Serbian Economy vol.5 by CorD Magazine

COMMENT

Solidarity, Cooperation And Growth Go

HAND-IN-HAND

During the COVID-19 Pandemic, cooperation developed between the local community and the companies that operate within that community strongly underlined the importance of synergy between these two sectors. This experience may further encourage companies to invest with the aim of raising the quality of life in the local community. On the other hand, it clearly shows why local communities have a motive to build a company-friendly environment.

ne of the ways to read the UN Serbia and UNDP Serbia report “Serbia Covid19 Socio Economic Impact Assessment” is to look for encouraging examples of the ways that associations, networks and businesses have been finding ways to provide support and donations to communities and local institutions. One example was the work of the National Alliance for Local Economic Development (NALED), which worked through its established network of LSGs and businesses to initiate corporate responsibility campaigns and launched a donation platform. This action resulted in more than 45 tons of food being brought to 10,000 poor households across the country and raised around two million euros for the procurement of medical equipment.

Serbian Economy 2021

Corporate leaders in Serbia can and have shown that they are not sitting on the side-lines of major societal threats at the local level, rather their cooperation with local communities goes far beyond this and is multifaceted and growth orientated. Many large companies, acting independently or through their associations, donated either finances for combatting the crisis or a long list of products and services ranging from equipment and furniture to hospitals and social institutions, or free recreational facilities for recuperation of medical staff.

One of the most active business associations, the Serbian Chamber of Commerce & Industry, was part of the National Emergency Task Force for the economy. As such, it used its national and regional network to help coordinate businesses’ donations of medical equipment. Another example that stands out is the foundation “Catalyst Balkans”, which pushed for donations through a crowdfunding platform to collect short-term financial relief funds for cultural workers or the most vulnerable sections of the population in some of the hardest hit municipalities. These efforts were met with strong volunteering activity and solidarity between and within communities. However, strategic partnerships between companies and local communities, the contribution of companies to local development, as well as corporate philanthropy, represent a much larger topic and a long-term activity that both large corporations and small local companies are exercising through their corporate social responsibility programmes. This type of activity is very important for less developed communities, where all three partners – government, businesses, and local administrations – have their own role to play. The aforementioned associations and networks, as well as others, are working to deepen cooperation between local communities and companies. There are many different ways in which this cooperation can be promoted, such as joint projects, direct investments, philanthropic projects and the like. This publication is aimed at supporting their efforts.

Serbian Economy 2021

INTERVIEW NOVICA TONČEV, MINISTER WITHOUT PORTFOLIO IN CHARGE OF IMPROVING THE DEVELOPMENT OF UNDERDEVELOPED MUNICIPALITIES

OUR DOOR IS OPEN Decentralisation is the basic element and is practically a prerequisite for all parts of our country to develop equally. My Cabinet’s task is to help all local governments improve the lives of citizens in underdeveloped municipalities. My job as a minister requires that I be at the service of citizens on a daily basis, and their interests always have priority over all of my personal interests.

epopulation is a very pronounced trend in Serbia, and it often hits underdeveloped municipalities the hardest. We asked Novica Tončev, the minister in charge of improving the development of underdeveloped municipalities, what his ministry is doing to bring a halt to this trend. “Depopulation, in hilly and mountainous areas, border areas, but also lowland areas in underdeveloped municipalities, is a process that has been unfolding over the last five decades. I can understand people who leave these areas due to a lack of work, and that’s precisely why the Government of Serbia, at the end of last year, formed a Cabinet in charge of improving the development of underdeveloped municipalities. Apart from me, who used to head just such a municipality, my team includes people who have serious experience in the preparing of development strategies, as well as those who know the problems at the local level and know how sustainable solutions can be found,” says our interlocutor. “Specifically, we succeeded in fighting for the allocating of a decent budget in 2021, the implementation of which will, for starters, solve at least one burning issue from the previous period for each of the underdeveloped municipalities, as well as creating a base of projects that will be realised in the coming years. This is a lasting commitment of the Government of Serbia and you will be able to constantly monitor the results. I’m here, together with the representatives of my Cabinet, to respond to all the challenges faced by underdeveloped municipalities, to provide them with required support and, most importantly, to

Serbian Economy 2021

INITIATIVE

INVESTMENTS

HEALTHCARE

We will insist on the adopting of the Law on Extremely Underdeveloped Municipalities, as an umbrella law that would improve the functioning of local governments

With the creating of new jobs in underdeveloped municipalities, foreign and domestic investors have at least partially halted the departures of young people from those areas

