelated sectors was 19,500 in January 2016, or the month the fewest were employed, and 28,900 in August 2016, when the most were employed. Most employees worked in accommodation and at restaurants, 13,200 in January and 18,100 in August. However, the percentage increase of employees was greatest among travel agencies, tour operators, booking services and in sectors classified as other. Since 2012, the number of employees in tourismrelated sectors has increased yearly by more than 60%. Total turnover in typical tourism sectors increased on average by 19% between 2012 and 2016. The greatest increase was from 2015–2016, or by 41%. In relative terms, turnover increased most in the operating of holiday accommodation and in the rental of cars and light motor vehicles, or on average by 25% between years. Turnover increased on average by 15% between years in restaurant sales and services and about 7% in passenger transport by air. Regarding the comparison of the turnover figures for travel agencies and passenger transport, it should be noted that this activity was exempt from VAT until the beginning of 2016 The number of foreign visitors to Iceland has nearly quadrupled since 2010. The average y/y growth rate has been 24.4% since 2010. The biggest increase was BLUE LAGOON Geothermal Spa in Iceland from 2015 to 2016, or 39.0%.

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NEW NORDIC CUISINE

Tradition In A Modern Context

In 2004, twelve Nordic chefs wrote a manifesto for the New Nordic Kitchen. In this manifesto the chefs made it clear that Nordic cuisine can be compared with the best cuisines in the world by virtue of taste and individuality, but also in its quest for the quality and attractiveness that are to be found in regional cuisines 50 |

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he Nordic cuisine is not in competition with the French, Chinese or other great cuisines. Its aim is much more to counter indifference and the global junk and fast food culture which presents a threat not just to our health and cultural integrity but also to the diversity and sustainability of the planet as a whole. New Nordic Food has been a huge success everywhere in the Nordic region â&#x20AC;&#x201C; perhaps especially because it is democratic rather than elitist. Right from the start one of the basic ideas was to involve as many people as possible in the work of defining Nordic cuisine and its ambitions. Farmers, food producers, politicians, home economics

teachers, government officials, food scientists, gourmet chefs and consumers have all contributed to its development. New Nordic Food is food produced with care and with a focus on taste and diversity, forgotten varieties and breeds, old processing methods and new ideas NOMA CHEF RENE REDZEPI superb produce is brought in in the kitchen. from Iceland, the Faroe Islands, Greenland and Denmark The New Nordic Cuisine is what we Noma won last summer’s No. 1 spot in the prestigious Pellegrinomake it together, and with Nordic resources and cultural capital, backed competition that declares the World’s 50 Best Restaurants it will contribute to a better world. A vision which now resonates and is now considered the standard-bearer of the New Nordic cuisine, from exclusive gourmet restaurants down to school canteens and one which explores the seasons more fully and showcases tradition private kitchens. in a modern context Local dishes, regional varieties of fruit and vegetables and national food traditions are gaining ground again, but with a new and stronger profile. In an increasingly globalised world people New Nordic Food has been a huge success everywhere in the are searching for their roots, to be better Nordic region – perhaps especially because it is democratic able to face the world. rather than elitist. Right from the start one of the basic ideas Thanks in large part to Noma, the 50-seat was to involve as many people as possible in the work of restaurant in Copenhagen, Nordic cuisine is defining Nordic cuisine being discovered by the world. Because of the focus and integrity of its chef, René Redzepi,

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SOURDOUGH BREAD, Maaemo restaurant,Oslo

Redzepi uses local ingredients and encourages his chefs to forage three days a week. His menu includes seaweed, pine, berries, birch wood, elk, beaver, hare and rare herbs and plants like sweet cicely, sorrel, verbena, bulrush, angelica and wild mushrooms. The kitchen also employs the more traditional ingredients of oxtail, pork cheeks, radish, rye, lamb, nuts, smoked cheese and mussels. One entrée involves razor clams in a parsley gel served with horseradish-powder ice cream and mussel juice. It’s simple and beautiful; the gentle flavor of parsley explodes in your mouth with the pungent horseradish ice cream. New Nordic home cooks also celebrate the seasons, emphasizing local products and showcasing their flavors by avoiding overcooking and over-saucing. The nose-to-tail idea, cooking as much of the animal as possible, is embraced, and all manner of fish, from garfish