All municipalities and cities in Serbia, regardless of their level of development, have had equal conditions for work and access to treatment during the pandemic

create conditions conducive to living and working, and to awaken in young people the desire not to abandon the places where they were born.”

of our economy. The Support Programme for Underdeveloped Municipalities has allocated 250 million dinars for the implementation of programmes that primarily encompass the renovation or construction of infrastructure, while 70 million dinars has been earmarked for preparing project documentation for some future projects. We also have several situations in which municipalities already commenced local

of the municipality of Petrovac na Mlavi, set to be reconstructed. All of these municipalities are already working on the preparation of tender documentation for projects that will be implemented during the next budget year, so I can say that I’m satisfied with their engagement and with some of the new energy that I’ve felt. On the occasion of the signing of the contract, I asked the municipal presidents to inform us about all new projects, to come to our ministry whenever they need some kind of help, to ask us about other opportunities available to secure funds for investments, because that is precisely our goal – to educate them on how to properly prepare a project, provide support on implementation and connect them with potential investors.

Some large foreign companies have invested in lesser developed parts of Serbia over the past few years. To what extent has this move impacting on halting negative demographic trends? - I would take this opportunity to also thank Serbian Prime Minister Ana Brnabić and President of the Republic Aleksandar Vučić, and not to forget the contribution of National Assembly Speaker Ivica Dačić, who lobby at all international gatherings for foreign companies to invest in Serbia and open their facilities in underdeveloped municipalities. Some of them already have developed infrastructure, while in others work is actively underway on the creating of an atmosphere that will be enticing to investors, i.e., where they will have attractive conditions for investment. Of course, I’m also grateful to the management of all these companies, because, for a start, with the creating of new jobs they have at least partially halted the departures of young people from those areas. From my position as a Minister of the Government of Serbia, I can promise that all investors who decide to start some economic activity in underdeveloped municipalities, whether those investors are domestic or foreign, will have all possible advantages that they can’t find elsewhere. In an effort to encourage regional development, the Government of Serbia – at your initiative – has allocated funds totalling 320 million dinars for the Support Programme for Underdeveloped Municipalities. How satisfied are you with the current pace at which these funds are being utilised? - I’m extremely satisfied that significant funds have been allocated in order for the residents of those areas to also be able to feel the effects of the stable operations

Our goal is to educate the presidents of underdeveloped municipalities on how to properly prepare a project, provide support on implementation and connect them with potential investors projects even before receiving this grant from the Government of Serbia, and these funds were lacking to actually complete those projects. Considering that this relates to the Government’s determination to advance at least some of these 44 most underdeveloped municipalities out of a state of underdevelopment, which programmes are current, apart from those for repairing infrastructure and preparing technical documentation that are financed from the Decree? - The Municipality of Merošina received a grant for the procurement of equipment for managing municipal waste, and the Municipality of Mali Zvornik will use the funds it has obtained for a similar purpose, i.e., it will procure a refuse collection vehicle. The Municipality of Dimitrovgrad will reconstruct its Cultural Centre, a new lift will be purchased for the Raška Health Centre, and the existing open-air pool in Blace will receive a new technical area. The municipality of Nova Varoš will procure a digital X-ray machine. The municipalities also haven’t forgotten our youngest citizens, with the primary school in the village of Tabanovce, on the territory

What risks have these municipalities been exposed to during the COVID-19 pandemic? How did the Government react, given that these are first and foremost municipalities that have elderly populations and limited health services? - All municipalities and cities in Serbia, regardless of their level of development, are exposed to equal health risks during the epidemic caused by the Coronavirus. The Government of Serbia reacted in a timely manner to prevent the further spread of infection, but also to provide equal conditions for work and the treatment of all citizens of our country, whether they live in Belgrade or Novi Sad, as the most developed urban areas, or Surdulica, Gadžin Han, Brus or some other underdeveloped municipality in Serbia. With our timely activities, we’ve managed to become a leader in the region and thus gained the opportunity to also help citizens of neighbouring countries. Serbia donated vaccines to the countries of the region, but citizens of those countries were also able to get vaccinated in Serbia free of charge. We are one of the few countries in Europe and worldwide that has managed to strike a balance between life and the economy,

Serbian Economy 2021

INTERVIEW the greatest credit for which belongs to the Government and the President of Serbia.

implement tangible projects in the nearer future that will improve the lives of citizens in underdeveloped municipalities. Moreover, individual strategies that my Cabinet will prepare for each of the 44 underdeveloped municipalities will have long-term effects and will represent the foundations of all future activities and projects. Apart from the funds allocated by the Government of Serbia, the municipalities also have funds from other ministries at their disposal, as well as from various funds of the European Union and international organisations. They all provide financial support to municipalities that present high-quality projects. We will insist on the adopting of the Law on Extremely Underdeveloped Municipalities, as an umbrella law that would improve the functioning of local governments and harmonise existing legal solutions.

You recently announced a public call for civil society associations that operate in these municipalities to apply with projects covering various fields and aimed at improving the quality of life in these municipalities. How much can these kinds of projects contribute to changing living conditions in these municipalities? - Thanks to this kind of project, the Government of Serbia wants to systemically encourage balanced regional development across the entire territory of Serbia, which is why we adopted the Decree and Programme for financing projects of public interest that are implemented by associations from the territories of extremely underdeveloped municipalities in 2021. A total of 15 million dinars has been allocated for 33 associations, and the maximum amount available for a project financed by my Cabinet is 750,000 dinars, while the final deadline for the implementation of project activities is 1st December 2021. Associations applied with projects in the field of employment support, inclusion in the cultural sphere of life, increasing security, active participation in local community work, raising awareness of healthy lifestyles, environmental protection and help for people with disabilities and other marginalised groups. I must express my particular satisfaction with the fact that, after local self-government units, citizens’ associations in underdeveloped municipalities will also be able to compete with projects that imply an improving of the quality of life in those areas. Decentralisation is very often cited as the only systemic solution for these municipalities, with the strengthening of local governments and systemic – as opposed to ad hoc - assistance to these municipalities. Could we see some of these kinds of changes in the period ahead? - Decentralisation is the basic element and is practically a prerequisite for all parts of our country to develop equally. My Cabinet’s task is to help all local governments

Serbian Economy 2021

The Government of Serbia wants to systemically encourage balanced regional development across the entire territory of Serbia, which is why we want to invest in projects that are directed towards improving the quality of life in underdeveloped areas

You personally spent a long time at the helm of an underdeveloped local government. How many of the ideas that you once had for the improvement of your own municipality have you been able to apply from the position of minister? - As the former president of the municipality of Surdulica, I’m fully acquainted with all of the existing problems plaguing these local governments. This helped me to a great extent when it came to applying all the positive experiences from my position as minister, and that’s why I insisted on visiting the municipalities with my associates from the Cabinet, in order for us to gain real insight into their current needs and provide them with solutions that are as tangible as possible. I know all of those municipal presidents and that their problems are mostly the same: insufficiently developed infrastructure, a small number of successful companies where young people could work and - thanks to having secured employment - stay in their homeland and, most importantly, create families. In that sense, my Cabinet and the Government of Serbia are trying to direct domestic and foreign investors towards build their facilities in underdeveloped municipalities, in order for us to secure provide the best possible living and working conditions, and I know that we’ll succeed in that endeavour.

Serbian Economy 2021

INTERVIEW VLADISLAV CVETKOVIĆ, PRESIDENT OF THE NALED MANAGING BOARD AND DIRECTOR OF ADVISORY SERVICES AT PRICEWATERHOUSECOOPERS

Dialogue And Respect For All Parties’ Interests Is Our

RECIPE FOR SUCCESS The latest example of cooperation between companies and the most vulnerable local governments once again showed that NALED is able to unite its members, both in the fight against COVID-19 and in the major reforms that are ahead, such as the reform of the system of non-tax charges and parafiscal levies.

ynergy, togetherness, solidarity, participation and responsibility form the backbone of the system of values that NALED has been building carefully since its establishment and that it transfers fully to every new member. Some of the biggest reforms that NALED has participated in or encouraged would never have been possible without successful dialogue and the respecting of the interests of all parties. “In an organisation that gathers more than 300 representatives of various sectors with interests that are not the same on many issues, it is not always simple to reach consensus, but the truth is that unity in these values helps us to find a route to fair and balanced solutions that respect the interests of all parties,” says Vladislav Cvetković, President of the NALED Managing Board and Director of Advisory Services at PricewaterhouseCoopers. As he adds, “major reforms that NALED contributed to the implementation of, such as the introduction of the electronic system for the issuance of construction permits, would not have been so successful if the needs of both sides weren’t taken into consideration. The process will be similar with the reform of the system of non-tax charges and parafiscal levies, where it is necessary to find a way to reduce the burden on the economy, but also to find a solution that ensures local governments aren’t left with losses, because this is about money that is invested in development and cater for the needs of citizens”.