TOAST with turbot roe and vinegar dust

Local dishes, regional varieties of fruit and vegetables and national food traditions are gaining ground again, but with a new and stronger profile. In an increasingly globalised world people are searching for their roots, to be better able to face the world

NEW NORDIC DISH with local seasonal ingredients

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to pike and whiting, are finding their way to the kitchen. Potatoes are baked with herbs rather than boiled, cabbage is often eaten raw, and rye and rye bread are employed in innovative ways. Rye grows very well in the Nordic climate, and there is a long tradition of rye bread, buns and flat breads. In the new Nordic cuisine it’s also incorporated in salad

OYSTERS AND LANGOUSTINES, Norway

â&#x20AC;&#x201C; this past year was the best season for mushrooms in a long time. At its heart, Nordic cuisine, new or traditional, is about cooking at home and eating with your family on an everyday basis, celebrating life around the table. â&#x2013;

and risotto-style recipes and made into flakes for bread and porridge. Celeriac is eaten mashed as well as in soups, burgers and salads; kale can be used in salads and treated more or less like spinach. New Nordic home cooks also celebrate the seasons, Jerusalem artichokes are eaten both cooked emphasising local products and showcasing their flavours by and raw, and horseradish is a common acavoiding overcooking and over-saucing cent. Blueberries, chanterelles and porcini mushrooms are Nordic culinary treasures Fish are hung to dry at a fisherman's house near the village of Kirkjubour, Faroe Islands

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ICELAND

Smallest Country To Ever Make The World Cup A 2-0 victory over Kosovo was enough for the nation of some 335,000 people to reach the 2018 finals in Russia, setting a new record in the process

qualified for. It drew with Portugal and Hungary, then beat Austria in celand have secured a spot at the 2018 World Cup in Russia, the group stage, securing a place in the knockout stages. In the Last’16 becoming the smallest nation by population to ever qualify stage, Iceland pulled off an amazing comeback upset win over England. for the showpiece event. Despite its small population, Iceland had incredible fan supGylfi Sigurdsson and Johann Berg Gudmundsson scored as port at the Euros and got to introduce the world to the viking clap, Iceland earned a 2-0 victory against Kosovo on Monday, giving the team which the players did with tens of thousands of supporters upon a record of seven wins, one draw and two defeats — two points clear their return to Reykjavík. of Croatia for the top spot in Group I of UEFA World Cup qualifying. Despite its successes, Iceland only ascended to Pot 2 in the Qualification for their first World Cup is a remarkable achievedraw for UEFA World Cup qualifying, and was placed into a difficult ment for Iceland, a country with a population of approximately 335,000. The previous smallest country to reach the finals was Trinidad & Tobago in 2006 (1.3 million people), followed by Northern Ireland (1.85 The country has over 20,000 registered soccer players, or 5 percent of all Icelandic people million), Slovenia (2.08 million), Jamaica (2.89 million) and Wales (3.1 million). group with Croatia, Ukraine, and Turkey. But Iceland put together It’s possible that no other country takes training footballers as a perfect home record in qualifying and secured two wins on the seriously as Iceland. The country has over 20,000 registered soccer road, including a dramatic 3-0 victory in Turkey last Friday. Croatia players, or five per cent of all Icelandic people. One in 500 Icelanders failed to beat Finland at home on the same day, gifting first place has a UEFA B license or higher, meaning some players start training in the group to Iceland. The Icelanders went into Monday’s matches under professional coaches from as young as five. knowing that they would make the World Cup if they defeated Football fans around the world got the chance to fall in love with Kosovo, which they did comfortably. ■ Iceland during Euro 2016, the first major tournament that Iceland ever

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