Serbian Economy 2021

LEADERS

INITIATIVE

RECOGNITION

The most successful local governments in Serbia can be leaders in the development of the country, and as such they also have an obligation to exchange experiences mutually and with less developed municipalities

Corporate philanthropy would receive a wind in its sails with the abolition of VAT on donations, but also the adoption of regulations enabling donations of surplus food to find their way to public kitchens and the Red Cross

We are overjoyed that the state has recognised that the cities and municipalities that have a business council and certificate should be specially recognised and respected

For some local governments, the arrival of large companies, and subsequent arrivals of their strategic partners, has meant the revival of local communities, not only when it comes to increased employment, but also in stimulating the economy, entrepreneurship and cultural life. Could you single out a few examples of this knock-on effect? - The most representative examples of economic, social and cultural transformations are provided by the local governments whose participation in the Certification Programme for Municipalities with a Favourable Business Environment in Southeast Europe (Business Friendly Certification South East Europe, BFC SEE) has helped them reshape their administration in accordance with the needs of the economy and offer the highest quality services. I would use this opportunity to highlight the current holders of this certification, such as Novi Sad, Ruma, Čačak and Leskovac, which was successfully certified for the fourth time at the end of last year, with a level of fulfilment of the criteria exceeding 96%. Alongside domestic companies, a number of foreign companies also operate in Leskovac today: South Korea’s Jura, British company Aptiv, Greece’s Autostop, Germany’s Falke, Turkish Jeanci and numerous others.

of this summer we launched another initiative that can help on this path: the BFC Club, the club of the most successful local governments in Serbia, which currently comprises 25 cities and municipalities.

Belgrade and Kragujevac are cooperating with companies Božić i sinovi and E-reciklaža, while company EsoTron is participating in the project “Towards Better Food Waste Management in the Republic of Serbia”. When it comes to the development of e-Government, I would mention the project “Improvement of Municipal Services in Serbia and BiH by Introducing the ChatBot Application”, in which company SAGA is helping the cities of Sombor and Šabac to make it easier for citizens and businesses to traverse the most important administrative procedures with new modern solutions like the virtual assistant that’s available 24/7. Likewise, within the scope of the project “Digitalisation of Municipal Land Management”, company Telegroup is helping Sombor, Vrbas, Inđija, Bačka Topola and Subotica, as well as their farmers, to use software and modern meteorological stations to monitor weather conditions with great precision and thus improve production.

How well established is the institutional framework for this cooperation and to what extent can local communities create it themselves? - The institutionalisation of cooperation between the economy and local governments is something that NALED has been advocating for years, and one of the models that we’ve offered through the BFC SEE programme is the formation of economic councils in cities and municipalities that will enable local government leaders and businesspeople operating in those communities to come together around the same table. Establishing a functional council is also among the criteria for obtaining BFC SEE I certification. While the institutionalisation of cooperation has yet to take a stronger foothold, at the start

In which ways can companies and the local communities in which they operate collaborate in the areas that have been identified by NALED as priorities of future work? - Companies can implement projects together with local governments that won’t only be im-

More than 90 cities and municipalities in the SEE region have passed through the NALED certification programme, and more than 30 have done so in Serbia alone. And these are all examples of good practice that should be discussed and serve as role models for other local governments to follow portant to their operations, but rather will be of general importance to the entire community. Just such projects are now being implemented together with NALED, and with the support of German Development Cooperation (GIZ), and we are certain this will be a model for future undertakings. For example, within the scope of the project “Glass Packaging Management in the Western Balkans”, we connected companies Sekopak and Apatin Brewery with the cities of Niš, Sombor, Kragujevac and Varvarin, in order to improve the system of collecting and recycling glass waste. Approximately 600 waste containers have been installed in these cities and will make it easier for citizens to properly dispose of this type of waste and make their community cleaner and more responsible towards the environment. Likewise, on the project “Increasing the Recycling Rate of Batteries and Light Bulbs”, the cities of

How important to the modernisation and development of new municipal services is the maintaining of a good dialogue between companies and local communities? - NALED has offered an efficient model for public-private dialogue through its working bodies - thematic alliances that gather representatives of local governments and the business community with the intention of working together to improve conditions for doing business. Within the framework of our organisation to date, we have seen the forming of the Fair Competition Alliance, the e-Government Alliance, the Healthcare Alliance, the Food and Agriculture Alliance, the Property and Investment Alliance and the Environmental Protection Alliance. Each of these alliances strives, within their own domain, to determine reform priorities in a given regulatory area, offer solutions and secure support for their initiatives from relevant institutions, ministries, the Government and the National Assembly. Our alliances have provided a significant contribution in the area of improving and modernising municipal services. Thanks to the

Serbian Economy 2021

INTERVIEW more than two million euros, either directly or in cooperation with philanthropic organisations. Our experience has shown that the economy would be ready to donate even more, especially in food, if they were not prevented from doing so by high VAT costs. Additionally, discouraging legal solutions compel companies to destroy huge surpluses of foods with “best use by” expiry dates, despite these being food products that remain safe for human consumption. NALED is participating greatly in the working group tasked with drafting the guidelines on the donating of surplus food and, together with the Coalition for Charity, we last year submitted an initiative for VAT exemptions on goods (primarily food) and services that are donated to the public sector and humanitarian organisations.

e-Government Alliance, branded and dedicated counters that provide support in the use of services on the e-Government portal have opened in almost 150 local governments, while a mobile device application for informing businesses and citizens about municipal services has been launched in four local governments in Serbia and Bosnia-Herzegovina. Similarly, a series of useful analytical papers, covering the field of legalising real estate facilities and the application and authentic interpretation of the Law on Cooperatives, have been prepared by the Property and Investments Alliance, while the Healthcare Alliance provided its own contribution through its Grey Book and recommendations for improving healthcare services. The analysis of the situation in the domain of water protection and purification, with proposals for improving the capacity of local administrations and examples of good cross-sectoral cooperation, is the work of the Environmental Protection Alliance, while parafiscal reforms are in the focus of the Fair Competition Alliance, which recently presented its analysis of local non-tax charges. Finally, the Food and Agriculture Alliance can boast of its project to digitalise municipal land management and its application to support farmers that has been introduced in five municipalities. To what extent has corporate philanthropy proved to be an important factor in confronting the challenges of the COVID-19 pandemic?

Serbian Economy 2021

Together with NALED, and with the support of German Development Cooperation (GIZ), companies implement projects together with local governments that won’t only be important to their operations, but rather will be of general importance to the entire community - With the desire of uniting the membership in the fight against COVID-19 and redirecting the attention of socially responsible companies towards the needs of the most endangered local governments, NALED launched a platform for donations at the very outbreak of the pandemic that very quickly met with a positive response. In a period of just over a month, this channel enabled the collection of donations worth 250,000 euros for as many as 41 local governments, and those donations included: 52 tons of food for 11,000 households, 67 computers for schools and municipal services and 140,000 euros for the procurement of medical and protective equipment. Among the donor companies were Apatin Brewery, Atlantic Grupa, Bambi, Marbo product, MK Grupa, Mlekara Šabac, SAP, Roaming solutions, Asseco SEE and others. Socially responsible companies that have come together as NALED members donated

WWhere can citizens find their place in articulating the needs of communities and why is their cooperation with companies at the local level relatively underdeveloped at present? - The great needs of local communities that we saw during the pandemic, and the removal of obstacles to meeting those needs, are among the key reasons why we launched the project “Alternative financing and donations for local communities in Serbia”, with the support of the German Federal Ministry for Economic Cooperation and Development (BMZ), via the German-Serbian Initiative for Sustainable Growth and Employment. Under the auspices of this project, we worked on solutions to reduce the cost of donations, strengthen the capacity of local governments to cooperate with local associations on mapping needs and receiving and implementing monetary and non-monetary donations. During this project, we organised a contest to select the best ideas for group funding at the local level and prepared a guide with practical advice for a successful campaign. Thanks to this contest, the three winning local initiatives gained the opportunity to raise funds and improve the lives of citizens in their communities. I would like to use this opportunity to invite socially responsible companies and all people of good will to learn more about these campaigns and support them through our donation platform, https:// naled.rs/donacije, because together we can make a difference.

MLEKOPRODUKT

BUSINESS

Dedication To Sustainable Development As

A PERMANENT COMMITMENT From promoting healthy nutrition and ecological issues, to providing direct support to partners from the entire community who are committed to achieving sustainable development goals – Mlekoprodukt is a company that directs a large part of its activities towards protecting the environment and promoting healthy lifestyles.

he Biser Nutri Academy is one of the central forms of support for a healthy lifestyle, and particularly for proper nutrition as the basis for children’s health. This CSR project was initially envisaged as a caravan of healthy nutrition that tours towns and cities in Serbia and, under the hashtag and motto #PositiveFood, promotes sound nutritional habits through the guest appearances of experts, professional chefs and public figures. During the pandemic, the Biser Nutri Academy was adapted to the format of a very successful online show that teaches youngsters about the benefits of a healthy diet and healthy living generally. And the Biser Nutri Academy project recently continued with the filming of three shows at three different locations: in a vegetable garden; on a dairy farm; and in the natural surroundings of the beautiful banks of the River Tisza. The filming also included the participation of the children of Mlekoprodukt employees, while the shows demonstrated the

entire cycle of food production and consumption, placing an emphasis on sustainable production. Another campaign aimed at promoting a healthy, sustainable and environmentally conscious lifestyle has been announced for the week of 16th to 22nd September. Specifically, the Sustainable Transport of Employees action will be implemented, with the aim of encouraging modes of transport that represent an environmentally friendly alternative to the use of individual cars. Mlekoprodukt employees will, thus, be encouraged to ride bicycles and scooters, use public transport, walk

or practise car sharing with colleagues, and each kilometre “saved” in this way will be recorded and added up upon completion of the campaign. This action will be implemented and promoted under the hashtag #MobilityChallenge, and under the international slogan Move Sustainably. Stay Healthy at the level of the Savencia Fromage & Dairy Group. Mlekoprodukt has recognised recreational and sporting activities as being among the main ways to preserve health, as proven by the company’s continuous support for the Zrenjanin Marathon.

Upon the initial outbreak of the COVID-19 pandemic, Mlekoprodukt decided to contribute fully to combating this global problem. Alongside the introduction of strict epidemiological measures within the framework of the company, the Mlekoprodukt team also represented an exceptional example of how to behave responsibly and humanely while working under these extraordinary conditions. In addition to this, the company also provided an important contribution to the struggle against the pandemic by donating a PCR device for processing COVID-19 tests to the Zrenjanin Institute of Public Health. Ethical operations represent an extremely important pillar of Mlekoprodukt’s work. This company is greatly committed to corporate social responsibility, which also represents a permanent strategic commitment of the Savencia Fromage & Dairy Group. And a very significant acknowledgement of the company’s ethical operations came in March this year, when – under the auspices of the CSR Forum conference held in Belgrade – Mlekoprodukt was recognised as one of Serbia’s most important donors of food. This occasion saw thanks given to donors of food for their contribution to combating hunger and poverty, as well as to the achieving of the sustainable development goals.

Serbian Economy 2021

BUSINESS

BOBAN ĐUROVIĆ, PRESIDENT OF THE MUNICIPALITY OF VRNJAČKA BANJA

Magical Place

AVAILABLE TO ALL There are few places like Vrnjačka Banja, which has a tradition of tourism dating back a century and a half and is a place where Romans were treated, kings rested, actors, singers and politicians amused themselves and writers created their best works.

ith its seven mineral springs, Vrnjačka Banja is a place for medical treatment, rehabilitation, rest and recuperation, and it has become the most visited destination among domestic tourists for the third consecutive year, notes a proud Boban Đurović, president of the Municipality of Vrnjačka Banja. Despite the fact that you expressed restrained optimism prior to the start of the tourist season, it turned out that there was no need for concern. Is it too early to summarise your impressions? - We had a few doubts at the beginning of the

This season saw the official opening of Hotel Park, our second five-star hotel, with 57 accommodation units, that’s located right on the Vrnjačka promenade season, even though we knew that people were eager for travelling and holidaying after the bitter 2020. We had a dilemma over whether people would travel and whether they would choose Vrnjačka Banja after the opening of the borders. However, already during the first days of spring, all doubts were dispelled thanks to the data we received. According to the records of the responsible municipal services, this year - compared to the previous period - the number of foreign tourists has so far increased by 488%. And we are also courageously retaining our top spot when it comes to domestic tourists. These statistics show that our spa town is heading

Serbian Economy 2021

in the right direction and that the path we’ve chosen leads us in the desired direction, we is good for both Vrnjačka Banja and its people. It is still early for overall impressions, because the season is in full swing. We also have events that we’ve planned for autumn, so we will first render the complete picture, and only then rate the tourist season. We are proud that, during these challenging times, Vrnjačka Banja has managed to find a way to overcome the obstacles imposed on all branches of the economy worldwide, and tourism in particular. It owes its success to constant investments in facilities, quality of services, security and the health safety of citizens and guests, which the municipal leadership works on constantly, together with the Association of the Tourist Economy. Although Vrnjačka Banja is Serbia’s queen of spa tourism, your local government is also working intensively to develop mountain, congress, sports and high-budget tourism. What else are you working on? - Spas are targeted and highly positioned among today’s tourists, precisely due to the possibility of combining natural resources and enjoying the benefits of the modern age.Vrnjačka Banja, with its Central Park covering 60 hectares, mineral springs, wellness facilities and a forest at an altitude of 900 metres above sea-level that’s ideal for hiking, mountain-biking and connecting with nature, is a very specific place. Hoteliers are today creating their offers and directing their active break options precisely towards open spaces in nature. Tourists have the most varied range of contents at their disposal on Goč mountain, including quad rides, hiking tours, archery, local produce tasting beside Lake Selište, and all of this is organised by a local adventure tourism centre that promises unforgettable fun and a high-quality and creative time. Vrnjačka Banja has in recent years been elevated by major investments that have impacted positively on the development of this Serbian Monte Carlo. This season saw the official opening of Hotel Park, our second five-star hotel, with 57 accommodation units, that’s located right on the Vrnjačka promenade. Over the course of the last decade, Vrnjačka Banja has managed to delight its visitors with the introduction of new contents with each new season. This season also began with the complete revitalisation of the Central Park,

from the thermo-mineral baths to the children’s playground. This investment encompassed the complete arrangement of landscaped horticulture, which Vrnjačka Banja’s parks have always been renowned for, and the revitalisation of evergreen saplings within the framework of floral rotundas in the French Baroque style. What does Vrnjačka Banja’s inclusion in Serbia’s 2021-2025 National Investment Plan mean for the municipality? - The positioning of Vrnjačka Banja in the National Investment Plan of Serbia 2021-2025 represents a new space for the development of our area, but also the entire region. The “Gon-

Our plan includes the implementation of the “Paradise Mountain Goč” project, with which we are preparing a wide array of offers for all generations dola” project will connect the Vrnjačka Banja town centre with Goč mountain. This project has regional significance and we expect its implementation to create new opportunities for the development of this part of central Serbia. How has the policy of balanced regional development impacted on your municipality? Do you feel that life is better in Serbia

nationwide; that our country is developing and being built faster? - I must mention the new Moravian Corridor Highway, which is also a strategically important project for the entire Raška and Rasina district. We expect its completion to provide an additional impulse to the economic and tourism development of the region. Vrnjačka Banja is also working on the implementation of new projects that will additionally impact on the comprehensiveness of the tourist offer. Our plan includes the implementation of the “Paradise Mountain Goč” project, with which we are preparing a wide array of offers for all generations. This project includes plush

meadows designed as a children’s village, a sunny slope with forest houses, the “Proplanak” recreational complex, the Selište lake of tranquil waters, trails for barefoot hiking, a maze, mini zoo, zipline, adventure park, a viewing point in the shape of a fist etc. We also expect the upcoming implementation of the forest of illusions project, with the construction of an insect and dinosaur park in the very central part, after the children’s playground. The local municipal leadership has lots of plans, despite the implementation of certain projects having halted during the course of last year, and we are continuing with our tendency to transform this spa town from exactly the point where it ground to a halt in 2020.

Serbian Economy 2021

BUSINESS MOZZART

Solidarity Has No Limits

FOR MOZZART

The regional leader in organising games of chance proves that room for improvement exists in every segment of society

eciding which area to invest in is a dilemma that often arises on the philanthropic path. World trends dictate a division between the environment, healthcare and education, while companies choose to support only certain cities or provinces, because it’s all but impossible to do everything and reach everywhere. Imagine a athlete competing in all disciplines at the Olympics? For one Serbian company, the motto “it’s important to participate in CSR” has never applied, but rather the slogan – in the game of humanity, we all win. ThisisthemotivationalmessagethatMozzart, as the regional leader in organising games of chance, has been sending for twenty years to the community in which it has profiled itself as the MVP in the field of social responsibility. It is an assistant to ordinary people, small and large humanitarian organisations, sports teams, all relevant institutions in the state and across all parts of the country. Humanitarian work is deeply woven into all of its business processes, into every segment of operations. And that work comes from the hearts of employees who themselves devise and implement projects, which is an indicator of the company’s sincere commitment to charitable work. And that has also become part of the Mozzart business strategy – connecting responsibility towards society and the environment with financial success. “People trust us, and they see and appreciate what we do, which is why those who turn to us for help include educators, priests, school directors, hospital administrators, neighbours from the buildings where our establishments are located... They recognise and call us, because they know that we try to help as quickly as we’re able, in accordance with the possibilities. There is practically no

Serbian Economy 2021

ECONOMIC EMPOWERMENT OF WOMEN

Mozzart, in cooperation with the Serbian Ministry of Labour, Employment, Veteran and Social Policy and the Coordination Body for Gender Equality, has launched a campaign to support women’s entrepreneurship and will award grants totalling 50,000 euros, or 10,000 euros each, to the five unemployed women with the best business ideas. relevant institution in the state and society that we haven’t cooperated with – we organise actions with the ministries of health, defence, education, labour and internal affairs, university rectorates, the Coordination Body for Gender Equality etc. Room for improvement exists in every segment of society, and we strive to invest part of our profits in the

community and to help those who need it the most,” explains Mozzart’s Corporate Communications Director, Borjan Popović. This reputable company leaves its socially responsible heart on the pitch, or on each of the “hundred pitches for one game” that it is building (88 to date throughout Serbia and Republika Srpska), giving a chance for celebrities to use their betting tip for the “Humanitarian Ticket at Noon” to direct Mozzart’s financial assistance towards those who need it the most (with more than 20 million dinars donated to date). Through the CSR action “New jerseys for new champions”, equipment for local clubs in less populated areas arrives every week (more than 200 teams, or equipment for 6,000 athletes). Mozzart has spent years supporting the biggest clubs and federations, but this summer it became the great reinforce-

Bjelogrlić, Mima Karadžić, VesnaTrivalić, Branka Katić and Gordan Kičić – excelled in the first zoom play in Europe, while Zoran Kesić, as narrator, brought more laughter in the action “Actors and Mozzart for you and actors”. Everyone involved waived their fees, just so the amount of the donation would be even higher, and its sharing raised 3.5 million dinars to help the Association of Drama Artists of Serbia.

1.5 million euros in donations during the epidemic

ment for Serbian Superliga clubs nationwide (Spartak, Vojvodina, Radnički 1923)... Apart from Belgrade, Mozzart has launched its Free Schools of Sports for Children in Niš, Novi Sad and Aranđelovac, under the slogan “talent has no price”. For Mozzart, solidarity also has no price, and no limits. Even in the “bubble” of the crisis caused by the Coronavirus pandemic, this company not only continued helping the community, but did so more than ever before, through donations with a total value of 1.5 million euros (respirators, beds for intensive care units, essential equipment, financial injections for hospitals, fruit packages for medics). In recognition of its efforts in the struggle against the pandemic, and particularly

Free sports schools throughout Serbia the personal engagements of employees who volunteered during the state of emergency and helped the most endangered citizens, the company received an award from the Serbian Chamber of Commerce & Industry. Mozzart allocated around a million dinars for its New Year’s gift packages and donate them across Serbia, from Sombor to Kuršumlija, from Sombor to Kursumlija, while the spreading of the holiday cheer and spirit of solidarity continued with the humanitarian theatre play “Balkan Spy”, which has been watched by more than 300,000 people worldwide. A hitherto never assembled cast of Kovačević’s spy – comprising Dragan

Thinks locally and acts globally... Its CSR activities spread across all markets where it is active, so “New Jerseys” are being donated throughout the region, gender equality is promoted through the “Stop Violence Against Women” project, while wells are being established in Kenya to provide drinking water in less populated areas. Mozzart listens to the needs of the local population, who increasingly turn to this company for help. And not just during the wave of the pandemic. During Serbia’s recent heatwave, the Pančevo General Hospital Children’s Ward found itself in dire need of air conditioning units, and this company responded to the request immediately by donating cooling systems. Such swift reactions, and the solving of burning issues, are vital for many health institutions throughout Serbia, especially during periods of epidemics. But they are a regular CSR activity for Mozzart, which this year alone has provided donations to other major children’s hospitals around the country, providing incubators, medical equipment and financial assistance to the Niš, Višegradska and Tiršova clinical centres, as well as New Belgrade’s Dr Vukan Čupić Institute for Mother and Child Health. Switching from health to the environment – Mozzart has installed the “Skycleaner” innovative air purifier in Belgrade city centre, which prevents emissions of harmful gases and spreads eco-messages about environmental protection. Campaigns to clean neighbourhoods, plant trees and hand out canvas bags as a replacement for plastic carrier bags on markets across the country represent other parts of the company’s CSR mosaic that’s being put together by employees, in an effort to raise environmental awareness among citizens.

Serbian Economy 2021